Major Consumer Reference Groups Reference Groups

Major Consumer Reference

Groups

Reference Groups

Values and Culture:Cross-Cultural Comparisons.

Are Cultural differences that important Are Cultural differences that important in our modern society ?in our modern society ?

USA60% child, 35% wife,

5% mother

Asia 85% mother

* Horton (2001)* Hofstede (1983)

If you were on a sinking ship with your wife, your child, and your mother, each of whom could not swim,

which one would you save, if you could only rescue one? *

*

Why Talk about Cultural Why Talk about Cultural Differences ?Differences ?

″Differences between national cultures create important opportunities for growth and development, but also can cause serious problems if they are not understood.″

(Mead 1998)

ProblemsProblems

Communication blundersWhen Pepsi started marketing its products in China a few years back, they translated their slogan: "Pepsi Brings You Back to Life" quite literally. The slogan in Chinese really meant: "Pepsi Brings Your Ancestors Back from the Grave."

Clairol, introduced the "Mist Stick", a curling iron, in Germany only to find out that mist is slang for trash or waste.

““Culture may be thought of as a Culture may be thought of as a society’s society’s personalitypersonality.”.”

““It includes both It includes both abstract ideasabstract ideas, such as , such as values and ethics, as well as the values and ethics, as well as the material material

objects and servicesobjects and services, such as automobiles, , such as automobiles, clothing, food, art…that are consumed or clothing, food, art…that are consumed or

valued by a valued by a group of peoplegroup of people.” .” (Hoyer and McInnis, (Hoyer and McInnis, 2001)2001)

““Culture is the accumulation of Culture is the accumulation of sharedshared meanings, rituals, norms and traditions meanings, rituals, norms and traditions

among the among the membersmembers of an organization or of an organization or a society.” a society.” (Schiffman and Kanuk, 1998)(Schiffman and Kanuk, 1998)

Two Images for a Better Two Images for a Better Understanding of CultureUnderstanding of Culture

““Culture can be Culture can be pictured as a pair pictured as a pair of glasses through of glasses through

which people which people perceive their perceive their environment.”environment.”

““Culture and Culture and Consumer Consumer

Behavior can also Behavior can also be pictured as a be pictured as a two-way street.”two-way street.”

Sources of cultureSources of culture

Language Nationality

Education Profession

Group (ethnicity) Religion

Family Consumption

Social class

Culture: Sharing ValuesCulture: Sharing Values

Universal

A Relative Importance: A system of values.

Role of Enculturation

““Every culture is defined by a set of values Every culture is defined by a set of values

shared by its members.”shared by its members.”

Values of SocietyValues of Society

The Values Transfusion Model


Religious Religious InstitutionsInstitutions

Early Early Lifetime Lifetime

ExperiencesExperiences

FamilyFamilyEducational Educational InstitutionsInstitutions







Individual Individual Internalized Internalized

ValuesValuesPeersPeers MediaMedia







Society of Society of FutureFuture

Individual Individual Internalized Internalized

ValuesValuesPeersPeers MediaMedia


The Rokeach Value Survey Instrument

TERMINAL VALUES INSTRUMENTAL VALUES

A COMFORTABLE LIFE AMBITIOUS

AN EXCITING LIFE BROAD-MINDED

A WORLD AT PEACE CAPABLE

EQUALITY CHEERFUL

FREEDOM CLEAN

HAPPINESS COURAGEOUS

NATIONAL SECURITY FORGIVING

PLEASURE HELPFUL

SALVATION HONEST

SOCIAL RECOGNITION IMAGINATIVE

TRUE FRIENDSHIP INDEPENDENT

WISDOM INTELLECTUAL

TERMINAL VALUES INSTRUMENTAL VALUES

A WORLD OF BEAUTY LOGICAL

FAMILY SECURITY LOVING

MATURE LOVE OBEDIENT

SELF-RESPECT POLITE

A SENSE OF ACCOMPLISHMENT RESPONSIBLE

INNER HARMONY SELF-CONTROLLED

Summary of American Core Values

VALUEGENERAL FEATURES

RELEVANCE TO CONSUMER BEHAVIOR

ACHIEVEMENT AND SUCCESS ACTIVITY

Hard work is good; success flows from hard work

Acts as a justification for acquisition of goods

EFFICIENCYAND PRACTIALITY

Admiration of things that solve problems

People can improve themselves; tomorrow should be better than today. Stimulates desire for new products that fulfill unsatisfied needs; ready acceptance of products that claim to be “new and improved”

Keeping busy is healthy and natural

Stimulates interest in products that are time-savers and enhance leisure time



MATERIAL COMFORT

“The good life” Fosters acceptance of convenience and luxury products that make life more comfortable and enjoyable

FREEDOM Freedom of choice Fosters interest in wide product lines and differentiated products

INDIVIDUALISM Being oneself Stimulates acceptance of customized or unique products that enable a person to express his or her own personality

EXTERNAL CONFORMITY

Uniformity of observable behavior; desire for acceptance

Stimulates interest in products that are used or owned by others in the same social group



YOUTHFULNESS A state of mind that stresses being “young at heart” and having a youthful appearance

Stimulates acceptance of products that provide the illusion of maintaining or fostering youthfulness

HUMANITAR-IANISM

Caring for others, particularly the underdog

Stimulates patronage of firms that compete with market leaders

FITNESS AND HEALTH

Caring about one’s body, including the desire to be physically fit and healthy

Stimulates acceptance of food products, activities, and equipment perceived to maintain or increase physical fitness

Example of Value use in Advertising: Molson Canadian

Reinforcement of Nationalism-Patriotism:

Survey

Product, Communication and positioning.

Canadian difference reinforced.

1-2-3-4-5-6

American Core Values

American values and advertising

Which core values provide appeals for advertising?

Understanding values helps advertisers avoid violating norms or standards of society

Sometimes advertisers shock consumers by “breaking the rules”

SymbolSymbolAnything that stands for

something else. Symbols can be verbal or nonverbal.

RitualRitual

A type of symbolic activity consisting of a series of steps

(multiple behaviors) occurring in a fixed

sequence and repeated over time.

Selected Rituals and Associated Artifacts

SELECTED RITUALS TYPICAL ARTIFACTS

Wedding-2 White gown (something old, something new, something borrowed, something blue)

Birth of child U.S. Savings Bond, silver baby spoon

Jogging Towel, exercise clothes, water, portable tape player

50th Wedding Anniversary Catered party, card and gift, display of photos of the couple’s life together

Graduation Pen, U.S. Savings Bond, card, wristwatch

Valentine’s Day Candy card, flowers

New Year’s Eve Champagne, party, fancy dress

Thanksgiving Prepare a turkey meal for family and friends

SELECTED RITUALS TYPICAL ARTIFACTS

Jogging Towel, exercise clothes, water, portable tape player

Sunday football Beer, potato chips, pretzels

Super Bowl Party Same as Sunday football (just more)

Starting a new job Get a haircut, buy some new clothing

Get a job promotion Taken out to lunch by coworkers, receive token gift

Retirement Company party, watch, plaque

Death Send a card, give to charity in the name of the deceased

Classifying and Comparing Classifying and Comparing CulturesCultures

4 dimensions (Hofstede, 1980)

Power Distance

Uncertainty Avoidance

Masculinity/Feminity

Collectivism/Individualism

Period artifact, sample, attitude-survey, (Horton et al, 2001; Sondegaard, 1994)

Cross-Cultural MarketingCross-Cultural Marketing

Adaptation Local standards Local hygiene and safety

standards Local particuliarities in service,

maintenance and distribution Avoidance of unfavorable image

of imported products, companies, nationality or brand names

Cultural adequate use of symbols possible

Standardization Use of:

Experience effects Economies of scale International standards

International use of products Significant learning effects Use of favorable image of

imported products, companies, nationality or brands, exotic or ethnic appeal

Subculture

“ Groups whose members share beliefs and common experiences that set them apart from other members of a culture”

“A distinct cultural group that exists as an

identifiable segment within a larger, more complex society.”

Relationship Between Culture and Subculture

SubculturalTraits

of HispanicAmericans

DominantCulturalTraits of

U.S. Citizens

SubculturalTraits

of AsianAmericans

Examples of Major Subcultural Categories

CATEGORIES EXAMPLES

Nationality French, Puerto Rican, Korean

Religion Catholic, Hindu, Jew

Geographic region Southeastern, Midwestern, Eastern

Race African-American, Caucasian, Asian-American

Age Y, Xers, middle age, elderly

Gender Female, Male

Occupation Engineer, cook, plumber

Social class Lower, middle, upper

LifestyleLifestyle Studies StudiesHow time is spent

Importance of things around them

Beliefs

Socioeconomic characteristics

Lifestyle Segmentation

Duck Head Targetsa casual studentlifestyle.

HWhat types of student lifestyles do the following companies target:

•Tommy Hilfiger?•Gap?•DKNY?•Pacific Sunwear? Click or press spacebar to return.

Principle OrientedPrinciple Oriented Status OrientedStatus Oriented

Abundant ResourcesAbundant Resources

Minimal ResourcesMinimal Resources

Action OrientedAction Oriented

VALS 2VALS 2 - - LIFESTYLE SEGMENTATIONLIFESTYLE SEGMENTATION

Source: VALS 2, SRI International


FULFILLEDFULFILLED11%11%

BELIEVERSBELIEVERS16%16%








ACTUALIZERSACTUALIZERS8%8%

ACHIEVERSACHIEVERS13%13%

STRIVERSSTRIVERS13%13%

STRUGGLERSSTRUGGLERS12%12%








ACTUALIZERSACTUALIZERS8%8%

ACHIEVERSACHIEVERS13%13%

STRIVERSSTRIVERS13%13%

STRUGGLERSSTRUGGLERS12%12%




EXPERIENCERSEXPERIENCERS12%12%

MAKERSMAKERS13%13%


Subcultures

Ethnic Subculture

The US situation (plurality and main groups)

Ethnic groups geographically concentrated

Effect of Immigration

Major changes

Intercultural InfluenceIntercultural Influence

When and how cultural changes happen?

Acculturation and ethnic Identity

Measures: Social Participation, Language, Religion…..

Unidimensional versus bi-level.

Acculturation Ethnic identityIndividual A

Individual A

Individual A

Strong Acc Weak Acc

Strong Et Id Weak Et Id

U.S. Ethnic Landscape : Cues for Reflection

Source: Claritas, 2003

Targeting Targeting Hispanic-Hispanic-American American

ConsumersConsumers

Challenges for Ethnic Marketing in the Challenges for Ethnic Marketing in the U.S.U.S.

Privacy and Redlining : ethical issues

Preconceived perceptions of ethnic groups

Diversity within an ethnic group and constant evolution of ethnicity: Post Ethnic America.

Issues in Studying Hispanic Issues in Studying Hispanic American SubculturesAmerican Subcultures

Hispanic Consumer Behavior– Stronger preference for well-established brands– Prefer to shop at smaller stores– Some are shifting food shopping to non-ethnic

American-style supermarkets– Youths are more fashion-conscious

Ways in Which “Hispanic” Has Been Defined

NAME OF INDICATOR

NATURE/SCOPE AND COMMENTARY

Spanish surname

Not a definitive; since a non-Hispanic person might have a Spanish surname, or an Hispanic person might have a non-Spanish surname.

Country of origin

The birthplace of persons born in the Untied States of Hispanic parents would not reveal their Hispanic background.

Country of family ancestry

Includes those individuals who may not be Hispanic despite coming form a particular Spanish-Latin country.

Spanish spoken at home

A significant minority of Hispanic households may speak English at home, yet consider themselves to be cultural Hispanic.

Self-identification

It is reasonable that if an adequate number of self-report choices are offered, a person might identify himself or herself as “Hispanic.”

Degree of identification

This measure captures the “degree” of personal identification as “Hispanic” and augments the self-identification measure.

Figure 13.4 Hispanic Linguistic Figure 13.4 Hispanic Linguistic ChallengeChallenge

Bilingual/ preferSpanishBilingual/ nopreferenceBilingual/ preferEnglishSpanish only

English only

Reaching the African-Reaching the African-American AudienceAmerican Audience

Two Alternate Strategies– Running all the advertising in

general mass media– Running additional advertising

at special advertising in selected media directed exclusively to African-Americans

Asian-American ConsumersAsian-American Consumers

Where Are the Asian-Americans?– Largely urban

Asian-Americans As Consumers– Buying power of $110 billion

annually– Brand loyal customers– Frequently male-oriented consumer

decisions– Attracted to retailers who welcome

Asian-American patronage

Facts and Figures regarding Ethnic Facts and Figures regarding Ethnic MarketsMarkets

Facts and Figures regarding Ethnic Facts and Figures regarding Ethnic MarketsMarkets

Regional InfluencesRegional Influences

Regions Within the United States– Nine Nations of North America

Exhibit 13.3a: The “Nine Nations of North America”

Source: Journal of Marketing. Art reprinted by permission.

Table 13.4 Product Purchase/Usage by Leading Metropolitan Market

PRODUCT PURCHASE/USAGE

HIGHEST PURCHASE/USAGE

LOWEST PURCHASE/ USAGE

Own Rollerblades/in-line skates Detroit DallasNew domestic car Detroit San Francisco

New imported car Washington, D.C. Detroit

Have life insurance Cleveland San Francisco

Drink Scotch whiskey Dallas ClevelandPurchased men’s jeans Cleveland New YorkHave a bowling ball Detroit Boston

Use eyeliner Dallas Philadelphia

Use artificial sweeteners Dallas-Fort Worth San Francisco

Used cough syrup (past 6 months) Chicago Washington, D.C.

Popcorn (past 6 months) Detroit New York

Lottery tickets (past 12 months) Cleveland Washington, D.C.

Major Age SubculturesMajor Age Subcultures

Generation X Market

Baby Boomer Market

SeniorsMarket

Generation YMarket

Age and ChallengesAge and Challenges

Kids and Tweens

Teens

Young Adult

Middle Adult

Older Adult

Having cool stuffMaking friends

Fitting in RebellingDating

CollegeJobCarHousing and furnishingsMarriage/Committed partnerChildren

ChildrenBigger house and more furnishingsAging parentsManaging time

RetirementManaging healthMaintaining social relations

Age Challenges Implications:

Cohort Effects and PreferencesCohort Effects and Preferences

Girl/Boy bandsTerrifiedSave young, retire early

1995-2012

Rap, Grunge, Retro

ConfusedSpend? Save?What?

1984-1995

Rock & RollPermissiveSpend, spend, borrow, spend

1973-1983

Rock & RollPermissiveSpend, spend, borrow, spend

1964-1972

Frank Sinatra,Patti Page

RepressiveSave some, spend some

1946-1963

SwingAmbivalentSave a lot, spend a little

1940-1945

Big BandIntolerantSave for a rainy day

1930-1939

Favorite Music

Sex MindsetMoney MottoComing of Age

Cohort

Depression

World War II

Post-War

Boomers I

Boomers II

Generation X

Generation Y

KidsKids Brand Formation

– 98% of kids aged 9-13 know what car they would like to drive when they grow up.

– 97% know the best brand of athletic shoe.– 93% know the best store to buy athletic shoes.– 90% know the best store to buy clothing with sports

team logos.– 84% know the best brand of computer.– 77% know the best hotel.– 75% know the best brand of camera.

Source: Sports Illustrated for Kids 1997 Omnibus Studies.

Kids: What Makes A Kid Cool? Kids: What Makes A Kid Cool?

88

87

84

82

80

74

74

65 70 75 80 85 90

Very good at sports

Always happy

Jokes a lot

Listens to the coolest music

Gets good grades

Is good looking

Wears the right brand of clothes

93% of kids between 9 and 13 influence what kinds of jeans their parents buy for them.

89% influence the kind of cookies, desserts, soda, chips and cereal purchased for their household.

61% of kids said they helped their parents decide what kind of family car to buy.

41% of kids whose parents bought a new car took the kids with them when car shopping.

KidsKids

Source: Sports Illustrated for Kids 1997 Omnibus Studies.

Grew up with working mothers, divorce, threat of AIDs. Searching for a soul-mate. 82% of 18-24 say motherhood is the most important job in the

world, compared to 72% of Generation X’ers. 24% of 18-24 say sex before marriage is not wrong at all,

compared to 48% of those 45-54. Dating Safety trends

– Meeting in coffee bars– Group dates– Blockbuster nights– Finding love online: love@aol (125,000 ads year round, 43,000 from

18-25 year oldschat rooms “go voice” actual meeting) Cyber Vows chat room (reception for the new millennium).

Love and Generation YLove and Generation Y

Source: Helene Stepinski, “Y Not Love”, American Demographics, February 1999.

Generation Generation YY

Born between 1977 and 1994; also called

echo boomers and millennium generation

Gen Y Adult Gen Y Adult AppealAppeal

Generation XGeneration X

Born between 1965 and 1979; post baby

boomer segment (also referred to as Xers or

busters).

Baby Baby BoomersBoomers

Individuals born between 1946 and

1964 (approximately 45% of the adult

population).

Baby BoomersBaby Boomers

The largest age category alive todayFrequently make important consumer

purchase decisionsInclude a small subsegment of trendsetting

consumers (yuppies) who influence consumer tastes of other age segments

ApplicationApplication

Sony is introducing a new 27-inch TV with a picture-in-picture feature. How should the company position and advertise the product to (a) generation X consumers and (b) affluent baby boomers?

Ex 1 - 2

Appealing Appealing to Yuppiesto Yuppies

SeniorsSeniors

Generally older consumers. Consist of subcultures, including the 50-plus market and the “elderly consumers”

market.

Three Senior SubsegmentsThree Senior Subsegments

The Young-Old (65-74)The Old (75-84)The Old-Old (85 and older)

Issues in Understanding Sex Issues in Understanding Sex as a Subcultureas a Subculture

Sex Roles and Consumer Behavior– Masculine vs. Feminine Traits

Sexual Orientation– Segmentation Issues– Shopping Patterns

Religious SubculturesReligious Subcultures200+ organized religious groups in the U.S.Primary organized faiths include:

– Protestant denominations– Roman Catholicism– Judaism or other

Consumer Behavior is directly affected by religion in terms of products that are symbolically and ritualistically associated with the celebration of religious holidays

Ad Ad Containing Containing

Kosher Kosher IndicatorIndicator

Subcultures of ConsumptionSubcultures of Consumption

“ “PinkPink” Marketing” Marketing

“ “VertVert” ” MarketingMarketing

Sports MarketingSports Marketing

ApplicationApplication

Using one of the subculture presented, identify a group that can be regarded as a subculture within the university. Describe the norms, values and behaviors of the subculture members. How would marketers reach this group?

Documents

Major Consumer Reference Groups Reference Groups