Psychographic
is the science of using psychology and demographics to better understand
consumers. In psychographic segmentation, buyers are divided into different
groups on the basis of psychological/personality traits, lifestyle, or values.
People
within the same demographic group can exhibit very different psychographic
profiles. Values and lifestyles significantly affect product and brand choice
of consumers. Religion has significant influence on values and lifestyles.
The strict
norms that consumers follow with respect to food habits or even dress codes are
representative example in this regard. A significant numbers of consumers in
India are strictly vegetarians. Even among those who consume non vegetarian
food, many avoid beef. McDonald’s changed their menu in India to adapt to the
consumers preferences. Beef is avoided in the menu of McDonald’s and instead,
company introduced vegetarian burger and other products based on the
preferences of vegetarian food.
Similarly,
“Halal” meat is prescribed for consumption among Muslims, and the meat imported
to countries like Pakistan and Bangladesh has to be certified by approved
Islamic organizations.
The market
for wristwatches provides another illustration of segmentation based on
lifestyle parameters. Titan watches have a wide range of sub-brands within
their Titan range such as Edge, Regalia, Nebula, and Raga, to appeal to
different lifestyle segments. Some of these models are ornate watches with gold
plated bracelets, and some with leather straps. The company’s range of watches
under the Fastrack brand appeals to the youth segment.
Instead
noodle manufacturers and ready to eat, fast to cook food brands such as Maggi,
Top Ramen, and Aashirvaad targeted at time constrained consumers is another
example of segmentation based on lifestyle and consumers.
Similarly,
Femina, a women’s magazine in English, is targeted at the “woman of substance”
or women with a broader world view.
One of the
most popular commercially available classification system based on
psychographic measurement in SRI Consulting Business intelligence’s (SRIC-BC)
VALSTM framework. VALS, signifying values and lifestyles, classifies
U.S. adults into eight primary group based on response to a questionnaire
featuring 4 demographic and 35 attitudinal questions. The VALS system is
continually updated with new data from more than 80,000 surveys per year. You can find out which type of VALS you are
by going to the website of SRIC-BC.
The main
dimensions of the VALS segmentation framework are consumer motivation and
consumer resources. Consumers are inspired by one of three primary motivations:
ideals, achievement, and self-expression. Those motivated ideas are guided by
knowledge and principles.
Different
levels of resources enhance or constrain a person’s expression of his primary
motivation.
The four
groups with higher resources are:
1. Innovators- Successful,
sophisticated, active, “take-charge” people with high self-esteem. Purchases
often reflect cultivated tastes for relatively upscale, niche-oriented products
and services.
2. Thinkers- Mature, satisfied, and
reflective people who are motivated by ideals and who value order, knowledge,
and responsibility. They seek durability, functionality, and value in products.
3. Achievers- Successful, goal-oriented
people who focus on career and family. They favor premium products that
demonstrate success to their peers.
4. Experiencers- Young, enthusiastic,
impulsive people who seek variety and excitement. They spend a comparatively
high proportion of income on fashion, entertainment, and socializing.
The four
groups with lower resources are:
1. Believers- Conservative,
conventional, and traditional people with concrete beliefs. They prefer
familiar products and are loyal to established brands.
2. Strivers- Trendy and fun loving
people who are resource constrained. They favor stylish products that emulate
the purchases of those with greater material wealth.
3. Makers- Practical, down to earth,
self sufficient people who like to work with their hands. They seek products
with a practical or functional purpose.
4. Survivors- Elderly, passive people
who are concerned about change. They are loyal to their favorite brands.
Markets can
apply their understanding of VALS segments to marketing planning. For example,
Transport Canada, the agency that operates major Canadian airports, found that
Actualizers, who desire to express independence and taste, made up a
disproportionate percentage of air travelers. Given that segment’s profile,
stores such as Sharper Image and Nature Company were expected to do well in the
firm’s airports.
Psychographic
segmentation schemes are often customized by culture. The Japanese version of
VALS, Japan VALSTM, divides society into 10 consumer segments on the
bases of two key concepts: life orientation (traditional ways, occupations,
innovations and self expression) and attitude to social change (sustaining,
pragmatic, adapting, and innovating).
