7. Define psychographics, and discuss its use and potential limitations. Consumers learn values—enduring beliefs about things that are important—through the processes of socialization and acculturation.

Our values exist in an organized value system, in which some are viewed as more important than others. Terminal values are desired end states that guide behavior in many situations, whereas instrumental values help people achieve those desired end states. Domain-specific values are relevant within a given sphere of activity. Marketers use value-based segmentation to identify groups within the larger market that share a common set of values that differ from those of other groups.

Three methods for identifying value-based segments are inferring values based on the cultural milieu of the group, using the means-end chain analysis, and using questionnaires.