A company uses customer characteristics to help determine the target market for a product of service, and these characteristics generally fall in the categories of geographic, behavioral, demographic and psychographic. Looking at customer characteristics can help a company offer a product or service that fits the needs of the most customers, which will help the company make more money from sales and be able to market more effectively to those needs.
Geographic characteristics refer to the places customers live, such as cities or countries, and some countries may have more of a need of a product or service than others. Demographic characteristics refer to income level, education, gender and age, while behavioral characteristics refer to customer loyalty. Psychographic characteristics refer to a customer's lifestyle or personal values, and both can affect the types of goods sought.