Hawkins/Mothersbaugh CB 10th Edition

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5
CHAPTER
THE CHANGING AMERICAN SOCIETY SUBCULTURES
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The Nature of Subcultures
A subculture is a segment of a larger culture
whose members share distinguishing values and
patterns of behavior.
Identification with a Subculture Produces Unique
Market Behaviors
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Ethnic Subcultures

• African Americans
• Hispanics
• Asian Americans
• Native Americans
• Asian-Indian Americans
• Arab Americans

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Ethnic Subcultures
Ethnic subcultures are those subcultures whose
members unique shared behaviors are based on a
common racial, language, or nationality
background.
Major Ethnic Subcultures in the US 2005-2020
May be of any race. Source Table 10 Resident
Population, Statistical Abstract of the United
States (Washington DC U.S. Bureau of Census,
2001), p.13.
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African Americans
Demographics

• Buying Power
• This group represents 723 billion in buying
  power and is expected to grow by more than 30
  over the next five years.
• On average, African Americans are younger than
  the white population and tend to have less
  education and lower household income levels.
• However, stereotyping this segment as being of
  lower income would not be accurate. Almost 1/3
  of black household incomes are above the median
  level for whites.

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African Americans
A Closer Look at the Marketing Aspects of this
Segment

• Consumer Groups
• Market Leaders tend to set trends. They have the
  incomes and want to have the latest and
  greatest. They see brands as communicating
  their unique identity, are less price sensitive,
  and more brand loyal.
• Market Followers tend to follow trends. They do
  not have the need to be seen as hip and cool.
  This group often has financial constraints,
  making them more conservative, more price
  sensitive, and less brand loyal.

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Hispanic Americans
Demographics

• Buying Power
• Although the average Hispanic household income is
  relatively low, the purchase power of the
  Hispanic market is estimated at 686 billion and
  is expected to grow by 45 over the next five
  years.
• Income, education, language, and identification
  with Hispanic culture change across generations.
• Given that over 40 of growth in the Hispanic
  population is attributable to immigration, the
  level of acculturation plays a major role in the
  attitudes and behaviors of Hispanic consumers.

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Hispanic Americans
A Closer Look at the Marketing Aspects of this
Segment
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Hispanic Americans
A Closer Look at the Marketing Aspects of this
Segment

• Consumer Groups
• Generational groups also exist which drive
  differences in language, national identity, and
  values.
• First Generation
• Second Generation
• Third () Generation
• Increased acculturation, use of English, and a
  move away from traditional values accompany the
  move from first to third generation.

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Asian Americans
Demographics

• Buying Power
• Asian Americans are the highest educated and the
  highest income group.
• The estimated purchase power is 363 billion and
  is expected to grow by 45 over the next five
  years.
• This group is also the most diverse group, with
  numerous nationalities, languages, and religions.
  

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Asian Americans
A Closer Look at the Marketing Aspects of this
Segment
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Native Americans
Demographics

• Buying Power
• There are approximately 550 Native American
  tribes, each with its own language and
  traditions. Many of the tribes have reservations
  and quasi-independent political status.
• In general, Native Americans have limited
  incomes, but this varies widely by tribe. The
  overall buying power of this group is estimated
  at 47.7 billion and is expected to grow by 38
  in the next five years.

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Native Americans
A Closer Look at the Marketing Aspects of this
Segment

• Consumer Groups
• In recent years, native Americans have taken
  increased pride in their heritage and are less
  tolerant of inaccurate stereotypes of either
  their history or their current status.
• Marketers using Native American names or
  portrayals must ensure accurate and appropriate
  use.

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Asian-Indian Americans
Demographics

• Buying Power
• As a group, they are well educated, affluent, and
  fluent in English yet most retain cultural ties
  to their Indian background.
• In some ways India is more like Europe than
  America, relative to territories and languages,
  explaining the diversity among the members of
  this group.

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Asian-Indian Americans
A Closer Look at the Marketing Aspects of this
Segment

• Consumer Groups
• While diverse in many ways, most Asian-Indian
  Americans share many cultural traits, including
• placing a high value on education, particularly
  their childrens education, and
• husbands playing a dominant role in making many
  of the family decisions.

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Arab Americans
Demographics

• Buying Power
• This group is somewhat younger then the general
  population, better educated, and have a higher
  than average income.
• Since WWII, many Arab immigrants have been
  business proprietors, landowners, or influential
  families fleeing from political turmoil in their
  home countries.

1 Population estimate by the Arab American
Institute.
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Arab Americans
A Closer Look at the Marketing Aspects of this
Segment

• Consumer Groups
• More than 80 of Arab American are U.S. citizens,
  and approximately 75 were born in the U.S.
• Most Arab Americans are tired of negative
  stereotyping and misrepresentations about their
  culture.
• Sixty percent of Arab Americans identify
  themselves as Christians 24 identify themselves
  as Muslims.

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Religious Subcultures

• America is basically a secular society. That is,
  the educational system, government, and political
  process are not controlled by a religious group,
  and most peoples daily behaviors are not guided
  by strict religious guidelines.
• However, there are a number of religious
  subcultures in America. Religion is important,
  and directly influences the behaviors of, many
  American. This includes consuming
  religiously-themed products and avoiding the
  consumption of other products, such as alcohol.

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Understanding American Generations
Christian Subcultures

• - Roman Catholic
• - Protestant
• - Born-Again Christian

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Understanding American Generations
Non-Christian Subcultures

• - Jewish
• - Muslim
• - Buddhist

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Regional Subcultures

• Regional subcultures arise as a result of the
  following
• - climate conditions
• - natural environment and resources
• - characteristics of the various immigrant
  groups that
• have settled in each region, and
• - signification social and political events.