Upload
khalid-javaid-anwer
View
216
Download
1
Embed Size (px)
DESCRIPTION
hi
Citation preview
PART II: EXTERNAL INFLUENCESPART II: EXTERNAL INFLUENCES
4-1
CHAPTERCHAPTER 44THE CHANGING THE CHANGING
AMERICAN AMERICAN SOCIETY: SOCIETY:
DEMOGRAPHICS DEMOGRAPHICS AND SOCIAL AND SOCIAL
STRATIFICATIONSTRATIFICATION
4-2
Consumer Behavior In The News…Consumer Behavior In The News…
Laundry Without Water? Laundry Without Water?
Tide launched Swash, a line of products to freshen Tide launched Swash, a line of products to freshen and de-wrinkle clothes without washing them.and de-wrinkle clothes without washing them.
Can you guess who the target market is?Can you guess who the target market is?
Baby BoomersBaby Boomers
Generation XGeneration X
Generation YGeneration Y
Source: “Laundry 101: No Water Necessary,” Business Week, November 19, 2007, p. 25.4-3
Consumer Behavior In The News…Consumer Behavior In The News…
Swash Target Market? Swash Target Market?
If you guessed If you guessed Generation YGeneration Y you were correct! you were correct! Specifically, the college-aged crowd.Specifically, the college-aged crowd.
As one expert explains: As one expert explains:
““It’s wise to go after young adults this way. A It’s wise to go after young adults this way. A loyalty to Tide may pay off later, when their loyalty to Tide may pay off later, when their domestic skills kick in.”domestic skills kick in.”
Source: “Laundry 101: No Water Necessary,” Business Week, November 19, 2007, p. 25.4-4
Demographics and Social StratificationDemographics and Social Stratification
Population and SizePopulation and Size
OccupationOccupation
EducationEducation
IncomeIncome
AgeAge
Demographics
4-5
Demographics and Social StratificationDemographics and Social Stratification
Occupational Influences on Consumption
4-6
Demographics and Social StratificationDemographics and Social Stratification
Education Level Influences on Consumption
4-7
Demographics and Social StratificationDemographics and Social StratificationDemographics
AgeAge
U.S. Age Distribution1
Key Growth Categories
1“Resident Population Projections by Sex and Age: 2010 to 2050,” Statistical Abstract of the United States 2008 (Washington, DC: U.S. Bureau of the Census, 2008), Table 10.4-8
Demographics and Social StratificationDemographics and Social Stratification
Age Influences on Consumption
18-24 25-34 35-44 45-54 55-64 65+
4-9
Understanding American GenerationsUnderstanding American Generations
A Generation Generation or age cohort age cohort is a group of persons who have experienced a common social, political, historical, and economic environment.
Cohort analysisCohort 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.
4-10
Pre-DepressionPre-Depression
DepressionDepression
Baby BoomBaby Boom
Generation XGeneration X
Generation YGeneration Y
TweensTweens
Understanding American GenerationsUnderstanding American Generations
Mature MarketMature Market
4-11
Understanding American GenerationsUnderstanding American Generations
How to Target the Mature Market
Gerontographics has identified the following four
segments of the mature market:
- Healthy IndulgersHealthy Indulgers - Ailing OutgoersAiling Outgoers - Health HermitsHealth Hermits - Frail Recluses
4-12
Understanding American GenerationsUnderstanding American Generations
Compared to prior generations, Boomers are:
Higher income, higher education
More tech savvy
Defining retirement differently
Boomers also are:
Strong market for “anti-aging” products, travel, and financial services
Often alienated by overly “youth oriented” appeals in ads
Baby Boom Generation: A Closer LookBaby Boom Generation: A Closer Look
4-13
Understanding American GenerationsUnderstanding American Generations
Beyond the stereotype:
Stereotype – 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 LookGeneration Xers: A Closer Look
4-14
Understanding American GenerationsUnderstanding American Generations
Interesting Facts About Gen Y:
Really Two Sub-Markets: Older teens & young adults
Expected to have the highest education of previous generations with incomes to follow
Very tech savvy with media options including Internet, cell phones, and video games
A strong market for automobiles with brands like Toyota creating edgy and affordable models such as the Scion to target them
Generation Yers: A Closer LookGeneration Yers: A Closer Look
4-15
Applications in Consumer BehaviorApplications in Consumer Behavior
Palm Centro ad Palm Centro ad targets the active and targets the active and diverse “youth diverse “youth market.”market.”
Notice the use of Notice the use of texting and sports as texting and sports as “touch points.”“touch points.”
© 2007 Palm, Inc. All rights reserved.
4-16
Social Rank and Social Class SystemSocial Rank and Social Class System
Status CrystalizationStatus Crystalization
The Derived Nature of Social ClassThe Derived Nature of Social Class
The Coleman-Rainwater HierarchyThe Coleman-Rainwater Hierarchy
The Measurement of Social ClassThe Measurement of Social Class
Social Stratification and Marketing StrategySocial Stratification and Marketing Strategy
Social StratificationSocial Stratification
4-17
Social StratificationSocial 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 rankSocial 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 systemsocial 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.
4-18
Social StratificationSocial Stratification
Status dimensions, such as parental status, education, occupation and income, set limits on one’s lifestyle, including one’s residence.
Status crystallizationStatus crystallization, which is moderate in the U.S., reflects the consistency of these status dimensions.
Web Web ExerciseExerciseWhat Social Class are You?What Social Class are You?
Play the “Chintz or Shag” Game from PBSPlay the “Chintz or Shag” Game from PBSClick button to link to PBS siteClick button to link to PBS site
4-19
Social Structure in the United StatesSocial Structure in the United States
Social Standing is Derived and Influences BehaviorSocial Standing is Derived and Influences Behavior
4-20
Social Structure in the United StatesSocial Structure in the United StatesThe Coleman-Rainwater Social Class HierarchyThe Coleman-Rainwater Social Class Hierarchy
4-21
Social Structure in the United StatesSocial Structure in the United States
The Coleman-Rainwater Social Class HierarchyThe Coleman-Rainwater Social Class Hierarchy
4-22
Social Structure in the United StatesSocial Structure in the United States
Upward Pull StrategyUpward Pull Strategy
Middle AmericansMiddle Americans
4-23
The Measurement of Social ClassThe Measurement of Social Class
There are two basic approaches to measuring social status:
- Single-item index- Single-item index
- Multi-item index- Multi-item index
Since an individual’s overall status is influenced by several dimensions, single-item indexessingle-item indexes are generally less accurate than are well-developed multi-item indexesmulti-item indexes.
4-24
The Measurement of Social ClassThe Measurement of Social Class
• Single-Item IndexSingle-Item Index EducationEducation
OccupationOccupation
IncomeIncome
• Marketers generally think of these as direct influencers of consumption behavior rather than determinants of status that then influence behavior.
4-25
The Measurement of Social ClassThe Measurement of Social Class
• Multi-Item IndexMulti-Item Index
Hollingshead Index of Social PositionHollingshead Index of Social Position
Index of Social Position (ISP)Index of Social Position (ISP)
4-26
The Measurement of Social ClassThe Measurement of Social Class
Social statusSocial status is largely derived from demographicsdemographics; 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 statussocial status (a multi-item index) or a demographicdemographic 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?Demographics or Social Status?
4-27
Social Stratification and Marketing StrategySocial Stratification and Marketing Strategy
While social stratification does not explain all consumption behaviors, it is certainly relevant for some product categories.
You can clearly see this by visiting a furniture store in a working-class neighborhood and then an upper-class furniture store.
A product or brand may have different meanings to members of different social strata, for example, a watch.
Likewise, different purchase motivations for the same product may exist between social strata.
4-28