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ORIGINALITY REPORT
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creORIGINALITY REPORTPRIMARY SOURCES
Marketing 363
Consumer Behavior
Tom Gillpatrick

Center for Retail Leadership
[email protected]
Winter 2018 Week 3
mailto:[email protected]
Model of Buyer Behavior
Firms Product offering- (4 P’s)
Stages in the Buying Process
Culture &
Psychology
Factors Situational
Factors
1. Problem recognition
2. Information search
3. Information evaluation
4. Purchase decision
5. Post-decision evaluation
Cultural/Values
Subculture
Social class

Ref. Groups
Family/household
Personal
Psychological
-motivation
-perception
-learning
-attitudes
Task
Time
Social
Physical
Antecedent
Lifestyles/ VALS
Lifestyles and Psychographics

Psychographics
Uses psychological, sociological, and anthropological
factors to segment a market into groups based on
their reasons to make a particular decision.
AIOS: activities, interests, and opinions.
80/20 rule: 80% of volume comes from only 20% of
the market.
Lifestyles and Psychographics
Psychographic Uses:
Position product
Communicate product attributes
Develop overall strategy
Market social and political issues
VALS
Values and Lifestyles segmentations system
Divides people into 8 groups based on psychological
traits and resources

VALS segments
Innovators (successful with many resources)
Thinkers - satisfied, reflective, comfortable
Achievers - career-oriented prefering predictability over risk or
self-discovery
Experiencers – impulsive, young and enjoy offbeat or risky
experiences.
Believers – strong principles and favour proven brands.
Strivers – achievers with fewer resources.
Makers – action-oriented focused on self-sufficiency
Strugglers – primary concern is meeting the needs of the
moment.
VALS
My VALS Profile
Your VALS™ Type
Primary Type: Innovators Secondary Type:

Thinkers
The US VALS Framework
Your primary VALS type means that you are
most like the Innovators consumer group. Your
secondary type—the group you are next most
like—is Thinkers.
Your primary VALS type represents your
dominant approach to life. The secondary type
represents a particular emphasis on the
dominant approach.
Try it out for yourself:
http://www.sric-bi.com/VALS/presurvey.shtml
As a consumer group, Innovators exhibit all three primary
motivations in varying
degrees.
Members of this group typically:
Are always taking in information (antennas up)

Are confident enough to experiment
Make the highest number of financial transactions
Are skeptical about advertising
Have international exposure
Are future oriented Are self-directed consumers
Believe science and R&D are credible
Are most receptive to new ideas and technologies
Enjoy the challenge of problem solving
Have the widest variety of interests and activities.
As a consumer group, Thinkers have high resources and an
Ideals motivation.
Have "ought" and "should" benchmarks for social conduct
Have a tendency toward analysis paralysis
Plan, research, and consider before they act
Enjoy a historical perspective
Are financially established

Are not influenced by what's hot
Use technology in functional ways
Prefer traditional intellectual pursuits
Buy proven products.
VALS
As a consumer group, Believers have low resources and an
Ideals motivation.
Believe in basic rights and wrongs to lead a good life
Rely on spirituality and faith to provide inspiration
Want friendly communities
Watch TV and read romance novels to find an escape
Want to know where things stand; have no tolerance for
ambiguity
Are not looking to change society
Find advertising a legitimate source of information
Value constancy and stability (can appear to be loyal)

Have strong me-too fashion attitudes.
VALS
As a consumer group, Achievers have high resources and an
Achievement motivation.
Have a "me first, my family first" attitude
Believe money is the source of authority
Are committed to family and job
Are fully scheduled
Are goal oriented
Are hardworking
Are moderate
Act as anchors of the status quo
Are peer conscious
Are private
Are professional
Value technology that provides a productivity boost.

VALS
As a consumer group, Strivers have low resources and an
Achievement
motivation.
Have revolving employment; high temporary unemployment
Use video and video games as a form of fantasy
Are fun loving
Are imitative
Rely heavily on public transportation
Are the center of low-status street culture
Desire to better their lives but have difficulty in realizing their
desire
Wear their wealth.
VALS
As a consumer group, Experiencers have high resources and a
Self-
Expression motivation.

Want everything
Are first in and first out of trend adoption
Go against the current mainstream
Are up on the latest fashions
Love physical activity (are sensation seeking)
See themselves as very sociable
Believe that friends are extremely important
Are spontaneous
Have a heightened sense of visual stimulation.
VALS
As a consumer group, Makers have low resources and a Self-
Expression
motivation.
Are distrustful of government

Have a strong interest in all things automotive
Have strong outdoor interests (hunting and fishing)
Believe in sharp gender roles
Want to protect what they perceive to be theirs
See themselves as straightforward; appear to others as anti-
intellectual
Want to own land.
VALS
As a consumer group, Survivors have the lowest resources; they
exhibit no
primary motivation.
Are cautious and risk averse
Are the oldest consumers
Are thrifty
Are not concerned about appearing traditional or trendy
Take comfort in routine, familiar people, and places

Are heavy TV viewers
Are loyal to brands and products
Spend most of their time alone
Are the least likely use the internet
Are the most likely to have a landline-only household.
VALS- China
VALS UK
The United Kingdom's Consumer Groups
Activators are at the forefront of innovation, consumer activity,
and change and are the most open to new
ideas, products, and services. They have wide-ranging interests
and a strong sense of personal identity. Activators
divide by motivation: Tradition Activators, Achievement
Activators, and Self-Expression Activators.
Traditionalists focus on preservation. They regulate social
change, forcing reassessment of new ideas in the
light of proven and established standards and ethical codes.

Achievers relate achievements to the fruits of hard work and
professional endeavor. They focus on success,
status, and family. They value knowledge, influence, and
qualifications.
Seekers want individuality, self-discovery, display, and action.
They actively seek self-gratification, excitement,
experimentation, and sociability.
Pragmatics like to play safe. They dislike standing out from
their peer group and have a relatively low
attachment to any particular lifestyle. Similar to Activators,
Pragmatic consumers differentiate by motivation:
Pragmatic Involvers have a tradition motivation, Pragmatic
Rationals have an achievement motivation, and
Pragmatic Aspirationals have a self-expression motivation.
Constraineds prefer to try to hold on to the familiar and the
past. Their world consists of immediate family
and a few friends, who reinforce rather than challenge or renew
their opinions and ideas.
Lifestyles & Psychographics
Uses consumer expenditures and other socio-economic
factors with geographic information to identify common

consumption patterns in areas where people live.
8-22
Geographic Information System (GIS)
GIS – a system of hardware and software used to store, retrieve,
map and analyze geographic data along with the operating
personnel and the data that goes into the system.
• coordinate system (latitude and longitude)
• spacial features (rivers and roads)
• some firms offer services combine GIS with updated census
data, consumer spending patterns and lifestyles
– ESRI (www.esri.com)
– Claritas (www. Claritas.com)
– MapInfo (www. Mapinfo.com)
http://www.esri.com/library/fliers/pdfs/community-tapestry-
poster.pdf
http://www.esri.com/
http://www.claritas.com/claritas/Default.jsp?ci=3&si=4&pn=pri
zmne_segments
http://www.claritas.com/
http://www.mapinfo.com/location/integration
8-23

Example: ESRI data
For the potential site’s addresses, the system
provides the data for 2009 and projected for 2014
on the people living within a three-, five-, and 10-
mile radius from the sites
■ Gender
■ Income
■ Disposable income
■ Net worth
■ Education
■ Age
■ Race/ethnicity
■ Employment status
■ Occupation
■ Travel time to work
■ Transportation mode to work
■ Household composition
■ Household expenditures by
NAICS categories
■ Geodemographic market

segment
■ Market potential index
■ Spending potential index
8-24
GIS Map for a Store Trading Area
in an MSA
8-25
Data from GIS on Retail Expenditures
in a Trade Area
8-26
Tapestry Segment
Example: Metro Renters
Young – 20’s
Well educated
Professional
Large cities
Median income $50,000
Spend on themselves
Surf Internet

http://www.esri.com/library/fliers/pdfs/community-tapestry-
poster.pdf
zmne_segments
zmne_segments
8-27
Geodemographic Profile
• What is the geodemographic profile for your
neighborhood?
• http://www.esri.com/data/community_data/
community-tapestry/index.html
http://www.esri.com/data/community_data/community-
tapestry/index.html
8-28
Location of Target Customers
in a Shopping Center Trade Area
1/24/2018
The Extended Fishbein Model:
The Theory of Reasoned Action
Do attitudes predicts behavior?

Critical Skills Employer Ranking Student Ranking
Motivation 1 2
Verbal Communication Skills 2 1
Ambition 3 3
Personality Fit 4 4
Decision Making 5 6
Self Discipline 6 13
Problem Solving 7 10
Ability to Organize 8 11
Work Independently 9 19
Self Assurance 10 7
Work in Teams Well 11 5
Practical Work Experience 12 9
Leadership 13 8
Time Management Skills 14 14
Creativity 15 12
Quantitative Skills 16 20

Writing Ability 17 17
Selling Skills 18 16
References 19 21
New Technology Skills 20 15
Negotiation Skills 21 18
Marketing Coursework 22 22
Willingness to Relocate 23 23
Grades 24 29
Honors 25 28
Involvement in Clubs 26 27
Programming Language 27 25
University Reputation 28 24
Foreign Language 29 26
Marketing 363
Consumer Behavior
Tom Gillpatrick

Center for Retail Leadership
[email protected]
Winter 2018 Week 2-1
mailto:[email protected]
Model of Buyer Behavior
Firms Product offering- (4 P’s)
Stages in the Buying Process
Culture &
Psychology
Factors Situational
Factors
1. Problem recognition
2. Information search
3. Information evaluation
4. Purchase decision
5. Post-decision evaluation
Cultural/Values
Subculture
Social class
Ref. Groups

Family
Personal
Psychological
-motivation
-perception
-learning
-attitudes
Task
Time
Social
Physical
Antecedent
Understand core American cultural values
Summarize changes in self, environment, and other-
oriented values
Discuss values as they relate to green marketing
Discuss values as they relate to cause-related

marketing
Discuss values as they relate to marketing to gay and
lesbian consumers
Discuss values as they relate to gender-based
marketing
L01
L02
L06
L05
L04
L03
Learning Objectives
Key Sociological Terms of Culture
• Artifacts

• Attitudes
• Beliefs
• Deviance
• Ideology
• Markers
• Norms
• Rituals
• Roles
• Status
• Tradition
• Values
Value Systems
Priorities: Set of rankings/ relative
importance of “universal” values
Differentiation between cultures
Core values: shared values within a culture
Enculturation: learning the beliefs and values of

one’s own culture
Acculturation: learning the value system and
behaviors of another culture
Socialization agents: parents, friends/groups,
teachers, church (religion), media
Value
a belief that some condition is
preferable to its opposite
Example: looking younger is preferable to looking older
Example: freedom is preferable to slavery
We seek others that
share our values/ beliefs
we tend to be exposed to
information that supports our
beliefs
Products/services =
help in attaining
value-related goal

consumer consistently select
products that consistently deliver
consequences which in turn leads to
value fulfillment
value - attitude - behavior
People make decisions
based on social values.
when choice is tied to a value, that choice
becomes more attractive to people that
share that value
Values are connected integrally to social change; as individual
representations of
society goals, individual values change over time as people
assume different roles in
life and as society changes.
http://www.gurusoftware.com/Guru
Net/Social/Topics/Values.htm
Social Values

• Groups have values shared by its
members.
• Conditions and characteristics
that members of the group
consider important.
• Values can often be identified by
noting which people receive
honor or respect.
• Members that express values that
are in serious conflict within a
group’s norm may face censure.
http://www.gurusoftware.com/GuruNet/Social/Topics/Values.ht
m
In class exercise - quick poll
On a piece of paper, write down the value that is most
important to you or that you hold as a central aspect of
your existence.
0

0
0
0
0
0
0
0
30-year longitudinal findings
Cultural values are widely held beliefs that affirm what is
desirable.
Observable shifts in behavior, including consumption behavior,
often reflect
underlying shifts in cultural values.
Therefore, it is necessary to understand the underlying value
shifts in order to
understand current and future consumer behavior.
Changes in American Cultural Values

The Good Wife’s
Guide (1950’s)
Much of these may seem outrageous, but this was the reality for
a woman
in those times. Below are some examples of what the article
suggested.
1. Plan the next day’s dinner the night before so that you can
have it hot
and ready for your husband right as he walks in. This lets him
know you’re
thinking of him and care about his needs.
2. Men are hungry when they come home after work, so a good
meal is part
of a proper, warm welcome home.
3. About 15 minutes before your husband arrives, take a quick
pause
to prepare yourself by touching up your makeup, sprucing up
your
hair, and generally freshening up. He’s seen a lot of work-weary
people all day, so look your best.
4. Be interesting and engaging for him. His day is filled with
boring

work, so one of your duties is to provide a lift when needed.
http://www.trendzified.net/good-housewife-guide/
5. Just before he arrives, do a quick sweep throughout the house
to clear away all
the clutter and do a quick dusting.
6. In the winter, prepare and light a fire for his return so he can
relax by it. He’ll feel
like he’s in a haven of rest and order, which will give you a
boost too. Catering to
your husband’s comfort will provide you with a wealth of
personal satisfaction.
7. Prepare the children so that their hair is
combed and hands and faces are washed.
8. Children are treasures and should behave as
such. Minimize the noise when he arrives by
encouraging them to be quiet. Eliminate any
noises from vacuums, washers, or dryers.
9. Always greet him in a cheery and positive

manner. Give a warm smile and show a sincere
desire to please.
10. Regardless of what you may need to discuss with your
husband and/or
how important it might be to you, the moment of his arrival is
not the
time. His conversation topics are more important so let him talk
first.
11. Evenings are his time. Do not complain if he comes home
late or goes
out for dinner (or anywhere else) without you. You must try to
understand
that his world is full of strain and pressure and he needs to be
able to relax.
12. A good wife’s goal is to make the home a place of
tranquility and calm
that her husband can renew himself in.
13. Never greet him with problems or complaints
14. If he’s late for dinner, or even if he stays out all night, don’t
complain. This is
minor compared to what he’s gone through that day.
15. His comfort is your priority. Have him kick back on a comfy
chair or in the
bedroom and have hot and cold drinks ready for him.

16. Fluff his pillows and take his shoes off. Talk in a low,
soothing voice.
17. Don’t question his actions or judgment. Remember, he is the
master of the
house and will always exercise his will. You have no right to
question him.
18. A good wife knows her place.
different. I
wonder what people will write about our generation in 60 years?
Traditional, Current, and Emerging American Values
Changes in American
Cultural Values
-Oriented Values
Postponed/Immediate Gratification; Hard work/Leisure;
Material/Nonmaterial; Active/Passive
-Oriented Values
iness; Tradition/Change; Risk Taking/Security;
Problem

Solving/Fatalistic; Admire/Overcome Nature;
Performance/Status
-Oriented Values
Limited/Extended;
Youth/Age; Competition/Cooperation; Masculine/Feminine
Changes in American Cultural Values
-Related Marketing
Consumers
-Based Marketing
Marketing Strategy and Values
Green Marketing
Shades of Green Market Segments
Some highly motivated overall and will pay more for eco-
friendly

•Eco-Centrists and Respectful Stewards
Some motivated by efficiency, practicality, and family
•Proud Traditionalists and Frugal Earth Mothers
Some very dismissive of environmental concerns
•Eco-Villians
As we saw earlier, values related to the environment vary
across consumers. Marketers must adapt.
to environmental claims. Some key elements of
the revised guides include:
•qualifying claims
•third-party certifications and seals
–
promoting environmental benefits that are
unsubstantiated and on which they don’t deliver.
Green Marketing and Regulation

Where is This?
Values-Based Supply Chains
(VBSCs)
suppliers
transaction costs through aggregation
– local branding
equitably across the supply chain
and business practices
Values Based Supply Chains
in Action
Food: National to Cultural
to Personal Identity

“All distinct cultural, ethnic, and [nations] define themselves,
and tend
to denigrate others, by asserting the superiority of the foods that
represent their social and moral values.
What 'we' eat is good and what 'they' eat is bad. ... meanings
associated with specific foods, the ways of preparing and eating
them also involve cultural, ethnic, and social class prejudices.
At the individual level, eating habits can be quite revealing of
personality [identity].
“Local” and “Sustainable”:
Changing context in the food system
: “local/regional,” “sustainable”
has increased markedly
with these values from “farm to fork”
as part of distribution networks.
-scale growers
-based supply chains”

Conceptual Framework of the Research
Demographic
Variables
Materialism
Values
Sustaina
-bility
Attitude
Pro-
Sustainability
Behavior
Perception that
Marketing can be
Change Agent
Perceived
Importance of
sustainability to

Business
Perceived
Self-
Efficacy
Knowledge of
Sustainability
+
+ +
+
+
-
+/ -
+/ -
METHOD
• Data were collected using Survey research and an online self-
administered
questionnaire from a sample of 200 business students in their
final years of

business education at a German business school (NGU) and an
American
business school (PSU). Sample size was 100 at each school for
a total of 200
respondents. Business students were felt to be a good proxy for
future
business decision makers.
• Measures- the list of items and scales used in this research
were based on
research by Pantelic et al. (2014). Those authors reviewed the
literature on
sustainability and business education for sustainability and
proposed a number
of multi-item factors that could be used to measure attitudes and
behavior. We
adapted those scales and assessed there reliability. In addition
we added
Richin’s and Dawson’s(1992) 18 item scale that measure
Materialism- Richins
and Dawson (92).
• All attitude constructs were measured via 7-point Likert scales
ranging
from “strongly disagree” = 1 to “strongly agree” = 7.

30
Reliability tests for scales
Reliability tests of scales German data, n=100
Combined, n=200 USA
Data
Scales
Number of
items
Cronbach’s
alpha (α)
Materialism 18 0.874
Centrality (Subscale) 7 0.689
Happiness (Subscale) 5 0.828
Success (Subscale) 6 0.812
Sustainability Attitude 5 0.766
Perceived self-efficacy
(combined= 3 items) 3 0.795
Self Report Sustainability
knowledge 3 0.635

Pro sustainability behavior 7 0.765
31
alpha (α)
0.848
0.755
0.819
0.802
0.775
0.778
0.677
0.823
alpha (α)
0.800
0.813
0.786
0.795
0.743
0.736

0.736
0.818
Materialism
Mean P <
Items Germany USA
Materialism- Success
I admire people who own expensive homes, cars, and
clothes.
4,09 4,45 .110
Some of the most important achievements in life
include acquiring material possessions.
3,59 3,48 .614
I don't place much emphasis on the amount of
material objects people own as a sign of success.
3,65 3,63 .930
The things I own say a lot about how well I'm doing in
life.
3,83 3,87 .874
I like to own things that impress people. 3,37 3,95 .012

I don't pay much attention to the material objects
other people own.
3,71 4,13 .057
Materialism
Centrality
Means
P <
Germany USA
I usually buy only the things I need. 4,40 4,00 .067
I try to keep my life simple, as far as possessions are
concerned.
4,27 3,72
.012
The things I own aren't all that important to me. 4,90 4,69 .317
I enjoy spending money on things that aren't
practical.
2,38 3,41
.000
Buying things gives me a lot of pleasure. 4,50 4,57 .739

I like a lot of luxury in my life. 3,95 4,08 .564
I put less emphasis on material things than most
people I know.
4,25 4,20
.755
Materialism
Happiness
Mean
P<
German USA
I have all the things I really need to enjoy life. 2,92 3,25 .129
My life would be better if I owned certain things I don't
have. 3,64 4,08 .050
I would be happier if I owned nicer things. 3,16 3,98 .000
I'd be happier if I could afford to buy more things. 3,53 4,68
.000
It sometimes bothers me quite a bit that I can't afford to
buy all the things I'd like. 3,80 4,17 .125

Attitude Toward Sustainability
Mean P <
Items Germany USA
We, should radically change our way of living to offset
the dangers of unsustainable life-styles and consumption
patterns.
4,69 5,25 .001
The Earth’s resources are limited and if we continue to
use these resources in an unsustainable way, the world
may not survive.
5,62 5,73 .583
I feel a personal obligation to engage in sustainable
practices.
4,54 5,20 .000
I actively try to contribute to sustainability by changing
my consumption patterns and life-style (preferring to
buy/eat/support organically grown and local products,
recycling, saving water and…
4,46 5,20 .000

I avoid buying products from companies that engage in
harmful, unsustainable, business practices.
3,73 4,96 .000
Perception of Personal
Responsibility (Self-Efficacy)
Mean P<
Items Germany USA
My individual contributions to a sustainable society are too
little to be meaningful.
4,19 3,98
,360
The solution to sustainability problems are not in the hands
of the common citizen.
5,03 4,61
,079
It is the responsibility of developed countries to solve the
environmental problems of the world. (CUT from scale)
3,53 3,18
,122

Sustainability problems should be left to the experts. 5,12 4,41
,001
Environmental problems make the future of the world look
bleak and hopeless. (Cut from Scale)
3,62 3,17
,040
Perceived Importance to
Business Decision-makers in my country
Mean P<
Items Germany USA
Sustainability issues are very important to companies
in my country.
5,34 4,46 .000
Sustainability concerns in my country are very
important to executives when companies develop and
implement their strategies (investment, product
development, marketing, etc.).
4,92 4,23 .000
Following sustainability practices can help companies

in my country achieve their goals or obtain benefits
from their sustainable conduct. Cut this item
5,13 5,32 .201
If companies in my country perform unsustainable
practices that come under public scrutiny, the extent
of damage to its business (sales, profit, brand image)
would be substantial. Cut this item.
4,98 4,81 .394
Pro-Environmentally Friendly Behavior
Means P<
Items Germany USA
I support local/fair trade/organic products. 3.95 4.93 ,000
I actively recycle/reduce waste/compost 5.27 5.65 ,006
I use public transit, walk/bike and less auto 3.86 4.58 ,259
I try to save energy and water usage 5.08 5.31 ,000
I try to educate myself about sustainable issues 3.71 4.82 ,000
I take active political action supporting

sustainability 1.62 3.78 ,000
I engage in activities to conserve nature 1.88 3.74 ,000
Conceptual Framework of the Research
Demographic
Variables
Materialism
Values
Sustaina
-bility
Attitude
Pro-
Sustainability
Behavior
Perception that
Marketing can be
Change Agent
Perceived

Importance of
sustainability to
Business
Perceived
Self-
Efficacy
Knowledge of
Sustainability
+
+ +
+
+
-
+/ -
+/ -
Regression model for “Pro-Sustainability Behavior”
as the dependent variable
Variable β P <

Attitude 0,621 0,000
Self-efficacy 0,197 0,000
knowledge 0,114 0,016
Materialism -0,049 0,259
Age 0,07 0,073
Gender -0,06 0,054
Notes:
β is standardized Beta.
Adjusted R2 = 0.658, F = 64.85, p < 0.000 , df = 6, (193)
n = 200
Regression model for PSB as the dependent variable
40
Regression model for “Marketing as
a Change Agent” as the dependent variable
Variable β P <
Attitude 0,339 0,000
Self-efficacy 0,026 0,703
Materialism -0,110 0,088
Age 0,075 0,073
Gender 0,183 0,054
Notes:

Adjusted R2 = 0.249, F = 12, p < 0.000 , df = 6, (193)
Durbin Watson=2,131
n = 200
Regression model for Mktg. as Change Agent as the dependent
variable
41
Regression model for “Importance to
Business” as the dependent variable
Variable β P <
Attitude -0,041 0,640
Self-efficacy -0,115 0,141
Materialism 0,016 0,827
Age 0,088 0,451
Gender 0,059 0,435
Notes:
Adjusted R2 = 0.003, F = 1.09, p < 0.368 , df = 6, (193) n =
200
Regression model for Importance of Sustainability to Business
as the dependent
variable

42
Cause-Related Marketing (CRM) is
marketing that ties a company and its
products to an issue or cause with the
goal of improving sales or corporate
image while providing benefits to the
cause.
Cause-Related Marketing (CRM)
Gender roles in the U.S.
are shifting, with both
genders making many
purchase decisions.
Example: Today, women
influence 80% of all
vehicles sold.
Gender-Based Marketing

Market Segmentation
Segmentation Based on Role Identity
Moving beyond stereotypes:
Rather than adapting colors to fit stereotypes
(e.g., pink power tools), companies are
adapting their features in ways that make
their products more functional.
Product Strategy

Retail Strategy
Men are increasingly shopping for
household and other products
traditionally purchased by
females, and females are
shopping for “masculine” products
such as lawn mowers and power
tools.
Retailers have begun showing
very masculine men shopping for
household products and carry
power tools targeted at women.
A subculture is a segment of a larger culture whose members
share distinguishing
values and patterns of behavior.
Identification with a Subculture Produces Unique Market
Behaviors

The Nature of Subcultures
2015
13.7%
-Indian
Americans
ab Americans
Ethnic Subcultures
Key Markets Today
Ethnic subcultures are those subcultures whose members’
unique

shared behaviors are based on a common racial, language, or
nationality background.
Major Ethnic Subcultures in the US 2010-2030
Ethnic Subcultures
Ethnic Subcultures
Demographics
expected to grow by 25% through 2014.
white population and tend to have less education and lower
household income levels, but differences continue to
decrease as a function of education.
One third of black household incomes >$50,000.
African Americans

Segments Identified by Yankelovich
African Americans
Regional Subcultures
Christian Subcultures
- Roman Catholic
- Protestant
- Born-Again Christian
Religious Subcultures
- Jewish
- Muslim
- Buddhist
Non-Christian Subcultures
Understand the critical role that demographics play in
influencing consumer behavior

Define the concept of generations and discuss the
generations that exist in America
Explain the concept of social stratification and the role
that socioeconomic factors play
Identify and discuss the major social classes in
America
Understand how social class is measured
Discuss the role of social class in developing
marketing strategies
L01
L02
L06
L05
L04
L03
Learning Objectives
Where Is The Growth For Luxury Brands?

in the future?
– 35 years or older with income
of $100k-199k in income (65% of all people who
earn $100k or more per year)
– Under 35 years old with
$100k-199k in income (12% of all people who
earn $100k or more per year)
Source: D. Hirschman, “On Road to Riches,” Advertising Age,
May 23, 2011, p. 9.
Consumer Behavior In The News…
Where Is The Growth For Luxury Brands?
fuel growth in luxury brands in the
future?
– Under 35 years old with $100k-199k in
income – if you answered Emerging you are right!
the
truly affluent ($200k plus) – a big predictor of luxury purchases

relates subjective discretionary wealth (SDI)
Source: D. Hirschman, “On Road to Riches,” Advertising Age,
May 23, 2011, p. 9.
Consumer Behavior In The News…
Global Population Growth
is Driven By Developing Countries
World Population 1950-2050.
Source: United Nations, World Population Prospects: The 2004
Revision (2005).
6.1 B
8.7 B
2.5 B
Community Service Council of Greater Tulsa
10 Largest Countries in the World
in 2007 and 2050 Projections
Population (millions) Population (millions)

China 1,318 India 1,747
India 1,132 China 1,437
United States 302 United States 420
Indonesia 232 Indonesia 297
Brazil 189 Pakistan 295
Pakistan 169 Nigeria 282
Bangladesh 149 Brazil 260
Nigeria 144 Bangladesh 231
Russia 142 Dem. Rep. of Congo 187
Japan 128 Philippines 150
2007 2050
Source: Population Reference Bureau, 2007 World Population
Data Sheets (2007).
Community Service Council of Greater Tulsa
Population Pyramid Projections
2010 2050
Population Change

Among States
Pew Research Center, March 2009, Magnet or Sticky? A State-
by-State Typology
Where are people moving to?
▪ Raleigh, NC
▪ Austin, TX*
▪ Charlotte, NC*
▪ Phoenix, AZ
▪ Dallas, TX*
▪ San Antonio, TX
▪ Houston, TX
▪ New Orleans, LA
▪ Atlanta, GA
▪ Denver, CO*
Data from 2008 Census released in March ’09
*Corresponds with data from American Moving and Storage
Association

Income
Demographics
Demographics and Social Stratification
Demographics
18-24 25-34 35-44 45-54 55-64 65+

-Depression
Mature Market
Understanding American
Generations
Generation Timeframe
Interbellum ~1900
Silent Between WW
War Baby WWII
Baby Boom 1946-1964
X 1965-1985
Y 1986-2002

Z’ 2003+
Changing Demographics: Generations
Generation Tween (z) Gen Y Gen X Boomers
Age (approx.) 8-14 15-28 29-45 45+
Population (m) 25-35 50-70 40-50 75-85
Spending ($B/y) $190 $200 $125 $2,000
Characteristics • “The richest generation”
and the “most influential
generation in history”
• View TV ads as “just
advertising”
• The Now! generation
• Impatient
• Family-oriented
• Inquisitive
• Opinionated
• Diverse
• Time managers

• “Street Smart”
• Word of mouth
marketing is effective
• Savvy and cynical
consumers
• Prize experiences, not
acquisitions
• Entering their money-
making years
• Income will continue to
grow.
• Do not worry about future,
job, or financial security.
• Home-centric and family-
oriented.
• Health is a big concern.
A Generation or age cohort is a group of

persons who have experienced a common
social, political, historical, and economic
environment.
Cohort analysis is the process of describing
and explaining the attitudes, values and
behaviors of an age group as well as
predicting its future attitudes, values, and
behaviors.
Understanding American Generations
Youth Market
Relatively “new” phenomenon in human history?
“Teenage” first used to describe youth generation in 1950s
Global youth market = massive and $
How to Target the Mature Market
Gerontographics has identified the following four
segments of the mature market:

- Healthy Indulgers
- Ailing Outgoers
- Health Hermits
- Frail Recluses
s also are:
-aging” products, travel, and
financial services
Baby Boom Generation: A Closer Look
stereotypes:

Stereotype 1
•Boomers all have the same values and outlook
Stereotype 2
•Boomers are self-centered
Stereotype 3
•Boomers are not tech savvy
Stereotype 4
•Boomers are married empty nesters who are
downsizing
Stereotype 5
•Boomers are all retiring early and wealthy
Segmenting the Boomer Market
Understanding American
Generations
– Xers as disenfranchised youth
•Reality 1– Xers are more highly educated than previous

generations
•Reality 2– Xer women are more highly educated than
Xer men
•Reality 3– Xers are getting married, having families and
facing the time pressures associated with these events
•Reality 4– Reaching Xers requires special attention to
media, particularly online
Generation Xers: A Closer Look
-Markets: Young Gen Y and Older Gen Y
previous generation
ssaging, and
social media
-generated buzz works with the high
level of social media of this segment

Generation Yers: A Closer Look
Targeting Generation Z
to remain relevant and fresh
Understanding
American
Generations
-Rainwater Hierarchy
ing Strategy

Social Stratification
We are all familiar with the concept of social class, but most of
us would have
difficulty explaining our class system to a foreigner.
Social rank is one’s position relative to others on one or more
dimensions
valued by society, also referred to as social class and social
standing.
A social class system is a hierarchical division of a society into
relatively
distinct and homogeneous groups with respect to attitudes,
values, and
lifestyles. "Pure” social classes do not exist in the U.S. or most
other
industrialized societies.
Status dimensions, such as parental status, education,
occupation and
income, set limits on one’s lifestyle, including one’s residence.

Status crystallization, which is moderate in the U.S., reflects
the consistency
of these status dimensions.
Web Exercise
What Social Class are You?
Play the “Chintz or Shag” Game from PBS Click button to link
to PBS site
http://www.pbs.org/peoplelikeus/games
http://www.pbs.org/peoplelikeus/games
Social Standing is Derived and Influences Behavior
Social Structure in the United States
Source: Information for this table adapted from Richard P.
Coleman, “The Continuing Significance of Social Class in
Marketing,” Journal
of Consumer Research, December 1983, p. 267; and Richard P.
Coleman and Lee P. Rainwater, with Kent A. McClelland,
Social Standing

in America; New Dimensions of Class (New York, NY: Basic
Books, 1978).
*Income is 2010 inflation adjusted dollars using U.S. Consumer
Price Index (CPI) data.
Upward Pull Strategy
Middle Americans
There are two basic approaches to measuring
social status:
- Single-item index
- Multi-item index
Since an individual’s overall status is influenced
by several dimensions, single-item indexes are
generally less accurate than are well-developed
multi-item indexes.
Measurement of Social Class

-Item Index
influencers of consumption behavior rather than
determinants of status that then influence
behavior.
-Item Index
Social status is largely derived from demographics; that is,
one’s income,
education, and occupation go a long way toward determining
one's social

class or status.
Should marketers use an overall measure of social status (a
multi-item index)
or a demographic variable such as income?
Unless the marketer is interested in social standing per se,
he/she will most
likely focus on demographic characteristics as direct influencers
on consumer
behavior!
Demographics or Social Status?
Social Stratification and Marketing
Continuing With the
Marketing Adventure
Part Two: Short Answer /Essay: ( 20 points) 100 pts. total. (
About ½ page in length each)
Please answer the following five questions, be sure to answer
all parts of each question you choose.
Have your name on each part- essay answers and MC answer

sheet.
1. In the lecture your instructor discussed his “iceberg” model
of culture. What were the components of his model? Why is
an iceberg a good “model” for culture? How can one learn
dimensions of culture?
Is culture static or dynamic? What influences cultural change?
2. In class we talked about Erin Myers dimensions for cultural
mapping. Using the following link
(http://erinmeyer.com/tools/self-assessment-questionnaire/ )
select link for assessment and take the quiz to self assess your
own cultural style. A. How to you compare with a typical
American style? B. Put in either a Chinese or Germany
nationality- (select one that is different from you) How do you
compare to this profile? C. How could a firm use cultural
mapping to better prepare managers for overseas assignments?
3. In your own family do you see different shopper roles based
on gender? Describe how these roles might impact shopping
behavior for food, a car, insurance, selecting a vacation? Do
you think gender based-shopping models are becoming less or
more useful with Gen Y vs. Boomers?
4. Using the following link (http://www.sric-
bi.com/VALS/presurvey.shtml) assess your own VALS profile.
Give an example of how a marketer could use this information
to better target you for a mobile phone promotion.
5. What should I have asked you? Write your own question and
answer it… Points for quality of question and answer.

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