2. Economic capital represents financial resources
which are expressed through consuming goods and activities of
material scarcity and inputed luxury.
Cultural capital consists of a set of socially rare and distinctive
tastes, skills, knowledge, and practices.
A high level of cultural capital is acquired in upbringing in
families with well-educated parents whose
occupations require cultural skills, interaction with peers from
similar families, high levels of formal
education at institutions that attract other cultural elites
studying areas that emphasize critical abstract
thinking and communication over the acquisition of
particularized skills and knowledge. These
reinforcing experiences become embodied as ways of feeling
thinking, and acting.
Cultural capital secures the respect of others through the
consumption of objects that are ideationally
difficult and so can only be consumed by those few who have
acquired the ability to do so. For example,
a dinner discussion of the directorial powers reflected in a
current movie serves as a claim to particular
resources such as knowledge of directorial styles in movies and
the ability to analyze these styles. These
resources provide reputational currency. Such actions are
perceived not as explicit class signals but as
bases for whom one is attracted to and admires, or not. Thus,
status boundaries are expressed simply
through expressing one’s tastes.
In addition to tastes expressed in actions, tastes and preferences
expressed in product or service ownership
or use also signal status. However, cultural tastes are signaled
not in terms of the economic value of the
items but from the inferred cultural aptitude on the consumer of
4. If the growth of the total population slows or stops, many
industries will face stable or declining
demand. This could lead to the failure of firms, increased
diversification, a more highly competitive
environment, and increased emphasis on export sales.
3) What trend(s) characterizes the occupational structure of the
United States?
Women are increasing their participation in the labor force.
Jobs are shifting to white-collar/technical
and away from blue-collar.
4) What trend(s) characterizes the level of education in the
United States?
It continues to rise.
5) What trend(s) characterizes the level of income in the United
States?
Cyclical: Growth in real (adjusted for inflation) per capita
disposable income until stagnation in
1980s, followed by growth from 1995 to 2000, then a decline
again early in this century, followed by
slow growth from 2002 until the economic downturn in 2008.
Given the age distribution of the
United States, a greater proportion of disposable income will be
among people over 50 years old.
Many groups are not sharing in this growth and the resulting
income gap is causing increasing
concerns.
6) What is meant by subjective discretionary income? How does
it affect purchases?
5. Subjective discretionary income (SDI) measures how much
money consumers feel they have
available for nonessential purchases. If consumers feel
(subjective assessment) that their discretionary
income is low, they may postpone an expensive vacation,
purchase of season sports tickets, or the
purchase of a new car.
7) What trend(s) characterizes the age distribution of the
American population?
The population is aging with the most rapid growth occurring in
the 60 + groups. There is also growth
in the under 10 and 30-39 age segments, though to a lesser
degree (see Table and discussion on page
XXX-XXX).
8) What is cognitive age? How is it measured?
Cognitive age is defined as one’s perceived age, a part of one’s
self-concept. It is most commonly
measured by asking people what age they would associate with
how they look, feel, and behave.
9) What is an age cohort? Cohort analysis?
An age cohort or generation is a group of persons who have
experienced a common social, political,
historical, and economic environment. Cohort analysis is the
process of describing and explaining the
attitudes, values, and behaviors of an age group as well as
predicting its future attitudes, values, and
behaviors.
7. The baby boom generation refers to those individuals born
during the dramatic increase in births
between the end of World War II and 1964. There are about 80
million baby boomers. Most of
this group grew up during the prosperous 1950s and 1960s.
High education levels, high incomes,
and dual-career households characterize baby boomers.
Retirement is no longer in the distant
future, and some have already made that step. However,
surveys indicate that boomers plan to
continue and expand the concept of “active retirement” begun
by the depression generation.
Numerous segmentation opportunities exist for this generation.
d) Generation X
Generation X, was born between 1965 and 1976. It is a smaller
generation than its predecessor or
that coming after it, namely Generation Y. This generation
reached adulthood during difficult
economic times. They are the first generation to be raised in
dual-career or single parent
households. They are the first American generation to seriously
confront the issue of "reduced
expectations". This generation faced a world racked by
"regional conflicts", terrorism, an
environment that continues to deteriorate, and an AIDS
epidemic that threatens their lives.
However, this generation is highly educated, with more Xer
women highly educated than their
male counterparts. This generation appears to be more
entrepreneurial and less prone to devote
their lives to large corporations. This group is relatively high
in technology use.
e) Generation Y
9. is dealing with global unrest, economic uncertainty, terrorism,
the Virginia Tech
massacre, cyber-bullying, and global warming. Ethnic diversity
is high among this
group. In addition, due to declining divorce rates, this
generation, although certainly
accustomed to divorce, often live in two-parent households.
This group values personal
responsibility, civic engagement, and diversity.
11) What is a social class system?
The hierarchical division of a society into relatively permanent
and homogeneous groups with respect
to attitudes, values, and lifestyles.
12) What is meant by the statement, “What exists is not a set of
social classes but a series of status
continua”?
Status continua reflect various factors that society values, such
as income, education, and occupation.
In our society, we judge or class people on various
achievement-related continua.
13) What underlying cultural value determines most of the
status dimensions in the United States?
Achievement.
14) What is meant by status crystallization? Is the degree of
status crystallization relatively high or low in
the United States? Explain.
Status crystallization reflects the degree of consistency of an
11. forwarded, distributed, or posted on a website, in whole or part.
d. Middle class – composed of white-collar workers (office
workers, school teachers, low-level
managers) and high-paid blue-collar workers (plumbers, factory
supervisors). They generally
live in modest homes and are more likely to get involved in “do
it yourself” projects. With
limited income, they must balance their desire for current
consumption with aspirations for
future security.
e. Working class - the husband’s occupation involves some
degree of manual labor, either skilled
or unskilled. Many did not complete high school. Job security is
low. Working class aristocrats
dislike the upper-middle class and prefer products and stores
positioned at their social class
level.
f. Upper-lower - contains people with low incomes, limited
educations, no jobs (or at best menial
ones), and who have come from families with similar
backgrounds.
g. Lower-lower - the very poor, least educated, and rarely
employed. They live on social welfare
on a day-to-day basis.
16) What is meant by the phrase class to mass and how does it
relate to upward-pull?
A movement by retailers to offer less expensive “new luxury”
goods to less affluent segments. These
products (e.g., expensive cup of coffee) and brands (lower-end
Mercedes) retain a status appeal that
12. draws its cache in part from usage by the upper classes. The
“draw” of this aspirational influence
creates the upward pull and allows class to mass to operate.
17) What ethical issues arise in marketing to the lower social
classes?
Marketers frequently ignore these classes yet they have needs
just as do other social groups.
Marketers need to develop appropriate products and services for
these groups. Marketers should not
take advantage of the vulnerabilities (limited education and a
frequent feeling of hopelessness) of
these individuals but should not patronize them either. The
debate focuses on the responsibility of
individual firms versus that of the larger society (government).
18) What are the two basic approaches used by marketers to
measure social class?
Multi-item and single-item indexes.
19) What are the advantages of multi-item indexes? The
disadvantages?
Advantages⎯
measure of overall class standing because
it considers more variables.
Disadvantages⎯
score on another, thus “masking” real
class status. Also a tendency for researchers to arbitrarily
substitute a more convenient variable for
one of the original factors.
20) Describe the Hollingshead Index of Social Position. Why is
14. generally be surprised by the number of
Americans who are either illiterate (20 percent) or marginally
illiterate (34 percent). In light of this
discussion, students will have the opportunity to better grasp
the ethical issues related to marketing to
low literate consumers, as well as recognize the obstacles faced
by these individuals (including a
feeling of isolation due to the negative social stigma, the need
for some level of literacy to take
advantage of many social programs, and so on).
22) Which demographic variable, if any, is most related to the
following?
The answers below are the author’s opinion and are not based
on research.
a) Watching extreme sports on TV: Age probably the major
influence. Having teenage children at
home may also encourage parents to watch.
b) Scuba diving: Age, income and then education because the
product is clearly youth oriented,
somewhat expensive and is popular with health and exercise
oriented individuals.
c) International travel: Education then income. Occupation also
is related.
d) In-home chef: Education, income, and social class since
clearly income is needed to afford this
service but social class attitudes may play a major part as well
(even when income is sufficient).
e) Spa treatments: Income, occupation, and education.
15. f) Going to a NASCAR event: This appears to have changed
over the years from a lower-income,
blue-collar sport to being much more diffuse demographically.
You may get varying opinions
from students and their answer may depend on whether they are
talking about “die-hard” fans or
not.
23) Describe how each of the following firms’ product
managers should approach the (i) pre-Depression
generation, (ii) Depression generation, (iii) baby boom
generation, (iv) Generation X, (v) Generation
Y, and (vi) Generation Z.
a) Pepsi
b) Panera Bread
c) The Golf Channel
d) www.About.com
e) The Humane Society
f) iPod
g) Facebook
h) Crest Whitener System
I find it most useful to have the students do brief analyses of
several of these rather than an in-depth
analysis of one. That helps drive home the point that strategy
aimed at subcultures should be product
specific. Another approach is to have teams of two or three
students prepare and present a marketing
17. marketing to older consumers will likely
vary. You might direct their attention to some of the cognitive
deficits (particularly relevant for the
older boomer group) that occur in aging consumers and how that
can create vulnerabilities to certain
marketing tactics.
25) How will your lifestyle differ from your parents when you
are your parents’ age?
This generates an interesting discussion that will integrate both
age cohort differences and
demographic changes. You may want to talk about how your
lifestyle differs from your parents. Get
the students to focus on the demographic differences they think
will exist between them and their
parents and to describe the impact of these differences on
lifestyle differences. Then have them
discuss cohort effects. Have students compare the influence of
their age cohort to their demographic
variables like education, income, and occupation.
26) How could a knowledge of social stratification be used in
the development of a marketing strategy for
the following?
a) Jeans
b) Expensive jewelry
c) Home security
d) Organic milk
e) International travel
18. f) Habitat for Humanity.
First, based on knowledge or research determine the needs and
desires of each social class or strata
with respect to the product category under consideration. I
would have the students use the
descriptions of the classes in the text and then speculate on the
needs of each relative to one or two on
the products. You can assign teams of two or three students to
prepare a marketing strategy for one of
the products for one social class, another team for a second
social class, and so forth. Then have each
team present their plans in class. Discuss the differences
between the plans and the reasons for them.
Be certain that the product positioning reflects benefits that are
meaningful to the target social class.
Be sure that the following points are covered.
The product would have to reflect benefits that are meaningful
to the target social class.
The price should reflect their ability to pay as well as the
degree to which price is used as an indicator
of quality.
The promotion must utilize ad copy that reflects the lifestyle
and use behavior of the target social
class. The media used to reach the target social class must
match the media habits of that social class.
The distribution must match the social class’ preference for type
of retail-purchase environment.
Part V 4-8
20. What class will you be in at their age?
You might ask this question during the measurement discussion
in your lecture, letting students work
out their own answers. Discuss the implications of status
differences between husbands and wives.
30) Name two products for which each of the three following
demographic variables would be most
influential in determining consumption. If you could combine
two of the three, which would be the
second demographic you would add to each? Justify your
answer.
a. Income: luxury car, expensive original art collection,
expensive vacation home, first-class
airplane tickets - all are expensive, nonnecessity items.
b. Education: magazine subscriptions, book club memberships,
season ballet tickets, educational
toys for children - all reflect preferences that usually result
from higher levels of education.
c. Occupation: men’s suits, club memberships, vacations, and
hobbies - all reflect preferences
that often result from a career/occupational orientation.
The addition of a second variable depends on the specific
products the students are dealing with. This
is a good time to have them discuss the notion of value vs.
diminishing returns when adding variables
together.
31) Name three products for which subjective discretionary
income might be a better predictor of
consumption than actual income. Justify your answer.
22. society (government) versus complete
individual responsibility. Most students will agree that
misleading ads and harmful products (fortified
wines) should not be targeted at the lower classes.
One view is that marketers, like all citizens, have a
responsibility to increase the abilities, wealth, and
general standing of this class because of basic humanity, not to
mention the increased advantages to
the rest of society of raising the level of productivity, spending,
and general self-worth of all citizens.
Specifically, product appeals need to take into account lower
levels of education and experience.
Pricing and credit policies need to be clear and simply stated.
Retail stores need to be conveniently
located and accessible. Appropriate products need to be
developed and properly positioned.
33) Is it ethical for marketers to use the mass media to promote
products that most members of the lower
classes and working class cannot afford?
This should provide an interesting discussion for the class. The
question really hinges on whether or
not marketers are specifically trying to promote these types of
products to those classes. Some will
argue that incentives are created; others will argue despair and
frustration are created. Controversy
concerning expensive Nike shoes that became “essential” among
lower income groups is a good
discussion point. I find most of my students to be conservative
on this issue. I play a very aggressive
“devil’s advocate” no matter what they say. The objective is to
get them to think about all the
consequences of marketing activities.
23. 34) Would your answer to Question 37 change if the products
were limited to children’s toys?
Does this now make it a “public policy” issue, i.e., protecting a
group that cannot watch out for itself?
35) Name five products for which the upward pull strategy
shown in Figure 4-3 would be appropriate.
Name five for which it would be inappropriate. Justify your
answers.
a. Appropriate use of “Upward Pull” - imported beer, high
status cars, expensive clothes, upscale
restaurants, and American Express credit cards. These are
products that easily symbolize the
lifestyle of the upper class but can be positioned at prices the
middle class can afford.
b. Inappropriate use - gasoline, bread, cereal, dish soap, and
soft drinks. These are staple products
consumed across social classes. They have no unique social
class association.
36) What ethical implications arise from urban renewal efforts
such as those in Harlem?
Such efforts often replace affordable housing, restaurants, and
shops with those that are more
expensive and thus out of reach for those who traditionally have
lived in the area. In the case of
Harlem and other such areas, this can mean a boost in the
popularity of the area but also work to the
disadvantage of the traditionally lower-class residents who may
ultimately be displaced by such
efforts.