Variables of Psychographic Segmentation1

Variables of Psychographic Segmentation

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Society is changing along with the views and opinions of the people. You cannot assume anymore that all women would like a pink or red car. As a marketer doing business in a progressive society you cannot advertise your brand or product with the traditional view. You have to walk along with the open-minded opinion, accept all personality and lifestyle choices to reach your most worthy audience.

And what better way to understand the interest, opinions, and lifestyle choices of your major audience than adopting Psychographic Segmentation.

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Psychographic Segmentation

With its foundation in psychology, Psychographic Segmentation groups the audience in terms of their psychological characteristics. The information you collect from psychographic segmentation takes your behavioral insights to a different level.

With the customer’s demand for personalized service, psychographic segmentation helps you make your brand customer-centric and relevant to the audience.

In this market segmentation, you group customers in terms of their similar characteristics. These subgroups are based on:

  • Social Class
  • Personality
  • Lifestyle
  • Interests
  • Values
  • Religion
  • Opinions
  • Attitudes
  • Hobbies

It requires you to see the customers as individuals living their own life, instead of just customers for your brand. For psychographic segmentation, you need to consider certain factors to understand what motivates or interests them in doing business with a brand.

  • What do they value in their life (principles/beliefs)?
  • What are the pain points they face?
  • The reason behind their decision
  • What motivates them?

Using psychographic segmentation helps you to get to know your customers at a personal level and in turn, you help them to get to know what your brand stands for.

Psychographic Segmentation variables

Social Class:

Social Hierarchy answers the question of who has the ability to purchase your product. If you target a middle or lower class with high-end products you won’t make a sale. It would cause you to lose money. This makes it more important that you target the right social class so that your brand can make the proper amount of sales.

The social class is mostly divided into Upper, Middle, and Lower classes.

Upper Class: It can be subdivided into – Top-upper and Bottom-upper Class – for more specific marketing. They are the richest people who can spend lavishly without checking the price tag.

Top-upper class includes those who have inherited their wealth.

Bottom-upper class includes those who have earned their wealth.

Middle Class: These people don’t spend their money too lavishly. They can afford most of the things in the market. They like to live comfortably and not lavishly. Their financial situation is stable and they focus on growing their wealth. It is subdivided into – Top-middle and Bottom-middle Class.

Lower Class: People of this class have enough money to get by in their daily life. They don’t have the lavishness to spend on things that interest them. They look to work more to save as much money as possible. This class can also be further divided into – Top-lower and Bottom-lower classes.

Top-lower Class involves mostly blue-collar workers.

Bottom-lower Class involves mostly the unemployed or underemployed.

Gucci, Porsche, and other high-end brands like these know exactly who can afford them. They know who their target audience is. They aim for the Upper-Class customers with their high-quality products. They charge high-price with the promise of high-fashion, unique in the entire market.

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Lifestyle tells you what your audience values enough to spend their money and time on it. The AOI variables are used to analyze the Lifestyle Choices of the customers. AOI – Activities, Interests, and Opinions

Activities: There is some form of activity that every individual enjoys. It is something that takes their mind off of things like work.

So this subcategory includes insights about

  • What activity they customer enjoys
  • How much they are willing to spend on the activity
  • How much they engage in the activity

The purchase habit may differ between two people enjoying the same activity. Two people who love to skate may have different buying behavior. While one may be a professional skater who needs to buy wheels and polish the skate frequently, the other may need to do the same once or twice every six months.

The “Digital Nomad” is an example of Activity-based Lifestyle Choices. This aims towards men/women between the age of 25 to 35 who love traveling and are very active on social media platforms.

Interests: This can be understood by noticing the excitement a person feels when they engage in an activity. Every customer’s interests and hobbies vary greatly. When you start researching what interests your customers, you may want to start broad and then narrow down, as you begin to understand them better.

To understand your customers’ interests the best method is to track “interest tribe”. Interest Tribe is the digital community like Forniters, Redditers, LGBTQ+ communities, Online gardening, etc. These interest tribes are a platform for social bonding, sharing information, and knowledge.

Daily Harvest is a meal delivery service that does a great job in targeting segments that are most likely to prefer meals to be delivered for them.

Variables of Psychographic Segmentation2

Opinion: A person decides the importance of something on the basis of their opinion or attitudes. It depends on their preconceived notion and the belief that something is important (or not) in their life.

They may have opinions about religion, gender, environment, etc. Knowing about their opinions and beliefs about a certain aspect can tell you the reason behind their purchase decision and behavior. It also has an impact on how they view your marketing message and brand and respond to them.

IKEA has targeted its marketing into showing its customers how to make sustainable furniture. With more people becoming concerned about the environment and opting for sustainable products, this marketing move by IKEA appeals to the right target segment at the right time.


Understanding a customer’s personality helps in creating a brand personality that resonates with the audience. You can learn if your customers respond to social proof, authority, or innovation. Personality traits such as Agreeableness, openness to new experiences, extroversion, etc. can help you create a customer persona.

When creating a brand personality you have to make sure that you are consistent throughout. A customer will get confused if your personality changes from one marketing scheme to another.

Harley Davidson has kept its brand personality consistent since the 1930s. Aiming for thrill-seeking, rebellious American men, the motorbike brand appeals to the freedom of a person. The marketing strategy “All for Freedom and Freedom for All” appeals to the audience in the same way as it did in the 1930s.

ASPCA aims for people who have the personality of a Savior. An animal shelter to rescue and adopt pets appeals to those who are social-conscious and want to help everyone, be it human or animals, around them.

With every brand going digital/online nowadays your customers may feel alienated from your brand. This increases the need to understand the psychological aspect of your customers even more than it was previously. The more customers feel a personal bond with a brand the more likely they are to consider it as an option for business.

You need to implement psychographic segmentation in your marketing strategy because the more you know your customer the better proposition you offer them and the better value you get in return.

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Psychographic Segmentation involves dividing the audience into a cluster based on certain psychological factors. These psychological factors – personality, interest, lifestyle, opinions – impact their decision of purchase. Marketers analyze these factors to develop marketing campaigns that customers will respond to.

Variables of Psychographic Segmentation are:

  • Personality
  • Lifestyle
  • Interest
  • Opinions
  • Social Class

Behavioral Segmentation has four variables, these are

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