Social Class
Social Class
&
CONSUMER
BEHAVIOR
Social Class
Social Class may be defined as the relatively permanent,
homogeneous divisions in a society into which people
sharing similar values, interests, and behavior can be
grouped.
The Homeless
Scavenging
The Social Class
System
• The Upper (Old Money)
The Upper •
The Lower (New Rich)
Class
(2%) • The Upper (12%)
• Moderately successful business
The Middle
people, professionals
Class • The Lower (32%)
(45%) •White collar workers, technicians,
small business owners
The Lower •The Upper (38%)
Class •Blue collar (working class)
(54%) •The Lower (16%)
•Unskilled, chronically unemployed,
welfare poor
Social Mobility
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.
Differential fertility: Middle class reproduce fewer children than
lower class.
Upward-Pull Strategy
Examples of mobility
Horizontal Mobility
Mobility
Upward mobility
Upward Shift
A good example can be the Maruti 800 Ad camp. Of Rs 2599 which appeals to all
the two wheelers and the lower middle class people , who are looking for an upward
mobility in Status moving from a scooter to a Car
Measuring Social Class
Problems with Measures of Social Class:
Dated measures which are no longer valid
Increasing anonymity of society
Reputational method: Extensive interviews within a
community to determine reputations of individuals
Status crystallization: Assesses the impact of
inconsistency on the self and social behavior
Overprivileged: Income is 25 to 30 percent greater than
one’s social class median
Underprivileged: Income is 15 percent less than one’s
social class median
Hierogamy: Physically attractive trend to “marry up”
Measuring Social Class (cont.)
.
Willingness to
Buy
Consumer Market
Demand Potential
Ability to
Buy
Discretionary income
INFORMATION SITUATIONAL
BUYING-DECISION PROCESS FACTORS
Commercial When
sources Need recognition consumers buy
Where
consumers buy
Identification of alternatives
Ascribed, or inherited
Achieved, or earned
Characteristics of Social Class
Income
Occupation
Housing
Characteristics of Social Class
...
Consumers throughout the world believe that it is
critical to acquire a functional understanding of
computers in order to ensure that they do not become
obsolete or hinder themselves socially or
professionally
At the other end of the life and age spectrum (i.e. 55-
yr-old & above), professionals who were initially
reluctant to learn computers, are now seeking
personal computer training
Upper
Upper-Middle
Middle
Lower-Middle
Lower
Social Class Structure
Nine–Category Social Classes
Upper-Upper
Upper-Middle
Upper-Lower
Middle-Upper
Middle-Middle
Middle-Lower
Lower-Upper
Lower-Middle
Lower-Lower
Coleman and Rainwater Approach
Social-Psychological Approach :
Class Identification
collegiate credentials
Upper-Middle expected
Occupation
Income
Education
Manners and style
Ownership
Political
Prestige
Genealogy
Operationalizing Household
Social
Class
Social
Class
Western Mobile
Managers
Entrepreneurship
Group Lack
two or more individuals of
with a shared sense Loyalty
of identity
Group
Nonmobile
Managers Lack of
Eastern
Entrepreneurship
Identity Lifetime
Employment
Every Society
U.S.A.
Embarrassed about it, ideal is equality & meritocracy
Intergenerational mobility limited but possible
Western Europe: vestiges of aristocracy
Central and South America
More dichotomized (2% control 95%)
hegemony breaks down instability
Japan:
Very hierarchical, large middle class
India:
Caste system
China: “Classless”
Class vs. Caste
Achieved Versus Ascribed Status:
Achieved status: Status earned through hard work or diligent study
Ascribed status: Status one is born with
Social Mobility:
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
Differential fertility: Middle class reproduce less than
replacement value, allowing for upward mobility
India
A Caste System
Occupation & Marriage
Brahmin: teachers & priests
Kshatriya: warriors
Vaisya: merchants
Sudra: dirty work
CASTE IN INDIA
Basis is kinship
Associated occupation
Clearly separated, self-regulating groups
No individual mobility in one lifetime
No intercaste marriage
Religious interpretation ranked by purity
Occupations and Class
All three dimensions of social stratification:
class, status and authority are reflected in
a person’s occupation.
Different occupations have different
relations to the means of economic
production…
Different levels of social status…
And different levels of authority to
command.
CLASS
Basis is economic: income, occupation
Associated lifestyle
Mobility is possible: downward and upward
Interclass marriage is possible
Class at birth affects life chances: ability to fulfill one’s
potential
Persons in the same class more likely to associate with
each other, intermarry, have similar hobbies, tastes,
political views
American mythology: open class system where all have
equal opportunity to succeed
Reference Groups and
Family
What is a Group?
12-65
Reference Group
12-66
Types of Reference Groups
Classified by:
Membership
Symbolic
Extent of interaction
Direct versus indirect
Nature of attraction
Aspirational versus dissociative
Degree of formality
Formal versus informal
12-67
Types of Reference Group
Influence
Informational Influence
When a member of reference group provides
information used to make purchase decisions
Normative Influence
When we conform to group norms in order to
belong to that group
Identification Influence
When we identify with, and internalize, a
group’s values and behaviours
12-68
Factors Encouraging Conformity:
A Reference Group Must ...
Inform or make the individual aware of a
specific product or brand
Provide the individual with the opportunity
to compare his or her own thinking with
the attitudes and behaviour of the group
Influence the individual to adopt attitudes
and behaviour that are consistent with the
norms of the group
Legitimize the decision to use the same
products as the group
12-69
Selected Consumer-Related
Reference Groups
Friendship groups
Shopping groups
Work groups
Virtual groups or communities
Brand communities
Consumer-action groups
celebrities
12-70
12-71
Reference Groups and Marketing
Strategy
Recognize the extent of reference group
influence in a situation
Identify the most effective type of
reference group influence
Identify possible reference group members
to use in promotions
Attempt to increase reference group
influence
12-72
Households
Family Households:
Married couple,
Nuclear family,
Extended family
Households
Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
12-73
The Typical Household?
12-74
The Family Life Cycle
Traditional Family Life Cycle
Stage I: Bachelorhood
Stage II: Honeymooners
Stage III: Parenthood
Stage IV: Post-parenthood
Stage V: Dissolution
Modifications - the Nontraditional FLC
12-75
12-76
Figure 12-6 Noteworthy Nontraditional
FLC Stages
Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples
to elect not to have children. Contributing forces
are more career-oriented married women and
delayed marriages.
Couples who marry later More career-oriented men and women and
in life (in their late 30s or greater occurrence of couples living together.
later) Likely to have fewer or even no children.
Couples who have first Likely to have fewer children. Stress quality
child later in life (in their lifestyle: “Only the best is good enough”
late 30s or later)
12-77
Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more
children out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while
establishing their careers. Divorced daughter or
son and grandchild(ren) return home to parents.
Frail elderly parents who move in with children.
Newlyweds living with in-laws.
12-78
Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.
Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.
12-79
12-80
Dynamics of Husband-Wife
Decision Making
Husband-Dominated
Wife-Dominated
Joint
Equal
Syncratic
Autonomic
Solitary
Unilateral
12-81
Consumer Socialization
12-82
12-83
Other Functions of the Family
Economic well-being
Emotional support
Suitable family lifestyles
12-84
Family and Marketing Strategy
Use the FLC for segmentation and positioning
Recognize the diverse consumption roles
within the family
Understand and use the dynamics of
husband-wife decision making
Understand and use the consumer
socialization role played by the family
Recognize the changing nature of Canadian
families.
12-85