1. Marketing 334 Consumer Behavior
Chapter 4
Demographics and Social Stratification
Text: Consumer Behavior; Hawkins, Mothersbaugh and Best; 10th ed.

2. 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?

3. Demographics and Social Stratification
Population and Size
Occupation
Education
Income
Age

4. 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.

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

6. 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

7. 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

8. 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

9. 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

10. Social Stratification
Social Rank
Social Class system

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

12. 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

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

14. 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.