CHAPTER 11 Culture, Ethnicity, and Social Class Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition Copyright© 2001 by Harcourt, Inc. What is Culture? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blueprint of human activity, determining coordinates of social action and productive activity Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society Blueprint of human activity, determining coordinates of social action and productive activity A set of socially acquired behavior patterns transmitted symbolically through language and other means to the members of a particular society Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Influences Ethnicity Race Religion Regional or national identity Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Influences Ethnicity Race Religion Regional or national identity CULTURE Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Influences Ethnicity Race Religion Regional or national identity CULTURE Abstract/Behavioral Values Norms Rituals Symbols Physical/Material Artifacts Technology Infrastructure Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What is Culture? Abstract elements: values, attitudes, ideas, personality types, and summary constructs Symbol may come to represent a culture Symbols (with three components of language, aesthetic styles, and story themes) often act as shorthand for a culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What is Culture? Material components (cultural artifacts): include such things as books, computers, buildings and specific products Products provide symbols of meaning Products may be used in ritual behavior Material components may become icons Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Characteristics Influenced by Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Characteristics Influenced by Culture Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Characteristics Influenced by Culture Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices Used to define and differentiate cultures Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Values and Norms Norms: rules of behavior held by a majority or at least a consensus of a group about how individuals should behave Cultural values: values shared broadly across groups of people Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Values and Norms Norms: rules of behavior held by a majority or at least a consensus of a group about how individuals should behave Cultural values: values shared broadly across groups of people Macroculture: values and symbols that apply to a society or most of its citizens Microculture: values and symbols of a restrictive group or segment of consumers (also called subcultures) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Values and Norms Socialization: the process by which people develop their values, motivations, and habitual activity The Values Transfusion Model describes how and where people get their values Shows how people adopt values that influence how they live, how they define right and wrong, how they shop, and what is important to them Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. The Values Transfusion Model Values of Society Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. The Values Transfusion Model Values of Society Family Religious Institutions Educational Institutions Early Lifetime Experiences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Society of Future Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Cultural Transfusive Triad Family Religious Institutions Educational Institutions Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Values and Norms Culture is adaptive, and marketing strategies based on values of society must also be adaptive Marketers must address consumer socialization: the acquisition of consumption-related cognitions, attitudes, and behaviors. Advertising and marketing efforts have difficulty changing behaviors or norms learned early in life Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. How Culture Affects Consumer Behavior: Pre-purchase and Purchase Activities Consumption and Divestment Activities Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Culture Influences Pre-purchase and Purchase Activities Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Culture Influences Pre-purchase and Purchase Activities Culture affects what consumers think they need and what they perceive as frivolous Culture affects how and how much they search for information Culture affects the importance placed on various attributes of alternatives Culture affects the purchase process-how consumers buy, what they expect, and even how they negotiate Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Culture Influences Consumption and Divestment Activities Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Culture Influences Consumption and Divestment Activities Culture affects what consumers expect from a product Consumers’ expectations about form and function are influenced by culture Culture influences how consumers dispose of products--how much is consumed and whether or not consumers recycle products or packaging Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. How Core Values Affect Marketing Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. How Core Values Affect Marketing Core values define how products are used in a society Core values provide positive and negative valences for brands and communication programs Core values define acceptable market relationships Core values define ethical behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Values Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Values Life-cycle explanation: values change according to life-cycle (people’s values changes as they get older) Theory of behavioral assimilation: Children begin to “see things” like their parents do as they get older Generational change: gradual replacement of existing values by those of young people who form the “leading” generation in value terms Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Values Will people become more like their parents as they get older, or will they carry with them the values of their generation? Depends on elements in the Cultural Transfusive Triad and early lifetime experiences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Cultural Transfusive Triad Family Religious Institutions Educational Institutions Early Lifetime Experiences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Family Influences Less time for in-home or parentchild influence Increasing divorce rates Isolated nuclear family (geographic separation of generations) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Religious Influences Decline in loyalty to traditional churches and religions Increase in non-Christian religions Shift from traditional religion to spirituality Women becoming more religious The big-business of religion and spirituality Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Changing Educational Influences Increase in formal education Teaching: from memorization to questioning Internet teaching and distance learning Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Influence of Age-related Microcultures Cohorts: a group of individuals linked as a group in some way-usually by age Cohort analysis: focuses on the actual changes in the behavior or attitudes of a cohort, the changes attributed to the process of aging, and those associated with events of a particular period Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Depression Cohort The World War II Cohort The Postwar Cohort The Boomers I Cohort The Boomers II Cohort The Generation X Cohort Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Depression Cohort The World War II Cohort Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Depression Cohort The World War II Cohort The G.I. Generation Depression Generation Born 1912-1921 Born 1922-1927 Living through the Depression has deeply affected this group--they save a lot and spend little. This group was unified by a common goal and enemy. This was the first group to be influenced by contemporary media. It exhibits self-denial characteristics that have outlived the war, especially among veterans and their families. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Postwar Cohort The Boomers I Cohort Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Postwar Cohort The Boomers I Cohort The Silent Generation Woodstock Generation Born 1928-1945 Born 1946-1954 Generation of war babies benefited from years of economic growth and social tranquility. The Kennedy and King assassinations meant an end to status quo and unified this vast cohort. The youngest were the first to listen to folk rock music. Early boomers pushed for lifestyles at least as good as their parents. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Boomers II Cohort Generation X Cohort Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Age Cohorts The Boomers II Cohort Generation X Cohort Zoomers Baby-busters Born 1955-1965 Born 1966-1976 After Watergate, the idealistic youth disappeared, giving rise to the self-help movement. A generation of kids raised in daycare and with divorce is born. Searching for an anchor, many resort to “retro” behaviors. In an age of downward mobility, debt became a way to maintain lifestyle. “What’s in it for me” cynicism is prevalent. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Philips appeals to a young age cohort with this ad. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. National Culture Individualism versus collectivism Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Individualism Self-construal Defined by internal attributes and personal traits Collectivism Defined by family, important others, and friends Role of Others Self-evaluation Self-definition Values Emphasis on individuality and separateness Emphasis on relationships and connectedness Motivational drives Differentiation, need to be unique Focus on similarity, need to blend in Behavior Reflective of personal preferences Reflective of personal preferences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. National Culture Individualism versus collectivism Uncertainty avoidance: how societies react to uncertainties inherent in life Power distance: the degree to which a society accepts inequality in power at different levels in organizations and government Masculinity-femininity Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. National Culture Geographic culture: cultures may exist for an entire country, but regions within the country may develop their own cultures Climate, religious affiliations, nationality influences, and other variables can affect culture on a regional level Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. North American Core Values Foundation of American 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” Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Core Values Provide Appeals to Marketers Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Core Values Provide Appeals to Marketers Material Well-Being Twofold Moralizing Importance of Work over Play Time is Money Effort, Optimism, and Entrepreneurship Mastery over Nature Egalitarianism Humanitarianism Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Ethnic Microcultures and Their Influences on Consumer Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Tommy Hilfiger features a multiethnic group of young people in this ad to represent “the real America” Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Immigrants bring with them new religions, cultures, and languages Acculturation: measures the degree to which a consumer has learned the ways of a different culture compared to how they were raised Just as individuals adapt to cultural changes, so do companies Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Euro-descent Americans Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Euro-descent Americans Most Euro-descent come from England, Germany, and Ireland European immigration declined for many years, but increased in recent years due to immigration from former Eastern block countries Group tends to have a fairly high savings rate Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Euro-descent Americans Most Euro-descent come from England, Germany, and Ireland European immigration declined for many years, but increased in recent years due to immigration from former Eastern block countries Group tends to have a fairly high savings rate Native American Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Multiethnic Microcultures Includes people from multiple ethnic backgrounds How will each of these influences affect behavior and values? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. America’s Ethnic Microcultures Multiethnic Microcultures Includes people from multiple ethnic backgrounds How will each of these influences affect behavior and values? Transcultural marketing research: gathers data from specific ethnic groups and compares these data to those collected from other markets Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. U.S. Population by Race and Ethnic Group Asian Black Hispanic American Indian White, Non-Hispanic 2000 4% 12% 11% 1% 72% 2025 6% 13% 18% 1% 62% Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. 2050 8% 14% 24% 1% 53% All rights reserved. U.S. Households and Incomes Number of Households (millions) Median Income White 77.9 $40,600 African American 12.2 $25,100 Asian 3.1 $45,400 American Indian 0.7 $29,200 Hispanic 8.6 $26,600 Source: Population Reference Bureau, Population Bulletin, September 1999, 23 and 26. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Black or African-American Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Black or African-American Culture Structural Influences Black families have lower than average incomes, although incomes have risen in recent years 21% of black households had incomes of $50,000 or more by 1997 33% still live under poverty line Higher education has become a priority for many African American young people Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Black or African-American Culture Structural Influences A high proportion of families are headed by women Black women influence many purchases that might otherwise be purchased by men Advertising often appeals to the strength black women portray in life Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Black or African-American Culture Consumption Patterns African American consumers view magazines such as Ebony and Essence as credible sources Firms target products to black consumers (Jordan cologne) and for the special needs of black consumers (special make-up products) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Jordan cologne, advertised by basketball legend Michael Jordan and his wife, is not targeted exclusively to black consumers; yet the appeal of this product in this segment is substantial. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Black or African-American Culture Consumption Patterns African American consumers view magazines such as Ebony and Essence as credible sources Firms target products to black consumers (Jordan cologne) and for the special needs of black consumers (special make-up products) Advertisers have also increased the number of black models and spokespersons used in campaigns Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Asian-American Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Asian-American Culture Includes: Chinese, Japanese, Koreans, Vietnamese, Cambodians, Laotians, Filipinos, Asian Indians, Pakistanis, Hawaiians, Samoans, Fiji Islanders, and others This market is expected to continue to grow in the future, and may reach 20 million consumers in the early part of the century Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Asian-American Culture Structural Influences Asian-Americans have higher than average incomes and 53% of households have two income earners Highest rate of education among any U.S. population category Emphasis on strong family ties, hard work, and education Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Asian-American Culture Consumption Patterns Marketers find that it is effective to reach Asian-Americans through mass media, including cultural and foreign language publications Some consumers are accustomed to negotiating prices Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Rapid growth, size, and language have fueled interest in this microculture By 2015, experts believe Hispanics will outnumber African-Americans because of immigration and birth rates Great diversity among members of this group make it a heterogeneous segment of wants and needs Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Who is Hispanic? Language and identity, rather than national origin, are key elements in Hispanic culture Hispanic describes Americans whose origins are in the Spanish-speaking countries of the Western world Hispanic consumers are often segmented into four groups: Mexicans, Puerto Ricans, Cubans, and others Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Structural Influences Fastest growing market in the U.S. Buying power around $340 billion, with Cuban-Americans having the highest income in this group Education level is increasing This segment values family (has higher birth rates and larger families) Average age is younger than nonHispanic white population Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Toyota appeals to family and safety for children with this Spanish language ad Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Consumption Patterns Hispanic culture is affecting tastes and preferences of the majority culture (especially in food and music) They watch almost as much television as average American, but much time is spent watching Spanish-language programming Tend to shy away from using coupons they believe are for “people who can’t afford to pay full price” Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hispanic or Latino Culture Avoiding Marketing Blunders Translation problems Culture misunderstandings Hispanic idiosyncrasies Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. French-Canadian Culture Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. French-Canadian Culture One of the largest and most distinct cultures in North America Quebec accounts for more than 27 percent of the Canadian population Firms marketing in Canada often use two campaigns: one for English- and one for FrenchCanadians Other times they use the same ad for both segments Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Social class: relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values, lifestyles, interests, wealth, status, education, economic positions, and behavior can be categorized Social class is not the same thing as income Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Concrete variables that define social classes include occupation, education, friendships, ways of speaking, and possessions Perceive variables include power, prestige, and class Social class, in part, determines which products consumers will buy Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Status groups: reflect community’s expectations for style of life among each class as well as the positive or negative social estimation of honor given to each class Classes are stratified based on relations to production and acquisition of goods, status groups stratified based on lifestyles and principles of consumption of goods Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures What determines social class? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures What determines social class? Economic Variables Interaction Variables Political Variables Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Political Variables Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables Power Class consciousness Mobility Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Consumer analysts often focus on six variables which determine social class Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Consumer analysts often focus on six variables which determine social class Occupation Personal performance Interactions Possessions Value orientations Class consciousness Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Occupation: best single indicator of social class Personal performance: a person’s success relative to that of others (often in the same occupation) Interactions: the people with whom one associates and socializes Possessions: symbols of class membership Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Value orientations: values are indicators of our social class In some cultures, values are more important than possessions and social class is determined more by achievements than by possessions Class consciousness: the degree to which people in a social class are aware of themselves as a distinctive group Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Social stratification: perceived hierarchies in which consumers rate others as higher or lower in social status Achieved status: earned by work or study Ascribed status: acquired status due to luck (born wealthy) Status inconsistency: when a person rates high in one category and low in another (some athletes) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Social mobility: process of passing from one social class to another Parody display: the mockery of status symbols and behavior (upper class individuals wearing old jeans with holes in them) Some consumers rebel against their social class by becoming part of a counterculture (as shown in Benetton ads) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social class microcultures are featured in these ads for Palm Pilot and Benetton Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Products can be positioned as brands appealing to upper social classes (as Godiva and Mercedes have done) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Microcultures Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Market Segmentation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Social Class Market Segmentation Identification of social class usage of the product Comparison of social class variables for segmentation with other variables Description of social class characteristics identified in target markets Development of marketing program to maximize effectiveness of marketing mix based on consistency with social class attributes Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Positioning based on Social Class Understanding social class helps marketers create perceptions about products or organizations in consumers’ minds Appeal to those in a social class and those who aspire to be there Brands such as Godiva and Escada are positioned to upper social class consumers with simple, sleek ads Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc. 6277 Sea Harbor Drive Orlando, Florida 32887-6777 Copyright© 2001 by Harcourt, Inc. All rights reserved.