Define the term psychographic market segmentation.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2025). The mark or mark type is shown in brackets.

1. [2] a form of market segmentation that divides consumers into sub-groups based on shared psychographic criteria such as lifestyles / personalities / values / social class / attitudes beliefs / interests / opinions / spending habits
2. [1] a research method/way of dividing consumers into sub-groups
3. [1] (Identification) income of customers / price of competitors' products / price of complementary products / marketing activities / change in customers' tastes / the price of the product / the particular features of the product
4. [2] (Developed Application) income affects how much of a product the customer is willing and able to buy / if competitors' products are cheaper the customers are more likely to buy them and vice versa / complementary products are bought together so an increase in price of one will reduce demand for the other and vice versa / effective marketing makes customers aware of a product and can increase demand / fashions and customer tastes can change which may increase or decrease demand for a product / if the price of the product becomes competitive the demand may increase / the product is given a special feature