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