Social Classes and Consumer Behaviour

Fahim akhtar

Social ClassSocial ClassThe 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.

Karl Marx

German philosopher and revolutionary socialist Karl Marx published The Communist Manifesto and Das Kapital, anticapitalist works that form the basis of Marxism.

Ruling Class owns and controls the forces of production, the

social class in power uses the non-economic institutions to uphold its authority and position.

The OppressedHampered by the ideological dominance of the

elite.

Characteristics of Social Class Is hierarchical Is a natural form of segmentation Provides a frame of reference for consumer behaviour Reflects a person’s relative social status

Social Class and Social StatusStatus is frequently thought of as the relative rankings

of members of each social class wealth power prestige

Social Comparison TheoryStates that individuals compare their own possessions

against those of others to determine their relative social standing.

To determine how good an artist I am, I will compare myself with a competent friend rather than a famous artist

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Status ConsumptionThe process by which consumers actively increase

their social standing through higher consumption or better possessions

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 Measuresvariable

Occupation Education Income Other Variables

Index of Status Characteristics (ISC)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)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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Elite class Less than 1% in number Control resources and have inherited wealth Travel frequently Educate their wards taking international platform Live in networked environment Difficult to be convinced in marketing

Upper class Less than 10 % in number Assertive, skilled and motivated Travel on need and for business support Spending well balanced Keen to grow more and enter in elite class Often work out their edge when subject to marketing

Upper Middle class More than 10 % in number White coloured and managing their live style depicting the

best Spend more on dress, living and social status maintenance Spending well balanced In touch with technology and development Calculative in spending other than mentioned earlier Own good living conditions and mobility means

Lower Middle Class Own reasonable living conditions Dependent on community mobility means Job and employment is their basic concern Spend more on education of their children Do multiple jobs or over time employment Easy target for marketer

Working class Live in rented accommodation Larger families internal structure Employment not permanent Spending aggressive Spend some portion on education

Poor class No living owned Unemployed mostly uneducated Spending pattern not supported by rational Live in fallacies

Social Class and Marketing Strategy Clothing, Fashion, and Shopping

Where one shops External point of identification

The Pursuit of Leisure Type of leisure activities differ

Social Class and Marketing Strategy Saving, Spending, and Credit

– Level of immediate gratification sought varies Responses to marketing communication

– Upper classes have a broader and more general view of the world

– Regional variations in language rise as we move down the social ladder

– Exposure to media varies by social class

Limitations of Social Class Social class is more difficult to measure than income Many purchase behaviours are related more to income

than social class Consumers often use expected social class for their

consumption patterns Dual incomes have changed consumption patterns Individual dimensions of social class are sometimes better

predictors of consumer behaviour

Group Activity Assume you are a travel agent selling vacation packages to different

social classes. Discuss and create a plan for:

– (1) vacation packages to offer (destination, accommodations, food, etc.)

– (2) advertising and appeals used– (3) media location

Do this for (a) upper class, (b) middle class, and (c) working class. Discuss if YOUR product is better suited for upper, middle, or

working class and why. Write down your ideas and be prepared to share with the class.