University Of Malaya
Faculty of Business & Accountancy
CMGB 6301
CONSUMER BAHAVIOUR
Case 7:
Psychographics of Luxury Shoppers
Lecturer:
Md. Nor Othman (Ph.D), Prof
Presented by:
Cheng Siew Yee
Lim Kai Hoe, Brian
CGA 080090
CGA 080067
Self-Concept and Lifestyle
1. For which segment(s) do u feel that products are most likely to become part of the
extended self? What are the marketing implications of this?
Extended self consists of the self plus possessions; that is people tend to define
themselves in part by their possessions. These possessions become an integral part of
the person’s self-identity. This also implies that if one were to lose key possessions,
he or she would be a somewhat different individual. While the key possessions might
be major items such as cars and home, they are equally likely to be smaller items with
unique meanings. These items connect emotionally with the owners and often carry
the very special meaning behind the items. These items, for instance, often become
part of extended self as representations of memories, feelings and relationships.
Extended self doesn’t only apply on products, yet also relate closely with non-product
entities, such as activities, other people, places, movies, etc. All of these items give
emotional attributes occasionally.
As shown in the psychographic analysis by Simmons Market Research,
different segmentations on middle-class and affluent single women were examined
while taking into consideration on their demographic and life stage factors. From the
result, income may be necessary, but not sufficient, indicator of spending luxury or
shopping behavior. Different demographic and life stage factors from the research
sample often create differentiation in terms of buying behavior.
Upscale Mature Women
Upscale mature women with median age of 60 will tend to feel that products
are most likely to become part of the extended self. Upscale mature women have a
median income of $69,605, and they are very happy with their current life as it is.
They value the quality time by entertaining people at home. They scored the highest
in terms of paying extra for quality goods and particularly, home décor is their depth
interest. They don’t really undertake the pricing of such products, but they are more
inspired by getting what they want.
Active Grandmas
Active Grandmas were the group of senior citizens with an average median
age of 61. They are rather happy with their current life as it is with a median income
of $35,431.
These groups of people also enjoy entertaining guests at home.
According to the analysis, the pricing of such products is not the main indicator of
their buying behavior. They would rather consider on the heritage values that carried
along with the products.
Marketing Implications
The concept of the extended self has numerous implications for marketing
strategy.
Communications often cause potential consumers to visualize product
ownership which may result in enhanced product evaluations.
In this particular
analysis, relationship between the extended self concept and brand image influence
very much influent the consumer behavior of upscale mature women and active
grandmas.
The different point of views on extend self concept have a big impact on
consumers’ purchases and consumption of the products and services. Extended self,
in particularly, is rather unique and carry an emotional attributes that is significant
overlap across individuals and groups in the analysis shown. Companies and products
that create an image of being concern are most likely to be supported by these
consumers. This will eventually lead to purchases that contribute to emotional
attributes rather than functional ones and they will value the products as much as they
appreciate the emotional values of them
In general, marketing strategy should be implies the preferred brand that will
match the upscale mature women and active grandmas’ extended self-concepts. The
factors of brand preferences, for instance, depend on number of product, situational
and individual factors. Extend self-concept often indicated the particular identity of
one person, meaning if some products are no longer affiliated with him/her, he/she
may turn to be acting like another person. Therefore, once this group has a strong
brand preference against the products or services, they will tend to retain and hold
their preferences, failing which, they will act differently.
2. Which segments appear to be more motivated by functional concerns versus those
motivated by the need to keep up with the latest styles and trends? What are the
marketing implications on this?
Functional concerns – Upscale Mature Women
i)
According to the analysis as shown by the Simmons Market Research, the
market segmentation of upscale mature women appears to be more motivated by
functional concerns. This is so as the lifestyle determinants such as demographics,
social class, personality, household life cycle, etc will eventually lead to how they
live their lifestyle, be it in the cope of activities, interests, attitudes, etc. All these
indications showed to have great impact on their purchase and consumption
behavior.
According to the analysis, upscale mature women will tend to purchase
products or services driven by ideals motivation. They are guided in their choices
by their beliefs and principles, for instance, believing in paying extra is much
more worth it for quality goods. They tend to put their feelings or desire for social
approval aside and rather go for functionality and reliability. According to the
analysis, this group of respondents does not like other people to think that they are
rich and they tend to think before spending money. This indicates that they rather
not to portray that they are willing to spend money on unnecessary products which
contributed to emotional attributes.
ii)
Latest styles and trends – Savvy Career Women
As shown in the analysis, savvy career women appear to be more
motivated by the need to keep up with the latest styles and trends. They scored
the highest in the category of keeping up with changes in style and fashion. In
this case, lifestyle frequently provides the motivation and guidelines for
purchases in an indirect and subtle manner.
Savvy career women consider as the Top Guns under the specific lifestyle
schemes, whom are ambitious and driven, values power and control while
expect to be noticed. They like other people to think that they are rich. And
also, they rely on ideal self-concept, which in turn they often undertake
seriously on how people judge them.
Marketing Implications
According to the different self-concept and lifestyles adapted by these two
different segmentations, they have an extreme buying behavior hence it showed that
marketing implications are different between them. Upscale mature women will
rather go for functional attributes whilst savvy career women will opt for the latest
style and trendy products.
As discussed earlier, lifestyle of one person often relate closely with their selfconcept. Upscale mature women with an average age of 60 would definitely not as
trendy as savvy career women of an average age 40. Their daily activities, interests,
attitudes, expectations and feelings determine their self-concepts and eventually
give an impact on the process of purchase and consumption of their product.
Upscale mature women will only being impressed by the functional of a
product, for instance, the convenient or usability of such products. Marketers will
have to show more intense function of their product rather than to catch the
emotional attachment to it.
For example, the upscale mature women will be
categorized as fantasists in luxury sports cars consumer segments, whereby they use
their car as escape and not as a mean to impress others. As for their shopping
lifestyle, they are segmented as minimalists whom primarily motivated by value and
appreciate for low retail aesthetics. In the VALS system, they are considered as
thinker with ideals motivation. They are more guided in their choices by beliefs and
principles rather than feelings or desire for social approval.
Savvy career women, on the other hand, show the extreme differences as
compared to upscale mature women in the way they purchase and consume their
products. They are considered as enthusiasts, looking at how they shop for their
products. They want to have the latest style with innovation and do appreciate the
retail aesthetics which contribute to the emotional attributes. In the VALS System,
they are categorized as experiencers with self-expression motivation and strivers
with achievement motivation. They are strongly influenced by others’ action or
approval, and tend to purchase status symbols and experiences. Likewise, this
group of consumers is very style conscious and trendy. They will keep themselves
updated with the latest products and services in the market.
3. Can you explain why Savvy Career Women place great emphasis on clothing and
fashion, while luxury automobiles really aren’t that important?
According to the analysis done by Simmons Market Research, savvy career
women tend to place emphasis on clothing and fashion. This is so as their buying
behavior is much influenced by their psychographics and lifestyle.
They held
beliefs about what is acceptable or desirable. They wanted to be portrayed as rich
person by consuming the expensive perfume and cologne. Their shopping lifestyle
segments emerged based on the motive of minimalists.
They are primarily
motivated by value and least motivated by fun and adventure. These groups of
people whom are mostly middle-age also don’t tend to be browsers.
This is
clearly showed when they tend to spend money without much thinking. Most of
everything that they wear is the highest quality which means in a higher pricing.
Luxury automobiles aren’t that important to savvy career women according to
the analysis. They are categorized as achievers whom are successful career-andwork-oriented people with achievement motivation. They generally are in control
of their lives. Image is important to them.
However, lifestyle is the key determinant on why they would prefer to invest
on clothing and fashion instead of luxury automobiles. Demographics (exp: age,
gender), social class, motives, values etc often determine how the savvy career
women live with their activities, interests, likes/dislikes and so forth. They would
rather spend on home deco instead than luxury car. Automobiles, to them, are
products that they would not have in-depth interest as compared to male. They
will emphasize more on products which are common and familiar to them without
intention on browsing much information. This is clearly shown in the analysis
whereby they will buy products without much thinking.
4. Choose two segments which you feel would be viable but different markets for
spas. Develop a marketing plan for each segment, to include core positioning
statement, media venues, key product/ service features, and promotional materials.
Career Savvy Women Segment
1) Core positioning statement:
To provide high-end therapeutic massage and aesthetician services in a caring,
upscale, professional environment. Our goal is to tailor the provided services to the
client's experience and expectation, to ensure the client's comfort and satisfaction are
well met, and to increase repeat business. We are mindful of the overall experience using only the finest oils and lotions, beauty treatments and aromatherapies. Special
lighting, music, decor, and textiles are used throughout the spa to complete the
comfortable and luxury, plush environment and enhance the client's overall luxurious
spa experience.
2) Media Venue:
Grand opening ceremony at prime area, TV advertisement, luxury magazine, website.
3) Key product/ service features:
a) Body Works: Massage, other massage/body works, facials, manicures, pedicures,
waxing, and aromatherapy.
b) Compliment products: Products included are high-end cosmetics, creams, candles,
and other beauty products.
c) Consultation: A session of consulting is also provided for customer that wish of
getting tips and advice about health issues.
4) Promotional material:
Membership package for American Express card holder, voucher, monthly packages
that is customized according to customer preference, endorser.
Upscale Mature Women Segment
1) Core positioning statement:
To provide a comforting, yet stimulating, atmosphere in which customers will be able
to relax both their body and mind, reconnecting their daily lives to their true purpose
through a wide range of holistic methods including massage, body works, and energy
work. Also to become a dependable destination to which they can always come to
escape the stresses of life, and rejuvenate their energies, their souls, and their lives
after hectic working day.
2) Media Venue:
Newspaper, magazine, hotel referral, website
3) Key product/ service features:
a) Body Works: Massage, other massage/body works, facials, manicures, pedicures,
waxing, and aromatherapy.
b) Energy Works: Reiki, energy revitalization, and therapeutic touch. This will
include people wishing to strengthen their physical body, mind, and spirit
through the cleaning and revitalizing of their energetic system (i.e., aura, human
energy field). The Reiki offered will be the traditional Usui Shiki Ryoho, the
predominant form of Reiki practiced worldwide, which originated in Japan from
its rediscovered Dr. Mikao Usui. Reiki is a hands-on "stepping" method of
balancing the energy field. Energy revitalization and therapeutic touch are energy
field cleansing and revitalizing techniques working with the outer levels of the
energy field along with Reiki.
c) Consultations: A consultation session is provided to those seeking more advice
on how to maintain and practice a healthy lifestyle as well as some health
problems face by this group of target market. A professional and qualified
consultant will be on standby to offer the service.
4) Promotional material:
Voucher, special discount package, membership package, coupon and others.