Marketing homework

Marketing 363

Consumer Behavior

Tom Gillpatrick

Center for Retail Leadership

[email protected]

Winter 2018 Week 3

Model of Buyer Behavior Firms Product offering- (4 P’s)

Stages in the Buying Process

Culture &

Psychology

Factors Situational

Factors 1. Problem recognition

2. Information search

3. Information evaluation

4. Purchase decision

5. Post-decision evaluation

Cultural/Values

Subculture

Social class

Ref. Groups

Family/household

Personal

Psychological

-motivation -perception

-learning

-attitudes

Task

Time

Social

Physical

Antecedent

Lifestyles/ VALS

Lifestyles and Psychographics

Psychographics

Uses psychological, sociological, and anthropological

factors to segment a market into groups based on

their reasons to make a particular decision.

AIOS: activities, interests, and opinions.

80/20 rule: 80% of volume comes from only 20% of

the market.

Lifestyles and Psychographics

Psychographic Uses:

Position product

Communicate product attributes

Develop overall strategy

Market social and political issues

VALS

Values and Lifestyles segmentations system

Divides people into 8 groups based on psychological

traits and resources

VALS segments Innovators (successful with many resources)

Thinkers - satisfied, reflective, comfortable

Achievers - career-oriented prefering predictability over risk or

self-discovery

Experiencers – impulsive, young and enjoy offbeat or risky

experiences.

Believers – strong principles and favour proven brands.

Strivers – achievers with fewer resources.

Makers – action-oriented focused on self-sufficiency

Strugglers – primary concern is meeting the needs of the moment.

VALS

My VALS Profile

Your VALS™ Type

Primary Type: Innovators Secondary Type:

Thinkers

The US VALS Framework

Your primary VALS type means that you are

most like the Innovators consumer group. Your

secondary type—the group you are next most

like—is Thinkers.

Your primary VALS type represents your

dominant approach to life. The secondary type

represents a particular emphasis on the

dominant approach.

Try it out for yourself:

http://www.sric-bi.com/VALS/presurvey.shtml

As a consumer group, Innovators exhibit all three primary motivations in varying degrees.

The US VALS Framework

Members of this group typically:

Are always taking in information (antennas up)

Are confident enough to experiment

Make the highest number of financial transactions

Are skeptical about advertising

Have international exposure

Are future oriented Are self-directed consumers

Believe science and R&D are credible

Are most receptive to new ideas and technologies

Enjoy the challenge of problem solving

Have the widest variety of interests and activities.

As a consumer group, Thinkers have high resources and an Ideals motivation.

The US VALS Framework

Members of this group typically:

Have "ought" and "should" benchmarks for social conduct

Have a tendency toward analysis paralysis

Plan, research, and consider before they act

Enjoy a historical perspective

Are financially established

Are not influenced by what's hot

Use technology in functional ways

Prefer traditional intellectual pursuits

Buy proven products.

VALS

As a consumer group, Believers have low resources and an Ideals motivation. The US VALS Framework

Members of this group typically:

Believe in basic rights and wrongs to lead a good life

Rely on spirituality and faith to provide inspiration

Want friendly communities

Watch TV and read romance novels to find an escape

Want to know where things stand; have no tolerance for ambiguity

Are not looking to change society

Find advertising a legitimate source of information

Value constancy and stability (can appear to be loyal)

Have strong me-too fashion attitudes.

VALS

As a consumer group, Achievers have high resources and an Achievement motivation. The US VALS Framework

Members of this group typically:

Have a "me first, my family first" attitude

Believe money is the source of authority

Are committed to family and job

Are fully scheduled

Are goal oriented

Are hardworking

Are moderate

Act as anchors of the status quo

Are peer conscious

Are private

Are professional

Value technology that provides a productivity boost.

VALS

As a consumer group, Strivers have low resources and an Achievement motivation.

The US VALS Framework

Members of this group typically:

Have revolving employment; high temporary unemployment

Use video and video games as a form of fantasy

Are fun loving

Are imitative

Rely heavily on public transportation

Are the center of low-status street culture

Desire to better their lives but have difficulty in realizing their desire

Wear their wealth.

VALS

As a consumer group, Experiencers have high resources and a Self- Expression motivation.

The US VALS Framework

Members of this group typically:

Want everything

Are first in and first out of trend adoption

Go against the current mainstream

Are up on the latest fashions

Love physical activity (are sensation seeking)

See themselves as very sociable

Believe that friends are extremely important

Are spontaneous

Have a heightened sense of visual stimulation.

VALS

As a consumer group, Makers have low resources and a Self-Expression motivation.

The US VALS Framework

Members of this group typically:

Are distrustful of government

Have a strong interest in all things automotive

Have strong outdoor interests (hunting and fishing)

Believe in sharp gender roles

Want to protect what they perceive to be theirs

See themselves as straightforward; appear to others as anti-intellectual

Want to own land.

VALS

As a consumer group, Survivors have the lowest resources; they exhibit no primary motivation.

The US VALS Framework

Members of this group typically:

Are cautious and risk averse

Are the oldest consumers

Are thrifty

Are not concerned about appearing traditional or trendy

Take comfort in routine, familiar people, and places

Are heavy TV viewers

Are loyal to brands and products

Spend most of their time alone

Are the least likely use the internet

Are the most likely to have a landline-only household.

VALS- China

VALS UK

The United Kingdom's Consumer Groups

Activators are at the forefront of innovation, consumer activity, and change and are the most open to new

ideas, products, and services. They have wide-ranging interests and a strong sense of personal identity. Activators

divide by motivation: Tradition Activators, Achievement Activators, and Self-Expression Activators.

Traditionalists focus on preservation. They regulate social change, forcing reassessment of new ideas in the

light of proven and established standards and ethical codes.

Achievers relate achievements to the fruits of hard work and professional endeavor. They focus on success,

status, and family. They value knowledge, influence, and qualifications.

Seekers want individuality, self-discovery, display, and action. They actively seek self-gratification, excitement,

experimentation, and sociability.

Pragmatics like to play safe. They dislike standing out from their peer group and have a relatively low

attachment to any particular lifestyle. Similar to Activators, Pragmatic consumers differentiate by motivation:

Pragmatic Involvers have a tradition motivation, Pragmatic Rationals have an achievement motivation, and

Pragmatic Aspirationals have a self-expression motivation.

Constraineds prefer to try to hold on to the familiar and the past. Their world consists of immediate family

and a few friends, who reinforce rather than challenge or renew their opinions and ideas.

Lifestyles & Psychographics

 Geodemography: Uses consumer expenditures and other socio-economic

factors with geographic information to identify common

consumption patterns in areas where people live.

8-22

Geographic Information System (GIS)

GIS – a system of hardware and software used to store, retrieve, map and analyze geographic data along with the operating personnel and the data that goes into the system.

• coordinate system (latitude and longitude)

• spacial features (rivers and roads)

• some firms offer services combine GIS with updated census data, consumer spending patterns and lifestyles – ESRI (www.esri.com)

– Claritas (www. Claritas.com)

– MapInfo (www. Mapinfo.com)

8-23

Example: ESRI data For the potential site’s addresses, the system

provides the data for 2009 and projected for 2014 on the people living within a three-, five-, and 10- mile radius from the sites

■ Gender

■ Income

■ Disposable income

■ Net worth

■ Education

■ Age

■ Race/ethnicity

■ Employment status

■ Occupation

■ Travel time to work

■ Transportation mode to work

■ Household composition

■ Household expenditures by

NAICS categories

■ Geodemographic market

segment

■ Market potential index

■ Spending potential index

8-24

GIS Map for a Store Trading Area in an MSA

8-25

Data from GIS on Retail Expenditures in a Trade Area

8-26

Tapestry Segment Example: Metro Renters

Young – 20’s Well educated Professional Large cities Median income $50,000 Spend on themselves Surf Internet

8-27

Geodemographic Profile

• What is the geodemographic profile for your neighborhood?

• http://www.esri.com/data/community_data/ community-tapestry/index.html

8-28

Location of Target Customers in a Shopping Center Trade Area

1/24/2018

The Extended Fishbein Model:

The Theory of Reasoned Action

Do attitudes predicts behavior?

Critical Skills Employer Ranking Student Ranking

Motivation 1 2

Verbal Communication Skills 2 1

Ambition 3 3

Personality Fit 4 4

Decision Making 5 6

Self Discipline 6 13

Problem Solving 7 10

Ability to Organize 8 11

Work Independently 9 19

Self Assurance 10 7

Work in Teams Well 11 5

Practical Work Experience 12 9

Leadership 13 8

Time Management Skills 14 14

Creativity 15 12

Quantitative Skills 16 20

Writing Ability 17 17

Selling Skills 18 16

References 19 21

New Technology Skills 20 15

Negotiation Skills 21 18

Marketing Coursework 22 22

Willingness to Relocate 23 23

Grades 24 29

Honors 25 28

Involvement in Clubs 26 27

Programming Language 27 25

University Reputation 28 24

Foreign Language 29 26