Page 233 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes
Did u know? Lifestyle segmentation is particularly useful in case of product categories
where the users’ self-image is considered as an important factor, such as perfumes, beer,
jewellery and other ego-intensive products.

AIO inventories are a useful addition to demographic data but marketers have found the original
AIO inventories as being too narrow. Now, psychographics or lifestyle studies generally include
the following:

1. Attitudes, which include evaluative statements about, people, products, ideas and places
etc.
2. Values, which refer to widely, held beliefs about what is right/acceptable/desirable etc.

3. Activities and interests that cover behaviours with respect to activities other than occupation
to which consumers devote time and effort, such as hobbies, interests, social service etc.
4. Demographics that relates to gender, age, education, occupation, income, family size and
geographic location etc.
5. Media preferences – which specific media the consumers prefer and use.
6. Usage rates that relate to measurements of consumption level within a particular product
category and is generally recorded as heavy, medium, light or non-user.

VALS (Values and Lifestyles)

Stanford Research Institute (SRI) developed a popular approach to psychographics segmentation
called VALS (Values and Lifestyles). This approach segmented consumers according to their
values and lifestyles in USA.
According to the present classification schemer VALS has two dimensions. The first dimension,
primary motivations, determines the type of goals that individuals will pursue and refers to
pattern of attitudes and activities that help individuals reinforce, sustain or modify their social
self-image. This is a fundamental human need. The second dimension, resources, reflects the
ability of individuals to pursue their dominant motivations that includes the full range of
physical, psychological, demographic and material means such as self-confidence, interpersonal
skills, inventiveness, intelligence, eagerness to buy, money, position and education etc. The
questions above are designed to classify respondents based on their primary motivations.
Stanford Research Institute (SRI) has identified three basic motivations:

1. Ideals (principle): Individuals are guided in their choices by their beliefs and principles
and not by feelings, desires and events.
2. Achievement: Individuals are heavily influenced by actions, approval and opinions of
others.
3. Self-expression (action): Individuals desire physical and social activity, variety and risk
taking.

Based on the concepts of basic motivations and resources, the typology breaks consumers into
eight groups.
1. Innovators (formerly actualisers): This segment is small in size compared to other seven
but may be the most attractive market because of their high incomes and they are the
leading edge of change. They are among the established or getting established leaders in
business or government, yet they seek challenges. Image is important to them as an
expression of their taste, independence, and character. These people are successful,

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