MINING KEY HOME BUYER INSIGHT WITH A STRATEGIC APPROACH TO PSYCHOGRAPHICS
The heart of marketing is understanding who the buyer is, but for the home building
industry, the next level is understanding why the buyer will buy. That's the crucial
difference between demographics and psychographics, a growing research field that
turns your target buyer from a black couple in their 40s making $150,000 with three
kids to Uncle Phil and Aunt Viv from The Fresh Prince of Bel-Air who need entertaining
space, a home office, and a butler.
For builders, the granular details of the target buyer's reasons for buying can inform the entire business strategy from the product and the floor plan to the pricing and the advertising. At Irvine, Calif.-based MBK Homes, psychographics is at the center of its strategy. According to Rick Fletcher, MBK's vice president of sales and marketing, the company has used psychographics to better learn about potential buyers for infill projects. At its first infill development in Gardena, MBK was trying to introduce an attached product at a price point that was more per square foot than the majority of detached inventory in the area. When the company learned buyers in the area were predominantly Asian, self-employed business owners, the product style developed into live-work units with Feng Shui design principles.