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Introduction to Marketing
Consumer Behavior
Professor: Aniko DeLaney
Oct. 4, 2023
Class 3
Chap. 5 Changing American Society: Subcultures, Families
In the News
Break
Chap. 6. Changing American Society: Families, Households
Group Project
Last class we discussed:
ØGreen Marketing
ØCause-Related Marketing
ØMarketing to LGBTQ Consumers
ØGender-Based Marketing
3-2
Recap
NYU STERN
Summer 2023
NYU STERN
Fall 2023
4-3
Recap - Demographics
NYU STERN
Summer 2023
NYU STERN
Fall 2023
4-4
Recap: American Generations
PamelaJoeMcFarlane/Getty Images
https://www.beresfordresearch.com/age-range-by-generation/
Alpha 2012 – 2020 3 - 11
NYU STERN
Summer 2023
NYU STERN
Fall 2023
CHAPTER 5
The Changing
American
Society:
Subcultures
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
• Understand subcultures and their influence
on unique market behaviors
• Analyze the African American, Hispanic, Asian
American, Native American and Arab
American subcultures and the unique
marketing aspects they entail
Learning Objectives
NYU STERN
Fall 2023
5-7
The Nature of Subcultures
NYU STERN
Summer 2023
NYU STERN
Fall 2023
We will discuss these subcultures:
ØAfrican Americans
ØHispanics
ØAsian Americans
ØNative Americans
ØAsian Indian Americans
ØArab Americans
5-8
Ethnic Subcultures
Shutterstock/JKstock
Shutterstock/Edward Lara
Shutterstock/Nejron Photo
NYU STERN
Summer 2023
NYU STERN
Fall 2023
Major Ethnic Subcultures in the US 2010-2040
Ethnic Subcultures
NYU STERN
Summer 2023
NYU STERN
Fall 2023
Description: The graph shows the Hispanic population in the United States in 2016 and offers a forecast until 2060. According to this projection, there will be over 111.22 million people of Hispanic descent in the United States in 2060. Read more
Note(s): United States; 2016
Source(s): US Census Bureau
57.47
62.31
68.48
74.81
81.23
87.62
93.83
99.8
105.57
111.22
0
20
40
60
80
100
120
2016 2020 2025 2030 2035 2040 2045 2050 2055 2060
Population
in
millions
4
Forecast of the Hispanic population of the United States from 2016 to 2060 (in
millions)
Hispanic population of the U.S. from 2016 to 2060
NYU STERN
Fall 2023
Ethnic Subcultures
NYU STERN
Summer 2023
NYU STERN
Fall 2023
eSports audience size worldwide from 2020 to 2025, by type of viewers (in millions)
Worldwide eSports viewer numbers 2020-2025, by type
Note(s): Worldwide; 2020 to 2022
Further information regarding this statistic can be found on page 8.
Source(s): Newzoo; Sports Business Journal; ID 490480
215.2 240 261.2 318.1
220.5
249.5
270.9
322.7
0
100
200
300
400
500
600
700
2020 2021 2022 2025*
Viewers
in
millions
eSports enthusiasts Occasional viewers
2
Are you part of a subculture?
https://www.google.com/search?q=manic+panic+tis
h+and+snooky+video&sca_esv=569770666&rlz=1C
5CHFA_enUS998US1001&sxsrf=AM9HkKnC2TV
7BlMpxWgmCH10G4S4WYW6UQ%3A169611754
5090&ei=KbMYZeXtBImf5NoPnsuQuAk&ved=0ah
UKEwilppaewtOBAxWJD1kFHZ4lBJcQ4dUDCBE
&uact=5&oq=manic+panic+tish+and+snooky+vide
o&gs_lp=Egxnd3Mtd2l6LXNlcnAiIW1hbmljIHBh
bmljIHRpc2ggYW5kIHNub29reSB2aWRlbzIFECE
YoAEyBRAhGKABSLc_UMYNWM89cAJ4AZABA
ZgBigGgAdcTqgEEMjEuOLgBA8gBAPgBAcICCh
AAGEcY1gQYsAPCAgcQIxiKBRgnwgIIEAAYigU
YhgPCAgUQABiABMICCxAuGIAEGMcBGK8Bw
gIIEC4YigUYkQLCAggQABiKBRiRAsICChAAGI
AEGBQYhwLCAhcQLhiKBRiRAhiXBRjcBBjeBBjf
BNgBAcICBhAAGBYYHsICBxAhGKABGAriAwQ
YACBBiAYBkAYIugYGCAEQARgU&sclient=gws-
wiz-
serp#fpstate=ive&vld=cid:a3363897,vid:rcwqYPOU
q9U,st:0
NYU STERN
Fall 2023
Applications in Consumer Behavior
Our attitudes toward new products
or imported products may be
strongly influenced by our regional
subculture, our taste in music by
our generation subculture, and our
food preferences by our ethnic
subculture.
Frito-Lay developed chips with flavors
such as “Chile Con Queso” and
“Chesapeake Bay Crab Spice” to
appeal to the tastes of the Southwest
and Mid-Atlantic markets, respectively.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØThis group represents $1.8 trillion in buying power and is
expected to grow by over 25% by 2024.
ØOn average, African Americans are younger than the
white population and tend to have less education and lower
household income levels.
ØTarget opportunities exist across a broad range of income.
The top 20% households earn >$182,000; top 5 percentile
earn ˜$326,000.
5-15
Black and African Americans
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
Segments Identified by Yankelovich
Black and African Americans
Largest segment:
17% - Broadcast Blacks – middle age, female, 71%
under $25K income, urban, single parent, lowest tech,
confident, independent, value education, self describe as
African American NYU STERN
Summer 2023
NYU STERN
Fall 2023
VIDEO =>
https://www.thinkwithgoogle.com/future-of-
marketing/management-and-culture/diversity-
and-inclusion/-fenty-beauty-inclusive-
advertising/
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØAlthough the average Hispanic household income is
relatively low, the purchase power of the Hispanic market is
estimated at $1.5 trillion and is expected to grow to $1.9
trillion by 2023.
ØIncome, education, language, and identification with
Hispanic culture change across generations.
ØGiven that roughly 34% of growth in the Hispanic
population is attributable to immigration, the level of
acculturation plays a major role in the attitudes and
behaviors of Hispanic consumers.
5-18
Hispanic Americans
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
5-19
Hispanic Americans
NYU STERN
Summer 2023
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
ØConsumer Groups
ØGenerational groups also exist which drive differences in
language, national identity, and values.
ØFirst Generation
ØSecond Generation
ØThird (+) Generation
5-20
Hispanic Americans
This McDonald’s commercial is a good example of
the Hispanic generational groups
YouTube Spotlight
Ingram Publishing
ØAcculturation (adapting to new culture) is highly related
to language use; and both are strongly influenced by
generational factors.
5-21
Hispanic Americans
Language is clearly important
to the Hispanic market and
often strongly intertwined with
cultural identity. Less than 30
percent of Hispanics (over the
age of five) speak English
exclusively in the home. Thus,
a large majority of Hispanics
speak Spanish in the home.
As a result, Spanish-language ads are often more effective for the Hispanic
market. Orbit advertises its gum in both English and Spanish. Although
Spanish-language ads are often successful when marketing to Hispanics,
this effect may depend on acculturation level.
WM. Wrigley Jr. Company WM. Wrigley Jr. Company
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØAsian Americans are the highest educated and the
highest income group.
ØThe estimated purchase power is $1.2 trillion and is
expected to grow to $1.6 trillion by 2024.
ØThis group is also the most diverse group, with numerous
nationalities, languages, and religions.
5-22
Asian Americans
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
5-23
Asian Americans
NYU STERN
Fall 2023
VIDEO
https://www.businesswire.com/news/home/20180216
005616/en/Voya-Introduces-Chinese-Name-and-
Advertising-Campaign-to-Raise-Brand-Awareness-
in-Asian-American-Community
NYU STERN
Summer 2023
Video
NYU STERN
Fall 2023
Number of overseas Chinese communities as of December 2021, by continent
Distribution of overseas Chinese communities 2021, by continent
Note(s): Worldwide, China, Taiwan, Hong Kong; as of December 2021
Further information regarding this statistic can be found on page 8.
Source(s): OCAC; ID 632932
3,847
1,339
323 340
144
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Americas Asia Europe Oceania Africa
Number
of
Chinese
communities
overseas
2
NYU STERN
Fall 2023
5-26
Asian Americans
State Farm ad targets
Chinese prospects
with an ad that
includes:
• A road shaped like
the Chinese
character for “Good
Fortune”)
• Use of red
State Farm
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØThere are approximately 570 Native American tribes,
each with its own language and traditions. Many of the
tribes have reservations and quasi-independent
political status.
ØIn general, Native Americans have limited incomes,
but this varies widely by tribe. The overall buying
power of this group is estimated at $118 billion, close
to a 200% increase since 2000.
5-27
Native Americans
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
ØConsumer Groups
ØIn recent years, native Americans have taken
increasing pride in their heritage and are less tolerant of
inaccurate stereotypes of either their history or their
current status.
Ø Marketers using Native American names or portrayals
must ensure accurate and appropriate use.
5-28
Native Americans
NYU STERN
Summer 2023
NYU STERN
Fall 2023
NYU STERN
Summer 2023
https://aef.com/academic-programs/adtext/adtext-
excerpts/images-native-americans-advertising/
https://www.instacart.com
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØAs a group, they are well educated, affluent, and fluent in
English; yet most retain cultural ties to their Indian
background.
ØIn some ways India is more like Europe than America,
relative to territories and languages, explaining the diversity
among the members of this group.
ØThe overall buying power of this group is estimated at
$381 billion.
5-30
Asian Indian Americans
NYU STERN
Summer 2023
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
ØConsumer Groups
ØWhile diverse in many ways, most Asian Indian Americans
share many cultural traits, including:
Øplacing a high value on education, particularly their
children’s education
Øhusbands playing a dominant role in making many of
the family decisions.
5-31
Asian Indian Americans
NYU STERN
Fall 2023
Change in the U.S. Asian-Indian population from 1980 to 2010 (in 1,000)
Change in U.S. Asian-Indian population from 1980 to 2010
Note(s): United States; 1980 to 2010
Further information regarding this statistic can be found on page 8.
Source(s): Pew Research Center; ID 233852
396
781
1,645
2,779
0
500
1,000
1,500
2,000
2,500
3,000
1980 1990 2000 2010
Population
count
in
thousands
2
NYU STERN
Fall 2023
VIDEO:
https://www.google.com/search?q=state+farm+indian+ad&rlz=1C5CHFA_en
US998US1001&oq=state+farm+indian+ad&gs_lcrp=EgZjaHJvbWUyBggAE
EUYOTIGCAEQRRg80gEINjU3MWowajSoAgCwAgA&sourceid=chrome
&ie=UTF-8#fpstate=ive&vld=cid:d5cf4125,vid:N88fhlMmeqI,st:0
NYU STERN
Summer 2023
NYU STERN
Fall 2023
Demographics
ØBuying Power
ØThis group is somewhat younger then the general
population, better educated, and have a higher than
average income.
ØSince WWII, many Arab immigrants have been business
proprietors, landowners, or influential families fleeing from
political turmoil in their home countries.
.
5-34
Arab Americans
Shutterstock/Zurijeta
NYU STERN
Summer 2023
NYU STERN
Fall 2023
A Closer Look at the Marketing Aspects of this Segment
ØConsumer Groups
ØMore than 80% of Arab American are U.S. citizens, and a
majority being born in the U.S.
ØMost Arab Americans are tired of negative stereotyping
and misrepresentations about their culture.
Ø66% of Arab Americans identify themselves as Christians;
24% identify themselves as Muslims.
ØThe overall buying power of this group is estimated
at $250 billion.
5-35
Arab Americans
NYU STERN
Summer 2023
NYU STERN
Fall 2023
NYU STERN
Fall 2023
Video
In-Class Exercise
With a partner, discuss examples of ethnic subculture
marketing campaigns that you noticed.
Did the campaign influence your impression of the
brand? Did it influence you to purchase the product?
NYU STERN
Summer 2023
NYU STERN
Fall 2023
38
NYU STERN
Fall 2023
CHAPTER 6
The Changing
American
Society:
Families and
Households
Copyright © 2020 by McGraw-Hill Education. All rights reserved.
NYU STERN
Fall 2023
L01
L02
L03
L05
L04
Explain the concept of household types and their
influence on consumption
Summarize the household life cycle’s various stages
and marketing implications
Understand the family decision process
Describe the role that households play in child
socialization
Explain the sources of ethical concern associated with
marketing to children
Learning Objectives
NYU STERN
Fall 2023
The Household Influences Most Consumption Decisions
6-41
The Nature of American Households
NYU STERN
Fall 2023
NYU STERN
Fall 2023
6-43
The Nature and Influence of American
Households
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC
NYU STERN
Fall 2023
The Evolving American Household
6-44
The Nature of American Households
Ø Single parent families
Ø Cohabitation with children involved
Ø Blended families
Ø Family size
Ø Multipartner fertility
Ø Mothers in workforce
Ø Mothers as the breadwinner
Little Caesar’s Soft Pretzel Crust Pizza Commercial
is a good marketing approach because it offers
convenience for today’s busy households. YouTube Spotlight
Ingram Publishing
With your Group, discuss what product would you market
to this stage of the lifecycle based on consumer behavior
trends?
ØYounger (< 35)
ØSingle I
ØYoung Couples: No Children
ØFull Nest I
ØSingle Parent I
6-45
The Household Life Cycle
In-Class Exercise
NYU STERN
Fall 2023
With your Group, discuss what product would you market to this stage
of the lifecycle based on consumer behavior trends?
ØMiddle Aged (35 – 64)
ØMiddle-Aged Single II
ØEmpty Nest I
ØDelayed Full Nest I
ØFull Nest II
ØSingle Parent II
6-46
The Household Life Cycle
In-Class Exercise
Anton Vengo/Purestock/Superstock
NYU STERN
Fall 2023
With your Group, discuss what product would you market
to this stage of the lifecycle based on consumer behavior
trends?
ØOlder (> 64)
ØEmpty Nest II
ØOlder Single
6-47
The Household Life Cycle
In-Class Exercise
NYU STERN
Fall 2023
Decision-Making Influence and Relative Income
6-48
Husband Earns More Wife Earns More
Family Decision Making
NYU STERN
Fall 2023
Conflict Resolution
One study revealed six approaches individuals used to resolve
purchase conflicts1. Which approach have you used recently?
Approach Description
Bargaining Trying to reach a compromise.
Impression
Management
Misrepresenting the facts in order to win.
Use of Authority Claiming superior expertise or role appropriateness (the
husband/wife should make such decisions).
Reasoning Using logical argument to win.
Playing on
Emotion
Using the silent treatment or withdrawing from the
discussion.
Additional
Information
Getting additional data or a third-party opinion.
1
C. Kim and H. Lee, “A taxonomy of Couples Based on Influence Strategies,” Journal of Business Research, June 1996, pp. 157-68.
6-49
Family Decision Making
NYU STERN
Fall 2023
Figure 6-3: The Household Decision-Making Process for Children’s Products
6-50
Family Decision Making
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC
NYU STERN
Fall 2023
6-51
Marketing Strategy and Family Decision Making
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC
NYU STERN
Fall 2023
Piaget’s Stages of Cognitive Development
Stage Description
Stage 1 The period of sensorimotor intelligence (0-2 yrs.)
- behavior is primarily motor
- the child does not yet “think” conceptually, though
cognitive development is seen
Stage 2 The period of preoperational thoughts (3-7 yrs.)
- Characterized by the development of language and
rapid conceptual development
Stage 3 The period of concrete operations (8-11 yrs.)
- the child develops the ability to apply logical
thought to concrete problems
Stage 4 The period of formed operations (12-15 yrs.)
- the child’s cognitive structures reach their greatest
level of development, and the child becomes able
to apply logic to all classes of problems.
6-52
Consumer Socialization
NYU STERN
Fall 2023
Ø Marketers aggressively pursue children.
Ø However, marketing to children is fraught with ethical concerns, including:
ØThe limited ability of younger children to process information and to make
informed purchase decisions.
ØMarketing activities, particularly advertising, can produce undesirable
values in children, resulting in inappropriate diets, and cause unhealthy
levels of family conflict.
6-53
Marketing to Children
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC
VIDEO:
https://www.vichealth.vic.gov.au/ne
ws-publications/research-
publications/harmful-industries-
digital-marketing-australian-
children
NYU STERN
Fall 2023
The Process of Consumer Socialization
6-54
Consumer Socialization
Instrumental training
occurs when a parent or
sibling specifically and
directly attempts to bring
about certain responses
through reasoning or
reinforcement.
Parents often worry that marketing messages will simply drown out any
instrumental training they try to provide. Capital One clearly recognizes that it
can be a partner with parents in the socialization process, such as helping
their children learn financial responsibility with a savings account and having
fun in the process.
Capital One
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC
VIDEO: https://www.capitalone.com/learn-grow/money-
management/generational-wealth-college-savings/
NYU STERN
Fall 2023
For Next Class
Homework:
Read Chapters 7, 8
• Upload your ‘In the News’
• Group Case study 1 – McGraw Hill – IKEA p. 263-265, questions 1, 2, 4, 5, 6
Topics we will cover:
• Chap. 7 Group Influence on Consumer Behavior
• Break
• In the News
• Chap. 8. Perception
• Marketing Plan, Group Project Feedback 5 mins each (breakout groups)
NYU STERN
Fall 2023
Meet with Your Group
NYU STERN
Fall 2023
Work on survey, draft introduction, create questions and answers

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3.NYU CB-Chap5Subculture-Chap 6Households-10-4-2023.pdf

  • 1. Introduction to Marketing Consumer Behavior Professor: Aniko DeLaney Oct. 4, 2023 Class 3 Chap. 5 Changing American Society: Subcultures, Families In the News Break Chap. 6. Changing American Society: Families, Households Group Project
  • 2. Last class we discussed: ØGreen Marketing ØCause-Related Marketing ØMarketing to LGBTQ Consumers ØGender-Based Marketing 3-2 Recap NYU STERN Summer 2023 NYU STERN Fall 2023
  • 3. 4-3 Recap - Demographics NYU STERN Summer 2023 NYU STERN Fall 2023
  • 4. 4-4 Recap: American Generations PamelaJoeMcFarlane/Getty Images https://www.beresfordresearch.com/age-range-by-generation/ Alpha 2012 – 2020 3 - 11 NYU STERN Summer 2023 NYU STERN Fall 2023
  • 5. CHAPTER 5 The Changing American Society: Subcultures © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
  • 6. • Understand subcultures and their influence on unique market behaviors • Analyze the African American, Hispanic, Asian American, Native American and Arab American subcultures and the unique marketing aspects they entail Learning Objectives NYU STERN Fall 2023
  • 7. 5-7 The Nature of Subcultures NYU STERN Summer 2023 NYU STERN Fall 2023
  • 8. We will discuss these subcultures: ØAfrican Americans ØHispanics ØAsian Americans ØNative Americans ØAsian Indian Americans ØArab Americans 5-8 Ethnic Subcultures Shutterstock/JKstock Shutterstock/Edward Lara Shutterstock/Nejron Photo NYU STERN Summer 2023 NYU STERN Fall 2023
  • 9. Major Ethnic Subcultures in the US 2010-2040 Ethnic Subcultures NYU STERN Summer 2023 NYU STERN Fall 2023
  • 10. Description: The graph shows the Hispanic population in the United States in 2016 and offers a forecast until 2060. According to this projection, there will be over 111.22 million people of Hispanic descent in the United States in 2060. Read more Note(s): United States; 2016 Source(s): US Census Bureau 57.47 62.31 68.48 74.81 81.23 87.62 93.83 99.8 105.57 111.22 0 20 40 60 80 100 120 2016 2020 2025 2030 2035 2040 2045 2050 2055 2060 Population in millions 4 Forecast of the Hispanic population of the United States from 2016 to 2060 (in millions) Hispanic population of the U.S. from 2016 to 2060 NYU STERN Fall 2023
  • 11. Ethnic Subcultures NYU STERN Summer 2023 NYU STERN Fall 2023
  • 12. eSports audience size worldwide from 2020 to 2025, by type of viewers (in millions) Worldwide eSports viewer numbers 2020-2025, by type Note(s): Worldwide; 2020 to 2022 Further information regarding this statistic can be found on page 8. Source(s): Newzoo; Sports Business Journal; ID 490480 215.2 240 261.2 318.1 220.5 249.5 270.9 322.7 0 100 200 300 400 500 600 700 2020 2021 2022 2025* Viewers in millions eSports enthusiasts Occasional viewers 2 Are you part of a subculture? https://www.google.com/search?q=manic+panic+tis h+and+snooky+video&sca_esv=569770666&rlz=1C 5CHFA_enUS998US1001&sxsrf=AM9HkKnC2TV 7BlMpxWgmCH10G4S4WYW6UQ%3A169611754 5090&ei=KbMYZeXtBImf5NoPnsuQuAk&ved=0ah UKEwilppaewtOBAxWJD1kFHZ4lBJcQ4dUDCBE &uact=5&oq=manic+panic+tish+and+snooky+vide o&gs_lp=Egxnd3Mtd2l6LXNlcnAiIW1hbmljIHBh bmljIHRpc2ggYW5kIHNub29reSB2aWRlbzIFECE YoAEyBRAhGKABSLc_UMYNWM89cAJ4AZABA ZgBigGgAdcTqgEEMjEuOLgBA8gBAPgBAcICCh AAGEcY1gQYsAPCAgcQIxiKBRgnwgIIEAAYigU YhgPCAgUQABiABMICCxAuGIAEGMcBGK8Bw gIIEC4YigUYkQLCAggQABiKBRiRAsICChAAGI AEGBQYhwLCAhcQLhiKBRiRAhiXBRjcBBjeBBjf BNgBAcICBhAAGBYYHsICBxAhGKABGAriAwQ YACBBiAYBkAYIugYGCAEQARgU&sclient=gws- wiz- serp#fpstate=ive&vld=cid:a3363897,vid:rcwqYPOU q9U,st:0
  • 14. Applications in Consumer Behavior Our attitudes toward new products or imported products may be strongly influenced by our regional subculture, our taste in music by our generation subculture, and our food preferences by our ethnic subculture. Frito-Lay developed chips with flavors such as “Chile Con Queso” and “Chesapeake Bay Crab Spice” to appeal to the tastes of the Southwest and Mid-Atlantic markets, respectively. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 15. Demographics ØBuying Power ØThis group represents $1.8 trillion in buying power and is expected to grow by over 25% by 2024. ØOn average, African Americans are younger than the white population and tend to have less education and lower household income levels. ØTarget opportunities exist across a broad range of income. The top 20% households earn >$182,000; top 5 percentile earn ˜$326,000. 5-15 Black and African Americans © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 16. Segments Identified by Yankelovich Black and African Americans Largest segment: 17% - Broadcast Blacks – middle age, female, 71% under $25K income, urban, single parent, lowest tech, confident, independent, value education, self describe as African American NYU STERN Summer 2023 NYU STERN Fall 2023
  • 18. Demographics ØBuying Power ØAlthough the average Hispanic household income is relatively low, the purchase power of the Hispanic market is estimated at $1.5 trillion and is expected to grow to $1.9 trillion by 2023. ØIncome, education, language, and identification with Hispanic culture change across generations. ØGiven that roughly 34% of growth in the Hispanic population is attributable to immigration, the level of acculturation plays a major role in the attitudes and behaviors of Hispanic consumers. 5-18 Hispanic Americans © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 19. A Closer Look at the Marketing Aspects of this Segment 5-19 Hispanic Americans NYU STERN Summer 2023 NYU STERN Fall 2023
  • 20. A Closer Look at the Marketing Aspects of this Segment ØConsumer Groups ØGenerational groups also exist which drive differences in language, national identity, and values. ØFirst Generation ØSecond Generation ØThird (+) Generation 5-20 Hispanic Americans This McDonald’s commercial is a good example of the Hispanic generational groups YouTube Spotlight Ingram Publishing ØAcculturation (adapting to new culture) is highly related to language use; and both are strongly influenced by generational factors.
  • 21. 5-21 Hispanic Americans Language is clearly important to the Hispanic market and often strongly intertwined with cultural identity. Less than 30 percent of Hispanics (over the age of five) speak English exclusively in the home. Thus, a large majority of Hispanics speak Spanish in the home. As a result, Spanish-language ads are often more effective for the Hispanic market. Orbit advertises its gum in both English and Spanish. Although Spanish-language ads are often successful when marketing to Hispanics, this effect may depend on acculturation level. WM. Wrigley Jr. Company WM. Wrigley Jr. Company © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 22. Demographics ØBuying Power ØAsian Americans are the highest educated and the highest income group. ØThe estimated purchase power is $1.2 trillion and is expected to grow to $1.6 trillion by 2024. ØThis group is also the most diverse group, with numerous nationalities, languages, and religions. 5-22 Asian Americans © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 23. A Closer Look at the Marketing Aspects of this Segment 5-23 Asian Americans NYU STERN Fall 2023
  • 25. Number of overseas Chinese communities as of December 2021, by continent Distribution of overseas Chinese communities 2021, by continent Note(s): Worldwide, China, Taiwan, Hong Kong; as of December 2021 Further information regarding this statistic can be found on page 8. Source(s): OCAC; ID 632932 3,847 1,339 323 340 144 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Americas Asia Europe Oceania Africa Number of Chinese communities overseas 2 NYU STERN Fall 2023
  • 26. 5-26 Asian Americans State Farm ad targets Chinese prospects with an ad that includes: • A road shaped like the Chinese character for “Good Fortune”) • Use of red State Farm © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 27. Demographics ØBuying Power ØThere are approximately 570 Native American tribes, each with its own language and traditions. Many of the tribes have reservations and quasi-independent political status. ØIn general, Native Americans have limited incomes, but this varies widely by tribe. The overall buying power of this group is estimated at $118 billion, close to a 200% increase since 2000. 5-27 Native Americans © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. NYU STERN Fall 2023
  • 28. A Closer Look at the Marketing Aspects of this Segment ØConsumer Groups ØIn recent years, native Americans have taken increasing pride in their heritage and are less tolerant of inaccurate stereotypes of either their history or their current status. Ø Marketers using Native American names or portrayals must ensure accurate and appropriate use. 5-28 Native Americans NYU STERN Summer 2023 NYU STERN Fall 2023
  • 30. Demographics ØBuying Power ØAs a group, they are well educated, affluent, and fluent in English; yet most retain cultural ties to their Indian background. ØIn some ways India is more like Europe than America, relative to territories and languages, explaining the diversity among the members of this group. ØThe overall buying power of this group is estimated at $381 billion. 5-30 Asian Indian Americans NYU STERN Summer 2023 NYU STERN Fall 2023
  • 31. A Closer Look at the Marketing Aspects of this Segment ØConsumer Groups ØWhile diverse in many ways, most Asian Indian Americans share many cultural traits, including: Øplacing a high value on education, particularly their children’s education Øhusbands playing a dominant role in making many of the family decisions. 5-31 Asian Indian Americans NYU STERN Fall 2023
  • 32. Change in the U.S. Asian-Indian population from 1980 to 2010 (in 1,000) Change in U.S. Asian-Indian population from 1980 to 2010 Note(s): United States; 1980 to 2010 Further information regarding this statistic can be found on page 8. Source(s): Pew Research Center; ID 233852 396 781 1,645 2,779 0 500 1,000 1,500 2,000 2,500 3,000 1980 1990 2000 2010 Population count in thousands 2 NYU STERN Fall 2023
  • 34. Demographics ØBuying Power ØThis group is somewhat younger then the general population, better educated, and have a higher than average income. ØSince WWII, many Arab immigrants have been business proprietors, landowners, or influential families fleeing from political turmoil in their home countries. . 5-34 Arab Americans Shutterstock/Zurijeta NYU STERN Summer 2023 NYU STERN Fall 2023
  • 35. A Closer Look at the Marketing Aspects of this Segment ØConsumer Groups ØMore than 80% of Arab American are U.S. citizens, and a majority being born in the U.S. ØMost Arab Americans are tired of negative stereotyping and misrepresentations about their culture. Ø66% of Arab Americans identify themselves as Christians; 24% identify themselves as Muslims. ØThe overall buying power of this group is estimated at $250 billion. 5-35 Arab Americans NYU STERN Summer 2023 NYU STERN Fall 2023
  • 37. In-Class Exercise With a partner, discuss examples of ethnic subculture marketing campaigns that you noticed. Did the campaign influence your impression of the brand? Did it influence you to purchase the product? NYU STERN Summer 2023 NYU STERN Fall 2023
  • 39. CHAPTER 6 The Changing American Society: Families and Households Copyright © 2020 by McGraw-Hill Education. All rights reserved. NYU STERN Fall 2023
  • 40. L01 L02 L03 L05 L04 Explain the concept of household types and their influence on consumption Summarize the household life cycle’s various stages and marketing implications Understand the family decision process Describe the role that households play in child socialization Explain the sources of ethical concern associated with marketing to children Learning Objectives NYU STERN Fall 2023
  • 41. The Household Influences Most Consumption Decisions 6-41 The Nature of American Households NYU STERN Fall 2023
  • 43. 6-43 The Nature and Influence of American Households © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC NYU STERN Fall 2023
  • 44. The Evolving American Household 6-44 The Nature of American Households Ø Single parent families Ø Cohabitation with children involved Ø Blended families Ø Family size Ø Multipartner fertility Ø Mothers in workforce Ø Mothers as the breadwinner Little Caesar’s Soft Pretzel Crust Pizza Commercial is a good marketing approach because it offers convenience for today’s busy households. YouTube Spotlight Ingram Publishing
  • 45. With your Group, discuss what product would you market to this stage of the lifecycle based on consumer behavior trends? ØYounger (< 35) ØSingle I ØYoung Couples: No Children ØFull Nest I ØSingle Parent I 6-45 The Household Life Cycle In-Class Exercise NYU STERN Fall 2023
  • 46. With your Group, discuss what product would you market to this stage of the lifecycle based on consumer behavior trends? ØMiddle Aged (35 – 64) ØMiddle-Aged Single II ØEmpty Nest I ØDelayed Full Nest I ØFull Nest II ØSingle Parent II 6-46 The Household Life Cycle In-Class Exercise Anton Vengo/Purestock/Superstock NYU STERN Fall 2023
  • 47. With your Group, discuss what product would you market to this stage of the lifecycle based on consumer behavior trends? ØOlder (> 64) ØEmpty Nest II ØOlder Single 6-47 The Household Life Cycle In-Class Exercise NYU STERN Fall 2023
  • 48. Decision-Making Influence and Relative Income 6-48 Husband Earns More Wife Earns More Family Decision Making NYU STERN Fall 2023
  • 49. Conflict Resolution One study revealed six approaches individuals used to resolve purchase conflicts1. Which approach have you used recently? Approach Description Bargaining Trying to reach a compromise. Impression Management Misrepresenting the facts in order to win. Use of Authority Claiming superior expertise or role appropriateness (the husband/wife should make such decisions). Reasoning Using logical argument to win. Playing on Emotion Using the silent treatment or withdrawing from the discussion. Additional Information Getting additional data or a third-party opinion. 1 C. Kim and H. Lee, “A taxonomy of Couples Based on Influence Strategies,” Journal of Business Research, June 1996, pp. 157-68. 6-49 Family Decision Making NYU STERN Fall 2023
  • 50. Figure 6-3: The Household Decision-Making Process for Children’s Products 6-50 Family Decision Making © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC NYU STERN Fall 2023
  • 51. 6-51 Marketing Strategy and Family Decision Making © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC NYU STERN Fall 2023
  • 52. Piaget’s Stages of Cognitive Development Stage Description Stage 1 The period of sensorimotor intelligence (0-2 yrs.) - behavior is primarily motor - the child does not yet “think” conceptually, though cognitive development is seen Stage 2 The period of preoperational thoughts (3-7 yrs.) - Characterized by the development of language and rapid conceptual development Stage 3 The period of concrete operations (8-11 yrs.) - the child develops the ability to apply logical thought to concrete problems Stage 4 The period of formed operations (12-15 yrs.) - the child’s cognitive structures reach their greatest level of development, and the child becomes able to apply logic to all classes of problems. 6-52 Consumer Socialization NYU STERN Fall 2023
  • 53. Ø Marketers aggressively pursue children. Ø However, marketing to children is fraught with ethical concerns, including: ØThe limited ability of younger children to process information and to make informed purchase decisions. ØMarketing activities, particularly advertising, can produce undesirable values in children, resulting in inappropriate diets, and cause unhealthy levels of family conflict. 6-53 Marketing to Children © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC VIDEO: https://www.vichealth.vic.gov.au/ne ws-publications/research- publications/harmful-industries- digital-marketing-australian- children NYU STERN Fall 2023
  • 54. The Process of Consumer Socialization 6-54 Consumer Socialization Instrumental training occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement. Parents often worry that marketing messages will simply drown out any instrumental training they try to provide. Capital One clearly recognizes that it can be a partner with parents in the socialization process, such as helping their children learn financial responsibility with a savings account and having fun in the process. Capital One © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC VIDEO: https://www.capitalone.com/learn-grow/money- management/generational-wealth-college-savings/ NYU STERN Fall 2023
  • 55. For Next Class Homework: Read Chapters 7, 8 • Upload your ‘In the News’ • Group Case study 1 – McGraw Hill – IKEA p. 263-265, questions 1, 2, 4, 5, 6 Topics we will cover: • Chap. 7 Group Influence on Consumer Behavior • Break • In the News • Chap. 8. Perception • Marketing Plan, Group Project Feedback 5 mins each (breakout groups) NYU STERN Fall 2023
  • 56. Meet with Your Group NYU STERN Fall 2023 Work on survey, draft introduction, create questions and answers