Which segmentation strategy focuses on understanding individual buyer behavior?

Behavioral segmentation is the strategy that focuses on understanding individual buyer behavior. This approach categorizes consumers based on their interactions with a product, including their buying habits, usage rates, brand loyalty, and readiness to purchase. By analyzing these behaviors, marketers can tailor their strategies to meet the specific needs and preferences of different consumer segments.

For example, a company might identify a group of loyal customers who frequently buy their products and develop targeted marketing campaigns to reward that loyalty, or they may focus on identifying the triggers that prompt consumers to make a purchase, allowing them to enhance the purchasing experience. This deep understanding of buyer behavior leads to more effective marketing strategies that resonate with target audiences.

In contrast, geographic segmentation divides the market based on location, demographic segmentation considers age, gender, income, and other demographic factors, while psychographic segmentation explores consumers' lifestyles, values, and personalities. While these strategies are valuable in their own right, they do not focus as explicitly on the behaviors exhibited by individuals in the purchasing process as behavioral segmentation does.