1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Subculture and Social Class Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 13

3. 13-3 Subcultures Distinctive groups of people in a society that share common cultural meanings for –Affective and cognitive responses –Behaviors –Environmental factors

4. 13-4 Types of Subcultures Marketers use a variety of demographic characteristics to identify subcultures

5. 13-5 Analyzing Subcultures Can be analyzed at different levels and often done in stages –A broad subculture is identified based on some broad demographic characteristics – It is further segmented into subcultures based on other demographic characteristics –If necessary, further segmented into even smaller and more precisely defined subcultures

6. 13-6 Analyzing Subcultures cont. Can follow the same approach as cultural analysis –Content of subculture examined based on description of cultural meanings shared by its members Marketers identify the typical characteristics, meanings, and behavioral tendencies shared by people in the subculture

7. 13-7 Analyzing Subcultures cont. Marketers need to determine the appropriate level of analysis for the problem, and develop appropriate marketing strategies

8. 13-8 Geographic Subcultures The U.S. is a polycultural nation –A mosaic of submarkets and subcultures Ways to analyze the United States in terms of geographic subcultures –Joel Garreau’s “nine nations” of North America Effective for developing specific marketing strategies to appeal to area specific consumers –Borderland Regions Represented by a majority of people in the lower- than-average income bracket

9. Eight “Nations” of the United States

10. 13-10 Age Subcultures Age groups have distinctive values and behaviors Importance to be given to psychological age rather than chronological age –Teen market Gaining affluence and fluctuating in size Own discretionary purchasing power Large portion of the grocery shopping done by teens Brand loyalty forms early among teenage shoppers

11. 13-11 Age Subcultures cont. –Baby Boomers People born between 1946 and 1964 Largest and most affluent group in history A blend of “me-generation” and old-fashioned family values Strongly influence the values of other groups Characterized as being health conscious, more educated and have double income families Emphasizes quality and is less interested with bargain hunting Most lucrative and challenging group for marketers

12. 13-12 Age Subcultures cont. –The mature market Consumers over the age of 55 – often further subdivided into narrower age ranges Among one of the most rapidly growing subcultures Its economic character deserves careful consideration Important to recognize how the market is changing Has the highest rate of per capita discretionary income than any other age group Has many retired people who have more time to enjoy entertainment and leisure activities Developing marketing strategies is difficult

13. 13-13 Ethnic Subcultures The ethnic makeup in the United States has changed dramatically in the past two decades –Ethnic diversity is not distributed equally across the U.S. –The black subculture The largest minority group in the U.S. Economic conditions vary considerably in different metropolitan areas Marketers could further subdivide this group based on income, social class, etc.

14. 13-14 Ethnic Subcultures cont. –The Hispanic subculture Unequally distributed across the U.S. Diverse Three broad segments –Only Spanish speaking –Bilingual, but favoring Spanish –Bilingual, but favoring English Getting good information about Hispanic needs, values, and beliefs is difficult

15. 13-15 Ethnic Subcultures cont. –Asian subculture Among the most rapidly increasing ethnic group in the U.S. Requires special marketing attention for many companies Purchase decisions be based on country of origin and length of time in that country A prime market because they are more affluent than any other racial or ethnic group Very diverse subculture

16. 13-16 Gender as a Subculture Gender differences significant enough to consider the two sexes as separate subcultures. –Women either make or greatly influence most purchasing decisions –Higher number of working women with discretionary income to spend

17. 13-17 Income as a Subculture People at different income levels tend to have quite different values, behaviors, and lifestyles –American households can be divided into three income categories Downscale Upscale Middle income

18. 13-18 Acculturation Processes Acculturation refers how people in one culture or subculture understand and adapt to the meanings of another culture or subculture Consumer acculturation refers to how people acquire the ability and cultural knowledge to be skilled consumers in different cultures or subcultures Important in the modern world

19. 13-19 Acculturation Processes cont. –Important for people who move to different regions within same country and must adapt to different subcultural meanings –Degree to which immigrants, movers, and marketers become acculturated depends on their level of cultural interpenetration

20. 13-20 Acculturation Processes cont. –Four stages of acculturation corresponding to four levels of cultural interpenetration Honeymoon Rejection Tolerance Integration –An important aspect is proficiency in the language of the new culture

21. 13-21 Social Class A national status hierarchy by which groups and individuals are distinguished in terms of esteem and prestige Four social class groups used for consumer analysis in the U.S. –Upper –Middle –Working –Lower

22. 13-22 Social Class cont. –Identification with each social class is influenced most strongly by one’s level of education and occupation –A composite of many personal and social attributes –Families in each social class can be further classified Overprivileged Average Underprivileged

23. 13-23 Social Class cont. –Social class and relative standing within a class are important sources of consumers’ beliefs, values, and behaviors –At a conceptual level, are useful for investigating the process by which consumers develop their characteristic beliefs, values, and behavior patterns

24. Social Class Groups for Consumer Analysis

25. 13-25 Social Class versus Income Controversy as to whether social class or income is the better variable for use in consumer analysis –Each variable has its advantages and disadvantages –The choice between using social class, income, or a combination depends on the product and the situation

26. 13-26 Social Class Versus Income cont. Social class superior to income for method and place of purchase of highly visible, symbolic, and expensive objects Income is generally used for understanding purchase of products that require substantial expenditures but are not status symbols within the class Combination of social class and income is usually superior for product classes that are highly visible, are symbols of social class or status within the class and require moderate to substantial expenditure

27. 13-27 Summary Discussed two macro social influences on consumers’ behaviors, cognitions, and affective responses Learned how social factors influence peoples thinking, feel, and behavior relative to their physical, social, and marketing environments

28. 13-28 Summary cont. Discussed subcultural influences in terms of geographic area, age, ethnic groups, and other factors Social class influences were discussed in terms of their roles both in explaining consumer behavior and as a strategic tool