Consumer Segmentation Study Sheet

1. Demographics

Demographics involve measurable, observable characteristics of a population.

Key Variables:

1. Age – Seven age segments:

• 0-9: Pre-customer

• 10-15: Allowance customers

• 16-19: Youth market

• 20-25: Postsecondary market

• 25-40: Family formation (nesters)

• 40-55: Establishment

• 55+: Mature market

2. Gender – Products are often marketed differently to men and women.

• E.g., clothing, personal care, grooming, magazines, sporting goods.

• Traditional gender roles have evolved (e.g., men involved in household chores, women in renovations and car maintenance).

3. Ethnicity – Cultural preferences impact buying habits.

• E.g., ethnic grocery stores, hair & grooming products, TV channels in multiple languages.

4. Income Level – Determines affordability and spending habits.

• Lower-income → Focus on necessities (food, shelter, clothing).

• Higher-income → More discretionary spending on recreation, luxury, and education.

5. Family Life Cycle – Consumer needs change based on life stage.

• Young couples → Basic household items.

• Families with young kids → Baby products, childcare services.

• Empty nesters → Travel, health & wellness.

6. Education Level – Affects career choices, income level, and spending.

7. Occupation – Different careers have unique purchasing needs.

8. Languages Spoken – Affects media preferences, product packaging, and advertising.

2. Psychographics

Psychographics focuses on lifestyles, values, and personality traits of consumers.

Key Variables:

1. Personality Traits

• Outgoing, shy, intelligent, sarcastic, motivated, confident, etc.

• Influences brand choices and marketing appeal.

2. Hobbies & Activities

• Shared hobbies often lead to similar buying habits.

• E.g., Photographers invest in cameras; gamers buy high-performance computers.

• Sports enthusiasts may prioritize health-related purchases (organic food, gym memberships).

3. Values, Goals & Beliefs

• Religious & Cultural Beliefs impact product choices (e.g., dietary restrictions, views on marriage).

• Personal Values affect spending habits (e.g., prioritizing higher education, frugality, sustainability).

4. Attitudes Toward Health & Wellness

• Determines demand for fitness products, organic foods, supplements.

3. Behavioural Segmentation

Behavioural segmentation examines how consumers interact with products and brands.

Key Variables:

1. Desired Features

• Consumers seek specific features in products (e.g., gaming computers vs. work laptops).

• Businesses tailor products based on customer expectations.

• Example: H&M’s customers value trendy, affordable, diverse color options.

2. Usage Rate

• Heavy users – Daily users, consistent purchases (e.g., coffee drinkers, gym-goers).

• Moderate users – Frequent but not daily.

• Light users – Occasional consumers.

3. Brand Loyalty

• Consumers stick to specific brands based on experience, reputation, or emotional connection.

• Marketers target brand-loyal consumers with rewards and exclusives.

4. Purchasing Behaviour

• Where, how, and when consumers prefer to buy.

• E.g., Online shopping vs. in-store purchases, seasonal shopping trends, impulse vs. planned buying.

5. Motivation & Influences

• Psychological (emotions, perception, motivation).

• Social (peer pressure, social media, family influence).

• Situational (weather, time of day, special occasions).

Consumer Motivation Study Sheet

Consumer Motivation Overview

Consumer motivation explains why people make purchasing decisions. It is influenced by psychological, social, and situational factors.

1. Psychological Influences

Psychological influences shape consumer decisions based on internal thought processes, emotions, and personal needs.

Key Theories:

1. Thorndike’s Law of Effect

• Consumers repeat purchases that lead to positive outcomes and avoid those that cause negative experiences.

• Example: If a protein bar tastes good and boosts energy, the consumer is likely to buy it again.

2. Maslow’s Hierarchy of Needs

Consumers prioritize needs in a specific order:

• Physiological Needs (food, water, shelter) – Essential purchases.

• Safety Needs (security, health) – Health insurance, alarm systems.

• Love/Belonging Needs (social acceptance) – Social media trends, friend-recommended brands.

• Esteem Needs (status, recognition) – Luxury brands, exclusive memberships.

• Self-Actualization (personal growth) – Educational courses, gym memberships.

Examples of Psychological Influence in Purchases:

• Entertainment – Watching movies or concerts for emotional satisfaction.

• Athletic Gear – Buying branded sportswear for performance and self-confidence.

• Special Events – Attending the Olympics or World Cup for prestige and cultural connection.

2. Social Influences

Social factors shape consumer choices based on external relationships and cultural norms.

Key Social Factors:

1. Culture & Upbringing

• Cultural values shape preferences (e.g., dietary habits, fashion, TV choices).

• Example: Indian families may subscribe to TV channels featuring Bollywood films.

2. Family Influence

• Parents influence brand loyalty and purchasing habits.

• Example: A child raised in a tech-savvy household is more likely to buy Apple products.

3. Friends & Coworkers (Peer Influence)

• People purchase products to fit in or gain social acceptance.

• Example: Buying a popular sneaker brand because friends wear them.

4. Social Status & Recognition

• Some products are bought to impress others (e.g., designer clothes, luxury cars).

Examples of Social Influence in Purchases:

• Concert Tickets – Buying them because friends are going.

• Sports Team Merchandise – Supporting a team because of family tradition.

• Viral Trends – Purchasing trendy gadgets due to social media hype.

3. Situational Influences

Situational influences are temporary conditions that affect purchasing decisions.

Key Situational Factors:

1. Weather & Season

• Winter = Demand for jackets, heaters.

• Summer = Sales of air conditioners, cold beverages.

2. Store Environment & Location

• Well-organized stores with attractive displays increase impulse purchases.

• Example: Buying snacks at the checkout counter.

3. Time of Day

• Morning: Coffee and breakfast items in demand.

• Night: Streaming services or late-night food delivery.

4. Promotions & Advertising

• Sales, discounts, and ads push consumers to buy.

• Example: Black Friday deals create urgency.

5. Mood & Emotions

• Emotional Shopping – Buying comfort foods when stressed.

• Financial Situation – Spending more during paydays.

6. Scarcity & Limited Availability

• Consumers buy before items sell out (e.g., limited-edition sneakers).

Examples of Situational Influence in Purchases:

• Impulse Buying – Buying a new perfume on sale.

• Limited-Time Offers – Purchasing exclusive merchandise before it disappears.

• Mood-Based Purchases – Buying chocolates when feeling down.

Consumer Behaviour - Fan Theories Study Sheet

Understanding Fan Behaviour

Fan behaviour varies based on engagement, loyalty, and motivations. Fans exist in sports, entertainment, and pop culture, and their actions are shaped by psychological, social, and situational factors.

1. Types of Fan Behaviours & Motivations

Fans engage in different activities depending on their level of attachment and motivations.

Common Fan Behaviours:

• Buying merchandise

• Attending events (concerts, games, meet-and-greets)

• Engaging on social media (following, commenting, sharing)

• Watching games or performances regularly

• Collecting memorabilia

• Participating in fan clubs or online communities

• Creating content (fan art, blogs, videos)

Why Are Fans Motivated?

• Emotional Connection – Fans feel personally attached to a celebrity, team, or brand.

• Social Identity – Being a fan provides a sense of belonging.

• Fandom Culture – Fans enjoy participating in traditions, chants, or rituals.

• Escapism & Entertainment – Fans use media as a way to escape reality.

• Status & Prestige – Some fans enjoy exclusivity (VIP memberships, rare merch).

• Nostalgia – Past experiences fuel long-term attachment.

2. Fan Theories & Models

Several models explain how fans develop and evolve in their levels of attachment.

A. Frequency Escalator (1978) – Bernie Mullen

• Defines levels of consumer involvement in a sport or entertainment event.

• Marketers aim to move fans “up the escalator” to increase engagement.

Levels of Fans:

1. Non-Consumers – Unaware or uninterested.

2. Indirect Consumers – Engage through media but do not attend live events.

3. Light Users – Occasional attendees.

4. Medium Users – Regular attendees with moderate engagement.

5. Heavy Users – Highly loyal, consistently engaged (e.g., season ticket holders).

✅ Issue: This model only considers event attendance, ignoring digital engagement (social media, streaming).

B. Psychological Continuum Model (PCM) – Funk & James (2001)

• A more comprehensive model of fan development.

• Fans evolve through four stages based on their psychological connection.

Stages of Fandom:

1. Awareness – Exposure through friends, media, or ads.

2. Attraction – Fans begin following an artist, team, or event (e.g., adding songs to a playlist).

3. Attachment – Higher emotional investment, buying merch, following on social media.

4. Allegiance – Deep commitment, altering schedules for events, participating in fan communities.

✅ This model explains long-term fandom development rather than just attendance.

C. The New Sports Consumer (2003) – AT Kearney

• Identifies modern types of fans who engage differently.

Types of New Sports Consumers:

1. Sport-Indifferent Consumers – Watch only big events (e.g., Super Bowl).

2. Star-Struck Spectators – Follow a superstar, not a team (e.g., Messi fans, not FC Barcelona fans).

3. Social Viewers – Use sports/entertainment for social interaction, not deep commitment.

4. Opportunistic Viewers – Watch events only when invited or when it fits their schedule.

✅ This model acknowledges that not all fans are deeply committed.

D. Fan Typology (2014) – Samra & Wos

• Classifies fans based on their level of emotional attachment and loyalty.

Types of Fans:

1. Fanatical Fan

• Extremely devoted, emotionally invested.

• Supports the brand despite poor performance.

• Willing to spend money and travel for events.

2. Devoted Fan

• Long-term loyalty, strong self-identity connection to fandom.

• Example: A fan who continues supporting their team after years of losing.

3. Temporary Fan

• Interest is short-term, tied to trends or specific events.

• Example: Watching the World Cup only during the tournament.

✅ This model explains why some fans stay loyal while others move on.

3. Application of Fan Theories

Case Study: Nav Bhatia (Toronto Raptors Superfan)

• How he fits into the theories:

• Frequency Escalator: Heavy User (season ticket holder).

• PCM Model: Allegiance (lifelong dedication).

• New Sports Consumer: Not a casual viewer—fully engaged.

• Fan Typology: Fanatical Fan (attends all games, deeply invested).

4. How Fan Engagement Evolves Over Time

• Some fans grow deeper in loyalty (moving up the PCM model or Frequency Escalator).

• Others move down due to:

• Life changes (less time, financial constraints).

• Disappointment (team loses frequently, artist controversy).

• Shifting interests (new hobbies replace old ones).