Lifestyle

Lifestyle patterns have been the subject of much interest as far as marketing research practitioners are concerned. The term 'lifestyle' refers to the pattern of living as expressed in a person's activities, interests and opinions. Lifestyle analysis (psychographics) groups consumers according to their beliefs, activities, values and demographic characteristics (such as education and income). For example, the advertising agency Young 8c Rubicam, identified seven major lifestyle groups that can be found throughout Europe and the USA.

1. The mainstreamers: the largest group. Attitudes include conventional, trusting, cautious and family-centred. Leisure activities include spectator sports and gardening; purchase behaviour is habitual, brand loyal and in approved stores.

2. The aspirers: members of this group are unhappy, suspicious and ambitious. Leisure activities include trendy sports and fashion magazines; they buy fads, are impulse shoppers and engage in conspicuous consumption.

3. The succeeders: those that belong to this group are happy, confident, industrious and leaders. Leisure activities include travel, sports, sailing and dining out. Purchase decisions are based on criteria like quality, status and luxury.

4. The transitionals: members of this group are liberal, rebellious, self-expressive and intuitive. They have unconventional tastes in music, travel and movies; and enjoy cooking and arts and crafts. Shopping behaviour tends to be impulsive and to involve unique products.

5. The reformers: those that belong to this group are self-confident and involved, have broad interests and are issues-orientated. They like reading, cultural events, intelligent games and educational TV. They have eclectic tastes, enjoy natural foods, and are concerned about authenticity and ecology.

6. The struggling poor: members of this group are unhappy, suspicious and feel left out. Their interests are in sports, music and television; their purchase behaviour tends to be price- based, but they are also looking for instant gratification

7. The resigned poor: those in this group are unhappy, isolated and insecure. Television is their main leisure activity and shopping behaviour is price-based, although they also look for the reassurance of branded goods.

Lifestyle analysis has implications for marketing since lifestyles have been found to correlate with purchasing behaviour. A company may choose to target a particular lifestyle group (e.g. the mainstreamers) with a product offering, and use advertising that is in line with the values and beliefs of this group. As information on the readership/viewership habits of lifestyle groups becomes more widely known so media selection may be influenced by lifestyle research.

3.2 Marketing in Action

The Rise of the 'Mass Affluent'

In a world of increasing financial complexity, Europe's modestly wealthy have long been taken for granted by the continent's retail banks. The mass market saver has over-the-counter mutual funds, pensions policies and life assurance, while the seriously wealthy are wooed by private bankers. The 'mass affluent' (people with about £100,000 to invest), however, have been less well served. Although they have money to invest, they are not sufficiently well-off to pay a level of charges that would make a personalized service profitable.

The number of mass affluent is reckoned to total about 40 million consumers in Europe. Most are customers of conventional retail banks and, as they tend to hold relatively large sums on deposit, they contribute significantly to banks' profits. Now, however, banks are trying to provide them with a more sophisticated service for two reasons: first, many are moving some of their business to other types of financial service providers such as online brokers and mutual fund managers; second, new technologies are being employed to keep down the costs of offering additional services.

Merrill Lynch, the US investment bank, and HSBC, the UK-based group with retail operations in Europe, Asia and the Americas, have combined forces to invest US$500 million each in a new online bank for the mass affluent. This will be a global operation, targeting 'self-directed' investors who are relatively sophisticated and need little help from their advisers. Those with more than US$100,000 to invest will be offered access to the two partners' equity research, interactive educational materials and online tools to help them construct their own portfolios. The package will also include integrated banks and broking accounts, credit and debit cards, and a range of funds offering the best products in 10 sectors. There will also be back-up from call centres and a slim network of local branches.