Chapter 13

SUBCULTURE AND SOCIAL CLASS

AUTHORS' OVERVIEW OF THE CHAPTER

In this chapter, we discuss two aspects of the macro social environment--subculture and social class. Both subculture and social class are large groups or segments of people within a culture who share common values and goals, beliefs and attitudes, and norms and behavior patterns.

Subcultures. We define subculture as a distinctive group of people in a society that share common cultural meanings about affective and cognitive responses (feelings, attitudes and beliefs), behavior (customs, rituals, and behavior norms), and the environment (living conditions, geographic location, important objects). The demographic characteristic of the populations in most countries are continually shifting as the population ages, moves about, and becomes more or less prosperous. Thus, the relative sizes and prominence of various subcultures in society also change over time. In America, some of these shifts have been dramatic and have had major impacts on marketing.

We begin by identifying several subcultures in America (see Exhibit 13.1). Then, we discuss how subcultures can be analyzed at different levels. For instance, a marketer might identify a subculture of urban dwellers (in contrast to people who live in rural areas). We point out that there is great variation between people in the same subculture, and any subculture can be further differentiated on numerous levels, including values, lifestyles, ages, and sex. For example, the urban subculture can be further divided into racial/ethnic subgroups, and each of these subcultures could be divided into upper, middle, and lower classes. This process could continue until the subcultures were too small to be useful. Marketers have to identify the level of analysis that is most relevant to their problem.

Next, we discuss several different subcultures in the United States. Most of these subcultures could be found in other societies/countries. We discuss subcultures based on geographic location in the country and we describe a special subculture of people who live along the border between the U.S. and Mexico. Then we discuss three age subcultures--teens, baby boomers, and the mature market. We also discuss subcultures based on ethnic characteristics, including the black or African American, Hispanic, and Asian subcultures in the United States. We finish by briefly describing how marketers might treat gender (men and women) and income (downscale, middle income, and upscale) as subcultures.

We finish the subculture section by discussing the acculturation process by which people in one culture or subculture come to understand and adapt to the cultural meanings used in another culture or subculture. Consumer acculturation refers to how people acquire the ability and cultural knowledge to be a skilled consumer in a different culture or subculture. Acculturation is becoming very important around the world as many people immigrate to different cultures or move (emigrate) within their own country and have to deal with new subcultures. We discuss a model of acculturation that identifies four stages of acculturation: the honeymoon stage where everything about the new culture is new and fascinating, the rejection stage where people might reject the new culture, the tolerance stage where people begin to appreciate the cultural meanings of the new group, and integration where people adjust and adapt to the new culture. The concept of cultural interpenetration (the amount of social interaction a person has with members of the new culture) is important in explaining acculturation.

Social Class. In the last part of the chapter, we discuss social class and its influences on consumers. We begin by describing how a society can be divided into social classes. We present Richard Coleman's simple model of American social classes--upper, middle-class, working-class, and lower (see Exhibit 13.3). We point out that there is great variation between people in the same social class and they can be further differentiated on numerous levels, including values, lifestyles, ages, and race. Then, we discuss how income can be used to further segment social class, and we discuss the implications of over- and under-privileged consumers in a social class. We conclude with a brief discussion of the issues regarding using social class versus income as a basis for market segmentation.


KEY CONCEPTS AND ISSUES

· Subculture

· Types of subcultures including geographic location (Northeast, Southwest), age (teens, elderly), race (black, Caucasian, Oriental), ethnic origin (Hispanic, Polish, Jewish), gender, and income level

· Acculturation process

· Cultural interpenetration

· Social classes in American society

· Social class versus income as predictors of consumer purchase behavior

CHAPTER OUTLINE

Chapter 13. SUBCULTURE AND SOCIAL CLASS

A. Mountain Dew

B. Subcultures

C. Analyzing Subcultures

1. Geographic subcultures

a. Borderland regions

2. Age subcultures

a. The teen market

b. Baby boomers

c. The mature market

3. Ethnic subcultures

a. The black subculture

b. The Hispanic subculture

c. Asian subculture

4. Gender as a subculture

5. Income as a subculture

6. Acculturation processes

D. Social Class

1. Social class versus income

E. Back to ... Mountain Dew

F. Marketing Strategy in Action: Abercrombie & Fitch

TEACHING OBJECTIVES

After completing this chapter, students should be able to:

· define subculture.

· describe several types of subcultures in the U.S.

· discuss some marketing implications of subcultural analysis.

· describe the stages of acculturation.

· discuss the role of cultural interpenetration in acculturation.

· define social class, describe the various social classes in American society, and discuss their general characteristics.

· discuss using social class versus income to segment markets.

TEACHING IDEAS AND SUGGESTIONS

Overview. The material in this chapter is reasonably simple and straightforward. Rather than lecture from the text, class time could be spent discussing implications of these macro social influences for creating marketing strategies. You and/or your students could bring examples into class for discussion. Below we have provided several examples that could be the basis for in-class discussions.

In-Class Exercise: Subcultures in the U.S. Marketers also need to understand cultural factors in the domestic market. In most countries, for instance, several subcultures may be important. Even in cultures that appear to be quite homogeneous to outsiders (the Scandinavian countries come to mind or the Netherlands/Holland), contain distinct subcultures within the overall culture. These subcultural differences can be important for marketing many products.

n Ask student to identify as many subcultures as they can.

The text gives some examples of subcultures in Exhibit 13.1. Subcultures can be defined in terms of age, income, race, ethnic origin, geographic location, lifestyle, etc. Highlight 13.1 describes the gay subculture, which some companies have targeted as an important market segment for their products.

Once started, students should be able to identify many different subcultures. Some of them may be rather small and insignificant for most marketing purposes (workers at an auto assembly plant in Michigan; street gangs in Los Angeles).

Students should begin to realize that the key problem for marketers is not identifying possible subcultures. The main difficulty is identifying which subcultures are most relevant for their product and determining the appropriate level of analysis for understanding that subculture.

n For each subculture identified, ask students to consider some differences among people in that group. Students (and marketers) should realize that all the people in a major subculture are not alike. Here is a detailed example that you could describe in class.

For instance, consider the Hispanic market in the U.S. Hispanics come from many different cultural backgrounds. The majority of Hispanics come from Mexico (about 60 percent), but substantial numbers come from Puerto Rico, Cuba, and the countries of Central and South America. There are significant differences in these cultures, so making blanket statements about the Hispanic market is risky.

However, these different cultures have one thing in common--the Spanish language, a very important aspect of the Hispanic subculture. Marketers are paying more attention to the importance of Spanish. Fewer marketers are bungling translations such as Eastern Airline's slogan, "Fly first class in leather," that in Spanish became, "Fly first-class naked in your seat." Most ads are designed by copywriters who understand the Hispanic culture and use authentic Hispanic actors.

Although Hispanics share many values with the general American population, they have some unique perspectives. Many Hispanics tend to be interested in propriety and "keeping up appearances," and they prefer the known to the unfamiliar. These traits were once strongly associated with middle-class Americans. Families, especially extended families, are quite important in Hispanic culture. Researchers have found some evidence that Hispanics may be more brand loyal than consumers in other subcultures. These and other aspects of the Hispanic subculture must be studied and understood by marketers.

A final point: Hispanics in general seem to be less interested than other ethnic groups in participating in the melting pot vision of America (quickly integrating into the American culture). Many Hispanics have strong values for preserving their culture and their language. For these reasons, we can expect Hispanics to have a strong influence on the overall American culture and on marketing strategies. [Sources: Susan Hayward, "Understanding Hispanics: A Key to the Future, Marketing Research, June 1990, pp. 76-77; and Rick Marin, "3-1/2 Hours of 'Gigante' Advertising," Insight, July 17, 1989, pp. 60-61.]

In-Class Exercise: Effects of Marketing Strategies on Culture. A lively and interesting discussion can be generated on the important issue of how marketing strategies can influence culture meanings held by an entire country or a subculture. Many students will have opinions about whether marketing has an overall positive or negative impact on culture.

In the text we suggest that the effects of marketing strategies on culture can be significant, especially over longer time periods. Some of these effects may be judged to have positive impacts on society; while others might be considered negative.

n Ask students to discuss how marketing strategies have affected culture. This might be difficult for students at first. Perhaps you will have to "prime the pump" with an example or two.

Possible examples include the controversy surrounding Nestlé’s marketing of baby formula in Third World countries, or the somewhat less controversial export of American cultural tastes around the world, as in Levi's jeans or McDonald's and Kentucky Fried Chicken fast food. Highlight 12.5 in the previous chapter describes how American popular culture is diffused throughout the world.

n Challenge students to describe in more depth how marketing strategies may have influenced various aspects of a culture, including the beliefs, attitudes, and values of people; their patterns of behaviors; and their physical and social environments.

As an example, the Hallmark Card "case" (Marketing Strategy in Action, Chapter 7) illustrates how the aggregate marketing strategies for greeting cards, applied over many years, have created strong cultural meanings and values about using greeting cards in U.S. society. However, consumers in other societies/countries do not use greeting cards as much or in the same way as do American consumers.

Greeting cards and related attitudes, values, and behaviors are now an integral part of American culture. In fact, it is hard to imagine American culture without this product. For instance, some people feel slighted or insulted if they do not receive greeting cards on certain occasions during the year. Thus, cultural expectations have changed about what is appropriate behavior.

However, the entire cultural meaning of greeting cards cannot be attributed solely to the marketing strategies of Hallmark and the other major companies. Other entities in the culture have had a social influence, too--including families, media, educational institutions, etc. It is more realistic to say that these factors interacted with marketing strategies over time to mutually create the current cultural meanings of greeting cards.

Example: Important Changes in Demographics. Students should understand the importance of subcultures and the necessity of keeping up with demographic changes in these large consumer segments. Consider how marketers have tried to keep pace with the aging baby boomers.

The 77 million so-called baby boomers (Americans born between 1946 and 1964) have become middle-aged. This large group will continue to have a disproportionate effect on the culture and economy of the United States, probably even more than they did when they were teenagers and young adults. For instance, by 1997 the 35 to 50 age group increased by 26 percent over 1987 and earned an awesome $195 billion. This group became the nation’s biggest spenders. In contrast, the number of consumers in the 25 to 34 age group fell by 9 percent and dropped $67 billion in purchasing power.

Many marketers have not understood or appreciated middle-aged consumers. But they have become too large a market for most companies to ignore. Advertisers must learn how to appeal to these older and more mature consumers. The old approaches of portraying baby boomers as a young and energetic bunch of jeans-wearing, granola-eating, rock music-listening kids won’t work anymore.

The pervasive anxiety that many Americans have about growing older is a major impediment to creating attractive, imaginative advertising for the not-so-young. As one advertising executive put it, “Advertisers feel that youth is sexy and glamorous, old age is humorous, and middle age is dreary.” This had to change, and fast.

By the mid 1990s, many companies were getting the idea. For instance, Clinique Laboratories (marketer of cosmetics) stopped routinely retouching photos of its models to remove wrinkles. Quaker Oats replaced paunchy Wilford Brimley as brand spokesperson with “George,” a 60-something, balding model working out in a muscle T-shirt. Saks Fifth Avenue began using attractive, silver-haired models that were 50-plus, rather than the 20-year-olds that used to fill its catalogs. Levi Strauss is one company that has followed the baby boomers for three decades. It must continue to change with its market. To promote its popular Dockers line of casual slacks, it showed a group of 40-ish men sitting around and jokingly reminiscing about the good old days. The product was not mentioned until the conclusion. According to a Levi’s executive, “Real people don’t sit around and talk about the brand of clothes they’re wearing.” The pants were already a hit, but sales accelerated after these ads were shown. [Sources: Faye Rice, “Wooing Aging Baby-Boomers,” Fortune, February 1, 1988, pp. 67-77; Susan B. Garland, “Those Aging Boomers,” Business Week, May 20, 1991, pp. 106-112; Lisa Gubernick and Luisa Kroll, “Gray Hair is Cool,” Forbes, May 6, 1996, p. 116.]

Example: Developing Marketing Strategies to Meet the Health Care Needs of the Elderly. This example describes marketing strategies developed in response to demographic changes in the target market. This example is related to the chapter case, "Marketing Strategy in Action: Hyatt and Marriott Build Retirement Housing for the Elderly."