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Subcultures and Consumer BehaviorCHAPTERTWELVE

1Learning ObjectivesTo Understand What Subculture Is, and Its Relationship to Culture.To Understand Nationality as a Subcultural Influence on Consumer Behavior.To Understand Religious Affiliation as a Subcultural Influence on Consumer Behavior.To Understand Geographic and Regional Residences as Subcultural Influences on Consumer Behavior.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Chapter Twelve SlideHere is an outline of the topics for Chapter Twelve.

Learning Objectives (continued)To Understand Racial Identity as a Subcultural Influence on Consumer Behavior.To Understand Age as a Subcultural Influence on Consumer Behavior.To Understand Gender as a Subcultural Influence on Consumer Behavior.To Understand How Multiple Subcultural Memberships Jointly Influence Consumer Behavior.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 3Chapter Twelve SlideHere is an outline of the topics for Chapter Twelve.

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

4Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideTo Build their Market by Reaching the Hispanic American Consumer

5Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideSubcultureA distinct cultural group that exists as an identifiable segment within a larger, more complex society.6Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideA subculture has beliefs, values, and customers that set them apart from the other members of the same society.6Discussion QuestionsWould you categorize yourself as belonging to any subcultures?How does it affect your consumer purchases?77Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlidePerhaps you belong to religious or ethnic subcultures. Do these affect your grocery decisions, for instance?Relationship Between Culture and Subculture - Figure 12.2 8Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

This diagram gives a good visualization of a subculture. The general U.S. culture is shared by the members of a subculture, but at the same time they have their own unique traits.8Examples of Major Subcultural Categories Table 12.1 CATEGORIESEXAMPLESNationalityGreek, Italian, RussianReligionCatholic, Hindu, MormonGeographic regionEastern, Southern, SouthwesternRaceAfrican American, Asian, CaucasianAgeTeenagers, Xers, elderlyGenderFemale, maleOccupationBus driver, cook, scientistSocial classLower, middle, upper9Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideHere are some of the major subcultural categories that exist in the United States. Many of these will be explored in this chapter.9Nationality Subculture - HispanicStronger preference for well-established brandsPrefer to shop at smaller storesSome are shifting food shopping to non-ethnic American-style supermarketsYouths are more fashion conscious than non-Hispanic peers

10Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideNationality is an important variable for defining subculture in the U.S. since census data shows that more than 1 in 10 Americans is foreign born. The Hispanic subculture is growing in the United States. Some consider it a single group but there are actually several subgroups in the United States. These subgroups can be seen on the following slide. The Hispanic culture does show some differences from the American culture in general. They like brands and see them as more prestigious. They tend to be very fashion conscious. They tend not to be impulsive buyers and prefer to shop at smaller stores; this may be in part because they prefer fresh to frozen or prepared foods.10Why Is Days Inn Running Ads in Spanish, and Who Are the Consumers Targeted by Such Ads?

11Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideBecause Hispanic Americans who Speak Spanish as a First Language Tend to Prefer Spanish-Language Advertising

12Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

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Nationality Subculture HispanicU.S. Hispanic Population by Place of OriginFigure 12.3

13Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideHere we can see the breakdown between the Hispanic subculture and their country of origin. The web link on this page brings you to a website that focuses on Hispanic businesses. Why would a subculture need this type of website? Does this site seem effective in communicating and helping the Hispanic business owner?13Segmenting the Hispanic MarketFigure 12.51414Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

The Hispanic market has been studied intensively to look for effective segmentation variables. One study revealed that people can be defined in relation to their ethnic identity and the strength of the family unit. Combining these two variables produces 4 possible segments. This figure provides a matrix with each of these segments symbolic, strong, weak, and A-symbolic Hispanics. In addition, this figure includes the decision variables an advertiser must choose from when reaching this market. This gives guidance in media decisions.14Religious Subcultures200+ organized religious groups in the U.S.Primary organized faiths include:Protestant denominationsRoman CatholicismIslamJudaismConsumer behavior symbolically and ritualistically associated with the celebration of religious holidays.15Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideReligion is an important subculture when we think about rituals that are performed by subcultures. Think of all the symbolic shopping that is done in preparation and for Christmas day.15Regional SubculturesMany regional differences exist in consumption behaviorWesterners have a mug of black coffeeEasterners have a cup of coffee with milk and sugarWhite bread is preferred in the South and MidwestRye and whole wheat are preferred on the East and West coasts

16Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideFood is an example of where we see very different consumption behavior depending on the region where someone lives. There are differences in category sales, as well as brand sales, in different areas. This web link goes to a regional news site boston.com. In addition to local news and sports, what other differences might be regional?16Major Racial SubculturesAfrican AmericanThe African American Consumer13 percent of the U.S. populationPurchasing power estimated at $845 billion

17Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideAlthough representing only 13 percent of the U.S. population, the African American population is very important to marketers due to their increasing purchasing power and their interest in certain products. For instance, the African American teen spends more on many products compared to same-aged Anglo-white or Hispanic teens. These products include martial arts, basketball, iced tea drinks, body powder, and breath fresheners.17What Are theStrategic Goals of This Ad?

18Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideThis Ad is Placed in Black Media which is Very Important to Many African Americans.

19Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideMajor Racial SubculturesAfrican AmericanPrefer leading brands over private-label brandsBrand loyalHigher than average trips to grocery store and higher spendingSpend more then other segments on telephone services20Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideSome other interesting consumption patterns include a preference for brand names and more frequent trips for grocery shopping. Hair care and telephone services are two other products that tend to be bought more than other segments.20Major Racial SubculturesAsian AmericanFastest growing racial segmentDiverse group including 6 major ethnicities:Chinese, Filipino, Indian, Vietnamese, Korean, and Japanese95% live in metropolitan areas and business ownership is high

21Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideThe Asian market is a challenge for marketers because it is so diverse and there are so many languages spoken. It is hard to determine whether to run an ad to this target in their native language or in English.

Region of Residence for Selected Subcultural Groups Figure 12.7

22Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideMajor Racial SubculturesAsian AmericanIncreasing buying powerDiverse so few trendsMany prefer ads in English as language is self reported as well spoken

Figure 12.8Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 23Chapter Twelve Slide

The figure on this slide shows that English is reported as very well spoken according to Asian Americans. It is important to make the right decisions.23Major Age Subcultures24Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideYou have probably heard these terms before. Marketers and other researchers divide the population into groups depending on the year they were born. There are many differences between these age subcultures, which will be explored in the following slides.24Generation Y According to sources, born 1977-1994 OR 1982-2000Three groupsGen Y Adults 19-28Gen Y Teens 13-18Gen Y Tweens 8-12Twixters 21-29 and live with parents

25Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideGen Y has shifted from TV viewing to the Internet and are less likely to read newspapers. They are the largest users of text messaging and spend a lot of time with online social networks.25Discussion QuestionsIs it ethical for marketers of high-priced goods, an iPod for example, to target tweens?How might they market responsibly?

26Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideThere are many consumer groups who feel that their young tweens are too heavily marketed to by clothing, entertainment, and technology firms. Do you agree?26Generation XBorn between 1965 and 1979Also referred to as Xers, busters, or slackersDo not like labels, are cynical, and do not want to be marketed to

2727Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideGen X is careful to work at jobs they like, regardless of salary. The tend to work to live rather than the baby boomers who lived to work. Although they are not designer focused, they do tend to purchase brand names such as Sony.27Baby BoomersBorn between 1946 1964More than 40 percent of the adult populationMotivated consumersNot anxious to retire and handle it as:Opportunity for a new startA continuation of preretirement lifeUnwelcome disruptionTransition to old age

2828Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideThe baby boomers have a lot of purchasing power due to their size and their propensity to purchase for themselves, others, and their homes. They are mixed on their views of retirement and will therefore purchase in different ways during these golden years.28Older ConsumersRoughly 65 years and olderGrowing segment due to better medical care, declining birthrate and the aging of the large baby boomer segmentThree segments by ageThe Young-Old (65-74)The Old (75-84)The Old-Old (85 and older)

29Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideThe older consumer is an important and growing segment. People are living longer and are healthier and more active at an older age. Many people tend to clump seniors together when, in fact, there are several segments within this group. The young-old tend to travel and purchase at a very high rate.29Older ConsumersSegmentation can also be done on motivations and quality-of-life orientationCyberseniors

30Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideSome research has shown that perceived or cognitive age might be a better way to segment people. Those who feel and act younger will purchase consumer products that are generally consumed by a somewhat younger group. This web link is to AARP, the American Association of Retired People and one of the largest and most powerful associations in the country.30How Seniors Use the InternetFigure 12.93131Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

Older consumers are very active online and are more connected than you might think at first. This graph shows the most common reasons that seniors use the internet and the online activities in which they engage.31Discussion QuestionsHow 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?32Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideTo answer this question, visualize a grocery store and the variety of food categories. Where might you find the three groups of seniors? What about dining out? What are their interests?32Issues in Understanding Gender as a SubcultureSex Roles and Consumer BehaviorMasculine vs. Feminine TraitsConsumer Products and Sex RolesWomen as depicted in Media33Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

Gender plays an important role in some marketing issues. Men and women react differently toward print ads and have very different shopping motives. As such, some consumer products are much more focused to one sex versus the other. It is only in the past few years that men have increased their purchases of consumer care products, including moisturizers and hair care products.

Many women are concerned with the way they are depicted in media and would like to see more of the real women that advertisers like Dove have begun to use. Follow this web link to the Campaign for Real Beauty by Dove to learn more about the campaign.33Working WomenSegments of ALL womenStay-at-homePlan-to-workJust-a-job workingCareer-oriented working

3434Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideWorking women are important consumers and comprise about 60 percent of American women. They can be broken into many segments based on why they work and their occupational category. Think of women you know who work. Which ones are focused on their career versus working just to pay the bills? How might this affect their purchasing behavior?

34Consumer Electronics Products Women Are Most Interested in Buying - Figure 12.1035Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

You might feel that women purchase electronics with a bit less enthusiasm than men. This figure shows the results of a survey asking women which products they are most interested in purchasing. You can see that the DVD player scored very high this is probably related to the timing of the survey and the fact that most people were moving over from VHS or tape to DVDs for viewing movies.35Subcultural InteractionMarketers should strive to understand how multiple subcultural memberships jointly influence consumers behavior36Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve SlideIt is important for marketers to realize that an individual can belong to several of the subcultures presented in these slides and must consider how these influences will work together.36

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall37Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide37