Marketing Notes and Communications 66

Product Positioning by

Behavioral Life-stylesLEWIS ALPERT

and RONALD GATTY

This approach to "product positioning," or drawing a profile of the usersof competitive brands, goes beyond the usual demographics and is basedon consumer patterns of purchasing and product-use designated "behav-ioral life-styles." For most major brands, the basic data are already avail-able at low cost from syndicated services.

in marketing management realize thatproducts which appear to be competitive prod-

ucts may actually be serving different segments ofthe consumer market, and serving them in somewhatdifferent ways. In order to provide a basis forbrand strategy, the specific factors that distinguishproduct-users from non-users, and users of onebrand from users of a competitive brand need tobe identified. The differentiation of brands bystudying the ways in which their consumers differas well as how consumer perceptions of variousbrands differ is termed "product positioning." Uti-lizing simple and direct survey questions, consum-ers have been described in terms of their usage andimage of the brand as well as in terms of the stand-ard demographics such as age, income, and size offamily. However, more recent developments employ-ing factor analysis have proved useful in identify-ing the differences between products related to con-sumer preferences and purchases. The concepts andresearch methodology have been developed byHaley,! Gatty,- StoetzeP and others.

This use of factor analysis goes well beyond theearly brand-image studies in which the attitudinalvariables were selected by subjective managementjudgments and motivational research. Factoranalysis provides certain insights which assist inthe development of hypotheses regarding whichvariables are important in "product positioning"and also in formulating brand profiles.

The availability of new data sources and the de-velopment of factor analysis as a guide for productpositioning has enabled many major companies touse this method in studying their brand positionand identifying consumer market segments on thebasis of the benefits consumers are seeking. The

1 Russell I. Haley, "Benefit Segmentation: A Decision-Oriented Research Tool," JOURNAL OF MARKETING. Vol.32 (July, 1968), pp. 30-35.Ronald Gatty, "Multivariate Analysis for MarketingResearch," Journal of the Royal Statistical Society,Series C. Applied Statistics, Vol. XV (November,1966), pp. 157-172.Jean Stoetzel, "A Factor Analysis of the Liquor Pref-erences of French Consumers," Journal of Advertis-ing Research, Vol. 1 (December, 1960), pp. 7-11.

present paper goes further, however, in demonstrat-ing that consumer behavior as well as attitudes canbe used in factor analysis for product positioning.The factors that form the basis of such productprofile are referred to as "behavioral life-style"factors since they depend on behavioral patternsof purchasing and product-use. Further researcheffort is now being directed toward integrating mul-tivariate measures over all aspects of the consumer,both behavioral and attitudinal. to provide a bet-ter total picture of consumer differences.

New Data SourcesComputer programs for factor analysis have now

become a standard offering of several commercialresearch firms. Also of importance is the increas-ing availability of basic data on brand usage pro-vided by syndicated research services.

Both W. R. Simmons Associates Research, Inc.and Brand Rating Research Corporation regularlyconduct national probability surveys that providea massive databank of information that can serveas a data base for studies of product positioning.

• ABOUT THE AUTHORS. Lewis Alpertis Vice President and Director of MediaServices at Alfred Politz Research, adivision of Computer Sciences. Inc. Hereceived his AB degree from the Uni-versity of Bridgeport and did graduatework at New York University and theUniversity of Maryland.

Prior to his present position. Mr. Al-pert was Director of Marketing Appli-cations and Technical Development ctD'Arcy Advertising.

Ronald Gatty is Associate Professorin the doctoral program of the BernardM. Baruch College. City University ofNew York. He earned his PhD at Cor-nell University.

A statistician and research methodol-ogist. Professor Gatty is a frequent con-tributor to professional journals.

This research project was developedand sponsored by D'Arcy AdvertisingCompany under the supervision ofRussell I. Haley.

66 Journal of Marketing, April, 1969

TABLE 1

EIGHTY VARIABLES ON THE USE OF PRODUCTS AND SERVICES, INTRODUCED AS INPUTDATA IN A FACTOR ANALYSIS OF 5,424 MALE RESPONDENTS FROM

THE 1965 BRAND RATING INDEX SURVEY

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.

Car wax & polishRegular double edge bladesStainless steel injectorHair tonicPre-shave lotionSuitsShoesDress shirtsSport shirtsHatsRye whiskyCanadian whiskyBourbonScotchGinVodkaRumBrandyCordials or liqueursDomestic wineImported wineBottled cocktailsBottled cocktail mixersSoft drinks as highball mixersAirplane tripsRented car in past yearMovie film usedMotor oilAnti-freezeStainless steel bladesGasoline credit cardsTravel credit cardsForeign trips last yearSmall cigarsCigarillosRegular size cigarsPipe tobaccoCamping tripsAmmunitionThree-inch tape

41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.

Miles drivenPain reliever tabletsCold tabletsCough dropsThroat lozengesCigarettesPicturesPictures without flash bulbsGallons of gasRegular soft drinksDiet soft drinksAfter-shave lotionAleMiles driven in townMiles driven on highwayMoviesHair shampooMouthwashSleeping tabletsHemorrhoid remedyStomach remedyHeadache remedyDenture creamShaving soapLong distance telephone callsCandy barsPackaged hard candiesChewing gumDeodorant creamDeodorant roll-onDeodorant sprayElectric shaveShaving cream in cansShaving cream in tubesLather shaving cream in tubeBeerHeavy drinkers. Brand Y beerLight drinkers. Brand Y beerHeavy drinkers. Brand W beerLight drinkers. Brand W beer

In both services, extensive data are gatheredthrough personal interviews and self-administeredquestionnaires or diaries on media exposure andbrands purchased. This paper will show how brandposition may be defined by using factor analysisand the concept of behavioral life-style factors, withdata drawn from 1965 Brand Rating Index.

The approach developed can be followed for anyproduct or brand covered by the .syndicated services.The use of these concepts and methodology will pro-vide a foundation for understanding one's brandcompetition. They point the way to finding aframework for developing marketing and advertisinggoals, keeping one's own consumers, and taking ad-vantage of the vulnerabilities of one's competitors.

The first phase of this study sets out to determinethe general behavioral life-styles of men that could

be inferred from consumer usage of 80 categoriesof products, brands, and services reported by thesyndicated service. The second phase of the studywill report the result of a research experimentillustrating the differences between specific brandsof beer in terms of the purchasing patterns andbehavioral life-style factors of the male consumers.Separate analyses were conducted for heavy andlight users of two major brands designated asBrand W and Brand Y.

Men's Life-style Factors for All ProductsEighty variables concerning consumer usage of

products and services, as listed in Table 1, weredrawn from the BRI 1965 survey data which isavailable on computer tape. All of the 5,424 malerespondents were checked against each of the 80

Marketing Notes and Communications

FACTOR ANALYSIS OF PRODUCT-USE DATA :

Factors and Variables

TABLE 2

THE FIRST 16 FACTORS

FactorLoading

AND MAJOR

Factors and

FACTOR LOADINGS WITH

Variables

67

80 VARIABLES

LoadingFactor

Factor I:The Hard DrinkerRye whiskyCanadian whiskyBourbonScotchGinVodkaHighball mixersBeer

Factor II:The Car-Conscious ManCar wax and polishMotor oilAnti-freezeMiles drivenGasoline

Factor III:The Candv ConsumerCandy barsPackaged hard candiesChewing gum

Factor IV:The Cosmopolitan TravelerPlane trips in past yearCar rental in past yearGas credit cardsOther credit cardsForeign trips last year

Factor V:The Electric ShaverPre-shave lotionElectric shaver

Factor VI:The Cigar and Pipe SmokerSmall cigarsCigarillosRegular cigarsPipe tobacco

Factor VII:The Dress-Conscious ManSuitsShoesDress shirtsSport shirts

.61

.62

.60

.49

.62

.59

.72

.65

.55

.77

.76

.78

.87

.70

.72

.63

67.68.50.50.54

.69oo82

71756757

54677065

Factor VIII:The Well-Groomed ManHair tonicAfter-shave lotionHair shampooMouthwash

Factor IX:The Cough- and Cold-Conscious ManCold tabletsCough dropsThroat lozenges

Factor X:The Man with the Photographic MemoryUnexposed movie filmFlash pictures takenPictures taken without flashbulbs

Factor XI:The Liquor and Wine ConnoisseurRumBrandyLiqueursDomestic wineImported wine

Factor XII:The Old ManHatsDenture cream

Factor XIII:The Hard-Driving ManMiles driven in townMiles driven on highways

Factor XIV:The Cocktail DrinkerBottled cocktailsCocktail mixers

Factor XV:The Regular ShaverRegrular double-edged bladesStainless steel double-edged blades

Factor XVI:The Deodorized MaleRoll-on deodorantSpray deodorant

.56

.53

.65

.47

.64

.68

.71

.60

.85

.84

.57.67.66.53.68

.48

.55

.83

.81

.81

.73

-.77.67

-.80.67

categories in order to designate which of the cate-gories are applicable to the various respondents.The original BRI data showed several degrees offrequency-of-usage so that some judgment had tobe applied in determining the degree of usage thatwould qualify the respondent as a "user."

The factor analysis was programed to draw out25 factors in accord with the principal componentsmethod.* For each of the 80 variables the computeroutput lists a "factor loading" on each of the 25extracted factors.

* Biomedical Computer Programs (Los Angeles: Schoolof Medicine, University of California, Revised 1965).

For purposes of illustration, 16 of these extractedfactors are shown in Table 2, including the prod-uct-usage variables that are highly associated witheach of the factors. The degree of usage is meas-ured by the "factor loading." In order to determinethe percentage of variation in the variable ex-plained by that factor (that is, communality), thefactor loading is squared.

Some of the factors which are associated withthe use of only one or perhaps two products aredesignated as distinct product-use factors. Otherfactors, however, do suggest categories of behav-

68 Journal of Marketing, April, 1969

TABLE 3

MEN'S LIFE-STYLE FACTORS IN PURCHASING ALL PRODUCTS AND IN PURCHASING BEER. AVERAGE FACTOR SCORES FOREACH CONSUMER SEGMENT, AS A DEVIATION FROM THE TOTAL MALE SEGMENT, BASED ON BRI 1965 DATA

1.

2.3.4.5.6.7.

8.9.

10.

11.12.

13.14.15.

16.17.18.

19.

20.21.

22.

23.24.

25.

Number of Men in SampleLife-Style Factor

The Hard DrinkerThe Car-Conscious ManThe Candy ConsumerThe Cosmopolitan TravelerThe Electric ShaverThe Cigar & Pipe SmokerThe Dress-Conscious ManThe Well-Groomed ManThe Cough- and Cold-Conscious ManThe Man With A PhotographicMemoryThe Liquor & Wine ConnoisseurThe Old ManThe Hard-Driving ManThe Cocktail DrinkersThe Regular ShaverThe Deodorized MaleThe Lather Shaver IThe Lather Shaver IILight Drinkers of Beer Brand WThe Soft DrinkersThe OutdoorsmanLight Drinkers of Beer Brand YThe BellyachersThe Injector Blade ShaversDrinkers of Beer Brand W

AllMen

0

00

00

0000

0

00

00

00000

000

000

BeerDrinkers

29iS

.59.02

.07

.02

.09

.02

.08

.01- .04

- . 1 1.04.01

- . 0 6.02.05.07

- . 24.04.07.21

.07

.08

.04

Non-BeerDrinkers

21,81

- .71-.02

.01

- .08.03

-.10-.01-.02-.09

-.01.04

.13- .05

.01

.07

.02

.06

.08

-.29.06

- .08-.25

.09

-.10.05

Beer Brand YHeavy

Drinkers188

1.44-.17

£0.36

- .16.09

- .10- .01

.69

- .42-.42

.06

.28-.45-.68

.35

.33

.15-.40-.73

.60

-1.97-.99

.04

-1.76

LightDrinkers

316

.69.05

.07

.11

- .13.01

.18

.01.06

- .04.14

- .32.18

- .05-.20-.02

.16

.06- .18

.39- .043.01

-.09-.03-.02

Beer Brand WHeavy

Drinkers99

1.04-.03

.50

.48-.25

.28- .11

.41

.27

- .33- .73

.43

.07

.72

-.49.32

- .18.04

-.69-.86

.22

.04

- .30.20

5.56

LightDrinkers

15S

.20

.24

.17

.25-.04-.06

.15

.17.13

.05

.06

.20

-.22.16.07

-.07-.09- .255.17

.22-.12-.26

.03

.01

-.18

ioral life-styles that go well beyond the use of asingle type of product and thus add to knowledge inproviding a framework for identifying character-istics of people which are relevant to certain pat-terns of product usage.

Of the 25 extracted factors, ten seem to be asso-ciated not only with the use of a group of products,but also with a pattern of purchasing: a single prod-uct category. Thus factor analysis provides acharacterization of the consumer that yields someinteresting groupings of behavioral life-styles inpurchasing which would not be apparent fromsimple tabulation and inspection.

Together the 25 factors yield an interesting pic-ture of the behavioral life-styles in the purchasingpatterns of the American male. The purpose herehas been to contrast how these purchasing patternsdiffer between consumers and non-consumers of twocompeting brands of beer.

Life-styles of Beer DrinkersThe next step is to see how consumers of the

product under study—in this case, beer—differfrom non-consumers, and how consumers of onebrand differ from the consumers of the major com-petitive brand. Tables 3 and 4 provide summarizeddata for drawing the contrasts.

In Table 2 beer drinking is shown to be par-ticularly associated with the Hard Drinker. Inaddition, heavy beer drinkers are more clearlydefined than light beer drinkers as can be seenfrom Table 4 where factor loading is generallyhigher for heavy beer drinkers. Thus, they aredistinctly Hard Drinkers and not Soft Drinkersand are not inclined to be either Liquor or WineConnoisseurs.

Brand distinctions are quite apparent amongheavy beer drinkers. For example. Brand Y drink-ers are Outdoorsmen, and thus more inclined tobe Hard Drinkers; whereas the Brand W drinkers

Marketing Notes and Communications 69

TABLE 4

PROFILE OF PRODUCT USE AND BEHAVIORAL LIFE-STYLES OF BEER CONSUMERS

AND HEAVY AND LIGHT CONSUMERS OF MAJOR BEER BRANDS Y AND W

FACTORS ARE IN RANK ORDER OF DIFFERENCES FROM NON-CONSUMERS OF BEER, MEASURED IN FACTOR LOADINGS

All Beer Consumers

Hard Drinker

Old Man

Cigar & PipeSmoker

Cough- & Cold-ConsciousMan

OutdoorsmanCosmopolitan

Traveler

Electric Shaver

Hard-DrivingMan

Liquor & WineConnoisseur

.88

-.24

.19

.17

.15

.15

.15

.09

- .08

Heavy BeerBrand Y

Hard Drinker

Soft Drinker

Cough- & Cold-ConsciousMan

OutdoorsmanLiquor & Wine

ConnoisseurCocktail

DrinkerElectric Shaver

CosmopolitanTraveler

Photographer

Hard-DrivingMan

Deodorized Male

Candy-ConsciousMan

Car-ConsciousMan

Dress-Con-scious Man

Not An OldMan

1.40

- .78

.78

.68

- .46

—.46.44

.42

-.42

.33

.33

.19

- .15

-.09

- .07

ConsumersBrand W

Hard Drinker

Soft Drinker

Liquor & WineConnoisseur

CosmopolitanTraveler

Candy-Con-scious Man

Well-GroomedMan

Cigar & PipeSmoker

Cough- & Cold-ConsciousMan

Photographer

Old Man

Deodorized Male

OutdoorsmanHard-Driving

Man

1.33

-.99

-.69

.52

.49

.43

.38

.36

- .32

.30

.30

.30

.12

LightBrand Y

Old Man

Soft Drinker

CosmopolitanTraveler

Hard Drinker

Cough- & Cold-ConsciousMan

Dress-Con-scious Man

Cigar & PipeSmoker

Liquor & WineConnoisseur

Car-ConsciousMan

CocktailDrinker

Beer

-.45

.34

.19

.18

.14

.14

.11

.10

.07

- . 0 6

ConsumersBrand W

CosmopolitanTraveler

Car-ConsciousMan

Cough- & Cold-ConsciousMan

Well-GroomedMan

Soft Drinker

Hard-DrivingMan

Candy-ConsciousMan

Dress-ConsciousMan

Deodorized Male

Old Man

Photographer

.33

.26

.22

.19

.17

— .17

.16

.16

.09

.07

.06

are more associated with the Cosmopolitan Traveler.The Dre.ss-Conscious Man, The Well-Groomed Man,The Cocktail Drinker, and The Car-Conscious Man.Brand W drinkers seem to seek more oral satisfac-tion, being associated with the Candy Consumer andthe Cigar and Pipe Smoker. Among light beerdrinkers, approximately the same type of patterncan be discerned though with less extreme differ-ences between the two brands.

The foregoing highlights the major diflferencesin behavioral life-styles and product-use of thevarious groups of consumers, as suggested by theinterpretation of the factor analyses. From thisanalysis come sound working hypotheses about con-sumers of a product and its major brands, whichmust be integrated into the overall on-going con-

sumer research program in order to develop a fullerdefinition of market segments and product position-ing with an expanded profile of the consumers ineach segment.

A knowledge of behavioral life-styles should in-fluence overall formation of marketing strategyfor a brand, and it can also provide immediate cre-ative guidance for advertising copy. Advertiserswill be better able to identify the audience for theircopy and the types of appeals which may interestthem.

The development of product-positioning de-scribed in this article will add insight to thestraightforward measures of consumer attitudesand demographics that have so long served as thebasis of product positioning and brand positioning.