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Learning Objectives:

To explore the core concepts and theories of shopper behavior at individual, group and organizational

level so that learners ay use these as inputs in ar!eting decision a!ing"

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Course Contents

Module I $onsu er de ographics,

$onsu er life styles"

%etailing i plications of consu er de ographics and lifestyle"

$onsu er pro&les"

'ifestyle ar!eting"

(nviron ental factors and individual factors a)ecting consu ers"

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Market segmentation is the process that co panies use to divide large

heterogeneous ar!ets

into s all ar!ets that can be reached ore e.ciently and e)ectively -ith

products and

services that atch their uni ue needs

Market Segmentation

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Segmenting Consumer Markets

Geographic 0 divides the ar!et into di)erent geographical units such as nations,regions, states, counties, or cities

emographic 0 refers to the vital easureable stats of a population" t helps tolocate a target ar!et" t divides the ar!et into groups based on variables such as

age, gender, fa ily size, fa ily life cycle, inco e, occupation, education, religion,race, generation, and nationality"

s the ost popular seg entation ethod because consu er needs, -ants, andusage often vary closely -ith de ographic variables and are easier to easure thanother types of variables

!ge and li"e#cycle stage segmentation is the process of o)ering di)erent

products or using di)erent ar!eting approaches for di)erent age and life0

cycle groups

Gender segmentation divides the ar!et based on sex 3 ale or fe ale4

Income segmentation divides the ar!et into a uent or lo-0inco e

consu ers

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Market Segmentation

9ccupation

S$GM$%&!&IO%B!S$

S$L$C&$ S$GM$%&!&IO% '!(I!BL$SGeographic Segmentation

$li ate:ensity of area$ity Size%egion South-est, ;ountain States, las!a, 8a-aii

;a0#*, #50*?, 5 06*, 6507*,

750??, 1 @;ale, fe aleSingle, arried, divorced, living together,

-ido-ed=nder A25, , A25, 0A#*,???, A#5, 0A*?,???, A5 , 0A7*,???, A75, 0A??,???,A1 , and over(ducation So e high school, high school graduate, so ecollege, college graduate, postgraduate

Professional, blue0collar, -hite0collar,agricultural, ilitary

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Segmenting Consumer Markets)**contd*

+sychographic 0 divides buyers into di)erent groups based on social class, lifestyle,

or personality traits

Behavioral 0 divides buyers into groups based on their !no-ledge, attitudes, uses, or

responses to a product

9ccasion +ene&ts sought =ser status =sage rate 'oyalty status

Bene,t Segmentation # The seg entation of the consu ers based on -hat

particular bene,t o" the product appeals to the " :i)erent consu ers loo! for

di)erent bene&ts and the ar!eter needs to understand each seg ent and

accordingly develop his co unication for each group" +ene&t seg entation helps to

identify each group and accordingly pro ote the product -ithin that group"

Example B one particular soap o)ers a variety of bene&ts, say fragrance 3li!ed by older-o en4, fairness 3li!ed by

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Organisational buying is a multiperson buying activity B large nu ber of buying

situations in organisations 3 anufacturing, govern ent, hospitals, educational institutions4

-ould involve any persons" These persons ay be fro di)erent functions 3production,

purchase, design, aintenance4, ay have di)erent bac!grounds 3engineers, ;+ ,

graduates etc"4 ay have di)erent hierarchical levels -ithin the organisation 3;anaging

:irector, Ceneral ;anager, ;aterial ;anager4"

Persons in a buying situation, ay appear to play di)erent roles over the entire buyingdecision exercise" grand conceptualisation of various roles of the di)erent e bers is the

concept of the +uying $entre" The various e bers of the buying centre ay appear to play

any of the follo-ing rolesB

D =sers li!e production depart ent personD nEuencers li!e ;anaging :irector, :esign (ngineers or $onsultants

D :eciders li!e the co ittee appointed

D +uyers li!e the people fro the purchase or aterials depart ent

D Cate!eepers li!e those -ho can control the Eo- of infor ation -ithin an organisation

D Speci&ers li!e consultants or design or production people -ho ay develop the

speci&cations of the product or services needed

rganisational Buying Behaviour

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description of a custo er or set of custo ers that includes de ographic,

geographic, and psychographic characteristics, as -ell as buying

patterns, credit-orthiness, and purchase history"

Solving al ost any sales and ar!eting challenge starts -ith !no-ing -ho your

custo er is" ;apping nalytics can help you &nd out who your best custo ers

are and apply geographic analysis techni ues to discover where to &nd ore of

the "

Customer +ro,les

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Customer +ro,le

custo er pro&le uses ar!eting seg entation to identify !ey factors and using the to

brea! do-n the pool of custo ers to -ho -ould li!ely purchase the product or service"

This sho-s a co pany -here to spend their advertising resources to get the ost return

on invest ent" Target ;ar!et Seg entation

Ceographic seg entation

:e ographic seg entation

Psychographic seg entation

+ehavioralImportance o" target markets

9nce target ar!ets are identi&ed correctly, speci&c ar!eting progra s are

directed to identi&ed group, or target ar!et"

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$-ample o" Customer +ro,leHead Fones

Customer Profle:

Ceographic seg entationB any area, any cli ate

:e ographic seg entationB age G 12026 ;ales Professional usician

Psychographic seg entationB 'i!es to listen to usic

thletic/exercises Trendy (xtre e Sports

+ehavioral 'istens to personal edia device +uys obile usic edia +rand conscience

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Consumer Li"estyle and 'alues

t is an indicator as to ho- people live spend their ti e oney" Hhat people do

in their spare ti e is often s good indicator of their lifestyle

'ifestyles are shaped partly by -hether consu ers are oney0constrained or ti e0

constrained"

$onsu ers in di)erent countries cultures ay have characteristic lifestyles" (g

ndian -o en are ho e

focused" 'ess li!ely to visit restaurants " ;ore Price Sensitive

'ifestyle seg entation is particularly useful in case of product categories -here the

user Is self i a e is considered as an i ortant factor , such as erfu es , beer,

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Consumer Li"estyle and 'alues

li"estyle is a personJs pattern/style of living in the -orld as expressed in 9 0

ctivities, nterests and 9pinions"

'ifestyle nalysis provides broad vie- of consu ers as it seg ents ar!et s on the

basis of !IO !nalysis B

!ctivities 0 8o- they spend their ti e

Interests 0 portance of things in their surroundings

Opinions G Their +eliefs on broad issues the selves

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Sel" Orientation o" People #

$deals %principle&' ndividuals are guided in theirchoices by their beliefs principles not by feelings,desires events"

Achievement G ndividuals are heavily inEuenced byactions, pprovals opinion of others

Sel" expression %action& G ndividuals desire physical social ctivity, variety ris! ta!ing"

+ased on the concepts of basic otivations resources,

the

Typology brea!s consu ers into eight groups " The

eight sub0divisions that these a

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Believers %motivated by ideals # low resources& areconservative, conventional people -ith concrete beliefs

and strong attach ents to traditional institutionsB fa ily,church, co unity, and the nation"

;any +elievers possess oral codes that are deeplyrooted and literally interpreted"

Kollo- established routines, organized in large partaround their fa ilies and the social or religiousorganizations to -hich they belong" s consu ers, theyare conservative and predictable, favoring ericanproducts and established brands"

(ducation, inco e and energy are odest but su.cientto eet their needs"

Achievers % otivated by Achievement+ *igh !esources& are successful career and -or!0oriented people -ho li!e to0and generally !eep control of their lives" Malue structure"predictability, and stability of over ris!, inti acy, and self0discovery" They are deeply co ittedto their -or! and their fa ilies" Hor! provides the -ith a sense of duty, aterial re-ards, andprestige"

Social lives reEect this focus and are structured around fa ily, church, and business" chieverslive conventional lives, are politically conservative, and respect authority and the status uo"age is i portant to the " s consu ers, they favor established products and services that

de onstrate their success to their peers"

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Strivers %motivated by achievement + low resources&

see! otivation, self0de&nition, and approval fro the

-orld around the " Striving to &nd a secure place in life"

=nsure of the selves and lo- on econo ic, social, and

psychological resources"

Strivers are deeply concerned about the opinions and

approval of others" ;oney de&nes success for Strivers, -ho

donOt hate enough of it and often feel that life has given

the a ra- deal"

Strivers arc easily bored and i pulsive ;any of the see!

to be stylish" They e ulate those -ho have ore i presses

e possessions, but -hat they -ish to obtain is generally

beyond their reach

Experiencers % otivated by sel" expression# high resources& are young, vital,enthusiastic, i pulsive, and rebellious" See! variety and excite ent, savoring the ne-, theo)beat, and the ris!y" Still in the process of for ulating life values and patterns of behavior, theyuic!ly beco e enthusiastic about ne- possibilities but are e ually uic! to cool"

re politically unco itted, uninfor ed, and highly a bivalent about -hat they believe"(xperiencers co bine an abstract disdain for confor ity and authority -ith an outsiders a-e ofothersO -ealth, prestige, and po-er"

Their energy &nds an outlet in exercise, sports, outdoor recreation, and social activities"(x eriencers are avid consu ers and s end uch of their inco e on clothin fast food usic

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Survivors lives are constricted" $hronically poor, ill0educated" on0s!illed, -ithout strongsocial bonds, aging, and concerned about their health they arc often despairing and passive"+ecause they are so li ited, they sho- no evidence of a strong self orientation, but arefocused on eeting the urgent needs of the present o ent"

$hief concerns are for security and safety" Strugglers are cautious consu ers" They representa very odest ar!et for ost, products and services but are loyal to favorite brands

a)ers %motivated by sel" expression# lowresources& are practical people -ho have constructives!ills and value self0su.ciency"'ive in a traditional context of fa ily, practical -or!, andphysical recreation, and have little interest in -hat liesoutside that context"

(xperience the -or! by -or!ing on it0building a house,raising children, &xing a car, or canning vegetables0andhave su.cient s!ill, inco e, and energy to carry out

their pro

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(etail Implications o" Consumer emographics

+ecause of changing life0styles, ore husband and -ives shop together" ;ore

en are doing non traditional -or! around the house

$o ponent life0styles G consu ers are less predictable

Such as cleaning, shopping, babysitting

$onsu er sophistication and con&dence G ore !no-ledgeable shoppers -ho

are ore cos opolitan 3 ore a-are of trends4Poverty of ti e G people are ti e0pressed because of -or!, co uting, fa ily

responsibilities and etc

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Li"estyle Marketing

'ifestyle ar!eting is a process of establishing relationships bet-een products

o)ered in the ar!et and targeted lifestyle groups"

t involves seg enting the ar!et on the basis of lifestyle di ensions,

positioning the product in a -ay that appeals to the activities, interests and

opinions of the targeted ar!et and underta!ing speci&c pro otional

ca paigns -hich exploit lifestyle appeals to enhance the ar!et value of the

o)ered product"

consu erOs lifestyle is seen as the su of his interactions -ith his

environ ent" 'ifestyle studies are a co ponent of the broader behavioral

concept called psychographics"

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Li"estyle Marketing

emographics8 +sychographics and Li"estyle

:e ographic variables help ar!eters locate their target ar!et and psychographic

variables provide the ar!eter -ith ore insight about the seg ent"

Psychographics is, in co on parlance for lifestyle analysis"

n its ost -idely practiced for , a psychographic study consists of list of state ents

designed to capture relevant aspects of a consu er, li!e personality, hinting otives,

interests, attitudes, beliefs and values"

The de ographic and psychographic lifestyle approaches are highly co pli entary

and -or! best together" People hailing fro the sa e sub0culture, social class and

even occupation follo- uite di)erent lifestyles"

The lifestyle analysis adds a great a ount of understanding to a typical de ographic

description"

$*g*8 person buying a ne- designer shirt ay be #* years old, arried and living in a

# bedroo house and having 2 children" The lifestyle analysis -ould help ar!eters to

paint a ore hu an portrait to their target ar!et"

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Li"estyle Marketing # $-amples

Kor instance the 4young8 up2ardly mobile4 lifestyle group cutting across sub0cultures,

social class, occupation etc" is no- being increasingly used by ndian ar!eters as their

ar!et group"

This &nds its expression in advertising appeals .*e loves the "eel o" the city--- (he

s)yscrapers--- (he crowds--- (he pretty "aces--- And the heady "eeling o" being

success"ul--- Above all the "reedom o" being himsel"-. So says the advertise ent

for +antaloons cotton trousers fro Man5 6ear*

nother advertise ents for enOs inner-ear fro Bhil2ara loudly announces for the

an -ho plays any roles0here co es the very best in 2ear unders via the grand

fashion avenues of Paris"""$ha ps (lise " The behavioral di)erences bet-een prospects

that do not sho- up in de ographic &gures co e alive in lifestyle patterns"

'ifestyle, analysis leads to ore co prehensive and penetrating pro&les of ho-

consu ers thin! and act than ay be available fro other approaches"

C9!(!C&$(IS&ICS O1 LI1$S&

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C9!(!C&$(IS&ICS O1 LI1$S&

Keld an and Theilbar describe lifestyle by the follo-ing characteristicsB

1 Li"estyle is a group phenomenon personOs lifestyle bears the inEuence of his/her participation in social groups and of his/her

relationships -ith others" T-o cler!s in the sa e o.ce ay exhibit di)erent lifestyles"

2 Li"estyle pervades various aspects o" li"e

n individualOs lifestyle ay result in certain consistency of behaviour" Qno-ing a personOsconduct in one aspect of life ay enable us to predict ho- he/she ay behave in other areas"

# Li"estyle implies a central li"e interest

Kor every individual there are any central life interests li!e fa ily, -or!, leisure, sexual

exploits, religion, politics etc" that ay fashion his interaction -ith the environ ent"

* Li"estyles vary according to sociologically relevant variables

The rate of social change in a society has a great deal to do -ith variations in lifestyles" So do

age, sex, religion, ethnicity and social class" The increase in the nu ber of double inco e

fa ilies and that of -or!ing -o en have resulted in co pletely di)erent lifestyles in the

1?> Os in ndia

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Hierarchy of Influences on Lifestyle

$%'IO(%M$%&!L / I% I'I ;!L 1!C&O(S !11$C&I%G CO%S;M$( I%1L;$%C$S O% LI1$S&

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!++(O!C9$S &O S&; LI1$S& L

(he study o" li"estyle is interdisciplinary " t dra-s on a variety of disciplines

such as anthropology, psychology, sociology and econo ics" ar)eting uses

this "ree approach "or segmenting, targeting and positioning which

"orms the core o" mar)eting strategy-

+ecause lifestyle refers to the -ay in -hich people live and spend oney 8

consumers psychographic pro,les are derived by measuring di

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END OF MODULE - 1

H!N" O;

sp cb mod 1 (1)

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