Major
Consumer
Reference
Groups
Values and Culture:
Cross-Cultural Comparisons.
Are Cultural differences that important
in our modern society ?
If you were on a sinking ship with your wife, your child,
and your mother, each of whom could not swim,
which one would you save, if you could only *
rescue one? *
USA
60% child,
35% wife,
5% mother
Asia
85% mother
* Horton (2001)
* Hofstede (1983)
Why Talk about Cultural
Differences ?
″Differences between national cultures create
important opportunities for growth and
development, but also can cause serious
problems if they are not understood.″
(Mead 1998)
Problems
Communication blunders
When Pepsi started marketing its
products in China a few years back,
they translated their slogan: "Pepsi
Brings You Back to Life" quite
literally. The slogan in Chinese
really meant: "Pepsi Brings Your
Ancestors Back from the Grave."
Clairol, introduced the "Mist
Stick", a curling iron, in
Germany only to find out
that mist is slang for trash or
waste.
“Culture may be thought of as a society’s personality.”
“It includes both abstract ideas, such as values and
ethics, as well as the material objects and services, such
as automobiles, clothing, food, art…that are consumed or
valued by a group of people.” (Hoyer and McInnis, 2001)
“Culture is the accumulation of shared meanings, rituals,
norms and traditions among the members of an
organization or a society.” (Schiffman and Kanuk, 1998)
Two Images for a Better Understanding
of Culture
“Culture can be pictured
as a pair of glasses
through which people
perceive their
environment.”
“Culture and Consumer
Behavior can also be
pictured as a two-way
street.”
Sources of culture
Language
Education
Group (ethnicity)
Family
Social class
Nationality
Profession
Religion
Consumption
Culture: Sharing Values
“Every culture is defined by a set of values
shared by its members.”
Role of Enculturation
Universal
A Relative Importance: A system of values.
The Values Transfusion Model
Values of Society
The Values Transfusion Model
Values of Society
Family
Religious
Institutions
Educational
Institutions
Early
Lifetime
Experiences
The Values Transfusion Model
Values of Society
Family
Religious
Institutions
Peers
Educational
Institutions
Individual
Internalized
Values
Early
Lifetime
Experiences
Media
The Values Transfusion Model
Values of Society
Family
Religious
Institutions
Peers
Educational
Institutions
Individual
Internalized
Values
Society of
Future
Early
Lifetime
Experiences
Media
The Rokeach Value Survey Instrument
TERMINAL VALUES
INSTRUMENTAL VALUES
A COMFORTABLE LIFE
AMBITIOUS
AN EXCITING LIFE
BROAD-MINDED
A WORLD AT PEACE
CAPABLE
EQUALITY
CHEERFUL
FREEDOM
CLEAN
HAPPINESS
COURAGEOUS
NATIONAL SECURITY
FORGIVING
PLEASURE
HELPFUL
SALVATION
HONEST
SOCIAL RECOGNITION
IMAGINATIVE
TRUE FRIENDSHIP
INDEPENDENT
WISDOM
INTELLECTUAL
TERMINAL VALUES
INSTRUMENTAL VALUES
A WORLD OF BEAUTY
LOGICAL
FAMILY SECURITY
LOVING
MATURE LOVE
OBEDIENT
SELF-RESPECT
POLITE
A SENSE OF ACCOMPLISHMENT
RESPONSIBLE
INNER HARMONY
SELF-CONTROLLED
Summary of American Core Values
VALUE
ACHIEVEMENT
AND SUCCESS
ACTIVITY
GENERAL
FEATURES
RELEVANCE TO
CONSUMER BEHAVIOR
Hard work is good;
success flows from
hard work
Keeping busy is
healthy and natural
Acts as a justification for
acquisition of goods
Stimulates interest in products
that are time-savers and enhance
leisure time
EFFICIENCYAND Admiration of things People can improve themselves;
PRACTIALITY
that solve problems
tomorrow should be better than
today. Stimulates desire for new
products that fulfill unsatisfied
needs; ready acceptance of
products that claim to be “new
and improved”
GENERAL
FEATURES
RELEVANCE TO
CONSUMER BEHAVIOR
MATERIAL
COMFORT
“The good life”
Fosters acceptance of
convenience and luxury products
that make life more comfortable
and enjoyable
INDIVIDUALISM
Being oneself
Stimulates acceptance of
customized or unique products
that enable a person to express his
or her own personality
FREEDOM
Freedom of choice
Fosters interest in wide product
lines and differentiated products
EXTERNAL
CONFORMITY
Uniformity of
Stimulates interest in products
observable behavior; that are used or owned by others
desire for acceptance in the same social group
VALUE
GENERAL
FEATURES
RELEVANCE TO
CONSUMER BEHAVIOR
HUMANITARIANISM
Caring for others,
particularly the
underdog
Stimulates patronage of firms that
compete with market leaders
YOUTHFULNESS
A state of mind that
stresses being
“young at heart” and
having a youthful
appearance
Stimulates acceptance of products
that provide the illusion of
maintaining or fostering
youthfulness
FITNESS AND
HEALTH
Caring about one’s
body, including the
desire to be
physically fit and
healthy
Stimulates acceptance of food
products, activities, and
equipment perceived to maintain
or increase physical fitness
VALUE
Example of Value use in
Advertising: Molson Canadian
Reinforcement of NationalismPatriotism:
Survey
Product, Communication and
positioning.
Canadian difference reinforced.
1-2-3-4-5-6
American Core Values
American values and advertising
Which core values provide appeals
for advertising?
Understanding values helps
advertisers avoid violating norms or
standards of society
Sometimes advertisers shock
consumers by “breaking the rules”
Symbol
Anything that stands for
something else. Symbols can
be verbal or nonverbal.
Ritual
A type of symbolic activity
consisting of a series of steps
(multiple behaviors)
occurring in a fixed
sequence and repeated over
time.
Selected Rituals and Associated
Artifacts
SELECTED RITUALS
TYPICAL ARTIFACTS
Wedding-2
White gown (something old, something new, something
borrowed, something blue)
Birth of child
U.S. Savings Bond, silver baby spoon
Jogging
Towel, exercise clothes, water, portable tape player
50th Wedding Anniversary
Catered party, card and gift, display of photos of the
couple’s life together
Graduation
Pen, U.S. Savings Bond, card, wristwatch
Valentine’s Day
Candy card, flowers
New Year’s Eve
Champagne, party, fancy dress
Thanksgiving
Prepare a turkey meal for family and friends
SELECTED RITUALS
TYPICAL ARTIFACTS
Jogging
Towel, exercise clothes, water, portable tape player
Sunday football
Beer, potato chips, pretzels
Super Bowl Party
Same as Sunday football (just more)
Starting a new job
Get a job promotion
Get a haircut, buy some new clothing
Taken out to lunch by coworkers, receive token gift
Retirement
Company party, watch, plaque
Death
Send a card, give to charity in the name of the deceased
Classifying and Comparing Cultures
4 dimensions (Hofstede, 1980)
Power Distance
Uncertainty Avoidance
Masculinity/Feminity
Collectivism/Individualism
Period artifact, sample, attitude-survey, (Horton et al, 2001;
Sondegaard, 1994)
Cross-Cultural Marketing
Adaptation
 Local standards
 Local hygiene and safety
standards
 Local particuliarities in
service, maintenance and
distribution
 Avoidance of unfavorable
image of imported products,
companies, nationality or
brand names
 Cultural adequate use of
symbols possible
Standardization
 Use of:
 Experience effects
 Economies of scale
 International standards
 International use of products
 Significant learning effects
 Use of favorable image of
imported products,
companies, nationality or
brands, exotic or ethnic
appeal
Subculture
 “ Groups whose members share beliefs and
common experiences that set them apart from
other members of a culture”
 “A distinct cultural group that exists as an
identifiable segment within a larger,
more complex society.”
Relationship Between Culture and
Subculture
Subcultural
Traits
of Hispanic
Americans
Dominant
Cultural
Traits of
U.S. Citizens
Subcultural
Traits
of Asian
Americans
Examples of Major Subcultural
Categories
CATEGORIES
Nationality
Religion
Geographic region
Race
Age
Gender
Occupation
Social class
EXAMPLES
French, Puerto Rican, Korean
Catholic, Hindu, Jew
Southeastern, Midwestern,
Eastern
African-American, Caucasian,
Asian-American
Y, Xers, middle age, elderly
Female, Male
Engineer, cook, plumber
Lower, middle, upper
L if estyle Segmentation
Duck Head Targets
a casual student
lif estyle.
Lifestyle Studies
How time is spent
Importance of things
around them
Beliefs
Socioeconomic
characteristics
What types of
H student lifestyles
do the following
companies target:
•Tommy Hilfiger?
•Gap?
•DKNY?
•Pacific Sunwear?
Click or press spacebar to return.
VALS 2 - LIFESTYLE SEGMENTATION
Abundant Resources
Principle Oriented Status
Oriented Action
Oriented
Minimal Resources
Source: VALS 2, SRI International
VALS 2 - LIFESTYLE SEGMENTATION
Abundant Resources
Principle Oriented Status
Oriented Action
Oriented
FULFILLED
11%
BELIEVERS
16%
Minimal Resources
VALS 2 - LIFESTYLE
SEGMENTATION
ACTUALIZERS
8%
Principle Oriented Status
Abundant Resources
Oriented Action
FULFILLED
11%
ACHIEVERS
13%
BELIEVERS
16%
STRIVERS
13%
STRUGGLERS
12%
Oriented
Minimal Resources
VALS 2 - LIFESTYLE
SEGMENTATION
ACTUALIZERS
8%
Principle Oriented Status
Abundant Resources
Oriented Action
Oriented
FULFILLED
11%
ACHIEVERS
13%
EXPERIENCERS
12%
BELIEVERS
16%
STRIVERS
13%
MAKERS
13%
STRUGGLERS
12%
Minimal Resources
Subcultures
 Ethnic Subculture
 The US situation (plurality and main groups)
 Ethnic groups geographically concentrated
 Effect of Immigration
 Major changes
Intercultural Influence
When and how cultural changes happen?
Acculturation and ethnic Identity
Unidimensional versus bi-level.
Acculturation
Strong Acc
Strong Et Id
Individual A
Individual A
Individual A
Ethnic identity
Weak Acc
Weak Et Id
Measures: Social Participation, Language, Religion…..
U.S. Ethnic Landscape :
Cues for Reflection
Source: Claritas, 2003
Targeting
HispanicAmerican
Consumers
Challenges for Ethnic Marketing in the U.S.
Privacy and Redlining : ethical issues
Preconceived perceptions of ethnic groups
Diversity within an ethnic group and constant
evolution of ethnicity: Post Ethnic America.
Issues in Studying Hispanic
American Subcultures

Hispanic Consumer Behavior
– Stronger preference for well-established brands
– Prefer to shop at smaller stores
– Some are shifting food shopping to non-ethnic
American-style supermarkets
– Youths are more fashion-conscious
Ways in Which “Hispanic” Has Been Defined
NAME OF
INDICATOR
NATURE/SCOPE AND COMMENTARY
Spanish
surname
Not a definitive; since a non-Hispanic person might have a
Spanish surname, or an Hispanic person might have a nonSpanish surname.
Country of
origin
The birthplace of persons born in the Untied States of Hispanic
parents would not reveal their Hispanic background.
Country of
family ancestry
Includes those individuals who may not be Hispanic despite
coming form a particular Spanish-Latin country.
Spanish spoken
at home
A significant minority of Hispanic households may speak
English at home, yet consider themselves to be cultural
Hispanic.
Selfidentification
It is reasonable that if an adequate number of self-report
choices are offered, a person might identify himself or herself as
“Hispanic.”
Degree of
identification
This measure captures the “degree” of personal identification
as “Hispanic” and augments the self-identification measure.
Figure 13.4 Hispanic Linguistic
Challenge
Bilingual/ prefer
Spanish
Bilingual/ no
preference
Bilingual/ prefer
English
Spanish only
English only
Reaching the AfricanAmerican Audience

Two Alternate Strategies
– Running all the advertising in
general mass media
– Running additional advertising
at special advertising in selected
media directed exclusively to
African-Americans
Asian-American Consumers

Where Are the Asian-Americans?
– Largely urban

Asian-Americans As Consumers
– Buying power of $110 billion
annually
– Brand loyal customers
– Frequently male-oriented consumer
decisions
– Attracted to retailers who welcome
Asian-American patronage
Facts and Figures regarding Ethnic Markets
Facts and Figures regarding Ethnic Markets
Regional Influences

Regions Within the United States
– Nine Nations of North America
Exhibit 13.3a: The “Nine Nations of North America”
Source: Journal of Marketing. Art reprinted by permission.
Table 13.4 Product Purchase/Usage by
Leading Metropolitan Market
PRODUCT PURCHASE/USAGE
Own Rollerblades/in-line skates
New domestic car
HIGHEST
PURCHASE/
USAGE
Detroit
Detroit
LOWEST
PURCHASE/
USAGE
Dallas
San Francisco
New imported car
Have life insurance
Drink Scotch whiskey
Purchased men’s jeans
Have a bowling ball
Washington, D.C.
Cleveland
Dallas
Cleveland
Detroit
Detroit
San Francisco
Cleveland
New York
Boston
Use eyeliner
Use artificial sweeteners
Used cough syrup (past 6 months)
Popcorn (past 6 months)
Lottery tickets (past 12 months)
Dallas
Dallas-Fort Worth
Chicago
Detroit
Cleveland
Philadelphia
San Francisco
Washington, D.C.
New York
Washington, D.C.
Major Age Subcultures
Generation X
Market
Generation Y
Market
Seniors
Market
Baby Boomer
Market
Age and Challenges
Age
Challenges
Implications:
Kids and Tweens
Having cool stuff
Making friends
Teens
Fitting in
Rebelling
Dating
Young Adult
College
Job
Car
Housing and furnishings
Marriage/Committed partner
Children
Middle Adult
Children
Bigger house and more furnishings
Aging parents
Managing time
Older Adult
Retirement
Managing health
Maintaining social relations
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
Kids

Brand Formation
– 98% of kids aged 9-13 know what car they would like
–
–
–
–
–
–
to drive when they grow up.
97% know the best brand of athletic shoe.
93% know the best store to buy athletic shoes.
90% know the best store to buy clothing with sports
team logos.
84% know the best brand of computer.
77% know the best hotel.
75% know the best brand of camera.
Source: Sports Illustrated for Kids 1997 Omnibus Studies.
Kids: What Makes A Kid Cool?
Wears the right brand of clothes
74
Is good looking
74
Gets good grades
80
Listens to the coolest music
82
Jokes a lot
84
Always happy
87
Very good at sports
88
65
70
75
80
85
90
Kids

93% of kids between 9 and 13 influence what
kinds of jeans their parents buy for them.
 89% influence the kind of cookies, desserts, soda,
chips and cereal purchased for their household.
 61% of kids said they helped their parents decide
what kind of family car to buy.
 41% of kids whose parents bought a new car took
the kids with them when car shopping.
Source: Sports Illustrated for Kids 1997 Omnibus Studies.
Love and Generation Y

Grew up with working mothers, divorce, threat of AIDs.
 Searching for a soul-mate.
 82% of 18-24 say motherhood is the most important job in
the world, compared to 72% of Generation X’ers.
 24% of 18-24 say sex before marriage is not wrong at all,
compared to 48% of those 45-54.
 Dating Safety trends
–
–
–
–
Meeting in coffee bars
Group dates
Blockbuster nights
Finding love online: love@aol (125,000 ads year round, 43,000 from
18-25 year oldschat rooms “go voice” actual meeting)
Cyber Vows chat room (reception for the new millennium).
Source: Helene Stepinski, “Y Not Love”, American Demographics, February 1999.
Generation
Y
Born between 1977
and 1994; also called
echo boomers and
millennium
generation
Gen Y Adult
Appeal
Generation X
Born between 1965
and 1979; post baby
boomer segment (also
referred to as Xers or
busters).
Baby
Boomers
Individuals born
between 1946 and
1964 (approximately
45% of the adult
population).
Baby Boomers

The largest age category alive today
 Frequently make important consumer
purchase decisions
 Include a small subsegment of trendsetting
consumers (yuppies) who influence
consumer tastes of other age segments
Application

Sony is introducing a new 27-inch TV with
a picture-in-picture feature. How should the
company position and advertise the product
to (a) generation X consumers and (b)
affluent baby boomers?
Ex 1 - 2
Appealing
to Yuppies
Seniors
Generally older
consumers. Consist of
subcultures, including
the 50-plus market and
the “elderly consumers”
market.
Three Senior Subsegments

The Young-Old (65-74)
 The Old (75-84)
 The Old-Old (85 and older)
Issues in Understanding Sex
as a Subculture

Sex Roles and Consumer Behavior
– Masculine vs. Feminine Traits

Sexual Orientation
– Segmentation Issues
– Shopping Patterns
Religious Subcultures

200+ organized religious groups in the U.S.
 Primary organized faiths include:
– Protestant denominations
– Roman Catholicism
– Judaism or other

Consumer Behavior is directly affected by
religion in terms of products that are
symbolically and ritualistically associated
with the celebration of religious holidays
Ad
Containing
Kosher
Indicator
Subcultures of Consumption
“Vert” Marketing
“Pink” Marketing
Sports Marketing
Application

Using one of the subculture presented,
identify a group that can be regarded as a
subculture within the university. Describe
the norms, values and behaviors of the
subculture members. How would marketers
reach this group?