Abstract

Prior studies intensively rely on lifestyle segmentation to investigate the patterns of purchase and consumption decisions. However, the literature does not specifically relate lifestyle profiles with the types of consumer decisions (i.e., purchasing vs. consumption decisions). Therefore, this research analyzed the issue by surveying 626 residents of Salatiga city, Indonesia, as the participants through self-administered questionnaires. By analyzing the data with factor, cluster, and chi-square analysis, this paper demonstrated that purchase decisions (i.e., the choice of brand name and country of origin) are not associated with lifestyle segments, while consumption decisions differ among the segments. Meanwhile, lifestyle is more likely associated with enduring (i.e., consumption decisions) than occasional behaviors (i.e., purchase decisions) such as the purchase of a mobile phone and its related services.

Highlights

  • Marketing has shifted from mass marketing to product-based marketing to consumer target-based marketing (James et al, 2017)

  • Purchase decision was measured by brand choice (Uddin et al, 2014), and usage behaviour was operationalized by extending Kim and Park (2014)

  • The current study showed no association between lifestyle profile and mobile phone purchase based on brand name and country of origin (COO) of product

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Summary

Introduction

Marketing has shifted from mass marketing to product-based marketing to consumer target-based marketing (James et al, 2017). The latter assumes the need for market segmentation by utilizing some variables such as geographic, demographic, behavioral, and lifestyle ones (James et al, 2017). Applying lifestyle as the basis for consumer segmentation is motivated by the argument that marketers need to better understand their customers before designing marketing strategies (Assael, 2005). Previous studies have shown that consumers with different lifestyles exhibit varying behaviors (Krishnan, 2011). Lifestyle-based segmentation provides advantages of identifying consumer tendencies, values, attitudes, and behavior (Yeo et al, 2020)

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