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.