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Use of Psychographics in Consumer Market Segmentation: the South African Experience

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Use of Psychographics in Consumer Market Segmentation: the South African Experience s.AfrJ.Bus.Manage.1997 28(2) 33 Use of psychographics in consumer market segmentation: the South African experience Jacqui Spence, Russell Abratt* & Bobby Amos Malabie Graduate School of Business, University of the Witwatersrand, Johannesburg, P.O. Box 98, Wits, 2050 Republic of South Africa [email protected] Received February 1997 This study examines the understanding and use of psycho graphics as a segmentation technique by advertising practitioners and marketers in South Africa. A comprehensive literature review of psycho graphics is undertaken. In addition, a review of segmentation techniques used in South Africa is given. A sample of 53 advertising agencies and 54 marketing professionals were studied. The results show that there is a low level of understanding of psycho graphics as a segmentation technique by both groups. The findings also show that there is no significant difference between marketing professionals and advertising practitioners in their understanding and utilization of psychographics as a segmentation technique. Although psycho­ graphics is used somewhat incorrectly by some marketers and advertising agencies, it is however normally used with other segmentation techniques, thus minimizing any mistakes that could result in incorrect targeting of markets. • Author to whom correspondence should be addressed. Introduction of validity. It just keeps rolling along, like old man Assisting marketers to identify and segment markets by river' - Yankelovich (Piirto, 1991: 6). using, amongst others, techniques like psychographics, is one 'Psychographic information does as well or even bet­ of the most important roles of marketing decision makers, ter than focusing on product characteristics in certain including advertising agencies. There is a growing need to go categories where emotions are more deeply involved. beyond demographic descriptors in analysing and selecting When people yell out a brand name of a beer, they are media. Increasingly, media vehicles are being chosen based saying something about who they are - when they say on the characteristics of the life style of the audiences, or on "Old Iron City", that's a little different than saying the product or service usage patterns of these audiences. Not­ "Heineken"' - Haley (Piirto, 1991: 18). withstanding this trend, the bulk of media audience data 'It is a creative tool that gives you a feeling for people available to the media planner is based on demographics you don't know personally' - Plummer (Piirto, 1991: (Sunnanek, 1993). 96). In South Africa, advertising agencies and their clients are 'Psychographics is a way of getting to know a cus­ confronted with rapidly changing and developing communi­ tomer on a one-to-one basis' - Mather (Piirto, 1991: ties. Among other things, two factors compound the task of 96). segmenting markets, firstly, the multi-cultural composition of According to Wells (1974) the term 'psychographics' was the communities, and secondly, the fact that the different ra­ used for the first time by Emanuel Demby during a speech in cial groups are largely at different levels of sophistication Chicago in 1969. Demby (1989: 21) defined psychographics (SAARF, 1993). as the use of psychological, sociological and anthropological The main objective of this article is to test the use and un­ factors such as benefits desired (from the behaviour being derstanding of psychographics as a market segmentation studied), self concept, and lifestyle (or serving style) to deter­ technique by advertising agencies and marketers in the fast mine how the market is segmented by the propensity of moving consumer goods industry. groups within the market - and their reasons - to make partic­ ular decisions about a product, person, ideology, or otherwise hold an attitude or use a medium. Conceptual development The terms 'lifestyle' and 'psychographics' have sometimes Psychographics - a historical perspective been used interchangeably, and there is much overlap in what The earliest mention of psychology in commercial terms was the terms are generally thought to mean. However, according in 1859 by Gale of the University of Minnesota who tried to to Nelson (1969), Dorney (1971) and Peterson (1972), the find the mental processes which go on in the minds of the term 'psychographics' refers to studies that place compara­ consumers from the moment they see an advertisement until tively heavy emphasis on generalized personality traits. On they have purchased the article advertised (Piirto, 1991). He the other hand, analysts who have preferred the term 'life­ further states that the development of personality assessment style' have tended to focus either on broad cultural trends or techniques was significant because they categorized people on needs and values thought to be closely associated with into types defined by personality traits, a concept that would consumer behaviour (Adler, 1970; Andreasen, 1967). provide the basis for psychographic research. To this day there remains a great controversy amongst mar­ The following definitions provides the 'tone' of psycho­ keting academics and practitioners about what constitutes graphics as a concept over time: psychographics. Notwithstanding the multiple viewpoints, 'The desire to match personalities with brands is irre­ Weinstein (1994) takes the view that collectively the massed sistable. It is independent of history. It is independent data provides meaningful marketing information. As a result, S.Afr.J.Bw.Manqe.1997 28(2) 34 psychographic measurements are being used more frequently relevance in determining the motivations of each individual. Therefore it seems more reasonable to base one's definition in market segmentation studies. of segments or comparisons of groups on this set of values rather than on the most important value held by each individ­ Psychographics applied ual. Kamakura & Novak ( 1992) further argue that in applying According to Wells. psychographics can make three different psychographics it is important to consider groups or identifia­ kinds of contribution to market segmentation studies. ble segments rather than individuals. 'They can help describe existing market segments. Other methods like benefit segmentation use statistical They can contribute new and useful segmentation var­ analysis to group respondents on the basis of the importance iables. Finally they can be used to develop new market that they attach to certain combinations of rational, sensory segments' (1994: 325). and emotional benefits expected from the product. However, According to Wells & Tigert (1971 ), as early as the 1950s, according to Dhalla & Mahatoo (1976), even when meaning­ psychographics was preceded by a lively fad that came to be ful groups are extracted from the data, the benefits in most re­ known as Motivation Research. Practitioners of Motivation search studies are confined primarily to product attributes and Research used 'projective techniques' from clinical psychol­ do not cover the crucial areas of psycho graphics and commu­ ogy and psychoanalysis to try to penetrate deeply into con­ nications behaviour. Furthermore, according to Dhalla & Ma­ sumers' psyche in an effort to uncover the real reasons behind hatoo ( 1976: 37), psychographics are crucial for discovering consumers' decision. According to Kassarjian (1971) many both the overt and the latent psycho-social motives that so of· good marketing research studies have actually been critical of ten spell the difference between acceptance or rejection of the motivation research or experiments applying scientific proce­ brand. dures to motivation research. These advances in research A cautionary note is advanced by Burns & Harrison (1979) methodologies led to the focus on consumer interests, activi­ that psychographics were not meant to measure, in a precise ties, prejudices and opinions - and this has been variously manner, individual lifestyles, even though when aggregated, called 'psychographic' research, 'lifestyle' research, and even the results can be very useful in determining trends over time. (incorrectly) attitude research, however it did resemble moti­ vation research in that a major aim was to draw recognizable Psychographics and communication human portraits of consumers but it also ' ... resembles the tougher-minded, more conventional research in that it is ame­ According to Plummer nable to quantification and respectable samples' (Wells & Ti­ 'the basic premise of psychographic research is that gert, 1971: 28). the more you know and understand about your cus­ Perhaps the most obvious use for this kind of research is tomers the more effectively you can communicate and that of drawing portraits of target groups in the advertising market to them' (1974: 33). and marketing of products. If, according to Wells & Tigert · On the other hand, the more conventional and popular demo­ (1971), it is taken for granted that all forms of advertising and graphics have received broad acceptance and lend themselves marketing are in some sense communication, psychographics easily to quantification and consumer classification. However measurement is a significant improvement over the sterile de­ demographics lack richness and often need to be supple· mographic profiles that have traditionally been in use in mar­ mented with other data (Plummer, 1974). Furthermore, ac· keting. It is further asserted by Wells & Tigert (1971) that cording to Greenberg & McDonald (1989) whereas demo­ whilst two products may have very similar demographic pro­ graphic segmentation
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