Preview Extract
Chapter 10 Microcultures What Do You Think Polling Question The microcultures I belong to greatly influence the value I receive from products. _____ Strongly Disagree _____ Disagree _____ Somewhat Disagree _____ Neither Agree nor Disagree _____ Somewhat Agree _____ Agree _____Strongly Agree Have students access Course Mate at www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the “What Others Have Thought” box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question so far. Learning Objectives After studying this chapter, the student should be able to: 10-1 Apply the concept of microculture as it influences consumer behavior. 10-2 Know the major U.S. microcultural groups. 10-3 Realize that microculture is not a uniquely American phenomenon. 10-4 Perform a demographic analysis. 10-5 Identify major cultural and demographic trends. Lecture Example Struggling to find its way out of the recession, the hotel industry has set its eyes on a new patron. This group, popularly known as the Millennials, are those in their 20s and mid 30s. Obsessed with social media and technology, the Generation Y, as they are sometimes called, are avid travelers. Besides comfort, they look for innovative services and are likely to spend more on designer hotels. Hoteliers have been prompt in seizing this new trend as a valuable opportunity. Wi-Fi access, power consoles, and airport like check-in kiosks are fast becoming regular features of the modern hotel. As some industry experts claim, this trend is no passing fad, but an enduring change. Source: “The Millennials Check In,” The New York Times, March12, 2012, http://www.nytimes.com/2012/03/13/business/young-travelers-drive-changes-in-hotel-industry.html?_r=1&pagewanted=all Lecture Outline with PowerPoint® Slides LO 10-1: Apply the concept of microculture as it influences consumer behavior. [Instructor PPT Slide 3] I. Microculture and Consumer Behavior The chapter begins with an example explaining how a microclimate exists within a climate and is correlated to the concept of microculture. A microculture is indeed a culture, only smaller. A microculture is defined as a group of people who share similar values and tastes that are subsumed within a larger culture. The term microculture is used to portray the idea that the group is smaller but in no way less significant in terms of the potential influence on consumer behavior. [Instructor PPT Slides 4, 5] A. Culture is Hierarchical Culture is a universal phenomenon. It is everywhere and ultimately explains the habits and idiosyncrasies of all groups of consumers. Culture is hierarchical—a consumer belongs to one large, overall culture and then to many smaller cultural groups—microcultures—existing and interlinking within the overall culture. Exhibit 10.1 illustrates a cultural hierarchy. Each microculture brings with it role expectations for its members. The role provides a signal as to the behaviors that one should perform to truly belong to the group; or, in other words, what it takes to be an authentic member of the group. When a consumer faces a situation involving conflicting expectations based on cultural expectations, he is experiencing role conflict. B. Microcultural Roles and Value Microculture membership changes the value of things. Consumers often choose membership in microcultures in an effort to stand out or define themselves from the crowd. This phenomenon is known as divergence. Q: Define role conflict and divergence. A: When a consumer faces a situation involving conflicting expectations based on cultural expectations, he or she experiences role conflict. Divergence is a phenomenon that occurs when consumers choose membership in microcultures in an effort to stand out or define themselves from the crowd. LO 10-2: Know the major U.S. Microcultural groups. II. Major U.S. Microcultures Marketers can divide the U.S. population into consumer groups along a number of dimensions relative to market segmentation. These groupings are particularly effective when microcultures are involved because the consumers within these groups likely have very similar preferences. There are many types of microcultures in the United States. These include regional, sex role, age-based, generational, religious, ethnic, income/social class, and street microcultures. [Instructor PPT Slides 6, 7] A. Regional Microculture In 1981, Joel Garreau published the book The Nine Nations of North America. The book identifies nine geographical regions that supposedly share similar value profiles and thus contain consumers with similar preferences. However, they don’t neatly fit with conventional regional distinctions. Exhibit 10.2 illustrates this concept. One area in the United States that receives significant attention is the “Border-land” region, a region that was not included in the original Nine Nations approach. The Borderland covers the southwestern U.S. states that share a border with Mexico. Exhibit 10.3 presents differences and preferences among U.S. consumers by region. B. Sex-Roles and Microculture Sex roles refer to the societal expectations for men and women among members of a cultural group. Sex roles are ubiquitous in society, and inconsistency with them be a source of sanctions. Societal Role Expectations Even in Western cultures, certain responsibilities such as child care and household cleaning are unevenly spread among cultures. Marketers need to be aware of the relative sex roles within societies. Men and women may share purchasing responsibilities differently from culture to culture. Male and Female Segments A great deal of marketing communication is directed toward either a male or a female market segment. Although role expectations associate certain types of purchases with men or women, marketers sometimes reach out to the opposite sex. Marketers need to keep in mind that women and men do not make consumer decisions in the same way. Perhaps the biggest difference is in the way men and women process information. Relative to women, men tend to be more heuristic/intuitive in their processing. Cognitive structuring is a term that refers to the reliance on schema-based heuristics in making decisions. In contrast, women tend to process information in a more piecemeal fashion. C. Age-Based Microculture The term age-based microculture describes the concept that people of the same age end up sharing many of the same values and develop similar consumer preferences. Perhaps no age-based group receives more attention than teens. Nearly 21 million Americans are between 15 and 19 years of age. Exhibit 10.4 lists the similarities and differences among teen consumers. World Teen Culture? The Internet facilitates communication among consumers around the world, contributing to what some believe is a more universally similar world teen culture. Although teens around the world may find value in many of the same types of music and clothing, research suggests that the cultural values of their home nation remain relatively distinct from nation to nation, particularly concerning personal products. Young consumers from different cultures around the world do appear to have similar tastes in apparel. Q: Does the concept of a world teen culture benefit marketers? Justify your answer. A: Yes. The concept of a world teen culture does benefit marketers. With respect to food and clothing, marketers can notice that most of the teens from Eastern cultures are influenced by the hype of the Western media. Social media can be effectively used to promote varieties of foods and apparels to all the teens across the world. D. Generation Microculture Age-based groups can be distinguished from generational groups. Consumers grow out of age groups. People who are in the same generation still belong to the same cohort. A cohort is a group of people who have lived the same major experiences in their lives, and the experiences end up shaping their core values. Life experiences have many different effects on a cohort. Greatest Generation The term “greatest generation” refers to American consumers who were young adults during World War II. These consumers were born prior to 1928. Their lives and values are shaped very much by World War II and their post-war experiences. These consumers tend to be more thrifty than other consumers and thus are highly price conscious. Silent Generation Silent generation consumers were born between 1928 and 1945. These consumers were greatly impacted by the Great Depression and World War II and, like their predecessors, are known for civic duty, conformity, and responsibility. They tend to be frugal and follow largely utilitarian motivations with their purchases. Baby Boomers The Baby Boomers were born between 1946 and 1964. Boomers were born during a time in the United States that was marked by optimism and relative economic security. Boomers represent a major force in the consumer culture, and they are a substantial force in the economy. It should not be surprising, therefore, that they receive significant marketing attention. Many Boomers have saved significant sums of money for retirement and plan to enjoy good times well into their elderly years. Boomers, by and large, have a huge amount of spending power relative to other generations. Generation X Generation X consumers were born between 1965 and 1980. They have also been referred to as “latchkey” kids to signify the idea that many of these consumers spent a great deal of time alone due to having both parents at work. Many Generation Xers also came from divorced households, which may explain why a good number of these consumers today focus strongly on family and traditional values. Although marketers often viewed Generation Xers as slackers, many of these consumers have become successful business people and community leaders. Millennials Millennials were born between 1981 and 1995. This group was originally referred to as Generation Y. A lot of research attention has been focused on this group not only because of its sheer size, but also because its members are so different from other cohorts. Younger consumers in this group tend to be so technologically savvy that they have been referred to as the first “always connected” generation, meaning that they are constantly in touch with other consumers through various technologies. Generation Z This group follows the Millennials and represents young consumers born between 1995 and 2010. They will also be the first truly “global” generation, due to racial and cultural diversity, increased population mobility and migration, and comfort with mobile technologies. Generational Influence and Marketing Generations provide a good basis for marketing segments because a consumer’s age identifies his or her generation. Not every person that is age 21 right now matches the tastes of all the other Millennial generation consumers, but the largest number of people within a generation are similar to some extent. Q: Discuss how generations have influenced education and learning styles. A: Answers will vary. Students can discuss how the traditional learning methods in schools and colleges have evolved over time. Latest methods like distance education and e-learning can be discussed. E. Religious Microculture Religion represents one of the key institutions that shape consumer culture. Not surprisingly, then, religious affiliation provides a basis for microcultures within national or regional cultures. Exhibit 10.5 illustrates the proportion of consumers belonging to the main religions in the United States, other diverse nations, and the world at large. Budget allocations also are associated with religion. Religion also affects consumers’ diets and the clothing they wear. Additionally, various religions have rules and customs about public displays of the body. Stigmatization means that the consumers are marked in some way that indicates their place in society. F. Ethnic Microculture The United States is sometimes referred to as a melting pot. The analogy tries to make the point that America is a land filled with people from a wide range of ethnic backgrounds. Thus, even for multigenerational Americans, consumption is affected by heritage. Consumption in the United States, however, remains tied to ethnicity to varying extents. Exhibit 10.6 breaks down the major ethnic groups in the United States. Hispanic Culture Hispanics are expected to account for nearly 18% of the U.S. population by 2015 and nearly 20% by 2020. The term bicultural is used to describe immigrants as they face decisions and form preferences based on their old or new cultures. Bicultural consumers begin to express lower ethnocentrism than their counterparts in the native country and thus are more open to products from their new country. African-American Culture The African-American market segment represents about 13% of the total U.S. market. One of the most important trends among African-American consumers is their growing affluence. The number of these Americans in professional occupations has multiplied many times over in the past few decades, as has the number of African-American owned businesses. Asian Culture This segment represents between four and five percent of the U.S. population. Asian-American consumers are very favorable toward luxury brands, tend to own their homes, and retain a preference for Asian foods. Asian Americans also are concentrated in large numbers in a few areas of the United States. The fact that they are concentrated in specific locations in the United States facilitates marketers’ ability to effectively reach this market. Q: What does bicultural mean? Discuss its relation with ethnocentrism and consumption patterns. A: Bicultural is a term used to describe immigrants as they face decisions and form preferences based on their old or new cultures. Bicultural consumers begin to express lower ethnocentrism than their counterparts in the native country and thus are more open to products from their new country. G. Income and Social Class Microculture Income level and social class are closely related, but distinct, concepts. Income level is truly a demographic issue, based on the amount of monetary resources a person receives. Social class is defined as a culturally defined group to which a consumer belongs based on resources like prestige, income, occupation, and education. The term habitus refers to mental and cognitive structures through which individuals perceive the world based largely on their standing in a social class. Social Class in the United States Six major social classes have been identified in the United States. These include Upper Class, Lower Upper Class, Upper Middle Class, Lower Middle Class, Upper Lower Class, and Lower Lower Class. Some consumers are born into a social class (termed an ascribed status) while others work their way into a class (termed an achieved status). Two issues regarding social class illustrate the difficulties with considering class in consumer behavior. First, the facts that not all consumers strive to move up the social ladder, and that not every consumer in a social class will act similarly, highlight the limitations of using the concept in consumer research. A simple example of the influence of social class on behavior is the finding that most marriages comprise people from similar classes. In sociology, this is referred to as homogamy, or assortative mating. Social Stratification The concept of social stratification underscores the role of social class in society. Social stratification can be defined as the division of society into classes that have unequal access to scarce and valuable resources. Luxury items and status symbols are enjoyed by these groups, while the bare essentials are relegated to the Lower Lower Class. Social Class Worldwide Social class obviously exists throughout the world. China with its enormous population, exhibits a range of social classes. Japan on the other hand, has witnessed a gradual widening of gap between the haves and the have-nots, along with a generally shrinking middle class. H. Street Microculture Microcultures can grow around any number of phenomena, not just around differences in ethnicity, income/social class, generation, region, or religion. Sports can also provide a basis for microculture. Microcultures can even grow out of gaming experiences, virtual communities, and practically any other consumer activity that brings consumers together with something in common together. The more easily microcultures can be reached, either physically or with various media, the better marketers can connect with them through value added communications and products. LO 10-3: Realize that microculture is not a unique American phenomenon. [Instructor PPT Slide 8] III. Microculture Is Not Uniquely American Microculture membership affects the value of things. It is important to remember that microcultures are truly global phenomena and not confined to any one region or country. A. Microcultures Around the World It is often thought that foreign countries have a single stereotype. Yet other countries also have many bases around which microcultures are formed. B. Street Microcultures Worldwide Many street microcultures, including music, sports, and fashion, exist around the world as well. Firms need to account for the pervasiveness of microcultures when marketing products in virtually any part of the world. LO 10-4: Perform a demographic analysis. [Instructor PPT Slides 9–11] IV. Demographic Analysis Demographics refer to observable, statistical aspects of populations such as age, gender, or income. Demographic variables are closely related to microculture and help to describe microcultures. A demographic analysis develops a profile of a consumer group based on their demographics. These analyses often include geodemographic approaches, because marketers find it advantageous to know where targeted consumers live. These analyses become important components of a demographic segmentation strategy. A. U.S. Census Data One very important source for performing a demographic analysis is the U.S. Census Bureau’s website (www.census.gov). Exhibit 10.7 shows the interface from this website. The website provides a real-time estimate of the U.S. population. Exhibit 10.8 shows the demographic profile for the state of Missouri. Q: Explain how a demographic analysis helps marketers to target specific customers. A: A demographic analysis develops a profile of a consumer group based on their demographic variables. Marketers can analyze target segments based on some specific traits. The analysis can be used to make positive impressions on particular segments. For example, a demographic trait like gender can be considered while marketing health and beauty products. LO 10-5: Identify major cultural and demographic trends. [Instructor PPT Slides 12–16] V. Major Cultural and Demographic Trends As with other consumer behavior topics, it is not enough to simply understand cultural and demographic factors as they currently exist. These factors evolve over time. For this reason, it is important to identify the emerging trends that influence behavior. A. Trends Affecting Consumer Behavior While there are a number of trends, four notable trends that are relevant to consumer researchers and managers deserve careful attention. Declining Birthrates One of the biggest trends in Western countries is the declining birthrate. If this trend continues, countries with declining birth rates will experience a declining populations. One particularly important trend in China, thought to be the result of the country’s “one child” policy, is a relative imbalance in the number of men compared to women. Exhibit 10.9 displays select birthrates. Increasing Consumer Affluence The combination of working couples and lower birth rates has led to greater levels of consumer affluence, particularly in the United States. To the contrary, poverty remains a major problem in many nations, as evidenced by the approximately 4 billion “bottom of the pyramid” consumers. Increasing Life Expectancy and the Aging Consumer The right pane of Exhibit 10.9 displays the life expectancy for citizens of a number of different countries. The growth trends in population, along with birthrate and life expectancy trends, all affect consumer culture in many ways. One major issue in the United States today is the aging Baby Boomer population. This segment of the consumer population is expected to dramatically affect business practices for many years to come. Increasing Cultural Diversity One way in which cultures become more diverse is through immigration and the growth of microcultures. Q: In what way are the emerging trends of working couples and lower birthrates interrelated? A: The combination of working couples and lower birthrates has led to greater levels of consumer affluence. This increase in consumer affluence increases consumers’ standard of living and thus enhances life expectancy. Video material for this chapter is starting on page 19 of the IM Instructor Manual for CB Consumer Behaviour Barry J. Babin, Eric G. Harris 9781305403222, 9781305577244
