With the spot light on gay marriage rights I thought of writing a piece on the influence of sexual orientation has on consumer behaviour. Sexual orientation refers to a person’s preference for certain behaviours. Sexual identity is a very important component of a consumer’s self-concept. Masculine individuals regardless of male or female tend to display male oriented traits and feminine individuals tend to display female characteristics.
In the late 90’s gay consumers emerged as an allegedly near mystical consumer group, as educated, urban consumers with sophisticated taste, high disposable incomes and was generally regarded as opinion leaders for desired consumer goods. But since 1990’s the western societies has transited into a post-gay phase where sexual orientation is not as relevant as they used to be.
As mentioned, with the post-gay phase, traditional consumption spaces and practices have linked to lesbian and gay consumers but still, An increasing number of marketers are using sexual orientation to target gay and lesbian consumers, because sexual orientation can influence an individuals’ preference and behaviours. This strategy is due to the increase in the number of same sex households. According to research, although gay and lesbian consumers tend to dislike and distrust advertisement messages more than heterosexual consumers, they are likely to respond to sexual orientation symbols in advertising. In fact they respond to marketing that they perceive as gay friendly. For example, women who are more masculine tend to prefer advertisements that depict non-traditional women. Compared with the general population, gay consumers tend to be more tech savvy and are more likely to be on-line. This fact increases the on-line shopping possibility of the gay community. In addition to this, evidence indicate that gay consumer are more likely to keep up with the latest trends than their heterosexual counterparts, hence this fact make them the perfect target group to introduce new products to.
It is evident that gay and lesbian consumption behaviour has significantly changed, and has evolved into multifaceted behaviour.
Marketing Management Blog 
Very interesting topic.Is Australia still conservative in Marketing?Especially when it comes to Segmenting and Targeting demographically.! Commercials in Australian TV have not yet evolved in to a stage where it focuses on different population segments based on different cultures.Now let us do a comparison .According to the 2011 Census, there were around 33,700 same-sex couples in Australia.
http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features10July+2013
And on different note almost 30% of Australians were born overseas as of June 30 last year as per ABS report Migration Australia 2013-14
http://www.abs.gov.au/ausstats/abs@.nsf/mf/3412.0/
If you look at the List of ‘Country of birth’ ,China and India is number 3 and 4 with 447,400 and 397,200 people respectively.
If none of the marketers are not yet in to the business of targeting these 2 group of Australian population with marginally different cultural background,what chance Gay community got?
May be it is about time for marketers to think out of square and feature people and objects from different cultures and sexual orientations rather than it being predominantly Caucasian people, western objects and ‘male vs female’.
LikeLike
I think Australia is still very conservative when it comes to marketing. I still remember the outrage this “rip and roll” safe sex advertisement caused -http://www.couriermail.com.au/news/hiv-ads-pulled-from-brisbane-bus-shelters/story-e6frer4f-1226066760845. I couldn’t believe that we were still that prehistoric, and it is still evident today. And as you said it’s not just the gay community that marketing is still conservative, multi cultures are very underrepresented as well.
LikeLike
Part of human behaviour is finding/defining a group or community to which we belong and identify with. From a marketing perspective is it possible that their consumer behaviour has not changed – but that society is (from where it was a period of time ago) – more open and aware to this segment of consumer? That people are more openly identifying with this group as a collective of consumer – so we know more about how to engage with this audience as marketers – just as we would with white middle aged males? So I wonder is it a change in consumer behaviour or a change in segmentation strategies because more data is available?
LikeLike
great blog and very different topic.it is clear from the blog that gay and alesbian are the main segment of consumers and market should target these groups to get success but still this market strategy is not used commonly .Developed countries are also lang behind to use this strategy by segmenting and targeting the consumer demographically.Market should use this strategy to get more success in business
LikeLike
Very interesting topic indeed but a bit more facts and referencing would be better.
It would be very intersting to see how much influence on gay/lesbian community is possible through marketing based on ‘Gay/Lesbian’. Being gay, It doesn’t change a male to female or female to male. My point is as their sexual orientation stays same in most of the case so how much success can be expected. If the product/service is for a niche gay market then there is a great possibility but for common things/day to day consumer goods the fact can be different.
The article link below provides a good research on gay marketing.
Click to access marketing_to_gay_consumers.pdf
LikeLike
I know that in the US there are quite a few Gay and lesbian friendly ads that have run recently. Tylenol, hallmark, Honey Maid, Banana Republic, JC Penny, Microsoft. Watching them the first thing I notice is that they use the same type of wholesome advertising style that they always have, just now a wider representation of society is depicted. Similar to the increase of African Americans used in advertising during and after the civil rights movement, the gay and lesbian community is finally making progress in their own move to equality and as that happens are being represented more in advertising. Advertising really is a reflection of the culture of the time, and these types of inclusive moves in advertising are great.
However, the US market is 320 million and highly segmented and divided. Unfortunately this type of inclusive advertising will likely only be broadcast in places like New York, San Francisco, L.A, or Austin. Progressive cities where the amount of people who have issues with equality are below a threshold that will impact the bottom line of these companies.
Australia, with a population smaller than many US states still seems to be struggling with the idea of equality. The fact that its such a big deal that Lynx has been given applause for having a gay kiss in their ad is concerning. It shoudn’t be a big deal, it should be standard. Given time I think Australia will Catch up with countries such an Canada(legalized Gay marriage in 2005) but for now I think we still have a long way to go.
LikeLike
Interesting topic!
I’m not sure I completely agree with your point that “since 1990’s the western societies has transited into a post-gay phase where sexual orientation is not as relevant as they used to be.” It seems to me that targeted marketing to the LGBTIQ community has at least maintained its prevalence in more recent years. Did you notice all of the corporations that adopted the rainbow flag on social media when gay marriage was legalised in the US? We didn’t see that kind of celebratory response when, say, universal healthcare was passed in the US, so it seems to me that corporations are still very much wooing the “gay dollar”.
Julie Bindel wrote an interesting article in the Guardian about how the “normalising” of queer culture (evident in the inevitable legalisation of gay marriage, for example) has been picked up as a means by which large corporations are able to sculpt socially conscious corporate identities that appeal to ever-increasing segments of the spending population by paying occasional lip service to LGBTIQ customers. The article’s here: http://www.theguardian.com/commentisfree/2014/jul/07/proud-whopper-not-gay-liberation-equal-marriage-babies-big-business?CMP=fb_gu
As you can see from that article, many queer theorists are quite anti corporate advertising that seems to be “rainbow-washing” over the decades of political struggle that it’s taken for gays to gain equal rights. Now that the expendable income of childless gays has been recognised by corporations.
It’s an interesting topic with a lot of questions worthy of debate.
LikeLike
While searching for different surevy results regarding shopping patterns of customers, I got this article- http://www.thedailybeast.com/articles/2010/11/25/who-spends-the-most-money.html
The survey results particularly addressed customers in US. But there are certain interesting facts about people and their juggling mind while shopping. I remembered last year on boxing day sale, in the Harvey Norman, how big the line was in Electronic gadgets section! And every one of them was Male while most females were gathering in the furniture section!!
LikeLike
Advertising in the past, they used female artists/models to sell women’s things, and male artists for men’s things. (Things include clothes, jewellery, perfumes, personal hygiene products etc.) This is because it makes the advertisement more relevant and credible. For example in a clothing store, I will be attracted to a pretty girl wearing a nice dress, rather than a handsome guy holding the same nice dress.
However, using opposite sex to sell the products is now becoming more common. E.g.
– Sexy girl on a Lamborghini
– Justin Bieber using his name to launch a female perfume
In South Korea, it’s very popular to invite male pop stars to become a brand ambassador for female products. These includes skin care, cosmetics and even feminine hygiene products. The rationale behind is that male pop stars have a large portion of female fans which is what the company is targeting for.
The following is a very interesting article about “10 Worst Ways Companies Have Used Feminism to Sell Women Products”.
http://mic.com/articles/91961/10-worst-ways-companies-have-used-feminism-to-sell-women-products
To finish off, please watch this Libra invisible pads advertisement which got my Asian male friend cannot stop laughing about it.
LikeLike
I agree with matkinsmba, this is an interesting topic but the original blog makes some sweeping generalizations and ill-informed suggestions and would benefit from some research to support what they describe as ‘fact’. I am curious to know more about this supposed ‘post-gay phase’ that we are now allegedly living and where the blogger sourced their awareness of the impact of sexual identity on consumer behaviour.
The following link https://www.businessexpertwebinars.com/content/view/726/72/ offers a more informed perspective on the history of marketing to LGBTI consumers, in particular noting that ‘Gays, lesbians and transgender people are not homogenous – they fall into demographic, psychographic and social subgroups, as do all other consumers. The simplistic common difference (being gay) is no longer a glue that binds’.
There are definitely attributes about some LGBTI consumers that may have made them attractive to target. For example, some of them may have more disposable income due to not having children to put through school etc., but even that is changing. Increasingly LGBTI consumers are recognised as EQUAL, allowed to marry, foster, adopt or have their own children. This blog http://www.bustle.com/articles/16553-the-best-ads-with-gay-couples-12-lgbt-friendly-campaigns discussing LGBT marketing concludes with the hope that LGBT marketing will soon become known as just plain-old marketing and in the interests of furthering the pursuit of equality for all, I agree with them.
LikeLiked by 2 people
Very interesting topic! I do agree that the sexual orientation plays a great deal in influencing the consumer behavior. If the brand is trying to penetrate in a market in such a way that they have an impact on every strata, the gay community should definitely be kept in mind.But this concept is still limited to only developed nations like USA, Australia or England where being gay is not considered a taboo. In countries like India or parts of Africa, such concept would take time since the having a different sexual orientation is not considered a normal thing.But if such a strategy is considered, it can benefit the brand a great deal.
LikeLiked by 1 person
This is a very interesting topic. Before talking about the consumers’ behavior, this topic reminds me of something that happened in Indiana, US. earlier this year. The Indiana governor signed an anti-homosexual bill “Religious Freedom Act’. This bill gave Indiana business owners rights to refuse services to any gay people or lesbians. The ridiculous bill not only made people who support the human rights equality angry, but also infuriated many companies with either prospective plans to work in Indiana or with business relationships. They discontinued the business right after this bill was publicly announced. At this point, the business that supports homosexuals at least won’t go wrong, but business that against homosexuals rights will likely to pay more. the influence of homosexual to consumers behavior is highly related to the recognition of the public.
LikeLiked by 1 person
it is quite interesting post. also i found another interesting information from Absolut vodka. In 1981, absolut vodka print the ads in the magazines that it means they are focus the “gay” comsumer. Then ,in the 1990s, absolut make the vodka bottle in rainbow colors and ran on the back of “People”
magzine(2013). the colourful bottle has strong hints to comsumer and make more LGBT group to focuse this prouduct.Also this product has very strong personality. it is possible impact people who would like to chose this product.
LikeLike
it is the absolut vokda case study.
Click to access CASE-STUDY-Absolut-Predator-or-Pioneer.pdf
LikeLike
It’s interesting blog. Nowadays, homosexuality has been legalized in many places, such like America. http://www.huffingtonpost.com.au/2015/06/26/supreme-court-gay-marriage_n_7470036.html?ir=Australia
So in the future market category, marketers need to be taken into account homosexuals. Because they may not like clear classification, similar to a man’s or a woman’s. More precise market segmentation can bring to the company more profits.
LikeLike
While targeting of the LGBT community is certainly one aspect of many businesses marketing campaign, I think you could expand your argument to cover the risk/reward opportunity in the equality debate. At this point in the US the debate has been successfully shifted from moral palatability to equality. Given that perspective many companies see the benefit of being identified as an organization that supports equality. As the article below highlights this message resonates particularly well with the 24-34 segment that many businesses are targeting.
https://www.thinkwithgoogle.com/articles/lgbt-advertising-brands-taking-stance-on-issues.html
LikeLiked by 1 person
A very good topic for discussion and as stated very relevant at the moment. My feeling on this is that marketers should not target the LGBTI community as a separate consumer. As “Teick27” stated in their comment, companies are incorporating LGBTI people in their ads the same way ad campaigns are racially diverse etc. If you directly target or single out a specific market based on sexual preference, size or race etc. you run a greater risk of offending or alienating that segment than engaging it. A lot of companies are now including “plus size” models in their ads along with all other shapes and sizes, they are not singling out larger people as different, they are incorporating them in.
The world would be so much better off if people just remembered that we are all human beings and we all want to be accepted for who we are no matter what size, race, religion or sexual preference. You will get more respect from a LGBTI consumer or any other (for lack of better term minority) by incorporating them into your normal advertising than you would be singling them out as different.
I will finish with an example if you are marketing a 7 seat family car and you wish to get the same sex parent segment would you be better served to specifically advertise to them or just include a same sex couple in your ad campaign along with the usual ethnically diverse collage of families?
LikeLike
Segmenting the market to target homosexuals or transsexuals or any orientation can be limiting in and of itself. Simply including representation from LGBT in advertising and make a conscious effort to have diversity in all aspects of their business is the strongest way to include the segment. The way this is done his is very much dependent on the product or service being offered.
A mistake will be to go too far the other way and start using blatant stereotypes in advertising. Including the spectrum of orientation in a respectful way will be the most beneficial. Absolut vodka have a simple solution, but what of building companies, telcos, restaurants, clothing stores etc?
LikeLike
The topic is very original than others, but is it too smaller range for marketing ? And the sexual orientation will affect the decision because they will consider about different view with the same sex, it only aims at homosexuality. But the majority of customers in market is heterosexuaility led to focus the point in main consumption crowds, only if the company has a certainly market positioning.
LikeLike
An interesting article quote….’not every gay male and lesbian will show loyalty to companies that engage in gay-oriented marketing. To make effective and efficient marketing mix decisions, marketers must avoid the common practice of thinking of the gay market as a monolithic and homogeneous segment of all gay people’. I would go as far to say, that companies that ‘walk to talk’….by standing by LTBI public policy and proactively implementing corporate policy for staff/employees etc have a stronger marketing position that appeals to the broader community social conscious, rather than segmentation based on sexual orientation.
Oakenfull, GW 2013, ‘What Matters: Factors Influencing Gay Consumers’ Evaluations of ‘Gay-Friendly’ Corporate Activities’, Journal of Public Policy & Marketing, vol. 32, pp. 79-89. Available from: 10.1509/jppm.12.050. [24 August 2015].
LikeLike
The topic is definitely interesting but what are the real chances of marketers concentrating on such a confined group?
Will the amount spent for marketing be even close to the returns generated?
Considering it is still a nanoscopic sect in the society, with most of the countries still contemplating over their rights, can it be considered a potential market?
https://carm.org/percent-population-homosexual
Living in a broadminded society that we are in, there are still many masses that refuse to accept the ones who choose to share their sentiments publicly. Will it be a safe bet to create marketing strategies solely based on such a small (only in terms of numbers) sect?
LikeLike
Fascinating Topic. I do agree to large extent with the blogger that Gay consumers are likely to be more tech- savvy and keep up with the latest trends and do make a perfect Target group to introduce products to. I recently came across a Youtube “Boy Beauty Vlogger’, MANNY MUA, who truely believes that men can wear and teach make up as much as women. Manny has already garnered has over 500,000 subscribers in just over a year.
https://www.youtube.com/user/MannyMua733/about
I find it particularly interesting that the Cosmetic Brand, Gerard cosmetics have chosen an “out of the norm” choice of endorsers for their products which is sold to a large group of female consumers. A male Beauty Artist giving make- up tutorial to Women is quite a unique selling proposition and completely non-traditional marketing. While many of you argue about the target market further being segmented based on the sexual orientation. This is a unique example of blurring the lines between the LGBIT target market and the general mass target market.
LikeLike
interesting, i think this is part of human behavior, it clearly going to affect consumer habit, but i think you could do a regression to test the shopping items, like which type of people would more like to buy cosmetic ect that could proof of you the consumer behavior part
LikeLike
Interesting blog, very different.
But is it actually effective, to base your target consumers on gays and lesbians? correct me if am wrong,
Lets say in the clothing industry for example; or even the make up industry; targeting a minority society, and building a new fashion designed clothing line based on LGBT perceptions; would the organisation have a competitive advantage?.
There are still developed and developing countries who have a conservative notion about gays and lesbians, in terms of marketers. Yes it is true that gays have a more trendy style in terms of clothing.
in my opinion, I think marketers should look for targeting the majority, and consider strongly the minority,
take their opinions and suggestions.
Thank you. 🙂
LikeLiked by 1 person
This is a very interesting topic.
But I disagree with certain aspect about the whole gay and lesbian being targeted while marketing most of the products. Not many people would buy products that target specifically to gays or lesbians. Even people, who are gays or lesbians may find it offensive.
LikeLike
Very interesting perspective here, and I wonder how (if at all) sexual orientation effects consumer behaviour? Last time I checked, some straight men were just as fashion savvy as gay men, and some women like to apply their make-up like drag queens. I think this traps members of the LGBTI community into boxes, and tries to focus on the differences. When in fact, we are all the same creatures, some people simply choose to dress better than others!
LikeLike
Hi, couple comments if I may. You mention that homosexuals are being targeted by marketers. Some examples and elaboration on this would have been great. You mention research showing distrust/dislike; a reference here is needed. Also the statement that gay consumers are more tech-savvy is likely to be true in my opinion, some references to this would be great.
Otherwise, very interesting topic of conversation. A quick google search led me to this link:
http://www.businessinsider.com.au/malteasers-advert-gay-boyfriends-australian-ad-standards-board-dismisses-complaint-2015-4
Interesting topic here: Do you risk offending and loosing your major customer base by running homosexual targeted ads.
An interesting list here as well for reference: http://www.adweek.com/adfreak/50-gayest-ads-ever-133002
Thanks
LikeLike
This topic is quite interesting and is different from all the other topics.
Do you think that Australia is still conservative in Marketing?Especially when it comes to Segmenting and Targeting demographically? The T.V ads in Australia still did not start focusing on various population segments based on various cultures. The blog clearly states that the main target should be on gays and lesbians but this strategy is still not developed.
The main example what we can consider is that in retail or jewelry stores to display products of women clothing men are used as sales executive and the same thing goes for men clothing as well where in women are used to display products. The idea behind this is that the sales of that particular organisation might increase and the advertising makes it more credible.
http://vis.sagepub.com/content/9/4/15.abstract
LikeLike
Quite interesting topic But I disagree in some points about that whole gay and lesbian being targeted by most of the products. In my point of view not many people will but those products even if they targeted specifically for them. people who are gay and lesbian may find it offensive.
LikeLike
Great Blog!
Few years ago advertisement used female models to sell women’s products, and male artists for men’s products which included clothes, jewelry, perfumes, personal hygiene products etc. to make the advertisement more relevant and credible. For example in a clothing store, I will be attracted to a pretty girl wearing a nice dress, rather than a handsome guy holding the same nice dress.
In recent years I feel that the sexual orientation plays a great deal in influencing the consumer behavior. If the brand is trying to penetrate in a market in such a way that they have an impact on every strata, the gay community should definitely be kept in mind.But this concept is still limited to only developed nations like USA, Australia or England where being gay is not considered a taboo. In countries like India or parts of Africa, such concept would take time since the having a different sexual orientation is not considered a normal thing.But if such a strategy is considered, it can benefit the brand a great deal.
LikeLike
A very timely theme to address but there does not seem to be a post gay phase and that sexual relevance is insignificant, your blogs statements fail to correspond with how things seem to be.
The buying power of gay and lesbian consumers is quite significant as its been more quantified in the past decade and is due not to higher but more of a disposable income, the main reason being that there are not many children in the homes of gay and lesbian couples, although its changing and we are seeing a, “gayby boom”, which will create a new segment, allowing this group different buying patterns and a profitable segment for brands to target.
There are not many major companies out there that do not recognise the power of this market and that of the growing market that is the LGBTQ community .
As can be seen in the article by Brad Fuller, RIVET Global, that LGBTQ group
Is spending big at $800 billion annually in America and that they spend more often.
http://www.businessinsider.com/lgbt-community-untapped-market-consumer-brands-2013-6?IR=T
https://www.wnyc.org/story/advertisers-come-out-of-the-closet-openly-courting-gay-consumers/
LikeLike
I read the title and i was keen to see your thoughts on the topic but as i read it made me confused as you mentioned about research about gay and lesbian views on advertising. I felt that there wasn’t enough supporting data to prove a particular point . I also felt it was too generalised and based on ones thought rather than research. Although i thought the topic chosen was extremely logical but missed some reality.
LikeLike
Interesting topic,,,,here another article talks about segmenting the need for hotels to reach out to the gay and lesbian market?
“I have never experienced a hotel who gave a darn about my sexual preference, and isn’t that the way should be?” That’s the way it should be or we’re not there yet?
I bet most “straight” people out there have never experienced a hotel that cared about their sexual orientation, but I can tell you personally that there are still hotels that do seem to care when the sexual orientation is gay or lesbian. So because of that, there is still an opportunity for accommodations to successfully target the gay and lesbian market.
Gay people will travel to destinations and will stay at hotels which are friendly to them. A recent survey conducted by Harris Interactive showed that nearly half of all gay and lesbians say a destination’s gay friendliness is important when making travel decisions.
Is this all to say that gay travelers will forgo quality, price and service for a hotel that markets to them? Not at all. These are all just equally important. No different from the mainstream traveller.
Source;
http://hotelexecutive.com/business_review/1642/overt-marketing-of-sexual-orientation-going-too-far
LikeLike
This is a interesting topic, Part of human behaviour is finding/defining a group or community to which we belong and identify with. From a marketing perspective is it possible that their consumer behaviour has not changed – but that society is (from where it was a period of time ago) – more open and aware to this segment of consumer? That people are more openly identifying with this group as a collective of consumer – so we know more about how to engage with this audience as marketers – just as we would with white middle aged males? So I wonder is it a change in consumer behaviour or a change in segmentation strategies because more data is available?
LikeLike