Chapter 11 Social Class


Published on

Consumer Behavior
Ninth Edition
Schiffman and Kanuk

1 Comment
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Chapter 11 Social Class

  1. 1. Chapter 11 Social Class and Consumer Behavior
  2. 2. Chapter Outline <ul><li>What Ss Social Class? </li></ul><ul><li>The Measurement of Social Class </li></ul><ul><li>Geodemographic Clustering </li></ul><ul><li>The Affluent Consumer </li></ul><ul><li>The Middle Class Consumer </li></ul><ul><li>The Working Class </li></ul><ul><li>Selected Consumer Behavior Applications of Social Class </li></ul>
  3. 3. 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.
  4. 4. 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>
  5. 5. 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>
  6. 6. Social Class Is Hierarchal <ul><li>Status is frequently thought of as the relative rankings of members of each social class </li></ul>
  7. 7. 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
  8. 8. This luxury cruise line targets upscale customers.
  9. 9. 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>
  10. 10. 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>
  11. 11. Discussion Question <ul><li>What are the advantages to a marketer using the objective method to measure social class? </li></ul><ul><li>When would the subjective or reputational method be preferred? </li></ul>
  12. 12. 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.
  13. 13. 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.
  14. 14. This reference to a plastic surgeon may be part of targeting to upper-class consumers.
  15. 15. Occupational ranking in terms of honesty and ethical standards - Figure 11-2
  16. 16. Table 11.7 Typical Categories Used for Assessing Amount or Source of Income <ul><li>Amount </li></ul><ul><ul><li>Under $25,000/year </li></ul></ul><ul><ul><li>$25,000-$49,999 </li></ul></ul><ul><ul><li>$50,000-$74,999 </li></ul></ul><ul><ul><li>$75,000-$99,999 </li></ul></ul><ul><ul><li>$100,000-$124,999 </li></ul></ul><ul><ul><li>$125,000-$149,999 </li></ul></ul><ul><ul><li>$150,000-$174,999 </li></ul></ul><ul><ul><li>$175,000-$199,999 </li></ul></ul><ul><ul><li>$200,000 and over </li></ul></ul><ul><li>Source </li></ul><ul><ul><li>Public welfare </li></ul></ul><ul><ul><li>Private financial assistance </li></ul></ul><ul><ul><li>Wages (hourly) </li></ul></ul><ul><ul><li>Salary (yearly) </li></ul></ul><ul><ul><li>Profits or fees </li></ul></ul><ul><ul><li>Earned wealth </li></ul></ul><ul><ul><li>Inherited wealth, interest, dividends, royalties </li></ul></ul>
  17. 17. 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.
  18. 18. 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.
  19. 19. Explore the Prizm Product at Clarita’s Web site. weblink
  20. 20. 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>
  21. 21. Most large banks offer “private banking” services to their most affluent customers. weblink
  22. 22. Three segments of affluent consumers’ average household expenditures Figure 11-5
  23. 23. 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>
  24. 24. 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>
  25. 25. This ad focuses on the affordable price of this treatment.
  26. 26. 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>
  27. 27. 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>
  28. 28. The U.S. Census is an excellent source of data on different economic groups. weblink
  29. 29. 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>
  30. 30. 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>
  31. 31. Preferences of Americans for 100 Arts, Media and Leisure Pursuits Figure 11-8
  32. 32. Class Situations, Self-Perceptions, and Financial Orientations Figure 11-9