Chapter 4 Demographics and Social Stratification

Can you guess which generation is the highest prescription drug use? Mature market Generation x Generation y Millenials Can you guess what percent in each generation is on at least one prescription drug?

Demographics and Social Stratification Population and Size Occupation Education Income Age

Understanding American Generations A Generation or age cohort is a group of persons who have experienced a common social, political, historical, and economic environment. Cohort analysis is 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.

Understanding American Generations Pre-Depression Depression Baby Boom Generation X Generation Y Millennials Mature Market

Understanding American Generations How to Target the Mature Market Gerontographics has identified the following four segments of the mature market: - Healthy Indulgers (7 million, rapidly growing) - Ailing Outgoers (18 million) - Health Hermits (20 million) - Frail Recluses (18 million) 4-6

Understanding American Generations Baby Boom Generation: A Closer Look Compared to prior generations, Boomers are: Higher income, higher education More tech savvy Defining retirement differently Boomers also are: Strong market for “anti-aging” products, travel, and financial services Often alienated by overly “youth oriented” appeals in ads

Understanding American Generations Generation Xers: A Closer Look Beyond the stereotype: 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

Understanding American Generations Generation Yers: A Closer Look 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 edgy and affordable products

Social Stratification Social Rank Social Class system

Social Structure in the United States Social Standing is Derived and Influences Behavior

American Social Classes Upper-Upper Class Lower Upper Class Upper Middle Class Middle Americans Middle Class Working Class Lower Americans Upper-Lower Class Lower-Lower Class

The Measurement of Social Class Two Basic Approaches: Single item Index Multi-item Index

Marketing Strategy Considerations Should the marketer use an overall measure of social status or a demographic variable? A product or brand may have different meanings for different social strata. Different purchase motivations for the same product may exist between social strata.

Chapter 5 SubCultures

Consumer Behavior In The News… If you worked in Wal-Mart’s meat department, how would you slice the meat for Hispanics versus the general population? Thicker Thinner The Same Source: L. Miller, “Cutting it Thin,” Supermarket News, November 7, 2005, p. 45.

The Nature of Subcultures A subculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior. Identification with a Subculture Produces Unique Market Behaviors

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

Ethnic Subcultures Ethnic subcultures are those subcultures whose members’ unique shared behaviors are based on a common racial, language, or nationality background. Major Ethnic Subcultures in the US 2005-2020 *May be of any race. Source: “Table 10 Resident Population,” Statistical Abstract of the United States (Washington DC: U.S. Bureau of Census, 2001), p.13.

African Americans Buying Power Consumer Groups Media Usage Demographics Buying Power Consumer Groups Media Usage Marketing Mix

Hispanic Americans Generational First Generation Second Generation A Closer Look at the Marketing Aspects of this Segment Buying power Consumer Groups Generational First Generation Second Generation Third (+) Generation Acculturation Marketing Mix

Asian Americans Buying Power Consumer Segments Marketing Mix Demographics Buying Power Consumer Segments Marketing Mix

Asian Americans A Closer Look at the Marketing Aspects of this Segment

Native Americans Buying Power Consumer Groups Marketing Mix Demographics Buying Power Consumer Groups Marketing Mix 5-24

Asian-Indian Americans Demographics Buying Power Consumer Groups Marketing Mix

Arab Americans Buying Power Consumer Groups Marketing Mix Demographics 5-26 1 Population estimate by the Arab American Institute.

Religious Subcultures America is basically a secular society. That is, the educational system, government, and political process are not controlled by a religious group, and most people’s daily behaviors are not guided by strict religious guidelines. Religious subcultures Non-Christian - Roman Catholic -Jewish - Protestant -Muslim - Born-Again Christian -Buddhist 5-27

Regional Subcultures Regional subcultures arise as a result of the following: - climate conditions - natural environment and resources - characteristics of the various immigrant groups that have settled in each region - significant social and political events. 5-28