This article investigates the effectiveness of demographic and psychographic variables in explaining consumer behavior across over 50 non-durable product categories. Using data from the Simmons Study of Media and Markets (SMM), the authors examine five sets of covariates comprising demographic and psychographic variables commonly used to segment consumer markets. The study assessed the ability of these variables to predict product use, brand use, usage frequency, and relative brand preference.
The study found that these covariates predict usage of the product category, but are not predictive of brand preference or usage. These findings support Fennell’s previous work and her claims that individual characteristics – particularly demographics – are not effective variables for market segmentation. Markets do not consist of individuals but of occasions in which consumers make purchase decisions.
Key Points and Findings
This article argues that engaging the attention of prospects when advertising has not received sufficient attention in marketing research or by practitioners. It points out that consumer science typically only becomes involved after content is created. To enable further involvement of marketing science in the process of actively engaging attention, the author presents a motivation framework and links the different classes of motivation to different forms of attention engagement. This article employs the conceptual framework from the author’s 1978 article “Consumers’ Perceptions of the Product-Use Situation.”
Key contributions:
This study provides empirical support for Fennell’s (1978) unique concept of consumer decision-making. It presents a novel model for understanding variations in consumer brand preferences by accounting for both the objective environment (e.g., where and with whom a product is consumed) and motivating conditions (e.g., thirst, social desire, mood). Conventional segmentation techniques typically presume uniform motivations within a specific context. However, this paper disputes that presumption by illustrating substantial variability both within the same individuals across different environments and within the same environments across different individuals.
The authors employ a hierarchical Bayesian model using data from 842 beer consumers across multiple environments. By combining partial brand rankings and detailed trade-off data, they estimate brand preferences and relate them to individual motivations and product attributes.
The findings reveal that motivating conditions within an occasion offer a more precise explanation for brand preferences than environmental or demographic factors alone. This implies that marketers should focus on person-activity occasions - each unique interaction between a consumer, an environment, and their current motivation - rather than relying solely on broader demographic or situational segments.
Key contributions:
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