Social class(Consumer Behavior)

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Social class(Consumer Behavior)

  1. 1. Social class and its impact. Presented by: Ashutosh Agrawal
  2. 2. Evaluation of the word… • Society - A society, or a human society, is a group of people involved with each other through persistent relations, or a large social grouping sharing the same geographical or social territory, subject to the same political authority and dominant cultural expectations. Source- http://en.wikipedia.org/wiki/Society
  3. 3. What is a social class? • Social class can be thought of as a continuum which includes a range of social position on which each member of the society can be placed, divided into a small number of specific social classes, or strata… Source- consumer behavior 10th edition Leon G.Schiffman, Leslie Lazar kanuk, S. Ramesh Kumar. Pg. no.-329
  4. 4. Characteristics of Social Class • Is hierarchical • Is a natural form of segmentation • Provides a frame of reference for consumer behaviour • Reflects a person’s relative social status • In Canada, individuals can up or down the social class hierarchy
  5. 5. Social Class and Social Status • Status is frequently thought of as the relative rankings of members of each social class –wealth –power –prestige
  6. 6. Social Comparison Theory • states that individuals compare their own possessions against those of others to determine their relative social standing.
  7. 7. Status Consumption • The process by which consumers actively increase their social standing through conspicuous consumption or possessions
  8. 8. 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
  9. 9. Objective Measures • Single-variable indexes – Occupation – Education – Income – Other Variables  Composite-variable indexes – Index of Status Characteristics – Socioeconomic Status Score
  10. 10. 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.
  11. 11. 11-11 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.
  12. 12. What is Middle Class? • The “middle” 50% of household incomes 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)
  13. 13. 11-13 What is Working Class? • Households with lower earnings; control more than 30% of the total income in the U.S. • These consumers tend to be more brand loyal than wealthier consumers
  14. 14. 11-14 (continued)
  15. 15. Impact of social classes on marketing…. • Let us rewind……. Economics… Demonstration effect…
  16. 16. Cont.. • Clothing, Fashion, and Shopping – Where one shops – External point of identification • The Pursuit of Leisure – Type of leisure activities differ » continued
  17. 17. Cont.. • Saving, Spending, and Credit – Level of immediate gratification sought varies • Responses to marketing communication – Upper classes have a broader and more general view of the world – Regional variations in language rise as we move down the social ladder – Exposure to media varies by social class » continued
  18. 18. 11-22 Limitations of Social Class • Social class is more difficult to measure than income • Many purchase behaviours are related more to income than social class • Consumers often use expected social class for their consumption patterns • Dual incomes have changed consumption patterns • Individual dimensions of social class are sometimes better predictors of consumer behaviour
  19. 19. Thank you..

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