Consumer Behavior Test 1

According to a Harvard Research Specialist:

"Women are not seeing marriage as a first step to buying a home..."

The purchase power of the gay market has been estimated at

$500 billion to $800 billion.

Can you guess what percent in each generation is on at least one prescription-drug?

->18: 24% -18-44: 35% -45-64: 62.1% -65+: 84%

Distribution of Income

-A critical aspect of demographics for marketers -One country with a relatively low average income can have a sizable middle-income segment, while another country with the same average income may have most of the wealth in the hands of a few individuals

Income

-A household's income level combined with its accumulated wealth determines it's purchasing power. -Income enables purchases but does not generally cause or explain them. Occupation and education directly influence preferences for products, media, and activities; income provides the means to acquire them. -Therefore, income is generally more effective as a segmentation variable when used in conjunction with other demographic variables. -How wealthy one feels may be as important as actual income for some purchases.

Full Nest II: Middle-Aged Married with Children at Home

-A major difference between this group and delayed Full Nest I is the age of the children. -Children are generally over age 6 and are becoming more independent, creating new consumption needs. -Families with children age six+ are the primary consumers of lessons of all types, dental care, soft drinks, presweetened cereals, and a wide variety of snacks.

Ethnic Subcultures

-African Americans -Hispanics -Asian Americans -Native Americans -Asian-Indian Americans -Arab Americans

Marketing to Native Americans

-Although each tribe is small relative to the total population, the geographic concentration of each tribe provides easy access for marketers. -Sponsorship of tribal events and support for tribal colleges, training centers, and community centers can produce positive results for firms that do so over time.

Hispanic American Demographics: Buying Power

-Although the average Hispanic household income is relatively low, the purchase power of the Hispanic market is estimated at $978 billion and is expected to grow by 33% over the next five years. -Income, education, language, and identification with Hispanic culture change across generations. -Given that over 40% of growth in the Hispanic population is attributable to immigration, the level of acculturation plays a major role in the attitudes and behaviors of Hispanic consumers.

Secular Society

-America is basically a secular society. -The educational system, government, and political process are not controlled by a religious groups, and most people's daily behaviors are not guided by strict religious guidelines.

The Household Life Cycle

-American households follow much more complex and varied cycles today. Therefore, researchers have developed several models of the household lifecycle (HLC). -Each HLC stage presents unique needs and wants as well as financial conditions and experiences. -HLC provides marketers with relatively homogenous household segments that share similar needs with respect to household-related problems and purchases.

Protestant Subculture

-Approximately 45% of American adults identify themselves as Protestant. -While there are many types of Protestant faiths with significant differences between them, most emphasize direct individual experience with God as a core tenet. -Protestant values and attitudes have tended to shape the core American culture. The WASPs (White Anglo-Saxon Protestants) have historically dominated America in terms of numbers, wealth, and power. -The diversity across and within denominations creates numerous subcultures within the larger group.

Education

-Approximately 86% of Americans have a high school degree, and 28% have completed college. -Education is increasingly critical for a "family wage" job. -Traditional high-paying manufacturing jobs that required relatively little education are rapidly disappearing. -High paying jobs in the manufacturing and service sectors today require technical skills, abstract reasoning, and the ability to read and learn new skills rapidly. -Since individuals tend to have spouses with similar education levels, these difference are magnified where spousal income is considered.

Asian-Indian American Buying Power

-As a group, they are well educated, affluent, and fluent in English; yet most retain ties to their Indian background. -In some ways India is more like Europe than America, relative to territories and languages, explain the diversity among members of this group.

Types of Gender Role

-Ascribed Role -Achievement Role

Asian American Buying Power

-Asian Americans are the highest educated and the highest income group. -The estimated purchase power is $509 billion and is expected to grow by 37% over the next five years. -This group is also the most diverse group, with numerous nationalities, languages, and religions. -However, most Asian Americans come from cultures influenced by Confucianism. -This group's home base cultures have also typically placed a very strong value on traditional, extended families. -Education, collective effort, and advancement are also highly valued.

Marketing to Asian-Indian Americans

-Asian-Indian Americans are concerned with financial security and save at a higher rate than the average American. -They do not have a "throw-away" mentality and shop for value and look for quality and durability. -These consumers respond well to marketers' long-term involvement in the Indian community.

Asian-Indian American Media Usage

-Asian-Indian Americans attend to the general mass media. -They can also be targeted through specialty magazines such as Masal and India Abroad, online sites such as IndiaAbroad.com, as well as cable TV, radio stations, and newspapers in regions with significant populations. -The internet is also an effective way to market to these consumers.

Media that Men Consume

-Automotive -General men's -Fishing/hunting -Sports -Motorcycles

Examples of Moving Beyond Stereotypes

-Barbara K tools -- cushioned handles -Smith & Wesson -- redesigned to "fit" women's hands

Single Parent I: Young Single Parent

-Birth or adoption by singles is increasingly common. Roughly 37% of children are born to unmarried mothers. -Divorce also continues to be a significant part of American society. -This type of family situation creates many unique needs in the areas of child care, easy-to-prepare foods, and recreation.

Born-Again Christians

-Characterized by a strong belief in the literal truth of the Bible, a very strong commitment to their religious beliefs, having had a "born-again" experience, and encouraging others to believe in Jesus Christ. -This religious subculture tends to have somewhat lower education and income levels than the general population and tend to have more traditional gender role orientation. -They are very receptive to programs, books, and movies that depict traditional family values. Firms with a reputation for supporting similar values would be well received by this segment.

Marketing to Children

-Children are a very large market. Spending on children aged 3-12 is estimated at $178 billion, and spending by these children the same age is around $26 billion.

Word-Of-Mouth

-Consumers generally trust the opinions of people (family, friends, acquaintances) more than marketing communications -Unlike marketing communications, these personal sources have no reason not to express their true opinion and feelings. -The importance of WOM is generally high, and its importance relative to advertising varies somewhat across product types.

Categories of Innovation

-Continuous Innovation -Dynamically Continuous Innovation -Discontinuous Innovation

External Influences of Consumer Behavior

-Culture -Subculture -Demographics -Social Status -Reference Groups -Family -Marketing Activities

Young Couples: No Children

-Decision to marry or live together brings about a new HLC stage. -Most in this group have dual incomes and are relatively affluent. -Spend heavily on theater tickets, expensive clothes, luxury vacations, restaurant meals, and alcoholic beverages. -Can afford nice cars, stylish apartments, and high-quality home appliances.

Mass Communication Information Flows

-Direct Flow -Multistep Flow

Single-Item Index

-Education -Occupation -Income -Marketers generally think of these as direct influencers of consumption behavior rather than determinants of status that then influence behavior.

Marketing Strategy and Family Decision Making

-Effective marketing strategy requires a thorough understanding of the family decision-making process. -Marketers can use a family decision making grid to detail each member's influence at each stage of the process.

Older Stages of the Household Life Cycle (>64)

-Empty Nest II -Older Single

Media that Women Consume

-General women's -Parenting/child rearing -Health -Home/home service -Epicurean

Compared to prior generations, Baby Boomers are:

-Higher income, higher education -More tech savvy -Defining retirement differently

Hispanic American Media Usage

-Hispanics often speak Spanish and often prefer Spanish-language media. -Serious marketers will attempt to target Hispanics through one or more Spanish-language media venues. -Examples include Spanish-language TV networks such as Univision, Telefutura, and Telemundo. -Bilingual teens often read the same English language magazines and watch the same television programs as their non-Hispanic counterparts. -They are much more likely to read such teen magazines as Seventeen and YM. -One of the magazines targeting female Hispanic teenagers, Latina, is mostly English, though most of the ads are in Spanish. This group also uses Spanish-language magazines, television, and radio.

Multi-Item Index

-Hollingshead Index of Social Position: Index of Social Position (ISP) -Warner's Index of Status Characteristics: Index of Status Characteristics (ISC) -Census Bureau's Index of Socioeconomic Status: Socioeconomic Status Scale (SES)

Types of Households

-Household -Family Household -Nonfamily Household

Agreements

-How does a culture ensure business obligations are honored? -How are disagreements resolved? -Some cultures rely on a legal system; others rely on relationships, friendships, kinship, local moral principles, or informal customs to guide business conduct.

Family decision making has been categorized as:

-Husband-dominant -Wife-dominant -Child-dominant -Joint

Native American Consumer Groups

-In recent years, native Americans have taken increased pride in their heritage and are less tolerant of inaccurate stereotypes of either their history or their current status. -Marketers using Native American names or portrayals must ensure accurate and appropriate use.

Empty Nest I: Middle-Aged Married with No Children

-Includes married couples whose children have left home, couples who chose to not have children, and second marriage households in which children are not living with the parent. -Typically dual income and busy. -Spend on dining out, expensive vacations, second homes, luxury cars, time-saving services. -Prime market for financial services and upscale children's products -About $35 billion/year spent on grandchildren by baby boomers.

Roles in Family Decision Making

-Initiators -Information Gatherers -Influencers -Decision Makers -Purchasers -Users

Youth/Age Oriented Values (Other Oriented)

-Is family life organized to meet the needs of the children or the adults? -Are younger or older people viewed as leaders and role models?

Consumers

-It is not possible to anticipate and react to customers' needs and desires without a complete understanding of consumer behavior. -Discovering customers' needs is a complex process, but it can often be accomplished by marketing research.

Non-Christian Subcultures

-Jewish (2%) -Muslim (0.6%) -Buddhist (0.5%)

Jewish Subculture

-Judaism represents 2% of American adults and is unique in that historically it has been an inseparable combination of ethnic and religious identity. -Jews are heavily concentrated in the Northeast but increasingly dispersing throughout the U.S., particularly the Sunbelt. -American Jews tend to have higher-than-average incomes and education levels. -In most ways, Jewish consumption patterns are similar to those of other Americans with similar education and income levels.

Delayed Full Nest I: Older Married with Young Children

-Many baby boomers delayed having children until their mid-30s resulting in a large number in this stage. -Major difference between this segment and the younger new parents is income. -Spend heavily on child care, mortgage payments, lawn care, and household furnishings. -Want only the best for their child and willing and able to pay for it.

Can You Rank the Top 3 Homebuyer Groups?

-Married Couples (59%) -Single Females (21%) -Single Males (11%)

Global Youth Culture

-Mass Media and the Internet have had an impact of uniformity among teens around the world. -They tend to watch many of the same shows, see the same movies and videos, listen to the same music, and they tend to dress alike.

Upward Pull Strategy

-Middle Class -Aspirations: To belong to upper-middle class. -Prefer: Products consumed by upper-middle class. -Positioning: Upper-class symbolism for middle-class products.

Middle-Aged Stages of the Household Life Cycle (35-64)

-Middle-Aged Single -Empty Nest I -Delayed Full Nest -Full Nest II -Single Parent II

Arab American Consumer Groups

-More than 80% of Arab Americans are U.S. citizens, and approximately 75% were born in the U.S. -Most Arab Americans are tired of negative stereotyping and misrepresentations about their culture.

Muslim Subculture

-Muslims in America are not necessarily Arabs, but are culturally diverse (Arab Americans, African Americans, Asian Americans, and Hispanics). This religious subculture represents roughly 0.5% of the American adult population. -There are a variety of Muslim sects with varying belief patterns, though all are based on the Koran. -In general, Muslims tend to be conservative with respect to drug and alcohol use and sexual permissiveness. -This subculture has not attracted the attention of marketers except as it overlaps with the Arab American subculture.

Native American Demographics: Population and Size

-Native Americans account for approximately 4.1 million Americans. -Nearly 50% live in the West, and 30% live in the South. While many Native Americans live on or near reservations, others are dispersed throughout the country.

Occupation

-Occupation is probably the most widely applied single cue we use to initially evaluate and define individuals we meet. -One's occupation provides status and income. -The type of work one does and the types of individuals one works with over time also directly influence one's values, lifestyle, and all aspects of the consumption process.

Asian American Media Usage

-One estimate is that 80% of Asian Americans can be reached with "in-language" promotions. -Television networks now offer packaged services to specific groups. For example, EchoStar's Dish network offers a "Chinese Package" called the "Great Wall TV Package" with 25 channels included in the package. -Asian Americans are highly tech savvy and heavy users of the Internet. -Over 85% of households have computers and Internet -Not surprisingly, Internet-based marketing to the Asian community is growing rapidly.

Internal Influences

-Perception -Learning -Memory -Motives -Personality -Emotions -Attitudes

Types of Demographics

-Population and Size -Occupation -Educatiom -Income -Age

The mature market consists of:

-Pre-depression -Depression -Baby Boom

Reference groups may influence __________ and ________ differently depending on situation.

-Product category -brand

Age

-Proper age positioning is critical for many products. Our age shapes the media we use, where we shop, how we use products, and how we think and feel about marketing decisions. -Age carries with it culturally defined behavioral and attitudinal norms, which affect our self-concepts and lifestyles.

Interesting Facts about Gen Y

-Really two sub-markets: Twenty-somethings and teens -Expected to have the highest education of previous generations with incomes to follow -Very tech savvy with media options including internet, cell phones, and video games -A strong market for automobiles with brands like Toyota creating edgy and affordable models such as the Scion to target them

Ethnic groups are the most commonly described subcultures, but _________ and __________ subcultures also exist.

-Religious -Geographic

Christian Subcultures

-Roman Catholic -Protestant -Born-Again Christian -These three make up 75% of the US adult population.

Roman Catholic Subculture

-Roughly 21% of American adults are Roman Catholic. -The Catholic church is highly structures and hierarchical. The Pope is the central religious authority, and the basic tenet of the Catholic church is that a primary purpose of a marital union is procreation. -Catholics have few consumption restrictions or requirements associated with their religion. -Marketers targeting this group can reach the more committed members through specialized magazine and radio programs.

Full Nest I: Young Married with Children

-Roughly 7% of households are young married couples with children. -The addition of the first child creates many changes in lifestyle and consumption. -This stage yields new purchases of baby clothes, furniture, food, and health care products.

Gender roles in the U.S. are _______, both genders making many ___________.

-Shifting -Purchase decisions

Younger Stages of the Household Life Cycle (>35)

-Single I -Young Couples: No Children -Full Nest I -Single Parent I

There are two basic approaches to measuring social status:

-Single-item index -Multi-item index

Forms of Group Influences

-Social Media -Word of Mouth -Buzz Marketing -Opinion Leaders and Market Mavens -Diffusion Process -Asch Phenomenon

Considerations in Approaching a Foreign Market

-Standardized Marketing Strategy -Individualized Marketing Strategy/Glocalization

Stereoype Vs. Reality of Generation X

-Stereotype: Xers as disenfranchised youth -Reality 1: Xers are more highly educated than previous generations -Reality 2: Xer women are more highly educated than Xer men. -Reality 3: Xers are getting married, having families, and facing the time pressures associated with these events. -Reality 4: Reaching Xers requires special attention to media, particularly online

Boomers are also:

-Strong market for "anti-aging" products, travel, and financial services -Often alienated by overly "youth oriented" appeals in ads.

Marketing to the lower class is often controversial. For example:

-THe rent-to-own business when firms charge exorbitant interest rates. -The marketing of "sin" products such as cigarettes and alcohol. -Not marketing to this group when there is a clear need.

Arab American Demographics: Population Size and Location

-The Arab American population has been estimated at approximately 3.5 million. -This group shares a common Arabic heritage and the Arabic language. Many members of this group have attended Western or Westernized schools and were fluent in English prior to coming to America. -One-third of all Arab Americans live in California, New York, and Michigan. -Inaccurate Stereotype: 66% are Christian; 24% are Muslim.

Hispanic American Demographics: Population and Size

-The Hispanic culture is heavily influenced by the Roman Catholic church, with a strong family orientation. -By 2030, Hispanics are expected to represent 23% of the U.S. population.

Hispanic American Consumer Groups

-The Hispanic market is now the largest and fastest growing ethnic subculture in the U.S. -Like the other ethnic groups in America, Hispanics are diverse. -Many marketers feel the Hispanic subculture is not a single ethnic subculture but rather is made up of three main and several minor nationality subcultures. -Generational groups also exist which drive differences in language, national identity, and values. -Increase acculturation, use of English, and a move away from traditional values accompany the move from first to third generation.

Things

-The cultural meaning of things leads to purchase patterns that one would not otherwise predict. -The differing meanings that cultures attach to things, including products, make gift-giving a particularly difficult task. -For example, what type of gift is appropriate and when does receipt of a gift "require" a gift in return?

Marketing to Arab Americans

-The first rule in reaching this market is to treat its members with respect and accuracy. -Attention to the unique traditions of the community can pay large dividends. -Arab Americans are much more likely to be entrepreneurs.

Etiquette

-The generally accepted ways of behaving in social situations. -Behaviors considered rude or obnoxious in one culture may be quite acceptable in another! -Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.

Native American Media Usage

-The larger tribes all have their own newspapers and radio stations. -In addition, there are two national Indian-oriented newspapers and several national radio shows and magazines.

However, marketing to children is fraught with ethical concerns, including:

-The limited ability of younger children to process information and to make informed purchase decisions. -Marketing activités, particularly advertising, can produce undesirable values in children, resulting in inappropriate diets, and cause unhealthy levels of family conflict.

Middle-Aged Single

-The middle-aged single category (age 35 to 64) include never married and divorced with no child-rearing responsibilities. -This group represented roughly 14.4 million household in 2006, which is about 47% of all single-person households. -The middle-aged single have higher incomes than young singles. -Often live in nice condos, frequent expensive restaurants, own luxury cars, travel often, and are a major market for gifts.

Population and Size

-The population of the U.S. is approximately 309 million today and is expected to surpass 320 million by 2015. -The population has grown steadily since 1960 despite a declining birthrate due to longer life expectancies, the large baby boom generation moving through their child-bearing years, and immigration.

Empty Nest II: Older Married Couples

-There are about 12.2 million households in this segment, and it is expected to grow rapidly over the next 10 years as the Baby Boomers age. -Most couple in the over-64 age group are either fully or partially retired. -The younger members are healthy, active, and often financially well-off. -They have ample time and are a big market for RVs, cruises, and second homes. They also spend a lot of money on grandchildren.

Asian-Indian American Demographics: Population Size and Location

-There are approximately 2.25 million Americans of Indian heritage (from India). -This segment of the population is growing rapidly due to immigration. -Asian-Indian Americans are concentrated in New York and California, with significant numbers in New Jersey, Illinois, and Texas as well.

Native American Buying Power

-There are approximately 550 Native American tribes, each with its own language and traditions. Many of the tribes have reservations and quasi-independent political status. -In general, Native Americans have limited incomes, but this varies widely by tribe. The overall buying power of this group is estimated at $65 billion and is expected to grow by 28% in the next five years.

Older Single

-There are more than 16 million older single in the U.S., and this group is growing rapidly. -Roughly 70% of all older singles are female and roughly 2/3 of older singles live alone. -Being older, single, and generally retired, this group has unique needs for housing, socialization, travel, and recreation.

Buddhist Subculture

-There are nearly as many Buddhists as Muslims in the U.S., made up of primarily Asian Americans and whites (although 6% of Asian Americans are Buddhists, with 43% being Christian). -There are a variety of Buddhist sects in America -Marketers have largely ignored this market due to its size and diverse ethnic composition.

Marketing to Asian Americans

-There are several Asian American markets, based primarily on nationality and language. -These can be further segmented on degree of acculturation, social class, generation, lifestyle, and other variables.

Arab American Media Usage

-There are specialized newspapers, magazines, and radio and television stations focused on this market. -For example, EchoStar's Dish Network offers and Arabic language package.

Arab American Buying Power

-This group is somewhat younger than the general population, better educated, and have a higher than average income. -Since WWII, many Arab immigrants have been business proprietors, landowners, or influential families fleeing from political turmoil in their home countries.

Single Parent II: Middle-Aged Single with Children at Home

-This group often faces serious financial pressures. The single parent often lacks some or all of the financial, emotional, and time support that the presence of a spouse generally provides. -This group is inclined to use time-saving alternatives such as ready-to-eat food, and eat at fast-food restaurants.

African American Demographics: Buying Power

-This group represents $910 billion in buying power and is expected to grow by more than 25% over the next five years. -On average, African Americans are younger than the white population and tend to have less education and lower household income levels. -However, stereotyping this segment as being of lower income would not be accurate. Almost 1/3 of black household incomes are above the median level for whites. -Education, income and purchasing power have risen dramatically among African American over the past several decades.

Types of Nonverbal Communication

-Time -Etiquette -Things -Agreements -Relationships -Symbols -Space

The meaning of time varies in two major ways:

-Time perspective -- the culture's overall orientation toward time -Interpretations assigned to specific uses of time

Asian American Consumer Groups

-Two-thirds of Asian Americans are immigrants, with a high percentage primarily using their native language, except for Filipinos. -More than language differ among the groups. In fact, the concept and term Asian American was developed and used by marketers and others who study these groups rather than by the members themselves.

Factors Affecting the Spread of Innovations

-Type of Group -Type of Decision -Marketing Effort -Fulfillment of Felt Need -Compatibility -Relative Advantage -Complexity -Observability -Trial ability -Perceived Risk

Single I

-Young (18-34) unmarried individuals. -In 2006, there were roughly 67.4 million people in this age group, with 68% of men and 60% of women being single. -Basically the unmarried members of the younger Gen X and older Gen Y. -Great market for activities such as going to bars, movies, and concerts.

For most innovations, the diffusion process appears to follow a similar pattern over time:

-a period of relatively slow growth -followed by a period of rapid growth -followed by a final period of slower growth

The male market is also diverse in both its _________ and _________ toward gender roles, work, and household chores.

-attitudes -behaviors

Observable shifts in behavior, including consumption behavior, often reflect underlying shifts in __________. Therefore, it is necessary to understand the underlying ___________ in order to understand current and future consumer behavior.

-cultural values -value shifts

How families interact in a purchase decision is largely dependent on

-culture and subculture in which the family exists. -the role specialization of different family members -the degree of involvement each has in the product area of concern -their personal characteristics of the family members.

Studies of family decisions have focused on __________ and ignored _____________.

-direct influence -indirect influence

Cultural values give rise to ______ and associated _______, which in turn influence ____________.

-norms -sanctions -consumption patterns

Since an individual's overall status is influenced by several dimensions, ___________ indexes are generally less accurate than are well-developed ____________ indexes.

-single-item -multi-item

The Traditional Family Life Cycle

1) People married in their early 20s 2) Couple had several children 3) Their children grew up and started their own families 4) The original couple retired 5) The male would eventually die 6) A few years later the female would die

The following female segments provide an example of the diverse nature of the adult female population:

1) Traditional housewife 2) Trapped housewife 3) Trapped working woman 4) Career working woman

Green Marketing

1) developing products whose production, use, or disposal is less harmful to the environment than the traditional versions of the product 2) developing products that have a positive impact on the environment 3) tying the purchase of a product to an environmental organization or event

Reference group influence can take three forms:

1. Informational Influence 2. Normative Influence (utilitarian) 3. Identification Influence (value-expressive)

Four Criteria that are particularly useful in classifying groups:

1. Membership 2. Strength of Social Tie 3. Type of Contact 4. Attraction

Steps of the Decision Process

1. Problem Recognition 2. Information Search 3. Alternative Evaluation and Selection 4. Outlet Selection and Purchase 5. Post-purchase Processes

The Marketing Mix includes:

1. Product 2. Communications 3. Price 4. Distribution 5. Services

The percent of the U.S. population accepting of Gay Relationships ranges from

30% to 59%

Percentage of Non-Family Households in America

32.7% -Male HH 15.1% -Female HH 17.6%

Generation X

45 million people -Born between 1965 and 1976 -Matured during difficult economic conditions in the U.S. -First generation to be raised by mainly dual-career households, with 40% spending at least some time in a single-parent household before age 16.

Percentage of Family Households in America

67.3% -Married Couple 50.5% -Children under 18 at home 21.4% -No children under 18 at home 29.0% -Single Father 1.8% -Single Mother 7.2% -Other 7.9%

Non-Family Household

A householder living alone or exclusively with others to home he or she is not related

Modern Gender Orientation

A marriage where husband and wife share responsibilities. Both work, and they share homemaking and child care.

Traditional Gender Orientation

A marriage with the husband assuming the responsibility for providing for the family and the wife running the house and taking care of the children.

Dynamically Continuous Innovation

Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.

Discontinuous Innovation

Adoption of this type of innovation requires major changes in behavior or significant importance to the individual or group.

Continuous Innovation

Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer.

African American Media Usage

African Americans make greater use of mass media than do whites, have different preferences, and report more influence by mass media ads than do whites.

African American Demographics: Population Size and Location

African Americans, or blacks (surveys do not indicate a clear preference for either term among African Americans), constitute 13% of the American population. This group is concentrated in the South and major metropolitan areas outside of the South.

Gay and lesbian consumers are loyal:

Approximately 89 percent of gays and lesbians are brand-affiliated and are highly likely to seek out brands that advertise to them.

Individual/Collective Oriented Values (Other Oriented)

Are individual activity and initiative valued more highly than collective activity and conformity? -Asian cultures are more collective -U.S. Cultures are more individualistic

Postponed Gratification/Immediate Gratification Oriented Values (Self-Oriented)

Are people encouraged to "save for a rainy day" or to "live for today"?

Problem Solving/Fatalistic Oriented Values (Environment Oriented)

Are people encouraged to overcome all problems or do they take a "what will be, well be" attitude? -Is there an optimistic, "we can do it" orientation? -Mexico and the Middle-East countries tend to fall toward the fatalistic end of the continuum.

Risk Taking/Security Oriented Values (Environment Oriented)

Are those who risk their established positions to overcome obstacles or achieve high goals admired more than those who do not? -A society that does not admire risk taking is unlikely to develop enough entrepreneurs to achieve economic change and growth.

Asian American Demographics: Population Size and Location

Asian Americans represent an important subculture. While relatively small in size this group will continue to grow.

Purple

Associated with death in many Latin American countries

Symbols

Colors, animals, shapes, numbers, and music have varying meanings across cultures. -Failure to recognize the meaning assigned to a symbol can cause serious problems.

Depression Generation

Composed of approximately 28 million individuals who were born between 1930 and 1945. They were small children during the Depression or WWII and matured during the prosperous years of the 1950s and early 1960s. They "invented" rock and roll and grew up with music and television as important parts of their lives. -Marketers target this segment utilizing themes associated with an active lifestyle and breaking with stereotypical portrayals of older consumers.

Blue

Connotation of femininity in Holland; masculinity in Sweden, United States

Household

Consists of all the people who occupy a housing unit (a house, apartment, group of rooms, or single room designed to be occupied as a separate living quarters).

Competitive/ Cooperative Oriented Values (Other Oriented)

Does one obtain success by excelling over others or by cooperating with them?

Diversity/Uniformity Oriented Values (Other Oriented)

Does the culture embrace variation in religious belief, ethnic background, political views, and other important behaviors and attitudes?

___________ function like subcultures.

Generations

Materialistic/Nonmaterialistic Oriented Values (Self-Oriented)

How much importance is attached to the acquisition of material wealth? -All societies known to man throughout history are and have been materialistic.

Relationships

How quickly and easily do cultures form relationships and make friends? -Americans tend to form relationships and friends quickly and easily. -Asian and European friendships can last for generations

Situation: Many of Tim's friends regularly consume health foods. Response: Tim decides that health foods are good for you and begins to consume them regularly. -What type of Influence is this?

Identification Influence

Situation: Over time, Tim notices that successful executives dress conservatively. Response: Time believes that a conservative image is appropriate for executives and develops a conservative wardrobe. -What type of Influence is this?

Identification Influence

Situation: Tim sees an ad showing "smart young people on the way up" serving Redondo. Response: Tim begins to serve Redondo. -What type of Influence is this?

Identification Influence

What is a melting pot?

Immigrants from various countries coming to America quickly surrendered their old languages, values, behaviors, and even religions. -In their place, they acquired American characteristics that were largely a slight adaptation of Western European features.

Public Luxuries

Influence: -Strong product and brand Examples: -Snow board -Health club

Private Luxuries

Influence: -Strong product and weak brand Examples: -Hot tub -Home theater system

Private Necessities

Influence: -Weak product and brand Examples: -Clothes washer -Insurance

Public Necessities

Influence: -Weak product and strong brand Examples: -Shoes -Automobiles

Situation: A friend mentions that Brooks Brothers has a good selection of suits. Response: Needing a new suit, Tim visits a Brooks Brothers store. - What type of Influence is this?

Informational Influence

Situation: At several friends' homes, Maxwell House coffee is served. Response: Tim decides to give Maxwell House a try. -What type of Influence is this?

Informational Influence

Situation: The best skier in the group uses TRAK skis. Response: Tim buys a set of TRAK skis. -What type of Influence is this?

Informational Influence

Hard Work/Leisure Oriented Values (Self-Oriented)

Is a person who works harder than economically necessary admired more than one who does not?

Active/Passive Oriented Values (Self-Oriented)

Is a physically active approach to life valued more highly than a less active orientation?

Nature Oriented Values (Environment Oriented)

Is nature regarded as something to be admired or overcome?

Performance/Status Oriented Values (Environment Oriented)

Is the culture's reward system based on performance or on inherited factors such as family or class?

Tradition/Change Oriented Values (Environment Oriented)

Is tradition valued simply for the sake of tradition? -Is change or "progress" an acceptable reason for altering established patterns?

How will we provide superior customer value to our target market?

Marketing Strategy

Multistep Flow

Marketing activities and other information go to opinion leaders then to the relevant market segment or directly to the relevant market segment

Direct Flow

Marketing activities straight to relevant market segment

Can you guess which generation is the highest prescription-drug user?

Mature Market

America has traditionally been viewed as a _____________.

Melting Pot

Gender-Based Marketing Retail Strategy

Men are increasingly shopping for household and other products traditionally purchased by females, and females are shopping for "masculine" products such as lawn mowers and power tools. -Retailers have begun showing very masculine men shopping for household products and carry power tools targeted at women.

Triangle

Negative in Hong Kong, Korea, Taiwan; positive in Colombia

Market Segmentation in Gender-Based Marketing

Neither the women's nor men's market is homogenous.

Situation: An ad stresses that "Even your friends won't tell you" if you have bad breath -- they will just ignore you. Response: Tim buys the recommended mouth wash. -What type of Influence is this?

Normative Influence

Situation: Tim notices that his friends buy premium beers though he can't taste the difference. Response: For parties, but not for home use, Tim buys premium beers. -What type of Influence is this?

Normative Influence

Situation: Two neighbors joke about Tim's car being dirty. Response: Tim washes and waxes his car. -What type of Influence is this?

Normative Influence

Normative Influence

Occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction

Informational Influence

Occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information

Identification Influence

Occurs when individuals have internalized the group's values and norms.

Family Household

One having at least two members related by birth, marriage, or adoption, one of whom is the householder (householder owns or rents the residence)

Space

Overall use and meanings assigned to space vary widely among different cultures -How office space is allocated -Personal space

Environment-Oriented Values

Prescribe a society's relationship to its economic and technical as well as its physical environment

Product Strategy Moving Beyond Stereotypes

Rather than adapting colors to fit stereotypes (e.g., pink power tools), companies are adapting their features in ways that make their products more functional

Other-Oriented Values

Reflect a society's view of the appropriate relationships between individuals and groups within that society

Self-Oriented Values

Reflect the objectives and approaches to life that the individual members of society and find desirable

Gender-Based Marketing Communications

Research suggests men and women process and respond differently to various communications elements including sexual appeals, music, verbal style, etc.

Yellow Flowers

Sign of death in Mexico; infidelity in France

Gay and lesbian consumers are educated:

Some 83 percent of gays and lesbians have either attended or graduated from college

Deer

Speed, grace in United States; homosexuality in Brazil

Visible Consumption

Strong reference group influence on brand

Non-necessity

Strong reference group influence on product

White Lilies

Suggestion of death in England

White

Symbol for mourning or death in the Far East; happiness, purity in the United States

Opinion Leader

The "go to person" for specific types of information. This person filters, interprets, and passes along information. -Possess enduring involvement for specific product categories. This leads to greater knowledge and expertise.

Gay and Lesbian consumers are affluent:

The average annual income for a gay household is $61,000, 20.4 percent higher than in a heterosexual household.

Power Distance

The degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society

Religious Subcultures in America

There are a number of religious subcultures in America. Religion is important, and directly influences the behaviors of many Americans. This includes consuming religiously-themed products and avoiding the consumption of other products, such as alcohol.

If you worked in Walmart's meat department, how would you slice the meat for Hispanics versus the general population?

Thinner -Hispanics prefer thinner cuts of meat for use in: --fajitas --carne asada (marinated grilled beef served in tortillas) --stir-fry dishes

Religious/Secular Oriented Values (Self-Oriented)

To what extent are behaviors and attitudes based on the rules specified by a religious doctrine?

Extended/Limited Family Values (Other Oriented)

To what extent does one have a life-long obligation to numerous family members? -Extended family critical in South/Central America

Masculine/Feminine Oriented Values (Other Oriented)

To what extent does social power automatically go to males?

Cleanliness Oriented Values (Environment Oriented)

To what extent is cleanliness pursued beyond the minimum needed for health? -U.S. very high on personal hygiene -- some think to an extreme

Sensual Gratification/Abstinence Oriented Values (Self-Oriented)

To what extent is it acceptable to enjoy sensual pleasures such as food, drink, and sex? -Cultures differ in their acceptance of sensual gratification.

Example of how gender roles are shifting

Today, women influence 80% of all vehicles sold.

Ascribed Role

Type of gender role based on an attribute over which the individual has little or no control.

Achievement Role

Type of gender role based on performance criteria over which the individual has some degree of control.

7

Unlucky number in Ghana, Kenya, Singapore; lucky in Morocco, India, Czechoslovakia, Nicaragua, United States.

Red

Unlucky or negative in Chad, Nigeria, Germany; positive in Denmark, Romania, Argentina. -Brides wear red in China, but it is a masculine color in the United Kingdom and France

Private Consumption

Weak reference group influence on brand

Necessity

Weak reference group influence on product

Asian-Indian American Consumer Groups

While diverse in many ways, most Asian-Indian Americans share many cultural traits, including: -placing a high value on education, particularly their children's education -husbands playing a dominant role in making many of the family decisions.

Owl

Wisdom in United States; bad luck in India

Blended Family

a family consisting of a couple, one or both of whom were previously married, their children, and the children from the previous marriage of one or both parents.

Market Maven

a generalized market influencer who provides significant amounts of information about various products, places to shop, and so on.

Generation or Age Cohort

a group of persons who have experienced a common social, political, historical, and economic environment.

Reference Group

a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior

Social Class System

a hierarchical division of a society into relatively distinct and homogenous groups with respect to attitudes, values, and lifestyles. "Pure" social classes do not exist in the U.S. or most other industrialized societies.

Extended Family

a household that includes the traditional family plus additional relatives

Traditional Family

a married couple and their own or adopted children living at home

Bureau of Census defines Hispanic as

a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.

Demographics

a population in terms of its size, structure, and distribution -Both a result and a cause of cultural values -For example, densely populated societies, such as China, are likely to have more of a collective orientation than an individualistic one. -Disposable income is one aspect of demographics -- the rapid growth in personal income in parts of China has led to an overall market explosion.

Market Segmentation

a portion of a larger market whose needs differ from the larger market

Subculture

a segment of a larger culture whose members share distinguishing values and patterns of behavior.

Generation Y (echo boom generation)

account for 71 million Americans. They are the children of the original baby boomers and were born between 1977 and 1994. -Gen Y is characterized by a strong sense of independence and autonomy. -They are assertive, self-reliant, emotionally and intellectually expressive, innovative, and curious. -It is a multiracial generation, with African American and Hispanic teenagers often being the style leaders.

Marketing to Asian Americans involves more than translating advertisements into the appropriate languages. It also requires

adopting and infusing advertisements with cultural symbols and meanings relevant to each nationality segment.

Meishi

an important aspect of Japanese business ettiquette... "a man without a Meishi has no identity in Japan." What is Meishi? It is the exchange of business cards.

The expanding wealth, independence, purchase power, and time pressure of women makes them:

an important target market

Opinion leadership is category specific, meaning:

an opinion leader in one product category is often an opinion seeker in others.

The gay market is estimated to be

anywhere between 2% - 7% of the adult U.S. population, or between 4.5 million and 16 million people over age 18.

Upper-Upper Class

aristocratic families that make up the social elite. Members with this level of social status generally are the nucleus of the best country clubs and sponsors of major charitable events. -Most communities in America have one or more families with significant "old money." They generally stay out of the public spotlight unless they enter politics or support a charity or community event. -These individuals live in excellent homes, drive luxury automobiles, own original art, and travel extensively.

Pre-Depression Generation

composed of those individuals born before 1930, living through the Depression, WWII, and witnessing radical social, economic, and technologic change throughout their lives. -As a group, they are conservative and concerned with financial and personal security. -This generation of some 12 million Americans is part of a broader category of consumers called the mature market (age 55+)

Upper-Middle Class

consists of families who possess neither family status derived from heritage nor unusual wealth. -Occupation and education are key aspects of this stratum, consisting of successful professionals, independent businesspeople, and corporate managers. Making sure their children get a sound education is very important to this group -They are highly involved in the arts and charities, and belong to private clubs,

Upper-Lower Class

consists of individuals who are poorly educated, have very low income, and work as unskilled laborers. Most have minimum-wage jobs. -Members of this class live in marginal housing, often located in depressed and decayed neighborhoods. Crime, drugs, and gangs are often close at hand and represent very real threats. The are concerned about the safety of their families and their children's future. -The marketing system has not serviced this group effectively.

Working Class

consists of skilled and semiskilled factory, service, and sales workers. Though some households in this social stratum seek advancement, members are more likely to seek security for and protection of what they already have. -Many working-class members dislike the upper middle class and prefer products and stores positioned at their social-class level. -They are proud to be able to do "real work" and see themselves as the often-unappreciated backbone of America.

Middle Class

consists of white-collar workers and high-paid blue-collar workers. The middle-class core typically has some college education though not a degree. -Many members of this class feel very insecure due to recent trend of workforce reductions. They are concerned about respectability and care what their neighbors think. -Members of the middle class are likely to get involved in do-it-yourself projects

Today, the U.S. is becoming increasingly diverse, fueled by:

continued immigration and an increase in ethnic pride, along with identification with non-European heritages among numerous Americans.

Event Marketing

creating and sponsoring an event that has a particular appeal to a market segment. This can be an effective with African American and other ethnic communities.

Adaptation is often required in ________________ marketing. McDonald's uses a popular Chinese sports celebrity to promote their products in China.

cross-cultural

Family decisions also allow

different members to make specific subdivisions of the overall decision

Many products are losing their traditional ___________.

gender typing

Lifestyle

how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them

Consumer problems arise

in specific situations and the nature of the situation influences the resulting consumer behavior.

Each market segment requires its own

marketing strategy

Cause-Related Marketing (CRM)

marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause. -Cause-related sponsorship (corporate spending toward CRM) continues to rise, with an increase from $120 million in 1990 to $1.5 billion in 2008.

Some marketers are finding age to be

more important than ethnicity in certain situations. -A good example of this is the teen market. -However, the degree of customization needed for an ethnic audience varies by product and strategy.

Social Rank

one's position relative to others on one or more dimensions valued by society, also referred to as social call and social standing

Family purchases are often compared to

organizational buying decisions. -However, with family purchasing, there is usually less explicit criteria, and most family purchases directly affect the other members of the family. -Most important, many family purchases are inherently emotional and affect the relationships between the family members.

What is the target market decision based on?

our ability to provide the selected segment(s) with superior customer value at a profit

Consumer Decisions result from

perceived problems and opportunities

Status Crystallization

reflects the consistency of status dimensions -moderate in the U.S.

Target Market

segment(s) of the larger marker on which we will focus our market effort

Status Dimensions

set limits on one's lifestyle, including one's residence -parental status -education -occupation -income

Cultures are not _____.

static -They typically evolve and change slowly over time.

Gender Roles

the behaviors considered appropriate for males and females in a given society.

Culture

the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans and members of society

Lower-Upper Class

the current generation's new successful elite. These families are relatively new in terms of upper-class social status and have not been accepted by the upper crust of the community. For example, they are often unable to join the same exclusive clubs or command the same respect of the "blue bloods." -Many engage in conspicuous consumption to show off their great wealth. These nouveaux riches to the "in thing" on a grand scale.

Buzz Marketing

the exponential expansion of Word-of-Mouth. -It happens when "word spreads like wildfire" with no or limited mass media advertising to support it. -Generally not supported by large advertising budgets -Creating Buzz is a key aspect of guerrilla marketing.

Diffusion Process

the manner in which innovations spread throughout a market

Tweens (aka Millennials)

the newest generation was born after 1994, with an estimated 62 million people -It is generally too early to characterize Millennials, but they will likely continue trends in increased education diversity, and technology usage. -Marketers are increasingly targeting older Millennials, known as "tweens" (age 8-14) (29 million), going after early loyalty and hefty allowances

The existence of the subcultures provide marketers with:

the opportunity to develop unique marketing programs to match the unique needs of each.

Family Decision Making

the process by which decisions that directly or indirectly involve two or more family members are made. -Different family members often become involved at different stages of the decision process.

Cohort Analysis

the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.

A common mistake is assuming an ethnic group's members are

the same as the larger culture except for superficial differences. -Much attention must be given to the language, script, actors, and selling to target effectively.

Consumer Behavior

the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer society.

Self-Concept

the totality of an individual's thoughts and feelings about oneself.

Gender Identity

the traits of femininity (expressive traits) and masculinity (instrumental traits). Individuals have varying levels of each trait.

Baby Boom Generation

those individuals born during the dramatic increase of births between the end of WWII and 1964. There are almost 80 million baby boomers, which is substantially more than the two preceding generations combined. -Baby boomers were heavily influenced by the Kennedy Assassination, the Vietnam War, recreational drugs, the sexual revolution, the energy crisis, the rapid growth of divorce, and the Cold War, as well as rock and roll and the Beatles.

Group

two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent.

Lower-Lower Class

very low incomes and minimal education. This segment of society is often unemployed for long periods of time and is the major recipient of government support and services provided by nonprofit organizations.

Marketers must determine what before they can affect the family decision making process?

who in the family plays which role

Cultural Values

widely held beliefs that firm what is desirable