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Major Consumer Reference Groups

Major Consumer Reference Groups. Reference Groups. Individual. Family. Friends. Social Class. Selected Subcultures. One's Own Culture. Other Cultures. Values and Culture: Cross-Cultural Comparisons.

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Major Consumer Reference Groups

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  1. Major Consumer Reference Groups Reference Groups Individual Family Friends Social Class Selected Subcultures One's Own Culture Other Cultures

  2. Values and Culture: Cross-Cultural Comparisons.

  3. If you were on a sinking ship with your wife, your child, and your mother, each of  whom could not swim, which one would you save, if you could only rescue one? * USA 60% child, 35% wife, 5% mother Asia 85% mother * * Horton (2001) * Hofstede (1983) Are Cultural differences that important in our modern society ?

  4. Why Talk about Cultural Differences ? ″Differences between national cultures create important opportunitiesfor growth and development, but also can cause serious problemsif they are not understood.″ (Mead 1998)

  5. Problems Communication blunders When Pepsi started marketing its products in China a few years back, they translated their slogan: "Pepsi Brings You Back to Life" quite literally. The slogan in Chinese really meant: "Pepsi Brings Your Ancestors Back from the Grave." Clairol, introduced the "Mist Stick", a curling iron, in Germany only to find out that mist is slang for trash or waste.

  6. “Culture may be thought of as a society’s personality.” “It includes both abstract ideas, such as values and ethics, as well as the material objects and services, such as automobiles, clothing, food, art…that are consumed or valued by a group of people.” (Hoyer and McInnis, 2001) “Culture is the accumulation of shared meanings, rituals, norms and traditions among the members of an organization or a society.” (Schiffman and Kanuk, 1998)

  7. Two Images for a Better Understanding of Culture “Culture can be pictured as a pair of glasses through which people perceive their environment.” “Culture and Consumer Behavior can also be pictured as a two-way street.”

  8. Sources of culture Language Nationality Education Profession Group (ethnicity) Religion Family Consumption Social class

  9. Culture: Sharing Values Universal Role of Enculturation A Relative Importance: A system of values. “Every culture is defined by a set of values shared by its members.”

  10. The Values Transfusion Model Values of Society

  11. The Values Transfusion Model Values of Society Religious Institutions Educational Institutions Early Lifetime Experiences Family

  12. The Values Transfusion Model Values of Society Religious Institutions Educational Institutions Early Lifetime Experiences Family Individual Internalized Values Peers Media

  13. The Values Transfusion Model Values of Society Religious Institutions Educational Institutions Early Lifetime Experiences Family Individual Internalized Values Peers Media Society of Future

  14. The Rokeach Value Survey Instrument TERMINAL VALUES INSTRUMENTAL VALUES A COMFORTABLE LIFE AMBITIOUS AN EXCITING LIFE BROAD-MINDED A WORLD AT PEACE CAPABLE EQUALITY CHEERFUL FREEDOM CLEAN HAPPINESS COURAGEOUS NATIONAL SECURITY FORGIVING PLEASURE HELPFUL SALVATION HONEST SOCIAL RECOGNITION IMAGINATIVE TRUE FRIENDSHIP INDEPENDENT WISDOM INTELLECTUAL

  15. TERMINAL VALUES INSTRUMENTAL VALUES A WORLD OF BEAUTY LOGICAL FAMILY SECURITY LOVING MATURE LOVE OBEDIENT SELF-RESPECT POLITE A SENSE OF ACCOMPLISHMENT RESPONSIBLE INNER HARMONY SELF-CONTROLLED

  16. Summary of American Core Values VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR ACHIEVEMENT AND SUCCESS ACTIVITY Hard work is good; success flows from hard work Acts as a justification for acquisition of goods Keeping busy is healthy and natural Stimulates interest in products that are time-savers and enhance leisure time EFFICIENCYAND PRACTIALITY Admiration of things that solve problems People can improve themselves; tomorrow should be better than today. Stimulates desire for new products that fulfill unsatisfied needs; ready acceptance of products that claim to be “new and improved”

  17. VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR MATERIAL COMFORT “The good life” Fosters acceptance of convenience and luxury products that make life more comfortable and enjoyable INDIVIDUALISM Being oneself Stimulates acceptance of customized or unique products that enable a person to express his or her own personality FREEDOM Freedom of choice Fosters interest in wide product lines and differentiated products EXTERNAL CONFORMITY Uniformity of observable behavior; desire for acceptance Stimulates interest in products that are used or owned by others in the same social group

  18. VALUE GENERAL FEATURES RELEVANCE TO CONSUMER BEHAVIOR HUMANITAR-IANISM Caring for others, particularly the underdog Stimulates patronage of firms that compete with market leaders YOUTHFULNESS A state of mind that stresses being “young at heart” and having a youthful appearance Stimulates acceptance of products that provide the illusion of maintaining or fostering youthfulness FITNESS AND HEALTH Caring about one’s body, including the desire to be physically fit and healthy Stimulates acceptance of food products, activities, and equipment perceived to maintain or increase physical fitness

  19. Example of Value use in Advertising: Molson Canadian Reinforcement of Nationalism-Patriotism: Survey Product, Communication and positioning. Canadian difference reinforced. 1-2-3-4-5-6

  20. American Core Values American values and advertising Which core values provide appeals for advertising? Understanding values helps advertisers avoid violating norms or standards of society Sometimes advertisers shock consumers by “breakingtherules”

  21. Symbol Anything that stands for something else. Symbols can be verbal or nonverbal.

  22. Ritual A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated over time.

  23. Selected Rituals and Associated Artifacts SELECTED RITUALS TYPICAL ARTIFACTS Wedding-2 White gown (something old, something new, something borrowed, something blue) Birth of child U.S. Savings Bond, silver baby spoon Jogging Towel, exercise clothes, water, portable tape player 50th Wedding Anniversary Catered party, card and gift, display of photos of the couple’s life together Graduation Pen, U.S. Savings Bond, card, wristwatch Valentine’s Day Candy card, flowers New Year’s Eve Champagne, party, fancy dress Thanksgiving Prepare a turkey meal for family and friends

  24. SELECTED RITUALS TYPICAL ARTIFACTS Jogging Towel, exercise clothes, water, portable tape player Sunday football Beer, potato chips, pretzels Super Bowl Party Same as Sunday football (just more) Starting a new job Get a haircut, buy some new clothing Get a job promotion Taken out to lunch by coworkers, receive token gift Retirement Company party, watch, plaque Death Send a card, give to charity in the name of the deceased

  25. Classifying and Comparing Cultures 4 dimensions(Hofstede, 1980) Period artifact, sample, attitude-survey, (Horton et al, 2001; Sondegaard, 1994) Power Distance Masculinity/Feminity Collectivism/Individualism Uncertainty Avoidance

  26. Adaptation Local standards Local hygiene and safety standards Local particuliarities in service, maintenance and distribution Avoidance of unfavorable image of imported products, companies, nationality or brand names Cultural adequate use of symbols possible Standardization Use of: Experience effects Economies of scale International standards International use of products Significant learning effects Use of favorable image of imported products, companies, nationality or brands, exotic or ethnic appeal Cross-Cultural Marketing

  27. Subculture • “ Groups whose members share beliefs and common experiences that set them apart from other members of a culture” • “A distinct cultural group that exists as an • identifiable segment within a larger, • more complex society.”

  28. Relationship Between Culture and Subculture Subcultural Traits of Hispanic Americans Dominant Cultural Traits of U.S. Citizens Subcultural Traits of Asian Americans

  29. Examples of Major Subcultural Categories CATEGORIES EXAMPLES Nationality French, Puerto Rican, Korean Religion Catholic, Hindu, Jew Geographic region Southeastern, Midwestern, Eastern Race African-American, Caucasian, Asian-American Age Y, Xers, middle age, elderly Gender Female, Male Occupation Engineer, cook, plumber Social class Lower, middle, upper

  30. LifestyleStudies How time is spent Importance of things around them Beliefs Socioeconomic characteristics

  31. VALS 2 - LIFESTYLE SEGMENTATION Source: VALS 2, SRI International Abundant Resources Status Oriented Principle Oriented Action Oriented Minimal Resources

  32. VALS 2 - LIFESTYLE SEGMENTATION Abundant Resources Status Oriented Principle Oriented Action Oriented FULFILLED11% BELIEVERS16% Minimal Resources

  33. VALS 2 - LIFESTYLE SEGMENTATION ACTUALIZERS8% Abundant Resources Status Oriented Principle Oriented Action Oriented FULFILLED11% ACHIEVERS13% STRIVERS13% BELIEVERS16% Minimal Resources STRUGGLERS12%

  34. VALS 2- LIFESTYLE SEGMENTATION ACTUALIZERS8% Abundant Resources Status Oriented Principle Oriented Action Oriented EXPERIENCERS12% FULFILLED11% ACHIEVERS13% STRIVERS13% MAKERS13% BELIEVERS16% Minimal Resources STRUGGLERS12%

  35. Subcultures • Ethnic Subculture • The US situation (plurality and main groups) • Ethnic groups geographically concentrated • Effect of Immigration • Major changes

  36. Intercultural Influence Acculturation and ethnic Identity Unidimensional versus bi-level. Acculturation Ethnic identity When and how cultural changes happen? Strong Acc Weak Acc Measures: Social Participation, Language, Religion….. Strong Et Id Weak Et Id Individual A Individual A Individual A

  37. U.S. Ethnic Landscape : Cues for Reflection

  38. Source: Claritas, 2003

  39. Targeting Hispanic-American Consumers

  40. Challenges for Ethnic Marketing in the U.S. Privacy and Redlining : ethical issues Preconceived perceptions of ethnic groups Diversity within an ethnic group and constant evolution of ethnicity: Post Ethnic America.

  41. Issues in Studying Hispanic American Subcultures • Hispanic Consumer Behavior • Stronger preference for well-established brands • Prefer to shop at smaller stores • Some are shifting food shopping to non-ethnic American-style supermarkets • Youths are more fashion-conscious

  42. Ways in Which “Hispanic” Has Been Defined NAME OF INDICATOR NATURE/SCOPE AND COMMENTARY Spanish surname Not a definitive; since a non-Hispanic person might have a Spanish surname, or an Hispanic person might have a non-Spanish surname. Country of origin The birthplace of persons born in the Untied States of Hispanic parents would not reveal their Hispanic background. Country of family ancestry Includes those individuals who may not be Hispanic despite coming form a particular Spanish-Latin country. Spanish spoken at home A significant minority of Hispanic households may speak English at home, yet consider themselves to be cultural Hispanic. Self-identification It is reasonable that if an adequate number of self-report choices are offered, a person might identify himself or herself as “Hispanic.” Degree of identification This measure captures the “degree” of personal identification as “Hispanic” and augments the self-identification measure.

  43. Figure 13.4 Hispanic Linguistic Challenge

  44. Reaching the African-American Audience • Two Alternate Strategies • Running all the advertising in general mass media • Running additional advertising at special advertising in selected media directed exclusively to African-Americans

  45. Asian-American Consumers • Where Are the Asian-Americans? • Largely urban • Asian-Americans As Consumers • Buying power of $110 billion annually • Brand loyal customers • Frequently male-oriented consumer decisions • Attracted to retailers who welcome Asian-American patronage

  46. Facts and Figures regarding Ethnic Markets

  47. Facts and Figures regarding Ethnic Markets

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