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Consumer Behaviour, Second Edition Martin Evans, Ahmad Jamal Gordon Foxall Cardiff Business School ISBN:978-0-470-99465-8 Chapters 5 & 6 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 1 Chapter 5 Consumer Demographics © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 2 Segmentation Segmentation involves identifying homogenous buying behaviour within a segment (and heterogeneous buying between segments) such that each segment can be considered as a target for a distinct marketing mix © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 3 Segmentation 1. 2. Typifying the segments Identification: Differentiation from other segments. Measurability: Identification of differences in individual and household characteristics or other 'measurable' characteristics. Homogeneity Variation: Heterogeneity between segments in terms of behavioural response Stability: segments should be relatively stable over time But data mining tools allows the identification of individuals’ changed circumstances or behaviour such that they can now be switched from one target group to another – e.g. trigger points in FLC change (Chapter 7) Congruity: Homogeneity within segments in terms of behavioural responses © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 4 Segmentation 3. 4. Usefulness Accessibility: in terms of communications media and distribution outlets - must be possible to reach the segment (Media and distribution channel selection – Chapter 2)) Substantiality: profitable enough to have distinct marketing mixes aimed at them Strategic Criteria Potential: The segments should have enough potential for marketing objectives, such as brand share/profitability Attractiveness: Segments should be structurally attractive to the producer, e.g., create a competitive advantage for the company & ‘fit’ with strategy & resources © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 5 Demographics Age Gender Social Grade Family (Chapter 7) © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 6 Demographics Typical demographic profile of the drinks market Beer (%) Wine (%) Whisky (%) 18-24 58 23 7 25-34 50 29 8 35-49 45 28 14 50+ 30 15 17 A, B 39 40 17 C1 40 30 14 C2 48 20 13 D, E 38 9 10 Male 65 22 19 Female 21 22 8 Age Social Grade Gender © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 7 Demographics: Easy to Identify Should be ‘what’s the occupation of the chief income earner in the household Significance in Chapter 11 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 8 Age Categories (Based on Barak and Schiffman, 1891) Chronological age Biological age Social age Cognitive age Subjective age Personal age Other perceived age © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 9 Age Categories (Based on Barak and Schiffman, 1891) Chronological age Actual age Biological Age Relative to lifespan Social Age Cognitive ageroles – eg FLC Relative to changing social Subjective Age Personal Age Other Perceived Age © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans Cognitive Age: A Non-chronological Age Variable Advances in Consumer Research, Vol 8, (1981), pp 602-606. Reproduced by permission of Association for Consumer Research. 10 Age Categories (Based on Barak and Schiffman, 1891) Chronological age Biological Age Social Age Cognitive age Relative to your self Subjective concept – how Age old you see yourself Personal Age Other Perceived Age © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans Cognitive Age: A Non-chronological Age Variable Advances in Consumer Research, 11 Vol 8, (1981), pp 602-606. Reproduced by permission of Association for Consumer Research. Age Categories (Based on Barak and Schiffman, 1891) Chronological age Biological Age Social Age Cognitive age Subjective Age Also self concept – Personal & a component Age of cognitive age Age relative to other – eg Age middle aged, old etc Othergroups Perceived © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans Cognitive Age: A Non-chronological Age Variable Advances in Consumer Research, 12 Vol 8, (1981), pp 602-606. Reproduced by permission of Association for Consumer Research. Age Categories (Based on Barak and Schiffman, 1891) Chronological age Biological Age Social Age Cognitive age Subjective Age Personal Age Also self concept & a component of cognitive age. How old you Other Perceived Age feel & look - & interest in & doing things typical of a particular age group Cognitive Age: A Non-chronological Age Variable Advances in Consumer Research, Vol 8, (1981), pp 602-606. Reproduced by permission of Association for Consumer Research. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 13 Age Categories (Based on Barak and Schiffman, 1891) Chronological age Biological Age Social Age Cognitive age Subjective Age Personal Age Other Perceived Age How you think ‘others’ perceive your age © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans Cognitive Age: A Non-chronological Age Variable Advances in Consumer Research, 14 Vol 8, (1981), pp 602-606. Reproduced by permission of Association for Consumer Research. Baby Boomers 1945 and 1965. Very important target for marketers. Involved in a massive social revolution which changed music, fashions, political thought and social attitudes forever (Fifield 2002). Now turning 50 and there are over 20 million people, In USA a baby boomer turned 50 every 6.8 seconds in 2001. ‘Cognitive age’ less than their ‘chronological’ age’ . © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans © Marketing Week. Used with permission 15 Demographics: Age Baby Boomers are as young as they feel and as old as they are © Age Concern © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 16 Demographics: Age © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 17 Social Grade Ozzy Osborne © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans and Prince Charles 18 Income • There are about 500,00 people earning £100,00 pa or more in the UK • Top 1% of earners account for over 20% of spending on hotels • Top earners often likely to try new products (early adopters) and be influential over friends’ buying • Lawson J (2007), Super Rich Set Agenda, Marketing Week, 12.7.07 30-31 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 19 Income © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 20 Gender Mother image stereotype © Johnson & Johnson. Reproduced by permission. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans Changing males images © Sanyo Europe Ltd. Reproduced by permission 21 Gender Girl Power – the independent assertive woman Source: Wonderbra Image courtesy of the Advertising Archive Or too assertive? Source: Lee © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 22 Sexist vs. Sex Appeals Perhaps it’s OK to use sex appeals where relevant. Only becomes sexist when demeaning to men or women? Sexy or Sexist? © Sketchers Footwear USA/Phil Mucci Photography LLC. Reproduced by permission © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 23 Gender © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 24 Demographics: Not Exactly ‘Gender’: Gay Acceptance of self expression: gay/gender bending etc • Gay Market: • Out Now 2005 Diva and Gay Times Readers Surveys: 3 million gay/lesbians earn £70bn pa • Often attractive targets • Gay men spend 2x as much on clothing & 4x as much on grooming as straights • Affluent ‘innovators’ with few dependants • Easier to reach gay market now (more gay magazines/TV/Internet & Sponsorship by (e.g.) Smirnoff, Levi’s, Virgin etc of gay events (Gay Pride etc.) © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 25 Demographics: Gay Consumer Behaviour • • • • • • • • • • • • £1.4 billion spent on leisure each year £730m spent on the home each year 90% eat out regularly 79% take more than two holidays per year Lesbians earn £3000 more than the average UK woman 27% have higher education 42% spend more than £500 pa on clothes 50% gay men wear Levis More than 30% spend between £50 - £100 on CDs pa 35% visit a gay club or pub each week 65% claim they will boycott gay-unfriendly polices Bass’ portfolio of gay clubs/pubs turned over £8.7m up 18% year on year. Rainbow TV, 1997 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 26 Demographics: Not Exactly ‘Gender’: Gay © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans © Diesel. Reproduced by permission. Image Courtesy of the Advertising Archive 27 Demographics: Sexuality An extension of gender is sexual identity. Most of us are male or female (there are some who are transgender/transsexual) but the concepts of masculinity and femininity are aligned along a continuum based to a large extent on: • the socialisation of our culture (men kiss each other in some cultures but not others) • our own self image (see Consumer Psychographics later) • how we use our bodies to reflect this and indeed how we clothe, enhance and even physically modify our bodies to achieve the image we wish to project to others. Androgyny and bi-sexuality are mixes of the two poles of the continuum. Marketers can appeal to our opposite pole in appropriate circumstances – e.g.… © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 28 Demographics: Sexuality Line reads: ‘Get in touch with your masculine side’ © Jim Bean Brands Co. Reproduced with permission © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 29 References • General Household Survey • Social Trends • Schor J (2004) Born to Buy, Scribner • Holbrook M B and Schindler R M (2003) Nostalgic Binding: Exploring the Role of Nostalgia in the Consumption Experience, Journal of Consumer Behaviour, 3.2 107-128 • Schewe C D and Meredith G (2004) Segmenting Global Markets by Generational Cohorts: Determining Motivations by Age, Journal of Consumer Behaviour, 4.1 51-63 • Szmigin I and Carrigan M (2001) Learning to Love the Older Consumer, Journal of Consumer Behaviour, 1.1, 2234 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 30 Chapter 6 Consumer Psychographics © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 31 Chapter Objectives • Demonstrate an understanding of psychographic profiling of consumers • Analyse and evaluate the contribution of ‘traditional’ life style research to understand consumer behaviour • Analyse and evaluate the contribution of consumer personality to understanding consumer behaviour • Analyse and evaluate the contribution of self-concept theory to understanding consumer behaviour • Recognise the two approaches to self-concept measurement © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 32 What is Personality? • “The relatively stable organisation of a person’s motivational disposition arising from the interaction between biological drives and the social and physical environment” (Eysenck et al., 1975) • Function of innate drives, learned motives and experiences © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 34 Big Five Personality Factors 1. Emotional Stability • Calm ………………………… Anxious • Secure ………………………... Insecure • Self-satisfied ………………………. Self-pitying 2. Extraversion • Sociable ………………………... Retiring • Fun Loving ………………………… Sober • Affectionate …………………………Reserved © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 35 • 3. Openness to Experience • Imaginative ………………………... Practical • Independent ………………………… Conforming • Variety Seeker ………………………… OK with routine • 4. Agreeableness • Soft hearted ………………………... Ruthless • Trusting ………………………… Suspicious • Helpful ………………………… None cooperative • 5. Conscientiousness • Organized………………………... Disorganized • Careful ………………………… Careless • Disciplined ………………………… Impulsive © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 36 From Human to Brand Personality • The charismatic personality of its founder, Sir Richard Branson has played a key role in developing the overall attractiveness, distinctiveness, and self-expressive value of Virgin’s brand personality. Consequently, the brand is now one of the most admired brands in the UK with significant levels of brand engagement and brand attachment shown by consumers © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 37 Compare and contrast the typical brand users’ imagery for each of the following brands and then list the features down against each brand. In other words, what sort of person uses each of the following brands? • Volvo • Starbucks • Microsoft Apple • iPod • Calvin Klein • Nike • Rolex © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 38 Psychographics: Self Concept • Self concept refers to all the subjective personality thoughts and feelings that a person has about themselves • Also includes extended self • E.g. cosmetics, body piercing, tattoos, etc. to change body (and therefore self) image • E.g. clothes (you are what you wear) • E.g. cars (we ‘wear’ these), music and other possessions © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 39 Self Concept Theory Looking glass self Extended self © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 40 And Now Online/Virtual Self © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 41 Summary • Psychographic profiling of consumers • The contribution of (‘traditional’) life style research to understanding consumer behaviour • The contribution of consumer personality to understanding consumer behaviour • The importance of the notion of self-concept References http://www.tgisurveys.com/ http://www.sric-bi.com/VALS/presurvey.shtml Baudrillard J (1999) The Consumer Society: Myths and Structures, Sage Evans, M (1989), Consumer Behaviour Toward Fashion. European Journal of Marketing, 23(7), 7-16. Jamal, A. and Al-Mari, M. (2006),"Exploring the Effects of SelfImage Congruence and Brand Preference on Satisfaction: The Role of Expertise," Journal of Marketing Management, Vol. 23, No. 7,p. 613-630 Jamal A., and Gboyega, A. (2008/9), Customer Employee Relationships: The Role of Self Employee Congruence, European Journal of Marketing, Vol. 41 (forthcoming). © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 43 References Jamal, A., Davies, F., Chudry, F., and Al-Mari, M., (2006), "Profiling Consumers: A Study of Qatari Consumers' Shopping Motivations," Journal of Retailing and Consumer Services , Vol.13 (1), pp.67-80. Todd S (2001) Self Concept: A Tourism Application, Journal of Consumer Behaviour, 1.2, 184-196 Willmott M and Nelson W (2003) Complicated Lives: Sophisticated Consumers, Intricate Lifestyles, Simple Solutions, John Wiley & Sons, Chichester © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/evans 44