Chapter 4Demographics and Social Stratification

Text: Consumer Behavior; Hawkins, Mothersbaugh and Best; 10th ed.

Can you guess which generation is the highest prescription drug use? Mature market Generation x Generation y Millenials

Can you guess what percent in each generation is on at least one prescription drug?

Demographics and Social Stratification

Population and Size Occupation Education Income Age

Understanding American GenerationsUnderstanding American Generations

A Generation Generation or age cohort age cohort is a group of persons who have experienced a common social, political, historical, and economic environment.

Cohort analysisCohort analysis 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.

PrePre--DepressionDepression

DepressionDepression

Baby BoomBaby Boom

Generation XGeneration X

Generation YGeneration Y

MillennialsMillennials

Understanding American GenerationsUnderstanding American Generations

Mature MarketMature Market

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Understanding American GenerationsUnderstanding American GenerationsHow to Target the Mature Market

Gerontographics has identified the following four segments of the mature market:

- Healthy IndulgersHealthy Indulgers (7 million, rapidly growing)- Ailing OutgoersAiling Outgoers (18 million)- Health HermitsHealth Hermits (20 million)- Frail Recluses (18 million)

Understanding American GenerationsUnderstanding American Generations

Compared to prior generations, Boomers are:

Higher income, higher education

More tech savvy

Defining retirement differently

Boomers also are:

Strong market for “anti-aging” products, travel, and financial services

Often alienated by overly “youth oriented” appeals in ads

Baby Boom Generation: A Closer LookBaby Boom Generation: A Closer Look

Understanding American GenerationsUnderstanding American Generations

Beyond the stereotype:

Stereotype – Xers as disenfranchised youth

Reality 1– Xers are more highly educated than previous generations

Reality 2– Xer women are more highly educated than Xer men

Reality 3– Xers are getting married, having families and facing the time pressures associated with these events

Reality 4– Reaching Xers requires special attention to media, particularly online

Generation Xers: A Closer LookGeneration Xers: A Closer Look

Understanding American GenerationsUnderstanding American Generations

Interesting Facts About Gen Y:

Really Two Sub-Markets: Twenty-somethings and Teens

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 edgy and affordable products

Generation Yers: A Closer LookGeneration Yers: A Closer Look

Social Stratification Social Rank Social Class system

Social Structure in the United StatesSocial Structure in the United States

Social Standing is Derived and Influences BehaviorSocial Standing is Derived and Influences Behavior

American Social Classes Upper-Upper Class Lower Upper Class Upper Middle Class Middle Americans

Middle Class Working Class

Lower Americans Upper-Lower Class Lower-Lower Class

The Measurement of Social Class Two Basic Approaches:

Single item Index Multi-item Index

Marketing Strategy Considerations Should the marketer use

an overall measure of social status or a demographic variable?

A product or brand may have different meanings for different social strata.

Different purchase motivations for the same product may exist between social strata.