A STUDY ON PSYCHOGRAPHIC PROFILING AND INCREASED SALES EFFICIENCY
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
In market research and social science research in general, psychographic variables are attributes relating to
personality, values, attitudes, interests, or lifestyles. Sometimes they’re referred to as activities, interest, and
opinion variables [AIO]. Psychographics is any measurement and analysis of consumer’s mind that seeks to point
out how they feel, think, react and reflect (Nelson 1971). According to some researchers, attempts to measure
lifestyle are known as psychographics (Demby 1994). The term ‘lifestyle’ was first coined by Alfred Adler in 1929
and refers to an individual’s activities, interests and opinions (AIO) and the way they spend their time and money.
Bauman (1990) opines that ‘lifestyles boil down almost entirely to styles of consumption’. Psychographic
segmentation plays on the psychology of the potential customers and helps the seller determine how he must
approach customers belonging to a particular segment (Ritu Narang 2010).
Psychographic segmentation should not be confused with demographic segmentation. Demographic
segmentation primarily takes into consideration the age and gender of the targeted group of customers. It aims to
group the market based on its similarities, whereas psychographics helps to understand how people are different.
It’s about how people act and think and not about what they look like. The market segmented on the basis of
demographic factors alone fails to capture the complete characteristics of the consumers, thus making it difficult
for the marketer to draw a meaningful picture (Cooper 1984). The consumers in the same demographic segment
possess different psychographic makeups. It has been widely recognized in marketing and retail literature that the
measurement of attitude and beliefs enables marketers to predict consumer behaviour more accurately (Ritu
Narang 2010). Thus the demographic and psychographic lifestyle approaches are highly complementary and
work best together. People hailing from the same sub-culture, social class and even occupation follow quite
different lifestyles. It is imperative to divide the market into various segments, and target each segment
individually so as to maximize sales.
More customers are eagerly being openness to use new tech and new models of goods or services. Almost, using
new models of goods or services are presenting variety group references which they have differences and
similarities. Also, it can show effects of purchasing on customers’ personality and lifestyle as psychographic
variables. So, the market segmentation can be conducted based on using psychographic variables to achieve
better knowledge of customers and to distribute right products among the right people. Psychographic
segmentation can portion customers to different classes of social and predict future needs and wants of people as marketing strategy.
1.2 Problem statement
As mentioned before Raaij and Verhallen (1994) demonstrated three approaches of segmentation that they are
applied by similarities on responding consumers to specific situation of products or services. Those
segmentations are forward, backward and simultaneous. Forward segmentation starts with relating to similarities
of consumption products or services, backward segmentation starts by considering of similarities of consumers’
traits, and simultaneous is based on relationship between consumers’ traits and situation specific consumption
patterns. It is distinguished that two categories of consumers’ traits which they are general and specific. The general characteristics are demographic,
lifestyle and personality, whereas specific characteristics form with their
attitudes, opinions, perceptions and preferences. Those characters are determined by analyzing consumer
responses towards consumption of goods or services. However, the approaches of segmentations use
relationship between values and behavioral response of consumers with their traits at the domain-specific level.
Orth et al. (2004) surveyed differences between perceived criteria and benefit sought for segmentation which
uses lifestyle to emanate from benefit dimensions as values e.g. quality, price, social and emotional benefits. Also,
support decisions and brand selecting have opposed with preferences, lifestyle segments, demographic and
behavioral variables. Marketers consider to product consumption values as communication tools between product
and consumers. In fact, product or service is considered as functional benefits, whereas brands are considered as
consumer perceived positive and negative emotional benefits. Psychographic segmentations can identify costs of
time and money.
1.3 Purpose of the study
The purpose of this study is to examine the impact of Psychographic profiling on sales efficiency. Specifically the
study:
To determine what patterns the Psychographic profiling can take and how effective are these pattern.
To highlight on the various types of Psychographic profiling.
To evaluate the effectiveness of Psychographic profiling through sales research.
To suggest the ways and manners through which Psychographic profiling problems can be tackled and
improved upon.
1. Significance of the study
TO PGDE/marketing students or would- be researchers, this will provide a pedestal upon which a better and
improved research work can be build upon. To the employers and employees some of the suggestion made in this
write up will be of immense benefit to them in terms of strategies development and increase in sales volume and
profitability through the various strategies that is suggested. To other library users, this will be of immense benefit
to them
1. Study hypothesis
The study hypothesis is:
Ho 1: There is no significance difference in the mean responses of staff on types Psychographic profiling and its
effectiveness.
Ho 2: There is no significance difference in the mean responses of staff on Psychographic profiling media and
factors to consider before choosing a profiling type.
1. Scope and Limitations of the Study
The study scope is limited to investigating the impact of psychographic profiling on sales efficiency. Limitation
faced by the research was limited time and financial constraint
1. Organisation of study
The study is grouped into five chapters. This chapter being the first gives an introduction to the study. Chapter two
gives a review of the related literature. Chapter three presents the research methodology; chapter four presents
the data analysis as well as interpretation and discussion of the results. Chapter five gives a summary of findings and recommendations.
A STUDY ON PSYCHOGRAPHIC PROFILING AND INCREASED SALES EFFICIENCY