A STUDY ON PSYCHOGRAPHIC PROFILING AND INCREASED SALES EFFICIENCY

 

CHAPTER ONE

 

INTRODUCTION

 

1.1Background of the Study

Psychographic variables are characteristics pertaining to personality, values, attitudes, interests, or lifestyles that are used in market research and social science research in general. These are also known as AIO variables, or activities, interest, and opinion variables. Any evaluation and measurement of a consumer’s mental state that aims to highlight how they feel, think, react, and reflect is known as psychographics (Nelson 1971). Psychographics is the term used by certain researchers to describe attempts to quantify lifestyle (Demby 1994). Alfred Adler first used the term “lifestyle” in 1929 to describe a person’s activities, interests, and opinions (AIO) as well as how they spend their time and money. “Lifestyles break down almost entirely to forms of consumption,” according to Bauman (1990).  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, as psychographic factors, it can demonstrate how a customer’s purchases affect their personality and way of life. In order to better understand customers and offer the correct items to the right people, market segmentation can be carried out utilizing psychographic characteristics. As a marketing approach, psychographic segmentation can divide customers into several social classes and forecast customers’ future requirements and desires.

1.2 Problem Statement

As previously indicated, Raaij and Verhallen (1994) presented three segmentation methods that are implemented based on how similarly consumers react to particular product or service situations. There are forward, reverse, and simultaneous segmentations. Backward segmentation begins by looking at similarities in consumer traits, forward segmentation begins by comparing similarities in consuming items or services, and simultaneous segmentation is based on the connection between consumer traits and situation-specific consumption behaviors. Two sorts of consumer characteristics—general and specific—are differentiated.

While their attitudes, beliefs, perceptions, and preferences shape their specific qualities, demographic, lifestyle, and personality make up their general characteristics. These personalities are chosen by looking at consumer reactions to the usage of goods or services. Nevertheless, segmentation methodologies employ relationships between consumer values and behavioral responses and their attributes at the level of each given area.

Using lifestyle to derive benefit dimensions as values, such as quality, price, social, and emotional benefits, Orth et al. (2004) investigated discrepancies between perceived criteria and benefit desired. Support choices and brand selection are also influenced by preferences, lifestyle subgroups, demographics, and behavioral factors. Marketers view consumer preferences as instruments for communicating with consumers about their products. In actuality, brands are thought of as consumer-perceived positive and negative emotional advantages, whereas products and services are thought of as functional benefits. Costs of time and money can be identified using psychographic segmentations.

1.3 Purpose of the Study

1. This study aims to investigate the effect of psychographic profile on sales effectiveness. Particulars of the study

in order to ascertain the patterns that psychographic profiling can adopt and the potency of such patterns.
2. To draw attention to the numerous psychographic profiling methods.
3.  To assess psychographic profiling’s performance using sales research.
4.  To make recommendations for approaches and strategies for dealing with and fixing issues with psychographic profiling.

1.4  Significance of the Study

This will give PGDE/marketing students or aspiring researchers a foundation upon which to develop a stronger and more effective research project. Some of the suggestions mentioned in this article will be quite helpful to employers and employees in terms of developing plans and increasing sales volume and profitability through the various techniques that are offered. This will be very helpful to other library patrons.

1.5  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.

1.6  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.

1.7  Organisation of Study 

There are five chapters in the study. The study is introduced in this chapter, which serves as its opening chapter. A review of the relevant literature is presented in Chapter 2. The research methodology is presented in Chapter 3; the data analysis, interpretation, and discussion of the findings are presented in Chapter 4. An overview of the conclusions and suggestions is provided in chapter five.

 

 

Leave a Comment