This video explains how a consumer's activities, interests, and opinions, as well as deep-seated core values influence many product decisions so marketers need to measure and track these carefully.
- A lifestyle describes how a person chooses to spend his time and money. These choices are crucial for marketers to understand. Especially since just knowing your customers demographics like gender, income and age, don't tell you the full story. Two 40 year old women who both make $100,000 a year don't necessarily overlap at all when we look at how they spend their time and money.
We get a clearer picture of how people use products to define lifestyles when we see how they make choices in a variety of product categories. And we do that by looking at their patterns of behavior. So an important part of lifestyle marketing is to identify the set of products and services that consumers associate with a specific lifestyle. It's not any one choice that defines your customers, but rather the set of products, activities and beliefs they exhibit that allow you to paint a complete picture of just who these people are.
The meshing of objects from many different categories to express a single lifestyle ideal is at the heart of many consumption decisions such as coordinating an outfit for a big date, or decorating a room. Many people today evaluate products, not just in terms of function, but also in terms of how well their design coordinates with other objects and furnishings. Marketers who understand these cross category relationships may pursue co-branding strategies where they team up with other companies to promote two or more items.
As a marketer, you want to understand these cross category relationships so you can take advantage of co-branding strategies to team up with other products that mesh with your customer's lifestyles. Marketers often find it useful to develop products that appeal to different lifestyle subcultures. When they combine personality variables with knowledge of lifestyle preferences, they have a powerful lens they can focus on consumer segments.
It's common to create a fictional profile of a core customer who inspires product design and communications decisions. For example, the founder of the popular clothing company, Lulu Lemon relied on a profile that he made up. A 32 year old professional single woman named Ocean who makes $100,000 a year. He described Ocean as engaged, has her own condo, is traveling, fashionable, has an hour and a half to work out a day.
Psychographics involves the use of psychological, sociological and anthropological factors to segment a market. Demographics allow us to describe who buys but psychographics tells us why they do. Most contemporary psychographic research attempts to group consumers according to some combination of three categories of variables. Activities, interests and opinions, which we call AIOs for short.
Using data from large samples, you can create profiles of customers who resemble each other in terms of their activities and patterns of product usage. These profiles are incredibly helpful when you want to figure out how to reach new customers. For example, this may be as easy as targeting Facebook users who have designated interests that are the same as those your current customers tend to select.
Lifestyles are important because demographics tell us who buys but psychographics tells us why.
First, learn the importance of consumer behavior in helping us understand when, why, and how purchasing decisions are made. Michael shares how factors such as color, shape, and sound influence our perception of brands and products. He discusses gender identity and products geared towards different genders, as well as how consumer lifestyles, values, and attitudes affect product preferences. Michael also goes into external influences on consumer behavior, covering how groups make decisions and how ideas spread. Finally, Michael explores the role emotion plays in purchase decisions, and how you can structure messages to maximize persuasion.
- Sensory marketing as a strategic tool
- How gender identity can affect product choice
- Personality and brand image
- Decision-making in groups
- Retailing as theater
- How ideas spread through the market
- Persuasive communications
- Influencing consumer behavior