Republic of the Philippines

BATANGAS STATE UNIVERSITY– LIPA

Marawoy, Lipa City

College of Accountancy, Business and Economics

MKT. 102- Consumer Behavior

Chapter 5. Subcultures and Consumer Behavior

Lesson No. 1. The Subcultures of Today

Culture may be defined as the “personality of a society”. It is broad and all pervasive in nature,
inclusive of language, customs and traditions, norms and laws, religion, art and music, etc. It also
includes the interests of people, the work practices and orientations, as also their attitudes
towards general and specific issues. Culture delineates precisely, the do’s and don’ts of a society,
and specifies all that is acceptable and all that is not. It is reflective of values and beliefs that are
widely accepted by members of a society. The members of a society subscribe to the various
values, beliefs and norms, and this gives strength to a society’s culture. This does not imply that
cultures are truly rigid; in fact, they evolve and adapt to changing situations and times. Culture is
a society's personality, unique in itself and differentiated from others; it is further divided into
various sub-cultures. Culture is also trans-generational, and is passed on from one generation to
another. A study on our culture requires an elaborate and detailed inquiry into the very character
and personality of the society that we live in. The culture of a society also has a bearing on
buying patterns and consumption behavior. In terms of consumer behavior, Schiffman defines
culture as “the sum total of learned beliefs, values, and customs that serve to direct the consumer
behavior of members of a particular society”. The kinds of products and services and/or brands
that consumers’ buy and use, are all based on their cultures and sub-cultures. For example, the
food they eat and the kinds of clothes they buy and wear, are all impacted by their culture, their
customs, traditions, norms and values.

While culture is defined as the “personality of a society”, (inclusive of language, customs and
traditions, norms and laws, religion, art and music, etc), it is not entirely homogenous in nature.
Not all people within a social system, share the same language, religion, customs and traditions.
Every society is composed of smaller sub-units, homogenous within, and heterogeneous outside,
all of which when put together make a complex society. Such sub-units or sub-groups are known
as sub-cultures; people within sub-cultures possess distinctive sets of values, beliefs, customs
and traditions etc. The members of a subculture possess such values and beliefs, as also customs
and traditions that set them apart from people belonging to other sub-cultures. For example,
while we are all Indians, and our culture is Indian (with a common national language, Hindi, and
common festivals like Diwali), North Indians are different from South Indians. While North
Indians, celebrate Lohri, as a harvest festival in January, the South Indians celebrate Pongal as
their harvest festival at the same time. In other words, people within smaller units share the same
language, religion, customs and traditions; and, this would be different in smaller or larger
magnitude to people in other sub-units. A single culture can be broken up into various consumer
subcultures. A subculture can be defined as a culture that is not dominant in its society. As
consumers from various subcultures, we are different to each other. We have varying values and
beliefs, customs and traditions, etc. These get reflected in our perspectives and orientations that
influence our purchase patterns and consumption behavior. That is why a study of sub-culture
becomes important for a marketer.

Subcultures
A subculture is a group of people who share a set of secondary values, such as
environmentalists. Many factors can place an individual in one or several subcultures. People of
a subculture are part of a larger culture but also share a specific identity within a smaller group.
Adjusting to cultural differences is perhaps the most difficult task facing marketers who operate
in other countries. Before entering a foreign market, a company must decide to what extent it is
willing to customize its marketing efforts to accommodate each foreign market.
Take Canada for example: there is a range in consumer behaviour preferences and decision
making between people who live in Vancouver and people who live in Iqaliut. As is there a vast
difference between the needs and wants of consumers in Toronto and those in Whitehorse. There
could, of course, be similar sub-cultures existing in these cities who are connected through
language, history, and lived experiences. (As examined earlier in this book, brand
communities exist in a way that creates bonds between like-minded consumers who are
geographically dispersed.)
Thousands of subcultures exist within Canada and the United States. Ethnic and racial groups
share the language, food, and customs of their heritage. Other subcultures are united by shared
experiences. Biker culture revolves around a dedication to motorcycles. Some subcultures are
formed by members who possess traits or preferences that differ from the majority of a society’s
population. The body modification community embraces aesthetic additions to the human body,
such as tattoos, piercings, and certain forms of plastic surgery. In Canada and the United States,
adolescents often form subcultures to develop a shared youth identity. Alcoholics Anonymous
offers support to those suffering from alcoholism. But even as members of a subculture band
together, they still identify with and participate in the larger society.

Consumption Subcultures
Subcultures, such as college students, can develop in response to people’s interests, similarities,
and behaviours that allow marketing professionals to design specific products for them. You
have probably heard of the sneakerhead subculture, people who in engage in extreme types of
sports such as helicopter skiing, or people who play the fantasy game Dungeons and
Dragons. Many people might be surprised to know that the Hipster subculture dates back to the
early 1900’s and is a unique subculture that has evolved over the last century.

Race & Ethnicity as Subcultures

When subcultures are discussed in the context of race, ethnicity, and gender, it’s important to
first understand these concepts clearly.
The terms race and ethnicity are similar and there is a degree of overlap between them. The
average person frequently uses the terms “race” and “ethnicity” interchangeably as synonyms
and anthropologists also recognize that race and ethnicity are overlapping concepts. Both race
and ethnic identity draw on an identification with others based on common ancestry and shared
cultural traits. A race is a social construction that defines groups of humans based on arbitrary
physical and/or biological traits that are believed to distinguish them from other humans.
An ethnic group, on the other hand, claims a distinct identity based on cultural characteristics
and a shared ancestry that are believed to give its members a unique sense of peoplehood or
heritage. The cultural characteristics used to define ethnic groups vary; they include specific
languages spoken, religions practiced, and distinct patterns of dress, diet, customs, holidays, and
other markers of distinction. In some societies, ethnic groups are geographically concentrated in
particular regions, as with the Kurds in Turkey and Iraq and the Basques in northern Spain.
Many individuals view their ethnicity as an important element of their personal and social
identity. Numerous psychological, social, and familial factors play a role in ethnicity, and ethnic
identity is most accurately understood as a range or continuum populated by people at every
point. One’s sense of ethnicity can also fluctuate across time. Children of Korean immigrants
living in an overwhelmingly white town, for example, may choose to self-identify simply as
“American” during their middle school and high school years to fit in with their classmates and
then choose to self-identify as “Korean,” “Korean American,” or “Asian American” in college or
later in life as their social settings change or from a desire to connect more strongly with their
family history and heritage. Do you consider your ethnicity an important part of your identity?
Why do you feel the way you do?
A few traditions, such as favorite family recipes or distinct customs associated with the
celebration of a holiday, that originated in their homelands may be retained by family members
across generations, reinforcing a sense of ethnic heritage and identity today. More recent
immigrants are likely to retain more of the language and cultural traditions of their countries of
origin. Non-European immigrants groups from Asia, Africa, the Middle East, Latin America, and
the Caribbean also experience significant linguistic and cultural losses over generations, but may
also continue to self-identify with their ethnic backgrounds if they do not feel fully incorporated
into U.S, society because they “stick out” physically from Euro-American society and experience
prejudice and discrimination. Psychological, sociological, and anthropological studies have
indicated that retaining a strong sense of ethnic pride and identification is common among ethnic
minorities in the United States and other nations as a means of coping with and overcoming
societal bigotry.

High Culture & Pop Culture

Do you prefer listening to opera or hip hop music? Do you like watching horse racing or
NASCAR? Do you read books of poetry or celebrity magazines? In each pair, one type of
entertainment is considered high-brow and the other low-brow. Sociologists use the term high
culture to describe the pattern of cultural experiences and attitudes that exist in the highest class
segments of a society. People often associate high culture with intellectualism, political power,
and prestige. In America, high culture also tends to be associated with wealth. Events considered
high culture can be expensive and formal—attending a ballet, seeing a play, or listening to a live
symphony performance.

The term popular culture refers to the pattern of cultural experiences and attitudes that exist in
mainstream society. Popular culture events might include a parade, a soccer (football) game, or
the season finale of a television show. Rock and pop music—“pop” is short for “popular”—are
part of popular culture. Popular culture is often expressed and spread via commercial media such
as radio, television, movies, the music industry, publishers, and corporate-run websites. Popular
culture is known and accessible to most people: you can share a discussion of favorite football
teams with a new coworker or comment on Game of Thrones (or another popular show) when
making small talk in line at the grocery store. But if you tried to launch into a deep discussion on
the classical Greek play Antigone, few members of society today would be familiar with it.
Although high culture may be viewed as superior to popular culture, the labels of high culture
and popular culture vary over time and place. Shakespearean plays, considered pop culture when
they were written, are now part of our society’s high culture. Five hundred years from now, will
our descendants associate Breaking Bad with the cultural elite?

Counterculture
Sociologists distinguish subcultures from countercultures, which are a type of subculture that
rejects some of the larger culture’s norms and values. In contrast to subcultures, which operate
relatively smoothly within the larger society, countercultures might actively defy larger society
by developing their own set of rules and norms to live by, sometimes even creating communities
that operate outside of greater society.Subcultures exist in many shapes and forms within larger
cultural contexts. Members of a subculture are connected through a secondary set of values,
beliefs, experiences, identities, and preferences. Both cultures and subcultures are always
evolving as new technologies are developed, ideas are shared, and identities (re)form. Marketers
who target specific subcultures should identify the specific characteristics, preferences, and
attributes that are valued by its members.

Lesson No. 2. Types of Subcultures

Based on the varying criteria, there can be different types of sub-cultures. The important
subcultural categories are nationality, geographical location, religion, race and caste, gender and
age. From a marketing perspective, these could also be discussed as market segments, which
need to be studied and assessed carefully before deciding on a product/service offering and
formulating a marketing mix for a particular segment(s).

- Nationality: Sub-cultures could be based on nationality. While we are all Asians, we are
distinct with respect to culture, and are different in terms of language, customs and traditions etc.
Thus, we are classified as Indians, Burmese, Nepalese, Pakistani etc.
- Geographical location: Within a country, we could be different across geography, climatic
conditions, regions and terrains, and density of population. This is more so in cases where the
country is large and borders spread across a huge population occupying a vast territory. People
tend to develop regional affinity and identification, and this gets reflected in the food they eat,
clothes they wear, interests they pursue, etc. They constitute as distinct sub-cultures and people
across such sub-cultures are different to each other. For example, we can be classified as North
Indians and South Indians. As consumers, our needs are different and would translate into
various wants, for example, i) differences in food habits, and demand for poori-sabji, paratha,
idli-vada etc.; or ii) differences in clothing, and demand for cottons, woolens and silk.

- Religion: People also exhibit differences when it comes to the religions that they belong to.
Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from one another and have
different values and beliefs, customs and traditions etc. As consumers, they make purchase
choices and purchase decisions that are influenced by the dictates of their religious leaders,
scriptures, and holy books. In fact, many products/services are symbolically and ritualistically
associated with religion. For example, as per Islam, non-vegetarian food must be “Halal”, and
this itself comprises a huge segment that marketers across national boundaries are catering to.

- Race and caste: Culture and its components also vary across race and caste. Jats, Jaats,
Rajputs, Pathans and Yadavs are all different from one another. Such racial sub-cultures also
impact buying behavior and consumption patterns. - Gender: Because gender roles have an
impact on acts of behavior, gender constitutes an important cultural sub-group. Males and
females across all cultures are assigned different traits and characteristics that make them
masculine and feminine. They also perform different roles in society and are two distinct sub-
groups. It is true that gender roles have got blurred, and both men and women are performing
such roles that they did not perform earlier. Product usage is common to both man and woman;
for example, a man shown as using a LG washing machine or making Act II popcorn. Similarly
products like shavers and razors exclusive to usage by men, are also being used by women
(Gillette thus introduced a razor for women). All this has brought about a big socio-economic
change and led to cultural transformation. The values espoused by the generation of today is
much different to the one espoused by the previous generation.

The pace of change has been further accelerated with households no longer being single income
households, but turned to dual-income households. The role of women is no longer restricted to
bearing children and managing the home. Women have started working outside, and are
contributing to household income. This has impacted consumer needs and wants as also the
priorities. The impact is evinced on consumption behavior, where the ‘decider’ role is no longer
confined to a single person, i.e. the man of the family. Today buying decisions are jointly taken
by husband and wife.

- Age: Infants, kids, teenagers and adolescents, adults and the aged, may all be looked up as
distinct sub-groups. They have different values and beliefs, and all this impacts upon their
priorities in life. Daily lifestyles, activities and interests, fashion and accessories, food and diet,
etc. receive varying priorities across the various sub-groups. For example, an aged person would
prioritize health and go in for nutritious home food as opposed to young man who would
prioritize work and go in for fast food. Today we see a rising trend amongst kids, adolescents
and the young towards junk food, and they constitute a lucrative segment for restaurants
providing fast food.

Marketing to Cultures and Subcultures

Accumulation of behaviors, beliefs, values and other information passed along from one

generation to the next creates a distinct, identifiable culture.  This culture pervades nearly every
facet of life, including interaction with others, the type of foods eaten, the legal system governing
civil and social interactions, the symbolism and celebrations that define personal, religious
and other group practices and rituals, and the teaching and learning characteristics of education. 
Culture also encompasses core values and behaviors that exist in a society.

Culture and Marketing

Since culture permeates so much of our daily lives, it makes sense that consumer behavior is
influenced by culture.  Successful international marketers must understand the differences in
cultures and the methods they should employ to influence product mix decisions and consumer
demand.  International marketers who go to market blind to cultural differences may fail
miserably.

Subcultures
Subcultures are groups of people within a culture who share similar beliefs, values, buying
preferences and buying habits.  A subculture can be based on regional, racial, religious or some
other characteristics.  For example, the U.S. has many subcultures, such as vegetarians, blue
collar and white collar workers, and Asian, Arabic, black and white Americans.  Members of
subcultures have specific characteristics and beliefs that give them unique preferences for
specific diets, clothes, products and services.

Ethnic and Racial Subcultures

Members of subcultures tend to respond differently to advertising.  People who belong to one or
more subcultures may have stronger affinities to one subculture than to another.   Therefore, they
may have feelings and beliefs stronger or weaker to specific values than other members of the
same subculture.

Racial subcultures can be small, large, increasing or decreasing in size.  They may speak another
language other than English.  Some members of subcultures may require language translation
services, while others will speak English fluently.  In the U.S., the number of people belonging
to an ethnic or racial subculture is growing.  In less than 30 years, the percentage of people
belonging to a racial or ethnic profile is expected to comprise half of the U.S. population, with
Hispanics, Africans and Asians leading the numbers.  Today, more than half of the children
under 5 years of age belong to a minority subculture.  The increasing size of minority subcultures
offers new challenges and opportunities for marketers.  With the differing needs and desires of
subcultures, marketers realize that they must adapt and find ways to target these
important subcultures.

The Importance Of Culture In Marketing

Marketing. From whichever angle you want to take it, its about understanding. It’s your product
or service, solving a consumer problem. That takes an understanding of a) the consumer b) the
problem c) how to solve it and d) your competitors. This understanding is deeply rooted in
knowledge of the culture in which your target audience is situated.

Culture has a huge effect on consumer behaviours. It is what determines why certain products
sell well amongst certain ages, nationalities and businesses but not in others.  It’s what actually
moulds target audiences. At a global scale, what is sells well in the Western world, may not in
the Middle East. What is a successful advertising technique in Australia, may be complete flop in
Japan. American’s respond well to big bold advertising, the British, not. There is a market for
skin whitening products in Asian countries, but are much less popular in the West, and the
funnily enough, the market for sunscreen is not that great in the Middle East.

Consumer behaviours vary from country to country, based on socio-economic factors,

geographic and political influences as well as social history and traditions.  Consumer behaviours
are as varied as the very cultures they emerge from. Without even crossing borders in other
countries, culture evolves consumer behaviour in-country, especially in geographically
expansive ones. Consumers differ in age, in beliefs, in socio-economic status, in education, in
sex, in religious preferences and although united by a common ‘culture’, such individual-specific
variation have the ability to influence their buying behaviour and exposure to marketing
techniques. That sees the rise of multiple sub-cultures within an umbrella culture; consumers
affiliated with that sub-cultural more than likely needing a completely different kind of
marketing strategy to a completely different problem.

With such variation how on each do you even find a target audience? The great thing is, us
human beings like to group together; we like to be part of a common, part of a group, its how we
feel secure in our identity; and that is the whole premise behind ‘trends’ and ‘movements’ be it
in fashion, food consumption or political affiliations. As social creatures, collective identity
gives us a sense of belonging and security. You see, although there is an infinite opportunity for
each and every human being to be autonomous, there is safety in numbers; and that is how
general cultures come into play.

Whilst there are hundreds of extremely different cultures with different consumer economies
across the globe, that is not to say that trends don’t transcend cultural difference. The ability to
establish a brand across continents regardless of stark cultural differences requires serious
investment in market  and consumer research, and of course, a very sellable product. Facebook
for example is successful globally, regardless of race, ethnicity, religion and age. Starbucks has
cleverly adapted their franchise to mould to different cultures, from America, to Vietnam, to
Italy. Same goes for another giant, Cadbury. Their marketing is specifically adapted to suit the
the cultural norms of the consumer; from their advertising to their chocolate bar flavours. These
kinds of adaptations aren’t just happening on a global scale either; depending on how specific a
target audience your business has, adaptations to appeal to the end user have to be on a micro-
scale. Promoting Devonshire scones in Cornwall would, for example be catastrophically bad for
business.

And there you have it, culture really is the driving force behind consumer behaviours and with its
ever fluid nature and endless sub-culture formation, investing heavily in target audience research
is essential in the world of marketing.

Lesson No. 3. Subculture in Marketing

Marketing to Cultures and Subcultures

Accumulation of behaviors, beliefs, values and other information passed along from one
generation to the next creates a distinct, identifiable culture. This culture pervades nearly every
facet of life, including interaction with others, the type of foods eaten, the legal system governing
civil and social interactions, the symbolism and celebrations that define personal, religious and
other group practices and rituals, and the teaching and learning characteristics of education.
Culture also encompasses core values and behaviors that exist in a society.

Culture and Marketing

Since culture permeates so much of our daily lives, it makes sense that consumer behavior is
influenced by culture. Successful international marketers must understand the differences in
cultures and the methods they should employ to influence product mix decisions and consumer
demand. International marketers who go to market blind to cultural differences may fail
miserably.

Subcultures
Subcultures are groups of people within a culture who share similar beliefs, values, buying
preferences and buying habits. A subculture can be based on regional, racial, religious or some
other characteristics. For example, the U.S. has many subcultures, such as vegetarians, blue
collar and white collar workers, and Asian, Arabic, black and white Americans. Members of
subcultures have specific characteristics and beliefs that give them unique preferences for
specific diets, clothes, products and services.

Ethnic and Racial Subcultures

Members of subcultures tend to respond differently to advertising. People who belong to one or
more subcultures may have stronger affinities to one subculture than to another. Therefore, they
may have feelings and beliefs stronger or weaker to specific values than other members of the
same subculture.

Racial subcultures can be small, large, increasing or decreasing in size. They may speak another
language other than English. Some members of subcultures may require language translation
services, while others will speak English fluently. In the U.S., the number of people belonging
to an ethnic or racial subculture is growing. In less than 30 years, the percentage of people
belonging to a racial or ethnic profile is expected to comprise half of the U.S. population, with
Hispanics, Africans and Asians leading the numbers. Today, more than half of the children
under 5 years of age belong to a minority subculture. The increasing size of minority subcultures
offers new challenges and opportunities for marketers. With the differing needs and desires of
subcultures, marketers realize that they must adapt and find ways to target these important
subcultures.

Subculture: A Bargain Concept in Marketing Education

Marketing educators have expanded the concept of subculture to the point that it is difficult for
students to understand its true meaning and appreciate the efficacy and limits of subculture as a
marketing tool. This paper examines the roots of subculture and the many definitions and
meanings attached to subculture in marketing education. The authors discuss the confusion
resulting from a subculture concept that has become “spongy” and absorbed many meanings and
definitions, although few applications. An attempt is made to reduce the confusion by specifying
what a subculture is, what it is not, and why, and when the subculture concept is relevant to
marketing.

A review of marketing and consumer behavior textbooks and literature reveals that the term
subculture has long been used, misused, and overused. In marketing education, it has become
intellectually stylish to discover subcultures everywhere. This trend is not new. Valentine long
ago developed a partial inventory of social categories that continue to be labeled as subcultures.

The list only begins with (1) socioeconomic strata such as the lower class or the poor. It goes on
to include (2) ethnic collectives, e.g., Negroes, Jews; (3) regional populations, Southerners,
Midwesterners; (4) age, grades, adolescents, youth; (5) community types, urban, rural; (6)
institutional complexes, education, penal establishments; (7) occupational groupings various
professions; (8) religious bodies Catholics, Muslims, and even (9) political entities revolutionary
groups, for example. Yet this does not exhaust the catalog, for one also finds (10) genera of
intellectual orientation, such as “scientists” and “intellectuals”; (11) units that are really
behavioral classes, mainly various kinds of “deviants”; and (12) what are really categories of
moral evaluation, ranging from “respectable” to the “disreputable” and the “unworthy” poor
(Valentine 1968, p. 105).
Marketers’ recent additions to Valentine’s age groups range far and wide: “Pre-depression
Generation,” “Depression Generation,” “Baby Boomers,” “Baby Busters,” “Generation X,”
“Generation Y,” (Hawkins, Mothersbaugh, and Best 2007, pp. 126–134) and “senior citizens”
subcultures (Arnould, Price, and Zinkhan 2002, p. 209). Other potential new categories for
Valentine’s list from research and texts are: sexual orientation groups: “gay,” “lesbian”; style or
attitude groups: “punk”; activity-based groups: snowboarders, golfers, home beer brewers
(Hawkins, Mothersbaugh, and Best 2007, pp. 97–98, 230), “Netizens,” “Star Trekkers”
(Solomon 2007, pp. 485– 486); and consumption groups: Harley Davidson bikers (Schouten and
McAlexander 1995). This careless usage of the subculture concept whenever the authors wish to
emphasize the normative aspects of group behaviors that are different from some general
standards or the socialpsychological dimensions of groups has resulted in a broadening of the
term, blurring the meaning of the term, and the classic “failure frequently to distinguish between
two levels of social causation” (Yinger 1960, p. 626).

Confusion and concept expansion may be natural, although pernicious, parts of discipline
evolution, but they have added little to marketing practice, thought, or education. Kaufman
(1971) observed that as it becomes increasingly difficult to keep up with developments in a field
of study, many participants in theory, theory verification, practice, and education feel a need for
“bargain words that cost little or no study and can be used in a great variety of contexts with an
air of expertise” (Kaufman 1971, p. xlviii). Bargain words, and the concepts they represent, can
create confusion, cast doubt on research findings, make replications suspect, and make it difficult
for students to become familiar with and master a discipline. These concepts often accomplish
little beyond being filler in textbooks and material for tests of undergraduate students. As the
number of bargain concepts increases, the discipline and concepts therein become “spongy”1 and
raise the question of the intellectual commitment of those responsible for knowledge creation
and transmission.

Marketing, as most disciplines, has its share of bargain words and concepts in research and
education. For example, the use of sex and gender has caused research confusion (Borna and
White, 2003). Moreover, descriptions of backward bending demand curves, prestige pricing, and
demand curve shifts have all been used carelessly creating misinformation that has found its way
into generations of marketing textbooks (Kumcu and McClure 2003; Stearns and Borna 2005;
McClure 2005). The following sections consider misuses of and confusion surrounding the use
of subculture in marketing and consumer behavior. We discuss the causes of confusion, show
how subculture, as currently presented in the discipline, is accomplishing little, and make
recommendations for changing the focus of subculture with the hope of making marketing
education and marketing theory more precise and, therefore, more efficacious.

Subculture and Marketing

The concept of subculture has attracted the interests of marketers and marketing educators
primarily because, from conceptual and empirical points of view, subcultures may be relevant
units of analysis for market research. Subcultures potentially represent definable segments for
specific products and logical units for the possible segmenting of larger heterogeneous markets.
When carrying out such analyses, researchers must be certain that this concept, borrowed from
sociology and anthropology, satisfies the criteria of segmentation. A marketing axiom is that a
segment should be actionable. For a segment to be actionable, it must be identifiable, substantial,
accessible, and stable. If a segment comes up short on the relevant segmentation criteria, it will
lead to faulty messaging and other marketing mix failures. Although some would argue that
understanding subcultures gives insight into culture, and therefore has marketing implications,
those implications ultimately funnel back to the efficacy of the concept for segmentation,
targeting, and positioning.

Subcultures can represent huge opportunities for marketers to make a significant impact within a
population that may feel underserved by companies operating in the mainstream market.
Individuals with strong subcultural identity are likely to welcome organizations that seem to
understand them, speak their subcultural language, and satisfy their subculture-specific needs.

In the United States, many organizations and marketing activities focus on major ethnicity-based
subcultures such as Latinos, Asian Americans, and African Americans. Each subculture has
distinct experiences living and working within the broader U.S. culture, and it has shared
customs and values that shape their consumer needs and preferences. As each of these
subcultures grows in size and buying power, they become a distinct market for companies to
woo.

A noted example of effective marketing to a subculture is Ford Motor Company’s approach to

serving the African American community. Ford invests in advertising campaigns that specifically
target the black community and celebrate its diversity. Ford supports a number of scholarship
and community-building programs at historically black colleges and universities (HBCUs).
Through public relations activities, Ford maintains a presence at significant events, such as the
Essence Festival and the BET Awards.

Social Class
Some manifestation of social class is present in virtually every society. It’s determined by a
combination of factors including family background, wealth, income, education, occupation,
power, and prestige. Like culture, it affects consumer behavior by shaping individuals’
perceptions of their needs and wants. People in the same social class tend to have similar
attitudes, live in similar neighborhoods, attend the same schools, have similar tastes in fashion,
and shop at the same types of stores.

In some nations, the social class system is quite rigid, and people are strongly encouraged to stay
within their own class for friendships, marriage, career, and other life decisions. In other
countries, such as the United States, social class is more permeable, and people can move
between classes more easily based on their circumstances, behaviors, and life choices. Social
class mobility is an important value in mainstream American culture and is part of our collective
belief system about what makes the nation great.
For marketers, social class may be a useful factor to consider in segmentation and targeting. It
provides helpful context about how consumers view themselves and their peer groups, their
expectations, life experiences, income levels, and the kinds of challenges they face. For example,
if a marketer wishes to target efforts toward the upper classes, they should realize that, first, this
is a very small proportion of the population, and second, the market offering must be designed to
meet their high expectations in terms of quality, service, and atmosphere. Having enough money
is a persistent concern for people in the lower, working, and lower middle classes, so price
sensitivity and value for the money are important for products targeting these groups.

Reference Groups
Consumer behavior can be influenced by the groups a person comes into contact with, through
friendship, face-to-face interaction, and even indirect contact. Marketers often call these
reference groups. A reference group may be either a formal or informal group. Examples include
churches, clubs, schools, online social networks, play groups, professional groups, and even a
group of friends and acquaintances. Individuals may be influenced by the groups of which they
are members. They may also be influenced by aspirational groups–a reference group a person
hopes to belong to one day, such as young boys hoping to grow up and become Major League
Soccer (MLS) players.

Reference groups are characterized by having individuals who are opinion leaders for the group.
Opinion leaders are people who influence others. They are not necessarily higher-income or
better educated, but others may view them as having greater expertise, broader experience, or
deeper knowledge of a topic. For example, a local high school teacher may be an opinion leader
for parents in selecting colleges for their children. In a group of girlfriends, one or two may be
the opinion leaders others look to for fashion guidance. These people set the trend and others
conform to the expressed behavior. If a marketer can identify the opinion leaders for a group in
the target market, then she can direct efforts towards attracting these people.

The reference group can influence an individual in several ways:

Role expectations: Reference groups prescribe a role or way of behaving based on the situation
and one’s position in that situation. For example, as a student, you are expected to behave in a
certain basic way under certain conditions when interacting with a reference group at school.

Conformity: Conformity the way we modify out behavior in order to fit in with group norms.
Norms are “normal” behavioral expectations that are considered appropriate within the group. To
illustrate, in a school lecture setting, you might conform to the group norm of raising your hand
to make a comment or question, rather than shouting out to the teacher.

Group communications through opinion leaders: As consumers, we are constantly seeking out
the advice of knowledgeable friends or acquaintances who can provide information, give advice,
or even make the decision for us. In some product categories, there are professional opinion
leaders who are easy to identify, such as auto mechanics, beauticians, stock brokers, or
physicians. In a school setting, an opinion leader might be a favorite teacher who does a good job
explaining the material, a popular administrator who communicates well with students and
parents, or a well-liked fellow student who is willing to assist when peers ask for help–or all of
these individuals.

Word-of-mouth influence: Consumers are influenced by the things they hear other people say.
This is “word-of-mouth” communication. It happens every time you ask someone for a
recommendation or an opinion about a product or service, and every time someone volunteers an
opinion. Do you know a good dentist? Where should we go for lunch? Have you heard that new
song from . . . ? Not surprisingly, research consistently shows that word-of-mouth information
from people they know is more credible than advertising and marketing messages. Word-of-
mouth influence in the school reference group example might include students discussing which
Spanish instructor is better, or where to shop for a dress to wear to the homecoming dance.

Reference groups and opinion leaders are essential concepts in digital marketing, where
consumers tap into a variety of social networks and online communities. Marketers need to
understand which reference groups influence their target segments and who the opinion leaders
within these groups are. Those leaders may be bloggers, individuals with many followers who
post frequently on various social media, and even people who write lots of online reviews. Then
marketing activity can focus on winning over the opinion leaders. If you manage to get the
opinion leaders in your segment to “like” your product, “follow” your brand, tweet about your
news and publish favorable reviews or comments on their blogs, your work with online reference
groups is going well. (You’ll recall from the module on ethics that this was the strategy
Microsoft adopted—and misgauged—when it attempted to influence opinion leaders with its
gifts of free laptops loaded with its latest operating system.)

Family
One of the most important reference groups for an individual is the family. A consumer’s family
has a major impact on attitude and behavior, and families themselves are critically important in
society as consumer units. Many consumer decisions are made by family members on behalf of
the family, so understanding the family consumer decision-making dynamics around your
product is essential.

Depending on the product or service under consideration, different family members may be in
the role of primary decision maker or influencer. In some cases, the husband is dominant, in
others the wife or children, and still other cases, families make joint decisions. Traditionally the
wife has made the primary decisions around store choice and brands for food and household
items, although this has evolved somewhat as more women participate in the workforce. A joint
decision is typical for purchases involving a larger sum of money, such as a refrigerator or a
vehicle. Teenagers may exercise a lot of influence over their own clothing purchases. Children
may heavily influence food and entertainment choices. Of course, decision dynamics within any
individual family can vary, but marketers need to understand the general tendencies around
family decision making for the product or service in question.

Lesson No. 4. Importance Of Subcultures For Marketers

A subculture is a group of people who share a set of secondary values, such as environmentalists.
Many factors can place an individual in one or several subcultures. People of a subculture are
part of a larger culture but also share a specific identity within a smaller group. Adjusting to
cultural differences is perhaps the most difficult task facing marketers who operate in other
countries. Before entering a foreign market, a company must decide to what extent it is willing to
customize its marketing efforts to accommodate each foreign market.
One of the key external factors and influences in the study consumer behaviour and marketing is
culture and subcultures. As indicated by the word, a subculture is a subset of the overall culture.
“A subculture is a distinct cultural group that exists as an identifiable segment within a larger,
more complex society.”
This means that a subculture is a “related” group of people WITHIN an overarching culture,
which shares common values and behaviours. As a result, consumers within subcultures will
have a perceived “sense of identity" and follow an “expected” set of behaviours. Because they
have will some unique behavioural characteristics, this means that subcultures can be used for
market segmentation purposes and become target markets, for the purpose of developing a
suitable marketing strategy.

Examples of Subcultures
The following diagram outlines some common examples of subcultures, which typically include:
Age cohorts = Baby Boomers, Generation X, Generation Y, etc. Gender and sexual preferences
and variations Country of birth and racial backgrounds = where they were born, born
internationally, first-generation, second-generation etc. Regional and state/province locations and
related lifestyles Differing religious beliefs, particularly those that strongly influence behaviour
and values Social class = upper, middle, lower class subculture examples For subculture to have
a strong influence on the consumer, the consumer needs to identify with, or perceive that they
belong to, the subculture. This influence is quite significant if the consumer regularly interacts
with others in those communities, as the subculture lifestyle, values and expected behaviours are
frequently reinforced.
How can marketers use subcultures? Advertising examples…
Here are some examples of brands targeting subcultures with their promotional messages:

Religious Subculture Example

In this simple example from Burger King, the short copy in the ad “Ramadan Kareem” roughly
translates to have a generous Ramadan.
This is supported by the image of mostly eaten burger, which then presents as the crescent moon.
Obviously the ingredients of the burger (the product) needs to be tailored for the target market as
well.
Age Cohort Subculture Example
This ad for a fitness centre clearly states that there are discounts for members who are 55 years +
and implies even greater discounts for people over 70 years.
Like many communications targeting this age cohort, people shown in the ad look relatively
“youthful and happy”, thereby appealing to the self-concept of people in this age group who are
looking for a suitable fitness centre.
But, as discussed below, this tailoring of the marketing mix to a specific age subculture may
alienate other target markets.

Example of Targeting a Sexual Orientation Subculture

This ad for Coors Light clearly targets the subculture for a lesbian sexual orientation.
You should note that the various words scattered in the ad are quite positive, and can apply to
BOTH the subculture identity and the product benefits as well.
For example, use of the words “energized”, “refreshing”, “expressive” etc. are designed to
connect the brand personality of the brand and the self-concept of members of the subculture.

Geographic and Age Subculture Example

The ad for Bud Light is a good example of targeting a regional subculture in their promotional
messages.
The added attempts to portray typical consumers in that region, being reflective of clothing and a
fun lifestyle and personality.
The consumers betrayed in the ad are young adults, which is also a reflective of an age cohort
subculture.

Consumers can Belong to Multiple Subcultures

A consumer may belong to multiple subcultures, not just one as possibly implied by this
diagram.
In this example, a consumer might be: female, in Generation Y, born in South-East Asia, now
living in a major city Western Europe, and be middle social class – as highlighted.
As a result, this consumer has multiple subculture influences. Clearly, some of these influences
will be stronger than others, however that does not reduce the power of using a subculture as a
potential target market, where one or two of these subcultures combined could be utilized to
form the target segment.

Culture and Subcultures are interrelated

As part of understanding subculture influences, remember that most culturally diverse societies
are defined as “societies in which each subculture has its own unique traits but still shares the
dominant traits of the overall culture”.
While subcultures are smaller parts of the overall culture with their own distinct behaviors and
norms, but they also contribute to the overall culture. This occurs as consumers are members of
both the overall culture and of one or more subcultures. Keep in mind that while subcultures are
subsets of the overall culture, they are not separate to the overall culture

The role of cryptic marketing

One of the risks of brands targeting well-defined target markets is that these marketing actions
may alienate consumers in the broader culture (not part of the subculture).
This was highlighted in the age cohort focused fitness centre ad example discussed above. As
suggested, overly targeting one subculture potentially runs the risk of damaging the brand with
other target markets and/or subcultures, as they may feel that the brand is no longer for them.
A subculture is a smaller culture with a shared collection of beliefs, values, traditions, and rituals
within a larger culture.

SUBCULTURES AND MENTAL HEALTH Subculture can be important in mental health

care because subcultures sometimes develop their own communication styles and social norms.
Mental health professionals should be mindful of any subcultures a person belongs to when
treating them, especially as they relate to a person’s identity. Certain behaviour or values may be
mistakenly anthologized by people or groups outside of that subculture. Also, certain subcultures
may face discrimination from the majority group.
While subcultures are smaller parts of the overall culture with their own distinct behaviours and
norms, but they also contribute to the overall culture. This occurs as consumers are members of
both the overall culture and of one or more subcultures. Keep in mind that while subcultures are
subsets of the overall culture, they are not separate to the overall culture.
Subcultures are cohesive groups that exist within a larger culture. Subcultures develop around
communities that share common values, beliefs, and experiences. They may be based on a
variety of different unifying factors. For example, subcultures exist around the following:
Geography: Southerners, Texans, Californians, New Englanders, midwesterners, etc. Ethnicity:
Latinos, Asian Americans, African Americans, etc. Religion: Catholics, Jews, Mormons,
Baptists, Muslims, etc. Nationality: Italians, Koreans, Hungarians, Japanese, Ethiopians, etc.
Occupation: military, technology worker, state department, clergy, educator, etc.
Subcultures can represent huge opportunities for marketers to make a significant impact within a
population that may feel underserved by companies operating in the mainstream market.
Individuals with strong subcultural identity are likely to welcome organizations that seem to
understand them, speak their subcultural language, and satisfy their subculture-specific needs.
A noted example of effective marketing to a subculture is Ford Motor Company’s approach to
serving the African American community. Ford invests in advertising campaigns that specifically
target the black community and celebrate its diversity. Ford supports a number of scholarship
and community-building programs at historically black colleges and universities (HBCUs).
Through public relations activities, Ford maintains a presence at significant events, such as the
Essence Festival and the BET Awards.
Social Class For marketers
social class may be a useful factor to consider in segmentation and targeting. It provides helpful
context about how consumers view themselves and their peer groups, their expectations, life
experiences, income levels, and the kinds of challenges they face. For example, if a marketer
wishes to target efforts toward the upper classes, they should realize that, first, this is a very
small proportion of the population, and second, the market offering must be designed to meet
their high expectations in terms of quality, service, and atmosphere. Having enough money is a
persistent concern for people in the lower, working, and lower middle classes, so price sensitivity
and value for the money are important for products targeting these groups.
Reference Groups Consumer behaviour can be influenced by the groups a person comes into
contact with, through friendship, face-to-face interaction, and even indirect contact. Marketers
often call these reference groups. A reference group may be either a formal or informal group.
Examples include churches, clubs, schools, online social networks, play groups, professional
groups, and even a group of friends and acquaintances. Individuals may be influenced by the
groups of which they are members. They may also be influenced by aspirational groups–a
reference group a person hopes to belong to one day, such as young boys hoping to grow up and
become Major League Soccer (MLS) players.

Family
One of the most important reference groups for an individual is the family. A consumer’s family
has a major impact on attitude and behaviour, and families themselves are critically important in
society as consumer units. Many consumer decisions are made by family members on behalf of
the family, so understanding the family consumer decision-making dynamics around your
product is essential.
Subcultural identity allows identification of an individual into a particular social group within
society; semiotic ally, behaviourally & ideologically. It “gives alternative interpretations and
values to young people’s subordinate status; it reinterprets the social world”
The significance of a person’s clothing, behaviour or belief system is incredibly important when
belonging to a particular group. “Every object may be viewed as a sign”
However, in modern day subcultures, it could be argued that there are now overlaps between
subcultural signifiers, be it stylistically or behaviourally. “Many accounts of post-war youth
subcultures have also overlooked the dynamic quality to their styles”
Subculture is defined as a distinct cultural group that exists as an identifiable segment within a
larger, more complex society (Schiffman&Kanuk 1991). Schiffman and Kanuk (1991) further
state that the members of a subculture usually possess beliefs, values and customs that are
distinct from other members of the same society. Two distinct elements exist in a culture that
includes: (1) the unique beliefs, values and customs pertaining to the specific subculture and (2)
the central or core theme within a culture that are common to most of the population. As an
example, lets look at the African and Hispanic American subcultures. Each subculture has its
own unique norms, traits and orientation. However, both groups still share the dominant traits of
the American culture. Therefore, it is important to note that the advent of subcultural research
enables the practitioner to have a microscopic look at smaller market segments and maximize
profits in today's competitive yet fragmented market place (Schiffman&Kanuk 1991). Notably,
this will allow the marketer to better understand the distinctive beliefs, values and customs that
separate subcultures from the larger more homogeneous society. It is important to note that
"subculture" is derived from and related to the term "culture". The concept "culture" must
therefore be understood in order to properly investigate the proposed topic of concern,
"subculture". Gerth and Mills (1973) state that culture is one of the most spongious words in
social science. However, they believe it is equally and enormously useful. The concept of
"culture" is more a loose reference to social milieu than an adequate idea of social structure
(Gerth& Mills 1973). The term is very ambiguous and this proves to be a double-edged
advantage for academics and observers. Consequently, one can easily structure the term to apply
to the situation or problem at hand. Additionally, the terms culture and structure are two terms
that sociologists use and study interchangeably to describe social interactions of mankind (Gerth
and Mills 1973). However, Clarke (1974) contends that the two concepts are different. He states
that the styles of the two are clearly different because the structural perspective looks at social
events and the cultural perspective looks into the analysis of meaning. It should naturally follow
that when examining 'subculture', we are looking at an organized set of meanings that
presumably bear some relation to a larger more inclusive set called 'culture'. Clarke (1974) views
the term 'subculture' as having some underlying utility even if it is coupled with a superficial lack
of clarity. He analyses the underlying validity of the concept of subculture by looking at three
issues:
(1) the general issue of culture and structure as perspectives on social problems and differences,
(2) the problem of the definition of the boundaries of a subculture and
(3) the question of the genesis, maintenance and change of subcultures.
Clark (1974) states that very little attention has been given to whether 'subculture' is a useful
concept, whether it should be abandoned or broken into components for clearer understanding
and analyses.

As a result, this consumer has multiple subculture influences. Clearly, some of these influences
will be stronger than others, however that does not reduce the power of using a subculture as a
potential target market, where one or two of these subcultures combined could be utilized to
form the target segment. As part of understanding subculture influences, remember that most
culturally diverse societies are defined as “societies in which each subculture has its own unique
traits but still shares the dominant traits of the overall culture”.

ELVIS B. LUMANGLAS, MDM

Course Instructor
ACADEMIC INFRASTRUCTURE
Textbook
T1 : Phillips, Jean M., Organizational Behavior Tools for Success,
International Edition, 2014 Wadsworth, Cengage Learning

References:
R1 : Newstrom, John W., 2007. Organizational Behavior; Human
Behavior at Work, McGraw Hill International Edition,
R2 : Medina, Roberto G. 2011. Human Behavior in Organization.
Quezon City: Rex Bookstore, Inc.

Online References:
https://kpu.pressbooks.pub/introconsumerbehaviour/chapter/subcultures/#:~:text=A
%20subculture%20is%20a%20group,identity%20within%20a%20smaller%20group.
https://nptel.ac.in/content/storage2/courses/110105029//pdf%20sahany/module%207l-35.pdf
https://www.ebookbou.edu.bd/Books/Text/SOB/MBA/mba_4321/Unit-05.pdf