chapter four the changing american society: demographics and social stratification mcgraw-hill/irwin...
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CHAPTER FOUR
The Changing American Society: Demographics and Social Stratification
The Changing American Society: Demographics and Social Stratification
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Demographics
Describe a population in terms of its size, distribution, and structure.
• Population Size
• Distribution
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A Tale of Three Cities…
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Demographics: Occupation
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Demographics: Education
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Demographics: Income
• Enables but does not generally cause or explain them
• What is wealth?
• Subjective Discretionary Income
• Total Family Income
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Demographics: Age
18-24 25-34 35-44 45-54 55-64 65+
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Consumer Insight 4-1• Cognitive age is measured on four dimensions.
What additional dimensions, if any, do you think should be added?
• Do you think cognitive age is a valid concept? Why?
• If the meaning of age is a cultural concept, how would the concept and measurement of cognitive age change across cultures?
• How can marketers use cognitive age?
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Consumer Insight 4-2
• The percentage of the American population that is elderly is going to increase dramatically over the next 20 years. How is this going to change the nature of American society?
• What ethical and social responsibilities do marketers have when marketing to the elderly?
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Generations/Age Cohorts
• Generation/Age Cohort: a group of persons who have experienced a common social, political, historical, and economic environment
• Cohort Analysis: the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors
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Understanding American Generations
• Pre-depression (Before 1930)
• Depression (1930 to 1945)
• Baby Boom (1945 to 1964)
• Generation X (1965 to 1976)
• Generation Y (1977 to 1994)
• Millennials (After 1994)
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Social Standing Influences Behavior
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The Coleman-Rainwater Social Class Hierarchy
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The Coleman-Rainwater Social Class Hierarchy
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Upward-Pull Strategy
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Group Exercise
• Form a group of four people• Develop a scale of measurement for social status
• Be able to answer the following:• Single-Item or Multi-Item?• What is the main effect (most important factor)of the
index?• What are the strengths and weaknesses?• What products or services would be the best application
of your index?
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Measuring Social Status
• Single-Item Indexes• Education• Occupation (Socioeconomic Index: SEI)• Income
• Relative Occupational Class Income• Subjective Discretionary Income
• Multi-Item Indexes• Hollingshead Index of Social Position• Warner’s Index of Status Characteristics• Census Bureau’s Index of Socioeconomic Status
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Hollingshead Index of Social Position (ISP)
Occupation Scale (Weight of 7)
Description Score
Higher executives of large concerns, proprietors, and 1major professionals
Business managers, proprietors of medium-sized businesses, 2and lesser professionals
Administrative personnel, owners of small businesses, and 3minor professionals
Clerical and sales workers, technicians, and owners of little 4businesses
Skilled manual employees 5
Machine operators and semiskilled employees 6
Unskilled employees 7
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Hollingshead Index of Social Position (ISP)
Education Scale (Weight of 4)
Description Score
Professional (MA, MS, ME, MD, PhD, LLD, and the like) 1
Four-year college graduate (BA, BS, BM) 2
One to three years college (also business schools) 3
High school graduate 4
Ten to 11 years of school (part high school) 5
Seven to nine years of school 6
Less than seven years of school 7
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Hollingshead Index of Social Position (ISP)
ISP score = (Occupation score X 7) + (Education score X 4)
Classification System Range of
Description Scores
Upper 11-17
Upper-middle 18-31
Middle 32-47
Lower-middle 48-63
Lower 64-77
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Warner’s Index of Status Characteristics (ISC)
1 Professionals and pro- Inherited Excellent Very high: Gold Coast, prietors of large businesses wealth houses North Shore, etc.
2 Semiprofessionals & Earned Very good High: better suburbs & officials of large businesses wealth apartment house areas
3 Clerks and kindred Profits & Good houses Above average: areas all residential, workers fees space around houses, apartments in
good condition
4 Skilled workers Salary Average Average: residential neighborhoods, houses no deterioration
5 Proprietors of small Wages Fair houses Below average: area beginning to businesses deteriorate, business entering
6 Semiskilled workers Private relief Poor houses Low: considerably deteriorated, run down and semi-slum
7 Unskilled workers Public relief & Very poor Very low: slumnonrespectable housesincome
Characteristics Score Source of HouseOccupation Income Type Dwelling Area
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Upper-upper 12-17 1.4%
Lower-upper 18-24 1.6
Upper-middle 25-37 10.2
Lower-middle 38-50 28.8
Upper-lower 51-62 33.0
Lower-lower 63-84 25.5
Classification System
Range of PopulationSocial Strata Scores Breakdown
Warner’s Index of Status Characteristics (ISC)
ISC score = (Occupation X 4) + (Income source X 3) + (House type X 3) + (Dwelling area X 2)
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Census Bureau Index of Socioeconomic Status (SES)
Under $3,000 15 Some grade school 10 Laborers 20
$3,000-$4,999 31 Grade school graduate 23 Students 33
$5,000-$7,999 62 Some high school 42 Service workers 34
$8,000-$9,999 84 High school graduate 67 Operators 58
$10,000-$14,999 94 Some college 86 Craftsmen 58
$15,000-$19,999 97 College graduate 93 Clerical sales 71
$20,000-$29,999 99 Graduate school 98 Managers 81
$30,000 and over 100 Professionals 90
*Note: Income levels should be adjusted by consumer price index before using.Source: U.S. Bureau of the Census, Methodology and Scores of the Socioeconomic Status, Working Paper No. 15 (Washington, D.C.: U.S. Government Printing Office, 1963).
Income Education OccupationCategory* Score Category Score Category Score
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Census Bureau Index of Socioeconomic Status (SES)
(Income) + (Education) + (Occupation)SES score =
3
Upper 90-99 15.1%
Upper-middle 80-89 34.5
Middle 45-79 34.1
Lower-middle 0-44 16.3
*Note: Income levels should be adjusted by consumer price index before using.Source: U.S. Bureau of the Census, Methodology and Scores of the Socioeconomic Status, Working Paper No. 15(Washington, D.C.: U.S. Government Printing Office, 1963).
Classification System
Range of PopulationSocial Strata Scores Breakdown
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Using Social Class…
• Choosing the best measure• Will a single-item index be accurate
enough?• What is the underlying factor I should be
concerned with?
• Issues and Assumptions• Upward Social Mobility• Class Consciousness• Dated social-class measures
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Positioning and Social Class Segments
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Perceived Social Class Appeal