Responses from a large (801) random sample of Beijing’s adult population were used to carry out this "values and lifestyles" segmentation process and it measured consumers’ "values" and "lifestyles" directly. The results indicate that "values and lifestyle" segmentation provides marketers with a more comprehensive understanding of the consumers than by demographics alone. This study also demonstrates that marketers should not carry out segmentation automatically. They need to determine where consumers perceive a particular category of product on the "luxury" and "non-luxury" continuum before deciding whether to carry out the segmentation process or not.