Sociocultural Forces

1
Sociocultural Forces
Text p75

• The influences in a society and its culture(s)
  that change peoples attitudes, beliefs, norms,
  customs, and lifestyles.

Examples

• Demographic diversity characteristics
• Age, gender, race, ethnicity
• Marital/parental status, income, education
• Cultural Values
• Health, Family, Environment
• Consumerism- efforts to protect consumers rights

2
Demographic Forces Influence Consumer Demand
Social Forces
Personnel
Demographics
Political Legal
Product
Needs Consumer Wants
Finance
Technology
Distr.
Price
Natural Resources
Acctg
Promotion
Production
Monopoly . . . . . . Pure Competition
Economics
3

Demography

• The study of the size, composition, and
  distribution of population in relation to social
  factors such as geographic boundaries.

Population Trends Age trends Family
Household Trends Education Trends
Relevant for Market segmentation
Negative (-)
Positive ()
See census.usatoday.com or www.census.gov
4
Population TrendsWorld Population Growth
2000 6.1 billion
Billions of people
1930 2 billion
1820 1 billion
5
Population Time Bomb
?
4.4 of world pop. 3.8
299 mil (2005)
6
Thought Leadership and the Future of the MBA
Application example
Globalization MBA Competition
Asia?
Population Age 25-29
Northern America
Western Europe
Demographics
Source U.S. Bureau of the Census, International
Database
7
Thought Leadership and the Future of the MBA
Application example
Forecasting Impact of the Economy
Source Doti, J.L. Tuggle, F. D. (July/August,
2005)
8
Population Trends State Rank by Population Size

• [phone]_2005
• 1 California 36,132 6.7
• 2 Texas 22,860 9.6
• 3 New York 19,254 1.5
• 4 Florida 17,790 11.5
• 6 Pennsylvania 12,429 1.2
• 50 Wyoming 509 3.1

?
www.census.gov/compendia/ (19July06)
9
State Rank by Population Growth Rate

• [phone]-2005
• 1 Nevada 2,415 20.8
• 2 Arizona 5,939 15.8
• 3 Florida 17,790 11.3
• 4 Georgia 9,073 10.8
• 46 Pennsylvania 12,249 1.2
• 48 Massachusetts 6,399
  .8
• 49 W. Virginia 1,817
  .5
• 50 N. Dakota 630 -
  .9
• USA avg. 296,410 5.3

?
(www.census.gov/compendia/statab/files/statepop.ht
ml 19july06
10
Population County Growth

• (000) 2005
  2000-2005
• Pennsylvania 12,429 1.2
• Columbia 64.9 1.2
• Luzerne 312.8 - 2.0
• Lackawanna 209.5 - 1.8
• Monroe 163.2 17.7
• Schuylkill 147.4 - 1.9
• Lancaster 490.5 4.2

(www.census.gov/compendia/statab/files/statepop.ht
ml 19july06

• Nov. 2000 G. Bush won 78 of USA counties equal
  to 81 of USA acreage (Rural vs urban consumer
  behavior)

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Revolving Doors
Metro Areas Migration Gains Losses

• [phone]-2000
• 1 Las Vegas, NV 1,563 83
• 2 Naples, Fl 251 65
  
• 3 Yuma, AZ 160 49
• 3 Utica-Rome,NY 299 - 5.3
• 2 Grand Forks,ND 97 - 5.5
• 1 Steubenville,Oh 132 - 7.4

Mobility 1 in 5 persons move each year (NE to
S/SW)
Monstermoving.com
12
Urbanization, (an Ecological Threat?)

• Mega cities 2000
• 1 Tokyo 28 mil.
• 2 Sao Paulo 22.6
• 3 Bombay 18.1
• 5 Shanghai 17.4
• 6 New York 16.6
• 76 of Americans live in 284 Metro areas (1995)
• Population density, congestion,
  infrastructure water waste, pollution

s
13
Age Trends
Marketing to changing demographics
14
U.S. Life Expectancy (at birth)
Source Social Security 1998
Median age 30 31 36
42
?
Getting Older
15
Living Longer
Women are less susceptible to disease. Health
care 15 US GDP
Oster, Christopher. Congrats! Insurers Extend
Your Lifespan. WSJ, June 24, 2003
16
U.S. Population Distribution by Age Segments for
2004
76M born 1945 - 1964 Baby Boomers
77M born 1980 - 1999
Millions
17
U.S. Population Redistributed by Age Segments for
2004
?
19yrs
19yrs
6 yrs

• Age Group Under 5 5-17 18-24 25-44
  45-64 65

Size Spend
Highest income
6.8 18.1 9.0 29.6 24.1 12.4
Percent of population in this age group
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Spenders and Savers as a Percentage of Total
Population 1965 to 2025
Application example
40
35
Spenders ( Age 20 to 44)
30
Percent
25
Savers ( Age 45 to 64)
20
15
1965 1970 1975 1980 1985
1990 1995 2000 2005 2010
2015 2020 2025

Year
SOURCE Based on data from U.S. Bureau of the
Census, Population Paper Listings PPL. 41,
Current Population Reports P25-1130, U.S. Census
of Population (1970), volume 1, Part B, Census of
Population (1980) volume 1, part B.
19
Identifying Age Segments in the U.S.
Age cohorts people of similar age, experience
similar..
20
IdentifyingBoomers, X ers and Y ers
FYI
Baby Baby Echo Boomers
Busters Boomers
Gen X Gen Y
Musicians Beatles, Elvis, Nirvana,
REM, NSYNC, Britney Spears, Beach Boys
Prince, U2 Matchbox 20, Kid Rock TV
Channels 3 60 Hundreds TV
Idols Frakie Avalon Farah
Fawcett Jennifer Love Hewitt Annette Funichello
Shaun Cassidy Leonardo DiCaprio Childhood
TV Leave it to Beaver Dukes of
Hazzard Saved by the Bell Popular TV Shows Taxi,
MASH 90210, Friends Felicity,
Dawsons Creek Concerns Nuclear War
Environment Human Rights
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U.S. Population Projections By Race
Text p77 Fig 3.3
Total (2010) 67.7 12.6
13.5 6.2 White Black
Hispanic Other Median Ages 38.1
30.3 26.5 32.0
Source U.S. Bureau of the Census, Statistical
Abstract of the United States, 2000 Reed
Business Info, July 11, 2005.
22
?
?
?
?
Demographic projections paint a portrait of the
future USA.

• Source Anderson, Doug.Multi-Cultural Marketing
  in the U.S. Shifting Ethnic Populations.
  Nielson October 2008, Issue 11.

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Family(Two or more people living together
related by blood or marriage) Household
Trends
?
- Average family size 3.18 (household size
2.6)
- One person households (10, 1950) (25,
2000)
JUST MARRIED
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A U.S. Household Snapshot

• Penna. USA
• Households (2000) 4.7 mil
  105.5 mil
• Persons per hshld (00) 2.5
  2.6
• Median hshld inc (2003) 42,952 43,318
• Foreign Born persons 4.1 11.1
• Bachelors Deg(25) 22.4 24.4
• Hispanic origin (2004) 3.8 14.1
  
• Black persons (2004) 10.5 12.8
• Asian persons (2004) 2.2 4.2
  

www.fedstats.gfov/.gfov/gf/states (19july06)
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Projecting The Changing U.S. Household

• 2000 2020 Change
• ALL Households 105 mil 129 mil 22
• Families 70.6 68.1 3.2
• Married couples 55.4 52.1
• Single fathers 1.4 1.4
• Single mothers 6.8 6.6
• Non-Families 29.4 31.9 8

singles 2 person hshlds
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Family Values Marriage -- Divorce

• Median Age
• Marriage Divorce
• Males 27 38
• Females 25 35

Average Wedding Cost 16,195 (Midwest)

29,454 New York City
USA Today,5Jan045,A1
See www.theknot.com
Smart Money Mag. 1998
27
Marital Status

• HW Households
• Thenandnow
• 1950 1990 2000 2010
• 79 56 55 52

Working Women ( of women 16 in labor Force)
1950 1990 2000 2010 34
57 63 ?
Income-independence?
28
Bringing Home the Bacon
House Husbands
Shellenbarger, Sue. As Moms Earn More, More Dads
Stay Home How to Make the Switch Work. WSJ, D1,
Feb. 20, 2003.
29
Family Social Trend Two Parent Couples With
Children As a Percentage of All Households
FYI
Are children too expensive? Or, are
births reflecting the me generation ((ego) self
centered))?
Source Census Bureau
30
DIFFERING REACTIONS TO FEMALE ROLE PORTRAYALS IN
ADVERTISING
Family? shopping
Family or single?
Family? Career
31
Products Usage by Women
Female consumers Adult (aged 18 and over)
52 Civilian labor force 46 Tire
buyers 51 Principal buyer of automobiles
45

• Where are women under represented as consumers?
• Adult golfers 22
• Video game players 21
• Computer game players 15
• Internet surfers 10

American Demographics, 4/1996)
32
EducationTrends
33
THE COLLEGE PREMIUMThe additional wages, in
percentages, that a college graduate received
over a high-school diploma holder (each group was
one to five years out of school)

• 75

76
70
82
88
94
34
Women with a Bachelors Degree
Average Income

• White .. 37,800
• Asian .. 43,700
• Black .. 41,100
• Women held 50 of all management professional
  occupations in 2004.
• Women (72) are more likely to enroll in college
  than men (61) (Bur of Labor Statistics, News
  Bulletin, Women in the Labor Force A Databook,
  13 May 2005)

• Regardless of race or gender, the average college
  graduate earned over 51,000 compared to 28,000
  for someone with a High School degree.
  (WSJ, 28March2005, A9)

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Private Prep Schools use aggressive tactics to
attract students

• Enrollment is 500,000 students nationwide (2001)
  - up 20 in last 10 years with
  median tuition at 13,345 for day school
  24,350 for boarding school

Prep school graduates also receive numerous
rejections ... to prestigious colleges

as foreign born students
rise in enrollment.
Harvard Applicants (1991-6,244) (2000-8,061)
WSJ,23Jan01
36
Any Questions?
37
Far From Home
FYI
Zaslow, Jeffrey. Moving On. WSJ, D1, July 3,
2002.
38
New Homeowners, One Sweet Pad
FYI
Leung, Shirley. New Kids on the Block. WSJ, B1,
July 18, 2003.
39

Family Social Trends
FYI
Children Having Children Birth rates per 1,000
15-19 yr. old girls
54.4
Vermont figure is an estimate Source U.S.
Department of Health and Human Services Vermont
Department of Health (1997)
40
Social Trends
FYI
Decrease21
Increase 300
41
Give kids a chance versus,Kids without a chance
Family Social Trends
Percentage of Out-Of-Wedlock Births To Total
1940 1950 1960 1970 1980 1990 2012
5 10 15 20 25 30 35 40
45 50
42
FYI

• Between 2005-2050 Hispanics will account for 60
  of the population growth
• ¾ from new immigrants and their children
• ¼ from children of Hispanics already in the U.S.

Nielsen Newletter, Oct. 2008
43
Hispanic Nation
Applied Marketing
Hispanics by Origin 2002
44
Fun Facts
FYI

• 2002 one in eight U.S. people are of Hispanic
  origin
• 50 of Hispanics live in California and Texas
  (2000)
• 42 of New Mexicos total population was
  Hispanic, the highest portion of any state.
• Kroger Co., the nations 1 grocery chain,
  converted a store in Houston to Supermercado to
  serve the 58 Latino population.
• Hispanics have the highest family food budgets
  (3,370) for food consumed at home compared to
  whites (2,803) and blacks (2,307). Bureau of
  labor statistics,1995 in WSJ,6Nov.pg.B1

45
Fun Facts

• 97 of Los Angeles residents were Latino(2000)
• 2.2 million Hispanics lived in NYC in 2000
• The largest amount of any city in the nation
• Puerto Ricans compromise 37 of the NYCs
  Hispanic population
• Mexicans working in the U.S. sent home about 13
  billion last year, more than total foreign direct
  investment.
• One out of ten small businesses will be Hispanic
  owned by 2007 (estimate 2 million businesses).

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How much will Hispanics change America, and how
much will America change them?

• With 400,000 new Latino immigrants a year,
  experts see three broad possibilities for
  Hispanics role in American life.
• 1-Melting in- following traditional role of
  other immigrant groups by gradually molding into
  American lifestyle.
• 2- Acculturation- Most Latinos speak both
  languages, retain most of own culture and ties to
  home even as they adjust to U.S. lifestyles.
• 3- Mexifornia- Many remain in Spanish speaking
  enclaves and set the cultural and political
  agenda in soon-to-be majority-Hispanic states
  like California and Texas.

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Latinos the Job Market

• Many Hispanics are in low wage service jobs that
  offer minimal opportunity for advancement.
• - Many immigrants stay confined in areas
  inhabited by people with common ethnicity, which
  prevents them from fully assimilating to U.S.
  society.

Websites for further information

• The Pew Hispanic Center www.pewhispanic.org
• The Census Bureau www.census.gov
• New Democrats Online - www.ndol.org

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• And This explains Americas fascination with