Values as multivariate consumer market segmentation discriminators : a subjective well-being approach

Abstract

The Living Standards Measure (LSM), a South African marketing segmentation method, is a wealth measure based on standard of living. This research study investigates whether a rationale can be found for the inclusion of value-related variables in this type of multivariate segmentation approach. Schwartz’s (1992; 2006) values model was used to operationalise personal values and individual-level culture – focusing on two of its dimensions, ideocentrism and allocentrism. The current positive psychology research trend manifests in the inclusion of subjective wellbeing (SWB), as measured by satisfaction with life (SWL). The primary objective of this research was to investigate at individual (and not group or societal) level whether values and SWL can be used to discriminate among multivariate consumer segments. Data were collected by means of a survey from a nationally representative sample (n = 2566) of purchase decision-makers (PDMs). The measurement instruments used were the Portrait Values Questionnaire (PVQ) and the Satisfaction with Life Scale (SWLS). A multi-group confirmatory factor analysis (MGCFA) was used to assess the psychometric properties and test the equivalence of the scales across cultural groups. MGCFA was also used to test for differences across LSM groups on the PVQ and SWLS. Centred value scores were used to test for differences between LSM groups in terms of their values and SWL, using MANOVA.

The findings supported Schwartz’s theory of basic human values, and small differences were found in the PVQ values between LSM groups using the MGCFA approach. MANOVA analyses showed stronger differences across LSM groups. PDMs in the higher LSM segments were more satisfied with their lives. No significant relationships between values and SWL were found, and the effect of individual-level culture, as a higher-order dimension of four values, showed a small but significant effect on SWL.