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Chapter 11 Social Class

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Consumer Behavior

Consumer Behavior
Ninth Edition
Schiffman and Kanuk

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    Chapter 11 Social Class Chapter 11 Social Class Presentation Transcript

    • Chapter 11 Social Class and Consumer Behavior
    • Chapter Outline
      • What Ss Social Class?
      • The Measurement of Social Class
      • Geodemographic Clustering
      • The Affluent Consumer
      • The Middle Class Consumer
      • The Working Class
      • Selected Consumer Behavior Applications of Social Class
    • Social Class The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.
    • Status Consumption
      • Consumers endeavor to increase their social standing through consumption
      • Very important for luxury goods
      • Is different from conspicuous consumption
    • Discussion Question
      • Why is status consumption important for some consumers?
      • How can marketers promote increased status consumption?
    • Social Class Is Hierarchal
      • Status is frequently thought of as the relative rankings of members of each social class
    • Table 11.2 Percent Distribution of Five-Category Social-Class Measure SOCIAL CLASSES PERCENTAGE Upper 4.3 Upper-middle 13.8 Middle 32.8 Working 32.3 Lower 16.8 Total percentage 100.0
    • This luxury cruise line targets upscale customers.
    • 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
    • Objective Measures
      • Single-variable indexes
        • Occupation
        • Education
        • Income
        • Other Variables
      • Composite-variable indexes
        • Index of Status Characteristics
        • Socioeconomic Status Score
    • Discussion Question
      • What are the advantages to a marketer using the objective method to measure social class?
      • When would the subjective or reputational method be preferred?
    • Index of Status Characteristics (ISC) A composite measure of social class that combines occupation, source of income (not amount), house type/dwelling area into a single weighted index of social class standing.
    • Socioeconomic Status Score (SES) A multivariable social class measure used by the United States Bureau of the Census that combines occupational status, family income, and educational attainment into a single measure of social class standing.
    • This reference to a plastic surgeon may be part of targeting to upper-class consumers.
    • Occupational ranking in terms of honesty and ethical standards - Figure 11-2
    • Table 11.7 Typical Categories Used for Assessing Amount or Source of Income
      • Amount
        • Under $25,000/year
        • $25,000-$49,999
        • $50,000-$74,999
        • $75,000-$99,999
        • $100,000-$124,999
        • $125,000-$149,999
        • $150,000-$174,999
        • $175,000-$199,999
        • $200,000 and over
      • Source
        • Public welfare
        • Private financial assistance
        • Wages (hourly)
        • Salary (yearly)
        • Profits or fees
        • Earned wealth
        • Inherited wealth, interest, dividends, royalties
    • Geodemographic Clusters A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets.
    • PRIZM (Potential Rating Index by Zip Market) A composite index of geographic and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.
    • Explore the Prizm Product at Clarita’s Web site. weblink
    • The Affluent Consumer
      • Especially attractive target to marketers
      • Growing number of households can be classified as “mass affluent” with incomes of at least $75,000
      • Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income
      • Have different medial habits than the general population
    • Most large banks offer “private banking” services to their most affluent customers. weblink
    • Three segments of affluent consumers’ average household expenditures Figure 11-5
    • What Is the Middle Class?
      • The “middle” 50 percent of household incomes - households earning between $22,500 and $80,000
      • Households made up of college-educated adults who use computers, and are involved in children’s education
      • Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)
    • The Middle Class
      • There is evidence that the middle class is slowly disappearing in the U.S.
      • Growth of middle class in some Asian and Eastern European countries
      • Many companies offering luxury to the masses with near-luxury models and goods
    • This ad focuses on the affordable price of this treatment.
    • The Working Class?
      • Households earning $40,000 or less control more than 30 percent of the total income in the U.S.
      • These consumers tend to be more brand loyal than wealthier consumers.
    • Discussion Question
      • What types of products are targeted to the working class?
      • What issues must marketers consider when targeting their ads to the working class?
    • The U.S. Census is an excellent source of data on different economic groups. weblink
    • The Techno Class
      • Having competency with technology
      • Those without are referred to as “technologically underclassed”
      • Parents are seeking computer exposure for their children
      • Geeks now viewed as friendly and fun
    • Consumer Behavior and Social Class
      • Clothing, Fashion, and Shopping
      • The Pursuit of Leisure
      • Saving, Spending, and Credit
      • Social Class and Communication
    • Preferences of Americans for 100 Arts, Media and Leisure Pursuits Figure 11-8
    • Class Situations, Self-Perceptions, and Financial Orientations Figure 11-9