This document summarizes research on social mobility and consumer behavior. Interviews and experiments were conducted among consumers who experienced upward or downward social mobility. Key findings include: 1) Downwardly mobile consumers stressed cultural capital like tastes and knowledge rather than economic capital. 2) They developed money-saving strategies by capitalizing on devalued cultural capital. 3) Experiments found downwardly mobile consumers had lower purchase intention for products appealing to economic versus cultural capital.

1. What to buy when the American Dream fails?
Social Mobility and Consumer Behavior
Wei-Fen Chen, Xue Wang, and Ying-yi Hong
HKUST Institute for Emerging Market Studies (IEMS)
Academic Seminar Series
26 April 2018
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2. Outline
• From one socioeconomic status (SES) to another
• Existing literature on social mobility and consumer studies
• Data collected with mixed methods (interviews, experiments)
among mobile consumers
• Conclusion
2
Introduction Literature Interview research Experiment research Conclusion

3. 3
SES and Consumer Segmentation
Introduction Literature Interview research Experiment research Conclusion
Chetty, et al., 2018
The New York Times,
19 March 2018

4. 4
SES and Consumer Segmentation
Introduction Literature Interview research Experiment research Conclusion
Chetty et al., 2018
The New York Times,
19 March 2018

5. A pertinent lens for understanding the
Chinese market
• Ambiguous social class consciousness (Miao, 2017)
• The demarcation of social class does not fit traditional culture
and political ideologies, and cannot fully describe those new
social groups and occupations in China (Guo, 2008)
• The lay perception of subjective SES is in the middle, which is
“a moral claim as much as an account of social position, an
assertion of ordinary individualness” (Irwin, 2016)
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Introduction Literature Interview research Experiment research Conclusion

6. Li, P. (2018, March). China’s new stage of development and consumption. Lecture Series by
CASS (Chinese Academy of Social Sciences) Scholars at the Chinese University of Hong Kong
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A pertinent lens for understanding the
Chinese market
Introduction Literature Interview research Experiment research Conclusion

7. Previous literature using social mobility as
a lens to study consumer behaviors
• Perception
• Experience
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Introduction Literature Interview research Experiment research Conclusion

8. • Perception
– Perceived economic mobility (Yoon & Kim, 2016; 2017):
one’s belief about the degree to which a society enables its
members to move up the economic ladder in relative
standing (reflecting personal efforts)
– Subjective social mobility (Huang et al., 2017): one’s
expectation about the possibility to move upwards in the
social hierarchy
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Introduction Literature Interview research Experiment research Conclusion

9. • Experience
– Symbolic boundaries: e.g., ethical eating, nutrition literacy,
preparing food from scratch (Beagan et al., 2015; Gross and
Rosenberger, 2015)
– Coping strategies: e.g., emphasizing less on material
possessions (Hamilton & Catterall, 2006)
– Psychological features: e.g., stress, anxiety, “culturally
homeless,” and “unequal mobility” of women and ethnic
minorities (Hamilton, 2009; Friedman, 2012; 2014)
– Subjectivity: e.g., alternative definitions developed by female
immigrants such as informal education, self-reliance, breaking
gender norms (Berg, 2011)
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Introduction Literature Interview research Experiment research Conclusion

10. Research Question
How individuals’ upward/downward mobility experiences influence
their shopping preferences?
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Introduction Literature Interview research Experiment research Conclusion

11. Data collection
• In-depth interviews with upwardly/downwardly mobile, young
consumers (N=50) since 2014
• Mainland China, Taiwan, and the U.S.
• Behavioral experiments since 2017 (4 studies, M-Turk)
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Introduction Literature Interview research Experiment research Conclusion

12. Themes emerged from the interview data
• Downwardly mobile consumers tend to stress their cultural
capital
• Forms of capital (Bourdieu, 1986)
• Economic capital: money, assets, fortune, etc.
• Cultural capital: socially rare and distinctive tastes, skills,
knowledge, and practices; involvement in art, music, literature;
emphasizing aesthetics, abstraction, improvisation,
eclecticism, cosmopolitanism, and authenticity
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Introduction Literature Interview research Experiment research Conclusion

13. Themes emerged from the interview data
Theme 1: Shopping literacy
Does downwardly mobile consumers attempt to create a middle class façade
through conspicuous consumption? They tend to stress “shopping literacy.”
Renee: If you are somebody who truly understands fashion, you understand the
mixing of high and low fashion…sometimes we laugh at those who don't
because they think it's about having designer outfits on from head to toe, you
know what I mean? A designer handbag, designer shoes. If you really
understand fashion, you understand that you can mix a pair of blue jeans from
Target with the Versace top. (F, 28, Dallas Texas)
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Introduction Literature Interview research Experiment research Conclusion

14. Themes emerged from the interview data
Theme 2: Capitalizing on devalued capital
Are they savers living frugal lifestyles? They tend to capitalize on devalued
capital to create money-saving strategies
Helen: Some brands do not have discounts in Taiwan, but they have discounts
in the U.S. during the Thanksgiving sale, then I will buy it online, or search for
discounts. For those websites offer free international shipping, I will place an
order as quickly as possible. (F, 25, Kaohsiung Taiwan)
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Introduction Literature Interview research Experiment research Conclusion

15. Hypotheses of experiment research
• Experiments were conducted to examine the causal
relationship between consumers’ social mobility
mindsets and their shopping preferences
• Consumers in a downward mobility mindset will show
lower levels of purchase intention for products
appealing to economic capital than for those appealing
to cultural capital
• While their upwardly mobile counterparts show
equally high levels of purchase intention for products
appealing to either economic capital or cultural
capital.
15
Introduction Literature Interview research Experiment research Conclusion

16. Overview of experiment design
• Study 1 & 2:
• Study 3:
• Study 4:
16
Manipulate
upward/downward
mobility mindsets
Purchase intention for
economic/cultural capital
products
Manipulate
upward/downward
mobility mindsets
Purchase intention
for economic/cultural
capital products
Expectation of future
economic/cultural
capital
Manipulate
upward/downward
mobility mindsets
Post-purchase guilt
for economic/cultural
capital products
Expectation of future
economic/cultural
capital
Introduction Literature Interview research Experiment research Conclusion

17. • Study 1 & 2:
17
Manipulate
upward/downward
mobility mindsets
Purchase intention for
economic/cultural capital
products
Introduction Literature Interview research Experiment research Conclusion

18. Study 1
• 229 American residents (137 females; Mage = 37.33, SDage =
12.61) from Amazon Mechanical Turk
• 2 (mobility: upward, downward) × 2 (capital: economic,
cultural) between-subject design
Introduction Literature Interview research Experiment research Conclusion

19. Study 1
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Manipulate social
mobility mindset
Purchase intention
Manipulation
check
Introduction Literature Interview research Experiment research Conclusion
Then, please write an essay to describe how your lifestyle will be
changed by such upward/downward movement on the social
hierarchy.

20. Study 1
20
Manipulate social
mobility mindset
Purchase intention
Manipulation
check
• “Will you move upwards or downwards on the social
hierarchy in the future?” (1 = absolutely downwards, 7 =
absolutely upwards)
• “To what extent do you believe your hard-work (education,
skills, networks, efforts, etc.) will pay off, i.e., will lead to
your upward movement on the social hierarchy?” (1 = will
definitely not pay off, 7 = will definitely pay off)
• “How likely are you going to carry out your American
Dream if compared to your parents’ generation?” (1 = much
less likely, 7 = much more likely)
• α = .93
Introduction Literature Interview research Experiment research Conclusion

21. Study 1
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t = 21.22, p < .001
Introduction Literature Interview research Experiment research Conclusion
Manipulate social
mobility mindset
Purchase intention
Manipulation
check

22. Study 1
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• The same social mobility manipulation was used
throughout the four studies
• All the manipulation checks were successful (ps < .001)
Introduction Literature Interview research Experiment research Conclusion
Manipulate social
mobility mindset
Purchase intention
Manipulation
check

23. Study 1
23
Manipulate social
mobility mindset
Purchase intention
Manipulation
check
• Participants read three advertisements of different products
(i.e., towel, chocolate, sweater), which either appeal to
economic capital or cultural capital
• “How likely are you going to purchase the advertised
product?” (1 = very unlikely, 7 = very likely; α = .65)
Cultural capital Economic capital
Introduction Literature Interview research Experiment research Conclusion

24. Study 1
• Results
– main effects of manipulation (F = 6.08, p = .014, partial η2 = .03) and
capital type (F = 13.61, p < .001, partial η2 = .06)
– significant interaction (F = 7.29, p = .007, partial η2 = .03)
F = 22.06, p < .001
F = 12.71, p < .001
p = .501
p = .865
The interaction did not
change after controlling
income level, education
attainment, and subjective
social class
Introduction Literature Interview research Experiment research Conclusion
32

25. Study 2
• Study 2 aimed to replicate the findings of Study 1 by new
measures of purchase intentions, which controlled some
general information of products (e.g., price, quality, and
country-of-origin).
• 253 American residents (156 females; Mage = 37.75, SDage =
12.97) from Amazon Mechanical Turk
• 2 (mobility: upward, downward) × 2 (capital: economic,
cultural) between-subject design
Introduction Literature Interview research Experiment research Conclusion
33

26. • Participants read three advertisements of different products (i.e.,
towel, perfume, sweater), which either appeal to economic
capital or cultural capital
• “How likely are you going to purchase the advertised product?”
(1 = very unlikely, 7 = very likely; α = .74)
Study 2
26
Manipulate social
mobility mindset
Purchase intention
Manipulation
check
cultural capital economic capital
Introduction Literature Interview research Experiment research Conclusion

27. Study 2
• Results
– main effects of manipulation (p = .120) and capital type (p = .536) were
non-significant
– significant interaction (F = 4.70, p = .031, partial η2 = .02)
F = 4.03, p = .046
F = 6.85, p = .009
p = .283
p = .665
The interaction did not
change after controlling
income level, education
attainment, and subjective
social class
Introduction Literature Interview research Experiment research Conclusion
35

28. • Study 1 & 2:
• Study 3:
28
Manipulate
upward/downward
mobility mindsets
Purchase intention for
economic/cultural capital
products
Introduction Literature Interview research Experiment research Conclusion
Manipulate
upward/downward
mobility mindsets
Purchase intention
for economic/cultural
capital products
Expectation of future
economic/cultural
capital

29. Study 3
• 139 American residents (95 females; Mage = 39.34, SDage =
13.13) from Amazon Mechanical Turk
• 2 (between-subject factor: upward/downward mobility) × 2
(within-subject factor : economic/cultural capital) design
Introduction Literature Interview research Experiment research Conclusion
37

30. • Participants read three pairs of advertisements which are
the same as those in Study 1 (i.e., towel, chocolate,
sweater).
• In each pair, there were two brands with similar prices that
either appeals to economic capital or cultural capital
• “To what extent do you want to purchase the product from
each brand?” (1 = not at all, 9 = very much; αeconomic capital =
.60, αcultural capital = .51).
Study 3
30
Manipulate social
mobility mindset
Purchase intention
Manipulation
check
Introduction Literature Interview research Experiment research Conclusion
Expected future
capitals
cultural capital economic capital

31. • How much economic capital/cultural capital do you expect to
have in the future life (1 = none at all, 10 = a great deal)
• Interaction: F = 26.09, p < .001, partial η2 = .17
Study 3
31
Manipulate social
mobility mindset
Purchase intention
Manipulation
check
Introduction Literature Interview research Experiment research Conclusion
Expected future
capitals
t = 5.56, p < .001
t = 9.44, p < .001
p = .321
t = 3.18, p = .002

32. Study 3
• Results
– main effects of manipulation (F = 3.32, p = .071, partial η2 = .03) and
capital type (F = 6.10, p = .015, partial η2 = .05)
– significant interaction (F = 4.11, p = .045, partial η2 = .03)
t = 3.18, p = .002
t = 2.63, p = .010
p = .755
p = .604
The interaction did not
change after controlling
income level and
education attainment
Introduction Literature Interview research Experiment research Conclusion
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33. Study 3
• Results
– Mediation of future capitals
– Future economic capital: 95% CI = [0.0563, 1.2042]
– Future cultural capital: 95% CI = [-0.0565, 0.4191]
Introduction Literature Interview research Experiment research Conclusion
Manipulate
upward/downward
mobility mindsets
Purchase intention
for economic capital
products
Future economic
capital
Future cultural
capital
41

34. • Downwardly mobile consumers dissociate themselves from
products appealing to economic capital, which is a coping
strategy of compensatory consumption (Mandel et al., 2017)
• Five types of compensatory consumption (Mandel et al., 2017)
– Direct resolution
– Symbolic self-completion
– Dissociation
– Escapism
– Fluid compensation
• Study 4:
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Manipulate
upward/downward
mobility mindsets
Post-purchase guilt
for economic/cultural
capital products
Expectation of future
economic/cultural
capital
Introduction Literature Interview research Experiment research Conclusion

35. Study 4
• 205 American residents (67 males; Mage = 37.39, SDage =
12.01) from Amazon Mechanical Turk
• 2 (between-subject factor: upward/downward mobility) × 2
(within-subject factor : economic/cultural capital) design
Introduction Literature Interview research Experiment research Conclusion
43

36. • Participants read three pairs of advertisements which are
the same as those in Study 3
• “Please imagine that you have actually bought the
products. Please indicate the extent to which you have the
following post-purchase feeling”
– Guilty
– Repentant
– Blameworthy
(1 = not at all, 7 = very much; αs > .90)
Study 4
36
Manipulate social
mobility mindset
Post-purchase guilt
Manipulation
check
Introduction Literature Interview research Experiment research Conclusion
Expected future
capitals

37. • How much economic capital/cultural capital do you expect to
have in the future life (1 = none at all, 10 = a great deal)
• Interaction: F = 20.12, p < .001, partial η2 = .09
Study 4
37
Manipulate social
mobility mindset
Post-purchase guilt
Manipulation
check
Introduction Literature Interview research Experiment research Conclusion
Expected future
capital
t = 5.05, p < .001
t = 7.66, p < .001
p = .345
t = 2.37, p = .019

38. Study 4
• Results
– main effects of manipulation (F = 4.41, p = .037, partial η2 = .02) and
capital type (F = 79.07, p < .001, partial η2 = .28)
– marginal significant interaction (F = 2.90, p = .090, partial η2 = .01)
t = -6.79, p < .001
t = -2.23, p = .027
p = .152
Introduction Literature Interview research Experiment research Conclusion
t = -5.63, p < .001
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39. Study 4
• Results
– Mediation of future capitals
– Future economic capital: 95% CI = [-0.5575, -0.1136]
– Future cultural capital: 95% CI = [-0.0328, 0.1441]
Introduction Literature Interview research Experiment research Conclusion
Manipulate
upward/downward
mobility mindsets
Post-purchase guilt
for economic capital
products
Future economic
capital
Future cultural
capital
47

40. Discussion
• Perceptions of upward mobility and downward mobility are
asymmetric.
• Downwardly mobile consumers are less interested in products
appealing to economic capital than those appealing to cultural
capital.
• SES is a multi-faceted construct, and compensatory
consumption (dissociation) can be partially performed
40
Introduction Literature Interview research Experiment research Conclusion

41. Conclusion
• “What they buy” instead of “what they do not buy”
• The same product can be framed in different ways to address
markets in different mobility trajectories
• Consumer behaviors are affected not only by the likelihood of
economic mobility, but also by the trajectory of social mobility
• New insights into the traditional, static, income-based market
segmentation.
• We plan to conduct lab studies and cross-cultural studies to
examine how people in different cultures may perceive social
mobility differently and employ different shopping strategies
41
Introduction Literature Interview research Experiment research Conclusion

42. Thank you!
42

43. Q & A session
43

44. Pilot Study
• Cultural capital is more enduring
than economic capital
– 1 = strongly disagree, 7 = strongly
agree
– Once a person has economic capital,
(1) it is enduring (2) it is lasting (3) it
cannot be easily lost
– Once a person has cultural capital, (1)
it is enduring (2) it is lasting (3) it
cannot be easily lost
• People in lower class have more
difficulty to convert between two
forms of capital
– 1 = very easy, 7 = very difficult
– How easy/difficult is it for higher
class to convert their economic
capital (cultural capital) into cultural
capital (economic capital)?
– How easy/difficult is it for lower
class to convert their economic
capital (cultural capital) into cultural
capital (economic capital)?
44
• 82 American residents (48 females; Mage = 36.26, SDage = 11.32) from
Amazon Mechanical Turk
Introduction Literature Interview research Experiment research Conclusion

45. Pilot Study
45
• Results
• Cultural capital is more enduring than
economic capital
– 1 = strongly disagree, 7 = strongly agree
t = -14.77, p < .001
• People in lower class have more difficulty
to convert between two forms of capital
– 1 = very easy, 7 = very difficult
t = -4.25, p < .001
Introduction Literature Interview research Experiment research Conclusion

46. 46

47. 47

48. Informants’ backgrounds
• Downwardly mobile youth
• 25-33 years old
• Post-recession economic problems: low starting salaries,
economic insecurity
• 22K generation (about USD $700)
• Outcome poor (as opposed to “income poor”)
• The lost generation
• The ALICE class (Asset Limited, Income Constrained,
Employed)
48