Personality and Lifestyles in Consumer Behavior

Personality and Lifestyles in Consumer Behavior

Submitted to: Professor Zakir Hossain Bhuiyan Department of Marketing Faculty of Business Studies University of Dhaka

Submitted by: Alamgir Nasir ID: 40713032 Emba Program Department of Marketing

July 18, 2009

July 18, 2009 Professor Zakir Hossain Bhuiyan Department of Marketing Faculty of Business Studies University of Dhaka

Dear Sir:

Here is the term paper on Personality and Lifestyles in Consumer Behavior that you authorized me to prepare on July 04, 2009.

In the process of carrying out this report, I have developed a good idea about the Consumers personality and lifestyle that affects the buying behavior. It has bestowed us with opportunity to have the experience of carrying out an effective report. Thank you for giving me this opportunity. I sincerely appreciate this and look forward for further chances.

Sincerely yours,

Alamgir Nasir ID: 40713032 Department of Marketing

Acknowledgment I am extremely grateful to my course teacher Professor Zakir Hossain Bhuiyan to guide me all the way in preparation of this report. I am also very grateful to my course mates who have support me whenever required.

Contents
Letter of Transmitter. Acknowledgment List of Figures List of Tables. Objecvtives What is personality? Freudian Systems . Neo-Freudian Theories Brand Asset Valuator Trait Theory . Brand Personality... Lifestyles Lifestyles dimensions .. Psychographic Segmentation Uses.. Global Psychographic Typologies.. Ten risk segments. Appendix Bibliography I II IV V 8 9 9 10 11 12 13 14 15 16 16 17

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List of Figures
1. 2. 3. 4. BrandAsset Valuator Archetypes .. Linking Products to Lifestyles.. VALS2TM Framework.. Ten Risk Segments 11 14 16 17

List of Tables
1. 2. 3. 4. 5. Dichters Consumption Motives.. Innie or Outie . Brand Behaviors and Personality Trait Inferences Lifestyle/Personality Variables for Soup. Lifestyles Dimensions.. 9 12 13 15 15

Objectives A consumers personality influences the way he responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results. Consumers lifestyles are key to many marketing strategies. Psychographics go beyond simple demographics in helping marketers understand and reach different consumer segments. Identifying patterns of consumption can be superior to knowledge of individual purchases when crafting a lifestyle marketing strategy.

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What is Personality? The study of personality has been approached by theorists in a variety of ways. Some have emphasized the dual influence of heredity and early childhood experience on personality development; others have stressed broader social and environmental influences and the fact that personalities develop continuously over time. Some theorists variation in viewpoints makes it difficult to arrive at a single definition. However, we propose that personality be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. Freudian Systems Personality = conflict between gratification and responsibility Id: pleasure principle Superego: our conscience Ego: mediates between id and superego Reality principle: ego gratifies the id in such a way that the outside world will find acceptable Marketing Implications Unconscious motives underlying purchases Symbolism in products to compromise id and superego Sports car as sexual gratification for men Phallic symbols, such as cigars Motivational Research Freudian ideas unlock deeper product and advertisement meanings Consumer depth interviews Latent motives for purchases Examples of Dichters motives (Table 6.1) Bowling, electric trains, power tools = power Ice cream, beauty products = social acceptance Dichters Consumption Motives Motive Power-masculinityvirility Security Eroticism Moral puritycleanliness Social acceptance Individuality Status Associated Products Power tools, hot rods, coffee, red meat, razors Ice cream, home baking, hospital care Sweets, gloves White bread, cotton fabrics, bathing, oatmeal Toys, sugar, honey, soap, beauty products Gourmet foods, foreign cars, vodka, perfume Scotch, carpets

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Femininity Reward Mastery over environment Disalienation Magic-mystery

Cakes, dolls, silk, tea, household curios Cigarettes, candy, alcohol, ice cream, cookies Kitchen appliances, boats, sporting goods Home decorating, skiing, morning radio broadcasts Soups, paints, carbonated drinks, vodka

Criticisms Invalid or works too well Too sexually-based Appeal Less expensive than large-scale surveys Powerful hook for promotional strategy Intuitively plausible findings (after the fact) Enhanced validity with other techniques

Neo-Freudian Theories Karen Horney Compliant versus detached versus aggressive Alfred Adler Motivation to overcome inferiority Harry Stack Sullivan Personality evolves to reduce anxiety Neo-Freudian Theories: Jung Carl Jung: analytical psychology Collective unconscious Archetypes in advertising (see Figure 6.1: old wise man, earth mother, etc.) BrandAsset Archetypes model BAV Brand Health measures

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BrandAsset Valuator Archetypes

BrandAsset Valuator Archetypes

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BrandAsset Archetypes + BAV Brand Health Archetypes across cultures and time Archetypes telegraph instantly Strong evidence of achieving business objectives with this model Early warning signal of brand trouble Trait Theory Personality traits: identifiable characteristics that define a person Traits relevant to consumer behavior: Innovativeness Materialism Self-consciousness Need for cognition Frugality

Are You an Innie or an Outie? Idiocentrics Allocentrics (individualist orientation) (group orientation) Contentment Health Consciousness Food Preparation More satisfied with current life Less likely to avoid unhealthy foods Spend less time preparing food Less satisfied with current life More likely to avoid unhealthy foods

Workaholics Travel and Entertainment

Love kitchen; spend more time preparing food More likely to work hard and Less likely to work hard stay late at work More interested in traveling Visit library and read to other cultures more

Problems with Trait Theory Prediction of product choices using traits of consumers is mixed at best Scales not valid/reliable Tests borrow scales used for the mentally ill Inappropriate testing conditions Ad hoc instrument changes Use of global measures to predict specific brand purchases Shotgun approach (no thought of scale application)

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Brand Personality Brand personality: set of traits people attribute to a product as if it were a person Brand equity: extent to which a consumer holds strong, favorable, and unique associations with a brand in memoryand the extent to which s/he is willing to pay more for the branded version of a product than for a nonbranded (generic) version Extensive consumer research goes into brand campaigns

Brand Behaviors and Personality Trait Inferences Brand Action Brand is repositioned several times or changes slogan repeatedly Brand uses continuing character in advertising Brand charges high prices and uses exclusive distribution Brand frequently available on deal Brand offers many line extensions Trait Inference Flighty, schizophrenic Familiar, comfortable Snobbish, sophisticated Cheap, uncultured Versatile, adaptable

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Lifestyles Lifestyle: patterns of consumption reflecting a persons choices of how one spends time and money Lifestyle marketing perspective: people sort themselves into groups on the basis of: What they like to do How they spend leisure time How they spend disposable income Example: Magazines targeting specific lifestyles: WWF Magazine, 4 Wheel & Off Road, Readers Digest

Lifestyles as Group Identities Forms of expressive symbolism Self-definition of group members = common symbol system Terms include lifestyle, taste public, consumer group, symbolic community, status culture Each person provides a unique twist to be an individual Tastes/preferences evolve over time

Building Blocks of Lifestyles Product usage in desirable social settings Consumption style Patterns of behavior Co-branding strategies: brands team up with other companies to promote their products understand this Product complementarity: symbolic meanings of different products relate to one another Consumption constellations: define, communicate, and perform social roles

Linking Products to Lifestyles

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Lifestyle/Personality Variables for Soup Lifestyle Active Lifestyle (Vegetable): I am: outdoorsy, physically fit, workaholic, socially active Family Spirited (Chicken Noodle): I am: family-oriented, churchgoer, traditional Personality Mentally Alert (Clam Chowder): I am: intellectual, sophisticated, creative, detail-oriented, witty, nutrition conscious Social (Chili): I am: fun at parties, outgoing, spontaneous, trendsetter

Homebody (Tomato): Athletic (Cream Soups): I am: a homebody, good cook, pet lover; I am: athletic, competitive, adventurous I enjoy spending time alone Intellectually Stimulated Pastimes Carefree (Minestrone): (French Onion): I am: down-to-earth, affectionate, fun I am: a technology whiz, world traveler, loving, optimistic book lover Doing a Psychographic Analysis Lifestyle profile: differentiates between users and nonusers of a product Product-specific profile: identifies a target group and profiles consumers based on product-related dimensions General lifestyle segmentation: places a large sample of respondents into homogeneous groups based on similarities of preferences Product-specific segmentation: tailors questions to a product category

Lifestyle Dimensions Activities Work Hobbies Social events Vacation Entertainment Club membership Community Shopping Sports Interests Family Home Job Community Recreation Fashion Food Media Opinions Themselves Social issues Politics Business Economics Education Products Future Demographics Age Education Income Occupation Family size Dwelling Geography City size Stage in life cycle

Achievements Culture

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Psychographic Segmentation Uses To define target market To create new view of market To position product To better communicate product attributes To develop overall strategy To market social/political issues

VALS2TM

Global Psychographic Typologies Global MOSAIC Identifies segments across 19 countries RISC Lifestyles/sociocultural change in 40+ countries Divides population into 10 segments using 3 axis: Exploration/Stability Social/Individual Global/Local 40 measured trends (e.g., spirituality)

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Ten Risk Segments

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Appendix Bibliography Michael R. Solomon, Consumer Behavior Buying, Having, and Being, (8th Edition, 2009 by Prentice Hall Company), pp.120-125 www.prenhall.com/solomon

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