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MK 476MK 476Chapter 14Chapter 14

Social Class Influences on Social Class Influences on Consumer BehaviorConsumer Behavior

Social ClassSocial Class

The concept of social class implies that some people The concept of social class implies that some people have more power, wealth and opportunity than other do.have more power, wealth and opportunity than other do.

Many consumers show off their possessions or use Many consumers show off their possessions or use possessions as status symbols.possessions as status symbols.

Members of a social class can raise their social standing Members of a social class can raise their social standing or fall in social standing which will affect their acquisition, or fall in social standing which will affect their acquisition, consumption and disposition decisions.consumption and disposition decisions.

By examining the nature of social class, types of class By examining the nature of social class, types of class systems and trends marketers find valuable information.systems and trends marketers find valuable information.

Social ClassSocial Class

Most societies have a Most societies have a social class hierarchysocial class hierarchy that groups members of the society according to that groups members of the society according to status (high to low).status (high to low).

Members of a social class tend to share similar Members of a social class tend to share similar values and behavior patterns.values and behavior patterns.

Social classes are not formal groups with a Social classes are not formal groups with a strong identity, but loose collections of strong identity, but loose collections of individuals with similar life experiences.individuals with similar life experiences.

Types of Social Class SystemsTypes of Social Class Systems

Most societies have three major classes: high, middle Most societies have three major classes: high, middle and low.and low.

The USA is divided into seven levels according to exhibit The USA is divided into seven levels according to exhibit 14.3 on page 333. (most individuals in any society are 14.3 on page 333. (most individuals in any society are concentrated in the middle class).concentrated in the middle class).

Although most societies have some kind of hierarchical Although most societies have some kind of hierarchical structure, the size and composition of the classes structure, the size and composition of the classes depend on the relative prosperity of a particular country. depend on the relative prosperity of a particular country. Refer to page 334 exhibit 14.4Refer to page 334 exhibit 14.4


In different cultures the upper class in most likely In different cultures the upper class in most likely to be similar to each other than any other to be similar to each other than any other classes because the upper classes tend to be classes because the upper classes tend to be more cosmopolitan and international in more cosmopolitan and international in orientation.orientation.

Lower classes, are the most likely to culturally Lower classes, are the most likely to culturally bound and unaware of other cultures and bound and unaware of other cultures and thereby not influenced by them.thereby not influenced by them.


Families whose income level is 20 to 30 percent Families whose income level is 20 to 30 percent over the median of their class are considered over the median of their class are considered over privilegedover privileged because they have the funds to because they have the funds to buy items beyond basic necessities.buy items beyond basic necessities.

Class averageClass average refers to families who income is refers to families who income is average for their social class.average for their social class.

UnderprivilegedUnderprivileged families are those with income families are those with income below the average for their social class.below the average for their social class.

Social Class InfluencesSocial Class Influences

Members of a social class are more likely Members of a social class are more likely to be influenced by individuals in their own to be influenced by individuals in their own social class than by those in other classes.social class than by those in other classes.

One theory of social class influence is the One theory of social class influence is the trickle-down effecttrickle-down effect in which trends that in which trends that start in the upper classes are then copied start in the upper classes are then copied by lower classes.by lower classes.

Social Class InfluencesSocial Class Influences

Status FloatStatus Float can also occur, whereby can also occur, whereby trends start in the lower and middle trends start in the lower and middle classes and then spread upward.classes and then spread upward.

Example: Blue Jeans, Tattoos, and Example: Blue Jeans, Tattoos, and Musical StylesMusical Styles

How Social Class is DeterminedHow Social Class is Determined

A common misconception is that the more A common misconception is that the more money you make the higher your social money you make the higher your social standing.standing.

Income is not strongly related to social class Income is not strongly related to social class for several reasons:for several reasons:

1.1. Income levels overlap social classesIncome levels overlap social classes2.2. Income increases greatly with age, but older Income increases greatly with age, but older

workers do not necessarily more up in social workers do not necessarily more up in social standing.standing.

3.3. Dual career families generate a higher than average Dual career families generate a higher than average income buy not necessarily higher social standing.income buy not necessarily higher social standing.


In general, Income is actually considered a In general, Income is actually considered a better predictor of consumption than social better predictor of consumption than social class.class.

Social class is a better predictor of Social class is a better predictor of consumption when it reflects lifestyles and consumption when it reflects lifestyles and values and does not involve high monetary values and does not involve high monetary expenditures, such as clothes, sports expenditures, such as clothes, sports equipment or furniture.equipment or furniture.


Income is more useful in explaining the consumption of Income is more useful in explaining the consumption of products and services than are not related to class-products and services than are not related to class-symbols such as boats, recreational vehicles- but that do symbols such as boats, recreational vehicles- but that do involve substantial expendituresinvolve substantial expenditures

Income cannot explain social class, but social class often Income cannot explain social class, but social class often determines how income is used.determines how income is used.

Social class aids in the understanding of consumer Social class aids in the understanding of consumer behavior and that social standing is determined by a behavior and that social standing is determined by a variety of factors in addition to income.variety of factors in addition to income.


The greatest determinant of class standing is The greatest determinant of class standing is occupation.occupation.

Occupations that require higher levels of education, skill Occupations that require higher levels of education, skill or training, are viewed as higher in status than others.or training, are viewed as higher in status than others.

A college degree is a crucial factor in gaining entry into A college degree is a crucial factor in gaining entry into higher-status occupations.higher-status occupations.

Highly educated consumers tend to read and travel more Highly educated consumers tend to read and travel more and to be less adverse to trying new things when and to be less adverse to trying new things when compared to the rest of the population.compared to the rest of the population.


Residence, possessions, family background, Residence, possessions, family background, and social interactions can also indicate class and social interactions can also indicate class level.level.

Your Your Inherited statusInherited status is the status which is is the status which is adopted from parents at birth.adopted from parents at birth.

The The earned statusearned status is the status you acquire is the status you acquire later in life through your own achievements.later in life through your own achievements.

How Social Class Changes Over How Social Class Changes Over TimeTime

Trends that influence the evolution of Trends that influence the evolution of social class structures are:social class structures are:

1.1. Upward mobilityUpward mobility

2.2. Downward mobilityDownward mobility

3.3. Social class fragmentationSocial class fragmentation


Upward MobilityUpward Mobility refers to raising one’s status refers to raising one’s status level.level. Usually achieved by educational or occupational Usually achieved by educational or occupational

achievementachievement

Education is the biggest ticket for middle class Education is the biggest ticket for middle class upward mobility.upward mobility.

In the US, more than 1/3 of children from blue-collar In the US, more than 1/3 of children from blue-collar workers are college graduates and have a 30% workers are college graduates and have a 30% chance of raising their occupational status.chance of raising their occupational status.


Downward mobilityDownward mobility refers to the lowering of refers to the lowering of one’s social standing.one’s social standing. Due to loss of jobsDue to loss of jobs Rising inflationRising inflation Children may now have a difficult time reaching their Children may now have a difficult time reaching their

parents status known as parents status known as status panic.status panic.

Downward mobility creates disappointment and Downward mobility creates disappointment and disillusionment and can lead to loss of possessions.disillusionment and can lead to loss of possessions.


Social Class FragmentationSocial Class Fragmentation refers to the refers to the disappearance of class distinctions. This disappearance of class distinctions. This fragmentation is tied to several factors:fragmentation is tied to several factors:

1.1. Upward and downward mobility have blurred class Upward and downward mobility have blurred class distinctions.distinctions.

2.2. Increased availability of mass media has exposed Increased availability of mass media has exposed consumers to the values and norms of other classes consumers to the values and norms of other classes and cultures.and cultures.

3.3. The advances in communication technology have The advances in communication technology have increased interaction across social class lines.increased interaction across social class lines.

How Does Social Class Affect How Does Social Class Affect ConsumptionConsumption

Social class is viewed as a cause or Social class is viewed as a cause or motivation for consumer acquisition, motivation for consumer acquisition, consumption and disposition through four consumption and disposition through four major areas:major areas:

1.1. Conspicuous consumptionConspicuous consumption2.2. Acquisition as status symbolsAcquisition as status symbols3.3. Compensatory consumptionCompensatory consumption4.4. The meaning of moneyThe meaning of money


Conspicuous ConsumptionConspicuous Consumption is the is the acquisition and display of goods and acquisition and display of goods and services to show off one’s status.services to show off one’s status.

Visibility of goods and services is critical Visibility of goods and services is critical because their message can be communicated because their message can be communicated only if others see it.only if others see it.

Observed in most social classes.Observed in most social classes.


Conspicuous wasteConspicuous waste is visibly buying products and is visibly buying products and services that one never uses.services that one never uses.

Status SymbolsStatus Symbols refers to products or services that tell refers to products or services that tell others about someone’s social class standing.others about someone’s social class standing.

Status symbols sometimes move in reverse directions Status symbols sometimes move in reverse directions known as known as parody displayparody display..

Status symbols can become Status symbols can become fraudulent symbolsfraudulent symbols if they if they are widely possessedare widely possessed


Compensatory consumptionCompensatory consumption is an is an attempt to offset deficiencies or lack of attempt to offset deficiencies or lack of esteem by devoting attention to esteem by devoting attention to consumption.consumption.

Usually explained purchase patterns of Usually explained purchase patterns of working class but is now apparent in all class working class but is now apparent in all class levels.levels.


The Meaning of MoneyThe Meaning of Money Defined Defined moneymoney is a medium of exchange or standard is a medium of exchange or standard

of payment.of payment.

Money is viewed as a means of acquiring things that Money is viewed as a means of acquiring things that will not only bring happiness and life fulfillment but will not only bring happiness and life fulfillment but also provide a sense of status and prestige.also provide a sense of status and prestige.

Money allows individuals to acquire status objects as Money allows individuals to acquire status objects as indicators of social class.indicators of social class.


The Meaning of MoneyThe Meaning of Money Consumers treat money differently some Consumers treat money differently some

spend and some save.spend and some save.

Spenders tend to be healthier and happier Spenders tend to be healthier and happier than self-deniers. But, many individuals spend than self-deniers. But, many individuals spend more than they have end up in bankruptcy.more than they have end up in bankruptcy.


The Meaning of MoneyThe Meaning of Money The positive side of money is viewed to assist in the The positive side of money is viewed to assist in the

acquisition of needed items, a higher quality of life, acquisition of needed items, a higher quality of life, and ability to helps others in society.and ability to helps others in society.

Also perceived as a reward for hard work.Also perceived as a reward for hard work.

The negative side of money can lead to obsession, The negative side of money can lead to obsession, greed, dishonesty, and potentially harmful practices greed, dishonesty, and potentially harmful practices such as gambling, prostitution, and drug dealing.such as gambling, prostitution, and drug dealing.

Consumption Patterns of Specific Consumption Patterns of Specific Social ClassesSocial Classes

The Upper ClassThe Upper Class More likely to view themselves as More likely to view themselves as

intellectual, political, and socially conscious.intellectual, political, and socially conscious.

Attend theater, invest in art, purchase books, Attend theater, invest in art, purchase books, travel, donate time and money to good travel, donate time and money to good causes, attend prestigious schools and causes, attend prestigious schools and belong to private clubs.belong to private clubs.


The Middle ClassThe Middle Class Look to upper class for guidance related Look to upper class for guidance related

to proper dining etiquette, apparel selections , to proper dining etiquette, apparel selections , leisure activities, vacation and educational leisure activities, vacation and educational classes for self improvement.classes for self improvement.

Greater portion of food budget is spend on Greater portion of food budget is spend on take out meals or dining at nice restaurants.take out meals or dining at nice restaurants.


The Working ClassThe Working Class Known for membership in labor unionsKnown for membership in labor unions Depends on family for economic and social Depends on family for economic and social

supportsupport More likely to eat at homeMore likely to eat at home More likely to live in mobile homeMore likely to live in mobile home Prefer to spend rather than save, if they save Prefer to spend rather than save, if they save

they prefer savings accounts to investments.they prefer savings accounts to investments.


The HomelessThe Homeless About 7 million in the USAAbout 7 million in the USA

Made up of drug & alcohol abusers, former Made up of drug & alcohol abusers, former mental patients, members of minority female-mental patients, members of minority female-head of households, and those who head of households, and those who experience financial setbacks.experience financial setbacks.

Noted for struggling to surviveNoted for struggling to survive


The HomelessThe Homeless Maintain self esteem byMaintain self esteem by

Distracting themselves from more dependent Distracting themselves from more dependent individuals on welfare or in shelters and from individuals on welfare or in shelters and from institutions like the salvation army.institutions like the salvation army.

Accepting a street role identityAccepting a street role identity

Telling fictitious stories about past or future Telling fictitious stories about past or future accomplishments.accomplishments.


The HomelessThe Homeless Scavenging is the finding of used or partially used Scavenging is the finding of used or partially used

goods that other individuals and institutions have goods that other individuals and institutions have discarded.discarded.

Also known for begging, redeeming bottles or cans for Also known for begging, redeeming bottles or cans for deposit, collecting scrap metal, cleaning windshields deposit, collecting scrap metal, cleaning windshields at intersections and day laborers.at intersections and day laborers.

Prefer spending money when available on special Prefer spending money when available on special treats.treats.

Marketing ImplicationsMarketing Implications

Social class motives and values can Social class motives and values can determine which products or services determine which products or services consumers desire.consumers desire.

Marketers can design advertising and Marketers can design advertising and personal selling messages to appeal to personal selling messages to appeal to various social classes.various social classes.

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Technology

concept of social class

nature of social class

social classes income

class averagerefers

types of class systems

higher social standing

members of asocial class

upper classes