MARKETING TOOLS Buyer Behavior and Market Analysis. Consumer Psychographics

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Randell Harmon
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1 MARKETING TOOLS Buyer Behavior and Market Analysis Consumer Psychographics Psychographic Basics Psychographics: How consumer psychological make-up and personality affect lifestyle. Lifestyle: A I O

2 Determinants of Lifestyle Focus in class will be on major determinants of lifestyle: Reference Groups Social Class Lifestyle (AIO) Personality Reference Groups Reference Groups: Any group that affects buyer behavior. Membership Primary v. Secondary Aspirational v. Dissociative

3 Types of Reference Group Influences 1. Informational Influences Reference groups provide information about how well brand performs. 2. Utilitarian Influences People purchase certain brands to meet expectations of reference groups members to gain or maintain membership. 3. Value-Expressive Influences People purchase certain brands because they approve of the values of others who purchase the brands. Process of Reference Group Influence How reference groups produce behavior. Socialization Self-Concept Conformity Behavior

4 What is Social Class? Social stratification refers to the ranking of members of society in levels (strata or classes). Comments: People in each level (class) will tend to view each other as social equals. They will tend to feel comfortable around each other. They will tend to share similar interests and activities (and therefore, expenditures). Social Class and Inequality When one begins comparing social strata, s/he must confront the root characteristics of social class: inequality. Bases of Social Class: Property differences. Differences in material wealth differ greatly by social class. Prestige differences. Status levels generated by the respect groups of people receive by all members of society.

5 Characteristics of Social Class 1. Social class is multidimensional Many factors combine to determine social class: income occupation interactions possessions value orientations Characteristics of Social Class 1. Social class is multidimensional 2. Social class restricts behavior Except for special activities, social classes do not mix often or deeply. Shopping behavior and marketplace information is not shared between classes.

6 Characteristics of Social Class 1. Social class is multidimensional 2. Social class restricts behavior 3. Social class is hierarchical Classes are ranked from upper to lower. Ranks are generally recognized by members of all classes. Characteristics of Social Class 1. Social class is multidimensional. 2. Social class restricts behavior. 3. Social class is hierarchical. 4. Social classes change slowly. for society, what defines a social class for families, social rank

7 Measurement of Social Class 1. Reputational or Subjective Methods 2. Objective Methods not suited to survey research methods 3. Sociometric Methods self report most use some index of... income education occupational prestige Measurement of Social Class 3. Sociometric Methods More on Occupational Prestige based on public opinion research studies rank or rate occupations rather subjective but relatively stable over time

8 Measurement of Social Class 3. Sociometric Methods SEI (Socioeconomic Index) Assigns income and education weights to various occupation. Used to give estimates of community standing of various occupations. Weights are updated frequently as requirements and pay changes. Researchers simply record occupation/job title. Measurement of Social Class 3. Sociometric Methods SEI (Socioeconomic Index) SEI Scores from IPLUMS

9 Measurement of Social Class 3. Sociometric Methods SEI (Socioeconomic Index) Hollingshead Index of Social Position Occupation Scale Education Scale Measurement of Social Class 3. Sociometric Methods Higher execs, major professionals (1) SEI (Socioeconomic Index) Hollingshead Index of Social Position Occupation Scale Education Scale Business managers, lesser professionals (2) Admin. personnel minor professionals (3) Clerical & Sales (4) Skilled manual labor (5) Semiskilled (6) Unskilled (7)

10 Measurement of Social Class 3. Sociometric Methods SEI (Socioeconomic Index) Hollingshead Index of Social Position Professional Degree (Masters, Doctorate) (1) Baccalaureate Degree (2) Occupation Scale Education Scale 1 3 years of college (3) High School Graduate (4) years of school (5) 7-9 years of school (6) less than 7 years of school (7) Measurement of Social Class 3. Sociometric Methods SEI (Socioeconomic Index) Occupation (weight 7) Hollingshead Index of Social Position Education (weight 4) Occupation Scale Education Scale Scoring HISP = (Occ x 7) + (Ed x 4) Upper Upper Middle Middle Lower Middle Lower 64-77

11 Bases of Comparison: Egalitarian System Class Levels 100% Bases of Comparison: Privilege System Class Levels

12 Bases of Comparison: The U.S. System Class Levels Bases of Comparison: The U.S. System Upper-Upper (0.3%) Lower-Upper (1.2%) Upper-Middle (12.5%) Middle Class (32%) Working Class (38%) Upper-Lower (9%) Lower-Lower (7%)

13 U.S. Social Classes Upper-Upper (0.3%) Lower-Upper (1.2%) Upper-Middle (12.5%) Middle Class (32%) Working Class (38%) Upper-Lower (9%) Lower-Lower (7%) inherited wealth, aristocratic names newer social elite, professional, corporate other college grads, mgrs, professionals average-pay white collar workers average-pay blue collar workers working, not on welfare, edge of poverty on welfare, poverty stricken, unemployed U.S. Social Classes Upper-Upper (0.3%) inherited wealth, aristocratic names Lower-Upper (1.2%) newer social elite, professional, corporate Upper-Middle (12.5%) other college grads, mgrs, professionals Middle Class (32%) Working Class (38%) average-pay white collar workers American Mainstream average-pay blue collar workers Upper-Lower (9%) working, not on welfare, edge of poverty Lower-Lower (7%) on welfare, poverty stricken, unemployed

14 Social Class Generalizations: Working class Americans Tend to family folk. More than half live within a mile of a close relative versus one in eight upper-middles. Prefer local television news rather than world/national news from networks. Vacation within a two-hour drive of home. Tend to be very patriotic. Supportive of American industry. Structured, traditional sex roles. Close affinity to neighborhood Stress on enjoying today. Social Class Generalizations: Middle class Americans More interested than working class in investing time and money for future improvement. (More are college grads, for example.) Money and high morals are important to middle class. Strongly prefer home ownership. Purchase national name brands. Strong interest in being seen as respectable.

15 Social Class Generalizations: Upper-Middle class Americans Many have graduate degrees and include professionals. Compared to other mainstream classes, job plays a major role in life at work and away from it socially. More likely to be involved in community work though often not directed at poor (PTA, Chamber of Commerce) Watch less TV than lower mainstream classes. Prefer prestige brands, spend with good taste. Travel more and farther. Personality Personality Basics Personality defined: individual psychological traits that respond consistently to environmental stimuli. In other words, personality determines general patterns of (marketplace) behavior. Measurement of personality is difficult, but can be predictive of consumer behavior.

16 Personality Approaches to Personality Measurement 1. State Approach Holistically views personality from responses to differing environmental conditions, or states. Measurement by state approach is qualitative, individual, not well-suited to survey research methods. Personality Approaches to Personality Measurement 1. State Approach 2. Trait Approach Based on the belief that individual human personalities contain varying amounts of a given set of personality traits. Measurement more amenable to marketing research methods. Difficulty is agreeing on the traits that make up personality, deciding which are relevant to predicting behavior.

17 Personality Approaches to Personality Measurement 1. State Approach 2. Trait Approach selected views of personality traits: the Big Five: Extraversion Agreeableness Conscientiousness Emotional Stability Intellectual Openness Personality Approaches to Personality Measurement 1. State Approach 2. Trait Approach selected views of personality traits: the Big Five: popular consumption specific traits (probably subsumed by the big five)

Lecture Guide. Marketing: Essentials 6e

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