Social class is an important factor that influences consumer behavior. It is defined by the division of society into hierarchical groups based on factors like income, occupation, and education. Marketing strategies must target different social classes appropriately. For example, the working class may be targeted with staple products while the affluent can be segmented based on whether they have old money or are newly wealthy. Understanding symbols and tastes of different social classes helps shape marketing communication and product offerings. Vertical social mobility is also a factor as individuals can move between classes through career or education changes across generations.

1. Consumer Behavior
Social Class
Conducted by
Hao Xue & Yoshihiro Horie

2. Social Class
Definition
The division of members of a society into a hierarchy of distinct status
classes, so that members of each class have the same relative status
and members of all other classes have either more or less status
Structure of Social Class
Upper Class
Upper
Class
Middle Class
Middle Class
Lower Class Lower Class
Traditional Social Structure Olive Type Social Structure

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. 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 of
major long- established firms
• accustomed to wealth, so do not spend money
conspicuously
Do you know which Social Class it refers to?

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. 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-behaved
• 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
Do you know which Social Class it refers to?

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. 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” 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., TV
sets, hunting equipment)
• Males are sports fans, beer drinkers
Do you know which Social Class it refers to?

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. 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. Trends for social class evolution
Upward Mobility Downward Mobility
The 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. How social class affects purchase decisions?
Class differences in World View

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. Marketing strategies for different social class
Targeting working class
Purchase at the same
rate as average – Staples
Canadian 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. Marketing strategies for different social class
Targeting 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. 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. 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. 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. What is your social class?
• Noveau riche
• Middle middle
• Old money
• Working class
• Trailer house

20. Social mobility

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. Vertical mobility
Three criteria
• Family income: career transition
• Occupational status: celebrity, musician
• Educational attainment: MBA
taste
But what about
• Taste
• If you win lottery Lower class Upper class

24. Lower class to upper class

25. Justin Bieber
Ryan Gosling
Celebrity
musician
Rachel McAdams

26. Born in Ladysmith BC, the daughter of Barry, a furnace repairman, and Carol
Anderson, a waitress
Pamela Anderson was working as a fitness instructor

27. People may move up or down the social ladder within their lifetime or
from one generation to the next. That everyone has the same chance
of moving up is what lies behind the idea of equality of opportunity.

28. Thank you