Hay Research - Introducing the Canadian Lifestyles Targeting System by LS Graphics

Are you s)ll in the dark about what your customers are really like? Would you like to get to know them be9er?

See the light!

Introducing the …

Canadian Lifestyles Targeting System

Say Goodbye to Demographics! Say Hello to Something New & Be3er!

The values, personali0es, media habits and many other aspects of the lives of Canadians have been proﬁled in over 500 variables. Everything, or almost everything, you need to know about who your customers or prospects really are has been captured in this database. This includes their: •  •  •  •  •  •  •  •  •

deﬁning values shopping styles psychographics personali6es media habits a9tudes to technology key brand usage life stage demographics

By including just 3 minutes of ques0ons in your next large quan0ta0ve study, you’ll be able to subs0tute your old demographics with something much richer and more meaningful. 2

How the System Works By geHng to know the ‘ideal types’ below you’ll quickly get to know your customers in new ways – ways which are much richer and more meaningful.

The system works by assigning each individual in your study to one of the 9 Canadian Lifestyle segments. Each segment in the Targe0ng System is fully proﬁled on all major measures. Now you can have something much more meaningful than simple demographics! Understand Canadians in the most important ways in which they are diﬀerent from one another. New insight and rich descrip0ons of your customers and prospects await! als Experien0

Achiev ers

Materialists

Homebodies

Idealists

Expressives

Survivors

Techies

Communitari

ans

The

Canadian Lifestyles

Materialists

Experien0als

I’m very protec0ve of my family.

Some would say I’m right wing.

I’m playing the game by my own rules.

If it’s fun, it’s for me.

What you own is key.

Ok I’m a liWle ﬂakey; I’m into me.

The guy next to me? Talk about a rut! Looking out for #1 is ﬁrst; community is second.

Material success? Huh?

I’m proud of what I’ve accomplished.

I wear the pants in my family.

Compared to me, everyone’s right-‐wing.

You should see the car I drive!

If it’s new, original, risky – I’m into it.

Tradi0on? What’s that?

Survivors

Expressives I’m preWy popular and like to network.

I really like to express myself to get recogni0on.

I hope you caught what I’m wearing.

I’m me, an original. Nobody can take that away.

Sure. I care what my friends think.

I’m into thrills (like Wendy up there) as long as they are the right kind. I won’t wear it if it’s not one of my brands.

My freedom is something that’s really important to me.

Life is full of challenges. I just smile.

I admit it. Material things are important to me.

Let’s just say I’d rather not talk about my ﬁnances.

If I had a chance, I’d make major changes in my life.

People get what they deserve . Absolutely.

Targeting System Communitarians I’m a tradi0onal person and respect marriage.

Idealists

I like being a member of my community.

I’m a bit of a thinker and like ideas I also like books, music.

I think of myself as being very caring and friendly.

I’m lucky to have so many friends around me. I’m not ambi0ous for myself. Family and community is what it’s about for me.

Having principles is really important to me in life.

I’m deﬁnitely on the led on social issues.

There are beWer things in life than material possessions.

Owning things? That’s less important for me.

Techies I’m deﬁnitely into the virtual world.

I like diﬀerent cultures and cultural experiences.

Ask me something about technology.

I’m knowledgeable and highly competent in my work.

I’m preWy tradi0onal but I s0ll love my devices.

Achievers

I’m ac0ve with many interests.

There’s a lot of social injus0ce out in the world.

I’m not much of a joiner

Home’s good. It’s where my devices are.

I balance my own ambi0on with a dedica0on to community.

I’m deﬁnitely into the environment and nature.

Homebodies

I’m really conﬁdent and know how to bring people together.

I live life by the book, according to tradi0on.

I set high goals for myself.

It’s important to be a good person.

My life is centered on my family and home.

In my community I feel safe and secure.

I’ve got lots of ideas. People oden take my lead.

My family background is important to me.

Oh. And I know how to have a liWle fun too.

I not too involved in things outside my home. I’m a reliable and caring person.

Much richer than demographics! demographics! Much richer than

Materialists §  I’m into tradi0onal success and going as far and as fast as possible in life. §  I consider myself a successful person. §  My children are mostly grown (and re0rement’s coming). §  I’m preWy well-‐oﬀ ﬁnancially so bargain hun0ng is a waste of 0me for me. §  I’m a ‘fan’ of brands such as Amex and Coors Light. §  People call me right wing. §  I like sports and game shows (and I might be Francophone).

ExperienAals

Expressives

§  If its going to be a great experience, count me in. §  That guy on my right is deﬁnitely not me! §  Yes, I’m rebellious.. Authority,….yuck! §  Risky things, thrills, something novel, that’s me. §  Some of my favourite brands are : L’Oreal, H&M and La Sensa. §  You could say that, next to me, everybody is right wing. §  I’m (a liWle) worldly and crea0ve too. §  I like MTV a whole lot and like sharing videos.

Survivors

§  Sure, I consider myself hip and cool.

§  I’m having fun (don’t men0on work).

§  My schedule is crazy.

§  (Also, don’t men0on my ﬁnances and credit card balance, please!)

§  I’m into fashion and brands like Hugo Boss and Banana Republic.

§  My key goals: paying oﬀ debts and geHng a beWer job.

§  Yes, I’m preWy ambi0ous.

§  I’m likable and make a point of being friendly.

§  Me and my friends are also into team sports. We like to share videos.

§  OK, so I’m a liWle impulsive.

§  I’m also into MTV Canada. §  I prefer Coke and drink Dasani (and you might ﬁnd me at Subway). §  I like to get new devices and show them to my friends.

§  Being a unique and original person is important to me. §  I also value my masculinity/ femininity. §  I like game shows, country music, Capital One, Wal-‐Mart and, of course, McDonalds.

…It’s easy to get to know your customers.

Communitarians §  I’m preWy ac0ve in a tradi0onal community life. §  I’m very empathe0c towards others and I enjoy volunteering. §  But I also have an entrepreneurial side, being an ac0ve sort of person. §  I’m a preWy good housekeeper. §  I like cooking shows and soaps. §  Don’t men0on things like cell phones to me. I’m lost with the new technology. §  I like Swiss Chalet and oden go to Sears and Home Hardware.

Achievers

Techies

Idealists

Homebodies

§  I’m good at my §  §  I’m a liWle job but the cyber unconven0onal. world is a real hobby…OK, §  I define success §  I’m outgoing, obsession for me. §  differently than ambi0ous and most p eople. confident. §  These super confident types §  I’m definitely into §  §  I love my job (and like the guy on the environment am good at it). my right – not and nature. exactly m y s tyle! §  I lead a very §  OK. So I’m a liWle ac0ve life. §  I’ve got young on the ethical and §  kids o r a m j ust artsy side. §  In terms of star0ng a family. brands, I go for §  I like nature shows, high-‐end mostly §  People s ay I ’m cultural shows and (like Starbucks). preWy intelligent. documentaries. §  I’m one of the §  I’m not that big on §  first to get a new §  Of course, I’m one o f t he fi rst status brands (but device. with that new don’t mind Old gadget. Navy). §  I make a preWy §  good salary. §  When it comes to §  People say I’m buying stuff, preWy intelligent. §  I’m good at online i s a b ig (Maybe it’s balancing my deal for me. because I like own goals with ideas.) the needs of §  I r esearch o nline others. before I buy. §  I’m for all life has to offer.

I’m a liWle older and my life is preWy seWled. My life is about home and family. I’m into my community and church and tradi0onal values. I’m very un-‐ comfortable with marriage arrangements outside of the tradi0onal ones. I like cooking shows and home renova0on ideas. Games shows, tradi0onal media and Vision TV… that’s me.

Why This System Is Different About the Canadian Lifestyles TargeAng System

The System is based on one of the most thorough inves0ga0ons of the values, general aHtudes and psychographics of Canadians ever conducted. It has much in common with the Schwartz Values System used in Europe and with the VALS 2 system employed in the U.S. As with the VALS 2 research, the Canadian Lifestyles Targe0ng System employs over 500 measures, a large number of which (140) are used in the segmenta0on algorithm. The original study consisted of 2400 interviews and one hour of interviewing conducted in 2 stages. The Canadian Lifetstyles Targe0ng System has a number of advantages over other approaches. The system: •  Is new (2012) and contains up-‐to-‐date informaAon on new media and the adopAon of new technologies •  Employs a unique and comprehensive set of 77 values which deﬁne life-‐moAvaAons •  Has exisAng data on over 200 brands •  Is aﬀordable and easy-‐to-‐use

Why Understanding Consumers’ Fundamental MoAvaAons Is So Important Generally, as marketers, our understanding of our customers is based on the purchase drivers speciﬁc to our category. Within this framework, demographics and life-‐stage informa0on -‐ and some0mes category-‐based segmenta0on systems -‐ cons0tute the most important ways we have of understanding who our customers are. However, we all know that consumers show consistent paWerns of purchase across many product categories. The same person who buys high-‐end clothing brands or liquor brands also buys high-‐end brands of all types. These general paWerns add up to a certain lifestyle or style of living. When we don’t know what these deeper mo0va0ons are, we tend to see our consumers more narrowly, as “consumers” rather than as “individuals”. Suppose, however, that you could see these broader paWerns. Would this help? We believe it would since you would understand not only that they do want high-‐end brands or quality brands or low-‐ priced brands but exactly why this is so important to them.

Beneﬁts of the Canadian Lifestyles TargeAng System

The idea that, especially now, we need to beWer understand how brands ﬁt into people’s lives was a key insight pioneered by Susan Fournier, then of the Harvard Business School. “People don’t just buy 1 brands, they buy lives”, was how she put it. The Canadian Lifestyles Targe0ng System is designed to help you see these broader paWerns in a rigorous way and to help you iden0fy the underlying life-‐ mo0va0ons which drive the choices that Canadian consumers make. By idenAfying these fundamental moAvaAons in your own customers and prospects, you will be able to communicate with them at a deeper, more meaningful level. The system described here -‐ Expressives, Idealists, Achievers, Survivors, Experien6als, Homebodies, Techies, Materialists and Communitarians – is the result of our research and development over a number of years. Each of these groups possesses some unique set of fundamental life-‐mo0va0ons which shapes their interests as consumers -‐ and also their interest (or lack of it) in your brand. 1. Fournier, Susan (1998). Developing Rela6onship Theory in Consumer Research. Journal of Consumer Research 24 (March), 343-‐373. (The most frequently cited ar0cle in the history of the Journal of Consumer Research.)

It’s Simple to Use Use the System in 3 ways:

1) If we have your brand in our database…

We may have your brand already on ﬁle. If so, we can do proﬁling directly for you.*

2) Incorporate our typing tool into your next segmentaAon or U&A Study. You can include our ques0ons – they take about 3 minutes -‐ into your next quan0ta0ve survey. We then use our modeling tool to assign your respondents to the appropriate segments. This has the powerful advantage of linking this system to all your usage informa0on.

3) We design a complete study for you.

We can design a complete study for you that includes our modeling algorithm. (We have extensive experience in segmenta0on work across North America.)

The following graphics illustrate just some of the output from the targeAng system. * Or if your brand is in the 2013 Canadian Financial Services Switching Study. 9

Some Sample Output

Expressives Achievers

BRAND Y

FUNDAMENTAL VALUES Canadians were asked how important each of the following areas were in their life.

Experien0als

Brand Y

The a3ached represents about one-‐third of the total number of values assessed. Brand Y users’ results have been indexed against those for all Canadians.

§  Brand Y users are much more likely than

all Canadians to value being popular and having inﬂuence.

§  They also value being physically

§  They are not parAcularly content with their life as it is (index 81) and are certainly not religious.

110 101

Building relationships and bringing people together Being content with your life, not needing to change

a3racAve (index 125) and wanAng to go as far and as fast as possible (index 123)

Respecting the traditions of your family background Believing that obtaining a financially comfortable life is important

81 97

Finding a way to contribute to society

109

Having a deep concern for habitat, for animals

117

Seeking adventure, travelling and new experiences Having respect for people in positions of authority

Enjoying the beauty of art, visual arts, the performing arts

107

Finding just the right career

107

§  They seek excitement and enjoy thrilling new experiences (index 122).

Correcting the social injustices of life

119

Being passionate about Canada

DEMOGRAPHICS Total Canada Age (mean years):

Brand Y

46 yrs

42 yrs

Gender ( male):

49%

56%

H/H Income ( mean $):

$67K

$96K

Assets (mean $):

$298K

$450K

Graduated University

22%

31%

Own Home:

67%

78%

Born in Canada:

83%

76%

Feeling that all people in the world are really of one family

122

Seeking excitement and thrilling new experiences

115

Really achieving something that people respect and admire

Believing that there are no absolutes, that everything is relative

122

Be interested in supporting charities and charitable causes

113

Being entrepreneurial, creating something of value

123

Trying to go as far and as fast as possible in life

103

Being a champion of minority rights

119

Being liked and popular with friends Relating to God in a personal way Being physically attractive

80 125 138

Having some degree of popularity or influence Gaining a measure of power and wealth in life Accepting only the truths of science Believing the strongest will win so you have to be the best

105 121 120

BRAND Y

Psychographics 1 93

I like to do the right thing

PSYCHOGRAPHICS

I tend to be loyal to my friends

I’m a very independent sort of person

I like to do well in every aspect of life

I’m dedicated to a sensible balance in my life

I like being humble and modest

111

I like to live life to the fullest

§  Brand Y users are much more interested in

112

I have high standards

sporAng events and concerts than are most Canadians (index 174)

I’m a private sort of person

My life revolves around my home

82 92

I like to save up and pay cash for things

§  They also over-‐ index on looking-‐good,

104

I’m driven to succeed in everything I do

being a3racAve, being outgoing, networking and making friends easily.

I’m a bit of a worrier

101

Always eating healthy, nutritious meals is key

I’m a very traditional sort of person

I’m a very rational person

§  Note, also, how they over-‐index on taking

130

I set tough goals for myself

pride in owning things (index = 153).

I’m not one who likes to impress people

128

Looking good and being attractive are important

§  They seem also to be conﬁdent in their

141

I’m outgoing and make friends easily

own opinions, denying that they are swayed much by the opinions of others (index = 57)

131

I make a point of being fit and exercising

115

I’m very ambitious, driven to succeed

108

I’m still trying to find myself, who I am 82

I make impulsive decisions

I’m not much of a joiner

§  Brand Y users are risk-‐takers who like

133

I’ll pay more for environmentally-friendly products

extreme thrills (such as bungee jumping, index = 136).

139

I love networking and having many friends I hate taking risks

67 77

I’m easily bored

§  They also think of themselves as having

I sometimes feel that people look down on me

fairly culAvated tastes (index = 138).

138

People say I have highly cultivated tastes

153

I take pride in owning things that have some status I’m very swayed by what others think of me

57 79

I’m really into diet foods

Psychographics 2 92 96 97 88 81 102 78 105 84 118 121 80 92 115 112 94 130

I was taught that you should work hard It’s important to live in safe surroundings I was taught to respect the older generations I’m happy in my usual routines I like to live a fairly quiet life Pride in Ownership/ Status

Outgoing, make friends easily

Networking With Friends

I love novelty, variety and new experiences

Cultural Taste

Growing up my family didn’t have money I like to stay in touch with my community I was brought up in a very traditional community I find new languages and cultures stimulating I like to seek out exciting new experiences The security of my neighborhood is a concern Traditional values are the best

Like Crowds

Extreme Thrills

InﬂuenAal ConnecAon

Volunteer Work

I like to be part of the community I’d like to explore the Far East I’m part of a fairly close-knit community I do volunteer work on a regular basis

174

I like to attend sporting events with large crowds

134

It’s important to cultivate influential connections I often feel guilty

I love extreme thrills such as sky diving

57 136

BRAND Y

Married/living with someone

LIFESTAGE

Looking to pay off debts

116

Working full-time

Have grown children

Retired

115

Working part-time

Have a young family (under 13)

§  Brand Y users are much more likely than other Canadians to be concentraAng on their career. Many (younger individuals) are looking for their next home or condo.

128 191

Concentrating on my career

Happily single

157

Looking to retirement

127

Looking for a life partner, a new connection

Looking for a job/ in- between jobs

§  Some are recent grads and some are

129

Single but looking to settle down

students.

§  Note that Brand Y also a3racts some

Have a fair sized mortgage Wanting to changing my job or occupation

173

Have teenagers

120

A student

152

Looking to buy my first home or condo

older customers. Brand Y users also over-‐indexed on “looking to reArement”.

105

Recently married (last few years)

209

Looking to buy my next home/condo

Divorced for a while

Widowed

About to start a family

146

Recent graduate with a year or two of work Recently divorced (last few years)

TECHNOLOGY I just couldn’t care less about all the new gadgets and technologies out there

§  Brand Y users are very interested in

the display value of the new technologies. However, the technical aspects of the new devices seem to be of less interest.

I ﬁnd the new technologies overwhelming

People say I’m really a 'tech-‐savvy' sort of person

103

People come to me for advice about sodware, new apps, and what to buy

106

I spend a lot of 0me on social media

§  For example, Brand Y users were

like Canadians as a whole in terms of ‘being tech-‐savvy”, but they strongly over-‐indexed on “being the ﬁrst to get a new device” and wanAng to “impress people with their knowledge of the new devices” (index 154 and 139 respecAvely).

Talking about and being involved in new technologies is what I’m all about

101

I’m embarrassed by how liWle I know about smart phones, computers, social media and so on

105

I’m usually one of the ﬁrst to get a new technological device or gadget I like to impress people with the my knowledge of the latest technologies

154 139

BRAND Y

SHOPPING STYLES

100

I like good prices and quality plus style too

What I want is style and quality at low prices Before I buy, I like to weigh all the pros and cons

I shop around to get the price and quality I want

92 111

I tend to be really loyal to some brands

The ajtudinal diﬀerences noted above clearly correlate with their shopping styles and shopping preferences.

I really care only about quality and value

113

I tend to trust the old brand names

I work hard to get the very lowest price

100

I hate waiting in line to be served

§  First, they over-‐index in an important

I almost, always read flyers before I shop

way on preferring “stylish/ trendy brands”. (Brand Y was such a brand).

I'll wait till what I want goes on sale

I like to save up and pay cash for things

I like to get in and out of the store quickly

§  They also over-‐indexed on ‘usually

I tend to buy whatever brands are on sale

buying top-‐of-‐the-‐line’.

I’ll go out of my way just to get a better price

§  InteresAngly, they claimed to be more

aware of adverAsing and brands in general than most Canadians. (Brand Y is a relaAvely new brand which has been broadly adverAsed.)

I do a lot of research before I buy

108

I check prices on the internet before I buy

117

Getting rewards points influences where I shop

I often shop at dollar stores

105

I watched a lot of TV growing up

134

I prefer quality brands even if they cost more

§  They also like shopping and say that they

123

I love to experiment and try different brands

look hard for brands that “ﬁt their personaliAes”.

136

Some brands I could just never do without.

122

I often think about what to buy next

§  They are not price-‐driven. For example,

they clearly denied that they buy ‘whatever brand is on sale’ or that ‘they struggle to stay within their budget’.

Often I can’t afford things unless they are on sale

I struggle to stay within my budget

142 135 135 129

I look hard for brands that fit my personality I feel excited when shopping & buying new things When I was young, I was pretty brand crazy I really like shopping

98 113

Getting help in the store is really important to me I buy on the spur of the moment

I don't really like advertising

127

I don’t really care which brand I buy

I want the brands that I buy to express who I am

160

I like advertising and hearing about brands

I am buying more on-line these days Prefer Stylish Trendy Brands

Buy Top of the Line

Prefer Quality Brands

Really Like Shopping

165

I’m always telling my friends about my latest

107

Sometimes my credit card gets out of control I tend to buy the cheapest brand no matter what

22 164 187 170

I’m more aware than most of advertising I prefer stylish, trendy brands and retailers I usually buy top-of- the- line Love to Try Diﬀerent Brands

Rewards Inﬂuences Where I Shop

Check Internet Prices

I try to buy as much as I can on-line

Buy on Spur of Moment

When I shop I usually have kids in tow

59 59 108

Bargain hunting is a waste of time I admit I often buy things just to impress people

BRAND Y

PERSONALITY

Ambitious Organized Worldly Successful Confident Modern Looking Good Risk Taker Original Easy Going Competitive Sophisticated Active or Fit Sexy Rich Friendly Hip and Cool Dynamic/ charismatic Young Fashionable Fun Playful Trendy Leader Rebellious Popular Good Listener Stylish Comfortable Community-minded

What about their personaliAes? Brand Y users were shown 65 personality images online (these were also labeled) and were asked to select the ones which most applied to them. The chart on the right compares Brand Y’s overall self-‐image with that of Canadians as a whole. (The actual percentages represent diﬀerences between Brand Y’s self-‐descripAons and the results for all Canadians.)

§  Compared to everyone else, Brand Y users see themselves as being more ambiAous, organized, worldly, successful, conﬁdent, modern, looking-‐good. and a risk-‐taker.

§  The traits that didn’t seem to ﬁt were:

tradiAonal, principled, thriny, nurturing and trustworthy. (They likely possessed these qualiAes but did not see them as being as central to their personaliAes.) Knowledgeable Creative Full of Ideas Intelligent Unique Life of the Party Artsy Very Masculine Likable Courageous Pillar of the Community

Organized

Worldly

Talkative

Successful

Wise One to Watch Unconventional Very Feminine

0 0 0 -‐1 -‐1 -‐2 -‐2 -‐2 -‐4 -‐5 -‐6 -‐7

Ethical Family-Oriented Environmentally conscious Honest

Conﬁdent

Modern

Caring

Risk Taker Looking Good

Reliable On a Diet Stimulating Trustworthy Nurturing Thrifty Principled

Traditional

14 14 12 12 11 11 10 9 8 8 8 8 8 7 7 7 7 7 7 6 6 6 6 6 5 5 5 5

4 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1

Health-conscious

Ambi0ous

20 15

-‐9

BRAND Y

MEDIA HABITS (1)

General Media Habits Indexed Hours Internet at home on any device

102

Watching TV

Internet for work

162

Listening to the radio

112

Playing video games on any device

126

Streaming video online

168

Internet on your phone

205

Reading newspaper

138

Reading magazines

150

Playing video games on your phone

145

Indexed Favourite Shows Indexed

§  Brand Y users over-‐index on most media, especially on accessing the internet from their cells and streaming videos online.

§  Given their extensive media

involvement, only one acAvity, watching TV, showed some weakness compared to all Canadians.

§  Brand Y users – both male and

female – were very much into music videos and females users were into fashion/ beauty programs.

News Shows Suspense and Crime Shows Movies Comedies Dramas Live Sports Documentaries Science Fic0on Shows Nature Shows Cooking shows Soaps Home Improvement Reality Shows Game Shows Business shows Talk Shows Entertainment Shows Music Videos Fashion/Beauty Opera, Ballet Performance

§  Brand Y users were twice as likely

170 134 115 119 97 61 142 172 79 195 191 148 380 291 83

Internet AcAviAes Indexed

§  In fact, many types of

programming were on their play list of favourites, including business shows, talk shows and live sports.

109 113 122 109 124

Visit social media web sites

108

Visit magazine or newspaper sites

119

Download video or music

146

Read other people’s blogs

143

Comment on message boards or

Indexed Share video through social as other Canadians to parAcipate Par0cipate in online communi0es in online communiAes and spent Write your own blog, or contribute twice as much Ame on their Mobile Device Held mobile devices. Indexed Don’t own a mobile phone Minutues per Day

152 213 177

161

Cell phone with Internet access Cell phone without Internet

156

58 39 197

About Hay Research Interna0onal Hay Research International is a research insight company based in Toronto, Canada. One of the company’s core capabilities is large databases and big picture research such as segmentation studies and usage and attitude work. The company places special emphasis on the integrated, strategic insight gleaned from its research. With a hands-on management team and organizational structure, Hay Research International brings senior research expertise and strong analytic resources to every assignment. Our team of experienced marketers and statistical experts develop a deep understanding of your business, enabling us to work with you as your research partner. Through its field subsidiary, National Response, Hay Research International also conducts online research and operates a 30 station CATI centre in Toronto.

OUR SEGMENTATION SYSTEMS Brand user groups and markets are often more highly differentiated by their life-attitudes and product needs – when taken together – than by their product needs alone. This key insight leads to unique segmentation systems which more powerfully differentiate brand customers and markets. Ask us how we can combine the specialized knowledge of your category with the motivational insight derived from large databases such as the Canadian Lifestyles Segmentation System. The result? More powerful and persuasive targeting and messaging approaches.

Brands meet needs… but they also fit lives . Hay Research International 36 Eglinton Ave West, Suite 503 Toronto, Ontario M4R 1A1 Tel: (416)422-2200 Web: hayresearch.com E-mail: rob@hayresearch.com or ahay@hayresearch.com 16