Chapter 11

Social Class and

Consumer Behavior
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk

Copyright 2007 by Prentice Hall

Chapter Outline

What Ss Social Class?

The Measurement of Social Class
Geodemographic Clustering
The Affluent Consumer
The Middle Class Consumer
The Working Class
Selected Consumer Behavior
Applications of Social Class

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Social Class

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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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Status Consumption
Consumers endeavor to increase their
social standing through consumption
Very important for luxury goods
Is different from conspicuous consumption

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Discussion Question
Why is status consumption important for
some consumers?
How can marketers promote increased
status consumption?

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Social Class Is Hierarchal

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

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Table 11.2 Percent Distribution of FiveCategory Social-Class Measure

SOCIAL CLASSES
Upper
Upper-middle
Middle
Working
Lower
Total percentage

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PERCENTAGE
4.3
13.8
32.8
32.3
16.8
100.0

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This luxury
cruise line
targets
upscale
customers.

Social Class Measurement

Subjective Measures
individuals are asked to estimate their own socialclass positions

Reputational Measures
informants make judgments concerning the socialclass membership of others within the community

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
Other Variables

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Composite-variable
indexes
Index of Status
Characteristics
Socioeconomic
Status Score

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Discussion Question
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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Index of Status
Characteristics
(ISC)

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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.
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Socioeconomic
Status Score
(SES)

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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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This
reference to
a plastic
surgeon
may be part
of targeting
to upperclass
consumers.

Occupational
ranking in
terms of
honesty and
ethical
standards Figure 11-2

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Table 11.7 Typical Categories Used for

Assessing Amount or Source of Income
Amount
Under $25,000/year
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000-$124,999
$125,000-$149,999
$150,000-$174,999
$175,000-$199,999
$200,000 and over

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Source
Public welfare
Private financial assistance
Wages (hourly)
Salary (yearly)
Profits or fees
Earned wealth
Inherited wealth, interest,
dividends, royalties

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Geodemographic
Clusters

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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
(Potential
Rating Index
by Zip
Market)

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A composite index of
geographic and
socioeconomic factors
expressed in
residential zip code
neighborhoods from
which
geodemographic
consumer segments
are formed.
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Explore the
Prizm Product
at Claritas
Web site.
weblink

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The Affluent Consumer

Especially attractive target to marketers
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
Have different medial habits than the
general population
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Most large
banks offer
private
banking
services to
their most
affluent
customers.
weblink

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Three segments
of affluent
consumers
average
household
expenditures
Figure 11-5

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What Is the Middle Class?

The middle 50 percent of household incomes households earning between $22,500 and
$80,000
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)
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The Middle Class

There is evidence that the middle class is
slowly disappearing in the U.S.
Growth of middle class in some Asian and
Eastern European countries
Many companies offering luxury to the
masses with near-luxury models and
goods

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This ad
focuses on
the affordable
price of this
treatment.

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 Question
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 U.S.
Census is an
excellent
source of data
on different
economic
groups.
weblink

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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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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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Preferences
of
Americans
for 100 Arts,
Media and
Leisure
Pursuits
Figure 11-8

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Class Situations, Self-Perceptions, and

Financial Orientations
Figure 11-9

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