Sarah Waugh – Assessment 1 for MKT20020 Consumer Lifestyle and Psychographics Week 6, Topic 2

As a note before we begin, throughout this presentation the company that I will be using to apply theories to is the luxury brand, Prada. Prada has a range of products ranging from haute couture, to leather good, fragrances, shoes, eyewear & jewellery

Lifestyle Lifestyle is the way consumers choose to live, spend money and their valuable time (Babin & Harris 2013, p113) Lifestyle captures something more than just a personality or a social class, it profiles the way that a person acts and interacts with the world around them.(P Kotler, S Adam, L Brown & G Armstrong 2006, pg162) Lifestyle portrays the ‘’whole person’’, and marketers are constantly searching for the relationship between products and lifestyles due to the ever changing and latest lifestyle trends. (Kotler & Keller 2006 pg 182) For marketers the prediction of behaviors that can be learnt by looking at consumer lifestyle has become an invaluable tool.

Psychographics Psychographics are the quantitative technique of measuring the lifestyles of consumers (Babin & Harris 2013, p113)and the going on to be able to develop lifestyle classifications which involves measuring key influencing factors. (P Kotler, S Adam, L Brown & G Armstrong 2006, pg162) A key tool used to perform a psychographic analysis is an AIO Statement.(Kotler & Keller 2006 pg 183) A = Activity I = Interest O = Opinions

Psychographics continued… Using the AIO statements, marketers are able to gain a deeper understanding of consumer values and how they affect buying behavior. It is frequent that marketing segments contain consumers with similar lifestyle (Babin & Harris 2013, p113),but there are numerous way to segment consumer based on their lifestyle.

VALS ( Values and Lifestyles ) This is a widely used psychographic method that allows consumers to be divided in to groups based on their resources and consumer behavior motivations (Babin & Harris 2013, p114) Consumers a divided in to 8 diverse segments(Babin & Harris 2013, p114) These segments are infused by the three Primary motivations (Babin & Harris 2013, p114) o Ideals motivation o Achievement motivation o Self expression motivation Segments are also influnced by resource's that are available to the consumer, such as:(Babin & Harris 2013, p114) o Financial Resources o Educational Resources o Intellectual Resources

VALS Segments Innovators Thinkers Achievers Experiencers Believers Strivers Makers Survivors (Babin & Harris 2013, p115)

VALS Segments for Prada Being a luxury brand, Prada would fit in to the below VAL segments Innovators: The brand identity that Prada portrays the successful, sophisticated consumer, with high self esteem with motivation by ideals and self expression. Image being important to this type of consumer, therefore to be seen with any product within the brand can be seen to be successful, due to having the lifestyle means to purchase such luxury products. Achievers: With image being an important lifestyle factor in this VALS sector Prada fits the high flying lifestyle. Achiever's strive to be successful in their career, leading to an increased means to purchase prestige products including Prada.

PRIZM Another Lifestyle analysis tool in which geodemographic techniques that combine data on consumer spending, socioeconomic variables along with geographical information to identify commonalties' among consumers consumption rates of households in various regions (Babin & Harris 2013, p114) P= Potential R= Ratings I = Index Z = By Zip M= Market

PRIZM continued Technique uses a total of 66 segments that are used as descriptors for specific households and are ranked according to socioeconomic variables Examples of some segments include: o Movers and Shakers: This segment relates back to the Achievers in the VALS segmentation tool. People that are highly motivated, and successful who have high self esteem and image is of a high value. Prada’s brand identity fits well with this segment o Money and Brains: Prada is a brand that would be often purchased in this segment, people in this segment tend to have good income and are placed in cities where the products/shops are accessible o Back Country Folk: Prada would not be a brand that would commonly be seem among this demographic as they are most likely to be consumers from smaller towns, with smaller income and therefore a luxury brand is not in this segments reach.

Demographics Demographics Can be used as well as a psychographic analysis (Babin & Harris 2013, p114) Are the observable, statistical aspect of populations including(Kotler & Keller 2006 pg 179): o Age o Ethnicity o Income o Educational background o Household patterns o Economic environment

Role of Self Concept in Consumer Behaviour This refers to the way consumers like to view them selves (Kotler & Keller 2006 pg 183) rather than actual self image. Consumers tend to be more motivated to act in accordance with their self concept analysis (Babin & Harris 2013, p116) Body and Self Esteem refer to how a highly (or low) a consumer holds these self concepts. Prada consumers tend to have a high sense of self esteem along with body esteem. More recently, cosmetic surgery and other types of body medications ( like a tattoos and piercings) have been on the rise. These are all forms of self expression that can alter a consumers sense of actual self image.

Self Congruency Theory in Relation to Consumer Behavior The “Self Congruency Theory” looks at consumer behaviour being matched between a consumers self –concept and the image of a particular product. (Babin & Harris 2013, p118) For example consumers that purchased Prada products see them selves as confident, sexy, successful people and this is an image that Prada create through the advertisement and placement of their products in the marketplace.

Consumer Identity and Product Ownership o When consumers have a strong tie with a brand, it is suggested that the brand is used as validation of the consumers identity through product ownership(Babin & Harris 2013, p118-9) o For example, a consumer wearing Prada Sunglasses where the brand is on display is creating an identity of wealth and high self esteem. Organizational Identification o Consumers feel close to an organisational, this is called ‘’organisational identification’’. o For consumers the organisation then becomes a form of self expression o For example, a customer that is wearing a Prada watch can then be identified by those around them and use that product to show that they are committed to the brand to those around them

Thank you for your time

Reference List Babin, BJ & Harris, EG 2013, CB5, Cengage, United States P Kotler & K Lane,2006, Marketing Management 12e, Pearson Education Australia, Australia P Kotler, S Adam, L Brown & G Armstrong, 2006 Principles of Marketing ed3 Pearson Education Australia, Australia