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  2. The Nature of Subcultures A subcultureis a segment of a larger culture whose members share distinguishing values and patterns of behavior. Identification with a Subculture Produces Unique Market Behaviors 5-2

  3. Ethnic Subcultures • African Americans • Hispanics • Asian Americans • Native Americans • Asian-Indian Americans • Arab Americans 5-3

  4. Ethnic Subcultures Ethnic subcultures are those subcultures whose members’ unique shared behaviors are based on a common racial, language, or nationality background. Major Ethnic Subcultures in the US 2010-2030 5-4

  5. Ethnic Subcultures Ethnic Subcultures and Consumption 5-5

  6. African Americans Demographics • Buying Power • This group represents $799 billion in buying power and is expected to grow by more than 30% over the next five years. • On average, African Americans are younger than the white population and tend to have less education and lower household income levels, but differences continue to decrease as a function of education. • However, stereotyping this segment as being of lower income would not be accurate. Almost 1/3 of black household incomes >$50,000. 5-6

  7. African Americans A Closer Look at the Marketing Aspects of this Segment • Consumer Groups • Market Leaders tend to set trends. They have the incomes and want to have the “latest and greatest.” They see brands as communicating their unique identity, are less price sensitive, and more brand loyal. • Market Followers tend to follow trends. They do not have the need to be seen as “hip and cool.” This group often has financial constraints, making them more conservative, more price sensitive, and less brand loyal. 5-7

  8. Hispanic Americans Demographics • Buying Power • Although the average Hispanic household income is relatively low, the purchase power of the Hispanic market is estimated at $798 billion and is expected to grow by 50% by 2011. • Income, education, language, and identification with Hispanic culture change across generations. • Given that over 40% of growth in the Hispanic population is attributable to immigration, the level of acculturation plays a major role in the attitudes and behaviors of Hispanic consumers. 5-8

  9. Hispanic Americans A Closer Look at the Marketing Aspects of this Segment 5-9

  10. Hispanic Americans A Closer Look at the Marketing Aspects of this Segment • Consumer Groups • Generational groups also exist which drive differences in language, national identity, and values. • First Generation • Second Generation • Third (+) Generation • Hispanic teens are often bicultural—acculturating by adding a second culture; not replacing their first culture. 5-10

  11. Applications in Consumer Behavior Maybelline's Garnier uses Spanish-language ads to target the Hispanic market. Courtesy Maybelline New York *Garnier. 5-11

  12. Asian Americans Demographics • Buying Power • Asian Americans are the highest educated and the highest income group. • The estimated purchase power is $427 billion and is expected to grow by 46% by 2011. • This group is also the most diverse group, with numerous nationalities, languages, and religions. 5-12

  13. Asian Americans A Closer Look at the Marketing Aspects of this Segment 5-13

  14. Native Americans Demographics • Buying Power • There are approximately 550 Native American tribes, each with its own language and traditions. Many of the tribes have reservations and quasi-independent political status. • In general, Native Americans have limited incomes, but this varies widely by tribe. The overall buying power of this group is estimated at $54 billion and is expected to grow by 35% by 2011. 5-14

  15. Native Americans A Closer Look at the Marketing Aspects of this Segment • Consumer Groups • In recent years, native Americans have taken increased pride in their heritage and are less tolerant of inaccurate stereotypes of either their history or their current status. • Marketers using Native American names or portrayals must ensure accurate and appropriate use. 5-15

  16. Asian-Indian Americans Demographics • Buying Power • As a group, they are well educated, affluent, and fluent in English; yet most retain cultural ties to their Indian background. • In some ways India is more like Europe than America, relative to territories and languages, explaining the diversity among the members of this group. 5-16

  17. Asian-Indian Americans A Closer Look at the Marketing Aspects of this Segment • Consumer Groups • While diverse in many ways, most Asian-Indian Americans share many cultural traits, including: • placing a high value on education, particularly their children’s education, and • husbands playing a dominant role in making many of the family decisions. 5-17

  18. Arab Americans Demographics • Buying Power • This group is somewhat younger then the general population, better educated, and have a higher than average income. • Since WWII, many Arab immigrants have been business proprietors, landowners, or influential families fleeing from political turmoil in their home countries. 1 Population estimate by the Arab American Institute. 5-18

  19. Arab Americans A Closer Look at the Marketing Aspects of this Segment • Consumer Groups • More than 80% of Arab American are U.S. citizens, and approximately 75% were born in the U.S. • Most Arab Americans are tired of negative stereotyping and misrepresentations about their culture. • 66% of Arab Americans identify themselves as Christians; 24% identify themselves as Muslims. 5-19

  20. Religious Subcultures • America is basically a secular society. That is, the educational system, government, and political process are not controlled by a religious group, and most people’s daily behaviors are not guided by strict religious guidelines. • However, there are a number of religious subcultures in America. Religion is important, and directly influences the behaviors of, many American. This includes consuming religiously-themed products and avoiding the consumption of other products, such as alcohol. 5-20

  21. Understanding American Generations Christian Subcultures - Roman Catholic - Protestant - Born-Again Christian 5-21

  22. Understanding American Generations Non-Christian Subcultures - Jewish - Muslim - Buddhist 5-22

  23. Regional Subcultures Regional subcultures arise as a result of the following: - climate conditions - natural environment and resources - characteristics of the various immigrant groups that have settled in each region, and - signification social and political events. 5-23

  24. Regional Subcultures Regional Consumption Differences 5-24