Chapter 4

 

CHAPTER

4

THE CHANGING AMERICAN SOCIETY: DEMOGRAPHICS AND SOCIAL STRATIFICATION

4-1

 

Demographics describe a population in terms of its size, distribution, distributio n, and structure.  P opul opula ation

and S ize  Occupation  Education  Income  A g e

Generations  P r e-Depression  Depression oom m  B aby B oo  G ene enerat ration ion X   G ene enerat ration ion Y   Tweens

 S oc ocii al S tratif tratifii c at atii on

 

Demographics and Social Stratification Demographics

opulati on P opul

and and S i ze

Occupation Education Income  A g e

4-3

 

Demographics and Social Stratification Occupa Oc cupattiona ionall Influen Influences ces on C ons umpt umption ion

4-5

45  

Demographics and Social Stratification E ducat ducati on Level Level Influences Influences on C ons umpt umptii on

46  

Demographics and Social Stratification Demographics Income Enables

them.

purchase but does not generally cause or explain

Subjective

discretionary income (SDI) is an estimate by the consumer of how much money he or she has available

to spend on nonessentials.

1“Resident

Population Projections by Sex and Age: 2010 to 2050 ,” Statistical Abstract of the United States 2008 (Washington, DC: U.S. Bureau of the Census, 200 8), Table 10.

47  

Demographics and Social Stratification Demographics  A g e 1

U.S. Age Distribution Key Growth Categories

1“Resident

Population Projections by Sex and Age: 2010 to 2050 ,” Statistical Abstract of the United States 2008 (Washington, DC: U.S. Bureau of the Census, 200 8), Table 10.

4-8  

Demographics and Social Stratification  A g e I nfluenc nf luences es on Con C onss umption umpti on 18-24

25-34

35-44

45-54

55-64

65+

4-9  

Understanding American American Generations  A Generation or ag e cohort is a group of persons who have experienced a common social, political, historical, and economic environment.

C ohort anal nalys i s is the process of describing and explaining the attitudes, values and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.

4-10  

Understanding American American Generations P r e-Depression Depression B aby

Mature Market

B oom

neratti on G enera

X 

G enera neratti on

Y 

Tweens

4-11  

Understanding American American Generations How to Target the Mature Market Gerontographics has identified the following four segments of the mature market: - Healthy Indulgers - Ailing Outgoers - Health Hermits - Frail Recluses

4-12  

Understanding American American Generations B aby B oom oom G enera nerattion: A C los er L ook  ook  Compared

to prior generations, Boomers are:



Higher income, higher education More tech savvy Defining 

retirement differently

Boomers also are: Strong market for “anti“anti-aging” products, travel, and financial services Often

alienated by overly “youth oriented” appeals in ads

4-13  

Understanding American American Generations G enera nerattion Xers Xers : A C lose os er L ook  ook  Beyond

the stereotype:

Stereotype Stereotype –  –

eallity R ea

Xers as disenfranchised youth

1 – Xers are more highly educated than previous

generations

eallity R ea Xer men

eallity R ea

2 – Xer women are more highly educated than 3 – Xers are getting married, having families and

facing the time pressures associated with these events

eallity R ea

4 – Reaching Xers requires special attention to

media, particularly online

4-14  

Understanding American American Generations G enera nerattion Y ers : A C los er Loo L ook  k  Interesting Really

Facts About Gen Y: Two Sub-Markets: Older teens & young adults

Expected

to have the highest education of previous generations with incomes to follow

Very

tech savvy with media options including Internet, cell

phones, and video games  A strong market for automobiles with brands like Toyota creating edgy and affordable models such as the Scion to target them

4-15  

Social Stratification  S oci oc i al

R ank and S oci oc i al C las las s S y s tem tem

tatus  S tatus

C r y s tali talizat zatii on

The

Deri ved Nat Derived Nature of S ocia oci al C las s

The e Th

C olem olema an-R ainwa inwatter Hi H i er ar chy 

The

Meass ure Mea ur ement of S ocia oci al C las s

oc i al  S oci

S tra tr ati tifi ficc ati tion on and and Mar Mar k eti eti ng S tra tr ateg y 

4-16  

Social Stratification We are all familiar with the concept of social class, but most of us would have difficulty explaining our class system to a foreigner.

 S oci oc i al r ank  is one’s position relative to others on one or more dimensions valued by society, also referred to as social class and social standing .  A s oci oc i al c las las s s y s tem is a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles

4-17  

Social Stratification Status dimensions, dimensions, such as parental status, education, occupation and income, set limits on one’s lifestyle, including one’s residence.

 S tatus tatus c r y s tall tallii zati zati on , which is moderate moderate in the the U.S., U.S., reflects the consistency of these status dimensions.

4-18  

Social Structure in the United States  S oc ocii al S ta tandi nding ng i s D er erii v ed and In Influen fluencc es B ehavi ehavior  or 

4-19  

Social Structure in the United States The Th e C ole olema man n-R ainwa inwatter S ocia ociall C las s Hi Hie era rarc rchy  hy 

4-20  

Social Structure in the United States The Th eC Cole olema man n-R ainwa inwatter S ocia ociall C las s Hie Hi era rarc rchy  hy 

4-21  

Social Structure in the United States Middle Americans Upward Upwa rd P ull ull S trateg rateg y 

4-22  

The Measurement of Social Class There are two basic approaches to measuring social status:

- S i ng le-i tem index  - Multi -i tem index 

Since an individual’s overall status is influenced by several dimensions, single-item indexes are generally less accurate than are well-developed multi -item indexes. indexes.

4-23  

The Measurement of Social Class •  S i ng le-I tem Index   Education  Occupation  Income •

Marketers think ofbehavior these as rather direct than influencersgenerally of consumption determinants of status that then influence infl uence behavior.

4-24  

The Measurement of Social Class

 Mult lti  i -I tem I ndex  •  Mu Hollingshead Index

Index of Social Position

of Social Position (ISP)

4-25  

The Measurement of Social Class Demographics or Social Status? Social status is largely derived from demographics demographics;; that is, one’s income, education, and occupation go a long way toward determining one's social class or status. Should marketers use an overall measure of social status demographic variable variable such as (a multi-item index) or a demographic  income? Unless the marketer is interested in social standing per se, he/she will most likely focus on demographic characteristics characteristic s as direct influencers on consumer behavior!

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Social Stratification and Marketing Strategy While social stratification does not explain all consumption behaviors,, it is certainly relevant for some product behaviors categories. You

can clearly see this by visiting a furniture store in a working-class neighborhood and then an upper-class furniture store.  A product

or brand may have dif different ferent meaning meanings s to members of different social strata, for example, a watch. Likewise,

different purchase motivations for the same

product may exist between social strata.