Chapter 6 Personality and Lifestyles CONSUMER BEHAVIOR, 8e Michael Solomon

Chapter Objectives When you finish this chapter you should understand why: A consumer’s personality influences the way he responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results. Consumers’ lifestyles are key to many marketing strategies. Psychographics go beyond simple demographics in helping marketers understand and reach different consumer segments. Prentice-Hall, cr 2009

Chapter Objectives (cont.) Identifying patterns of consumption can be superior to knowledge of individual purchases when crafting a lifestyle marketing strategy. Prentice-Hall, cr 2009

Personality Personality: a person’s unique psychological makeup and how it consistently influences the way a person responds to his/her environment Prentice-Hall, cr 2009

Freudian Systems Personality = conflict between gratification and responsibility Id: pleasure principle Superego: our conscience Ego: mediates between id and superego Reality principle: ego gratifies the id in such a way that the outside world will find acceptable Prentice-Hall, cr 2009

Freudian Systems (cont.) Marketing Implications Unconscious motives underlying purchases Symbolism in products to compromise id and superego Sports car as sexual gratification for men Prentice-Hall, cr 2009

Symbolism in products Ego relies on the symbolism in products to compromise between the demands of Id and prohibition of superego, The person channels his/her unacceptable desire into acceptable outlets by using product symbolism and MOTIVATION. Symbolism in products to compromise id & superego E.g. Ice cream to feel like a kid again Freudian ideas unlock deeper product & advertisement meanings Prentice-Hall, cr 2009

Motivational Research To unlock deeper product and advertisement meanings Consumer depth interviews Latent motives for purchases Examples of Dichter’s motives (Table 6.1) Bowling, electric trains, power tools = power Ice cream, beauty products = social acceptance Prentice-Hall, cr 2009

Prentice-Hall, cr 2009 Table 6.1 (abridged)

Motivational Research (cont.) Criticisms Invalid or works too well Too sexually-based Appeal Less expensive than large-scale surveys Powerful hook for promotional strategy Intuitively plausible findings (after the fact) Enhanced validity with other techniques Prentice-Hall, cr 2009

Neo-Freudian Theories Karen Horney Compliant versus detached versus aggressive Alfred Adler Motivation to overcome inferiority Harry Stack Sullivan Personality evolves to reduce anxiety Prentice-Hall, cr 2009

Neo-Freudian Theories: Jung Carl Jung: analytical psychology (psychotherapy) Collective unconscious People are shaped by the cumulative experiences of past generations. (afraid of the dark!) Archetypes: Shared memory of ancestral past. Archetypes in advertising (old wise man, earth mother, etc.) BrandAsset® Archetypes model BAV® Brand Health measures Prentice-Hall, cr 2009

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BrandAsset Valuator Archetypes Prentice-Hall, cr 2009 Figure 6.1 (part 1 of 2)

BrandAsset Valuator Archetypes (cont.) Prentice-Hall, cr 2009 Figure 6.1 (part 2 of 2)

BrandAsset® Archetypes + BAV® Brand Health Archetypes across cultures and time Archetypes telegraph instantly Strong evidence of achieving business objectives with this model “Early warning” signal of brand trouble Prentice-Hall, cr 2009

Trait Theory Personality traits: identifiable characteristics that define a person Traits relevant to consumer behavior: Innovativeness The degree to which a person likes to try new things Materialism Amount of emphasis placed on acquiring and owning products Self-consciousness The degree to which a person deliberately monitors and controls the image of the self that is projected to others Need for cognition The degree to which a person likes to think about things (i.e., expend the necessary effort to process brand information) Frugality Deny short-term purchasing whims and resourcefully use what one already owns Prentice-Hall, cr 2009

Discussion This classic ad starts off with the line: “The Datsun 240-Z is not exactly what you would call a common site.” What consumer personality trait is this ad appealing to? Prentice-Hall, cr 2009

Are You an Innie or an Outie? Idiocentrics (individualist orientation) Allocentrics (group orientation) Contentment More satisfied with current life Less satisfied with current life Health Consciousness Less likely to avoid unhealthy foods More likely to avoid unhealthy foods Food Preparation Spend less time preparing food Love kitchen; spend more time preparing food Workaholics More likely to work hard and stay late at work Less likely to work hard Travel and Entertainment More interested in traveling to other cultures Visit library and read more Prentice-Hall, cr 2009

Problems with Trait Theory Prediction of product choices using traits of consumers is mixed at best Scales not valid/reliable Tests borrow scales used for the mentally ill Inappropriate testing conditions Ad hoc instrument changes Use of global measures to predict specific brand purchases “Shotgun approach” (no thought of scale application) Prentice-Hall, cr 2009

Brand Personality Brand personality: set of traits people attribute to a product as if it were a person Brand equity: extent to which a consumer holds strong, favorable, and unique associations with a brand in memory—and the extent to which s/he is willing to pay more for the branded version of a product than for a nonbranded (generic) version Extensive consumer research goes into brand campaigns Prentice-Hall, cr 2009

Animism E.g. “Lust, envy, jealousy. The dangers of Volvo.” Animism: The practice found in many cultures whereby inanimate objects are given qualities that make them somehow alive Two types of animism: Level 1: People believe the object is possessed by the soul of the being (e.g. celebrity spokespersons) Level 2: Objects are anthropomorphized, or given human characteristics. (e.g. Charlie the Tuna, Keebler Elves, or the Michelin Man) Positioning/repositioning strategies describing brands as people E.g. “Lust, envy, jealousy. The dangers of Volvo.” Prentice-Hall, cr 2009

Brand Behaviors and Personality Trait Inferences Brand Action Trait Inference Brand is repositioned several times or changes slogan repeatedly Flighty, schizophrenic Brand uses continuing character in advertising Familiar, comfortable Brand charges high prices and uses exclusive distribution Snobbish, sophisticated Brand frequently available on deal Cheap, uncultured Brand offers many line extensions Versatile, adaptable Prentice-Hall, cr 2009 Table 6.2 (abridged)

Lifestyles Lifestyle: patterns of consumption reflecting a person’s choices of how one spends time and money Lifestyle marketing perspective: people sort themselves into groups on the basis of: What they like to do How they spend leisure time How they spend disposable income Example: Magazines targeting specific lifestyles: WWF Magazine, 4 Wheel & Off Road, Reader’s Digest Prentice-Hall, cr 2009

Lifestyles as Group Identities Forms of expressive symbolism Self-definition of group members = common symbol system Terms include lifestyle, taste public, consumer group, symbolic community, status culture Each person provides a unique “twist” to be an “individual” Tastes/preferences evolve over time Prentice-Hall, cr 2009

Products as Building Blocks of Lifestyles Product usage in desirable social settings Consumption style Patterns of behavior Co-branding strategies: brands team up with other companies to promote their products understand this (Porsche-Fairmont hotel) Product complementarity: symbolic meanings of different products relate to one another Consumption constellations: define, communicate, and perform social roles Sets of complementary products used to define, communicate and perform social roles (e.g. Yuppie)

Linking Products to Lifestyles Prentice-Hall, cr 2009 Figure 6.2

Product complementarity Prentice-Hall, cr 2009

Discussion What consumption constellation might characterize you and your friends today? Prentice-Hall, cr 2009

Psychographics Psychographics: use of psychological, sociological, and anthropological factors to: Determine market segments Determine their reasons for choosing products Fine-tune offerings to meet needs of different segments Consumers can share the same demographics and still be very different! Prentice-Hall, cr 2009

Best Buy Psychographic Segments “Jill:” busy suburban mom who buys electronics for family “Buzz:” focused, active younger male interested in buying latest gadgets “Ray:” family man who likes his technology practical “BB4B (Best Buy for Business):” small employer “Barry:” affluent professional male who’ll drop tens of thousands of dollars on a home theater system Prentice-Hall, cr 2009

Lifestyle/Personality Variables for Soup Active Lifestyle (Vegetable): I am: outdoorsy, physically fit, workaholic, socially active Mentally Alert (Clam Chowder): I am: intellectual, sophisticated, creative, detail-oriented, witty, nutrition conscious Family Spirited (Chicken Noodle): I am: family-oriented, churchgoer, traditional Social (Chili): I am: fun at parties, outgoing, spontaneous, trendsetter Homebody (Tomato): I am: a homebody, good cook, pet lover; I enjoy spending time alone Athletic (Cream Soups): I am: athletic, competitive, adventurous Intellectually Stimulated Pastimes (French Onion): I am: a technology whiz, world traveler, book lover Carefree (Minestrone): I am: down-to-earth, affectionate, fun loving, optimistic Prentice-Hall, cr 2009 Table 6.3

Doing a Psychographic Analysis Lifestyle profile: differentiates between users and nonusers of a product Product-specific profile: identifies a target group and profiles consumers based on product-related dimensions General lifestyle segmentation: places a large sample of respondents into homogeneous groups based on similarities of preferences Product-specific segmentation: tailors questions to a product category Prentice-Hall, cr 2009

AIOs Grouping consumers according to: Activities Interests Opinions 80/20 Rule: lifestyle segments that produce the bulk of customers Heavy users and the benefits they derive from product Prentice-Hall, cr 2009

Lifestyle Dimensions Activities Interests Opinions Demographics Work Family Themselves Age Hobbies Home Social issues Education Social events Job Politics Income Vacation Community Business Occupation Entertainment Recreation Economics Family size Club membership Fashion Dwelling Food Products Geography Shopping Media Future City size Sports Achievements Culture Stage in life cycle Prentice-Hall, cr 2009 Table 6.4

Psychographic Segmentation Uses To define target market To create new view of market To position product To better communicate product attributes To develop overall strategy To market social/political issues Prentice-Hall, cr 2009

VALS2TM Prentice-Hall, cr 2009 Figure 6.3

Discussion Construct separate advertising executions for a cosmetics product targeted to the Belonger, Achiever, Experiencer, and Maker VALS types. How would the basic appeal differ for each group? Prentice-Hall, cr 2009

Global Psychographic Typologies Global MOSAIC Identifies segments across 19 countries RISC Lifestyles/sociocultural change in 40+ countries Divides population into 10 segments using 3 axis: Exploration/Stability Social/Individual Global/Local 40 measured “trends” (e.g., “spirituality”, “blurring of the sexes”, “Environment”, “Uncertainty”, “social participation”…etc) Prentice-Hall, cr 2009

Discussion Extreme sports. Day trading. Blogging. Vegetarianism. Can you predict what will be “hot” in the near future? Identify a lifestyle trend that is just surfacing in your universe. Describe this trend in detail, and justify your prediction. What specific styles and/or products are part of this trend? Prentice-Hall, cr 2009

Ten Risk Segments Prentice-Hall, cr 2009 Figure 6.4

Geodemography Consumer expenditures/socioeconomic factors + geographic information “Birds of a feature flock together” Can be reached more economically (e.g., 90277 zip code in Redondo Beach, CA) Prentice-Hall, cr 2009

Discussion Geodemographic techniques assume that people who live in the same neighborhood have other things in common as well. Why do they make this assumption, and how accurate is it? Prentice-Hall, cr 2009

Food Cultures Food culture: pattern of food and beverage consumption that reflects the values of a social group Differences in international food cultures: In China, milk chocolate has less milk In United States, Campbell’s soup is saltier than in Mexico In Germany, food must be healthier Prentice-Hall, cr 2009

PRIZM by Claritas, Inc. PRIZM (Potential Rating Index by Zip Market) combines demographic, consumer behavior, and geographic data to help marketers identify, understand and target their customers and prospects 66 clusters of U.S. zip codes Example: “Young Influential,” “Money and Brains,” “Kids and Cul-de-Sacs” Ranked by income, home value, and occupation Maximize effectiveness, cost-efficiency, and impact of marketing communications Click to access Mybestsegments.com Prentice-Hall, cr 2009

Comparison of Two PRIZM Clusters Furs and Station Wagons New money, parents in 40s and 50s Newly built subdivisions with tennis courts, swimming pools, gardens High Usage Country clubs Wine by the case Lawn furniture Gourmet magazine BMW 5 Series Rye bread Natural cold cereal Low Usage Motorcycles Laxatives Nonfilter cigarettes Chewing tobacco Hunting magazine Chevrolet Chevette Canned stews Tobacco Roads Racially mixed farm town in South Small downtowns with thrift shops, diners, and laundromats; shanty-type homes without indoor plumbing High Usage Travel by bus Asthma medicine Malt liquors Grit magazine Pregnancy tests Pontiac Bonneville Shortening Low Usage Knitting Live theater Smoke detectors Ms. Magazine Ferraris Whole-wheat bread Mexican foods Prentice-Hall, cr 2009 Table 6.5