Define psychographic segmentation.

Psychographic segmentation involves categorizing consumers based on their personality traits, values, interests, and lifestyles. This method of segmentation goes beyond traditional demographics, which may only consider age, gender, income, and education level. By understanding the psychological characteristics of consumers, marketers can create more targeted and effective marketing strategies that resonate better with specific audience segments.

For instance, a brand targeting environmentally conscious consumers would focus on individuals who value sustainability and eco-friendliness in their lifestyle choices. By tapping into these psychographic factors, marketers can craft personalized messages and offer products that align with consumers' beliefs and behaviors, ultimately leading to higher engagement and loyalty.

Other types of segmentation mentioned, such as demographic or geographic segmentation, focus on surface-level attributes that may not effectively capture the nuanced preferences and motivations of consumers. Product usage segmentation also looks at how frequently or in what manner consumers use a product, but does not delve into the underlying reasons for their purchasing decisions rooted in their psychographics.