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Transcript of Module 4
Amity Business School
1
Amity Business School
MBA Class of 2011, Semester III
Consumer Behaviour
Module-IV
Vivek Singh Tomar
Amity Business School
• Group Dynamics and Reference Groups,
• Family Decision Making
• Social Class
• Culture
• Subculture
Module IV (Content)
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What is a Group?
• Two or more people who interact to accomplish either individual or mutual goals
• A membership group is one to which a person either belongs or would qualify for membership
• A symbolic group is one in which an individual is not likely to receive membership despite acting like a member
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Reference GroupReference Group
A person or group that serves as a point of
comparison (or reference) for an individual in
the formation of either general or specific
values, attitudes, or behavior.
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Broad Categories of Reference Groups
• Normative Reference Groups
• Comparative Reference Groups
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Indirect Reference GroupsIndirect Reference Groups
Individuals or groups with whom a person
identifies but does not have direct face-to-
face contact, such as movie stars, sports
heroes, political leaders, or TV personalities.
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Major
Consumer
Reference
Groups
Reference Groups
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Positive Influences on Conformity
Group Characteristics
• Attractiveness
• Expertise
• Credibility
• Past Success
• Clarity of Group Goals
Personal Characteristics
• Tendency to Conform
• Need for Affiliation
• Need to be Liked
• Desire for Control
• Fear of Negative Evaluation
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Factors Encouraging Conformity:
A Reference Group Must ...
• Inform or make the individual aware of a specific product or brand
• Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group
• Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group
• Legitimize the decision to use the same products as the group
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Selected Consumer-Related
Reference Groups
• Friendship groups
• Shopping groups
• Work groups
• Virtual groups or communities
• Consumer-action groups
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Brand Communities
• Suzuki Swift owners club
www.swiftowners.co.uk
• Sunsilk Gang of Girls
• Harley Davidson Owner Groups
• Kwality walls Cornetto hojaanede.com
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Reference Group Appeals
• Celebrities
• The expert
• The “common man”
• The executive and employee spokesperson
• Trade or spokes-characters
• Other reference group appeals
Reebok uses
Celebrity Appeal:
Dhoni and Bipasha
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Types of Celebrity AppealsTYPETYPE DEFINITIONDEFINITION EXAMPLEEXAMPLE
Testimonial Based on personal usage, a celebrity
attests to the quality of the product or
service
Saif Ali Khan Ford Fiesta
Endorsement Celebrity lends his name and appears
on behalf of a product or service with
which he/she may not be an expert
Amitabh Bacchan Perfume
Actor Celebrity presents a product or
service as part of a character
endorsement
David Beckham Gillete Mach
III
Spokesperson Celebrity represents the brand or
company over an extended period of
time
Bipasha Basu Gili
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Customers
Providing
Testimonials
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Spokes Character
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Households
Households
Family Households:
Married couple,
Nuclear family,
Extended family
Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
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The Typical Household?
• Canada: Nuclear family
• Thailand: Extended family
• USA: Not married, no children
• India: Joint Family
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Consumer SocializationConsumer Socialization
The process by which children acquire the
skills, knowledge, and attitudes necessary to
function as consumers.
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Consumption Related
Socialization
Amity Business SchoolA Simple Model of the
Socialization Process
Influence More Basic
Values/Behavior
•Moral/religious principles
• Interpersonal skills
•Dress/grooming standards
•Manners and speech
•Educational motivation
•Occupational career goals
•Consumer behavior norms
Influence More Basic
Values/Behavior
•Moral/religious principles
• Interpersonal skills
•Dress/grooming standards
•Manners and speech
•Educational motivation
•Occupational career goals
•Consumer behavior norms
Influence More Expressive
Attitudes/Behavior
• Style
• Fashion
• Fads
• “In/Out”
•Acceptable consumer behavior
Influence More Expressive
Attitudes/Behavior
• Style
• Fashion
• Fads
• “In/Out”
•Acceptable consumer behavior
Other Family
Members
Other Family
Members FriendsFriends
Young PersonYoung Person
Preadolescent Adolescent Teens Older
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Other Functions of the Family
• Economic well-being
• Emotional support
• Suitable family lifestyles
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Appealing to the
Responsibility of
Providing for Future
Family Financial
Need
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Kurkure family
oriented theme
advertising
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ROLEROLE DESCRIPTIONDESCRIPTION
Influencers Family member(s) who provide information to other members about a product
or service
Gatekeepers Family member(s) who control the flow of information about a product or
service into the family
Deciders Family member(s) with the power to determine unilaterally or jointly whether
to shop for, purchase, use, consume, or dispose of a specific product or service
Buyers Family member(s) who make the actual purchase of a particular product or
service
Preparers Family member(s) who transform the product into a form suitable for
consumption by other family members
Users Family member(s) who use or consume a particular product or service
Maintainers Family member(s) who service or repair the product so that it will provide
continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a
particular product or service
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Dynamics of Husband-Wife
Decision Making
• Husband-Dominated
• Wife-Dominated
• Joint
– Equal
– Syncratic
• Autonomic
– Solitary
– Unilateral
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The Family Life Cycle
• Traditional Family Life Cycle
– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
– Stage IV: Postparenthood
– Stage V: Dissolution
• Modifications - the Nontraditional FLC
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Targeting the To-Be- Married Segment
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Targeting the
PostParenthood
Stage
Amity Business SchoolAn Extended Family life Cycle
Middle-Aged
Divorced without
Children
Middle-Aged
Married without
Children
Young
Divorced without
Children
Young
Single*
Young
Married
without
Children*
Young
Married
with
Children*
Middle-
Aged
Married
with
Children*
Middle-
Aged
Married
without
Dependent
Children*
Older
Married*
Older
Unmarried*
Middle-
Aged
Divorced
with
Children
Middle-
Aged
Divorced
without
Children
Young
Divorced
with
Children** Traditional Family Flow
Recycled Flow
Usual Flow
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Noteworthy Nontraditional FLC Stages
Family Households
Childless couples It is increasingly acceptable for married couples to elect
not to have children. Contributing forces are more career-
oriented married women and delayed marriages.
Couples who marry later in
life (in their late 30s or later)
More career-oriented men and women and greater
occurrence of couples living together. Likely to have
fewer or even no children.
Couples who have first child
later in life (in their late 30s or
later)
Likely to have fewer children. Stress quality lifestyle:
“Only the best is good enough”
Alternative FLC Stages Definition/Commentary
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Family Households
Single parents II Young man or woman who has one or more children out
of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to avoid the
expenses of living alone while establishing their careers.
Divorced daughter or son and grandchild(ren) return
home to parents. Frail elderly parents who move in with
children. Newlyweds living with in-laws.
Alternative FLC Stages Definition/Commentary
Single parents I High divorce rates (about 50%) contribute to a portion of
single-parent households
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Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and homosexual
couples.
Divorced persons (no children) High divorce rate contributes to dissolution of households
before children are born.
Single persons (most are
young)
Primarily a result of delaying first marriage; also, men
and women who never marry.
Alternative FLC Stages Definition/Commentary
Widowed persons (most are
elderly)
Longer life expectancy, especially for women; means
more over-75 single-person households.
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Social ClassSocial Class
The division of members of a society into
a hierarchy of distinct status classes, so
that members of each class have either
higher or lower status than members of
other classes.
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Social Class and Social Status
• Status is frequently thought of as the relative rankings of members of each social class
–wealth
–power
–prestige
Social Comparison Theory
states that individuals
compare their
own possessions against those
of others to determine their
relative social standing.
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Status Consumption
The process by which consumers actively
increase their social standing through
conspicuous consumption or possessions
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Convenient Approaches to
Social Class• Social status is usually defined in terms of one or more of the following socioeconomic variables:
– Family Income
– Occupational Status
– Educational Attainment
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Targeting Upscale Customers
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Percent Distribution of Five-Category
Social-Class Measure
SOCIAL CLASSES
Upper 4.3 6.89
Upper-middle 13.8 7.10
Middle 32.8 15.44
Working 32.3 34.20
Lower 16.8 36.37
Total percentage 100.0 100.0
USA (%) India (%)
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Social Class Measurement
• Subjective Measures: individuals are asked to estimate their own social-class positions
• Reputational Measures: informants make judgments concerning the social-class membership of others within the community
• Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answers
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Objective Measures
• Single-variable
indexes
– Occupation
– Education
– Income
– Other Variables
• Composite-variable indexes– Index of Status Characteristics
– Socioeconomic Status Score
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Index of Status Index of Status
Characteristics Characteristics
(ISC)(ISC)
A composite measure of social class that
combines occupation, source of income (not
amount), house type / dwelling area into a
single weighted index of social class
standing.
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Socioeconomic Socioeconomic
Status Score Status Score
(SES)(SES)
A multivariable social class measure used by the
United States Bureau of the Census that combines
occupational status, family income, and educational
attainment into a single measure of social class
standing.
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Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB
•Small number of well-established families
•Belong to best country clubs and sponsor major charity events
•Serve as trustees for local colleges and hospitals
•Prominent physicians and lawyers
•May be heads of major financial institutions, owners of major long-
established firms
•Accustomed to wealth, so do not spend money conspicuously
THE LOWER-UPPER CLASS--NEW WEALTH
•Not quite accepted by the upper crust of society
•Represent “new money”
•Successful business executive
•Conspicuous users of their new wealth
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THE UPPER-MIDDLE CLASS--ACHIEVING
PROFESSIONALS
•Have neither family status nor unusual wealth
•Career oriented
•Young, successful professionals, corporate managers, and business
owners
•Most are college graduates, many with advanced degrees
•Active in professional, community, and social activities
•Have a keen interest in obtaining the “better things in life”
•Their homes serve as symbols of their achievements
•Consumption is often conspicuous
•Very child oriented
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THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS
•Primary non-managerial white-collar workers and highly paid blue-
collar workers
•Want to achieve “respectability” and be accepted as good citizens
•Want their children to be well behaved
•Tend to be churchgoers and are often involved in church-sponsored
activities
•Prefer a neat and clean appearance and tend to avoid faddish or
highly-styled clothing
•Constitute a major market for do-it-yourself products
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THE UPPER-LOWER CLASS--SECURITY-MINDED
MAJORITY
•The largest social-class segment
•Solidly blue-collar
•Strive for security
•View work as a means to “buy” enjoyment
•Want children to behave properly
•High wage earners in this group may spend impulsively
•Interested in items that enhance leisure time (e.g., TV sets)
•Husbands typically have a strong “macho” self-image
•Males are sports fans, heavy smokers, beer drinkers
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THE LOWER-LOWER CLASS--ROCK BOTTOM
•Poorly educated, unskilled laborers
•Often out of work
•Children are often poorly treated
•Tend to live a day-to-day existence
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Appealing to Upward
Mobility
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GeodemographicGeodemographic ClustersClusters
A composite segmentation strategy that uses
both geographic variables (zip codes,
neighborhoods) and demographic variables
(e.g., income, occupation) to identify target
markets.
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PRIZM (Potential Rating Index by Zip PRIZM (Potential Rating Index by Zip
Market)Market)
A composite index of geographic and
socioeconomic factors expressed in residential
zip code neighborhoods from which
geodemographic consumer segments are formed.
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A Profile of PRIZM Cluster: “Urban Gold
Coast” (Cluster 06)SOCIOECONOMIC FACTORS:
Percent of U.S. households 0.60%
Predominant age range Mixed
Socioeconomic group Affluent
Demographic caption Professional urban singles and couples
Education College graduates
Occupation White collar
Race/Ethnicity White, Asian
LIFESTYLE:
Use WebTV online
Listen to Oldie Goldies
Read New York Magazine
Watch Politically Incorrect
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What is Middle Class?
• India’s middle class numbers around 300 million representing 30% of the population spread across 5,000 towns and cities.
• More than 70% of nuclear family units have moved out of the traditional joint family households into their own homes.
• Children continue to be the main focus of families.
• The size of the average middle-class family is 4.3 people
• An estimated 100% of households have televisions, 91% have mobile phones and 19% own four-wheel vehicles. Half the households experienced growing incomes in the past 12 months, of which one-third enjoyed a rise in excess of 20%.
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What is Working Class?
• Of the 222 million households in India, the absolutely poor households (annual incomes below 45,000) accounted for only 15.6 % of them or about 35 million (about 200 million Indians). Another 80 million households are in income levels of 45,000-90,000 per year
• These consumers tend to be more brand loyal than wealthier consumers
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Consumer Behavior and
Social Class
• Clothing, Fashion, and Shopping
• The Pursuit of Leisure
• Saving, Spending, and Credit
• Social Class and Communication
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CultureCulture
The sum total of learned beliefs, values, and
customs that serve to regulate the consumer
behavior of members of a particular society.
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Culture
Culture offers order, direction, and guidance
in all phases of human problem solving:
When to eat, Where to eat,
What to eat for each meal,
What to serve guests at a dinner party,
picnic, or wedding.
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Forms of Cultural Learning
Formal Learning
Informal Learning
Technical Learning
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The Movement of Cultural Meaning
Culturally Constituted WorldCulturally Constituted World
Consumer GoodsConsumer Goods
Individual ConsumerIndividual Consumer
Grooming
Ritual
Fashion
SystemAdvertising/Fashion
System
Exchange
Ritual
Possession
RitualDivestment
Ritual
Instrument of Meaning Transfer
Location of Meaning
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Issues in Culture
• Enculturation and acculturation
• Language and symbols
• Ritual
• Sharing of Culture
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Selected Rituals and Associated Artifacts
(Americans)
SELECTED RITUALS TYPICAL ARTIFACTS
Wedding White gown (something old, something new, something
borrowed, something blue)
Birth of child U.S. Savings Bond, silver baby spoon
Birthday Card, present, cake with candles
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
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Indian rituals (16 Sanskars)
The 16 Samskaras
Most of the Brahmins used to follow complex rituals in connection with major
events in their lives, such as pregnancy, childbirth, education, marriage, and death.
Although, the number of major samskaras fluctuates between 12 and 18 in the
Grhya Sutras, later, it became 16 in number,generally known as "Shodasha
Samskaras" (Ṣoḍaśa Saṃskāra).
Garbhadhana
Pumsavana
Simanatonayana
Jatakarman
Namakarana
Nishkramana
Annaprashana
Chudakarana
Karnavedha
Vidyarambha
Upanayana
Praishartha
Keshanta and Ritusuddhi
Samavartana
Vivaha
Antyeshti
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Nightly Facial Beauty Ritual of a Young Internet
Sales Representative
1. I pull my hair back with a headband.
2. I wash my face with tepid water using Dove facial cleanser to remove all
makeup.
3. Next, I use a Q-tip with some moisturizer around my eyes to make sure all eye
makeup is removed.
4. I apply Dermacil facial cream to my face to heavily moisturize and Clinique
Dramatically Different Lotion on my neck and throat.
5. If I have a blemish, I apply Clearasil Treatment to the area to dry it out.
6. Twice weekly (or as necessary) I use Aapri Facial Scrub to remove dry and
dead skin.
7. Once a week I apply Clinique Clarifying Lotion 2 with a cotton ball to my face
and throat to remove deep down dirt and oils.
8. Once a month I get a professional salon facial to deep clean my pores.
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Culture and Advertising
• Is it the role of advertising to socialize readers
on how to dress, decorate their homes,
choose wines and food for parties, etc?
– Grihashobha
– Cosmopolitan
– Femina
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The Measurement of Culture
• Content Analysis
• Consumer Fieldwork
• Value Measurement Instruments
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Content Content
AnalysisAnalysis
A method for systematically analyzing the
content of verbal and/or pictorial
communication. The method is frequently used
to determine prevailing social values of a
society.
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Field Field
ObservationObservation
A cultural measurement technique that takes
place within a natural environment that focuses
on observing behavior (sometimes without the
subjects’ awareness).
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Characteristics of Field Observation
• Takes place within a natural environment
• Performed sometimes without the subject’s awareness
• Focuses on observation of behavior
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ParticipantParticipant--
ObserversObservers
Researchers who participate in the
environment that they are studying without
notifying those who are being observed.
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Value Measurement Survey Instruments
• Rokeach Value Survey (RVS): A self-administered inventory consisting of eighteen “terminal” values (i.e., personal goals) and eighteen “instrumental” values (i.e., ways of reaching personal goals).
• List of Values (LOV): A value measurement instrument that asks consumers to identify their two most important values from a nine-value list that is based on the terminal values of the RokeachValue Survey
• Values and Lifestyles (VALS): A value measurement based on two categories: self-definition and resources
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The Rokeach Value Survey
TERMINAL VALUES INSTRMENTAL 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
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continued
TERMINAL VALUES INSTRMENTAL VALUES
A WORLD OF BEAUTY LOGICAL
FAMILY SECURITY LOVING
MATURE LOVE OBEDIENT
SELF-RESPECT POLITE
A SENSE OF ACCOMPLISHMENT RESPONSIBLE
INNER HARMONY SELF-CONTROLLED
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American Core Values
• Achievement and success
• Activity
• Efficiency and practicality
• Progress
• Material comfort
• Individualism
• Freedom
• External conformity
• Humanitarianism
• Youthfulness
• Fitness and health
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Criteria for Value Selection
• The value must be pervasive.
• The value must be enduring.
• The value must be consumer-related.
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SubcultureSubculture
A distinct cultural group that exists as an
identifiable segment within a larger, more
complex society.
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Relationship Between Culture and
Subculture
Subcultural
Traits
of
North Indians
Dominant
Cultural
Traits of
Indian Citizens
Subcultural
Traits
of
South Indians
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Examples of Major Subcultural Categories
CATEGORIES EXAMPLES
Nationality Bangladeshi, Pakistani, Anglo Indian
Religion Hindu, Muslim, Christian, Sikh
Geographic region Northeast, Southwest, Midwestern
Race Caucasian, Mediterranean, Mongolian,
Dravidian
Age Senior citizen, teenager, Xers
Gender Female, Male
Occupation Bus driver, mechanic, engineer
Social class Lower, middle, upper
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Major Age Subcultures
Generation X
Market
Baby Boomer
Market
Seniors
Market
Generation Y
Market
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Generation YGeneration Y
Born between 1977 and 1994; also called
echo boomers and millennium generation
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3 Subsegments of Gen Y
• Gen Y Adults
• Gen Y Teens
• Gen Y Tweens
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Generation XGeneration X
Born between 1965 and 1979; post baby
boomer segment (also referred to as Xers or
busters).
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Baby BoomersBaby Boomers
Individuals born between 1946 and 1964
(approximately 45% of the adult population).
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Baby Boomers
• The largest age category alive today
• Frequently make important consumer
purchase decisions
• Include a small subsegment of trendsetting
consumers (yuppies) who influence consumer
tastes of other age segments
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SeniorsSeniors
Generally older consumers. Consist of
subcultures, including the 50-plus market and
the “elderly consumers” market.
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Three Senior Subsegments
• The Young-Old (65-74)
• The Old (75-84)
• The Old-Old (85 and older)
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Issues in Understanding Sex as a
Subculture
• Sex Roles and Consumer Behavior
– Masculine vs. Feminine Traits
• The Working Woman
– Segmentation Issues
– Shopping Patterns
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Segmenting the Female Market
• Four Segments:
– Stay-at-Home Housewives
– Plan-to-Work Housewives
– Just-a-Job Working Women
– Career-Oriented Working Women