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Consumer Behavior   Social Class                       Conducted by            Hao Xue & Yoshihiro Horie
Social ClassDefinitionThe division of members of a society into a hierarchy of distinct statusclasses, so that members of ...
Social Class profile  The lower                                     The lower-                                       The l...
Puzzle The lower                 The lower-                  The lower-             The upper-                 The upper- ...
Puzzle The lower                    The lower-                    The lower-                The upper-                   T...
Puzzle The lower                 The lower-                  The lower-             The upper-                 The upper- ...
Puzzle The lower                        The lower-                   The lower-                    The upper-             ...
Puzzle The lower                 The lower-                  The lower-             The upper-                 The upper- ...
Puzzle The lower                    The lower-                   The lower-                The upper-                  The...
How is it important to understand social class in consumer behaviour study?Social class is a crucial external factor which...
Trends for social class evolution        Upward Mobility                            Downward MobilityThe measurement of so...
How social class affects purchase decisions?Class differences in World View
How social class affects purchase decisions?Taste Culture, Codes, and Cultural Capital are difference among different soci...
Marketing strategies for different social classTargeting working class                                 Purchase at the sam...
Marketing strategies for different social classTargeting the Affluent          Attitudes                    Different Segm...
Apply Status Symbols for other social segmentations   Invidious        Conspicuous        The Trophy          Porody   Dis...
Social Class Concept applies to marketing strategy      Clothing, fashion and      shopping                               ...
In class activity• Social Class Symbols: In-class Activity Game• Chintz or Shag game• http://www.pbs.org/peoplelikeus/game...
What is your social class?•   Noveau riche•   Middle middle•   Old money•   Working class•   Trailer house
Social mobility
Social mobility• A movement of individuals, groups or families  through a system of social hierarchy  o Vertical mobility ...
Vertical mobilityThree criteria • Family income: career transition • Occupational status: celebrity, musician • Educationa...
Lower class to upper class
Justin Bieber                             Ryan Gosling                 Celebrity                 musicianRachel McAdams
Born in Ladysmith BC, the daughter of Barry, a furnace repairman, and Carol                           Anderson, a waitress...
People may move up or down the social ladder within their lifetime orfrom one generation to the next. That everyone has th...
Thank you
Consumer Behavior - Social Class
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Consumer Behavior - Social Class

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Consumer Behavior - Social Class

  1. 1. Consumer Behavior Social Class Conducted by Hao Xue & Yoshihiro Horie
  2. 2. Social ClassDefinitionThe division of members of a society into a hierarchy of distinct statusclasses, so that members of each class have the same relative statusand members of all other classes have either more or less statusStructure of Social Class Upper Class Upper Class Middle Class Middle Class Lower Class Lower Class Traditional Social Structure Olive Type Social Structure
  3. 3. Social Class profile The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class Social Class Structure in Canada (Differentiated by Income) Strugglers Lower-Lower Security- minded majority Lower Classes Working Class Faith full followers Middle Class Upper-Middle Achieving professionals Lower-Upper New wealth Upper-Upper Country club establishment 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Upper- Lower- Upper- Middle Working Lower Lower- Upper Upper Middle Class Class Classes Lower Series1 0.30% 1.20% 12.50% 32% 38% 9% 7%
  4. 4. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class• Small number of well – established families• Sponsor major charity events• Serve as trustees for local universities and hospitals• prominent physicians and lawyers• May be heads of major financial institutions, owners ofmajor long- established firms• accustomed to wealth, so do not spend moneyconspicuouslyDo you know which Social Class it refers to?
  5. 5. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class • Small number of well – established families • Serve as trustees for local The upper-upper universities and hospitals class • 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
  6. 6. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class• Primary non-managerial white-collar workers and highlypaid blue-collar workers• Want to achieve “respectability” and be accepted as goodcitizens• 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 avoidfaddish or highly – styled clothing• Constitute a major market for do-it-yourself productsDo you know which Social Class it refers to?
  7. 7. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class • 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- The lower- behaved middle class • 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
  8. 8. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class• Solidly blue collar• strive for security (sometimes gained from unionmembership)• 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 their leisure time (e.g., TVsets, hunting equipment)• Males are sports fans, beer drinkersDo you know which Social Class it refers to?
  9. 9. Puzzle The lower The lower- The lower- The upper- The upper- The upper- – lower middle upper lower class middle class upper class class class class • Solidly blue collar • strive for security (sometimes gained from union membership) • View work as a means to “buy” The upper-lower enjoyment class • Want children to behave properly • High wage earners in this group may spend impulsively • Interested in items that enhance their leisure time (e.g., TV sets, hunting equipment) • Males are sports fans, beer drinkers
  10. 10. How is it important to understand social class in consumer behaviour study?Social class is a crucial external factor which influence consumer’s behaviour; It is because: Affects Individuals access to can move up resources or down the social class hierarchy Affects Universal Frame of tastes and Pecking reference for lifestyles Order consumer behaviour natural form Reflects a of market person’s segmentatio relative n social status
  11. 11. Trends for social class evolution Upward Mobility Downward MobilityThe measurement of social class Subjective Measures Reputational Measures Objective Measures Composite-variable index Index of status characteristics Single-variable Socio – economic status weight measure of index score • occupation, • Occupation A measure using three basic • source of income socio – economic variables: • Education • house type • occupation • Income • dwelling area • income and • Cultural interest • educational attainment • World view • Etc.,
  12. 12. How social class affects purchase decisions?Class differences in World View
  13. 13. How social class affects purchase decisions?Taste Culture, Codes, and Cultural Capital are difference among different social class Taste Culture Codes Cultural Capital • Aesthetic • Elaborated • Refined • Intellectual codes behavior that preferences (Analysis) admits a person into the realm of the upper class • Restricted codes (Discretion)
  14. 14. Marketing strategies for different social classTargeting working class Purchase at the same rate as average – StaplesCanadian poverty line income families • milk • orange juice• 13% of Canadian families • tea• 10% of Canada children • etc. Minimum-wage-level households spend a greater-than- average share of income on out-of-pocket costs for housing and food eaten at home
  15. 15. Marketing strategies for different social classTargeting the Affluent Attitudes Different Segmentation of Rich Young Luxury is a reward Old Money – inherited • Tend to make distinctions Display self-success in terms of ancestry and lineage rather than wealth Luxury is functional Demonstrate logical decision The Nouveaux Riches • Status anxiety – more likely to shopping for demonstrating status Luxury is indulgence More male Old
  16. 16. Apply Status Symbols for other social segmentations Invidious Conspicuous The Trophy Porody Distinction Consumption Wife Display • To inspire • Visible • Idle rich • Deliberately envy in others evidence of • Husband – avoid status through the their ability to Walking display of symbols afford luxury billboard wealth or goods • Potlatch ritual power – social weapon
  17. 17. Social Class Concept applies to marketing strategy Clothing, fashion and shopping The pursuit of leisure Social Class Application s in typical fields Saving, spending, and Responses to marketing credit communication
  18. 18. In class activity• Social Class Symbols: In-class Activity Game• Chintz or Shag game• http://www.pbs.org/peoplelikeus/games/chintz .html Select household furnishings and accessories• Purpose of the game – Subjective measurement – Reputational measurement
  19. 19. What is your social class?• Noveau riche• Middle middle• Old money• Working class• Trailer house
  20. 20. Social mobility
  21. 21. Social mobility• A movement of individuals, groups or families through a system of social hierarchy o Vertical mobility • Upward and downward mobility  A freedom to attain education has changed a way we look at traditional social class model.  A change in career – income increase/decrease o Horizontal mobility
  22. 22. Vertical mobilityThree criteria • Family income: career transition • Occupational status: celebrity, musician • Educational attainment: MBA tasteBut what about• Taste• If you win lottery Lower class Upper class
  23. 23. Lower class to upper class
  24. 24. Justin Bieber Ryan Gosling Celebrity musicianRachel McAdams
  25. 25. Born in Ladysmith BC, the daughter of Barry, a furnace repairman, and Carol Anderson, a waitress Pamela Anderson was working as a fitness instructor
  26. 26. People may move up or down the social ladder within their lifetime orfrom one generation to the next. That everyone has the same chance of moving up is what lies behind the idea of equality of opportunity.
  27. 27. Thank you

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