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Global Consumer Culture Culture: Subcultures (continued) Social Responsibility Manifestations of Culture Myths & Rituals SEX Feminism Survey Metrosexual Social Class Subcultures Social Class The overall rank of people in a society Homogamy Tendency to marry into a similar social class Social Stratification Status hierarchy Structure in a social group in which some members are better off than others •Social Stratification Creation of artificial divisions in a society •Achieved vs Ascribed Status Achieved status: Status earned through hard work or diligent study Ascribed status: Status one is born with Social Class • A Universal Pecking Order – Dominance-submission hierarchy: Each individual in the hierarchy is submissive to those higher in the hierarchy and is dominant to those below them in the hierarchy • Social Class Affects Access to Resources • Clothing Regulates Social Status – Sumptuary Laws: restrictions that regulated style of dress Social Class Affects Purchase Decisions Inconsistencies between fashion leadership and social class Ideas come from all levels in their own way following trickle across theory The subtle distinctions pertain to luxurious fabrication and brand, that denote cost, and possibly class Class Differences in Worldview A major social class difference involves the worldview of consumers Working class –More focused on immediate needs than long-term goals –Depend more heavily on relatives for emotional support –Orient themselves toward community rather than the world –More likely to be conservative and family oriented Higher classes –Focus on the long-term Social Mobility The passage of individuals from one social class to another Horizontal Mobility Movement from one position to another roughly equivalent in social status Downward Mobility Movement from one position to another position that is lower in social status Upward Mobility Movement from one position to another position that is higher in social status Age Subcultures Generational Cohorts Subculture Birthdate % Comment GI Generation Before 1930 14% Came of age during the depression The Silent Generation 1928-1945 15% Long period of economic growth/ known as the war babies Baby Boomers 1946-1964 30% Largest U.S. generation; known as the Vietnam, Woodstock, or Sixties Generational Cohorts Subculture Birthdate % Comment Generation Y 1977-1995 25% Often described as cynical about their futures; also known as Gen X Echo Bust Born after 1996 18% Children of postbaby boomers , called the echo bust because the birthrate will decline Acculturation Process of learning the value system of another culture Refers to the process of movement and adaptation to one country’s cultural environment by a person from another country Levels of Acculturation • People and institutions that teach the ways of a culture. – Culture of Origin – Culture of Immigration • Progressive learning model – People gradually learn a new culture as they increasingly come in contact with it. • Differences due to ethnic identification Model of Consumer Acculturation Figure 14.2 Ethnic or Racial Subcultures Ethnic Subculture – Held together by common cultural or genetic ties, and is identified both by its members and by others as being a distinguishable category. Ethnicity and Marketing Strategies – Subcultural membership shapes needs and wants – Will find advertising spokesperson from own group – Influences the way marketing messages are communicated Is Ethnicity a Moving Target? De-ethnicitization – The process whereby a product formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures. – – – – Sushi Tex Mex Mexican Food Chinese Food Ethnic Groups • The “Big Three” American Subcultures – African Americans – Hispanic Americans – Asian Americans • New Ethnic Groups – More likely to be Asian or Hispanic – Best marketed to in native language – Tend to cluster geographically – Local community is primary source for information Hispanic Americans • Describes people of different backgrounds • Attractive Market Segment • Distinguishing Characteristics – Youth – Family Size – Importance of Family Asian Americans • Fastest growing minority group in the U.S. • Culturally diverse and speak many languages – The most affluent – Best educated – Most likely to hold technology jobs of any ethnic subculture – Prosperous Asians tend to be very status conscious • The Asian-American Consumer – More Asian women love to shop than any other – Do no show brand loyalty – even to Asian brands – Conservative History of Ethnic Strife Native Americans America as a “melting pot” Civil War Tuskeegee University Lewis Adams & George W. Campbell Booker T. Washington George W. Carver August 28, 1963 Ellis Island WWII (antisemitism, Japanese internment camps, McCarthyism) Civil Rights Movement Desegregation Busing Rosa Parks (December 1, 1955) Martin Luther King Sit Ins Recent History 1992 Los Angeles Riots (Rodney King) Indian Reservations 9/11 Racial Profiling Reverse Discrimination Title IX (1972 gender discrimination) Affirmative Action (JFK, 1961) Auburn University (Delta Sigma Phi & Beta Theta Pi) Don Imus VA Tech Shootings Jena 6 Other Nations What happens to products as they go through this process of diffusion and market penetration? Creative Destruction “. . .the perpetual cycle of destroying the old and less efficient product or service and replacing it with the new, more efficient ones” -Thomas Friedman What happens after the decline? Waste Landfill Recycling Downcycling Sustainability The ability to maintain a system indefinitely This implies that system factors such as environmental or economic resources are maintained at levels in a manner such that whatever is removed or used, is replaced in the same or better condition Social Responsibility Social responsibility generally stems from an unequal distribution of resources, and is a notion that implies a responsibility to act in ways that positively impacts society. Starbucks Coffee Company Starbucks Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The following six guiding principles will help us measure the appropriateness of our decisions: •Provide a great work environment and treat each other with respect and dignity. •Embrace diversity as an essential component of the way we do business. •Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of our coffee. •Develop enthusiastically satisfied customers all of the time. •Contribute positively to our communities and our environment. •Recognize that profitability is essential to our future success. Ways We Contribute Positively To Our Communities And Environment •Starbucks proudly supports organizations in our local communities with cash and product contributions through corporate giving, The Starbucks Foundation, regional grant programs, and regional marketing offices. •Locally, we support the Red Cross, local schools and the University, local artists, and many community events. •Composting with coffee grounds: the Grounds For Your Garden program. •Purveying quality coffees means much more than selecting the finest beans on the market. Starbucks strongly believes in the importance of building mutually-beneficial relationships with coffee farmers and coffee communities with which we work. The success of the farmers with whom we do business is a critical component of our own success. We take an integrated approach to building relationships with coffee communities: •We pay premium prices for our coffee so farmers can make profits and take care of their families. •We purchase conservation and certified coffees, including Fair Trade Certified™, shade grown and certified organic, to promote responsible environmental and economic efforts. •We invest in social programs to build schools, health clinics and other projects that benefit coffee-growing communities. •We collaborate with farmers through the Farmer Support Center, located in Costa Rica, to provide technical support and training that promotes high-quality coffee for the future. • We encourage participation in Starbucks Coffee and Farmer Equity Practices (C.A.F.E. Practices), a set of socially responsible coffee buying guidelines, by offering preferential buying status for participants that score the highest on verified reports. C. A. F. E. Practices Suppliers who apply to C.A.F.E. Practices and obtain independently verified scores receive preferential buying status with Starbucks Coffee Company. •C.A.F.E. Practices is scored out of 105 total points. There are three acceptance categories for C.A.F.E. Practices suppliers: Strategic, Preferred and Verified. •For Strategic Supplier status: In the areas of Social Responsibility, Environmental Leadership –Coffee Growing, and Environmental Leadership – Coffee Processing, the scores assigned by the approved verifier must meet or exceed 80% of the possible points in each subject area. •For Preferred Supplier status: In the subject areas of Social Responsibility, Environmental Leadership – Coffee Growing, and Environmental Leadership – Coffee Processing, applicants must achieve a minimum of 60% in each subject area. •For Verified Supplier status: Applicants who do not achieve a minimum of 60% or more in each of the scored Subject areas, but meet the minimum required indicators for the criteria Minimum/Living Wage/Overtime Regulation (SR-HP1) and Child Labor/Discrimination/Forced Labor (SR-HP4). Starbucks expects a Verified Supplier to undergo a re-verification within one year after approval and demonstrate a 10 percentage point improvement with the aim of achieving Preferred or Strategic Supplier status. If an improvement of 10 percentage points is not attained the Verified Status will be lost. Starbucks and Fair Trade Purchasing Fair Trade Certified™ coffee is one way that Starbucks supports cooperatives of small-scale farmers and is part of the larger, integrated approach Starbucks takes to building mutually beneficial relationships with coffee farmers and their communities. In fiscal 2006, Starbucks purchased 18 million pounds of Fair Trade Certified™ coffee.