consumer behaviour building marketing strategy · consumer behaviour building marketing strategy...

Consumer BehaviourBuilding Marketing Strategy

Lecture 8 – Chapter 12By: Dr. Marwan Khammash

Bangor UniversityBangor Business School

PART III: INTERNAL INFLUENCESPART III: INTERNAL INFLUENCES

12-2

CHAPTERCHAPTER 1212

SELFSELF--CONCEPTCONCEPT

AND AND

LIFESTYLELIFESTYLE

12-3

Consumer Behavior In The NewsConsumer Behavior In The News ……

Does power and status matter that much? You be the Does power and status matter that much? You be the judge:judge:

�� Do you think consumers would pay $300 for a Do you think consumers would pay $300 for a highhigh --status toaster when they could buy a status toaster when they could buy a functionally equivalent toaster for $30?functionally equivalent toaster for $30?

�� What might explain this?What might explain this?

Source: A. Galinksy and D. Rucker, “’Powerless’ Consumers Spend More,”Advertising Age, September 22, 2008, p. 50.12-4

Consumer Behavior In The NewsConsumer Behavior In The News ……

Does power and status matter that much? Does power and status matter that much?

�� If you said If you said YESYES you are correct!you are correct!

�� Explanation: Explanation: Actual vs. Ideal SelfActual vs. Ideal Self --Concept.Concept.

�� Consumers who feel a lack of power/status in Consumers who feel a lack of power/status in their self concepts fill void via purchase of their self concepts fill void via purchase of power/status brands.power/status brands.

Source: A. Galinksy and D. Rucker, “’Powerless’ Consumers Spend More,”Advertising Age, September 22, 2008, p. 50.12-5

SelfSelf --ConceptConcept

12-6

Self-concept: is the totality of the one’s thoughts and feelings toward one’s self. It is one’s attitude toward one’s self. The private self refers to how I do or would like to see myself. The social self refers to how I am or would like to be seen. The actual self refers to how I think I am now and the ideal self is how I would like to be.

Marketers attempt to create product images that are consistent with the self-concept of their target market.

A 15 item semantic differential scale has been developed for this purpose. It contains terms such as rugged-delicate, thrifty-indulgent, and rational-emotional.


Dimensions of a ConsumerDimensions of a Consumer ’’s Selfs Self --ConceptConcept

12-7


Interdependent/Independent SelfInterdependent/Independent Self --ConceptsConcepts

Individuals with an interdependent self-concept tend to be

•Obedient•Sociocentric•Holistic•Connected, and•Relation oriented

Individuals with an independent self-concept tend to be

•Individualistic•egocentric•Autonomous•Self-Reliant, and•Self-Contained

12-8


The extended selfextended self consists of the self plus possessions.

Possessions and the Extended SelfPossessions and the Extended Self

People tend to define themselves in part by their possessions.

A peak experiencepeak experience is an experience that surpasses the usual level of intensity, meaningfulness and richness and produces feelings of joy and self-fulfillment. Tattoos can become a part of oneTattoos can become a part of one ’’s s

extended selfextended self12-9


Measuring SelfMeasuring Self --ConceptConcept

12-10


The Relationship Between SelfThe Relationship Between Self --Concept and Brand Image InfluenceConcept and Brand Image Influence

12-11


12-12

• Marketers have been criticized for focusing too much attention on the importance of being beautiful with beautiful being defined as young, and slim with a fairly narrow range of facial features.

• While virtually all societies appear to define and desire beauty, the intense exposure to products and advertisements focused on beauty in America today is unique.

• Critics argue that this concern leads individuals to develop self-concepts that are heavily dependent on their physical appearance rather than other equally or more important attributes.

The Nature of LifestyleThe Nature of Lifestyle

Lifestyle Lifestyle is basically how a person lives. It is how one enacts his or her self-concept.

Influences all aspects of one’s consumption behavior.

Is determined by the person’s past experiences, innate characteristics, and current situation.

12-13


Lifestyle and the Consumer ProcessLifestyle and the Consumer Process

12-14


Measurement of LifestyleMeasurement of Lifestyle

Attempts to develop quantitative measures of lifestyle were initially referred to as psychographicspsychographics . Measures includeMeasures include:

Attitudes Evaluative statements about other people, places, ideas, products, etc.

Values Widely held beliefs about what is acceptable or desirable

Activities and Interests

Nonoccupational behaviors to which consumers devote time and effort, such as hobbies, sports, public service, and church

Demographics Age, education, income, occupation, family structure, ethnic background

Media patterns The specific media the consumer utilize

Usage rates Measurements of consumption within a specified product category; often consumers are categorized as heavy, medium, light, or nonusers

12-15


12-16

• A large number of individuals, often 500 or more, provide the above information.

• Statistical techniques are used to place them into groups.

• Most studies use the first two or three dimensions described above to group individuals.

• The other dimensions are used to provide fuller descriptions of each group.

• Other studies include demographics as part of the grouping process.


Porsche Consumer SegmentsPorsche Consumer Segments

Top Guns (27%) Ambitious and driven, this group values power and control and expects to be noticed.

Elitists (24%) These old-family-money “blue-bloods” don’t see a car as an extension of their personality. Cars are cars no matter what the price tag.

Proud Patrons 23%) This group purchases a car to satisfy themselves, not to impress others. A car is a reward for their hard work.

Bon Vivants (17%) These thrill seekers and “jet-setters” see cars as enhancing their already existing lives.

Fantasists (9%) This group uses their car as an escape, not as a means to impress others. In fact, they feel a bit of guilt for owning a Porsche.

12-17

The Nature of LifestyleThe Nature of LifestyleFive Shopping Lifestyle SegmentsFive Shopping Lifestyle Segments

Minimalists (12%)

Primarily motivated by value; least motivated by fun and adventure; low in appreciation for retail aesthetics, low in innovativeness, do not tend to be browsers-- middle-aged, with 57% being men

Gatherers (15%)

Primarily motivated by keeping up with trends and joy of shopping for others; least motivated by value; low in appreciation of retail aesthetics, low in innovativeness, moderate browsers-- mix of younger and older shoppers, with 70% being male

Providers (23%)

Primarily motivated by enjoyment of shopping for others and value; not motivated by fun and adventure; moderate in appreciation ofretail aesthetics, low in innovativeness, moderate browsers-- oldest group, with 83% being female

Enthusiasts (27%)

Highly motivated by all hedonic aspects including fun and adventure; highest in appreciation of retail aesthetics, most innovative, spend the most time browsing-- youngest group, with 90% being female

Traditionalists (23%)

Mmoderately motivated by all hedonic aspects, gratification high on the list; moderate in appreciation of retail aesthetics, highlyinnovative, moderate browsers-- mix of younger and older shoppers, with 58% being female

12-18


TechnographicsTechnographics

Sidelined Sidelined CitizensCitizens

29%29%

Media Media Junkies Junkies

6%6%

Gadget Gadget GrabbersGrabbers

7%7%

Mouse Mouse Potatoes Potatoes

9%9% Traditionalists Traditionalists 10%10%

Digital Digital Hopefuls Hopefuls

6%6%

New Age New Age Nurturers Nurturers

8%8%

Handshakers Handshakers 7%7%

TechnoTechno--Strivers Strivers

5%5%

Fast Fast Forwards Forwards

10%10%

Technology Technology SegmentsSegments

12-19


Three general lifestyle schemes:Three general lifestyle schemes:

1.1. The VALSThe VALS TMTM SystemSystem

2.2. The PRIZM SystemThe PRIZM System

3.3. Roper Starch Global LifestylesRoper Starch Global Lifestyles

12-20

The VALSThe VALS TMTM SystemSystem

VALSVALS provides a systematic classification of U.S. adults into eighteightdistinct consumer segments.

VALSVALS is based on enduring psychological characteristics that correlate with purchase patterns.

12-21


Three Primary Consumer Motivations:Three Primary Consumer Motivations:

1.1. Ideals MotivationIdeals Motivation

2.2. Achievement MotivationAchievement Motivation

3.3. SelfSelf --Expression MotivationExpression Motivation

12-22


Underlying Differences Across VALSUnderlying Differences Across VALS TMTM Motivational TypesMotivational Types

12-23


12-24

Using measures of self orientation and ability to pursue one’s dominant self orientation, VALS divides the United States into eight groups:

a. Innovators: successful, sophisticated, active people with high self-esteem and abundant resources.

b. Thinkers: mature, satisfied, comfortable, reflective people who value order, knowledge, and responsibility.

c. Believers: conservative, conventional people with concrete beliefs based on traditional, established codes.

d. Achievers: successful career- and work-oriented people who like to, and generally do, feel in control of their lives.

e. Strivers: unsure of themselves and limited education, tend to have narrow interests, money defines them but do not have enough of it, they emulate others, and often feel life has given them a raw deal.

f. Experiencers: are young, vital, impulsive, and rebellious.g. Makers: are practical people with practical skills who live within a

traditional context of family and work.h. Survivors: live simply on limited income, relatively satisfied, most

are elderly.

GeoGeo--Lifestyle Analysis (PRIZM)Lifestyle Analysis (PRIZM)

The underlying logic:The underlying logic:11

� People with similar cultural backgrounds, means and perspectives naturally gravitate toward one another.

� They choose to live amongst their peers in neighborhoods offering …compatible lifestyles.

� They exhibit shared patterns of consumer behavior toward products, services, media and promotions.

1Claritas, Inc.12-25


� The geographic regions analyzed can range from large to small:

• States and counties• Cities with 50,000+ people • 5-digit ZIP codes (1,500-15,000 or more households)• Census tracts with (850-2,500 households)• Census blocks (8-25 households)• ZIP+4, (6-15 households)

� PRIZM can even get down to the individual household!

1Claritas, Inc.12-26


PRIZM Social and Lifestage Groups PRIZM Social and Lifestage Groups

PRIZM organizes its 66 individual segments into social and lifestage groups.

Social groupings are based on “urbaniticity.”

The four social groupings are:

Urban Major cities with high population density

Suburban Moderately dens “suburban” areas surrounding metropolitan area

Second City Smaller, less densely populated cities or satellites to major cities

Town & Country

Low-density towns and rural communities

12-27


PRIZM Social and Lifestage Groups PRIZM Social and Lifestage Groups

The lifestage groups are based on age and the presence of children.

The three major lifestage groups are:

Younger Years Singles and couples under 45 years of age with no children

Family Life Middle ages (25-54) families with children

Mature Years Singles and couples over 45 years of age

12-28


��Blue Blood EstatesBlue Blood Estates

��Big Fish, Small PondBig Fish, Small Pond

��Pools and PatiosPools and Patios

��Bohemian MixBohemian Mix

��Urban AchieversUrban Achievers

��Young & RusticYoung & Rustic

��Golden PondsGolden Ponds

Sample PRIZM Segments

12-29

Applications in Consumer BehaviorApplications in Consumer Behavior

The Yamaha ad is a good example of how marketers are targeting the pools and patiospools and patios.

Courtesy Yamaha Motor Corporation, USA.

12-30

International LifestylesInternational Lifestyles

Global Lifestyle Segments Identified by Roper Starch W orldwideGlobal Lifestyle Segments Identified by Roper Starch W orldwide

12-31

consumer behaviour building marketing strategy · consumer behaviour building marketing strategy...

Documents