Chapter 10 - Lifestyles, Values and Culture

Chapter 10 Lifestyles, Values and Culture

LEARNING OBJECTIVES
After reading this chapter, students should be able to Describe what is meant by lifestyles, values and culture Explain the use of lifestyle factors in market segmentation Discuss the major social and lifestyle trends that will influence marketing in the coming years Describe the influence of consumer values on consumer behaviour Describe the influence of culture on consumer behaviour Discuss the unique consumption behaviour of sub-cultures and the influence of cultural diversity on mainstream consumption Outline the influence of social class on consumption.

CHAPTER TOPICS
1. 2. 3. An introduction to lifestyles, values and culture Changing Australian lifestyles Approaches to lifestyle segmentation Roy Morgan VALS model Australias ageing population Internet usage and online purchasing Case in point 10.1Population ageing faster than thought Internet usage by children Social and lifestyle trends Time poor consumers Healthy lifestyles Changing gender roles and society Case in point 10.2V8 brand extension 4. Patriotism and the Australian identity Case in point 10.3Scripting ads for Aussie women 5. Culture Society and socialisation Cultural diversity The youth market Case in point 10.4Ethnic TV finds its viewers needs vary Case in point 10.5Live to consume: the creed of a generation Baby boomers and the ageing population Case in point 10.6Advertisers are falling over themselves to reach the cool and cashed-up dance music market. But it has to be soft sell 6. Social class and social stratification Theories on social class Case in point 10.7Systematic variation in purchase orientations across social classes Case in point 10.8Have you tapped into masstige? Marketing implications of social class

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Chapter 10 - Lifestyles, Values and Culture

1. An introduction to lifestyles, values and culture

Lifestyle is defined by the way we choose to allocate our time and resources (text, p. 278). Lifestyle is often measured by activities, interests and opinions (AIO). By identifying the AIO of consumers, we can better target our offerings. Activities include occupation, hobbies, social events, entertainment and holidays. Interests influence those activities that we participate in, such as enjoyment of family life, recreational activities, food and fashion. Opinions are closely related to our values and reflected in activities and interests. Consumers can have opinions on anything, including the environment, government, education, international affairs, social issues, etc.

Values are a reflection of our fundamental belief system. We might strive for fairness and equality, no poverty, status and achievement, eternal youth, etc. Culture is a complex system of knowledge, values, customs and beliefs that are shared by a societya society made up of individuals.

2.

Changing Australian lifestyles

In Chapter 2 we considered key environmental trends that marketers need to keep in mind. In this chapter we will be considering this information as it impacts on and drives our lifestyle choices. In addition, we will be considering how lifestyle groupings can be used as a basis for segmenting markets. Finally we will address the growing areas of interest to marketers and how these might impact on marketing opportunities in the future.

3.

Approaches to lifestyle segmentation

Ask students how marketers can segment a market. Hopefully, students will recall the four bases of demographics, geographic, psychographics and behaviour raised in Chapter 2. Highlight that demographics are a useful measure to consider for segmenting because our age, family life cycle and occupation can have a big influence on our lifestyle. However, demographics should not be used alone nor should any of the bases of segmentation. Lifestyle factors (part of psychographics) are also important determinants of market needs and should be considered when segmenting a market. There are a range of measures marketers can use to describe lifestyle segments. Some use AIO, which we addressed earlier. Others use VALS (values and lifestyles). Roy Morgan VALS model The original VALS study was developed in the United States in the 1970s. Roy Morgan Research in Australia developed its own version of VALS to better match the lifestyles evident in Australia. Comprehensive psychographic research has been used to develop this well-respected model. The categories developed are based on extension research on how people think, their aspirations, self-images, behaviour and more. Refer to Figure 10.1 (p. 280) for the parameters of the different lifestyle categories. For a description of each category, refer to page 281. Students should be encouraged to visit the VALS website: www.roymorgan.com.au. Also refer to the Interactive and Discussion Exercises to apply the VALS concept. Australias ageing population Age is a demographic measure, but also an important driver of lifestyle. For example, most people mountain trek through Nepal when they are young, not in their twilight years. The age breakdown of the population has a big impact on the types of activities, as well as the future growth prospects for these activities. Australia has an ageing population, with a greater proportion of the population getting older each year (and less babies being born). Encourage students to visit the ABS website for up-to-date profiles on Australias population: www.abs.gov.au. Also refer to the interactive exercises below.

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Case in point 10.1Population ageing faster than thought By 2051 one in three Australians will be 60 or over, twice the proportion in Australia today. This is a combined effect of sustained infertility rates and increased life expectancy because of improved health and medical treatment. Where will the students be in 2051? They will most likely be in the aged sector by then! Internet usage and online purchasing The impact of technology was raised in earlier chapters. The Internet is clearly one of the key influences on lifestyle but not necessarily for all age groups. With the growing use of the Internet comes greater confidence with and demand for other technology products like digital cameras, camera phones and high-tech video games. Computers and the Internet also offer an array of services to regional Australia, although fewer households are online than in metropolitan areas. Marketers can now better target their regional areas, where previously remote areas were too costly to access. Clearly, age has a big impact on adoption of Internet technologies. Families with children are more technology-savvy than people over the age of 65 years. There is growing confidence in conducting transactions over the Internet, with lower fees and other incentives available for such transactions. There is greater use of the Internet for business purposes, or learning and entertainment depending on the age group. Email communications are fast replacing fax, telephone and postal mail. Time spent on the Internet also takes time away from other media like television. Internet usage by children It is estimated that 47 per cent of children aged between 5 and 14 had access to the Internet during 2000. Children mainly use the Internet for educational purposes, as well as for email, chat or playing games. Many companies incorporate a link to cater for children, offering fun, games and competitions. Companies who can encourage children to visit their websites may also reach adults who tend to oversee the sites their children visit. Social and lifestyle trends VALS has been endorsed by senior managers on its relevance for tracking which media attracts different types of consumers. Marketers can track media consumption patterns through various research outlets some quite readily available on the Internet. Also refer to the Discussion Questions for other media sites that provide valuable information to advertisers. Sport and recreation form an important part of Australian culture, and provide a uniting force for our identity. Our love of sports also provides opportunities for marketers through advertising and event sponsorship. Who can remember the sponsors of the Athens Olympics (e.g. Qantas, LG)? There was continual endorsement of and exposure to these companies. The intention of sponsorship is to form favourable attitudes of these companies, which might result in a future purchase or at least being in the consumers evoked set when evaluating between brands. Athletes are often used as celebrity spokespeople for relevant products, since Australians are so proud of their representation and find them quite believable. Time poor consumers With a real estate boom and incentives to purchase their own home, consumers are now finding they are heavily mortgaged and have little leisure time because of increased work pressure and commitments. Therefore, no-one wants to waste their precious time doing those more traditional house duties like cooking, cleaning or laundry any longer than they have to. This type of situation creates both opportunities and threats. Opportunities exist for products that save consumers time, like more efficient washing machines and other cleaning type products, as well as ready-prepared meals that hold some nutritional value. Threats include decreased consumption of various mediawho has time to read the newspaper or a magazine cover to cover? Specialist inserts are now being provided to target consumers who want to focus their limited reading time on their particular needs.

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Chapter 10 - Lifestyles, Values and Culture

Healthy lifestyles In recent years there has been an increased trend towards healthy living and lifestyles. This includes everything from healthy eating and a range of fitness options, to a growing interest in herbal medicine. Media coverage of the dangers of being overweight and childhood obesity also add fuel to this trend. Case in point 10.2V8 brand extension At first this case looks like it addresses hotted-up cars! But Campbells V8 vegetable juice is a long-standing brand that has also hotted-up its brand image and introduced new lines with the brand name V-Plenish. This juice has both vegetables and fruit, and includes a serving of fruit and veg in every glass. This not only addresses the increased interest in health, but also our time poor consumers who dont have ti me to squeeze their own juice or cut up fruit. Refer to Interactive Exercises for a fun activity to stimulate interest. Changing gender roles and society The changing role of women is not a new phenomenon. This is addressed in Case in point 10.3. Also consider the trends associated with gender roles, such as a greater number of working women, shared household duties, and having children later in life. This does not negate a mothers nurturing role in the family unit. With women changing their role in society, come changes to the role of men. Men are now more aware of grooming, which creates opportunities for companies like Gillette as they bring out brand extensions that cater for this trend like moisturising, special cleansing lotions, and female-attracting deodorisers. Men also have changed their role, with many having equal responsibility in home decorating, child care and nurture, housekeeping and cooking. Case in point 10.3Scripting ads for Aussie women The key to understanding women in Australia today is to understand historically what has shaped them. Essentially the perfect woman no longer does one or two things well. They believe they are expected to juggle lifes activities, keep house, nurture children, and keep healthy. This is reflected in the types of advertisements that show time poor women doing a job competently. Another key driver of advertisements is the woman who is rational and in control, and can make informed decisions. Independence is a critical factor as well, which really reinforces the previous appeal of being in control. The case also provides descriptions of women in various age groupsbut not so much in terms of demographics, as much as through psychographic data. How do students see their mothers or older females they have contact with? How do they see themselves?

4.

Patriotism and the Australian identity

Nothing brings out patriotism more than the Olympic Games. Consider the support across the nation as Ian Thorpe came second in the 200m in Athens. How many of us actually set the alarm for 2:40 so we could see it live! And when we hear our National Anthem sung because we have won gold, we stand proudly, many of us with tears welling in our eyes. We live in Australia and we are Australian, just like the gold medallists we cheered on. Australian companies build on this patriotism by emphasising the origins of their products. Dick Smith has gained much publicity through his efforts in supporting Australian business.

5.

Culture

Culture is based on our basic system of learned beliefs, values, and customs that direct the behaviour of members of a particular society. Culture has far-reaching impacts on consumer behaviour. Culture is made up of three interrelated elements: 1. The physical environment, based on the natural geography and human alterations to it. Note Australias pride in our Indigenous culture and the way Aborigines have lived off the land. 2. The social environment, including political, educational, family and class structures. Consumer Behaviour by Karen Webb Page 4

Chapter 10 - Lifestyles, Values and Culture

3. The training (or learning) environment, which addresses formal and informal socialisation (learning of norms). Marketers need to understand the difference between central and peripheral cultural values. These concepts were introduced in Chapter 9. Central values are core values that have greater personal significance to an individual. Peripheral values are somewhat important, but can be more easily changed than central values. The elements of culture include the following: Norms are shared values or rules that influence behaviour. Norms are what is expected or acceptable. Some norms are actually law. Values are a reflection of social norms. Values are shared social ideals or norms. Different societies and cultures have different values because of different norms.

Refer to interactive exercises for ideas on how to introduce this topic. Society and socialisation A society is a group of people who live and interact while sharing common goals (text, p. 291). This concept will be discussed more in Chapter 11 when we consider the influence of groups on decision making. The family is the primary influence on socialisationothers are schools, peer groups and the media. The learning of ones own culture is known as enculturation. We begin this process from the time we are bornfrom the food we are given, the clothes that we wear and the activities we undertake. When people move to a different country they need to learn the customs of a different culture. The learning of a new or foreign culture is known as acculturation. Cultural diversity Australia is one of the most culturally diverse societies in the world. The influence of this multiculturalism can be seen in everyday life in food consumption, entertainment, music and leisure activities. Refer to Interactive Exercise. Research has revealed that the Australian media is not a true reflection of the way of life in Australia. This is even more exaggerated when you think of how Australia is portrayed in international media, with kangaroos hopping down the main street and our main head-attire being an Akubra! Thanks Crocodile Dundee and the Crocodile Hunter. Subcultures and cultural diversity A subculture is a group within the wider culture or community that has its own unique defining characteristics, motivations and patterns of behaviour (text, p. 292). Some of the Interactive Exercises below have encouraged subcultures to be identified. When we think of subcultures, our minds instantly turn to ethnic origins. This category is a very important part of subculture, but encourage students to think of other subcultures in society based on age, social class, geographic region, etc. Although Australia is a relatively small market, marketers still find it worthwhile to identify subcultures and take advantage of valuable niches. This also ensures marketers can avoid alienating consumers in subcultures and make the best use of subcultural distribution channels and media consumption patterns. In some cases, such as the elderly consumer, product characteristics can be tailored to the unique needs of that subculture. Multicultural marketing Multicultural marketing is growing in importance in Australia because many ethnic groups present viable marketing opportunities. However, this does not mean that people who migrate to Australia dont take on some of the characteristics of the Australian culture. Learning a new culture is called acculturation. The degree of acculturation will depend on the age that someone moved here and the time they have spent in Australia, It will also depend on the degree of ties with their home country. Marketers should not assume that everyone, say, from Greece only eats Greek food. Stereotyping is nearly as detrimental to a marketers image as ignoring cultural differences altogether.

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Case in point 10.4Ethnic TV finds its viewers needs vary Pay TV broadcaster TARBS World TV has identified three major markets in the ethnic population. These segments include: Reluctantsnew and first-generation migrants who are still finding adjustment to life in Australia a challenge. Hybridsfirst or second-generation migrants with good English, who struggle to completely belong to Australian society or their home countrys culture. They strive for services that allow them to stay in touch with their country of origin and culture. Blendedshave completely accepted Australia as their home, and feel their country of origin is part of their heritage.

Discuss the marketing implications of each of these groups. The youth market Generation X is often the term given to the offspring of the baby boomers. These children were typically born in the 1960s and 1970s. This generation is aware of technology, and supposed that it was the norm for women to be independent and have a career. Generation Y are people born in the 1980s and 1990s. They are very technology literate and media savvy. This group can be quite difficult to reach through traditional media. Generation W is the term now being used for those born between 1980 and 2000. These consumers are a product of the online world and are keen to consider new technologies like SMS, ring tones and mobile phone icons. This generation cant live without these technological tools. In fact, you realise how far the world has come when a 6-year-old asks what that box on the side of the road isa public telephone! And imagine having to wait for the postman to deliver a letter you wrote three days ago! Consider marketing implications of these developments in the Interactive Exercises below. Case in point 10.5Live to consume: the creed of a generation Research has revealed that Generation X (2534 years) live for the moment. They are pleasure -seeking and high maintenance. Instant gratification is demanded, and the Xers dont mind using credit to satisfy todays needs. This generation is a good market for companies launching new products. They are prepared to try new things, take risks and live on the edge. What implications does this have for the futureespecially in regards to home accommodation (rental market, etc.), future uncertainty of pensions and the like? Case in point 10.6Advertisers are falling over themselves to reach the cool and cashed-up dance music market. But it has to be soft sell Dance music is helping advertisers reach a media savvy dance music enthusiast group, who have been traditionally hard to reach. This group typically spend all of their income, and have a strong influence on their friends purchases. Advertisers taking advantage of this trend include Motorola, McDonalds and Pepsi. A variety of products are being marketed to this group, including beer, pre-mixed drinks, clothing and footwear, mobile phones, computer games and hair-care products. If marketers are going to target this audience, the whole package has to fit. This includes brand messages, imagery and corporate identity. Also, expertise in the market has to be demonstrated. Motorola has been working with dance-oriented organisations to get it right. Event sponsorship is a worthwhile exercise as well. This also helps event organisers keep ticket prices down. Ask students what type of companies would be best suited to target this market. Baby boomers and an ageing population The older Australians heading towards retirement in the next 1015 years are called baby boomers. Consumer Behaviour by Karen Webb Page 6

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Baby boomers are very different to their children. Todays youth are more technology savvy and worldly than their parents. The baby boomers also have different interests, lifestyles, attitudes and opinions to their children. This generation lived through more prosperous times than their parents (who faced the Depression and World War II). There was low unemployment and the achievement of the Australian dream (own home). They were determined to maintain a high standard of living and inadvertently created the two-income household as the norm.

6.

Social class and social stratification

Some form of social class or social stratification has existed in all societies throughout history. Although Australia has no formal class system like countries such as India, there are distinct differences in the different purchases of rich and poor. In fact the gap between rich and poor is increasing. There is a clear diversity in values, lifestyles and behaviour among the members of each social class. Social class is the hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values and lifestyles (text, p. 301). T he members of each class have relatively the same status and members of all other classes have either more or less status. Social class is not defined by income alone. Other factors can include occupation and education level, and other psychosocial factors. The class perceived as upper class is more likely to purchase prestige brands. The middle class is focused on buying what is popular. The lower class is more focused on functional benefits of products. Social class is a relevant concept for marketers because behaviour of the different class structures is so distinct. However, not all consumer behaviours are unique to one classotherwise no other factors would need to be learned. Consider Maslows hierarchy of needs here and how we move up and down the pyramid depending on our level of needs. Interestingly, social mobility (or movement between classes) has also been relatively high in Australia, and especially for women. Refer to the Interactive Exercises below. Theories on social class Marketers are more interested in the wa y consumers perceive the concept of social class than the actual theoretical boundaries of class structure. Early theorists believed that social class was based on property ownership. This is a particularly interesting statement given that early settlers were given land from the government, rather than purchasing through wealth. McGregor suggests individuals engage in activities of the class they aspire to, via education, sport, club memberships, the car they drive, the way they use language, and what they spend their money on. Social stratification is the division of society into different social tiers called classes. The number of classes that can exist is widely debated. Classes are usually ranked from high to low. Market research companies take this further and classify people into quintiles based on socioeconomic factors such as income, job classification and level of education. These types of factors are used by marketers to appeal to different audiences. Middle Australia is the large group of people that are neither wealthy nor low-income. These average Australians see themselves as hard-working and trying to do the best for themselves and their families. Over 50 per cent of Australians in a research study described themselves as middle Australia, but their conclusions were not based on income. The beliefs were based more on culture. The AB demographic is those people with high incomes, who love spending.

Measuring social class Income is not a particularly good indicator of social class. Consider the middle-level white collar manager who earns $65 000. Now compare him to the bricklayer who earns $75 000. Does this mean the bricklayer has more status than the middle-level manager? The answer is really dependent on a host of factors beyond income. Attitudes may be a better determinant. Social class is measured in three ways:

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1) Subjective MeasuresIndividuals guestimate their own social-class position. Classification is based on selfperception or images, and often referred to as class-consciousness. 2) Reputational MeasuresJudgements are made about perception of others social class membership, instead of ones own standing. For example, occupations such as judges, CEOs, doctors and lawyers have high prestige, in contrast to drivers, machine operators, tradesmen and cleaners, who are considered lower status. 3) Objective MeasuresUse selected demographic or socio-economic variables. The most frequently used are occupation, income and education, as discussed previously. Objective measures of social class fall into two basic categories. When one variable is used to measure social class, it is referred to as a single-variable index. When there is a combination of variables it is referred to as a composite-variable index. Case in point 10.7Systematic variation in purchase orientations across social classes Goldthorpe et al. assigned seven different classes based on occupation. Refer to page 302. How likely will these classifications predict future behaviour in terms of types of purchases, club memberships and favourite brands? Case in point 10.8Have you tapped into masstige? Masstige refers to the goods and services that occupy a sweet spot between mass and class (text, p. 304). It is a combination of MASS-produced and prestIGE. Basically they command a premium over conventional products, but may not always be positioned at the top of their category in price. Masstige products are present in almost every category of product. Changes in the marketplace will occur with the emergence of masstige products. Different categories of products and services will be reshaped, market leaders dethroned, new products unveiled and traditional products repositioned. The cheaper products will always survive, as will the premium brands. It will really depend on the importance of the purchase to the consumer. Students should be encouraged to view an appliance or television brochure for Harvey Norman or Good Guys. Consider the features available on different products, the brands (and where they are made) and the price. Marketing implications of social class Marketers need to anticipate the influence social class will have on consumer behaviour. Some products are positioned on their luxury appeal. These types of products are clearly targeted to those who perceive themselves in the higher social class. Although functional products that are low-cost arent necessarily targeted at the lower classes. Not so long ago, one of the busiest Franklins supermarkets (known for no frills and low prices) was located at Double Bayan exclusive suburb in Sydney. For certain product categories, social class is less relevant. Value is perceived as more important. Marketers of luxury products cannot underestimate the importance of perceived value, no matter what the status of the target customer. Consumers use a set of evaluative criteria that is applied when processing information and choosing between alternatives. The criteria used in most decision processes varies across social classes. Where the visibility of the product, or brand image, may be more appealing to some, others will value the functionality of the brand.

DISCUSSION EXERCISES
1. 2. 3. How can a marketer use VALS segmentation profiles to develop a marketing strategy for a private health fund? Which segment(s) should be targeted? Justify your answers. To learn about the sources of media consumption trends, look up the following sites and answer the associated questions: Prepare a questionnaire that allows you to identify lifestyle, and the determinants of lifestyle (psychographic data and community trends). Interview five people of different age groups to determine their lifestyles. How do Page 8

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their lifestyle characteristics, such as activities, interests and opinions, differ? What factors cause these differences? 4. Select a national holiday like Christmas, Easter, Anzac Day, etc. Discuss the major cultural values and norms reflected in this celebration. What rituals or customs does your family perform for this holiday? 5. How could the market be segmented using subculture as the key determinant for the following products and services? a) b) c) d) e) 6. a tourist package to Scandinavia camera phones ready-prepared side dishes music CDs national street directory on CD

You are the owner of two electrical appliance stores. One caters to the higher class and the other to middle-class consumers. How do social class differences influence each store in terms of the following: a) b) c) d) retail store brand name product lines carried advertising payment policies

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