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Chapter 12: Consumer Diversity
1
CHAPTER 12
Consumer Diversity
CHAPTER SUMMARY
Six major aspects of consumer diversity have important effects on consumer behavior: age;
gender; sexual orientation; and regional, ethnic, and religious differences. Age is a key factor
because people of the same age have similar life experiences, needs, symbols, and
memories that may lead to similar consumption patterns. Teens have significant spending
power and influence family purchasing, as well. Generation Y consists of consumers in their
twenties. Consumers who make up Generation X were born between 1965 and 1976. Baby
boomers, born 1946 to 1964, are the largest age category in the United States. Seniors in the
50 and older segment can be divided into two groups: the young again and the gray market,
neither of which wants to be thought of as old.
Gender differences also affect consumer behavior. Sex roles are changing as more women
delay marriage, become financially independent, and build careers; men are learning to
become more sensitive and caring. Men and women also differ in terms of consumer traits,
information-processing styles, decision-making styles, and consumption patterns. In addition,
more marketers are using sexual orientation to target gay and lesbian consumers for various
goods and services.
Consumption patterns may differ in various regions of the United States and the world, leading
some marketers to tailor strategies specifically to these regions. Clustering helps marketers
describe consumers in different regions based on similar demographic and consumption
characteristics rather than by geographic location only.
The three largest U.S. ethnic groups are African Americans, Hispanic Americans, and Asian
Americans. Changing population trends require marketers to target carefully and understand
the consumer behavior of each group. Many marketers are taking a multicultural approach,
trying to appeal to several subcultures instead of just one. Marketers who want to sell in other
countries must also be familiar with important ethnic groups in other areas.
Finally, religious values and customs can influence consumer behavior and form the basis of
marketing strategies.
CHAPTER LEARNING OBJECTIVES
At the end of this chapter, students will be able to:
1. Explain how the consumer’s age affects acquisition, consumption, and disposition
behavior, and why marketers need to consider age influences when planning marketing
activities.
2. Describe how gender and sexual orientation each affects consumer behavior and how
companies can create more effective marketing by understanding these influences.
3. Discuss how regional influences, both within the United States and across the world, can
affect consumer behavior and why marketers must consider these influences for targeting
purposes.
4. Highlight the effect of ethnic and religious influences on consumer behavior and the
marketing implications for marketers.
Chapter 12: Consumer Diversity
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CHAPTER OUTLINE
I. How Age Affects Consumer Behavior
A. Age Trends in the United States
1. Median age of U.S. consumers is at an all-time high of 36.4.
2. 4 groups: teens/millennial/Gen Y, Gen X, baby boomers, seniors.
B. Teens and Millennials (Generation Y)
1. The transition from childhood to adulthood makes the teen years a time of
immense change.
2. Teens have considerable influence in household decision-making and enjoy a
great deal of financial independence. High value on price and convenience.
3. More similar to teenage counterparts in other parts of the world sharing many
similar characteristics and attitudes to those in other countries
4. Generation Y is composed of teens and 20-something consumers born from
1980 through 1994.
a) Generation Y is media and tech savvy.
5. Marketing Implications
a) Very large and fast-growing market segment; they are media and tech-
savvy.
b) Brand loyalties started in teen years may be carried into adulthood.
c) Brands can be positioned as helpful for dealing with adolescent
pressures.
d) Advertising messages often incorporate symbols, issues, and language to
which teens can relate.
e) Other types of promotion include electronic communication centers and
fast-foods in school cafeterias.
f) Other ways to reach Generation Y is through recreation or special events.
C. Generation X
1. Generation X is composed of those who were born between 1965 and 1979
(49 million are in this group).
2. While some feeling of angst among the underachievers of this generation,
many have begun building careers, having families and buying homes.
3. Believe they will not match parents’ level of success
4. Boomerang kids are the Xers who live at home and have more discretionary
income.
5. Marketing Implications
a) High spending power
b) Key segment in the music, movies, budget travel, beer and alcohol, fast-
food, clothing, jeans, athletic shoes, and cosmetics categories
c) Xers tend to be cynical about obvious marketing techniques
d) Can be reached through the Internet as Xers watch less television
e) Targeted sales promotions can be effective.
D. Boomers
1. Largest demographic group in the United States with 78 million members
2. Born between 1946 and 1964
3. Created a revolution in social attitudes, music, fashion, and politics
4. Sub segments of consumers exist within this very large and diverse group.
a) The oldest and youngest groups are the most different as they have less
in common.
5. Marketing Implications
Chapter 12: Consumer Diversity
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a) As Baby Boomers have so much buying power, they are the target for
many products including cars, housing, travel, entertainment, recreational
equipment, and motor homes.
b) Baby Boomers are heavy consumers of financial services.
c) Some companies have profited by developing special products for aging
baby boomers.
E. Seniors
1. The gray market consists of consumers over 65.
2. Women outnumber men in this age category as women tend to live longer.
3. Information-processing skills tend to decrease over time; therefore, mature
consumers are less likely to seek out information.
4. Have difficulty making complex decisions and processing large amounts of
information
5. Marketing Implications
a) Seniors represent a critical and growing market for health-related and
medical products and services.
b) Marketers can target boomers through the use of media geared to this
group’s interests, including oldies rock and roll, radio and TV programs,
and activity-specific publications and TV shows.
c) Models in ads for seniors should represent active, contributing members
of society.
d) Retailers can design their stores to provide a more age-friendly shopping
environment for both boomers and seniors.
II. How Gender and Sexual Orientation Affect Consumer Behavior
A. Sex Roles
1. In most cultures men and women are expected to behave in-line with sex roles.
2. Sex roles in the U.S. are changing.
a) Traditionally men were guided by agentic goals and women were guided
by communal goals
b) More women are working and delaying both marriage and having
children.
c) More men are helping with the household and raising children.
3. Traditional sex roles are also changing in conservative, male-dominated
countries.
B. Gender and Sexual Orientation
1. Gender refers to a biological state (male or female).
2. Sexual orientation reflects a person’s preference toward certain gender
behaviors.
3. Masculine individuals (either male or female) tend to display male-oriented
traits, while feminine individuals tend to display female-oriented traits.
4. Androgynous means having both male and female traits.
C. Differences in Acquisition and Consumption Behaviors
1. Women are more likely to engage in thorough examination of a message and
make extended decisions based on product attributes.
2. Males are selective information processors.
3. Males are more sensitive to personally relevant information.
4. Women pay attention to personally relevant information as well as information
relevant to others.
5. Women are more likely to engage in compensatory eating—making up for
deficiencies such as lack of social contact or depression by eating.
D. Marketing Implications
Chapter 12: Consumer Diversity
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b) Levels of Acculturation
(1) Acculturated
(a) Speak mostly English and have a high level of assimilation
(2) Bicultural
(a) Can function in English or Spanish
(3) Traditional
(a) Speak mostly Spanish
c) Degree of the intensity of ethnic identification affects consumption
patterns.
(1) Consumption patterns influenced by the consumer’s level of
acculturation and intensity of ethnic identification
(2) Among Hispanics, stronger ethnic identification leads to a higher
level of husband-dominant decisions.
2. Marketing Implications
a) The size, growth rate, and characteristics of the Hispanic subculture lead
to marketing opportunities.
b) Product Development
(1) Marketers are developing specific products to meet the needs and
preferences of Hispanic customers, such as cosmetics for darker
skins.
c) Media Targeting
(1) Since Hispanics tend to be concentrated in urban areas and share a
common language, they can be easily targeted through the use of
Spanish-language media; traditional newspapers now print Spanish
editions.
d) Advertising Messages
(1) Major companies are increasing their budgets for Hispanic
campaigns.
(2) The accommodation theory predicts that the more effort a source
puts into communicating with a group, the greater the reciprocation
by the group and the more positive its feelings.
e) Distribution
(1) Being more tailored toward the needs of Hispanic Americans with
Spanish-style markets, and a broad selection of Hispanic foods and
products.
A. African American Consumers
1. More than 39 million African Americans living in the U.S. with average median
age of 30 years (compared to 36.4 for general U.S. population)
2. African Americans represent a large and diverse group consisting of many sub
segments across different levels of income and education, occupations and
regions.
Marketing Implications
a) As African Americans’ buying power is increasing, marketers are devoting
more attention to this segment.
b) Product Development
(1) Specific cosmetic and clothing lines are being developed for African-
American consumers.
(2) Fast-food chains are adding menu items that appeal to African-
American consumers.
(3) Dolls are available with different shades of darker skin.
Chapter 12: Consumer Diversity
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c) Media Targeting
(1) Budgets for ad campaigns devoted to African Americans are
increasing.
(2) Most African-American consumers seek information from magazines
specifically aimed at them.
d) Advertising Messages
(1) An increasing number of spokespeople and models are African
American.
(2) Messages should take into account the unique values and
expectations of African Americans.
(3) Marketers must also be aware of the effect that African American
models and actors in ads may have on consumers outside the
targeted segment.
e) Distribution
(1) Marketers can adjust distribution strategies to appeal to African
Americans.
B. Asian American Consumers
1. Characteristics
a. Very diverse group originating from more than 29 countries.
b) Tend to place strong emphasis on family, tradition, and cooperation
c) Asian Americans are likely to conduct price comparisons over the
Internet.
d) Consumers in this group tend to save money, be highly educated, have
high computer literacy, and hold a higher percentage of professional and
managerial jobs than the general U.S. population.
2. Marketing Implications
a. Asian Americans have considerable economic power.
b. Product Development
(1) Marketers are increasingly offering products designed for Asian
Americans.
c. Media Targeting
(1) Through native-language newspapers
d. Advertising Messages
(1) Subtle messages that focus on tradition, the family, and cooperation
e. Promotions and Distribution
(1) Store decoration, bilingual employees and promotions, special
events.
C. Ethnic Groups Around the World
1. Ethnic subcultures exist in other counties as well as in the United States.
V. The Influence of Religion
A. Religion provides individuals with a set of beliefs and values that serve as a code of
conduct.
B. Binds people together to make groups different from others
C. Can prevent consumers from consuming certain products and services
D. Marketing Implications
1. Marketers can segment the market by focusing on religious affiliation, delivery,
targeted messages and promotions, or using certain media.
QUESTIONS FOR REVIEW AND DISCUSSION
Possible answers are as follows.
Chapter 12: Consumer Diversity
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Multicultural marketing is an effort to appeal to a variety of cultures at the same time.
8. Why do marketers have to consider regional influences when targeting consumers within
the United States or in another country?
9. Identify some of the ways in which religion can influence consumer behavior.
SUGGESTED EXERCISES AND TEACHER GUIDELINES
1. Pick a product or service category that individuals of all age groups consume. Conduct a
detailed research analysis of the marketing techniques used to attract the four
demographic segments discussed in this chapter in the following areas: (a) brands or
services offered, (b) package design, (c) advertising content, (d) media selection, (e)
sales promotion, and (f) distribution strategy. Collect this information via a library search,
a content analysis of advertising messages and media used, in-store visits, and
interviews with marketers. Then answer the following questions: (a) Which techniques
are used to market to multiple age groups. (b) Which techniques are used to appeal to
specific age groups? How do these techniques differ from age group to age group?
2. Conduct a detailed research analysis of the marketing techniques used to appeal to
males and females in the following areas: (a) brands or services offered, (b) package
design, (c) advertising content, (d) media selection, (e) sales promotion, and (f)
distribution strategy. Collect this information in the same manner as described in
Exercise 1 and then answer the following questions: (a) Which techniques are used to
market to both males and females? (b) Which specific techniques are used to appeal to
males? To females?
Chapter 12: Consumer Diversity
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2. Why is intensity of ethnic identification important to marketing strategy?
ADDITIONAL QUESTIONS
1. The U.S. culture has been described as one of both convenience and choice. Explain
how the availability and variability of goods and services has influenced the consumer
behavior of students compared to that of their older relatives.
2. Create a detailed list of the basic characteristics of the region where your school is
located. Describe how this region differs from other regions. Explain how these
differences could influence marketing strategy.
3. As a group, select three different countries (not including the U.S.) with which you are
familiar. Describe how these countries vary in terms of their consumption patterns.
Explain how knowing these patterns can help marketers in these countries.
4. Describe some of the major ethnic groups in the U.S. Outline the growth trends that are
expected for each of these groups, noting why some groups are growing faster than
others. Discuss how knowing about these trends can help marketers.
5. Discuss the major characteristics of each of the following ethnic groups in the U.S.: (1)
Hispanics, (2) African Americans, (3) Asian Americans. Explain how the characteristics of
each of these groups affect their consumption behaviors. Explain how ignoring these
characteristics can be risky for marketers.
6. Discuss what is meant by the phrases level of acculturation and intensity of ethnic
identification. Describe how these concepts influence consumer behavior and how
understanding them can influence marketing strategy.
7. Develop a list of the major religious subcultures in the U.S. Describe the conditions under
which marketers might want to reach these specific groups. Explain what methods would
be used to reach these groups.
8. A well-known roach-killing product works by burning it inside the home and fumigating
the bugs. The product sells very well in South America. The product is introduced in
South Asia but fails. Explain what differences between these two regions might explain
the failure. Consider both cultural and religious issues.
EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES
Students who learn more readily through visual and tactile stimuli will benefit from the
introduction of physical examples into the classroom.
Chapter 12: Consumer Diversity
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Consider bringing examples of marketing to regional, ethnic, and religious subcultures into the
1. “Let Mikey Try It” Exercise
Go to the grocery store and purchase a food product likely to be considered disgusting
demographic and cultural factors described in the text.
2. “Cultural Confusion” Exercise*
Divide the class into two groups, each of which represents a different culture: trade-
Trade-centered culture
Men are dominant in this culture.
Money talks; individuals from the other culture must begin and end all conversations with
representatives of this culture by saying aloud a type of currency (e.g., dollar, lira, franc,
etc.).
Women from the other culture are never allowed to talk to men in this culture; they may,
however, talk to women.
Members of the trade-centered culture who break the rules of the people-centered
culture are required to leave the room until other members of the culture sing “Happy
Birthday” three times.
People-centered culture
Women are dominant in this culture.
Conversations must begin with the person from the other culture touching a female on
the left shoulder and saying aloud the name of a fruit.
Conversations must end with the person from the other culture touching a female on the
right shoulder and saying aloud the name of a vegetable.
Men from the other culture are allowed to talk to women in this culture, but they may not
make eye contact.
These experiential exercises were contributed by Professor Sheri Bridges of Wake Forest University.
Chapter 12: Consumer Diversity
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Members of the people-centered culture who break the rules of the trade-centered
culture are required to leave the room until other members of the culture sing “For He’s a
Jolly Good Fellow” three times.
This exercise demonstrates the importance of learning about other cultures before
attempting to do business with them, and the awkwardness one can feel in the absence
of such learning.
CLASSROOM GROUP ACTIVITY: MARKETING TO SUBCULTURES:
40 MINUTES
I. Start Up
A. Purpose of the activity
1. This activity will give students an opportunity to consider development of a
marketing effort targeted at one of three ethnic subcultures in the U.S.
B. What the instructor will do
1. The instructor will divide people into small groups and be available to coach
and help the groups as needed.
2. Assign each group one of the three products and one of the three subculture
markets. This may be facilitated by writing each on an index card and having
students randomly draw one from each set. Products are (1) a telephone
company, (2) a vacation destination, or (3) a light beer. Subcultures are (a)
Asian Americans, (b) Hispanics, or (c) African Americans.
3. Optionally, groups may be provided with clear overhead transparencies and
markers so they can summarize their discussions and make presentations
after their analysis and discussion.
C. What the participants will do
1. The participants will work in small groups to outline their considerations for
marketing (1) a telephone company, (2) a vacation destination, or (3) a light
beer to either (a) Asian Americans, (b) Hispanics, or (c) African Americans.
After a period of small-group discussion, they will make reports to the larger
group.
D. Rules for this experience
1. Groups are to work separately from each other. Individuals should rely on their
knowledge from the book and may refer to their notes and the book as
necessary.
II. Experience
A. Group up.
1. Have students form groups of no more than five. This exercise will work in
groups of any size; however, room restrictions that do not allow for moving
furniture may make group work more difficult.
B. Specific actions for groups
1. The groups are responsible for developing a list of issues associated with
marketing their particular product for their particular group.
2. Optionally, groups can summarize their discussions on clear overhead
acetates to facilitate presentations after their analysis and discussion.
3. Questions to be answered by small groups
a) For the marketing of your product to the subculture you have selected,
what would be the major considerations for the following:
(1). Product development
(2). Media targeting
(3). Advertising messages
