The document discusses lifestyle marketing, emphasizing the relationship between products and targeted lifestyle groups through demographic and psychographic segmentation. It outlines various approaches to studying consumer behavior, including AIO inventories and VALS classifications, which categorize consumers based on inner needs and behaviors. Additionally, it examines organizational buying behavior, highlighting the complexities involved in decision-making processes within organizations.

1. CONSUMER BEHAVIOUR
AND LIFESTYLE MARKETING

2. • Lifestyle marketing is a process of establishing relationships between
products offered in the market and targeted lifestyle groups.
• It involves segmenting the market on the basis of lifestyle
dimensions, positioning the product in a way that appeals to the
activities, interests and opinions of the targeted market and
undertaking specific promotional campaigns which exploit lifestyle
appeals to enhance the market attractiveness of the offered product

3. DEMOGRAPHICS, PSYCHOGRAPHICS AND
LIFESTYLE
• Demographic variables help marketers “ locate” their target market and
psychographic variables provide the marketer with more insight about the
segment.
• Psychographics is, in common parlance, lifestyle analysis or AIO research.
In its most widely practiced form, a psychographic study consists of a long
list of statements designed to capture relevant aspects of a consumer, like
personality, hinting motives, interests, attitudes, beliefs and values.
• Lifestyle, analysis leads to more comprehensive and penetrating profiles
of how consumers think and act than may be available from other
approaches.

4. CHARACTERISTICS OF LIFESTYLE
1. Lifestyle is a group phenomenon A person’s lifestyle bears the
influence of his/her participation in social groups and of his/her
relationships with others.
2. Lifestyle pervades various aspects of life An individual’s lifestyle may
result in certain consistency of behaviour across different aspects of
his life and consumption. Knowinga person’s conduct in one aspect
of life may enable us to predict how he/she may behave in other
areas

5. 3. Lifestyle implies a central life interest For every individual there are
many central life interests like family, work, leisure, sexual exploits,
religion, politics etc. that may shape his interaction with the
environment.
4. Lifestyles vary according to sociologically relevant variables The rate of
social change in a society has a great deal to do with variations in
lifestyles. So do age, sex, religion, ethnicity and social class. The increase
in the number of double income families , nuclear families, rising income
and aspirations, large number of women in the workforce have resulted
in very different lifestyles of Indian families compared to the last decade.

6. INFLUENCES ON LIFESTYLE

7. APPROACHES TO STUDY LIFESTYLE
• lifestyle refers to the way in which people live and spend money,
consumers psychographic profiles are derived by measuring different
aspects of consumer behaviour such as
1. Products and services consumed
2. Activities, interests and opinions
3. Value systems
4. Personality traits and self-concept
5. Attitude towards various product classes

8. • Many approaches are available to the study of psychographic
variables.
• One of the ways is to study the lifestyle variables by an AIO inventory
for use in segmenting, targeting and positioning.
• Another lifestyle approach is by using VALS typology.
• Two more recent approaches are the PRIZM approach and the Roper
Starch global lifestyle studies

9. AIO Inventories
• This approach involves developing detailed lifestyle profiles on the
basis of analysis of activities, interests, opinions and demographics of
very large samples of population AIO studies envisage a wide variety
of variables and measures

11. VALS SYSTEM OF CLASSIFICATION
• Another widely used lifestyle classification system is the Values and
Lifestyle classification developed by Arnold Mitchell.
• The VALS system of classification classifies adults (18 +) in the US into
distinctive lifestyle groups.
• Each group is based on inner psychological needs (values) and
behaviour response patterns (lifestyles) which their values predict

12. • VALS provides a dynamic framework of values and lifestyles; which
helps to explain why people act as they do as social groups and
asconsumers.
• VALS, unlike some other approaches, weave together: 1.
Demographics, 2. Attitudes, 3. Activities, 4. Consumption patterns, 5.
Brand preferences, 6. Media graphics

13. • The VALS 1 study led to the identification of four major groups i.e.,
• the need driven (the poor and uneducated),
• the outer directed (the middle- or upper-income class consumer
whose lifestyle is directed by external criteria) and
• the inner directed (people who are motivated more by inner needs
than by the expectations of others).
• The fourth segment, called integrated represents individuals who
have been able to combine the best of both outer directed and inner-
directed values

14. VALS-2 Classification
• VALS 2 typology classifies the American population into 3-major
consumer groups
• the principle oriented,
• the status oriented, and
• the action oriented.

15. • These are then further sub-divided in to eight distinctive lifestyle
segments.
• The principles oriented represent consumers whose choices are
governed by their beliefs rather than their need for other peoples’
approval.
• The choices of status-oriented consumers, on the other hand, are
directed by the action, approval and opinion of other people.

16. • The action-oriented consumers are those who are motivated by a
need for social or physical activity, variety and risk bearing.
• The principle-oriented people have been divided into 2 classes, the
fulfilleds and the believers
• Believers are conservative, conventional people with concrete beliefs
and strong attachments to traditional institutions: family, church,
community, and the nation
• Fulfilleds are mature, satisfied, comfortable, reflective people who
value order, knowledge, and responsibility. Most are well educated,
and in (or recently retired from) professional occupations

17. • The status-oriented people have been further subdivided into 4
classes, the actualizers, the achievers, the strivers and the strugglers.
• Actualizers are successful, sophisticated, active, “take-charge” people
with high self-esteem and abundant resources
• Achievers are successful career and work-oriented people who like to-
and generally do-noel in control of their lives. They value structure.
predictability, and stability of over risk, intimacy, and self-discovery.
They are deeply committed to their work and their families. Work
provides them with a sense of duty, material rewards, and prestige.

18. • Strivers seek motivation, self-definition, and approval from the world
around them. They are striving to find a secure place in life. Unsure of
themselves and low on economic, social, and psychological resources.
Strivers are deeply concerned about the opinions and approval of
others
• Strugglers’ lives are constricted. Chronically poor, ill-educated, low-
skilled, without strong social bonds, aging, and concerned about their
health they are often despairing and passive.

19. • The action-oriented segment comprises of two sub segments of
Experiencers and Makers
• Experiences are young, vital, enthusiastic, impulsive, and rebellious.
They seek variety and excitement, savouring the new, the off beat,
and the risky.
• Makers are practical people who have constructive skills and value
self-sufficiency. They live in a traditional context of family, practical
work, and physical recreation, and have little interest in what lies
outside that context.

20. APPLICATIONS OF LIFESTYLE MARKETING
• Positioning of New Products -Positioning comprises finding the most
profitable niche for a new product in terms of target market
• Repositioning an Old/Existing- Product Sometimes existing products
may sell well below their forecasted potential or the company may
discover a new, more profitable niche, nearer to the core market
where it may now want to position the product
• Developing New Product Concepts Study of existing market segments
and analysis of their needs have typically been used to conceptualise
on new product opportunities

21. • Creating Promotional Strategies Lifestyle information is helpful in
developing promotional strategies in a number of ways. It gives the
decision maker a much more complete profile of the type of
consumer who will be at the receiving end of the communication

22. ORGANISATIONAL BUYING
BEHAVIOUR

23. • Webster and Wind, who have done some pioneering work in this
area, define organisational buying as a complex process of decision
making and communication, which takes place over time, involving
several organisational members and relationships with other firms
and institutions.

24. ORGANISATIONAL BUYING BEHAVIOUR:
CHARACTERISTICS
• Organisational buying is a multi-person buying activity
• It is a formal activity which follows the procedures laid down in an
organisation
• Longer time lag between efforts and results
• Rational but also emotional activity
• The uniqueness of organisations

25. WHO ARE THE ORGANISATIONAL
CUSTOMERS?
• anyone besides the ‘household’ customer, i.e., those customers who
are buying for self, can be valid cases of organizational customers.

26. WHAT INFLUENCES ORGANISATIONAL
BUYING?

27. ORGANISATIONAL BUYING BEHAVIOUR:
Behaviour SOME MODELS

28. The Buy Grid Model

29. The Buy Grid Model
• Robinson, Faris and Wind, developed a matrix with rows for various
buying decision steps (called as Buy Phases) and the columns as the
type of the buying situation (called as Buy Classes)
• the buying exercise may be a very complex and time consuming for
the ‘new task’.
• This is because a buyer in this situation will have a large buying
centre, and will require sufficient amount of effort and time for each
phase before moving to the second phase.

30. • On the other hand, the task would be simple and routinised for
straight re-buy situations. A marketer, depending upon thebuy class
for his product can formulate the marketing strategies

31. The payoffs of the ‘buy grid’ models are
• Its ability to convey the degree of complexity or simplicity for an
organizational customer for a given product or service.
• Its ability to help the marketers to anticipate the marketing effort
needed for the different buying stages in the decision making.
• A framework to identify the composition of the buying centers and
the dominant influences for each stage.

32. • In spite of the above payoffs, the buy grid model is completely devoid
of any predictive ability.
• It addresses itself only to the ‘non-human’ factors and thus fails to
bring out the dynamics and the influences of human related or
emotional factors.
• But in spite of the limitations, the Buy Grid Model is a very useful
conceptual framework to comprehend the complexities of
organizational buying behavior.