56 Cards in this Set
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Social Class
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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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Status Consumption
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Consumers endeavor to increase their social standing through consumption
¨Very important for luxury goods
¨Is different from conspicuous consumption
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Subjective Measures
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individuals are asked to estimate their own social-class positions
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Reputational Measures
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informants make judgments concerning the social-class membership of others within the community
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Objective Measures
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individuals answer specific socioeconomic questions and then are categorized according to answers
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Single variable indexes
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Occupation, Education, Income, Wealth
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Composite-variable indexes
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¤Index of Status Characteristics
¤Socioeconomic Status Score
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Index of Status Characteristics
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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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Geodemographic Clusters
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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
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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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Middle Class
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¨The “middle” 50 percent of household incomes - households earning between $22,500 and $80,000
¨Households made up of college-educated adults who use computers, and are involved in children’s education
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Working Class
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¨Households earning $40,000 or less control more than 30 percent of the total income in the U.S.
These consumers tend to be more brand loyal than wealthier consumers
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The Techno Class
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¨Having competency with technology
¨Those without are referred to as “technologically underclassed”
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Culture
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A continuously changing totality of learned and shared values, language, rituals, norms, and traditions among the members of an organization or society.
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Culture is
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Pervasive
Dynamic
Multi level
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Low-Context cultures
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What is said is precisely what is meant
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High-Context cultures
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The context of the message— the message source, his or her standing in society or in the negotiating group, level of expertise, tone of voice, and body language—are meaningful
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Cultural Values
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• Enduring beliefs about a specific mode of conduct or desirable end-state
• Guide the selection or evaluation of behavior
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Cultural Values
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•Enculturation
Process by which individuals learn the beliefs and behaviors endorsed by one’s own culture
•Acculturation
Learning a new culture
•Assimilation
Maintenance of the new culture, and resistance to other cultures and to one’s old culture
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Instrumental Values
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•ambitious, cheerful, clean, courageous, forgiving, helpful, honest, polite, responsible
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Terminal Values
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•a comfortable life, an exciting life, family security, freedom happiness, national security, pleasure, self-respect, true friendship
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Means-End Chain & Values
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•Attribute-->Benefits-->Values
▫also known as laddering
▫
ATTRIBUTES: Characteristics of a product
-concrete
BENEFITS--desirable consequences of using product
-functional
- psychological
- social
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Symbols
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•lucky/ unlucky numbers, animals, products & colors
•meaning of the color
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•national symbols
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•Power Distance
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How society deals with inequalities of power and wealth.
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•Uncertainty Avoidance
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degree to which individuals accept ambiguous situations and tolerate uncertainty.
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•Masculinity Versus Femininity
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degree to which sex roles are traditionally defined.
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•Individualism Versus Collectivism
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degree to which individual achievement and freedom are valued over individual ties.
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•Long-Term Orientation
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thrift and perseverance versus fulfilling social obligations, and protecting one's 'face'.
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Hofstede's methodology
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Study based on 64 national subsidiaries, 116,000 workers, 3 world regions
ØReports means; may not fit exact individual situations
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Research Limitations
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ØAssumes 1-to-1 correspondence between culture and nation-state
ØOne industry, one firm sample, old study
ØCulturally bound research
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Implications for Business
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•Cross-Cultural Literacy
•Acknowledge, Accept and Appreciate
•Avoid being ethnocentric
•Adaptation vs. Standardization
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Subculture
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a subdivision of a national culture that is based on some unifying characteristic and exists as an _________________.
— members share similar patterns of behavior that are distinct from those of the national culture.
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Hispanic Subculture
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is the __________ ethnic sub- cultural group in the United States and became the largest ethnic minority in the U.S. by the year 2010 (15%).
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Current Population Trends in the Hispanic Population
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—As of July 1, 2006:
•44.3 million Hispanics, 14.8% of total population of 299 million
— Between 2000 and 2006:
•Hispanics accounted for one-half of the nation’s growth
•Hispanic growth rate (24.3%) was more than three times the growth rate of the total population (6.1%)
•2010 data:
…
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•Hispanic Consumer Behavior
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–Stronger preference for well-established brands
–Prefer to shop at smaller stores
– Likely to buy what their parents bought
–Youths are more fashion conscious than non-Hispanic peers
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Age Subcultures
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Four Major Age Trends
Baby Boomers
Generation X
Generation Y
Elderly
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The baby
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Individuals born between 1946 and 1964 (approximately 45 percent of the adult population).
Born between 1965 and 1979; post baby boomer segment (also referred to as Xers or busters).
Born between 1979 and 1994; also called echo boomers and millennium generation.
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Opinion Leadership
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The process by which one person (the opinion leader) informally influences the consumption
be opinion seekers or opinion recipients.
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Dynamics of the Opinion Leadership Process
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—Credibility
—Positive and Negative Product Information
—Information and Advice
—Opinion Leadership Is
—Opinion Leadership Is a
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GENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIES
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Innovativeness
Willingness to talk
Self-confidence
Gregariousness
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CATEGORY-SPECIFIC ATTRIBUTES
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Interest
Knowledge
Special-interest media exposure
Same age
Same social status
Social exposure outside group
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Motivations Behind Opinion Leadership
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—The Needs of Opinion Leaders—
Self-involvement
—Social involvement
—Product involvement
—Message involvement
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Market Maven
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Individuals whose influence stems from a or that leads to an early awareness of new products and services
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Marketers Seek to Take Control of the Opinion Leadership Process
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—Creating products with built-in buzz potential
—Strategy designed to stimulate buzz
—Viral marketing
—Weblogs
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Diffusion Process
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The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.
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Innovations
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—Firm-oriented definitions
—Product is “new” to the company
—Product-oriented definitions
—Continuous
—Dynamically continuous
—Discontinuous
—Market-oriented definitions
—Based on consumer exposure
—Consumer-oriented definitions
—Consumer judges it as “new”
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Product Characteristics That Influence Diffusion
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—Relative Advantage
—Compatibility
—Complexity/simplicity
—Trialability
—Observability
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Adopter Categories
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Innovators - 2.5
Early Adaptors -13.5
Early Majority- 34%
Late Majority -34%
Laggards- 16%
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The Consumer Bill of Rights
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pThe Right to
§ Informed
§ safety
§ Redress
§ choose
§ a healthy environment
§ privacy
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Right to be Informed
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pRight to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts that s/he needs to make an informed choice.
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Right to Safety
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pProduct Quality
pSafety-Recall car
pProduct design
pConsumer usage
pWhat are you willing to pay for safety?
nOrganic Food
nGM food
pProducts in debate
nAir Bags
nCigarettes
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Right to Redress
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pTo be heard
nWhat can you do to ensure this?
nWhat other ways can consumers use to complain? ex
nWhat is good about complaints?
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Right to choose
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pMonopoly
pAntitrust law:
n Sherman Act, Robinson-Patman Act
nIllegal to monopolize and price discriminate
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pPrice-discrimination
nPrescription Drugs
nGrocery price in rich vs poor neighborhood
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Right to a Healthy Enviorment
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pWaste Control
pToxic Substance Control
pWater Safety
pClean Energy
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Right To Privacy
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pWhat information can be revealed?
nDeliberately or not
nProfit-driven or not
pWho knows about you?
pFair credit reporting act
pCable communication act
n
n
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Consumer Advocacy
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pPurpose
nGroups and organizations work to protect consumers’ right
pWork in all six areas
pExamples:
nConsumer Advocacy Group of America
nMore
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MKTG 315: EXAM 2