CONSUMERS AND
SUBCULTURES
What are some demographics
 Age
 education
 occupation
 social class
 Ethnic group
 gender composition
 family size and composition
 distribution of population
So What Are demographics?
 Objective
 quantifiable
 Characteristics
 of a population
 Important variables for market segmentation
 Different segments have different consumption patterns
What does money
mean to you?
Our ideas about money affect our
consumption behaviour
What does the demand for
goods and services depend on?
 the ability to buy
 the willingness to buy
What influences your
willingness to buy?
Tastes — desire for this and other goods
Expectations (for income, prices, tastes)
Other goods (their availability and prices)
Consumers’ willingness to buy?
a measure of consumers’ opinions on the financial
position of their own household and the economy as a
whole
and to what extent they think it is a good time to buy
large expensive items such as a TV or a computer.
Demand for necessities remains stable over time
The underlying data are taken from the consumer
confidence survey.
The Conference Board's Consumer Confidence Survey
 a monthly report based on a representative sample of 5,000 U.S.
households across the country.
Consumer assessment of current economic conditions. Covers
things such as
•Employment
•Spending intentions over the next six months
•Feelings about business conditions over the next six months
Industries that rely on the Survey for forecasting include
manufacturers, retailers, banks, and government agencies
The Index for the US at the end of October 2003 was 81.1
(1985=100),
Consumption growth displays a positive relation to the
willingness to buy.
The index of willingness to buy is a clear predictor for the
future development of consumer spending.
Confidence and willingness to buy varies by market segment and is
usually higher among younger than older consumers
And among higher
income consumers
than lower,
college college
graduates over high
school graduates
 whites or other
ethnic groups
 men or women
Willingness to buy by telephone
Social Class
What is Social Class?
relatively permanent strata in a society that are distinct
subcultures
What are the typical factors that differentiate the social classes?
– Occupation
– Education attained
– Behavioral standards – taste culture
– Source of Income
– Level of Income; wealth
– Dwelling area
– Power
– Religious Affiliation; Associations
– lifestyles, buying patterns, motivations and values
– possessions
Social Classes in Canada
A. The upper class.
– 1. The upper-upper class. (1%; ‘old money)
– 2. The lower-upper class. (2-4%)
B. The middle class (40-50% considerable racial & ethnic diversity)
– 1. The upper-middle class. ($100k +)
– 2. The middle-middle class. ($50-$100,000, upper managerial or
professional fields)
– 3. lower-middle: under $50,000, less prestigious white collar,
or highly skilled blue collar jobs.
C. The working class. (1/3 of population) (lower incomes than
middle class, no accumulated wealth less personal satisfaction
in jobs
D. The lower class. (20% of population) (either supported by
welfare, or are ‘working poor’)
The Importance of Class
What sort of things does social class affect
 tastes
 Lifestyles
 access to such resources as education, health care,
housing and consumer goods.
 Self Image
 Values
 Political orientation
I.e. Consumption behaviour who spends how much and on
what
How Much Money Will Be Spent
How Money Will Be Spent
Vuitton
Credit Card
Holder $96.00
Celine
Boogie Bag
$990
Where it will be spent
Harry Rosen’s
How Do the Lower and Upper Classes Differ in Their
Consumption Behaviour?
Lower classes
generally focus on
more immediate
and more
utilitarian needs
Upper classes
are often likely to
approach
consumption from
a more aesthetic
perspective
Marketing Implications
Your company XYZ corp. manufactures inexpensive
furniture and has targeted the less well off. In an
effort to upgrade your image the company has
decided to target higher-class consumers. What will
the marketing implications be on the following.
 Product choices and development
 Product design and packaging
 Distribution
 Price
 Advertising and other marketing communications
Status Symbols
What are They?
Conspicuously consumed goods which are used to provide
evidence of wealth
Why do some people feel the need for status
symbols?
 The need to display status through purchase and use of products
is at least partially derived from the anonymous nature of much
of our social interaction
 If most people are unknown in public, status cannot be conveyed
by reputation
 Anonymity exacerbates the need for uniqueness
The Sony Vaio laptop computer
“Take a look at this status symbol”
“Wow you're going to attract attention opening this in public…”
12.1" XGA screen 30 gig drive and 256 MB RAM, 2 USB, a Firewire/iLink and
network as well as . a CD writer that also reads DVDs.
Status Symbols
Examples
Parody Display
When consumers deliberately
mock a trend by carefully
selecting products and
consumption patterns that
are not the current fashion
or style.
Paper Denim Retro Torn
Jeans $140.00
Fraudulent
Symbolism
When too many others use
or possess a status
symbol such that it loses
much of its former power
SUBCULTURES
What is a Subculture?
A distinct cultural group that exists as an identifiable
segment within a larger, more complex society/culture
How do you distinguish one group from another?
 beliefs,
 Values
 Customs
 Lifestyles and interests
 norms
 Language
 insignias
Every consumer belongs to many subcultures
What are some Types of Subcultures
in Canada
Ethnic
Racial
Age
Regional
Religious
What is an Ethnic Subculture?
 Possess common cultural and or genetic ties which are
identified both by its members and by others as a
distinguishable category.
 Ethnic identity is a significant component of a
consumer’s self concept
What makes Ethnic Subcultures
Different?
Immigration in Canada
Canada has one of the world’s most liberal
immigration policies and is considered a
multicultural or pluralistic society (as opposed to
melting pot)
New immigrants tend to cluster together
geographically which makes them easy to reach.
Concentrated in major Canadian cities
Bring with them customs, traditions, values, etc.
New immigrants are likely to be Asian
Population reporting at least one Ethnic Origin other than British,
French or Canadian, 1986, 1991 and 1996 Censuses
37%
42%
58%
63%
1986 Census
1991 Census
44%
Legend
British, French or Canadian Origins
Other Ethnic Origins
56%
1996 Census
Ethnic groups in Canada are growing
more than 7 times faster than the general
population
Advertising Canada estimated that by
2001 African and Asian populations in
Canada would represent in excess of $300
billion in purchasing power.
Ethnic marketing has therefore become
increasingly important to marketers who
wish to maintain or increase market share.
Who are they and where are they?
Percentage of Visible Minority Population by All Age
Groups, for Canada, Provinces, Territories and selected
Census Metropolitan Areas, 1996 Census
35%
32%
31%
30%
25%
20%
18%
16%
16%
14%
15%
12%
12%
11%
10%
11%
10%
9%
10%
8%
8%
8%
7%
6%
5%
3%
1%
1%
3%
3%
3%
1%
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Visible Minority Population for Provinces and Territories
1996 Census
Shown in Absolute Numbers
1,800,000
1,682,045
1,600,000
1,400,000
1,200,000
1,000,000
800,000
660,545
600,000
433,985
400,000
269,280
200,000
3,815
1,520
31,320
77,355
7,995
26,945
1,000
1,670
Northwest Terr.
Yukon Territory
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
P.E.I.
Newfoundland
0
Visible Minority Population in selected Census
Metropolitan, 1996 Census
Shown in Absolute Numbers
1,338,095
1,400,000
1,200,000
1,000,000
800,000
564,600
600,000
401,425
400,000
200,000
127,555
115,430
73,310
48,910
10,35511,250
115,460
2,370 22,320 2,555 9,815
22,915
Victoria
Vancouver
Edmonton
Calgary
Saskatoon
Regina
Winnipeg
Hamilton
Toronto
Ottawa - Hull
Montréal
Québec
Saint John
Halifax
St. John's
0
Percentage of the Visible Minority Population Aged 0 to 24, for
Canada, Provinces, Territories and selected Census Metropolitan
Areas, 1996 Census
40%
37% 37%
35%
30%
25%
21%
19%
20%
18%
16%
16%
15%
14%
15%
13%
13%
12%
11%
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10%
10%
8%
8%
5%
4%
5%
3%
2%
1%
1%
1%
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Asian Canadians
Asian Canadians are the Fastest Growing
Minority Group in Canada
Small, Diverse, Growing
Above Average Income
•($2000/yr more)
Native Language Print Media
Education Oriented
.
•College Graduation Rate is Twice That of Whites)
tend to be more brand and price conscious
Tend to be early adapters of new technology
Reaching the Asian Canadian Consumer
Problems Encountered by Canadian Marketers
Translating Advertising Messages Into Asian Media
Overlooked Complex Differences Among Asian Subcultures
Lack of Media Available to Reach Asian Canadians
Been Insensitive to Cultural Practices
A British ad for Tennent’s beer
marketed to the East Asian
community
Marketing Implications of Subculture
1. What language does your key ethnic demographic prefer
that you use in communications with them?
2. What media do they read, listen to or watch?
3. Does the product or service (or communication program)
that you are planning to pitch to them support their firstlanguage and/or first-culture requirements, or are you
simply attempting to engage them in their first-language
about a generally available, Canadian (English or French)
product or service?
4. Distribution-geographic concentration of many ethnic
subcultures means that marketers can reach them more
easily; also in some cases certain groups prefer to shop in
certain stores
Bell Mobility targets Canada's population of Chinese
through advertising in Chinese in Chinese dailies,
And by a dedicated dealer network with customer service
reps fluent in Mandarin and Cantonese.
There targeted advertising speaks to Chinese consumer's
tendency to regard wireless devises as personal security
systems.
Summary of 2003 UK Study on Ethnic Marketing
1. Minority ethnic audiences represent a significant
opportunity for brands
• A strong status-orientation and conspicuous
consumption combine to make brands disproportionately
important compared with the mainstream.
• Many major purchases are subject to strong familybased decision making.
2. Some advertising fails to connect
• Advertising is perceived rationally and consciously as
performing a functional selling role.
• Non-literal communications are least likely to connect,
particularly with Asians.
3. There is demand for culturally-relevant marketing
• Communities see an opportunity for brands to augment
existing, mainstream campaigns with more focussed
targeting, sympathetic to the culture
4. Using minority ethnic characters is a double-edged sword
• Use of minority ethnic actors tends to polarize the
community between those who see the individual
representation as positive and those that see it as
tokenistic or stereotypical.
• Viewers evaluate the ads not only on the basis of
personal relevance but also on the basis of "what does
this say about us?" to the rest of society.
5. Local newspapers/radio are consumed as part of strong
community orientation.
6. Minority ethnic communities are as internally diverse as
they are distinct from mainstream culture.
• Generation, age, language, location and country of origin
are significant variables that determine the extent to which
minority ethnic audiences move outside of purely
traditional culture.