1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski LIFESTYLES, VALUES AND CULTURE

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-2 Lifestyles, values and culture At the end of this session, you should understand: What is meant by lifestyle, values and culture The use of lifestyle factors in market segmentation The increasing use of technology in market segmentation The major social and lifestyle trends that will influence marketing in the coming years The influence of consumer values on buying behaviour The influence of culture on consumer behaviour The unique consumption behaviour of subcultures and the influence of cultural diversity on mainstream consumption The influence of social class on consumption

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-3 Lifestyle, values and culture defined Lifestyle – The way we choose to allocate our time and resources Values – A reflection of our fundamental belief systems Culture – A complex system of knowledge, values, customs and beliefs that are shared by a society

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-4 Lifestyle segmentation Lifestyle segmentation looks at differentiating between groups of consumers based on their lifestyles – the activities they are involved in, their interests and their opinions Two broad approaches to lifestyle segmentation: – AIO  Activities  Interests  Opinions – VALS  Values and lifestyles

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-5 Roy Morgan ‘VALS’ model

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-6 Roy Morgan ‘VALS’ model

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-7 Changing Australian lifestyles Australia’s ageing population Internet usage and online purchasing Internet usage by children Social and lifestyle trends – Media consumption trends – Sports and marketing in Australia Time poor consumers Healthy lifestyles Changing gender roles and society See EXHIBIT 10.1 Targeting the time poor customer, page 285.

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-8 Marketers of skin-care products now target men See EXHIBIT 10.2 Marketers of many products now target men specifically, page 286.

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-9 Patriotism and the Australian identity ‘Australian made and owned’ What does this statement mean to you? See EXHIBIT 10.3 Australian-made Dick Smith Foods, page 287.

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-10 Culture Our basic system of values – incorporates knowledge, beliefs, art, morals, laws, customs and other habits acquired by members of a society Made up of three interrelated elements: – Physical environment – natural geography – Social environment – political, educational, family, class structures – Training environment – formal and informal socialisation

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-11 Elements of culture Norms – Shared values or ‘rules’ – These outline acceptable behaviour of that culture – Includes legal norms - laws Values – Shared social ideals – which are a reflection of social norms

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-12 Society and socialisation By interacting within a society we learn from them Primary tool for socialisation is our family Also learn from – School – Peer groups – Media

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-13 Cultural diversity - subcultures List the types of ethnic restaurants available in your city or town Subcultures A subculture is a group within the wider community that has a unique set of characteristics, motivations and patterns of behaviour This includes: – Different ethnic groups and communities – The youth market – Baby boomers and the ageing market There are numerous marketing opportunities appealing to different subcultures within the wider community

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-14 ACTIVITY Discuss the concept of sub culture. Can you identify some sub cultures within China? Within Shanghai?

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-15 Social class and social stratification Social class system: – A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values and lifestyles Social stratification – The division of a society into different social tiers known as classes Does social class exist in Australia?

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-16 Theories on social class Social stratification Middle Australia The ‘AB’ demographic Measuring social class

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-17 ACTIVITY Discuss the idea of social class in a marketing context. How do marketers use social class in Australia to segment the market?

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-18 ACTIVITY Now think about China. What differences are there between rural dwellers and urban dwellers? Concentrate on issues that affect Buyer Behaviour. Are there other social groups in China?

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-19 ACTIVITY Think about a shopping centre that you are familiar with. Picture some of the retail outlets and the type of merchandise they have. Do these outlets appeal to different social classes?

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-20 Marketing implications of social class Market segmentation and product positioning – E.g. luxury, prestige cars appealing to those with high social status See EXHIBIT 10.6 This advertisement represents ‘visible achievement’, page 306.

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 10-21 A social class appeal See EXHIBIT 10.5 A social class appeal, page 301.