The objective of consumer analysis is to identify segments or groups within a population that have similar needs.
Consumer analysis can help answer questions such as:
- Who buys the product or service?
- Where do these consumers live?
- What income levels are in the market?
- What is the age pattern in the market?
Answers to these questions help identify target markets for specific products or services and advertising efforts.
How else can consumers be identified?
- Demographic Segmentation: includes age, gender, income, race, marital status, education, occupation, home ownership, number in the household and age of the home.
- Psychographic Segmentation: looks at the values, activities, interests, and opinions of the population, what we often call lifestyle.
- Behavioral Segmentation: Divides the market by observable behaviors such as usage, purchasing decisions, and brand loyalty.
-from MIT Libraries' Marketing: Consumer Analysis Research Guide