Demographics Describe a population in terms of its size, structure and distribution. Gender Occupation Education Income Men vs. Women Men Women Move faster Spend less time looking Don’t like asking for things No apparent joy Easily upgraded & influenced Enjoy shopping Social activity Demand more from a shopping environment More patient and inquisitive Purchase Pals/Companion Shoppers Woman shopping with a female companion: 8 minutes, 15 seconds Woman with children: 7 minutes, 19 seconds Woman alone: 5 minutes, 2 seconds Woman with man: 4 minutes 41 seconds How should retailers deal with male shoppers? Gender: Segmenting the Male Consumer Are all men the same targets for shopping? A Handy Guide to the Male Shopper WARNING: Guys may or may not recognize themselves among these archetypes. But a century after marketers drew a big bull’s-eye on the female consumer, slicing up the male market is long overdue. Anything to get past the fixation on the metro and the retro. The Metrosexual The Maturiteen The Modern Man The Dad The Retrosexual What is one of the first questions you ask people when you meet them for the first time? How does their response affect your perception? Does it affect their consumption patterns? Occupational Influences on Consumption Education Level Influences on Consumption Income A household’s income level combined with its accumulated wealth determines its purchasing power. Income enables purchases but does not generally cause or explain them. Occupation and education directly influence preferences for products, media, and activities; income provides the means to acquire them Income is generally more effective as a segmentation variable when used in conjunction with other demographic variables. Age Cohorts Can you guess which generation is the highest prescription-drug user? Can you guess what percent in each generation is on at least one prescription-drug? Mature Market Generation X Generation Y Millennials Age Cohorts If you answered the “mature market” you were correct. And, those taking at least one prescription drug by age category is as follows: > 18: 24 percent 18-44: 35 percent 45-64: 62.1 percent 65+: 84 percent Understanding American Generations A Generation or age cohort is a group of persons who have experienced a common social, political, historical, and economic environment. Cohort analysis is the process of describing and explaining the attitudes, values and behaviors of an age group as well as predicting its future attitudes, values, and behaviors. Cohort Effects and Preferences Cohort Coming of Age Money Motto Sex Mindset Favorite Music Depression 1930-1939 Intolerant Big Band World War II 1940-1945 Ambivalent Swing Post-War 1946-1963 Save for a rainy day Save a lot, spend a little Save some, spend some Repressive Frank Sinatra, Patti Page Boomers I 1964-1972 Permissive Rock & Roll Boomers II 1973-1983 Spend, spend, borrow, spend Spend, spend, borrow, spend Spend? Save? What? Permissive Rock & Roll Confused Rap, Grunge, Retro Save young, retire early Terrified Girl/Boy bands Generation X 1984-1995 Generation Y 1995-2012 Subcultures The Nature of Subcultures A subculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior. Identification with a Subculture Produces Unique Market Behaviors SUBCULTURES A segment of a larger culture whose members share distinguishing patterns of behavior Ethnic Subcultures • African-Americans; Hispanics; Asian-Americans; Native Americans, Arab Americans… • Ethnic minorities spend more than $600 billion a year on products Age Cohorts • Gen Y; Gen X; Boomers; Depression; Pre-Depression Regional Subcultures • Texas Vs. California Vs. New York Religious Subcultures • Christian Subcultures (Catholic, Protestant, Born-Again); Non-Christian Subcultures (Jewish, Muslim, Buddhist) Ethnicity and Marketing Strategies African Americans, Hispanic Americans, and Asian Americans Hispanic population is now the largest ethnic subculture (12.5%) Asian Americans (3.6%) are the fastest-growing racial group (due to immigration) Groups hardly as homogeneous as many seem to believe – diversity within groups Defining/targeting an ethnic group is not always so easy (“melting pot” society) Many identify with two or more races Many subcultures have stereotypes associations Subgroups are assumed to possess certain traits (often erroneously) which can be cast either positively or negatively Regional Subcultures Regional subcultures arise as a result of the following: - climate conditions - natural environment and resources - characteristics of the various immigrant groups that have settled in each region, and - significant social and political events. Regional Subcultures Regional Consumption Differences