,Chapter 12: Consumer Diversity
This chapter examines how diversity influences such as age, gender, sexual orientation, the region in
which one lives, ethnic groups, and religion can affect consumer behavior.
When Yum! Brand opens a Pizza Hut, Taco bell, or KFC restaurant outside the US, it carefully tailors
its offerings to regional and religious preferences. In India, for instance, its branded outlets offer
numerous vegetarian dishes, because Hindu consumers do not eat beef. Yum! Brands, like many
successful marketers, pays close attention to diversity influences that affect consumer behavior.
First, the region in which its customers reside can influence consumer behavior, including the foods
and flavors they favor. Second, consumer behavior can vary among subgroups of individuals with
unique patterns of religion because of different traditions, customs, and preferences.
To develop and implement effective marketing strategies and tactics, companies must understand
how these and other diversity influences (such as age, gender and sexual orientation) affect
consumers.
12.1 How age affects consumer behavior
The basic logic is that people of the same age are going through similar life experiences and therefore
share many common needs, experiences, symbols, and memories, which, in turn, may lead to similar
consumption patterns.
Teens and millennials (Generation Y)
Teens shop more frequently than consumers in other segments, check prices online and via cell
phone as well as in stores before they buy, and put a high value on price and convenience. Their
(hundreds) of friends (on social media) are a major source of information about products, and
socializing is one of the major reasons that teens like to shop.
Having grown up with recycling, many in this segment consider a product’s environmental impact
before buying.
A study of teens revealed common behaviors, values, and preferences that cross national boundaries
in six distinct segments:
The thrills and chills segment: consists of fun-seeking, free-spending consumers from middle
or upper-class backgrounds.
The resigned segment: are alienated from society and have low expectations of the future
and of material success.
The world savers: high-aspiration teens who are characterized by their altruism.
The quiet achievers: the ambitious teens conform to societal norms.
The bootstrappers: are family-orientated achievement seekers with hopes for the future.
The upholders: the dutiful and conforming teens who seek a rewarding family life and uphold
traditional values.
Additional segments in the global teenage market, including materialists who practice
conspicuous consumption, ecologists who are interested in protecting the environment, and
netizens who are heavy users if Internet-connected devices.
Age cohorts are groups of consumers who are born in the same time period. Age cohorts share
similar early life experiences that shape their values, preferences, and behaviors throughout their
lives.
,Millennials (Generation Y), more than any other age cohort, describe their generation as “idealistic”.
They are also media and tech savvy; they seek four benefits from tech devices:
1. Immediacy
2. Entertainment
3. Social interaction
4. Self-expression
Brand loyalty – Marketers seek to build early brand awareness and preference among teens and
young millennials consumers, working toward having that brand loyalty carry over into adulthood.
Millennials seek out brands they perceive as authentic, and they tend to be highly loyal to their
favorites. They also will participate in loyalty programs that reward them for engaging with the
brands they like.
Positioning – Marketers position their products as helpful for dealing with the adolescent pressures
of establishing an identity, rebelling, and being accepted by peers. Teens can be trendsetters and
therefore companies such as Coca-Cola are constantly researching what these consumer like and
want. But teens tastes can change quickly, and popular brand or stores may become overexposed an
can quickly lose their cachet.
Advertising messages – Marketers reach out to teens and millennials through multiple media that
these consumers favor, for instance, Instagram and Facebook. Visualized storytelling is a really
powerful tool for the younger consumer. Popular music and sports figures are frequently used in ads.
Today’s teens process information faster than older consumers and they prefer short, snappy
phrases.
Traditional and social media – Marketers can target teens and millennials through certain TV
networks, TV programs, magazines, radio stations, the internet, and social media.
Other marketing activities – Some marketers reach teens through recreation or special events that
showcase the brand or product in a lifestyle or sports setting (e.g. Red Bull sponsors musical events
and extreme sporting activities such as skateboard demonstrations) to reach its audience of
millennials.
Generation X
Within this group, some are underachievers while some are career-oriented. Yet many Gen Xers are
doing well by being at the cutting edge of technology and finding ways to balance their work and
personal lives.
Gen X take the time to research a purchase and like to customize offerings to their personal needs
and tastes. Moreover, this age cohort is accustomed to shopping in stores and online, which means
that retailers use multiple distribution channels to accommodate buying patterns.
Advertising messages – Born and bred on TV and electronics, Gen Xers tent to be cynical about
obvious marketing techniques. However, they do react positively to messages they see as clever or in
tune with their values, attitudes, and interest. They notice messages that appeal to nostalgia for their
younger days, as evidenced by their active participation in social media themes (e.g. Throwback
Thursday”).
Traditional and social media – Marketers can reach Gen Xers through media vehicles such as popular
or alternative music radio stations and network or cable TV. Ads in music-related publications and
messages displayed at concerts, sporting events, and popular vacation spots can also be effective.
, Boomers
Boomers are a diverse group, the oldest are retiring but many are still working and the younger
boomers make saving for retirement a high priority. Still they have so much buying power that they
are the target for many products and services, including cars, housing, financial (retirement,
children’s college, aging parents) travel, entertainment, recreational, equipment, and motor homes.
Many have the time and money to pursue once-in-a-lifetime experiences.
Brands that have traditionally prospered by marketing to boomers must be prepared to adjust their
targeting and tactics as this group ages and their behavior changes.
Seniors
In general, seniors tend to be brand-loyal, tend to know more about brands from long-standing
experience may not search extensively when planning high-ticket purchases, and have less
motivation and cognitive capacity to deal with new, unfamiliar brands.
Advertising and media – Marketers can target boomers through the use of media geared to this
group’s interests, including oldies rock ‘n’ roll programs and websites, activity-specific publications
and TV shows, and lifestyle-related events (home shows). They perceive ads with positive older role
models as more credible.
Distribution, sales, and promotions – retailers can design their outlets to provide a more age-
friendly shopping environment for baby boomers and seniors (e.g. wider aisles and parking lots).
Seniors value service, and many develop brand loyalty by taking advantage of discounts.
12.2 How gender and sexual orientation affect consumer behavior
Sex roles
Until recently, men were guided by agentic goals that stress mastery, self-assertiveness, and self-
efficacy. Women were guided more by communal goals of forming affiliations and fostering
harmonious relations with others and have been expected to be relatively submissive, emotional,
and home-oriented.
Over time, female and male roles have been evolving. More women are delaying marriage and
childbearing in favor of building a career, which has led to higher standards of living for a women and
to changes in women’s attitudes, particularly an emphasis on independence. More men are staying
home to care for their children, and many of them exhibit a “rebel” mentality about challenging
traditional notions of masculinity.
Differences in acquisition and consumption behaviors
Women are more likely to engage in a detailed, thorough examination of a message and to make
extended decisions based on product attributes, whereas men seem more selective information
processors, driven more by overall themes and simplifying heuristics.
Men tend to be more sensitive to personally relevant information and women pay attention to both
personally relevant information and information relevant to others. Men appear to be more sensitive
to trends in positive emotions (feeling enthusiastic and strong), whereas women display a tendency
for negative emotions (feeling scared and nervous).
Women tend to be more loyal than men to individuals (hair stylist), whereas men tend to be more
loyal than women to groups (company).
This chapter examines how diversity influences such as age, gender, sexual orientation, the region in
which one lives, ethnic groups, and religion can affect consumer behavior.
When Yum! Brand opens a Pizza Hut, Taco bell, or KFC restaurant outside the US, it carefully tailors
its offerings to regional and religious preferences. In India, for instance, its branded outlets offer
numerous vegetarian dishes, because Hindu consumers do not eat beef. Yum! Brands, like many
successful marketers, pays close attention to diversity influences that affect consumer behavior.
First, the region in which its customers reside can influence consumer behavior, including the foods
and flavors they favor. Second, consumer behavior can vary among subgroups of individuals with
unique patterns of religion because of different traditions, customs, and preferences.
To develop and implement effective marketing strategies and tactics, companies must understand
how these and other diversity influences (such as age, gender and sexual orientation) affect
consumers.
12.1 How age affects consumer behavior
The basic logic is that people of the same age are going through similar life experiences and therefore
share many common needs, experiences, symbols, and memories, which, in turn, may lead to similar
consumption patterns.
Teens and millennials (Generation Y)
Teens shop more frequently than consumers in other segments, check prices online and via cell
phone as well as in stores before they buy, and put a high value on price and convenience. Their
(hundreds) of friends (on social media) are a major source of information about products, and
socializing is one of the major reasons that teens like to shop.
Having grown up with recycling, many in this segment consider a product’s environmental impact
before buying.
A study of teens revealed common behaviors, values, and preferences that cross national boundaries
in six distinct segments:
The thrills and chills segment: consists of fun-seeking, free-spending consumers from middle
or upper-class backgrounds.
The resigned segment: are alienated from society and have low expectations of the future
and of material success.
The world savers: high-aspiration teens who are characterized by their altruism.
The quiet achievers: the ambitious teens conform to societal norms.
The bootstrappers: are family-orientated achievement seekers with hopes for the future.
The upholders: the dutiful and conforming teens who seek a rewarding family life and uphold
traditional values.
Additional segments in the global teenage market, including materialists who practice
conspicuous consumption, ecologists who are interested in protecting the environment, and
netizens who are heavy users if Internet-connected devices.
Age cohorts are groups of consumers who are born in the same time period. Age cohorts share
similar early life experiences that shape their values, preferences, and behaviors throughout their
lives.
,Millennials (Generation Y), more than any other age cohort, describe their generation as “idealistic”.
They are also media and tech savvy; they seek four benefits from tech devices:
1. Immediacy
2. Entertainment
3. Social interaction
4. Self-expression
Brand loyalty – Marketers seek to build early brand awareness and preference among teens and
young millennials consumers, working toward having that brand loyalty carry over into adulthood.
Millennials seek out brands they perceive as authentic, and they tend to be highly loyal to their
favorites. They also will participate in loyalty programs that reward them for engaging with the
brands they like.
Positioning – Marketers position their products as helpful for dealing with the adolescent pressures
of establishing an identity, rebelling, and being accepted by peers. Teens can be trendsetters and
therefore companies such as Coca-Cola are constantly researching what these consumer like and
want. But teens tastes can change quickly, and popular brand or stores may become overexposed an
can quickly lose their cachet.
Advertising messages – Marketers reach out to teens and millennials through multiple media that
these consumers favor, for instance, Instagram and Facebook. Visualized storytelling is a really
powerful tool for the younger consumer. Popular music and sports figures are frequently used in ads.
Today’s teens process information faster than older consumers and they prefer short, snappy
phrases.
Traditional and social media – Marketers can target teens and millennials through certain TV
networks, TV programs, magazines, radio stations, the internet, and social media.
Other marketing activities – Some marketers reach teens through recreation or special events that
showcase the brand or product in a lifestyle or sports setting (e.g. Red Bull sponsors musical events
and extreme sporting activities such as skateboard demonstrations) to reach its audience of
millennials.
Generation X
Within this group, some are underachievers while some are career-oriented. Yet many Gen Xers are
doing well by being at the cutting edge of technology and finding ways to balance their work and
personal lives.
Gen X take the time to research a purchase and like to customize offerings to their personal needs
and tastes. Moreover, this age cohort is accustomed to shopping in stores and online, which means
that retailers use multiple distribution channels to accommodate buying patterns.
Advertising messages – Born and bred on TV and electronics, Gen Xers tent to be cynical about
obvious marketing techniques. However, they do react positively to messages they see as clever or in
tune with their values, attitudes, and interest. They notice messages that appeal to nostalgia for their
younger days, as evidenced by their active participation in social media themes (e.g. Throwback
Thursday”).
Traditional and social media – Marketers can reach Gen Xers through media vehicles such as popular
or alternative music radio stations and network or cable TV. Ads in music-related publications and
messages displayed at concerts, sporting events, and popular vacation spots can also be effective.
, Boomers
Boomers are a diverse group, the oldest are retiring but many are still working and the younger
boomers make saving for retirement a high priority. Still they have so much buying power that they
are the target for many products and services, including cars, housing, financial (retirement,
children’s college, aging parents) travel, entertainment, recreational, equipment, and motor homes.
Many have the time and money to pursue once-in-a-lifetime experiences.
Brands that have traditionally prospered by marketing to boomers must be prepared to adjust their
targeting and tactics as this group ages and their behavior changes.
Seniors
In general, seniors tend to be brand-loyal, tend to know more about brands from long-standing
experience may not search extensively when planning high-ticket purchases, and have less
motivation and cognitive capacity to deal with new, unfamiliar brands.
Advertising and media – Marketers can target boomers through the use of media geared to this
group’s interests, including oldies rock ‘n’ roll programs and websites, activity-specific publications
and TV shows, and lifestyle-related events (home shows). They perceive ads with positive older role
models as more credible.
Distribution, sales, and promotions – retailers can design their outlets to provide a more age-
friendly shopping environment for baby boomers and seniors (e.g. wider aisles and parking lots).
Seniors value service, and many develop brand loyalty by taking advantage of discounts.
12.2 How gender and sexual orientation affect consumer behavior
Sex roles
Until recently, men were guided by agentic goals that stress mastery, self-assertiveness, and self-
efficacy. Women were guided more by communal goals of forming affiliations and fostering
harmonious relations with others and have been expected to be relatively submissive, emotional,
and home-oriented.
Over time, female and male roles have been evolving. More women are delaying marriage and
childbearing in favor of building a career, which has led to higher standards of living for a women and
to changes in women’s attitudes, particularly an emphasis on independence. More men are staying
home to care for their children, and many of them exhibit a “rebel” mentality about challenging
traditional notions of masculinity.
Differences in acquisition and consumption behaviors
Women are more likely to engage in a detailed, thorough examination of a message and to make
extended decisions based on product attributes, whereas men seem more selective information
processors, driven more by overall themes and simplifying heuristics.
Men tend to be more sensitive to personally relevant information and women pay attention to both
personally relevant information and information relevant to others. Men appear to be more sensitive
to trends in positive emotions (feeling enthusiastic and strong), whereas women display a tendency
for negative emotions (feeling scared and nervous).
Women tend to be more loyal than men to individuals (hair stylist), whereas men tend to be more
loyal than women to groups (company).
