RCS 341 Exam 3

Capitalist class

1% upper-upper old money - inheritance social elites sponsors of charitable events, community, and civic activities high education and income levels politically conscious target market for luxury, country clubs, designer labels

Upper-Middle class

13% new money CEOs, professionals, independent business owners College degree, master's degree, MBA (25% more in earnings) Home is the symbol of their success (residential area) country club members target market for reserved area, simplicity

Early adopters

13.5% opinion leaders leaders in social setting, slightly above-average education marketing implications: high quality; price not important; ambiance

Laggards

16% suspicious of new products/services extremely cost-conscious neighbors and friends are info sources marketing implications: price-oriented; convenience

Innovator

2.5% risk-takers, higher education use media for learning a new trend reference group: other innovators marketing implications: high quality; price not important; customer service; white space

Euro-Descent Americans

200 million 26% England 26% Germany 18% Ireland work hard, play hard: fundamental value system save money > long-term financial security thriftness

Younger Singles Market

20s and 30s 1/3 of the first-home buyers > design changes to target this group - fewer bedrooms and bathrooms - less dining room space - living room equipped with high-tech entertainment

Middle class

32% approximately 1/3 middle-level white collar, top-level blue collar jobs high school education or college degree Keeping up with the Joneses (reference-group influence) Do-it-yourself projects (DIY) target market for home improvement, crafts, decor

Late Majority

34% deliberate before buying new products, but adopt them just before the average time socially active, but not opinion leaders rely on social media for information source marketing implications: price oriented; convenience

Early Majority

34% skeptical, below-average social status, price-conscious buy things in response to social pressures marketing implications: value-oriented, trendy, customer service, any media

Working class

38% lower-level white collar, middle-level blue collar jobs high school degree traditional gender roles more locally oriented (more supportive of locals) more brand loyal than wealthier consumers target market for fishing, hunting, beer, country music

Cuban

4% concentrated in Florida (Miami) highest income, fewer number of children oldest median age: (low TFR) 40 years old

Mature Singles Market

40+ singles, never married, divorced, widowed major purchases: home security, health products, travel-related items

Mexican

63% Largest Hispanic group concentrated in Texas, Arizona, California Have large # of family members (high TFR)

Central American

8% dispersed geographically from Guatamela, Costa Rica, Panama, Caribbean, etc.

Working poor

9% below mainstream America in living standard low-paid service workers some high school education target market for value items, frugal, low price

Puerto Rican

9% concentrated in New York lowest income

3 major ethnic minority consumer groups in U.S.

African American Hispanic American Asian American

Fishbein Multi-attribute Attitude Model

Ao = the overall attitude toward object 0 bi = the belief of whether or not a specific object 0 has some particular attribute or achieves some particular goal (BELIEF ON PERFORMANCE) ei = the importance to the consumer that object 0 has the attribute or achieves a goal (EVALUATION ON IMPORTANCE) n= the number of attributes = (bi)(ei)+(b2)(e2)+(b3)(e3)+(b4)(e4) ....

Empty Nest I (8)

Demographic characteristics: children have left home; most satisfied with financial position Consumer activities/interests: new education opportunities; travel frequently Purchases: home improvements, self-education, donations, luxuries, travel, second income

Full Nest I (3)

Demographic characteristics: first child, decline in disposable income Consumer activities/interests: many move into first home. Purchases: home furnishings (at peak); new products for kids

Solitary Survivor (10)

Demographic characteristics: limited income (employed/not employed); many move in with friends to share living costs Consumer activities/interests: socially active, companionship, re-marry. Purchases: healthcare, financial management, travel, entertainment, services (lawn care)

Retired Solitary Survivor (11)

Demographic characteristics: live alone but retire; predominately females; drastic cut in income Consumer activities/interests: need for security and attention Purchases: health related products

Young Singles (1)

Demographic characteristics: live alone or w/ nuclear families/friends; relatively low income; don't have many financial obligations. Consumer activities/interests: recreation-oriented, entertainment. Purchases: basic furniture, fashion, alcohol

Full Nest III (5)

Demographic characteristics: many enter their mid 40s; many wives work; income continues to improve; some children get jobs. Consumer activities/interests: hard to influence with ads; consume new products/brands Purchases: upgraded furniture/appliances, additional cars

Married, No kids (6)

Demographic characteristics: more disposable income (dual income) Consumer activities/interests: travel, recreation-oriented. Purchases: donations, travel, entertainment

Newly Married Couples (2)

Demographic characteristics: nelwy married couples with kids; some move into their first home; dual income Consumer activities/interests: new products, susceptible to ads. Purchases: durable products (e.g. furniture, appliances) leisure activities

Empty Nest II (9)

Demographic characteristics: retired; still married/became single; reduction in income and disposable income. Consumer activities/interests: active/good health (travel, exercise, volunteer) Purchases: health-oriented products, medical appliances

Older Singles (7)

Demographic characteristics: singles, age 40+; single again: struggling financially (divorce/death); never married: financially better-off; no second income- more pressure to save money Consumer activities/interests: meeting a future mate Purchases: leisure activities, healthcare

Full Nest II (4)

Demographic characteristics: the youngest child has reached school age; increase family income Consumer activities/interests: influenced by children; frequent discount stores Purchases: large packages of food/cleaning supplies. computers, sports/music activites

Asian American

Diversity in terms of language/religion; challenge to marketers in targeting them as one market Major groups (2010): 1. Chinese, 2. Filipino, 3. Asian-Indian, 4. Vietnamese, 5. Korean, 6. Japanese Highest education/income among all ethnic groups Core values: education, achievement, respect for hierarchy (age/status) Strong family ties, respect elders Target market: technology

GLBT Group

Gay, Lesbian, Bi-sexual, Transgender

The importance-performance grid

Keep up the good work (Opportunity) Q1 high importance/high performance Concentrate here (Threats) Q2 high importance/low performance Low priority (Weakness) Q3 low importance/low performance Possible overkill (Strength) Q4 low importance/high performance

High acculturation

Language at home/work/among friends: English Language for media: English Length of stay in U.S.: Long Arrival time in U.S.: Early # times visiting home country: Few % of American friends: High

Low acculturation

Language at home/work/among friends: Ethnic language Language for media: Ethnic language Length of stay in U.S.: Short Arrival time in U.S.: Late # times visiting home country: Many % of American friends: Low

Earlier/Later Marriage

Later extensive travel capabilities buy fewer items, but expensive and better quality

Core American Cultural Values

Material well-being: a measure of success Twofold moralizing: polarized morality; states have their own laws (gay marriage/use of weed) Importance of work over play: important part of your lifestyle Time is money: punctual; start on time Effort, optimism, and entrepreneurship: with proper efforts, one can be optimistic about success Mastery over nature: conquering attitude toward nature (religious beliefs) Egalitarianism: equal opportunities for achievement Humanitarianism: support the less fortunate; donations

African Americans

Middle class getting larger Median age: 32 (41 for whites) Not homogeneous market (significantly high): AA women hold 1/3 of heads of all family households\ Brand-loyal, fashion-conscious, innovative Spend high % of income on apparel and grooming products Shop more frequently, shop more with friends, enjoy shopping (hedonic) Targeting AA: Essence (Sears' clothing line), E Style (Spiegel's catalog), Black Radiance (Shades for you)

(Evaluation on) Importance

Not brand specific; general for the category

Low influence

Product usage: private - meant for home use (discrete) Desire for social acceptance: low - low desire for social acceptance Experience with decision: much - doesn't need influence from reference group Product type: necessities - everyone buys it all the time Product complexity: simple - doesn't need reference group

High influence

Product usage: public- everyone can see Desire for social acceptance: high - high desire for social acceptance Experience with decision: little - needs influence from reference group Product type: luxury - strong reference group influence (designer, high quality) to impress others Product complexity: complex - needs help from reference group

Changing American Cultural Values

Self-oriented values: instant-gratification; leisures hard work Environment-oriented values: green products, green hotels, eco-tourism; recycle, resell, reuse; sustainable consumption Others-oriented values: social responsibility (for the good of others); pro-social behavior (active)

Measurement of social class

Single-item index: we only use 1 item to measure social class (education, income, zip code, or occupation) - occupation represents the social class the best Multi-item index: - Socioeconomic status (SES): (income + education + occupation)/3 - Geo-demographic clusters: same people live in the same area (wealthy people)

Smaller/Larger Household Size

Smaller TFR is lower, fewer kids, large % of single parent households

Social classes in America

Upper Americans (overprivileged); Capitalist class (upper upper), Upper middle class Middle Americans (class average): Middle class, working class Lower Americans (underprivileged): working poor, underclass middle class shrinking

American ethnic microcultures

Various ethic microcultures U.S. immigrants: - late 1800s-early 1900s > from Europe (mostly Western Europe) - 1900s > from Latin America - Mid 1900s > from Asia

Family

a group of two or more persons related by blood, marriage, or adoption

Aspirational reference group

a group with which an individual tries to associate e.g. movie stars, business leaders (Steve Jobs, Bill Gates)

Dissociative reference group

a group with which an individual tries to avoid association e.g. Lady Gaga, Harley-Davidson, GAP store

Reference Group

a person or group of people who significantly influences an individual's attitudes and behavior

Household

all persons, either related or unrelated, who occupy a housing unit important unit of analysis: nontraditional families, non-family households

Observability

are the results of using the new product visible to my friends or neighbors?

Disadvantages of social marketing

barrier between customer and product the focus of the brand/product

Beliefs on Performance

brand specific

Triability

can I experiment with or try the new product with limited financial risk?

Increasing Divorces

creates markets > new furnishings, house blended families, multi-families

Formal reference group

defined structure a known list of members e.g. religious group, fraternal bodies

Underclass

depend primarily on welfare system living standard is below poverty line unemployed lacking education NOT a target

Secondary reference group

direct interaction more sporadic, less comprehensive, less influential e.g. classmates, coworkers

Complexity

do I perceive the new product as difficult to understand and use?

Relative Advantage

does the new product offer substantially greater benefits than the product I currently use?

Social (cause) Marketing

focuses on other-oriented values sells ideas, not directly selling products to consumers seeks to influence social behaviors; not to benefit the marketer, but to benefit the target audience and society

Reference group influence

for public products, reference group influence is stronger for brands for luxury products, reference group influence is stronger for products

Social class

groups sharing similar values, lifestyles, interests, wealth, status, education, economic positions, behavior...

Gay and Lesbian Markets

higher levels of income and education work in professional jobs live in urban areas travel extensively higher expenditure on clothing higher brand loyalty interested in arts politically active more aware of social issues retailers: Banana Republic, Benetton, Calvin Klein, Kenneth Cole magazines: The Advocate, Out, Genre

Nuclear family

immediate family members living together

Opinion Leaders

influence opinion followers on a specific product or service category leaders and followers: similar demographic characteristics and lifestyles leaders may have greater social status within the same group (higher education/income) self-confident, outgoing, like to share info seek information from mass media and other sources important role in word of mouth

Primary reference group

intimate, unrestricted direct interaction e.g. family, friends, roommates

Compatibility

is the new product consistent with my values, needs, and past experiences?

Acculturation (Assimilation, Ethnic Identity)

it measures the degree to which a consumer has learned the ways of a different culture compared to how she or her was raised

Market Maven

knowledge on a variety of products a high level of brand awareness not necessarily in the similar demographic group with receivers

Informal reference group

less structure based on friendship or interests e.g. friends, neighborhood

Cohabiting Singles

living with significant others young, less income growing fast legally single, but functions as a family

Two step flow of communication

mass media --(information)--> opinion leader --(information and influence)--> opinion seeker

Multi-step flow of communication

mass media ---> opinion seeker mass media ---> opinion leader <---> opinion seeker mass media ---> gatekeepers ---> opinion seeker sorry if this is confusing; find chart on page 5 of Ch. 13

Membership reference group

members of a formal group, with formal acceptance status e.g. trade associations, retail-frequent buyer clubs

Purchasing power

middle class of minority Americans growing; however, altogether American middle class is shrinking concentrated in metro cities/certain states: Hispanics (California, NY, Texas, Florida), Asians (California, Hawaii, NY, Illinois, Washington D.C. Benefits to marketers - save money; easy to target (cost-efficient)

Extended family

nuclear family + other relatives

Ethnicity

shared culture and background, common tradition and history smaller groups than race

Advantages of social marketing

shock value emotional connection concern with well-being

Married or Single

single growing faster; delayed marriages; divorce later increasing home furnishing industry benefits

How reference groups influence individuals

social comparison: as benchmarks to compare themselves to others self-concept: the real self vs. the ideal self conformity: conform to group norms to avoid the risk of social rejection

Public Luxuries

strong product and strong brand ex: golf clubs, snow skis, sailboat

Private Luxuries

strong product and weak brand ex: home theater, swimming pool

Hispanic American

the largest group (2003) family value, social gathering Median age 27 (41 for whites)

One-step flow of communication

trickle down: from upper class to lower class ex: designer clothing turned into knockoffs/counterfeit trickle up: from lower class to upper class ex: jeans, pickup trucks, trucker hats, punk style, and flipflops turned into designer clothing

Native American

true American culture 3 major groups: American Indians, Alaskan Eskimos, Native Hawaiians concentrated in casinos, hotels, tourists attraction areas

ei

typically measured on a 7-point evaluative scale ranging from 'very bad' to very good'

bi

usually measured on a 7-point scale of perceived likelihood ranging from "very unlikely" to "very likely"

Virtual reference group

virtual communities e.g. chat rooms, news group, blogs

Public Necessities

weak product and strong brand ex: wristwatch, automobile, suits

Private Necessities

weak product and weak brand ex: mattress, floor lamp, refrigerator