MKTG 305 1st Edition Lecture 26 Outline of Last Lecture I. Taste CulturesII. Targeting the Poor/RichIII. Status symbolsIV. Conspicuous ConsumptionV. Parody DisplayVI. Ethnic and Racial SubculturesVII. New Ethnic GroupsVIII. Consumer AcculturationIX. Big 3 American subculturesOutline of Current Lecture I. African AmericansII. Hispanic AmericansIII. Asian AmericansIV. Religious SubculturesV. Age and Consumer IdentityVI. TweensVII. GEN YVIII. Baby BustersIX. Baby BoomersX. The “Gray” MarketAfrican AmericansThe African American market is hardly as homogeneous as many seem to believeOverall spending patterns of blacks and whites are roughly similarThere are some differences in consumption behaviors that can be subtle but still very importantShopping is a social experienceThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Look for respect in shoppingSpend more time in active sports and religious activitiesHispanic AmericansHispanics are:Highly concentrated geographically by country of origin(e.g., L.A., N.Y., Miami, San Antonio, San Francisco, Chicago)Many are rushing to sign Hispanic celebrities/actorsSeek established brands and those that are familiar from their homelandPrefer shopping in smaller storesDistinguishing Characteristics of the Hispanic Market“Young bicultural” Hispanic consumersLatino youth are changing mainstream cultureLooking for spirituality, stronger family tiesLarge family size of Hispanic marketSpend more on groceriesShopping is a family affairConvenience/saving time is not important to Hispanic homemakerAsian Americans:Fastest-growing population groupMost affluent and best educatedMost likely to hold technology job and buy high-tech gadgetsMost brand-conscious but least brand loyalMost concerned with keeping up appearancesSeek quality brandsHeavy users of the WebReligious Subcultures:The rise of spiritualityExplosion of religion/spirituality in pop cultureDominant religions worldwideChristians, Islam, Hindus, Buddhists, Jews…Religious subcultures have an impact on personality, attitudes toward sexuality, birthrates, household formation, income.Age and Consumer Identity:Age cohort (“my generation”)People of similar ages who have similar experiences, share many common memories about cultural heroes, important historical events (World War II vs. 2001 terrorist attack), etc.Marketers target specific age cohortsFeelings of nostalgiaOur possessions let us identify with others of a certain age/life stageTweens:Children aged 8 to 14Spend $14 billion a year on clothes, CDs, movies (“feel good” products)Exhibit characteristics of both children and adolescentsVictoria Secret’s Pink lingerie line for younger girls (“Team Pink”)Getting to Know Gen Y:Born between 1986 and 2002Make up one-third of U.S. populationFirst to grow up with computers in their homes (e.g., blogs users, music download, MP3players, ipod – digital natives)Hold traditional values and believe in the value of fitting in.Reject violence, tobacco, alcohol, teen pregnancyTrust government and parentshttp://time.com/money/2820241/10-things-millennials-wont-shell-out-for/http://www.cnbc.com/id/101534613Baby Busters: “Generation X”:Consumers born between 1965 and 1985Desire stable families, save portion of income, and view home as expression of individualityMessages of alienation, cynicism, and despair does not appeal to them.Baby Boomers:Consumers born between 1946 and 1965Revolution in style, politics, consumer attitudesActive and physically fit – engage in sports activityCurrently in peak earning yearsFood, apparel, beauty (e.g., Botox) and retirement programshttp://www.businessweek.com/articles/2013-08-29/in-car-buying-baby-boomers-surpass-the-youngThe Gray Market:Traditionally neglected by marketersPeople are now living longer/healthier livesactive, interested in life, enthusiastic consumers with buying powerFastest growing group of Internet usersGray Power: Seniors’ Economic Clout:Impact of gray market on marketplaceMost brand loyal of any age groupEconomic health of gray market is good and getting betterExercise facilities, cruises/tourism, cosmetic surgery/skin treatments, “how-to” books/classesMost advertising campaigns don’t recognize gray marketTalking to Seniors:Psyche of older people is important for marketers to probeKey values of mature consumersAutonomy: want to be self-sufficientConnectedness: value bonds with friends and familyAltruism: want to give something back to the