CONSUMERS AND SUBCULTURES

Age education occupation social class Ethnic group gender composition family size and composition distribution of population

What are some demographics

So What Are demographics?

Objective quantifiable Characteristics of a population

Important variables for market segmentation Different segments have different consumption patterns

What does money mean to you?

Our ideas about money affect our consumption behaviour

What does the demand for goods and services depend on?

the ability to buy

the willingness to buy

What influences your willingness to buy?

Tastes — desire for this and other goods

Expectations (for income, prices, tastes)

Other goods (their availability and prices)

a measure of consumers’ opinions on the financial position of their own household and the economy as a whole

and to what extent they think it is a good time to buy large expensive items such as a TV or a computer.

Demand for necessities remains stable over time

The underlying data are taken from the consumer confidence survey.

Consumers’ willingness to buy?

The Conference Board's Consumer Confidence Survey

a monthly report based on a representative sample of 5,000 U.S. households across the country.

Consumer assessment of current economic conditions. Covers things such as

•Employment

•Spending intentions over the next six months

•Feelings about business conditions over the next six months

Industries that rely on the Survey for forecasting include manufacturers, retailers, banks, and government agencies

The Index for the US at the end of October 2003 was 81.1 (1985=100),

Consumption growth displays a positive relation to the willingness to buy.

The index of willingness to buy is a clear predictor for the future development of consumer spending.

Confidence and willingness to buy varies by market segment and is usually higher among younger than older consumers

And among higher income consumers than lower,

college college graduates over high school graduates whites or other ethnic groups men or women

Willingness to buy by telephone

Social ClassWhat is Social Class?

relatively permanent strata in a society that are distinct subcultures

– Occupation– Education attained– Behavioral standards – taste culture– Source of Income– Level of Income; wealth– Dwelling area– Power– Religious Affiliation; Associations– lifestyles, buying patterns, motivations and values– possessions

What are the typical factors that differentiate the social classes?

Social Classes in CanadaA. The upper class.

– 1. The upper-upper class. (1%; ‘old money)

– 2. The lower-upper class. (2-4%)

B. The middle class (40-50% considerable racial & ethnic diversity)

– 1. The upper-middle class. ($100k +)– 2. The middle-middle class. ($50-$100,000, upper managerial or professional fields)

– 3. lower-middle: under $50,000, less prestigious white collar, or highly skilled blue collar jobs.

C. The working class. (1/3 of population) (lower incomes than middle class, no accumulated wealth less personal satisfaction in jobs

D. The lower class. (20% of population) (either supported by welfare, or are ‘working poor’)

tastes Lifestyles access to such resources as education, health care,

housing and consumer goods. Self Image Values Political orientation

The Importance of ClassWhat sort of things does social class affect

I.e. Consumption behaviour who spends how much and on what

CelineBoogie Bag$990

Vuitton Credit Card

Holder $96.00

How Much Money Will Be Spent

How Money Will Be Spent

Harry Rosen’s

Where it will be spent

How Do the Lower and Upper Classes Differ in Their Consumption Behaviour?

Lower classes generally focus on more immediate and more utilitarian needs

Upper classes are often likely to

approach consumption from a more aesthetic perspective

Marketing ImplicationsYour company XYZ corp. manufactures inexpensive

furniture and has targeted the less well off. In an effort to upgrade your image the company has decided to target higher-class consumers. What will the marketing implications be on the following.

Product choices and development Product design and packaging Distribution Price Advertising and other marketing communications

Status SymbolsWhat are They?

Conspicuously consumed goods which are used to provide evidence of wealth

Why do some people feel the need for status symbols?

The need to display status through purchase and use of products is at least partially derived from the anonymous nature of much of our social interaction

If most people are unknown in public, status cannot be conveyed by reputation

Anonymity exacerbates the need for uniqueness

The Sony Vaio laptop computer

“Take a look at this status symbol”

“Wow you're going to attract attention opening this in public…”

12.1" XGA screen 30 gig drive and 256 MB RAM, 2 USB, a Firewire/iLink and network as well as . a CD writer that also reads DVDs.

Status SymbolsExamples

Parody Display

Paper Denim Retro Torn Jeans $140.00

When consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style.

Fraudulent Symbolism

When too many others use or possess a status symbol such that it loses much of its former power

SUBCULTURES

What is a Subculture?A distinct cultural group that exists as an identifiable

segment within a larger, more complex society/culture

How do you distinguish one group from another?

beliefs, Values Customs Lifestyles and interests norms Language insigniasEvery consumer belongs to many subcultures

What are some Types of Subcultures in Canada

EthnicRacialAgeRegional Religious

What is an Ethnic Subculture?

Possess common cultural and or genetic ties which are identified both by its members and by others as a distinguishable category.

Ethnic identity is a significant component of a consumer’s self concept

What makes Ethnic Subcultures Different?

Immigration in Canada

Canada has one of the world’s most liberal immigration policies and is considered a multicultural or pluralistic society (as opposed to melting pot)

New immigrants tend to cluster together geographically which makes them easy to reach.

Concentrated in major Canadian citiesBring with them customs, traditions, values, etc. New immigrants are likely to be Asian

Population reporting at least one Ethnic Origin other than British, French or Canadian, 1986, 1991 and 1996 Censuses

63%

37%

1986 Census58%

42%

1991 Census

56%

44%

1996 Census

LegendBritish, French or Canadian OriginsOther Ethnic Origins

Ethnic groups in Canada are growing more than 7 times faster than the general population

Advertising Canada estimated that by 2001 African and Asian populations in Canada would represent in excess of $300 billion in purchasing power.

Ethnic marketing has therefore become increasingly important to marketers who wish to maintain or increase market share.

Who are they and where are they?

Percentage of Visible Minority Population by All Age Groups, for Canada, Provinces, Territories and selected

Census Metropolitan Areas, 1996 Census

0%

5%

10%

15%

20%

25%

30%

35%

1% 1% 1%

3% 3% 3% 3%

6%7%

10%

16%

18%

8% 8% 8%9%

10%11%

12% 12%

14%

16%

31%32%

11%

Visible Minority Population for Provinces and Territories 1996 Census

3,815 1,520 31,320 7,995

433,985

1,682,045

77,35526,945

269,280

660,545

1,000 1,670

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Shown in Absolute Numbers

Visible Minority Population in selected Census Metropolitan, 1996 Census

2,370 22,320 2,555 9,815

401,425

115,460

1,338,095

48,91073,31010,35511,250

127,555115,430

564,600

22,915

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Shown in Absolute Numbers

Percentage of the Visible Minority Population Aged 0 to 24, for Canada, Provinces, Territories and selected Census Metropolitan

Areas, 1996 Census

0%

5%

10%

15%

20%

25%

30%

35%

40%

1% 1% 1%2%

3%4%

5%

8% 8%

11%

19%

21%

10%11% 11%

12%13%

14%15%

16% 16%

18%

37% 37%

13%

.

Asian Canadians are the Fastest Growing Minority Group in Canada

Asian Canadians

Small, Diverse, Growing

Above Average Income•($2000/yr more)

Native Language Print Media

Education Oriented •College Graduation Rate is Twice That of Whites)

tend to be more brand and price conscious

Tend to be early adapters of new technology

Reaching the Asian Canadian Consumer

Translating Advertising Messages Into Asian MediaOverlooked Complex Differences Among Asian SubculturesLack of Media Available to Reach Asian CanadiansBeen Insensitive to Cultural Practices

Problems Encountered by Canadian Marketers

A British ad for Tennent’s beer marketed to the East Asian community

1. What language does your key ethnic demographic prefer that you use in communications with them?

2. What media do they read, listen to or watch?

3. Does the product or service (or communication program) that you are planning to pitch to them support their first-language and/or first-culture requirements, or are you simply attempting to engage them in their first-language about a generally available, Canadian (English or French) product or service?

4. Distribution-geographic concentration of many ethnic subcultures means that marketers can reach them more easily; also in some cases certain groups prefer to shop in certain stores

Marketing Implications of Subculture

Bell Mobility targets Canada's population of Chinese through advertising in Chinese in Chinese dailies,

And by a dedicated dealer network with customer service reps fluent in Mandarin and Cantonese.

There targeted advertising speaks to Chinese consumer's tendency to regard wireless devises as personal security systems.

Summary of 2003 UK Study on Ethnic Marketing1. Minority ethnic audiences represent a significant opportunity for brands

• A strong status-orientation and conspicuous consumption combine to make brands disproportionately important compared with the mainstream.• Many major purchases are subject to strong family-based decision making.

2. Some advertising fails to connect• Advertising is perceived rationally and consciously as performing a functional selling role.• Non-literal communications are least likely to connect, particularly with Asians.

3. There is demand for culturally-relevant marketing

• Communities see an opportunity for brands to augment existing, mainstream campaigns with more focussed targeting, sympathetic to the culture

4. Using minority ethnic characters is a double-edged sword

• Use of minority ethnic actors tends to polarize the community between those who see the individual representation as positive and those that see it as tokenistic or stereotypical. • Viewers evaluate the ads not only on the basis of personal relevance but also on the basis of "what does this say about us?" to the rest of society.

5. Local newspapers/radio are consumed as part of strong community orientation.

6. Minority ethnic communities are as internally diverse as they are distinct from mainstream culture.

• Generation, age, language, location and country of origin are significant variables that determine the extent to which minority ethnic audiences move outside of purely traditional culture.