Copyright Atomic Dog Publishing, 2002 Chapter 6 Personal values, Lifestyles, Psychographics, and Relationships

Copyright Atomic Dog Publishing, 2002 Chapter Spotlights Personal values Consumer lifestyles Psychographics Relationships

Copyright Atomic Dog Publishing, 2002 Personal Values A person’s enduring beliefs that specific modes of conduct or end-states of existence are preferred to other modes and end-states Measures of personal values: Rokeach personal values scale Instrumental values (modes of conduct) and terminal values (end-states) List of values (LOV) Nine dominant consumer values: self-fulfillment, excitement, sense of accomplishment, self-respect, sense of belonging, being well respected, security, fun and enjoyment, warm relationships with others

Copyright Atomic Dog Publishing, 2002 Personal Values (continued) Means-end chain model It links products and product benefits with personal values It demonstrates how the physical, tangible attributes of products (means) can be psychologically linked with personal values (ends) using the following six product aspects: concrete attributes, abstract attributes, functional consequences, psychosocial consequences, instrumental values, and terminal values

Copyright Atomic Dog Publishing, 2002 Personal Values (continued) Laddering – analyzing means-end chains to reveal how certain goods and services are connected with personal values in the minds of the consumers.

Copyright Atomic Dog Publishing, 2002 Lifestyles Lifestyle is the way a person lives and the constellation of products and services used to support this existence. It is a group phenomenon influences many aspects of behavior implies a central life interest Lifestyles vary according to sociologically relevant variables (e.g. co-culture, social class, occupation) Lifestyles and product constellations

Copyright Atomic Dog Publishing, 2002 Psychographics These are factors used in attempts to analyze and measure lifestyle. The following aspects of personality, attitudes, and behavior are typically considered: Personality traits and the concept of self Attitudes toward product classes and towards brands Activities, interests, and opinions Values systems Goods and services consumed Media use patterns

Copyright Atomic Dog Publishing, 2002 Values and Lifestyle Typologies Values and Lifestyles (VALS) – 1978 Stanford Research Institute VALS 2 – 1989 (continually changing) Exhibit 6-7 Psychological orientations Principle-oriented: influenced by closely-held beliefs or principles Status-oriented: influenced by important others; imitating actions/opinions and seeking their approval Action-oriented: seek physical/social activity; tend to take risks

Copyright Atomic Dog Publishing, 2002 Values and Lifestyle Typologies Resources: high vs. low Innovation acceptance: high vs. low VALS Web site: bi.com/VALS/presurvey.shtml

Copyright Atomic Dog Publishing, 2002 Relationships Relationship marketing – the development of marketing strategies to enhance relationships with customers The 80/20 principle (80% of firm’s business is “repeat” and 20% is “new”) Focus should be on customer retention rather than recruitment

Copyright Atomic Dog Publishing, 2002 Relationships with Brands Committed Partnerships Arranged marriages Marriages of convenience Courtships Rebounds Dependencies Flings

Copyright Atomic Dog Publishing, 2002 Relationships with Brands (continued) Enmities Secret affairs Casual friends/buddies Best friendships Compartmentalized friendships Childhood friendships Kinships Enslavements

Copyright Atomic Dog Publishing, 2002 Relationships with Firms Morgan and Hunt’s definition of relationships marketing: “All marketing activities directed at establishing, developing, and maintaining successful relational exchanges in … supplier, lateral, buyer, and internal partnerships.” Corporate performance is determined by managing relationships with the various stake holders  relationship quality Commitment and trust

Copyright Atomic Dog Publishing, 2002 Relationships with Corporate Firms Relationships between a firm and its customers are based on trust, satisfaction, and commitment. Relationship quality is tied to its “corporate image.” Company keys: Produces and/or delivers good products and services Is well-managed Is guided by social concerns beyond the profit motive Is involved in the community Is responsive to consumer needs Treats it employees well

Copyright Atomic Dog Publishing, 2002 Relationships with Service Firms Relationship quality for a service firm is a function of whether its customers perceive the firm as: Providing tangible benefits Reliable in delivery of these benefits Responsive to their (customers) needs Providing those tangible benefits with assurance Empathic through expressions of care

Copyright Atomic Dog Publishing, 2002 Relationships with Internal Divisions within a Firm Relationships within the firm are crucial in delivering relationship quality to outsiders It refers to the working conditions and cooperation among the various groups within a firm such as marketing and R&D: Communication and meetings Cross-functional teams Training materials to address customer needs Interaction with managers of internal customers Orientations for new employees Interview and surveys of internal clients