How to Identify Psychographic Segments

As marketing knowledge and market competition increase, so too does the need for better segmentation. Psychographics can offer greater insights into customer behaviour, but the procedures for identifying psychographic segments are complicated and this may be inhibiting its use. Explores the process of identifying psychographic risk segments in purchasers of consultancy services by taking the reader stepwise through the necessary statistical procedures. Part 1 considers factor and cluster analysis, while Part 2 looks at multiple discriminant analysis. The analysis shows that three potential risk segments exist which differ demographically and in their risk perceptions.