ENTERPRISE STRATEGY SELECTION USING THE PSYCHOGRAPHIC SEGMENTATION OF CONSUMERS

Abstract

In this article main attention is given to the method that has been forwidely used more than 20 years – VALS ™. Usually it is not enough to use demographic characteristics for segmentation, and using psychographic segmentation of consumers becomes relevant. Ziff (1979) argues that there is a pattern why certain segment of customers prefers one or other product, but the problem is that customer behavior is hardly predictable if appropriate instruments and technics are not used. It is not possible to manage business successfully if consumer preferences, their choice determinants are not known, McDonald,Dunbar(2005) says that it contributes for successful segmentation. Although other authors as Boote (1984) raise a question that psychographic segmentation of customers is still not enough, and values play a major role in their behavior. Also Park & Jang (2014) in their research found out that psychographic segmentation is not always static and extremely when satisfaction is taken to account.

The purpose of this paper is to conduct a study and make recommendations on how to reach consumers, what future strategy to use for the selected companies. The research was done inLithuania, with the VALS ™ survey, translated to Lithuanian language. Due to the study key user segments and their priorities will be identified. Using the guidance of VALS ™  it will enable to create a marketing strategy for selected companies. Also findings might be used for other subjects, such as new product development. It will be clear what the main consumer segments are what their needs are and, before deciding to introduce a new product, how to draw attention to it.