CH-12 Consumer Diversity – Consumer Behavior : Book Guide

Chapter 12 Consumer Diversity CHAPTER SUMMARY Six major aspects of consumer diversity have important effects on consumer behavior: age; gender; sexual orientation; and regional, ethnic, and religious differences. Age is a key factor because people of the same age have similar life experiences, needs, symbols, and memories that may lead to similar consumption patterns. Teens have significant spending power and influence family purchasing, as well. Generation Y consists of consumers in their twenties. Consumers who make up Generation X were born between 1965 and 1976. Baby boomers, born 1946 to 1964, are the largest age category in the United States. Seniors in the 50 and older segment can be divided into two groups: the young again and the gray market, neither of which wants to be thought of as old. Gender differences also affect consumer behavior. Sex roles are changing as more women delay marriage, become financially independent, and build careers; men are learning to become more sensitive and caring. Men and women also differ in terms of consumer traits, information-processing styles, decision-making styles, and consumption patterns. In addition, more marketers are using sexual orientation to target gay and lesbian consumers for various goods and services. Consumption patterns may differ in various regions of the United States and the world, leading some marketers to tailor strategies specifically to these regions. Clustering helps marketers describe consumers in different regions based on similar demographic and consumption characteristics rather than by geographic location only. The three largest U.S. ethnic groups are African Americans, Hispanic Americans, and Asian Americans. Changing population trends require marketers to target carefully and understand the consumer behavior of each group. Many marketers are taking a multicultural approach, trying to appeal to several subcultures instead of just one. Marketers who want to sell in other countries must also be familiar with important ethnic groups in other areas. Finally, religious values and customs can influence consumer behavior and form the basis of marketing strategies. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Explain how the consumer’s age affects acquisition, consumption, and disposition behavior, and why marketers need to consider age influences when planning marketing activities. 2. Describe how gender and sexual orientation each affect consumer behavior and how companies can create more effective marketing by understanding these two influences. 3. Discuss how regional, ethnic, and religious influences can affect consumer behavior and why marketers must consider such influences when targeting specific groups. CHAPTER OUTLINE I. How Age Affects Consumer Behavior A. Age Trends in the United States 1. Median age of U.S. consumers is at an all-time high of 37. 2. The text covers 4 groups: teens/millennial/Gen Y, Gen X, baby boomers, and seniors. B. Teens and Millennials (Generation Y) 1. The transition from childhood to adulthood makes the teen years a time of immense change. 2. Teens have considerable influence in household decision-making and enjoy a great deal of financial independence. High value on price and convenience. 3. More similar to teenage counterparts in other parts of the world sharing many similar characteristics and attitudes to those in other countries 4. Generation Y is composed of teens and 20-something consumers born from 1980 through 1994. a) Generation Y is media and tech savvy. 5. Marketing Implications a) Very large and fast-growing market segment; they are media and tech-savvy. b) Brand loyalties started in teen years may be carried into adulthood. c) Brands can be positioned as helpful for dealing with adolescent pressures. d) Advertising messages often incorporate symbols, issues, and language to which teens can relate. e) Other types of promotion include traditional and social media. f) Other ways to reach Generation Y is through recreation or special events. C. Generation X 1. Generation X is composed of those who were born between 1965 and 1979 (49 million are in this group). 2. While some feeling of angst among the underachievers of this generation, many have begun building careers, having families and buying homes. 3. Believe they will not match parents’ level of success 4. Boomerang kids are the Xers who live at home and have more discretionary income. 5. Marketing Implications a) High spending power b) Gen Xers tend to be cynical about obvious marketing techniques c) Can be reached through the Internet as Xers watch less television d) Targeted sales promotions can be effective. D. Boomers 1. Largest demographic group in the United States with 78 million members 2. Born between 1946 and 1964 3. Created a revolution in social attitudes, music, fashion, and politics 4. Sub segments of consumers exist within this very large and diverse group. a) The oldest and youngest groups are the most different as they have less in common. 5. Marketing Implications a) As Baby Boomers have so much buying power, they are the target for many products including cars, housing, travel, entertainment, recreational equipment, and motor homes. b) Baby Boomers are heavy consumers of financial services. c) Some companies have profited by developing special products for aging baby boomers. E. Seniors 1. The gray market consists of consumers over 65. 2. Women outnumber men in this age category as women tend to live longer. 3. Information-processing skills tend to decrease over time; therefore, mature consumers are less likely to seek out information. 4. Have difficulty making complex decisions and processing large amounts of information 5. Marketing Implications a) Seniors represent a critical and growing market for health-related and medical products and services. b) Marketers can target boomers through the use of media geared to this group’s interests, including oldies rock and roll, radio and TV programs, and activity-specific publications and TV shows. c) Models in ads for seniors should represent active, contributing members of society. d) Retailers can design their stores to provide a more age-friendly shopping environment for both boomers and seniors. II. How Gender and Sexual Orientation Affect Consumer Behavior A. Sex Roles 1. In most cultures, men and women are expected to behave in-line with sex roles. 2. Sex roles in the U.S. are changing. a) Traditionally men were guided by agentic goals and women were guided by communal goals b) More women are working and delaying both marriage and having children. c) More men are helping with the household and raising children. 3. Traditional sex roles are also changing in conservative, male-dominated countries. B. Differences in Acquisition and Consumption Behaviors 1. Women are more likely to engage in thorough examination of a message and make extended decisions based on product attributes. 2. Males are selective information processors. 3. Males are more sensitive to personally relevant information. 4. Women pay attention to personally relevant information as well as information relevant to others. 5. Women are more likely to engage in compensatory eating—making up for deficiencies such as lack of social contact or depression by eating. C. Marketing Implications 1. Many products are developed to meet gender-specific needs. 2. Many products become less sex-typed as sex roles evolve. 3. Marketers often target a particular gender. 4. Marketers are increasingly using sexual orientation to target gay and lesbian consumers. 5. Sex differences still exist in media patterns. B. Gender and Sexual Orientation 1. Gender refers to a biological state (male or female). 2. Sexual orientation reflects a person’s preference toward certain gender behaviors. 3. Masculine individuals (either male or female) tend to display male-oriented traits, while feminine individuals tend to display female-oriented traits. 4. Androgynous means having both male and female traits. III. How Regional Influences Affect Consumer Behavior A. Regions Within the United States 1. Consumers in each region emphasize different values and lifestyles. 2. Identifying regions based on clustering techniques a) Areas placed in clusters based on similarities in demographic and consumption characteristics b) Information is summarized and grouped using sophisticated statistical techniques. c) The major types of neighborhoods are derived from systems such as Mosaic (from Experian) and PRIZM (from Nielsen Claritas). d) Clustering systems have been individually developed for many countries. 3. Marketing Implications a) A product, service, or communication can be developed to appeal to different regions of the country. b) Different parts of the country will respond better to certain types of messages than other parts. B. Regions Across the World 1. The area of the world in which a consumer resides can influence consumption patterns. 2. Cultural influences affect consumer behaviors in three main dimensions a) Individualism versus collectivism b) Horizontal versus vertical orientation c) Masculine versus feminine 3. Consumers in different countries will spend their income differently. 4. Tastes will vary between countries and within specific regions of the world. 5. Marketing Implications a) Global differences in consumer behavior will sometimes lead to alterations in marketing strategy in order to appeal to specific regions and countries. IV. How Ethnic Influences Affect Consumer Behavior A. Through the process of acculturation, members of a subculture learn to adapt to their host country. B. Ethnic Groups Within the United States 1. Population trends are greatly changing the demographic profile of the country. a) Immigration and population trends are leading to greater ethnic diversity in the U.S.. b) Multicultural marketing is the use of strategies that simultaneously appeal to a variety of cultures. C. Hispanic American Consumers 1. Largest and most diverse ethnic group in the U.S., and fast-growing 2. Levels of acculturation a) Acculturated (1). Speak mostly English and have a high level of assimilation b) Bicultural (2). Can function in English or Spanish c) Traditional (3). Speak mostly Spanish 3. Degree of the intensity of ethnic identification affects consumption patterns. a) Consumption patterns influenced by the consumer’s level of acculturation and intensity of ethnic identification b) Among Hispanics, stronger ethnic identification leads to a higher level of husband-dominant decisions. 4. Marketing Implications a) The size, growth rate, and characteristics of the Hispanic subculture lead to marketing opportunities. b) Product Development and Distribution (1). Marketers are developing specific products to meet the needs and preferences of Hispanic customers, such as cosmetics for darker skins. (2). Being more tailored toward the needs of Hispanic Americans with Spanish-style markets, and a broad selection of Hispanic foods and products. c) Media and Communications (1). Since Hispanics tend to be concentrated in urban areas and share a common language, they can be easily targeted through the use of Spanish-language media; traditional newspapers now print Spanish editions. (2). Major companies are increasing their budgets for Hispanic campaigns. (3). The accommodation theory predicts that the more effort a source puts into communicating with a group, the greater the reciprocation by the group and the more positive its feelings. D. African American Consumers 1. Represents 13 percent of the U.S. population 2. African Americans represent a large and diverse group consisting of many sub segments across different levels of income and education, occupations, and regions. 3. Marketing Implications a) Marketers address African American consumers’ specific needs and interests b) Product Development and Distribution (1). Specific cosmetic and clothing lines are being developed for African-American consumers. (2). Marketers can adjust distribution strategies to appeal to African Americans. c) Media and Communication (1). African Americans have more positive attitudes toward ads. (2). Marketers use multiple media that reach this segment specifically. (3). Messages should take into account the unique values and expectations of African Americans. (4). Marketers must also be aware of the effect that African American models and actors in ads may have on consumers outside the targeted segment. A. Asian American Consumers 1. Characteristics a. Very diverse group originating from more than 29 countries. b) Tend to place strong emphasis on family, tradition, and cooperation c) Asian Americans are likely to shop frequently, pay for brand names, and check prices on the Internet. d) Consumers in this group tend to save money, be highly educated, have high computer literacy, and hold a higher percentage of professional and managerial jobs than the general U.S. population. 2. Marketing Implications a. Asian Americans have considerable economic power. b. Product Development and Distribution (1). Marketers are increasingly offering products designed for Asian Americans. c. Media and Communication (1). Through native-language media (2). Respond well to subtle messages that focus on tradition, the family, and cooperation, as well as Asian models B. Ethnic Groups Around the World 1. Ethnic subcultures exist in other counties as well as in the United States. V. The Influence of Religion A. Religion provides individuals with a set of beliefs and values that serve as a code of conduct. B. Binds people together to make groups different from others C. Can prevent consumers from consuming certain products and services D. Marketing Implications 1. Marketers can segment the market by focusing on religious affiliation, delivery, targeted messages and promotions, or using certain media. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. What type of U.S. consumers are in the Generation X, the Millennial generation, and baby boomer segments? Answer: Generation X consumers are individuals born from 1965 to 1979. They are frequently stereotyped as feeling alienated and resentful due to difficulties in career placement and advancement. These consumers are not apathetic slackers. They tend to find success and achievement in being at the very cutting edge of technology. Millennial generation consumers are media and tech savvy, loyalty could ensue from childhood experiences, and they value price and convenience. AKA Gen Y, they are born from 1980 to 1994. Baby boomers were born between 1946 and 1964. They have considerable economic power and are a very influential consumer segment. Many boomers delayed their child rearing until their late 20s or 30s and created a population explosion referred to as the baby boomlet, or Generation Y. 2. What is the difference between gender and sexual orientation, and why is this distinction important for marketers? Answer: Gender is the biological state of being male or female. Sexual orientation reflects a person’s preference toward certain masculine or feminine behaviors. Marketers use to rely heavily on gender as a basis for segmentation. Today, the line has been blurred when it comes to many gender-specific products. A greater acceptance of different sexual orientations by society as a whole has spurred changes in how many products are advertised. 3. What is clustering, and why do marketers use it? Answer: Clustering is the grouping of consumers according to common characteristics using statistical techniques. Marketers uses clustering as a method of identifying consumers who are similar in terms of demographic and/or psychographic characteristics, such as income, education, age, household type, attitudes, and preferred radio format. 4. What are the three main subcultures within the U.S. population? Answer: The three main U.S. subcultures are Hispanic Americans, African Americans, and Asian Americans. 5. How do acculturation and intensity of ethnic identification affect consumer behavior? Answer: Acculturation is the process of adapting to a new culture. One’s intensity of ethnic identification is often inversely correlated to one’s degree of acculturation. If one chooses to strongly identify with their ethnic group, then one is less likely to acculturate to their new culture. These consumers are more likely to exhibit the consumption patterns of the ethnic group. 6. Define the accommodation theory, and explain its importance for marketers who target Hispanic Americans. Answer: The accommodation theory suggests that the more effort one puts forth in trying to communicate with an ethnic group, the more positive the reaction. For example, marketers who target Hispanic Americans by featuring Spanish-speaking advertisements increase perceptions of the company’s sensitivity toward and solidarity with the Hispanic community, thereby creating positive feelings toward the brand and company. 7. Why would a company adopt multicultural marketing rather than targeting subcultures one by one? Answer: Multicultural marketing is an effort to appeal to a variety of cultures at the same time. Targeting each individual subculture by making a large number of different commercials can be very expensive for a company. Multicultural marketing attempts to include all of the likely users of the product into one message. It is a message of inclusion rather than singling out. Obviously, this type of strategy needs to be considered thoroughly before implementation to make sure that different cultures interpret the message as it is intended. 8. Why do marketers have to consider regional influences when targeting consumers within the United States or in another country? Answer: Regional influences, such as geography, climate and clusters of different types of people, vary within states and nations. Different values and lifestyles can be directly be influenced by these factors, so marketers need to be aware of the differing customer needs that would evolve. 9. Identify some of the ways in which religion can influence consumer behavior. Answer: Religion can prevent consuming certain products and services. Religious beliefs can alter the types of food that are consumed during different times of the year. Some religions forbid the consumption of different types of food, such as beef, pork, and other types of meat. CONSUMER BEHAVIOR CASE Marketing to Teens Worldwide via Music Knowing that teenagers in many nations have similar attitudes and tastes, the world’s two largest soft drink companies see this group of consumers as an extremely important target market with long-term profit potential. Both Coca-Cola and PepsiCo know that not only do their soft drinks have to taste good, their marketing has to be relevant to capture teens’ attention and keep them engaged with the brands. Both are using music as part of their strategy for reaching out to teens through their shared interest in new music and bands. Although Coca-Cola and PepsiCo have long been identified with music—Coca-Cola on TV with American Idol, PepsiCo with commercials starring legendary performers like Michael Jackson—these new teen campaigns focus on cutting-edge music and involve more interactivity than ever before. “The number one passion point for teens is music,” explains a Coca-Cola senior vice president. During the recent World Cup soccer tournament, for example, the company scored a global hit when its TV ads showed the Somali rapper K’naan performing the brand-related “Flag Wavin’” song. The song was released commercially and quickly hit the top of the charts in 18 nations. During another campaign, Coca-Cola invited the popular band Maroon 5 to create a new song based on suggestions and comments submitted by teens via Facebook and Twitter during an intense 24-hour jam session—all streamed live online to a global audience. For the 2012 Olympics in London, Coca-Cola continued the focus on music with its “Move to the Beat” campaign. A new song written expressly for this campaign, incorporating sports sounds and performed by U.K. singer Katy B, was released before the games began and featured in TV ads, online ads, mobile marketing, social media posts, and other global marketing activities. “We can’t afford not to talk to teens,” says a Coca-Cola official. “You can’t think, ‘Teens already know us,’ and skip a couple of years. Every six years there's a new population of teens in the world.” Like Coca-Cola, PepsiCo uses music in marketing to attract teens’ attention and demonstrate its hip factor. In addition to global campaigns featuring music enjoyed by teens in many nations, PepsiCo tailors some marketing events to the musical tastes of teens in specific regions. It has sponsored new-talent festivals in India, for instance, and major rock concerts in Argentina. Knowing that the Grammy awards are popular among music-loving teens, Pepsi is one of the award program’s sponsors. And Pepsi’s association with X Factor is a high-profile way to associate the brand with up-and-coming musical artists who may, with a dash of luck and a lot of talent, blossom into stars who become wildly popular with teen audiences. PepsiCo is also using social media as a pivotal part of its international marketing to teenagers. During its recent “Summer Time is Pepsi Time” TV and online campaign, the company pictured parks, beaches, and pools from around the world. Consumers who checked in via Foursquare at any three of the sites received special badges and were entered into a sweepstakes for the chance to win prizes. These ads are still drawing viewers on YouTube, where teens and everybody else can enjoy and share them again and again. Case Questions 1. What long-term results do you think Coca-Cola and PepsiCo hope to achieve by investing heavily in marketing to teens around the world? Answer: These companies are attempting to create brand loyalty among teens that will persist for the rest of their lives. 2. What are the marketing advantages and disadvantages of associating a soft drink brand such as Coca-Cola or PepsiCo with musical groups that are just beginning their careers? Do you agree with this strategy? Explain. Answer: Advantages – the popularity of the group may grow exponentially and the brand benefits from the association in various ways, such as featuring the group in advertisements, sponsoring concert tours, and placing their logo on group paraphernalia Disadvantages – the group may never become very popular and there is no significant return on investment; or the group may be involved in a scandal future that reflects poorly on the sponsoring company When used carefully, this strategy can add credibility to the company as being hip, youthful, and innovative. 3. From a consumer behavior perspective, why would these two companies emphasize new music and emerging performers in their ads, rather than well-known songs and groups? Answer: New and emerging performers are more relatable to the average teen. New artists may more actively reach out to fans as they try to expand their fan base, providing fans with more personal experiences through local appearances and social media. Also, it allows the companies to be seen as new and cutting-edge, rather than the stodgy beverage of an older generation. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Pick a product or service category that individuals of all age groups consume. Conduct a detailed research analysis of the marketing techniques used to attract the four demographic segments discussed in this chapter in the following areas: (a) brands or services offered, (b) package design, (c) advertising content, (d) media selection, (e) sales promotion, and (f) distribution strategy. Collect this information via a library search, a content analysis of advertising messages and media used, in-store visits, and interviews with marketers. Then answer the following questions: (a) Which techniques are used to market to multiple age groups. (b) Which techniques are used to appeal to specific age groups? How do these techniques differ from age group to age group? Answer: Have students discuss the potentially objectionable ads that contain exaggerated claims, stereotypes, cigarette and alcohol advertising, sexually explicit content, and political, religious or social messages. What is the difference between ads that attract attention and those that cross the line in the eyes of different age groups? Product Category: Snack Foods 1. Brands or Services Offered: • All Ages: Lay’s, Kellogg’s (varied products) • Children: Goldfish, Fruit Snacks • Teens: Doritos, Pringles • Adults: Nature Valley, Clif Bars • Seniors: Chex Mix, Pringles 2. Package Design: • All Ages: Vibrant colors, recognizable logos (e.g., Lay’s) • Children: Bright, cartoonish (e.g., Goldfish) • Teens: Trendy, edgy (e.g., Doritos) • Adults: Clean, health-focused (e.g., Nature Valley) • Seniors: Simple, easy-to-open (e.g., Chex Mix) 3. Advertising Content: • All Ages: Versatility and enjoyment (e.g., Kellogg’s) • Children: Animated, playful (e.g., Fruit Snacks) • Teens: Energetic, social (e.g., Doritos) • Adults: Health benefits (e.g., Nature Valley) • Seniors: Convenience, familiar taste (e.g., Chex Mix) 4. Media Selection: • All Ages: TV, online, social media • Children: TV channels, YouTube Kids • Teens: Instagram, TikTok • Adults: News, lifestyle websites • Seniors: TV, newspapers 5. Sales Promotion: • All Ages: Coupons, multi-pack discounts (e.g., Kellogg’s) • Children: In-pack toys (e.g., Goldfish) • Teens: Limited editions (e.g., Doritos) • Adults: Bulk discounts (e.g., Nature Valley) • Seniors: Value packs (e.g., Chex Mix) 6. Distribution Strategy: • All Ages: Grocery stores, convenience stores, online • Children: Family-friendly locations • Teens: Convenience stores, online • Adults: Health stores, supermarkets, online • Seniors: Grocery stores, pharmacies Summary: (a) Techniques for multiple age groups include broad distribution, diverse products, and multi-channel marketing. (b) Specific techniques: • Children: Fun packaging, ads with characters • Teens: Trendy designs, social media • Adults: Health messaging, clean design • Seniors: Simple packaging, value promotions 2. Conduct a detailed research analysis of the marketing techniques used to appeal to males and females in the following areas: (a) brands or services offered, (b) package design, (c) advertising content, (d) media selection, (e) sales promotion, and (f) distribution strategy. Collect this information in the same manner as described in Exercise 1 and then answer the following questions: (a) Which techniques are used to market to both males and females? (b) Which specific techniques are used to appeal to males? To females? Answer: Here the students should better understand the portrayal of males and females in marketing efforts. How has this changed over time? What predictions might the students make with respect to the use of gender in marketing efforts in the future? Product Category: Personal Care Products 1. Marketing Techniques: (a) Brands or Services Offered: • Both Males and Females: Brands like Dove and Nivea offer gender-neutral lines. • Males: Brands like Old Spice and Gillette focus on shaving and grooming. • Females: Brands like Pantene and L'Oréal emphasize beauty and skincare. (b) Package Design: • Both Males and Females: Simple, clean designs (e.g., Dove). • Males: Bold, dark colors and strong, masculine shapes (e.g., Old Spice). • Females: Soft colors, elegant designs, and floral patterns (e.g., Pantene). (c) Advertising Content: • Both Males and Females: Emphasis on product benefits and quality. • Males: Focus on strength, performance, and ruggedness (e.g., Gillette). • Females: Emphasis on beauty, luxury, and emotional appeal (e.g., L'Oréal). (d) Media Selection: • Both Males and Females: TV, online, and social media. • Males: Sports channels, online forums, and gaming platforms. • Females: Lifestyle magazines, beauty blogs, and social media platforms like Instagram. (e) Sales Promotion: • Both Males and Females: Coupons, multi-buy offers. • Males: Free samples, bundled offers with grooming tools (e.g., Gillette). • Females: Discounts on beauty products, gift sets (e.g., L'Oréal). (f) Distribution Strategy: • Both Males and Females: Available in supermarkets, drugstores, and online. • Males: Positioned prominently in grooming sections and online stores. • Females: Displayed in beauty aisles, featured in fashion and lifestyle stores. Summary: (a) Techniques for Both: Clean packaging, broad media usage, product benefits focus. (b) Specific Techniques: • Males: Bold design, masculine themes, sports channels, free grooming samples. • Females: Elegant design, beauty-focused content, lifestyle magazines, beauty product discounts. 3. You have been assigned to develop a marketing strategy for a new fruit drink that provides high energy and is high in nutrients. It is also light and very refreshing, especially on a hot day. How would you market this product in different regions of the world? Develop a detailed marketing plan for two regions that addresses the advertising message, media selection, distribution, and sales promotion. Answer: Students should consider using market research tools such as clustering. Certainly different regions influence consumption patterns and often require different marketing mixes to meet the needs of consumers. This can certainly include changing the composition of the product to a degree to best fit cultural tastes. Even in the US there are different beverage preferences in different regions. For example, sweet tea is a popular drink in the South and available at the vast majority of restaurants in the region, but typically not on the menu in other parts of the country. Marketing Plan for New Fruit Drink 1. Region: North America Advertising Message: • Highlight the drink’s high energy and nutrient content, emphasizing its refreshing nature and suitability for an active lifestyle. • Tagline: “Boost Your Day with Refreshing Energy!” Media Selection: • Digital and social media campaigns (Instagram, Facebook, YouTube). • TV ads during sports and fitness programs. Distribution: • Major grocery chains, health food stores, and convenience stores. • Online retailers and e-commerce platforms. Sales Promotion: • In-store sampling events and partnerships with gyms. • Discounts and special offers on e-commerce sites. 2. Region: Southeast Asia Advertising Message: • Emphasize the drink’s cooling effect and high nutritional value, appealing to consumers looking for a healthy, refreshing option in hot climates. • Tagline: “Cool Down and Energize with Nature’s Best!” Media Selection: • Local TV and radio ads, focusing on daytime programming. • Social media platforms like Facebook and TikTok. Distribution: • Supermarkets, local grocery stores, and street markets. • Collaboration with local distributors for wider reach. Sales Promotion: • Promotional campaigns with local influencers and free samples at markets. • Buy-one-get-one-free offers and discounts in supermarkets. Summary: North America: Focus on high energy and active lifestyle, using digital media and health-related promotions. Southeast Asia: Emphasize cooling and nutrition, leveraging local media and market-specific promotions. 4. You are developing a marketing strategy for a fashion clothing store chain that wants to specialize in providing products for minorities in your area. The stores plan to sell medium- to high-priced clothing for Hispanic, African American, and Asian American women. Develop a questionnaire to collect information about acquisition and consumption patterns among your potential customers. Be sure to ask questions that will provide insight into your decisions about (a) store design, (b) products offered, (3) pricing, and (4) advertising. Administer this questionnaire to at least ten members of one of the three ethnic groups. Summarize the key findings of your research and make a recommendation in each of the areas mentioned. Answer: This exercise provides an open-ended way of getting the student to recognize the differences between cultures and understand how marketers can better address the needs of these groups. Ask students to attempt to identify products/services that can benefit from multicultural marketing and which products/services should be tailored to individual subcultures. Questionnaire Summary Demographics: Age, ethnicity, occupation, and income range. Store Design: 1. Preferred environment: Modern and sleek. 2. Layout: Open and spacious. 3. Color/theme: Mix of vibrant and neutral. Products Offered: 1. Most purchased: Trendy pieces and unique designs. 2. Preferred items: Casual and business wear. 3. Brand preferences: Specific brands or designers. Pricing: 1. Spending range: $100 - $150. 2. Purchase drivers: Quality and design uniqueness. 3. Sales preference: Seasonal promotions. Advertising: 1. Effective channels: Social media and online ads. 2. Appeal: Influencer endorsements and discounts. 3. Marketing type: Culturally specific. Recommendations 1. Store Design: Modern, open layout with vibrant and neutral colors. 2. Products Offered: Focus on trendy and culturally inspired clothing, casual and business attire. 3. Pricing: Price items at $100 - $150; highlight quality and design. 4. Advertising: Use social media, influencer endorsements, and culturally specific marketing. 5. Pick three product/service categories that you think will show consumption differences across different religious subcultures. Design a questionnaire to assess major consumption patterns for each of these products/services and administer it to at least five consumers in each of the major subcultures. Summarize the responses, and answer the following questions: (a) How do these cultures vary in terms of consumption? (b) How would marketing efforts differ for the groups? Answer: Food and beverage are likely points of differentiation among religions. Challenge the student to identify other areas of consumption behaviors that elicit differences. Are there differences in other consumer behaviors with respect to acquisition and disposition behaviors? Do some religions emphasize the avoidance of wasting products more so than others? Questionnaire Summary Food and Beverages: 1. Types of food: Vegetarian, Halal, Kosher, General. 2. Preference for brands: Yes/No. 3. Importance of culturally specific options: Very important, Somewhat important, Not important. Clothing and Apparel: 1. Clothing preferences: Modest, Trendy, Casual, Formal. 2. Seeking brands that respect values: Yes/No. 3. Frequency of culturally aligned purchases: Always, Often, Occasionally, Never. Entertainment and Media: 1. Media types: Movies, TV, Streaming, Religious content. 2. Preference for values-reflecting media: Yes/No. 3. Importance of culturally specific content: Very important, Somewhat important, Not important. Key Findings Food: High importance on dietary-specific options for Halal and Kosher consumers; less for general consumers. Clothing: Modest wear has strong demand for culturally respectful brands; less so for trend-focused fashion. Entertainment: Religious content is crucial for religious consumers; varied importance for general media. Marketing Recommendations Food: Emphasize dietary certifications and cultural authenticity. Clothing: Focus on modest and culturally respectful designs. Entertainment: Promote content that aligns with religious and cultural values. SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS EL ANDAR El Andar’s website (www.elandar.com) touts the publication as “the Latino magazine for the new millennium.” Visit the site for this publication; click the “Advertise” link and discover the characteristics of the target audience of El Andar. Describe the demographic and psychographic profile of the typical reader of El Andar. In what ways is this consumer similar to the average Hispanic American consumer? In what ways does she differ? Based on the reader profile, give some examples of marketers who might target the readers of El Andar. Instructor Notes The typical reader of El Andar is an affluent, technologically-proficient, well-educated, bilingual Latino professional. She is involved in community affairs and is influential in business, education, and/or politics. The magazine’s content (essays, poetry, fiction, and investigative and photojournalism) appeals to the reader who thinks differently than the average, and who has a progressive outlook on life. In contrast, the average Hispanic American consumer is a blue-collar worker with both income and educational attainment below the national average. Marketers who might advertise in El Andar include those whose product offerings match the needs of the magazine’s target audience. For example, political parties and causes; charitable organizations; community leadership groups; financial services companies; travel and entertainment firms; art galleries; symphony orchestras and other musical organizations; and haute couture clothing marketers all might find the reader of El Andar to be an attentive audience for their product messages. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 5, Attitudes Based on High Effort (attitude toward editorial content of El Andar) • Chapter 6, Attitudes Based on Low Effort (attitudes toward entertainment content of El Andar) • Chapter 13, Social Class and Household Influences (relative influence of social class and ethnicity on consumer behavior) • Chapter 14, Psychographics: Values, Personality, and Lifestyles (VALS-2 categorization of the typical El Andar reader) Discussion Idea What other publications target upscale consumers? How well do these publications address the needs and wants of Hispanic or Latino consumers? ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions that the students consider while reading the chapter or to test their understanding of the material after the reading and lecture are complete. 1. Explain the concept of acculturation. Answer: Acculturation is learning how to adapt to a new culture, and is strongly influenced by family, friends, and institutions—like the media, place of worship, and schools. Acculturation, which results in consumers who blend their traditional customs with the customs of their host culture, has been divided into three levels: (a) traditional—individuals who primarily hold on to their traditional customs and who speak their native language; (b) bicultural—individuals who balance their primary and host cultures and speak both their native and host languages; and (c) acculturated—individuals who predominantly exhibit the customs of the host culture and who predominantly use the host language. 2. Why is intensity of ethnic identification important to marketing strategy? Answer: Ethnic identity—how strongly people identify with their ethnic group—influences consumers’ consumption patterns. Individuals who have a strong ethnic identity are more likely to exhibit the consumption patterns of their ethnic group and, therefore, will respond more favorably to marketing strategies that target those patterns. ADDITIONAL QUESTIONS 1. The U.S. culture has been described as one of both convenience and choice. Explain how the availability and variability of goods and services has influenced the consumer behavior of students compared to that of their older relatives. Answer: The availability and variability of goods and services have led students to prioritize convenience and variety, often opting for quick, on-demand products and services, such as fast food and streaming services. In contrast, older relatives may prioritize traditional brands and value-oriented shopping, often focusing on quality and longevity over convenience. 2. Create a detailed list of the basic characteristics of the region where your school is located. Describe how this region differs from other regions. Explain how these differences could influence marketing strategy. Answer: Characteristics may include climate, population demographics, economic activities, cultural norms, and dominant industries. For example, a region with a high student population and tech industry presence may differ from a rural area focused on agriculture. Marketing strategies should cater to the specific needs, preferences, and economic capabilities of the local population, such as promoting tech gadgets in tech-savvy regions versus promoting agricultural tools in rural areas. 3. As a group, select three different countries (not including the U.S.) with which you are familiar. Describe how these countries vary in terms of their consumption patterns. Explain how knowing these patterns can help marketers in these countries. Answer: For example: - Japan: High consumption of technology and luxury goods, preference for quality and brand reputation. - India: Price-sensitive market with growing demand for affordable technology and convenience products. - Germany: Preference for durable, high-quality products, strong environmental consciousness. Understanding these patterns helps marketers tailor their product offerings, pricing strategies, and promotional messages to align with local preferences and values. 4. Describe some of the major ethnic groups in the U.S. Outline the growth trends that are expected for each of these groups, noting why some groups are growing faster than others. Discuss how knowing about these trends can help marketers. Answer: Major ethnic groups include Hispanics, African Americans, and Asian Americans. Hispanics are growing rapidly due to higher birth rates and immigration. Asian Americans are also increasing, partly due to immigration. African American growth is more stable. Marketers can use this knowledge to target expanding demographic segments, adapting their products and messages to appeal to diverse cultural preferences. 5. Discuss the major characteristics of each of the following ethnic groups in the U.S.: (1) Hispanics, (2) African Americans, (3) Asian Americans. Explain how the characteristics of each of these groups affect their consumption behaviors. Explain how ignoring these characteristics can be risky for marketers. Answer: - Hispanics: Strong family orientation, brand loyalty, preference for bilingual marketing. - African Americans: Influential in trends, value for authenticity, high media consumption. - Asian Americans: Emphasis on education, technology, and quality; preference for brands reflecting status. Ignoring these characteristics can lead to ineffective marketing strategies, alienating potential customers by failing to resonate with their cultural values. 6. Discuss what is meant by the phrases level of acculturation and intensity of ethnic identification. Describe how these concepts influence consumer behavior and how understanding them can influence marketing strategy. Answer: Level of acculturation refers to how well individuals from one culture adapt to another culture's practices. Intensity of ethnic identification measures the strength of an individual's identification with their ethnic group. These concepts influence consumer behavior by affecting preferences for ethnic versus mainstream products. Understanding these factors helps marketers tailor their approaches, offering products that resonate with different levels of cultural integration. 7. Develop a list of the major religious subcultures in the U.S. Describe the conditions under which marketers might want to reach these specific groups. Explain what methods would be used to reach these groups. Answer: Major religious subcultures include Christians (Protestants, Catholics), Jews, Muslims, Hindus, and Buddhists. Marketers might target these groups during religious holidays, dietary preferences, or lifestyle choices. Methods include specialized advertising, sponsorship of religious events, and products that align with religious practices (e.g., kosher foods, halal products). 8. A well-known roach-killing product works by burning it inside the home and fumigating the bugs. The product sells very well in South America. The product is introduced in South Asia but fails. Explain what differences between these two regions might explain the failure. Consider both cultural and religious issues. Answer: The failure could be due to cultural practices, such as aversion to smoke inside homes in South Asia, and religious beliefs that prohibit the killing of certain living beings. Additionally, there might be environmental concerns or differences in pest control practices. Marketers need to understand and respect local customs and religious sensitivities to avoid such failures. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. Consider bringing examples of marketing to regional, ethnic, and religious subcultures into the classroom. Examples of these efforts might include ads that are in languages other than English or emphasize lifestyles associated with particular subcultures, products packaged for particular subcultures, and so on. Use these examples to stimulate discussion about how marketers need to be sensitive to and knowledgeable about the needs of many cultures when preparing their marketing efforts. 1. “Let Mikey Try It” Exercise Go to the grocery store and purchase a food product likely to be considered disgusting by most students in the class—a cow’s tongue or a jar of pig’s knuckles/feet will probably do the trick. Show it to the class and solicit their reactions to the prospect of eating the item. After determining that few students, if any, would be willing to sample the fare, ask them to describe the conditions in which someone would eat it and, then, those in which they would be willing to eat it. The discussion generally touches on many of the demographic and cultural factors described in the text. 2. “Cultural Confusion” Exercise* Divide the class into two groups, each of which represents a different culture: trade-centered versus people-centered. Give each group a set of rules and characteristics describing its culture and tell them to study the description for five minutes. After they’ve had an opportunity to learn about their respective cultures, bring the two groups together again to interact with one another. See which group can figure out the other culture’s rules first. Possible rules (which can be changed to suit the instructor but which should be silly and difficult to figure out) are: Trade-centered culture Men are dominant in this culture. Money talks; individuals from the other culture must begin and end all conversations with representatives of this culture by saying aloud a type of currency (e.g., dollar, lira, franc, etc.). Women from the other culture are never allowed to talk to men in this culture; they may, however, talk to women. Members of the trade-centered culture who break the rules of the people-centered culture are required to leave the room until other members of the culture sing “Happy Birthday” three times. People-centered culture Women are dominant in this culture. Conversations must begin with the person from the other culture touching a female on the left shoulder and saying aloud the name of a fruit. Conversations must end with the person from the other culture touching a female on the right shoulder and saying aloud the name of a vegetable. Men from the other culture are allowed to talk to women in this culture, but they may not make eye contact. Members of the people-centered culture who break the rules of the trade-centered culture are required to leave the room until other members of the culture sing “For He’s a Jolly Good Fellow” three times. This exercise demonstrates the importance of learning about other cultures before attempting to do business with them, and the awkwardness one can feel in the absence of such learning. CLASSROOM GROUP ACTIVITY Marketing to Subcultures: 40 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to consider development of a marketing effort targeted at one of three ethnic subcultures in the U.S. B. What the instructor will do 1. The instructor will divide people into small groups and be available to coach and help the groups as needed. 2. Assign each group one of the three products and one of the three subculture markets. This may be facilitated by writing each on an index card and having students randomly draw one from each set. Products are (1) a telephone company, (2) a vacation destination, or (3) a light beer. Subcultures are (a) Asian Americans, (b) Hispanics, or (c) African Americans. 3. Optionally, groups may be provided with clear overhead transparencies and markers so they can summarize their discussions and make presentations after their analysis and discussion. C. What the participants will do 1. The participants will work in small groups to outline their considerations for marketing (1) a telephone company, (2) a vacation destination, or (3) a light beer to either (a) Asian Americans, (b) Hispanics, or (c) African Americans. After a period of small-group discussion, they will make reports to the larger group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Specific actions for groups 1. The groups are responsible for developing a list of issues associated with marketing their particular product for their particular group. 2. Optionally, groups can summarize their discussions on clear overhead acetates to facilitate presentations after their analysis and discussion. 3. Questions to be answered by small groups a) For the marketing of your product to the subculture you have selected, what would be the major considerations for the following: (1). Product development (2). Media targeting (3). Advertising messages (4). Promotions (5). Distribution 4. Large-group discussions a) After about 20 minutes of small-group activity, proceed to have each group present its ideas to the class in a round-robin format. III. Debrief and Unveil Concepts A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise d) What will be different when they do this for their own product B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The importance of considering many issues when developing marketing efforts for any group 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships among their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they don’t have a specific job, how will they remember to use what they have learned? Mark Walsh, “Coke’s Mildenhall Explains ‘Liquid’ Marketing,” Media Post, October 4, 2011, www.mediapost.com; Natalie Zmuda, “Pepsi Beverage Guru Unveils His Plan to Win the World Over,” Advertising Age, July 11, 2011, www.adage.com; Natalie Zmuda, “Coca-Cola Launches Global Music Effort to Connect with Teens,” Advertising Age, March 3, 2011, www.adage.com; Natalie Zmuda, “Marketer of the Year: Coca-Cola,” Advertising Age, November 7, 2011, www.adage.com; Shirley Brady, “Coca-Cola’s 2012 Gameplan,” Brand Channel, September 29, 2011, www.brandchannel.com; and Kenna McHugh, “Pepsi Using Foursquare on Worldwide Social Media Campaign,” Social Times, July 13, 2011, http://socialtimes.com. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211