Copyright 2007 by Prentice Hall

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Copyright 2007 by Prentice Hall Chapter 10: The Family and Its Social Class Standing, Culture, Subculture MKT 344 Faculty: NNA Copyright 2007 by Prentice Hall

Culture The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society. November 27, 2018

FORMS OF CULTURAL LEARNING Formal Learning Informal Learning Technical Learning November 27, 2018

Culture Is Learned Issues Enculturation Enculturation and acculturation Enculturation The learning of one’s own culture Acculturation The learning of a new or foreign culture

Culture Is Learned Issues Language and symbols Without a common language shared meaning could not exist Marketers must choose appropriate symbols in advertising Marketers can use “known” symbols for associations

Culture Is Learned Issues Ritual A ritual is a type of symbolic activity consisting of a series of steps Rituals extend over the human life cycle Marketers realize that rituals often involve products (artifact)

Culture Is Learned Issues Sharing of Culture To be a cultural characteristic, a belief, value, or practice must be shared by a significant portion of the society Culture is transferred through family, schools, houses of worship, and media

Selected Rituals and Associated Artifacts TYPICAL ARTIFACTS Wedding White gown (something old, something new, something borrowed, something blue) Birth of child U.S. Savings Bond, silver baby spoon Birthday Card, present, cake with candles 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

The Invisible Hand of Culture Each individual perceives the world through his own cultural lens We often don’t think about the influence that culture has on behavior. Sometimes things just seem like the “right thing to do.” The statement in this slide helps sum up culture as a lens with which people see the world. November 27, 2018 9 Chapter Eleven Slide

A Theoretical Model of Culture’s Influence on Behavior - Figure 11.2 This theoretical model of culture’s influence on behavior gives us a sense of how culture combines with personality traits to build our beliefs and values. This forms our attitudes, which combine with social norms to determine how we intend to behave, and consequently do behave, in given situations. November 27, 2018 Chapter Eleven Slide

Achievement and success Efficiency and practicality American Core Values Achievement and success Activity Efficiency and practicality Progress Material comfort Individualism Freedom External conformity Humanitarianism Youthfulness Fitness and health These eleven values can be considered the “building blocks” of American culture. Take a minute to think about each one. There is probably a good chance that you can picture an advertisement that appeals to each of these values. Most of these values are clearly stated and should be easily understandable. The ones that might need some description are progress and external conformity. Progress relates to the fact that people and the society can improve themselves. It is closely tied to the related values of achievement, success, efficiency, and practicality. External conformity relates to the fact that although consumers like freedom of choice and individualism, they all accept the reality of conformity. November 27, 2018 Chapter Eleven Slide

Subculture A distinct cultural group that exists as an identifiable segment within a larger, more complex society. A subculture has beliefs, values, and customers that set them apart from the other members of the same society. November 27, 2018 Chapter Twelve Slide

EXAMPLES OF MAJOR SUBCULTURAL CATEGORIES Nationality Greek, Italian, Russian Religion Catholic, Hindu, Mormon Geographic region Eastern, Southern, Southwestern Race African American, Asian, Caucasian Age Teenagers, Xers, elderly Gender Female, male Occupation Bus driver, cook, scientist Social class Lower, middle, upper Here are some of the major subcultural categories that exist in the United States. Many of these will be explored in this chapter. November 27, 2018 Chapter Twelve Slide

Major Age Subcultures Generation Y Generation X Baby Boomers Seniors You have probably heard these terms before. Marketers and other researchers divide the population into groups depending on the year they were born. There are many differences between these age subcultures, which will be explored in the following slides. November 27, 2018 Chapter Twelve Slide

What Is a Group? Two or more people who interact to accomplish either individual or mutual goals

Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior.

Reference Groups Influence Normative influence: learning and adopting a group’s norms, values, and behaviors. Reference groups influencing broadly defined value. i.e. Family Symbolic group: a group to which an individual is unlikely to belong, but whose values and behaviors that person adopts

Reference Groups Influence Comparative influence: arises when people compare themselves with others whom they respect and admire. Reference group serving as benchmarks for specific or narrowly defined attitude or behavior. i.e. upper level executive

Types of Reference Groups Membership group: the group to which a person belongs to, or realistically can join. A group where a person belongs to or would qualify for membership. i.e. NSUSS

MAJOR CONSUMER REFERENCE GROUPS

Selected Consumer-Related Reference Groups Friendship groups (informal) Shopping groups (who buys together) Work groups (colleagues) Virtual groups or communities (e-group) Consumer-action groups

Friendship groups: a group of people, usually of similar age, background, and social status, with whom a person associates and who are likely to influence the person's beliefs and behavior. Shopping groups Work groups: a group within a workforce that normally works together.

Virtual groups or communities: individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology. Brand Communities

Reference Group Appeals Celebrities The expert The “common man” The executive and employee spokesperson Trade or spokes-characters Other reference group appeals

TYPES OF CELEBRITY APPEALS DEFINITION EXAMPLE Testimonial Based on personal usage, a celebrity attests to the quality of the product or service Wasim Akram : Diabetes Endorsement Celebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert Amitabh : Vatika Chamanprash, Dawaat Actor Celebrity presents a product or service as part of a character endorsement Beckham : Vodafone Spokesperson Celebrity represents the brand or company over an extended period of time Nicole Kidman : Chanel SRK: Tag Heuer

Nonfamily Households: Married couple, Nuclear family, Extended family Households Nonfamily Households: Unmarried couples, Friends/ Roommates, Boarders

THE FAMILY The nuclear family is two parents and at least one child. If the household has at least one grandparent, it is called an extended family. In addition, there is an increasing number of single-parent households. There are changes that have an effect on spending patterns. There are many different types of families. November 27, 2018 Chapter Ten Slide

OTHER FUNCTIONS OF THE FAMILY Economic well-being – change in mindset, children work but rarely help their parents. Emotional support – “taste mein best, mummy aur Everest” Suitable family lifestyles – upbringing, experience personal and jointly held goals. In addition to socialization , the family provides other functions. The family provides economic security to its members, emotional support, and a way to share common goals and experiences. November 27, 2018 Chapter Ten Slide

Consumer Socialization Children observe parents Children observe siblings Children observe reliable source to copy. Teenagers observe their friends Observe advertisements “Mother” the biggest socialization agent in the subcontinent. Parents teach their children basic values and modes of behavior. These include moral and religious principles, as well as everyday skills such as manners and speech, grooming, and interpersonal skills. Do parents teach children consumption skills? Absolutely, they learn about spending versus savings, how to shop, and how to make purchase decisions. Children today are exposed to marketing messages at a very young age, especially through television advertising and the Internet. November 27, 2018 Chapter Ten Slide

THE FAMILY LIFE CYCLE Traditional Family Life Cycle Stage I: Bachelorhood - single men and women who have moved out of their parents’ home and are living on their own Stage II: Honeymooners - occurs immediately after marriage before the arrival of the first child Stage III: Parenthood - occurs with the arrival of the first child. In this stage, people’s financial status often changes. Stage IV: Postparenthood - postparenthood occurs when the children have left home. This is also called the empty-nest stage and is a time when couples have more time to themselves Stage V: Dissolution - occurs with the death of one spouse. Many in this stage will remarry or begin to live a more economical lifestyle. Marketers have long used the family life cycle, also known as FLC. It gives us an idea of the stages that many families pass throughout their life. The fact is that this traditional life cycle is only passed through by a certain percent of families, so many modifications have been made and a nontraditional family life cycle has been created. In terms of the traditional FLC, we see the 5 stages. Stage I, Bachelorhood, includes single men and women who have moved out of their parents’ home and are living on their own. The next stage, the Honeymooners, occurs immediately after marriage before the arrival of the first child. They often have start-up expenses as they establish a new home. Stage III, parenthood, occurs with the arrival of the first child. In this stage, people’s financial status often changes. Stage IV, postparenthood occurs when the children have left home. This is also called the empty-nest stage and is a time when couples have more time to themselves. The final stage, dissolution, occurs with the death of one spouse. Many in this stage will remarry or begin to live a more economical lifestyle. This web link takes you to Fidelity, a very well know financial services company. You can see that they have products that are targeted to all stages of the family life cycle. November 27, 2018 Chapter Ten Slide

Nontraditional FLC Family Stages Alternative FLC Stage Definition/Commentary Childless couples Increasingly acceptable with more career-oriented married women and delayed marriages Couples who marry later in life Likely to have fewer or no children Couples with first child in late 30’s or later Likely to have fewer children. Want the best and live quality lifestyle Single parents I High divorce rate - about 50% lead to this Single parents II Child out of wedlock Single parents III Single person who adopts Extended family Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws. As you can see from this table, there are many more types of family households than described in the traditional life cycle. In addition to the ones here, there are many nonfamily households not described in the traditional family life cycle. November 27, 2018 Chapter Ten Slide