1. Major Consumer Reference Groups Reference Groups

2. Values and Culture: Cross-Cultural Comparisons.

3. Are Cultural differences that important in our modern society ? USA 60% child, 35% wife, 5% mother Asia85% mother * Horton (2001) * Hofstede (1983) If you were on a sinking ship with your wife, your child, and your mother, each of whom could not swim, which one would you save, if you could only rescue one? * *

4. Why Talk about Cultural Differences ? ″Differences between national cultures create important opportunities for growth and development, but also can cause serious problems if they are not understood.″create important opportunities cause serious problems (Mead 1998)

5. Problems Communication blunders When Pepsi started marketing its products in China a few years back, they translated their slogan: "Pepsi Brings You Back to Life" quite literally. The slogan in Chinese really meant: "Pepsi Brings Your Ancestors Back from the Grave." Clairol, introduced the "Mist Stick", a curling iron, in Germany only to find out that mist is slang for trash or waste.

6. “Culture may be thought of as a society’s personality.” “It includes both abstract ideas, ideas, such as values and ethics, as well as the material objects and services, services, such as automobiles, clothing, food, art…that are consumed or valued by a group of people.” people.” (Hoyer and McInnis, 2001) “Culture is the accumulation of shared shared meanings, rituals, norms and traditions among the members members of an organization or a society.” (Schiffman and Kanuk, 1998)

7. Two Images for a Better Understanding of Culture “Culture can be pictured as a pair of glasses through which people perceive their environment.” “Culture and Consumer Behavior can also be pictured as a two-way street.”

8. Sources of culture LanguageNationality EducationProfession Group (ethnicity)Religion FamilyConsumption Social class

9. Culture: Sharing Values Universal A Relative Importance: A system of values. Role of Enculturation “Every culture is defined by a set of values shared by its members.”

10. Values of Society The Values Transfusion Model

11. Values of Society Religious Institutions Early Lifetime Experiences Family Educational Institutions The Values Transfusion Model

12. Values of Society Religious Institutions Early Lifetime Experiences Family Educational Institutions Individual Internalized Values PeersMedia The Values Transfusion Model

13. Values of Society Religious Institutions Early Lifetime Experiences Family Educational Institutions Society of Future Individual Internalized Values PeersMedia The Values Transfusion Model

14. The Rokeach Value Survey Instrument TERMINAL VALUESINSTRUMENTAL VALUES A COMFORTABLE LIFEAMBITIOUS AN EXCITING LIFEBROAD-MINDED A WORLD AT PEACECAPABLE EQUALITYCHEERFUL FREEDOMCLEAN HAPPINESSCOURAGEOUS NATIONAL SECURITYFORGIVING PLEASUREHELPFUL SALVATIONHONEST SOCIAL RECOGNITIONIMAGINATIVE TRUE FRIENDSHIPINDEPENDENT WISDOMINTELLECTUAL

15. TERMINAL VALUESINSTRUMENTAL VALUES A WORLD OF BEAUTYLOGICAL FAMILY SECURITYLOVING MATURE LOVEOBEDIENT SELF-RESPECTPOLITE A SENSE OF ACCOMPLISHMENTRESPONSIBLE INNER HARMONYSELF-CONTROLLED

16. Summary of American Core Values VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR ACHIEVEMENT AND SUCCESS ACTIVITY Hard work is good; success flows from hard work Acts as a justification for acquisition of goods EFFICIENCYAND PRACTIALITY Admiration of things that solve problems People can improve themselves; tomorrow should be better than today. Stimulates desire for new products that fulfill unsatisfied needs; ready acceptance of products that claim to be “new and improved” Keeping busy is healthy and natural Stimulates interest in products that are time-savers and enhance leisure time

17. VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR MATERIAL COMFORT “The good life”Fosters acceptance of convenience and luxury products that make life more comfortable and enjoyable FREEDOMFreedom of choiceFosters interest in wide product lines and differentiated products INDIVIDUALISMBeing oneselfStimulates acceptance of customized or unique products that enable a person to express his or her own personality EXTERNAL CONFORMITY Uniformity of observable behavior; desire for acceptance Stimulates interest in products that are used or owned by others in the same social group

18. VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR YOUTHFULNESSA state of mind that stresses being “young at heart” and having a youthful appearance Stimulates acceptance of products that provide the illusion of maintaining or fostering youthfulness HUMANITAR- IANISM Caring for others, particularly the underdog Stimulates patronage of firms that compete with market leaders FITNESS AND HEALTH Caring about one’s body, including the desire to be physically fit and healthy Stimulates acceptance of food products, activities, and equipment perceived to maintain or increase physical fitness

19. Example of Value use in Advertising: Molson Canadian Reinforcement of Nationalism- Patriotism: Survey Product, Communication and positioning. Canadian difference reinforced. 1-2-3-4-5-61-2-3-4-5-6

20. American Core Values American values and advertisingvaluesadvertising Which core values provide appeals for advertising? Understanding values helps advertisers avoid violating norms or standards of society Sometimes advertisers shock consumers by “breaking the rules”shockbreakingtherules

21. Symbol Anything that stands for something else. Symbols can be verbal or nonverbal.

22. Ritual A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated over time.

23. Selected Rituals and Associated Artifacts SELECTED RITUALSTYPICAL ARTIFACTS WeddingWedding-22White gown (something old, something new, something borrowed, something blue) Birth of childU.S. Savings Bond, silver baby spoon JoggingTowel, exercise clothes, water, portable tape player 50th Wedding AnniversaryCatered party, card and gift, display of photos of the couple’s life together GraduationPen, U.S. Savings Bond, card, wristwatch Valentine’s DayCandy card, flowers New Year’s EveChampagne, party, fancy dress ThanksgivingPrepare a turkey meal for family and friends

24. SELECTED RITUALSTYPICAL ARTIFACTS JoggingTowel, exercise clothes, water, portable tape player Sunday footballBeer, potato chips, pretzels Super Bowl PartySame as Sunday football (just more) Starting a new jobGet a haircut, buy some new clothing Get a job promotionTaken out to lunch by coworkers, receive token gift RetirementCompany party, watch, plaque DeathSend a card, give to charity in the name of the deceased

25. Classifying and Comparing Cultures 4 dimensions 4 dimensions (Hofstede, 1980) Power Distance Uncertainty Avoidance Masculinity/FeminityCollectivism/Individualism Period artifact, sample, attitude-survey, (Horton et al, 2001; Sondegaard, 1994)

26. Cross-Cultural Marketing Adaptation  Local standards  Local hygiene and safety standards  Local particuliarities in service, maintenance and distribution  Avoidance of unfavorable image of imported products, companies, nationality or brand names  Cultural adequate use of symbols possible Standardization  Use of: Experience effects Economies of scale International standards  International use of products  Significant learning effects  Use of favorable image of imported products, companies, nationality or brands, exotic or ethnic appeal

27. Subculture  “ Groups whose members share beliefs and common experiences that set them apart from other members of a culture”  “A distinct cultural group that exists as an identifiable segment within a larger, more complex society.”

28. Relationship Between Culture and Subculture Subcultural Traits of Hispanic Americans Dominant Cultural Traits of U.S. Citizens Subcultural Traits of Asian Americans

29. Examples of Major Subcultural Categories CATEGORIESEXAMPLES NationalityFrench, Puerto Rican, Korean ReligionCatholic, Hindu, Jew Geographic regionSoutheastern, Midwestern, Eastern RaceAfrican-American, Caucasian, Asian-American AgeY, Xers, middle age, elderly GenderFemale, Male OccupationEngineer, cook, plumber Social classLower, middle, upper

30. LifestyleLifestyle Studies Studies LifestyleStudies How time is spent Importance of things around them Beliefs Socioeconomic characteristics

31. Principle Oriented Status Oriented Abundant Resources Minimal Resources Action Oriented VALS 2 - LIFESTYLE SEGMENTATION Source: VALS 2, SRI International

32. Principle Oriented Status Oriented FULFILLED 11% BELIEVERS 16% Abundant Resources Minimal Resources Action Oriented VALS 2 - LIFESTYLE SEGMENTATION

33. Principle Oriented Status Oriented FULFILLED 11% BELIEVERS 16% ACTUALIZERS 8% ACHIEVERS 13% STRIVERS 13% STRUGGLERS 12% Abundant Resources Minimal Resources Action Oriented VALS 2 - LIFESTYLE SEGMENTATION

34. Principle Oriented Status Oriented FULFILLED 11% BELIEVERS 16% ACTUALIZERS 8% ACHIEVERS 13% STRIVERS 13% STRUGGLERS 12% Abundant Resources Minimal Resources Action Oriented EXPERIENCERS 12% MAKERS 13% VALS 2 VALS 2 - LIFESTYLE SEGMENTATION VALS 2

35. Subcultures  Ethnic Subculture  The US situation (plurality and main groups)  Ethnic groups geographically concentrated  Effect of Immigration  Major changes

36. Intercultural Influence When and how cultural changes happen? Acculturation and ethnic IdentityMeasures: Social Participation, Language, Religion…..Unidimensional versus bi-level. Acculturation Ethnic identity Individual A Strong AccWeak Acc Strong Et IdWeak Et Id

37. U.S. Ethnic Landscape : Cues for Reflection

38. Source: Claritas, 2003

41. Targeting Hispanic- American Consumers

42. Challenges for Ethnic Marketing in the U.S. Privacy and Redlining : ethical issues PreconceivedPreconceived perceptions of ethnic groups Diversity within an ethnic group and constant evolution of ethnicity: Post Ethnic America.

44. Issues in Studying Hispanic American Subcultures Hispanic Consumer Behavior – Stronger preference for well-established brands – Prefer to shop at smaller stores – Some are shifting food shopping to non-ethnic American-style supermarkets – Youths are more fashion-conscious

45. Ways in Which “Hispanic” Has Been Defined NAME OF INDICATOR NATURE/SCOPE AND COMMENTARY Spanish surname Not a definitive; since a non-Hispanic person might have a Spanish surname, or an Hispanic person might have a non- Spanish surname. Country of origin The birthplace of persons born in the Untied States of Hispanic parents would not reveal their Hispanic background. Country of family ancestry Includes those individuals who may not be Hispanic despite coming form a particular Spanish-Latin country. Spanish spoken at home A significant minority of Hispanic households may speak English at home, yet consider themselves to be cultural Hispanic. Self- identification It is reasonable that if an adequate number of self-report choices are offered, a person might identify himself or herself as “Hispanic.” Degree of identification This measure captures the “degree” of personal identification as “Hispanic” and augments the self-identification measure.

46. Figure 13.4 Hispanic Linguistic Challenge

47. Reaching the African- American Audience Two Alternate Strategies – Running all the advertising in general mass media – Running additional advertising at special advertising in selected media directed exclusively to African-Americans

48. Asian-American Consumers Where Are the Asian- Americans? – Largely urban Asian-Americans As Consumers – Buying power of $110 billion annually – Brand loyal customers – Frequently male-oriented consumer decisions – Attracted to retailers who welcome Asian-American patronage

49. Facts and Figures regarding Ethnic Markets

51. Regional Influences Regions Within the United States – Nine Nations of North America

52. Exhibit 13.3a: The “Nine Nations of North America” Source: Journal of Marketing. Art reprinted by permission.

53. Table 13.4 Product Purchase/Usage by Leading Metropolitan Market PRODUCT PURCHASE/USAGE HIGHEST PURCHASE/ USAGE LOWEST PURCHASE/ USAGE Own Rollerblades/in-line skatesDetroitDallas New domestic carDetroitSan Francisco New imported carWashington, D.C.Detroit Have life insuranceClevelandSan Francisco Drink Scotch whiskeyDallasCleveland Purchased men’s jeansClevelandNew York Have a bowling ballDetroitBoston Use eyelinerDallasPhiladelphia Use artificial sweetenersDallas-Fort WorthSan Francisco Used cough syrup (past 6 months)ChicagoWashington, D.C. Popcorn (past 6 months)DetroitNew York Lottery tickets (past 12 months)ClevelandWashington, D.C.

54. Major Age Subcultures Generation X Market Baby Boomer Market Seniors Market Generation Y Market

55. Age and Challenges Kids and Tweens Teens Young Adult Middle Adult Older Adult Having cool stuff Making friends Fitting in Rebelling Dating College Job Car Housing and furnishings Marriage/Committed partner Children Bigger house and more furnishings Aging parents Managing time Retirement Managing health Maintaining social relations AgeChallengesImplications:

56. Cohort Effects and Preferences Girl/Boy bandsTerrifiedSave young, retire early 1995-2012 Rap, Grunge, Retro ConfusedSpend? Save? What? 1984-1995 Rock & RollPermissiveSpend, spend, borrow, spend 1973-1983 Rock & RollPermissiveSpend, spend, borrow, spend 1964-1972 Frank Sinatra, Patti Page RepressiveSave some, spend some 1946-1963 SwingAmbivalentSave a lot, spend a little 1940-1945 Big BandIntolerantSave for a rainy day 1930-1939 Favorite Music Sex MindsetMoney MottoComing of Age Cohort Depression World War II Post-War Boomers I Boomers II Generation X Generation Y

57. Kids Brand Formation – 98% of kids aged 9-13 know what car they would like to drive when they grow up. – 97% know the best brand of athletic shoe. – 93% know the best store to buy athletic shoes. – 90% know the best store to buy clothing with sports team logos. – 84% know the best brand of computer. – 77% know the best hotel. – 75% know the best brand of camera. Source: Sports Illustrated for Kids 1997 Omnibus Studies.

60. Kids: What Makes A Kid Cool?

61. 93% of kids between 9 and 13 influence what kinds of jeans their parents buy for them. 89% influence the kind of cookies, desserts, soda, chips and cereal purchased for their household. 61% of kids said they helped their parents decide what kind of family car to buy. 41% of kids whose parents bought a new car took the kids with them when car shopping. Kids Source: Sports Illustrated for Kids 1997 Omnibus Studies.

62. Grew up with working mothers, divorce, threat of AIDs. Searching for a soul-mate. 82% of 18-24 say motherhood is the most important job in the world, compared to 72% of Generation X’ers. 24% of 18-24 say sex before marriage is not wrong at all, compared to 48% of those 45-54. Dating Safety trends – Meeting in coffee bars – Group dates – Blockbuster nights – Finding love online: love@aol (125,000 ads year round, 43,000 from 18-25 year olds  chat rooms  “go voice”  actual meeting)  Cyber Vows chat room (reception for the new millennium).love@aol Love and Generation Y Source: Helene Stepinski, “Y Not Love”, American Demographics, February 1999.

63. Generation Y Born between 1977 and 1994; also called echo boomers and millennium generation

64. Gen Y Adult Appeal

65. Generation X Born between 1965 and 1979; post baby boomer segment (also referred to as Xers or busters).

66. Baby Boomers Individuals born between 1946 and 1964 (approximately 45% of the adult population).

67. Baby Boomers The largest age category alive today Frequently make important consumer purchase decisions Include a small subsegment of trendsetting consumers (yuppies) who influence consumer tastes of other age segments

68. Application Sony is introducing a new 27-inch TV with a picture-in-picture feature. How should the company position and advertise the product to (a) generation X consumers and (b) affluent baby boomers? Ex 1 - 212

69. Appealing to Yuppies

70. Seniors Generally older consumers. Consist of subcultures, including the 50-plus market and the “elderly consumers” market.

71. Three Senior Subsegments Senior The Young-Old (65-74) The Old (75-84) The Old-Old (85 and older)

72. Issues in Understanding Sex as a Subculture Sex Roles and Consumer Behavior – Masculine vs. Feminine Traits Sexual Orientation – Segmentation Issues – Shopping Patterns

73. Religious Subcultures 200+ organized religious groups in the U.S. Primary organized faiths include: – Protestant denominations – Roman Catholicism – Judaism or otherother Consumer Behavior is directly affected by religion in terms of products that are symbolically and ritualistically associated with the celebration of religious holidays

74. Ad Containing Kosher Indicator

75. Subcultures of Consumption Consumption “Pink” Marketing “Pink” MarketingPink “Vert” Marketing “Vert” MarketingVert Sports Marketing

76. Application Using one of the subculture presented, identify a group that can be regarded as a subculture within the university. Describe the norms, values and behaviors of the subculture members. How would marketers reach this group?