How Do Values Relate to Consumer Analysis?

• Values are beliefs that one condition is preferable to another
• Important vs. unimportant
• what are some values?
• environmentalism, egalitarianism, integrity,
• are these values the same for all people?  eg old, young, Generation X

The Rokeach Value Survey

• Terminal values (desired end states – e.g. successful jobs)
• Instrumental values (the means to get there - eg RU education, a beautiful home?)
• Can known values be translated into product differences?
• eg RU School of Business - what message can we use  - linkage is clear?

• It links products and product benefits with personal values
• The product promises a clean house, but depicts higher order goals

Laddering

• People are asked to reveal their linkages
• Mouthwash
• Has certain attributes – e.g. fluoride
• This stops cavities
• Which helps teeth stay healthy
• So they are attractive

What is a consumer lifestyle?

• It is a constellation of individual characteristics that reflect certain behaviors
• Participation in groups, activities, hobbies, volunteer activities
• Commitments to certain behaviors
• Product constellations

Lifestyle impacts on Consumer Analysis

• What type of leisure behavior is preferred?
• Foundation of time use and time preferences - time inventory
• Solomon:  a pattern of consumption reflecting a person’s choices of how he or she spends time and money
• Patterns of consumption are based on lifestyle
• People sort themselves into groups based on what they like to do - sports, reading, fishing , music enthusiasts

VALS, VALS II, SRI

• Combined Maslow’s hierarchy of needs with inner and outer directedness
• 9 lifestyles in VALS, 8 in VALS2
• Note new terms in online VALS
• How do AIOS relate to the segments?
• summarizes the values held and lifestyles observed, correlated with demographics and buying patterns
• Need to be able to describe other segments

VALS Segments:  resources vs. what is important to you

• Actualizers: successful, many resources
• Fulfilleds: career oriented, practical, principles
• Achievers: career-oriented, predictability
• Experiencers:  impulsive, young, action
• Believers:  strong principles, proven brands
• Strivers: like achievers, fewer resources
• Makers:  action, DIY
• Strugglers:  difficult life

• How do we study lifestyle - we look at patterns of behavior
• VALS scale - let’s look at the website
• a method of study which came from personality theory  and motivational research (chap 7)
• supplements demographic information, quantitative research
• Activities - hobbies, vacations, sports
• Interests - fashion, politics, job
• Opinions- social issues, politics, products

Psychographics adds info to demographics

• Consumers in your target market may have a similar demographic profile, but have vastly different interests, different product needs
• Came from motivational research, projective techniques which gave depth info on a few people - not clinical methods
• Large scale surveys gave quantitative info on many people
• Refer to examples on the VALS site

Let’s Look at the Levi’s Case: Psychographic Inventory

• I always shop for my own wardrobe.
• Alterations are a waste of time.
• A suit is a way of expressing myself.
• My budget influences the clothing I own.
• I value the opinions of other in clothing.

Strongly agree - agree - neither - disagree -strongly disagree
 

How about word association?

• The name “Levis” makes me think of ____.
• The name “Strauss” makes me think of ___.
• A company that makes jeans can’t make good suits.
• I would never wear a suit by Levis.

How would you answer these?

• I like to do home repairs.
• There is always something that needs to be fixed at my house.
• My home is a way of expressing myself.
• My budget influences how my home looks.
• I value the opinions of others where my home is concerned.
• At our house, no one can fix anything.

Materialism - what things are important?

• What is the importance people place on worldly possessions
• Are certain products associated with a certain lifestyle?
• What items represent a typical US standard of living? List ________
• What were these 10 years ago? 20 years?
• What represents a “desired” US lifestyle
• What would a home, its furnishings look like?
• What rooms would be in the home?

How are these ideas used?

• What product constellations (groups of products) appeal to consumers?
• What activities to use as selling locations, to use in ads
• What types of accompanying products to depict - e.g. ads for home design and home furnishings
• What mix of stories, news coverage, and ads to carry in a magazine or newspaper
• What ads to program in to appear when a user of a certain profile accesses your website

Relationships

• Relationship marketing—the development of marketing strategies to enhance relationships with customers
• The 80/20 principle
• Focus on customer retention rather than on recruitment

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