(Consumer Behavior) Chapter 7: Demographics, Psychographics, and Personality

(Consumer Behavior) Chapter 7: Demographics, Psychographics, and Personality

Demographic

Demographic is the size, structure and distribution of population. Marketer use demographic analysis as market segmentation description and analysis the trend. Also, it can used to predict consumer demand for specific product.

For marketer the not only need to know consumer mind and they need to know consumer’s consumer mind too. The reason is because the industry demand is come from the consumer demand. For example, a company who are the chicken seller, they provide the chicken to a chicken rice stall owner. Then they need not only concern about the demand for the chicken rice stall owner, it need also concern the demand from the end user which is the consumer who purchase the chicken rice. The reason is because if the demand for the chicken rice changes, it will directly affect the sale for the chicken rice stall, which indirectly affect the demand for company who sell the chicken.

Economic resource

Income is defines as money come from wage, salaries, welfare and interest. Income will determined what consumer will think will happen in future and their confident. Consumer confident then will determine how much debt consumer willing to carry.

Wealth

It is the consumer net worth. Wealth influence consumer to spend but not necessary the ability to spend but not really the ability to spend, the reason is because some of the net worth is not liquid, therefore consumer unable to spend it easily. For example, house, car.

Consumer confident will directly affect the consumer consumption and whether they want to increase their debt or reduce their debt.

For marketer, it is important for them to measure the consumer confident , they then can used it to design their marketing strategic such as how much inventory they need and the promotion budget.

Personality

It is the unique psychological makeup, which will influence how consumer respond to the environment.

Psychoanalytic theory

It defines as the emotional and behavioural characteristics of an individual, group, or activity.

Human consist of Id, ego, superego. Personality is the conflict between satisfy the physical need and the need that can contribute to the society.

Id

It is the component of personality that present from birth. Id is all the source of physic energy and is driven by pleasure principle. Id will make people want to satisfy their need immediately, if they can’t fulfill their need immediately , they will become tension. For example, when people hungry they need to find food to fulfill their hunger and when people feel thirst, they may find drink to quench their thirst.

The Id is very important for children , because due to they unable to talk, they are suing cry to express themselves that they are hungry until all their need is fulfill. But, it is not possible to satify all  desire or person need. Due to we are rule by law , we cannot do something that is socially unacceptable. For example, people are grabbing away the thing they want from a person hand to help them satisfy their need. This is the primary process, in order to resolve their tension, id forming their own mental image that is used to satisfy their need.

Ego

It is the component of personality that is dealing to the reality. Ego is creating to ensure the impulsive of id can be express in the manner that can match the world expectation. Ego wills analysis the benefit and cost of an action before doing it. For ego, it can satisfy the need for Id through delay satisfication.This mean the id can fulfill their need no immediately but in the appropriate time and place. In the secondary process, ego remove the tension crease by id in the primary process. It find the real object in the world to match well toward the mental image create by the primary process.

Super ego

It is the last component of personality. It hold all the internalize moral standard and it usually come from both parents and society (it show our sense of right and wrong). Superego will the provide a guideline for people to make judgment.

There 2 parts for super ego.

Firstly , ego ideal that include the rule for behavior. These behavior usually approval by both the parental and other authority figure. People obey those rule will make them feel better, pride and value.

Secondly, the conscience includes the information about the thing that are view bad by the parent or society. The bad behavior will lead to bad consequence and punishment .The superego let people act prefect behavior .It is occur in conscious, pre-conscious and unconscious.

There will be conflict between ego, superego and id .Therefore, Freud develop ego strength to determined the ability to function. A person with good ego strength able to manage their pressure effectively. While those with too much will be too unyielding and too less will be too destructive.

Sociopsychology theory

Recognition from relationship between both individual and society. Individual express their desire meet the society need and society helps individual to meet their person goal. Social variables are used to shaping consumer personality.

Person who buy the product that symbolize those unattainable or unacceptable goal are usually known as fulfill some subconscious “Forbidden desire”.

Trait factor theory

Market planning need to understand about consumer traits, which is made up of personality. They are different yet common. It is useful for marketing strategists in developing brand personality. Brands may be character as modern, fun, or old fashion.

Predict consumer behaviour

For marketer who uses research to find the relationship between personality and consumer behaviour. Marketer can used the personality to predict the brand and store consumer prefer, but the result will be poor because it is just one component of the consumer decision making process out of all other component.

Market segmentation

Market segmentation is the division of a market into distinct groups of buyers. Every buyer has his or her individual needs and behaviour. Marketer uses market segmentation as a means of identifying potential buyers because no company can possibly serve the entire customers. Since different segment have different need, marketers can use segmentation to know the need of individual segmentation and create separate product for each segment to fulfil their needs. Thus, this can increase firm profit margins and profitability.

VALS2

VALS2 suggest that consumer buy the good and service that can fulfil their characteristic preference and satisfy their live.

Primary motivated by ideal, achievement, and self expression

Consumer who are primary motivated by ideal is guide by knowledge and priniciple.Consumer primary motivated by achievement that look for product and good that can demonstrate their success. Consumer who are primary motivate by self expression desire by social and physical activity and risk.

Value

Value is representing the consumer belief their life and accept their behaviour. It represents 3 requirements: Biological needs, necessity that for social interaction and demand for group survival.

Value expresses the goals that motivate people and the appropriate way for people to attain the goals.

Personal value      

                                                                                         

Social value is meaning the normal behavior that for a society.Personal value is mean the normal behavior that for an individual. Personal value is the individual choice make from variety social values to which they exposed.

Lifestyle concepts

Lifestyle mean the pattern of the consumer live, spending time and money. It also reflect the A.I.O as well as demographic variable. Since lifestyles is change readily, marketer will then develop the marketing strategic current.

Psychographic

It is an operation technique that measure the lifestyles. It is provide the quantity measures and can be used as sample that can used for dentition of market segments. Also, qualitative measure such as in depth interview.

Demographic profile is who used the product. Then psychographic focus on the why they buy the product.

VALS2

Innovators

There are successful, complicated and high self esteem. They have rich resource, so they have all 3 primary motivations. They are change leader and they like new idea and technologies. They are active customer and their purchase reflect cultivated tasted upper class product. Image are important to them because they want to express their taste. From their hobby and asset that will cultivated they have finer thing in their life.

Thinkers

 They are primary motivation by ideal. They are mature, satisfied and comfortable with person who has responsibility and knowledge. They are well educated and are the one who search for information in the decision making. They are well informed with the national events. Thinker accept new idea. Even thought, their income allow them to have variety of choice but due to they are old fashion; they will buy the durable and functional product.

Believers

They are motivated by the ideal. They are conservative and conventional person who belief based on traditional code such as family, nation and religious. They are easily to predictable and they love only the brand they familiar and are loyalty customer.

Achievers

They are achieving by the achievement. They have goal-oriented and loyal to family and career. Their social life reflects they focus on family and career. They have many need and want, so they are active market. Image for them is important; they are buying the product that is demonstrating their success. They are busy in their life, so they need time saving product.

Striver

Striver is motivated by achievement. They are concern for the opinion and approval from others. Money is the one will help them reflect their successful, but because they are not enough so they unable to meet their own desire. They prefer job than career. Lack of skill will prevent them to move ahead. They love shopping because it is the activities that show their social activity and demonstrate they have the ability to spend. They will be impulsive consumer when their financial situation allowed.

Experiencer

They are young, impulsive and enthusiastic consumer. They will like are quick respond to the thing they like but also quickly to cool. They like new and offbeat product. They are active in both social and physical activity. They willing spend most of their income on fashion, entertainment. From what they purchase, it can show they are like cool stuff.

Maker

They are motivated by the self expression. They like to expose the world and experience by work on it. Such as build the home and raise the children by themselves. They have useful skill and live in traditional family background and have little interest to the news outside world. They prefer value than luxury.

Survival

Survival live usually focused their live. They have few resources, so they always think that the world is changing too quickly. They like familiar product and like security and safety. They prefer the meeting the needs rather than fulfill the desire, so they do not have strong primary motivation. They love familiar brand and especially when they have discount.