Entrepreneurship and Small Business (ESB) Certification Practice Exam

Psychographic segmentation in marketing focuses on which characteristic?

1. Physical location

2. Social interactions

3. Lifestyle and values

4. Income level

The correct answer is: Lifestyle and values

Psychographic segmentation in marketing is primarily concerned with the lifestyle and values of consumers. This form of segmentation goes beyond demographic characteristics and examines the psychological aspects that influence consumer behavior. By understanding the lifestyle choices, interests, attitudes, and values of target audiences, businesses can tailor their marketing strategies to resonate more deeply with their customers. This approach allows marketers to create more personalized and relevant messages that align with the motivations and desires of their audience. For instance, a company targeting environmentally conscious consumers might emphasize sustainability in their product messaging, while another targeting adventure-seekers might focus on experiences and activities associated with an active lifestyle. In contrast, the other choices mainly pertain to different segmentation strategies. Physical location concerns geographic segmentation, which divides the market based on where consumers live. Social interactions would involve social or relational factors that may not directly align with psychographic characteristics. Income level is typically related to demographic segmentation, focusing on financial statistics rather than psychological traits. Thus, lifestyle and values capture the essence of psychographic segmentation much more accurately.