2. Social Class
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. Karl Marx
German philosopher and
revolutionary socialist Karl Marx
published The Communist
Manifesto and Das Kapital,
anticapitalist works that form the
basis of Marxism.
4. Ruling Class
owns and controls the forces of production, the
social class in power uses the non-economic institutions to
uphold its authority and position.
6. Characteristics of Social Class
Is hierarchical
Is a natural form of segmentation
Provides a frame of reference for consumer behaviour
Reflects a person’s relative social status
7. Social Class and Social Status
Status is frequently thought of as the relative rankings
of members of each social class
wealth
power
prestige
8. Social Comparison Theory
States that individuals compare their own possessions
against those of others to determine their relative social
standing.
9. To determine how good an artist I am, I will compare
myself with a competent friend rather than a famous artist
11-10
10. Status Consumption
The process by which consumers actively increase
their social standing through higher consumption or better
possessions
11. Social Class Measurement
Subjective Measures: individuals are asked to estimate
their own social-class positions
Reputational Measures: informants make judgments
concerning the social-class membership of others within
the community
Objective Measures: individuals answer specific
socioeconomic questions and then are categorized
according to answers
13. Index of Status Characteristics (ISC)
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.
14. Socioeconomic Status Score (SES)
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.
17. Elite class
Less than 1% in number
Control resources and have inherited wealth
Travel frequently
Educate their wards taking international platform
Live in networked environment
Difficult to be convinced in marketing
18. Upper class
Less than 10 % in number
Assertive, skilled and motivated
Travel on need and for business support
Spending well balanced
Keen to grow more and enter in elite class
Often work out their edge when subject to marketing
19. Upper Middle class
More than 10 % in number
White coloured and managing their live style depicting the
best
Spend more on dress, living and social status maintenance
Spending well balanced
In touch with technology and development
Calculative in spending other than mentioned earlier
Own good living conditions and mobility means
20. Lower Middle Class
Own reasonable living conditions
Dependent on community mobility means
Job and employment is their basic concern
Spend more on education of their children
Do multiple jobs or over time employment
Easy target for marketer
21. Working class
Live in rented accommodation
Larger families internal structure
Employment not permanent
Spending aggressive
Spend some portion on education
22. Poor class
No living owned
Unemployed mostly
uneducated
Spending pattern not supported by rational
Live in fallacies
23. Social Class and Marketing Strategy
Clothing, Fashion, and Shopping
Where one shops
External point of identification
The Pursuit of Leisure
Type of leisure activities differ
24.
25. Social Class and Marketing Strategy
Saving, Spending, and Credit
– Level of immediate gratification sought varies
Responses to marketing communication
– Upper classes have a broader and more general view of
the world
– Regional variations in language rise as we move down
the social ladder
– Exposure to media varies by social class
26. Limitations of Social Class
Social class is more difficult to measure than income
Many purchase behaviours are related more to income
than social class
Consumers often use expected social class for their
consumption patterns
Dual incomes have changed consumption patterns
Individual dimensions of social class are sometimes better
predictors of consumer behaviour
27. Group Activity
Assume you are a travel agent selling vacation packages to different
social classes.
Discuss and create a plan for:
– (1) vacation packages to offer (destination, accommodations, food,
etc.)
– (2) advertising and appeals used
– (3) media location
Do this for (a) upper class, (b) middle class, and (c) working class.
Discuss if YOUR product is better suited for upper, middle, or
working class and why.
Write down your ideas and be prepared to share with the class.