Consumer Behavior Textbook - PDF

Chapter 1: What is Consumer Behaviour Consumer Behaviours -​ Study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires Consumer Behaviour Process -​ Buyer Behaviour -​ D...

Chapter 1: What is Consumer Behaviour Consumer Behaviours -​ Study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires Consumer Behaviour Process -​ Buyer Behaviour -​ During early stages of development that reflects an emphasis on the interaction between consumers and producers at the time of purchase -​ The Exchange -​ Two or more organizations or people give and receive something of value Consumers’ Impact on Marketing Strategy -​ Market Segmentation: identifies groups of consumers who are similar to one another in on or more ways and then devises marketing strategies that appeal to one or more groups -​ Age, Gender, Family Structure and Life Stage, Social Class and Income, Ethnicity, Geography, Lifestyles etc. -​ Segmenting by Relationships -​ Involves making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with the company over time -​ I.e. When Sephora gives you a special gift when it’s your birthday Types of Relationships a Person Might Have With a Product -​ Self-concept attachment: the product helps establish the user’s identity -​ Nostalgic attachment: the product serves as a link with a past self -​ Interdependence: the product is a part of the user’s daily routine -​ Love: the product elicits emotional bonds of warmth, or other positive feelings Consumer Activism and Its Impact on Marketing -​ Cause-related marketing -​ When companies promise donations to charity as purchase incentives -​ Green marketing -​ When marketers offer products in ways that are less harmful to the environment and position their brand on the basis of sustainable attirbutes -​ Social Marketing -​ Refers to using marketing techniques normally employed to sell products or services to encourage behaviours that are positive for individuals or society, such as increasing literacy or discoouraging negative activities such as drinking and driving Chapter 2: Perception Perception -​ Perception is the process of selecting, organizing, and interpreting sensory information -​ It is subjective and influenced by personal experiences, expectations, and cultural background -​ Perception follows three stages: Exposure, Attention, and Interpretation Sensation vs Perception -​ Sensation: the immediate response of sensory receptors (eyes, ears, nose, mouth, skin) to stimuli like light, colour, sound odor, and texture -​ Perception: the process of giving meaning to sensory input, which involves selection, organization, and interpretation Sensation: Sight, Smell, Sound, Touch -​ Sensory stimuli influence consumer behaviour through -​ Sight: colours, shapes, and designs in marketing impact perception -​ Smell: scents can evoke emotions and memories (e.g Singapore Airlines' signature aroma) -​ Sound: music and sounds create moods and influence brand associations -​ Touch: physical interaction with a product can increase consumer attachment Perceptual Process Diagram Perceptual Process 1.​ Exposure -​ Occurs when a stimulus enters a person’s sensory range -​ Absolute Threshold: the minimum amount of stimulus intensity needed to be detected (e.g., small font on a billboard may be unreadable); the moment you realize something is there -​ Weber's Law: The stronger the intiital stimulus, the greater the change must be for it to be noticed -​ K = DeltaI/I -​ JND (Just Noticeable Difference): The smallest detectable difference in a stimulus (e.g., slight price increase or product resizing) -​ Reduction in price and don’t want it to be noticeable = below JND -​ Reduction in price and want it to be noticeable = above JND -​ Marketing implication: companies may change product packaging or prices incrementally to avoid consumer notice -​ Subliminal Perception: exposure to messages below the absolute threshold. Research suggests its effectiveness in advertising is questionable 2.​ Attention -​ Consumers do not pay attention to all stimuli due to Perceptual Selectivity -​ Creating Contrast: ads use size, colour, positioning, and novelty to stand out -​ Personal Selection Factors: -​ Perceptual Vigilance: people notice stimuli related to current needs (e.g., looking for discounts when on a budget)  -​ Perceptual Defense: ignoring or distorting messages that conflict with personal beliefs (e.g., smokers ignoring anti-smoking ads) 3.​ Interpretation -​ Influenced by Gestalt Psychology, which emphasizes that the whole is greater than the sum of its parts -​ Gestalt Principles: -​ Closure: people fill in the missing information (e.g., recognizing brand logos even when incomplete) -​ Similarity: grouping objects with shared characteristics (e.g colour-coordinated product packaging) -​ Figure-Ground: Distinguishing the main message from the background (e.g., bold headlines) -​ Interpretation Bias: Past experiences, expectations, and cultural background shape how consumers perceive messages Chapter 3: Learning and memory ​ Long-standing, learned connections between products and memories are a potent way to build and keep brand loyalty (ex. Bringing old trademark characters back) ​ Learning: relatively permanent change in behaviour that experience causes ○​ Learner does not need to have the experience directly ○​ Incidental learning: causal, unintentional acquisition of knowledge Behavioural learning theories: assume that learning takes place as the result of responses to external events ​ Two major approaches: classical conditioning and instrumental conditioning ​ Classical conditioning: occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own (because of UCS we get CR when thinking about CS) ○​ UCS ○​ CS ○​ CR Repetition ​ Many classic advertising campaigns consist of product slogans that companies repeat so often they are etched in consumers’ minds ​ Conditioning will not occur or will take longer if the CS is only occasionally paired with UCS ○​ Extinction can occur when the effects of prior conditioning diminish - ex. When a product is over-exposed in the marketplace Stimulus generalization: tendency of stimuli similar to a CS to evoke similar conditioned responses ​ Halo effect: people react to other similar stimuli the same way they responded to the original stimulus ○​ Ex. a drugstore’s bottle of private brand mouthwash deliberately packaged to resemble Listerine mouthwash Stimulus discrimination: occurs when a UCS does not follow a stimulus similar to the CS → reactions weaker and soon disappear Marketing applications of repetition ​ 3 exposures ○​ First creates awareness of the product ○​ Second demonstrates its relevance ○​ Third reminds him or her of the product’s benefits ​ Advertising wear-out: caused by varying the way the marketer presents the basic message Marketing applications of conditioned product associations ​ Ads often pair a product with a positive stimulus to create a desirable association ​ Order also matters - conditioned stimulus should be presented before the UCS ​ May not be effective for products that consumers frequently encounter because no guarantee the CS will accompany them ​ Novel tunes more effective ​ Ex. music videos serve as effective UCSs because often have an emotional impact Marketing applications of stimulus generalization ​ Family branding: many products capitalize on the reputation of a company name to sell different product lines ​ Product line extension: add related products to established brand ​ Licensing: “Rent” well-known names - link p/s with popular brands/designers ​ Look-alike packaging: similar packages to popular brands Instrumental conditioning (operant): occurs when we learn to perform behaviours that produce positive outcomes and avoid those that yield negative outcomes ​ Positive reinforcement: form of a reward ○​ Consumer learns to perform responses that produce positive outcome ​ Negative reinforcement: avoid negative outcomes ○​ Consumer learns to perform responses that allow them to avoid negative ​ Punishment: unpleasant events follow a response ○​ Customer learns not to perform responses leading to punishment ​ Extinction removal of positive event weakens responses preceding occurrence ○​ Customer learns that responses no longer produce positive outcome ​ Schedules ○​ Fixed-interval reinforcement”=: after a specified time period has passed, the first response you make brings the reward ​ People tend to respond slowly right after they get reinforced but their responses get faster as the time for the next reinforcement approaches ​ Ex. consumers crowd into a store for the last day of seasonal sale and not reappear until next one ○​ Variable-interval reinforcement” the time that must pass before you get reinforced varies by some average ​ Logic behind retailers’ use of secret shoppers; people who periodically test for service quality when they pose as customers at unannounced times  ​ Employees must maintain high quality constantly “just in case” ○​ Fixed-ratio reinforcement: occurs only after a fixed number of responses ​ Motivates you to continue performing the same behavior over and over (ex. Keep buying groceries at same store to earn a prize when you collect 50 register receipts) ○​ Variable-ratio reinforcement: get reinforced after a certain number of responses but you don’t know how many responses are required ​ People tend to respond at very high and steady rates ​ Ex. slot machines Marketing applications of instrumental conditioning principles ​ Frequency marketing: popular technique that rewards regular purchasers with prizes that get better as they spend more Cognitive learning theory - stress importance of internal mental processes, unlike behavioural theories ​ Is learning conscious or not ​ Nonconscious procedural knowledge: people do process some info in an automatic way (ex. When we encounter a new product - we tend to respond to the stimulus in terms of existing categories we have learned rather than formulate new ones) ​ Vicariously learning: you don’t actually experience it yourself (learn from WOM from friends) ​ Incidentally learning: when you’re exposed to something so much that you learn (i.e. if you go to a certain neighbourhood a lot, you’ll subconsciously learn road names) Observational learning: occurs when people watch actions of others and note the reinforcements they receive for their behaviours ​ Modeling: process of imitating the behaviour of others, marketer must meet 4 conditions ○​ The consumer’s attention must be directed to the appropriate model whom he must want to emulate ○​ The consumer must remember what the model says or does ○​ The consumer must convert this info into actions ○​ The consumer must be motivated to perform these actions Marketing applications of cognitive learning principles ​ Can show what happens to desirable models who use or do not use their products ​ Consumer evaluations of the people they model go beyond simple stimulus-response connections - ex. Celebrity image use (depends on social attractiveness) Observational learning process 1.​ Attention: the consumer focuses on a model’s behaviour 2.​ Retention: the consumer retains this behaviour in memory 3.​ Production processes: the consumer has the ability to perform the behaviour 4.​ Motivation: a situation arises where the behaviour is useful to the consumer 5.​ Observational learning: the consumer acquires and performs the behaviour earlier demonstrated MEMORY: process of acquiring info and storing it over time so it will be available when we need it ​ Memory process 1.​ External inputs 2.​ Encoding: info is placed in memory (ST to LT) 3.​ Storage: info is retained in memory 4.​ Retrieval: info stored in memory is found as needed ​ During consumer decision-making process we combine internal memory with external memory ​ Ex. grocery shopping list - peel off stickers on package to remind consumers to plant directly on shopping list How our brains encode info ​ We tend to remember brand names we link to physical characteristics of a product category or that we can easily visualize (tide) ​ Types of meaning - sensory meaning or semantic meaning (symbolic associations) ○​ Episodic memories: relate to events that are personally relevant ○​ Narrative: effective way to convey product info , persuade people to construct mental representations of the info they hear or see - ex. Brand name that conjures an image or story in our minds Memory systems ​ Sensory memory: stores the info we receive from our senses - very temporary lasts a couple of seconds (ex. Smelling a donut shop) ○​ If retains the info for further processing, passes through an attentional gate and transfers to ST memory ○​ Echoic Memory: very brief memory of things we hear ○​ Iconic Memory: very brief memory for things we see ​ Short-term memory (STM): also stores info for a limited period of time, limited capacity ○​ Working memory - holds the info we are currently processing ○​ Our memories can store verbal input acoustically (how it sounds) or semantically (what it means)  ○​ Chunking: combining small pieces into larger ones in a process (ex. Phone #) ○​ Discursive processing: the processing of info as words (i.e. what’s the first word you think of when I say banana) ○​ Imagery processing: the processing of info in sensory form (i.e. anything banana related to its smell ​ Long-term memory (LTM): system that allows us to retain info for a long period of time ○​ Elaborative rehearsal: cognitive process that allows info to move from STM to LTM; relating info to prior knowledge or past experiences ○​ Autobiographical memory: knowledge we havea bout ourselves and our personal experiences ○​ Semantic memory: knowledge about an entity that is detached from specific episodes How our memories store info ​ Associative network: contains many bits of related info ○​ We have organized systems of concepts that relate to brands, manufacturers and stores stored in our memories ○​ Linkage: the means of association between two nodes (ex. Perfume and Hugo Boss) ○​ Activation: Stored cognitive representations are made available for retrieval from emmory for processing (ex. Hugo Boss activates thoughts of your ex-bf) ○​ Spreading of Activation: Activation of one representation will spread and activate other representations (ex. Hugo Boss make you think about your ex-bf and your ex-bf makes you think of the summer) ○​ Trace Strength: The extent to which a link is strongly or weakly linked to a concept in memeory Spreading activation: allows us to shift back and forth among levels of meaning ​ Brand-specific - memory is stored in terms of claims the brand makes ​ Ad-specific - memory is stored in terms of the medium or content of the ad itself (a macho looking guy uses the product) ​ Brand identification - memory is stored in terms of the brand name ​ Product category - memory is stored in terms of how the product works of where it should be used ​ Evaluative reactions - memory is stored as positive or negative emotions Levels of knowledge ​ Meaning concepts get stored as individual nodes ​ May combine these concepts into a larger unit we call a proposition - links two nodes ​ Schema: integration of propositions How we retrieve memories when we decide what to buy ​ Retrieval: process where we recover info from long term memory ○​ Individual cognitive or physiological factors influence  ○​ Older adults have inferior recall ability for current items but may recall events that happened to them when they were younger ○​ Situational factors also influence retrieval = enhanced when we pay more attention to the message in the first place ​ We can retrieve info from a pioneering brand (first brand to enter a market) than follower brands ​ Spacing effect: tendency for us to recall printed material more effectively when the advertiser repeats the target item periodically rather than presenting it repeatedly in a short time period ​ Viewing environment of a message also affects recall What makes us forget (Retrieval Failure) ​ Decay: the weakening of nodes over time ​ Interference: we learn additional info that displaces earlier info ○​ When we increase uniqueness of one brand it impairs recall of others ○​ When associative networks being too closely aligned, we cannot remember ​ Primacy Effect: tendency to show greater memory for information that comes first in a sequence ​ Recenecy Effect: tendency to show greater memory for memory that comes last in a sequence Familiarity and recall ​ The more experience a consumer has with a product the better use he or she makes of product info ​ But when highly familiar they may attend to fewer attributes Salience and recall ​ Salience of a brand: refers to its prominence or level of activation in memory ○​ Introducing a surprise element in an ad can enhance recall even if not relevant to the factual info the ad presents ○​ Mystery ads: ads that don’t identify the brand until the end are more effective to build associations in memory - esp in case of relatively unknown brands The viewing context ​ The show in which the commercial appears influences impact -more likely to remember brands from shows the enjoy Products as memory makers ​ Particularly important when our sense of the past is threatened ​ Spontaneous recovery: a stimulus is able to evoke a weakened response even years after we first perceived it Recognition vs recall ​ Recognition test: researchers show ads to subjects one at a time and ask if they’ve seen them before and remembers key points ​ Free recall tests: ask consumers to independently think of what they have seen without prompts  ​ Recall tends to be more important in situations in which consumers do not have product data at their disposal ​ Recognition more important factor in a store with product options Nostalgia marketing ​ retro brand: updated version of a brand from a prior historical period Chapter 4: Motivation and Values Motivation: processes that lead people to behave as they do, occurs when a need is aroused that the consumer wishes to satisfy ​ This need may be utilitarian (ex. A desire to achieve some functional or practical benefit) or hedonic (ex an experiential need, involving emotional responses or fantasies) ​ End state is consumer’s goal ​ Drive: degree of arousal ​ Want: personal and cultural factors combine to create it ​ Motivation is described in terms of its strength 9the pull) and direction (particular way the consumer attempts to reduce it) Personal Relevance ​ The extent to which it has direct bearing with significant consequence ​ Self concept: our view of who we are, what us important to us ​ Value: culturally held beliefs about what is good or appropriate Needs vs wants ​ Biogenic needs: food, water, air shelter ​ Psychogenic needs: acquired as we become members of a specific culture - status, power, affiliation, reflects priorities of a culture ​ Utilitarian need: emphasize the objective tangible attributes of a product, such as calories, protein, durability ​ Hedonic needs: subjective and experiential (self-confidence, fantasy) Motivational conflicts ​ A goal has valence: positive or negative ​ Negative reinforcements useful for deodorant, mouthwash What Infleunces Motivation? ​ Regulatory Focus Theory ○​ Hedonic principle: people wish to approach pleasure to avoid pain ○​ Promotion focus goal: approaching positive outcome (westerners) ○​ Prevention focus goal: avoid negative outcome (east asians) Approach-approach conflict: when one must choose between two desirable alternatives ​ Theory of cognitive dissonance: based on premise that people have a need for order and consistency ○​ Dissonance occurs when a consumer must choose between two products, both of which possess good and bad qualities  ​ Approach-avoidance conflict: occurs when we desire a goal but wish to avoid it at the same time ○​ Solutions: help consumers overcome guilt when they convince them they deserve these luxuries ​ Avoidance-avoidance conflict: addressed with messages that stress the unforeseen benefits of choosing one option How do our needs influence what we buy ​ Need for affiliation (to be in the company of other people): relevant to p/s for people in groups (ex. Team sports, hangout at shopping malls) ​ Need for power (to control one’s environment): many p/s allow us to feel we have mastery over their surroundings ​ Need for uniqueness p/s that pledge to bring out out distinctive qualities Maslow hierarchy of needs ​ Culture-bound; may only apply to western culture Consumer involvement (Marketing Related) ​ Involvement: a person’s perceived relevance of the object based on their inherent needs, values, interests ○​ Depends on situation we’re in ○​ Reflects our level of motivation to process info ​ Product involvement: consumers’ level of interest in a particular product ○​ Sales promotions help increase ​ Message-response involvement: media platforms like print is a high-involvement medium unlike tv ​ How marketers can boost a person’s motivation to process relevant info ○​ Appeal to hedonic needs (ads that use sensory appeals) ○​ Use novel stimuli like unusual cinematography, sudden silences, unexpected movements in consumers ○​ Use prominent stimuli like loud music and fast action ○​ Include celebrity endorsers ○​ Provide value customers appreciate ○​ Let customers make the messages Purchase situation involvement: differences in motivation when people buy the same product but in different contexts ​ Ex. buying a gift in obligatory situation Types of Involvement ​ Enduring: arises out of a sense of high personal relevance; Long lasting ○​ I.e. I liked playing video games when I was young and have continued so into adulthood ​ Situational: low personal relevance; Short term ○​ I.e. I started talking to a cute guy who loves video games, so I go out of my way to learn and play but things don’t work out with the guy so I stop playing video games ​ Cognitive: at a rational level ​ Affective: at an emotional level Values ​ Differences in values explain why marketing efforts that are a big hit in one country flop in another Discrete Emotions: ​ Happiness: Materialism vs. Experiential purchases; Spending money on others vs. self ​ Envy: Benign (good for them they deserve it) vs. malicious (the guy got nepo’d so he doesn’t deserve) ​ Guilt ​ Embarassment Chapter 5: The Self Self-concept: belief a person holds about his attributes and how he evaluated on these qualities Self-esteem: the positivity of a person's self-concept -​ Girls being exposed to beautiful women express lower satisfaction with their appearance Self-schemas: consist of a system of knowledge structures organized in memory and self-relevant information Possible Selves: Self-schemas created for domains of activity that give personal meaning to the past and the future -​ Ex. selves we could be, would like to be, or are afraid of becoming Multiple Selves ​ Ideal self: who they want to be ​ Actual self: realistic representation of who they are ​ Ought-to self: persons’ believe of what he or she should be Impression management: we work hard to manage what others think of us Fantasy: self infused shift in consciousness, which sometimes is a way to compensate for a lack of external stimulation or to escape from problems in the real world Symbolic interactionism: relationships with other people plays a large part in forming oneself. -​ We learn to share meaning like we know red light means stop Looking glass self: we taktradingng of our own identity when we bounce signals off others and try to project their impression of us. Self-conscious -​ People who are highly self-conscious will show more interest in clothing cosmetics and more to avoid awkward situations later Self-monitors: people who adjust their behavior based on their surrounding  -​ Low self-monitor people are more consistent with their behaviour no matter where they are -​ High self-monitor means they are a chameleons when it comes to different situations Identity marketing: strategy where consumers alter some aspects of themselves to advertise for a branded product The restaurant have free lunch for life in exchange for a tattoo of the logo Symbolic self-completion theory: when people feel incomplete self-definition, they tend to acquire display symbols like clothing or anything materialistic they associate with that role Self-image congruence models: we choose products when their attributes match either our actual or ideal self -​ Fitness people buy Nike because it matches their self Extended self: our possessions, relations or digital identities are an extension of ourselves and who we are. -​ Glass slipper is cinderella -​ Japanese business people view business cards as an extension of themselves 4 levels of extended self: 1.​ Individual level a.​ You are what you wear 2.​ Family level a.​ Consumers residence and the furnishing as a symbol of who we are 3.​ Community level a.​ Towns or neighbourhood or town are connected to who we are 4.​ Group level a.​ The people, sports groups or subcultures, or even landmarks monuments are apart of the extended self Gender bias roles 1.​ Agentic goals: self assertion and mastery are expected form males 2.​ Communal goals: affiliation and the fostering of harmonious relations are for women Androgyny: the mixture between masculine and feminine traits -​ Korean men like to read fashion magazine while taking on masculine roles like paying the bills Gender bending: marketing products to the non dominant gender, it creates a new market Metrosexual: straight men who are highly interested in fashion, home design, gourmet cooking and personal care. A gay man would be considered this The term "übersexual" describes a modern, confident man who embraces style, culture, and grooming but without the perceived vanity or femininity associated with the metrosexual label. LGBTQ -​ They have more spending power. -​ Large demographic and more likely to have a job, laptop and home than regular. Body cathexis: refers to a person's feeling about their body. -​ The happier the person is with their body, the more likely they are to use grooming products Why do people use body decorations or mutilation?: 1.​ Separate group members from non members 2.​ Place person in gender categories 3.​ Enhance sex roles 4.​ Indicate desired social conduct 5.​ Indicate high status or rank 6.​ Provide sense of security Chapter 6: personality Personality: a person's unique psychological makeup and how it consistently influences the way a person responds to her environment Nature of Personality -​ Distinctiveness: personality reflects individual differences -​ Consistent tendency: personality is consistent and enduring -​ Dynamics: personality can change Freudian systems: ID: the immediate gratification is “the party animal”; pleasure principle -​ Someone craving chocolate cake will impulsively eat it without considering health consequences Pleasure principle: our basic desire to maximize pleasure and avoid pain guides our behaviour. Super ego: the moral guide that makes us feel guilt; moral principle -​ The superego might stop someone from cheating on a test because it’s morally wrong. Ego: Operates on the Reality Principle, balancing the impulsive Id and the moral Superego -​ If the Id wants a pizza, but the Superego says it’s unhealthy, the Ego might compromise by choosing a smaller portion or a healthy alternative Reality principle: The Ego works under the Reality Principle, meaning it delays immediate pleasure in favor of long-term benefits and realistic solutions Motivational research: lack scientific rigor and overemphasis on freudian symbolism. it still influences advertising strategies by helping brands craft emotionally compelling messages. Karen horney 3 personality orientations: 1.​ Compliant - prefer security, relationship and belonging a.​ More likely to gravitate towards name brand products that symbolise trust and status 2.​ Detached - prefer independence and self sufficiency a.​ More likely to prefer solitary activities and subtle products (tea drinkers) 3.​ Aggressive - desire power, competition an assertiveness a.​ More likely to choose masculine brands Single Trait Theory -​ Consumer Innovativeness: how receptive a person is to new experience -​ These consumers have higher need for stimulation, variety seeking, higher need of being different from others -​ Consumer Materialism: emphasis placed on acquiring and owning products -​ These people are self-centred and selfish, seek lifestyles full of possessions, show off possessions -​ Consumer Ethnocentrism: prefer products from their own culture/country -​ Need for Cognition: degree which a person thinks about things and then how much effort they put in to process brand information -​ High need for cognition individuals enjoy products that carry a serious learning component, respond favourably to written messages than cartoon messages Multiple Trait Theory: 5 Factor Model -​ Extraversion: talkative, social and assertive -​ Neuroticism: anxious, prone to depression adn worries a lot -​ Openness to Experience: Imaginative, independent minded and has divergent -​ Agreeableness: Good natured, co-operative and trusting -​ Conscientousness: responsible, orderly, dependable Alfred adler: striving overcome inferiority People are driven to compensate for feelings of inferiority by achieving success -​ Ex: buying luxury items to compensate Harry stack sullivan: social anxiety & personality development Personalities are developed through social interactions as people try to reduce anxiety in relationships -​ Ex: brands can carry a sense of belonging to appeal to people seeking social acceptance Carl Jung Collective unconscious: storehouse of inherited memories from past generations that shape human fears, desires and behaviors -​ Fear of dark is common because our ancestors associated it with danger Business advantages of using archetypes:  1.​ Resonate globally 2.​ Provides clear direction for brand identity 3.​ Early warning for brand health Trait theory:measuring and quantifying personality traits to understand behaviour Innovative vs traditional Minimalist vs materialistic Brand Personality Framework Idiocentric consumer: individualistic, independent, self focus -​ Respond to personal achievement, uniqueness and self expression -​ Luxury travel, adventure experiences Allocentric consumer: group oriented, socially conscious, community focused -​ Value community, well being and tradition -​ Family, social responsibility or health conscious products limitations of using trait theory in marketing: 1.​ Lack of validity and reliability 2.​ Misapplication of psychological tests 3.​ Improper testing conditions 4.​ Change to personality instruments 5.​ Broad traits vs specific consumer behaviour Lifestyle: how people choose to spend their time and money to express their identity and values -​ Marketers use lifestyle segmentation to target specific consumer groups based on -​ Activities, spending patterns, entertainment choices Cobrand strategies: work with other companies to promote 2 or more items Product complementarity: when symbolic meanings of different products relate to one another Consumption constellation: clusters of complementary products, specific brands, or consumption activity used by consumers to communicate, perform social roles How do we do a psychographic analysis? 1.​ Lifestyle profile  -​ Differentiates between users and nonuers of a product 2.​ Product specific profile -​ Identifies a target group and profiles consumers based on product-related dimensions 3.​ General lifestyle segmentation -​ Places a large sample of respondents into homogeneous groups based on similarities of preferences 4.​ Product specific segmentation study -​ Tailor questions to a product category AIO activities interests and opinions -​ 80/20 rule; 20% of the customers generate 80% of the sales -​ Help brands identify lifestyle patterns to create highly relevant marketing strategies -​ Allows companies to develop new product variations that align with specific consumer lifestyles How do we use psychographic data? 1.​ Define the target market 2.​ Create a new view of the market 3.​ Position the product 4.​ Better communicate product attributes 5.​ Develop product strategy 6.​ Market social and political issues VALS2 values and lifestyle system Vertical dimensions: resources like income, education, energy level Horizontal dimension: self orientation -​ Ideals-Oriented Consumers → Make decisions based on belief systems; do not seek peer approval. -​ Achievement-Oriented Consumers → Competitive; seek social status & peer validation. -​ Self-Expression-Oriented Consumers → Focus on emotions, experiences, and personal satisfaction. RISC paris based organization research institution on social change 1.​ exploration/stability a.​ The vertical axis seperates people motivated by change creativity volatility and openness from people motivated by stability, familiarity and tradition 2.​ social/individual a.​ The horizontal axis distinguishes people oriented toward collective needs from people-oriented more toward satisfaction of individual needs. 3.​ global/local  a.​ The third axis indicates a distance between people who are comfortable with unfamiliar environments, multiple loose connections, and large scale networking from people preferring close-knit relationships and a desire for the elements of life to be connected in a predictable manner. Geodemographic: analytical techniques that combine consumer spending sata, socioeconomic factors, geographic locations to identify a cluster of consumers with similar consumption patterns -​ Bird of the feather stick together -​ Localized ad efficiency, customised product offers and precise targeting -​