1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-1 Chapter 12 Australasian society: Demographics and lifestyles

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-2 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

3. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-3 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?

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-4 Ads appealing to baby-boomer market

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-5 Ads appealing to the baby- boomer market Note: luxury is highlighted

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-6 Australasian 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?

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-7 Changing societal factors affecting marketing strategy

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-8 Demographics (overview) Population size Age structure Population distribution Income Occupation Education

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-9 Population clock Current Australian population: Population - now! Current New Zealand population: http://www.stats.govt.nz/populationclock.htm

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-10 Projected Australian age structure for 2051 Source: ABS file 3222.0

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-11 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. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-12 Actual vs self-perceived age

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-13 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

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-14 Demographics (cont.) Education Increase during the 90s: about 30% more now with university degrees Huge increase in training: less ‘unskilled’

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-15 Changing levels of education

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-16 Ethnicity and country of origin of Australasians Ethnic markets Country of origin markets

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-17 Specific population segments Population segments share distinguishing patterns of behaviour.

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-18 Age subcultures Mature market Youth market – Generation X – Generation Y

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-19 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

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-20 Marketing strategy and gender roles Market segmentation Product strategy Marketing communications Retail strategy

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-21 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’

22. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-22 Determinants of lifestyle

23. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-23 Lifestyle and the consumption process

24. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-24 Continuum for lifestyle measurements Lifestyle measurements can be constructed with varying degrees of specificity.

25. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-25 Several components of AIO questionnaires

26. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-26 VALS Lifestyle System

27. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-27 The 8 psychographic segments of VALS Innovators Thinkers and Believers: ideals motivated Achievers and Strivers: achievement motivated Experiencers and Makers: self-expression motivated Survivors

28. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-28 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

29. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-29 VALS Survey Try it for yourself! http://www.sric-bi.com/VALS/ presurvey.shtml

30. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-30 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%)

31. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-31 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

32. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 12-32 Next Lecture Chapter 13: Household Structure and Consumption Behaviour