AIO Analysis

Group 7 1
Group Members

Aafreen Babar
Fedora D’Souza
Lachish Awad
Melissa Nazareth
Rohit Kumar Gupta
Group 7 2
 Flow of the presentation
• About AIO
• Need for AIO
• AIO Inventories
• Caselet 1: Cuppa Noodles
• Caselet 2:
• Pros/Cons of AIO Analysis
• Conclusion

Group 7 3
• Need for lifestyle segmentation
• Lifestyle: A way of life or a style of living that
reflects the attitudes and values of a person
• Tools of lifestyle segmentation:
– AIO
– VALS

Group 7 4
Group 7 5
Activity Based
Sports Shoe Company

v/s

Group 7 6
Interest Based
Rock Concert

v/s

Group 7 7
 Opinion Based
Spirituality related Books

v/s

Group 7 8
 Need for AIO
• To find people with similar lifestyles
• To define and describe the target segment
• To determine which lifestyle segments will produce the most profitable
customers
• To better design marketing communications
– Ad pegs
– Reduce spillage

Group 7 9
 AIO inventories

Marketers develop two types of inventories:

o One is generalized inventory that can be applied across

product categories and identifies broad segments such as
homemakers, sports enthusiasts and fashion conscious
consumers.
o Second category is specific to a product category for example a
lifestyle inventory to describe internet users, purchasers of new
car or users of high tech products.
 GENERALIZED AIO INVENTORIES

• Generalized AIO inventory is developed by Wells and Tigert.

• They formulated 300 AIO statements and asked respondents to agree or
disagree with each one on a five point scale.
• Typical statements were “I would rather stay home than go out for fun” and
“I dress for comfort rather than fashion”
• Wells and Tigert then reduced these 300 items to 22 lifestyle dimensions by
factor analysis, a method of grouping items that are highly correlated.
 Contd…..
• By using responses to the statements Wells and Tigert
ascertained consumers as price conscious and fashion
conscious and so on.
• Then they used these 22 lifestyle dimensions to describe
and segment consumers.
 PRODUCT SPECIFIC AIO INVENTORIES

• An example of product specific AIO inventory is one developed by a

manufacturer to identify those most likely to buy new car.
• A group of lifestyle characteristics that were relevant to the purchase of a
car was determined from focus group interviews with recent purchasers of
these items.
• A sample of men were then asked to rate themselves on these
characteristics
• Men were divided into those who were among the first to purchase new
car (innovators ) versus those who purchased later(non innovators)
 MEASUREMENT/USE OF AIO
• Measurement of the AIO is used by marketers as a research tool
to determine influences on consumer behavior and appropriate
consumer markets.
• Researchers will ask respondents to state how strongly they
agree or disagree with a series of statements about their
activities, interest, and opinions. Answers are linked to
demographics . Questionnaires are typically quite lengthy and
contain statements such as:

I would rather stay home than go out for fun.

I dress for comfort rather than fashion.
I enjoy watching talk shows on television.
I am the kind of person who loves to make impulsive purchases.
Likert scale questionnaire type

Strongly disagree Neither Strongly

agree
Question 1 2 3 4 5 6 7
1 Overall I am satisfied working in
this organisation
2 I prefer to spent time in my
home in leisure time
3 I am often expected to do
things that are not reasonable
4 I have confidence in my
decision
5 There is a friendly feeling
between management and staff

6 Management usually keeps us

informed about things we want
to know
Case 1: Cuppa Mania Noodles
• Nestle introduced Maggi atta instant noodles in 2005
• Packaged in an easy to make and easy to carry Cup
format
• Contains real vegetables and the goodness of Calcium
• Tag line: Just add garam paani and carry on jaani!

• Initially carried out Demographic and Geographic

segmentation
• Then later carried out the AIO analysis which focussed on
consumer psychographics and lifestyle patterns
Are 24 hours in a day less for you? You are okay spending Rs. 25 for
• Strongly Agree breakfast
• Agree • Strongly Agree
• Neither Agree Nor Disagree • Agree
• Disagree • Neither Agree Nor Disagree
• Strongly Disagree • Disagree
• Strongly Disagree
Are you open experimenting and
trying out different things?
• Strongly Agree
• Agree
• Neither Agree Nor Disagree
• Disagree
• Strongly Disagree
 Advantages of AIO
• Provides Psychological / Lifestyle profile of the consumers
• To precisely define the right consumers of the products or
company
• Helps marketers understand consumers consumption and
purchasing habits
• Helps in development of effective positioning strategies and
effective achievement of marketing objectives
• Like all other segmentation tools AIO minimizes risk of targeting
the wrong audience

Group 7 21
 Limitations of AIO
• Overlapping of consumers in various categories so much
that there is difficulty in differentiating the potential
consumers
• It initially emphasizes on Activities, Interests and
Opinions which is excessively narrow to categorize
consumers
• It needs to broaden and include attitudes, values,
demographics, media patterns, and usage rates
• Alienating other groups of low user index
 Conclusion
• Lifestyle segmentation is one of the most effective ways
to create segments for consumer products with the help
of AIO tool.
• Because life style is highly predictive of many purchase
behaviours, marketers attempt to characterize
consumers' life style patterns by asking them questions
about their activities, interests, and opinions.
Thank you

Group 7 24