CB 14.09.2022.ppt
- 1. Consumer Behavior, Ninth Edition Schiffman & Kanuk Social Class and Consumer Behavior
- 2. 11 - 2 Chapter Outline • What is 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
- 3. 11 - 3 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.
- 4. 11 - 4 Status Consumption • Consumers endeavor to increase their social standing through consumption • Very important for luxury goods • Is different from conspicuous consumption
- 5. 11 - 5 Discussion Question • Why is status consumption important for some consumers? • How can marketers promote increased status consumption?
- 6. 11 - 6 Social Class Is Hierarchal • Status is frequently thought of as the relative rankings of members of each social class
- 7. 11 - 7 Table 11.2 Percent Distribution of Five- Category Social-Class Measure SOCIAL CLASSES PERCENTAGE Upper 4.3 Upper-middle 13.8 Middle 32.8 Working 32.3 Lower 16.8 Total percentage 100.0
- 9. 11 - 9 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
- 10. 11 - 10 Objective Measures • Single-variable indexes – Occupation – Education – Income – Other Variables • Composite-variable indexes – Index of Status Characteristics – Socioeconomic Status Score
- 11. 11 - 11 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?
- 12. 11 - 12 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.
- 13. 11 - 13 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.
- 14. This reference to a plastic surgeon may be part of targeting to upper- class consumers.
- 15. 11 - 15 Occupational ranking in terms of honesty and ethical standards - Figure 11-2
- 16. 11 - 16 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 Source Public welfare Private financial assistance Wages (hourly) Salary (yearly) Profits or fees Earned wealth Inherited wealth, interest, dividends, royalties
- 17. 11 - 17 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.
- 18. 11 - 18 PRIZM (Potential Rating Index by Zip Market) A composite index of geographic and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.
- 19. 11 - 19 Explore the Prizm Product at Clarita’s Web site. weblink
- 20. 11 - 20 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
- 21. 11 - 21 Most large banks offer “private banking” services to their most affluent customers. weblink
- 22. 11 - 22 Three segments of affluent consumers’ average household expenditures Figure 11-5
- 23. 11 - 23 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 children’s education • Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)
- 24. 11 - 24 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
- 25. This ad focuses on the affordable price of this treatment.
- 26. 11 - 26 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.
- 27. 11 - 27 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?
- 28. 11 - 28 The U.S. Census is an excellent source of data on different economic groups. weblink
- 29. 11 - 29 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
- 30. 11 - 30 Consumer Behavior and Social Class • Clothing, Fashion, and Shopping • The Pursuit of Leisure • Saving, Spending, and Credit • Social Class and Communication
- 31. 11 - 31 Preferences of Americans for 100 Arts, Media and Leisure Pursuits Figure 11-8
- 32. 11 - 32 Class Situations, Self-Perceptions, and Financial Orientations Figure 11-9