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  1. 1. LECTURE FIVE SOCIAL CLASS <ul><li>Consumer Behaviour in Travel and Tourism </li></ul><ul><li>Dr H. Ruhi Yaman </li></ul>
  2. 2. 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.
  3. 3. Status Consumption <ul><li>Consumers endeavor to increase their social standing through consumption </li></ul><ul><li>Very important for luxury goods </li></ul><ul><li>Is different from conspicuous consumption </li></ul>
  4. 4. Discussion Question <ul><li>Why is status consumption important for some consumers? </li></ul><ul><li>How can marketers promote increased status consumption? </li></ul>
  5. 5. Social Class Is Hierarchal <ul><li>Status is frequently thought of as the relative rankings of members of each social class </li></ul>
  6. 6. 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
  7. 7. Social Class Measurement <ul><li>Subjective Measures </li></ul><ul><ul><li>individuals are asked to estimate their own social-class positions </li></ul></ul><ul><li>Reputational Measures </li></ul><ul><ul><li>informants make judgments concerning the social-class membership of others within the community </li></ul></ul><ul><li>Objective Measures </li></ul><ul><ul><li>individuals answer specific socioeconomic questions and then are categorized according to answers </li></ul></ul>
  8. 8. Objective Measures <ul><li>Single-variable indexes </li></ul><ul><ul><li>Occupation </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Other Variables </li></ul></ul><ul><li>Composite-variable indexes </li></ul><ul><ul><li>Index of Status Characteristics </li></ul></ul><ul><ul><li>Socioeconomic Status Score </li></ul></ul>
  9. 9. 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.
  10. 10. 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.
  11. 11. 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.
  12. 12. 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.
  13. 13. The Affluent Consumer <ul><li>Especially attractive target to marketers </li></ul><ul><li>Growing number of households can be classified as “mass affluent” with incomes of at least $75,000 </li></ul><ul><li>Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income </li></ul><ul><li>Have different medial habits than the general population </li></ul>
  14. 14. Three segments of affluent consumers’ average household expenditures Figure 11-5
  15. 15. What Is the Middle Class? <ul><li>The “middle” 50 percent of household incomes - households earning between $22,500 and $80,000 </li></ul><ul><li>Households made up of college-educated adults who use computers, and are involved in children’s education </li></ul><ul><li>Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent) </li></ul>
  16. 16. The Middle Class <ul><li>There is evidence that the middle class is slowly disappearing in the U.S. </li></ul><ul><li>Growth of middle class in some Asian and Eastern European countries </li></ul><ul><li>Many companies offering luxury to the masses with near-luxury models and goods </li></ul>
  17. 17. The Working Class? <ul><li>Households earning $40,000 or less control more than 30 percent of the total income in the U.S. </li></ul><ul><li>These consumers tend to be more brand loyal than wealthier consumers. </li></ul>
  18. 18. Discussion Question <ul><li>What types of products are targeted to the working class? </li></ul><ul><li>What issues must marketers consider when targeting their ads to the working class? </li></ul>
  19. 19. The Techno Class <ul><li>Having competency with technology </li></ul><ul><li>Those without are referred to as “technologically underclassed” </li></ul><ul><li>Parents are seeking computer exposure for their children </li></ul><ul><li>Geeks now viewed as friendly and fun </li></ul>
  20. 20. Consumer Behavior and Social Class <ul><li>Clothing, Fashion, and Shopping </li></ul><ul><li>The Pursuit of Leisure </li></ul><ul><li>Saving, Spending, and Credit </li></ul><ul><li>Social Class and Communication </li></ul>
  21. 21. Class Situations, Self-Perceptions, and Financial Orientations Figure 11-9