Consumer behavior: yesterday, today, and tomorrow

Business Horizons, May-June, 1991 by Judith Lynne Zaichkowsky

Whereas the 1970s and 1980s taught independence, now it is necessary to share and be married. The number of married couples as a percentage of new households in the U.S. leaped from 35 to 60 percent in the year ending March 1987. A full 25 million American baby boomers will become first-time parents in the 1990s. This shift in focus to the home is another reason why concerns for the environment and social issues are on the rise. People want the best for their children. A socially responsible corporate image will be the advertising strategy of the 1990s.

Although the family will be back in style again, it will be a very different family. House-husbands will be as common as housewives. This is the generation of professional women-doctors, lawyers, and business people not wanting to give up a satisfactory career, with husbands who recognize the status of their wives' earning power. Two-career families will also be prevalent. Household duties such as meal preparation, shopping, and picking up the dry cleaning are just as likely to be carried out by males as females. Therefore, purchasing household goods and services will be more of a collective decision than it was in the 1960s.

The Immigrant

The third major force to change our decision-making environment is the immigrant, especially the Asian immigrant. Due to a low birth rate among North American women, immigration is a necessity for continued economic growth. Without immigration, our population would actually be decreasing. By the year 2000 there will be 10 million Asians in the United States. In 1985, Asians accounted for 41 percent of all new arrivals in Canada. With 1997 fast approaching, more and more residents of Hong Kong are expected to immigrate to the United States and Canada. The influence of the Asian culture to our marketplace will be felt far and wide. Asians are two to three times as likely to hold a college degree as the average American adult. They are also more likely to hold positions as managers, executives, or professionals. Among the Japanese, Chinese, and Filipinos, average family income already exceeds that of whites.

In San Francisco during the past 15 years, Asians have more than replaced whites. Today 41 percent of the Chinese in that city own their own homes. The cultural values and living style of the Asians contribute to this factor. Extended families living together are the norm. Grandparents, parents, and children all share the same home. The group is cohesive and the elders most respected. Their shopping behavior reflects their living behavior, as the Chinese prefer shopping in large family groups. Buying decisions are finalized by the family elders. This collective decision making is cultural but extensive.

Hispanics, another group with emerging influence, also spend relatively more of their free time shopping with their extended families rather than alone. Choosing what to buy is another collective decision.

The influence of the Asian and Hispanic cultures will make us focus more on the opinion leader and the consensus of the group to purchase. Sales pitches will be made not to individuals but to groups. The product will now benefit the group and group relations rather than the individual person. Marketers will have to change their selling strategy to appeal to the decision style of the extended family.