Consumer Behavior

1. SOCIAL CLASS
CHAPTER 5
LECTURER: ABDUL MUBEEN RASHIDI
Ministry of Higher Education
Mashal University
BBA Department
4th Semester
Consumer Behavior

2. Defined as “the division of members of society into distinct status
classes/ groups so that members of each have relatively the same
status and other classes have some more or less status”.
Definition indicate that the amount of status differentiate one class from
another class.

3. 1. Power
2. Prestige
3. Consumption pattern / wealth
Power – it is considered that the person, who has more purchasing
power, has higher status /
power in the society and their choice influence the others to use similar
things.

4. Prestige – it is related to the degree of recognition and respect in the
society, people are recognized by the class they belong, products they
use and the status they have in the society.
Wealth – We should clearly know the difference between income and
wealth. Income is the money that we spend whereas wealth is
resources that a person or the family has.

5. Consumptions is not something static, it has different dynamics. It has a variety of concepts:
Concept of Status Consumption
A research was conducted in Canada and Australia which were related to two types of
consumptions which are as follows:
a. Status Consumption – which means that we consume the products to show our status in the
society? For example, using a big car, wearing an expensive wrist watch, keeping parker pen
etc.
b. Conspicuous Consumption – it is the kind of consumption which takes place to show off others.
In this consumption, people try to exceed in consumption from the higher status people.

6. There are different categories of classes:
Two Classes
1. Blue Collar – those people who are skilled labors
2. White Collar – people of higher status includes lawyers, doctors, engineers etc.
Three Classes
1. Blue Collar – Lower (subordinates, lower level employees),
2. Gray Collar – Middle (assistant managers, supervisors),
3. White Collar – Upper Class (executives, directors)

7. Profile of Spending Habits:
Upper Upper Class
- No conspicuous spending
- Do not shop personally, either their servants will go or they may shop online.
Lower Upper Class
- Represent new money, those who recently got money and became rich
- Will go for conspicuous consumption
- They will go for higher products, costly products to show their status.

8. Profile of Spending Habits:
Upper Middle Class
- These are career oriented – these people have good jobs, and grades
- They have keen interest in obtaining good things in life
- They are normally conspicuous because they have to maintain their standards in the
society.
Lower Middle Class
- These people want their children to well behave
- They want to appear neat and clean

9. Profile of Spending Habits:
Upper Lower Class
- They normally strive for security and want those things that can protect them.
Lower Lower Class
- These are the people who just want to pass their time because the things are out of work
for them.

10. A reference group is any person or group that serves as a point of comparison (or
reference) for an individual in the formation of either general or specific values,
attitudes, or behavior.
Reference groups that influence general values or behavior are called normative
reference groups.
Reference groups that serve as benchmarks for specific or narrowly defined
attitudes or behavior are called comparative reference groups.

11. 1. A contractual group is a group in which a person holds membership or has
regular face-to-face contact and of whose values, attitudes, and standards he or
she approves.
2. An aspirational group is a group in which a person does not hold membership
and does not have face-to-face contact, but wants to be a member. Thus it
serves as a positive influence on that person’s attitudes or behavior.
3. A disclaimant group is a group in which a person holds membership or has
face-to-face contact but disapproves of the group’s values, attitudes, and
behavior.

12. 4. An avoidance group is a group in which a person does not hold membership
and does not have face-to-face contact and disapproves of the group’s values,
attitudes, and behavior. Thus the person tends to adopt attitudes and behavior that
are in opposition to those of the group.

13. 1. Information and Experience
An individual who has firsthand experience with a product or service, or can easily
obtain full information about it, is less likely to be influenced by the advice or
example of others. On the other hand, a person who has little or no firsthand
experience with a product or service, and does not expect to have access to
objective information about it.
2. Credibility, Attractiveness, and Power of the Reference Group
A reference group, which is perceived as credible, attractive, or powerful can induce
consumer attitude and behavior change. For example, when consumers are
concerned with obtaining accurate information about the performance or quality of a
product or service, they are likely to be persuaded by those they consider to be
trustworthy and knowledgeable.

14. 3. Conspicuousness of the Product
The potential influence of a reference group varies according to how visually or
verbally conspicuous a product is to others. A visually conspicuous product is one
that can be seen and identified by others, and that will stand out and be noticed
(e.g., a luxury item or novelty product).

15. 4. Reference Group Impact on Product and Brand Choice
In some cases, and for some products, reference groups may influence both a
person’s product category and brand (or type) choices. Such products are called
pro- duct-plus, brand-plus items. In other cases, reference groups influence only
the product category decision. Such products are called product-plus, brand-
minus items. In still other cases, reference groups influence the brand (or type)
decision. These products are called product-minus, brand-Plus items. Finally, in
some cases, reference groups influence neither the product category nor the brand
decision; these products are called product-minus, brand-minus items.

16. 5. Reference Groups and Consumer Conformity
Marketers are particularly interested in the ability of reference groups to change
consumer attitudes and behavior (i.e., to encourage conformity). To be capable of
such influence, a reference group must:
1. Inform or make the individual aware of a specific product or brand;
2. Provide the individual with the opportunity to compare his or her own thinking
with the attitudes and behavior of the group;
3. Influence the individual to adopt attitudes and behavior that are consistent with
the norms of the group;
4. Legitimize an individual’s decision to use the same products as the group.

17. Reference group appeals have two principal benefits for the advertiser: they
increase brand awareness and they serve to reduce perceived risk.
1. Increased Brand Awareness
provide the advertiser with the opportunity to gain and retain the attention of
prospective consumers with greater ease and effectiveness than is possible with
many other types of promotional campaigns.
Celebrities tend to draw attention to the product through their own popularity.

18. 2. Reduced Perceived Risk
The use of one or more reference group appeals may also serve to lower the
consumer’s perceived risk in purchasing a specific product.
Following are examples of how reference group appeals serve to lower the
consumer’s perceived risk.
a) Celebrity: Consumers who admire a particular celebrity often have the following
reactions to the celebrity’s endorsement or testimonial.
b) Expert. When consumers are concerned about the technical aspects of a
product, they welcome the comments of an acknowledged or apparent expert.
c) Common Man. When consumers are worried about how a product will affect
them personally, they are likely to be influenced by a common man endorsement
or testimonial.

19. Thank you and Good Bye, till next class.