Chapter 15

1. Chapter 15 Culture and Microcultures Culture and Microcultures

2. Snapshot from the Marketplace • For the past 50 years, American’s ideology and lifestyle have been invading many countries worldwide. • Although originally welcomed in these countries, such influence now faces resistance, if not even rejection. • Resentment is largely due to differences in values, habits, and heritage between countries.

3. The Meaning of Culture • A society’s distinctive and learned mode of living, interacting, and responding to environmental stimuli • This mode is transmitted and shared between its members.

4. How Is Culture Learned? • Culture is acquired through: • Socialization:the process by which we acquire knowledge, skills, and morals necessary to function productively in a society • Enculturation:the process of introducing youth with society’s norms and values • Acculturation:the process of learning the norms, values, and behaviors of a different culture

5. Components of Culture • Culture includes both material (tangible) and abstract (intangible) elements. • The tangible and intangible components of a culture do not necessarily evolve at the same pace. • Mechanical and technical traits can mature quickly, while ideological traits may linger behind. • Cultural lag is the delay between rise of a technological innovation and the point of publics’ acceptance or rejection of it.

6. Cultural Sensitivity vs. Ethnocentrism • In today’s diverse culture, we must maintain cultural sensitivity by accepting and respecting the views and actions of others even though they may be markedly different than ours. • Ethnocentrism: the tendency to make cross-cultural evaluations based on one’s own beliefs and values

7. How to Assess Culture • Cultural aspects can be assessed by: • Ethnography:using unobtrusive observation of people in a culture. • Direct Questionnaires:using research instruments to ascertain cultural tendencies. • Content Analysis:reviewing a culture’s media and literature output. • Key Informants:soliciting views of experts on a culture.

8. Cultural Values • Cultural values are those shared broadly across a society, values that are learned, reinforced, and modified within subcultures, ethnic groups, social classes, and families. • Instrumental values • shared beliefs about how people should behave • Terminal values • desirable life goals

9. Cultural Values (continued) • Value-Attitude-Behavior Hierarchy • abstract values affect midrange attitudes that led to specific consumer behaviors • Value measures • List of Values (LOV) • Hofstede’s worker values • Consumer ethnocentrism • Belief that one’s own system of tastes and preferences are better than that of another cultural group • Materialism • importance a consumer attaches to worldly possessions or consumption-based orientation to happiness seeking

10. Hofstede’s Cultural Dimensions • According to Hofstede, cultures can be assessed by noting their stance on: • Power Distance • Uncertainty Avoidance • Individualism • Masculinity • Term Orientation

11. Hofstede’s Cultural Dimensions (cont’d) • Power Distance: degree to which less powerful members of a society accept the fact that power is not distributed equally • In high-power distance cultures, people obey authority without question. • In low power-distance cultures, people are seen as equals. • Implications of power distance extend to decision making and promotional strategy.

12. Hofstede’s Cultural Dimensions (cont’d) • Uncertainty Avoidance: extent to which people feel threatened by ambiguous situations, as well as their reaction to such threats • In high uncertainty avoidance societies, people have low tolerance for risk and feel the need to counter it. • In low uncertainty avoidance societies, people are willing to assume greater risk, and feel less need to restructure their activities to avoid it. • Implications of uncertainty avoidance extend to adoption and branding decisions.

13. Hofstede’s Cultural Dimensions (cont’d) • Individualism: tendency of people to look after their own self interest rather than the interests of an entire group • In societies high on individualism, people tend to be inner directed and make individual decisions based on their own values. • In societies low on individualism, people tend to place greater importance on group affiliation and approval of others. • Implications of individualism extend to promotional messages deemed appropriate for different societies.

14. Hofstede’s Cultural Dimensions (cont’d) • Masculinity: degree to which the dominant values in a society are success, money, and things • In societies high on masculinity, people place greater importance on earnings, material possessions, and achievement. • In societies low on masculinity, people care for others and tend to be concerned about the environment as well as quality of life. • Implications of masculinity extend to the fields of segmentation, targeting, and positioning.

15. Hofstede’s Cultural Dimensions (cont’d) • Term Orientation: a culture’s mode of viewing time-related societal aspects such as its past, present, and future, as well as the immediacy of gratification of ones needs • In short-term oriented societies, time is of the essence, where people are less patient, place reduced value on the elderly, and seek quick fixes to problems. • In long-term oriented societies, people are characterized by patience, perseverance, and respect for the past and elderly; they seek long-term solutions to problems. • Implications of term orientation extend to promotional messages.

16. Time Consciousness Communication and Language Mental Processes and Learning Beliefs and Attitudes Consumer Behavior in a Cultural Context Rewards and Recognition Values and Norms Sense of Self Dress and Appearance Food and Eating Habits Relationships The Sociocultural Dimensions of Consumer Behavior

17. Microcultures • Coverage of this topic encompasses both ethnic as well as consumption microcultures. • Ethnic microcultures include African American, Hispanic American, and Asian American consumers. • Consumption microcultures include the Harley-Davidson Owners Group (HOG) and Dead Heads and the Grateful Dead Organization, among others.

18. Accounted for 40 million individuals in 2008 Constituted of 13 percent of the population in 2008 Share of the population will drop to 11.8 percent in 2050 Had buying power of $964 billion in 2009 Median income in 2007 was $32K 36 percent of Black households have median income of around $80K Growing at a faster rate than Whites 65 percent live in top 15 U.S. markets One third of Black buying power is in CA, TX, NY, and IL Younger-median age is 30.1 (compared with 36.4 years for Whites) Ethnic Microcultures: African American Consumers

19. Shopping is a social experience Look for respect in shopping Shop at discount, box, department, and specialty stores Often seek quality, not quantity Buy national brands Watch more TV, listen to more music, and play more electronic games than Whites Use of the Internet by Blacks in 2008 was 59 percent, compared to 75 percent for Whites Spend more time in active sports and religious activities Use more telephone services than Whites. Ethnic Microcultures:Profile of African American Consumers

20. Accounted for approximately 45 million individuals in 2007 Constituted about 15 percent of the population in 2007 Hispanic growth rate is approximately 9.8 percent annually Will constitute 29 percent of the population in 2050 Had buying power of 1 trillion in 2008 Come from different geographic areas (Mexico, Central and South America, Puerto Rico, Cuba, and other areas) Younger-median age is 27 years; almost half are 25 years of age and younger Large concentrations found in AZ, CA, FL, IL, NJ, NY, and TX Rapidly surpassing African Americans as the largest ethnic minority group in the USA Ethnic Microcultures: Hispanic American Consumers

21. Strong commitment to family Live in large families and extended family households Above average expenditures on groceries, infant clothing, beauty aids, and phone services Eat at home more often than whites Seek established brands and those that are familiar from their homeland Prefer shopping in smaller stores Can be divided into three acculturation segments: the unaccultured (40 percent), bicultured (32 percent), and the accultured (28 percent) Ethnic Microcultures: Profile of Hispanic American Consumers

22. Accounted for 15 million individuals in 2008 Constituted 5 percent of the population in 2008 Projected to reach 41 million by 2050 Come from diverse geographic areas (17 countries) The Chinese comprise the single largest group, followed by Filipinos and Japanese Median household income is $65,000 Over half live in CA, NY and HI Average age is 35.4 years Highly educated, 49 percent hold bachelors degrees Ethnic Microcultures: Asian American Consumers

23. Strong family ties Highly educated and affluent Hold executive, professional, and technical positions; or run their own businesses Seek quality brands Shopping is viewed as a leisure activity Highly status conscious High ownership and use of technically-oriented products Heavy users of the Web Ethnic Microcultures: Profile of Asian American Consumers

24. Consumption Microcultures • Consumption microcultures: distinctive subgroups of society that self-select on the basis of a shared commitment to a particular product class, brand, or consumption activity (e.g., the HOG) • Such groups are identified by hierarchical social structure, unique ethos, shared beliefs and values, as well as distinctive jargon, rituals, and modes of symbolic expression.

25. Marketing Implications of Microcultures • Today, recognizing the importance of cultural relevance is a must for marketers. • Cultural relevance: understanding a microculture’s distinctive values, customs, and aspirations • Marketers should present products and promotions in light of these unique characteristics. • Marketers should avoid symbols, icons, and values that are meaningless to a particular microculture.