Understanding Consumer Behavior Through Lifestyle-Based Segmentation

Successful marketing campaigns are contingent upon conveying a compelling message to the right customers to accomplish the campaign’s intended goal.  Market segmentation enables marketers to understand consumers better, their wants, needs, desires, and behaviors to target the right customers. 

Market segmentation entails separating or dividing markets into groups or segments that have similar characteristics and qualities.  There are four groups in which markets are segmented: demographic, geographic, behavioral, and psychographic.  Psychographic segmentation is vital in targeting customers because it focuses on their emotional and mental characteristics.  Moreover, psychographic segmentation consists of exploring consumer lifestyle characteristics that help marketers comprehend consumer views, decisions, and behaviors.

Why Consumer Lifestyles?

Lifestyle-based segmentation is a crucial facet of psychographic segmentation that explores consumer lifestyle characteristics that help marketers understand customers better. 

With lifestyle-based segmentation, marketers gain insights by exploring factors that play a role in consumer lifestyles, such as their emotions, values, motives, personalities, cultures, and past experiences.  Marketers can examine how these factors influence how people live, their consumptions, attitudes, feelings, interests, expectations, likes and dislikes, their impact on the behavior relative to the purchases they make, and how they spend their money and time. 

Consumer lifestyles influence their purchase behaviors.  Lifestyle-based segmentation aids marketers in crafting creative content in marketing campaigns and positioning products that effectively appeal to them. 

Lifestyle-Based Segmentation Benefits

Market Expansion:
The knowledge marketers acquire about how customers spend their money and time helps develop new products that entice customers to purchase the product.  It also allows marketers to aid businesses in increasing market growth, customer reach, and profits. 

Increase Competitive Advantage:
Businesses can gain a competitive edge over competitors by delivering products and services that uniquely satisfy and meet their customers’ wants, needs, and desires based on lifestyle customer preferences and traits that customers will view as a custom fit to how they identify themselves, what makes them happy and aligns with what they are passionate about and their interests.

For instance, IKEA is a large Swedish furniture retail company that sells home goods and accessories and ready-to-assemble furniture.  IKEA’s target market consists of young consumers focused on saving space and lifestyle. Consumers acquiring or moving into a new home or apartment or downsizing, budget-friendly consumers, and those who prefer a modern style and practical and simplistic approach in life interests are in innovation and protecting the environment.

For instance, according to Michael Barnett’s Marketing Week 2019 Brand of the Year article, IKEA is committed to its customer’s shopping experience and the need to be constantly innovative to achieve sustainability.  IKEA has focused and implemented actions to protect the environment by eliminating single-use plastics from their stores and the products by 2020 and implementing furniture rental services in its main markets.  Additionally, IKEA’s Greenwich store encourages its customers to upcycle and recycle their furniture by providing them with educational resources, and they also offer customers bike carrier services and embraces the use of sustainable energy sources.   

Furthermore, according to Barnett’s Marketing Week 2019 article, data reports from YouGov shows that IKEA’s marketing objectives, strategies, and customer approach based on a lifestyle-based segmentation helped them succeed in appealing to their customers and gain a more robust market positioning.  IKEA’s sales online increased 14.4%, and its revenue increased by 5.9% in 2018.    

Lifestyle-based segmentation is an effective method of gaining deeper insights into what captures the minds of customers.  Lifestyle-based segmentation helps marketers create a personalized touch in their marketing strategies, and efforts that connect with customers in a way they believe aligns with who they are and what they consider is relevant, significant, and valuable.    

Did you enjoy this post? Learn about customer behaviors, this post, and more! 

Barnett, M. (2019, July 5). Brand of the Year shortlist profiled: Ikea. Marketing Week.


Lake, L. (0AD). What Is Lifestyle Segmentation? The Balance Small Business.


What is Psychographic Segmentation? A Beginner’s Guide. Qualtrics. (2020, October 14).


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