Definition (1):
Product-related segmentation is dividing consumer markets into groups based on benefits sought by buyers, usage rates, and loyalty levels.
Definition (2):
“In Kurtz, 2010 explained that product-related segmentation involves dividing a consumer population into homogeneous groups based on their relationships to the product such as segmenting based on benefits people seek when they buy a product; on usage rates for a product or consumers’ brand loyalty towards the products.”
Definition (3):
Product-related segmentation is the study of consumer groups based on their relationships with a product.
Product use situations are one of the crucial bases in this segmentation. Various consumers can use the same product in various use situations. Tang, for instance, is shown as being used in various situations such as unexpected guests, a party, a drink at the ending of a tiring and long working day, etc.
Marketers may also segment the consumer markets based on the benefits that a consumer looks for when purchasing a product. This can be a very effective way of segmenting a market for watches, in which a customer may purchase for only knowing the time, or as a gift, or for durability, as an accessory, a jewelry item, or a dress item.