JM602 Consumer Behaviour

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JM602Consumer Behaviour

• Lecture 12 Australian society

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Material in these slides

• Primarily drawn from
• Neal, Quester and Hawkins (2005). Consumer
  behaviour Implications for marketing strategy
  (4th ed). McGraw-Hill Irwin Queensland

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Australasian Society Demographics and Lifestyles

• How do marketers use demographic factors?
• How do they anticipating and capitalise on
  demographic shifts?
• What is the influence of subcultures on behaviour
• What is the impact of changing roles in society?

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Overview (cont.)

• What is Lifestyle and how is it measured?
• What are Psychographics and its applications?
• How can marketers use lifestyle and
  psychographics for market segmentation?

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Changing Societal Factors Affecting Marketing
Strategy
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Demographics (Overview)

• Population size
• Age structure
• Population distribution
• Income
• Occupation
• Education

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Demographics Population size

• Size of Australian population will continue to
  grow in the immediate future
• Projected to grow from 19.7m in 2002 to between
  23.0 and 31.4 million in 2051
• Web address for population clock
• http//www.abs.gov.au/Ausstats/abs40.nsf/94713ad4
  45ff1425ca25682000192af2/1647509ef7e25faaca2568a90
  0154b63!OpenDocument

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Projected Age Structure for 2051
Source ABS file 3222.0
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Actual vs Self-Perceived Age
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Population distribution

• Projections show population increases in all
  states except Tasmania South Australia in next
  50 years

NT 32 - 163
QLD 53 106
WA 44 - 87
Australia 27-49
1995 - 2000 Capital cities 70 of Aust. pop growth
2051 Capital cities 68

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Victoria in the Future

• Department of Sustainability and Environment
• http//www.dse.vic.gov.au/CA256F310024B628/0/DEF9C
  3577F8B59E5CA256F5B007723EE/File/41

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Births, deaths and natural increase, Victoria
1971 - 2051
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Population by 5 year age groups, Victoria, 2001 -
2051
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Demographics (cont.)

• Income / actual incomes
• Disposable incomes / buying power
• Occupations
• Regional influences
• e.g. industry shutdowns, etc.
• e.g. city vs country

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Income

• Changes in disposable income can be directly
  related to changes in market demand for many
  durable products and non-essential services
• Interested in changes in
• Value of household incomes
• Buying power for goods and services
• Standard of living

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Mean Median
NSW 1029 808
VIC 1002 803
QLD 883 701
SA 822 665
WA 985 815
TAS 732 612
NT 1353 1180
ACT 1275 1150
Aus 972 773
Gross Household income per week
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Mean Median
NSW 482 423
VIC 483 433
QLD 439 388
SA 426 368
WA 471 408
TAS 391 350
NT 630 547
ACT 581 564
Aus 469 414
Equivalised disposable household income per week
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Demographics (cont.)

• Education
• Increase during the 90s about 30 more now with
  university degrees
• Huge increase in training less unskilled

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Changing Levels of Education
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Occupation

• Proportion of white collar workers has grown
  faster
• Marked increase in no. of white collar workers
  who are unemployed
• Majority of new jobs created have been part-time
• Small business sector has grown
• Products targeted at white collar workers have
  experienced greater growth

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10 fastest growing jobs 87 - 96

• Personal service workers 91.3
• Business professionals 89.9
• Medicals science technical officers 85.8
• Miscellaneous professionals 51.2
• Social professionals 51.2
• Data processing/business machine operators 49.6
• Teachers/other instructors 48.8
• Managing supervisors 43.8
• Tellers, cashiers, ticket salespeople 42.5
• Receptionists, telephones, messengers 41.8

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10 fastest shrinking jobs

• Clerks -41.3
• Construction/mining labourers -19.0
• Metal fitting/machine tradespersons - 15.1
• Machine operators - 15.1
• Farmers, farm managers -11.1
• Stenographers typists - 8.8
• Stationary plant operators - 8.0
• Engineering/building associates/technicians -
  7.7
• Printing tradespersons -4.4
• Other metal tradespersons - 4.0

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Marketing strategy and demographics

• Demographics has a major impact on way marketers
  identify, target and communicate with their
  target audiences
• Marketers must be abreast of demographic changes

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Subcultures

• share many of the behaviours of the dominant
  culture as well as a set of unique behaviours

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Ethnicity Australasians

• Significant changes in birthplace of Australian
  settlers over past 40 years
• Less settling from traditional countries of UK,
  Ireland, then Greece, Italy, Yugoslavia, Germany
  and Malta
• Increasing proportions from China, Vietnam, Hong
  Kong and Philippines
• Size is not most important point distinctive
  needs of subcultures is more important

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Ethnic markets

• Major subcultures based on race in Australasia
• Maoris
• Aboriginal Torres Straight Islanders
• Asians
• Asian-Australians are recognised as increasingly
  important market segment
• (very heterogeneous population)
• 25 distinct ethnic groups

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Country of origin markets

• Nationality forms a basis for subculture when
  members of that national group identify with it
  and based some of their behaviours on the norms
  of the national group
• In Australia, Italians, Poles, Irish, Koreans,
  Vietnamese, Greeks and Chinese constitute
  important national subcultures
• Influence most significant when they are group
  together geographically
• Marketers can seek opportunity to serve
  particular needs

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Age Subcultures

• Mature market
• 2051 24 of market
• Baby boomers (1946 1964)
• Youth market
• Generation X (1965 1981)
• Generation Y (1982 2000)

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Baby boomers

• Best educated, wealthiest and healthiest
  generation in Australian history
• Are positive about aging
• Politically active interested in social affairs
• Prefer to be informed rather than entertained
• Watch news, current affairs, documentary,
  lifestyle quiz programs
• Newspaper reading is higher than average
• Key audience for, participants in, talkback radio

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Boomers

• As boomers age
• Weight gain is an increasing concern
• Demand for plastic surgery, baldness treatments,
  health clubs, cosmetics, hair colouring and
  related products increases
• Financial planning, entertainment, recreation and
  travel, adult education, housing and service
  industries are likely to boom

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Ads Appealing to the Baby-Boomer Market
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Ads Appealing tothe Baby-BoomerMarket (cont.)
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Understanding Gen Y McCrindle, M (2003)

• What makes them different?
• Age/life-stage e.g.
• Minimal financial commitments
• Different recreational pursuits
• Conditions
• Economic, social and political
• Experiences
• Internet, cable TV globalisation, Sep 11,
  environmentalism
• People resemble their times more than their
  parents

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Understanding Gen YMcCrindle, M (2003)

• Key influences
• Peers (core group 3 8 friends)
• Pragmatism (less idealistic)
• Preference (everything is valid, so long as it
  doesnt hurt others)
• Values
• Relational connection (to be connected,
  understood, respected and included, happy
  relationship, loving family)
• Bigger meaning (more disillusioned with
  materialism/work to live)
• Trusted guidance (navigator not a street
  directory)

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Gen Y

• How can we communicate better with them?
• Real (credible messages/messangers)
• Raw (not impacted by slick presentations)
• Relevant (style must be relevant to a gen. who
  are visually educated entertained)
• Relational (communication requires openness,
  vulnerability, genuine interest understanding)

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Gender Roles

• Ascribed rolesan attribute over which the
  individual has little or no control
• Achievement rolesbased on performance criteria
  over which the individual has some degree of
  control
• Traditional versus modern orientation

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Marketing Strategy and Gender Roles

• Market segmentation
• Not as homogenous as it once was
• Product strategy
• Products are losing their traditional gender
  stereotyping
• Marketing communications
• To appeal to different groups within the womens
  and mens markets
• Retail strategy
• Changing to accommodate the male shopper

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The Nature of Lifestyle

• Lifestyle is the expression of the individuals
  situation, life experiences, values, attitudes
  and expectations
• It is defined simply as how the individual lives
• Lifestyle has been used interchangeably with
  the term psychographics

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Determinants of Lifestyle
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Lifestyle and the Consumption Process
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Continuum for Lifestyle Measurements
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Several Components of AIO Questionnaires
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VALS Lifestyle System
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VALS Survey

• Try it for yourself!
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•  http//www.sric-bi.com/VALS/
• presurvey.shtml
•  
•  
•  

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Roy Morgan Researchs Values Segment System the
Segments

• Young optimism (7)
• Socially aware (11)
• Something better (9)
• Visible achievement (15)
• Look at me (14)
• Conventional family life (10)
• Traditional family life (18)
• Real conservatism (5)
• A fairer deal (7)
• Basic needs (4)

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Lifestyles and Marketing Strategy
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Lifestyles and Marketing Strategy (cont.)
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Next Lecture
Household Structure and Consumption Behaviour