Chapter 12 Consumer Diversity Learning Objectives Ch 12

Chapter 12 Consumer Diversity

Learning Objectives~ Ch. 12 To understand: 1. The role of consumers’ age and marketing 2. The role of consumers’ gender and sexual orientation and consumer behavior 3. Regional, ethnic, and religious influences on consumer behavior and targeting specific groups

Consumer Diversity

U. S. Population by Age

Age & Consumer Behavior U. S. Age Trends – Teens and Generation Y—Born 1979 to 1994 – Generation X—Born 1965 to 1976 • Some still have “angst” • Boomerang kids • High discretionary income • Delay marriage – Baby Boomers—Born 1946 to 1964 • Largest demographic • Peak earning years – Seniors— 65+ years old

Teen & Tween Market Purchasing Power = $108 Billion World’s teens have similar tastes, attitudes, preferences Brand Loyalty—Develops at a younger age Positioning—Establish identity, rebelling, peer acceptance Advertising Messages—Incorporates symbols, issues, and language of teens Media—Specific TV networks, radio stations, and Internet Recreation and special events

Gen X Born between 1965 and 1976 49 million Fewer Xers own homes Boomerang kids Cynical about obvious marketing Media: alternative radio, cable TV, concerts, sporting events, music publications, vacation spots How is Gen X different from Gen Z?

Baby Boomers Born between 1946 and 1964 78 million Influential consumer segment because of size and buying power Value individualism and freedom Segments: leading boomers, core boomers, and trailing boomers

Baby Boomers & Marketing Target for cars, housing, travel, entertainment, recreation equipment, motor homes Heavy consumers of financial services Gourmet fast food Comfortable clothing Anti-aging products

Seniors Over 65 years old Women outnumber men Reduced information processing skills Susceptible to the “truth effect” Tend to be brand loyal

Seniors & Marketing Aging Population – Health-related products/services – Retirement communities Marketing Communications – Oldies radio – Activity-specific publications & TV – Lifestyle-related events Specialized Sales and Promotion

This ad shows an elderly gentleman enjoying his retirement in a state of financial freedom & independence as a potential result of long-term retirement planning with Allianz. Courtesy Allianz SE, Germany

This ad targets Baby Boom & Senior men who want to look younger but not unrealistically younger. The ad focuses on the active lifestyle of older Americans with a surfboard. Combe Incorporated

Gender/Sexual Orientation & CB Sex Roles- Goals – Agentic – Communal Gender & Sexual Orientation – Masculine – Feminine – Androgynous Differences in Acquisition & Consumption Behaviors – Women = Deliberate, thorough research – Men = Driven by themes, simple heuristics

An increasingly larger number of marketers are beginning to target gay and lesbian consumers in their marketing communications. This ad for Paris-Las Vegas targets gay men. Courtesy Paris Las Vegas

Gender/Sexual Orientation & CB Targeting Gender – Men—More emotional/caring – Women—Important/professional Media Patterns Targeting Gay/Lesbian Consumers

Regional Influences Regions of U. S. - Clustering - PRIZM NE & Mosaic Regions of World

Regions Across the World Individualism vs. collectivism Horizontal vs. vertical orientation Masculine vs. feminine

Ethnic Influences Ethnic Groups Acculturation Multicultural Marketing Ethnic Subcultures in Nations

Ethnic Composition of Minors

Hispanic American Consumers Acculturated Bicultural Traditional Intensity of Ethnic Identification

Hispanic Americans are one of the largest, most diverse, and fastest growing ethnic groups in the United States. This State Farm ad targets this huge target market, which is estimated to include over 42 million members. Copyright State Farm Mutual Automobile Insurance Company 2008. Used by permission.

African American Consumers With rising incomes, want to preserve cultural identity Importance of style, self-image, & elegance

Asian American Consumers Fastest growing major subculture More diverse than Hispanic and African American Strong Emphasis – Family – Tradition – Cooperation Shop frequently/luxury goods

Asian Americans, particularly Chinese Americans, represent a large and lucrative target market for many businesses, including Charles Schwab investment services. Reprinted with permission. Copyright © 2008 Charles Schwab & Co. Inc.

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