| Consumers Eric Arnould,
University of Nebraska George Zinkhan,
University of Georgia Linda Price,
University of Nebraska
Lifestyles: Component Consumption Sub-Cultures
eLearning Session- Learning Objectives
After completing this chapter, you should be able top: - Identify role-related product constellations.
- Describe psychographics and lifestyles research.
- Understand the use of lifestyles data to profile segments, identify related
lifestyle interests, and locate lifestyle segments geographcially.
- Recognize lifestyle typologies such as VALS. LOVs, Japan VALS, and Global
Scan.
- Understand how lifestyle may be used at various levels of aggregation.
- Identify the value and limitations of lifestyle research.
- Chapter Overview
- Product Constellations
- Products are important for communicating social information. The "lifestyle"
term implies a pattern of behavior that is reflected in and reflects the
consumption not merely of single products, but of interrelated product clusters
or product constellations. Product constellations are clusters
of complementary products, specific brands, and/or consumption activities.
Product constellations are socially meaningful sets of consumption stimuli
that are used by consumers both for self-definition and for the categorization
of others.
- In the late 1960s, two U.S. researchers employed product usage data concerning
80 products in an attempt to identify behavioral lifestyles. These authors
also reported some evidence of distinctions between these segments and consumption
of particular brands of beer. Industry Insights 8.1 shows the contents of
product constellations elicited for some male social roles in the United
States.
- Lifestyle profiles can be organized around a single product category.
Such product category specific lifestyle profiles are the bread and butter
of many marketing research firms and offer valuable insights on specific
appeals and vehicles to use in targeting product category users.
- Some particularly strong product-to-role relationships have led researchers
to speak of brand tribes for people who are devoted to a particular
brand, such as clothes by No Fear in the U.S. or by NafNaf or Clark's
in Europe. When product-to-role relationships are especially strong, the
brands become a defining symbol of a commitment identify, hence the term
brand tribe.
- Product constellations can be matched with demographic profiles and media
preferences to improve targeting. Advertisers can use product constellations
to engineer the context of ads (e.g., to indicate what other products should
appear along side the advertised brand). Product constellations also have
implications for store layouts. For example, merchandisers may place complementary
items together rather than organize the store by product categories.
- Lifestyle profiles constructed from product constellations also have some
weaknesses. Troublesome problems with the statistical procedures used to
profile consumers of particular product bundles exist. If a product is too
closely associated with one role that conflicts with other roles, it may
not suit the consumer's needs. Further, lifestyle profiles are also insensitive
to effects of potential innovations, environmental influences and changes
in corporate strategy. Marketers must also avoid allowing the product constellation
to become a cliché so that potential customers begin to shun it.
- Psychographics and Lifestyles
- VALS, LOV, and Other Psychographic Segmentation Schemes
- In this section we describe some widely used approaches to lifestyle marketing.
Although each of these has gained rapid acceptance and widespread use, each
has certain limitations. For example, marketers must be careful about the
cultural assumptions they make in their use of these psychographic segmentation
schemes. Sometimes these approaches can be used to identify lifestyle segments
across country borders, but this requires considerable managerial judgment
and expertise.
VALUES AND LIFESTYLES SYSTEMS (VALS 1). - A team of researchers at the Stanford Research Institute (SRT) has developed
several very influential values-based lifestyle segmentation schemes, widely
used by firms in North Amercia. VALS 1 was based on the work of two
psychologists: Abraham Maslow's hierarchy of human needs and David Reisman's
concept of social character.
- VALS 1 partitioned the market into nine groups based on Maslow's hierarchal
model of human needs (from most basic physiological needs to most abstract
self-actualization needs), and Reisman's model of external or internal basic
goal orientations. Exhibit 8.1 compares a profile of North American and
European VALS 1 segments and shows the approximate percentage of U.S. residents
in each group.
EXHIBIT 8.1 COMPARISON OF VALS 1 SEGEMENTS IN NORTH AMERICA AND EUROPE
Image A (65.0K) Image B (43.0K) - VALS 1 enjoyed massive early success for clients as diverse as Merrill
Lynch, Dr. Pepper, Clairol, and Folonari wine. By the late 1980s VALS
1 had outlived its usefulness. Among the criticisms were that the classification
was too abstract and too general. In addition, their origin in development
of psychology does not seem especially applicable to consumer markets.
As a result, there are too many similarities between groups and too
few differences among them. Given the imbalance in size between segments,
the system was not useful for identifying markets.
VALUES AND LIFESTYLES SYSTEMS (VALS 2). - In response to criticisms of VALS 1, the team at SRI developed the VALS
2 scheme that classifies people into segments based on whether they
control abundant or minimal resources, and three aspects of their basic
motivational self-orientations: principle, status, or action. Using the
dimensions of self-orientation and resources, VALS 2 has defined eight consumer
segments with differing attitudes and behavior patterns. The groups are
fairly balanced, proportionately ranging from 8 percent to 16 percent of
the population, so that each represents a viable consumer target. Marketers
are advised to take different approaches when dealing with principle-oriented
consumers versus status-or action-oriented ones. Principle-orientedpeople
are guided by intellectual matters. The principle-oriented segments
are labeled as Fulfilleds and Believers. Status-orientedpeoplealter
their behavior to fit their surroundings to win the approval of important
reference groups and individuals. The two status-oriented segments are
labeled as Achievers and Strivers. One difference between these two segments
is the amount of resources available, indicated by the vertical axis in
Exhibit 8.2. Achievers have access to more resources than strivers, as defined
by the VALS 2 framework.
Exhibit 8.2: VALS 2 Segment Profiles (50.0K) - Action oriented people thrive on new social or physical activities.
Experiences and Makers are the two segments. The resource measure indicates
the ability of a particular group to respond to an appeal to buy. VALS 2
recognizes that a wide range of constraints, from financial to psychological,
can prevent a person's values from having free expression in the way they
live.
- People can be segmented into one of the following VALS types: Actualizers
are successful, sophisticated, active, take-charge people with high self-esteem
and abundant resources. They are interested in growth and seek to develop,
explore, and express themselves in a variety of ways. Fulfilleds are mature,
satisfied, comfortable, reflective people who value order, knowledge, and
responsibility. Most are well educated and in (or recently retired from)
professional occupations. They are will informed about world and national
events and are alert to opportunities to broaden their knowledge.
Achievers are successful career and work-oriented people who like
to, and generally do, feel in control of their lives. They value consensus,
predictability, and stability over risk, intimacy, and self-discovery. They
are deeply committed to work and family. Experiencers are young, vital, enthusiastic, impulsive, and rebellious.
They seek variety and excitement, savoring the new, the offbeat, and the
risky. Still in the process of formulating life values and patterns of behavior,
they quickly become enthusiastic about new possibilities but are equally
quick to cool. At this stage they are politically uncommitted, uninformed,
and highly ambivalent about what they believe. Believers are conservative, conventional people with concrete beliefs
based on traditional, established codes: family, church, community, and
the nation. Many believers express moral codes that are deeply rooted and
literally interpreted. They follow established routines, organized in large
part around home, family, and social and religious organizations to which
they belong. Strivers seek motivation, self-definition, and approval from the
world around them. They are striving to find a secure place in life. Unsure
of themselves and low on economic, social, and psychological resources,
strivers are concerned about the opinions and approval of others. Makers are practical people who have constructive skills and value
self-sufficiency. They live within a traditional context of family, practical
work, and physical recreation and have little interest in what lies outside
that context. Makers are experience the world by working on it-building
a house, raising children, fixing a car, or canning vegetables-and have
enough skill, income, and energy to carry out their projects. Strugglers live in constricted life's. Chronically poor, ill educated,
low skilled, without strong social bonds, elderly, and concerned about their
health, they are often resigned and passive. Because they are limited by
the need to meet the urgent needs of the present moment, they do not show
a strong self-orientation. Their chief concerns are for security and safety.
- If you go to the website and take the survey yourself, you will find that
you will be segmented into one of the following VALS types: actualizers,
fulfilleds, achievers, experiencers, believers, strivers, makers, and strugglers.
Actualizers are the highest in terms of resources. Strugglers are the lowest.
- Some problems with the survey may include the wording of the questions
and the lack of a neutral response. Most questions are worded in such a
way that respondents may choose an answer that is socially desirable rather
than one that is strictly honest.
- Other problems with the survey have been identified by Douglas Holt. According
to Holt, segmenting people according to their values and lifestyle will
give researchers some idea of that they consume, but how they consume will
still be missing. Thus, it is important to take into account the context
of consumption in order to understand the segments. Ethnographic research
provides a way to understand various contexts, including in-depth interviews
about how people use the products and services that they buy. In contrast,
psychographics relies upon a personality or values-based approach, where
consumption patterns are identified for categories of goods owned and activities
pursued. For instance, by administrating a survey, it is discovered that
Achievers tend to own patio furniture at a higher than average rate. Patio
furniture is assumed to express the Achiever lifestyle regardless of how
it is understood and used by the actual consumers.
- Like VAL 1, VALS 2 clarifies understanding of consumer segments for targeted
marketing. As a first step, marketers might identify the light, heavy, and
non-using segments of the product category in question. For example, Industry
Insights 8.3 compares pain reliever users by VALS 2 segements.
Industry Insights 8.3: Pain Reliever Use by Vals 2 Type (50.0K) - The VALS systems have been used to segment markets and to target new product
introductions. For each group one may define key product constellations
as well as appropriate communication styles, media communication, and particular
elements of the marketing mix to emphasize.
Japan VALS - SRI has recently extended the VALS system to Japan. Like VALS 2 its typologies
are based on product usage and behavior as well as attitudes.
- The Japan VALS identifies leaders of change and their relationship
to emerging social trends. Japan VALS identifies four important dimensions:
Exploration-an individual's active involvement and motivation to
master new challenge. Self-Expression-sociable, enjoys sports, and impulsive shoppers. Achievement-career, status, leadership, and culture. Tradition-stability, order, community, and traditional beliefs.
Realists-follow a reactive orientation to life; relatively unconcerned
with self-improvement or fashion. - The exploration and life orientation dimensions are statistically designed
to predict activity with regard to innovation, consumption, production and
social control or mediation. Four main groups - change leaders, adapters,
followers, and change resisters, divided into ten standard segments, emerge
from the VALS Japan analysis. The Japan VALS analysis and characteristics
of the groups are shown in Exhibit 8.4.
Exhibit 8.4: Japan VALS Segments (50.0K) - In addition to the standard segmentation, Japan VALS defines three other
levels of analysis that allow subscribers to focus on specific industry
markets, niche segments for specific products and market opportunities,
and international comparisons.
- Understanding pressures experienced in different cultures can translate
into market opportunities. For example, U.S. strivers want fun, stylish,
fast, good value cars. Japanese strivers consider their car like an extra
room and will spend to add lace curtains or expensive stereos to them. A
value appeal that might work well with a U.S. striver would be lost on a
Japanese striver.
List of Values (LOVs) Approach - An alternative to the VALS scheme is the List of Values (LOVs) approach
developed at the University of Michigan. LOV aims to assess adaptation to
various roles through value fulfillment. People's dominant values are identified
from a list of nine, including self-respect, sense of belonging, being well
respected, fun and enjoyment in life, and excitement.
- Research on LOVs has found a significant number of predicted relationships
between LOV and various criterion variables such as participation in certain
(commercially available) activities, such as skiing, backpacking, camping,
etc., and consumption of certain products.
- Certain LOVs values are associated with the values identified in VALS
such as an inner- or outward orientation, self-fulfillment, and accomplishment.
Unlike VALS, there is no implicit evaluative dimension in LOVs such as the
developmental contrast between marginal survivors and wealthy, healthy integrateds.
Cohort Analysis - Another useful way of anticipating lifestyle trends is to understand the
power of cohorts. In lifestyle terms, an age cohort is the group of people
born over a relatively short and contiguous time period that are deeply
influenced and bound together by the events of their formative years.
- Events that happen when people first come of age create habits and attitudes
that often last a lifetime and influence future attitudes and behaviors
toward savings, sex, a good meal, musical preferences, and products and
service preferences.
- Understanding cohort effects can improve predictions about changing lifestyles
are sensitizing marketers to how generations will age differently than they
have in the past. Over the past 40 years, coffee consumption has raisen
with age, while cola consumption has declined with age. Also, obs the number
of 18 to 34 year olds declined by 4 million in the 1990's while the number
of older adults grew by 24 million. This might on the surface suggest that
demand for coffee will increase while demand for cola declines. However,
this is based on a crucial premise that historic consumption rates by a
particular group will prevail in the future. A cohort analysis might
instead suggest that younger, cola-intensive cohorts will continue to consume
soft drinks even as they age. Meanwhile, older, coffee-intensive groups
will age and move out of the marketplace. Baby boomers and other lower-consuming
cohorts will replace them. This trend indicates that despite an aging population,
demand for cola will not decline, (e.g., the reverse effect).
- Regional Lifestyles
PRIZM - PRIZM is alifestyle segmentation system that deals with regionallifestyles
at a micro level. It is based on the principle that people with similar
lifestyles tend to live near one another. As the familiar saying predicts,
"birds of a feather flock together." Claritas, Inc., -- a market research
firm in Arlington, Virginia, originally created PRIZM over 20 years ago.
It describes every U.S. neighborhood in terms of 62 distinct clusters, based
on census data, consumer surveys, and other methods.
- PRIZMis useful for marketers because it can identify groups of
consumers who perform at or above average levels for product purchases.
PRIZM identifies neighborhoods where existing customers live, and it can
be used to predict where prospective customers are likely to be found. The
reports generated by PRIZM can be used to answer such questions as: Who
are my targets? What are they like (e.g., in terms of demographics)? Where
can I find them? For instance, PRIZM software can be used to create prospect
lists for direct-mail campaigns, or it could be used to suggest media vehicles
(e.g., magazines) for an ad campaign.
- PRIZM data can be accessed via zip codes. Each zip code may contain many
clusters. Go to the Claritas website and look up your own zip code to learn
more about the PRIZM system of lifestyle segmentation.
yawyl.claritas.com
- Shifting Lifestyles
- Another very important focus for lifestyle and psychographic research
is to provide general insights into emerging social trends and evolving
lifestyles. Identifying lifestyle trends is one of the most difficult applications
of psychographic research, and yet, it is perhaps one of the most vital.
Lifestyle trends are triggered by major demographic shifts such as: Japanese
women entering the workforce, U.S. women having babies later in life and
returning to work sooner, or U.S. baby-boomers aging. But lifestyle trends
are also triggered by important attitudinal shifts such as European consumers'
growing commitment to organic food or the casual dress trend in Corporate
America. Lifestyle trends such as these affect the lives and welfare of
numerous industries and can be decisive for many products and services.
Successful strategic planning relies on identifying these trends early and
separating out trends from fads.
- A subtle lifestyle shift that has important implications for clothes makers
is the trend toward dressing down in Corporate America. A recent study revealed
that almost 90% of U.S. workers are dressing down at least some of the time.
The "casual Friday" trend has created an important growth in "corporate
casual" clothing.
- Sometimes a single person can personify a lifestyle. One example in the
U.S. of such a person is Martha Stewart, a woman who has created an empire
to promote her ideas about a style of elegant living. She is viewed as the
"ultimate homemaker," and she strives to teach the masses how to create
"the good life." Martha Stewart sees herself as a purveyor of information.
In brief, Martha Stewart lifestyle represents investing a large amount of
time adding ornamentation to life, especially in the areas of cooking, home
décor, design, gift-giving, celebrations (e.g., weddings), and parties.
As with any trend, there is a counter trend. For instance, detractors say
her name has become synonymous with an unobtainable and slightly ridiculous
standard in the domestic arts. Some U.S. consumers put out a welcome mat
that says, "Martha Stewart doesn't live here."
- International Lifestyle Segments
- Lifestyle segmentation schemes are popular worldwide. National and international
schemes have been developed in all major European countries and for European
consumers as a whole.
Global Scan - Backer Spielvogel & Bates Worldwide (BSB) has created Global Scan,an
evolving psychographic segmentation scheme including at least eighteen countries,
(mostly Triad and Pacific Rim countries). Global Scan measures a wide variety
of attitudes and consumer values, as well as media use, and buying patterns.
Repeat surveys are conducted annually in each country to ensure the model
remains reflective of the population. Both higher values like self-sufficiency
and self-esteem and personality characteristics are included in the survey,
as are political opinions and attitudes about social issues. To improve
applicability, consumers are questioned directly on their use of more than
1000 brands and products.
- BSB claims 95 percent of the combined population of all countries surveyed
can be assigned to five segments. These segments are adapters (18%),
traditionals (16%), pressureds (13%), achievers (22%),
and strivers (26%). A three-country comparison is shown I Industry
Insights 8.6. As can be seen from the diagram, the five general groups are
found in varying proportions in the countries studied.
Industry Insights 8, (50.0K) - Global Scan allows .6: Global Scan Segments in Three Countriesmarketers to identify cross-culture and local differences.
Canadian Strivers are more open-minded and liberal than their U.S. counterparts,
but they are also more materialistic, ambitious, optimistic and risk-taking.
Canadian Achievers, the affluent opinion leader segment, enjoy one of the
highest-quality lifestyles of any country surveyed. The Pressured segment,
those with familial and financial worries, are found in greater proportion
in Quebec than in any other Canadian province.
- In the next section, we briefly present examples of lifestyle segments
that exist in three countries: Turkey, New Zealand, and China. It is interesting
to note how these lifestyle segments differ across the three nations and
how they differ from lifestyle segments, which have been identified in the
U.S. (e.g., VALS 2). These three countries are discussed because recent
lifestyle research has been completed there and because they represent regions
where lifestyles are likely to be quite different from those discussed in
traditional schemes (e.g., VALS).
Turkish Lifestyles - In a recent study, three lifestyle segments were identified for Turkish
consumers. The first segment is labeled as "Liberals/Trend Setters." These
consumers are somewhat similar to those in western nations. They are mostly
college educated and high-income earners. Important characteristics for
these consumers include quality, workmanship, prestigious brand name and
style. Price is not especially important to this group.
- The second and third clusters are labeled: "Moderates/Survivors" and "Traditionalist/Conservative."
A major difference between clusters two and three is that the former contains
mostly males. Group three contains many females, but male family members
make key purchase decisions (e.g., automobiles). Prestige and style are
not so important. Price is very important. As a whole, the traditionalist
segment does not have a favorable attitude toward imported western products,
in contrast to the relatively positive attitudes of the Liberal/Trend Setters.
New Zealand Lifestyles - In a 1998 study of 3,773 New Zealanders, six major segments were identified.
These include: Active Family Values People, Conservative Quiet Lifers, Educated
Liberals, Accepting Mid-Lifers, Success-driven Extroverts, Pragmatic Strugglers,
and Social Strivers. Some of the segments have parallels in VALS 2. For
instance, the Pragmatic Strugglers are somewhat like the Strugglers in VALS
2, but this group also shares something in common with the VALS' Makers.
As the name implies, the Strivers and the Social Strivers are similar. The
VALS' Achievers and the New Zealand Extroverts share common characteristics.
- The accepting mid-lifers is one group that doesn't have a clear counterpart
in the VALS 2 classification system. The mid-lifers are generally accepting
of their lives and of society. They lack a strong feeling regarding political
and social issues. They like things as they are and are not so willing to
try new things (e.g., new brands or products). Mid-lifers don't receive
much enjoyment from shopping. At the same time, they are not very brand
loyal. They are likely to use credit cards and purchase items such as videocassette
recorders, compact disc players, and more than one television. The New Zealand
study illustrates the value of combining psychological variables (e.g.,
novelty seeking) with marketing information (e.g., data about purchase of
specific brands or products).
Segments for Chinese Females - A segmentation study for females living in greater China was completed
in 1998. Greater China is defined as residents of three different countries:
People's Republic of China, Taiwan, and Hong Kong. A total of four segments
was identified for females between the ages of 18 and 35: Conventional Women
(40.7% of the population), Contemporary Females (21.9%), Searching Singles
(19.4%), and Followers (18.1%). Each of these segments is discussed here,
with the purpose of contrasting these segments to those identified in other
countries. In addition, selected marketing management implications are highlighted.
- It is interesting to note that the Conventional segment corresponds somewhat
to the Traditionalist/Conservative segment identified in Turkey. Conventional
women are proud of having a close-knit family and they consider family to
be the most important aspect of their life. In terms of recreation, they
are "indoor types" and prefer reading newspapers and books or watching television.
- Contemporary women share some characteristics in common with conventional
women, especially with regard to the importance of family. However, this
group believes that work is also important, and they try to combine family
and work into their lifestyle. Unlike the Conventional, this group is likely
to voice a complaint when they are dissatisfied with a product or service.
They are very concerned about their appearance and prefer imported and branded
products.
- Searching singles have more progressive ideas about the role of women
in society. For instance, they are more career oriented and they postpone
marriage longer. Females in this group like to go shopping and are concerned
with the image of the store where they shop. They are especially influenced
by sales announcements and the image of the brand. Also, they are heavy
users of fast food and entertainment services.
- Women in the fourth and final segment, followers, are not very active
in social, cultural, or other physical activities. They don't make as make
shopping trips as those in some of the other groups. More than half of them
are single and they have achieved relatively low levels in both education
and income. Followers lack confidence and are somewhat uncertain about the
future. Consequently, they like to seek advice from salespeople about the
products they buy.
- In general, the Chinese segments do not share much in common with the
segments identified in New Zealand. The New Zealand segments are more like
those that might be found in a European or North American country. The Chinese
segments are more similar to those found in Turkey. This makes sense in
that China and Turkey are both developing nations, and both have a culture
that sometimes clashes with consumption values as they are represented in
the Triad Nations.
- Criticisms of Lifestyle Research
- It is important to note the criticisms of lifestyle research. These criticisms
warn of over-enthusiastic use of psychographic data and point out challenges
for future marketing research.
- First, there is a general conceptual problem. The central concepts (i.e.,
lifestyles, psychographics, and AIO research) tend to be ill defined. Also,
it is not always clear why particular segments express particular
consumer preferences. Predictions of emerging patterns are especially difficult.
- Second, there is a problem associated with the secret, often ad hoc, nature
of the methods used to develop lifestyle schemes. To what extent are lifestyle
segments stable over time? Current lifestyle measures are not very good
at capturing the fluidity of lifestyle segment membership. That is, people
are likely to change lifestyle segments over time.
- Finally, there tends to be a fairly low level of correlation between lifestyle
segments and particular behaviors such as brand choice that are of great
interest to many companies. The consumption of many low-involvement products
may not be closely related to lifestyle variables.
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