Chapter 14Subcultures and Demographics

Consumer Behavior: A FrameworkJohn C. MowenMichael S. Minor

Key Concepts Subcultures vs.

demographics Types of U.S.

subcultures Baby boomers Changes in U.S. age

composition How the elderly

process information

The African-American subculture

The Hispanic and Asian subcultures

Regional shifts in population

Social class Class differences in

shopping behavior

Subcultures . . .. . . a subdivision of a national culture that is based on some unifying characteristic.

. . . members share similar patterns of behavior that are distinct from those of the national culture.

Demographic Variables . . .. . . describe the characteristics of populations

Marital Status Income Region Ethnicity Education

Nationality Age Religion Gender Occupation

Age Subcultures

Consumers undergo predictable changes in values, lifestyles, and consumption patterns as they move through their life cycle.

Age Subcultures

Four Major Age Trends

Baby BoomersGeneration XGeneration Y Elderly

The Baby-Boom Generation. . .

. . . are those Americans born between 1946 and 1964 and share lifestyle similarities.

. . . number 77 million.

The Baby...

1930s 1940s 1960s 1970s 1980s

Bust Boom Xers Yers

The Baby Boom Generation... Roomer chinos are

needed now. Their difficulty in

finding good jobs has led to RYAs and ILYAs.

Generation X . . . . . . is small in number, but possesses $125 billion of discretionary income

This group is known for valuing religion, formal rituals (e.g., proms) and materialism,

and has more negative attitudes toward work and getting ahead than the boomers had at their age.

Generation Y . . .. . . is the 72 million children of the baby boomers who first reached adulthood in the year 2000.

This group, like Xers, is more heterogeneous in racial and socioeconomic terms than the boomers.

The ElderlyThe “Graying of America” refers to the fourth major age trend

By the year 2020 Americans over 65 will outnumber teenagers two to one.

The Elderly... Process information differently. Experience motor skill declines which mean

walking, writing, talking, etc. abilities deteriorate.

Ethnicity . . .

. . . refers to a group bound together by ties of cultural homogeneity (i.e., linked by similar values, customs, dress, religion, and language).

U.S. Population Projections

0

10

20

30

40

50

60

70

80

90

White Black Asian Hispanic

1995

2000

2010

2020

African-American Subculture Represents almost

13 percent of the U.S. population.

Income deprivation a major factor: In the 1990s, 37 % of African-American households had incomes of under $15,000.

The Hispanic Subculture

. . . is the second-fastest-growing ethnic sub- cultural group in the United States and will become the largest ethnic minority in the U.S. by the year 2010.

Commonalities: Language (82 % of U.S. Hispanic households

speak primarily Spanish). Religion (over 85% of Hispanics are Catholic). Tendency to live in metropolitan areas (63%).

Hispanic SegmentationThere are at least four distinct segments:

Mexicans (65.2 % of U.S. Hispanics)

Cubans (4.3 %)

Puerto Ricans (9.6 %)

Central and South Americans (14.3 %)

The Asian-American Subculture. . . is the fastest-growing ethnic subculture in the United States.

The percentage of Asian-Americans who graduated from college is nearly twice that of white Americans

Asian-American family incomes are significantly higher than the other ethnic subcultures

More than Hispanics, Asian-Americans differ in language and culture of origin

Comparing Anglo-, African-American and Hispanic Buying

No brand loyalty differences No differences in coupon proneness, impulse

buying, or shopping for generic products African-Americans and Hispanics are more

likely to shop for bargains

Representation in Advertisements African-Americans

and Hispanics are slightly under-represented.

Asians are slightly over-represented.

Regional Subcultures . . . . . . have distinct lifestyles resulting from variations in climate, culture, and ethnic mix of people.

Consequently, different product preferences exist.

Regional Subcultures . . .

Population winners. . . The West (Nevada, Arizona, Idaho…)

Population losers. . . The East (and North Dakota)

Geodemographics . . .

. . . takes as a unit of analysis the neighborhood (i.e., census blocks) and obtains demographic information on consumers within the neighborhood.

Social Classes . . . are relatively

permanent and homogeneous strata in a society that differ in their status, wealth, education, possessions, and values.

Both actual and perceptual factors distinguish groups: Occupation Lifestyles Values Friendships Manner of Speaking Possessions

Social Class and Buying Behavior Social class better

reflects purchases that symbolically represent lifestyles and values.

Income better predicts major appliance purchases.

Social Class and Lifestyles

Four generalizations can be made:

Social class influences consumer lifestyles Social class is a predictor of resources

owned People buy products and services to

demonstrate their membership in a particular social class

People also purchase goods and services to help advance their social standing

Other Subcultures A growing rural population

Telecommuters, retirement living, second home.

Disabled Americans 49 million in number.

Internet community.

Managerial Implications Positioning. One method of positioning a

product is to differentiate it vis-à-vis competitors by making special appeals to subgroups or subcultures.

Environmental Analysis. Managers should conduct environmental analyses in order to track lifestyle changes in subcultures. Analysis may also offer insight into emerging subcultures.

Implications continued Research. Marketing research can identify

the unmet needs of subcultures. Marketing Mix. Differences between age

cohorts, ethnic groups and regions and social classes have implications for differences in promotional, product, and pricing strategy.

Segmentation. Manufacturers can use age and ethnic subculture appeals as a segmentation variable.