Efim B. Galitskiy Elena S. Petrenko Elena G. Galitskaya (The Public Opinion Foundation) Report at the Theoretical and Practical Conference: “International.

The Consumer Strategies of Russian Citizens

Efim B. Galitskiy

Elena S. Petrenko

Elena G. Galitskaya

(The Public Opinion Foundation)

Report at the Theoretical and Practical Conference: “International Marketing Strategies of Companies under Post-Crisis Conditions. Developed and Emerging Markets, CIS and Russia”, December 9-10th, 2010.Peoples’ Friendship University of Russia (PFUR), Higher Institute of Foreign Trade of Dunkirk (ISCID, France).

The Research TasksTo learn the Structure of Modern Consumer

Practices of Russian CitizensTo reveal the groups of Russians for which

these or those styles of consumer behavior are typical

To study the characteristics of each groupTo start learning the dynamics of their size and

habitsTo research the consumer strategies in

population groups having different resource levels

Innovative Analytical Strategy of the POF (Sociography)• Are sequentially applied:

• Principal Components Analysis(classical or categorical)

• Cluster Analysis• Hierarchical• K – means• Classification Tree

• Some methods are used in a special manner• E.g., factors are multiplied by special coefficients

before Cluster Analysis

The Information BasisUnited data of six weekly All-Russian representative

polls of the POF (September – October 2010)General sample size – 12 000 respondentsThe sample covers 205 centers of population, 64 regions of

the Russian FederationMegapoll in the network of the “Georating” project

of the POF (November 2010)68 regions of the Russian Federation are represented, on

the territory of which 91% of Russian adult population liveThe sample covers 1954 centers of population, including

676 cities, 315 urban settlements and 963 villagesSample size in each region of the Russian Federation – 500

respondentsTotal sample size – 34 000 respondents

Question: “Could you tell in what activities were you involved during the last two or three years?”

1. getting bank credit2. getting credit in shop3. PC usage4. Internet usage, maintaining email correspondence5. going abroad6. paying for goods and services with a plastic card7. dealing with foreign currency8. visiting beauty salons9. travelling by air10. buying sporting goods and / or tourist equipment11. attending fitness center or sports club12. using the service of home delivery of goods13. getting supplementary education, upgrading professional skills14. mobile phone usage15. Smartphone usage

Structure of Modern Practices(Revealed by the Principal Components Method)

Modern Practices

High Level Practices*

Practices aimed at individual

development

Practices connected with going

abroad

Basic Practices

Computer and Communicatio

n Practices

Credit Practices

* High Level Practices in the sense of Maslow’s Pyramid (need for self-actualization and knowledge).

Generalized Indicators of Consumer BehaviourGeneralized Indicator * Modern Practices

High Level Practices

Individual development

• Buying sporting goods and / or tourist equipment• Attending fitness center or sports club• Using the service of home delivery of goods• Getting supplementary education, upgrading

professional skills• Smartphone usage

Going abroad• Visiting foreign countries• Dealing with foreign currency• Travelling by air

Basic Practices

Computer and Communication

• PC usage• Internet usage, maintaining email

correspondence• Mobile phone usage

Credit activity• Getting bank credit• Getting credit in shop

*Ratio of average number of options stated by respondents to the general number of options in an indicator.

10 Styles of Consumer Behaviour2 4

34

8

14

9

12

28

18

Style 1. All modern practices (2%)

Style 2. Visiting foreign countries, Computer and Communication and other practices in part (4%)

Style 3. All modern practices except visiting foreign countries (3%)

Style 4. Partly Computer and Communication, credit practices and visiting foreign countries (4%)

Style 5. Computer and Communication prac-tices, individual development (8%)

Style 6. Computer and Communication prac-tices only (14%)

Style 7. Computer and Communication, credit practices (9%)

Style 8. Credit practices and mobile phones (12%)

Style 9. Mobile phones only (28%)

Style 10. No modern practices (18%)

20%

80%

Styles 1-5 – users of high level practices (20% according to six weekly polls as well as the “Georating” data, November

2010)

Users of High Level Practices.Rules of Segmentation

Type

Number of options stated in each group of practices

Other key features of the groups

% of the

popula-tion

Individual development(5 practices)

Visiting foreign countries

(3 practices)


(3 practices)

Credit activity(2 practices)

Style 1. All modern practices 1,91.1 2 2 2; 3 0,4

1.2 3; 4; 5 2; 3 2; 3 1,5

Style 2. Visiting foreign countries, Computer and Communication and other practices in part 4,02.1 2; 3 0; 1 0,8

2.2 0; 1 2 2; 3 1,1

2.3 0; 1; 2 3 2; 3 2,1

Style 3. All modern practices except visiting foreign countries 2,93.1 2; 3; 4; 5 0 0; 1 1; 2 0,3

3.2 2 0; 1 2; 3 2 0,5

3.3 2 0; 1 2; 3 0; 1Beauty salons, Smartphone

0,3

3.4 3; 4; 5 0; 1 2; 3 1,8

Style 4. Partly Computer and Communication, credit practices and visiting foreign countries 3,94.1 1 0; 1 1,2

4.2 0; 1 1 2; 3 2,7

Style 5. Computer and Communication practices, individual development 7,85.1 2; 3; 4; 5 0 0; 1 0 0,4

5.2 0; 1 0 2; 3 0 4,5

5.3 2 0; 1 2; 3 0; 1Beauty salons, no

Smartphone0,7

5.4 2 0; 1 2; 3 0; 1 No beauty salons 2,2

Non-users of High Level Practices.Rules of Segmentation

Number of options stated in each group of practicesOther key features of the

groups

% of the

popula-tion

Individual development(5 practices)

Visiting foreign countries

(3 practices)


(3 practices)

Credit activity

(2 practices)

Style 6. Computer and Communication practices only 14,0

6.1 0; 1 0 2; 3 1; 2 Moscow 0,3

6.2 0; 1 0 2; 3 0 13,7

Style 7. Computer and Communication, credit practices 8,77.1 0; 1 0 2; 3 1; 2 Except Moscow 8,7

Style 8. Credit practices and mobile phones 11,7

8.1 0; 1 0 0; 1 1; 2 11,7

Style 9. Mobile phones only 27,8

9.1 0; 1 0 1 0Secondary education or

higher27,0

9.2 0; 1 0 1 0Lower than secondary education, 18-42 years

old0,8

Style 10. No modern practices 17,5

10.1 0; 1 0 0 0 14,6

10.2 0; 1 01

0Lower than secondary

education, 43 years and older

2,9

Individual development (High Level Practices)

Going abroad (High Level Practices)

Credit activity (Basic Practices)

Computer and Communication (Basic Practices) 0.0

0.5

1.0


0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1Компьютеризация и коммуникации

Современные бытовые практики

Склонность к заграничным поездкам

Склонность к пользованию кредитами

Пользующиеся всеми современными практиками, а иногда и кредитами

Group Russia

Younger than 36 71% 36%

Higher education 65% 20%

Income is higher than 20 000 rub. per month

39% 8%

Can afford large household appliances

70% 19%

Managers and experts 66% 18%

Residents of Moscow 40% 7%





0.5

1.0


Group Russia



Income higher than 20 000 rub. per month

28% 8%


53% 19%

Managers , experts and employees

62% 29%

Residents of megalopolises

47% 18%





0.5

1.0


Group Russia




44% 29%


46% 19%

Experts 34% 13%

Students 17% 5%

Residents of cities with a population from 50 thousand to 1 million

52% 36%





0.5

1.0


Group Russia




46% 29%


38% 19%

Managers and experts 34% 18%

Residents of cities with a population of more than 250 thousand

51% 36%





0.5

1.0

Style 5. Computer and Communication practices, in-dividual development (8%)Group Russia



Income higher than 10 thousand rub. per month

40% 29%

Can afford clothes 81% 58%

Experts 27% 13%

Students 16% 5%

Residents of cities with a population of more than 50 thousand

72% 55%





0.5

1.0

Style 6. Computer and Communication practices only (14%)

Group Russia



Had no income 19% 11%


Experts 19% 13%

Students 12% 5%

Residents of cities 81% 73%





0.5

1.0


Group Russia


Higher or specialized secondary education

75% 57%


41% 29%


Experts, employees and workers

75% 49%

Industry, science, education

30% 19%

Residents of cities with a population of less than 50 thousand, urban settlements

29% 18%





0.5

1.0


Group Russia

36-58 years old 64% 41%

Specialized secondary education

46% 37%

Not enough money to buy clothes

50% 42%

Workers 45% 25%

Residents of cities with a population of less than 50 thousand, urban settlements and villages

58% 45%





0.5

1.0


Group Russia

51-66 years old 35% 24%

Vocational school, general or specialized secondary education

86% 70%

Nonworking pensioners

34% 26%





0.5

1.0


Group Russia

60 years and older 70% 23%

No secondary education

44% 10%

Income around 5-10 thousand rub. per month

60% 36%

Not enough money to buy clothes

61% 42%

Nonworking pensioners

74% 26%

Villagers 41% 27%

Average age of Russians possessing different styles of consumption





Style 5. Computer and Communication practices, individual development (8%)





Style 10. No modern practices (18%)Style

1Style

2Style

3Style

4Style

5Style

6Style

7Style

8Style

9Style 10

31

38

30

39

3134 36

4448

64

Users of High Level Practices (Styles 1-5) by regions, November 2010 (% of the population)

Typ

e A

. (H

igh

reso

urc

es)

Typ

e B

. (M

ed

ium

reso

urc

es)

Typ

e C

. (L

ow

reso

urc

es)

Typ

e D

. (T

he l

east

reso

urc

es)

Typ

e E

. (F

ull

reso

urc

es

pen

sion

ers

)

Typ

e F

. (N

ot

full

reso

urc

es

pen

sion

ers

)

Working and able to work Off-the-job pensioners

67

45

24

116

1

62

41

24

117

2

Six weekly polls, September–October 2010

“Georating”, November 2010

Users of High Level Practices (Styles 1-5) by groups of the Resource Typology of the POF, % of the group

Consumer Structure of groups of the Resource Typology of the POF. “Georating”, November 2010 (% of the group)

Type A Type B Type C Type D Type E Type FWorking and able to work Off-the-job pensioners

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Style 10Style 9Style 8Style 7Style 6Style 5Style 4Style 3Style 2Style 1

Working and able to work Off-the-job pensioners

There’s higher educationin family

There’s no highereducation in family

Graduates Nongraduates

Can affordlarge

householdappliances

Canaffordclothes

Can’taffordclothes

Cities withpopulation

of morethan 250thousand

Cities withpopulationof less than

250thousand

and villages

Moscow

Cities withpopulation

of morethan 250thousand

Cities with apopulation of more than

50 thousand

Cities with apopulation of less than 50thousand and

villages

Specializedsecondaryeducationin family

No specializedsecondary educationin family

Canaffordclothes

Can’taffordclothes

Persons withspecializedsecondaryeducation

Persons withoutspecializedsecondaryeducation

There’s highereducationin family

There’s specializedsecondary education

in family

No specializedsec. education

in family

Cities with apopulation of more than

50 thousand

Cities with apopulation of less than 50thousand and

villages

Resource Typology of Russian Adult Population

A1 (4,8%)

B1 (6,9%)

B3 (1,8%)

B2 (1,7%)

C1 (2,1%)

C5 (3,7%)

C3 (8,7%)

E1 (8,1%)

E2 (4,1%)

F2 (10,3%)

F1 (4,0%)

D2 (5,0%)

D3 (22,0%)

D1 (1,6%)

A – High resources* (4,8%)

B – Medium resources* (11,9%)

C – Low resources* (28,3%)

D – The least resources* (28,6%)

E – Full resources pensioners (12,2%)

F – Not full resources pensioners (14,3%)*Off-the-job pensioners are excluded from this group

Cities withpopulationof less than

250thousand

and villages

Can affordlarge

householdappliances

Can’t affordlarge

householdappliances

B4 (1,5%)

C4 (9,1%)

C2 (4,7%)

Appendix

Question: “Do you read newspapers at least monthly? If so, what carriers do you prefer?”











Style 1

Style 2

Style 3

Style 4

Style 5

Style 6

Style 7

Style 8

Style 9

Style 10

50

65

71

55

6663

68 70

64

49

44

14

29

18 1612

10

1 1 0

16

2320

31

23 24 2528

34

46

In print In the Internet Don't read

Question: “Do you read magazines at least monthly? If so, what carriers do you prefer?”

Style 1

Style 2

Style 3

Style 4

Style 5

Style 6

Style 7

Style 8

Style 9

Style 10

56

70

64 6459

49

54

43

36

17

28

8

23

4

118 8

0 0 0

16

2225

3430

3836

48

58

73

In print In the Internet Don't read











The ConclusionThe following Structure of Modern Consumer Practices

is revealed: Practices aimed at individual development Practices connected with going abroad Computer and Communication Practices Credit Practices

Four Generalized Indicators of the development of these Practices are elaborated

10 Styles of Consumption are discoveredOnly 20% of Russians use the Modern Practices of High

Level (in the sense of Maslow’s Pyramid)This rate is accurate within a tenth of a percent

according to the data of different pollsConnection between the Styles of Consumption and

availability of different resources is demonstrated

Thank you for your attention!

Efim B. Galitskiy Elena S. Petrenko Elena G. Galitskaya (The Public Opinion Foundation) Report at the Theoretical and Practical Conference: “International.

Documents

structure of modern

basic practices computer

cluster analysis slide

smartphone usage slide

rules of segmentation

general sample size

russian adult population

respondents total sample