Pamantasan ng Lungsod ng Maynila

(University of the City of Manila)

General Luna, corner Muralla St., Intramuros, Manila
PAMANTASAN NG LUNGSOD NG MAYNILA BUSINESS SCHOOL

Personalities, Values, and Lifestyle

Written Report of Group 5 (MAR4110-3)

Submitted by:
Bustos, Jerome Marvic L.
De Villa, Kristein May E.
Garcia, Princess May A.
Perez, Althea Bianca B.
Ramiro, Leonardo N.
Valle, Leila Joshua V.
Vargas, Alicia Jane L.

Submitted to:
Prof. Chesney C. Malapit
 I. Personality

Marketers have always attempted to appeal to consumers' personality traits. They

have instinctively known that individual traits are likely to affect consumers' purchases, as
well as when and how they consume. Because of this, marketers and advertisers regularly
reflect particular personality traits or qualities in their marketing and advertising campaigns.

A person's personality is described as those inner psychological traits that both

influence and reflect how they react to their surroundings. It also refers to the individual
differences in characteristic patterns of thinking, feeling, and behaving. Although personality
tends to be stable and permanent, it can vary abruptly in response to significant life events as
well as gradually through time.

There is also a thing called Inner Characteristics wherein each of the unique attributes,
habits, mannerisms, and characteristics make one person stand out from another. For
example, Compulsiveness, Agreeableness, Adaptability, Competitiveness, Introversion,
Extroversion, etc.

The implementation of a business's market segmentation strategy has proven to

benefit greatly from the identification of specific personality traits connected to consumer
behavior. To name a few, here are some of the Natures of Personality:

- Personality Reflects Individual Differences: The personality of each person is

a unique combination of characteristics; no two people are completely the
same. Being able to divide consumers into different groups based on a single
feature or a few traits makes personality a useful concept.
- Personality is Consistent and Enduring: Marketers identify the psychological
features that impact particular consumer responses and work to appeal to these
attributes in their target market. Although a person's personality may be quite
consistent, consumption behavior frequently varies a lot due to psychological,
social, and environmental influences on behavior.
- Personality Can Change: Major life events, like the birth of a child, the death
of a loved one, a divorce, or a significant change in one's work, can have an
impact on a person's personality. An individual’s personality also changes as
part of a gradual maturing process;
a. Personality stereotypes may also change over time.
 b. There is a prediction, for example, that a personality convergence is
occurring between men and women.
● Freudian Theory

To start, Sigmund Freud’s Psychoanalytic Theory of Personality has been known to be

the cornerstone or basis of modern psychology. Perhaps because it was derived from the
notion that human motivation and personality are mostly driven by unconscious wants or
drives, particularly biological and sexual desires.
Human personalities develop over three (3) stages, according to Sigmund Freud's
Psychoanalytic Theory: the Id, the Ego, and the Superego. He then claimed that there are
three (3) stages of consciousness: consciousness, preconsciousness, and unconscious, and that
these phases are created by the unconscious mind's internal conflicts. He later on assumed
that the Id, Ego, and Superego were also influenced by these three levels.

1. Conscious: This refers to the ideas, emotions, and memories that a person is conscious
of at any particular time.
2. Preconscious: This is used to describe anything that is not currently conscious but
might become so at any time.
3. Unconscious:
a. The Id: This is the part of the mind that is instinctual, natural, and basic, and it
has hidden memories in addition to aggressive desires. This is also called as
the "warehouse," as it can include impulsive urges like hunger or thirst.
b. The Superego: This is the part of the mind that operates as a moral conscience.
Basically, if the Id is more impulsive, the Superego counters that. It’s well
thought out as it considers an individual’s moral and ethical code. This part
sees to it that everything it does needs to be socially acceptable as it refrains
the impulsive forces from the Id.
c. The Ego: This is the part of the mind that balances the Id and Superego. It
considers the impulsive demands of the Id as it also considers the sociocultural
constraints of the Superego. Basically, this part regulates the other two.

Freud highlighted that a person's personality is formed as they move through a series
of development as it occurs in a variety of unique stages. One’s personality is dictated
depending on how one can deal with certain crisis that are individually experience through
each stages. With that, Freud believed that there are five (5) stages of Psychosexual
Development:

1. Oral: This starts from birth to 1 years old. This is the time when the Id manifests itself
through an individual’s oral activities such as thumb sucking, nail biting, etc. that are
driven by the libido as it leads to future habits.
2. Anal: This starts from 2-3 years old. This time, the behavior is centered on an
indivudal’s anus through defaction as it is being asserted by the Ego. This is where
toilet training comes in.
3. Phallic: This starts from 3-4 years old. This is where the Oedipus Complex causes the
libido to focus on the genitalia, which can cause romantic desire, jealousy, and
rejection concerns.
4. Latent/Latency: This starts from 6 years old to puberty. This is where the Ego and
Superego are pushing thoughts and behaviors that can attract sexual energy into
friends, academics, etc. Both Ego and Superego are active at this period.
5. Genital: This starts from puberty to adulthood. This is the period where an
individual’s Superego prevails. An individual’s discovery regarding sexuality starts.

In regards to the Freudian Theory and Product Personality, those who place a strong
emphasis on Freud's theories hold that the majority of human drives are unconscious and that
the majority of consumers are unaware of their true purchasing reasons. These academics
focus on consumer behavior by looking at consumer purchases and/or consumption scenarios
as an extension of the consumer's personality.

This is relevant to consumer behavior because the term Freudian Motivation Theory,
which is based on the marketing dictionary of Monash Business School, asserts that a
consumer's purchasing preferences are determined by unconscious motives and that the
visual, auditory, and tactile components of a product may elicit emotions that either
encourage or inhibit purchase.
 ● Neo-Freudian Theory

Even if Freud's theories are insightful, some of his colleagues disagree with his claim
that personality is essentially instinctive and sexual in origin. They suggested that the
formation of social bonds is crucial for personality development:

a. Alfred Adler placed emphasis on the individual's efforts to overcome inferiority

complexes and saw human beings as striving to achieve various rational goals, which
he called the style of life.
b. Harry Stack Sullivan emphasized that people constantly try to build meaningful
connections with others while emphasizing efforts to ease tensions.
c. Karen Horney concentrated on the effects of parent-child connections, particularly the
desire of the individual to overcome anxiety sensations. Three personality
types—compliant, assertive, and detached—were her suggestions.
i. Compliant individuals are people who extend themselves to others; they seek
to be cherished, loved, and even respected.
ii. Aggressive individuals are people who turn on others because they want to
compete, do well, and garner acclaim.
iii. Detached individuals are those who distance themselves from others and want
freedom from duties as well as independence, self-sufficiency, and
dependency.

● Trait Theory

Traits are a person's distinguishing characteristics or the way they tend to behave. A
consumer's habits can be better understood with the aid of their identifying characteristics.
The Trait Theory holds that a person's traits are the foundation of his character, making it
crucial to be able to identify a person's traits. In the realm of multi-personality theories, the
trait theory is illustrative. The theory of traits is predicated on a number of hypotheses, the
most important of which are that there are a finite number of characteristics that are shared by
the vast majority of people and that certain qualities are invariant in nature.
 The focus on the quantitative assessment of features or recognizable characteristics
that constitute a person is one method that can be utilized in the study of
personality.(Extroversion and introversion). Common traits are:

1. Innovativeness: A pervasive characteristic or inclination that influences how

individual views and responds to a unique experience or development.
2. Materialism: The significance that a person places on acquiring material
goods. The term "possessions" can refer to a wide variety of items, including
apparel, footwear, handbags, automobiles, technological equipment, and
several other devices. Even if everyone needs a place to live, a person's
residence is nevertheless seen as a material possession because it is in their
hands to use as they like.
3. Self-consciousness: Can be described for an individual as the consciousness of
his or her own body in a time-space continuum as well as the awareness of
how the body interacts with the environment, including other people. It also
involves the individual's consciousness of his or her own identity, which is
constructed over the course of time through interaction with other people.
4. Need for Cognition: This characteristic indicates a person's motivation to
engage in cognitive activity rather than the person's actual capacity to do so
more so than it does the person's actual cognitive competence. People who
have a strong demand for cognition are more likely to make opinions or take
actions based on a careful analysis of the information available to them.
5. Frugality: It is a concept about the lifestyle that leads individuals to
consciously limit their impulsive impulses and actions, purchase commodities
and services in a controlled manner, and make resourceful use of economic
products and services in order to accomplish some long-term goal.
6. Environmental Consciousness (new trait): Conscientiousness is related to a
“future temporal perspective.” People that are high in conscientiousness are
forward thinkers, and this trait extends to how they plan for the future. A
marginally weaker correlation was seen between openness to experience and
engagement with environmental issues.
 Research on consumer behavior is increasingly benefiting from the incorporation of
selected single-trait personality assessments into the research process. The following kinds of
characteristics can be measured:

● Consumer Innovativeness: This refers to the degree to which an individual is

open to new experiences.
○ How open are consumers to trying new things, whether it be goods,
services, or even ways of doing things?
○ A current study on consumers reveals a good correlation between the
creative use of the internet and online shopping.

1. Marketing professionals have an obligation to gain as much knowledge

as possible about consumer innovators, also known as customers who
are open to trying new products. These pioneers are frequently vital to
the commercial success of innovative products.
2. The ability to differentiate consumer innovators from non-innovators
based on personality features has been demonstrated to be effective.
3. The following characteristics of personality will be covered in this
section:
a. Consumer innovativeness.
● Is a characteristic of a person's personality that is
referred to as "innate innovativeness." It refers to the
innate characteristics of customers who are prepared to
seek out and embrace new things, including new
products.
b. Dogmatism.
● A characteristic of an individual's personality that can
be measured to determine the extent to which they resist
new information and information that runs counter to
the views they have already formed about the world.
Customers with a low level of dogmatism are more
inclined to select novel products over those that are
already established. Dogmatic customers are more
 receptive to advertisements for new items that are based
on authoritative figures ones
c. Social character.
● is a characteristic of a person's personality that can
range from being self-focused to being oriented toward
other people.
a. Inner-directed consumers are more likely to
evaluate new items based on their own "inner"
ideals or standards, and they are also more likely
to be inventors. In addition, they like
advertisements that emphasize the personal
benefits and qualities of the product.
b. Other-directed consumers who are
other-directed have a tendency to look to others
for guidance and are not innovators themselves.
They are more likely to be interested in
advertisements that focus on social surroundings
and social approval.
d. Need for Uniqueness
● It can be defined as an individual's pursuit of
differentness relative to other people that is
accomplished through the acquisition, utilization, and
disposal of consumer goods for the purpose of
developing and enhancing one's personal and social
identity. This can be done in order to distinguish oneself
from other people.
e. Optimum Stimulation Level.
● Others seem to like an atmosphere that is packed to the
brim with innovative, complex, and uncommon
experiences, while some people appear to prefer a life
that is straightforward, devoid of clutter, and peaceful.
Individuals who have optimum stimulation levels
(OSLs) are willing to take chances, to experiment with
 new items, to be innovative, to seek out information
linked to purchases, and to adopt new retail facilities.

The degree to which an individual's ideal state of

well-being (OSL) corresponds to their actual
circumstances has a direct bearing on the quantity of
stimulation the individual craves.
a. If the two things are comparable, people are
likely to be satisfied.
b. If they are bored, it means that they are not
being stimulated enough, and vice versa.
f. Variety-Novelty Seeking
● The term in consumption refers to the practice of
individuals moving between different products,
categories, or brands in order to escape the diminishing
utility that results from making repeated purchases or
consuming the exact same products.

● Consumer Materialism: This refers to the extent to which consumers are

attached to their "worldly belongings." The literature on consumer behavior
typically recognizes three aspects as constituting materialism: the belief that
acquisition is necessary for happiness, the tendency to judge one's own
success and the success of others based on their possessions, and the centrality
of acquisition and possessions in one's life. Materialism should not be
confused with conspicuous consumerism, which refers to the practice of
owning and flaunting status symbols in order to raise one's relative standing
and elicit feelings of jealousy in other people. Materialism is a distinct
behavioral pattern from conspicuous consumption.
As a major force behind individual spending and, by extension, the
economy, materialism has significant and far-reaching ramifications for
society. Because of its negative correlation with well-being and other desirable
personal results, it also has personal repercussions that can't be ignored. The
effect of media exposure, early familial environment, and peer influences are
 only some of the factors that have been explored as part of research into the
factors that contribute to individual variances in materialism.
Materialism is associated with a wide variety of decision variables that
are of interest to marketers. These variables include a preference for unique
and status goods, the importance of visual aesthetics when making a product
choice, the willingness to purchase counterfeit products, and a variety of other
decision variables.
● Consumer Ethnocentrism: It is often known as the consumer's propensity to
accept or reject products created in a foreign country. Provides individuals
with a sense of identification and belonging, as well as knowledge regarding
the types of purchases that are considered appropriate for the in-group.
Products are judged by customers who are not ethnocentric or polycentric in
terms of their merits, rather than on the basis of how pertinent or exclusive
their place of origin is, and they may even be regarded more favorably simply
due to the fact that they are imported.

Researchers have designed and tested a scale called the consumer

ethnocentrism scale (CETSCALE) in order to identify customer segments that
are open to purchasing products made in other countries.
The results of the CETSCALE are used to identify consumers who have the
propensity to reject or accept products created in other countries. To quantify
consumer ethnocentrism, Shimp and Sharma created the consumer
ethnocentrism tendencies scale (CETSCALE) in 1987. This scale is also
known as the CETSCALE. It is one of the marketing literature's scales that is
utilized the majority of the time. There are several empirical applications that
use modified versions of the CETSCALE in addition to the original version,
which consists of 17 items. These versions differ from one another in terms of
the number of items (as well as their composition), integrating extra items and
even taking into consideration the nationality of the international products that
are the subject of the study. The unidimensionality of such a scale is called
into doubt by a few of these works.
Consumers who are strongly ethnocentric believe that it is unethical to
buy things created in other countries because doing so would be detrimental to
the economy of their own country. Consumers who are not ethnocentric have a
 tendency to evaluate products created in other countries in a more objective
manner. Marketers can appeal to consumers with an ethnocentric perspective
by putting an emphasis on nationalistic themes in the promotions that they run.

Brand Personality

The phrase "brand personality" describes the traits that consumers associate with a
particular brand. One way in which a successful company might grow its brand equity is by
maintaining a constant set of characteristics that a targeted group of consumers appreciates. A
brand's personality is a set of guidelines for influencing consumers' perceptions of the
company, its products, and its values. The goal of a company's brand personality is to
motivate a certain subset of its target audience to take action in the company's best interest.

In addition to the practical benefits, a brand also benefits from this personality on a
qualitative level. A brand's personality, then, is an aspect of the product to which the buyer
may relate there are five distinct yet related brand personalities:

1. Excitement - The excitement dimension includes brands that have

characteristics such as being bold, dynamic, imaginative, and cutting edge.
These brands typically target younger populations. Exciting brands focus on
revealing mysteries or providing thrilling experiences, and they promote
themselves through large advertising or celebrity endorsements.

2. Sincerity - a goal of any brand, of course, but as a component of brand

personality, sincerity is reserved for brands that are wholesome, honest, happy,
and grounded in the real world.

In the hotel, food service, and safety industries, you'll frequently come across
brands that exhibit these distinctive characteristics.

3. Ruggedness: The rugged brand appeals to those who are bold, adventurous,
and unafraid of hardship. These are names that consumers trust because they
have a reputation for being sturdy and reliable. The construction, outdoor
recreation, and sports sectors are rich with examples of tough brands.
4. Competence: A competent brand is one that is successful, trustworthy, and
intelligent. The brands that fall into this personality dimension are self-assured
thinking leaders who are also responsible and trustworthy stalwarts. Consider
 the brands that operate in the fields of finance, insurance, healthcare, and
logistics.
5. Sophistication: A competent brand is one that is successful, trustworthy, and
intelligent. The brands that fall into this personality dimension are self-assured
thinking leaders who are also responsible and trustworthy stalwarts. Consider
the brands that operate in the fields of finance, insurance, healthcare, and
logistics.

Brand Equity

Creating a brand that is truly one of a kind and getting the word out about it Giving a
product some competitors improves its reputation and customer retention, as well as the
intensity of positive and distinctive feelings that a consumer has towards a brand and the
percentage of a price increase over the generic equivalent that consumers are willing to pay
for a branded product. This ability to distinguish oneself from the competition is enhanced
when the product in question has some rivals.

II. Lifestyles (AIOS) and Psychographics

A lifestyle is a consumption pattern that reflects a person's choices in how he or she

spends time and money, but it also refers to the attitudes and values associated with these
behavioural patterns in many cases.. Many of the factors discussed in this book, such as a
person’s self-concept, reference group, and social class, are used as ‘raw ingredients’ to
fashion a unique lifestyle. In an economic sense, one’s lifestyle represents the way one has
elected to allocate income, both in terms of relative allocations to different products and
services and to specific alternatives within these categories. Other distinctions describe
consumers in terms of their broad patterns of consumption, such as those that differentiate
between consumers in terms of how proportions of their income are allocated to various
sectors of consumption. Often, these allocations create a new kind of status system based less
on income than on accessibility to information about goods and how these goods function as
social markers.

Lifestyle and Consumer Identity

Lifestyles can be regarded as group identities. Marketers track changes in broad

societal priorities using demographic and economic approaches, but these approaches do not
begin to embrace the symbolic nuances that separate lifestyle groups. Lifestyle is more than
just how we spend our money. It is a statement about who one is and who one is not in
society. Group identities, whether those of hobbyists, athletes, or drug users, take shape
through expressive symbolism. The group members' self-definitions are derived from the
common symbol system to which the group is dedicated. A variety of terms have been used
to describe such self-definitions, including lifestyle, public taste, consumer group, symbolic
community, and status culture. Each way of life is (in some ways) distinct. Consumption
patterns based on lifestyles are frequently composed of many ingredients shared by others in
similar social and economic circumstances. Nonetheless, each individual adds a unique 'twist'
to this pattern, allowing him or her to inject some individuality into a chosen lifestyle.
For example, a ‘typical’ student (if there is such a thing) may dress much like his or
her friends, go to the same places, and like the same foods, yet still indulge a passion for
running marathons, stamp collecting or community service, activities which make him or her
unique.
People's tastes and preferences evolve over time, so consumption patterns that were
viewed favourably at one point in time may be laughed at or sneered at a few years later.

There are all kinds of lifestyles. For example, college student lifestyles may include:
Metro - These people are into Fashion, Food & Skin Care
Hesher - Boys that wearing a Reebok and Jeans with a clean cut
Emo - Into Punk Music, Tight Clothes, and Black Glasses

This is called Lifestyle Marketing Perspective recognizes that people are increasingly
conscious of the fact that we all sort ourselves and each other into groups based on what
we/they like to do, how we/they like to spend our/their leisure time, and how we/they choose
to spend our/their disposable income. These choices, in turn, create opportunities for market
segmentation strategies that recognize the power of a consumer's chosen lifestyle in
determining both the types of products purchased and the specific brands more likely to
appeal to a designated lifestyle segment.
Product Complementarity

The adoption of a lifestyle marketing perspective implies that we must look at

patterns of behavior to understand consumers. We can get a clearer picture of how people use
products to define lifestyles by examining how they make choices in a variety of product
categories. Indeed, many products and services do seem to go together, usually because they
tend to be selected by the same types of people. In many cases, products do not seem to
‘make sense’ if unaccompanied by companion products (e.g. fast food and paper plates, or a
suit and tie) or are incongruous in the presence of others (e.g. a big, upholstered chair in a
high-tech office or the IKEA ad, shown above). Therefore, an important part of lifestyle
marketing is to identify the set of products and services that seems to be linked in consumers’
minds to a specific lifestyle. As one study noted, ‘all goods carry meaning, but none by
itself.... The meaning is in the relations between all the goods, just as music is in the relations
marked out by the sounds and not in any one note.’

Consumption Constellation

Consumption Constellations are defined as "clusters of complementary products,

specific brands and/or consumption activities used by consumers to define, communicate and
enact social roles. One example is The Yuppie Handbook: The stereotypical American in the
1980s was the “yuppie,” a nickname for the “young urban professional,” a person between
twenty-five and thirty-nine years old whose job in management or a profession gave them an
income of more than $40,000 a year.
Co-Branding Strategies

Co-branding is the strategy that strives to capture the synergism of combining two
well-known brands into a third, unique branded product (Rao and Ruekert, 1994). In other
words, a co-branding strategy will introduce a new product or service to the market. This
product or service’s characteristics are then rooted in the attributes and core competencies of
the two cooperating brands.

Co-Branding vs. Co-Marketing: What’s the Difference?

In contrast to co-branding, where companies co-create a new, unique product,

co-marketing pertains to when two separate brands promote multiple products through a
combined campaign. Here, the focus of the strategy is on communications. Companies will
strive to align their messaging to capture the awareness of the target audience.

AIO`s Dimensions ( Activities, Interests and Opinions) Dimensions

The commonly used AIO dimensions are –

AIO Process Methodology

• Marketers’ gives respondents a long list of statements.

• Ask them to indicate how much they agree or disagree with each of the statements.

Marketers then create profiles of customers in terms of activities and patterns of

product usage using data from large samples. This is an exhaustive process which
yields qualitative data about the customer

Advantages of AIO

Defining the target market – This method facilitates defining the target market beyond
simple demographic or product usage variations

• Create a new view of the existing market – Creating strategies with stereotyping in
mind about a typical customer in mind may not always match assumptions.

• Position the Product – Marketers can use psychographic information to emphasize

features in a product that fits with a person’s lifestyle

• Communicating product attributes in a better way - Provides useful input to

advertisers regarding a much richer mental image of target consumers who are in the
process of communicating something useful about the product.

• Product strategy development – Helps marketers identify new product opportunities,

draft media strategies by understanding how a product fits or does not fit into
consumer lifestyle.

• Marketing Social and Political Issues – Psychographic segmentation becomes

important in political campaigns and policy makers for finding commonalities among
consumers.

A. Psychographics

According to Dr. Thompson 2020, the application of psychological, sociological, and

anthropological variables to ascertain how the market is segmented by the propensity of
groups within the market-and their reasons-to make a specific choice about a product, person,
ideology, or other matter, or to hold an opinion or use a medium. It involves the description
of consumers based mainly on such psychological and social psychological factors as values,
beliefs, and attitudes, and is used to explain why these consumers have the propensity to
consume certain products or brands, use certain services, devote time to certain activities and
use certain media. (Solomon et. al, 2006). As a consumer how much I am attached to my
social environment may cause changes of my peers, there are beliefs that would rather have
my own reason and understanding that qualifies me for self-satisfaction and interest.

According to CB Insights, a website that specializes in giving information from a

private sector of researchers, psychographics is the study of consumers based on their
activities, interests, and opinions (AIOs). It goes beyond classifying people based on general
demographic data, such as age, gender, or race. Psychographics seeks to understand the
cognitive factors that drive consumer behaviors. This includes emotional responses and
motivations; moral, ethical, and political values; and inherent attitudes, biases, and
prejudices. Therefore, the use of Psychographics will help to know the market. As future
CEOs and marketers, the products to pursue should be connected with the result of market
research. Knowing the industry has been creative in inventing new flavors and prototypes.
Providing the possibilities of a company would help as per the discussion of Psychographics.
Political consulting firm Cambridge Analytica created a psychographic profile that placed
people in a particular market segment according to the presence or absence of five personality
traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism (popularly
known as the OCEAN model of personality).
Difference between the Demographics and Psychographics

Demographics mainly focus on the basic information that can be found through
government identity certificates. Meanwhile, Psychographics can be answered through
self-observation, self-identity and self-gratification. “Psychographics focuses on why people
buy. Demographics tells us who buys.”.

The Roots of Psychographics

a) Motivational Research: involves an extensive amount of one-on-one interviews in
addition to projective tests (yields a lot of information on a few people). Having more
direct, targeted, and personal interaction with selected individuals.
b) Quantitative Survey Research: uses methods of population analysis on a grand
scale and has a wider scope.

How Psychographics is being collected

● Traditional focus groups/interviews
● Set-top box viewing data
● Surveys/questionnaires/quizzes
● Psycholinguistic dictionaries
● Website analytics (e.g. Google Analytics)
● Browsing Data
● Social media (i.e. likes, clicks, tweets, posts, etc.)
● Third-party analytics
● Websites such as 16 Personalities
(https://www.16personalities.com/free-personality-test)
Psychographic studies can take several different forms:
● A lifestyle profile looks for things that show how users of a product are different from
people who don't use it.
● A product-specific profile finds a target group and then makes a profile of these
people based on product-related factors.
● In a general lifestyle segmentation, a large number of respondents are put into similar
groups based on how their overall preferences are similar.
● With a product-specific segmentation, questions are made to fit a certain category of
products.

III. Values

Introduction of Values

It says that values ​are an individual's beliefs that influence people to act. They act as a
guide for human behavior. As a whole, people tend to believe these values ​are "correct"
because they are the values ​of a particular culture.

Ethical decisions often involve weighing values ​and choosing which ones to reinforce.
When people have different values, their preferences and priorities can clash and create
conflicts. Some values ​have intrinsic value, such as love, truth, and freedom. Other values,
such as ambition, responsibility, and courage, represent qualities and behaviors that serve as a
means to an end.

Still other values ​are considered sacred and are a moral imperative to those who
believe in them. Sacred values ​are rarely compromised because they are perceived as
obligations rather than factors that are taken into account when making decisions. For
example, national flags can represent sacred values ​to some people. But to others, the flag
may be just a piece of cloth. Regardless, values ​differ from person to person and from culture
to era. However, values ​are widely recognized as drivers of ethical decision-making.

Values in Consumer Behavior

 Since the first presenter tackles theories in line with the personalities, values also have
theories affecting consumer behavior. In this topic, we will discuss theories that focus on
consumption value, why consumers buy or don't buy (or use or don't use) certain products,
and why consumers prefer one type of product over another. Jagdish's theory can be applied
to decisions across all types of products (non-durables, durables, products, and services). To
understand this topic further, we will show the framework about this theory.

As shown in Figure, there are multiple values influencing the consumer behavior, the
theory identifies five consumption values influencing consumer choice behavior. These are
functional value, social value, emotional value, epistemic value, and conditional value. A
decision may be influenced by any or all of the five consumption values. Various disciplines
(including economics, sociology, several branches of psychology, and marketing and
consumer behavior) have contributed theory and research relevant to these values.

To begin this, we just want to acknowledge all the person behind to come up to this
theory since each consumption value in the theory is consist with various components of
models advanced by Maslow’s Hierarchy of needs (1943, 1954, 1970), Katona’s Adaptive
theory of consumer behavior (1953, 1971), Katz’ Skills theory (1960), and Hanna’s Theory of
action. (1980).

FIRST VALUE: FUNCTIONAL VALUE

Functional value is measured on a profile of choice attributes. In simple
understanding, the consumer is influenced on how the product will function. For example, the
decision to purchase a particular automobile might be based on fuel economy and
maintenance record.

Functional value is determined by the product itself, whether it meets the customer
needs and wants and the usefulness of the products (how long the product can sustain).
Customers can be affected by the functional value of the product that they prefer such as a
function of product, appearance, price, and quality (Sheth et al., 1991). However (Sweeney &
Soutar, 2001) functional value should be divided into two dimensions, namely price or
monetary value and quality or performance, which should be measured separately.

(Sweeney & Soutar, 2001), defined functional value for price/ value for money as the
value that obtains from the products based on customer perception on the cost in long term
and short term. A functional value of quality or performance is defined as the product
usefulness is based on customer perceived quality and the expectation toward the products
whether it fulfils a customer’s desired goal.

SECOND VALUE: SOCIAL VALUE

Benefits derived from associating alternatives with one or more specific social groups.
Alternatives acquire social value through association with positively or negatively stylized
demographic, socioeconomic, and cultural ethnic groups. Social value is measured using
profiles of selected images.

Decisions about high-profile products (clothing, jewelry, etc.) and goods and services
shared with others (gifts, entertainment products, etc.) are often driven by social values. For
example, buying products that are trending or products that you want to share with others.

THIRD VALUE: EMOTIONAL VALUE

According to the study from the website ADCOCK Solutions, positive emotions
toward a brand have a greater influence on consumer's loyalty than other judgements that are
based on a brand's rational attributes. In consumer behavior, people tend to acquire things
based on the emotional connections the brands make with us. A brand, in reality, means
nothing but a mental representation in the mind of the consumer. Also stated in this site that
when the mental perception consists only of the product’s features and other factual
information, there are no emotional links to influence how a shopper emotionally feels.
Which means that when a brand's connection to consumers are deeper and much more of an
emotional content, the more likely the consumer retains its loyalty towards the brand.
 In accordance with the website Jagdish Sheth, goods and services are frequently
associated with emotional responses. For example, some foods arouse feelings of comfort
through their association with childhood experiences.

FOURTH VALUE: EPISTEMIC VALUE

This is the perceived utility acquired from the products' capacity to arouse curiosity,
provide novelty, satisfy a desire for knowledge. A consumer plays an epistemic value when
asking something out of curiosity, novelty, and knowledge. New experiences are an example
of providing epistemic value. These products that have new experiences may be chosen
because the consumer is bored or not satisfied with their current brand. For example, trying a
new type of coffee, for curiosity, visiting a new night club, desire to learn, experience.

FIFTH VALUE: CONDITIONAL VALUE

This is the perceived importance acquired by a product as the result of a specific
situation faced by the situation maker. Conditional value is measured on a profile of choice
contingencies. Since conditional value depends on the decision maker's choice, some
products have seasonal value. For example, Christmas cards. Lifetime events such as
wedding gowns. Emergency situations, ambulance service.
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