1. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 1

2. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 2 Psychographics Description of consumers based on their psychological and behavioral characteristics. Values and behaviors lead to lifestyle choices

3. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 3 Values and Value Systems SPECIFIC VALUES Abstract, enduring beliefs about what is right or wrong VALUE SYSTEM Integrated set of specific values, some of which may conflict SPECIFIC VALUES Abstract, enduring beliefs about what is right or wrong SPECIFIC VALUES Abstract, enduring beliefs about what is right or wrong SPECIFIC VALUES Abstract, enduring beliefs about what is right or wrong SPECIFIC VALUES Abstract, enduring beliefs about what is right or wrong

4. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 4 Acculturation (also known as Socialization) The process of adopting and internalizing at least some of the values of society and/or a smaller sub-culture Learned process that takes place over time Over time, personal values may also come to take precedence over societal values

5. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 5 Types of Values Global: Most enduring and abstract values Terminal: Highly desired end states Instrumental: Means to an end

6. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 6 Some Western Values Materialism Home –The “American dream” –“A man’s home is his castle” Work and play –“Live to work” vs. “work to live” Individualism Family and children Health Hedonism

7. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 7 More Values Authenticity –“The real thing” vs. knock- offs –Preference for craftsmanship The environment Technology

8. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 8 Influences on Values Culture –Hofstede’s Dimensions Individualism (vs. collectivism) Power distance Masculine vs. feminine Strong vs. weak uncertainty avoidance Short vs. long term orientation Ethnic identification Social Class/Status Age

9. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 9 Understanding Values Through Means-End Chains Large engine Fast acceleration Performance Feeling of power Self-esteem Promotion/ positioning should be aimed at higher levels of chain! Attributes Consequences Values Note additional details on the handout.

10. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 10 Questionnaires on/ Inventories of Values Rokeach Value Survey (RVS) –Instrumental vs. terminal values List of Values (LOV) –Ranking of values by Importance

11. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 11 Personality Approaches –Psychoanalytic (Freud and associates) –Trait theories –Phenomenological: Individual’s outlook is shaped by experiences (e.g., locus of control) –Social Psychological Characteristics relating to interaction with others determines personality –Behavioral (Skinnerian): Behaviors that have been reinforced are likely to persist

12. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 12 Some Relevant Personality Factors Optimal Stimulation Level (OSL) Dogmatism Need for Uniqueness Creativity Need for Cognition Susceptibility to Influence Frugality Self-monitoring Competitiveness (“Type A”)

13. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 13 Lifestyle--Implications Segmentation, targeting, and positioning Communications New product ideas

14. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 14 Psychographics PSYCHOGRAPHICS PERSONALITY PSYCHOLOGICAL MAKEUP VALUES LIFESTYLE BEHAVIOR

15. MKT 450 PSYCHOGRAPHICS: VALUES, PERSONALITY, AND LIFESTYLES Lars Perner, Instructor 15 Approaches to Psychographics VALS: Eight segments –Primary motivators and other influences Other approaches –Mindbase