Chapter 14

Subcultures and
Demographics

Key Concepts

Subcultures vs.
demographics
Types of U.S.
subcultures
Baby boomers
Changes in U.S.
age composition
How the elderly
process
information

The AfricanAmerican
subculture
The Hispanic and
Asian subcultures
Regional shifts in
population
Social class
Class differences in
shopping behavior

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
Age
Religion
Gender
Occupation

Marital Status
Income
Region
Ethnicity
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
50

1995
2000
2010
2020

40
30
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-, AfricanAmerican 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 underrepresented.
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
permanent and
homogeneous
strata in a society
that differ in their
status, wealth,
education,
possessions, and
values.

Both actual and

perceptual factors
distinguish groups:

Occupation
Lifestyles
Values
Friendships
Manner of Speaking
Possessions

Social Class and Buying

Behavior

Social class better

reflects purchases
that symbolically
represent
lifestyles and
values.

Income better
predicts major
appliance
purchases.

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--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.