MK 476 Chapter 14 Social Class Influences on Consumer Behavior
Social Class <ul><li>The concept of social class implies that some people have more power, wealth and opportunity than oth...
Social Class <ul><li>Most societies have a  social class hierarchy  that groups members of the society according to status...
Types of Social Class Systems <ul><li>Most societies have three major classes:  high, middle and low. </li></ul><ul><li>Th...
Types of Social Class Systems <ul><li>In different cultures the upper class in most likely to be similar to each other tha...
Types of Social Class Systems <ul><li>Families whose income level is 20 to 30 percent over the median of their class are c...
Social Class Influences <ul><li>Members of a social class are more likely to be influenced by individuals in their own soc...
Social Class Influences <ul><li>Status Float  can also occur, whereby trends start in the lower and middle classes and the...
How Social Class is Determined <ul><li>A common misconception is that the more money you make the higher your social stand...
How Social Class is Determined <ul><li>In general, Income is actually considered a better predictor of consumption than so...
How Social Class is Determined <ul><li>Income is more useful in explaining the consumption of products and services than a...
How Social Class is Determined <ul><li>The greatest determinant of class standing is occupation. </li></ul><ul><li>Occupat...
How Social Class is Determined <ul><li>Residence, possessions, family background, and social interactions can also indicat...
How Social Class Changes Over Time <ul><li>Trends that influence the evolution of social class structures are: </li></ul><...
How Social Class Changes Over Time <ul><li>Upward Mobility  refers to raising one’s status level. </li></ul><ul><ul><li>Us...
How Social Class Changes Over Time <ul><li>Downward mobility  refers to the lowering of one’s social standing. </li></ul><...
How Social Class Changes Over Time <ul><li>Social Class Fragmentation  refers to the disappearance of class distinctions. ...
How Does Social Class Affect Consumption <ul><li>Social class is viewed as a cause or motivation for consumer acquisition,...
How Does Social Class Affect Consumption <ul><li>Conspicuous Consumption  is the acquisition and display of goods and serv...
How Does Social Class Affect Consumption <ul><li>Conspicuous waste  is visibly buying products and services that one never...
How Does Social Class Affect Consumption <ul><li>Compensatory consumption  is an attempt to offset deficiencies or lack of...
How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>Defined  money  is a medium of...
How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>Consumers treat money differen...
How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>The positive side of money is ...
Consumption Patterns of Specific Social Classes <ul><ul><li>The Upper Class </li></ul></ul><ul><ul><li>More likely to view...
Consumption Patterns of Specific Social Classes <ul><ul><li>The Middle Class </li></ul></ul><ul><ul><li>Look to upper clas...
Consumption Patterns of Specific Social Classes <ul><li>The Working Class </li></ul><ul><ul><li>Known for membership in la...
Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>About 7 million in the...
Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>Maintain self esteem b...
Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>Scavenging is the find...
Marketing Implications <ul><li>Social class motives and values can determine which products or services consumers desire. ...
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Look To Upper Class For Guidance Related To Proper Dining Etiquette, Apparel Selections

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Look To Upper Class For Guidance Related To Proper Dining Etiquette, Apparel Selections

  1. 1. MK 476 Chapter 14 Social Class Influences on Consumer Behavior
  2. 2. Social Class <ul><li>The concept of social class implies that some people have more power, wealth and opportunity than other do. </li></ul><ul><li>Many consumers show off their possessions or use possessions as status symbols. </li></ul><ul><li>Members of a social class can raise their social standing or fall in social standing which will affect their acquisition, consumption and disposition decisions. </li></ul><ul><li>By examining the nature of social class, types of class systems and trends marketers find valuable information. </li></ul>
  3. 3. Social Class <ul><li>Most societies have a social class hierarchy that groups members of the society according to status (high to low). </li></ul><ul><li>Members of a social class tend to share similar values and behavior patterns. </li></ul><ul><li>Social classes are not formal groups with a strong identity, but loose collections of individuals with similar life experiences. </li></ul>
  4. 4. Types of Social Class Systems <ul><li>Most societies have three major classes: high, middle and low. </li></ul><ul><li>The USA is divided into seven levels according to exhibit 14.3 on page 333. (most individuals in any society are concentrated in the middle class). </li></ul><ul><li>Although most societies have some kind of hierarchical structure, the size and composition of the classes depend on the relative prosperity of a particular country. Refer to page 334 exhibit 14.4 </li></ul>
  5. 5. Types of Social Class Systems <ul><li>In different cultures the upper class in most likely to be similar to each other than any other classes because the upper classes tend to be more cosmopolitan and international in orientation. </li></ul><ul><li>Lower classes, are the most likely to culturally bound and unaware of other cultures and thereby not influenced by them. </li></ul>
  6. 6. Types of Social Class Systems <ul><li>Families whose income level is 20 to 30 percent over the median of their class are considered over privileged because they have the funds to buy items beyond basic necessities. </li></ul><ul><li>Class average refers to families who income is average for their social class. </li></ul><ul><li>Underprivileged families are those with income below the average for their social class. </li></ul>
  7. 7. Social Class Influences <ul><li>Members of a social class are more likely to be influenced by individuals in their own social class than by those in other classes. </li></ul><ul><li>One theory of social class influence is the trickle-down effect in which trends that start in the upper classes are then copied by lower classes. </li></ul>
  8. 8. Social Class Influences <ul><li>Status Float can also occur, whereby trends start in the lower and middle classes and then spread upward. </li></ul><ul><li>Example: Blue Jeans, Tattoos, and Musical Styles </li></ul>
  9. 9. How Social Class is Determined <ul><li>A common misconception is that the more money you make the higher your social standing. </li></ul><ul><li>Income is not strongly related to social class for several reasons: </li></ul><ul><ul><li>Income levels overlap social classes </li></ul></ul><ul><ul><li>Income increases greatly with age, but older workers do not necessarily more up in social standing. </li></ul></ul><ul><ul><li>Dual career families generate a higher than average income buy not necessarily higher social standing. </li></ul></ul>
  10. 10. How Social Class is Determined <ul><li>In general, Income is actually considered a better predictor of consumption than social class. </li></ul><ul><li>Social class is a better predictor of consumption when it reflects lifestyles and values and does not involve high monetary expenditures, such as clothes, sports equipment or furniture. </li></ul>
  11. 11. How Social Class is Determined <ul><li>Income is more useful in explaining the consumption of products and services than are not related to class-symbols such as boats, recreational vehicles- but that do involve substantial expenditures </li></ul><ul><li>Income cannot explain social class, but social class often determines how income is used. </li></ul><ul><li>Social class aids in the understanding of consumer behavior and that social standing is determined by a variety of factors in addition to income. </li></ul>
  12. 12. How Social Class is Determined <ul><li>The greatest determinant of class standing is occupation. </li></ul><ul><li>Occupations that require higher levels of education, skill or training, are viewed as higher in status than others. </li></ul><ul><li>A college degree is a crucial factor in gaining entry into higher-status occupations. </li></ul><ul><li>Highly educated consumers tend to read and travel more and to be less adverse to trying new things when compared to the rest of the population. </li></ul>
  13. 13. How Social Class is Determined <ul><li>Residence, possessions, family background, and social interactions can also indicate class level. </li></ul><ul><li>Your Inherited status is the status which is adopted from parents at birth. </li></ul><ul><li>The earned status is the status you acquire later in life through your own achievements. </li></ul>
  14. 14. How Social Class Changes Over Time <ul><li>Trends that influence the evolution of social class structures are: </li></ul><ul><ul><li>Upward mobility </li></ul></ul><ul><ul><li>Downward mobility </li></ul></ul><ul><ul><li>Social class fragmentation </li></ul></ul>
  15. 15. How Social Class Changes Over Time <ul><li>Upward Mobility refers to raising one’s status level. </li></ul><ul><ul><li>Usually achieved by educational or occupational achievement </li></ul></ul><ul><ul><li>Education is the biggest ticket for middle class upward mobility. </li></ul></ul><ul><ul><li>In the US, more than 1/3 of children from blue-collar workers are college graduates and have a 30% chance of raising their occupational status. </li></ul></ul>
  16. 16. How Social Class Changes Over Time <ul><li>Downward mobility refers to the lowering of one’s social standing. </li></ul><ul><ul><li>Due to loss of jobs </li></ul></ul><ul><ul><li>Rising inflation </li></ul></ul><ul><ul><li>Children may now have a difficult time reaching their parents status known as status panic. </li></ul></ul><ul><ul><li>Downward mobility creates disappointment and disillusionment and can lead to loss of possessions. </li></ul></ul>
  17. 17. How Social Class Changes Over Time <ul><li>Social Class Fragmentation refers to the disappearance of class distinctions. This fragmentation is tied to several factors: </li></ul><ul><ul><li>Upward and downward mobility have blurred class distinctions. </li></ul></ul><ul><ul><li>Increased availability of mass media has exposed consumers to the values and norms of other classes and cultures. </li></ul></ul><ul><ul><li>The advances in communication technology have increased interaction across social class lines. </li></ul></ul>
  18. 18. How Does Social Class Affect Consumption <ul><li>Social class is viewed as a cause or motivation for consumer acquisition, consumption and disposition through four major areas: </li></ul><ul><ul><li>Conspicuous consumption </li></ul></ul><ul><ul><li>Acquisition as status symbols </li></ul></ul><ul><ul><li>Compensatory consumption </li></ul></ul><ul><ul><li>The meaning of money </li></ul></ul>
  19. 19. How Does Social Class Affect Consumption <ul><li>Conspicuous Consumption is the acquisition and display of goods and services to show off one’s status. </li></ul><ul><ul><li>Visibility of goods and services is critical because their message can be communicated only if others see it. </li></ul></ul><ul><ul><li>Observed in most social classes. </li></ul></ul>
  20. 20. How Does Social Class Affect Consumption <ul><li>Conspicuous waste is visibly buying products and services that one never uses. </li></ul><ul><li>Status Symbols refers to products or services that tell others about someone’s social class standing. </li></ul><ul><li>Status symbols sometimes move in reverse directions known as parody display . </li></ul><ul><li>Status symbols can become fraudulent symbols if they are widely possessed </li></ul>
  21. 21. How Does Social Class Affect Consumption <ul><li>Compensatory consumption is an attempt to offset deficiencies or lack of esteem by devoting attention to consumption. </li></ul><ul><ul><li>Usually explained purchase patterns of working class but is now apparent in all class levels. </li></ul></ul>
  22. 22. How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>Defined money is a medium of exchange or standard of payment. </li></ul></ul><ul><ul><li>Money is viewed as a means of acquiring things that will not only bring happiness and life fulfillment but also provide a sense of status and prestige. </li></ul></ul><ul><ul><li>Money allows individuals to acquire status objects as indicators of social class. </li></ul></ul>
  23. 23. How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>Consumers treat money differently some spend and some save. </li></ul></ul><ul><ul><li>Spenders tend to be healthier and happier than self-deniers. But, many individuals spend more than they have end up in bankruptcy. </li></ul></ul>
  24. 24. How Does Social Class Affect Consumption <ul><li>The Meaning of Money </li></ul><ul><ul><li>The positive side of money is viewed to assist in the acquisition of needed items, a higher quality of life, and ability to helps others in society. </li></ul></ul><ul><ul><li>Also perceived as a reward for hard work. </li></ul></ul><ul><ul><li>The negative side of money can lead to obsession, greed, dishonesty, and potentially harmful practices such as gambling, prostitution, and drug dealing. </li></ul></ul>
  25. 25. Consumption Patterns of Specific Social Classes <ul><ul><li>The Upper Class </li></ul></ul><ul><ul><li>More likely to view themselves as intellectual, political, and socially conscious. </li></ul></ul><ul><ul><li>Attend theater, invest in art, purchase books, travel, donate time and money to good causes, attend prestigious schools and belong to private clubs. </li></ul></ul>
  26. 26. Consumption Patterns of Specific Social Classes <ul><ul><li>The Middle Class </li></ul></ul><ul><ul><li>Look to upper class for guidance related to proper dining etiquette, apparel selections , leisure activities, vacation and educational classes for self improvement. </li></ul></ul><ul><ul><li>Greater portion of food budget is spend on take out meals or dining at nice restaurants. </li></ul></ul>
  27. 27. Consumption Patterns of Specific Social Classes <ul><li>The Working Class </li></ul><ul><ul><li>Known for membership in labor unions </li></ul></ul><ul><ul><li>Depends on family for economic and social support </li></ul></ul><ul><ul><li>More likely to eat at home </li></ul></ul><ul><ul><li>More likely to live in mobile home </li></ul></ul><ul><ul><li>Prefer to spend rather than save, if they save they prefer savings accounts to investments. </li></ul></ul>
  28. 28. Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>About 7 million in the USA </li></ul></ul><ul><ul><li>Made up of drug & alcohol abusers, former mental patients, members of minority female-head of households, and those who experience financial setbacks. </li></ul></ul><ul><ul><li>Noted for struggling to survive </li></ul></ul>
  29. 29. Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>Maintain self esteem by </li></ul></ul><ul><ul><ul><li>Distracting themselves from more dependent individuals on welfare or in shelters and from institutions like the salvation army. </li></ul></ul></ul><ul><ul><ul><li>Accepting a street role identity </li></ul></ul></ul><ul><ul><ul><li>Telling fictitious stories about past or future accomplishments. </li></ul></ul></ul>
  30. 30. Consumption Patterns of Specific Social Classes <ul><ul><li>The Homeless </li></ul></ul><ul><ul><li>Scavenging is the finding of used or partially used goods that other individuals and institutions have discarded. </li></ul></ul><ul><ul><li>Also known for begging, redeeming bottles or cans for deposit, collecting scrap metal, cleaning windshields at intersections and day laborers. </li></ul></ul><ul><ul><li>Prefer spending money when available on special treats. </li></ul></ul>
  31. 31. Marketing Implications <ul><li>Social class motives and values can determine which products or services consumers desire. </li></ul><ul><li>Marketers can design advertising and personal selling messages to appeal to various social classes. </li></ul>

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