2007 Mc Graw-Hill Companies Inc Mc

© 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 12 -1

PART III: INTERNAL INFLUENCES 12 -2

CHAPTER 12 SELF-CONCEPT AND LIFESTYLE 12 -3

Consumer Behavior In The News… What’s your fruit-specific LIFESTYLE? Ø That’s what several international researchers wanted to know about Japanese consumers! Ø Among their findings… Ø A large fruit-specific lifestyle segment called the creative/highly involved exists in Japan. Ø What characteristics do you think describe this segment? Source: S. Shim et al. , “Export implications for the Japanese fruit market, ” International Journal of Retail & Distribution Management, (29), 2001, p. 300 -316. 12 -4

Consumer Behavior In The News… What’s your fruit-specific LIFESTYLE? Ø Characteristics of the creative/highly involved fruitspecific lifestyle segment. Ø First to buy newly-introduced fruit Ø Enjoy shopping for fruits Ø Enjoy talking about new fruits with friends Ø Enjoy trying new fruits Ø Does this sound like anyone you know? Source: S. Shim et al. , “Export implications for the Japanese fruit market, ” International Journal of Retail & Distribution Management, (29), 2001, p. 300 -316. 12 -5

Self-Concept is defined as the totality of the individual's thoughts and feelings having reference to him- or herself as an object. Self-concept can be divided into four parts as listed below: 1. Actual Self-Concept 2. Ideal Self-Concept 3. Private Self-Concept 4. Social Self-Concept 12 -6

Self-Concept Dimensions of a Consumer’s Self-Concept 12 -7

Self-Concept Interdependent/Independent Self-Concepts Interdependent Self. Concept is based on the common Asian cultural belief in the fundamental connectedness of human beings, emphasizing family, cultural, professional, and social relationships. Independent Self-Concept is based on the predominant Western cultural belief that individuals are inherently separate, emphasizing personal goals, characteristics, achievements, and desires. 12 -8

Self-Concept Interdependent/Independent Self-Concepts Individuals with an interdependent selfconcept 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 -9

Self-Concept Possessions and the Extended Self The extended self consists of the self plus possessions. People tend to define themselves in part by their possessions. A peak experience is an experience that surpasses the usual level of intensity, meaningfulness and richness and produces feelings of joy and Tattoos can become a part of one’s self-fulfillment. extended self 12 -10

Self-Concept Possessions and the Extended Self The mere ownership effect, or effect the endowment effect is the tendency of an owner to evaluate an object more favorably than a nonowner. The concept of the extended self and the mere ownership effect have numerous implications for marketing strategy. 12 -11

Self-Concept Measuring Self-Concept 12 -12

Self-Concept Using Self-Concept to Position Products People’s attempts to obtain their ideal self-concept, or maintain self-concept their actual self-concept, often self-concept involve the purchase and consumption of products, services, and media. This suggests that marketers should strive to develop product images that are consistent with the self-concepts of their target markets. Many consumers feel image and selfworth can be enhanced via products, such as the right clothes, etc. 12 -13

Self-Concept The Relationship Between Self-Concept and Brand Image Influence 12 -14

Self-Concept Marketing Ethics and Self-Concept The self-concept has many dimensions. Critics blame marketers for focusing too much attention on the importance of beauty, and defining it as being young and slim with a fairly narrow range of facial features. A major concern is that individuals are developing selfconcepts that are heavily dependent on their physical appearances rather than other equally or more important attributes. 12 -15

The Nature of 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 -16

The Nature of Lifestyle and the Consumer Process 12 -17

The Nature of Lifestyle Measurement of Lifestyle Attempts to develop quantitative measures of lifestyle were initially referred to as psychographics. Measures include: psychographics 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 -18

The Nature of Lifestyle General versus Specific Lifestyle Schemes Lifestyle measurements can be constructed with varying degrees of specificity. 1. Marketers can study the general lifestyle patterns of a population. 2. Firms can conduct very specific lifestyle studies focused on aspects of individual or household lifestyles most relevant to their product or service. 12 -19

The Nature of Lifestyle Three specific lifestyle schemes: 1. Luxury Sports Cars 2. Shopping 3. Technology 12 -20

The Nature of Lifestyle Schemes: Luxury Sports Cars Porsche examined the lifestyles of its buyers. Key demographics (e. g. , high education and income) were similar across buyers. However, their lifestyles and motivations were quite different. 12 -21

The Nature of Lifestyle Porsche 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 -22

The Nature of Lifestyle Schemes Shopping Hedonic shopping motives underlying consumer shopping patterns include* 1. 2. 3. 4. 5. 6. Adventure - fun Gratification reward/stress reduction Role - shop for others Value - good deal Social - bonding Idea - trends Five shopping lifestyle segments emerged based on these motives. *Discussed in Chapter 10 12 -23

The Nature of Lifestyle Five 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 of retail 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, highly innovative, moderate browsers-- mix of younger and older shoppers, with 58% being female 12 -24

The Nature of Lifestyle Schemes Technology How technology is utilized by consumers is of critical importance to marketers. Numerous technology and Internet lifestyle profiles exist, including • Pew Internet User Types • Ebates. com Dot-shoppers • TDS Shopper Clusters: Onliners Group Forrester Research created Technographics, a segmentation scheme that examines lifestyle segments relating to technology, online access, online shopping, instant messaging, etc. 12 -25

The Nature of Lifestyle Technographics Sidelined Citizens 29% Fast Forwards 10% Techno. Strivers 5% Media Junkies 6% Handshakers 7% Technology Segments Gadget Grabbers 7% Mouse Potatoes 9% Traditionalists 10% New Age Nurturers 8% Digital Hopefuls 6% 12 -26

The Nature of Lifestyle Three general lifestyle schemes: 1. The VALSTM System 2. The PRIZM System 3. Roper Starch Global Lifestyles 12 -27

The VALSTM System VALS provides a systematic classification of U. S. adults into eight distinct consumer segments. VALS is based on enduring psychological characteristics that correlate with purchase patterns. 12 -28

The VALSTM System Three Primary Consumer Motivations: 1. Ideals Motivation 2. Achievement Motivation 3. Self-Expression Motivation 12 -29

The VALSTM System Underlying Differences Across VALSTM Motivational Types 12 -30

The VALSTM System Ideals Motivation Consumers who are guided in their choices by their beliefs and principles rather than by feelings or desire for social approval. They purchase functionality and reliability 12 -31

The VALSTM System Achievement Motivation Consumers who strive for a clear social position and are strongly influenced by the actions, approval, and opinions of others. They purchase status symbols. 12 -32

The VALSTM System Self-Expression Motivation Action-oriented consumers who strive to express their individuality through their choices. They purchase experiences. 12 -33

The VALSTM System VALSTM Segments Innovators are successful, sophisticated, active, take-charge people with high self-esteems and abundant resources. They are motivated by a blend of ideals, achievement, and selfexpression. Image is important as an expression of their taste, independence, and character. They often see brands and products as extensions of their personalities. They have a wide range of interests, are concerned with social issues, and are the most receptive to new products, ideas, and technologies. 12 -34

The VALSTM System VALSTM Segments Thinkers: Ideals Motivated Thinkers are mature, satisfied, comfortable, reflective people who value order, knowledge, and responsibility. Most are well-educated and are in or near retirement from professional occupations. They plan their purchases and are cautious concerning big-ticket items, looking for functionality, value, and durability in products. 12 -35

The VALSTM System VALSTM Segments Believers: Ideals Motivated Believers are conservative, conventional people with concrete beliefs based on traditional, established codes: family, church, community, and the nation. They are conservative, predictable and highly loyal consumers. They favor American products and established brands, and are averse to change. 12 -36

The VALSTM System VALSTM Segments Achievers: Achievement Motivated Achievers are successful career- and work-oriented people who like to, and generally do, feel in control of their lives. They value consensus, predictability, and stability over risk. Image is important to them, favoring established, prestige products and services that demonstrate success to their peers. 12 -37

The VALSTM System VALSTM Segments Strivers: Achievement Motivated Strivers are style conscious and trendy. They have limited education and tend to have narrow interest. Money defines success for them, favoring stylish products that emulate the purchases of people with greater material wealth. 12 -38

The VALSTM System VALSTM Segments Experiencers: Self-Expression Motivated Experiencers are young, vital, enthusiastic, impulsive, and rebellious. They seek variety and excitement and savoring the new, the offbeat, and the risky. They are avid consumers and spend much of their income on clothing, fast food, music, movies and videos and technology. 12 -39

The VALSTM System VALSTM Segments Makers: Self-Expression Motivated Makers are practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation. They buy tools, pickup trucks, washing machines, fishing equipment, etc. 12 -40

The VALSTM System VALSTM Segments Survivors’ lives are constricted. They live simply on limited incomes but are relatively satisfied. Frequently elderly and concerned about their health, they are not active in the market place and show no evidence of a strong primary motivation. They represent a modest market, are cautious consumers who look for low prices, buying familiar, trusted products. 12 -41

Geo-Lifestyle Analysis (PRIZM) The underlying logic: 1 Ø People with similar cultural backgrounds, means and perspectives naturally gravitate toward one another. Ø They choose to live amongst their peers in neighborhoods offering …compatible lifestyles. Ø They exhibit shared patterns of consumer behavior toward products, services, media and promotions. 1 Claritas, Inc. 12 -42

Geo-Lifestyle Analysis (PRIZM) Ø The geographic regions analyzed can range from large to small: • • • States and counties MSAs 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) Ø PRIZM can even get down to the individual household! 1 Claritas, Inc. 12 -43

Geo-Lifestyle Analysis (PRIZM) 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 -44

Geo-Lifestyle Analysis (PRIZM) 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 -45

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments ØYoung Digerati ØBlue Blood Estates ØBig Fish, Small Pond ØPools and Patios ØBohemian Mix ØUrban Achievers ØYoung & Rustic ØGolden Ponds 12 -46

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Young Digerati (Urban/Younger Years) are young, upscale and technology savvy. They live in fashionable neighborhoods and are highly educated professionals. This group is ethnically diverse, with a high concentration of Asians. They live near trendy boutiques, restaurants, and bars. They shop at stores like Banana Republic, travel and scuba dive, read newspapers, listen to on-line radio. 12 -47

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Blue Blood Estates (Suburban/Family) are middle-aged married couples with children. They live in exclusive neighborhoods with private clubs and are highly educated, wealthy business executives and professionals. This group is ethnically diverse with a high concentration of Asians. They shop at stores like Bloomingdales, travel extensively for business and read business magazine like Business Week. They also eat fast food a lot with their kids. 12 -48

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Big Fish, Small Pond (Town/Mature) are older “empty-nester” couples who are leaders in their small communities. They are affluent, typically Caucasian, college educated professionals. They shop from catalog retailers like L. L. Bean, belong to country clubs, travel, and bird watch. They are also heavy listeners of radio and read magazines like Travel and Leisure. 12 -49

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Pools and Patios (Suburban/Mature) are evolving into older “empty-nesters, ” as their children grow up and leave home. They live in older stable neighborhoods with pools and patios in their backyards. This group is college-educated, typically Caucasian, middle class managers and professionals who read the Washington Post and listen to classical radio. They order from QVC but will also shop Nordstrom. They travel, play the lottery, and bird watch. 12 -50

Applications in Consumer Behavior The Yamaha ad is a good example of how marketers are targeting the pools and patios Courtesy Yamaha Motor Corporation, USA. 12 -51

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Bohemian Mix (Urban/Younger Year) are young, mobile, liberal singles. They are ethnically diverse with high concentrations of Hispanics, Asians, and African Americans. They are professionally diverse including students, artists and professionals with reasonably high incomes. They are early adopters who shop at stores like J. Crew, travel, play tennis and listen to on-line radio. They read magazines like Maxim and newspapers like the New York Times. 12 -52

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Urban Achievers (Urban/Younger Years) are young singles often located in port cities. They are ethnically diverse with high concentrations of African-Americans, Asians and Hispanics as well as recent immigrants. They are college educated artists and professionals with modest incomes. They shop at stores like The Gap and eat out a lot at fast food restaurants. They go to movies, order books online, watch MTV and read magazines like Spin and Vibe. 12 -53

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Young and Rustic (Town/Younger Years) are young, restless singles. They are less educated, typically Caucasian, work in lowpaying blue-collar jobs, and live in tiny apartments. Despite their lower incomes, they try to live active lifestyles centered around sports, care and dating. They eat at fast food restaurants, play volleyball and go fishing and camping. They read magazines like Spin, Bass Master and Soap Opera Weekly. 12 -54

Geo-Lifestyle Analysis (PRIZM) Sample PRIZM Segments Golden Ponds (Town/Mature) are retired (or soon to be) singles and couples. They are less educated, work (or worked) in blue collar and farm jobs and are lower income. Many live in mobile homes or small apartments and lead sedentary lifestyles. They shop at stores like Wal. Mart, play bingo and sew. They watch a lot of daytime TV and listen to oldies radio. 12 -55

International Lifestyles Ø Marketing is increasingly a global activity. Ø Marketers can develop cross-cultural strategies around those discernible lifestyle segments that cut across cultures. Ø Although language and other differences would exist, individuals pursuing similar lifestyles in different cultures should be responsive to similar product features and communication themes. Ø Large international advertising agencies and marketing research firms, such as Roper Starch Worldwide, are leading the way. 12 -56

International Lifestyles Global Lifestyle Segments Identified by Roper Starch Worldwide 12 -57