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5 New Ways To Look At Shoppers - GfK MRI

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    Report                                                                                                                               ANNE MARIE KELLY

                                                                                                                       Anne Marie Kelly is SVP of marketing and strategic
    5 New Ways To Look At Shoppers                                                                                      planning at Mediamark Research & Intelligence.
    by Anne Marie Kelly, Friday, September 11, 2009, 4:54 PM                                                                            Reach her here.


    When it comes to understanding consumer behavior at the retail                            SHARE
    level, attitudes -- not solely demographics -- push the shopping
                                                                                                                                              AUTHORS
    cart.
                                                                                                                       »   Mickey Lonchar
                                                                                                                       »   Robert Passikoff
    Consumers with similar demographics often have quite dissimilar
                                                                                              TOOLS                    »   Vanessa Horwell
    mindsets, purchase habits and motivations. Psychographic
                                                                                                                       »   Kate Newlin
    segmentation makes it possible to move beyond demographics to                  PRINT               SUBSCRIBE
    incorporate attitudinal variables that affect consumer behavior. A             COMMENT             RSS
    "buying styles" segmentation, for example, can take into account                                                                          ARCHIVES
    dimensions such as brand loyalty, brand trust, impulsivity, frugality                                              »   September 2009
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        q   Buyers of the Best                                                 Team Sports
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                                                                               Perception
        q   Swayable Shopaholics
                                                                               TAGS: Research, Retail,
        q   Habitualized Havers                                                Commentary


        q   Conscientious Consumers                                                        MOST READ

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        q   Penny-Pinchers                                                     #Advertisingfail?
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    Comprising just 15% of the U.S. adult population, Buyers of the
                                                                               3. Group M's Scanzoni Slams Nielsen
    Best are evenly divided between male and female, have a median
                                                                               Live-Plus
    age of 49 and median household income of $74,600. Their key
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    attributes include the propensity to buy based on specific brand           Perception
    and product quality, as opposed to price.                                  5. The Wiggles Can Teach Marketers
                                                                               A Thing Or Two
    Swayable Shopaholics are 30% of the adult population, have a               6. Yes, Display Ads Can Work -- And
    median age of 38 -- making them the youngest shopper segment --            Benefit Search As Well
    and a median household income of $50,300. As with Buyers of the            7. After Unmasking, Judge Throws
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    Best, they are evenly divided between men and women. However,
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    this group is not brand loyal. They will switch brands for the sake
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    of novelty or variety, seek emotional payoff from the act of               Play, Picks Plum
    shopping, and find shopping a great way to relax.                          9. 5 New Ways To Look At Shoppers
                                                                               10. Nokia's Plum Deal
    Habitualized Havers have a median household income of $73,500 --
    almost equal to that of Buyers of the Best -- but they are
    overwhelmingly male (73%) versus female (27%). This segment, comprising 17% of adults and having
    a median age of 45, are creatures of habit: They buy what they have always bought. And they are
    the least likely to find shopping a "great way to relax."

    Women make up the largest proportion of Conscientious Consumers -- at 71% vs. 29% for men --
    and have a median age of 54, the oldest of the five segments. With a median household income of
    $49,700 they are the least wealthy. They pay attention to nutrition content and ingredient labels,
    and consider themselves savers rather than spenders.

    Nearly one in five U.S. adults is a Penny-Pincher. This group has a median age of 45 and the
    second-lowest median household income, at $50,400. Females slightly outnumber males 57% to
43%. Among their key attributes is valuing price more than brand name or quality. They will gladly
switch brands for cents-off coupons. Unlike Conscientious Consumers, they rarely pay attention
to ingredients and nutrition contents.

So what are the practical implications of being able to identify these consumer shopping
segments? Both media buyers and sellers can benefit from this kind of detailed consumer
understanding.

Magazines, for example, can use these consumer insights to build unique sales stories based on
the percentage of their readers that fall into each Buying Styles category. To pitch a marketer
that is going to launch a value-priced generic product, magazines with the greatest percentage of
Conscientious Consumers have a distinct edge because these consumers are 59% more likely than
the average adult to say price is more important to them than brand name. Penny-Pinchers are a
close second.

For marketers using celebrities to help move their products, magazines that can show a high
concentration of Swayable Shopaholics have the inside track. Why? Because these readers are
163% more likely to "mostly agree" with this statement: "A celebrity endorsement may influence
me to consider or buy a product." At the opposite end of the spectrum are Habitualized Havers,
who are the least likely to be influenced by celebrities.

Let's say a marketer has identified a Buying Styles segment that it wants to target for its product
or service. Which media are the best choices? If the marketer is trying to build trust for its brand
among Buyers of the Best, radio and magazines would be the best options, since Buyers of the
Best index high for being likely to trust what they hear and read in these media.

Just as you can't judge a book by its cover, targeting consumers using simple demographics is a
near-blind exercise. Particularly considering the wealth of data available showing how shoppers
approach the retail experience and what pushes their buttons upon entering the store.

    This commentary is insightful. I recommend it to others.
1 person recommends this article.


3 comments on "5 New Ways To Look At Shoppers "

   Mickey Lonchar from QMD
   commented on: September 14, 2009 at 12:21 PM

 At the end of the day, no matter how you choose to segregate your audience, you are trying to predict
 future consumer behavior. Psychographics became all the rage in the 80's when it became clear that a
 $100,000/year plumber probably won't buy the same car as a $100,000/year financial executive. Now we
 acknowledge that not every $100,000/year plumber exhibits the same consumer behavior.

 Every time we come out with a new psychographic model with new classifications, clients will inevitably
 eat it up and tout it as an "improvement" because it slices the pie a new way.

 Unfortunately, we can reshuffle the psychographic deck till the cows come home, but we'll still have the
 same problem: these classifications are not as predictive as we need them to be. The great hope in
 predicting consumer behavior for my money is Behavioral Targeting, which takes into account far more
 variables (knowledge, intent, experience, etc.) than any of the psychographic models we've seen so far.

 http://www.quisenblog.com




   hart weichselbaum from the planning practice
   commented on: September 14, 2009 at 8:15 AM

 My chief problem with these psychographic schemes (no big new here either!) is that we can use
 demographics to target media, but can't buy media for Habitualized Havers (rolls off the tongue, doesn't
 it?).




   Nance Rosen from NanceSpeaks!
   commented on: September 14, 2009 at 5:30 AM

 Associating buying psychology with demographics is a pretty old approach to segmentation. Other than
 assigning these particular names, I don't see any new contribution to the field - and pretty thin utility.
 When I was a marketing executive at Coke, we used an awfully similar segmentation approach for
 consumers in the quick service restaurant category. While it's true that Coke is ahead of the curve of
 most marketing intelligence, the desire to be known for a typology must be accompanied with a lot more
 depth if it's meant to inform new marketing practices.
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