A Study of the Impact of Values and Lifestyles (VALS) on Brand Loyalty with Special Reference to English Newspapers*

C.Anandan1, M.Prasanna Mohanraj 2 & S.Madhu3

Abstract Indian Newspaper Industry is witnessing high growth, despite the rise of the Internet and of telecommunications as viable sources of information. Earlier all the newspapers thought that the opportunity for them was within their own geographical area. But, in coming years publishers will be spending over Rs.1000 crores to invade into others territories. Unless the publishers recognize the preferences of readers, it would be unlikely that they would succeed in winning the hearts of the customers. This research makes an attempt to recognize the preferences and segment the readers of the English newspapers based on their psychographic profiles by using VALS. VALS is a way of viewing people on the basis of their attitudes, needs, wants, beliefs and demographics. This research also analyzes the influence of psychographic factors on brand loyalty based on Brand loyalty scale and suggests the psychographic segments to be targeted by the brands to sustain in the competitive Market environment. Different types of market dominance strategies for various market positions are also explored.

1.

INTRODUCTION

Indian newspaper industry is witnessing high growth. Earlier, all newspaper owners thought that opportunity was only within their own geographical area. This situation is changing and publishers are spending thousands of crores to
* 1. 2. 3.

invade each others territories. The newspaper market is bound to grow. New brands are coming into different territories. Unless the publishers recognise the preferences of readers, they would not be in a position to win the hearts of the customers.

Received January 30, 2006, Revised August 8, 2006. Director, Sardar Vallabhbhai Patel Institute of Textile Management, Coimbatore, e-mail: canandrec@yahoo.co.in & director@svpitm.ac.in Lecturer in Bharathidasan Institute of Management (BIM), Tiruchirapalli, e-mail: prasanna@bim.edu & prasannasai_nitt@yahoo.co.in Business Analyst in Satyam Computer Services Ltd at Chennai, e-mail: Madhu_Sathiyaseelan@satyam.com

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When looking for a newspaper, people are interested in papers which correspond to their beliefs and with which they can identify themselves. This study makes an attempt at recognize the preferences and the profiles of readers of English newspapers. Defining the profile of the readers by looking beyond the demographic factors will assist the newspapers to design their marketing strategies in a much better way. This is how study into values and life styles becomes relevant.
1.1 Values And Lifestyles (VALS)

VALS is a way of viewing people on the basis of their attitudes, needs, wants, beliefs and demographics. The VALS program was created by the SRI International in 1978 in an attempt to understand peoples personality through their behaviours amid the changing values and lifestyles in 1970s. VALS uses psychology to segment people according to their distinct personality traits.(see Figure -1) Schiffmen (2004) points out that VALS was redefined to maximize its ability to predict consumer behaviour in 1989.By using psychology to analyze and predict consumer preferences and choices, the current VALS system creates an explicit link between personality traits and purchase behaviour. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behaviour. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising.

The basic tenet of VALS is that people express their personalities through their behaviours. VALS reflects a real-world pattern that explains the relationship between personality traits and consumer behaviour. VALS specifically defines consumer segments on the basis of those personality traits that affect behaviour in the marketplace. VALS uses psychology to analyze the dynamics underlying consumer preferences and choices. VALS not only distinguishes differences in motivation, it also captures the psychological and material constraints on consumer behaviour (Cyber Media Research). For many years, demographics have governed how communicators target campaigns. The problem is that even though individuals in a specific demographic category share some common characteristic, such as, age, sex or income, the psychographics of these group like values, motivations and beliefs are not homogeneous. When attitudes, motivations, personality characteristics and belief systems are analysed mathematically or statistically to determine groups with substantially different attitudes, the result is a psychographic segmentation. There are multiple motivations for a behaviour, and people in a specific demographic category have a wide range of attitudes. Using psychographics can help communicators improve the quality and accountability of their campaigns by zeroing in on the most receptive audience for their message. At a time when communication overload is common among all audiences, communicators must send relevant messages to those who are most receptive.

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Morgan and Doran (2003) argue that psychographic segmentation, if used to design and implement a communication strategy, can result in more effective and efficient campaigns, and change the communicator into a strategist rather than a tactician, moving his or her work from that of an inexact art to an exact science. The eight segments of VALS system range from the top with most resources and high motivation, the innovators, to the bottom part with least resources and low motivation, the survivors. In-between are Thinkers (more resources) and believers (less resources) motivated by ideals ; achievers( more resources) and strivers( less resources) motivated by achievement

and experiencers (more resources) and makers( less resources) motivated by self expression.
1.2 Significance of Brand Loyalty

The success of any brand largely depends on the ability to retain the customers and maintain the brand loyalty towards it. All the customer relationship management and marketing strategies are aimed at retaining the customers. Brands, which have cultivated ardent followers, are always successful. Their customers do not change brands for certain extra attributes of competitor brand or some extra services or benefits. Brand loyalists are less price-sensitive and this reflects in the

Figure -1: Figure showing VALS SEGMENTS

VALS - Framework

INNOVATORS

High Resources High Innovation Self- expression

Primary Motivation Ideals Achievement ACHIEVERS

THINKERS

EXPERIENCERS

BELIVERS

STRIVERS

MAKERS

SURVIVORS

Low Resources Low Innovation

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brands equity also. Marketers have always believed that brand loyalty would lead them to customer relationships, which would enable them to make the best use of customer lifetime value. Traditional approaches to brand loyalty have stressed the importance of the fact that it is less expensive to maintain existing consumers than to get new ones. Consumers who are loyal to a brand are likely to spend more on it and also likely to spread the positive word of mouth to other consumers, thus becoming advocates of the brand (Ramesh Kumar, 2004) Brand loyalty has a direct and obvious impact on corporate profitability and marketing efficiency. Strong brand loyalty leads to improvements in the acquisition and retention of profitable customers, improves margins and market share, and usually improves the hit rate on new product development via product and line extensions. The concept of brand loyalty may be viewed as a behaviour resulting from positive attitudes and perceived value.(National Textile Center, Auburn University) According to Bloemer and Kasper (1995), brand loyalty implies that consumers bind themselves to products or services as a result of a deep-seated commitment. To exemplify this point, they rendered a distinction between repeat purchases and actual brand loyalty. In their published research, they assert that a repeat purchase behaviour is the actual rebuying of a brand whereas loyalty includes antecedents or a reason or fact

occurring before the behaviour. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price (Bill Nissim). In the light of this information, it is clear that brand loyalty can be an important factor in the success of a company. Thus brand loyalty enables long term standing in the market place and reduces the cost of acquiring new customers as well as the minimising the cost of servicing for the existing customers. The very concept of loyalty seems to have become a dynamic one, with the marketing literature presenting different aspects of the concept. Brand loyalty also enables the marketer to sail through tough times and in estimating the demand. Brand loyalty is an important asset contributing to a brands equity. Aaker(1991) describes the five levels of brand loyalty. The highest of these is the committed buyer. Robert, Reynolds and Kristy (2004) describes the ultimate committed customer within the category of committed buyers, as the Harley-Davidson rider who wears the Harley symbol as a tattoo.
1.3 Values and Life Style (Vals) and Loyalty

Emotions and values are related in consumption experiences. Allen, Karen and Kleine (1992) describe the Consumer as the latent variable that links emotions and values in consumption experiences. Emotions supplement attitude in predicting consumption behaviour. Pitts, Robert Jr. and Arch (1984) defines Values

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as an abstract and complex construct that can provide underlying continuity to behaviour. Values may prove to be one of the most powerful explanations of, and influences on, consumer behaviour. Clawson, and Vinson (1978) express the importance of values in predicting the consumer behaviour that values can surpass the contributions of other major constructs including attitudes, product attributes, degree of deliberating, product classification, and life style. The value expressed in a consumption experience is the result of the emotions that accompany the consumption experience. According to Holbrook and Morris (1986) emotions and values are intertwined in consumption. Values drive loyalty because they meet the deep-rooted emotional needs of consumers. VALS - short for values and lifestyles - is a way of viewing people on the basis of their attitudes, needs, wants, beliefs, and demographics. Marketers use VALS to understand why consumers make the choices they do. The more marketers know about the target, the better they can design messages that resonate with the target. By using VALS, marketers can understand the motivations that stimulate consumer behaviour, such as repeated purchase of particular product or brand or participating in a loyalty program (SRI consulting Business Intelligence). Both public television and radio of United States track customer loyalty using the VALS Psychographic segmentation system developed by SRI Consulting (Susan Myrland)

1.4. About the Newspaper Industry

Newspaper has always been one of the most important providers of news and entertainment, despite the rise of the Internet and of telecommunications as viable sources of information. People have different norms, values, and beliefs. Consequently, it is important for newspapers to be able to tie customers to them, to deliver something that satisfies the customer and to give the customer an incentive to be loyal. For this research study, the leading National level English newspapers operating in South India, namely, The Hindu, The Times of India and The New Indian express have been taken.
2. PROFILE OF THE NEWSPAPERS

2.1 The Hindu

The Hindu started in 1878 as a weekly, became a daily in 1889 and from then on has been steadily growing to the current circulation of over 9 lakh copies and a readership of over 3 million .It has achieved third largest English newspaper in the readership. It is printed in twelve centres namely, Chennai (Madras), Coimbatore, Bangalore, Madurai, Hyderabad, New Delhi, Vizag, Thiruvanathapuram, Kochi, Vijayawada, Mangalore and Tiruchirapalli which are connected with high speed data lines for news transmission across the country. The Hindu also publishes Business Line (Business Newspaper), Front line (Fortnightly magazine) and sport star (Sports magazine). It has also published many books.

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2.2 The Times of India

The Times of India was launched in Bombay in 1838. Owned by Bennett, Coleman & Co. Ltd. it is the largest newspaper in the country with a strong national presence. It is Indias most widely circulated English daily and the groups premier mega-brand. The Times of India is rated amongst the worlds six best newspapers and attracts a daily circulation level of more than a million copies. It is published from Mumbai, Delhi, Bangalore, Ahmedabad, Lucknow and Patna. The group also publishes Economic Times, Femina, Filmfare, Navbharat Times, Sandhya Times and Times FM.
2.3 The New Indian Express

crore to invade each others territories. There are a lot of new brands coming into different territories. Therefore, the basic need is to recognize the preferences and the profiles of readers, otherwise they could not win the hearts of the customers. Segmentation based on traditional variables may not be sufficient in the competitive market therefore in order to facilitate the segmentation of the Newspaper market (English) we need to find out the different profiles of the customers based on values and lifestyles and finally we need to explicit the influence of psychographic factors on brand loyalty. Accordingly the objectives of the study were as follows: To study the profile of the customers of the newspaper (English) market based on psychographic lifestyles by using VALS. To develop the brand loyalty scale of customers and to measure the loyalty. To find out the relationship between Psychographic profile of the customer and brand loyalty.
RESEARCH METHODOLOGY

The New Indian Express, published by Express Publications (Madurai) ltd, is printed in fourteen centres. It has a major presence in the four southern states of Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, and also Orissa. The group also publishes newspaper. Dinamani in Tamil and Kannada Prabha in Kannada, and also magazines, Cinema Express in Tamil, Malayalam Vaarika in Malayalam and Tamilan Express in Tamil.
3. NEED FOR THE STUDY & STUDY OBJECTIVES

4.

4.1 Research Design

According to a Price water house Coopers (PwC) survey for the year 2003, (Business World, 2005), it is estimated that the news paper industry in India is around US$1.7 billion in 2003, and is expected to grow to around US$ 2.4billion in 2008. Publishers in India are ready to spend over Rs 1, 000

In this study descriptive research design was followed in this research because the information collected was intended to be used to describe the customers profile based on the Values and life styles and to explore the relationship between their lifestyle and brand loyalty.

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4.2 Sampling Technique

Fixed quota sampling has been adopted for the three newspapers as stated earlier. Samples have been collected from the cities of Trichy and Bangalore.
4.3 Determining the Sample Size

figure of newspapers in study area has been taken as the Population. Hence, Z = 1.96 (95% confidence level), e = 0.05 and p=0.76 is applied in the equation to estimate the sample size.

A pilot study was conducted with 60 respondents (they are not included in the main study) and the data were used for determining the sample size. The responses were sought with regard to brand loyalty in terms of number of purchase. Sample size was determined using the sample size determination for a proportion method. The formula for estimating the sample size (n0 ) is given below: Z 2 p (1 p ) n0 = e2 Where Z is the level of confidence desired, p is the true proportion of success (brand loyal customers) and e is the error permitted. For adjusting the sample size for the population by applying the correction factor, the actual sample size (n) is calculated as below:

n0 =
n=

(1.962 ) 0.76(1 0.76) = 280 .28 0.052

(280 .28 )(339776 ) = 279 .98 280 .28 + (339776 1)

The actual sample size is estimated as 280. Since there are three newspapers and it is decided to use fixed quota sampling (so that enough responses will be obtained from the intended target audience), the sample size has been fixed on the higher side as 300. The Total sample size of 300 customers is divided into three equal quotas as follows:
Brands Times of India The Hindu The New Indian Express Sample size 100 100 100

4.4 Statistical tools

n0 N n= n0 + (N 1)
The sample size was estimated at 95% confidence level, with the permitted error of 0.05. The p was defined as the proportion of the respondent who were brand loyalists. The opinion on loyalty was taken from the pilot study. N referred to the Population. Here, the circulation

The data obtained for the study was analyzed by using Factor analysis for identification of Psychographic segments. Factor analysis was conducted using 36 VALS items from SRI to uncover the dimensions underlying the perception of life-style indices. Exponential cluster analysis is also used with factor analysis for profiling the customers.

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5.

FINDINGS

5.1 VALS Segments

Factor analysis using varimax rotation resulted in finding eight derived factors, each having Eigen value greater than unity. In the rotated factor matrix, those variables which had factor loading of above 0.50 (ignoring the signs) are grouped under their respective derived factors. Thus 36 variables (VALS statements) were then loaded on the five factors. (Rotated Factor matrix shown in annexure I) Factor 1: Innovators consisted of four items reflecting how this lifestyle group enjoying the finer things receptive to new products and technology and they are frequent readers of wide publication. Factor 2: Strivers contained four items describing people of this group as trendy, fashionable and fun loving. They favour stylish products. As they are motivated, they concern very much about the opinion and approval of others. Factor 3: Achievers contained three items characterising themselves as change-leaders and people with high self-esteem. Factor 4: Experiencers consisted of three items reflecting how this life-style group liked excitement, thrill, new things and challenges. Factor 5: Survivors comprised three items classifying people in this group as those who are limited and with less resources and living narrowly focused lives. Their primary concern was safety.

Factor 6: Believers consisted of three items depicting people in this group as conservative and conventional. Their education, income are modest but sufficient to meet their needs. Factor 7: Thinkers consisted only one item classifying people in this group as those who are interested in art, culture and history. Factor 8: Makers consisted of two items classifying the people in this group as those who are interested in making the things in their own way.
5.2 Customers Profile Newspapers of English

Exponential cluster analysis is used for profiling the customers of three English Newspapers, namely, The Hindu, The Times of India and The New Indian Express, based on their lifestyles. 5.2.1 The Hindu The following table depicts the various VALS segments of The Hindu Readers.
Segments Percentage of readers in the segments 40% 35% 20% 5%

Innovators Strivers Achievers Survivors

Innovators are the major part of The Hindu customers followed by Strivers. Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are

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change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Innovators. They will read different categories of publications. It is evident that most of the customers prefer the Hindu because of its image. So they have extended their preferences across the various categories of publications such as magazines and books. They have made the Business line, the Business Newspaper coming from The Hindu publishing house, as one of the largest business newspapers in India(Source: Agencyfaqs) Strivers hold the second major part of the Hindu customers, followed by Achievers and Survivors in that order. 5.2.2 The Times of India
Segments Percentage of readers in the segments 45% 30% 15% 5% 5%

social activity and an opportunity to demonstrate to peers their ability to buy. Times of India is having strong youth image and also pioneer in making page 3 culture. It has a track record of attracting the youth through infotainment (Source: Agencyfaqs) 5.2.3 The New Indian Express
Segments Percentage of readers in the segments 25% 20% 35% 15% 5%

Strivers Innovators Believers Makers Achievers

Strivers Innovators Experiencers Achievers Thinkers

Strivers are the major bases of customers of the Times of India followed by Innovators. Strivers are trendy and fun loving. Because they are motivated by achievement, they favour stylish products that emulate the purchases of people with greater material wealth. Strivers are active consumers because shopping is both a

The New Indian Express is enjoying the rapport with the segments of Believers and Makers. But, the Times of India and the Hindu do not have the markable presence in these segments. Believers are motivated by ideals. They are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community and the nation. Many Believers express moral codes that are deeply rooted and literally interpreted. They follow established routines, organised in large part around home, family, community, and social or religious organizations to which they belong. The New Indian Express, which is having the readership of 2, 20, 000 compared to above-mentioned two dailies (Saha, 2004) The New Indian express is having rich heritage of journalism and providing the news in a conservative and traditional

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manner. So Indian Express is holding very strong base among the believers who need the traditional and conservative newspaper.
5.3 Measurement of Brand Loyalty

2. 3. 4. 5. 6. 7. 8.

Amine (1998) suggests two different approaches for measuring brand loyalty: the downstream one, based on observing consistent purchases of a brand over a period of time and the upstream approach, which focuses on the motives that are behind repeat purchase of a brand. Jacoby and Chestnut, (1978) define Brand Loyalty as biased (i.e., non random), behavioural response (i.e., purchase) expressed over time by some decision-making unit with respect to one or more alternative brands and is a function of psychological (decisionmaking) processes. Based on above definition, the following formula was developed which links attitude toward the favourite brand and purchase behaviour. Brand loyalty Proportion of S attitude towards purchase of = favourite brand X favourite brandover 40 the last ten occasions The following attitude statements are evaluated on five point likert scale reflecting the Readers attitude toward their favourite newspaper are: 1. Highly reliable and credible source

Unbiased News presentation I am enhancing my language / fluency by reading this paper Wide coverage of political and sports news. More entertaining and colourful pictures High print quality and easy to read I love this newspaper I will recommend this paper to my friends/relatives

The behavioural component of brand loyalty can be found by calculating the proportion of buying the Newspaper. This method has taken both attitudinal and behavioural component together 5.3.1 Loyalty Scores of VALS Segments Brand loyalty scale is developed based on Brand loyalty score calculated from the above formula.
Loyalty scale Least loyal customers Less loyal customers Loyal customers Strong loyal customers Loyalty scores 20 39% 40-59% 60-79% 80-100%

The customers are showing the loyalty towards newspapers across all the values and life styles segments. The segment of Makers is less loyal relative to other segments. Experiencers, Believers and Thinkers are the segments showing hard-core loyalty (100%) towards their newspapers. Innovators, Strivers and Achievers are

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The loyalty scale for the three newspapers

Times of India Least loyal Less loyal Loyal Strong loyal 15% 5% 30% 50% The Hindu 10% 45% 45% The New Indian Express 10% 5% 60% 25%

showing strong loyalty (81%-89%) towards their newspapers. The table showing the Loyalty scores of VALS segments is shown in Annexure- II
6. SIGNIFICANCE OF STUDY

of (60%) of loyal customers as it is having 35% of Believers in its customers base.

7. SUGGESTIONS

This study comes out with psychographic profile of customers of the three leading newspapers. This study found that brand image of these Newspapers goes hand-inhand with Psychographic profile of their customers. Strivers are the major bases of customers of The Times of India. Strivers are trendy and fun loving. They are concerned about the opinions and approval of others. Times of India is having strong youth image and also pioneer in making Page 3 culture. So Times of India is utilising their Psychographic profile of strong Strivers base to project their brand image of suave, modern, glossy and entertaining newspaper. The characteristics of VALS segment are found to be similar with the findings of study related to loyalty. Believers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy. They are generally loyal customers. This study also found that all Believers are strong loyal customers. The New Indian Express is having the highest percentage

The strategic framework is developed for the newspaper marketers. This framework suggests four types of market dominance strategies, namely, market leader, market challenger, market follower, and market nicher for a marketer to consider. These strategies are primarily answering two following questions: Which VALS segment to be targeted for each of the above categories? What are the strategies to target these segments? These questions are answered below.
7.1 Market Leader Starategies

The market leader is dominant in its industry. It has substantial market share and often-extensive distribution arrangements with retailers. It typically is the industry leader in developing innovative new business models and new products. Market leaders have to defend their Market share by retaining the existing customers. Market leader should have strong customer base of Thinkers and Believers.

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A Market leader in Newspaper have to enhance its presence among Thinkers for following reasons: Thinkers are conservative, mature and satisfied customers who look for durability and value in the products they buy. They tend to base their decisions on firmly held principles. So they are very hard targets for competitors. Even they refer the brand to their friends/relatives, if they are really satisfied with content. Newspapers with rich content in national and international news will be welcomed thinkers, as they are alert to opportunities to broaden their knowledge. Believers are conventional and loyal customers who prefer established brand in any product category. They follow the established routine. Believers will prefer newspapers with rich content in regional news. Newspapers can target these segment by having the exclusive supplements for covering the regional news. Thinkers and Believers are the segments who will be cult followers of the Brand. With more than 2.4 million copies sold every day, The Times of India has been certified by the Audit Bureau of Circulations as having become the worlds largest selling English broadsheet newspaper ahead of giants like USA Today and Wall Street Journal, Times London and The Guardian. The Times of India is the pioneer in creating the page 3 culture by targeting the strivers. Innovators are holding second major customer base of this newspaper. It can start to target the Innovators as they extend their support and preference to other category of publications. But they dont have

significant presence of Believers and thinkers. From the findings it is found that Times of India is relatively having less loyal customer base compared to other two newspapers .As a Market leader, they have to target Believers and Thinkers to increase the loyalty base, which will make the brand travel towards cult status.
7.2 Market Challenger Starategies

A market challenger is a firm in a strong, but not dominant position that is following an aggressive strategy of trying to gain market share. It typically targets the industry leader, but it could also target smaller, more vulnerable competitors. Strivers are impulsive and easily bored. So, Strivers are the vulnerable segment to be targeted by Market followers. Many of them seek to be stylish. And they are concerned about the opinions and approval of others. They are fashion victims(Source: Scarborough Research ). Rising disposable income among youth will influence the rise of strivers. The Hindu has been steadily growing to the current circulation of over 900,000 copies and a readership of over 3 million. Strivers hold the second major part of The Hindu readers. The Hindu may start to target these segments. The Hindu may come out with the sections or supplements dealt with entertainment, colorful pictures, and stories about the latest trends in fashions. The Hindu will get the Advertisements from the advertisers whose target audience are youth. Now The Hindu is conducting the educational fair, career fair etc. Similarly it may conduct the fashion shows or sponsoring the fashion

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shows to get the firm place in the minds of Strivers. At the same time, it should not deviate from its core content of educational journalism so that it can retain its Major segment of Innovators. 7.3 Market Followers Starategies A market follower is a firm in a strong, but not dominant position that is content to stay at that position. The rationale is that by developing strategies that are parallel to those of the market leader, they will gain much of the market from the leader while being exposed to very little risk. Market followers may follow two options 1. Strengthen the loyalty of existing customer base by delivering the core benefits to their segments. They should strengthen the segment of Thinkers and Believers as they are insulate to competitors promotions. Expanding the customer base by targeting the Brand Switchers. They may target the Experiencers, strivers and strugglers who are brand switchers to expand the Market share. Experiencers are impulsive and rebellious. They are variety seekers (Source: Doug Box)

(N.G.O) in promoting the civic awareness campaigns, such as, anti-pollution, antismoking movement etc. Believers will show their hard-core loyalty as long as the New Indian express will stay on their traditional image
7.4 Market Nicher Strategies

In this niche strategy the firm concentrates on a select few target markets. It is also called a focus strategy. It is hoped that by focusing ones marketing efforts on one or two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market. The niche should be large enough to be profitable, but small enough to be ignored by the major industry players. Makers and Achievers are the faithful segments for Market Niches. Newspaper with political alignment may target the Achievers. Achievers are value consensus, politically conservative and respect the authority. They will prefer the newspaper, which will support their political ideology.
7.5 Strategies For New Entrant

2.

The New Indian express is having exclusive VALS segments such as Believers, Makers, Achievers .The other two newspapers do not have significant presence in these segments. So the New Indian express may utilise and tap the potential among these segments. It can utilise its editorial section to address the societies need for justice. It can tie-up with Non-Governmental Organisations

Experiencers are the vulnerable segment for New entrant in the Newspaper Market. Experiencers are young, impulsive and rebellious. They seek variety and excitement. They are politically uncommitted and uninformed. So they may not be loyal to any brand. They can be targeted easily to boost the initial sales. Survivors can also be targeted for initial launch, if the Newspaper goes for low-price and consumer promotion tools.

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All the Newspaper brands should concentrate on developing their image and evolving in to changing needs of the custome rs. They should address the needs of Thinkers and Believers to strengthen their loyalty base. General Newspapers may utilize the Innovators willingness to read all categories of publications. Innovators may extend their loyalty to other category of their favorite publication like Business Newspaper, women magazine and Sports magazine etc. Newspapers should address the needs of Strivers , to get youth and energetic image.
8. CONCLUSION & DIRECTIONS FOR FUTURE RESEARCH

Agencyfaqs, www.agencyfaqs.com/news/ interviews/data/260.html Allen, Chris T., Karen A. Machleit and Susan Schultz Kleine (1992), A Comparison of Attitudes and Emotions as Predictors of Behaviour at Diverse Levels of Behavioural Experience, Journal of Consumer Research, 18 (March), 493-504. Berenson, Mark l. and Levin, David M. Basic Business Statistics concepts and application. Prentice Hall International inc.: USA, 1996, pp 365-371 Bill Nissim, Brand Loyalty: The psychology of preference; http:// http:// w w w . b r a n d c h a n n e l . c o m / papers_review.asp?sp_id=680 Bloemer J.M.M, Kasper H.D.P (1995) The complex relationship between consumer satisfaction and brand loyalty, Journal of Economic Psychology, Volume 16, Number 2. Booming Publishing Industry, Business world, March 28,2005, pp 45-56 Building Global Textile and Apparel Brand Image Strategies: A Cross-National Model:Introduction, www.auburn.edu/~forsysa/NTC, Last updated: September 07, 2001 C.Anandan, K.Ravi, M.Prasanna Mohan Raj. The Indian Daily Heritage Brands, Advertising Express, January 2006,pp 65- 69 Clawson, C.J. and Donald E. Vinson (1978), Human Values: A Historical and Interdisciplinary Analysis, in Contributions to Consumer Research V, ed. H. Keith Hunt, Association for Consumer Research, Chicago. Cyber mediaresearch, http:// www.cybermediaresearch.co.in/vals.htm Doug Box , Values and Lifestyles: Is VALS used to identify who are your clients, http:// www.simplyselling.com/values.htm Holbrook, Morris B. (1986), Emotion in the Consumption Experience: Toward A New

This study has been an attempt at examining various VALS segments and their impact on brand loyalty particularly in the context of major English newspapers. Certain suggestions have also been made for these newspapers strengthen their loyalty base. Further research in the area can possibly include extension to different Brands and studying relationship between geodemographic factors and VALS factors. Similarly, the relationship between lifestyles and preference for Regional Vs English Newspaper can also be studied.
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Model of Consumer Behaviour, in The Role of Affect in Consumer Behaviour. Robert A. Peterson, Wayne D. Hoyer, and William R. Wilson, Lexington, MA: Lexington Books, 1752 Jacoby, J. and Chestnut, R. W (1978). Brand Loyalty: Measurement and Management, New York, , John Wiley and Sons p.80 Morgan, Carol M., Levy, Doran J (Jan2003). Psychographic Segmentation, Communication World, 07447612, Vol. 20, Issue 1 Pitts, Robert Jr. and Arch G. Woodside (1984), Personal Values and Market Segmentation: Applying the Value Construct, in Personal Values and Consumer Psychology, eds. Robert E. Pitts, Jr. and Arch G. Woodside, Lexington, MA: Lexington Books, 55-67 Ramesh Kumar, S., Catalyst: Is Brand Loyalty a myth, November 25, 2004; www.blonnet.com/catalyst Robert .W., Reynolds, Kristy E (2004). A Model

for Consumer Devotion: Affective Commitment with Proactive Sustaining Behaviours, Academy of Marketing Science Review, p 14-16 Robert F. Hogeboom, Active Lifestyle Brands: Popular apparel brands reach pinnacle and ride wave of success http:// w w w . b r a n d c h a n n e l . c o m / papers_review.asp?sp_id=1126 Saha, P., News:IRS Round 2 reports: TOIs readership declines marginally, www.agencyfaqs.com/news/stories/2004/ 10/01/9993.html. Schiffmen, L (2004), Consumer Behaviour, 11th edition, New Delhi: Pearson education, New Delhi. Susan Myrland , Building Customer Loyalty in Community Networks- Research Study http://www.mediamanage.net/ Customer_Loyalty.html SRI consulting Business Intelligence: http:// www.sric-bi.com/VALS/th inkers.shtml

ANNEXURE I Rotated Factor Matrix (loading criteria > 0.5)

VALS Statements I like to take the challenge of doing something that I have never none before I like to try new things I like to learn things even if they never be any use I like to do the new and different things I like to dress latest fashion I want to be considered as fashionable I follow the latest trends & fashions I dress more fashionably than most people F1 0.797 0.759 0.746 0.696 0.831 0.657 0.559 0.554 F2 F3 F4 F5 F6 F7 F8

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VALS Statements I like being in charge of a group I consider myself as an intellectual I must admit that I like to show off I am always looking for thrill I like lot of excitement in life I crave for excitement I am interested in only few things I make things of wood, metal I make things to use Just as my religion says the world was created by god The Indian government should encourage prayers in schools There is too much sex in television I like to learn about art, culture and history I like to look through hard ware or automotive stores I am interested in working with engines

F1

F2

F3 0.812 0.666 0.478

F4

F5

F6

F7

F8

0.770 0.763 0.744 0.798 0.500 0.411 0.803 0.793 0.535 0.600 0.696 0.653

ANNEXURE II Joint Matrix Showing Brand Loyalty Scale For VALS Segments
Segments Innovators Strivers Achievers Experiencers Survivors Believers Thinkers Makers Least loyal 11.2 4.5 25 33.3 Less Loyal 13.5 16.7 Loyal 55.6 27.2 33.3 100 25 100 66.7 Strong loyal 33.5 54.4 50 50 100 -