Committee of the Global Engineers & Technologists Review Chief Editor Ahmad Mujahid Ahmad Zaidi, MALAYSIA Managing Editor Mohd Zulkifli Ibrahim, MALAYSIA Editorial Board Dr. Arsen Adamyan Yerevan State University ARMENIA
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ŠPUBLISHED 2014 Global Engineers and Technologists Review GETview ISSN: 2231-9700 (ONLINE) Volume 4 Number 1 January 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, electronic, mechanical photocopying, recording or otherwise, without the prior permission of the Publisher.
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CONTENTS Vol.4, No.1, 2014 1.
A CASE STUDY AND ANALYSIS OF SETUP REDUCTION FOR STAMPING DIES – SMED APPROACH MUSA, M.A., IBRAHIM, A.M., RAVI, S., ABIDIN, Z.F.Z. and WAN MAT, W.A.
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APPLICATION OF CONSUMER LIFESTYLE RESEARCH IN MARKETING PERSPECTIVE RAO, T.S., SHARIFF, A.R.M., SHAFI, S. and HASIM, N.H.H.
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A CASE STUDY AND ANALYSIS OF SETUP REDUCTION FOR STAMPING DIES – SMED APPROACH MUSA1, M.A., IBRAHIM2, A.M., RAVI3, S., ABIDIN4, Z.F.Z. and WAN MAT5, W.A. 1, 2, 3, 4 International College of Automotive DRB-HICOM Automotive Complex, Peramu Jaya Industrial Area P.O. Box 8, 26607 Pekan, Pahang, MALAYSIA 1 azam@icam.edu.my 2 azalan@icam.edu.my 3 s.ravi@icam.edu.my 5
Department of Mechanical Engineering National Defence University of Malaysia Kem Sungai Besi, 57000 Kuala Lumpur, MALAYSIA 5 wan.ali@upnm.edu.my ABSTRACT The Single Minute Exchange of Die (SMED), is a process-based innovation originally published in the mid-1980s, involves the separation and conversion of internal setup operations into external ones. A case study was put forward emphasizing a process-based view in automotive parts manufacturer. The main finding is that by implementing SMED techniques the company manages to eliminate waste and non-value added activities. The competitiveness of manufacturers can be significantly enhanced through implementation of Set-up Reduction (SUR) initiatives. This paper presents a simplified SUR approach which was trialled and fully tested in a stamping industry. The identification of bottlenecks in production was carried out by using extensive data gathering on machine down-time and/or changeover time records. The detail analysis of the operations carried out by employees and the consultant were investigated by using the SMED philosophy. The project needs to produce small lots, causing a significant increase in the frequency of setups, causing the reduction of production time for each lot. For this reason, it is important to perform rapid changeovers. The objective of the research is to analyse problems during dies changeover, reduce changeover time to single minutes and increased productivity. The model of the new proposed dies has been built to show the elements of the set up reduction. The change over process time was reduced significantly from 13.98 to 4.1 minutes which give 70% of improvement. Keywords: Single Minute Exchange Die, Change Over Process Time, Set Up Reduction, Rapid Changeovers. Article History: Received 13 August 2013, Accepted 8 January 2014.
1.0
INTRODUCTION
Setup reduction is one of the lean manufacturing activities with one main objective that is to eliminate waste. Setup reduction is also known as single minute exchange of dies (SMED) and also known as quick changeover. It is a method for converting a process from running the current product to running the next product within less than 10 minutes rapidly and efficiently. SMED was originally developed to improve machine tool setups, but it principles applied to all types of processes (McIntosh et al., 2010). The metal stamping manufacturer in metal company needs to produces mall lots stamping part for automotive industries. This significant increases the frequency of setups and causing the reduction of time for producing each lot. For this reason, it is important to perform rapid changeovers, so that the flexibility of respond to demand is not affected. The time spent in the setups is considered waste, because they are not with the value added tasks, increases in costs (Tanco et al., 2013). The need of shorter setups is very important. The time spent between the productions of the last part of a series and producing the first parts of the more series, has always been considered as waste or additional cost. The short setup times are classified into three main groups. i)
Flexibility - Because of the large number of existing products and the decrease in quantity, the companies must be able to react quickly to customer needs. So if the production is in small batches, it is essential that these tools make the exchange as soon as possible. -
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Bottleneck capacities - Especially in these machines, every minute loss is a waste. The tools of trade must be minimized, providing an increase in capacity for production. Cost minimization - The production costs are directly related to the performance of the equipment.
PROBLEM STATEMENT
The objective of the proposal is to standardize the set of dies. It is important to facilitate the operator to reduce waste in terms of time or profit able during exchange dies. To expose waste, determine the difference between how long it should take to perform a task, and how long it actually takes (Diaby et al., 2013). Furthermore, need to study non-value added process. With the waste expose, the next step is to eliminate it. Since the most timerelated waste is due to disorganization, it is easy and inexpensive to eliminate it by getting organized. For instance, by providing central location for all tools component will eliminate the waste of searching throughout the floor. Waste can also be caused by a lack of resources. For example, one of the tool holders is being used by another machine. It is wised to have enough tools to eliminate the waste. Confusion and misunderstandings also result in waste. If the mistake has been made, it is a waste of time to solve and correct it. Better documentation and proper training can help to eliminate this kind of waste (Haddad, 1996). The main objective of the proposal is to reduce setup and adjustment setup times in less than ten minutes SMED refers to the theory and techniques used for the reduction of equipment setup times. SMED has as its objective to accomplish setup times in less than ten minutes, i.e. a number of minutes expressed by a single digit. Although not all setups can be literally reduced to this time, between one and nine minutes, this is the goal of the SMED methodology. SMED, also known as quick change over of tools, was developed by (Shingo, 1985), who characterized it as a scientific approach for the reduction of setup times and which can be applied in any industrial unit and for any machine. SMED is defined as the minimum amount of time necessary to change the type of production activity taking into consideration the moment in which the last piece of a previous lot was produced. Before the development of the SMED methodology, the best way to minimize the cost of idle machines during setup operations was to produce large lots, in order to obtain the lowest possible percentage of idle time per unit produced. Toyota came across this problem because inventory costs for their vehicles were extremely high. Before this problem, the best way to reduce the amount of production loss was to reduce setup times (Pfund et al., 2008). Thus, if production changes could be done in less time, the ideal amount of production could be smaller, which, consequently, would decrease the costs involved (McIntosh et al., 2001). The question around the optimum amount of the production lot remains as it is necessary to calculate the minimum amount for each production lot. The production of large lots also has inherent capital costs with the amount invested in inventory. If this is added to the inventory cost the capital opportunity cost, it is no longer profitable to produce large lots. The main benefits of the SMED application is presented in the Table 1. Table 1: Main benefits of the SMED application. Benefits Direct Indirect Setup time reduction Inventory reduction Reduction of time spend with fine tuning Increase of production flexibility Fewer errors during change overs Rationalization of tools Product quality improvement Increased safety
One of the most important objectives of SMED is the reduction of setup times. The intension with the SMED is to try to separate internal operations - namely the Dies exchange or the fitting of the equipment. This operation is to be performed with the machine in switched off mode from the external operations as it is the case of preparation of tools. The objective of the research work is to categorize the set up activities into internal or external. Analyze the problems during dies changeover and reduce the changeover time less than a minute.
3.0
PROPOSED SYSTEM
The implementation of setup reduction initiatives are carried out in the stamping industry which is experienced difficulties in dealing with inefficiencies caused by extended delays between production runs. This results in increased lead times. It designs and manufactures a range of specialty closures, mainly for the automotive industry. It comprises of three main manufacturing areas, one of which is climate controlled and others are two large warehouses. There are more than ten stamping machines ranging in age from just a few month rights up to more than ten years. Raw materials are delivered to the machines through either crane delivery system from bulk storage, or from large containers located next to the machine. This brings the total number of products currently in regular production to approximately thirty. Aside from dies the closures; the stamping industry also utilizes a range of assembly machines to complete the finished product such as bending and welding. These Š 2014 GETview Limited. All rights reserved
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machines are highly automated, and are either custom built assembly lines, or in a number of cases completely robotic fir example the robotic welding machine. While these machines have their own problems associated with lengthy setup procedures, they are not considered in this proposal. The following steps are covered to identify the mechanical, organizational and procedural bottlenecks followed by suggestions for SUR initiatives. They are formation of a SUR team and data collection and analysis. The SMED is applied in different companies and from the results it is identified the existence of two kinds of activities associated of setup, making them the basis of SMED. The internal setup, only be done when the machine is in shut down. The second one is external setup, can be done while the machine is still running. These two concepts are extremely important in the implementation of SMED. The developed techniques are applied in different stages. They are stage 0, stage 1, stage 2 and stage 3. 3.1 Stage 0 – Internal and External Setup The stage 0 is performing dry run. The main objective in implementing the SMED methodology is to study the shop floor conditions in great detail through a production analysis, interviews with workers and video taping of the setup operations. This stage consists in the observation of the on-going process of setup and should include the participation of operator’s dies setter and quality control responsible for doing that task. To obtain the time corresponding to the various operations, the stopwatch is used, interviews with players or recording the operations that are part of an exchange of tools. The video camera is used to record all the activities during the observation of changeover as shown in Figure 1. The further case study has been conducted in the model line and the objective was to find out the total conversion time. In this stage the team member is not between internal and external activity. The total time taken for model setup was 13.98 minutes as shown in the Gantt chart view in the Figure 1. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Task Time Early preparation 4 lower the slide ram to the "Beat 6" 9 Remove the bolt & nut at the top & bottom 66 Turn up the ram slide at the "Beat 12" 7 Set die height machine (up ram machine) 47 Waiting the forklift to take out the die 34 Take out the die from machine 22 Uninstall pin cushion of the booster machine 62 Enter the another size pin cushion into the 6 Set die height machine (up ram machine) 50 Waiting the forklift to lift the die from 54 Enter the die into the machine 36 Lower the ram & put the clam on die 48 Install & tighten the bolt & nut 67 Turn up the ram slide 6 Keep tools 19 Waiting for "child part" of the no.1 83 Die "safety" 9 Set the height of die (die height machine) 114 Die "safety" 17 Testing of part 34 Take oil 33 Rub oil on the die 12 Value Added Transportation & Movement Waiting
PIC A A A A A A B B B B A A A A A A A B B B A A A
Duration
13.98
Figure 1: Gantt chart case study that our group time taken observation.
3.2 Stage 1 – Separating Internal and External Setup The stage 1 is categorizing the internal and external setup. Usually, this action saves 30 % of the time for the setup operation. This distinction is a key issue to achieving success in implementing SMED. This stage is the identification and separation of the internal setups and the external setups. This step is extremely important in implementing SMED, since the times of setup can be reduced by 30 % to 50 % of total time of setup. To assist in achieving this step three practices are implemented to help in the separation of the external setup. The focus is to separate the internal and external activity as shown in Figure 2. 3.3 Stage 2 – Converting the Internal setup to External Setup Convert internal setup to external setup, in which converts the maximum internal setup operations to external ones. It is important to re-examine all operations in order to assess if they are wrongly assumed. In this step internal setups possible are converted in external setup, because all setups classified as external will be carried out with the machine still running. The implementation of this step leads to an © 2014 GETview Limited. All rights reserved
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improvement of about 10 % to 30 % of the total time of internal setup from the previous stage and suggests some techniques that help in this conversion. Table 2 show the transportation, waiting time and others time.
Figure 2: Separation of internal and external. Table 2: Total time and percentage of three main divisions. Division Transportation & Movement
Waiting
Other
No. 7 16 6 11 17 21 22 23
Task Take out the die from machine Keep tools Total Time (minute) Waiting the forklift to take out the die Waiting the forklift to lift the die from Waiting for "child part" of the no.1 Total Time (minute) Testing of part Take oil Rub oil on the die Total Time (minute)
Time 22 19 0.68 34 54 83 2.85 34 33 12 1.32
Cumulatif 22 41
% 53.66 46.34 100 19.88 31.58 48.54 100 43.04 41.77 15.19 100
34 88 171 34 67 79
3.4 Stage 3 – Streamlining All Aspect of the Setup Operation Streamline the setup operations phase seeks the systematic improvement of each basic internal and external setup. These developing solutions are to accomplish the different tasks in an easier, faster and safer way. The value added task is shown in Figure 3. No. 1 2 3 4 5 8 9 10 12 13 14 15 18 19 20
Task Time Early preparation 4 lower the slide ram to the "Beat 6" 9 Remove the bolt & nut at the top & bottom 66 Turn up the ram slide at the "Beat 12" 7 Set die height machine (up ram machine) 47 Uninstall pin cushion of the booster machine 62 Enter the another size pin cushion into the 6 Set die height machine (up ram machine) 50 Enter the die into the machine 36 Lower the ram & put the clam on die 48 Install & tighten the bolt & nut 67 Turn up the ram slide 6 Die "safety" 9 Set the height of die (die height machine) 114 Die "safety" 17 Total time (minute) 13.98
PIC A A A A A B B B A A A A B B B
% 0.73 1.64 12 1.28 8.58 11.3 1.09 9.12 6.57 8.76 12.2 1.09 1.64 20.8 3.1 100
Duration
Figure 3: Value added task.
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DATA COLLECTION AND ANALYSIS
Downtime and changeover time records the concept of identifying ‘Bottlenecks’ in production has been well covered in the literature. A thorough analysis of downtime or changeover-time records of machineries was carried out covering a full data set around twelve hundred records spanning around eighteen months. Every machine was sorted by the type of change and the average variation for each type of change was calculated. Due to the possible inaccuracies that may be present in the data analyzed, information from staff was also gathered to select target machines from a variety of sources. The information provided revealed issues that otherwise would not have been considered and supported a more thorough assessment to be carried out. Regular discussions took place with staff on every phase of the study. Analysis also showed that set-up machine used was consistently causing production delays in excess of one hour. Production lost in the setup is shown in Figure 4. Meanwhile Figure 5 shows the problem in Fishbone method. The Figure 4 and Figure 5 used as a work study analysis sample and it is an important step.
Figure 4: Pareto graph of production lost in setup process.
Figure 5: Fishbone analysis.
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A form was produced with columns for type of process and target time. To reduce changeover times, look for clamps that can accommodate all dies sizes run on a press. For example, hydraulic clamps that fit in existing T-slots can be slide in and out easily. Magnetic clamps that cover the entire ram and bolster can eliminate all tools while accommodating all dies sizes without standardization. Currently they are using a mechanical clamp as their clamping device. One of the observations that was found during the set-up were the length of the bolts is too long. It requires more than ten times of turns before the last torque which cause a lot of wasting time and non-value added process as shown in Figure 6.
Figure 6: Bolt size (before and after).
There are two types of threads which are metric and inches that being used and cause a complication during selecting the suitable tool during the change-over. This will cause a time wastes due to wrong selecting of tool, T slots and bolts during the change over time is shown in the Figure 7. Due to wrong selection of tool or bolt will cause a massive damage, wear and tear during to excessive torque applied.
Figure 7: T slots.
4.1 Keeping Clean of the Press Area The cleaner a press area, the more efficiently it operates. Seeing hydraulic oil on the floor is becoming rarer, but sometimes unusual items end up around presses, such as buckets of oil, clutch parts, broken wrenches, worn-out feeders, pieces and parts of entirely unidentifiable objects. The floor is not even also affect the movement of the trolley and chart will create a safety issue to the dies and worker. The 5S concept of keeping tool arrangement and trolley will help in executing quick set-up. The cushion pin is to locate with label size as shown Figure 8.
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Figure 8: Cushion pin properly rack and labelling.
4.2 Procedural Improvement Standardization of procedures is another powerful setup reduction tool. Standardized procedures were designed for conducting the three types of setup usually encountered in injection moulding. It should be noted that these procedures must be constantly updated through consultation with the technicians and revised to incorporate faster methods from time to time. The standardized procedures can then be followed by a skilled technician to determine the normal time. The three main types of setups that take place during normal stamping dies manufacturing operations are dies change; type of change dies tandem and feeder or bolster. 4.3 Organizational Improvement The most important innovation implemented during the organizational improvement phase was the concept of the setup sheet. It enabled the business to begin streamlining several aspects of operations relating to the setup. Two such examples are organizing material handlers ahead of time to have the right colour prepared, or ensuring the right raw material is organized in advance. For instance, components like bolts can be much longer than is needed causing excessive time spend on tensioning. Measuring a more acceptable length is an automatic step in the creation of that dies setup sheet. The excellent time savings was achieved through the provisioning of a section on the sheet to detail about the spare parts might be needed during the setup. Often fasteners need to be replaced, and rather than having to measure and locate a suitable replacement, significant time can be saved by listing the specifications of spare parts on the setup sheet process flow for setup dies is shown in Figure 9. The Figure 10 shows the setup analysis after the improvement.
Figure 9: Process flow for setup.
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ANALYSIS OF RESULT
The result shows significant reduction of set up time as shown in Figure 10 and Figure 11. The time taken before SMED implementation was 13.98 minutes versus time taken after the implementation which is 4.1 minutes. This will give 70 % of improvement.
Figure 10: Setup analyses before improvement.
Figure 11: Setup analyses after improvement.
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CONCLUSION AND RECOMMENDATIONS
A methodology for implementation of setup reduction industry as created and the new systems were trailed and implemented. The methodology created for the implementation of setup reduction was found, due to the limitations to its effectiveness if the involvement and support from all levels of the organization can be achieved as the program moves forward. All the approaches and methods that have been designed need to be applied, hence to reduce the set-up by applying the standard method and checklist. To review frequently about the each set-up to ensure and applying the right method for implementing a continuous improvement to achieve the SMED target is less than 9 Minutes. This improvement trend will be the key performance index (KPI) to be shared monthly. Actual detail implementation of method to reduces time setup as shown Figure 12.
Figure 12: Implementation of method to reduce time setup at stamping line.
Through this research, as much 70 % has been improved from 13.98 to 4.1 minutes with reduction of 9.8 minutes. Further improvement should be carried with similar method and technique. From the results the cost calculation is analysed. For two shifts operation, the company needs to produce 11 lots of production. One lot requires 4 dies. Therefore with time reduction of 9.8 minutes, the cost reduction for 2 shifts is RM8,116.93. REFERENCES [1] Diaby, M., Cruz, J.M. and Nsakanda, A.L. (2013): Shortening Cycle Times in Multi-Product, Capacitated Production Environments Through Quality Level Improvements and Setup Reduction, European Journal of Operational Research, Vol.228, Iss.3, pp.526-535. [2] Haddad, C.J. (1996): Employee Attitudes toward New Technology in A Unionized Manufacturing Plant, Journal of Engineering and Technology Management, Vol.13, Iss.2, pp.145-162. [3] McIntosh, R.I., Culley, S.J., Mileham, A.R. and Owen, G.W. (2010): A Critical Evaluation of Shingo’s SMED Methodology, International Journal of Production Research, Vol.38, Iss.11 pp.2377-2395. [4] McIntosh, R.I., Culley, S.J., Mileham, A.R. and Owen, G.W. (2001) Changeover Improvement - A Maintenance Perspective, International Journal of Production Economics, Vol.73, Iss.2, pp.153-163. [5] Pfund, M., Fowler, J.W., Gadkari, A. and Chen, Y. (2008): Scheduling Jobs on Parallel Machines with Setup Times and Ready Times, Computers & Industrial Engineering, Vol.54, Iss.4, pp.764-782. [6] Tanco, M., Santos, J., Rodriguez, J.L. and Reich, J. (2013): Applying Lean Techniques to Nougat Fabrication – A Seasonal Case Study, The Int. J. of Advanced Manufacturing Technology, Vol.68, Iss.5/8, pp.1639-1654. [7] Shingo, S. (1985): A Revolution in Manufacturing – The SMED System, Productivity Inc., USA.
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APPLICATION OF CONSUMER LIFESTYLE RESEARCH IN MARKETING PERSPECTIVE RAO1, T.S., SHARIFF2, A.R.M., SHAFI3, S. and HASIM4, N.H.H. 1, 2, 3, 4 International College of Automotive DRB-HICOM Automotive Complex, Peramu Jaya Industrial Area P.O. Box 8, 26607 Pekan, Pahang, MALAYSIA 1 rao@icam.edu.my 2 rizal@icam.edu.my 3 samsudin@icam.edu.my 4 hasriza@icam.edu.my
ABSTRACT This paper focuses on lifestyle research which is applied to reflect the way in which products fit into a consumer’s normal pattern of living by examining a person’s activities, interests, and opinions (AIO’s) and what opinions they have about themselves and the world around them. It reflects an interesting research field to identify the patterns that develop and emerge from the dynamics of living in a society. These studies provide both general and specific lifestyle items across a range of experiences and issues providing consumer profiles and relating their lifestyles to behaviour. A review of earlier studies reveal that lifestyle and psychographics research is being more frequently used in market segmentation studies for four primary reasons, to identify target markets, provide better explanations on consumer behaviour, improve a company’s strategic marketing, introduce new products and services in tune with the changing preferences and to minimise risk for new products and business ventures. However, it is the managerial ability to translate the segmentation findings into actionable marketing strategy. Finally, it is concluded that understanding the values and lifestyles of consumers better, their behaviour will be more predictable in segmenting the markets according to a mix of attitudes, beliefs, interests, opinions besides their consumption behaviour. Keywords: Consumer Profiles, Value & Lifestyle, Psychographics, Market Segmentation, Consumption Behaviour. Article History: Received 25 August 2013, Accepted 11 January 2014.
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INTRODUCTION
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CONSUMER LIFESTYLES IN MARKETING PERSPECTIVE
The success of the marketing efforts largely depends on the ability of the marketers to study and understand the buyer behaviour of the present and prospective customers and to deal with them accordingly. The most popular construct, which has been in use, is the economic, demographic, social, cultural and psychological variables. The interplay of these affects the consumer purchasing and consumption patterns of products and services. Marketing professionals have combined the demographic variables and the behavioural sciences of social and psychological variables to know more about the human behaviour in the environment in which they live. This approach popular termed as “lifestyle marketing” has turned to be an interesting research field to identify the patterns that develop and emerge from the dynamics of living in a society or a segment thereof. To-day many products are lifestyle, which they portray a style of life sought by potential users. This makes the marketers to reach for relationship between their products and lifestyle groups before designing their marketing strategies to reach the target markets. This study focuses on the concept of consumer lifestyles which acquired a considerable significance as a new dimension for segmenting markets. Further, it presents a review of the earlier studies and its applications a form of market segmentation based upon measures of different psychological attributes of consumers and their perceptions of products.
The concept of consumer lifestyle was first originated in US during 1960’s to profile the consumers with their lifestyle and relate them to their behaviour and consumption habits. During 1970’s it turned into a new dimension for segmenting markets. Lifestyle portrays a style of life sought by potential users. Lifestyle research examines how people live and spend money and efforts in pursuit of objectives considered desirable by -
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particular type of individuals. Lifestyle research attempts to reflect the way in which products fit into a consumer’s normal pattern of living by examining how people spend their time, what things are important to them and what opinions they have about themselves and the world around them. It therefore reflects a person’s activities, interests, and opinions (AIO’s). The AIO’s statement popularly used in lifestyle research serves as a framework for distinguishing between two polar approaches, they are; i) ii)
The situation specific approach which is managerial in nature and focuses on the prediction of product or media related behaviour. The general approach which is more concerned with a broad understanding of consumers (or nonconsumers) aspects of social behaviour.
These studies provide both general and specific lifestyle items about consumers AIO’s across a range of experiences and issues providing consumer profiles and relating their lifestyles to behaviour. Broad-based consumer typologies could be integrated through skilful mixing of product-specific consumer classifications to provide a broad focussed and directional indicator for specific products. 2.1 Application of Consumer Lifestyle Research Much can be learned about lifestyle and probable consumption behaviour by building a profile of consumers based upon such an analysis of their activities, interests and opinions statements. This information combined with the basic demographic information like age, sex, income, education, occupation etc., can give a rounded portrait of a person as a consumer. The application of consumer lifestyle research is undertaken in the broad areas of consumer activity, media markets and consumer sub- groups. i)
Consumer activities. A systematically determined concept of lifestyle can be built based upon the socialpsychological construct with which marketers will be able to interpret, predict and control their environment. These patterns or constructs result in behaviour patterns and attitudes structures maintained to minimise incompatibilities and inconsistencies in a person’s life. The research in psychographic has contributed to change the general knowledge on consumer behaviour through the following studies; a) b) c) d) e) f) g) h)
ii)
Trend data. Repeated studies overtime makes possible to accumulate trend data that can reveal how consumers are changing. Such data provides valuable information in an era when we observe the changing consumer to analyse the factors that remain stable, constantly change to make predictions about the effects of the changes. a) b) c) d) e) f) g) h) i)
iii)
Opinion leadership (King and Sproles, 1973). Innovativeness (Darden and Reynolds, 1971). Social class (Mirvis and Kanter, 1991). Catalogue buying behaviour (Reynolds, 1974). Consumer activism (Mostafa, 2009). Consumer markets (Kim and Srivastava, 1998). Global consumers (Roth, 1995). Middle class buying behaviour (Schaefer et al., 2004).
Consumer choice (Rousseau and Kruger, 1990). Consumer perceptions (Teas and Agarwal, 2000). Determinants of consumer satisfaction (Churchill and Surprenant, 1982). Retail behaviour (Newberry et al., 2003). Customer loyalty (Ball et al., 2004). Customer satisfaction (Xu et al., 2013). Consumer attitude (Goldsmith et al., 2010). Departmental stores (Pei-Shan and His-Peng, 2013). Shopping behaviour (Sun et al., 2000).
New typologies. General segmentation provides the outlines of a new consumer typology. As groupings are identified and confirmed , marketers can think similarly in terms of segments demarcated by © 2014 GETview Limited. All rights reserved
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common sets of activities, interests, needs and values and to develop products, services and media schedules specifically to meet them. a) b) c) d) e) f) g) h)
Consumer segmentation (Kamakura and Wedel, 1995). Segmentation strategy (Haley, 1968). Psychographic lifestyle (Thompson and Kaminski, 1993). Lifestyle segmentation (Todd and Lawson, 2001). Online behaviour (Goode and Harris, 2007). Healthy lifestyle (Dagevos et al., 2011). Internet advertising (Gehrt and Yan, 2004). Values and lifestyles (Sun et al., 2004).
Psychographic lifestyle profiles can provide both general and specific information on a wide range of experiences and issues. These typologies give valuable information relating to a range of consumer preferences and behaviours. Personality traits description have also used to provide fairly generalised consumer typologies (Kinner et al., 1972) with purchase behaviour for particular categories of products (Robertson and Myers, 1969). iv)
Media markets. The media industry is experiencing rapid, unprecedented growth and the competitive environment is increasing all the time. This area of research addresses the issue of how consumers use the media. In practice, media consumers are most likely to exhibit both active and passive characteristics, issues like identifying the style of media use, types of media content, occasional usage, audience selectivity, utility, intentionality and media channels deeply provide idea of their nature and degree of their activity on media. Not only for marketers of products and services, but important is also media producers and distributors to understand how best to satisfy their consumer’s needs. Some of the studies undertaken include the areas of; a) b) c) d) e) f) g) h) i)
Home living patterns (Gunter and Furnham, 1998). Magazine readership (Peterson, 2007). Audience types (Evans and Beltramini, 1987). TV viewers classifications (Rubin, 1979). Home video segmentations (Merwe, 1987). Fashion market segmentation (King and Rings, 1975). Needs and motives (Rubin, 1983). Retail loyalty (Vesel and Zabkar, 2009). Media preferences (Vyncke, 2002).
Audience segmentation hides a great deal of potentially valuable information for advertisers and marketing planners. It also helps to understand viewer’s psychological characteristics which include needs, interests, values, and beliefs, attitudes which will provide fresh and more outlets and respond to different marketing needs. V)
Consumer sub-groups. Psychological research represents a form of market segmentation based upon measures of different psychological attributes of consumers and their perceptions of products. Lifestyle research can be used to classify general psychological attributes of consumers and their perceptions of products, needs, motives and expectations as well as indicators of how they perceive themselves and the rest of the world. a) b) c) d) e) f) g) h) i) j)
The women’s market (Lazer, 1986). The elderly market (Kang and Ridgway, 1996). The opinion leaders (Satow and Johnson, 1978). Credit card usage (Plummer, 1971). Brand choice behaviour (Poulsen, 1990). Traditional and contemporary women (Thompson et al., 1990). Shopping orientation and store patronage (Moye and Kincade, 2003). Working wives and housewives (Shehan, 1984). Lifestyle in tourism (Gross and Brown, 2006). Teenagers intentions and behaviour (Martin and Bush, 2000). © 2014 GETview Limited. All rights reserved
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Lifestyle research is thus used to segment many markets for many products and services. As new markets have emerged such research techniques have been applied to them, reveal similarities, dissimilarities reflecting individualism, self-image and life experiences apart from psychological or socio-economic factors. 2.2 Application of Lifestyle Research Psychographic research or popularly termed as lifestyle research is being more frequently used in market segmentation studies for such primary reasons as: i) ii) iii) iv) v) vi)
3.0
To identify large market segments emerging from many changes and to remain relatively intact overtime. To identify target markets and improve products or services to better meet segment needs. To provide better explanations and predictions of consumer behaviour in terms of behaviour and consumption patterns. To minimise risk for new products and business ventures. To develop promotional strategies, advertising messages and sales appeals in tune with changing life. To explore new distribution methods and improving existing channels distribution.
PSYCHOGRAPHIC RESEARCH IN MARKET SEGMENTATION
A critical review done by Anderson and Golden (1984) discussed in detail about the originated the concept of psychographics as an operational technique to measure lifestyles. America and Britain during 1970’s and 1980’s used this application in advertising and marketing research centres. Since then many other marketing researchers in academic and the commercial world have developed it. The goal of psychographics is to provide quantitate measures of consumer lifestyles in a way that will assist managers in segmenting the market place, positioning products and developing the marketing mix strategies. Psychographics research is being more frequently used in market segmentation studies for four primary reasons. i) ii) iii) iv) v)
To identify target markets. To provide better explanations on consumer behaviour. To improve a company’s strategic marketing. To introduce new and innovative products. To minimise risk for new products and business ventures.
3.1 Identify Target Market Psychographics can be very useful in identifying and explaining the behaviour of markets. Consumer differences extend beyond demographics and the research probes into an individual’s state of mind ie., their personality and their lifestyle. It helps to understand the way the consumers interact in the market place. This research identifies many reasons or motives underlying buying behaviour which helps to design a more effective promotional and marketing strategy. Thus, it can provide marketers with a more complete profile of the target market for a product or service. 3.2 Consumer Behaviour Psychographic research helps to better understand why buyers act as they do so in the market place. Buyer behaviour – including such factors as brand choice, store loyalty, firm loyalty, personal motivations and attitudes, perceptions and preferences can all be explored via this approach to segmentation. This information helps to design future promotional appeals and also as offering similar benefits to potential new users. 3.3 Strategic Marketing The additional marketing information available through psychographic analysis can be employed in planning successful marketing strategies for the firm. Psychographics is more useful for companies that sell expensive products, discretionary goods or services and somewhat indistinguishable products. The strategic information also helps positioning new products/existing products, improve products or services, designing promotional strategies, explore new channels of distribution and so on. 3.4 Minimising Risk By incorporating psychographic research into a company’s product testing and development. Product success becomes more likely. The cost of a new product, brand line extension or proposed venture can be substantial and the risk of failure can be minimised. Though perfect prediction is never possible, an © 2014 GETview Limited. All rights reserved
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understanding of current and potential consumer’s attitude can help to predict their behaviour and significantly lower risk of marketing failure. Therefore valid and reliable information helps to minimise the product failures.
4.0
CONCLUSION
Segmentation studies especially those based on consumer’s needs, product usage, loyalty benefits, lifestyles or other psychographic characteristics offers a rich profile of potential target segments which in turn can lead to the generation of a large number of diverse ideas and strategies. The research in changing consumer lifestyle has contributed to change the general knowledge on consumer behaviour. For instances, in designing a new product or a communication campaign , each idea can be executed in a variety of ways depending on the creativity of the designer than merely on the segmentation findings. Therefore, it is the managerial ability to translate the segmentation findings into actionable strategy favourable to the corporate decision-maker’s objectives. Finally, it is concluded that understanding the values and lifestyles of consumers better, their behaviour will be more predictable in segmenting the markets according to a mix of attitudes, beliefs, interests, opinions besides their consumption behaviour. REFERENCES [1] Ball, D., Coelho, P.S. and Machás, A. (2004): The Role of Communication and Trust in Explaining Customer Loyalty - An Extension to the ECSI Model, European Journal of Marketing, Vol.38 Iss.9/10, pp.1272- 293. [2] Churchill, G.A. and Surprenant, C. (1982): An Investigation into the Determinants of Customer Satisfaction, Journal of Marketing Research, Vol.19 pp.491-504. [3] Darden, W.R. and Reynolds, F.D. (1971): Shopping Orientation and Product Usage Rates, Journal of Marketing Research, Vol.8, No.4, pp. 505-508. [4] Dagevos, H., He, Y., Zhang, X., van der Lans, I. and Zhai, F. (2011): Relationships Among Healthy Lifestyle Beliefs and Body Mass Index in Urban China, Int. Journal of Consumer Studies, Vol.35, Iss.1, pp.10-16. [5] Evans, K.R. and Beltramini, R.F. (1987): A Theoretical Model of Consumer Negotiated Pricing - An Orientation Perspective, Journal of Marketing, Vol.51, No.2, pp.58-73. [6] Gehrt, K.C. and Yan, R.N. (2004): Situational, Consumer and Retailer Factors Affecting Internet, Catalog, and Store Shopping, International Journal of Retail & Distribution Management, Vol.32, Iss.1, pp.5-18. [7] Goldsmith, R.E., Flynn, L.R., Goldsmith, E. and Stacey, E.C. (2010): Consumer Attitudes and Loyalty towards Private Brands, International Journal of Consumer Studies, Vol.34, Iss.3, pp.339-348. [8] Goode, M.M.H. and Harris, L.C. (2007): Online Behavioural Intentions - An Empirical Investigation of Antecedents and Moderators, European Journal of Marketing, Vol.41, Iss.5/6, pp.512-536. [9] Gross, M.J. and Brown, G. (2006): Tourism Experiences In a Lifestyle Destination Setting - The Roles of Involvement and Place Attachment, Journal of Business Research, Vol.59, Iss.6, pp.696-700. [10] Gunter, B. and Furnham, A. (1998): Children as Consumers – A Psychological Analysis of the Young People’s Market, Routledge, New York, USA. [11] Haley, R.I. (1968): Benefit Segmentation - A Decision-Oriented Research Tool, Journal of Marketing, Vol.32, No.3, pp.30-35. [12] Kamakura, W.A. and Wedel, M. (1995): Life-Style Segmentation with Tailored Interviewing, Journal of Marketing Research, Vol.32, No.3, pp.308-317. [13] Kang, Y.S. and Ridgway, N.M. (1996): The Importance of Consumer Market Interactions as a Form of Social Support for Elderly Consumers, Journal of Public Policy and Marketing, Vol.15, No.1, pp.108-117. [14] Kim, N. and Srivastava, R.K. (1998): Managing Intraorganizational Diffusion of Technological Innovations, Industrial Marketing Management, Vol.27, Iss.3, pp. 229-246. [15] King, C.W. and Ring, L.J. (1975): Retail Fashion Segmentation Research - Development and Implementation, Canadian Association of Administrative Sciences. [16] King, C.W. and Sproles, G.B. (1973): Predictive Efficacy of Psycho-Personality Characteristics in Fashion Change Agent Identification, Proc. of the Ann. Conv. of the American Psychological Association, pp.847-848. [17] Kinnear, T., Taylor, J.R. and Ahmed, S.A. (1972): Socio-Economic and Personality Correlates of Ecologically Constructive Purchasing Behavior, Proc. of the 3rd Ann. Conf. of the Assc. for Consumer Research, Chicago. [18] Lazer, W. (1986): Dimensions of the Mature Market, Journal of Consumer Marketing, Vol.3, Iss.3, pp.23-34. [19] Martin, C.A. and Bush, A.J. (2000): Do Role Models Influence Teenagers’ Purchase Intentions and Behavior?, Journal of Consumer Marketing, Vol.17 Iss.5, pp.441-453. [20] Merwe, S. (1987): GRAMPIES - A New Breed of Consumers Comes of Age, Business Horizons, Vol.30, Iss.6, pp.14-19. [21] Mirvis, P.H. and Kanter, D.L. (1991): Beyond Demography - A Psychographic Profile of The Workforce, Human Resource Management, Vol.30, Iss.1, pp45-68. [22] Mostafa, M.M. (2009): Shades of Green - A Psychographic Segmentation of The Green Consumer in Kuwait © 2014 GETview Limited. All rights reserved
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