Lecture 7

Question 1

4 main age groups

Answer 1

• Teens and Generation Y
• Generation X
• Baby Boomers
• Seniors

Question 2

Teens and Generation Y

Answer 2

• Friends and internet influences are main source of information, tech savvy, think about environment
• Implications to marketers - Interests change faster, process info faster

Question 3

Gen X

Answer 3

• Build careers, have families, buy homes

- Implications – cynical to obvious marketing techniques, watch less tv

Question 4

Baby Boomers

Answer 4

• Grew up with TV, size and buying power, value freedom

- Implications – target for housing, travel, comfortable clothing, anti-ageing products

Question 5

Seniors

Answer 5

• More women

- Implications - information processing skill deteriorates, need education when making decisions

Question 6

MAO with Genders

Answer 6

• Women – high MAO

- Men – low MAO

Question 7

Regional Influences and Consumer Behavior

Answer 7

• Clustering – residents in one area have similar behavior patterns
• Ethnic groups – share common heritage, beliefs
• Acculturation – learning how to adapt to a new culture
• Accommodation theory – using the specific role models and language

Question 8

Household influences

Answer 8

• Make more decisions than individuals do

Question 9

Types of Households

Answer 9

− A family - related by marriage, blood or adoption.

− A household - live together regardless of whether they are related.

Question 10

Social Class

Answer 10

• Help determine aspirations of societal roles and help segment the market

Question 11

Social Class influences

Answer 11

• Trickle down effect – lower class copy trends of upper class
• Status float – trends start in lower/middle classes and spread upward

Question 12

How Social Class is determined

Answer 12

Income vs. Social Class
− Income not strongly related
− Income levels overlap social classes
− Social class often explains how income is used

Occupation and Education
− Occupation is the strongest determinant of class standing
− Most reliable determinant of income potential & spending patterns
− Education is the most important determinant of occupation

Other Indicators of Social Class
− Inherited Status
− Earned Status

Question 13

How social class changes overtime

Answer 13

Upward mobility
-	Education or occupational achievement 
Downward mobility
-	Job loss 
Current Trend – social class fragmentation

Question 14

Consumptions

Answer 14

• Conspicuous consumption – shows off ones status
• Conspicuous waste – visibly buying products and services one never uses
• Voluntary simplicity – limiting acquisition and consumption to live a less material life