CHAPTER ONE
INTRODUCTION
Background of the study
Psychographic variables are traits linked to personality, values, attitudes, interests, or lifestyles in market research and social science research in general. They’re also known as AIO variables (activities, interest, and opinion variables). Any measurement and analysis of a customer’s mind that aims to reveal how they feel, think, react, and reflect is referred to as psychographics (Nelson 1971). Psychographics are attempts to assess lifestyle, according to certain researchers (Demby 1994). Alfred Adler invented the term “lifestyle” in 1929 to describe an individual’s activities, interests, and opinions (AIO) as well as how they spend their time and money. According to Bauman (1990), “lifestyles boil down almost exclusively to consumption habits.”
As a result, the demographic and psychographic lifestyle approaches complement each other well and function best together. People with the same subculture, socioeconomic class, and even career lead very different lives. To optimize sales, it is critical to divide the market into numerous divisions and target each segment individually.
More clients are willing to try out new technology and new goods or service models. Almost every time new models of goods or services are introduced, a variety of group references emerge, each with its own set of differences and similarities. As psychographic variables, it can also demonstrate the effects of purchases on customers’ personalities and lifestyles. As a result, market segmentation can be done based on psychographic characteristics in order to gain a better understanding of clients and distribute the proper items to them. As previously stated, Raaij and Verhallen (1994) illustrated three techniques to segmentation that are based on consumer responses to specific product or service situations. Forward, reverse, and simultaneous segmentations are available. Forward segmentation begins with a comparison of consumption items or services, backward segmentation begins with a comparison of consumer traits, and simultaneous segmentation begins with a comparison of consumer traits and situation-specific consumption habits. It is stated that there are two types of consumer traits: general and particular. The demographic, lifestyle, and personality traits are general characteristics, whereas specific qualities are formed by their attitudes, views, perceptions, and preferences.
Problem statement
Consumer responses to the use of goods or services are used to determine these characteristics. At the domain-specific level, however, segmentation approaches use a relationship between consumer values and behavioral responses with their features.
Orth et al. (2004) investigated the disparities between perceived criteria and the benefit sought for segmentation, which relies on lifestyle to derive values such as quality, price, social, and emotional advantages. In addition, tastes, lifestyle groups, demographic, and behavioral variables have influenced support decisions and brand selection. Product consumption values are viewed by marketers as communication instruments between the product and its users. In reality, products and services are viewed as practical advantages, whereas brands are viewed as positive and negative emotional benefits by consumers. Psychographic segmentations can help you figure out how much it will cost you in terms of time and money.
Purpose of the study
The goal of this research is to see how psychographic profiling affects sales efficiency. The study in particular:
To see what kinds of patterns Psychographic profiling can produce and how effective they are.
To draw attention to the many types of psychographic profiling.
Through sales research, determine the effectiveness of psychographic profiling.
To provide methods and approaches for dealing with and improving Psychographic Profiling issues.
Significance of the study
This will serve as a foundation for PGDE/marketing students or would-be researchers to develop a stronger and more effective research project. Some of the suggestions given in this article will be quite beneficial to employers and employees in terms of developing plans and increasing sales volume and profitability through the various techniques suggested. This will be really beneficial to other library users.
Study hypothesis
The following is the study hypothesis:
Ho 1: The mean replies of employees on kinds Psychographic profiling and its effectiveness are not significantly different.
Ho 2: The mean replies of staff on Psychographic profiling media and criteria to consider before choosing a profiling type are not significantly different.
Scope and Limitations of the Study
The research will only look into the effect of psychographic profile on sales efficiency. The research was hampered by a lack of time and financial resources.
Organisation of study
The research is divided into five sections. This is the opening chapter, and it provides an overview of the research. The second chapter is devoted to a review of the relevant literature. The research methodology is presented in Chapter 3; the data analysis, as well as the interpretation and discussion of the results, are presented in Chapter 4. The findings and recommendations are summarized in Chapter 5.
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