Consumer Behavior Chapter 5-8

Subculture

a segment of a larger culture whose members share distinguishing values and patterns of behaviors

Ethnic Subcultures

those subcultures whose members’ unique shared behaviors are based on common racial, language, or nationality background

Ethnic subcultures examples

Black American, Hispanic American, Asian American, American Indian, Asian Indian American, Arab American

Black Americans have a purchasing/buying power of

$1.8 trillion

Top 20 percentile of Black Americans earn

>$182,000

Hispanic Americans have a purchasing/buying power of

$1.5 trillion

What plays a major role in the attitudes and behaviors of Hispanic consumers?

Acculturation

Acculturation

the degree to which an immigrant has adapted to their new culture

Roughly __% of the Hispanic population is due to immigrations

34

Consumer groups in Hispanic Americans

First generation adults, Second generation adults, Third+ generation adults

First generation adults

63%. those born outside of the U.S.

Second generation adults

19%. those born in the U.S. to immigrants parents

Third+ generation adults

17%. those born in the U.S. to U.S. born parents

Who is the highest educated and highest income group?

Asian American

Asian Americans have a buying/purchasing power of

$1.2 trillion

Which group has the most diverse nationalities, languages, and religions?

Asian Americans

Largest ethnic group in Asian Americans

Chinese

How many Native Americans tribes are there?

570

What is the largest Native American tribe?

Cherokee

Native Americans have a buying/purchasing power of

$118 billion

Which ethnic subculture has high value on edcuation, especially children’s education?

Asian Indian American

Who plays a dominant role in making family decisions in Asian Indian American households?

Husbands

More than __% of Arab Americans are U.S. citizens

80

__% of Arab Americans identify as Christian

66

__% of Arab Americans identify as Muslim

24

Is American a religious or secular society?

Secular

Religious Subcultures

Christian and Non-Christian

Christian Subcultures

Roman Catholic, Protestant, Born-Again Christian

Non-Christian Subcultures

Jewish, Muslim, Buddhist

Regional subcultures are a result of

climate conditions, natural environment and resources, characteristics of immigrant groups, significant social and political events

Household purchase and consumption behavior are influenced by

Structure of household unit, stage of household life cycle, household decision process

Household

all the people who occupy a housing unit

Family Household

a household having at least two members related by birth, marriage, or adoption, one of whom is the householder

Householder

owns or rents the residence

Nonfamily Household

a householder living alone or exclusively with others that they are not related to

Traditional Family

married opposite-sex couple and their own or adopted children living at home

Stepfamily

married couple family household with at least one child under the age of 18 who is a stepchild

The American household has increased in what areas?

single-parent families, cohabitation with children involved, blended families, multipartner fertility, mother in workforce, mothers as the breadwinner

The American household has decreased in what areas?

Family size

Traditional View Household Life Cycle

1. people married by their early 20s

2. couple has several children

3. their children grew up and started families

4. original couple retired

5. the male eventually dies

6. a few years later, the female dies

what is HLC

household life cycle

Household Life Cycle

presents unique needs and wants, as well as financial conditions and experiences

What elements heavily influence how an individual meets their needs?

income, occupation, and education

Family Decision Process

process by which decisions that directly or indirectly involve two or more family members are made

Initiators in the family decision process

parents or children

Decision makers in the family decision process

parents or children

Purchasers in the family decision process

parents

Users in the family decision process

children

Influencers in the family decision process

children

Information gatherers in the family decision process

parents

Determinants of Family Purchase Roles

culture and subculture, role specialization, degree of involvement, personal characteristics

Family decision making conflict resolution methods

bargaining, impression management, use of authority, reasoning, playing on emotion, additional information

Bargaining

trying to reach a compromise

Impression Management

misrepresenting the facts in order to win

Use of Authority

claiming superior expertise or role appropriateness

Reasoning

using logical argument to win

Playing on Emotion

using the silent treatment or withdrawing from the discussion

Additional Information

Getting additional data or third-party opinion

Consumer Socialization

process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers

Consumer Socialization Content

what children learn with respect to consumption

Consumer Socialization Process

how children learn consumer socialization content

Piaget’s Stages of Cognitive Development

Stage 1: Sensorimotor Intelligence (0-2 years)

Stage 2: Preoperational Thoughts (3-7 years)

Stage 3: Concrete Operations (8-11 years)

Stage 4: Formed Operations (12-15 years)

Piaget’s Cognitive Development Stage 1

Sensorimotor Intelligence (0-2 years), behavior is primarily motor and child does not “think” conceptually yet

Piaget’s Cognitive Development Stage 2

Preoperational Thoughts (3-7 years), development of language and rapid conceptual development

Piaget’s Cognitive Development Stage 3

Concrete Operations (8-11 years), child develops ability to apply logical thought to concrete problems

Piaget’s Cognitive Development Stage 4

Formed Operations (12-15 years), child’s cognitive structures reach their greatest level of development

Categories of the Content Consumer Socialization

consumer skills, consumption-related preferences, consumption-related attitudes

Consumer Skills

the capabilities necessary for purchases to occur such as understanding money, budgeting, and product evaluation

Consumption-Related Preferences

the knowledge, attitudes, and values that caused people to attach differential evaluations to products, brands, and retail outlets

Consumption-Related Attitudes

cognitive and affective orientations toward marketplace stimuli such as advertisements, salespeople, and warranties

Process of Consumer Socialization Methods

instrumental training, models, mediation

Instrumental Training

occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement

Modeling

occurs when a child learns appropriate, or inappropriate, consumption behaviors by observing others

Mediation

occurs when a parent alters a child’s initial interpretation or, or response to, marketing stimuli

CARU

children advertising review unit

Ethical concerns of marketing to children

1. younger children have limited information processing ability to make informed decisions

2. advertising can produce undesirable values in children

3. advertising can cause unhealthy amount of family conflict

Group

two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another that their behavior or interdependent

Reference Group

a group whose presumed perspectives or valued are being used by an individual as the basis for their current behavior

4 criteria that are useful in classifying groups

membership, strength of social tie, type of contact, attraction

Consumptipon subcultures

groups with an identifiable hierarchical social structure and a set of shared beliefs or values

Brand Communities

add value to the ownership of the product and build intense loyalty

Online Communities

community interacts around a topical of interest on the Internet

3 Rules of Social Media Marketing

1. be transparent

2. be part of the community

3. take advantage of the unique capabilities of each venue

References Group Influence can Take 3 Forms

informational influence, normative influence, identification influence

Informational Influence

often based on either. the similarity of a reference group’s members to the potential consumer or the expertise of the influencing group member

Identification Influence

based on the fact that the individual has internalized the group’s values and attitudes

Opinion Leader

the “go-to person” for specific types of information, specialist in one product category

Market Maven

generalized market influencer who provides significant amounts of information about various products

Influentials

broader term for opinion leaders regardless of their medium used with power to shape the thoughts, behaviors, decisions, or cultures of others

E-fluentials

subset of influentials whose influence is primarily exerted through digital channels

Product Influencer

a social media personality who promotes products to their followers by creating content like reviews and posts. they leverage their credibility to boost brand awareness and influence purchasing decisions

Strategies designed to generate WOM

advertising, product sampling, retailing/personal selling, creating buzz

Viral Marketing

an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages through a widespread network of buyers

Guerrilla Marketing

marketing with a limited budget using unconventional communication strategies

Innovation

an idea, practice, or product perceived to be new by the relevant individual or group

Innovation ranges from

no change to radical change

Diffusion of Innovation

how the innovation is going to spread and be accepted in the consumer’s mind

Categories of Innovation

continuous innovation, dynamically continuous innovation, discontinuous innovation

Continuous Innovation

requires relatively minor changes in behavior that are unimportant to the consumer

Dynamically Continuous Innovation

requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual