CHAPTER TEN

The Family and Its Social Class Standing

Learning Objectives
1. To Understand the Changing Nature of U.S. Families, Including Their Composition and Spending Patterns. 2. To Understand the Socialization Process and Other Roles of the Family. 3. To Understand the Dynamics of HusbandWife Decision Making, as Well as the Influence of Children in Family Consumption Decision Making.
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Learning Objectives (continued)

4. To Understand How Traditional and Nontraditional Family Life Cycles Impact Consumer Behavior. 5. To Understand What Social Class Is and How It Relates to Consumer Behavior. 6. To Understand the Various Measures of Social Class and Their Role in Consumer Behavior.
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Learning Objectives (continued)

7. To Appreciate the Distinctive Profiles of Specific Social Class Groupings. 8. To Understand the Ups and Downs of Social Class Mobility. 9. To Understand the Relationship Between Social Class and Geodemographic Clusters. 10. To Understand the Affluent Consumer.

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Learning Objectives (continued)

11. To Understand the Middle-Class Consumer. 12. To Understand the Working Class and Other Nonaffulent Consumers. 13. To Understand the Nature and Influence of the Techno-Class. 14. To Understand How Social Class Is Used in Consumer Research Studies.

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As You See It, What Is the Main Family Message of This Ad?

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It Reminds Parents of the Importance of Creating Quality Time.

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The Changing U.S. Family

Types of families
Nuclear Extended Single-parent

Changes in household spending patterns

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Evidence of the Dynamic Nature of U.S. Households Figure 10-2

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Relative Influence In Decision Making

Joint

Autonomic

10

Consumer Socialization

The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

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Discussion Questions
How do marketers influence consumer socialization? Does this seem unethical? At what point would it be unethical?

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What Is the Name and Definition of the Process Depicted in This Ad?

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Consumer Socialization - the Process by Which Children Acquire the Skills, Knowledge, Attitudes, and Experiences Necessary to Function as Consumers

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A Simple Model of the Socialization Process - Figure 10.4

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Other Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

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Family Decision Making

Dynamics of Husband-Wife Decision Making
Husband-Dominated Wife-Dominated

Expanding Role of Children In Family Decision Making

Choosing restaurants and items in supermarkets Teen Internet mavens Pester power

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Framework of 10-year-old Influencer Figure 10.5

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The Family Life Cycle

Traditional Family Life Cycle
Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution

Modifications - the Nontraditional FLC

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To Which Stage of the Family Life Cycle Does This Ad Apply, and Why?

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Bachelorhood The Target Consumer Is Not Yet Married

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Which Subgroup of Empty Nesters Does This Ad Most Likely Target?

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The ones who are would like to pursue new interests and fulfill unsatisfied needs

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Nontraditional FLC Family Stages

Alternative FLC Stage Childless couples Definition/Commentary Increasingly acceptable with more careeroriented married women and delayed marriages Likely to have fewer or no children Likely to have fewer children. Want the best and live quality lifestyle High divorce rate - about 50% lead to this Child out of wedlock Single person who adopts

Couples who marry later in life Couples with first child in late 30s or later Single parents I Single parents II Single parents III

Extended family

Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.

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Dual Spouse Work Involvement (DSWI)

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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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Social Class Measure and Distribution Table 10.8

SOCIAL CLASSES and PERCENTAGE Upper Upper-middle Middle Working Lower 4.3% 13.8% 32.8% 32.3% 16.8%

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Social Class Measurement

Subjective Measures
individuals are asked to estimate their own socialclass positions

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

Compositevariable indexes
Index of Status Characteristics Socioeconomic Status Score

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Discussion Questions
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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Social Class Mobility

Upward mobility Downward mobility Rags to riches?

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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.
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Prizm Clusters Figure 10.10a, b

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The Affluent Consumer

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
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The Affluent Consumer

Three Segments of Affluent Customers Average Household Expenditures Figure 10.12

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What Is the Name of the Segment Targeted by This Ad, and Why Is the Appeal Shown Here Used?

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This Ad was Used Because it is Effective for the Affluent Consumer.

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What Is the Middle Class?

The middle 50 percent of household incomes - households earning between $25,000 and $85,000 The emerging Chinese middle class Moving up to more near luxuries

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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.

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Discussion Questions
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 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

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In What Ways Have the Prestige and Status of Geeks Been Changing?

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The Change is Due to the Importance of Computers.

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Consumer Behavior and Social Class

Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication

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