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CONSUMERS AND SUBCULTURES. What are some demographics. Age education occupation social class Ethnic group gender family size and composition distribution of population. So What Are demographics?. Objective Quantifiable Characteristics of a population

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  2. What are some demographics • Age • education • occupation • social class • Ethnic group • gender • family size and composition • distribution of population

  3. So What Are demographics? • Objective • Quantifiable • Characteristics of a population • Important variables for market segmentation • Different segments have different consumption patterns

  4. What does money mean to you? Our ideas about money affect our consumption behaviour

  5. the meaning of money • Security • Comfort • being able to help one's children, • freedom • pleasure • success or failure • social acceptability • love • happiness Money means different things to different segments

  6. What does the demand for goods and services depend on? • the ability to buy • the willingness to buy

  7. To Spend or Not to Spend Consumers’ willingness to buy? • a measure of consumers’ opinions on the financial position of their own household and the economy as a whole • and to what extent they think it is a good time to buy large expensive items such as a TV or a computer. • Demand for necessities remains stable over time • The underlying data are taken from the consumer confidence survey.

  8. The Conference Board's Consumer Confidence Survey • a monthly report based on a representative sample of 5,000 U.S. households across the country. • Consumer assessment of current economic conditions. Covers things such as • Employment • Spending intentions over the next six months • Feelings about business conditions over the next six months • Industries that rely on the Survey for forecasting include manufacturers, retailers, banks, and government agencies

  9. The Index for the US at the end of February 2004 was 87.3 • (1985=100),

  10. “Consumers began the year (2004) on a high note, but their optimism has quickly given way to caution,” says Lynn Franco, Director of The Conference Board’s Consumer Research Center. “Consumers remain disheartened with current economic conditions, and at the core of their disenchantment is the labor market. While the current expansion has generated jobs over the past several months, the pace of creation remains too tepid to generate a sustainable turnaround in consumers’ confidence. And, with consumers anticipating economic conditions to remain about the same in the months ahead, their short-term outlook turned less optimistic.” What are the implications for Marketers of automobiles?

  11. Consumption growth displays a positive relation to the willingness to buy. • The index of willingness to buy is a clear predictor for the future development of consumer spending.

  12. Confidence and willingness to buy varies by market segment and is usually higher among younger than older consumers

  13. And among higher income consumers than lower, • college graduates over high school graduates • whites or other ethnic groups • men or women

  14. Willingness to buy is also affected by product and method of purchase Willingness to buy by telephone

  15. Social Class

  16. What is Social Class? • relatively permanent strata in a society that are distinct subcultures What are the typical factors that differentiate the social classes? • Occupation • Education attained • Behavioral standards – taste culture • Source of Income • Level of Income; wealth • Dwelling area • Power • Religious Affiliation; Associations • lifestyles, buying patterns, motivations and values • possessions

  17. Classes in Canada Upper Class • Upper-upper class • About 1%, “old money” • Lower-upper • 2-4%, nouveau riche, .com millionaires. • Sir Kenneth Thompson Canada’s richest man (16.4 billion 2001)

  18. Classes in Canada: Middle Class • 40 – 50% of population • Considerable racial and ethnic diversity • Upper-middle: upper managerial or professional fields ($100k +) • middle-middle class. ($50-$100,000) • Lower-middle: middle management, white-collar and highly skilled blue-collar. (< $50,000)

  19. Classes in Canada: Working Class • 1/3 of the population. • Lower incomes than middle-class. • No accumulated wealth. • Less personal satisfaction in jobs.

  20. Classes in Canada: Lower Class • 20% of population • Social assistance and working poor • Revolving door of poverty • Seasonal, part-time workers, minimum wage earners.

  21. The Importance of Class What sort of things does social class affect • Lifestyles and Interests • Tastes • Language • Self Image • Values • Political orientation • Access to such resources as education, health care, housing and consumer goods. • How long you will live & how healthy you will be I.e. Consumption behaviour who spends how much and on what

  22. Dress: white collar vs. blue collar • Form of recreation: upper-class people are expected to play golf rather than shoot pool down at the pool hall - but they can do it at home. • Residential location: upper-class people do not ordinarily live in slums • Material Possessions: Kind of car: Rolex watch, how many bathrooms a house has

  23. How Much Money Will Be Spent How Money Will Be Spent Vuitton  Credit Card Holder $96.00 Celine Boogie Bag $990

  24. Where it will be spent Harry Rosen’s

  25. How Do the Lower and Upper Classes Differ in Their Consumption Behaviour? Lower classes generally focus on more immediate and more utilitarian needs Upper classes are often likely to approach consumption from a more aesthetic perspective

  26. Marketing Implications Your company XYZ corp. manufactures inexpensive furniture and has targeted the less well off. In an effort to upgrade your image the company has decided to target higher-class consumers. What will the marketing implications be on the following. • Product choices and development • Product design and packaging • Distribution • Price • Advertising and other marketing communications

  27. Status SymbolsWhat are They? Conspicuously consumed goods which are used to provide evidence of wealth Why do some people feel the need for status symbols? • motivation for the purchase and display of products is not to enjoy them but rather to let others know that we can afford them • Anonymity exacerbates the need for uniqueness. If most people are unknown in public, status cannot be conveyed by reputation

  28. The Sony Vaio laptop computer “Take a look at this status symbol” “Wow you're going to attract attention opening this in public…” 12.1" XGA screen 30 gig drive and 256 MB RAM, 2 USB, a Firewire/iLink and network as well as . a CD writer that also reads DVDs.

  29. Status SymbolsExamples

  30. When consumers deliberately mock a trend by carefully selecting products and consumption patterns that are not the current fashion or style. Paper Denim Retro Torn Jeans $140.00 Parody Display

  31. When too many others use or possess a status symbol such that it loses much of its former power Fraudulent Symbolism


  33. What is a Subculture? A distinct cultural group that exists as an identifiable segment within a larger, more complex society/culture How do you distinguish one group from another? • beliefs, • Values • Customs • Lifestyles and interests • norms • Language • insignias Every consumer belongs to many subcultures

  34. Which region has the highest bubble gum sales? What are some Types of Subcultures in Canada • Ethnic • Age • Religious • Regional

  35. What is an Ethnic Subculture? • Possess common cultural and or genetic ties which are identified both by its members and by others as a distinguishable category. • Ethnic identity is a significant component of a consumer’s self concept

  36. Whyhas Ethnic marketing become increasingly important to marketers who wish to maintain or increase market share? • Ethnic groups in Canada are growing more than 7 times faster than the general population • Advertising Canada estimated that by 2001 African and Asian populations in Canada would represent in excess of $300 billion in purchasing power. • Ethnicity plays an important role in how brands are perceived and purchase decisions made

  37. What makes Ethnic Subcultures Different?

  38. Immigration in Canada • Canada has one of the world’s most liberal immigration policies and is considered a multicultural or pluralistic society (as opposed to melting pot) • New immigrants tend to cluster together geographically which makes them easy to reach. • Concentrated in major Canadian cities • Bring with them customs, traditions, values, etc. • New immigrants are likely to be Asian

  39. Population reporting at least one Ethnic Origin other than British, French or Canadian, 1986, 1991 and 1996 Censuses

  40. Who are they and where are they?

  41. Percentage of Visible Minority Population by All Age Groups, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census

  42. Visible Minority Population for Provinces and Territories 1996 Census

  43. Visible Minority Population in selected Census Metropolitan, 1996 Census

  44. Percentage of the Visible Minority Population Aged 0 to 24, for Canada, Provinces, Territories and selected Census Metropolitan Areas, 1996 Census

  45. Asian Canadians • Asian Canadians are the Fastest Growing Minority Group in Canada • Small, Diverse, Growing • Above Average Income • ($2000/yr more) • Native Language Print Media • Education Oriented • College Graduation Rate is Twice That of Whites) • tend to be more brand and price conscious • Tend to be early adapters of new technology • .

  46. Reaching the Asian Canadian Consumer Problems Encountered by Canadian Marketers • Translating Advertising Messages Into Asian Media • Overlooked Complex Differences Among Asian Subcultures • Lack of Media Available to Reach Asian Canadians • Been Insensitive to Cultural Practices A British ad for Tennent’s beer marketed to the East Asian community

  47. Marketing Implications of Subculture • Minority ethnic groups represent a significant opportunity for brands • What language does your key ethnic demographic prefer that you use in communications with them? • What media do they read, listen to or watch? • Does the product or service support their culture requirements? • Distribution-geographic concentration of many ethnic subcultures means that marketers can reach them more easily; also in some cases certain groups prefer to shop in certain stores • One must take into account, religious dictates, gender roles, values, spending patterns, and symbols

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