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Consumer Behavior,Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter 11Social Class and
Consumer Behavior
11 - 2Copyright 2007 by Prentice Hall
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
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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.
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Status Consumption
• Consumers endeavor to increase their social standing through consumption
• Very important for luxury goods
• Is different from conspicuous consumption
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Discussion Question
• Why is status consumption important for some consumers?
• How can marketers promote increased status consumption?
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Social Class Is Hierarchal
• Status is frequently thought of as the relative rankings of members of each social class
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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
11 - 9Copyright 2007 by Prentice Hall
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
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Objective Measures
• Single-variable indexes– Occupation– Education– Income– Other Variables
• Composite-variable indexes– Index of Status
Characteristics– Socioeconomic
Status Score
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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?
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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.
11 - 13Copyright 2007 by Prentice Hall
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.
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Occupational ranking in terms of
honesty and ethical
standards - Figure 11-2
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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
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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.
11 - 18Copyright 2007 by Prentice Hall
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.
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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
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Most large banks offer
“private banking”
services to their most
affluent customers.
weblink
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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)
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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
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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.
11 - 25Copyright 2007 by Prentice Hall
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?
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The U.S. Census is an
excellent source of data
on different economic groups.
weblink
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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