BUS630: Consumer Behavior

9a. Explain the critical role that demographics play in influencing consumer behavior

• What are demographics?
• How can demographics be used in marketing?
• How do demographics help to understand consumer behavior?

The cultural influences that might affect marketing today include family, race, sex, generations, subcultures, and more. By understanding these differences and how to reach each of these markets, a marketing plan may be better defined.

For example, a marketer may wish to target homeowners in their 40s or 50s for a new type of storm drain. The marketer can use demographics such as age, homeowner status, and location to find these individuals and specifically create marketing for this population. A homeowner may be more likely than others to purchase products that are made for the home. By understanding demographics and how to use that information, a marketer can better understand consumer behavior for the products they are attempting to promote.

To review, see Culture Explained.

9b. Compare the nature of generations and develop an understanding of the generations in the United States

• What are the generations alive today?
• From a marketing standpoint, why is it important to understand the generations?
• Can you give an example of how generational information might be used in marketing?

For marketing purposes, the largest generations that are alive today include baby boomers, generation X, and millennials. By understanding the generations, a marketer may be better able to create promotions for these populations.

For example, most Baby Boomers are people in their 60s and 70s, and this generation is more likely to have disposable income than other generations. This generation may be more likely to take long vacations, buy a new house, retire, and take up a new hobby.

Generation X are in their 40s and 50s and are a much smaller generation than the Baby Boomers. This has resulted in quite a few open jobs as the Baby Boomers have reached retirement age, and the Generation X population does not have enough people to fill those open jobs. As a result, Generation X workers have had quite a bit of work available to them, and at higher salaries.

Millennials are in their 30s and early 40s. This is a large generation, and many have developed an attitude that quality of life is more important than working more hours. Millennials have less disposable income than the generations who came before them.

A marketer takes into consideration each of the generations and how their economic situation may influence their consumer behavior and spending. Each generation generally has its own characteristics, values, and beliefs about life and money. By understanding these different factors, a marketer can create more focused advertising and promote products or services specific to that generation.

To review, see Age and Generational Subcultures.

 

9c. Explain how our memberships in ethnic, racial, and religious subcultures often play a big role in guiding our consumption behaviors

• How do memberships or subcultures guide what purchases we make?
• What are memberships and subcultures in marketing?
• What is an example of making a purchase based on membership in a group?

Many consumers belong to ethnic, racial, and religious subcultures that may guide their purchasing decisions. When marketing for specific products or services, it is important to understand these different memberships or subcultures to better target advertising.

Someone who is religious and belongs to a specific religion may purchase products promoted by their church or religion. These items may include religious artifacts, texts, clothing, etc. By better understanding the subculture, a marketer can make specific promotions to that population. Gender and culture are other areas that should be considered when it comes to the consumption behaviors of consumers.

It may also be important to consider what products or services people of a specific subculture may not buy. This may be because it goes against their ethnic, racial, or religious beliefs. As a result, this type of marketing may need to be sensitive to the population.

To review, see Gender and Culture and The Seven Elements of Culture.

 

9d. Contrast the various ethnic and religious subcultures and the unique opportunities and challenges they present to marketers

• What is an example of an ethnic or religious subculture?
• Why might it be challenging for a marketer to advertise to people with an ethnic or religious subculture?
• What opportunities would a marketer have when advertising to people with an ethnic or religious subculture?

As mentioned in the previous unit, it is important to understand the various ethnic and religious subcultures to properly market to those populations. A subculture is a smaller section of a cultural society. There are numerous opportunities and challenges that a marketer will need to consider before developing an advertising campaign for an ethnic and religious subculture. By better understanding one of these memberships, a marketer may be able to develop a more focused marketing campaign.

One challenge might be understanding what products or services someone in that subculture may not want to buy based on their religion or ethnic culture. One opportunity is that someone in an ethnic or religious subculture may be the only population for certain products or services. With a better understanding of that subculture, a marketer can specifically target that market.

For example, in some religions, specific clothing must always be worn. People who belong to this religion may be the only consumers of those specific products, and promotion of those products may be conducted through religious services.

To review, see Gender and Culture and The Seven Elements of Culture.

 

Unit 9 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Baby Boomers
• cultural influences
• ethnic, racial, and religious subcultures
• generations
• Generation X
• Millennials
• subculture