6/1/2010 Chapter 13 Subculture and Social Class McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Subcultures • Distinctive groups of people in a society that share common cultural meanings for – Affective and cognitive responses – Behaviors – Environmental factors 13-2 Types of Subcultures • Marketers use a variety of demographic characteristics to identify subcultures 13-3 1 6/1/2010 Analyzing Subcultures • Can be analyzed at different levels and often done in stages – A broad subculture is identified based on some broad demographic characteristics – It is further segmented into subcultures based on other demographic characteristics – If necessary, further segmented into even smaller and more precisely defined subcultures 13-4 Analyzing Subcultures cont. • Can follow the same approach as cultural analysis – Content of subculture examined based on description of cultural meanings shared by its members • Marketers identify the typical characteristics, meanings, and behavioral tendencies shared by people in the subculture 13-5 Analyzing Subcultures cont. • Marketers need to determine the appropriate level of analysis for the problem, and develop appropriate marketing strategies 13-6 2 6/1/2010 Geographic Subcultures • The U.S. is a polycultural nation – A mosaic of submarkets and subcultures • Ways to analyze the United States in terms of geographic subcultures – Joel Garreau’s “nine nations” of North America • Effective for developing specific marketing strategies to appeal to area specific consumers – Borderland Regions • Represented by a majority of people in the lowerthan-average income bracket 13-7 Eight “Nations” of the United States Age Subcultures • Age groups have distinctive values and behaviors • Importance to be given to psychological age rather than chronological age – Teen market • • • • Gaining affluence and fluctuating in size Own discretionary purchasing power Large portion of the grocery shopping done by teens Brand loyalty forms early among teenage shoppers 13-9 3 6/1/2010 Age Subcultures cont. – Baby Boomers • People born between 1946 and 1964 • Largest and most affluent group in history • A blend of “me-generation” and old-fashioned family values • Strongly influence the values of other groups • Characterized as being health conscious, more educated and have double income families • Emphasizes quality and is less interested with bargain hunting • Most lucrative and challenging group for marketers 13-10 Age Subcultures cont. – The mature market • Consumers over the age of 55 – often further subdivided into narrower age ranges • Among one of the most rapidly growing subcultures • Its economic character deserves careful consideration • Important to recognize how the market is changing • Has the highest rate of per capita discretionary income than any other age group • Has many retired people who have more time to enjoy entertainment and leisure activities • Developing marketing strategies is difficult 13-11 Ethnic Subcultures • The ethnic makeup in the United States has changed dramatically in the past two decades – Ethnic diversity is not distributed equally across the U.S. – The black subculture • The largest minority group in the U.S. • Economic conditions vary considerably in different metropolitan areas • Marketers could further subdivide this group based on income, social class, etc. 13-12 4 6/1/2010 Ethnic Subcultures cont. – The Hispanic subculture • Unequally distributed across the U.S. • Diverse • Three broad segments – Only Spanish speaking – Bilingual, but favoring Spanish – Bilingual, but favoring English • Getting good information about Hispanic needs, values, and beliefs is difficult 13-13 Ethnic Subcultures cont. – Asian subculture • Among the most rapidly increasing ethnic group in the U.S. • Requires special marketing attention for many companies • Purchase decisions be based on country of origin and length of time in that country • A prime market because they are more affluent than any other racial or ethnic group • Very diverse subculture 13-14 Gender as a Subculture • Gender differences significant enough to consider the two sexes as separate subcultures. – Women either make or greatly influence most purchasing decisions – Higher number of working women with discretionary income to spend 13-15 5 6/1/2010 Income as a Subculture • People at different income levels tend to have quite different values, behaviors, and lifestyles – American households can be divided into three income categories • Downscale • Upscale • Middle income 13-16 Acculturation Processes • Acculturation refers how people in one culture or subculture understand and adapt to the meanings of another culture or subculture • Consumer acculturation refers to how people acquire the ability and cultural knowledge to be skilled consumers in different cultures or subcultures • Important in the modern world 13-17 Acculturation Processes cont. – Important for people who move to different regions within same country and must adapt to different subcultural meanings – Degree to which immigrants, movers, and marketers become acculturated depends on their level of cultural interpenetration 13-18 6 6/1/2010 Acculturation Processes cont. – Four stages of acculturation corresponding to four levels of cultural interpenetration • • • • Honeymoon Rejection Tolerance Integration – An important aspect is proficiency in the language of the new culture 13-19 Social Class • A national status hierarchy by which groups and individuals are distinguished in terms of esteem and prestige • Four social class groups used for consumer analysis in the U.S. – Upper – Middle – Working – Lower 13-20 Social Class cont. – Identification with each social class is influenced most strongly by one’s level of education and occupation – A composite of many personal and social attributes – Families in each social class can be further classified • Overprivileged • Average • Underprivileged 13-21 7 6/1/2010 Social Class cont. – Social class and relative standing within a class are important sources of consumers’ beliefs, values, and behaviors – At a conceptual level, are useful for investigating the process by which consumers develop their characteristic beliefs, values, and behavior patterns 13-22 Social Class Groups for Consumer Analysis Social Class versus Income • Controversy as to whether social class or income is the better variable for use in consumer analysis – Each variable has its advantages and disadvantages – The choice between using social class, income, or a combination depends on the product and the situation – The choice between using social class, income, or a combination depends on the product and the situation 13-24 8 6/1/2010 Social Class Versus Income cont. • Social class superior to income for method and place of purchase of highly visible, symbolic, and expensive objects • Income is generally used for understanding purchase of products that require substantial expenditures but are not status symbols within the class • Combination of social class and income is usually superior for product classes that are highly visible, are symbols of social class or status within the class and require moderate to substantial expenditure 13-25 Summary • Discussed two macro social influences on consumers’ behaviors, cognitions, and affective responses • Learned how social factors influence peoples thinking, feel, and behavior relative to their physical, social, and marketing environments 13-26 Summary cont. • Discussed subcultural influences in terms of geographic area, age, ethnic groups, and other factors • Social class influences were discussed in terms of their roles both in explaining consumer behavior and as a strategic tool 13-27 9