A Lifestyle Analysis of New Zealand Consumers

A Lifestyle Analysis of New Zealand Consumers

Sarah Todd, Rob Lawson & Fiona Faris, Department of Marketing, University of Otago, PO Box 56, Dunedin Abstract The results from a 1995/6 New Zealand consumer lifestyles study are presented. Profiles of the resultant seven segments are given, and comparisons are discussed with a previous lifestyles survey conducted by the researchers in 1989. Keywords: New Zealand, Lifestyle Analysis Introduction Consumer lifestyles are a well accepted basis for market segmentation. The term style of life was coined over 50 years ago by Alfred Adler to refer to the goals that people share and the ways they use to reach them (Lazer, 1963). In consumer behaviour, lifestyles reflect different modes of living and the patterns of consumption that tend to accompany them. As lifestyles offer a more comprehensive view of behaviour and the motives that underlie many of the purchases made by consumers, they are regarded as advantageous for market segmentation. This is particularly so when comparing them to demographic bases for segmentation, which are still the most commonly applied methods. Constructing and profiling consumer lifestyles through AIO (attitudes, interests and opinions) schedules, demographics and product usage has been established since the 1970s (Plummer, 1974) and was first applied in New Zealand in 1979 (Mueller-Heumann et al., 1979). The authors of the latter study noted that the profiles developed received little interest from the marketing community. In the 1970s, New Zealand was still a very closely regulated economy. Many New Zealand companies were limited in their degree of market orientation and had poorly developed marketing functions as compared to production and finance. The political and economic reforms of the 1980s were accompanied by a new marketing focus and, by the end of the decade, there was sufficient interest for an updated consumer lifestyles segmentation study (Lawson et al., 1990). That study identified six major New Zealand lifestyle groupings and was the first to receive widespread acceptance in New Zealand. Since 1989, there have been a number of other industry-based studies identifying different segments and some, like the values segments produced by Roy Morgan Research, have shown similar underlying dimensions to those uncovered in the 1989 study (Lawson et al., 1996).

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After several requests for updated information, the University of Otago decided to repeat the study at the end of 1995. Sponsorship was obtained from three companies to supplement competitive funding obtained from the University of Otago Research Grants Committee.1 Results of that survey are presented here with comparisons and a discussion regarding the major changes since 1989. Methodology 1. Questionnaire Construction The questionnaire was based on that used for the 1989 study. Twenty questions were removed from the opinions section of the earlier study since they failed to show any discrimination among the previous lifestyle groupings, and new questions were added to reflect the political and social issues of the 1990s. Additional questions were also incorporated to take account of products and shopping methods recently made available with the advent of new technologies. These items were derived from individual discussions with consumers, marketing managers and market researchers. Two versions of the questionnaire were pre-tested before a final version, comprising 509 items, was accepted for the main survey. 2. Data Collection The questionnaire was administered via a mail survey to a random sample of 10,800 individuals throughout New Zealand, using a commercial mailing list. The letters were personally addressed, and reminder letters were sent out one week after the initial mail out. Two types of incentive were included in each questionnaire to encourage responses. Firstly, a total of eight items ranging from videotapes through to a breadmaker were provided by two of the commercial sponsors. Secondly, the researchers offered to donate one dollar to charity for every completed questionnaire returned. Respondents were allowed to nominate the charity from one of three listed at the end of the questionnaire.2 Eight hundred and sixty questionnaires were returned as undeliverable and 3773 fully completed questionnaires were returned for analysis, giving an effective response rate of 37%. This was regarded as highly satisfactory given the length and complexity of the questionnaire. 3. Sample Representation The sample was checked for representativeness against estimated population figures provided by New Zealand Statistics. Two slight biases were identified in terms of age and ethnic composition. Gender, income and geographic distribution were excellent. With respect to age, there was a slight underrepresentation of those aged 65 years and over, though no age group was overrepresented in the sample. The most likely explanation for this bias is the length and complexity of the questionnaire, which may have been off-putting for some older people. Regarding ethnic composition, the sample appears underweighted for Maori and Pacific Island people but it is difficult to be pre-

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cise because of the patterns of response to this question. Amongst the classification information, ethnic origin is the most controversial question and 5% of the sample identified themselves as being of other origin and then specified themselves as New Zealander. This protest response is not unknown amongst both Maori and Pakeha people and, interestingly, in our sample it was restricted to the 20-35 age group. Difficulty with the English language in the context of a large selfcompleted questionnaire is seen as one reason why there was a lower than expected response from Pacific Islanders. In order to check for non-response bias, a sample check was carried out in the suburbs of Roslyn and Wakari in West Dunedin. Based on census data profiles, these suburbs are representative of the larger New Zealand population in terms of age, income distribution and education. Three hundred questionnaires were delivered to every fifth household selected on a random walk through the areas. The person in the household over 18 years old with the last birthday was asked to complete the questionnaire. Responses from this sample were then checked with the rest of the sample and also the Dunedin responses from the main sample. Particular attention was paid to the clustering variables for the segmentation analysis. Significant differences (at p<0.05) were identified for only seven of the 171 AIO variables that were used for clustering. This is less than would have been expected to occur through random variations, and no particular pattern could be ascribed to the variables or the direction of the differences. 4. Analysis The segmentation was achieved using k-means non-hierarchical clustering techniques on SPSS for Windows. Initially a six group solution was investigated to parallel the results obtained in 1989. Cluster centres were saved and reclustered until a stable solution was obtained, a process which required 13 iterations. However, the segments obtained bore little similarity to the 1989 groupings, and contained a number of inconsistent features which made them difficult to interpret. In light of this, a seven group solution was examined. Again, random starting points were taken as cluster centres, saved and then reclustered until the number of cases changing cluster was minimised. After nine iterations the seven cluster solution stabilised and, when profiled, provided more easily understood segments with a better explanation of product usage and consumption than had been evident in the six group solution. Furthermore, comparisons to 1989 were possible with five of the groups clearly identifiable as similar to the segments obtained in that study. Discriminant analysis confirmed that the seven group solution was preferable. Correct classification occurred for 87.29% of the cases, with 62% of cases having at least 0.8 probability of being correctly classified. This latter figure rises to 80% if 0.7 probability is used. In contrast, only 42.2% of cases had a probability of 0.8 or better of being correctly classified for the six group solution. A check on an eight group solution showed the formation of two small

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groups of around five per cent each. Even with trends towards micromarketing, such segment sizes are not regarded as substantial enough for the small New Zealand market and further analysis on this number was not proceeded with. Cluster sizes were then weighted on the basis of age and ethnicity, to compensate for the aforementioned under-representation of older New Zealanders and those from ethnic minorities. Overall, the effect of the weighting on individual clusters was minor, with changes in segment sizes ranging from 0.3% to 2.7%. Results As described above, the cluster analysis and ensuing profiling process resulted in a seven segment solution being chosen. The major characteristics of the final seven segments are summarised in Table 1, together with their relative sizes. While the major characteristics indicate the distinguishing features for each segment, a fuller profile provides more insight into their respective attitudes and behaviours. The Active Family Values People (15.5%) The Active Family Values People comprise just under one sixth of the New Zealand adult population. They are characterised by values and activities which revolve around traditional established codes, specifically the famTable 1: Segment Characteristics Active Family Values People - 15.5% Family and community focus Traditional principles Positive outlook Homebodies Conservative views Reflective and nostalgic Socially concerned Progressive and egalitarian Enjoy variety and diversity Observe rather than partake Accepting of status quo Content Self-oriented Value free enterprise Actively ambitious Family survival focus Politically conservative Determined Outer directed Conformist Feel life is a struggle

A Lifestyle Analysis of New Zealand Consumers

Conservative Quiet Lifers - 13.5%

Educated Liberals - 9.7%

Accepting Mid-Lifers - 17.1%

Success-Driven Extroverts - 16.4%

Pragmatic Strugglers - 14.7%

Social Strivers - 13.0%

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ily, church and community. Active Family Values People find bringing up children rewarding and satisfying, and have a close family life. They are very positive about, and largely content with, the current state of the country and are more likely to oppose New Zealand becoming a republic. Active Family Values People hold traditional social, moral and religious principles. They support marriage and are more inclined to feel that churchgoers make better citizens. They are also more likely to believe in traditional gender roles and in areas such as censorship being more closely regulated. Being strongly supportive of the family unit, Active Family Values People spend a great deal of time doing things with their children, helping them with schoolwork, and engaging in family outings. The remainder of their leisure time is spent on active interests within the community and church. Active Family Values People are interested in health and purchasing healthy food, and generally feel positive about the entire shopping experience. They are low consumers of radio and television, although they have an above average interest in documentaries, Holmes, and Coronation Street. Their printed media preferences are weighted towards Readers Digest, NZ Gardener and daily newspapers. Active Family Values People are high on ownership of kitchen appliances, musical instruments, investments and household insurance. They also show an above average ownership of clothes driers, overlockers and original prints. Members of this segment are spread across all ages, although slightly skewed towards those 55 years of age and over. They represent a higher proportion of large families, with three or four dependent children still living at home. Most are well educated and in (or retired from) occupations which are relatively high in terms of social status. They are middle income households with one main income earner. The Conservative Quiet Lifers (13.5%) The people comprising the Conservative Quiet Lifers are the oldest in the study. These individuals are mostly retired and widowed, and live a passive, solitary existence, which revolves around reflection, simplicity and subsistence. The majority own their home debt-free, and have low education and income levels. Conservative Quiet Lifers are more inclined in small towns throughout New Zealand. Being nostalgic about the past, Conservative Quiet Lifers are inclined to think that things were better in their grandparents days. They hold conserva-

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tive views, such as believing that moral standards are declining, that the young have too many privileges, and that there should be less change in society. They also believe in authority, discipline and traditional gender roles, and feel there should be stronger regulations regarding advertising and business gains. While opinionated, these individuals prefer to reflect on the issues they feel strongly about, rather than actively pursue them. Conservative Quiet Lifers feel they have little control over their lives or the lives of others. They prefer to follow other individuals rather than voice their own concerns. Conservative Quiet Lifers perceive that they are financially worse off than they were a year ago, and receive the least enjoyment from shopping. They are content with the little they own, and striving for success, ambition, or the better things in life is of limited importance to them. They are resistant to change, and content with the familiar. Modern high tech products, exotic foreign foods and new restaurants hold little appeal. In terms of consumer behaviour, they are least likely to own modern household items and financial services, or use modern banking services. They are unlikely to purposefully shop for foods which are healthy, sophisticated, convenient or ready-to-eat. The solitary existence of Conservative Quiet Lifers is evidenced by the passive, home-based activities and interests in which they partake. They are loners who do not like being surrounded by lots of people or forming new friendships, and who prefer to work on their own. Their interests include gardening, doing crosswords, attending church, watching television and listening to the radio. They are least likely to use air travel, to engage in entertainment such as social outings, or to attend cinemas, art galleries or museums. They are heavy viewers of Coronation Street and also regularly view Holmes and daytime soap operas. They indicate an above average readership of New Zealand Womans Weekly and TV Guide, as well as free suburban newspapers. The Educated Liberals (9.7%) The Educated Liberals are a group of New Zealanders comprising nearly one tenth of the total adult population. They are sophisticated individuals with a wide range of interests, and are concerned with social issues and open to change. Overall, they are generally satisfied with, and feel in control of, their lives. They are characterised by their strongly individualistic, confident, and progressive outlook on life. The beliefs of Educated Liberals are distinctively open-minded and autonomous. Members of this group show their progressive and egalitarian attitudes through their support for numerous social

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and political issues, such as supporting the environment, race and gender equality, and a desire for the government to be more supportive of those less fortunate than themselves. Their liberal views are also evident in their strong desire for self-government, their belief that workers should have more say in the management of businesses, their dislike for free enterprise, and the value which they place on trade unions. The typical Educated Liberal is a very highly educated, professional female on an above average income, who prefers life in the big city to that of the country. In line with this, a high proportion live in primary urban areas. They value their independence and are less inclined to like following instructions, preferring instead to do things their way. They hold more liberated views regarding the disciplining of children, and are less inclined to feel that children should be the major emphasis in parents lives. Concern about life and living in the future combines with a strong interest in maintaining a healthy body through healthy eating and regular aerobic exercise. The importance placed on nutritious, healthy, and organic foods is reflected in their requirements for product information. They place less emphasis on the role of advertising in the purchase decision, and are not very concerned about the appearance of products. Educated Liberals thrive on richness and diversity. They like travelling and exploring new places, enjoy new exotic foods and are generally interested in activities and ideas which stimulate their intellect. For Educated Liberals, going out for dinner with friends is a regular part of their lifestyle. Their level of education fosters an interest in cultural activities such as theatre, libraries, museums and art exhibitions. Food interests not only reflect their interest in health, but also their lifestyle, with the number of on-therun meals they consume indicative of the active lives they lead. Educated Liberals are heavy readers of books and magazines, with the latter being weighted toward lifestyle publications such as Next, North & South, Metro and More, as well as Time and Listener. They are the lowest consumers of both radio and television, although many are regular viewers of Shortland Street. (The popularity of this programme with this group is possibly attributable to its cult status over the years within the tertiary student population). The majority of Educated Liberals are single, or living with their partner, with two-thirds having no children. Many are at the stage in their lives where they are just beginning to equip themselves with material resources. Their consumption patterns and ownership reflect their single status, and the renting situation in which the majority live. They have low ownership of household items and above average ownership of personal items, such as compact disc players, personal computers, internet connections, slatbeds, and original prints. The forms of banking employed are progressive, with a high use of telebanking, cash cards and automatic payments indicated. Edu-

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cated Liberals are also more likely to have financial loans and overdrafts. The Accepting Mid-Lifers (17.1%) These individuals are characterised by a general acceptance of their lives and society. This is demonstrated by a lack of strong feeling regarding political and social issues. They gain limited satisfaction from their job, friendships and bringing up their children, and have less ambition and achievementoriented aspirations than those of other groups. Rather than partake in life, these individuals prefer to observe it. Although generally acceptance of the status quo, Accepting Mid-Lifers are more inclined to hold that government spends too much on social welfare, and are less likely to support the contribution made by trade unions. Nor do they support conservation issues. Accepting Mid-Lifers place limited value on spending time with others, seemingly content with their own company. It is not as important for them to be with lots of people, to work with others, to form new friendships or to like friends to show affection towards them. Although happy with the emphasis placed on sport in New Zealand, they are unlikely to actually participate. Instead they indicate high viewing rates of sport on television. Accepting Mid-Lifers are least likely to be concerned about their appearance, with their attitudes and eating habits reflecting their lack of concern about their weight, and sugar and cholesterol intake. Taste is generally one of the more important criteria for selecting food products. They do not make a special effort to eat natural, organic or unprocessed foods, nor do they compare labels to select the most nutritious food. Accepting Mid-Lifers eating habits are generally traditional, but they are also frequent consumers of novelty bars and oven-ready pizza. Also, they have the highest consumption of beer at home. Accepting Mid-Lifers receive little enjoyment from shopping. They are not cautious shoppers, and are less likely to purchase an item as a consequence of price discounts or superior product quality. Neither are they very willing to experiment with new and different products. They do not feel there is a need for advertising to be more closely regulated, nor that there is too much sex being used to sell products. This group is the least brand and shop loyal. There is an above average ownership by this group of home entertainment items such as video cassette recorders, compact disc players and more than one television. Their eating habits are reflected in their high ownership of certain kitchen appliances, namely microwaves, deep fryers and electric frypans. They also own gas barbeques and trampolines for the children. A high proportion of Accepting Mid-Lifers have a mortgage on their home and own life insurance. They are also high credit card users. A Lifestyle Analysis of New Zealand Consumers

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Demographically, Accepting Mid-Lifers are weighted towards European males, of New Zealand or United Kingdom descent. Although represented in all age categories, this group is slightly weighted towards people in the 30-44 year old bracket. The majority are married or living with a partner, with half the households having two adult income earners, and at least one dependent child at home. In relation to the total sample, Accepting MidLifers have average incomes, education, and occupational levels. The Success-Driven Extroverts (16.4%) Success-Driven Extroverts are ambitious, active, independent people who feel in control of their lives and destiny. They possess abundant resources and possessions, which reflect their desire to attain the better things in life. They are motivated by success, not only in their careers but also socially. Success-Driven Extroverts like to live it up and socialise, and are less attracted to simplicity and natural living. This group is driven by a strong urge to impress, paying careful attention to their image and general appearance. Success-Driven Extroverts are leaders, who enjoy life in the big city. They firmly believe in free enterprise, are generally positive about New Zealand business, and support user pays. They are more inclined to be opposed to government intervention, together with most government spending, and see limited value in trade unions. Success-Driven Extroverts are generally satisfied with the quality and performance of products, and with the prices paid for them. Ultimately, it is quality which determines whether or not Success-Driven Extroverts will purchase an item. They support the notion of advertising and are more inclined to enjoy advertisements than other groups. Success-Driven Extroverts are interested in sporting and entertainment activities. Physical exercise, while important for keeping fit and losing weight, also provides an additional means for socialising with others, through activities such as golf and sailing. Dining with friends is a fundamental part of the Success-Driven Extroverts social life, whether throwing a dinner party or going out to a new and exotic restaurant for a meal. Other interests include attending movies and theatre, going on family outings and home-based activities such as watching videos, playing music, and undertaking home renovations. Success-Driven Extroverts also frequently engage in air travel, both domestically and internationally. Alcohol is an important aspect of their lifestyle, evident in their indicating they often go out for a drink and regularly consume alcohol at home as a means to relax after a hectic day. Healthy and sophisticated eating habits are important to Success-Driven Extroverts. Due to the busy lives they lead, takeway and convenience meals are also frequently consumed, and the more convenient forms of banking, such as automatic payments, cash cards and telebanking are adopted.

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Success-Driven Extroverts are high income professionals, with one in five self-employed. The family is generally a small and close-knit unit, with the children brought up in a relaxed and non-restrictive environment. The household is supported by a double income, and is more financially secure than it was one year ago. Success-Driven Extroverts find it easy to deal with financial matters, despite the above average financial loans and mortgages which are required to sustain their lifestyle. They possess a portfolio of investments, such as real estate, bonds, shares and superannuation schemes. This group indicates a high ownership of most modern gadgets, including home entertainment equipment, outdoor leisure items, and time-saving kitchen appliances such as dishwashers and microwaves. They are also above average users of plastic cards, and own medical, life and personal effects insurance. They do not consume a great deal of radio or television, although they are above average viewers of sport programmes and comedies. In terms of print media, they read More and Metro magazines, and daily newspapers. Demographically, the vast majority of this group are between 20 and 39 years of age. Success-Driven Extroverts are well-educated and are generally married, either with no dependants, or with one or two children living at home. The Pragmatic Strugglers (14.7%) The Pragmatic Strugglers comprise nearly one-seventh of the New Zealand adult population. They are characterised by their liking of practical, simple and natural living. Although they possess modest resources, and are more likely to feel that they get a raw deal out of life, they attempt to make the most of the little they have. Pragmatic Strugglers are generally dissatisfied with the current state of New Zealand, holding particularly strong views regarding immigration and business practices. Their financial constraints foster their above average price sensitivity, with price and major criterion when shopping. Pragmatic Strugglers are generally dissatisfied with the prices they pay, the service they receive and the quality of the product they buy. They are less likely to feel advertising provides consumers with essential information. Pragmatic Strugglers interests revolve around practical activities related to the home and family. They have an above average interest in arts and crafts, working on the car, doing crosswords, and saving recipes from print media. They are high users of the more progressive banking services, such as cash cards, telebanking and automatic payments, and are less likely to use cheques and credit cards. Pragmatic Strugglers regularly consume snack foods such as novelty bars and chewing gum, and frequently have takeaway meals for lunch. Their media interests include TV Guide, and womens magazines such as NZ

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Womans Weekly, Australian Womans Weekly and Womans Day. They are frequent radio listeners, and enjoy viewing television movies, action/drama programmes, Shortland Street, comedies, and other soap operas. Pragmatic Strugglers do not own many material possessions, with those they do own reflecting their low economic status and family focus. They are least likely to own major household items, instead owning items such as trampolines, bikes and waterbeds. This group is also unlikely to have credit cards, investments or superannuation, and are low owners of cheque accounts and insurance. Pragmatic Strugglers are skewed toward females under 35 years of age. Although almost one-thirds have at least one dependent child at home, the majority are unmarried, and thus do not represent a traditional nuclear family. They are low in terms of income and educational qualifications and overrepresented in the lower occupational categories. This group also contains a small, but above average number of Maori and other ethnic minorities. The Social Strivers (13.0%) Social Strivers are characterised by a conflict between their perceived ambitions and their actual circumstances and achievements. Their outlook is generally pessimistic. They are more inclined to believe that they get a raw deal out of life and that people are out to take advantage of them. Social Strivers are concerned about the opinions and approval of others, and express conservative, cautious and conforming, but often conflicting, views. They are more inclined to feel that people have it too easy in New Zealand, that children should be brought up with respect for authority and that there should be more discipline in schools. They believe that things are changing too fast these days and call for a return to their grandparents standards. Social Strivers are less positive about New Zealand and believe that overseas is more interesting and more advanced. They are generally dissatisfied with the government, its level of spending, NZ business practices and immigration policies. Social Strivers appear to enjoy shopping and are thoughtful, rational consumers, who favour New Zealand products and well-known brands. Although concerned with product quality, ultimately price is more important. However, they also claim to be brand and shop loyal and to value shops which provide personal service. This group is also more inclined to find advertising valuable and enjoyable, yet suggest that consumers would be better off if it was eliminated. They are conscious of and concerned about their appearance and weight, yet this concern is not reflected in their eating habits. Social Strivers regularly consume roast meals, cooked breakfasts and ice creams, and feel that dinner is incomplete without dessert.

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Traditional codes such as religion, family and the community are important to Social Strivers, and these form the basis of their interests. They regularly help children with schoolwork, work in the garden and on the car, save recipes, attend church and perform community work. It is important to Social Strivers to attempt to acquire the things they want or that they think they need. This is reflected in their high ownership of certain modern kitchen appliances, specifically rice cookers, electric woks and juice extractors. However, many of the possessions they desire are beyond their reach. Social Strivers frequently view television, listen to the radio and read magazines. Among the latter, TV Guide and womens magazines such as NZ Womans Weekly, Womans Day, New Idea and Australian Womans Weekly are read most. They also regularly read free suburban newspapers and Readers Digest. In terms of television viewing, Social Strivers are the biggest watchers of soap operas, documentaries and Holmes, and are above average viewers of Coronation Street and sports programmes. Demographically, this group, while represented in all age categories, is weighted towards individuals over the age of 45 years. Social Strivers are lower on educational qualifications and household income, with a large proportion unemployed, working part-time or retired. Many are divorced or widowed, and over half have at least one dependent child at home. This group contains the largest proportion of Maori, Pacific Islanders and other ethnic minorities. Discussion To understand the changes that have occurred, the segments described in the previous section can be compared with those obtained in 1989. Before direct comparisons are made, one way of providing an overview and some integration of the groups is to borrow from the structure developed to portray the VALS 2 segments. The underlying assumption of the scheme is that the segments are primarily based around one of three dimensions (namely status, actions and beliefs), and that their lifestyles are influenced by the resources available to them. This latter variable is a combination of education, capital and income. The VALS 2 structure was chosen primarily because of its widespread familiarity, but it is also worth noting that structures based on very similar theoretical frameworks have been used to successfully compare values and lifestyles segments in other western developed countries (Homma & Ueltzhoffer, 1990). The lifestyle segments were positioned in the VALS 2 structure by an iterative process involving revising a series of expert judgements by 10 people until agreement had been reached. Perhaps the best analogy is to a Delphi process where the judgements of other experts were fed back to individuals until placement had been agreed. As is discussed below, the only segment

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that caused any difficulty in this process was the Accepting Mid-Lifers who were not finally agreed upon until the fourth iteration. As shown in Figure 1, in 1989 there were two segments that could be associated with each dimension, to varying degrees. These plots can only be regarded as approximate but they do summarise how the different groups lie in terms of both the principle dimension of their lifestyles and the level of resources that accompany them. The diagrams also help to understand many of the continuities and some of the major changes. To aid this process further, responses to all of the identical questions in the 1989 and 1995 surveys have been compared. Significant differences were observed for a number of items across the total sample. As well as using t-tests to test for significant differences in the individual variables means, factor analysis was used to aid in the interpretation of the main areas of difference. Analysis of the t-tests, together with a check on the factors from 1989 and 1995, suggests the changes observed can be categorised into four groups:1. attitudes towards the self; 2. opinions about the family; 3. social standards; 4. New Zealand as a country in which to live. Some of the changes in these four areas have taken place very much across the whole, or majority, of the population and consequently have not affected the segmentation pattern to a great extent. Two such areas are opinions about the family and attitudes toward New Zealand as a place to live. With respect to the latter area, for example, responses in 1995 show much greater approval for New Zealand ideas and products, and a definite shift in beliefs about the necessity to look overseas for future trends and improvements. This change seems almost universal and only one of the segments, the Social Strivers, still indicates that we need to look overseas for improved means, ways and opportunities. As Figure 2 shows, the Social Strivers are one of the two groups primarily associated with status. Generally, both the status groups are direct continuations from those identified in 1989, although there is a change in name for one of these groups (namely, the Envious Strivers have been renamed as Social Strivers). While still primarily concerned with status, the Social Strivers display fewer signs of envy and conflict than their 1989 counterparts and consequently the new term is considered more appropriate for this study. The Success-Driven Extroverts have changed little in nature since 1989 but they have increased dramatically in segment size. In 1989, they were the smallest of six segments identified, at approximately 9% of the population. The fact that the segment has almost doubled in size is reflected in significant overall shifts in what New Zealanders say about themselves as people. More people place an emphasis on individual success, novelty, ambition, developing a career, and leadership.

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Figure 1: (adapted from VALS 2, SRI International, Menlo Park, CA) Otago University 1989 Consumer Lifestyle Segments

Status Actions

A Lifestyle Analysis of New Zealand Consumers

Envious Strivers

Success Driven Extroverts

Active Family People Friendly Quiet Lifers

Beliefs

Traditional Values Family People

Educated Greens

Resources
Such underlying trends are also visible in the profile of the Educated Liberals, another segment which values independence above conformity. In Figure 2, they are one of three groups placed primarily on the belief dimension. The predecessor of this group is clearly evident in Figure 1, the Educated Greens. Again, a name change is appropriate for this group. In 1989, the green issue emerged as the prevalent concern. The 1980s were a time of agitation on environmental issues, while the early 1990s saw many initiatives to begin to address CFCs, CO2 emissions, deforestation and nuclear disarmament. In 1997 the effectiveness of these initiatives may be open to question but, from our survey, the green issue is not as dominant a concern as previously. Rather, it has become one of many social issues about which the Educated Liberals express strong views. This interpretation has been endorsed by several New Zealand marketing managers, who emphasise that current concerns of this group focus more on education, health and welfare than the environment.Another group plotted on the belief dimension in Figure 2 that has been renamed is the 1989 segme shift they have made within the framework, the result of them now seemingly guided more by their be-

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Figure 2: (adapted from VALS 2, SRI International, Menlo Park, CA)

A Lifestyle Analysis of New Zealand Consumers

Otago University 1995/6 Consumer Lifestyle Segments

Status

Social Strivers

Success Driven Extroverts

Actions

Pragmatic Strugglers

Accepting Mid-lifers

Educated Liberals

Beliefs

Conservative Quiet-lifers Active Family Values People

Resources
liefs than their actions. Formerly denoted by the term friendly, this segment is now more inward-focused, and indicates less participation in social and neighbourly activities. These were strong features in the 1989 profile of this group, which gave them a positive and definite activity orientation. In 1995, the most striking aspect of their profile is the influence of their strongly held beliefs and attitudes while their activities are dominated by solitary, at-home pastimes. Hence, they have been renamed as Conservative Quiet Lifers. Two possible reasons have been considered for this change. Firstly, Conservative Quiet Lifers express an increased concern for security and this is compatible with increasing crime rates in the 1990s, especially crimes involving violence. The second reason may be financial in nature. While the income profile of this segment is unchanged from 1989, changes to health care and less faith in government support may mean that some social activities have been curtailed to support these more basic needs. The third segment placed on the beliefs dimension in Figure 2 is the Ac-

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tive Family Values People. In its strong belief foundations, with its emphasis on traditional and religious values, this group seems to be derived from the Traditional Values Family People. In terms of behaviour, this segment now shows more social and community involvement than they did previously, more in line with some of the 1989 Active Family People. The new name is an attempt to communicate this change. This group, together with the Conservative Quiet Lifers, is one of two segments that hold to more traditional belief sets and do not seem to have changed their attitudes regarding the factor identified earlier as social standards. This involved opinions about the relevance of marriage as an institution and gender roles within society. As a whole, the sample shows more acceptance of change and less rigidity on these issues. The most noticeable difference between the two figures is the disappearance of the Active Family People. Some of this group may have emerged into the new Active Family Values segment, but the strongest link to any of the 1995 segments is perhaps with the Pragmatic Strugglers. This is one of the two completely new segments defined in 1995. Analysis of their attitudes suggests many similarities with 1989s Active Family People. However, unlike the 1989 group, the Pragmatic Strugglers are a segment low in resources and comprising many sole parent families. Their new position in the overall framework may well reflect changes to Domestic Purposes Benefit and Housing Support since 1989 and their appearance as a new cluster is probably an indication of the increasing division of resources in New Zealand society.3 The demise of the Active Family People as a segment is also consistent with the general changes observed in the whole sample regarding the family. In 1995, New Zealanders appear to value their family more than they did in 1989. They are more likely to rate children as being the most important part of their life and stress the importance of spending time with children and being together as a family. However, on examination of behaviour patterns, it is obvious that this is not actually occurring. That is, respondents indicated that they did in fact spend less time together as a family. This trend is similar to those noted in other countries such as Australia (Mackay, 1993). The rapid adoption of many consumer technologies, like microwaves and videos, has facilitated this family fragmentation since they allow more flexibility in behaviours and allow the household to live more as a group of individuals, rather than a collective unit. The other new group to emerge from this analysis is the Accepting MidLifers. It is difficult to see similarities between the Accepting Mid-Lifers and any of the earlier studys segments. They are a segment that marketing managers have readily recognised when presented with descriptions of the clusters. One explanation is that they represent many average New Zealanders and the fact that they were not identified as a separate segment in 1989 was simply because they were spread across all the other groups. To support this notion, it is notable that this was the most difficult segment to position in

A Lifestyle Analysis of New Zealand Consumers

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A Lifestyle Analysis of New Zealand Consumers

terms of the three key dimensions used in the VALS 2 structure. Their place on the activity dimension is determined almost by default. Many activities are fairly passive but the segment is most certainly not directed by a strong sense of either status or an internal belief system. They are predominantly middle-class, middle-aged and comfortable. Conclusions It is generally accepted that the pace of change in human society has never been faster at any time in history than it is at present. Such change means that it is necessary to update lifestyle segmentation analyses to accommodate new directions in technologies, economics and social relationships. Several significant changes have been identified in New Zealand consumer lifestyles between 1989 and 1995, although the overall picture is one of reasonable stability and evolution as opposed to dramatic change. Interpretation of the segments is helped by their portrayal in the VALS 2 structure. Five of the segments identified in 1989 can be clearly seen in the new segmentation analysis, though even they have been modified in some way. The segment showing the largest growth over these years has been the Success-Driven Extroverts, reflecting a trend towards independence, personal ambition and achievement consistent with the political and social climate of New Zealand in the 1990s. The Active Family segment from 1989 cannot be identified in the new segments in the same way but one of the two new groups portrayed in the study, the Pragmatic Strugglers, shows many similarities in terms of attitudes. The emergence of this new group may well be the result of changes to social welfare and the increasing divide between the haves and have nots within society. The other new segment defined in 1995 is termed Accepting Mid-Lifers. There is no clear association between this group and any of the 1989 segments but they are quite clearly recognisable as a portrait of some New Zealanders. It could be argued that the emergence of this group is the result of the decision to choose a seven group solution as opposed to the previous six. This was bound to produce some differences in results which could not be compared directly but we are confident that we have produced a segmentation analysis that gives a useful and reliable portrait of New Zealand consumer lifestyles.

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Endnotes 1. The commercial sponsors were Colenso Communications Ltd (advertising agency), Fisher and Paykel Ltd (whiteware manufacturers), and Readers Digest New Zealand. 2.The charities listed were the National Heart Foundation, Plunket (a national charity supporting maternity and early childhood services), and the Society for the Protection of Cruelty to Animals. 3. Domestic Purposes Benefit and Housing Support are two of the main mechanisms for welfare support in New Zealand. References Homma, N. and Ueltzhoffer, J. (1990). The Internationalisation of Everyday-life Research: Markets and Milieus, Marketing and Research Today, 18(4), pp.197-207. Lawson, R., Rummel, A., Mueller-Heumann, G. and Fiegler, B. (1990). A New Zealand Lifestyle Survey, New Zealand Journal of Business, 12, pp.22-35. Lawson, R., Tidwell, P., Rainbird, P., Loudon, D. and Della Bitta, A. (1996). Consumer Behaviour in Australia & New Zealand, Sydney: McGraw Hill Book Co. Lazer, W. (1963). Lifestyle Concepts and Marketing, in Toward Scientific Marketing, S. Greyser, ed. Chicago: American Marketing Association. Mackay, H. (1993). Reinventing Australia. Sydney: Angus & Robertson. Mueller-Heumann, G. and Fiegler, B. (1979). A Lifestyle Segmentation Study of New Zealanders, unpublished report by University of Otago Marketing Department and Heylen Research Centre. Plummer, J. (1974). The Concept and Application of Lifestyle Segmentation, Journal of Marketing, 38, pp.35-58. Values and Lifestyles Program. (1989). Descriptive Materials for the VALS 2 Segmentation System. SRI International, Menlo Park, CA. A Lifestyle Analysis of New Zealand Consumers

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