Chapter 4: Targeting
4. If you were to design a psychographic study for a new chain of lower-priced coffee stores that are planned to compete against Starbucks, what lifestyle characteristics (i.e., people’s interests, values and activities they participate in) might you consider as indicative of whether they might be interested in your new stores?
Psychographic segmentation is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. It is the marketers and the sellers of products and commodities who use this technique in order to decide their marketing strategy. Marketing a product requires a deep understanding of the customers’ psychology, along with their needs, in order for the product to be accepted. Marketers carry out a number of activities in order to better understand the psyche and the habits of the customers, so that they can accurately predict the response to the product they are selling, and thus make accurate sales projections.
If I were to design a psychographic study for a new chain of lower-priced coffee stores that are planned to compete against Starbucks, I will consider some psychographic variables such as peoples’ interest, activities, opinions and behavioural patterns. Using these factors as a base, I may be able to determine how a particular group of customers will respond to the launch of my new product and service that is a coffee house.
Firstly, I will consider about peoples’ interest about coffee stores in the market. I will appoint a group of researches to carry out a market research about people’s response towards having coffee in shops and find out when do they most love drinking coffee. For instance, if people love to have a cup of coffee before heading to work or school, I would then want to open a store nearby a housing area where it will be accessible easily for the neighbourhood and they would not be stuck in traffic etc.
Secondly, I will consider the kind of activities consumers’...