CH4 Flashcards
What are demographics, and how do they influence consumer behavior?
Demographics describe a population in terms of its size, distribution, and structure. They influence consumer behavior both directly and by affecting individual attributes like personal values, decision-making styles, and preferences.
What is the role of population size and distribution in consumer behavior?
Population size and distribution affect where demand for certain products and services is concentrated. For example, states like Texas and Florida have experienced higher population growth, influencing local consumption patterns and the demand for products and services tailored to these growing areas.
How does education influence consumer behavior?
Education impacts both income and occupation, which affect purchasing power. Educated individuals often have different tastes, preferences, and decision-making processes. Higher education can also influence how people view and engage with certain products, services, and brands.
How does subjective discretionary income (SDI) affect consumer decisions?
SDI refers to the consumer’s perception of how much money they have available to spend on nonessential items. SDI can predict purchasing behavior even more accurately than actual income because it reflects personal financial perceptions and priorities.
How does cognitive age differ from chronological age, and why is it important for marketers?
Cognitive age refers to how old individuals feel, look, and behave, rather than their actual chronological age. For marketers, cognitive age is often more important than chronological age, as people may make purchasing decisions based on how old they feel, influencing product preferences.
What is the definition of a generation, and why are generational cohorts important in marketing?
A generation, or age cohort, is a group of individuals who have experienced a shared social, political, historical, and economic environment. These shared experiences lead to unique values, behaviors, and consumption patterns, making them distinct market segments that can be targeted by marketers.
What is cohort analysis, and why is it useful for marketers?
Cohort analysis is the process of describing and explaining the attitudes, values, and behaviors of an age group and predicting its future behaviors. It helps marketers understand how different generations behave, which is crucial for creating targeted marketing strategies that resonate with each group.
What are some of the unique behaviors of the Pre-Depression Generation?
The Pre-Depression Generation (born before 1930) is characterized by a conservative outlook, with a strong focus on financial and personal security. This group is generally less active in online shopping, though assisted-living services and health-related products are of increasing importance as they age.
What is the Depression Generation, and what are their key consumer behaviors?
The Depression Generation (born 1930-1945) grew up during the Great Depression and World War II. Many are retired with substantial wealth, making them a key market for upscale children’s products and services. Despite being older, they are becoming more tech-savvy, with a growing presence online for travel and health-related purchases.
What characterizes the Baby Boomer Generation, and how do they impact the market?
The Baby Boomer Generation (born 1946-1964) represents a large, economically influential group that grew up during prosperous times. Boomers are more self-centered, individualistic, and tech-savvy compared to previous generations. They seek active, luxurious, and health-conscious lifestyles, making them prime targets for high-end products and services.
What is a generation, and how does it relate to consumer behavior?
A generation is a group of people who experience similar social, political, historical, and economic events during their lifetime. These shared experiences influence their attitudes, values, and behaviors, which in turn can make them distinct market segments.
Describe the general characteristics of Generation X.
Born between 1965 and 1976, Generation X is smaller than previous generations and grew up during difficult economic times. Many were raised in dual-career or single-parent households, leading them to have a broad view of family. They are entrepreneurial, skeptical of authority, and place value on work-life balance.
What is a key characteristic of Generation Y (Millennials)?
Born between 1977 and 1994, Generation Y is known for its independence, strong sense of individuality, and technological immersion. They are highly diverse, value authenticity, and are tech-savvy. Many in this group are delaying marriage, embracing alternative lifestyles, and are less brand loyal than previous generations.
What makes Generation Z unique in terms of technology?
Born between 1995 and 2009, Generation Z is the first true “digital native” generation, having grown up with smartphones, the Internet, and constant connectivity. They value privacy, authenticity, and are more selective with social media platforms.
How is Generation Alpha different from previous generations in terms of technology?
Generation Alpha, born starting in 2010, is the most tech-savvy generation yet. They are introduced to smartphones and tablets at a much earlier age and are expected to be highly integrated with technology from the start of their lives.
What is social stratification?
Social stratification refers to the hierarchical ranking of individuals or groups in society based on factors such as income, education, occupation, and heritage, creating different levels or “classes” within a society.
What are the key factors that determine an individual’s social standing?
An individual’s social standing is influenced by factors such as education, occupation, income level, property ownership, and heritage (including racial or ethnic background and parents’ status).
How does social stratification affect behavior and consumption patterns?
Social stratification affects individuals’ needs, values, and lifestyles, which in turn influence their consumption patterns. People in different social classes tend to have distinct behaviors and preferences.
What is the difference between “social class” and “social standing”?
“Social class” is often used interchangeably with “social standing,” but it generally refers to an individual’s rank in society relative to others, determined by factors like income, occupation, and education.
What is “status crystallization”?
Status crystallization is the degree to which an individual’s social status is consistent across different dimensions (e.g., income, education, occupation). High status crystallization means an individual’s status is high in all dimensions, while moderate crystallization means status varies across dimensions.
What is the upper class in the United States, and how is it divided?
The upper class in the U.S. comprises 14% of the population, divided into the upper-upper class (old money) and the lower-upper class (new money or nouveaux riches), primarily distinguished by differences in occupation and social affiliations.
Who makes up the “Upper-Upper Class”?
The Upper-Upper Class consists of aristocratic families and social elites with old wealth. These individuals often belong to exclusive social clubs, sponsor charitable events, and have a prominent influence on community activities. The Kennedy family is an example of this class.
What is the “Lower-Upper Class”?
The Lower-Upper Class is often referred to as the “new rich” or nouveaux riches. This group includes individuals who have acquired wealth within their generation, often through entrepreneurship or the tech industry, like Bill Gates or Ted Turner. They may still be trying to gain full acceptance into elite social circles.
What defines the Upper-Middle Class in the U.S.?
The Upper-Middle Class consists of well-educated professionals, independent businesspeople, and corporate managers. They typically have college or advanced degrees and are highly involved in their communities. They are focused on securing their children’s education and future success.
