Psychographics & Demographics
Psychographics & Demographics
Psychographics & Demographics
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Predicting Consumer Behavior and
Media Preferences: The Comparative
Validity of Personality Traits and
Demographic Variables
Carson J. Sandy and Samuel D. Gosling
The University of Texas
John Durant
Mindset Media
ABSTRACT
It is common practice for organizations selling a product to divide potential consumers into
segments to allow them to target those most likely to buy their products. Two broad approaches to
market segmentation can be delineated. The most common approach relies on segmenting by
demographic variables (e.g., age, gender). The second approach (known as psychographics)
identifies market divisions in terms of psychological variables such as values, attitudes, and
personality traits. There has been little research comparing the efficacy of the two approaches. Based
on analyses of over 45,000 participants, the present research empirically compares the effectiveness
of the two approaches among segmentation variables ranging from cell phones and lottery tickets to
newspapers and television shows. Overall, both approaches explained surprisingly small amounts of
variance in consumer behavior. Nonetheless, for the variance that was predictive, the relative
contribution of demographics and psychographics varied dramatically across consumer behaviors;
for some behaviors (e.g., electronic purchases), demographics had superior predictive potential but
for others (e.g., television shows) psychographics were more useful. Therefore, an approach that
integrates both methods is recommended. C 2013 Wiley Periodicals, Inc.
It is common practice for organizations that have a Market Segmentation and Psychographics
product to sell to divide their potential consumers
into segments. Doing so allows the organizations to The early 1930s saw a revitalization of economic
target their marketing efforts, directing advertising theory in which it became apparent that components
to the consumers most likely to buy their product of the supply side (i.e., production) and the demand
and crafting their pitches to appeal to the intended side (i.e., consumption) of manufacturing were no
audience (Vyncke, 2002). Two broad approaches to longer homogenous (Smith, 1956). Marketers began to
market segmentation can be delineated. The first ap- recognize that people were growing in their desire for
proach, and by far the largest, relies on segmenting the variety. Customers needs and desires were growing
market in terms of sociodemographic variables such more complex. These factors, as well as a number of
as age, gender, race, and class. The second approach other practical issues, drove manufacturers and busi-
sometimes referred to as psychographicsidentifies nesses to segment their large heterogeneous market
market divisions in terms of psychological variables into smaller, more homogenous groups (Smith, 1956).
such as values, attitudes, goals, and personality. The term psychographics as it is used in the field of
There has been surprisingly little research directly market segmentation was coined by Demby in 1965
comparing the efficacy of the two approaches. The goal (Demby, 1994). To enrich the fields understanding
of the present research was to conduct just such an of consumer behavior and to enhance advertising
analysis, empirically comparing the relative effective- strategies, Dembys idea was add to demographic
ness of the two approaches in segmenting markets for segmentation by further segmenting people based on
a wide variety of products ranging from cell phones their tendency to think or act in a certain way (Demby,
to lottery tickets. To provide context for the current 1994). Subsequent marketers and researchers began
approach, the fields of psychographic and demographic to use psychological variables such as values, motiva-
segmentation are first briefly reviewed. tions, and personality traits to segment their potential
937
customers (e.g., Engel, Kollat, & Blackwell, 1969; applications in advertising and marketing. For exam-
Wells, 1975). ple, Yankelovic and Meer (2006) use the example of the
Early psychographic segmentation was heavily psychographic-based Pepsi Generation campaign. They
rooted in personality profiling. One of the most com- argued that though this campaign reinforced youth cul-
mon inventories used for this purpose was the Edwards ture in Pepsis brand image, it did nothing to influence
Personal Preference Schedule (Edwards, 1959), a scale commercial activity. One of their main complaints with
on which people rated themselves on 15 normal needs psychographic segmentation was the lack of empirical
or motives. For example, Evans (1959) attempted to data in predicting actual consumer behavior.
predict brand preference of Ford and Chevrolet own- Other researchers, such as Wells (1975) have offered
ers based on psychological needs (e.g., autonomy, dom- slightly more positive critiques of psychographic seg-
inance, order). Unfortunately Evans and similar re- mentation. Wells points out that when psychological
searchers attempts at predicting consumer behavior constructs have been relevant to the consumer behav-
were largely unsuccessful (Wells, 1975). ior being studied that predictive correlations have been
Eventually, the use of personality profiling as a ba- in the 0.20s and 0.30s. He notes that although some
sis for psychographic segmentation was replaced by have been quick to dismiss numbers of this magnitude,
the lifestyle approach (Wells, 1975). First introduced they are often high enough to offer substantial predic-
by Lazer (1963), lifestyle is generally defined as the tive validity. He also points out that accounting for dif-
patterns in which people live and spend their time ferences in segments is often more important than ex-
and money (Vyncke, 2002). Often, lifestyle question- plaining the variance in individual consumer behavior.
naires were designed within the context of the prod- Despite these occasional positive critiques, there has
uct being sold. So, for example, heavy users of shot- been a broader lack of systematic research on the effi-
gun ammunition were identified by such questions as: cacy of demographic and psychographic segmentation
I like hunting and I would like to be a policeman (Novak & MacEvoy, 1990).
(Plummer, Erickson, & Groves, 1975; Wells, 1975). Ex- It is clear that the study of psychographics in con-
panding upon this method, Plummer (1974) and oth- sumer behavior is fraught with complex methodological
ers took a more person-centered approach to lifestyle issues as well as a number of misconceptions by those
segmentation (e.g., Vyncke, 2002). The most widely both inside and outside of the academic field of con-
accepted model of lifestyle segmentation is the AIO sumer behavior. Three factors in particular may con-
approachactivities, interests, and opinions. Activities tribute to the failure of psychographics as a prominent
include actions such as vacations, shopping, sports, and method of segmentation.
work. Interests are defined as the degree of excitement
that is affiliated with topics such as fashion, media,
food, family, and home. Lastly, opinions include any de- Criticisms of Studies that Have Used
scriptive beliefs that one holds (e.g., politics, business, Psychographics as a Predictor of Consumer
education, culture; Plummer, 1974). The AIO batter- Behavior
ies were often quite large, with as many as 300 items
(e.g., Wells & Tigert, 1971). The AIO approach has seen One factor driving the methodological issues of using
some popularity over the years largely because psycho- psychographics in market segmentation is the aban-
graphic lifestyle profiles (like the one derived in the donment of more traditional personality measures,
hunting study) and product-specific psychographic pro- which occurred after the 1960s (e.g., Wells, 1975). One
files can be useful in providing focused marketing ef- factor driving this abandonment was that marketers
forts for a specific product (e.g., Plummer, 1974). commonly adopted measures developed in clinical con-
A closely related method of segmentation is based texts; such instruments, designed to provide clinical
on values. In the field of psychographics, values can be diagnoses, are not well suited to large-scale assess-
defined as goals that extend across situations, are en- ments of personality. For example, The Edwards Per-
during, and serve as guiding principles in peoples lives sonal Preference Schedule (Edwards, 1959), which was
(Vyncke, 2002). The two most common measures used used in early psychographic research, was primarily de-
for values-based segmentation are the Values and Life veloped for personal counseling. Its effectiveness in con-
Styles (VALS; Mitchell, 1983) and the List of Values sumer research was largely unsuccessful (Wells, 1975).
(LOV; Kahle, 1983; Veroff, Kulka, & Douvan, 1981). Additionally, marketers have favored ad hoc (rather
Utilizing values as a segmentation method has two than established) measures that either relate to a
advantages over the AIO approach: values capture a specific product or that relate to a theory of a particular
broader array of behavior and they can be measured marketing group (e.g., Novak & MacEvoy, 1990; Wells,
with shorter instruments. 1975). Many of these ad hoc measures were developed
The lifestyle (or AIO) approach and the values ap- by nonpsychologists who typically are not trained in
proach are the main methods of psychographic segmen- psychometrics; as a result issues such as reliability
tation that remain in use today. These methods have and validity have often been neglected, resulting in
received mixed reviews from researchers. Some authors measures that are not well placed to provide predictive
have argued that psychographic methods in general do power in the consumer-behavior context (e.g., Vyncke,
not provide enough predictive validity to offer practical 2002). Additionally, ad hoc scales in general do not
Movies watched per 1 Age, gender, education, E, A, C, O 0.042 0.033 0.067 0.025
month (in theaters) income
Do you buy movie tickets 1 Age, gender, education, E, A, C, O 0.125 0.043 0.149 0.024
online? income
Hours spent watching TV 2 Age, gender E, A, C, O 0.014 0.013 0.029 0.015
(per week)
Network 2 Age, gender E, A, C, O 0.011 0.014 0.023 0.012
Cable 2 Age, gender E, A, C, O 0.004 0.005 0.008 0.004
Premium channels 2 Age, gender E, A, C, O 0.007 0.012 0.016 0.009
Crime shows 2 Age, gender E, A, C, O 0.002 0.003 0.005 0.003
Sports 2 Age, gender E, A, C, O 0.046 0.012 0.057 0.011
Reality competitions 2 Age, gender E, A, C, O 0.024 0.007 0.032 0.008
Reality living shows 2 Age, gender E, A, C, O 0.087 0.004 0.089 0.002
Relationship dramas 2 Age, gender E, A, C, O 0.023 0.004 0.027 0.004
Action dramas 2 Age, gender E, A, C, O 0.035 0.012 0.042 0.007
Sitcoms 2 Age, gender E, A, C, O 0.032 0.004 0.034 0.002
Adult animation 2 Age, gender E, A, C, O 0.118 0.055 0.151 0.033
Morning shows 2 Age, gender E, A, C, O 0.016 0.008 0.022 0.077
Soap operas 2 Age, gender E, A, C, O 0.027 0.004 0.030 0.003
Hourly news 2 Age, gender E, A, C, O 0.026 0.014 0.040 0.014
Political shows 2 Age, gender E, A, C, O 0.04 0.030 0.076 0.036
Evening news 2 Age, gender E, A, C, O 0.063 0.009 0.073 0.01
Local news 2 Age, gender E, A, C, O 0.035 0.014 0.043 0.008
Cable news 2 Age, gender E, A, C, O 0.024 0.017 0.043 0.019
Financial news 2 Age, gender E, A, C, O 0.026 0.022 0.051 0.025
Hours spent reading the 3 Age, gender, education, E, A, C, O 0.041 0 0.041 0
newspaper (per week) income
Hours spent reading 3 Age, gender, education, E, A, C, O 0.01 0.001 0.01 0
magazines (per week) income
Hours spent on the 3 Age, gender, education, E, A, C, O 0.015 0.001 0.015 0
Internet (per week) income
Hours spent listening to 3 Age, gender, education, E, A, C, O 0.006 0.002 0.01 0.004
the radio income
Note: Change in r was estimated using Nagelkerke method. r change indicates incremental validity, or change in variance explained by
personality variables when demographics are accounted for.
Items that are binary.
Are you a registered 1 Age, gender, education, income E, A, C, O 0.114 0.044 0.131 0.017
voter?
Are you a Democrat? 1 Age, gender, education, income E, A, C, O 0.015 0.012 0.026 0.011
Are you a Republican? 1 Age, gender, education, income E, A, C, O 0.023 0.035 0.056 0.033
Are you an 1 Age, gender, education, income E, A, C, O 0.011 0.013 0.023 0.012
Independent?
Did you vote for John 1 Age, gender, education, income E, A, C, O 0.042 0.044 0.078 0.036
McCain?
Did you vote for Barack 1 Age, gender, education, income E, A, C, O 0.034 0.056 0.08 0.046
Obama?
Global warming
Scientists will find a 1 Age, gender, education, income E, A, C, O 0.023 0.051 0.054 0.031
solution to global
warming without
people having to
make big changes
to their lifestyles.
Recycling
I go out of my way to 1 Age, gender, education, income E, A, C, O 0.013 0.091 0.113 0.100
buy recycled
products.
Sustainability
I go out of my way to 1 Age, gender, education, income E, A, C, O 0.012 0.037 0.042 0.030
buy sustainable
products.
Parental restrictions
If you are a parent, how restrictive are you of the following?
Sugar 1 Age, gender, education, income E, A, C, O 0.016 0.012 0.028 0.012
TV 1 Age, gender, education, income E, A, C, O 0.004 0.006 0.011 0.007
Video games 1 Age, gender, education, income E, A, C, O 0.027 0.004 0.029 0.002
Movies 1 Age, gender, education, income E, A, C, O 0.002 0.003 0.004 0.002
Music 1 Age, gender, education, income E, A, C, O 0 0.004 0.004 0.004
Internet 1 Age, gender, education, income E, A, C, O 0.043 0.002 0.044 0.001
Note: Change in r was estimated using Nagelkerke method. r change indicates incremental validity, or change in variance explained by
personality variables when demographics are accounted for.
Items that are binary.
psychographics combined), the ratio of change was ple, when evaluating how many hours of television per
calculated by dividing R2 for the second regression week an individual watches, R2 increased from 0.01 to
block by the R2 for the first regression block. The 0.03, an increase of 2.07. However, when examining a
average factor increase for all outcome variables more specific genre such as Sitcoms no change could
assessed was 1.9. Thus, when adding personality to be observed in R2 . One exception to this genre-specific
a model of overall consumer behavior, on average the limitation was Crime shows and Political shows. Crime
variance almost doubled. shows increased by 2.5 in R2 when adding personality
The primary aim of this paper was to evaluate the variables to the regression. Similarly, political shows
overall value of personality variables in offering predic- increased by 1.9 in R2 .
tive ability over and above demographics. It is, however, As shown in Table 3, the indirect buying behav-
worth examining the areas, if any, in which personality ior category also revealed a complex pattern of find-
is more beneficial than others. As shown in Tables 24, ings. Personality played an important role in predict-
certain areas of consumer behavior benefited more than ing items related to attitudes about recycled products
others did from the addition of personality variables to and sustainable products. For example, demographic
the model. variables alone predicted whether or not an individ-
As shown in Table 2, in the media category, predic- ual will purchase recycled products with an R2 = 0.013
tions of general television watching items (e.g., How but after adding personality to the model, R2 increased
many hours of TV do you watch?, Do you subscribe to to 0.113an increase of a factor of 8.69. In the cate-
premium channels?) benefited from adding personal- gory of political items, the two behaviors that benefited
ity to the model. For most of the more specific genre most from personality variables were whether or not
questions, personality did not account for a great deal the person was a registered Republican (increase in R2
of variance over and above demographics. For exam- of 2.43) and whether or not the person voted for Barack
Lottery
Do you play? 1 Age, gender, education, income E, A, C, O 0.02 0.019 0.044 0.024
How often? 1 Age, gender, education, income E, A, C, O 0.02 0.007 0.024 0.004
Scratch-off games 1 Age, gender, education, income E, A, C, O 0.084 0.007 0.089 0.005
Daily or numbers 1 Age, gender, education, income E, A, C, O 0.014 0.008 0.027 0.013
games
Weekly or jackpot 1 Age, gender, education, income E, A, C, O 0.031 0.008 0.037 0.006
games
Electronics
Flat screen TVs 1 Age, gender, education, income E, A, C, O 0.06 0.019 0.067 0.007
Computers 1 Age, gender, education, income E, A, C, O 0.031 0.019 0.046 0.015
Cell phones 1 Age, gender, education, income E, A, C, O 0.088 0.031 0.111 0.023
Mac or PC? 1 Age, gender, education, income E, A, C, O 0.021 0.031 0.045 0.024
Cars
Number of cars 3 Age, gender, education, income E, A, C, O 0.181 0.001 0.182 0.001
Minivan 2 Age, gender E, A, C, O 0.01 0.014 0.026 0.016
Sedan 2 Age, gender E, A, C, O 0.012 0.006 0.02 0.008
Sports car 2 Age, gender E, A, C, O 0.004 0.01 0.012 0.008
Station wagon 2 Age, gender E, A, C, O 0.001 0.007 0.009 0.008
SUV 2 Age, gender E, A, C, O 0.009 0.005 0.015 0.006
Truck 2 Age, gender E, A, C, O 0.038 0.008 0.041 0.003
Note: Change in r was estimated using Nagelkerke method. r change indicates incremental validity, or change in variance explained by
personality variables when demographics are accounted for.
Items that are binary.
Obama (increase in R2 of 2.35). One area that did not and 2.60, respectively). However, for sedans, SUV, and
see much benefit from adding personality variables to truck owners, the factor of change when adding per-
the model was whether or not the individual is a regis- sonality variables induced much smaller factors of R2
tered voter (an increase in R2 of only 1.15). Among the change (1.60, 1.60, and 1.00, respectively).
parental restriction items, restriction of television and To get a clearer grasp of how demographics and per-
movies (R2 change of 2.75 and 2.00, respectively) ben- sonality variables predict general consumer-behavior
efited more than Internet, video games, or music (R2 patterns, an exploratory factor analyses was performed
change of 1.07, 1.02, and 1.00, respectively). on the pools of dependent variables. Separate factor
As shown in Table 4, the findings for the consumer- analyses were performed on each of the three sur-
goods category were also complex. Similar to the finding veys. Across all three surveys, 11 dimensions were
in the media category, general patterns of consumer derived. Three dimensions pertained to indirect buy-
behavior often benefited more from adding personal- ing behavior: Conservative Political Behavior, Recy-
ity to the model. For example, adding personality to cle/Sustainable Behavior, and Parental Restrictive-
the model predicting lottery-ticket behavior increased ness. Five dimensions pertained to media consumption:
the R2 from 0.02 to 0.04 (2.2 factor increase). However, News/Information shows, Entertainment shows, Type
when evaluating the more specific behavior of whether of Television, Traditional Entertainment, Modern En-
the person plays scratch-off games, the R2 was 0.08 for tertainment. And three dimensions pertained to con-
demographics alone, increasing to 0.09 when personal- sumer products: Electronic, Lottery, Car Ownership.
ity was added to the model (factor of change of 1.06). The component matrices for the 11 dimensions can be
Contrary to this specificity effect, the categories of elec- seen in Tables 5 through 7.
tronics and car ownership presented a slightly different Some dimensions were better predicted by demo-
picture. For electronics, personality added almost noth- graphic variables and others were better predicted by
ing to explained variance for items such as flat screen demographic variables. As shown in Table 8, personal-
TVs per household and cell phones per household (with ity variables were superior in predicting the following
factor of changes of 1.00 and 1.2, respectively). How- dimensions: Conservative Political Behavior, Recy-
ever, when evaluating whether the participant owned a cle/Sustainable Purchases, Type of Television, and Tra-
Macintosh or a PC, personality was a strong contributor ditional Entertainment. Demographic variables were
(R2 increased from 0.02 to 0.05, a 2.14 factor increase). superior in predicting the remaining dimensions: Elec-
The findings for car ownership were split. When pre- tronic Purchases, Lottery, Parental Restrictiveness,
dicting station wagon, sports car, and minivan owners, News/Information Shows, Entertainment Shows, Car
adding personality variables increased explained vari- Ownership, and Modern Entertainment. Results also
ance by double or more (factor of change of 9.00, 3.00, revealed that for about half of the dimensions, adding
Table 6. Rotated Component Matrix for Exploratory Factor Analysis of DVs in Survey 2.
Parental News/Information Entertainment Type of Car
Restrictiveness Shows Shows Television Ownership
I II III IV V