University of Wollongong
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Faculty of Social Sciences - Papers
Faculty of Arts, Social Sciences & Humanities
2015
Using value theory for segmentation in social marketing
Ross Gordon
Macquarie University,
[email protected]
Katherine A. Butler
University of Wollongong,
[email protected]
Christopher A. Magee
University of Wollongong,
[email protected]
Gordon R. Waitt
University of Wollongong,
[email protected]
Paul Cooper
University of Wollongong,
[email protected]
Follow this and additional works at: https://ro.uow.edu.au/sspapers
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Recommended Citation
Gordon, Ross; Butler, Katherine A.; Magee, Christopher A.; Waitt, Gordon R.; and Cooper, Paul, "Using value
theory for segmentation in social marketing" (2015). Faculty of Social Sciences - Papers. 1782.
https://ro.uow.edu.au/sspapers/1782
Research Online is the open access institutional repository for the University of Wollongong. For further information
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Using value theory for segmentation in social marketing
Abstract
This paper presents a survey study with 1,444 low-income older residents in regional NSW, Australia
exploring their value perceptions towards using energy efficiently, as an approach to segmentation in
social marketing. The study theorises that insight regarding the perceived functional, economic,
emotional, social, and ecological value of using energy efficiency by participants can be used to segment,
target and position social marketing programme activities to facilitate energy efficient behaviour(s).
Latent class analysis was conducted on the participant sample, and identified seven distinct latent
classes: frugal eco warriors, value opportunists, greenies, indecisive, apathetic independent spendthrifts,
independents, and ambivalent ecologists. Each of these distinct latent classes displayed particular
orientations with respect to value of using energy efficiently. This analysis presents new insights for
social marketers from an appreciation of how different groups frame value in energy efficiency practices.
The relevance and utility of using value theory as a social marketing segmentation approach offers
academics and policy makers new insights to focusing on value as means for addressing energy
efficiency.
Keywords
social, value, segmentation, marketing, theory
Disciplines
Education | Social and Behavioral Sciences
Publication Details
Gordon, R., Butler, K., Magee, C., Waitt , G. & Cooper, P. (2015). Using value theory for segmentation in
social marketing. World Social Marketing Conference (pp. 26-29). Fuse Events.
This conference paper is available at Research Online: https://ro.uow.edu.au/sspapers/1782
Academic papers
Number: 149
Using value theory for segmentation in social marketing
Dr Ross Gordon, Senior Lecturer in Marketing, Department of
Marketing and Management, Faculty of Business and Economics,
Macquarie
University.
Email:
[email protected]
(Corresponding author).
Model 1. Conceptual framework: synthesis of epistemic and
normative dimensions.
Katherine Butler, Project Manager, Centre for Health Initiatives,
Faculty of Social Sciences, University of Wollongong. Email:
[email protected]
References
Andreasen, A. (1994), “Social marketing: its definition and domain”,
Journal of Public Policy and Marketing, Vol. 13 No. 1, pp. 108-114.
Dr Christopher Magee, Deputy Director, Centre for Health Initiatives,
Faculty of Social Sciences, University of Wollongong. Email:
[email protected]
Anker, T. B. and Kappel, K. (2011), “Ethical challenges in commercial
social marketing”, Hastings, G., Bryant, C. & Angus, K. (eds.), The
SAGE Handbook of Social Marketing, Sage, London, pp. 284-297.
Professor Gordon Waitt, Australian Centre for Cultural Environmental
Research, Faculty of Social Sciences, University of Wollongong.
Email:
[email protected]
ASA (Advertising Standards Authority, UK) (2014), The CAP Code
(12th ed.): The UK Code of Non-broadcast Advertising, Sales
Promotion and Direct Marketing.
Professor Paul Cooper, Sustainable Buildings Research Centre,
Faculty of Engineering, University of Wollongong. Email:
[email protected]
Asscher, J., Hardy, A., Mayhead, J. and Brady, L. (2013), “Independent
review of the Drinkaware Trust (2006-2012)”, Drinkaware.
Attas D. (1999), “What's wrong with ‘deceptive’ advertising?”, Journal
of Business Ethics, Vol 21 No. 1, pp. 49-59.
Abstract
This paper presents a survey study with 1,444 low-income older
residents in regional NSW, Australia exploring their value perceptions
towards using energy efficiently, as an approach to segmentation in
social marketing. The study theorises that insight regarding the
perceived functional, economic, emotional, social, and ecological
value of using energy efficiency by participants can be used to
segment, target and position social marketing programme activities to
facilitate energy efficient behaviour(s). Latent class analysis was
conducted on the participant sample, and identified seven distinct
latent classes: frugal eco warriors, value opportunists, greenies,
indecisive, apathetic independent spendthrifts, independents, and
ambivalent ecologists. Each of these distinct latent classes displayed
particular orientations with respect to value of using energy efficiently.
This analysis presents new insights for social marketers from an
appreciation of how different groups frame value in energy efficiency
practices. The relevance and utility of using value theory as a social
marketing segmentation approach offers academics and policy
makers new insights to focusing on value as means for addressing
energy efficiency.
Baudrillard, J. (1998), The Consumer Society: Myths and Structures,
Sage, London.
Borsboom, D. and Haig, B. D. (2013), “In defense of correspondence
truth: a reply to Markus”, Theory & Psychology, Vol. 23 No. 6, pp. 812818.
Brennan, L., & Parker, L. (2014), “Social marketing: beyond behaviour
change”, Journal of Social Marketing, Vol. 4 No 3, (online first, no page
number).
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to car occupants: population based case control study”, British
Medical Journal, 324:1125.
Cormier, H. (2001), The Truth Is What Works: William James,
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Dann. S. (2010), “Redefining Social Marketing with Contemporary
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Encyclopedia of Philosophy.
Keywords
Haig, B. D. and Borsboom, D. (2012), “Truth, science, and
psychology”, Theory and Psychology, Vol. 22 No. 3, pp. 272-289.
Introduction
Segmentation, latent class analysis, energy efficiency, sustainability
Segmentation has long been considered one of the core principles of
marketing (Wind, 1978), and social marketing (Andreasen, 2002).
However, segmentation strategies in social marketing are often
rudimentary, despite calls for empirical research to advance theory
and practice in this area (Dibb and Carrigan, 2011). Indeed, Dibb
(2014, p1174) identifies that “its [segmentation] application in the
social marketing settings has lagged behind its use in the commercial
sector”. Many social marketing programmes use basic demographic,
or geographic segmentation approaches. For example a recent paper
by Newton et al. (2013) considered ethical issues relating to
segmentation in a social marketing programme in Kenya with the
objective of raising awareness and support for HIV treatment
interventions. The social marketing programme featured in the study
used a basic educational segmentation approach. Various reasons
for the lack of advancement in theory and practice with respect to
segmentation in social marketing have been offered. A lack of skills
and expertise in segmentation are often found in the social marketing
domain (Neiger et al. 2003). Tapp and Spotswood (2013) identify
that many practitioners in social marketing lack formal marketing
training, with people from public health or sustainability backgrounds
akin to the ‘part time marketers’ group identified by Gummeson
(1991). Dibb (2014) also identifies that often there is a lack of access
to big data sets on which to base segmentation strategies that are
often available to commercial organisations such as Amazon, Tesco
or HSBC. Availability of resources is also an issue, as comprehensive
segmentation approaches can be expensive and resource intensive
(Dibb, 2013). Therefore, for segmentation to be used effectively in
social marketing, creativity and flexibility may be required (see
Darnton, 2008).
Hawkes, C. (2013), “Promoting healthy diets through education and
changes in the food environment”, International Conference on
Nutrition (ICN2).
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of Marketing, Vol. 54 No. 3, pp. 1-15.
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ICC Code of Advertising and Marketing Communication Practice.
ISMA (International Social Marketing Association) (2013), “Consensus
definition of social Marketing”, http://www.i-socialmarketing.org/socialmarketing-definition#.VBqYvhbN6wZ
Kotler, P. and Zaltman, G. (1971), “Social marketing: an approach to
planned social change”, Journal of Marketing, Vol. 35 No. 3, pp. 3-12.
Moodie, , R., Stuckler, D., Monteiro, C., Sheron, N., Neal, B.,
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pandemics: prevention of harmful effects of tobacco, alcohol, and
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pp. 670-679.
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Pearson Education.
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Fisheries of Denmark (executive summary in English).
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The Stanford Encyclopedia of Philosophy.
26
Academic papers
Value theory has developed as an area of significant focus in
marketing over the past decade, with value creation emerging as a
core concept in marketing. Indeed, this is reflected in the latest
American Marketing Association definition of marketing as “the
activity, set of institutions and processes for creating,
communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large” (AMA, 2013).
Key areas of interest when considering value theory include
concepts relating to the context of value creation, and concepts
relating to the dimensions of value. In relation to value, this was
originally conceptualised in marketing from a value-in-exchange
perspective (Porter, 1985). Value-in-exchange proposes an
economic approach to value, in which consumers identify value in
consuming goods through a costs-benefits evaluation (Zeithaml,
1988). Later, an experiential contextual approach to value, focused
on value-in-use has emerged (Vargo and Lusch, 2004). Whilst the
concept of value-in-use is not new (see Alderson, 1957; Dixon,
1990), recent work on this in services marketing has conceptualised
value as an interactive and relativistic preference experience related
to the entire experience of consuming goods and services (Holbrook,
2006). Value-in-use identifies that consumer value is realised during
the experience of consuming, rather than being embodied in goods
or services (Sandström et al., 2008). Recently, social marketing
scholars have proposed a value-in-behaviour contextual
perspective. This recognises that consumer may not only perceive
value towards exchanging for and using goods, or using and
experiencing services, but also towards performing behaviours. This
perspective proposes that consumers can perceive value that is, or
is not, realised through the performance of behaviour e.g. what is the
value in eating healthily, or recycling. Therefore, value-in-behaviour
can facilitate a more comprehensive and multi-dimensional
framework of value in social marketing.
Method
With respect to dimensions of value, existing literature suggests that
consumers perceive value in consumer practice (e.g. consuming
goods and services, or performing behaviours) across several
dimensions including functional value, economic value, emotional
value, social value, and ecological value (Sweeney and Soutar, 2001;
Koller et al. 2011). Functional value relates to the utility, ease, and
control provided by using goods or services, or performing
behaviours. It tends to be extrinsically motivated, and is oriented
towards benefits for the self. Economic value is focused on costbenefit analysis of consumer practice, and tends to be intrinsically
motivated. Emotional value refers to when consumer practice occurs
for the emotional experience (e.g. confidence, pleasure, anger or
fear) and for no other end goal, and is intrinsically motivated and self
oriented (Holbrook, 2006). Social value is directed at others and
relates to the influence or influencing other people as a means to
achieving a desired goal, such as status or hierarchy in groups
(Russell-Bennett et al. 2009). Ecological value is intrinsically
motivated, and recognises the increasing importance that citizen’s
place on the impacts of their consumption behaviours and
experiences on the natural environment (Koller et al. 2011). This type
of value focuses utility relating to the perceived impacts on
environmental/ecological issues and concerns, and also on its ability
to enhance or impact on an individual’s self-concept. However,
scholars have identified that existing conceptualisations of value
relating to money, image and status are individualistic in focus, and
what is required is a greater focus on the collective and benefits to
society (Crompton and Kasser, 2009), and the introduction of a
societal value concept (French and Gordon, 2015).
Initial descriptive analyses were conducted using SPSS version 21
statistical software. The achieved sample size was 1,444, with 60%
females (n = 866) and 40% males (n = 578). The mean age was 71
years (SD: 7.3, minimum 60 years, maximum 99 years). For reported
annual disposable income (after tax and Medicare levy), 84.4% of the
sample (n=1219) fell in the lowest income group of earning less than
$26,104 annually. A further 7.9% (n=114) fell in the next income level,
earning between $26,105 and $33,176 per year, and 4.5% (n=65)
earned between $33,177 and $49.816 per year. The majority of the
sample (84.6%) was retired, and of those still working, 3.6% (n=52)
were ‘professional’, 1.9% management (n=28), 1.5% (n=21)
‘technician and trades workers’, and 3.9% (n=57) reported ‘other’. In
relation to highest level of education attained 12.3% (n=178) reported
less than high school, 38.6% of the sample (n=557) reported high
school, 30.8% (n=445) reported College or TAFE, 11% (n=159) a
three year university degree, and 7.3% (n=105) completing Honours
or higher (PhD, Doctorate or Professional Degree).
The present study involved a survey of 1,444 low-income older
residents (aged ≥ 60 years) in regional NSW that assessed their
perceived value towards using energy efficiency. The research was
undertaken as part of a larger project with the objective of facilitating
energy efficiency in the community. Low income older residents are
the participant group for study due to the focus of the grant funding
scheme, and also as this group often faces challenges in managing
energy use, particularly costs due to rising energy prices. Random
digit dialling was carried out to generate the study sample, with a
short telephone questionnaire used to screen for eligibility based on
age, and income level (using the Australian Bureau of Statistics
income bracket definition of low income). An interview administered
questionnaire survey was then undertaken in participant’s homes by
trained researchers using iPads, with responses recorded on the
Qualtrics survey software platform.
All participants gave written informed consent, and ethical approval
for the study was obtained from the appropriate university ethics
committee. Participants were presented with a $30 voucher as
recompense for their time. The survey instrument was developed
following extensive consultation of the value literature, scale
development for the functional value items following the Churchill
(1979) procedure, and a process of cognitive pre-testing (n=24). The
developed functional value scale was used in conjunction with
established value scales to measure functional, economic (Koller et
al. 2011), emotional (Nelson and Byus, 2001), social (Sweeney and
Soutar, 2001) and ecological value (Koller et al. 2011) of using energy
efficiently. Data was transferred to SPSS for initial cleaning and
descriptive analysis, prior to latent class analysis to identify
segmentation clusters based on value perceptions.
Results
Latent class analysis was then performed on participant responses to
the 22 value scale items. Scale items featured the same five point
Likert response scale with anchor points of strongly disagree and
strongly agree. The latent class analysis was conducted using Mplus
version 6.11, and involved testing models with one latent class, two
latent classes, and so on until the optimal number of latent classes
was identified. The optimal number of latent classes was informed by
indices of model fit (e.g., Akaike’s Information Criteria, Bayesian
Information Criteria, and sample-size adjusted Bayesian Information
Criteria) and bootstrap likelihood ratio tests, also taking into account
other important considerations such as the size and distinctiveness of
the latent classes.
The relevance of value creation to social marketing becomes
apparent when considering that research has found that the creation
of positive value perceptions can have a significant effect on
behaviours (Zainuddin et al. 2013). Furthermore, social marketing
programmes that feature service delivery, such as BreastScreen
Queensland, have used value sought by users relating to the service
(value-in-use) as a way to segment and target activities (Zainuddin et
al. 2011). However, empirical research on value in social marketing is
in its infancy (Domegan et al. 2013). Furthermore, the principal focus
in value research has been on creating and improving value offerings
in programme activities. This paper seeks to address the lack of
development of segmentation in social marketing, by presenting a
value theory based segmentation analysis of participants in a
programme to facilitate energy efficiency in regional New South
Wales (NSW), Australia.
The results indicated seven distinct latent classes that were given
descriptive names by the researchers1. The largest class, termed
frugal eco warriors (n=294; 20.4%) reported high perceived
functional, economic, and ecological value in using energy efficiently,
but were ambivalent with respect to emotional, and social value
(ambivalence signified by responding neither agree nor disagree to
value items). The value opportunist’s class (n=278; 19.3%) reported
high-perceived value in using energy efficiently across all value
dimensions. The greenies (n=210; 14.5%) class reported high
functional and ecological value, and were ambivalent for economic,
emotional and social value. The indecisive (n=143; 9.9%) class
reported inconsistent responses across all value dimensions (flitting
between agree, disagree and neither across items in each value
dimensions). This suggests that the indecisive class were unsure or
27
Academic papers
undecided about their perceptions of the functional, economic,
emotional, social and ecological value of using energy efficiently. The
functional ecologists (n=119; 8.2%) class reported high functional and
ecological value, and low economic, emotional and social value. The
independents (n=114; 7.9%) class reported high functional,
economic, emotional and ecological value, and low social value of
using energy efficiently. Finally, there was also evidence of a seventh
class, ambivalent ecologists that accounted for 4% of the sample
(n=61; 4%). Participants in this class were ambivalent on all values,
except perceiving high ecological value in using energy efficiently. As
this class was small, further investigation is required to identify
whether this is a distinct and meaningful class, or a variation of
another class such as frugal eco warriors.
(2011) suggested that understanding the value sought by people in a
social marketing context may offer a useful way in which to segment,
target and position social marketing programme messages and
activities. The present study, is to our knowledge, the first to
empirically test the utility of using value theory in relation to
performance of behaviour(s), using energy efficiently, as a
segmentation strategy. This study identified six distinct latent classes
of participants, each with particular orientations with respect to value
sought from using energy efficiently. This provides useful insight for
energy efficiency programme managers that can be used to develop
and tailor programme activities, and will be used for the development
and implementation of the social marketing programme to be rolled
out as part of the larger project of which this paper reports a
constituent part. As an example, the latent class analysis presented
here suggests that targeting frugal eco warriors with messages and
activities relating to or facilitating functionality (making it easy,
convenient, something you can control), economic value (saving on
energy bills, or even health costs from experiencing thermal
discomfort), and ecological benefits (by using energy efficiently you
can make a difference to the environment) could be effective.
Longitudinal research could be used to assess the effects of such
segmentation strategies on behavioural outcomes.
1
For brevity only the numerical and percentage size of each latent class is presented here.
Tables and figures presenting the entire latent class analysis are available upon request and
will be presented in any presentations of this paper.
Discussion
The results of the present study identified seven distinct latent
classes with respect to value perceptions of using energy efficiently
across the functional, economic, emotional, social and ecological
value dimensions. The results identified that functional value in using
energy efficiently was perceived as being high across nearly all
classes, the indecisive class excepted. This is consistent with extant
value theory literature that finds a preference for seeking functional
benefits from consuming goods and services (Sánchez-Fernández
and Iniesta-Bonillo, 2007). The findings from this study suggest that
high functionality is also important in relation to a social marketing
behaviour(s) – using energy efficiently. Similarly, ecological value was
perceived to be high across all classes except the indecisive class.
This suggests that study participants view using energy efficiently as
a good way of contributing to environmental sustainability and making
a positive impact on ecological outcomes. Perceived economic value
in using energy efficiently was found to be high in three classes:
frugal eco warriors, value opportunists, and independents. Given the
low income characteristic of study participants, and concerns about
rising energy prices, it is perhaps unsurprising that using energy
efficiently was perceived to offer economic benefit to many
participants. However, it is of note that the apathetic independent
spendthrifts perceived low economic value in using energy efficiently.
That functional, ecological, and economic value perceptions tended
towards being high suggests that overall the study participants may
be principally motivated by utilitarian benefits in using energy
efficiently.
In summary, the present study has identified that value theory has
strong relevance to social marketers, not only as a way to offer a
more nuanced understand of participant’s views on a social issue
such as using energy efficiently, but also a potentially useful
segmentation approach. Given the lack of current development of
segmentation in the social marketing field, and the paucity of using
value theory to underpin segmentation approaches, the present study
and the findings here suggests there may be strong potential that is
worthy of further investigation. Indeed, whilst the present study
focuses on energy efficiency, using value theory as a segmentation
approach may be useful for consideration by social marketing
programme managers in other contexts and social behaviours.
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Academic papers
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Abstract
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CHARITY & NFP
Number: 82
Cross-Cultural Shared Leadership as a Vehicle to Achieving
Community-Level Behavioural Change through Capacity
Building
Central to a Shared Leadership Model (SLM) is the principle that
organised networks that pool resources, expertise and information
can be more effective and efficient than those using traditional
hierarchical models (Conger and Pearce, 2003; Wister et al., 2014).
Collaboration provides stakeholders the opportunity to engage in
decision making and to assume responsibility for outcomes (Ansell
and Gash, 2007). Its ability to foster commitment to objectives and
implementation among communities, organisations, stakeholders
and governments (Margerum, 2002) leaves little wonder as to why
collaborative or Shared Leadership is a standard component of public
management (McGuire, 2006). However, the literature reveals that,
while the practice base may be common, the knowledge base akin to
this area of leadership is low (McGuire, 2006; Wang et al., 2014). It
would therefore seem that research is lagging practice in this arena,
and in particular, Shared Leadership has not been investigated at the
community level (Dionne et al., 2014). This paper presents the
beginning of a journey to rectify this shortfall.
Clare Johansson
Doctoral Candidate, Faculty of Business and Enterprise
Swinburne University of Technology
Rowan Bedggood
Senior Lecturer, Faculty of Business and Enterprise
Swinburne University of Technology
Aron Perenyi
Lecturer, Faculty of Business and Enterprise
Swinburne University of Technology
Karen Farquharson
Associate Professor, Faculty of Health, Arts and Design
Swinburne University of Technology
Gina Milgate
Research Fellow, Indigenous Education
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