Chapter 11 Social Class and Consumer Behaviour

Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

Copyright 2006 Pearson Education Canada Inc.

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.

Copyright 2006 Pearson Education Canada Inc.

11-2

Characteristics of Social Class

Is hierarchical Is a natural form of segmentation Provides a frame of reference for consumer behaviour Reflects a persons relative social status In Canada, individuals can up or down the social class hierarchy
Copyright 2006 Pearson Education Canada Inc.

11-3

Social Class and Social Status

Status is frequently thought of as the relative rankings of members of each social class wealth power prestige

Copyright 2006 Pearson Education Canada Inc.

11-4

Social Comparison Theory

states

that individuals compare their own possessions against those of others to determine their relative social standing.

Copyright 2006 Pearson Education Canada Inc.

11-5

Status Consumption
The

process by which consumers actively increase their social standing through conspicuous consumption or possessions

Copyright 2006 Pearson Education Canada Inc.

11-6

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
Copyright 2006 Pearson Education Canada Inc.

11-7

Objective Measures
Single-variable Composite-

indexes
Occupation Education Income Other Variables

variable indexes
Index of Status Characteristics Socioeconomic Status Score

Copyright 2006 Pearson Education Canada Inc.

11-8

Copyright 2006 Pearson Education Canada Inc.

11-9

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.

Copyright 2006 Pearson Education Canada Inc.

11-10

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.

Copyright 2006 Pearson Education Canada Inc.

11-11

What is Middle Class?

The middle 50% of household incomes Households made up of college-educated adults who use computers, and are involved in childrens education Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle which is considered affluent)

Copyright 2006 Pearson Education Canada Inc.

11-12

What is Working Class?

Households

with lower earnings; control more than 30% of the total income in the U.S. These consumers tend to be more brand loyal than wealthier consumers

Copyright 2006 Pearson Education Canada Inc.

11-13

(continued)

Copyright 2006 Pearson Education Canada Inc.

11-14

Figure 11-14 (continued)

(continued)

Copyright 2006 Pearson Education Canada Inc.

11-15

Figure 11-14 (continued)

(continued)

Copyright 2006 Pearson Education Canada Inc.

11-16

Figure 11-14 (continued)

(continued)

Copyright 2006 Pearson Education Canada Inc.

11-17

Figure 11-14 (continued)

Copyright 2006 Pearson Education Canada Inc.

11-18

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
continued

Copyright 2006 Pearson Education Canada Inc.

11-19

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
continued
Copyright 2006 Pearson Education Canada Inc.

11-20

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
Copyright 2006 Pearson Education Canada Inc.

11-21