Social Responsibility and Marketing Ethics Social responsibility concerns a firm's obligation to improve its positive effects on society and reduce its.

Social Responsibility and Marketing Ethics

• Social responsibility concerns a firm's obligation to improve its positive effects on society and reduce its negative effects

• Marketing ethics are the moral standards that guide marketing decisions and actions

Excerpt from the Code of Ethics of the American Marketing

Association“ ...Participants in the marketing exchange process should be able to expect that:

1. Products and services offered are safe and fit for their intended uses;

2. Communications about offered products and services are not deceptive;

3. All parties intend to discharge their obligations, financial and otherwise, in good faith; and

4. Appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning purchases…”

Target Marketing vs. Mass Marketing

• TARGET MARKETING

– Marketing mix is tailored to fit specific target customer(s)

• MASS MARKETING

– Vaguely aims at "everyone" with the same marketing mix

The Four Ps and Marketing Mix Planning

• Why is the Four "Ps" idea helpful?

– Provides an organizing framework

– Helps to bring many, more detailed decisions together in a logical fashion

– Focuses thinking on the idea that all marketing decisions must work together as a whole

– Focuses on a managerial orientation—and what a marketing manager/firm can do about needs of target customers

The Marketing Plan

• Marketing plan: a written statement of a marketing strategy and the time related details for carrying out the strategy.

• Spells out, in detail:– What marketing mix is to be offered– To what target market– For how long– What resources (costs) are needed at what rate– What results are expected– What control procedures will be used.

Marketing Program

• Marketing program: blends all of the firm's marketing plans into one "big" plan—which is an integrated part of the whole-company strategic plan– Program requires an effective "building up" process– A good program must be based on good plans– Each plan must be carefully developed– Each plan is based on a marketing strategy– Each strategy is based on a marketing mix and a target market

• Plans in overall program should work together to enhance a competitive advantage

Competitive Advantage

• Competitive advantage: the firm has a marketing mix that the target market sees as better than a competitor's mix– A better marketing mix offers target customers better customer

value

– Note: customers who are not in the target market may not see the marketing mix as offering better value

• Requires that the firm:– understand current competitors' offerings

– anticipate competitors' likely plans

– monitor effects of changes in competition

– REALLY understand the target customers' needs

Marketing Strategy Planning Process

• Narrowing down from broad market opportunities that a firm might pursue to a specific strategy– Marketing strategy specifies a specific target market and a specific marketing mix

– Not just “some” strategy, but one that will offer target customers superior value

• Segmentation helps pinpoint a specific target market

• Differentiation helps pinpoint a marketing mix that is different from and better than what is available from a competitor

• Screening criteria make it clear why you select a specific strategy (and why others are “screened out”)

• S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses and its opportunities and threats– S.W.O.T helps identify relevant screening criteria (what is needed to get a

competitive advantage)

Examples of Different Types of Opportunities

• Market Penetration – Arm & Hammer promotes new uses of its baking soda

• Market Development– Marriott Hotels target families for weekend "get-aways" to rent

rooms filled by business travelers during the week

• Product Development– Microsoft develops a new version of its Windows operating system

to appeal to the people who bought an earlier version but now want more features

• Diversification– RJR, the cigarette producer, adds baked goods to its product line to

appeal to new customers

How Readings Relate to Market Segmentation

• Introduction to market segmentation concepts (Chapter 3)

• How changes in the external environments affect segmentation opportunities (Chapter 4)

• Why demographic variables are useful for segmentation and what they tell us about the size of segments (Chapter 5)

• How understanding customer behavior leads to better segmentation (Chapters 6 and 7)

• How to improve the information on which segmentation decisions are based (Chapter 8)

• Estimating (forecasting) segment size and likely profitability (Chapter 21)

The bicycle-riders product market

A Market Grid Diagram with Submarkets

Submarket 3Transportation

Riders

Submarket 5Environmentalists

Submarket 4Socializers

Submarket 1Exercisers

Submarket 2Off-Road

Adventurers

Concept: divide a broad product-market (or generic market) into homogeneous submarkets

Criteria for Segmenting

• Customers within a segment should be homogeneous– similar responses to marketing mix– similar segmenting dimensions

• Customers in different segments are heterogeneous– different responses to marketing mix– different segmenting dimensions

• Segment is substantial– segment is big enough to be profitable

• Segmenting dimensions are operational– useful for identifying customers– helpful in deciding on marketing mix

Three Ways to Develop Market-Oriented Strategies

• Single Target Market Approach– select one homogeneous segment as the target

• Multiple Target Market Approach– select two or more target segments

– develop a different marketing mix for each segment

• Combined Target Market Approach– combine submarkets into a single target market

– develop one marketing mix for the combined target

Relation of Potential Target Market Dimensions to Marketing

Strategy Decision Areas

• Behavioral needs, attitudes, and how present and potential goods and services fit into customers' consumption patterns.– Affects Product (features, packaging, product line assortment, branding) and Promotion

(what potential customers need and want to know about the firm's offering, and what appeals should be used).

• Urgency to get need satisfied and desire and willingness to seek information, compare, and shop.– Affects Place (how directly products are distributed from producer to customer, how

extensively they are made available, and the level of service needed) and Price (how much potential customers are willing to pay).

• Geographic location and other demographic characteristics of potential customers.– Affects size of Target Markets (economic potential), Place (where products should be

made available), and Promotion (where and to whom to target advertising and personal selling).

Examples of Possible Segmenting Dimensions for Consumer

Markets

• CUSTOMER RELATED:– Customer needs (automobiles)– Geographic location (tire chains)– Age (insurance policies)– Sex (clothing)– Family size (child care services)– Income (vacation services)– Education (magazines)

• SITUATION RELATED:– Benefits offered (toothpaste)– Consumption/use patterns (cameras)– Brand familiarity (health care products)– Buying situation (soft drinks)

Some Examples of Possible Segmenting Dimensions and Typical Breakdowns for Consumer Markets

• Needs– Economic, functional, physiological, social, and more detailed needs

• Attitudes– Favorable or unfavorable attitudes, interests and opinions

• Purchase relationship– Favorable and ongoing; intermittent; none; bad relationship

• Brand familiarity– Insistence, preference, recognition; nonrecognition; rejection

• Geographic– By country, region, size of city

• Income– Under $20,000, $20,000 to $39,999, $40,000 or over

Examples of Possible Segmenting Dimensions for Business Markets

• Type of organization (computer software)• Closeness of relationship with customer (travel services)• Size (buildings)• North American Industry Classification System (NAICS)

codes (machinery)• Geographic location (electronic parts)• Type of product (X-ray film)• Buying situation (automobile components)• Source loyalty (office supplies)• Reciprocity (transporting services)

Possible Segmenting Dimensions for Business/Organizational

Markets• Kind of relationship

– Weak loyalty --------> strong loyalty to vendor

– Single source --------> multiple vendors

– "Arm's length" dealings--------> close partnership

– No reciprocity --------> complete reciprocity

• Type of customer– Manufacturer, service producer, government agency, military, nonprofit, wholesaler or retailer (when end user), and

so on

• Demographics– Geographic location (region of world, country, region within country, urban --------> rural)

– Size (number of employees, sales volume)

– Primary business or industry (North American Industry Classification System)

– Number of facilities

• How customer will use product– Installations, accessories, components, raw materials, supplies, professional services

• Type of buying situation– Decentralized --------> centralized

– Buyer --------> multiple buying influence

– Straight rebuy --------> modified rebuy --------> new-task buying

• Purchasing methods– Vendor analysis, inspection buying, sampling buying, specification buying, competitive bids, negotiated contracts,

long-term contracts

Segmenting Dimensions

• Qualifying Dimensions– Segmenting dimensions relevant to the product-market– Are there characteristics typical of customers who are at

least potentially interested in the relevent product type?

• Determining Dimensions– Segmenting dimensions that affect the purchase of a

specific product or brand– Why does a potential customer select one brand over

another?

Applying Segmentation Concepts: A Seven-Step

Approach to Segmenting Product-Markets

• 1. Name broad product-market

• 2. List potential customers' needs

• 3. Form homogeneous submarkets

• 4. Identify determining dimensions

• 5. Name possible product-markets

• 6. Evaluate why segments behave as they do

• 7. Estimate size of each product-market segment

Toothpaste Market Segment DescriptionSegment Name

The sensorysegment

The sociablessegment

The worrierssegment

Theindependent

segmentPrincipal benefit

soughtFlavor, product

appearanceBrightness of

teethDecay

preventionPrice

Demographicstrengths

ChildrenTeens, young

peopleLarge families Men

Specialbehavioral

characteristics

Users ofspearmintflavored

toothpaste

Smokers Heavy users Heavy users

Brandsdisproportion-ately favored

Colgate, StripeMacleans, Plus

White UltraBrite

Crest Brands on sale

PersonalityCharacteristics

High self-involvement

High sociabilityHigh

hypochondriasisHigh autonomy

Life-stylecharacteristics

Hedonistic Active Conservative Value-oriented

Positioning and Differentiation

• Positioning analysis is based on how (potential) customers think about a firm's current or potential offering

• Positioning considers how customers think about competitors' offerings as well as the firm’s own offering

• Positioning analysis identifies what kind of offering different segments see as ideal

• Differentiation focuses on developing a marketing mix that target customers will see as distinct from competing mixes

• Positioning and differentiation help with combining and segmenting, by revealing which segments view the market in similar (or dissimilar) ways

Mission Statement Provides Guidance

• Mission statement helps set the course of a firm by explicitly stating the organization’s basic purpose for being– May make it clear that some opportunities (target market or

marketing mix alternatives) are not related to the mission

– Some opportunities may be a good fit with mission, but not as good a fit or as high a priority as others

• Mission statement works in combination with specific objectives and should relate to screening criteria used to evaluate strategy alternatives

Examples of Company Resources

• Financial strength (AT&T)

• Producing flexibility (Chrysler)

• Patents (IBM)

• Channel relationships (Kraft)

• Loyal customer base (Coke)

• Technical capability (3M)

Competitor Analysis (summary): Disposable Diaper Competition in

JapanP&G’s Current andPlanned Strategy

Kao’s Strengths (+) andWeaknesses (-)

Uni-Charm’s Strengths(+) and Weaknesses (-)

Target Market(s)Upscale, modern parents whocan afford disposable diapers

Same as for P&G

Same as for P&G, but alsobudget-conscious segmentthat includes cloth diaper

users (+)

ProductImproved fit and absorbency

(+); brand name imageryweak in Japan (-)

Brand familiarity (+); but nolonger the best performance

(-)

Two brands- for differentmarket segments- and more

convenient package withhandles (+)

Place

Distribution throughindependent wholesalers to

both food and drugstores (+),but handled by fewer retailers

(-)

Close relations with andcontrol over wholesalers whocarry only Kao products(+);

computerized inventoryreorder system (+)

Distribution through 80% offood stores in best locations

(+); shelf space for two brands(+)

Promotion

Heaviest spending on daytimeTV, heavy sales promotion,including free samples (+);

small sales force (-)

Large efficient sales force (+);lowest advertising spending (-) and out-of-date ad claims (-)

Advertising spending high(+); effective ads that appeal

to Japanese mothers (+)

PriceHigh retail price (-) but lowerunit price for larger quanities

(+)

Highest retail price (-), butalso best margins for

wholesalers and retailers (+)

Lowest available retail price(+);price of premium brand

comparable to P&G (-)(Potential) Competitive

BarriersParent protection (+), limits inaccess to retail shelf space (-)

Inferior product (-), excellentlogistics support system (+)

Economies of scale and lowercosts (+); loyal customers (+)

Likely response(s)

Improve wholesaler andretailer margins; faster

deliveries in channel; changepackage to require less shelf

space

Press retailers to increase in-store promotion; change

advertising and/or improveproduct

Increase short-term salespromotions; but if P&G takes

customers, cut price onpremium brand

Examples of Effect of Technological Environment

• Rapid changes in the Internet and World Wide Web

• Robotics (better quality control, lower production costs)

• Computer scanners at retail check-out counters

• Worldwide satellites for data communication

• Automated inventory control

• Electronic fuel injection on automobiles

• Cellular phones and fax machines for communication

Examples of Changes in the Political/Legal Environment

• Deregulation of energy industries

• Less emphasis on antitrust laws by federal government

• Maturing of consumerism

• More attention to laws governing international trade

• Changes in labeling requirements

Focus (mostly prohibitions) of Federal Antimonopoly Laws

on the Four PsLaw Product Place Promotion Price

Sherman Act(1890) Monopoly or

conspiracy inrestraint of trade

Monopoly orconspiracy to control

a product

Monopoly orconspiracy to controldistribution channels

Monopoly orconspiracy to fix or

control prices

Clayton Act (1914)Substantially lessens

competition

Forcing sale of someproducts withothers—tying

contracts

Exclusive dealingcontracts (limitingbuyers’ sources of

supply)

Price discriminationby manufacturers

Federal TradeCommission Act

(1914) Unfairmethods ofcompetition

Unfair policiesDeceptive ads orselling practices

Deceptive pricing

Robinson-PatmanAct (1936)

Tends to injurecompetition

Prohibits payingallowances to

“direct” buyers inlieu of middlemencosts (brokerage

charges)

Prohibits “fake”advertising

allowances ordiscrimination in

help offered

Prohibits pricediscrimination on

goods of “like gradeand quality” without

cost justification,and limits quantity

discountsWheeler-Lee

Amendment (1938)Unfair or deceptive

practices

Deceptive packagingor branding

Deceptive ads orselling claims

Deceptive pricing

Antimerger Act(1950) Lessens

competitionBuying competitors

Buying producers ordistributors

Magnuson-MossAct (1975)

Unreasonablepractices

Product warranties

Major Focus of Some Important Laws that Affect

Marketing

• Sherman Act (1890)– prohibits conspiracy to reduce competition– example: price "fixing" agreements among competing firms

• Federal Trade Commission Act (1914)– prohibits unfair methods of competition– example: use of deceptive advertising

• Robinson-Patman Act (1936)– prohibits most types of price-related discrimination – example: offering "advertising allowances" to some

middlemen but not others (without cost justification)

Outline of Federal Legislation Now Affecting Competition in

Marketing

YearAntimonopoly

(procompetition) Anticompetition Antispecific practices

1890 Sherman Act

1914Clayton Act, Federal

Trade Commission ActClayton Act

1936 Robinson-Patman Act Robinson-Patman Act Robinson-Patman Act

1938Wheeler-LeaAmendment

1950 Antimerger Act Antimerger Act

1975 Magnuson-Moss ActMagnuson-Moss Act

Some Important U.S. Federal Regulatory AgenciesAgencies Responsibilities

Federal Trade Commission (FTC)Enforces laws and develops guidelinesregarding unfair business practices

Food and Drug Administration(FDA)

Enforces laws and develops regulationsto prevent distribution and sale ofadulterated or misbranded foods, drugs,cosmetics, and hazardous consumerproducts

Consumer Product SafetyCommission (CPSC)

Enforces the Consumer Product SafetyAct—which covers any consumerproduct not assigned to other regulatoryagencies

Federal CommunicationsCommission (FCC)

Regulates interstate wire, radio, andtelevision

Environmental Protection Agency(EPA)

Develops and enforces environmentalprotection standards

Office of Consumer Affairs (OCA) Handles consumers’ complaints

Examples of Trends in the Cultural Environment

• More women in the work force

• "Aging" of America, but accompanied by new growth in the “teen” group

• More single-person households

• More health consciousness

• More concern about the environment

An Example of Product-Market Screening Criteria for a Small Retail

and Wholesale Distributor ($5 million annual sales)

• Quantitative criteria– Increase sales by $750,000 per year for the next five years.– Earn ROI of at least 25 percent before taxes on new ventures.– Break even within one year on new ventures.– Opportunity must be large enough to justify interest (to help meet objectives) but small enough so company can handle with the resources

available.– Several opportunities should be pursued to reach the objectives--to spread the risks.

• Qualitative criteria– Nature of business preferred.

• Should take advantage of our on-line Internet order system.• New goods and services for present customers to strengthen relationships.• "Quality" products that do not cannibalize sales of current products.• Competition should be weak and opportunity should be hard to copy for several years.• There should be strongly felt (even unsatisfied) needs--to reduce promotion costs and permit "high" prices.

– Constraints• Nature of businesses to exclude

– Manufacturing.– Any requiring large fixed capital investments.– Any requiring many support people who must be "good" all the time and would require much supervision.

• Geographic– United States, Mexico, and Canada only.

• General– Make use of current strengths.– Attractiveness of market should be reinforced by more than one of the following basic trends: technological, demographic, social, economic, political.– Market should not be bucking any basic trends.

GE's Strategic Planning Grid

• A way of organizing business judgments about existing and/or proposed product-market plans

• Business Strengths Dimension– Company size, market share– Profit margins– Technology position– Limiting factors (personnel, capital needed, etc.)

• Industry Attractiveness Dimension– Size of market and growth trends– Competitive situation– Social impact– Industry profitability

Demographic Dimensions for Select Countries

Country

2000Population

(000)

Percent Pop.

Growth

PercentUrbanPopul-ation

GNP($Millions)

GNP perCapita

PercentGrowth

GNPPercentLiteracy

Canada 29,989 1.2 77 573,695 19,380 2.0 96.6China 1,253,438 1.0 29 744,890 620 10.0 81.5Finland 5,115 0.3 65 105,174 20,580 4.0 100.0Ghana 19,272 2.4 36 6,719 390 4.0 64.5India 1,012,909 1.7 26 319,660 340 6.0 52.0Israel 5,852 2.6 90 87,875 15,920 7.0 95.6J apan 126,582 0.2 78 4,963,587 39,640 1.0 100.0Mozambique 19,614 3.3 28 1,353 80 3.0 40.1Peru 26,198 1.8 70 55,019 2,310 8.0 88.7Saudi Arabia 22,246 3.4 80 133,540 7,040 -1.0 62.8Somalia 10,880 2.7 24 1,047 156 0.6 24.0Switzerland 7,374 0.8 68 286,014 40,630 1.0 100.0U.K. 58,894 0.3 90 1,094,734 18,700 2.0 100.0U.S. 274,943 1.0 75 7,100,007 26,980 2.0 99.5Venezuela 23,596 2.0 85 65,382 3,020 3.0 91.1

Demographic Dimensions

• Important operational dimensions for understanding market segments and developing marketing mixes– Much good data is available

• Important for determining size of consumer target markets – Is the market substantial?

• Seeing demographic trends helps identify opportunities– Shifts in age distribution– Geographic growth/decline

Age Distribution

• Average age is increasing

• But there is a big teen cycle on the way

• Post World War II "Baby Boomers": still a big, influential group

• 50 and older group to grow dramatically in next decade

Median Family Income, 1960-1996 (in 1996 dollars)

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

1960

1964

1968

1972

1976

1980

1984

1988

1992

1996

Percent of Total Income Going to Different Income Groups in

1996

4.2

10

15.8

23.1

46.8

0 10 20 30 40 50

Lowest 20%

Middle

Top 20%

Each Group's Percent of Total Income

Note: the 20 percent of all families who have the lowestincomes account for only 4.2% of total income; the20% with the highest incomes have 46.8 percent--

a 10-fold difference between the “haves” and “have-nots”

Income Distribution

• Growth in real income has slowed down

• Middle income groups in U.S. enjoy real choices

– U.S. distribution like Canada, Western Europe, Japan, Australia, New Zealand

• Higher income groups still have much of the spending power

– Top 20% income group has 47 percent of total income!

– Bottom 20% income group has only about 4 percent!

Types of Income• DISPOSABLE INCOME

– Income that is left after taxes

• DISCRETIONARY INCOME

– What is left of disposable income after paying for "necessities"

Family Spending for Several Family Income Levels (in 1995

dollars)

$15,000-$19,999 $20,000-$29,999 $30,000-$39,999

Category $ % $ % $ %

Food 3,883 17.2 4,065 15.2 4,710 14.1Housing 7,407 32.8 8,417 31.5 10,461 31.4Clothing 1,187 5.2 1,471 5.5 1,656 5.0

Transportation 4,009 17.7 5,258 19.7 6,419 19.3Health care 1,610 7.1 1,743 6.5 1,666 5.0

Personal care 299 1.3 366 1.4 450 1.4Education 162 0.7 194 0.7 375 1.1

Reading 112 0.5 142 0.5 180 0.5Entertainment 903 4.0 1,217 4.6 1,764 5.3

Alcohol 180 0.8 219 0.8 243 0.7Tobacco 276 1.2 309 1.2 324 1.0

Insurance &pensions 1,201 5.3 1,910 7.1 3,249 9.8

Contributions 807 3.6 729 2.7 816 2.4Miscellaneous 581 2.6 691 2.6 1,008 3.0Total spending 22,617 100.0 26,731 100.0 33,321 100.0

Stages in the Family Life Cycle

Stage Characteristics and buying behavior1.Singles; unmarried people livingaway from parents

Feel “affluent” and “free.” Buy basic household goods. More interested in recreation,cars, vacations, clothes, cosmetics and personal care items.

2.Divorced or separated May be financially squeezed to pay for alimony or maintaining two households. Buyingmay be limited to “necessities”—especially for women who have no job skills.

3.Newly married couples; nochildren

Both may work and so they feel financially well-off. Buy durables: cars, refrigerators,stoves, basic furniture—and recreation equipment and vacations.

4. Full nest I: youngest child undersix

Feel squeezed financially because they are buying homes and household durables—furniture, washers, dryers, and TV. Also buying child-related products—food,medicines, clothes and toys. Really interested in new products.

5. Full nest II: youngest child overfive

Finally are better off as husband earns more and/or wife goes to work as last child goesto school. More spent on food, clothing, education, and recreation for growing children.

6. Full nest III: older couples withdependent children

Financially even better off as husband earns more and more wives work. May replacedurables and furniture, and buy cars, boats, dental services, and more expensiverecreation and travel. May buy bigger houses.

7. Empty nest: older couples, nochildren living with them, head stillworking

Feel financially “well-off”. Home ownership at peak, and house may be paid for. Maymake home improvements or move into apartments. And may travel, entertain, go toschool, and make gifts and contributions. Not interested in new products.

8. Sole survivor, still working Income still good. Likely to sell home and continue with previous lifestyle.9. Senior citizen I: older marriedcouple no children living with them,head retired

Big drop in income. May keep home but cut back on most buying as purchases ofmedical care, drugs, and other health-related items go up.

10. Senior citizen II: sole survivor,not working

Same as senior citizen I, except likely to sell home, and has special need for attention,affection and security.

Examples of Economic Needs

• Economy of purchase or use

• Convenience

• Efficiency in operation or use

• Dependability in use

• Improvement in earnings

Psychological (intra-personal) Variables

• Motivation

• Perception

• Learning

• Attitudes and beliefs

• Personality

• Lifestyle (psychographics)

Possible Needs Motivating a Person to Some ActionTypes of Needs Examples of Specific Needs

Hunger Thirst Activity SleepPhysiologicalneeds Sex Rest Preservation Warmth

Aggression Curiosity Dominance ImitationPsychologicalneeds Independence Love Nurturing Order

Fulfillment Competition Relaxing PowerPride Self-Expression Tenderness

Desire for… Acceptance Achievement Acquisition AffectionAffiliation Appreciation Beauty CompanionshipComfort Fun Esteem FameHappiness Knowledge Prestige PleasureRecognition Respect Status Variety

Fear Pain Harm DepressionFreedom fromRidicule Loss Sadness AnxietyDiscomfort Pressure Imitation Illness

Lifestyle Dimensions (and some related demographic dimensions)Dimension Examples

Activities Work Vacation CommunityHobbies Entertainment ShoppingSocial events Memberships Sports

Interests Family Community FoodHome Recreation MediaJob Fashion Achievements

Opinions Themselves Business ProductsSocial issues Economics FuturePolitics Education Culture

Demographics Income Geographic area OccupationAge City size Family sizeFamily life cycle Dwelling Education

Social (inter-personal) Influences on Consumers

• Family

• Reference groups

• Social class

• Culture and subculture

Characteristics and Relative Size of Different Social Class Groups

in the United States

Successful professionals and managers; community minded and ambitious for their children...

Relative size Group Some (abbreviated) characteristics

Upper-class

Upper-middleclass

Lower-middleclass*

Upper-lower(“working”) class*

Lower-lowerclass

1.5%

12.5%

32%

38%

16%

People from old wealthy families and socially prominent new rich...

Small business people, teachers, office workers, technicians--the typical white collar workers...

The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes...

Unskilled laborers and people in very low status occupations

* America’s “mass market”

Characteristics and Attitudes of Middle and Lower Classes

• Middle classes– Plan and save for the future

– Analyze alternatives

– Understand how the world works

– Feel they have opportunities

– Willing to take risks

– Confident about decision making

– Want long-run quality or value

• Lower classes– Live for the present– "Feel" what is "best"– Have simplistic ideas about

how things work– Feel controlled by the

world– "Play it safe"– Want help with decision

making– Want short-run satisfaction