Chapter 11 Social Class

Copyright 2007 by Prentice Hall

Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Chapter 11Social Class and

Consumer Behavior

Copyright 2007 by Prentice Hall 11 - 2

Chapter Outline

• What Ss Social Class?• The Measurement of Social Class• Geodemographic Clustering• The Affluent Consumer• The Middle Class Consumer• The Working Class• Selected Consumer Behavior

Applications of 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.


Status Consumption

• Consumers endeavor to increase their social standing through consumption

• Very important for luxury goods

• Is different from conspicuous consumption


Discussion Question

• Why is status consumption important for some consumers?

• How can marketers promote increased status consumption?


Social Class Is Hierarchal

• Status is frequently thought of as the relative rankings of members of each social class


Table 11.2 Percent Distribution of Five-Category Social-Class Measure

SOCIAL CLASSES PERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage 100.0

This luxury cruise line

targets upscale

customers.


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


Objective Measures

• Single-variable indexes– Occupation– Education– Income– Other Variables

• Composite-variable indexes– Index of Status

Characteristics– Socioeconomic

Status Score


Discussion Question

• What are the advantages to a marketer using the objective method to measure social class?

• When would the subjective or reputational method be preferred?


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.


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.

This reference to

a plastic surgeon

may be part of targeting

to upper-class

consumers.


Occupational ranking in terms of

honesty and ethical

standards - Figure 11-2


Table 11.7 Typical Categories Used for Assessing Amount or Source of Income

AmountUnder $25,000/year

$25,000-$49,999

$50,000-$74,999

$75,000-$99,999

$100,000-$124,999

$125,000-$149,999

$150,000-$174,999

$175,000-$199,999

$200,000 and over

SourcePublic welfare

Private financial assistance

Wages (hourly)

Salary (yearly)

Profits or fees

Earned wealth

Inherited wealth, interest, dividends, royalties


Geodemographic Clusters

A composite segmentation

strategy that uses both geographic

variables (zip codes, neighborhoods) and

demographic variables (e.g.,

income, occupation) to identify target

markets.


PRIZM (Potential

Rating Index by Zip

Market)

A composite index of geographic and

socioeconomic factors expressed in

residential zip code neighborhoods from

which geodemographic

consumer segments are formed.


Explore the Prizm Product

at Clarita’s Web site.

weblink


The Affluent Consumer

• Especially attractive target to marketers• Growing number of households can be

classified as “mass affluent” with incomes of at least $75,000

• Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income

• Have different medial habits than the general population


Most large banks offer

“private banking”

services to their most

affluent customers.

weblink


Three segments of affluent

consumers’ average

household expenditures Figure 11-5


What Is the Middle Class?• The “middle” 50 percent of household incomes

- households earning between $22,500 and $80,000

• Households made up of college-educated adults who use computers, and are involved in children’s education

• Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)


The Middle Class

• There is evidence that the middle class is slowly disappearing in the U.S.

• Growth of middle class in some Asian and Eastern European countries

• Many companies offering luxury to the masses with near-luxury models and goods

This ad focuses on

the affordable price of this treatment.


The Working Class?

• Households earning $40,000 or less control more than 30 percent of the total income in the U.S.

• These consumers tend to be more brand loyal than wealthier consumers.


Discussion Question

• What types of products are targeted to the working class?

• What issues must marketers consider when targeting their ads to the working class?


The U.S. Census is an

excellent source of data

on different economic groups.

weblink


The Techno Class

• Having competency with technology

• Those without are referred to as “technologically underclassed”

• Parents are seeking computer exposure for their children

• Geeks now viewed as friendly and fun


Consumer Behavior and Social Class

• Clothing, Fashion, and Shopping

• The Pursuit of Leisure

• Saving, Spending, and Credit

• Social Class and Communication


Preferences of

Americans for 100 Arts, Media and

Leisure Pursuits

Figure 11-8


Class Situations, Self-Perceptions, and Financial Orientations

Figure 11-9

Documents

Chapter 11 Social Class