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Abstract
Indian Newspaper Industry is witnessing high growth, despite the rise of the Internet and of
telecommunications as viable sources of information. Earlier all the newspapers thought that the
opportunity for them was within their own geographical area. But, in coming years publishers will be
spending over Rs.1000 crores to invade into other’s territories. Unless the publishers recognize the
preferences of readers, it would be unlikely that they would succeed in winning the hearts of the
customers.
This research makes an attempt to recognize the preferences and segment the readers of the English
newspapers based on their psychographic profiles by using VALS. VALS is a way of viewing people on
the basis of their attitudes, needs, wants, beliefs and demographics. This research also analyzes the
influence of psychographic factors on brand loyalty based on Brand loyalty scale and suggests the
psychographic segments to be targeted by the brands to sustain in the competitive Market environment.
Different types of market dominance strategies for various market positions are also explored.
When looking for a newspaper, people are The basic tenet of VALS is that people
interested in papers which correspond to express their personalities through their
their beliefs and with which they can behaviours. VALS reflects a real-world
identify themselves. This study makes an pattern that explains the relationship
attempt at recognize the preferences and between personality traits and consumer
the profiles of readers of English behaviour. VALS specifically defines
newspapers. Defining the profile of the consumer segments on the basis of those
readers by looking beyond the personality traits that affect behaviour in the
demographic factors will assist the marketplace. VALS uses psychology to
newspapers to design their marketing analyze the dynamics underlying consumer
strategies in a much better way. This is preferences and choices. VALS not only
how study into values and life styles distinguishes differences in motivation, it
becomes relevant. also captures the psychological and material
constraints on consumer behaviour (Cyber
1.1 Values And Lifestyles (VALS)
Media Research).
VALS is a way of viewing people on the For many years, demographics have
basis of their attitudes, needs, wants,
governed how communicators target
beliefs and demographics. The VALS campaigns. The problem is that even
program was created by the SRI
though individuals in a specific
International in 1978 in an attempt to
demographic category share some
understand people’s personality through common characteristic, such as, age, sex
their behaviours amid the changing
or income, the psychographics of these
values and lifestyles in 1970’s. VALS uses group like values, motivations and beliefs
psychology to segment people according
are not homogeneous. When attitudes,
to their distinct personality traits.(see motivations, personality characteristics
Figure -1) Schiffmen (2004) points out that
and belief systems are analysed
VALS was redefined to maximize its mathematically or statistically to
ability to predict consumer behaviour in
determine groups with substantially
1989.By using psychology to analyze and different attitudes, the result is a
predict consumer preferences and
psychographic segmentation. There are
choices, the current VALS system creates multiple motivations for a behaviour, and
an explicit link between personality traits
people in a specific demographic category
and purchase behaviour. have a wide range of attitudes. Using
The system identifies current and future psychographics can help communicators
opportunities by segmenting the consumer improve the quality and accountability of
marketplace on the basis of the personality their campaigns by zeroing in on the most
traits that drive consumer behaviour. VALS receptive audience for their message. At
applies in all phases of the marketing a time when communication overload is
process, from new-product development common among all audiences,
and entry-stage targeting to communicators must send relevant
communications strategy and advertising. messages to those who are most receptive.
Anandan et al, A Study on The Impact of ... 99
Morgan and Doran (2003) argue that and experiencers (more resources) and
psychographic segmentation, if used to makers( less resources) motivated by self
design and implement a communication expression.
strategy, can result in more effective and
efficient campaigns, and change the 1.2 Significance of Brand Loyalty
communicator into a strategist rather than The success of any brand largely depends
a tactician, moving his or her work from on the ability to retain the customers and
that of an inexact art to an exact science. maintain the brand loyalty towards it. All
The eight segments of VALS system range the customer relationship management
from the top with most resources and high and marketing strategies are aimed at
motivation, the innovators, to the bottom retaining the customers. Brands, which
part with least resources and low have cultivated ardent followers, are
motivation, the survivors. In-between are always successful. Their customers do not
Thinkers (more resources) and believers change brands for certain extra attributes
(less resources) motivated by ideals ; of competitor brand or some extra
achievers( more resources) and strivers( services or benefits. Brand loyalists are
less resources) motivated by achievement less price-sensitive and this reflects in the
VALS - Framework
INNOVATORS
High Resources
High Innovation
Primary Motivation
Ideals Achievement Self- expression
Low Resources
Low Innovation
SURVIVORS
100 Vilakshan, XIMB Journal of Management
brand’s equity also. Marketers have occurring before the behaviour. It occurs
always believed that brand loyalty would because the consumer perceives that the
lead them to customer relationships, brand offers the right product features,
which would enable them to make the image, or level of quality at the right price
best use of customer lifetime value. (Bill Nissim).
Traditional approaches to brand loyalty In the light of this information, it is clear
have stressed the importance of the fact that brand loyalty can be an important
that it is less expensive to maintain factor in the success of a company. Thus
existing consumers than to get new ones. brand loyalty enables long term standing
Consumers who are loyal to a brand are in the market place and reduces the cost
likely to spend more on it and also likely of acquiring new customers as well as the
to spread the positive word of mouth to minimising the cost of servicing for the
other consumers, thus becoming existing customers. The very concept of
advocates of the brand (Ramesh Kumar, loyalty seems to have become a dynamic
2004) one, with the marketing literature
presenting different aspects of the
Brand loyalty has a direct and obvious
concept.
impact on corporate profitability and
marketing efficiency. Strong brand loyalty Brand loyalty also enables the marketer
leads to improvements in the acquisition to sail through tough times and in
and retention of profitable customers, estimating the demand. Brand loyalty is
improves margins and market share, and an important asset contributing to a
usually improves the hit rate on new brand’s equity. Aaker(1991) describes the
product development via product and five levels of brand loyalty. The highest
line extensions. The concept of brand of these is the “committed buyer.” Robert,
loyalty may be viewed as a behaviour Reynolds and Kristy (2004) describes the
resulting from positive attitudes and “ultimate committed customer” within
perceived value.(National Textile Center, the category of “committed buyers,” as
Auburn University) the Harley-Davidson rider who wears the
Harley symbol as a tattoo.
According to Bloemer and Kasper (1995),
brand loyalty implies that consumers 1.3 Values and Life Style (Vals) and
bind themselves to products or services Loyalty
as a result of a deep-seated commitment. Emotions and values are related in
To exemplify this point, they rendered a consumption experiences. Allen, Karen
distinction between repeat purchases and and Kleine (1992) describe the Consumer
actual brand loyalty. In their published as the latent variable that links emotions
research, they assert that a repeat and values in consumption experiences.
purchase behaviour “is the actual re- Emotions supplement attitude in
buying of a brand” whereas loyalty predicting consumption behaviour. Pitts,
includes “antecedents” or a reason or fact Robert Jr. and Arch (1984) defines Values
Anandan et al, A Study on The Impact of ... 101
as an abstract and complex construct that 1.4. About the Newspaper Industry
can provide underlying continuity to Newspaper has always been one of the
behaviour.
most important providers of news and
Values may prove to be one of the most entertainment, despite the rise of the
powerful explanations of, and influences Internet and of telecommunications as
on, consumer behaviour. Clawson, and viable sources of information. People have
Vinson (1978) express the importance of different norms, values, and beliefs.
values in predicting the consumer Consequently, it is important for
behaviour that values can surpass the newspapers to be able to tie customers to
contributions of other major constructs them, to deliver something that satisfies
including attitudes, product attributes, the customer and to give the customer an
degree of deliberating, product incentive to be loyal.
classification, and life style. The value For this research study, the leading
expressed in a consumption experience is National level English newspapers
the result of the emotions that accompany operating in South India, namely, The
the consumption experience. According Hindu, The Times of India and The New
to Holbrook and Morris (1986) emotions Indian express have been taken.
and values are intertwined in
consumption. Values drive loyalty 2. PROFILE OF THE NEWSPAPERS
because they meet the deep-rooted 2.1 The Hindu
emotional needs of consumers.
The Hindu started in 1878 as a weekly,
VALS - short for values and lifestyles - is became a daily in 1889 and from then on
a way of viewing people on the basis of has been steadily growing to the current
their attitudes, needs, wants, beliefs, and
circulation of over 9 lakh copies and a
demographics. Marketers use VALS to
readership of over 3 million .It has
understand why consumers make the
achieved third largest English newspaper
choices they do. The more marketers
in the readership. It is printed in twelve
know about the target, the better they can
centres namely, Chennai (Madras),
design messages that resonate with the
target. By using VALS, marketers can Coimbatore, Bangalore, Madurai,
understand the motivations that stimulate Hyderabad, New Delhi, Vizag,
consumer behaviour, such as repeated Thiruvanathapuram, Kochi, Vijayawada,
purchase of particular product or brand Mangalore and Tiruchirapalli which are
or participating in a loyalty program (SRI connected with high speed data lines for
consulting Business Intelligence). Both news transmission across the country.
public television and radio of United The Hindu also publishes Business Line
States track customer loyalty using the (Business Newspaper), Front line (Fort-
VALS Psychographic segmentation nightly magazine) and sport star (Sports
system developed by SRI Consulting magazine). It has also published many
(Susan Myrland) books.
102 Vilakshan, XIMB Journal of Management
According to a Price water house Coopers In this study descriptive research design
(PwC) survey for the year 2003, (Business was followed in this research because the
World, 2005), it is estimated that the news information collected was intended to be
paper industry in India is around US$1.7 used to describe the customers profile
billion in 2003, and is expected to grow to based on the Values and life styles and to
around US$ 2.4billion in 2008. Publishers explore the relationship between their
in India are ready to spend over Rs 1, 000 lifestyle and brand loyalty.
Anandan et al, A Study on The Impact of ... 103
change leaders and are the most receptive social activity and an opportunity to
to new ideas and technologies. Innovators demonstrate to peers their ability to buy.
are very active consumers, and their
Times of India is having strong youth
purchases reflect cultivated tastes for image and also pioneer in making page 3
upscale, niche products and services. culture. It has a track record of attracting
Image is important to Innovators. They the youth through ‘infotainment’ (Source:
will read different categories of Agencyfaqs)
publications. It is evident that most of the
5.2.3 The New Indian Express
customers prefer the Hindu because of its
image. So they have extended their Segments Percentage of
preferences across the various categories readers in the
of publications such as magazines and segments
books. They have made the Business line, Strivers 25%
the Business Newspaper coming from The Innovators 20%
Hindu publishing house, as one of the Believers 35%
largest business newspapers in
Makers 15%
India(Source: Agencyfaqs) Strivers hold
the second major part of the Hindu Achievers 5%
customers, followed by Achievers and The New Indian Express is enjoying the
Survivors in that order. rapport with the segments of Believers
5.2.2 The Times of India and Makers. But, the Times of India and
the Hindu do not have the markable
Segments Percentage of presence in these segments. Believers are
readers in the motivated by ideals. They are
segments conservative, conventional people with
Strivers 45% concrete beliefs based on traditional,
Innovators 30% established codes: family, religion,
Experiencers 15% community and the nation. Many
Believers express moral codes that are
Achievers 5%
deeply rooted and literally interpreted.
Thinkers 5%
They follow established routines,
Strivers are the major bases of customers organised in large part around home,
of the Times of India followed by family, community, and social or religious
Innovators. organizations to which they belong.
Strivers are trendy and fun loving. The New Indian Express, which is having
Because they are motivated by the readership of 2, 20, 000 compared to
achievement, they favour stylish products above-mentioned two dailies (Saha, 2004)
that emulate the purchases of people with The New Indian express is having rich
greater material wealth. Strivers are active heritage of journalism and providing the
consumers because shopping is both a news in a conservative and traditional
106 Vilakshan, XIMB Journal of Management
40 brandover
the last ten The customers are showing the loyalty
occasions towards newspapers across all the values
and life styles segments. The segment of
The following attitude statements are Makers is less loyal relative to other
evaluated on five point likert scale
segments.
reflecting the
Experiencers, Believers and Thinkers are
Readers attitude toward their favourite
the segments showing hard-core loyalty
newspaper are:
(100%) towards their newspapers.
1. Highly reliable and credible source Innovators, Strivers and Achievers are
Anandan et al, A Study on The Impact of ... 107
With more than 2.4 million copies sold The Hindu has been steadily growing to
every day, The Times of India has been the current circulation of over 900,000
certified by the Audit Bureau of copies and a readership of over 3 million.
Circulations as having become the world’s Strivers hold the second major part of “The
largest selling English broadsheet Hindu” readers. The Hindu may start to
newspaper ahead of giants like USA Today target these segments. The Hindu may
and Wall Street Journal, Times London and come out with the sections or supplements
The Guardian. The Times of India is the dealt with entertainment, colorful pictures,
pioneer in creating the page 3 culture by and stories about the latest trends in
targeting the strivers. Innovators are fashions. The Hindu will get the
holding second major customer base of this Advertisements from the advertisers
newspaper. It can start to target the whose target audience are youth. Now The
Innovators as they extend their support Hindu is conducting the educational fair,
and preference to other category of career fair etc. Similarly it may conduct the
publications. But they don’t have fashion shows or sponsoring the fashion
Anandan et al, A Study on The Impact of ... 109
shows to get the firm place in the minds of (N.G.O) in promoting the civic awareness
Strivers. At the same time, it should not campaigns, such as, anti-pollution, anti-
deviate from its core content of smoking movement etc. Believers will
educational journalism so that it can retain show their hard-core loyalty as long as the
its Major segment of Innovators. New Indian express will stay on their
traditional image
7.3 Market Followers Starategies
7.4 Market Nicher Strategies
A market follower is a firm in a strong,
but not dominant position that is content In this niche strategy the firm concentrates
to stay at that position. The rationale is on a select few target markets. It is also
that by developing strategies that are called a focus strategy. It is hoped that by
parallel to those of the market leader, they focusing ones marketing efforts on one or
will gain much of the market from the two narrow market segments and
leader while being exposed to very little tailoring your marketing mix to these
risk. Market followers may follow two specialized markets, you can better meet
options the needs of that target market. The niche
should be large enough to be profitable,
1. Strengthen the loyalty of existing
but small enough to be ignored by the
customer base by delivering the core major industry players. Makers and
benefits to their segments. They Achievers are the faithful segments for
should strengthen the segment of Market Niches.
Thinkers and Believers as they are
insulate to competitors promotions. Newspaper with political alignment may
target the Achievers. Achievers are value
2. Expanding the customer base by consensus, politically conservative and
targeting the Brand Switchers. They respect the authority. They will prefer the
may target the Experiencers, strivers newspaper, which will support their
and strugglers who are brand political ideology.
switchers to expand the Market share.
Experiencers are impulsive and 7.5 Strategies For New Entrant
rebellious. They are variety seekers Experiencers are the vulnerable segment
(Source: Doug Box) for New entrant in the Newspaper
The New Indian express is having Market. Experiencers are young,
exclusive VALS segments such as impulsive and rebellious. They seek
Believers, Makers, Achievers .The other variety and excitement. They are
two newspapers do not have significant politically uncommitted and uninformed.
presence in these segments. So the New So they may not be loyal to any brand.
Indian express may utilise and tap the They can be targeted easily to boost the
potential among these segments. It can initial sales. Survivors can also be targeted
utilise its editorial section to address the for initial launch, if the Newspaper goes
societies’ need for justice. It can tie-up for low-price and consumer promotion
with Non-Governmental Organisations tools.
110 Vilakshan, XIMB Journal of Management
ANNEXURE – I
Rotated Factor Matrix (loading criteria > 0.5)
VALS Statements F1 F2 F3 F4 F5 F6 F7 F8
I like to take the challenge
of doing something that
I have never none before 0.797
I like to try new things 0.759
I like to learn things even
if they never be any use 0.746
I like to do the new and
different things 0.696
I like to dress latest fashion 0.831
I want to be considered as
fashionable 0.657
I follow the latest trends
& fashions 0.559
I dress more fashionably
than most people 0.554
112 Vilakshan, XIMB Journal of Management
VALS Statements F1 F2 F3 F4 F5 F6 F7 F8
I like being in charge
of a group 0.812
I consider myself as
an intellectual 0.666
I must admit that I like
to show off 0.478
I am always looking for thrill 0.770
I like lot of excitement in life 0.763
I crave for excitement 0.744
I am interested in only
few things 0.798
I make things of wood, metal 0.500
I make things to use 0.411
Just as my religion says the
world was created by god 0.803
The Indian government should
encourage prayers in schools 0.793
There is too much sex in
television 0.535
I like to learn about art,
culture and history 0.600
I like to look through hard
ware or automotive stores 0.696
I am interested in working
with engines 0.653
ANNEXURE II
Joint Matrix Showing Brand Loyalty Scale For VALS Segments
Segments Least loyal Less Loyal Loyal Strong loyal
Innovators 11.2 - 55.6 33.5
Strivers 4.5 13.5 27.2 54.4
Achievers - 16.7 33.3 50
Experiencers - 100 -
Survivors 25 - 25 50
Believers - - - 100
Thinkers - - 100
Makers 33.3 — 66.7 -