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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Chapter Ten Slide 4

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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Chapter Ten Slide 5

The Changing U.S. Family

Types of families
Nuclear Extended Single-parent

Changes in household spending patterns

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Chapter Ten Slide 6

The Changing U.S. Family

Family
Two or more persons related by blood, marriage, or adoption who reside together.

Types of familiy:
Nuclear Family
A household consisting of a husband and wife and at least one offspring.

Extended Family
A household consisting of a husband, wife, offspring, and at least one other blood relative

Single-Parent Family
Households consisting of one parent and at least one child, because of divorce, separation, or not married

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

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Chapter Ten Slide 8

Consumer Socialization

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

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Chapter Ten Slide 9

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

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Chapter Ten Slide 10

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

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Chapter Ten Slide 11

A Simple Model of the Socialization Process - Figure 10.4

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Chapter Ten Slide 12

Other Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

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Chapter Ten Slide 13

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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Chapter Ten Slide 14

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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Chapter Ten Slide 15

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

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

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Chapter Ten Slide 16

Figure 10.13 An Extended Family life Cycle

Middle-Aged Divorced without Children
Young Divorced without Children Middle-Aged Married without Children MiddleAged Married with Children* MiddleAged Divorced with Children MiddleAged Married without Dependent Children* MiddleAged Divorced without Children

Young Single*

Young Married without Children*

Young Married with Children*

Older Married*

Older Unmarried*

Young Divorced with Children*

Usual Flow Recycled Flow * Traditional Family Flow

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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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Chapter Ten Slide 18

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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Chapter Ten Slide 19

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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Chapter Ten Slide 20

Objective Measures
Single-variable indexes Compositevariable indexes

Occupation Education Income

Index of Status Characteristics Socioeconomic Status Score

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Chapter Ten Slide 21

Social Class Mobility

Upward mobility Downward mobility Rags to riches?

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Chapter Ten Slide 22

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.
Chapter Ten Slide 23

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Prizm Clusters Figure 10.10a, b

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Chapter Ten Slide 24

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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Chapter Ten Slide 26

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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Chapter Ten Slide 27

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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Chapter Ten Slide 28

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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Chapter Ten Slide 29

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

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Chapter Ten Slide 30

The Change is Due to the Importance of Computers.

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Chapter Ten Slide 31

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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Chapter Ten Slide 32