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PART II: EXTERNAL INFLUENCES

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CHAPTER

THE CHANGING
AMERICAN
SOCIETY:
DEMOGRAPHICS
AND SOCIAL
STRATIFICATION
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Consumer Behavior In The News


Laundry Without Water?
Tide launched Swash, a line of products to freshen
and de-wrinkle clothes without washing them.
Can you guess who the target market is?
Baby Boomers
Generation X
Generation Y

Source: Laundry 101: No Water Necessary, Business Week, November 19, 2007, p. 25.

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Consumer Behavior In The News


Swash Target Market?
If you guessed Generation Y you were correct!
Specifically, the college-aged crowd.
As one expert explains:
Its wise to go after young adults this way. A
loyalty to Tide may pay off later, when their
domestic skills kick in.

Source: Laundry 101: No Water Necessary, Business Week, November 19, 2007, p. 25.

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Demographics and Social Stratification


Demographics

Population and Size


Occupation
Education
Income
Age

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Demographics and Social Stratification


Occupational Influences on Consumption

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Demographics and Social Stratification


Education Level Influences on Consumption

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Demographics and Social Stratification


Demographics
Age
U.S. Age Distribution1
Key Growth Categories

Resident Population Projections by Sex and Age: 2010 to 2050, Statistical Abstract of the United States 2008 (Washington, DC: U.S. Bureau of the Census, 2008), Table 10.

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Demographics and Social Stratification


Age Influences on Consumption

18-24

25-34

35-44

45-54

55-64

65+

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Understanding American Generations


A Generation or age cohort is a
group of persons who have
experienced a common social,
political, historical, and economic
environment.
Cohort analysis is the process
of describing and explaining the
attitudes, values and behaviors
of an age group as well as
predicting its future attitudes,
values, and behaviors.
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Understanding American Generations


Pre-Depression
Depression

Mature Market

Baby Boom
Generation X
Generation Y
Tweens

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Understanding American Generations


How to Target the Mature Market

Gerontographics has identified the following four


segments of the mature market:
- Healthy Indulgers
- Ailing Outgoers
- Health Hermits
- Frail Recluses

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Understanding American Generations


Baby Boom Generation: A Closer Look
Compared to prior generations, Boomers are:
Higher income, higher education
More tech savvy
Defining retirement differently
Boomers also are:
Strong market for anti-aging products, travel, and
financial services
Often alienated by overly youth oriented appeals in ads

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Understanding American Generations


Generation Xers: A Closer Look
Beyond the stereotype:
Stereotype Xers as disenfranchised youth
Reality 1 Xers are more highly educated than previous
generations
Reality 2 Xer women are more highly educated than
Xer men
Reality 3 Xers are getting married, having families and
facing the time pressures associated with these events
Reality 4 Reaching Xers requires special attention to
media, particularly online
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Understanding American Generations


Generation Yers: A Closer Look
Interesting Facts About Gen Y:
Really Two Sub-Markets: Older teens & young adults
Expected to have the highest education of previous
generations with incomes to follow
Very tech savvy with media options including Internet, cell
phones, and video games
A strong market for automobiles with brands like Toyota
creating edgy and affordable models such as the Scion to
target them

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Applications in Consumer Behavior


Palm Centro ad
targets the active and
diverse youth
market.
Notice the use of
texting and sports as
touch points.

2007 Palm, Inc. All rights reserved.

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Social Stratification
Social Rank and Social Class System
Status Crystalization
The Derived Nature of Social Class
The Coleman-Rainwater Hierarchy
The Measurement of Social Class
Social Stratification and Marketing Strategy

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Social Stratification
We are all familiar with the concept of social class, but
most of us would have difficulty explaining our class
system to a foreigner.
Social rank is ones position relative to others on one or
more dimensions valued by society, also referred to as
social class and social standing.
A social class system is a hierarchical division of a
society into relatively distinct and homogeneous groups
with respect to attitudes, values, and lifestyles. "Pure
social classes do not exist in the U.S. or most other
industrialized societies.
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Social Stratification
Status dimensions, such as parental status, education,
occupation and income, set limits on ones lifestyle,
including ones residence.
Status crystallization,
crystallization which is moderate in the U.S.,
reflects the consistency of these status dimensions.

Web
What Exercise
Social Class are You?
Play the Chintz or Shag Game from PBS
Click button to link to PBS site

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Social Structure in the United States


Social Standing is Derived and Influences Behavior

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Social Structure in the United States


The Coleman-Rainwater Social Class Hierarchy

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Social Structure in the United States


The Coleman-Rainwater Social Class Hierarchy

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Social Structure in the United States


Middle Americans
Upward Pull Strategy

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The Measurement of Social Class


There are two basic approaches to measuring social status:
- Single-item index
- Multi-item index
Since an individuals overall status is influenced by several
dimensions, single-item indexes are generally less accurate
than are well-developed multi-item indexes.
indexes

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The Measurement of Social Class


Single-Item Index
Education
Occupation
Income

Marketersgenerallythinkoftheseasdirect
influencersofconsumptionbehaviorratherthan
determinantsofstatusthattheninfluencebehavior.

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The Measurement of Social Class


Multi-Item Index
Hollingshead Index of Social Position
Index of Social Position (ISP)

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The Measurement of Social Class


Demographics or Social Status?
Social status is largely derived from demographics;
demographics that is,
ones income, education, and occupation go a long way
toward determining one's social class or status.
Should marketers use an overall measure of social status
(a multi-item index) or a demographic variable such as
income?
Unless the marketer is interested in social standing per se,
he/she will most likely focus on demographic
characteristics as direct influencers on consumer
behavior!
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Social Stratification and Marketing Strategy


While social stratification does not explain all consumption
behaviors, it is certainly relevant for some product
categories.
You can clearly see this by visiting a furniture store in a
working-class neighborhood and then an upper-class
furniture store.
A product or brand may have different meanings to
members of different social strata, for example, a watch.
Likewise, different purchase motivations for the same
product may exist between social strata.
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