consumer behavior - social class
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Consumer BehaviorSocial Class
Conducted by Hao Xue & Yoshihiro Horie
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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 the same relative status and members of all other classes have either more or less status
Definition
Structure of Social Class
Upper Class
Middle Class
Lower Class
Traditional Social Structure
Upper Class
Middle Class
Lower Class
Olive Type Social Structure
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Social Class profileThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
Upper-Upper
Lower-Upper
Upper-Middle
Middle Class
Working Class
Lower Classes
Lower-Lower
2.50% 7.50% 12.50% 17.50% 22.50% 27.50% 32.50% 37.50%Upper-Upper
Lower-Upper
Upper-Middle
Middle Class
Working Class
Lower Classes
Lower-Lower
Series1 0.003 0.012 0.125 NaN 0.32 0.38 NaN 0.09 0.07
Social Class Structure in Canada (Differentiated by Income)
Strugglers
Security- minded majority
Faith full followers
Achieving professionals
New wealth
Country club establishment
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Small number of well – established families• Sponsor major charity events• Serve as trustees for local universities and hospitals• prominent physicians and lawyers• May be heads of major financial institutions, owners of major long- established firms• accustomed to wealth, so do not spend money conspicuously
Do you know which Social Class it refers to?
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Small number of well – established families• Serve as trustees for local universities and hospitals• prominent physicians and lawyers• May be heads of major financial institutions, owners of major long- established firms• accustomed to wealth, so do not spend money conspicuously
The upper-upper class
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Primary non-managerial white-collar workers and highly paid blue-collar workers• Want to achieve “respectability” and be accepted as good citizens• Want their children to be well-behaved• Tend to be churchgoers and are often involved in church- sponsored activities• Prefer a neat and clean appearance and tend to avoid faddish or highly – styled clothing• Constitute a major market for do-it-yourself products
Do you know which Social Class it refers to?
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Primary non-managerial white-collar workers and highly paid blue-collar workers• Want to achieve “respectability” and be accepted as good citizens• Want their children to be well-behaved• Tend to be churchgoers and are often involved in church- sponsored activities• Prefer a neat and clean appearance and tend to avoid faddish or highly – styled clothing• Constitute a major market for do-it-yourself products
The lower- middle class
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Solidly blue collar• strive for security (sometimes gained from union membership)• View work as a means to “buy” enjoyment• Want children to behave properly• High wage earners in this group may spend impulsively• Interested in items that enhance their leisure time (e.g., TV sets, hunting equipment)• Males are sports fans, beer drinkers
Do you know which Social Class it refers to?
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PuzzleThe lower
– lower class
The upper-lower class
The lower- middle
class
The upper-middle class
The upper-upper class
The lower-upper class
• Solidly blue collar• strive for security (sometimes gained from union membership)• View work as a means to “buy” enjoyment• Want children to behave properly• High wage earners in this group may spend impulsively• Interested in items that enhance their leisure time (e.g., TV sets, hunting equipment)• Males are sports fans, beer drinkers
The upper-lower class
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How is it important to understand social class in consumer behaviour study?
Universal Pecking Order
Affects access to resources
Affects tastes and lifestyles
natural form of market segmentation
Frame of reference for consumer behaviour
Reflects a person’s relative social status
Individuals can move up or down the social class hierarchy
Social class is a crucial external factor which influence consumer’s behaviour; It is because:
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Trends for social class evolution
The measurement of social class
Downward MobilityUpward Mobility
Subjective Measures Reputational Measures
Objective Measures
Single-variable index• Occupation• Education• Income
Composite-variable index
Index of status characteristics weight measure of • occupation,• source of income• house type• dwelling area• Cultural interest• World view• Etc.,
Socio – economic status scoreA measure using three basic socio – economic variables: • occupation • income and • educational attainment
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How social class affects purchase decisions?
Class differences in World View
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How social class affects purchase decisions?
Taste Culture, Codes, and Cultural Capital are difference among different social class
Taste Culture• Aesthetic • Intellectual preferences
Codes Cultural Capital
• Elaborated codes (Analysis)
• Restricted codes (Discretion)
• Refined behavior that admits a person into the realm of the upper class
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Marketing strategies for different social class
Targeting working class
• 13% of Canadian families • 10% of Canada children
Canadian poverty lineStaples
• milk• orange juice• tea• etc.
Purchase at the same rate as average – income families
Minimum-wage-level households spend a greater-than-average share of income on out-of-pocket costs for
housing and food eaten at home
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Marketing strategies for different social class
Targeting the Affluent
Attitudes
Young
Old
Luxury is a rewardDisplay self-success
Luxury is functionalDemonstrate logical decision
Luxury is indulgence More male
Different Segmentation of Rich
Old Money – inherited• Tend to make distinctions in terms of ancestry and lineage rather than wealth
The Nouveaux Riches• Status anxiety – more likely to shopping for demonstrating status
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Apply Status Symbols for other social segmentations
Conspicuous Consumption• Visible evidence of their ability to afford luxury goods
Invidious Distinction• To inspire envy in others through the display of wealth or power
The Trophy Wife• Idle rich• Husband – Walking billboard• Potlatch ritual – social weapon
Porody Display• Deliberately avoid status symbols
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Social Class Concept applies to marketing strategy
Clothing, fashion and shopping
Responses to marketing communication
The pursuit of leisure
Saving, spending, and credit
Social Class Applications in typical
fields
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In class activity
• Social Class Symbols: In-class Activity Game• Chintz or Shag game• http://www.pbs.org/peoplelikeus/games/
chintz.htmlSelect household furnishings and accessories
• Purpose of the game – Subjective measurement– Reputational measurement
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What is your social class?
• Noveau riche• Middle middle• Old money• Working class• Trailer house
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Social mobility
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Social mobility
• A movement of individuals, groups or families through a system of social hierarchy
o Vertical mobility• Upward and downward mobility
A freedom to attain education has changed a way we look at traditional social class model.
A change in career – income increase/decreaseo Horizontal mobility
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Vertical mobility
• Family income: career transition• Occupational status: celebrity, musician• Educational attainment: MBA
But what about• Taste• If you win lottery
Three criteria
Lower class Upper class
taste
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Lower class to upper class
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Rachel McAdams
Ryan GoslingJustin Bieber
Celebritymusician
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Born in Ladysmith BC, the daughter of Barry, a furnace repairman, and Carol Anderson, a waitress
Pamela Anderson was working as a fitness instructor
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People may move up or down the social ladder within their lifetime or from one generation to the next. That everyone has the same chance of moving up is what lies behind the idea of equality of opportunity.
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Thank you