MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 1 CONSUMER DIVERSITY

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 2 U.S.: Actual and Projected Age Distribution

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 3 Japan: Actual and Projected Population Figures

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 4 China: Actual and Projected Population Figures

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 5 Age Distribution Across the U.S.

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 6 U.S. Teen Market More skeptical about traditional branding, but brand preferences may nevertheless set in early Emphasis on non-traditional media

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 7 Millennial Generation ( ) More likely to own laptops and or other portable devices (other than cell phones)—older generations are more likely to own desktops (relatively speaking) and teenagers may not yet have these devices independently at rates as high Four major benefits of electronics sought: – Immediacy – Entertainment – Social interaction – Self-expression “Boomerangers:” Individuals moving home to live with parents – Convergence with other countries – Italian mamoni: “Mama’s boys” – May be driven in some measure by high student debt levels and limited career opportunities during recession – Later ages may also contribute

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 8 Millennial Generation II Important market since brands chosen at earlier ages are more likely to become accessible for internal search Heavy impact of social media – Youtube “hauls” and tutorials – Selfies – Expression of eclectic tastes—preference for some same brands but also interest in thrift shops and other self-created items

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 9 Generation X (Born ) Considerable diversity in accomplishment Less likely than previous generations to surpass parents in terms of living standards

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 10 Baby Boomers (Born ) Tend to have high levels of buying power Have grown up with television and tend to watch more than other groups Many are now retired “Sandwich” generation: May be caring both for older children and their own parents

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 11 Seniors (65+): Gray Market Many are still active and relatively healthy Some are not into advanced information search (yet others have a great deal of time for online search)

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 12 Gender Issues Current and traditional gender roles – U.S. – International variations Consumption practices Consumer behavior

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 13 Gay and Lesbian Consumers Increasing numbers of firms reaching out Targeted advertising Occasional discrimination from other consumers Rapid change in attitudes among firms and consumers over the last several years Most states have some laws against discrimination against gays and lesbians Employment Lack of willingness to sell

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 14

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 15 Geographical Diversity Regional Differences – Traditional differences – Effects of mobility – Political “Red” vs. “Blue” states (diversity within each state) “God, Guns, and Guts” bumper stickers Community clustering – Nielsen Segmentation PRIZM (formerly by Claritas)

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 16 Ethnicity and Acculturation Ethnic groups – Diversity within groups Group differences (e.g., U.S. Mexican, Cuban, and Guatemala origin Latinos) Individual variations – Large impact of overall national identity – Considerable impact of ethnic identity (e.g., culture, religious beliefs as well) Acculturation: Process by which cultural characteristics are internalized over time – Reinforcement: Rewards and punishments for behavior (may be subtle)

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 17 Hispanic American Consumers Considerable diversity – Wide variation in English language usage—some may speak little English; some may speak little Spanish – Extent of identification – Subgroups based on national origin Overall label may not be meaningful – Variations within Spanish spoken Specific traditions—e.g., quinceañera

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 18 African American Consumers Large variations (e.g., degree of interest in assimilation with the majority culture) Media (e.g., BET) Historical experience of discrimination – Discrimination was legal in the U.S. up until the 1960s – High rates of store mistreatment and suspicion of shoplifting although rates of shoplifting among African American consumers are actually lower than for other groups – Subtle and less subtle stereotypes Spending on housing is often disproportionately lower than income with spending diverted elsewhere

MKT 450 CONSUMER DIVERSITY Lars Perner, Instructor 19 Asian American Consumers Higher than average U.S. income (but large variations) Large variations – Between specific groups (e.g., Chinese, Vietnamese, Korean) – Among individuals