Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Business Lifestyles Lifestyles If you look up the word Lifestyle in the dictionary you will find the definition “a way of life or style of living that reflects the attitudes and values of a person or group”. However this definition does not pertain much to marketing, or consumer purchasing habits. Another definition that would be of more relevance and importance to marketers is “Lifestyle refers to a pattern of consumption, of how he or she spends their time and money”. A lifestyle marketing perspective shows how people sort themselves into groups on the basis of activities they enjoy, how they spend their free time, and how they spend their disposable income. This gives marketers a chance for market segmentation strategies. Market segmentation is the selection of groups of people who will be most receptive to a product. This is done using both Demographics (variables such as age, sex, race, income, occupation, education, household status, and geographical location); and Psychographics (variables such as activities, interests, opinions, product-use patterns, product benefits, and the topic of this research paper lifestyles). Life Styles are much more than just how a person chooses to spend their extra income. It is a statement of who one is in society, and who one is not. The self definition of groups by it’s members is based on the common symbol system to which said group is dedicated. If the lifestyle marketing perspective is used then we must look at patterns of behavior to understand the consumers. We can better understand how lifestyles and products are related by looking at consumer choices in a variety of product categories, and also by identifying the set of products and services that are associated with a type of lifestyle in a consumers’ mind. In other words we must define the consumption constellations (sets of products used by consumers to define, communicate, and perform their social roles) and find out which products are complimentary to each other (product complementarity is when the symbolic meanings of products are related to each other). Two households can share highly similar demographic characteristics and yet be wholly different due to the different personality traits and different lifestyles of the occupants. By combining personality variables and lifestyle preferences marketers got psychographics (the use of psychological, sociological and anthropological factors to determine how the market is segmented by the propensity of groups within the market, and their reasons to make a decision about a product, person, ideology, or otherwise hold an attitude or use a medium) Demographics allow us to describe who buys, whereas Psychographics help us understand why they do. Psychographics is basically the separation of customers into categories depending on different choices in consumption activities, and product usage. Marketers were always fascinated by the intangibles of consumer demand but it wasn’t until the 1960s when social upheaval splintered the mass market beyond anything recognizable that marketers invented a way to measure those intangibles. However despite being around for over 30 years or so Psychographics is still one of the least understood concepts in marketing research. Many marketers consider demographics and psychographics as two separate things when in actuality psychographics was developed to compliment demographics. The term first appeared in Grey Advertising’s publication “Grey Matter” in 1965. It was hailed as a way for researchers to quantify the slippery field of consumer psychology. A psycho graphic study combines consumers’ measurable demographic characteristics with the more abstract aspects of attitudes, opinions, and interests. Demographic, purchasing media, and psycho graphic information is coded from surveys, thrown together and analyzed until some groups with shared characteristics are can be distinguished from all other groups. By including product specific questions about past purchasing habits or future intention to purchase, marketers can identify those groups most likely to buy specific products and services. There are five general types of psychographics studies: 1. Lifestyle Profile: Uses a large questionnaire, including questions on demographics, product and media use, and psychographics/lifestyle items. The researcher looks for those demographic, product, media, lifestyle, attitude, or interest/opinion statements that discriminate between users and non-users of certain products 2. Product-Specific Psycho graphic profile: First identifies the target group of consumers, and then profiles them according o a limited set of product relevant dimensions. (For example Honda owners might be segmented by product benefits such as preference for practicality, dependability, or styling) 3. Personality traits as descriptors: Takes a dependent variable, such as concern for the environment, and analyzes it against different independent variables, including personality traits such as tolerance, risk-taking, introversion, extroversion, etc. The independent variables are evaluated to find out which have the most impact on the degree of environmental concern. The discriminating factors (those that show the highest correlation to the independent variable) can then be considered individually and cross-tabulated to find correlations (for example how likely it is that people who are concerned about the environment are also risk-takers). The factors can also be synthesized into fewer higher personality factors that are better discriminators. 4. General Lifestyle Segmentation: Uses a very large, nationally representative sample and a questionnaire including questions on demographics, media, and product use, and psychographics /lifestyle. The data is analyzed to classify respondents into relatively homogenous groups to form a typology. This study is different from the first three in that it doesn’t assume there are common traits among all respondents. But attempts to fill them into distinct groups. This can cause a problem in trying to identify attributes that differentiate product users from non-users. 5. Product Specific Segmentation: Focuses on product specific questions instead of general psycho graphic items. (For example a stomach ailment researcher created a list of 80 product related items such as attitudes about treatments, beliefs about ailments, symptom frequency, and end benefits of different brands. Typical psycho graphic items were re-written to relate to the product “I worry to much became “I get stomach problems if I worry too much” The 80 items were reduced to the 13 highest discriminating factors by factor analysis. Four groups were identified: Sever sufferers, Active medicators, Hypochondriacs, and Practiacalists. This segmentation had the advantage of being able to discriminate between brands. The researcher can then create different products or advertising appeals to better fit each group. All of these studies have two common qualities, they add extra dimension of psychology and or lifestyles to a demographic study, and they use quantative survey techniques. That is basically the definition of Psychographics, quantative research that attempts to place consumers on psychological as opposed to strictly demographic dimensions. The first step in a psycho graphic analysis is to determine which lifestyle segments are the majority of customers for a particular good or service, after the heavy users are identified and understood, the brand’s relationship to them is scrutinized. Heavy users have different reasons for using a product or service. Psycho graphic Segmentation can be used in several different ways: a) To define the Target Market: this information allows the marketer to go into greater detail beyond mere demographic or product usage descriptions (e.g. middle aged men) b) To create a new view of the market: Sometimes marketers create strategies with a certain type of consumer in mind, even though that consumer may not be the one who actually purchases the product. Psycho graphic research shows marketers who are actually buying their products, what type of person they are, and why they buy the product. Such information could give marketers the edge that they need. c) To Position the Product: Psychographics information could be used to emphasize features of a product that fit in with a person’s lifestyle. d) To better communicate product attributes: Psycho graphic data can give advertisers a much better image of who the targeted consumer is. Making it more likely and easier for them to design advertisements that communicate the products’ attributes that are desirable to the target market. e) To develop overall strategy: Psycho graphic data helps marketers understand how a product fits or does not fit into consumers’ lifestyles allows marketers to identify new product opportunities, chart media strategies, and create environments harmonious with these lifestyles. f) To market social and political issues: Psychographics segmentation can be an important tool to political campaign planners and people organizing campaigns on social issues. Psycho graphic Segmentation Typologies Too meet the need for new ways to identify and reach customers many research firms have developed their own segmentation typologies. Respondents are usually asked to answer a questionnaire that will allow marketers to separate them into lifestyle groups. These questionnaires are usually comprised of questions that reflect AIO’s (Activities, Interests, Opinions) and other questions that reflect perceptions of specific brands, favorite celebrities, media preferences and so on. These segmentation Typologies are sold to companies that want to learn more about their existing and potential customers. The typical typology would break up the sample data into five to eight groups. Each group is given a descriptive name and a profile of the ideal member (the one with all the qualities of said lifestyle group) is provided to the customer to make evaluation easier. However it is still very difficult to compare, evaluate and analyze the different typologies, Due to the subjective basis of the topic being studied, researcher bias, and the lack of knowledge about the working of the system which is due to the systems usually being owned and patented by a research firm or advertising agency. The most widely used and best-known segmentation system is the Values and Lifestyles System (VALS) developed by SRI international in California. VALS 1 was introduced in 1978, sorted consumers into nine groups according to their inner and outer orientation. Although VALS 1 was initially praised in the press as “revolutionary” by the mid 1980’s marketers were disillusioned, it wasn’t actionable they complained. VALS 1 ran into problems because it’s originator, Arnold Mitchell, made a crucial research mistake; he embraced Maslow’s needs hierarchy and designed a study to prove the theory. Research should seek to discover whatever truth exists in the population or data, not to impose a preconceived truth upon the data. Maslow theorized that people move up the needs hierarchy (survival, security, belonging, esteem, self-actualization). Critics of VALS1 charged that the needs and the values Mitchell derived from this had little to do with why people buy products and services. SRI international, California, went on to fix this problem by totally redesigning the study and creating the VALS 2, which was released in 1989. VALS2 segments consumers by real world resources like money and education as well as attitudes, to make it more relative to buying ability. VALS2 is designed to predict the behavior of consumers by profiling mainly attitudes. It sorts respondents into an eight part typology, taking into account “personal orientations” such as income, education, product awareness and self-confidence. In the VALS typology Actualizers have the most resources and Strugglers have the least, the behavior of Fulfillers and Believers is primarily controlled by beliefs and principles, while Achievers and Strivers are driven by status, the last two segments Experiencers and Makers are action oriented. Here is a VALS2 survey that was posted on a website on the Internet, so that respondents can answer and submit the survey instantaneously: Have you taken this survey before? Yes No 1. I am often interested in theories. Mostly disagree somewhat disagree somewhat agree Mostly agree 2. I like outrageous people and things. Mostly disagree somewhat disagree somewhat agree Mostly agree 3. I like a lot of variety in my life. Mostly disagree somewhat disagree somewhat agree Mostly agree 4. I love to make things I can use everyday. Mostly disagree somewhat disagree somewhat agree Mostly agree 5. I follow the latest trends and fashions. Mostly disagree somewhat disagree somewhat agree Mostly agree 6. Just as the Bible says, the world literally was created in six days. Mostly disagree somewhat disagree Somewhat agree Mostly agree 7. I like being in charge of a group. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 8. I like to learn about art, culture, and history. Mostly disagree Somewhat disagree Somewhat agree Mostly agree Mostly disagree Somewhat disagree Somewhat agree Mostly agree 10. I am really interested only in a few things. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 11. I would rather make something than buy it. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 12. I dress more fashionably than most people. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 13. The Federal government should encourage prayers in public schools. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 14. I have more ability than most people. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 15. I consider myself an intellectual. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 16. I must admit that I like to show off. Mostly disagree Somewhat disagree Somewhat agree Mostly agree Mostly disagree Somewhat disagree Somewhat agree Mostly agree 18. I am very interested in how mechanical things, such as engines, work. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 19. I like to dress in the latest fashions. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 20. There is too much sex on television today. Mostly disagree Somewhat disagree Somewhat agree Mostly agree Mostly disagree Somewhat disagree Somewhat agree Mostly agree 22. I would like to spend a year or more in a foreign country. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 23. I like a lot of excitement in my life. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 24. I must admit that my interests are somewhat narrow and limited. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 25. I like making things of wood, metal, or other such material. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 26. I want to be considered fashionable. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 27. A woman's life is fulfilled only if she can provide a happy home for her family. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 28. I like the challenge of doing something I have never done before. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 29. I like to learn about things even if they may never be of any use to me. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 30. I like to make things with my hands. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 31. I am always looking for a thrill. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 32. I like doing things that are new and different. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 33. I like to look through hardware or automotive stores. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 34. I would like to understand more about how the universe works. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 35. I like my life to be pretty much the same from week to week. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 37. Age: 18-24 25-29 30-34 35-44 45-54 55-64 65 or over 38. What is the highest level of formal education you have completed? Grade 8 or less Grades 9-11 High School 1-3 years of college College (4 years) Attended or completed graduate school 39. What was your total household income before taxes for the past calendar year (January through December)? (Please include income from all sources, including salaries, pensions, interest, dividends, bonuses, capital gains, profits, other.) less than $10,000 $10,000 - $14,999 $15,000 - $19,999 $20,000 - $24,999 $25,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $199,999 $200,000 or more Examples of the use of lifestyle segmentation Lifestyle segmentation can be used by marketers and advertisers in many different ways, the main methods of use of psycho graphic research I have already mentioned, and they are to define the target market, to create a new view of the market, to position the product, to better communicate product attributes, to develop overall strategy, and to better market social and political issues. In each of these uses psycho graphic research gives the marketer added information about the customer, and more insight on how to better appeal the product to the consumer. In some cases psycho graphic research can reveal information or facts to the marketer that were not known or obvious before. For example a facial cream manufacturer found out that the major consumers of its products were older women rather than the younger target market they had been focused on. In any case psycho graphic analysis is a useful tool when used in conjunction with demographics. The following are several examples of companies that used psycho graphic analysis. Motorola needed a 360-degree understanding of cellular phone users to guide the strategic design direction of their next generation of cell phone products. They designed an approach to make cell phone users come alive for the designers. To include a full range of perspectives they observed callers in their homes, videotaped them on the road, in fact anywhere they found the participants using their cell phones. They then asked them to photograph their busy lives to reveal nuances in addition to the consumer interviews conducted. They also spoke with management and industry experts before developing a well-rounded lifestyle segmentation of cell phone users visually enriched with photos taken from a database of over 4000 photos that consumers contributed to the process. They then conducted one-on-one interviews with consumers to further understand perceptions of cell phones and gather their reaction to new cell phone prototypes to aid in specific design decisions. Motorola’s marketing team and designers were able to immediately incorporate their findings by selecting the best performing design concepts. Lifestyle segmentation is now integrated throughout Motorola’s cell phone division to target future product development and hone effective marketing communications. Pepsi needed a realistic and strategic understanding of the teen population to help guide its product development and communications strategies. They designed an approach that looked at teens the way they look at themselves. They sent cameras out to hundreds of teens, asking them to photograph their lives as they really are. And interviewed friends together, asking them about their dreams, fears, cares and concerns. They also talked to experts who built careers understanding the teen psyche, and visited common teen hangouts, observing how teens acted when away from adults. As a result, Pepsi were able to create a model that accurately explains the five main types of teenagers, tracks their relative influence over time, and accurately predicts how trends move through the teen population. Pepsi used the model and teen learnings to ensure that their perspective on teens was always up to date. Their research continued beyond this initial project to become an annual study of teen culture and behavior. Schick/Wilkinson Sword had developed an innovative, three blade disposable razor and needed worldwide feedback from consumers to help refine packaging. In depth qualitative research was conducted in the US, France and Japan to explore packaging communications. Research participants were asked to sort existing razors, both disposables and systems products, to help illustrate how they perceived the product. The respondent sort results indicated a high performance product with the convenience of a disposable razor but the efficiency of a systems razor. Following the qualitative phase, quantitative face-to-face interviews were conducted in the US to provide Schick Management with consumer-based feedback on two new package design systems. The combined research methodologies helped Schick to understand consumer perceptions of the product. The research helped inform about colors, icon usage and the communication of "disposable." The results allowed Schick to roll out a package appropriate for each market while still maintaining a universal look and feel. Women.com is one of the leading networks for wired women, attracting over 4 million visitors each month. In order to better market themselves and provide value to their users, Women.com sought to have a deeper understanding of their community of visitors. This information would serve to guide content development, partnerships, positioning, branding and communications. Researchers designed an online study that looked into the lifestyles, behaviors and attitudes of over seven thousand visitors to Women.com and their network of web sites. Based on these characteristics, they were able to provide a segmentation of visitors, and then compare and contrast the segments along key measures and between the different sites. Multivariate cluster analysis was used to detect groupings, which were then examined against the remaining variables. Perceptual maps were created to finally arrive at the most meaningful differentiation between groupings of respondents. As a result of research Women.com were provided with a thorough lifestyle and psycho graphic segmentation of their community. They were able to act on these insights to enhance their visitors' experience and develop more focused, meaningful content. In addition, their advertisers benefited from having more precise descriptive information about their target audiences. Bibliography: research on Lifestyles.. and it's implications to marketing.. includes VALS2 sample.. Word Count: 3493
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