Consumer Values and Lifestyles

Values are believed to provide the motivation for buying.  Tend to be abstract so their impact on consumer behaviour is quite indirect. cons s um ume ers use pr prod oduct uct  The way in which con and services in a certain area to attain the heir ir values values is call lle ed cons consum ume er life lifes s tyle yle..  Marketing point of view:- Different types of  consumers have to be addressed in different ways.  Lifestyle is thus a useful tool for  segmentation. 

VALUES

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Values: 

Shared beliefs or cultural norms about  what is important or right.

Cultural values directly influence how Consumers view and use individual products, brands, and services.

Examples of values include: 

Honesty- Telling the truth and not trying to mislead others.

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Integrity- Being a person who can be trusted and relied on by others.

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Fair dealing- Not taking advantage of others or  ripping people off.

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Consideration of others. Respecting and having concern for the welfare and feeling of others.

FORMATION OF VALUES 

Culture- Practices and traditions formed for survival and identity influence decisions

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Mass media- Movies, television, radio, the Internet and other mass media all contribute to what is acceptable and fashionable.

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Upbringing- Family and the conditions of one's childhood are the largest contributors to forming values. Parents teach children what is acceptable to do.

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Religion- The beliefs of a consumer influence their  decision tremendously.

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Peer pressure- Conforming to the social expectations causes people to make certain choices.

 A study created by ROKEACH known as Rokeach Value Survey (RVS) measures two types of values from consumer’s point of  view

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Instrumental Values affecting code of  conduct ambitious,broadminded,capable,cheerful,co urageous,forgving,helpful,honest,obedient,s elf-controlled

2.

Terminal values affecting end-state of  existence – a comfortable life, an exciting life, a world at peace, a world of beauty, family security, equality, freedom, happiness, self-respect, social recognition.

TERMINAL VALUES

PRODUCT CLASS COICE CRITERIA

BELIEFS AND  ATTITUDES  ABOUT PRODUCT CLASS PRODUCT CLASS SELECTION --------------------------BRAND SELECTION

INSTRUMENT  AL VALUES

BRAND CHOICE

BELIEFS AND  ATTITUTES  ABOUT BRANDS

TO ESTABLISH RELATIONSHIPS BETWEEN VALUES AND CONSUMPTION

1.

2. 3. 4.

5. 6. 7. 8.

Self respect Security Warm relations  Accomplishment Self  –fulfillment Well-respected Sense of belongingness Enjoyment

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Researchers using both LOV and RVS have found that differences exist based on values held by consumers.

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For e.g People giving more importance to the value of self-fulfillment tend to search for  activities(products) that serve to this value the most.

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SOCIAL RECOGNITION- Brand, Color, Style, Accessories

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SECURITY – Centre locking, Theft alarms, Tracking systems.

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Self-fulfillment – Cost, comfort

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VALS is a marketing tool that segments the consumer marketplace on the basis of the personality traits that drive consumer behavior.

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VALS applies in all phases of the marketing process i.e 1.New-product development 2.Entry-stage targeting 3.Communications strategy 4. advertising. CAUSE PERSONALITY TRAITS EFFECT

MOTIVATE/TRIGGER

BUYER BEHAVIOR

The VALS System divides consumers into eight categories according to their consumer behavior, these categories are: 1. Innovators 2. Thinkers 3. Achievers 4. Experiencers 5. Believers 6. Strivers 7. Makers 8. Survivors

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TRAITS- successful, sophisticated, high self-esteem, change leaders, most receptive to new ideas and technologies.

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AS CONSUMERS- Active consumers, purchases reflect cultivated tastes for upscale, niche products and services.

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PRODUCTS THEY BUY- Image is important to Innovators, as an expression of their taste, independence, and personality. Their lives are characterized by variety.

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TRAITS- motivated by ideals, mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility.

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AS CONSUMERS- conservative, practical consumers; well educated and actively seek out information in the decisionmaking process, well informed.

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PRODUCT THEY BUY- Open to consider new ideas, they look for durability, functionality, and value in the products they buy.

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TRAITS - Motivated by the desire for achievement, goaloriented, committed, focused .They value consensus, predictability, and stability over risk, intimacy, and selfdiscovery. AS CONSUMERS - With many wants and needs,  Achievers are active in the consumer market. PRODUCTS THEY BUY - Image is important; favor  established, prestige products and services that demonstrate success to their peers.

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TRAITS- Young, enthusiastic consumers

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AS CONSUMERS - Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing.

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PRODUCTS THEY BUY - seek variety and excitement, savoring the new, the offbeat, and the risky.

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TRAITS - Motivated by ideals. They are conservative, conventional people with concrete beliefs based on established codes of community, and social or religious organizations to which they belong.

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AS CONSUMERS  – Predictable consumers; they choose familiar products and established brands.

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PRODUCTS THEY BUY- They favor INDIAN products and are generally loyal customers.

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TRAITS - trendy and fun loving, concerned about the opinions and approval of others. Money defines success for  Strivers, who don't have enough of it to meet their desires.

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AS CONSUMERS - Active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. They are as impulsive as their  financial circumstance will allow.

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PRODUCTS THEY BUY- Favor stylish products that emulate the purchases of people with greater material wealth..

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TRAITS- Makers are motivated by self-expression, express themselves, practical people who have constructive skills and value self-sufficiency

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AS CONSUMERS - Makers are suspicious of new ideas and large institutions such as big business. They prefer  value to luxury.

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PRODUCTS THEY BUY- Unimpressed by material possessions other than those with a practical or functional purpose.

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TRAITS- Live narrowly focused lives, believe that the world is dynamic. They are comfortable with the familiar and are primarily concerned with safety and security.

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AS CONSUMERS- Survivors are cautious consumers. They represent a very modest market for most products and services

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PRODUCTS THEY BUY - They are loyal to favorite brands, especially if they can purchase them at a discount.