Geographic segmentation refers to where people live.
Obviously, different countries will have significantly different lifestyles, economies, cultures, languages, climates, traditions; all of which will significantly influence purchasing behaviours. For example, those living in colder countries will be more interested in warm clothing and heating appliances, whereas those in warmer climates would prefer air conditioning.
However, different regions of any country will also have different lifestyles, cultures, ethnic backgrounds, climates and traditions. Many countries can be divided into distinct geographic areas. Products and services that prove successful in one region may fail totally in another. Market research to establish geographic preferences is essential for large national and multinational producers and retailers.
In addition, buying behaviour will be influenced by the nature of the environment, whether it is urban or rural, high rise or suburban. Consumers who live in flats, for example, will clearly not require gardening products for the most part! Within towers and cities marketing people will classify areas according to a number of factors. Some areas will have higher incomes; some will have a higher concentration of a certain ethnic group and so on.