Chapter 13 Household & Social Class Influences. Learning Objectives~ Ch. 13 To understand:...

Chapter 13

Household &Social Class Influences

Learning Objectives~ Ch. 13

To understand:

1.Social class hierarchy & its determinants

2.Social class & consumer behavior

3.Three key forces changing social class structure in many countries

4.Various types of households/families & the family life cycle

Social Class & Household Influence

Social Class Hierarchy

Social Class Systems– High– Middle– Lower

Social Class—Economic Substrata– Over privileged– Class Average– Underprivileged

Class Structure by Culture

U.S. Subclasses

Upper Americans– Upper-upper– Lower-upper– Upper-middle

Middle Americans– Middle class– Working class

Lower Americans– “Not the lowest”– “Real lower-lower”

Social Classes of Thailand

Aristocracy

Elite

Upper-Middle Class

Lower-Middle Class

Lower Class

German Social Classes

Social Class Influence

Trickle-Down– Lower classes copy trends of upper

classes

Status Float– Trends start in lower/ middle classes &

spread upward

Social Class Determination

Income Versus Social Class—Income not strongly related

Occupation & Education—Strongest determinant of class standing

Other Indicators

– Inherited Status

– Earned Status

Social Class Indexes

– Computerized Status Index

– Status Crystallization

Social Class Dynamics

Upward Mobility—Education

Downward Mobility—Job loss

Marriage may impact mobility

– Status panic

Social Class Fragmentation

– Blurred class divisions

– Increased availability of mass media

– Advances in communication technology

Social Class & Consumption

Conspicuous consumption & status symbols—conspicuous wasteStatus symbols & judging others– Parody display– Fraudulent symbols

Compensatory consumptionMeaning of money– Both good & evil– Can you buy happiness?

Consumption Patterns by Social Classes

Upper Class– Aristocracy– New Social Elite (Novae Riches)– Upper Middle Class

Middle Class—White-collar workersWorking Class—Blue-collar workersHomeless– Struggle to Survive– Scavenging

This ad targets the upper-upper social class who are

likely to own private jets.

Courtesy Villas at Royal Lahaina

Marketing Implications

Product/service should reflect social class motives & values

Marketing messages should focus on groups’ distinctiveness

Media usage differs between classes

Different social classes shop at different stores

Social class may not be the best market segmentation variable: Why not?

Household Influences & CB

Types of Households– Family– Single Person Living Alone (the

most growing group)– Group of Individuals Living Together

Family– Nuclear– Extended

Household Types

The Family Life Cycle

Household Structure Trends

Delayed Marriage

Cohabitation

Dual Career Families

Divorce

Smaller Families

What accounts for these changes and in what ways are they relevant to business?

Roles

Gatekeeper

Influencer

Decider

Buyer

User– Roles can be expressive or instrumental

One of the trends in families is the increase of dual income families. This DuPont ad targets working mothers.

Courtesy DuPont

Buyers & Users

Household Role Conflict

Reasons for buying

Who should make decision

Which option to choose

Who uses product/service

Purchaser is not always the end user

Gender roles are blurring

Spouses & Decisions

Dominant– Husband– Wife

Decision– Autonomic– Syncratic

Bargaining Versus Concession

Children? Pester power

Questions?