Date of Award

1998

Document Type

Thesis

Degree Name

Master of Business Administration

Department

Business

First Advisor

Daniel W. Kemper

Second Advisor

Lisa Boling

Third Advisor

Skip Moreland

Abstract

Consumers are constantly changing. The generations are aging, causing their wants and needs to change. Products are also changing. They have gone from standardized to specialized. The market for consumer goods has gone from a mass market to niche markets. As consumers' sophistication grows so does their skepticism about advertising and claims advertisers make about their products. This creates a tough environment for marketers.

Demographic information provides marketers with a profile of their customers. Demographic information includes: gender, race, age, education, income, marital status, and number of children Demographic information groups consumers into generational groups. Generational groups are designated by specific time periods. The largest generation, and the one with the most impact on the market so far, is the baby boom generation. They were raised just as television was becoming an influence in advertising. The generation following is generation X, and it is much smaller. The boomlet generation is comprised of the children growing up today, and their generation will rival the baby boom generation in size and the impact they will have on the market. As these three generations age the market will change in many ways.

Psychographic information can provide marketers with an understanding of the changes that will occur. Psychographic research provides information about consumers lifestyles. Lifestyle information tells marketers how consumers feel about their product. It helps them develop messages that will effectively sell their product. Lifestyle information also provides valuable information for product development and for making changes in a product. Psychographic research delves into consumers psyches to discover how they really feel about a product.

Psychographic research, like demographic research, divides consumers into groups. Psychographic groups are called segments. Psychographic segments are based on the wants and needs of the consumer. The segments are based on lifestyle characteristics, such as: attitudes, values, acceptance of technology, creativity, and how likely they are to try something new. The added dimension that psychographics gives marketers helps them develop messages and advertising to appeal to their consumers.

The consumer of the 1990s is bombarded with images and messages, there are thousands upon thousands of products consumers can choose from. Products are specific, potato chips are not just plain but come in many flavors. With this proliferation of products it has become increasingly important for marketers to understand what motivates consumers to develop effective messages.

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