Life-Style and Psychographic Analysis

Life-style refers to how people live, how they spend their money, and how they allocate their time

Life-style and personality are different, yet are closely related

The distinction between personality and life-style:

Personality refers to the internally based dispositions of the person. In contrast, lifestyle refers to the external manifestations of how a person lives.

Psychographics is the quantitative investigation of consumers life-styles, personality, and demographic characteristics.

AIO statements identify consumer activities, interests, and opinions

Activity questions ask consumers to indicate what they do, what they buy, and how they spend their time. Interest questions focus on what the consumers preferences and priorities are. Opinion questions ask for consumers views and feelings on such things as world, local, moral, economic, and social affairs.

SRI developed two psychographic inventories: VALS and VALS 2

VALS is based upon motivational and developmental psychological theories particularly Maslows hierarchy of needs theory. VALS 2 was developed specifically to measure consumer buying patterns.

The VALS 2 Inventory

Goal of VALS 2 is to identify specific relationships between consumer attitudes and purchase behavior. Three self-identify orientations: principle oriented people, status oriented people, and action oriented people. Three resource orientations: financial, psychological, and material. Based upon total number of resources, people could be categorized based upon their level of resources. VALS 2 used by corporations to understand the basis for consumer lifestyles, which is useful for developing promotional strategy and even where to place retail stores such as The Sharper Image.

VALS 2
Principle Oriented

Actualizers Abundant Resources

Status Oriented Action Oriented

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Minimal Resources

Strugglers

The List of Values (LOV) Scale

The list of values (LOV) scale was developed to correct some of the problems of VALS. Goal is to assess the dominant values of a person (i.e., it does not use AIO statements).

Nine values are assessed by the LOV scale:

Sense of belonging Being well-respected Security Fun and enjoyment Warm relationships with others Self-fulfillment Excitement Sense of accomplishment Self-respect

A Warning
Psychographic inventories often result in clever descriptions of a target market that can result in stereotypes. It can result in managers disparaging the target group. It can cause managers to view the target market as more homogeneous than it really is.

Managerial Implications
Position and differentiate product based upon the dominant personality or psychographic characteristic of the target market. Scan the environment to identify the dominant cultural values of the target market. Use market research to identify the personality, self-concept, and psychographic characteristics that distinguish the target market. Develop promotions to be consistent with the dominant personality characteristics of target market. Create products that fulfill the motivational needs of targete.g., low risk products for the low need for arousal group. Use personality and psycholographics to identify segments of consumers to target, such as one-price auto dealers for low bargain prone.

Factors Affecting Consumer Behavior: Personal

Personal Personal Influences Influences

Age and Life Age and Life Cycle Stage Cycle Stage

Occupation Occupation

Economic Economic Situation Situation

Personality & Personality & Self-Concept Self-Concept

Lifestyle Identification Lifestyle Identification

Activities Activities

Interests Interests

Opinions Opinions

11