This chapter discusses how marketers analyze demographic and lifestyle trends in societies to develop marketing strategies. It covers topics such as using demographic factors to understand market segments, anticipating demographic shifts, changing gender roles, measuring lifestyles through psychographics, and applying lifestyle and psychographic segmentation to target different population groups. The document also provides examples of how demographics and lifestyles influence consumption behaviors and can be used for market segmentation.

1. Chapter Twelve:
Australasian (or own) society:
Demographics and lifestyles
12-1

2. Chapter 12
Australasian society: Demographics
and lifestyles
• Use of demographic factors
• Anticipating demographic shifts
• How population segments can influence behaviour
• Changing gender roles in society
• Lifestyle and how it is measured
• Psychographics and its applications
• Using lifestyle and psychographics for market
segmentation
12-2

3. KEY NOTE
• This chapter is written purely from an Australian
perspective
• You can avoid most the details since we are in
Singapore
• But what is important is that you understand how
marketers track and analyze the marketing
implications of demographic changes in society-
and respond accordingly
• I have omitted including much of the data and
charts in Chapter 12 and decide to focus on the
key issues only
12-3

4. Australasian society:
Demographics and lifestyles (cont.)
Some specific questions are:
• Which demographic factors help marketers
describe and understand the market segments?
• What is the importance of anticipating demographic
shifts in society to develop marketing strategies?
• What are some impacts of changing roles
(such as gender roles) on society and
consumption?
12-4

5. Demographics and Social Stratification
Demographics
Population
& Occupation Education Income Age
Size
12-5

6. Ads appealing to baby-boomer market
12-6

7. Ads appealing
to
the baby-
boomer
market
Note: luxury is
highlighted
12-7

8. Australasian (or any other)society:
Demographics and lifestyles (cont.)
• What is the nature of lifestyle and how is it
measured?
• What is the meaning of psychographics, and
how is it used to understand consumer lifestyle
and consumption behaviour?
• How are lifestyle and psychographics used in
market segmentation to develop marketing
strategies?
12-8

9. Changing societal factors affecting
marketing strategy
12-9

10. Demographics (overview)
• Population size
• Age structure
• Population distribution
• Income
• Occupation
• Education
12-10

11. Projected Australian age structure for 2051
Source: ABS file 3222.0
Check the Department of Statistics Singapore and
find out our OWN demographic profile) 12-11

12. http://www.singstat.gov.sg/stats/themes/people/demo.html
12-12

13. Demographics
• Population distribution
– Changes attributed to internal
migration e.g. baby-boomers
moving to Queensland and coastal
regions to retire
• Actual vs self-perceived age
12-13

14. Actual vs self-perceived age
12-14

15. Demographics (cont.)
• Income / actual incomes
• Disposable incomes / buying power
• Occupations
• Regional influences
– e.g. industry shutdowns etc.
– e.g. city vs country
– e.g. internal migration
12-15

16. Demographics and Social Stratification
Demographics
Income
A household’s income level combined with its
accumulated wealth determines its purchasing power.
Income enables purchases but does not generally
cause or explain them. Occupation and education
directly influence preferences for products, media, and
activities; income provides the means to acquire them.
12-16

17. Demographics and Social Stratification
Demographics
Income (cont.)
Therefore, income is generally more effective as a
segmentation variable when used in conjunction with other
demographic variables.
How wealthy one feels may be as important as actual
income for some purchases.
Subjective discretionary income (SDI) is an estimate by
the consumer of how much money he/she has available to
spend on nonessentials. SDI adds considerable predictive
power to actual total family income (TFI).
12-17

18. Demographics and Social Stratification
Demographics
Occupation
Occupation is probably the most widely applied
single cue we use to initially evaluate and define
individuals we meet.
One’s occupation provides status and income.
The type of work one does and the types of
individuals one works with over time also directly
influence one's values, lifestyle, and all aspects of the
consumption process.
12-18

19. Demographics and Social Stratification
Occupational Influences on Consumption
12-19

20. Demographics (cont.)
Education
• Increase during the 90s:
about 30% more now with university
degrees
• Huge increase in training: less
‘unskilled’
12-20

21. Changing levels of education
12-21

22. Demographics and Social Stratification
Demographics
Education
Approximately 85% of Americans have a high school
degree, and 27% have completed college.
Education is increasingly critical for a “family wage”
job.
Traditional high-paying manufacturing jobs that
required relatively little education are rapidly
disappearing.
12-22

23. Demographics and Social Stratification
Demographics
Education (cont.)
High-paying jobs in the manufacturing and service
sectors today require technical skills, abstract
reasoning, and the ability to read and learn new skills
rapidly.
Since individuals tend to have spouses with similar
education levels, these differences are magnified with
spousal income is considered.
12-23

24. Demographics and Social Stratification
Education Level Influences on Consumption
12-24

25. Ethnicity and country of origin of
Australasians
• Ethnic markets
• Country of origin markets
12-25

26. Specific population segments
Population segments share distinguishing patterns
of behaviour.
12-26

27. Age subcultures
• Mature market
• Youth market
– Generation X
– Generation Y
12-27

28. Demographics and Social Stratification
Demographics
Age
Proper age positioning is critical for many products.
Our age shapes the media we e, where we shop, how
we use products, and how we think and feel about
marketing activities.
Age carries with it culturally defined behavioral and
attitudinal norms, which affect our self-concepts and
lifestyles.
12-28

29. Demographics and Social Stratification
Age Influences on Consumption
18-24 25-34 35-44 45-54 55-64 65+
12-29

30. Understanding Generations
A Generation or age cohort is a
group of persons who have
experienced a common social,
political, historical, and economic
environment.
Cohort analysis is the process
of describing and explaining the
attitudes, values and behaviors
of an age group as well as
predicting its future attitudes,
values, and behaviors.
12-30

31. Understanding Generations
Pre-
Pre-Depression
Depression Mature Market
Baby Boom
Generation X
Generation Y
Millennials
12-31

32. Understanding Generations
How to Target the Mature Market
One approach to segmenting older consumers is
gerontographics
gerontographics, based on the theory that people
change their outlook on life when they experience major
life events such as becoming a grandparent, retiring,
losing a spouse, or developing chronic health conditions.
Those experiencing similar events are likely to have
similar outlooks on life, and given similar economic
resources, similar lifestyles.
12-32

33. Understanding Generations
How to Target the Mature Market
Gerontographics has identified the following four
segments of the mature market:
- Healthy Indulgers (7 million, rapidly growing)
- Ailing Outgoers (18 million)
- Health Hermits (20 million)
- Frail Recluses (18 million)
12-33

34. Understanding Generations
Baby Boom Generation: A Closer Look
Compared to prior generations, Boomers are:
Higher income, higher education
More tech savvy
Defining retirement differently
Boomers also are:
Strong market for “anti-aging” products, travel, and
financial services
Often alienated by overly “youth oriented” appeals in ads
12-34

35. Understanding Generations
Generation Xers: A Closer Look
Beyond the stereotype:
Stereotype – Xers as disenfranchised youth
Reality 1– Xers are more highly educated than previous
generations
Reality 2– Xer women are more highly educated than
Xer men
Reality 3– Xers are getting married, having families and
facing the time pressures associated with these events
Reality 4– Reaching Xers requires special attention to
media, particularly online
12-35

36. Understanding Generations
Generation Y, or echo boom generation, account for 71 million
Americans. They are the children of the original baby boomers
and were born between 1977 and 1994.
Gen Y is characterized by a strong sense of
independence and autonomy.
They are assertive, self-reliant, emotionally
and intellectually expressive, innovative, and
curious.
It is a multiracial generation, with African
American and Hispanic teenagers often
being the style leaders.
12-36

37. Understanding Generations
Generation Yers: A Closer Look
Interesting Facts About Gen Y:
Really Two Sub-Markets: Twenty-somethings and Teens
Expected to have the highest education of previous
generations with incomes to follow
Very tech savvy with media options including Internet, cell
phones, and video games
A strong market for automobiles with brands like Toyota
creating edgy and affordable models such as the Scion to
target them
12-37

38. Gender roles
• Ascribed roles —an attribute over
which the individual has little or no
control
• Achievement roles —based on
performance criteria over which the
individual has some degree of control
• Traditional versus modern orientation
12-38

39. Marketing strategy and
gender roles
1. Market segmentation
2. Product strategy
3. Marketing communications
4. Retail strategy
12-39

40. The Nature of Lifestyle
Lifestyle is basically how a person lives. It is how one
enacts his or her self-concept.
Influences all aspects of
one’s consumption behavior.
Is determined by the
person’s past experiences,
innate characteristics, and
current situation.
12-40

41. The nature of lifestyle
• Lifestyle is the expression of the individual’s
situation, life experiences, values, attitudes
and expectations
• It is defined simply as how the individual
lives
• ‘Lifestyle’ has been used interchangeably
with the term ‘psychographics’
12-41

42. The Nature of Lifestyle
Measurement of Lifestyle
Attempts to develop quantitative measures of lifestyle were initially
referred to as psychographics Measures include
psychographics. include:
Attitudes Evaluative statements about other people, places, ideas,
products, etc.
Values Widely held beliefs about what is acceptable or desirable
Activities and Nonoccupational behaviors to which consumers devote time
Interests and effort, such as hobbies, sports, public service, and
church
Demographics Age, education, income, occupation, family structure, ethnic
background
Media patterns The specific media the consumer utilize
Usage rates Measurements of consumption within a specified product
category; often consumers are categorized as heavy,
medium, light, or nonusers
12-42

43. The Nature of Lifestyle
General versus Specific Lifestyle Schemes
Lifestyle measurements can be constructed with varying
degrees of specificity.
1. Marketers can 2. Firms can conduct
study the general very specific lifestyle
lifestyle patterns of studies focused on
a population. aspects of individual
or household lifestyles
most relevant to their
product or service.
12-43

44. Determinants of lifestyle
12-44

45. Continuum for lifestyle measurements
Lifestyle measurements can be constructed
with varying degrees of specificity.
12-45

46. Several components of AIO questionnaires
12-46

47. The Nature of Lifestyle
Three specific lifestyle examples:
examples:
1. Luxury Sports Cars
2. Shopping
3. Technology
12-47

48. The Nature of Lifestyle
Lifestyle Schemes: Luxury Sports Cars
Porsche examined the lifestyles
of its buyers.
Key demographics (e.g., high
education and income) were
similar across buyers.
However, their lifestyles and
motivations were quite different.
12-48

49. The Nature of Lifestyle
Porsche Consumer Segments
Top Guns (27%) Ambitious and driven, this group values power and
control and expects to be noticed.
Elitists (24%) These old-family-money “blue-bloods” don’t see a
car as an extension of their personality. Cars are
cars no matter what the price tag.
Proud Patrons 23%) This group purchases a car to satisfy themselves,
not to impress others. A car is a reward for their
hard work.
Bon Vivants (17%) These thrill seekers and “jet-setters” see cars as
enhancing their already existing lives.
Fantasists (9%) This group uses their car as an escape, not as a
means to impress others. In fact, they feel a bit of
guilt for owning a Porsche.
12-49

50. The Nature of Lifestyle
Lifestyle Schemes
Shopping
Hedonic shopping motives underlying consumer shopping
patterns include*
1. Adventure - fun
2. Gratification reward/stress reduction
3. Role - shop for others
4. Value - good deal
5. Social - bonding
6. Idea - trends
Five shopping lifestyle segments emerged based on these
motives.
*Discussed in Chapter 10 12-50

51. The Nature of Lifestyle
Five Shopping Lifestyle Segments
Minimalists Primarily motivated by value; least motivated by fun and adventure;
low in appreciation for retail aesthetics, low in innovativeness, do
(12%)
not tend to be browsers-- middle-aged, with 57% being men
Gatherers Primarily motivated by keeping up with trends and joy of shopping
for others; least motivated by value; low in appreciation of retail
(15%)
aesthetics, low in innovativeness, moderate browsers-- mix of
younger and older shoppers, with 70% being male
Providers Primarily motivated by enjoyment of shopping for others and value;
not motivated by fun and adventure; moderate in appreciation of
(23%)
retail aesthetics, low in innovativeness, moderate browsers-- oldest
group, with 83% being female
Enthusiasts Highly motivated by all hedonic aspects including fun and
adventure; highest in appreciation of retail aesthetics, most
(27%)
innovative, spend the most time browsing-- youngest group, with
90% being female
Traditionalists Mmoderately motivated by all hedonic aspects, gratification high on
the list; moderate in appreciation of retail aesthetics, highly
(23%)
innovative, moderate browsers-- mix of younger and older shoppers,
with 58% being female
12-51

52. The Nature of Lifestyle
Lifestyle Schemes
Technology
How technology is utilized by consumers is of critical importance
to marketers.
Numerous technology and Internet lifestyle profiles exist,
including
• Pew Internet User Types
• Ebates.com Dot-shoppers
• TDS Shopper Clusters: Onliners Group
Forrester Research created Technographics, a segmentation
scheme that examines lifestyle segments relating to technology,
online access, online shopping, instant messaging, etc.
12-52

53. The Nature of Lifestyle
Technographics
Fast
Sidelined Forwards Techno-
Techno-
Citizens 10% Strivers
29% 5%
Media
Handshakers
Junkies
7%
6%
Technology
Segments
Gadget New Age
Grabbers Nurturers
7% 8%
Mouse Digital
Potatoes Hopefuls
9% Traditionalists 6%
10%
12-53

54. The VALSTM System
Underlying Differences Across VALSTM Motivational Types
12-54

55. VALS Lifestyle System
12-55

56. The 8 psychographic segments of VALS
1. Innovators
2. Thinkers and Believers: ideals motivated
3. Achievers and Strivers: achievement
motivated
4. Experiencers and Makers: self-expression
motivated
5. Survivors
12-56

57. Shortcomings of VALS
• Measures of individuals - some decisions are by
households
• Few individuals have ‘pure’ primary motivations, a
secondary motivation may be very influential
• VALS may not be useful for products that are
evenly spread over all VALS types as it is for ego-
involved purchases, e.g. laundry detergent
12-57

58. The VALSTM System
Ideals Motivation
Consumers who are
guided in their choices by
their beliefs and principles
rather than by feelings or
desire for social approval.
They purchase
functionality and reliability
12-58

59. The VALSTM System
Achievement Motivation
Consumers who strive for
a clear social position and
are strongly influenced by
the actions, approval, and
opinions of others.
They purchase status
symbols.
12-59

60. The VALSTM System
Self-
Self-Expression
Motivation
Action-oriented consumers
who strive to express their
individuality through their
choices.
They purchase experiences.
12-60

61. The VALSTM System
VALSTM Segments
Innovators
Innovators are successful, sophisticated, active, take-charge people
with high self-esteems and abundant resources.
They are motivated by a blend of ideals, achievement, and self-
expression. Image is important as an expression of their taste,
independence, and character.
They often see brands and products as
extensions of their personalities.
They have a wide range of interests, are
concerned with social issues, and are the most
receptive to new products, ideas, and
technologies.
12-61

62. The VALSTM System
VALSTM Segments
Thinkers: Ideals Motivated
Thinkers are mature, satisfied, comfortable, reflective people who
value order, knowledge, and responsibility.
Most are well-educated and are in or near retirement from
professional occupations.
They plan their purchases and are cautious concerning big-ticket
items, looking for functionality, value, and durability in products.
12-62

63. The VALSTM System
VALSTM Segments
Believers: Ideals Motivated
Believers are conservative, conventional people with concrete
beliefs based on traditional, established codes: family, church,
community, and the nation.
They are conservative, predictable and highly loyal consumers.
They favor American products and established brands, and are
averse to change.
12-63

64. The VALSTM System
VALSTM Segments
Achievers: Achievement Motivated
Achievers are successful career- and work-oriented people who like
to, and generally do, feel in control of their lives.
They value consensus, predictability, and stability over risk.
Image is important to them, favoring established, prestige products
and services that demonstrate success to their peers.
12-64

65. The VALSTM System
VALSTM Segments
Strivers: Achievement Motivated
Strivers are style conscious and trendy.
They have limited education and tend to have narrow interest.
Money defines success for them, favoring stylish products that
emulate the purchases of people with greater material wealth.
12-65

66. The VALSTM System
VALSTM Segments
Experiencers: Self-Expression Motivated
Self-
Experiencers are young, vital, enthusiastic, impulsive, and
rebellious.
They seek variety and excitement and savoring the new, the offbeat,
and the risky.
They are avid consumers and spend much of their income on
clothing, fast food, music, movies and videos and technology.
12-66

67. The VALSTM System
VALSTM Segments
Makers: Self-Expression Motivated
Self-
Makers are practical people who have constructive skills and
value self-sufficiency.
They live within a traditional context of family, practical work, and
physical recreation.
They buy tools, pickup trucks, washing machines, fishing
equipment, etc.
12-67

68. The VALSTM System
VALSTM Segments
Survivors
Survivors’ lives are constricted. They live simply on limited
incomes but are relatively satisfied.
Frequently elderly and concerned about
their health, they are not active in the
market place and show no evidence of a
strong primary motivation.
They represent a modest market, are
cautious consumers who look for low
prices, buying familiar, trusted products.
12-68

69. VALS Survey
Try it for yourself!
http://www.sric-bi.com/VALS/
presurvey.shtml
12-69

70. Roy Morgan Research’s Values
Segment System: the Segments
• Young optimism (8%)
• Socially aware (14%)
• Something better (7%)
• Visible achievement (18%)
• Look at me (11%)
• Conventional family life (10%)
• Traditional family life (20%)
• Real conservatism (5%)
• A fairer deal (4%)
• Basic needs (3%)

71. Geo-demographic lifestyle analysis
• Analysis focusing on the demographics of
geographical areas
• based on the belief that lifestyle and therefore
consumption are largely driven by demographic
factors
• Based on research that shows that neighbours
have shared patterns of consumer behaviour
towards goods, services, media and promotions.
• An example is Mosaic Australia

72. International Lifestyles
Marketing is increasingly a global activity.
Marketers can develop cross-cultural strategies around
those discernible lifestyle segments that cut across
cultures.
Although language and other differences would exist,
individuals pursuing similar lifestyles in different
cultures should be responsive to similar product
features and communication themes.
Large international advertising agencies and marketing
research firms, such as Roper Starch Worldwide, are
leading the way.
12-72

73. International Lifestyles
Global Lifestyle Segments Identified by Roper Starch Worldwide
12-73