Market segments are not naturally occurring entities, but rather, are groupings created by managers of how managers view the market to help them develop strategies that better meet consumer needs at the highest expected profit for the firm. In 1964, Daniel Yankelovich introduced the concept of non-demographic segmentation, which is the classification of consumers according to criteria other than age, residence, income, and such. Segmentation has advanced over the last 50 years, as we can see below. Dr. Yankelovich and colleague have now introduced a view of segmentation.
Is Psychographic segmentation a wasteful diversion as Yankelovich suggests?
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