While subjective segmentation bases are very popular among consumer researchers, many practitioners still use basic demographic variables such as age and income. For example, the recent trend towards generational marketing involves segmentation by birth groups. [5][6][7] In a similar vein, others have advocated a cohort segmentation. 8,9 The basic premise on which these approaches are based is that people in different generations and cohorts have collectively experienced different external events and circumstances (eg war, economic changes) that have shaped their behaviours as consumers, making them different from others who have experienced different types of such events over their life course. 10 Others have
INTRODUCTIONMarket segmentation is one of the most important strategic marketing decisions. 1 Numerous ways for segmenting the market have been suggested in the marketing literature, ranging from simple demographics to behavioural, attitudinal, and lifestyle variables such as benefits and Values and Life Styles (VALS). [2][3][4] Generally speaking, objective bases for segmentation such as geo-demographics enable marketers to measure and locate their segmented customers precisely but offer little explanation for market behaviour. On the other hand, subjective segmentation bases such as values and benefits seek to help us better understand market behaviour but present problems in measuring and locating segments. Abstract The study reported in this paper shows that specific life-changing events may represent marketing opportunities for advertisers and marketers to woo customers. A life events-based segmentation model is developed, tested and compared with competing cohort-and age-based models in predicting consumer behaviour. The results suggest that the inclusion of life events in segmentation models may be a significant improvement over age-or cohort-based segmentation models.