Chapter 11: Social Class and Consumer Behavior

Introduction A social class system can be defined as:

A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values and lifestyles.

Many behaviors are shared. Therefore, the applicability of social class in the formulation of marketing strategies is product specific and situation specific.

Content Examination of the characteristics

of social class and the various methods of measuring social status.

Emphasis on the impact of social stratification on purchase and consumption and opportunities for MKT strategies.

The concept of social class Individual classes must meet five

criteria for a social class to exist in a society:

they must be bounded: clear breaks between classes Ordered: status, prestige… Mutually exclusive: an individual can only belong to

one social class. Exhaustive: every member of a social system must fit

into some class. Influential: behavioral variations between the classes.

Social Class and Social Status Status is frequently thought of as

the relative rankings of members of each social class wealth power prestige

Social Comparison Theory states that individuals

compare theirown possessions against those

of others to determine their relative social standing.

Status ConsumptionThe process by which consumers actively increase their social standing through conspicuous consumption or possessions

Social Class Measurement Subjective Measures: individuals are

asked to estimate their own social-class positions

Reputational Measures: informants make judgments concerning the social-class membership of others within the community

Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answers

Social structure in the US Functional approach (Gilbert and Kahl):

focuses on occupational role, income level, living conditions, and identification with a possibly disadvantaged ethnic or racial group.

Reputational approach (Coleman and Rainwater) is designed to reflect popular imagery and observation of how people interact with one another-as equals, superiors or inferiors. Personal and group prestige is at his heart.

Objective Measures Single-variable

indexes Occupation Education Income Other Variables

Composite-variable indexes Index of Status

Characteristics Socioeconomic

Status Score

Single-Item Indexes Single-Item indexes allow one to estimate the

impact of specific status dimensions on the consumption process.

Education: highly valued in our culture. Education may influence individual’s tastes, values and info-processing style. Education level is both correlated with both occupation and income.

Occupation: What do you do? Associated with education and income. Socioeconomic index (SEI) developed by Duncan is used.

Income: used as a measure of both purchasing power and status. Individual or family income? Before or after taxes? Salary or total income? Reluctance to reveal income?

Multi-Item Indexes Combination of a number of

socioeconomic factors to form one overall measure of social-class standing.

They reflect better the complexity of social class than single-variable indexes.

Ex: ISC (Index of Status characteristics) is a weighted measure of: occupation, source of income, house type, quality of neighborhood (dwelling).

SES (socioeconomic status score): occupation, family income and educational attainment.

Which scale should be use? There is no ONE, one-dimensional

status or class continuum. The challenge is to select the most appropriate status dimension for the problem at hand. Ex 1: Studies of taste and intellectually

oriented activities such as magazine readership or TV viewing should consider education at the most relevant dimension.

EX 2: Occupation might be most relevant for studies focusing on leisure time pursuits.

Social stratification and Marketing Strategy

Several tasks for managers to consider: Which aspects of the consumption

process are affected by social status for their product categories?

Implies research of social class associated with product/brand usage, purchase motivation, outlet selection, media usage…

A product/brand may have different meanings to members of different social strata (blue jeans)

Different purchase motivations for the same product may exist between social strata (credit cards).

Social class and useful segmentation variable

Having selected a segment based on usage rate, purchase motivation or product/brand meaning, the marketer must position the brand in a manner consistent with the target market.

Remember that members of social strata desire to emulate some aspects of the lifestyle of higher social strata at least some of the time (Ex Anheuser-Busch).

Consumer Behavior and Social Class

Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication

Figure 11.1 Targeting Upscale Customers

Figure 11.2 Targeting Upper-class Consumers

Table 11.9 Social-Class Profiles

THE UPPER-UPPER CLASS--COUNTRY CLUB•Small number of well-established families•Belong to best country clubs and sponsor major charity events•Serve as trustees for local colleges and hospitals•Prominent physicians and lawyers•May be heads of major financial institutions, owners of major long-established firms

•Accustomed to wealth, so do not spend money conspicuously

THE LOWER-UPPER CLASS--NEW WEALTH•Not quite accepted by the upper crust of society•Represent “new money”•Successful business executive•Conspicuous users of their new wealth

Table 11.9 continued

THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS

•Have neither family status nor unusual wealth•Career oriented•Young, successful professionals, corporate managers, and business owners

•Most are college graduates, many with advanced degrees•Active in professional, community, and social activities•Have a keen interest in obtaining the “better things in life”•Their homes serve as symbols of their achievements•Consumption is often conspicuous•Very child oriented

Table 11.9 continued

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS

•Primary non-managerial white-collar workers and highly paid blue-collar workers

•Want to achieve “respectability” and be accepted as good citizens

•Want their children to be well behaved•Tend to be churchgoers and are often involved in church-sponsored activities

•Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing

•Constitute a major market for do-it-yourself products

Table 11.9 continued

THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY

•The largest social-class segment•Solidly blue-collar•Strive for security •View work as a means to “buy” enjoyment•Want children to behave properly•High wage earners in this group may spend impulsively•Interested in items that enhance leisure time (e.g., TV sets)•Husbands typically have a strong “macho” self-image•Males are sports fans, heavy smokers, beer drinkers

Table 11.9 continued

THE LOWER-LOWER CLASS--ROCK BOTTOM•Poorly educated, unskilled laborers•Often out of work•Children are often poorly treated•Tend to live a day-to-day existence

Figure 11.3 Appealing to Upward Mobility

Geodemographic ClustersGeodemographic Clusters

A composite segmentation strategy that uses both geographic

variables (zip codes, neighborhoods) and demographic

variables (e.g., income, occupation) to identify target

markets.

Table 11.13 A Profile of PRIZM Cluster: “Urban Gold Coast” (Cluster 06)

SOCIOECONOMIC FACTORS:

Percent of U.S. households 0.60%Predominant age range MixedSocioeconomic group AffluentDemographic caption Professional urban singles and couplesEducation College graduatesOccupation White collarRace/Ethnicity White, Asian

LIFESTYLE:

Use WebTV onlineListen to Oldie GoldiesRead New York MagazineWatch Politically Incorrect

FOR NEXT TIME 1. Assemble a collection of print

ads which seem to be directed at different social strata.

2. Comment on the incorporation of any status symbols into the ads.