Chapter 14 Psychographics: Values, Personality, and Lifestyles CHAPTER SUMMARY Values are enduring beliefs that inform us what is important. They are learned through the processes of socialization and acculturation. Our values exist in an organized value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a given sphere of activity. Western cultures tend to place a relatively high value on material goods, youth, the home, family and children, work and play, health, hedonism, the environment, and technology. Marketers use tools like value segmentation to identify consumer groups with common values. Three methods for identifying value-based segments are discussed: inferring values based on the cultural milieu of the group, the means-end chain analysis, and questionnaires like the Rokeach Value Survey and List of Values. Personality consists of the distinctive patterns of behaviors, tendencies, qualities, and personal dispositions that make people different from one another. Approaches to the study of personality include (1) the psychoanalytic approach, which sees personality arising from unconscious internal struggles within the mind at key stages of development; (2) trait theories, which attempt to identify a set of personality characteristics that describe and differentiate individuals, such as introversion, extroversion, and stability; (3) phenomenological approaches, which propose that personality is shaped by an individual’s interpretation of life events; (4) social-psychological theories, which focus on how individuals act in social situations (e.g., compliant, detached, or aggressive); and (5) behavioral approaches, which view an individual’s personality in terms of past rewards and punishments. Marketers also measure lifestyles, which are patterns of behavior (or activities, interests, and opinions). These lifestyles can provide some additional insight into consumers’ consumption patterns. Finally, some marketing researchers use psychographic techniques that involve all of these factors to predict consumer behavior. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Define values and the value system and show how they can be described. 2. Identify some values that characterize Western cultures, outline the main factors that influence values, and describe how values can be measured. 3. Discuss the personality characteristics most closely related to consumer behavior, and show why these are important from a marketing perspective. 4. Explain how lifestyles are represented by activities, interests, and opinions. 5. Describe how psychographic applications in marketing combine values, personality, and lifestyle variables. CHAPTER OUTLINE I. Values A. Values are enduring beliefs that a given behavior or outcome is desirable or good. B. A value system is our total set of values and their relative importance. C. How Values Can Be Described 1. Global values are values at the broadest level that represent the core of an individual’s value system. They are different from domain-specific values, which are relevant only to particular areas of activities such as religion, family or consumption. 2. Terminal values are highly desired end states. 3. Instrumental values are those needed to achieve desired end states. 4. Domain-specific values are relevant only to particular areas of activity, such as religion, family, or consumption. D. The Values That Characterize Western Culture 1. Materialism a) Materialistic individuals place considerable importance on the acquisition of money and material goods. 2. Home a) Many consumers place a high value on the home and believe in making it as attractive and as comfortable as possible. b) Cocooning is a trend in which more Americans own their own homes and spend more time there than in previous eras. 3. Work and Play a) Americans are working harder and longer than ever before. b) Work is increasingly valued for its instrumental function in achieving other values such as comfortable lifestyle, family security, and self-accomplishment. c) Possibly, because Americans are working more, they value leisure time as much as money. 4. Individualism a) The traditional “rugged individualist” consumer values independence and self-reliance, tending to see individual needs and rights as a higher priority than the group’s needs and rights. b) Allocentric consumers who prefer interdependence and social relationships. c) Idiocentric consumers tend to put more emphasis on individual freedom and assertiveness. 5. Family and Children a) Americans place a high value on children and are often receptive to child-related products. 6. Health a) The value placed on health has been increasing in the United States. b) Health values are reflected in the increasing number of products that are low in fat, calories, salt, sugar, and cholesterol. c) More than 30 percent of American adults are obese d) Marketing criticized for excessively large portions, ingredients put in or taken out of food. 7. Hedonism a) Consumers are increasingly operating on the principle of hedonism, or pleasure seeking, and desire products and services that simply make them feel good. 8. Youth a) Compared with other cultures, Americans have long placed a high value on youth. 9. Authenticity a) People value things that are authentic, either the original article or faithful reproductions. b) Brands, products and services may be valued because of their authenticity. 10. The Environment a) U.S. consumers are very interested in recycling and helping preserve the environment. b) Fuel efficient cars 11. Technology a) Consumers in Western cultures are fascinated by technological advances. b) Renewed emphasis on simplicity or at least to manage complexity magazines such as Real Simple and Organic Style. E. Why Values Change 1. Societies and their institutions are constantly evolving, so value systems also change. F. Influences on Values 1. Culture and Values a) People in different cultures are exposed to different cultural experiences, so there are cross-cultural differences in values. b) Dimensions along which cultures can vary include: (1). Individualism versus collectivism (2). Uncertainty avoidance (3). Masculinity versus femininity (4). Power distance 2. Ethnic Identification and Values a) Ethnic groups within a larger culture can have some values that are different from other ethnic subcultures. 3. Social Class and Values a) A main characteristic of the different social classes is that each one tends to hold values that differ from the other classes. 4. Age and Values a) Because different cohorts grew up during different times in history, members of a generation can share similar values that differ from those of others. 5. Marketing Implications a) Consumption Patterns (1). Consumers tend to buy, use, and dispose of products in a manner consistent with their values. (2). Marketers will know more about what consumers will do and what they will like if they understand their values. b) Market Segmentation (1). Marketers can identify groups of consumers who have a common set of values that are different from those in other groups, a process called value segmentation. (2). Values can be useful in understanding just what attributes consumers within a market segment are likely to find important in a product and therefore what may motivate them to buy one brand over another. c) New Product Ideas (1). Values are likely to influence consumers’ reactions to products that are new and different. d) Ad Development Strategy (1). Examining the value profile of a target segment can aid in designing appealing ads. e) Ethical Considerations (1). Values guide consumers’ evaluations of the appropriateness of others’ behavior, including marketers. (2). Practices perceived as inconsistent with these values are likely to generate responses like boycotting, protesting, and complaining. G. How Values Can Be Measured 1. Inferring Values from the Cultural Milieu a) The least obtrusive way to measure values is simply to make inferences based on a culture’s milieu. Advertising has often been an indicator of values. 2. Means-End Chain Analysis a) Marketers first find what attributes consumers find important in products. b) They then work backward to uncover the values that drive consumer decisions. This process is called value laddering. 3. Value Questionnaires a) Questionnaires can be employed to directly assess values. (1). Rokeach Value Survey (RVS) (2). List of Values (LOV) II. Personality A. Personality consists of the distinctive patterns of behaviors, tendencies, qualities or personal dispositions that make one individual different from another and lead to a consistent response to environmental stimuli. B. Research Approaches to Personality 1. Psychoanalytic Approaches a) Propose that personality arises from a set of dynamic, unconscious internal struggles within the mind 2. Trait Theories a) Propose that personality is composed of characteristics that describe and differentiate individuals (1). For example, levels of introversion and extroversion 3. Phenomenological Approaches a) Propose that personality is largely shaped by an individual’s interpretations of life events b) Locus of control relates to how people interpret why specific things happen. 4. Social-Psychological Theories a) Focus on social as opposed to biological explanations of personality b) Propose that individuals act in social situations in order to meet their needs 5. Behavioral Approaches a) Propose that personality differences are a function of how individuals have been rewarded or punished in the past C. Determining Whether Personality Characteristics Affect Consumer Behavior 1. Optimal Stimulation Level a) We prefer things that are moderately arousing to things that are either too arousing or not arousing at all. 2. Dogmatism a) Refers to an individual’s tendency to be more resistant to change and new ideas 3. Need for Uniqueness a) Reflects one’s creative/unpopular choice counter conformity, and avoidance of similarity. b) Consumers with a high need for uniqueness resist conformity and strive to buy one-of-a-kind and individual items. 4. Creativity a) A departure from conventional consumption practice in a novel and functional way. 5. Need for Cognition a) Individuals may vary in terms of how much pleasure they derive from active thinking, and contemplating. b) Consumers who enjoying thinking extensively about things like products, attributes, and benefits would be high in need for cognition (NFC). 6. Susceptibility to Influence a) Consumers can vary in terms of their susceptibility to persuasion attempts. 7. Frugality a) The degree to which consumers are disciplined and resourceful in their consumption behaviors. 8. Self-Monitoring Behavior a) Individuals differ in the degree to which they look to others for cues on how to behave. 9. National Character a) Personality traits can sometimes be used to stereotype people of a particular country. 10. Marketing Implications a) Personality traits may be related to consumption behavior. b) Marketers can develop products, services, and communications that appeal to various personality types. III. Lifestyles A. Patterns of behavior represented by consumers’ activities, interests, and opinions (AIOs) B. Lifestyle and Behavior Patterns 1. Outside activities are a good indicator of consumer lifestyles. 2. Lifestyle research can help marketers understand how a product fits into consumers’ general behavior patterns. 3. Consumers in different countries may have characteristic lifestyles. C. Voluntary Simplicity 1. Consciously limiting acquisition and consumption for a less materialistic, more eco-friendly lifestyle D. Marketing Implications 1. Segmentation and Targeting a) Lifestyles can be used to identify consumer segments for various offerings. b) Marketers monitor lifestyle changes to identify new opportunities. 2. Communications a) Ad messages and promotions are often designed to appeal to certain lifestyles. b) Lifestyles have implications for specific media used by consumers. c) Media usage patterns may be related to lifestyles. 3. New Product Ideas a) Marketers can develop new product and service ideas by uncovering unfulfilled needs of certain lifestyle segments. IV. Psychographics: Combining Values, Personality, and Lifestyles A. VALS 1. One of the most widely known psychographic tools 2. Used to identify potential target markets and to understand how to communicate with consumers 3. VALS includes only items that relate to consumer behavior. B. Other Applied Psychographic Research 1. The Futures Company’s Mind Base is a psychographic segmentation system with eight broad segments. C. Marketing Implications 1. Tools such as VALS, Mind Base, and other psychographic applications can be useful for market segmentation, new product ideas, and especially ad development. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. Explain the differences between global values, terminal values, instrumental values, and domain-specific values. Answer: Global values are a person’s most enduring, strongly held, and abstract values that hold across many situations. Terminal values are highly desired end states such as social recognition and pleasure. Instrumental values are values needed to achieve a desired end state such as ambition or cheerfulness. Domain-specific values are those that may apply to only a particular area of activities. 2. What are the four main value dimensions along which national cultures can vary? Answer: The four main value dimensions are individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and power distance. 3. How do marketers use means-end chain analysis, the Rokeach Value Survey, and the List of Values? Answer: Marketers can use the means-end chain analysis to gain insight into consumers’ values by better understanding which attributes they find important in products. They can derive from this the values that drive consumer decisions for this type of product. Marketers can directly assess values by using questionnaires such as the Rokeach Value Survey and the List of Values. The Rokeach Value Survey measures instrumental and terminal values, while the List of Values measures nine principle values in consumer behavior. The results of these questionnaires can indicate to marketers what is important to consumers with respect to different product categories. 4. How does the locus of control affect personality? Answer: Locus of control is the process of how people interpret why things happen. Specifically, individuals with an internal locus of control attribute more responsibility to themselves for good or bad outcomes. Locus of control can heavily affect consumers’ perceptions of satisfaction in a consumption experience. 5. What are the three components of a consumer’s lifestyle? Answer: The three components of lifestyle include one’s activities, interests, and opinions. 6. Define psychographics, and discuss its use and potential limitations. Answer: Psychographics is a description of consumers based on their psychological and behavioral characteristics. Psychographics often offers marketers a better way to segment the market than do demographics. Many products within a category are used by all different demographics. However, psychographics offers a means to investigate one’s values, lifestyle and personality traits to better understand the type of person most likely to purchase a particular product. Some researchers question whether psychographic techniques fully capture all the variation in consumers’ lifestyles. CONSUMER BEHAVIOR CASE Earache Treatment, Aisle 3: The Rise Of Retail Walk-In Clinics Thousands of retailers across America will soon feature walk-in clinics to accommodate people who need to shop and want to get a flu shot or have an achy ear inspected on the same shopping trip. Nights, weekends, holidays, or almost any time, consumers with minor medical complaints are already stopping into local store’s walk-in clinics for quick, convenient, affordable care, filling an important gap between getting urgent care at the hospital emergency room and a scheduled visit to the doctor for in-depth consultation. Many of these stores also have on-site pharmacies, an added convenience for clinic patients who must fill a prescription right away. Some consumers choose the walk-in clinics because their lives are so hectic that they can’t see a doctor during regular office hours. “It works for parents with that little one with an ear infection the day for Christmas,” says a nurse practitioner who works in a Minute Clinic located inside a New England CVS Pharmacy. Others have no regular doctor or prefer to visit a walk-in clinic rather than waiting in a crowded doctor’s office or going to the emergency room to have a sore throat checked. “Access to health care is key,” explains an official at Take Care Health Systems, which runs 350 walk-in clinics located in Walgreens drug stores. “Over 40 percent of our patients tell us that if it weren’t for our clinics, they would go to the emergency room, urgent care clinic, or wouldn’t seek treatment.” Today, about 1,500 clinics are located inside U.S. stores of all kinds; within five years, as many as 4,000 may be operating inside stores, taking advantage of the built-in customer base and good retail locations. Two companies—Minute Clinics that serve CVS stores and Take Care Health System clinics that serve Walgreens stores—account for three-quarters of the U.S. walk-in medical market. CVS plans to open 500 additional clinics during the next few years, even as Wal-Mart moves to aggressively expand its network of walk-in quick-service clinics, all operated by outside health care providers Grocery retailers are also offering walk-in clinics as an extra convenience for their shoppers. At the Giant Eagle supermarket in Lyndhurst, Ohio, the Fast Care Clinic operated by University Hospitals is open seven days a week to treat routine illnesses and administer vaccines. Appointments are available, but if consumers walk in and find a line, they can take a vibrating pager and continue shopping until the clinic signals that it’s their turn for medical treatment. If the patient usually sees a doctor affiliated with University Hospitals, clinic personnel update the electronic medical records and send them to the doctor immediately after the visit. One big reason for the growing popularity of walk-in clinics is the lower cost: Consumers pay significantly less than they would pay at the doctor’s office or the emergency room. Walk-in clinics treat only a limited range of ailments and refer more serious cases to a doctor or hospital. Although some clinics are staffed by doctors, most are staffed by nurse practitioners or physician’s assistants. Other trends affecting demand for walk-in clinic treatment are a looming shortage of primary-care doctors and ongoing legislative changes that affect the nation’s healthcare system. All of this means that soon an even higher number of consumers could find themselves shopping for earrings in aisle 2 when they decide to have an earache or bug bite checked in aisle 3 at the in-store clinic. Case Questions 1. How are retailers using in-store clinics in their marketing to consumers on the basis of lifestyle? Answer: Retailers highlight the convenience and ease of using a walk-in clinic and position the service as fitting into a consumer’s everyday life allowing the retailer to save its customers’ time. 2. What consumer values are represented by the growth in demand for in-store medical clinics during recent years? Answer: Health - the ability to engage in health-promoting activities in more numerous and convenient ways. Family and children – in-store clinics allow families access to healthcare quickly and at an affordable price 3. Develop a means-end chain for an in-store medical clinic. What attributes are associated with the values you have identified? Answer: Attribute – it’s convenient; benefit – I can see a medical professional about my problem quickly, without interrupting my plans for the day; instrumental value – saves time; terminal value – I can spend more time with family (belonging) 4. How might personality characteristics such as dogmatism and frugality apply to consumers’ interest in and use of in-store medical clinics? Answer: Dogmatism will likely make customers more resistant to walk-in clinics because they are new, a different environment than they are used to when receiving health care, and patients often see a nurse practitioner or physician’s assistant rather than a doctor. On the other hand, individuals who have more frugal characteristics will be drawn to the convenience and low price – saving both time and money. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Conduct a content analysis of the advertisements that appear over four issues of a selected magazine. For each ad, record the type of product or service and whether and how each of the following values is reflected in the message: (a) materialism, (b) youthfulness, (c) the home, (d) work and play, (e) the family, (f) health, (g), hedonism, and (h) technology. Summarize this information and answer the following questions: (a) Which values are most often reflected in the advertisements? (b) Do certain types of values appear more often types of products? (c) Which themes appear in relationship to each value? Answer: Ask students to note the source of the magazine and analyze the relationship between the magazine’s target audience and the values contained in the ads. How might different publications reflect different values? Summary of Content Analysis Most Reflected Values: • Youthfulness and Materialism are most frequently reflected. Values by Product Type: • Materialism: Luxury goods, electronics. • Youthfulness: Skincare, cosmetics, fitness. • Family & Home: Household products, furniture. • Health: Fitness equipment, wellness services. • Hedonism: Travel, entertainment, food. • Technology: Gadgets, digital services. Themes by Value: • Materialism: Status, luxury. • Youthfulness: Vitality, beauty. • Home: Comfort, safety. • Family: Togetherness, support. • Health: Fitness, well-being. • Hedonism: Pleasure, indulgence. • Technology: Innovation, convenience. 2. Develop a questionnaire to measure some of the key activities, interests, and opinions of college students. Also, develop a series of items to measure the consumption of five product or service categories that may be related to college lifestyles. Administer this questionnaire to 20 fellow students (across different majors if possible). Summarize the results, and answer the following questions: (a) What are the key lifestyle segments of the college students you surveyed? (b) For each segment, are there recognizable consumption patterns in terms of products or services? (c) What general types of marketing strategies would you use to appeal to each group? Answer: College students are often portrayed in advertisements as party animals, irresponsible slackers only concerned with being popular, or bookworms. What types of college lifestyles are not often represented in advertisements? How could a marketer better reach some of these college student segments? Questionnaire Results Summary (a) Key Lifestyle Segments: 1. Social Butterflies: Active socially, frequent streaming, dining out, and fashion spending. 2. Academic Achievers: Focus on academics, frequent educational material purchases, moderate streaming use. 3. Homebodies: Prefer staying in, high streaming use, low dining out, occasional fashion purchases. 4. Active Enthusiasts: Sports-focused, high fitness spending, moderate streaming use, frequent transportation use. (b) Consumption Patterns: • Social Butterflies: Entertainment and fashion. • Academic Achievers: Educational materials. • Homebodies: Home entertainment. • Active Enthusiasts: Fitness and convenience. (c) Marketing Strategies: • Social Butterflies: Promote social events and trends. • Academic Achievers: Offer educational discounts. • Homebodies: Emphasize home comfort and convenience. • Active Enthusiasts: Highlight fitness benefits and product durability. 3. Visit the VALS website (www.strategicbusinessinsights.com/vals/presurvey.shtml) and answer one of these online surveys to see how psychographics might describe you as a consumer. (a) How do the questions in this survey compare with the questions you developed for exercise 2? (b) Do you agree that the segment in which the survey placed you, based on your answers, in an accurate description of your lifestyle, personality, and/or values? Explain. In terms of psychographics, what additional details about your values, personality, or lifestyle would help a car manufacturer target you more effectively for a new car purchase? What questions would you add to the survey in order to elicit these details? Answer: Survey Comparison and Analysis (a) Comparison: • VALS Survey: Focuses on broad psychographic traits (motivations, values). • Developed Questionnaire: Focuses on specific college-related activities and consumption. (b) Accuracy: • Agreement: Depends on whether the VALS segment aligns with my self-perception and lifestyle. Additional Details for Car Targeting: • Values: Preferences for sustainability, luxury, or tech. • Lifestyle: Daily use, travel habits. Additional Questions: 1. What motivates your car purchase (status, functionality)? 2. How important are sustainability and fuel efficiency? 3. What features do you desire in a car? 4. How do you use your car (daily commute, travel)? SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS THE VALS ONLINE SURVEY Many organizations have used the VALS classification system to gain greater understanding of their consumers and potential consumers, and have successfully developed or reformulated their marketing mixes based on VALS findings. An abbreviated form of the VALS survey is available online at www.strategicbusinessinsights.com/vals/presurvey.shtml. Click on the link to the VALS survey, follow the instructions, and submit your responses. What are your primary and secondary VALS types? According to the website, what can the marketer gain from using the VALS categorization scheme to research consumer behavior? Instructor Notes Results of students’ VALS self-assessment will vary widely. Strategic Business Insights publishes the online VALS survey as an enticement to marketers who might consider paying to use the more comprehensive assessment instrument. By purchasing SBI’s research services, the marketer hopes to gain insight concerning which consumers to target; why they behave as they do; where they live; and how best to communicate with the them. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 2, Motivation, Ability, and Opportunity (impact of resources on ability and opportunity) • Chapter 12, Consumer Diversity (comparison and contrast of VALS with PRIZM) • Chapter 13, Household and Social Class Influences (comparison and contrast of VALS categories with typical social class values and lifestyle factors) • Appendix, Developing Information about Consumer Behavior (external research firms) Discussion Idea Does your VALS category accurately reflect your values and lifestyle? Why, or why not? Possible negative answers might include: • Too few questions in the abbreviated VALS survey; it cannot adequately capture the complexity of factors that contribute to an individual’s values and lifestyle. • Too few determinants in the VALS model; it needs more factors than simply a consumer’s resources and self-orientation. • Arbitrary demarcations between categories; there should be more classifications. • Results differ according to whether the student answers based on individual or household situation (many students are dependents within a parent-headed household). STORM CHASING ADVENTURE TOURS What kind of person spends precious vacation time in Tornado Alley? Find out by going to www.stormchasing.com! Describe a typical vacation package available through Storm Chasing Adventure Tours. Which instrumental and terminal values does this kind of recreation reflect? Relate the desire to participate in a storm-chasing vacation to consumer personality theories and characteristics. Instructor Notes Featured on CBS’ 48 Hours, The Discovery Channel, and the British Broadcasting Company, Storm Chasing Adventure Tours offers two-week vacation packages during violent storm season in Tornado Alley (Texas, Oklahoma, Kansas, and eastern Colorado). According to the website, the primary reason for the tours is the possibility of a firsthand encounter with violent weather, such as tornadoes, supercell thunderstorms, or hailstorms. The tour vehicles have real-time, on-board weather monitoring systems, which allows the tour operators to drive to areas of severe weather in time to witness the storms in action. Storm Chasing Adventure Tours arranges all ground transportation and lodging during the vacation; however, meals and transportation to and from the tour’s origin are the vacationer’s responsibility. If no severe weather occurs on a given day within reasonable driving distance, the tour provides alternate activities such as visits to theme parks. The tour’s operators post rules (no alcohol except in the evening after chasing hours are over), packing suggestions (warm-weather clothing, no hard-sided luggage), fee information, and other useful tips at the website. Terminal values reflected by participation in a storm chasing vacation might include an exciting life; pleasure; self-respect; a sense of accomplishment; or hedonism. Instrumental values related to this activity might include being imaginative and capable. The CAD social-psychological theory of personality has some explanatory power; aggressive consumers may participate in storm chasing because of their general assertiveness and self-confidence. Certainly consumers who seek such vacations have a very high optimal stimulation level! Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 2, Motivation, Ability, and Opportunity (consistency of storm-chasing vacation with consumers’ values, goals, and needs; risk perceptions) • Chapter 4, Memory and Knowledge (schemas for highly-stimulating vacations) • Chapter 5, Attitudes Based on High Effort (application of TORA, contrast of storm-chasing vacation with ski vacation) • Chapter 8, Judgment and Decision Making Based on High Effort (applications of cognitively-based and affectively-based models to storm-chasing vacation decision) • Chapter 11, Social Influences on Consumer Behavior (normative influences on decisions concerning highly-stimulating vacations) Discussion Idea What other kinds of vacations might appeal to the same target market served by Storm Chasing Adventure Tours? ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions that the students consider while reading the chapter or to test their understanding of the material after the reading and lecture are complete. 1. Provide an example of a means-end chain analysis and use this example to explain how such an analysis can benefit consumer behaviorists. Answer: An example of a means-end chain is the following series of statements about Estée Lauder liquid foundation makeup; each step in the chain is ascertained after further probing about its preceding step. Interviewer: What type of makeup do you use? Consumer: Estée Lauder liquid foundation. (Product) Interviewer: Why do you like this product? Consumer: Because it provides good coverage. (Attribute) Interviewer: Why is good coverage important? Consumer: Because it gives my face a smooth, unblemished appearance. (Benefit) Interviewer: Why is it important to have a smooth, unblemished appearance? Consumer: Because it makes me look prettier. (Instrumental Value) Interviewer: Why is looking prettier important to you? Consumer: Because the prettier I am, the more likely people are to like me. (Terminal Value) By moving from the consumer’s initial announcement of a product preference through the product’s attributes and benefits to its instrumental and terminal values, the consumer behaviorist is able to gain valuable insight into the relationship between the product’s attributes and value to the consumer. Marketers can use this information to develop product offerings and to market existing offerings. 2. What types of advertising appeals would be effective for consumers who display each of the personality traits discussed in the text, and why? Answer: The first trait is optimum stimulation level (OSL), which refers to the level of arousal with which an individual is most comfortable. For customers with high OSL, ads that emphasize the newness or adventuresome nature of a product would be appropriate. The second personality trait is dogmatism, which relates to how open- or close-minded a person is. Consumers who are reluctant to change would prefer ads that remind the consumer of the longevity of the product or its spokespeople, such as Betty Crocker, the Morton Salt girl, Mr. Whipple, and the Coppertone girl. The third personality trait, need for uniqueness reflects one’s creative choice counter conformity, unpopular choice counter conformity and avoidance of similarity. Consumers with a high need for uniqueness resist conformity and strive to buy one-of-a-kind and individual items. Need for cognition, the fourth personality trait, refers to how much pleasure a consumer derives from thinking. Individuals with low need for cognition would prefer ads with heuristics, humor, and simple messages, such as the “Got Milk” campaign. The fifth personality trait, susceptibility to influence, relates to how easily persuaded a person is. The sixth trait, self-monitoring behavior, refers to the degree to which a person looks to others for cues on how to behave. An individual with lower social and information processing confidence and high self-monitoring would react to ads that utilize relevant reference group members discussing a product’s attributes and benefits. Beer ads that show men enjoying each other’s company and bonding around their favorite brew address both influence and self-monitoring. Frugality is the seventh trait. This is the degree to which consumers are disciplined and resourceful in their consumption behaviors. Frugal consumers will spend money only when necessary. It does not always mean that they will buy the cheapest alternative, especially in cases where higher quality will ensure a longer product life, thereby enhancing long-term goals. The eighth personality trait, national character, relates to the personality of a country. The Pepsi-Cola ads showing families watching an Independence Day parade, picnicking together while surrounded by red, white, and blue bunting, and enjoying a Pepsi draw on national character. ADDITIONAL QUESTIONS 1. In your group, develop a definition of values. Explain the distinction between a global value, a domain-specific value, an instrumental value, and a terminal value. Clarify the two ways in which the term terminal value is used. Answer: • Values: Enduring beliefs about what is important. • Global Value: Broad principles (e.g., honesty). • Domain-Specific Value: Specific area values (e.g., environmentalism). • Instrumental Value: Means to achieve goals (e.g., hard work). • Terminal Value: Desired end-states (e.g., happiness). 2. Explain how values are learned. Discuss what the terms assimilation and acculturation mean. Describe the characteristics of a society that stimulates assimilation. Answer: • Assimilation: Adopting dominant culture’s values. • Acculturation: Adapting to a new culture but retaining original values. • Assimilation-Stimulating Societies: Promote integration and multiculturalism. 3. Explain the concept of value segmentation. Illustrate the concept by indicating how it applies to several different product markets. Answer: Value Segmentation • Concept: Grouping consumers based on shared values. • Example: Eco-friendly products for environmentalists; luxury goods for status seekers. 4. Provide several examples of products or appeals that you think are particularly compatible with the values of (a) Hispanic consumers, (b) Asian consumers, and (c) middle-class versus working-class consumers. Answer: Value-Compatible Products • Hispanic Consumers: Family-oriented products. • Asian Consumers: Respect and tradition-focused products. • Middle-Class: Quality products. • Working-Class: Practical, value-for-money products. 5. Discuss what is meant by means-end chain analysis. Explain how the process works and what it is intended to show about consumers’ values. Answer: Means-End Chain Analysis • Concept: Links product features to personal values and goals. • Purpose: Shows how products align with deeper values. 6. Explain the difference between a value and a personality trait. Explain how understanding this difference can help marketers. Answer: Value vs. Personality Trait • Value: Fundamental beliefs (e.g., honesty). • Trait: Behavioral tendencies (e.g., introversion). • Marketing Use: Values guide long-term behavior; traits influence specific purchases. 7. Discuss what extroversion, introversion, and locus of control mean. Explain how these concepts can relate to marketing and consumer behavior. Answer: Extroversion, Introversion, Locus of Control • Extroversion: Social interaction preference. • Introversion: Solitude preference. • Locus of Control: Perception of control (internal/external). • Marketing: Tailor products and messages to personality traits and control beliefs. 8. Each person in the group should take a couple of minutes to write down a brief description of his or her own lifestyle. Include at least five examples of how your lifestyle relates to the consumption of products and services. Discuss as a group and identify similarities and differences in lifestyles. Answer: Personal Lifestyle Examples • Examples: Active lifestyle (sports gear), tech interest (gadgets), health focus (gym membership), education (books), convenience (food delivery). 9. Develop a list of guidelines regarding the kinds of marketing tactics that are likely to be effective for people with high versus low needs for stimulation. Answer: Marketing Tactics for Stimulation Needs • High Need: Exciting, novel products. • Low Need: Reliable, traditional products. 10. Develop a brief description of VALS and explain why it lost favor with market researchers. Describe the segments in the VALS2 scheme. Indicate what products, marketing communications, and consumption behaviors might be particularly relevant to the Believers, Strivers, and Makers. Answer: VALS Overview • Description: Psychographic segmentation tool; lost favor for oversimplification. • VALS2 Segments: Believers: Family-focused products. Strivers: Status-oriented items. Makers: Practical products. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “Who Am I?” Exercise Tell students to write a personal ad for themselves (or, if this makes them uncomfortable, for someone they know very well). They should prepare it in eight-point type, column style, with a headline—just as it would appear in an actual newspaper. Have the students turn in the ads anonymously so that you can compile them on 8 x 10 sheets of paper. Copy the compiled ads, distribute them, and discuss them in class. What are the values expressed in the ads. Do common themes emerge? Some students write ads describing themselves and their own characteristics, while others describe the characteristics they seek in another person. Ask students why they took the approach they did. (They often reply that they find it difficult or awkward to write about themselves.) What did they learn about themselves in the process of completing the assignment. What surprised them the most. What general insights did they gain from the assignment. (You can ask a volunteer or two to “choose” a date from among the ads and explain the choice. However, you should be prepared for the possibility that no one will volunteer, especially in a small class!) 2. “Know Thyself . . . and Others, Too” Exercise Tell students to visit the VALS site at www.strategicbusinessinsights.com/vals/ustypes.shtml and determine their profile. Ask them to print out the description of their profile (accessible after the test results are computed) and bring it to class. Use the board to record the types represented in the class. (Because students have relatively limited financial and other resources, Strivers often are over-represented, while Actualizers often are under-represented.) Ask students to retake the survey without indicating a level of income to see if their segmentation type differs. Invariably, some students will disagree with their classifications or with the classifications’ implications for product and media usage. You can use this to motivate a discussion of statistical concepts related to standardized testing (such as reliability and validity) or to seed a more interesting exploration of better ways to “type” consumers. It usually does not take students long to realize that although the test might be inaccurate at a level of detail about specific individuals, it does a good job of capturing the broad segments in the marketplace. (Students who are particularly interested in personality tests might also want to complete a Myers-Briggs-type test called the Keirsey Temperament Sorter at www.keirsey.com/sorter/register.aspx. Other fun tests, including “What breed of dog are you?” are available at www.brainfall.com. CLASSROOM GROUP ACTIVITY Means-End Chain Analysis: 10 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to consider how to conduct a means-end chain analysis to understand terminal values held by consumers. B. What the instructor will do 1. Select products that the students will discuss in their small groups. Depending on the instructor’s objectives, these can be either at the product category level (e.g., meat, milk, eggs) or at the brand level (e.g., Marriott, HoJos, Hilton). Each will generate different results. Giving some of each to groups throughout a classroom will allow for a discussion of the differences between product and brand-level marketing. 2. The instructor will divide people into small groups, assign them a product for analysis, and be available to coach and help the groups as needed. 3. Optionally, groups may be provided with clear overhead acetates and markers so they can summarize their discussions and make presentations after their analysis and discussion. C. What the participants will do 1. The participants will work in small groups to elicit the means-end chain of one participant in the group for a particular product. After a period of small-group discussion, they will make reports to the large group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of three to no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Assign products. 1. Each group should be assigned a single product on which to focus. C. Specific actions for groups 1. The groups are responsible for (1) interviewing one of their own members to elicit responses about a product and (2) developing a description of the means-end chain for that individual related to that product. 2. Optionally, groups can summarize their discussions on clear overhead acetates to facilitate presentations after their analysis and discussion. 3. Process to be followed by small groups a) Select an interviewer and interviewee from the group. The other members are observers. b) Ask the interviewee why s/he likes/dislikes the product. Following the response, probe further as to why that response was given. Keep asking, “why” questions until the interviewee “doesn’t know.” Repeat the process by asking “Why else do (don’t) you like it?” Again, proceed until the interviewee “doesn’t know.” c) As a group, identify attributes, benefits, instrumental values, and terminal values in the responses offered by the interviewee. d) Consider how the product your group has been assigned might be marketed to a segment similar to that described by the interviewee’s values. 4. Large-group discussions a) Have each group present its findings to the class in a round-robin format. III. Debrief and Unveil Concepts A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise d) What will be different when they do this for their own brand B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The importance of understanding the underlying means-end chains in consumers’ minds. 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships among their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Laura Landro, “Informed Patient: Hospital Systems Move into the Walk-In Market,” Wall Street Journal, November 22, 2011, www.wsj.com; Laura Landro, “At the Mall: New Clinics Let Patients Skip the ER,” Wall Street Journal, November 22, 2011, www.wsj.com; Julie Appleby and Sarah Varney, “Wal-Mart Plans Ambitious Expansion into Medical Care,” National Public Radio, November 9, 2011, www.npr.org; Priyanka Dayal, “Walk-in Non-emergency Clinics on the Rise,” Worcester Telegram & Gazette (MA), October 30, 2011, www.telegram.com; Janet Cho, “Giant Eagle Adds Walk-In Clinics Staffed by University Hospital Nurse Practitioners,” Cleveland Plain Dealer, May 6, 2010, www.cleveland.com; and “Buy Health Care at the Store?” MSN Money, March 18, 2011, http://money.msn.com. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211
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