Ch 4 Summary: Subcultures

Cultural heritage has long-lasting influence on consumer behavior. Culture of a society is

defined as the basic behavioral pattern exhibited by its members. All segments of a given society
may not exhibit the same cultural pattern. Homogenous subgroups within a culture are known
as subcultures. They practise customs and traditions specific to a particular group within the
culture. An individual may be a part of more than one subculture. Marketers have to distinguish
amongst subcultures to recognize the most relevant one for their product or service. They need
to analyze behavioral patterns in order to modify their marketing mix and satisfy the target
subculture.

Consumer behavior in the United States may be understood on the basis of two broad
and easily recognizable subculture categories – ethnic and age. ‘Ethnic’ refers to approximately
106 groups in U.S.A. characterized by a distinctive origin. Members of an ethnic group have
common forebears, tend to live in the same geographical area, associate with people in their own
group for marriage, give importance to customs followed over generations and share common
sense of friendship and belongingness. Consumers may be divided using three kinds of ethnic
dimensions, that is, race, nationality and religion. Alternately, in terms of age, one can study two
subcultures – the youth subculture and the older subculture.

The Black subculture – In the U.S.A, the blacks have always been at a disadvantage compared to
the whites. They form America’s largest racial minority market and account for 12% of the total
population. Their median family income, opportunities for education and professional growth
are only 50% of those available for whites. Their family structure is dominated by matriarchy.
Black women are more conscious of the sense of style and fashion, have stronger commitment
towards professional life and more budget and value conscious when compared to White
women. Difference in Blacks’ consumer behavior and Whites’ consumer behavior may be due to
the difference in the socialization process they engage in. Marketing advertisements target blacks
through radio shows as research shows that blacks spend more time than whites on radio.

The Asian subculture – Asian population in the U.S.A. comprise three percent of the total
population. Asian-American ethnic groups have a higher median income than all other ethnic

Group No. 4 | Consumer Behavior

groups in the U.S.A. They are more likely to go for education opportunities compared to other
groups. Marketers try for acculturation of Asian-Americans. They study the ethnic differences
present in this group, country where they were born and raised and their language skills. Asians
are comfortable with technology, give considerable importance to quality over price and view
shopping as a family experience. The most effective tactic to market to Asians is to reach them
through their native language.

The Hispanic subculture – This group comes from the Spanish-speaking part of the world. They
constitute eight percent of the population. Their concentration is in urban and metropolitan
areas. Most Hispanic men are blue-collar workers. They do not give importance to education.
Hispanics have a strong family fabric. Marketers in Hispanic markets have to comprehend the
individualistic characteristic of Hispanics’ product and brand preferences. Hispanic Americans are
brand-loyal as they have few Latin American brands to choose from. They are interested in
purchasing those brands that make them believe that they are living the superior American life.
They are price-conscious when they shop. Advertisers use television as an important medium of
communication to reach out to Hispanics.

The Youth subculture – Young American citizens have lesser obligations with respect to their
income. They spend their money to buy durable and high-priced products. They exhibit
premature affluence which they cannot sustain for long as they will have to start paying for their
necessities at some point of time. Their consumption orientation is because of their economic
optimism, higher education level and broader exposure to media. Youth tend exert influence on
their parents’ brand preferences too.

The Older subculture – Older consumers are more price conscious than youth. They prefer to
stick to shops located near their residence due to lack of personal transportation facilities.
Marketers should avoid stereotyping older consumers. Advertisements which are not sensitive
to the consumers may be perceived to be offensive.

Group No. 4 | Consumer Behavior