CHAPTER TWELVE Subcultures and Consumer Behavior Learning Objectives

CHAPTER TWELVE Subcultures and Consumer Behavior

Learning Objectives 1. To Understand What Subculture Is, and Its Relationship to Culture. 2. To Understand Nationality as a Subcultural Influence on Consumer Behavior. 3. To Understand Religious Affiliation as a Subcultural Influence on Consumer Behavior. 4. To Understand Geographic and Regional Residences as Subcultural Influences on Consumer Behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 2

Learning Objectives (continued) 5. To Understand Racial Identity as a Subcultural Influence on Consumer Behavior. 6. To Understand Age as a Subcultural Influence on Consumer Behavior. 7. To Understand Gender as a Subcultural Influence on Consumer Behavior. 8. To Understand How Multiple Subcultural Memberships Jointly Influence Consumer Behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 3

Why Is State Farm Running Magazine Ads in Spanish? At Whom Are These Ads

To Build their Market by Reaching the Hispanic American Consumer Copyright 2010 Pearson Education,

Subculture A distinct cultural group that exists as an identifiable segment within a larger, more complex society. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 6

Discussion Questions • Would you categorize yourself as belonging to any subcultures? • How does it affect your consumer purchases? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 7

Relationship Between Culture and Subculture - Figure 12. 2 Copyright 2010 Pearson Education, Inc.

Examples of Major Subcultural Categories Table 12. 1 Copyright 2010 Pearson Education, Inc. Publishing

Nationality Subculture - Hispanic • Stronger preference for well-established brands • Prefer to shop at smaller stores • Some are shifting food shopping to nonethnic American-style supermarkets • Youths are more fashion conscious than non-Hispanic peers Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 10

Why Is Days Inn Running Ads in Spanish, and Who Are the Consumers Targeted

Because Hispanic Americans who Speak Spanish as a First Language Tend to Prefer Spanish-Language

Nationality Subculture – Hispanic U. S. Hispanic Population by Place of Origin Figure 12.

Segmenting the Hispanic Market Figure 12. 5 Copyright 2010 Pearson Education, Inc. Publishing as

Religious Subcultures • 200+ organized religious groups in the U. S. • Primary organized faiths include: – Protestant denominations – Roman Catholicism – Islam – Judaism • Consumer behavior symbolically and ritualistically associated with the celebration of religious holidays. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 15

Regional Subcultures • Many regional differences exist in consumption behavior – Westerners have a mug of black coffee – Easterners have a cup of coffee with milk and sugar – White bread is preferred in the South and Midwest – Rye and whole wheat are preferred on the East and West coasts Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 16

Major Racial Subcultures African American • The African American Consumer – 13 percent of the U. S. population – Purchasing power estimated at $845 billion Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 17

What Are the Strategic Goals of This Ad? Copyright 2010 Pearson Education, Inc. Publishing

This Ad is Placed in “Black Media” which is Very Important to Many African

Major Racial Subcultures African American • Prefer leading brands over private-label brands • Brand loyal • Higher than average trips to grocery store and higher spending • Spend more then other segments on telephone services Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 20

Major Racial Subcultures Asian American • Fastest growing racial segment • Diverse group including 6 major ethnicities: – Chinese, Filipino, Indian, Vietnamese, Korean, and Japanese • 95% live in metropolitan areas and business ownership is high Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 21

Region of Residence for Selected Subcultural Groups – Figure 12. 7 Copyright 2010 Pearson

Major Racial Subcultures Asian American • Increasing buying power • Diverse so few trends • Many prefer ads in English as language is self reported as well spoken Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Figure 12. 8 Chapter Twelve Slide 23

Major Age Subcultures Generation Y Generation X Copyright 2010 Pearson Education, Inc. Publishing as

Generation Y • According to sources, born 1977 -1994 OR 1982 -2000 • Three groups – Gen Y Adults – 19 -28 – Gen Y Teens – 13 -18 – Gen Y Tweens 8 -12 • Twixters – 21 -29 and live with parents Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 25

Discussion Questions • Is it ethical for marketers of high-priced goods, an i. Pod for example, to target tweens? • How might they market responsibly? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 26

Generation X • Born between 1965 and 1979 • Also referred to as Xers, busters, or slackers • Do not like labels, are cynical, and do not want to be marketed to Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 27

Baby Boomers • • Born between 1946 – 1964 More than 40 percent of the adult population Motivated consumers Not anxious to retire and handle it as: – Opportunity for a new start – A continuation of preretirement life – Unwelcome disruption – Transition to old age Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 28

Older Consumers • Roughly 65 years and older • Growing segment due to better medical care, declining birthrate and the aging of the large baby boomer segment • Three segments by age – The Young-Old (65 -74) – The Old (75 -84) – The Old-Old (85 and older) Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 29

Older Consumers • Segmentation can also be done on motivations and quality-of-life orientation •

How Seniors Use the Internet Figure 12. 9 Copyright 2010 Pearson Education, Inc. Publishing

Discussion Questions • How might the three senior segments differ in their consumption of food products? • How might a marketer of a food product market differently to the three subgroups? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 32

Issues in Understanding Gender as a Subculture • Sex Roles and Consumer Behavior – Masculine vs. Feminine Traits • Consumer Products and Sex Roles • Women as depicted in Media Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 33

Working Women • Segments of ALL women – Stay-at-home – Plan-to-work – Just-a-job working – Career-oriented working Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 34

Consumer Electronics Products Women Are Most Interested in Buying - Figure 12. 10 Copyright

Subcultural Interaction Marketers should strive to understand how multiple subcultural memberships jointly influence consumers behavior Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 36

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide 37