Culture & Demographics

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What is culture?

A set of beliefs and values shared by members of a group

What are the levels of culture?

National, local, institutional, subculture

What are instrumental values?

Preferred modes of behavior such as honesty and courage

What are terminal values?

Values concerned with preferred end states Signup and view all the answers

What are other-oriented values?

Reflect a society's view of the appropriate relationships between individuals and groups within that society Signup and view all the answers

What are environment-oriented values?

Prescribe a society's relationship to its economic, technical and physical environment Signup and view all the answers

What are self-oriented values?

Reflect the objectives and approaches to life that the individual members of society find desirable Signup and view all the answers

What is one aspect of demographics that influences marketing strategy?

Disposable income Signup and view all the answers

What is green marketing?

Developing products with a positive environmental impact Signup and view all the answers

What is greenwashing?

Promoting environmental benefits that are unsubstantiated and on which they don’t deliver Signup and view all the answers

What is woke-washing?

Using social or political issues as marketing tools without actually making significant efforts to address them Signup and view all the answers

What are sex-typed traits?

Characteristics stereotypically associated with one gender Signup and view all the answers

What are sex-typed products?

Products that reflect stereotypical masculine or feminine attributes Signup and view all the answers

What are the three components used to describe a population's demographics?

Size, distribution, and structure Signup and view all the answers

What is a generation or age cohort?

A group of persons who have experienced a common social, political, historical, and economic environment Signup and view all the answers

What is cohort analysis?

Explaining the attitudes, values, and behaviors of an age group and predicting its future attitudes, values, and behaviors Signup and view all the answers

What is the age range for baby boomers?

Between 1946-1964 Signup and view all the answers

What is the main marketing consideration for targeting baby boomers?

Defining retirement differently Signup and view all the answers

What events shaped the generation X (baby busters)?

End of the Cold War, 1980s recession, introduction of home computer, rise of videogames, AIDS epidemic, MTV generation Signup and view all the answers

What percentage of the population do millennials account for in some countries?

Poland 28%, Italy 19% Signup and view all the answers

What is the key concern for generation Z?

Individuality Signup and view all the answers

What is social stratification?

The allocation of resources based on relative standing, power, or control in the group Signup and view all the answers

What is status hierarchy?

One's position relative to others on dimensions valued by society Signup and view all the answers

What is the income pyramid?

A pyramid-shaped representation of the distribution of purchasing power across income levels Signup and view all the answers

What is income-based marketing?

A marketing strategy centered around a consumer's intention and ability to purchase Signup and view all the answers

What is the Hollingshead Index of Social Position?

A multi-item index measuring social class based on education, occupation, and income Signup and view all the answers

What is the significance of status symbols and conspicuous consumption?

They are factors that motivate behavior Signup and view all the answers

Study Notes

Overview of Social Stratification and Consumer Behavior

Social stratification creates artificial divisions among people based on relative standing, power, or control in the group, resulting in some members getting more resources than others.
Allocations of resources may be based on merit or circumstantial factors like family connections, leading to achieved or ascribed status.
Status hierarchy refers to one's position relative to others on one or more dimensions valued by society, while the social class system is a hierarchical division of a society into relatively distinct and homogeneous groups.
Social mobility refers to the passage of individuals from one social class to another, such as horizontal, upward, or downward mobility.
Perception of social mobility can motivate or demotivate behavior, as shown in studies.
Income-based marketing involves developing a marketing strategy centered around a consumer's intention and ability to purchase, with two factors contributing to an overall upward income trajectory being shifts in women's roles and increases in educational attainment.
The income pyramid shows that affluent consumers account for a smaller share of the overall market, while low-income consumers make up 78% of the global population with purchasing power under $10,000 per year.
The 4 As (affordability, availability, awareness, and acceptability) can address the bottom of the pyramid, as shown in examples like a fridge designed in India that reduced energy consumption and reducing package size.
Upper classes are willing and able to pay for products and services that enhance the quality of their lives and are symbolic of their status, exemplified by status symbols like conspicuous consumption and brand prominence.
Measurement of social class can be done through single-item indexes like education, occupation, and income or multi-item indexes like the Hollingshead Index of Social Position, with the latter providing a more holistic measure.
Overall, an individual's social status influences several dimensions of their behavior, including consumption behavior, with status symbols and conspicuous consumption being significant factors.
Therefore, understanding social stratification and its impact on consumer behavior is crucial for marketers to develop effective marketing strategies that resonate with their target audience.