Why does classic segmentation no longer work?

Traditional marketing segmented potential customers by age, income, education and location. Experts at Halla Systems Korea note that today, people with different life experiences often react to the same events in the same way and choose similar products. A millennial, a member of Generation X or a recent college graduate may behave in the same way in a crisis situation: they may spend a long time looking for good deals or, conversely, pay for their order quickly without much hesitation.

Nine out of ten shoppers, regardless of age, carefully examine a product before buying, compare options and choose the one that offers the best value for money.

Segmentation based on behavioural patterns, motivation and attitude to risk is becoming the key to effective marketing. It allows for more precise and targeted communication with the customer. Advertising is shifting from emotions to rational arguments, and when promoting a product, the seller relies on the buyers’ motivations.

In this article, Halla Systems Co. Ltd will discuss a new approach to segmentation that combines psychology, economics and consumer attitudes towards external factors.

I. Value-conscious shoppers: they buy only what is necessary

Value-conscious shoppers only start looking for a product when they genuinely need it.

Behavioural pattern: they ignore special offers and emotional triggers. They are not looking for the ‘best’ product, but the one that solves a specific problem.
Strategy for the seller: in advertising and on the website, it is essential to highlight key characteristics (durability, lifespan, minimum cost per use).
Trigger: cost per use, return on investment over a specific period
Objective: to remove the ‘expensive’ barrier by demonstrating the real benefits.

Managers at Halla Systems have listed habits and generational preferences:

Generation X and baby boomers: value established brands, prefer physical shops, prioritise guarantees and reliability.
Millennials: make rational online purchases, read reviews, and compare specifications. They do not respond to fashion trends or influencer advertising.
Generation Z: are less likely to be cost-conscious, seeking quick access to information via TikTok, YouTube, and mobile apps.

II. Optimizers (researchers): looking for the best value for money

The most complex and active group. They take their time, compare specifications, and prioritise getting the most for their money.

Behavioural pattern: they know the product specifications better than the average salesperson. They compare models and weigh up the pros and cons.
Strategy for the seller: provide comparison tools (tables, expert reviews, honest benchmarks). If your website does not allow customers to compare a model with competitors, the optimiser will go where such information is available.
Trigger: ‘best in category…’.
Objective: to provide arguments to justify the purchase. The optimiser must feel like a ‘system beater’ who has found a hidden gem.

Habits and generational ties:

Generation X and baby boomers: watch short videos on TikTok and Instagram Reels, rely on peer reviews.
Millennials: compare prices and specifications via YouTube, Telegram, and marketplaces (Amazon EU, eBay).
Generation Z: trust expert reviews and official websites, study ratings and certifications.

III. Stockpilers: they buy in bulk

They view goods as an asset. They fear inflation and shortages more than their current expenses.

Behavioural pattern: stock up, buy more than they need. Respond to bulk discounts and limited-time offers. They are still influenced by urgency triggers (FOMO).
Strategy for the seller: offer large packs, annual contracts, lock in the price today when buying for the future.
Trigger: ‘Volume savings’ and ‘Availability guarantee’.
Objective: To sell not the product, but ‘insurance against future price rises’.

Habits and generational ties:

Generation X and baby boomers: buy long-life food and household cleaning products. Often look out for discounts and seasonal offers.
Millennials: use subscriptions (e.g. for household cleaning products, coffee, water). Active on marketplaces, they like automatic restock reminders.
Generation Z: often buy what they need in advance to avoid overpaying later. This is evident, for example, in subscriptions to services (music, games, software), and within games - in purchasing resources or currency in advance to avoid being dependent on promotions and price spikes.

IV. Delayed buyers: postponing major purchases

This is a high-value segment, according to experts at Halla Systems. They have the funds for major purchases but have ‘frozen’ their money due to uncertainty. They are in a state of ‘investment paralysis’. Any significant expenditure is perceived as a threat to their personal financial security.

Behavioural pattern: They wait for the ‘right moment’ to buy, keeping an eye on the market and the economic situation.
Strategy for the seller: Lower the entry barrier through instalment plans and risk sharing. Introduce BNPL services, interest-free instalments and trade-in schemes.
Trigger: ‘Affordable monthly payment’ rather than the full price.
Objective: Lower the entry barrier. Turn a major purchase into an inconspicuous expense within the budget.

Habits and generational preferences:

Generation X and baby boomers: cautious, preferring instalment plans or trade-ins. Key factors: the retailer’s reliability, the brand and the warranty.
Millennials: prefer instalments and partial payments. They use digital wallets, online banking and budget management apps.
Generation Z: only buy major appliances or gadgets after careful comparison. They opt for short-term instalments via apps and trust the reviews of friends and colleagues.

Key takeaway. What should sellers do?

According to managers at Halla Systems Korea, this new segmentation does not require large advertising budgets or complex analytics. There is no need to come up with different creative concepts or launch four separate campaigns. It is enough to change the structure of advertising and communication and target several types of buyers in a single advert.

create different posts
change the wording of adverts
test different arguments

In one advert, you can highlight durability and reliability; in another, compare the product with similar items; in a third, emphasise the benefits of buying a set; and in a fourth, mention instalments or a small monthly payment.

This approach can be used in adverts, social media posts, on product pages or in newsletters. Even on a small budget, this allows you to test different selling points and, after a while, determine which ones work best.

Some adverts get more clicks, others are saved or discussed more often, and others bring customers into the shop. Sometimes customers themselves start repeating the phrases they’ve seen in the adverts.

Experts at Halla Systems Korea note: it is at this very moment that the true structure of the audience becomes clear — not a theoretical one, but one based on customer behaviour.