1. AIO (Activities, Interests and Opinions), Life Styles, Psychographics
Concepts and Measurement

3. Four types of possessions help to make up our personal sense of self:
Body and body parts
Objects
Places and time periods
Persons and pets
Materialism is the importance a consumer attaches to worldly possessions Materialism: You Are What You Own

4. Life-Style and Psychographic Analysis
Life-style refers to how people live, how they spend their money, and how they allocate their time
Life-style and personality are different, yet are closely related

5. The Distinction Between Personality and Life-Style:
Personality refers to the internally based dispositions of the person. In contrast, life-style refers to the external manifestations of how a person lives.
Psychographics is the quantitative investigation of consumers’ life-styles, personality, and demographic characteristics.

6. AIO Statements Identify Consumer Activities, Interests, and Opinions
Activity questions ask consumers to indicate what they do, what they buy, and how they spend their time.
Interest questions focus on what the consumers’ preferences and priorities are.
Opinion questions ask for consumers’ views and feelings on such things as world, local, moral, economic, and social affairs.

7. Survey: Internet Shopping Behavior
Research Plan
Internet Purchases (Yes, No, Amount)
Types of Items Purchased
Allocation of Purchases by Store Type
Reasons for Not Purchasing Online
Computer Usage (Amount and Type of Activity)
Interest in and Attitudes, Opinions about Internet Shopping
Computer Literacy
Internet Speed
Demographics

21. Who Shops? A Segmentation of Online Shoppers & Non-shoppers Chad Allred Scott Smith Bill Swinyard October 2004
Gratitude for financial support is extended to: IBM Corporation JCPenney Retail Research Fund

22. Resulting Shopper Segments
Study Purpose
Overall objective: To develop a model that defines Internet shopper segments
Shopper Strategy
What Internet shoppers seek in an on-line experience
How often, and what, they buy
Who they are
Sampled Population
Resulting Shopper Segments
Online Shoppers
Online Non-Shoppers
 Online Households
Research Questions
What are the characteristics of on-line households in the U.S.?
How do on-line shoppers differ from non-shoppers?
What are the fundamental motivators or satisfier s provided by Internet sites for these households ... and what are the dissatisfiers?
What are the major Internet-shopper segments?
What are the major Internet-non-shopper segments?

23. Definitions: Shoppers vs Non-Shoppers
Online Shoppers
Male or female household heads
Have access to the Internet from their home
Made a personal purchase over the Internet during November – December Y’2003
Online Non-Shoppers
Did not make a personal purchase over the Internet during November – December Y’2003

24. Data Collection Methods
Secondary Research & Web Site Visits
Revealed little information of value
Interviews & Focus Groups
Rhoads & Swenson’s 3 focus groups (Salt Lake City, New York City & San Francisco)
Questionnaire on Internet satisfiers & dissatisfiers
Administered to 222 students at BYU
Produced an attribute listing of 107 satisfiers and 54 dissatisfiers
400,000 messages to all 50 states
Offered drawing for five $500 prizes
13,175 s opened, 2100 q’aires completed, 15.9%
23.9% Male respondents
76.1% Female respondents

25. Analysis Procedure Formulate the Problem
Computer & Internet psychographics
Formulate the Problem
Computer Literacy Index
Factor Analyze
Cluster Analyze Factor Scores
Generate Universe of Attributes, Trim to Manageable Subset
Internet shopping spending & experience
Collect Scaled Attribute Data
Hrs of computer & Internet usage, by activity
Demographics
Crosstabulate Clusters w/Other Var’s

26. What They Do Online: Six Basic Activities

27. The Online Turn-ons & Turnoffs: Five Factors

28. The Average Respondent
Sex (M/F)
24%
76%
Age 40
---
Status
Married
59%
Children at Home
< 20 in HH
47%
Living
House
66%
Inet Connect
Dialup
Ed Level
Yrs of School
14.3
HH Income
$44.6K
---
Per. Income
$30.0K
Computer Usage/Wk
Online Hrs
Offline Hrs
23.8
11.0
What We Like About the Internet
Browsing on the Internet.
Search for low prices
Previewing products
Online shopping is or can be fun
Shopping from home
What We Dislike About the Internet
Shipping Charges
The possibility of my CC # being stolen
Difficult to judge the quality of merchandise
The hassle of returning merchandise
Figuring out how to shop online

29. What We Do

30. What We Buy

31. Shoppers vs Non The basic differences between them focus on their beliefs about the Internet and what it is used for
Shoppers
Non-Shoppers
Radar chart based on average factor scores where mean = 0 and sd = 1 (Anderson-Rubin coding)

32. Segment Overview Internet shoppers: 5 segments Internet non-shoppers:
(63%)
All Online
Households
Internet
Non-Shoppers
(37%)

33. Segment Overview Internet shoppers: 5 segments Internet non-shoppers:
Avertech Shoppers
Internet shoppers:
5 segments
Internet non-shoppers:
3 segments
Chatterettes
Internet
Shoppers
(63%)
Shopping Lovers
eShoppers
All Online
Households
Unconcerneds
Casual Browsers
Internet
Non-Shoppers
(37%)
CC Insecures
eWindow Shoppers

34. Segment Overview Internet Shoppers (63%) Internet Non-Shoppers (37%)
In general, online households have a “love-fear” relationship with the Internet
Avertech Shoppers
The psychographics of online shoppers differ significantly from non-shoppers
Shoppers enjoy the overall features of the Internet and the novelty of shopping
Non-shoppers are anxious, and even afraid of buying online
These broad groups have been segmented by what attitude users have toward the Internet, which in turn define how they use the Internet
Understanding these characteristics is key to understanding why people do, or do not, shop on the Internet
To move non-shoppers to shoppers will require retailers to overcome their fear of credit card misuse, and to make the shopping experience easy & fun
The largest deterrent to Internet shopping is fear of financial theft
The next deterrent is lack of literacy in online procedures – “I don’t know how”
Chatterettes
Internet
Shoppers
(63%)
Shopping Lovers
eShoppers
All Online
Households
Unconcerneds
Casual Browsers
Internet
Non-Shoppers
(37%)
CC Insecures
eWindow Shoppers

35. Shoppers & Non-shoppers
63% of Online Households
Non-Shoppers
37% of Online Households
Avertech Shoppers
Chatterettes
Shopping Lovers
eShoppers
Uncon-necteds
Casual Browsers
CC Insecures
eWindow Shoppers
Market Share
8.3%
13.8%
11.3%
13.5%
16.2%
14.1%
11.8%
10.9%
HH Gift Spending Share
15.1%
14.4%
15.8%
9.0%
9.4%
Personal Online Purch
$424
$360
$350
$448
$317 --
Personal Online Share
22.3%
19.0%
18.4%
23.6%
16.7%
* Personal Online Purchasing Share / Share of Online Shoppers

36. Summary Demographics
Shoppers
Non-Shoppers

37. Avertech Shoppers Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

38. Chatterettes Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

39. Shopping Lovers Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

40. eShoppers Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

41. Unconcerneds Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

42. Casual Browsers Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

43. CC Insecures Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

44. eWindow Shoppers Demographics Computer Use Share of Online Spending
Share of Online Shoppers
Demographics
Computer Use

45. Summary of Segments Avertech
Avertech Shoppers
Chatterettes
Shopping Lovers
eShoppers
Uncon-necteds
Casual Browsers
CC Insecures
eWindow Shoppers
Market Share
8.3%
13.8%
11.3%
13.5%
16.2%
14.1%
11.8%
10.9%
HH Gift Spending Share
15.1%
14.4%
15.8%
9.0%
9.4%
Personal Online Purch
$424
$360
$350
$448
$317 --
Personal Online Share
22.3%
19.0%
18.4%
23.6%
16.7%
Avertech
A small but top online buying group, still fearful of technology & low in computer literacy. Lower HH income & education than other groups, With more online experience will likely become online shopping champions.
Chatterettes
A less active online buying group – above avg in comp literacy – that loves , online news, forums, & window shopping. Largest % of women & marrieds.
Lovers
A high literacy & youthful group that loves shopping everywhere – offline & online. Love checking out products online, & have high online potential but need training to ease their way further into on-line buying.
eShoppers
Love buying online, having the highest share of online spending. Consider online shopping superior in nearly every way. This is likely the group that are opinion leaders for all things on-line. Retailers should nurture and cultivate.
Unconnecteds
Tho avg in computer literacy, this wealthiest of all segments is less involved with computers than other groups, They do buy online, but the online experience is not a high priority for them.
Browsers
On the cusp of online buying. Capable Internet & computer users, like browsing. They assist those in their HH to buy online but do not do so them-selves. Have reasonable computer literacy & spend more time with their computers than other non-shoppers..
Insecures
Afraid, lack trust, this lowest computer literacy & income segment wants to see things before they buy, like B&M shopping. Values are inconsistent with online shoppers. Not an attractive market for online retailers.
eWindow
Untrained about online buying, like online chatting, news, & sharing. Values are inconsistent with online shopping. While some of these values could be overcome, the spending power of the segment suggests that only a long-term payback would be possible.
* Personal Online Purchasing Share / Share of Online Shoppers