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SOLVED ASSIGNMENTS SEMESTER 4 Q1 Mention the bases for segmentation of services with examples.

We can segment the service markets based on some strategies. Following figure depicts the some strategies by which a service market can be segmented.

Geographic segmentation
Geographic segmentation means the segmentation based on the location. It is believed that
people who live in the same location share common needs and wants. These needs and wants differ from the people who are living in the other location. For example, there is greater demand for internet service in cities than in rural areas. So services vary from region to region. It is also noted that popularity of a brand depends on the geographical location.

Some marketing professionals believe that internet and globalisation have reduced the geographic boundaries of various services. We can notice that even ordinary people watch MTV, and eat McDonald's Pizza. Internet hasprovided the power to customers to make purchases online by sitting in any part of the world. The segmentation of service market can be done by considering the region, city size, density of the region, and climate.Now let us discuss some examples of geographic variables that are frequently used in segmentation of services.

The different variables used are: region, size of metropolitan area, density of the region, and climate.

Demographic segmentation
Market segmentation can be done by considering differences in demographic factors of different groups of customers.The variables that are used in demographic segmentation are: age, gender, number of family members, generation, income, occupation, education, traditions, nationality, religion, and social class.

Psychographic segmentation
Psychographic segmentation divides customers based on their lifestyle.Usually marketers gauge the lifestyle of customers by surveying the activities, interests, and opinions of the customers. The variables used in this segmentation are:

·                     Activities.
·                     Interests.
·                     Views.
·                     Attitudes.
·                     Values.

Behaviouristic segmentation
Service markets can also be segmented based on the actual behaviour of customers towards services. The variables used in this segmentation are:

Benefits sought by offering these benefits.
  • Usage rate depending on the rate at which the users seek the service.
  • Brand loyalty depending on the customers who select it. This is considered by regular customer for a particular service.
  • User status depends on whether the customer is financially potential to seek the service offered the first-time. This is also considered for regular customer.
  • Readiness to buy depends on the customers. If the customers are convinced with the quality and rate of the services offered they will be ready to seek the service.
  • Occasions depends on holidays and events that stimulate the customers to go for a particular service.

“Benefit segmentation is the ultimate base for segmentation”. Consider all industries that provide consumer good. It is very difficult to satisfy all the needs of all consumers knowing that no two individuals tend to share the same like and dislikes. For an industry that would want to satisfy the desire of each and every one of it consumers, who would like to entail in making customised products, would basically think the method to be a waste of resources. This situation arises because we are in a heterogeneous market and the only way to satisfy everyone is by offering tailor made or bespoke products. Though two separate individuals may purchase the same branded products, but their reasons for purchasing it varies. For this reason market segmentation is needed. Market segmentation is used to divide customers‟ in-groups under similar needs and wants, purchasing power, buying habits,and buying attitudes, trying to increase their satisfaction.


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