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Chapter 10 Microcultures End of Chapter Material Discussion Questions (*) Indicates material on prep cards. 1. *How do microcultures affect value? Answer: Tastes, preferences, and behaviors are influenced by both microcultures, in a manner similar to how they are impacted by culture. Microculture membership affects all aspects of daily life, including consumption behaviors. What is valuable to one microculture may have no value at all to another. 2. How does the fact that culture is hierarchical affect consumer behavior? Answer: To say that culture is hierarchical implies that consumers belong to both an overall culture and various subcultures that are conceptualized as falling under the overall consumer culture. The influence of both culture and microcultures on consumer behavior is strong, with the influence of microculture being particularly strong. 3. How is role conflict related to microcultures? Answer: As the text discusses, each microculture brings with it role expectations for its members. Problems occur when the role expectations of the various microcultures conflict with one another. This was illustrated by the example of the sorority member. When consumers face situations that include conflicting expectations from the groups, role conflict occurs. 4. What are the major U.S. microcultures? Answer: The major U.S. microcultures are: regional, sex role, age-based, generation, religious, ethnic, and income/social class. 5. How are consumer product choices influenced by the “Nine Nationals of America”? Answer: This phrase implies that there are very real differences in consumer behavior across nine regions found in North America. Consumer preferences vary significantly across these regions, highlighting the important role that regional microcultures play in consumer behavior. As the text discusses, the most obvious examples are preferences for foods, beverages, and leisure activities such as sports. 6. *What are some of the distinguishing characteristics of the Millennial microculture in the USA? Answer: These consumers embrace technology like no other generation before them. Many were cocooned by parents when they were young and tend to view technology as a means to build community and relationships. They also tend to keep close contact with their parents. They are also relatively impulsive and optimistic. They have also been referred to as the first “always connected” generation, because they are constantly in touch with other consumers through various technologies. They often prefer to walk than drive, live in urban settings than in rural settings, and live in smaller homes. Many of these consumers are underemployed or unemployed, and have been forced to make poor financial choices largely due to the economy. 7. Which microcultures play a role in influencing consumer behavior worldwide? Answer: Microcultures are not solely a U.S. phenomenon. Microcultures exist throughout the world to varying degrees. Nearly all of the U.S. microcultures described in this chapter exist throughout the world and greatly impact consumer behavior worldwide. Student responses will vary, but any of the microcultures from the U.S. that were discussed in this chapter will apply worldwide at least to some extent. 8. How is the middle class microculture evolving in various regions of the world? Answer: The chapter discusses the middle class as it applies to the countries of China, Japan, and India. In both China and Japan, the middle class microculture is growing. This is not the case in Japan, where researchers have noted that it is actually declining and the gap between the Upper and Lower classes is becoming more pronounced. 9. What is meant by the term demographic analysis? Answer: A demographic analysis is used to develop a profile of a consumer group based on demographic variables. These analyses are often combined with geodemographic approaches. A major source of information for these analyses is the U.S. Census Bureau website. 10. How are demographic and geodemographic analyses similar? Answer: By definition, geodemographic analyses begin with an examination of demographics. Both methods rely on identified characteristics of a population. Geodemographic analyses combine this information with geographic information pertaining to where consumers live. 11. What are the major cultural and demographic trends that are influencing consumer behavior? Answer: The book identifies four major cultural and demographic trends that are influencing consumer behavior. These include: decreasing birthrates, increasing consumer affluence, increasing life expectancy, and increasing cultural diversity. Students should be expected to discuss each of these trends when answering this question. 12. *What is the major factor that is influencing the increase in cultural diversity worldwide? Answer: Immigration and migration are both affecting cultural diversity worldwide. As consumers move from one region to another, cultural diversity is affected. Researchers expect this trend to continue worldwide and for cultural diversity to continue to increase as a result. Group Activity *Divide students into groups comprising different microcultures. Of course, this will vary depending on the enrollment of your university or college. An easy choice would be different ethnic microcultures, but religious, income, or generation might apply as well. Have them discuss the differences in value that they receive from various products. Examples would include things like mp3 players, laptop computers, various kinds of music, different fashions, activities they enjoy in their spare time, etc. They could even discuss how they view things like sex roles. Ask the students to attempt to come to a better appreciation of how their peers in different microcultures view the value of these things. You could even have them report their findings and opinions to the class. This is a great way to emphasize a key aspect of Chapter 10—the value we receive from things is largely influenced by the microcultures that we belong to. A word of caution would be to try to keep the discussions away from politics and/or religion. Of course, this is at your discretion as the professor. Discussions may become quite lively. Organizing a group activity like this can be a valuable way to explore how different microcultures perceive the value of various products and aspects of life. Here's how you can facilitate it: 1. Group Formation: Divide students into groups based on different microcultures, such as ethnicity, religion, income level, generation, or any other relevant categorization. Encourage diversity within each group to ensure a wide range of perspectives. 2. Discussion Topics: Assign each group a set of discussion topics related to products, activities, and social norms. Topics could include the value of technology like mp3 players and laptops, preferences in music genres and fashion styles, leisure activities enjoyed in spare time, and perceptions of gender roles and relationships. 3. Guided Discussion: Provide guiding questions to help structure the discussion within each group. Encourage students to share their personal experiences, preferences, and perspectives related to the assigned topics. Emphasize the importance of listening to and respecting the viewpoints of their peers from different microcultures. 4. Appreciation of Differences: Encourage students to reflect on how their own microculture influences their perceptions of value and how these may differ from those of their peers in other groups. Prompt them to consider how factors such as upbringing, socialization, and cultural background shape their preferences and attitudes. 5. Reporting Findings: After the group discussions, invite representatives from each group to share their findings and insights with the rest of the class. Encourage them to highlight common themes, differences, and points of agreement or disagreement that emerged during their discussions. 6. Class Discussion: Facilitate a class-wide discussion based on the findings presented by the groups. Encourage students to compare and contrast the perspectives shared by different microcultures and to reflect on the factors that contribute to these differences in perception. 7. Reflection and Conclusion: Conclude the activity by encouraging students to reflect on what they have learned about the influence of microcultures on perceptions of value. Prompt them to consider how increased awareness of these differences can foster empathy, understanding, and appreciation for diversity in consumer behavior. By engaging in this group activity, students can gain a deeper understanding of how microcultures shape perceptions of value and how these differences contribute to the richness and diversity of consumer behavior. Assignments 13. *Using a popular geodemographic tool such as PRIZM, find information about your local college town. What social classes are present in your town according to this tool? Are all of the social classes presented in the textbook present in your town? Answer: Most towns will have a full mix of social classes, although it is likely that not every town will have consumers at the upper end of the social class mix. However, I can provide a general response based on common geodemographic trends. Geodemographic tools like PRIZM often categorize neighborhoods and communities based on demographic and socioeconomic characteristics, including social class. These classifications typically encompass a range of social classes, such as: 1. Affluent Professionals: These are typically higher-income individuals with advanced degrees or prestigious occupations. They may live in upscale neighborhoods and prioritize luxury and convenience in their lifestyles. 2. Urban Elite: This group consists of wealthy, cosmopolitan individuals who reside in urban centers. They often lead dynamic, culturally rich lifestyles and have a high level of disposable income. 3. Middle Class: The middle class encompasses a broad range of income levels and occupations. They may include white-collar professionals, small business owners, and skilled workers. This group values stability, homeownership, and quality of life. 4. Working Class: The working class comprises individuals in blue-collar or service-based occupations. They may have lower incomes and less education than the middle class but prioritize hard work, family, and community. 5. Striving Urbanites: This group includes younger, upwardly mobile individuals who are ambitious and career-focused. They may live in urban areas and prioritize experiences, education, and career advancement. 6. Middle America: Middle America consists of suburban and rural residents who prioritize traditional values, family, and community. They may have moderate incomes and live in more affordable housing markets. The presence of these social classes in a college town can vary depending on factors such as the local economy, the presence of universities or colleges, and the overall demographics of the area. It's possible that not all social classes presented in the textbook are equally represented in every college town. Some college towns may have a higher concentration of students and young professionals, while others may have a more diverse mix of residents from different socioeconomic backgrounds. 14. Interview classmates who are in the Millennial generation and who are related to consumers in Generation Z (for example, brothers, sisters, cousins, etc.). How do they describe the differences between themselves and their relatives? Are these differences reflected in the discussion regarding these microcultures in the textbook? Answer: Conducting interviews with classmates from the Millennial generation who have relatives in Generation Z can provide valuable insights into the differences between these two cohorts. Here's how the interviews might go: Interviewer: Hi [Classmate], I'm conducting interviews to explore the differences between Millennials and Generation Z, particularly in terms of consumer behavior and microcultures. Can you share your perspective based on your relationship with a relative from Generation Z? Millennial Classmate: Sure, I'd be happy to. I have a younger sister who is part of Generation Z, and there are definitely some noticeable differences between us. For one, she seems to be much more tech-savvy and digitally connected than I am. She's constantly on her phone, using social media platforms and streaming services, whereas I tend to use technology more for practical purposes like communication and work. Interviewer: That's interesting. Are there any other differences you've observed between yourself and your sister in terms of consumer behavior or preferences? Millennial Classmate: Definitely. I've noticed that she has different preferences when it comes to brands and products. She's more drawn to brands that are marketed towards her generation, with a focus on authenticity, individuality, and social responsibility. She's also more likely to shop online and participate in trends like influencer marketing and subscription services. Interviewer: How do these differences in consumer behavior between Millennials and Generation Z relate to the discussion of microcultures in the textbook? Millennial Classmate: Well, the textbook discusses how microcultures, such as generational cohorts, can influence consumer behavior and preferences. Millennials and Generation Z are two distinct microcultures with their own unique characteristics and values. Understanding these differences can be important for marketers and businesses in tailoring their strategies to effectively reach and engage with each generation. Interviewer: Thank you for sharing your insights. Do you believe these differences in consumer behavior between Millennials and Generation Z will have long-term implications for marketing and business? Millennial Classmate: Absolutely. As Generation Z becomes a larger and more influential consumer group, businesses will need to adapt their marketing strategies to cater to their preferences and values. This might involve leveraging social media, incorporating sustainability initiatives, and fostering authentic brand connections. Understanding these differences and staying attuned to evolving consumer trends will be key for success in the marketplace. In this hypothetical interview, the Millennial classmate provides insights based on their personal observations and experiences with a relative from Generation Z. These differences in consumer behavior and preferences between Millennials and Generation Z are indeed reflected in the discussion of microcultures in the textbook, highlighting the importance of understanding generational cohorts in marketing and business strategies. 15. Ask fellow students to describe the hierarchical nature of culture and microcultures as they relate to their own lives. Does their portrayal reflect the depiction presented in Exhibit 10.1? Answer: Depending on their nationality, the highest level of the cultural hierarchy will differ. Lower levels of the hierarchy will differ as well. When foreign students are staying temporarily in another country, they may feel that they belong to very few microcultures in their host country. This is another great activity for good class discussion. 16. Search the Internet, using a tool such as “Google images” to search for photos of college-aged students in various microcultures worldwide. For example, look for Emo or Goth consumers in a country that you consider to be foreign. Would these consumers appear to fit in your home culture? Why or why not? How are they different from Emos or Goths in your home country? Answer: It should be a fun activity for students to do. One example that students might find interesting are the Gothic Lolitas found in Japan. They do look quite different from Goths in the United States. Emos and Punks also differ significantly across countries and cultures. Emo and Goth subcultures have a global presence, with variations in style, expression, and cultural significance across different countries and regions. When considering whether Emo or Goth consumers from a foreign country would appear to fit in a home culture, several factors come into play: 1. Fashion and Style: Emo and Goth fashion often involve dark clothing, unique hairstyles, and distinctive accessories. While these styles may be recognizable globally, the specific fashion trends and aesthetics can vary from one country to another. Emo or Goth consumers from a foreign country may have slightly different fashion preferences or interpretations of these subcultures compared to those in a home country. 2. Cultural Context: The cultural context and social norms of a country can influence the expression and reception of Emo and Goth subcultures. In some countries, these subcultures may be more socially accepted or prevalent, while in others, they may be considered more niche or countercultural. Emo or Goth consumers from a foreign country may navigate different cultural dynamics and face varying levels of acceptance or scrutiny compared to those in a home country. 3. Community and Identity: Emo and Goth subcultures often provide a sense of community and belonging for individuals who identify with their values and aesthetics. While there may be similarities in the experiences and identities of Emo or Goth consumers across different countries, there can also be unique cultural influences and local subcultural scenes that shape their sense of identity and belonging. Overall, while Emo or Goth consumers from a foreign country may share common traits and interests with those in a home country, there may be subtle differences in their expression of these subcultures based on cultural context, fashion trends, and social dynamics. These differences contribute to the richness and diversity of subcultural identities globally, highlighting the dynamic nature of youth culture and expression. 17. Interview a fellow student from another culture and ask them how societal role expectations differ in their home culture as compared to the local culture at your school. Are you surprised by their descriptions? Why or why not? Answer: This exercise is intended to bring the discussion on role expectations closer to home. Chances are that responses will largely be centered on gender role expectations. However, other expectations, including those centered on religion may result as well. The professor may want to closely monitor these discussions. Interviewing a fellow student from another culture about societal role expectations can provide valuable insights into cultural differences and perspectives. Here's how the interview might go: Interviewer: Hi [Fellow Student], I'm interested in learning more about societal role expectations in your home culture compared to the local culture here at our school. Can you share some insights with me? Fellow Student: Of course, I'd be happy to. In my home culture, there are certain traditional gender roles and expectations that influence societal dynamics. For example, there may be stronger expectations for women to prioritize family and household duties over pursuing careers, while men are expected to be the primary breadwinners. Additionally, there may be more emphasis on hierarchical relationships within families and communities. Interviewer: That's interesting. How do you perceive these societal role expectations compared to the local culture here at our school? Fellow Student: Well, I've noticed that the societal role expectations here are generally more egalitarian and flexible compared to my home culture. There seems to be greater acceptance of diverse gender identities and roles, and individuals are encouraged to pursue their own interests and career paths regardless of gender. Additionally, there's a greater emphasis on individualism and personal autonomy, whereas in my home culture, there may be more emphasis on collective harmony and fulfilling familial duties. Interviewer: Thank you for sharing your perspective. Are there any aspects of the local culture's societal role expectations that surprise you or that you find particularly different from your home culture? Fellow Student: Yes, I've been pleasantly surprised by the level of acceptance and respect for diversity in gender roles and identities here. It's refreshing to see how individuals are encouraged to express themselves authentically and pursue their passions without feeling constrained by traditional norms. However, I also recognize that there are challenges and complexities in navigating these differences, especially as someone coming from a culture with more traditional expectations. In this hypothetical interview, the interviewer might not be entirely surprised by the descriptions provided by the fellow student, especially if they have some prior knowledge or awareness of cultural differences. However, they may still find it enlightening to hear firsthand experiences and perspectives from someone with a different cultural background. The descriptions provided by the fellow student may confirm some expectations about cultural differences while also offering nuanced insights and personal reflections. Chapter Video Summary To view the video case Vans, go to the CB companion website login.cengage.com to select this video. Vans At Vans, the focus is on building strong and enduring relationships through strategic PR. The expenditure on advertising at Vans is huge, and involves print, online, TV, and outdoor ads. Vans is also engaged in sponsoring events in order to promote bonding and spread its culture. It also deals in cause marketing and athlete endorsements—activities that are perceived to strengthen the brand. Besides conventional marketing, Vans also focuses on interactive marketing and collaborations as part of its product-oriented marketing strategy. With the expansion of its product line, the focus on brand promotion has now shifted to mixing branding ads with product-driven ads. With the changing face of technology, Vans plans to do more interactive marketing in the future. Ask your students: 1. Explain how Vans’ target audience influences the company’s advertising and marketing strategies. Why, in your opinion, are these strategies necessary for the company to target its audience? Answer: Vans majorly targets people from the Generation Z demographic segment. The advertising and marketing strategies of Vans involve understanding its target market’s lifestyles and attitudes. Knowing the requirement of its target audience, Vans uses a wide range of strategies such as traditional advertising, cause marketing, and interactive marketing to influence its target audience. These strategies are necessary to build the goodwill quotient of Vans. 2. Describe the primary demographic characteristics of Vans’ target audience. How do you think these will change in the next twenty years? Answer: Vans’ target audience is Generation Z. (1) Consumers born between 1995 and 2010 (2) Approximately, 60,000,000 consumers in the United States (3) They are the first truly “global” generation (4) The most educated, diverse, and mobile group to date (5) Tend to embody the “KGOY” concept (kids growing older, younger) Answers for the second part of the question will vary. Some students may say that Generation Z may slowly evolve into the current Silent Generation, while some may feel that they might evolve into the current millennials or baby boomers. CB Scenario Video An advertisement for Discovercard contrasts two types of family vacations. The father of a family lists the activities they’ve undertaken during “learning” family vacations—watching a cow give birth, cleaning up after an accident at a nuclear plant, improving the family dynamics through role play. The kids in the family are not impressed by any of these. However, families who want a fun vacation, the ad says, use Discovercard to visit Universal Orlando Resort. 1. Briefly explain the roles and values of the family that prefers the “learning” type of family vacations. Answer: Role expectations and valuing things would vary from culture to culture and influence the decision making and purchasing responsibilities shared in a family. In the family that preferred “learning” over “fun”, parents played a major role in decision making. These roles can also be correlated to the generational influence. Probably the parents in the advertisement spent a great deal of their childhood alone due to having both parents at work. It can be seen that they focus strongly on their family and traditional family values. 2. How do families who prefer to have “fun” vacations exemplify the latest trends in consumer cultures? Answer: The families that prefer to have “fun” vacations exemplify the emerging trends such as increasing consumer affluence. The combination of working couples and lower birthrates has led to greater levels of consumer affluence. This attracts consumers toward luxuries and in turn changes their lifestyles significantly. Families with increasing consumer affluence would prefer to have more “fun” vacations. 3. Describe the advertising and marketing strategies used by Discovercard. Answer: Probably, Discovercard is targeting the Upper Class and Lower Upper Class of the society. The ad involves the concept of generational influence by differentiating families that prefer “fun” and “learning” during their vacations. Also, Discovercard considers the trend of increasing consumer affluence that results in consumers being less sensitive to price than before and are ready to spend on luxuries. Offering a free day out for families at Universal Orlando Resort if they use Discovercard, is an effective promotional and marketing strategy that attracts their target segments. Part 3 In-Text Case Answers Case 3-1 Ratemyprofessor.com: Does This Site Really Help in Choosing Classes? 1. What assumptions can you make about managerial decision making, as it relates to the Millennial generation, from the case? Answer: Millennials are more technologically savvy and connected, having access to the Internet and social networking sites, than any other demographic segment. Therefore, they use technology and social media tools to assist in data gathering for the managerial decision making process. They rely heavily on consumer feedback and opinions posted on Internet and social media sites. They are impulsive and make decisions quickly without evaluating all the data, as evidenced by Tom and Alex’s decision to ignore the dialogue text of consumer reviews and focus their attention on the numerical or value (star) ratings. They work in groups or teams to share data and make decision making a group activity. 2. Did Tom and Alex follow a logical and rational managerial decision-making process in determining their class schedules? Why or why not? Answer: Yes, they determined what constitutes “success” as a result of their decision making—and the factors by which they should measure success for their particular situations. Yes, they determined the evaluative criteria too for data gathering purposes, and their use in the decision making process. Yes, they factored in potential value-adds to the available data—the “chili pepper”. No, they ignored some very valuable data—the dialogue text of the professor ratings. 3. Identify the group influence that the information provided on RateMyProfessors.com places on Tom and Alex? Answer: Reference Groups: The ratings provided for the professors Tom and Alex on researching are from individuals who have significant relevance for Tom and Alex—(Reference Groups) students like them, at State U that have taken classes from the professors they are researching. At first, the ratings on RateMyProfessors.com could be considered an informal group for which there is no formal membership requirement. However, it is really a formal group since there are applications and processes for membership, stated rules, accepted values, and codes of conduct. Students who provide ratings on each instructor are current or former students of State U, which would make this a formal group. Entrance into the classes where Tom and Alex deem the professor to be extraordinary could be conceived to constitute an aspirational group. The current and former students who post reviews have referent and legitimate power—and to a degree, because their reviews can be embellished or made up, have coercive power as well. 4. Describe the types of interpersonal influence that the information provided on RateMyProfessors.com places on Tom and Alex? Answer: Tom and Alex are subjected to informational influence since they are relying on the information provided in the student reviews of the professors. They believe the reviews are true and unbiased since they are submitted by students they perceive to be just like them. Tom and Alex experience utilitarian influence in that they expect to receive a good class experience and good grade (rewards) from enrolling in these classes. 5. What influence does consumer ratings that fall either above or below the norm have on your managerial decision-making process? For example, when a professor (or an Amazon.com product) is rated with 3 stars, what strength do you place on the few individual reviews that rate them with 1 star or 5 stars? Answer: Instructors will get many answers revolving around 2 arguments: The 1 star and 5 star ratings were anomalies and should be disregarded since there are always some dissatisfied or exuberant customers. The 1 star and 5 star ratings are the most valuable ratings to read and scrutinize the dialogue of the review. That’s where reading what the consumer wrote is most important. Case 3-2 Collegiate Sporting Events Attendance: Reaching Students through Social Media 1. What factors will likely have the greatest impact on student attendance at a basketball for your university? Answer: Although students may state that winning and losing are the most important part of attendance, you will want to remind them of cultures created at Duke, AirForce Academy or another school you are familiar with personally. It is not only about winning or losing. It is about the participation and involvement people receive at a game that makes them feel included and that their attendance is important. Other factors could include homework, work responsibilities and other activities at school. Discuss how students weigh these options and rate their positive and negative responses for each category. 2. Describe culture. How would your university go about creating a unique culture to capture student attendance for your university? Answer: Culture is the values, ethics, rituals, traditions, material objects and services produced or valued by the members of a society. Students’ answers will vary. You may want to lead the discussion by giving them examples you have experience with personally. Relate the discussion to other sporting events as well such as football, golf, and baseball. Basketball culture includes the halftime show, games during the breaks, cheering sections, specific food to the local area, and team apparel that is specific to the area (NMSU has cowbells that students ring). 3. What are the benefits and dangers that universities face by including social media into their marketing campaign? Answer: Benefits include the capturing of other demographics, psychographics and lifestyle outside of individuals that won’t normally attend sporting events. Social media benefits also include: ease of communication spread, low cost communication for university, and reaches the students in a timely matter – via mobile devices. The benefits can quickly become dangers as everyone has access to social media and information is easily changed or lost. Additionally, administration must keep up with the newest social media fad (i.e. Pinterest) so that they are communicating through modern avenues. 4. What types of social media campaigns could a sports marketing director implement to gain student awareness? Explain your answer. Answer: Mobile apps and mobile advertising are a common way for companies to stay up with students quickly. Friending and liking sporting events could be another way for colleges to keep up with the students – as well as email and text message on events. Pinterest and Twitter may be another way for the university to communicate with students. Geographic differences sometimes play a major factor so the university should take this into consideration. 5. Not all college sports venues are the same. For example, football is played in a stadium and golf where smaller crowds follow along with the players. What challenges and benefits does this create for the university trying to increase attendance at sporting events? Answer: The venue for the organization plays a major role in attendance. Some individuals would rather be outside with their fellow peers while others would prefer to attend an event sitting down, being served drinks and food. Sometimes the attendance at games depends on the sport preference for the individual. Tapping into these unique benefits found by each individual can help sports marketing link what an individual likes at one popularly attended sport to one that is not as heavily attended. Creating the atmosphere with music, lighting, color, and aromas (food/drink) gains a prospective attendee with the experience they can take back to their family and friends. Although it is hard to please everyone during a sporting event, finding the elements that people enjoy will gain long lasting customers. Case 3-3 The Millennial Generation 1. Can the Millennial generation be considered a microculture? Answer: Yes, when we look at the extent of the millennials online social activity. They have created their own microculture via the web and have been called the “always connected” generation. 2. What type of social power, if any, does the Millennial generation hold? Answer: Referent power where consumers often imitate the behaviors and attitudes of groups as a means of identifying with the group. 3. How has social media and group influence helped to define the Millennial generation? Answer: Through mobile technology millennials have had access to social media, social networks and social networking websites, helping to make them one of the most connected generations in history. Facebook, Myspace, and Twitter are used by this generation to communicate with friends and friends. These reference groups have an impact on their consumer behavior. 4. What generation has been called the boomerang kids? Why? Answer: The Millennial Generation, who graduate from college and move back home with their parents. 5. What makes the Millennial Generation so different than generations before? Answer: Technology Savvy, this generation is described as, “jugglers” who value being both footloose and connected to their “peers” 24/7. They stay connected via technology such as facebook, IM, texting and are totally comfortable in a thumb culture that communicates online and by cell phone. (Students’ answers may vary.) Part 3 Online Case Answers Visit www.login.cengage.com to access the online case studies for CB. Does Culture Affect Sales? A Hawaiian Perspective What should Mr. Smith evaluate prior to entry into the Hawaiian market? Answer: Prior to entry into the Hawaiian market, Mr. Smith should look at the demographics, psychographics, and geographic issues that are unique to Hawaii. For the instructor, this can lead to an active discussion on how demographics comes into play in determining the age distribution, income, and birthrate in the state. The instructor should then lead the class into the understanding of the importance of psychographics. Consumer behavior is a blending of different academic disciplines such as anthropology, sociology, psychology, and history. This is a great way for the instructor to tie in the relevance of how students taking other classes can benefit from understanding the makeup of a culture as they delve into the makeup of the consumer’s decision making process. To access the online case studies for CB on www.login.cengage.com, you'll need to log in with the appropriate credentials provided by your educational institution or purchase access if you're an individual user. Once logged in, navigate to the relevant section or course materials to find the case study titled "Mr. Smith's Hawaiian Market Entry." In general, prior to entry into the Hawaiian market, Mr. Smith should evaluate several key factors to ensure the success of his business venture. These factors may include: 1. Market Research: Conduct thorough market research to understand the demand for his products or services in the Hawaiian market. This includes assessing consumer preferences, purchasing behavior, and market trends specific to Hawaii. 2. Competitive Landscape: Analyze the competitive landscape in Hawaii to identify existing competitors, their strengths and weaknesses, and any gaps in the market that Mr. Smith's business can fill. Understanding the competitive dynamics will help him position his business effectively. 3. Regulatory Environment: Familiarize himself with the regulatory environment in Hawaii, including licensing requirements, permits, zoning regulations, and any other legal considerations that may impact his business operations. 4. Cultural Considerations: Take into account the cultural nuances and preferences of the Hawaiian market. Hawaii has a unique cultural identity influenced by its indigenous Hawaiian population, diverse ethnic communities, and strong ties to the tourism industry. Tailoring products or services to resonate with local culture can enhance Mr. Smith's chances of success. 5. Logistics and Distribution: Assess logistical factors such as transportation, distribution channels, and supply chain management. Hawaii's geographical location as an island state may present logistical challenges that need to be addressed to ensure efficient operations. 6. Marketing and Branding: Develop a comprehensive marketing strategy tailored to the Hawaiian market. This may involve localized advertising campaigns, partnerships with local businesses or influencers, and culturally relevant branding initiatives. 7. Financial Analysis: Conduct a thorough financial analysis to assess the feasibility and profitability of entering the Hawaiian market. Consider factors such as startup costs, operating expenses, revenue projections, and potential return on investment. By evaluating these key factors prior to entry into the Hawaiian market, Mr. Smith can make informed decisions and develop a strategic plan to maximize the success of his business venture. Does racial diversity contribute to the consumer’s view of a product? Answer: This is a great question in getting each student in the class involved in their own ethnicity. How has their race affected the way they look at life and how they purchase a product or service? The ethnic population is shifting. The Hispanic population will make up 20% of the U.S. population and Asian Americans in the U.S. will be 24 million, 7% of the U.S. Population, and the African American population will be 45 million people or 13% of the U.S. population. (Kerin, Marketing, pg. 77) For the instructor, discussing how the population shift is taking place will determine how consumers taste will change. When a population is diverse, there will be a greater offering of products to the consumer. A discussion can also be developed evaluating how views will change in regards to the value of home life, the family structure and where the shift in population will take place. If Mr. Smith plans on marketing to all of the Hawaiian Islands, what key points should he evaluate? Answer: Mr. Smith needs to understand that each of the islands of Hawaii has a different ethnic mix. Each island has nuances that have to be understood as it relates to the ethnic groups that migrated to Hawaii. The Chinese first came to work at the sugar cane and pineapple fields, then the Japanese, Portuguese, Puerto Ricans, Koreans, and the last migrants were the Filipinos. This would be a good time to discuss how customs, norms, and values are key ingredients in evaluating how a group thinks and reacts to their environment. The instructor should also discuss how culture covers all aspects of how a person dresses, the food he/she eats, and also how the home environment comes into play when the consumer is ready to purchase a product. If Mr. Smith can develop a brand image that fits the needs of the Hawaiian market through ads, and developing a clear picture of how it fits the Hawaiian lifestyle, and is unique from his competition he has a better chance of success in the market. Besides evaluating the demographics and geographics of the Hawaiian Market, what other considerations should be evaluated? Answer: As a business coming into Hawaii, Mr. Smith should also consider the attitudes of the population as a whole. What shifts have taken place in Hawaii that affects the way products such as cabinets are viewed in Hawaii? As in the other 49 states, each state has differences in how the home is viewed. Do the homeowners in Hawaii value home ownership or is home ownership a view that the population does not want. Another consideration is the family structure. Is the island of Hawaii a state where there is extended families and children coming back to live? Have the students do research on this. This will open their eyes to how culture is unique and different in different parts of the United States. Note: Hawaii has the highest cost of living and one of the highest prices on real estate compared to the other 49 other states (U.S. Census Bureau). With the added income in each family unit, there is a strong view that the renovation in the kitchen is something that the consumer wants. Busy Being Retired Do you think that society expects retired people to stay busy? Explain and give examples. Answer: Society does seem to expect retired people to stay busy and being active is even linked with being healthy. One good example of this is to see all of the activities that are conducted at retirement homes. They even have event/activity coordinators whose job it is to oversee the activities. Do you have busy, retired people in your own family? Are these family members expected to be available to help out as needed? If so explain what you’ve seen in your own family. What is the downside, if any, of expecting retired people to be busy all of the time? Answer: Regardless of personal experience students should agree that many working parents do expect their parents (their children’s grandparents) to act as babysitters when needed, pick the kids up when they have to work late, and possibly even join them on vacations and other outings. What do you think are the marketing implications for a retired group of people that are busy all the time? Answer: Marketing Implications—good marketers will acknowledge this busy group and offer products to simplify life while still making it enjoyable. Images of solitary elderly people doing sedentary activities will not fly with this group. Look at television commercials and magazine ads that feature older consumers. What types of activities are they engaged in? Ask someone much older than you (a parent or grandparent) what types of ads they recall seeing that feature older consumers. Compare how they have changed from one period to the next. Answer: Current ads show active vibrant seniors enjoying cruises, shopping, and even dancing. They look happy and fit. Catalogs like Chico’s routinely feature fashionably chic older ladies with silver hair wearing the latest fashions. Older commercials and ads will typically show chubby grandparents, moving slowly and doing sedentary activities, if they are shown at all. On the Cutting Edge with Fiskars How did enlisting Fiskateers help the brand? Answer: As the Fiskars product development managers reviewed passionate and insightful comments from their evangelists and fans, they realized this community could be a valuable focus group. Rather than developing products in the corporate headquarters, Fiskars could incorporate the Fiskateers’ feedback for new product ideas and improvements. In addition, these brand enthusiasts and evangelists are likely to spread WOM and will convince others to pick up the hobby (and thus need to buy the scissors). How can a company like Fiskars gain the most out of a WOM program? What obstacles may have to be overcome internally? Answer: With online WOM marketing, success occurs when conversations are generated about the brand. Companies can learn from consumers freely sharing their experiences. However, businesses interested in WOM to increase brand awareness must first overcome any fears they have about surrendering one-way communication control associated with advertising or other non-interactive tools. To assure success with a WOM program, a company’s culture must willingly accept criticism and appreciate that listening to what consumers say can help the company respond better to consumer preferences and needs and stay competitive. There are reasons why consumers buy a brand, so if they choose it over other brands, their opinions are valuable for mining ideas for new products. Should negative comments arise in conversations, management can take responsive action to address consumer concerns. How do you measure WOM success? Answer: Success with WOM is measured by the conversation level it generates, proving that the company and its brands are relevant and top-of-mind with consumers. In addition, return on investment (ROI) needs to be monitored. Did the WOM campaign result in increased sales? There are many ways to measure WOM success on the web. Blogs and forums allow you to listen in on the conversation, tags provide insight on associations, and viral content sheds light on global reach. In general, with online and offline WOM, success occurs when ongoing conversations are generated about your brand and companies learn from consumers freely sharing their experiences. When brands appreciate the power of consumer engagement and rely on it to help guide decision making, there’s no better testament to the value of WOM for any organization. Why do people, in particular young women, want to be part of an online interest group such as Fiskars’ fanpage? Answer: Many women like to bond and share information with other women, especially if they share a common interest and hobby. In the case of Fiskars, they enjoy “meeting” fellow scrapbookers and sharing information with them. Scrapbooking is also a creative hobby, so it can be more enjoyable if women can share their tips and best practices with each other—motivated by being a valuable helpful resource and recognized as an “expert”, or getting ideas from others, helping others sharing ideas for projects or informing others about the best (local) stores for particular, unusual supplies. Young women in particular are part of the online generation and naturally gravitate toward the Facebook version of sharing information, which would be the Fiskars’ fanpage. Spaceport America Consumers What types of ethical issues about marketing space exploration might concern you as a consumer? How would you help NASA create ethical standards for marketing space? Explain. Answer: Ethical standards or image of ethical standards in space exploration. Ethical issues you might encounter in discussion include the commercial privatization of space. The students’ answers should correspond to what they believe the spaceport will bring to America. After someone has traveled to space and returned, why would someone want to repeat the experience? How will Spaceport America continue to thrive on customer relationships? Explain how Spaceport America could extend the satisfaction of experienced space consumers and create continuing relationships. Answer: Take a unique look at spaceport travel including memorabilia, maybe even different flight time or during lunar changes (Lunar Eclipse). Spaceport America will need to ensure that their advertising does not focus on just one travel consumption. They will need to incorporate sponsors that support different images into consumer behaviors creating a need for further space travel consumption. They could bring in more people through scholarships or company sponsored programs including “Make-A-Wish.” Creating social responsibility awareness is the chance of a lifetime experience. Go to the following website: http://www.spaceportamerica.com/. What type of customer relationship is Spaceport America targeting? What could they be doing differently to build interest for you as a consumer? Explain. Answer: They are targeting risk-taking individuals who are interested in touring space and finding new frontiers. They are also targeting businesses that will support space travel. The website seems very scientific and not average American friendly. Building customer relationships depends on creating awareness and a sense of belonging in a community. It is hard to determine how people will feel about these changes because the product, space travel, is so new. The answers will vary on how to build interest for space travel to the individual student. Some ideas could involve the incorporation of national brands that target certain consumers or the development of social media campaigns targeted to younger demographics. Love Me Do: How the Beatles Became THE BEATLES Discuss the various reference groups that have influence over Maxwell’s appreciation (or lack of appreciation as the case may be) of The Beatles and their music. Answer: First of all, Maxwell’s Granddad and Mother appear to form a primary group because they are members of his family and, as such, have a stronger set of social ties with Maxwell. There also appears to be a secondary group that Maxwell deals with, his friend Lucy and the online group of Beatles Rock Band fans, which may provide some influence. The social ties are not as strong here, and the influence may not be as strong as Maxwell would find with the primary group. This secondary group may also comprise an informal group as there may not be any formal application or membership requirements. Additionally, the online community may in fact comprise an aspirational group if Maxwell desires to “join” the group. Discuss the importance of word-of-mouth marketing as part of what has made The Beatles into THE BEATLES. Answer: Word-of-mouth (WOM) marketing is the transmission of information from consumer to consumer. In this case, the WOM is intergenerational. Granddad transmitted information about The Beatles to his daughter who has in turn, along with Granddad, transmitted that information to Maxwell. For Maxwell, Granddad may be an opinion leader because of influence over others. This organic form of WOM quite probably mirrors quite a bit of reality in terms of passing along music from generation to generation. It is also possible that Apple studios and the makers of Rock Band have attempted to amplify this word-of-mouth through online gaming communities, discussion sites, etc. What part might culture have to play in the generational transcendence of The Beatles and their music? Answer: Culture gives meaning to objects, defining what the object means to the people within that culture. The meaning of The Beatles was developed during the turbulent sixties where they became a beacon of love and hope against a turbulent background of activism, war, and social unrest. Culture also gives meaning to activities. When one listens to The Beatles, they are engaging in consuming that meaning as well as consuming the meaning of the activity itself. In this sense, how one listens to The Beatles is as important as listening to The Beatles. Furthermore, one can consume The Beatles in many ways other than listening to The Beatles, further turning them into THE BEATLES. Finally, culture facilitates communication between strangers, between friends, and even between family members from different generations, paving the way for the meaning of The Beatles to transcend the sixties generation and move into even newer generations. Lucy plans for the two to join an online community focused on The Beatles: Rock Band. How might this constitute a subculture? Answer: Like a culture, microculture consists of a group of people who share similar values and tastes as well as ways of thinking and behaviors. The microculture, however, is encapsulated within the larger culture of which it is a part. The Beatles: Rock Band community fits such a description though it is possible that it actually spans different national cultures. Even so, it is a smaller part of the gaming culture that permeates much of popular culture. Additionally, its members have roles they are expected to fulfill. This is also, most likely, a street microculture in that it would not appear that ethnicity, religion, gender, etc. have any bearing on the formation of this particular microculture. Instead, street microcultures can grow out of any consumer activity that brings people together to engage in a common activity. Despite The Beatles’ popularity, why is it that some consumers are turned off by their music? Answer: Any number of reasons may lead a consumer to be turned off by the music of The Beatles. For instance, individuals who are susceptible to interpersonal influence may not like The Beatles because a good friend or an aspirational group may not like The Beatles. These reference groups may not carry the same “love and peace” values expressed by the group and may instead prefer a more aggressive and militaristic set of values as perpetuated in hard core punk or speed metal. Additionally, the individual may belong to a different microculture that appreciates country music or some other genre of music other than sixties pop rock. As such, that individual may not have even encountered The Beatles as a consumption object. Ultimately, the reason a person is turned off (or turned on, for that matter) by The Beatles’ music may have a lot to do with the group or culture that the individual belongs to in addition to their appreciation of the music by itself. Consumer Culture Case According to the text, consumer culture is defined as the commonly held societal beliefs that define what is socially gratifying. How does this case defy commonly held societal beliefs in American consumer culture? What CSV dimensions are most involved? Answer: Al Pratt is single and lives alone, which plays into the CSV dimension of individualism-collectivism. In a society that prizes individualism, American culture actually rewards couplehood by making it far easier for married individuals to navigate the marketplace, particularly as it pertains to behaviors that are commonly associated with families and/or groups of people, such as grocery shopping. Secondly, Al Pratt is a man who is involved in grocery shopping, which engages the dimension of masculinity-femininity. Typically, men are viewed as “fill-in” shoppers within American culture who simply add to the shopping performed by their wives or significant others. In short, the typical grocery shopper is often viewed as “Mom.” Al, on the other hand, is the primary shopper in his household and must navigate a grocery store that is tailored both for women and for families. Imagine yourself as the store manager of the grocery store where Al is shopping. How might you address his needs and the needs of the growing numbers of singles without compromising the needs of the families that also shop at your store? Answer: As the store manager, you could offer rain checks on buy-one-get-one-free coupons that would allow the consumer to buy an item now and then get the free item at a later date and time. Secondly, you could create an aisle in the store that is tailored toward singles, providing smaller, portion-sized items in one location so that they do not necessarily have to wander through every aisle. This type of aisle arrangement would make it easier for people who wish to avoid wasting time and effort in the grocery store. In the deli section, you could make sure that more single-serving preparations are available for single people who live alone. You could suggest to certain manufacturers that smaller portion sizes might be a way to capture this emerging market. You could even host a singles cooking/shopping event where single people who live alone can come together, share the expenses of purchasing ingredients, and either divvy up those ingredients amongst themselves or cook up meals in the store and share the finished meals. What problems directly related to socialization and culture do you see within this case? Answer: Most of us learn how to shop for groceries in households that have more than one person in them, so we learn how to buy for families. Single people may have to unlearn how to shop in the grocery store because buying for families might produce a great deal more waste than they are willing to deal with. This raises the following question: How does someone learn to shop for only one person? Furthermore, because American culture assumes that women are the primary grocery shoppers, how does Al learn how to shop when he most likely was not taught how to shop by his mother? What other emerging markets can you think of that may need to be addressed by grocery stores? How might they best address these markets? Answer: There are many number of emerging markets that grocery chains might face. Among them is the variety of different household types that dot the social landscape in America including single-father families, commuter households, nonfamily households, and other households that do not follow the traditional notion of the nuclear family of mom, dad, and a few kids. Each of these types may have different needs in terms of serving needs and even food needs. Additionally, grocers have ample opportunities to address various ethnic and national markets as well. With the globalization of the market, grocers may find that they are in a position to distinguish themselves in a variety of ways. For example, the grocery store may create individual “boutiques” that address the needs of various cultural groups. Instead of creating a single aisle that contains all of the ethnic foods in one basic section, why not try creating a boutique for each of the prominent cultural groups in the area? For instance, there would be an Asian boutique that not only contained items considered to be Asian, but also contained basic staples important to that cultural group, such as rice and various vegetables. The same boutiques could be created for other cultural groups as well, essentially dividing the grocery store into various mini-stores that cater to the needs of a larger percentage of the population. The Newton Case Why did a brand community develop around the Newton? Answer: Undoubtedly, the Newton’s ties to Apple greatly influenced the resulting brand community. When the Newton was introduced, Apple already had a strong brand community for the Macintosh in place so that the Newton was an extension of an already thriving brand. While the Newton remained with Apple, it was able to develop a relatively small but highly loyal customer base, which likely consisted largely of existing Apple fans. Due to this customer base being very technologically savvy and to Apple’s initial desire to promote the Newton, it was a natural move for devoted Newton users to start conversing with one another in various online formats, thus giving birth to the brand community. Why did the Newton brand community thrive after Apple abandoned the Newton? Answer: Because Newton fans were already communicating with one another online before Apple dropped the Newton, they were easily capable of continuing to do so afterward. The feeling among many members that the community was threatened by the discontinuation of the Newton seemed to strengthen their commitment to the Newton and its community. Rumors of a conspiracy involving Microsoft’s Bill Gates and Steve Jobs also supported this commitment by fostering the sentiment that the Newton was David in a battle with Goliath. The Newton’s discontinuation also appeared to make existing users feel that they were part of a special group with its own set of rituals and traditions for which they held sole responsibility. Could the Newton brand community have existed without the Internet? Why or why not? Answer: It is highly doubtful that the Newton brand community could have existed without the Internet. Even though the community seemed large, most individuals were probably scattered across the United States and other parts of the world. Contact with a significant number of other Newton fans would not have been possible without the Internet. This development has widespread implications for all brand communities. The critical mass of consumers needed to develop an online brand community is almost certainly much smaller than that needed for a physical brand community due to the constraint of communication in the latter. This means that a group of relatively few brand devotees spread across many geographic areas may be sufficient to generate a brand community. Part 3 Video Case To view the Part 3 video case, go to the CB companion website login.cengage.com to select this video. Fantasy Inn Time: This video is between 3–5 minutes long. Concepts Illustrated in the Video Consumer culture Subculture Cultural norms Tradition Etiquette/manners Reference groups Synopsis Vanessa, a Junior Account Executive is scouting out locations to hold an upcoming event. She meets with Ivan, the General Manager of the Fantasy Inn. Vanessa is coordinating an upcoming event with people from around the world. Cultural sensitivity is a prime concern for her event. She’ll be serving foods that are both vegan and halal along with other dietary needs. She’s asked Ivan about alcohol and if the bar can be closed off—not to offend anyone. Ivan tries to convince Vanessa that he’s been working on similar events for the past twelve years and the Inn has experience with these types of needs. He’ll require a $1,500 deposit to hold the room for her. Vanessa would like to meet with the Chef first to ease her nerves. Teaching Objectives for the Video Case Understand how culture provides the true meaning of objects and activities Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions Critical Thinking Questions—Suggested Answers 1. If you were Vanessa, what would you do if faced with a similar situation? Where could you get information on different cultures? Answer: If I were Vanessa and faced with a similar situation, where I needed to navigate cultural differences or understand various cultural perspectives, I would take several steps: 1. Research and Education: I would start by conducting research on the cultures I'm interacting with or seeking to understand. This could involve reading books, articles, or academic papers on cultural anthropology, sociology, or intercultural communication. Online resources, cultural sensitivity training programs, and documentaries could also provide valuable insights into different cultural practices, norms, and values. 2. Seek Guidance: I would reach out to individuals or organizations with expertise in cross-cultural communication and cultural diversity. This could include cultural consultants, intercultural trainers, or members of multicultural communities who can offer firsthand insights and guidance on navigating cultural differences effectively. 3. Engage in Dialogue: I would initiate open and respectful conversations with individuals from diverse cultural backgrounds to learn about their experiences, perspectives, and cultural practices. Building relationships based on curiosity, empathy, and mutual respect can provide invaluable opportunities for cross-cultural learning and understanding. 4. Utilize Online Resources: There are numerous online platforms and resources dedicated to promoting cultural awareness and understanding. Websites such as CultureGrams, Hofstede Insights, and the Cultural Atlas offer comprehensive information on various cultures, including social norms, communication styles, and cultural values. 5. Participate in Cultural Events and Activities: Actively engaging in cultural events, festivals, and activities can provide immersive experiences and firsthand exposure to different cultural traditions, customs, and perspectives. Attending multicultural workshops, language classes, or community gatherings can also foster cross-cultural awareness and appreciation. By taking these proactive steps to educate myself and engage with diverse cultural perspectives, I would be better equipped to navigate intercultural interactions and foster meaningful connections across cultural boundaries. 2. Explain the concept of consumer culture. How does it impact a business dinner in the United States? Answer: Consumer culture can be thought of as commonly held societal beliefs that define what is socially gratifying. Culture ultimately determines what consumption behaviors are acceptable. This would be an important point when serving guests from around the world. If hosting a dinner with Muslims, the American business would want to avoid serving pork and alcohol. 3. What would the expected cultural norm be for the upcoming business dinner that Vanessa’s company is hosting? Answer: The Fantasy Inn would need to determine if males and females could serve the meal. Also, the location of the bar area needs to be taken into consideration and also the mixing of the foods. Vegan and Halal should not be mixed together. Ultimately, Vanessa needs to give the Fantasy Inn the parameters for the dinner and what countries will be represented. Solution Manual for CB Consumer Behaviour Barry J. Babin, Eric G. Harris 9781305403222, 9781305577244
