Q52134 Critically analyse the VALS analysis used in life-style segmentation.

Answer:

There are other approaches to using psychographics segmentation. Stanford Research Institute (SRI) developed a popular approach to psychographics segmentation, called VALS (values and life-styles), based on Abraham Maslow’s theory of need hierarchy and the concept of personality characteristics developed an approach to segment consumers according to their values and life- styles in U.S.A. Advertisers faced some problems with this method and SRI refined the research as VALS 2, which puts less emphasis on values and more on psychological support of consumer behaviour. This approach predicts consumer behaviour by profiling their attitudes.

According to the current classification scheme (Figure 1), VALS typology breaks consumers into eight groups based on their primary motivations and resources. Primary motivations represent the type of goals, pattern of attitudes and activities that help people reinforce, sustain, or modify their social self-image. This is a fundamental human need. This scheme shows consumers’ primary motivations as: Ideals, Achievement, and Self-expression. Each of these three main motivations typifies distinct attitudes, life-styles, and decision-making approaches. The scheme shows a kind of continuum: high resources – high innovation to low resources – low innovation. Ideals, achievement, and self-expression are three specific patterns that relate to consumer behaviour. Consumers with the ideals (principles) motivation get involved in introspection to make choices and are less inclined to consider physical experiences or social pressure. Choices of consumers with achievement motivation are in relation to the anticipated reactions and concerns of others in the group to which they belong. Those with self-expression (action) motivation base their choices on consideration to related activity. They place value on feelings resulting from action.

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. They are among those who are at the leading edge of change. Innovators are 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, sophisticated, active, and with high self-esteem. They are interested in growth and development; they explore, and express themselves in many different ways. They have social and intellectual interests, and are open to social change. They are guided sometimes by ideals and at other times by desire and are fond of reading. They prefer premium products to display their success to others.

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Figure 1 : Current Framework of Values and Lifestyle (VALS)

Thinkers (formerly fulfilled): Thinkers distinctive feature is that they adopt a rational approach to decision-making. Thinkers are motivated by ideals and exhibit behaviour according to the views of how the world is or should be. They are mature in their outlook, satisfied, comfortable, are well-educated, reflective people who value order, knowledge, and responsibility. They like their home and family, are satisfied with their careers, and enjoy their leisure activities at home. They are open-minded about new ideas and accept social change. As consumers, they are conservative and practical. They purchase products for their durability, functionality, and value.

Believers: Both, thinkers and believers are motivated by ideals. They are not well-educated and the moral code of conduct is deeply rooted in their psyche and is inflexible. Believers are conservative, conventional and have deep beliefs based on tradition, family, religion, and community. Their routines are established and largely influenced by home, family, religion, and social organisation. Their behaviour as consumers is predictable and conservative. Their income is modest but enough to meet their needs.Achievers: They are motivated by the desire for achievement and make choices based on a desire to enhance their position, or to facilitate their move to another group’s membership for which they aspire. They have goal-oriented life-styles and a deep commitment to career and family. They are more resourceful and active. Achievers are inclined to seek recognition and self- identity through achievement at work and in their personal lives. They have high economic and social status and patronise prestige products and services and time-saving devices that exhibit success to their peers. They value consensus, predictability, and stability over risk, and intimacy.

Strivers: They are trendy and fun-loving and are motivated by achievement. They are dependent on others to indicate what they should be and do. They believe money represents success and never seem to have enough of it. Their self-definition is based on approval and opinion of others

around them. They are impulsive by nature, get easily bored, are unsure of themselves, and low on economic, social, and psychological resources. Strivers try to mask the lack of enough rewards from their work and family, and to conceal this they attempt to appear stylish. They try to emulate those with higher incomes and possessions, generally beyond their reach. Strivers are active consumers, shopping to them is both a social activity and an opportunity to show their peers their ability to buy. They read less but prefer to watch television.

Survivors (formerly strugglers): They have narrow interests; their aspirations and actions are constrained by low level of resources. Strivers are comfortable with the familiar and are basically concerned with safety and security. They are ill-educated, with strong social bonds, low-skilled, and are poor. They feel powerless and unable to have any impact or influence on events and feel the world is changing too quickly. As consumers they show the strongest brand loyalties, especially if they can purchase them at a discount. They are cautious consumers and represent only a modest market. They watch a lot of television, read women’s magazines, and tabloids.

Experiencers: They are young, full of vitality, enthusiastic, impulsive and rebellious and motivated by self-expression. They are avid consumers and spend a high proportion of their income on fashion, entertainment, and socialising. Their desire is to feel good and having “cool” stuff. They are college educated and much of their income is disposable. They have an abstract disregard for conformity and authority. Experiencers seek excitement and variety in their lives and like to take risks. Their patterns of values and behaviour are in the process of being formulated. They are fond of outdoor recreation, sports, and social activities. They spend heavily on clothing, music, and fast food.

Makers: Their motivation is self-expression. They like to be self-sufficient, have sufficient income and skills to accomplish their desired goals. Makers are energetic, like to experience the world, build a house, have families, raise children, and have sufficient skills backed with income to accomplish their projects. They are practical people and have constructive skills and energy to carry out their projects successfully. Their outlook is conservative, they are suspicious of new ideas, respect government and authority, but resent any intrusion on their rights. They are not impressed with others wealth and possessions.

Life-style segmentation is particularly useful as a variable in case of product categories where the users’ self-image is considered an important factor, for instance perfumes, beer, jewelry, autos, and other ego-intensive products.

Psychographics segmentation variables are used on a limited scale for several reasons. To accurately measure psychographics variables is rather difficult, compared to other types of segmentation bases. The relationship between psychographics variables and the consumer needs is often difficult to document. Psychographics segments may not be reachable. For example, it may be difficult to reach introverted people at a reasonable cost.

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