Chapter 12

Consumer Diversity

Learning Objectives~ Ch. 12

To understand:

1.The role of consumers’ age and marketing

2.The role of consumers’ gender and sexual orientation and consumer behavior

3.Regional, ethnic, and religious influences on consumer behavior and targeting specific groups

Consumer Diversity

U.S. Population by Age

Age & Consumer Behavior

U.S. Age Trends– Teens and Generation Y—Born 1979 to 1994– Generation X—Born 1965 to 1976

• Some still have “angst”• Boomerang kids• High discretionary income• Delay marriage

– Baby Boomers—Born 1946 to 1964• Largest demographic• Peak earning years

– Seniors—65+ years old

Teen & Tween Market

Purchasing Power = $108 BillionWorld’s teens have similar tastes, attitudes, preferencesBrand Loyalty—Develops at a younger agePositioning—Establish identity, rebelling, peer acceptanceAdvertising Messages—Incorporates symbols, issues, and language of teensMedia—Specific TV networks, radio stations, and InternetRecreation and special events

Gen X

Born between 1965 and 197649 million Fewer Xers own homesBoomerang kidsCynical about obvious marketingMedia: alternative radio, cable TV, concerts, sporting events, music publications, vacation spots

How is Gen X different from Gen Z?

Baby Boomers

Born between 1946 and 1964

78 million

Influential consumer segment because of size and buying power

Value individualism and freedom

Segments: leading boomers, core boomers, and trailing boomers

Baby Boomers & Marketing

Target for cars, housing, travel, entertainment, recreation equipment, motor homes

Heavy consumers of financial services

Gourmet fast food

Comfortable clothing

Anti-aging products

Seniors

Over 65 years old

Women outnumber men

Reduced information processing skills

Susceptible to the “truth effect”

Tend to be brand loyal

Seniors & Marketing

Aging Population– Health-related products/services– Retirement communities

Marketing Communications– Oldies radio– Activity-specific publications & TV– Lifestyle-related events

Specialized Sales and Promotion

This ad shows an elderly gentleman enjoying his retirement in a state of financial freedom & independence as a potential result of long-term retirement planning with Allianz.

Courtesy Allianz SE, Germany

This ad targets Baby Boom & Senior men who want to look younger but not unrealistically younger. The ad focuses on the active lifestyle of older Americans with a surfboard.

Combe Incorporated

Gender/Sexual Orientation & CB

Sex Roles- Goals– Agentic– Communal

Gender & Sexual Orientation– Masculine– Feminine– Androgynous

Differences in Acquisition & Consumption Behaviors– Women = Deliberate, thorough research– Men = Driven by themes, simple heuristics

An increasingly larger number of marketers are beginning to target gay and lesbian consumers in their marketing communications. This ad for Paris-Las Vegas targets gay men.

Courtesy Paris Las Vegas

Gender/Sexual Orientation & CB

Targeting Gender– Men—More emotional/caring– Women—Important/professional

Media Patterns

Targeting Gay/Lesbian Consumers

Regional Influences

Regions of U.S.- Clustering- PRIZM NE & Mosaic

Regions of World

Regions Across the World

Individualism vs. collectivism

Horizontal vs. vertical orientation

Masculine vs. feminine

Ethnic Influences

Ethnic Groups

Acculturation

Multicultural Marketing

Ethnic Subcultures in Nations

Ethnic Composition of Minors

Hispanic American Consumers

Acculturated

Bicultural

Traditional

Intensity of Ethnic Identification

Hispanic Americans are one of the largest, most diverse, and fastest growing ethnic groups in the United States. This State Farm ad targets this huge target market, which is estimated to include over 42 million members.

Copyright State Farm Mutual Automobile Insurance Company 2008. Used by permission.

African American Consumers

With rising incomes, want to preserve cultural

identity

Importance of style, self-image, & elegance

Asian American Consumers

Fastest growing major subculture

More diverse than Hispanic and African American

Strong Emphasis– Family– Tradition– Cooperation

Shop frequently/luxury goods

Asian Americans, particularly Chinese Americans, represent a large and lucrative target market for many businesses, including Charles Schwab investment services.

Reprinted with permission. Copyright ©2008 Charles Schwab & Co. Inc.

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