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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, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800– 423– 0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

CHAPTER 11 Culture, Ethnicity, and Social Class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

What Is Culture? A set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences Ethnicity Race Religion Regional or national identity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences Ethnicity Race Religion Regional or national identity CULTURE COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences Ethnicity Race Religion Regional or national identity CULTURE Abstract/behavioral Values Norms Rituals Symbols Physical/material Artifacts Technology Infrastructure COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

What Is Culture? Abstract elements: values, attitudes, ideas, personality types, and summary constructs such as religion or politics Symbol may evolve to represent a culture Symbols (with three components of language, aesthetic styles, and story themes) often act as shorthand for a culture, defining its characteristics and values similar to a brand COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

What Is Culture? Material components (cultural artifacts): include such things as books, tools, buildings, and specific products Products provide symbols of meaning Products may be used in ritual behavior such as food eaten on certain holidays Material components may become icons such as Mc. Donald’s arches COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Values and Norms: rules of behavior held by a majority or at least a consensus of a group about how individuals should behave Cultural (social) values: values shared broadly across groups of people Personal values: terminal (goals) or instrumental (behaviors) beliefs of individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Values and Norms Values and norms represent the beliefs of various groups within a society Macroculture: values and symbols that apply to an entire society or most of its citizens Microculture: values and symbols of a restrictive group or segment of consumers, defined according to variables such as age, religion, ethnicity, or social class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Values and Norms Socialization: the process by which people develop their values, motivations, and habitual activity The Values Transfusion Model shows how the values of a society are reflected in families, religious institutions, and schools, all of which expose and transmit values to individuals COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Values and Norms People adopt values that influence how they live, how they define right and wrong, how they shop, and what is important to them The values adopted by individuals today shape the values of society in the future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Values of Society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Values of Society Family Religious Institutions Educational Institutions Early Lifetime Experiences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Values of Society Family Religious Institutions Peers Educational Institutions Individual Internalized Values Early Lifetime Experiences Media Society of Future COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Family Religious Institutions Educational Institutions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Adapting Strategies to Changing Cultures 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 behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Adapting Strategies to Changing Cultures Advertising and marketing efforts have difficulty changing behaviors or norms learned early in life COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

How Culture Affects Consumer Behavior: Pre-purchase and Purchase Activities Consumption and Divestment Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influence of Culture on Prepurchase and Purchase Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influence of Culture on Prepurchase and Purchase Activities Culture affects what consumers think they need and what they perceive as frivolous Culture affects how consumers are likely to search for information Culture affects the importance placed on certain attributes of alternatives Culture affects the amount of price negotiation during the purchase process COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influence of Culture on Consumption and Divestment Activities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influence of Culture on Consumption and Divestment Activities Culture affects how consumers use or consume products Consumers’ expectations about form and function vary between cultures Culture influences how individuals dispose of products—reselling products after use, giving them to others for use, or recycling them and their packaging when possible COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

How Core Values Affect Marketing Core values define how products are used in a society Core values define acceptable market relationships Core values define ethical behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Values Society’s values change continuously even though core values are relatively permanent Changes in values may alter the response to advertising, service offerings, and retailing formats COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Values Life-cycle explanation: values change according to life-cycle (as individuals grow older, their values change) Theory of behavioral assimilation: Younger people grow into the values of their parents as they get older Generational change: gradual replacement of existing values by those of young people who form the leading generation in value terms COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Values Transfusion Model Cultural Transfusive Triad Family Religious Institutions Educational Institutions Early Lifetime Experiences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family Influences Less time for in-home or parentchild influence Increasing divorce rates Isolated nuclear family (geographic separation of generations) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Religious Influences Traditional churches and religions have seen a decline in loyalty Increase in non-Christian religions A shift from traditional religion to spirituality Women are more religious Religion and spirituality are big business and influence big business COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Educational Influences Dramatic increase in formal education Teaching has evolved from memorization to questioning Digital learning has increased in popularity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influence of Age-Related Microcultures on Values Cohorts: a group of individuals linked as a group in some way— usually by age Cohort analysis: investigates the actual changes in patterns of behavior or attitudes in a cohort, those attributed to the process of aging and those associated with the events of a particular period COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts The Depression Cohort The World War II Cohort The Postwar Cohort Leading Edge Boomers Cohort Trailing Edge Boomers Cohort The Generation X Cohort N Generation Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts The Depression Cohort The World War II Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts The Postwar Cohort Leading Edge Boomers Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts The Postwar Cohort Leading Edge Boomers 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. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts Trailing Edge Boomers Cohort Generation X Cohort COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts Trailing Edge Boomers 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. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Age Cohorts N Generation Cohort Millenials Born 1977 -1984 The advent of the Internet is defining for N-Gens with a different core value structure than Gen X. More idealistic and team oriented. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

National Culture Individualism versus collectivism COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Individualism Self-construal Collectivism Defined by internal attributes and personal traits Self Defined by important others, family, friends Role of Others -evaluation Self-definition Values Emphasis on individuality and separateness Emphasis on relationships and connectedness Differe ntiation, need to be unique Focu s on similarity, need to blend in Motivational drives Behavi or Reflecti ve of personal preferences, needs Influenced by personal preferences, needs COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 institutions Masculinity-femininity COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

National Culture Geographic culture: cultures may exist for an entire country, but areas within a nation sometimes develop their own culture Climate, religious affiliations, nationality influences, and other variables are interrelated to produce a core of cultural values in a geographic area COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

North American Core Values Foundation of American values and advertising What are the core values that provide appeals for advertising? Marketers are most successful when they appeal to core values based on hard work, achievement and success, optimism, and equal opportunity for a better standard of living COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

North American Core Values Foundation of American values and advertising Understanding values helps advertisers avoid violating norms or standards of society COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

How Marketers Adapt to Core American Values Material Well-Being Twofold Moralizing Importance of Work over Play Time Is Money Effort, Optimism, and Entrepreneurship Mastery over Nature Egalitarianism Humanitarianism COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Ethnic Microcultures and Their Influences on Consumer Behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Ethnic Microcultures and Their Influences on Consumer Behavior An Subjectivist perspective reflects ascriptions people make about themselves An Objectivist definition is derived from sociocultural categories COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Ethnic Microcultures and Their Influences on Consumer Behavior Ethnicity is an important element in determining culture and predicting consumer preferences and behavior A subjectivist perspective reflects ascriptions people make about themselves, while an objectivist definition is derived from sociocultural categories COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

America’s Ethnic Microcultures Euro-Descent Americans COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

America’s Ethnic Microcultures Euro-Descent Americans Most Euro-Descents come from England, Germany, and Ireland European immigration declined for many years, but increased in recent years due to immigration after the fall of Communism Group tends to have a fairly high savings rate although they like to spend on material items COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

America’s Ethnic Microcultures Native American Culture Native Americans include American Indians, Alaskan Eskimos, Native Hawaiians and Canadian aboriginals Some Native Americans dislike sharing their culture and spiritual practices with outsiders while others welcome people of any race into their culture Increased consumer demand for Native American products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

America’s Ethnic Microcultures Multiethnic Microcultures Includes people from multiple ethnic backgrounds How will each of these influences affect behavior and values? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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, usually the mass market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Black or African-American Culture Refers more to a common heritage rather than to a skin color Controversy over proper terminology still exists and most marketers opt for term Black/African American Has a population base of 32 million with growing buying power COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Black or African-American Culture Structural Influences Black families have lower than average incomes, although incomes have risen in recent years 25% of black households had incomes of $50, 000 or more by 2003 24. 4% still live under poverty line Higher education has become a priority for many young African. American people COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 The effects of discrimination mean that some black consumers are skeptical or sensitive of white businesses COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 (hip-hop clothing lines) 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 bargaining over prices COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Advertisements Appealing to the Asian-American Market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Latino (Hispanic) Culture Rapid growth, size, and language have fueled interest in this microculture Latinos recently surpassed African. Americans as the largest minority group in the United States Great diversity among members of this group make it a heterogeneous segment of wants and behaviors COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Latino (Hispanic) Culture Who is Latino? Language and cultural identity, rather than national origin, are key elements in Latino culture Latino describes Americans whose origins are in the Spanish-speaking countries of the Western world Latino consumers are often segmented into four groups: Mexicans, Puerto Ricans, Cubans, and others COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Latino (Hispanic) 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 is younger than non. Latino white population COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Advertisements Appealing to the Latin-American Market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Latino (Hispanic) Culture Consumption Patterns Latin culture is affecting tastes and preferences of the majority culture 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 which they believe are for “people who can’t afford to pay full price” COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Latino (Hispanic) Culture Avoiding Marketing Blunders Translation problems Culture misunderstandings Latino idiosyncrasies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

French-Canadian Culture One of the largest and most distinct cultures in North America Quebec accounts for more than 23 percent of the Canadian population Firms marketing in Canada often use two campaigns: one for English - and one for French- Canadians Other times the same ad is used for both segments COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Concrete variables that define social classes include occupation, education, friendships, ways of speaking, and possessions Perceived variables that define social class include power, and prestige Social class, in part, determines the mix of goods consumers will buy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Whereas classes are stratified based on relations to production and acquisition of goods, status groups are stratified based on lifestyles and principles of consumption of goods COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures What determines social class? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures What determines social class? Economic Variables Interaction Variables Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures What determines social class? Economic Variables Occupation Income Wealth Interaction Variables Personal Prestige Association Socialization Political Variables Power Class consciousness Mobility COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Consumer analysts often focus on six variables which determine social class COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Consumer analysts often focus on six variables which determine social class Occupation Personal performance Interactions Possessions Value orientations Class consciousness COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Value orientations: values are indicators of our social class In some countries, 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class Microcultures Social stratification: perceived hierarchies in which consumers rate others as higher or lower in social status Achieved status: earn a higher status due to work or study Ascribed status: lucky to be born wealthy or beautiful Status inconsistency: when a person rates high on one variable and low in another (some athletes or musicians) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 using the word “ain’t” to proclaim distaste) Some consumers rebel against their social class by becoming part of a counterculture (perhaps by body piercing or tattooing) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Social Class and Consumer Behavior Products can be positioned as brands appealing to upper social classes (Heineken and Amstel Light) or have every person appeal (Budweiser) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Positioning Based on Social Class Understanding social class helps marketers create perceptions about products or organizations in consumers’ minds Appeal to those who are in a social class and those who aspire to be there COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Positioning Based on Social Class Brands such as Coach and Godiva are positioned to middle class consumers with simple, sleek ads Wanting it all is a hallmark of the middle class and buying the best on at least a few occasions sets them apart and bolsters their selfimage COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.