Chapter 14

Subcultures and
Demographics

Consumer Behavior: A
Framework
John C. Mowen
Michael S. Minor
Key Concepts
 Subcultures vs.  The African-
demographics American subculture
 Types of U.S.  The Hispanic and
subcultures Asian subcultures
 Regional shifts in
 Baby boomers
population
 Changes in U.S.  Social class
age composition  Class differences in
 How the elderly shopping behavior
process
information
Subcultures . . .
. . . a subdivision of a
national culture that is
based on some unifying
characteristic.
. . . members share
similar patterns of
behavior that are distinct
from those of the national
culture.
Demographic
Variables . . .
. . . describe the characteristics of
populations

 Nationality  Marital Status

 Age  Income
 Religion  Region
 Gender  Ethnicity
 Occupation  Education
 Age Subcultures
Consumers
undergo
predictable
changes in values,
lifestyles, and
consumption
patterns as they
move through
their life cycle.
Age Subcultures

Four Major Age

Trends
Baby Boomers
Generation X
Generation Y
Elderly
The Baby-Boom
Generation. . .
. . . are those
Americans born
between 1946 and
1964 and share
lifestyle similarities.

. . . number 77
million.
The Baby...
Bust Boom Xers Yers

1930s 1940s 1960s 1970s 1980s

The Baby Boom
Generation...
 Roomer chinos
are needed now.
 Their difficulty in
finding good jobs
has led to RYAs
and ILYAs.
Generation X . . .
. . . is small in number, but possesses
$125 billion of discretionary income

 This group is known for valuing religion,

formal rituals (e.g., proms) and
materialism,
 and has more negative attitudes toward
work and getting ahead than the
boomers had at their age.
Generation Y . . .
. . . is the 72 million children of the baby
boomers who first reached adulthood in
the year 2000.

 This group, like Xers, is more

heterogeneous in racial and
socioeconomic terms than the boomers.
The Elderly
The “Graying of
America” refers to
the fourth major
age trend

 By the year 2020

Americans over 65
will outnumber
teenagers two to
one.
The Elderly...
 Process information differently.
 Experience motor skill declines which
mean walking, writing, talking, etc.
abilities deteriorate.
Ethnicity . . .
. . . refers to a group
bound together by
ties of cultural
homogeneity (i.e.,
linked by similar
values, customs,
dress, religion, and
language).
U.S. Population Projections
90
80
70
60
1995
50
2000
40
2010
30 2020
20
10
0
White Black Asian Hispanic
African-American
Subculture
 Represents almost 13
percent of the U.S.
population.
 Income deprivation a
major factor: In the
1990s, 37 % of African-
American households
had incomes of under
$15,000.
 The Hispanic Subculture
. . . is the second-fastest-growing ethnic
sub- cultural group in the United States
and will become the largest ethnic
minority in the U.S. by the year 2010.
 Commonalities:
 Language (82 % of U.S. Hispanic households
speak primarily Spanish).
 Religion (over 85% of Hispanics are
Catholic).
 Tendency to live in metropolitan areas
(63%).
Hispanic Segmentation
There are at least four distinct
segments:

 Mexicans (65.2 % of U.S. Hispanics)

 Cubans (4.3 %)

 Puerto Ricans (9.6 %)

 Central and South Americans (14.3 %)

The Asian-American Subcultu
. . . is the fastest-growing ethnic
subculture in the United States.

The percentage of Asian-Americans who
graduated from college is nearly twice
that of white Americans

Asian-American family incomes are
significantly higher than the other ethnic
subcultures
 More than Hispanics, Asian-Americans
differ in language and culture of origin
 Comparing Anglo-, African-
American and Hispanic
Buying

 No brand loyalty differences

 No differences in coupon proneness,
impulse buying, or shopping for generic
products
 African-Americans and Hispanics are
more likely to shop for bargains
Representation in
Advertisements
 African-Americans
and Hispanics are
slightly under-
represented.
 Asians are slightly
over-represented.
Regional Subcultures . . .
. . . have distinct
lifestyles resulting
from variations in
climate, culture,
and ethnic mix of
people.

 Consequently,
different product
preferences exist.
 Regional Subcultures . . .

Population
winners. . .
The West
(Nevada, Arizona,
Idaho…)

Population losers. . .
The East (and
North Dakota)
Geodemographics . . .
. . . takes as a unit of
analysis the
neighborhood (i.e.,
census blocks) and
obtains demographic
information on
consumers within
the neighborhood.
Social Classes . . .
 are relatively  Both actual and
permanent and perceptual factors
distinguish groups:
homogeneous  Occupation
strata in a society  Lifestyles
that differ in their  Values
status, wealth,  Friendships
education,  Manner of Speaking
possessions, and  Possessions
values.
Social Class and Buying
Behavior
 Social class better  Income better
reflects purchases predicts major
that symbolically appliance
represent purchases.
lifestyles and
values.
 Social Class and Lifestyles
Four generalizations can be made:

 Social class influences consumer lifestyles

 Social class is a predictor of resources owned
 People buy products and services to
demonstrate their membership in a particular
social class
 People also purchase goods and services to
help advance their social standing
Other Subcultures
 A growing rural population
 Telecommuters, retirement living,

second home.
 Disabled Americans
 49 million in number.
 Internet community.
Managerial Implications
 Positioning. One method of positioning
a product is to differentiate it vis-à-vis
competitors by making special appeals
to subgroups or subcultures.
 Environmental Analysis. Managers
should conduct environmental analyses
in order to track lifestyle changes in
subcultures. Analysis may also offer
insight into emerging subcultures.
Implications continued
 Research. Marketing research can identify
the unmet needs of subcultures.
 Marketing Mix. Differences between age
cohorts, ethnic groups and regions and
social classes have implications for
differences in promotional, product, and
pricing strategy.
 Segmentation. Manufacturers can use age
and ethnic subculture appeals as a
segmentation variable.