Influence of Subculture on Consumer Behavior

1. Environment Influences on Consumer Behavior
(Subculture)
Chapter 4
Lecturer: Abdul Mubeen Rashidi
Ministry of Higher Education
Mashal University
BBA Department
4th Semester
Consumer Behavior

2. Culture can be divided into subcultures. A subculture is an identifiable distinct,
cultural group, which, while following the dominant cultural values of the overall
society also has its own belief, values and customs that set them apart from
other members of the same society.

3.  Nationality: Afghan, Indian, Sri Lanka,
 Religion: Islam, Hinduism
 Race: Asian, black, white
 Age: young, middle aged, elderly
 Sex: Male, Female
 Occupation: Farmer, teacher, business
 Social class: upper, middle, lower
 Geographic regions: South India, North-eastern India
Sub-culture categories are:

4. Countries have number of different ethnic groups, and population trends will
dramatically alter the demographic profile of the country. In spite of its diversity,
marketing strategies can be developed for this group.
And also is a self-perpetuating group of consumers who share a common
cultural or genetic ties, where both its members and others recognize it as a
distinct category. African Americans, Hispanic Americans, and Asian Americans
are the three most important ethnic/racial subcultures in the United States

5. Black Subculture: Demographic characteristics: Black people more likely than
whites to live in crowded, poorer neighborhoods of large cities.
Size : they are 30 million people,12% of total American market.
Location: they often change their locality but their population is south America
which is 56%. While the immigrants are approximately 29%.
Income and employment: the blacks buying power stands at approximately
$150 billion which is 57% of the whites.
Education: blacks are steady in education, they only pass high school but after
that they leave the education, which shows lower rates than whites.
Family and age: almost 50% blacks live in families headed by a female with no
husband present

6. The Asian culture Demographic characteristics Size : the Asian population
in USA is almost 8million, (3%) of the total population.
Location: 56% Asian live in the west.12 states have 10,00,000 Asian people in
America. Income & employment: the Asian have higher income than other
subcultures due to 3 points: 1. They have high education.(2) they live high
salary living areas.(3)two or more than two earners
Education: the Asian people like education,37% of Asian people complete there
graduation. Which is far better than other subcultures. Family & age: the Asian
have mostly age of 30-36.

7. The Hispanic culture Demographic characteristics Size :this
market is consist of approximately 20 million people or 8% of the
total population. A large portion of this market’s growth comes from
immigration.
Location: they live mostly in urban areas, i.e. new York, Texas,
California, Illinois.
Income & employment: these people have low income than
American's. they do mostly blue collar job while some people do
white collar job
Product purchase pattern: Hispanic people are highly individualistic in their
product and give priority to brands. They are highly brand loyal, high quality &
familiar brands

8.  Why each major age group should be treated separately? Old age people
have different behaviors then the youngsters. The same age people all
around the world have to some extent similar behaviors but more specifically
the behavior change occurs from culture to culture and sub-culture to other
sub-cultures. Marketers need to understand these differences. There are four
large groups:
o Generation Y
o Generation X
o Baby Boomers
o Seniors

9.  Generation Y: It is the latest born people from 1977 – 1994 in all over the
world. Different aspects impact on this generation around the world. Even this
group of people can be further divided into different sub-groups:
- Generation Y Adults: 19 – 28 years (these are the highest users of text
messaging).
- Generation Y Teens: 13 – 18 years
- Generation Y Tweens: 8 – 12 years
- Twixters:
A group spanning Generation Y and Generation X is a group of 21
– 29 years old. These people have jobs and tend to stay with their
parents. They normally don’t purchase assets but do purchase
gadgets and electronic stuff and clothes.

10.  Generation X
This group was born between 1965 and 1979 (different expert quote different
starting and ending years and are called baby boomers.
These people tend to be cynical, do not like labels on clothes and do not want
to single out to be targeted. They are freedom oriented and flexibility oriented.
They do not go for money alone but relationships at workplace and work
conditions are important for them. It is said that baby boomers like to work,
Generation X likes to live. They tend to keep things simple in terms of work
pressure.
They are interested to watch TV.

11.  Baby Boomer Market
This is the largest category in the world that was born between 1946 and 1964
and now they are in the age of 40 to 60 years. these people are senior
managers in different organizations, so it is important for marketers to target this
group. They are interested in leisure activities, club, cosmetic surgeries and
other such things through which they can look young.
They are consumption oriented and with the growing age, the nature of product
/ services required by them will change.

12.  Old Consumers
Life expectancy of this group is rising; these are over the age of 50 years. There
are some myths about these consumers that they have no work to do and do
not have financial resources. But the truth is that people over 50 work more,
because the life expectancy is growing and most of them are productive
employees.
 Segmenting the elderly market
More concern in advertising where advertisers use younger models and the
reason in their lack of understanding of the market. It is very good potential
segment for the marketers. The elderly consumers are not homogeneous.
There could be a simple segmentation for them.
- The young-old (who are between the age of 60 and 65)
- The old – old (who are between the age of 70 and 80)
- The old

13. Thank You