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Using LOV To Understand Consumers
Using LOV To Understand Consumers
Lynn R. Kahle Patricia Kennedy Research on social values has been shown to be beneficial in market segmentation. This article describes the List of Values (LOV), a methodology that may allow comparison and contrast of values. Details of the methodology and recent research using it are described, and data analysis strategies are discussed. their values and enact their lifestyles is supported by hundreds of published correlations, although not many on VALS itself.23 The VALS proponents, it has been said, have convinced the advertising community that value research is important. This contribution is significant. Although philosophers have known about the importance of values at least since the ancient Greeks, and social scientists have known how important values are for at least 50 years, too often business scholars have not recognized how important values are to individuals, to society, and to social change. Given the relationships of values to topics as diverse as regionalism15 and managing
Introduction
VALS (Values and Lifestyle Segmentation) has contributed much to marketing theory.23 And that is not just a Mark Antony opening. The VALS idea that consumers buy products in part to reflect
Lynn R. Kahle is an Associate Professor of Marketing at the University of Oregon. He earned his Ph.D. in Social Psychology at the University of NebraskaLincoln. He has been a postdoctoral fellow at the University of Michigan's Survey Research Center and a faculty member in Psychology at the University of NebraskaLincoln and the University of North Carolina at Chapel Hill. Dr. Kahle has published research in such journals as the Journal of Personality and Social Psychology, Journal of Consumer Research, Public Opinion Quarterly, and Child Development. Topics of his research include attitudes, values, consumer behavior, and communication. His most recent books are Attitudes and Social Adaptation: A Person-Situation Interaction Approach (Pergamon) and Social Values and Social Change: Adaptation to Life in America (Praeger). He and Donald Tull are completing a text on marketing management, to be published by Macmillan. His organizational affiliations include the American Marketing Association, American Psychological Association, and The Association for Consumer Research. He currently edits The Communicator, the newsletter of APA's Division of Consumer Psychology. Patricia Kennedy is a doctoral student at the University of Oregon. Before entering the doctoral program, she was an executive with an advertising agency in Portland, Oregon. She has published research in Advances in Consumer Research and Current Issues and Research in Advertising.
employees,7 more marketers ought to attend to the VALS implication that values matter. The importance of social values has not been overlooked entirely by marketing researchers. It has been hypothesized that values directly influence interests, time-use activities, and roles, which in turn influence consumer behaviors. 6 Other authors have discussed the means-end chain of causation in consumer categorization processes, in which products serve as the means for achieving valued ends.8, 25 A variety of specific consumer behaviors have been related to values, such as mass media usage,5 cigarette consumption,7 purchase of computers,20 charitable contributions, and other topics ranging from automobiles to deodorants.22, 23
do consumers purchase anything exclusively for the functional aspects of the product. Rather, they hope to attain some greater benefit from the purchase. Food, for example, is purchased on the basis of certain attributes, such as taste and visual appeal, but the nutritional value is ultimately a crucial aspect of the purchase decision. How that food fits in with a person's lifestyle in part dictates the purchase. For another example, few people purchase a car exclusively for transportation. One current ad describes a vehicle as a mechanism of expressing self-identity, "Who you are," as opposed to the function,"How you get there."
Measuring Values
The List of Values (LOV)4, 10, 16 could serve as a key value measurement instrument in the study of consumer similarities and differences. In the first study in which it was used, respondents to this 1976 LOV study10, 26 (2,264 noninstitutionalized adults selected from a probability sample of the co-terminous United States) were asked, among other things, to select their first and second most important values from a list of nine. This list was culled from Rokeach's24 list of eighteen terminal values, Maslow's 19 hierarchy of values, and various other contemporaries in value research. The nine values are Self-respect, Sense of Accomplishment, Being Well Respected, Security, Warm Relationships with Others, Sense of Belonging, Fun and Enjoyment in Life, Self-Fulfillment, and Excitement. Because few respondents selected Excitement as their first choice, this category has usually been collapsed into Fun and Enjoyment. (Individuals who did rank Excitement first most often selected Fun and Enjoyment second.) Table 1 gives the percentage of American respondents who selected each value as most important in 1976 and 198612, 18 and offers a brief description of each value segment.4, 10, 12 Table 2 presents a form in which the question could be asked in a typical English language survey.9
Table 2 Q u e s t i o n n a i r e Format for t h e List of Values The following is a list of things that some people look for or want out of life. Please study the list carefully and then rate each thing on how important it is in your daily life, where 1 = not at all important, and 9 = extremely important. Very Unimportant 1. 2. 3. 4. 5. 6. 7. 8. 9. Sense of Belonging Excitement Warm Relationships with Others Self-Fulfillment Being Well Respected Fun and Enjoyment of Life Security Self-Respect A Sense of Accomplishment Very Important
Now reread the items and circle the one thing that is most important to you in your daily life.
Values in principle provide more information than mere demographics. Examples of this fact can be found from the information gained in the LOV study. Consider the demographically similar groups of Sense of Accomplishment and Selffulfillment. Both share demographic similarity in educational, economic, psychological, and social prosperity. But raising a child has a quite different meaning for these two groups. Taking a child from infancy to adulthood is a major accomplishment, but it does not necessarily contribute to selffulfillment. For another example, women favor two values more than men: Sense of Belonging and Warm Relationships with Others. Yet the psychological benefits of a reciprocal, sharing lifestyle, characteristic of women who endorse warm relationships with others, contrasts sharply with the life of the demographically similar women who submerge themselves into being possessions of their family, "belonging" to it. Women who endorse Sense of Belonging seem relatively more neurotic and frustrated.10
illuminate the nature of LOV by contrasting it with alternatives. Values and Lifestyle Segmentation (VALS). SRI International sponsors a values and lifestyle segmentation program known as VALS.19 Respondents are presented with a set of about 30 demographic and attitudinal questions. On the basis of their responses consumers are classified into nine lifestyle groups. Although VALS has shown some utility, a previous study reveals that it relies heavily on demographic variables and does not relate to consumer behaviors as closely as do other systems, such as LOV.16 In this study the LOV related more closely to consumer behavior in virtually all cases. This result occurred even though we used criterion items that had been used to validate VALS and even though we nominalized LOV (rather than using it as a more powerful interval scale) to make it comparable to VALS, which uses nominal level data. VALS relies excessively on demographics, and many of the specific questions in VALS have cultural bias aimed toward the United States. For example, questions about corporate and governmental policy have different implications in Europe and in the United States.2, 3 A VALS question about the Bible may confuse respondents in Far Eastern countries where the Judeo-Christian traditions
are not as common as in the United States. LOV is far easier to administer and is not tied to proprietary data analysis algorithms that effectively block independent validation of the system.15 Until the proprietary system is made public, little information will be produced from independent scholars to evaluate the validity of VALS. In advertising, a major advantage of LOV over VALS is that the exact phrase from a survey can go into an ad. Some agencies may not desire to follow this process, but in principle it certainly is possible to use a phrase such as "Fun and Enjoyment in Life" in an advertisement.
values for respondents to assess. The "magic number of 7 (+/-2)"which is how many items the normal human adult can hold in short-term memoryimplies that the 9-item LOV is viable for storage in short-term memory but that the RVS exceeds people's normal short-term memory capacity. Rokeach24 deals with this criticism by noting that, although the first discrimination requires 18 choices, the second requires only 17, the third 16, and so on, making the "average" task a discrimination from among 9 items. If you must leap across a series of crevices and your leaping ability is 9 feet, the fact that on average the crevice openings are 9 feet wide will provide little comfort to your next of kin when they realize that some openings are 6 feet and some 12 feet. The LOV also avoids or lessens several other methodological problems related to the RVS,4 such as the tendency to respond to items in a socially desirable rather than a candid manner. Most notably, because VALS uses nominal analyses and the RVS uses ordinal analyses, both violate a major requirement of the most powerful and advanced techniques of causal analysesthat variables be measured at least at the interval level. Although many interesting inferences can be made using nonparametric techniques, parametric statistical procedures are generally the preferred means of analysis because the parametric techniques capitalize on additional information. LOV makes it possible to gather data that will circumvent this problem by allowing the potential to use interval-level rating scales.
When values are used to predict interval-level criterion variables, it is also possible to use the values as levels of a factor in analysis of variance, if sample size is sufficient.
Regression Analysis
Since the first study, we have developed several approaches to measurement that differ from the previous national LOV study10 in several ways. The most notable methodological difference is the measurement of values on both a nominal and an assumed interval level, in which an equal interval is assumed between numbers on the rating scale, rather than only on a nominal level as in the earlier study (i.e.,"Rate the importance of each of these values on a scale from 1 to 9" as well as the earlier study's "Which of these values is most important to you?"). This refinement in measurement allows us to conduct analyses with statistics that assume interval-level data, such as are used in constructing causal models, because interval data, but not nominal data, satisfy the minimal assumptions for the most powerful and advanced of these analysis techniques. We then are able to utilize the important methodological advances from the past two decades by collecting the data in a suitable way.
in place of regression. A disadvantage of correlational analyses is that they often assume linearity, which may not be characteristic of values in some contexts; however, for data in which the dependent variable is measured on an interval scale and the independent variable on a nominal or ordinal scale, the eta coefficient can be used. This measure does not assume a linear relationship between the variables.
Causal Analysis
Causal modeling has numerous advantages, including isolation of the separate contributions to the effects made by each predictor variable, measurement of both the direct and indirect effects that one variable has upon another, and decomposition of the correlation between two variables into a sum of simple and compound paths.1 Scholars can examine the causal processes underlying the observed relationships among variables and estimate the relative importance of alternative paths of influence, thus developing clearer and more precise theory about relations among predictor variables. This technique has recently been applied to studying values.9 The items from the LOV were factor analyzed and the three resultant factors, or segments, were used as exogenous variables in a LISREL model designed to predict who would shop at a natural food store. It was found that values "cause" attitudes, which in turn "cause" shopping behavior.9
Segmentation Analysis
All of the above-mentioned techniques could be used in segmentation analyses. The LOV is one variable among many that one would want to consider in market segmentation; Value segmentation is in fact a special case of needs/benefit segmentation. People often purchase products for the benefit of value fulfillment. But even if values seemingly have little relationship to a product category, any segmentation study ought to consider a variety of ways in which segmentation could divide up people with different marketing needs. Mixed metaphor marketing is probably the most effective approach to segmentation. In mixed metaphor marketing the segments are based on optimal divisions of the marketplace, even if one needs diverse types of variables to complete the classification, and even if the results lack theoretical elegance. For example, consider the sales of a burglar alarm. One might want to define
one segment based on values (people who value security), one segment based on income (upperincome people), and one segment based on demographic combinations that increase probability of victimization (people who live in middle-class neighborhoods near high-crime neighborhoods).
Managerial Implications
The LOV will not always be the optimal segmentation instrument, but it will often help one to understand the nature of the consumers one wants to reach. Most marketing efforts will be more effective if the role of values is considered, and LOV provides one effective mechanism for assessing this role. The meanings and motives behind many consumer activities depend upon values. For example, people who value sense of belonging may donate money to a medical charity because they want to protect their family, whereas people who value security may donate for selfprotection. Without considering the function of values in a certain context, one may be missing an important influence on behavior. Marketing managers have found that in order to serve a diverse market profitably, they must segment that market on the basis of information about the individuals who make up the market. The more complete and accurate the available information, the more effectively the marketing manager can segment the market and reach those individuals who are most likely to be interested in the product, service, or idea being offered. Adding value and motivational information to information on demographics can greatly enhance the effectiveness of any segmentation effort, from the product development phase to the end of a product's life cycle. Managers can come to understand where a product, service, or idea fits into a person's lifestyle and guiding principles. The marketing manager must also ascertain whether the product, service, or idea will achieve the desired position in each market segment. The
marketer must discover how the product, service, or idea is perceived in the marketplace. Information on consumers' values can be important in this respect, because how a product is perceived can differ as a function of these values. For example, for segmenting the market effectively and positioning the product, service, or idea, information on consumer values is quite useful. Tying a product to a value can enhance a product's worth. Pricing policy, as well as distribution strategy, must be consistent with product position; therefore these decision areas also could be more effectively developed on the basis of information on consumers' values. For example, people who value security may desire low prices in order to save money for future problems, and people who value accomplishment may prefer high prices and conspicuous consumption. Marketing managers must also develop a promotion strategy. In all areas of promotion, such as advertising, package design, publicity, sales promotions, and sales force activities, value information can be incorporated. Many media vehicles have inherent connections to values. An aspect of using the List of Values (LOV) in gathering information on values of consumers is that the exact phrase used on the questionnaire can then be used in promotional areas. For example, if the target segment is found to value security, then the word "security" can be used in advertisements and packaging, or the sales force can use the word in their presentations. This aspect of using LOV is a significant improvement over previous values research instruments. Value information is an important factor in all aspects of developing an effective and consistent marketing strategy and, along with demographic information, can give the marketing manager a significant advantage in both the domestic and the international marketplace. Value change discovered from environmental scanning can forewarn of new trends.
End Notes
1. Asher, H. B., Causal Modeling. Beverly Hills: Sage 1976. 2. Beatty, Sharon E., Pamela Homer, and Lynn R. Kahle, "The Problems with Using VALS Internationally: Evidence from an Application of the Empirical Mirror Algorithm," in Michael Houston, ed., Advances in Consumer Research, Vol. 15. Ann Arbor: Association for Consumer Research, in press.
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3. Beatty, Sharon E., Lynn R. Kahle, Pamela Homer, and Anders Giltvedt, "A Cross-Cultural Exploration of the VALS Typology," in Robert E. Pitts, Jagdish Sheth, and Umberto Valencia, eds., Cultural and Subcultural Influences in Consumer Behavior, forthcoming. 4. Beatty, Sharon E., Lynn R. Kahle, Pamela Homer, and Shekhar Misra, "Alternative Measurement Approaches to Consumer Values: The List of Values and the Rokeach Value Survey," Psychology and Marketing, 2 (Fall 1985), 181-200. 5. Becker, Boris W., and Patrick E. Connor, "Personal Values of Heavy Mass Media Users," Journal of Advertising Research, 21, 1981, 37-43. 6. Carman, J. M., "Values and Consumption Patterns: A Closed Loop," in H. Keith Hunt, ed., Advances in Consumer Research, Vol. 5. Ann Arbor: Association for Consumer Research, 1978, pp. 403-7. 7. Grube, J. W., I. L. Weir, S. Getzlaf, and M. Rokeach, "Own Value System, Value Images, and Cigarette Smoking," Personality and Social Psychology Bulletin, 10, (1984), 306-13. 8. Gutman, Jonathan, "A Means-Ends Chain Model Based on Consumer Categorization Processes," Journal of Marketing, 46 (Spring 1982), 60-72. 9. Homer, Pamela M., and Lynn R. Kahle, "A Structural Equation Analysis of the Value-AttitudeBehavior Hierarchy," Journal of Personality and Social Psychology,54, April 1988, 638-46. 10. Kahle, Lynn R., ed., Social Values and Social Change: Adaptation to Life in America. New York: Praeger 1983. 11. Kahle, Lynn R., Attitudes and Social Adaptation: A Person-Situation Interaction Approach. Oxford, U.K.: Pergamon 1984. 12. Kahle, Lynn R., "The Values of Americans: Implications for Consumer Adaptation," in Robert E. Pitts, Jr., and Arch G. Woodside, eds., Personal Values and Consumer Psychology. Lexington, Mass: Lexington Books, 1984. 13. Kahle, Lynn R., "Values Segmentation Debate Continues," Marketing News, 18, no. 4 (1984), 2. 14. Kahle, Lynn R., "Social Values in the Eighties: A Special Issue." Psychology and Marketing, 2 (Winter 1985), 231-37. 15. Kahle, Lynn R., "The Nine Nations of North America and the Value Basis of Geographic Segmentation." Journal of Marketing, 50 (April 1986), 37-47. 16. Kahle, L.R.,Sharon E. Beatty, and Pamela M. Homer, "Alternative Measurement Approaches to Consumer Values: The List of Values (LOV) and Values and Lifestyle Segmentation (VALS)," Journal of Consumer Research, 13 (December 1986), 405-9. 17. Kahle, Lynn R., and Debra C. Eisert, "Social Values in the American Workplace," in Eric G. Flamholtz, Yvonne Randle, and Sonja Sackman, eds., Future Directions in Human Resource Management. Los Angeles: UCLA Publications, 1986, pp. 203-23. 18. Kahle, Lynn R., Basil Poulos, and Adjay Sukhdial, "Changes in Social Values in the United States During the Past Decade," Journal of Advertising Research, 28 (February-March 1988), 35-41. 19. Maslow, Abraham H., Motivation and Personality. New York: Harper, 1954. 20. McQuarrie, Edward F., and Daniel Langmeyer, "Using Values to Measure Attitudes Toward Discontinuous Innovations," Psychology and Marketing, 2 (Winter 1985), 239-52. 21. Mitchell, Arnold, The Nine American Lifestyles. New York: Warner, 1983. 22. Pitts, Robert E., Jr., and Arch G. Woodside, eds., "Personal Value Influences on Consumer Product Class and Brand Preferences," Journal of Social Psychology, 119 (1983), 37-53. 23. Pitts, Robert E., Jr., and Arch G. Woodside, eds., Personal Values and Consumer Psychology. Lexington, Mass: Lexington Books, 1984. 24. Rokeach, Milton, The Nature of Human Values. New York: Free Press, 1973. 25. Reynolds, Thomas J., and Jonathan Gutman, "Advertising is Image Management: Translating Image Management to Image Strategy." Journal of Advertising Research, 24 (1984), 27-38. 26. Veroff, Joseph, Elizabeth Douvan, and Richard A. Kulka, The Inner American. New York: Basic Books, 1981.
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