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Consumer Behavior - Social Class
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.
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Consumer Behavior - Social Class
- 1. Consumer Behavior Social Class Conducted by Hao Xue & Yoshihiro Horie
- 2. Social Class Definition The divisionof 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 itimportant 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 socialclass 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 classaffects purchase decisions? Class differences in World View
- 13. How social classaffects 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 fordifferent 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 fordifferent 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 Symbolsfor 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 Conceptapplies 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 yoursocial class? • Noveau riche • Middle middle • Old money • Working class • Trailer house
- 20.
- 21. Social mobility • Amovement 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 toupper class
- 25. Justin Bieber Ryan Gosling Celebrity musician Rachel McAdams
- 26. Born in LadysmithBC, the daughter of Barry, a furnace repairman, and Carol Anderson, a waitress Pamela Anderson was working as a fitness instructor
- 27. People may moveup 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.
Editor's Notes
- #25 How she dress up and
- #28 In brief:There is more social mobility in more equal societies.In more detail: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.One way to measure social mobility is to see whether rich parents have rich children and poor parents poor children, or whether the incomes of parents and their children are unrelated. Can children of poor parents become rich? Researchers at the London School of Economics have used this method to compare social mobility in eight countries. Using their data, we have shown that, at least among these few countries, the more equal countries have higher social mobility (see graph). It looks as if the American Dream is far more likely to remain a dream for Americans than it is for people living in Scandinavian countries. Greater inequalities of outcome seem to make it easier for rich parents to pass on their advantages. While income differences have widened in Britain and the USA, social mobility has slowed. Bigger income differences may make it harder to achieve equality of opportunity because they increase social class differentiation and perhaps prejudice.