Social Class Both personal and social conditions influence how
we spend our money.
Slide 3
Discretionary Income The money available to a household over
and above what it requires to have a comfortable standard of living
How we spend varies based in part on our attitudes toward money
Tightwads hate to part with their money and actually experience
emotional pain when they make purchases Driven by pain of paying
NOT the pleasure of saving Spendthrifts Enjoy nothing more than
spending
Slide 4
Consumer Confidence Consumer confidence Consumer beliefs about
what the future holds Factors affecting the overall savings rate:
Pessimism/optimism about personal circumstances Optimism = reduce
savings rate World events Cultural differences in attitudes toward
savings
Slide 5
For Reflection How does your own attitude toward spending
affect your general shopping patterns?
Slide 6
Grouping Consumers to Understand & Predict Their Behaviors
Social class as an aggregate of several measures that can describe
a person or a household People who are similar on social class
indicators are often similar in their consumer behaviors
Slide 7
What is Social Class? Status hierarchy by which groups and
individuals are classified on the basis of esteem and prestige AMA
A group of people whom other members of the community see as equal
to one another in social prestige and whom others believe to be
superior or inferior in prestige to other groups that constitute
the social classes below them or above them (L. Warner)
Slide 8
Social Class
Slide 9
Social Class Membership Members of the same social class tend
to share common values, beliefs, and behaviors that unite them
Membership in a higher class generally leads to greater influence
within the workplace, organizations, and society as a whole
Slide 10
Social Class Structure Haves versus have-nots Social class is
determined by income, family background, and occupation Universal
pecking order: relative standing in society Social class affects
access to resources
Slide 11
What is your Social Class? Measures Subjective (rank self)
Reputational (someone gives opinion of your social class) Objective
methods (uses scores on various observable variables) Warners
Index: occupation, source of income, house type, dwelling area
Slide 12
Social Class
Slide 13
Income Source Income source along with occupation, and
education may help us determine whether two individuals that have
the same income belong in the same class: investments, inheritance,
old wealth, etc.
Slide 14
What do you think? Does a professional athlete making $20
million belong in the same social class with a physician making
$150,000 A mechanic wins $50 million in the lotterywill his social
class change?
Slide 15
Social Mobility Horizontal Mobility Upward Mobility Downward
Mobility
Slide 16
Social Class in the United States
Slide 17
Social Class in the US - A five-class hierarchy Upper class
Attend elite schools, engage in inconspicuous consumption
Upper-middle class Professionals, independent businesspeople,
corporate executives Lower-middle class Salespeople, clerical
workers, supervisors, construction contractors, small retail store
owners Upper-lower class Skilled and semi-skilled blue-collar
workers Lower-lower class Lower blue-collar workers, the
unemployed, families on welfare, and unskilled workers
Slide 18
Class Structure Around the World China Rise of middle class
Nikes new brand presence there Japan A status- and brand-conscious
society Single, working women spending on luxury goods Middle East
Major retailers/brands where Arab women enjoy shopping with their
families/friends England Rigid class structure still exists, but
the dominance of its aristocracy is fading (or is it?) Marketers
are targeting chavs interest in fashion, food, and gadgets
http://news.bbc.co.uk/2/hi/uk_news/7853360.stm
Slide 19
Social Class Important Source of Beliefs, Values, &
Behaviors Different social classes value education differently
Attitudes toward family life, raising children, the role of women,
etc., vary from class to class Time with children, attitude toward
work, care of self People in various social classes exhibit
markedly different lifestyles Activities outside home, times of
meals, types of sports
Slide 20
Taste Cultures: Social Class & Media Use Lower-class people
are less likely to subscribe to newspapers than are members of the
middle class Choice of magazine is likely tied to education &
reading ability Lower-middle classReaders Digest, Ladies Home
Journal Upper-middle classTime, The New Yorker, etc. Broadcast
media choice also varies by social class Upper-middle classNBC vs.
lower-middle class: CBS Lower-middle classmore responsive to
audiovisual forms of communication
Slide 21
Social Class & Shopping Lower-class women are the most
impulsive about shopping. Why? Upper-lower class women are likely
to respond to promotions offering coupons or other special
inducements. Why? Members of the upper class prefer traditional
home furnishings. Why?
Slide 22
Social Class & Leisure Bowling, TV, and bingo are favorite
lower-class leisure pursuits. Why? Most activities enjoyed by
middle- and upper-class people are less time consuming than
lower-class choices. Why?
Slide 23
Social Class & Advertising Lower-status consumers are more
receptive to advertising that depicts activity, ongoing work and
life, expressions of energy, etc. Why? Upper-middle class consumers
are more critical of advertising, suspicious of emotional appeals,
and skeptical of claims. Why?
Slide 24
Social Class & (?)
http://www.youtube.com/watch?v=YeSC7j1vqe4&feature=relate d
http://www.youtube.com/watch?v=hr-
wISyGSW0&feature=PlayList&p=039E34C814281921&playne
xt=1&playnext_from=PL&index=5
Slide 25
Status Symbols What matters is having more wealth/fame than
others Status-seeking: motivation to obtain products that will let
others know that you have made it
Slide 26
Problems with Social Class Segmentation Ignores status
inconsistencies Ignores intergenerational mobility Ignores
subjective social class Ignores consumers aspirations to change
class standing Ignores the social status of working wives
Slide 27
Consumption Style
Slide 28
Chapter Summary Both personal and social conditions influence
how we spend our money. We group consumers into social classes that
say a lot about where they stand in society. A persons desire to
make a statement about social class influences the products he
likes and dislikes.