Which segmentation strategy involves dividing consumers based on their lifestyle and personality traits?

The segmentation strategy that focuses on dividing consumers based on their lifestyle and personality traits is psychographic segmentation. This approach goes beyond the basic demographic aspects such as age, gender, and income to tap into the deeper motivations and values that influence consumer behavior. By utilizing psychographic segmentation, marketers can create more targeted and effective marketing strategies that resonate with specific consumer groups based on their interests, lifestyles, and attitudes.

This strategy allows businesses to understand not just who their customers are, but why they behave the way they do, enabling them to tailor their products, services, and messaging to connect on a more personal level. For instance, two consumers of the same demographic may have completely different purchasing decisions based on their individual lifestyles or personality types, making psychographic segmentation a powerful tool in achieving customer loyalty and engagement.