Arnould

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Economic and Social Segments
Chapter
12
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Objectives

• Explain the impact of social class, ethnicity,
  age, gender, and religion on consumption choices
• Understand the bases for ethnic segmentation and
  targeting.
• Recognize some of the key differences in consumer
  desires between class, ethnicity, gender, and age
  segments.
• Understand the difference between sex and gender
  and its relevance for marketing.

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Symbolic Capital

• Symbolic capital is how people compete for higher
  status, and includes
• Economic capital
• financial resources, including income
• Social capital
• relationships, organizational memberships and
  social networks that are often nurtured in
  schools, jobs, or neighborhoods
• Cultural capital
• implicit practical knowledge and skills, access
  to consumer goods and objects such as fine arts
  and heirlooms, degrees, diplomas, and memberships
  in clubs and associations that certify certain
  qualities to others.
• Symbolic capital is in part derived based on
  categorization schemes in society

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Economic and Social Structures
Arnould et al. slide
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Regions

• Poorest states
• WV, MS
• Richest states
• CT, NJ
• Most affluent city
• DC
• Study using geodemographics and lifestyle
  analysis, like Prizm and Microvision discussed in
  the lifestyle chapter

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Social Class

• Place one occupies in a social structure
• What creates social stratification?
• Ascribed
• Achieved
• What determines social class?

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What determines social class?

• Economic variables
• Occupation, income, wealth
• Interaction variables
• Personal prestige, association, socialization
  (education)
• Political variables
• Power, class consciousness, mobility
• Sometimes status inconsistencies occur

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Geography of Social Class

• One-fifth of the worlds richest population lives
  in Triad nations.
• Development of information economy has caused
  demographic shifts that have weakened residence
  as a predictor of class and resulted in pockets
  of affluence in America, Europe, and South Asia.
• Globalization is changing class structure,
  relationship between class and consumption, and
  widening the gap between haves and have-nots.

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Exhibit 12.2Class Structure by World Areas
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Consumption Patterns and Class-Based Segments

• Upward mobility
• Downward mobility
• Status float

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Consumption Patterns and Class-Based Segments

• Three main class-based segments in U.S.
• Upper Class
• Old Money
• Nouveau Riche
• Get Set
• Middle Class
• Working-Class and Under-Class

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Why Social Class is Important to Marketers

• Social class determines how much and on what
  money is spent (e.g., vacations)
• The higher the social class, the less the brand
  loyalty
• Two-tiered marketing is becoming increasingly
  more common
• differentiation of retail outlets, or product and
  service offerings into two groups, targeted at
  upper-class or lower-class consumers.

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Vacation Destination Choices
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Ethnicity

• Continuous immigration into the country affects
  culture
• Acculturation
• Felt Ethnicity
• Strength of identification with a particular
  ethnic group
• May be useful for forming market segments
  (multicultural marketing)
• Situational ethnicity
• When expressions of ethnicity vary with social
  context

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Ethnic Group Segments

• African-Americans in the U.S. number nearly 36
  million more than 13 may be considered
  affluent.
• Hispanic Americans are second largest minority
  group in the U.S. 40 million by 2010.
• Asian Americans comprise only 3.9 of total
  population, but are the fastest growing and most
  affluent minority group in the U.S.

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Targeting and Positioning Issues in
Multicultural Marketing

• Highly targeted media, native language
  advertising, and niche products and services are
  appropriate for less assimilated groups.
• Successful ethnic advertisement depends on appeal
  to ethnic affiliation.
• Understanding acculturation affects language
  choice in marketing.
• Ethical standards about how race/ethnicity are
  portrayed should be evaluated

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Black Memorabilia Advertising Collectibles

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Caste

• Caste
• A social category almost unique to South Asia,
  primarily India, secondarily Indonesia and Bali.
• Combines both hierarchical (vertical) and lateral
  (horizontal) systems of inequality.
• Membership associated with occupations, rights,
  and duties toward other castes, and castes have
  an explicit moral dimension.

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Age

• As we age, our needs change in unison with others
  in our age group
• Age cohorts share
• Common memories
• Nostalgic appeals
• Shared experiences
• Consumer socialization

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Gender

• Gender vs. biological sex
• Gender roles
• Masculine vs. feminine orientations
• Cultural conceptions of masculinity and
  femininity
• Felt Identity
• Gender-based needs, segmentation, targeting, and
  positioning
• Gender bending and blending

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Religion

• Religion
• Religiosity
• In U.S. 45 of Americans claim to worship at a
  religious meeting place at least once a week
  globally, this is 2nd only to Ireland.
• Religious segmentation may be salient where
  religion becomes an important component of
  symbolic capital and identity.

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Religion

• Source of enduring consumer values
• Source of consumption taboos

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Translating Got Milk for Latinos

• Did Manning draw the correct conclusion from the
  focus group results? Why or why not?
• What are some reasons the focus group results
  might not apply to the actual television-viewing
  situation?
• What additional research into bicultural teens
  could be done to develop campaign ideas
  appropriate to Hispanic teens of Mexican
  heritage?
• What are some aspects of Hispanic ethnicity that
  Manning may be neglecting in devising his initial
  campaign ideas?
• What are the pluses and minuses of the new La
  Llorona campaign?

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Key Points from Case