Although demographic segmentation is useful, some marketers use psychographics segmentation in the hope that this will improve the accuracy of their segment profiles. As illustrated in the diagram above, Psychographics segmentation can be broken down into lifestyle, social class, and personality characteristics.
The Oxford English dictionary defines lifestyle 'as a way of life'; lifestyle segmentation aims to examine the way people live. Our lifestyle every day activities, interests, and our opinions and beliefs dictate who we are. Marketers refer to these as AIOs (Activities, Interest and Opinions), and our AIOs dictate our everyday behaviour from where we shop, to what we buy. Marketers aim products and services at particular lifestyle groups and develop lifestyle profiles based on their target market. If we understand the lifestyle of a particular group we can sell them product and services to enhance their lifestyle.
The picture below contains two examples of lifestyle groups "yuppies" and "third agers".
A lifestyle group is a particular segment of the market; businesses that are marketing a product or service will select the lifestyle group that they would like to aim their products at. Individuals within a lifestyle segment have or display similar characteristics. For example in the early 1980s when the UK economy was booming the City of London employed young independent staff on very high salaries. The media termed this group of employees as YUPPIES; they were young upwardly mobile professionals, associated with mobile phones, money, expensive cars, and prestigious city jobs.