MAR 3503 Exam 3 review (Ch. 12, 13, Consumer Research, & Consumer Financial Decision Making)

Laurie Hernandez

U.S. Olympic Team Medalist from New jersey, does not speak Spanish Laurie's parents are from Puerto Rico (U.S. territory) and speak both Spanish and English - Puerto Ricans have been U.S. citizens since 1917 - can move freely throughout the U.S. did you know ... the United States does not have an official language

Improve Financial Inclusion in Banking Deserts: The Role of Mainstream Banks

WSJ --> Banks targeting underbanked consumers (article) Forbes --> Banks Need to Focus on a New Customer: The Unbanked (article) the few mainstream banks that enter banking deserts often fail to operate successfully because they "[fail] to speak the financial language of the poor" ... they do not understand that poor consumers "cannot be offered banking services as though they are simply rich people with less money" (Baradaran 2012) How can mainstream banks better engage consumers in banking deserts? - its more complex than poor people not having money and so these people need to be approached in a different way

Consumer Financial Protection Bureau

a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly

*cisgender*

a person whose sense of identity and gender matches their sex assigned at birth

*sexual orientation*

a person's emotional or sexual attraction to others it can change and may or may not be the same as a person's sexual behavior

*gender/gender identity*

a person's internal sense of identity as male, female, both, or neither, regardless of their sex

*acculturation*

adaption to a new culture - strongly influenced by family, friends, media, school, church

Study 2

another field study with actual bank customers that were either in a banking desert or in a non-banking desert bank showing 2 flyers to consumers --> the flyers are very similar but contain some slightly different text to really try and isolate what would happen if the bank advertised to customers that they were concerned about the community (that they had this communal orientation) *findings:* ~ customers living in banking desert perceived workshop as more beneficial when promoted with communal (vs. non-communal) financial orientation -- significantly more willing to engage with the bank, engage in positive WOM about the bank ~ consumers in the rest of the town actually had the opposite response -- those consumers were more interested when the benefits were about themselves more so than their community which makes sense because the consumers who are not in a vulnerable state were more focused on their individual well-being

How Does Social Class Affect Consumption: *Compensatory Consumption*

attempting to offset deficiencies or a lack of self-esteem by devoting attention to consumption - using consumption to compensate for perceived failures in life

Improving Financial Inclusion in Banking Deserts: The Vision

banking desert: a neighborhood that doesn't have access to mainstream financial institutions financial inclusion defined: "state in which all people of working age have access to a full suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the clients" benefits of financial inclusion: - *individuals*: increases likelihood to save, invest in education, and absorb - *society*: reduces income inequality and bolsters economic growth policy makers, consumer advocates, and financial service entities consider financial inclusion a *global priority*

FSU and Native American Culture

being a Seminole is a big part of our identity reading --> FSU's relationship with the Seminole tribe of Florida - perspective of how the relationship with that tribe is aligned with our identity as an institution

*sex*

categories (male, female) to which people are typically assigned at birth based on physical characteristics (e.g. genitals) some people may be assigned intersex, when their reproductive, sexual, or genetic biology doesn't fit the traditional definitions of male or female

Gendered Marketing

children use context to determine if something is appropriate for them - study: female children viewing other girls playing with a truck and then they were given a choice of toys to choose from -- the likelihood of choosing a truck increased -- meaning that having this socialization and seeing this normative behavior of other girls playing with toys that traditionally would not have been offered to them -- increased their comfort and interest in trying out those toys developmental implications - dolls and pretend kitchens: teach cognitive sequences of events and early language skills - Lego and puzzles teach spatial skills, which lead to learning math developmental implications (according to the National Association for the Education of Young Children) gendered toys that are marketed as ... - female: focus on attractiveness and appearance - moderately female: nurturance, care for infants, developing skills in cooking and housework (communal norms) - moderately male: spatial skills, science, building things (engineering oriented) - male: emphasize violence or aggression -- found that once toys are gendered, the result can be this continuum of outcomes historically many firms and many retailers approached this gendered orientation based on history and also to some degree consumer demand based on these overarching societal norms around gender - so there would be section for a girl toys that would be more communal in nature and sections for boys toys which may be more agentic in nature -- the fact is: every person has all of these qualities

Credit Spending Rule to Live By: Consider small changes in the way you use your credit card

circle on your bill all the times you swiped your credit card for less than $20 ... small costs can add up over time, so consider paying cash instead and unless you pay your full balance off every month, interest and fees can add about 20% more to the cost of an item for average credit card customers count up the number of times you used your credit card for a purchase under $20 add up the total you spend on these small purchases list the time and places you used your credit card for small purchases create a rule to live by to help you control your credit card debt; decide when and where to pay cash more often ex: pay cash for your morning coffee

Compensatory Consumption and Vanity Sizing (cont'd)

clothing size provides information about a consumer's physical appearance and can influence self-evaluations: - consumption is self-affirming to identity and compensates for identity threat - engage in compensatory consumption to restore feelings in a given area like appearance - purchase high-status goal to try to repair self-esteem research shows: ~ when a clothing item fits and is a larger size than expected, consumers cope by purchasing non-sized, appearance enhancing products

Communal Financial Orientation & Financial Inclusion in Banking Deserts

conceptual foundation: research on psychological consequences of poverty due to disparities in resources/rank, environment threat, and lower personal control, *poor (vs. more affluent) consumers tend to be more community oriented* = more concerned with needs and welfare of others, and their community as a whole note: consumers in banking deserts more likely to be community-oriented *wealthier consumers tend to be more self-focused*, due to greater (resource) control, lower vulnerability to threats, and emphasis on individualism and personal accomplishment perceived "communal financial orientation" = extent to which consumers perceive that their engagement with a bank in their community is beneficial for community's well-being prediction: as perceived communal financial orientation increases, banking-desert consumers' engagement with and recommendation should increase

Brands and Gender Identity Case Study: Planet Fitness' Judgement Free Zone

customers are allowed to use the locker room they determine best aligns with their gender identity - trying to create a welcoming environment for all people who may want to come in and work out a female member complained about the policy, but PF did not change it in protest, the member repeatedly returned to the gym to inform other female customers that transgender people are allowed to use the locker room Planet Fitness revoked membership of woman based on PF's assessment that she violated its "no judgement" policy member sued Planet Fitness this case is still being litigated ... to be continued

Ethnicity as a Moving Target

defining and targeting ethnic groups members can be complex ethnic subculture: - consumers held together by common cultural or genetic ties - identified by both its members and others as being a distinguishable category

Bases for Segmentation

demographic (most widely used) geographic psychographic benefits-sought situation behavior/usage

Consumer Behavior Research Methods - *Interviews*

depth interviews: - involve direct contact with consumer - are often more appropriate than focus groups when the topic under study is sensitive, embarrassing, confidential, or emotionally charged - usually require a trained interviewer - are often recorded or transcribed so that the answers can be studied through quantitative or qualitative analysis

cigarillos ad

despite being a star in her own right [as a successful actress], Lauren Bacall is headlined as "Mrs. Humphrey Bogart" at the time, a woman's identity was centered around her spouse note: Bogart died of lung cancer

Stereotyping vs. Target Marketing: *Fencing Off*

encounter individuals whose character disputes out-group stereotypes - it is easier to "fence off" these individuals as exceptions rather than adapt a global stereotypes - this is due to the *status quo bias*

Consumer Financial Protection Bureau (Consumers)

faced with many financial decisions: around savings, bill paying, use of credit and debt, choice and use of financial products, retirement, housing and more can be overwhelming to many consumers CFPB offers financial 'rules to live by' where consumers develop their own rules to help guide financial decisions

Stereotyping vs. *Target Marketing*

fact based information to help guide decision making and reach a particular consumer segment events, experiences may have had a pervasive impact on an entire consumer segment - e.g. sending a man to the moon is something experienced by all baby-boomers, and impacted them all in some way -- baby boomers are individuals: the shared event affected them in different ways -- baby boomers may have common sets of needs based on their stage in life, buy may not purchase the same products to fulfill those needs

How the Household Influences Consumer Behavior

family: a group of individuals living together who are related by marriage, blood, adoption types of households: *nuclear family* - father, mother, and children *extended family* - nuclear family plus grandparents, aunts, uncles, cousins, etc. *household* - a single person or individuals who live in a common dwelling (roommates, unmarried couples)

Gendered Marketing: Target ad 2010

features a woman piling up her cart, she's expecting a baby, and she's put all this pink stuff like dolls and clothing into her cart while her husband on the other side has piled up his cart with blue things like a shark and guitar and other toys feedback Target and other retailers received --> taking a gendered approach might have implications on child development as a result, target took an approach in 2015 to remove their gender based toy labels in the store

Study 1

field studying working with a bank (large financial institution) bank opened new brand in banking desert - banking deserts systematically linked to poverty banking desert community: - 14% unemployment rate (vs. 6% in the broader metro area) - 49% of households at/below poverty line (vs. 18% poverty across greater metro area served) *findings:* ~ as perceived communal financial orientation increased, customers of the banking-desert branch experience increasing levels of perceived benefit, engagement intentions, and word-of-mouth intentions, as expected -- in other words, those consumers were more connected to the bank and they were more likely to have a relationship with that bank when they felt that that bank had a communal financial orientation or that bank was focused on having a sense of community with its consumers

Improving Financial Inclusion in Banking Deserts: The Problem

financial inclusion implies access to mainstream banks, but many communities in the US do not have such access FDIC (2017): 26.9% either unbanked or underbanked, conducting some or all of their financial transactions outside of the mainstream banking system low income (vs. higher income) census areas more than twice as likely to be banking desert: community with inadequate/no access to mainstream banks (Morgan et al. 2016) banking deserts are "neighborhoods abandoned by mainstream banks" (Baradaran 2017) lower SES (low socioeconomic status) communities often turn to high-cost alternative service providers (e.g. payday lenders, check-cashing), which can undermine consumers' long-term financial well-being

Latin/Hispanic American Consumers

firms may segment subgroups by geography: - Mexican American: Southwest, California, Chicago - Puerto Rican: (Puerto Rico) New York - Central and South American consumers - Cuban American: southern Florida -- distinct cultures and experiences commonalities found across the multiple groups: ~ strong family orientation (extended families) ~ dinner/food is social event ~ education and occupational levels are increasing ~ [skew more] brand loyalty (chart) consumer package goods: - Hispanic consumers tend to have on average higher spending levels than the average American household -- this is something that should be of interest of firms

Psychographic Segmentation

grouping customers together based on: - social class - lifestyles - psychological characteristics (attitudes, interests, opinions) Ex: consumers who are more risk-taking versus consumers who are more risk averse, consumers concerned about their weight versus consumers not concerned about their weight, chronic dieters versus non dieters -- different ways based on consumers socio-psychological makeup to segment consumers

Asian American Consumers

highest socioeconomic status of the major US subcultures fast growing population segment - from 2009-2014 the Asian-American population grew 25% strong emphasis on: ~ family ~ tradition ~ cooperation shop frequently for fresh foods diverse languages and cultures - broad label called "Asian American" -- Chinese, Indian, Filipino, Korean, Japanese, Vietnamese, and more "model minority" myth - one of the challenges faced by many Asian Americans is this concept which is an expectation of being academically high performing -- more of a stereotype -- can create a lot of undue pressure for people both in school and the workplace to try to live up to this unrealistic standard of being the model or perfect minority consumers who self-identified as Asian American were asked if they felt that they were the typical American - more than half (53%) said no they don't feel like a typical American and feel very different from the typical American

*Key Concept*: Roles that Household Members Play

household decision rules: *gatekeeper* collect and control information important to the decision *influencer* try to express their opinions and influences the decision *decider* actually determine which product or service will be chosen *buyer* physically acquires the product or service *user* consume the product - parents are often the deciders and purchasers of items consumed by children - more than 70% if men's underwear and fragrance is purchased by romantic partners *instrumental roles* roles that relate to *tasks* affecting the buying decisions (when, how much to purchase, etc.) *expressive roles* roles that involve an indication of *family norms* (hedonic: color, design, etc.)

*gender expression*

how a person expresses their gender this can include how they look, the name they choose, the pronouns they use to describe themselves, and their social behavior

Intensity of Ethnic Identification

how strongly people identify with their ethnic group - highly identify -- less acculturated

How the Household Influences Consumer Behavior: *American stereotype*

husband primary wage earner, wife is a non-wage earner at home, and 2 children under the age of 18 years old - less than 6% of families fit this profile

How Social Class is Determined

income versus social class *income not strongly related to social class ... why?* 1. income overlaps across classes (blue collar at GM vs. history professor) 2. income increases with age but doesn't necessarily shift social status 3. increases in dual income households increases income *--> historically determined by education and occupation* *social class can explain how income is used* occupation and education: - greatest determination of class standing - occupations that require higher levels of education, skill, or training = higher in status - individuals with the same occupation tend to share similar income, lifestyles, knowledge, and values - *education = key determinant of occupation and, therefore, social class*

Survey (over 6,000 American respondents)

individual characteristics - measures: education, age, physical health, race/ethnicity, and sex household and family characteristics - measures: income and employment characteristics - measures: savings and safety net - measures: financial experiences - measures: financial behaviors, skills, and attitudes - measures: confidence in ability to achieve a financial goal, have a habit of saving, ... *findings:* ~ linear relationship between education and financial wellbeing -- meaning ad education goes up, that consumer financial wellbeing also increases (people who have at least a bachelor's degree, their financial well being is significantly above the US average whereas people who have only some college or an associate's degree or less for education, these consumers financial wellbeing is significantly below the average for the US) ~ positive relationship between age and financial wellbeing -- people between 18 and 44 are significantly below the average which makes sense (salary increases and savings over time which stabilizes financial wellbeing) ~ physical health -- people who have either very good or excellent health also tend to have significantly greater than average financial wellbeing ~ for non-Hispanic, white Americans, this segment tends to feel more secure than the average American in terms of financial wellbeing

Consumer Behavior Research *Qualitative Methods*

interview focus groups diaries: record behaviors and emotions storytelling: consumers tell stories about their experiences with a product or service; consumers' needs, attitudes, feelings are revealed by how a picture or scenario is interpreted photography and pictures: show consumers pictures of experiences consumers have had with product or service (help remember); ask consumers to draw or collect pictures to represent their thoughts and feelings about a topic at hand, reflect lifestyle

*LGBTQ*

is an acronym that refers to a spectrum of sexual and gender identities, including lesbian, gay, bisexual, transgender, and queer

Spending Rule to Live By

keep track of everything you spend for a month to get a sense of where your money is going needs - including rent, food, clothing, transportation, utilities, etc. savings and debts - including credit card payments, retirement savings, emergency savings wants - fill in your "wants" spending rule: - I will keep by spending on "wants" to a maximum of $________ per (week, month, etc.)

Consumer Behavior Research Quantitative Methods - *Experiments*

lab experiments: - for example: dependent variable = willingness to buy (7-liker scale), independent variable = brand names - often conducted in laboratory situations field experiments: - researchers study one or more elements of the marketing mix (product, price, place, promotion) by evaluating sales in an actual market

Factors that can Increase Financial Well-Being

learning about positive financial practices while growing up tends to be associated with higher levels of financial well-being many of the strongest positive relationships with financial well-being correspond to financial attitudes, behaviors, and skills - having a habit of savings - engaging in routine money management practices (e.g. making a budget) - having a long-term planning horizon (invest in education today for a good job in the future) - having confidence in one's ability to achieve a financial goal (having a sense of security and freedom about your financial present and future)

Key Concepts (Ch.13)

lower class start --> move up trends: *status float* trends starting with lower classes and spreading to upper classes e.g. tattoos specific status symbols: *parody display* e.g. I look hip and open minded as an upper class Brazilian drinking a historically lower class drink upper class start --> move down trends: *trickle-down effect* lower class tries to emulate consumption of higher classes e.g. McMansions - big homes that mimic mansions of the super rich specific status symbols: *fraudulent symbol* wide adoption causes item to lose its status e.g. Coach purses

How Gender Affects Consumer Behavior - *Compensatory Eating*

making up for deficiencies such as lack of social contact or depression by eating - coping with sense of emptiness or reduced self-esteem through food consumption women more likely to engage in compensatory eating - disproportionately affects women

Benefits-Sought Segmentation

marketers can be segmented based on the benefits that consumers desire from using a specific product Ex: we know there are millions of consumers who are on a gluten-free diet (they want to reduce or eliminate gluten from their diet) - these consumers are looking for that specific benefit of something that doesn't have gluten in it -- segment consumers based on if they have a specific disease or medical condition that requires them to reduce or eliminate gluten or if they have a preference based on their own dietary interests

Behavior/Usage Segmentation

marketers can be segmented by how often or how heavily consumers use a specific product ~ 80/20 principle - 80% of revenue generated by 20% of consumers

Religious Influences

not extensively studied and understood by firms; must treat lightly can influence: - attitudes towards sexuality - birthrates and household formation - income levels - political attitudes forbidden products: alcohol and smoking in Muslim countries (similar prohibitions in some segments of Christianity)

*de-ethnicization*

products formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures e.g. bagels are bread formerly associated with Jewish culture

Shifting Gender Roles in the 1970s Enjoli perfume ads

progressive at the time ... multiple and shifting roles women play in the household lyrics/jingle: - "bring home the bacon" -- translation: [women] provides a second source of income for the family --- as the US economy moved into the '70s, there were various social shifts happening within the country and there was an increasing need for additional income to come into the family - "fry it up in a pan" -- translation: continues to fulfill the traditionally female/communal household roles - "I'll never, never, never let you forget you're a man" -- translation: not threatening the male/agentic role - "cause I'm a women - "ENJOLI!" -- translation: Enjoli makes a great gift for your busy wife

(ad) 1947 father caring for baby

rare! [father in caretaking role] - shows dad lost in the childcare role ... - once "mom's back" "all's well" -- showing that the dad is willing to do it as an exception but is sort of fumbling because that's outside of the norm

Other Indicators of Social Class

residence, possessions, family background, social interactions *family background*: inherited/"endowed" status - status accepted from parents at birth - initial anchor point EX: Queen of England *earned status*: status acquired later in life through your own achievements EX: part of the idea of the American dream - work hard and focus on your education and you can build a better life for yourself and your family -- these lines can blur

African American Consumers

residence: - majority in the southern US - high proportion in urban cities younger median age desired targeted marketing - more than 80% believe that products advertised using black media are more relevant to them, however only 3% ($2.24 billion) of $75 billion spent on advertising was with media focused specifically on black audiences (Nielson 2010) African American consumers also have distinct digital and mobile behaviors e.g. spend 44% more time on education and career websites (vs. US average) steady population growth - African Americans make up about 14% of millennials

Gender Roles in the 1980s (deodorant ad)

secret [deodorant] "strong enough for a man ... but made for a women" strength is an agentic role trait - this norm is being built into the fabric of how this feminine product deodorant is being advertised ad --> features woman wearing pants, she's in a very assertive body position standing with her legs apart and a hand on the hip looking very confident; also see the male pictured down on the ground rather than front and center of the ad -- really makes a play on what was evolving in the '70s and sort of where firms saw the dynamics happening by the time the '80s rolled around

Savings Rule to Live By: Set a Saving Goal, Even a Small One

set a savings goal that works for you: - set a specific amount for a rainy day fund, a special purchase, or a long-term goal - plan where to save your money (bank account, etc.); set up direct deposit so the savings is automatically deposited into a savings account, if possible - decide how you can adjust your expenses or increase your income to save - write down your savings rule, such as: I will save $______ per (week, month, etc.)

*How Gender Affects Consumer Behavior*

sex roles have changed *agentic* - traditional goals that guided males (i.e. norms prescribed to men) - stress mastery, self-assertiveness, self-efficacy, strength, assertiveness, and no emotion -- stems from concept called agency theory (basically about having mastery of a skill set, having control over your destiny, and these types of things) *communal* - traditional goals that guided females - stress formal affiliations and harmonious relationships with others, submissiveness [in terms of decision making], emotional, and home oriented --- historically guiding principles; traditional associations pertaining to gender historically, marketing communications and advertising has very much been centered around communicating to men and women around these two norms

Social Class

social class hierarchy - grouping consumers of society from high to low class types of social class systems: - different economic substrata can coexist within a social class according to average income -- overprivileged - 20-30% above the median -- class average (can basically afford all the things that their neighbors in their same social class segment can afford) -- underprivileged - below the median; difficult to meet class expectations social class influences: *trickle-down effect* - trends moving from upper to lower class *status float* - trends move up the class hierarchy

How Social Class Changes Over Time

social classes *not static* *upward mobility* - usually achieved by educational/occupational achievement - degree of mobility varies across cultures - education is the "biggest ticket to the middle class" in the US -- more than 1/3 of the children in blue collar workers will go to college *downward mobility* - moving to a lower social class - rising inflation = contributor - *status panic*: savvy skidders (children of successful parents) can't reach parent's level of social status *social class fragmentation* - disappearance of class distinctions -- mobility has blurred class divisions -- media allow exposure to other classes -- communication technology increases interaction across social lines

How Does Social Class Affect Consumption

status symbols and judging others: *status symbols* - products indicate one's place in the social hierarchy *parody display* - status symbols that start in the lower class and move up EX: Dickeys started out as more of a laborer brand because it's clothing was very durable so many blue collar workers would use this brand and over time this brand started to gain more status among people who were not in a labor class segment *fraudulent symbols* - when wide adoption of a symbol can cause it to lose its status EX: traditional Louis Vuitton brand - there is many counterfeits which chips away at the status associated with the brand

Ethnicity as a Moving Target: Multicultural Marketing

strategies appeal to variety of cultures at same time requires: - a long term commitment - consideration of ethnic groups from the outset (start) (versus as an afterthought)

Traditional Gender Roles 1940-1950s (cleaning ad)

stresses mastery - says "gosh you certainly clean up fast these days" -- doing something fast is about efficiency and mastery of a skill set which is actually more agentic within the realm of this idea of communal of being home oriented this ad is highlighting the fact that individuals, although they may be socialized to focus in one area or the other, certainly can have both skills sets

Dr. Charles Ramirez Berg

studies damaging effects of stereotyping in media portrayals: - in-group defines the out-group - may serve in-group members by reinforcing a belief of their "natural" superiority over the typed out-group - may also cause out-group members to view themselves as they are portrayed by the in-group

Understanding Consumer Needs: Consumer Behavior Research Methods

surveys focus groups interviews storytelling photography, pictures diaries experiments field experiments conjoint analysis observations purchase panels database marketing

Consumer Behavior Research *Quantitative Methods*

surveys: - asks consumers to respond to quantitative research questions - in person, mail, phone, online - study population shifts, trends, media usage, product usage

How Age Affects Consumer Behavior

trends: - increase in median age in the US - people are living longer (why?) --> increase in senior market marketing strategy: moving beyond reverse mortgages and "walk in bathtubs" recognizing the potential of the market: - 5% of US advertising targets people over 50 - in 2020, the world is projected to have more 55-year-olds than 5-year-olds - 2035: older adults will outnumber children for the first time in US history - 2060 in China: 1 in 3 people, or 487 million, will be over 60 - 70% of all available US income owned people over 55 social network and dating for seniors: - Ourtime.com competes with AARP.com/dating - "AARP wanted to get into the game because one, we know isolation is a very big issue for our members as they age," Nataki Edwards, of AARP - a quarter of the groups 37 million members are single and many have been asking the organization to help them link up with others

Geographic Segmentation

when an organization localizes its marketing efforts to accommodate the unique needs of specific geographic regions Ex: Armour brand focused on the southeastern part of the U.S. - one of the reasons is that these are extremely shelf-stable products and every year without fail we get hurricane season -- so one area that the company knew it could count on for sales is that people are going to stockpile these types of products in case they lost power -- over time, they become part of this geography more so than the rest of the country

Conspicuous Consumption (Scott, Mende, Bolton 2013)

why do people engage in conspicuous consumption? - social needs: signal wealth and status that comes with wealth how is wealth perceived (when signaled via conspicuous consumption)? - rich people: successful, intelligent, less friendly - poor people: less successful, friendly, honest --> in general, ... - rich: more competent, cold - poor: less competent, warm what about conspicuously consuming seller? -depends on relationship norm *communal relationship*: emphasis on genuine concern for other's welfare, kindness and responsiveness (warmth), but not on motivation for reciprocation or profit maximization *exchange relationships*: emphasis on quid pro quo; request for repayment; self-interest, self-serving attitudes, and profit seeking result: consumers prefer: ~ non-conspicuous communal sellers ~ conspicuous exchange sellers exceptions: ~ persuasion knowledge -- results apply when consumers are unaware of the influence attempt; when persuasion knowledge is present, effect goes away ~ earned vs. unearned -- consumers tend to attribute wealth to individual effort and ability -- what if consumers attribute a seller's wealth to uncontrollable, external causes (e.g. luck, inheritance)? - when this is made salient, the effects go away; once source of wealth is explicit, conspicuous consumption triggers competence only when wealth is professionally earned

(ad) Traditional Gender Roles 1960s

wife taking care of household and children and making sure to have a nice appearance before the husband arrives home - wife trying to influence husband to buy a garbage disposal - wife in role of influencer, user - husband in role of decider, buyer (final decision maker)

Credit Rule to Live By: Check your Credit

you have a right to a free copy of your credit report from each of the nationwide credit reporting companies visit annualcreditreport.com you can request a report from each agency at different times to monitor your credit files throughout the year tips: - be cautious about other websites offering free credit reports; some companies offer free credit reports, but you may have to buy another product or service to get it - after you get your credit report, you can visit consumerfinance.gov/askCFPB and click "credit reports and score" to learn more about your credit report, how to fix errors on your reports

Gender Stereotypes: Mr. Clean ad

(Procter and Gamble product) "This Mother's Day get back to the job that really matters." - targeted at women -- saying mom get back to cleaning

3 levels of acculturation:

(not unique to Hispanic Americans!!) *the acculturated* speak mostly English and have high level of assimilation *the bicultural* function in either English or another language *the traditional* speak mostly their primary language

FSU Strategic Plan

*Diversity and Inclusion at FSU* - FSU is redefining what inclusion can mean on college campuses - named one of only 10 "Diversity Champion" universities nationally by INSIGHT Into Diversity magazine - by valuing, celebrating, and leveraging the differences and similarities within our community, we create a fertile environment for problem-solving -- one that is more inventive and compassionate - we're proud that our cohesive community has become a signature of the FSU experience - but we can, and we will, do more

Demographic Segmentation

*age* *income level* *family* - some products are marketed to consumers with special family consideration - family life cycle: -- bachelor(-ette), marriage, married with children, empty nest/retired, etc. *education* *ethnicity* Ex: Goya is a well established brand that basically brings ethnic food to mainstream America

Financial Product Use and Well-Being

*checking and savings accounts* - adults who have a checking or savings account have an average financial well-being of 56, compared to 48 for adults without these accounts *non-bank, short term credit* (e.g. payday loan, pawn loan or auto title loan) - adults using these products over the prior 12 months have an average financial well-being score of 42 (vs. adults who do not use these products, average = 55 -- higher financial well-being score)

How Does Social Class Affect Consumption?

*conspicuous consumption* - visual consumption in order to show off one's status - "keeping up with the Joneses" - conspicuous waste: buying products but never using them again -- status seeking (sort of the height of excess if you will)

How the Household Influences Consumer Behavior: Changing Trends in Household Structure

*delayed marriage* - more acceptable for a couple to live together before marriage - nearly 26% of all US households consist of people living alone *dual-career families* - child care, eat out more - less time for cooking, housekeeping, shopping - more husbands are grocery shopping *divorce* -about 40-50% of marriages end in divorce -- single parent homes, stepfamilies *smaller families* - average family size: 3.14 - more discretionary income - childless married couples, and co-habituating couples are fast growing types of households

How Gender Affects Consumer Behavior - Difference in acquisition and consumption behaviors

*females* - more likely to engage in more thorough examination of ad message - enjoy shopping (pleasurable, social interaction) *males* - have selective information processes, driven by themes and heuristics (similar to low MAO) - view shopping in functional terms (a way to acquire goods) -- we have been socialized to take very different approaches

Stereotyping vs. Target Marketing: In-group/Out-group

*in-group* - the group(s) in which we perceive membership - "we" are varied but generally good - intergroup bliss - connection to self-esteem: -- in-group favoritism leads to (short term) increases in self-esteem (the reverse is also true) -- insecurity, threats to self-esteem, anxiety .. --> increases stereotyping, increases out-group derogation *out-group* - perceived as more homogenous - "they" are all alike

Types of Consumer Researchers

*in-house marketing research departments* - data can be kept internally, but may be biased *external marketing research firms* - can help design research projects, less biased *advertising agencies* - conduct tracking studies: did brand awareness increase with specific advertising? *retailers* - electronic scanners, loyalty cards - track sales, promotion effectiveness *syndicated data services* - companies that collect and then sell information they collect Ex: Yankelovich Partners (lifestyle), Nielson (TV viewing - "people matter") *research foundations* - a nonprofit organization that sponsors research on topics relevant to the foundation's goals Ex: conferences, publications *trade group* - a professional organization of marketers in the same organization Ex: Recording Industry Association of America - track music trends *government/consumer organizations* - consumer protection Ex: FDA, FTC (i.e. misleading advertising); Consumers Union (Consumer Reports); CFPB (Consumer Financial Protection Bureau) *academics* - enhance general understanding

Situational Segmentation

*physical surroundings* Ex: how much for a 12 oz. Diet Coke ... - hotel? - airport? - football game? - Publix? - on campus? *social surroundings* - can you think of purchases you made with friends that you would not have made alone? *temporal perspective* - how much time to make a purchase? - products you purchase in a rush vs. when you have time

Primary vs. Secondary Data

*primary data* data originating from a researcher and collected to provide information relevant to a specific research project i.e. surveys, interviews, experiments *secondary data* data collected for some other purpose that is subsequently used in a research project i.e. US Census data, syndicated data

What Affects Financial Well-Being?

*social and economic environment* what surrounds you in your family and community *personality and attitudes* how you tend to think, feel, and act *decision context* how a particular decision is presented *knowledge and skills* what you know, and what you know how to do *available opportunities* what options are you open to *behavior* what you actually do *personal financial well-being* how satisfied you are with your financial situation

*Stereotyping* vs. Target Marketing

*stereotyping* is a thought process that organizes beliefs about one group of people and assigns them to everyone in that group "Oversimplified, usually pejorative, attitude people hold toward those outside one's own experience who are different. They are a result of incomplete or distorted information accepted as fact without question." stereotyping leads to a great deal of inaccuracy in social perception due to overgeneralization

The Consumption Patterns of Specific Social Class Segments

*the "upper" class segment* - aristocracy, new social elite (e.g. new money), and upper-middle class (professionals) - view themselves as intellectual, liberal, political, and socially conscious - self-expression is important - concerned about what others think of them - save and invest more than other classes today: the rich are really rich: in fact, the top 1% of the world's population holds 50% of the global wealth at the same time, the bottom 50% holds a mere 1% of the wealth *the middle class* - white-collar workers with some college but may lack degree - want to do the right thing, buy what is popular, do what is good for the children, and be fashionable - look to the upper class for guidance *the working class* - blue-collar workers - key bond = membership in organized labor unions - depend on family members for economic and social support - relatively resistant to change over the years - more likely to spend than save *the homeless* - struggle for survival - nomadic society - acquisition through scavenging - secondhand consumers

Roles that Household Members Play

*the roles of spouses* - *one-spouse dominant decision*: decisions dominated by one member of the marriage or the other - *autonomic decision*: equally likely to be made by either spouse - *syncratic decision*: made jointly by the couple can vary by culture EX: traditional Mexican-American homes are characterized by more husband-dominant decisions

Compensatory Consumption and Vanity Sizing

*vanity sizing* when companies alter measurement specifications for garments to enable consumers to fit into smaller sizes study (trying two pairs of jeans at a store in the same sizes to see how they fit ... too tight? too loose? just right? not what you were expecting?)--> managerial assumption that smaller is better and consumers prefer these numerically smaller sizes but the fact is they are not standardized (i.e. even with jeans, there is a very wide range of numbers in terms of inches for the waste band) Ex: try a pair of paints measuring 7/8 at the GAP which has a larger waste band feeling than a pair of pants measuring 7/8 you would try at American Eagle -- because not standardized, not going to fit as you expect motivations to pursue maintain, enhance, and protect self-esteem as a universal human need - self-esteem is one of these fundamental human needs and we derive our self-esteem from many different areas (e.g. global self-esteem and then specific dimensions of our self-esteem such as appearance and intelligence) -- subjective -- we rely on these social comparisons appearance self-esteem influenced by appearance related social comparisons research shows: ~ vanity sizing: getting favorable self-esteem feedback from the size ~ when companies engage in vanity sizing and tell us that we wear a relatively smaller clothing size is a booster to self-esteem ~ when consumers got that booster of self-esteem, they were actually willing to pay more money for the same pair of paints ~ but ... what about getting unfavorable feedback ... the reverse is happening

Native American Consumers

- 15 states have 100,000 or more Native American residents: California, Oklahoma, Arizona, Texas, New York, New Mexico, Washington, North Carolina, Florida, Michigan, Alaska, Oregon, Colorado, Pennsylvania and Minnesota - over 500 federally recognized tribes - 140,000 US Armed Forces Veterans - median HH (household) income $37,227 (vs. $53,657) - community issues are bigger than "casinos and mascots"

Consumer Behavior Research Methods - *Purchase Panels*

- IRI (information resources inc.), Nielson Household panels, BehaviorScan - track sales, incremental sales based on promotions (coupons, advertising)

Consumer Behavior Research Methods - *Data Mining*

- a common database may include: demographics, purchase or lifestyle information - data mining: search for patterns in the database on customer needs, preferences, or behaviors - electronic retailing: "if you liked that, you might like this ..." - grocery store loyalty cards: Buy baby food, but no diapers ...?

Consumer Behavior Research Methods - *Focus Groups*

- in-depth interviews with 6-12 consumers led by a moderator to discuss a product, concept, etc. - qualitative insights into consumer attitudes

Consumer Behavior Research Methods - *Observations*

- observe consumers in a lab setting (no direct interaction) - web tracking software

Today's Young Native Americans (short documentary)

- students in Minnesota - hunting and fishing - growing up poorer than others - processing own meat - Native American names that have meanings (i.e. clouds before a storm) - everyone has been affected by the trauma of colonization differently - one student mentioned that she thought one of the biggest downfalls of the culture was when Native American children were the dominant culture inside boarding schools, however, they couldn't speak their native language and couldn't practice their culture -- the government took the children out of their homes and put them in these schools far away from the reservation; therefore, these children grew up knowing nothing about their culture, their language, and the trauma of being ripped away from their parents or grandparents arms - alcoholism -- pain and trauma that was inflicted upon these adults and the youth at these schools - survivor/victim stage - not taught their history -- only taught from arrival of contact and on - responsibility to rebuild this culture and educate more people on Native Americans

Consumers Are Wary of Brands Who Seem to Be Trying to Check Off a Diversity Box

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Steps in the Research Process

1. analyze situation & define problem (problem definition) 2. conduct informal (exploratory) research ~ primary data ~ secondary data - internal & external 3. establish research objectives 4. conduct formal research ~ qualitative ~ quantitative 5. interpret & report findings

Reducing Stereotype Accessibility and In-Group Bias

1. recognize the arbitrary nature of many ingroup-outgroup distinctions - your ingroup at one moment could be your outgroup the next 2. put yourself in the place of the outgroup member - employ empathy - taking the perspective of the outgroup members and "looking at the world through their eyes," (Galinsky & Maskowitz, 2000) - think about times when you've been put in an outgroup position and remember how painful that was 3. look for commonalities between opposing groups - e.g. fans of opposing sports teams equally love the sport - e.g. people of different religions regard their faith as important to them -- there are basic human needs that transcend particular labels 4. work on building your inner sense of security - people are more likely to stereotype when they feel they have something to lose - if you feel more confident about your own identity, you'll be less likely to criticize someone else's 5. pass along the lesson - teach others the value of overcoming outgroup stereotyping

Gender Roles 1990s

1991 Virginia Slims (cigaratte brand designed for women) tagline: "You've Come a Long Way, Baby"

Stereotypical "American" Consumer (chart)

44 yrs and older - there is a larger amount of diversity compared to other age segments largest racial/ethnic [minority] segments in the US: - African Americans - Hispanic Americans - Asian Americans -- buying power: collectively well over $USD trillion (enormous spending power)

How the Household Influences Consumer Behavior: Pet Ownership

57% of all US households owned a pet at end of year 2016 38% of US HH own one or more dogs 25% of US HH own cats 13% of US HH own an exotic pet such as fish, ferrets, rabbits, hamsters, guinea pigs, gerbils, turtles, snakes, lizards, poultry, livestock nd amphibians

Brand Prominence: *GUCCI*

Gucci Loud - red and green band - also says "Gucci" -- no ambiguity that you are wearing Gucci sunglasses Gucci Quiet - has design elements specific to the Gucci brand but you don't see the screaming white text saying "Gucci" -- both very expensive pairs of sunglasses USC (University of Southern California) research: - found that motivations and shopping behavior for different types of Gucci sunglasses vary depending on whether consumers have a low or high need for status and whether those consumers are more or less wealthy -- when there are consumers who are wealthy but have a relatively lower need for status, those consumers are going to purchase the quieter Gucci sunglasses -- wealthy consumers who have a high need for status will tend to buy the loud Gucci sunglasses (communicating that they are in a high status group) - also found that consumers who are not wealthy and have a high need for status, therefore can't afford to buy these luxury brands, tend to buy counterfeits of the loud Gucci sunglasses (they want to signal to other consumers that they are wearing these high-status brands but they can't afford the originals)

Traditional Gender Roles 1940-1950s (pasta ad)

Mom's Night Off from cooking something unusual (mom is in a communal role) instead daughter Sue makes dinner it's easy for daughter to step in one night a week using "La Rosa" pasta ... we've even provided a recipe - when mother is out, daughter is being trained into this role which was quite common -- clear example of communal orientation assigned to this gender role

How Gender Affects Consumer Behavior: Sexual Orientation

Moving beyond stereotypes to effectively reach consumers - 1994, IKEA aired a commercial depicting two gay men shopping for a dining room set - since then, firms have targeted gay and lesbian consumers with positive marketing -- non-heterosexual consumers in many segments can be quite wealthy and in the US these consumers tend to make more shopping trips and spend more on average then their heterosexual counterparts (tends to have fewer children and tends to have relatively higher levels of disposable income) - LGBTQ consumers living in cities, tend to be single and have a relatively large amount of disposable income firms have struggled to reach these consumers: - Ford, Walt Disney, Kraft, P&G experienced backlash of some consumer groups -- so while they reach out to one consumer group, they alienate another that is less comfortable - contrary to stereotypes: LGBTQ consumers cut across all ages, lifestyles, ethnic groups