Lifestyle Segmentation Profiles

1
Lifestyle Segmentation Profiles

• Nicholas H. Campiz
• Department of Geography

2
ACORN Type 3a High Rise Renters

• Median age 37.9 years
• Mixed ethnicity
• Surprisingly affluent 50,000 median income,
  with many holding degrees
• Prefer investing over saving
• Found predominately in NYC, Chicago, Los Angeles
  and DC
• Join health clubs and environmental groups
• Engage in racquet sports, bicycling and jogging
• Buy expensive clothing and frequent bars,
  theaters and museums
• Read metro, fashion, and gourmet magazines, as
  well as a daily newspaper or two

3
Why Segmentation?

• Imperfect competition the classical single
  demand schedule was inadequate.
• The market is fragmented, and each sub-market or
  segment behaves differently.
• Each customer also behaves and reacts
  differently.
• Market segmentations goal is to strike a balance
  between the population as a whole and the
  individual

4
(No Transcript)
5
Segmentation

• All segments are arbitrary
• Segment is viewed as valid if it is measurable,
  accessible, sustainable, stable, and unique
  (Baker 2000)
• Lifestyle segmentation A mix of geographic,
  demographic, and psychographic segmentation

6
Methodology

• Most of the companies employ a similar, though
  far from identical, methodology to come up with
  their cluster assignments
• These assignments are usually based around Census
  data
• A host of other household and personal
  information is factored in, such as credit card
  statements, shopping habits, lifestyle surveys,
  etc.
• Key characteristics are selected and run through
  statistical analysis to generate segments
• Number of segments and groupings is up to the the
  company. Some say there is statistical
  significance behind the number of clusters, some
  say that it is half science-half art
• Validation techniques usually include comparing
  the new clusters to characteristics that were not
  originally used in the formulation of the segments

7
Experians MOSAIC

• 13 groups (worldwide) split into 62 subgroup
  classifications
• Currently exports at the zip, census tract, and
  block group levels
• New release to have data at the block level
• Experian has been developing MOSAIC for almost 20
  years

8
MOSAIC
9
Global MOSAIC

• Global MOSAICs are LSP databases that can be
  found in more than 17 countries around the
  developed world
• These are Australia, Belgium, Finland, France,
  Germany, Great Britain, Greece, Italy, Japan, New
  Zealand, the Netherlands, Northern Ireland,
  Norway, Republic of Ireland, South Africa, Spain
  and Sweden

10
ESRI Tapestry

• Formerly CACI ACORN LSPs
• 11 Urban groups, 12 LifeMode groups
• 65 segments
• Data on the ZIP4 level
• CACI is the grand daddy of LSPs. Development
  started in the 1960s

11
Claritas PRIZM

• 15 Groups
• 62 Segments
• Data on the block-group level
• Introduced in 1974
• Works closely with MapInfo

12
Comparison Matrix
13
Examples of Possible Use

• Pro Sport Teams

14
Expansion Moved Teams
15
Draws of the South

• Fast growing population
• A lot of new money
• More likely to attend sporting events, especially
  football, hockey, basketball