chapter 13 household & social class influences. learning objectives~ ch. 13 to understand:...
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Chapter 13
Household &Social Class Influences
Learning Objectives~ Ch. 13
To understand:
1.Social class hierarchy & its determinants
2.Social class & consumer behavior
3.Three key forces changing social class structure in many countries
4.Various types of households/families & the family life cycle
Social Class & Household Influence
Social Class Hierarchy
Social Class Systems– High– Middle– Lower
Social Class—Economic Substrata– Over privileged– Class Average– Underprivileged
Class Structure by Culture
U.S. Subclasses
Upper Americans– Upper-upper– Lower-upper– Upper-middle
Middle Americans– Middle class– Working class
Lower Americans– “Not the lowest”– “Real lower-lower”
Social Classes of Thailand
Aristocracy
Elite
Upper-Middle Class
Lower-Middle Class
Lower Class
German Social Classes
Social Class Influence
Trickle-Down– Lower classes copy trends of upper
classes
Status Float– Trends start in lower/ middle classes &
spread upward
Social Class Determination
Income Versus Social Class—Income not strongly related
Occupation & Education—Strongest determinant of class standing
Other Indicators
– Inherited Status
– Earned Status
Social Class Indexes
– Computerized Status Index
– Status Crystallization
Social Class Dynamics
Upward Mobility—Education
Downward Mobility—Job loss
Marriage may impact mobility
– Status panic
Social Class Fragmentation
– Blurred class divisions
– Increased availability of mass media
– Advances in communication technology
Social Class & Consumption
Conspicuous consumption & status symbols—conspicuous wasteStatus symbols & judging others– Parody display– Fraudulent symbols
Compensatory consumptionMeaning of money– Both good & evil– Can you buy happiness?
Consumption Patterns by Social Classes
Upper Class– Aristocracy– New Social Elite (Novae Riches)– Upper Middle Class
Middle Class—White-collar workersWorking Class—Blue-collar workersHomeless– Struggle to Survive– Scavenging
This ad targets the upper-upper social class who are
likely to own private jets.
Courtesy Villas at Royal Lahaina
Marketing Implications
Product/service should reflect social class motives & values
Marketing messages should focus on groups’ distinctiveness
Media usage differs between classes
Different social classes shop at different stores
Social class may not be the best market segmentation variable: Why not?
Household Influences & CB
Types of Households– Family– Single Person Living Alone (the
most growing group)– Group of Individuals Living Together
Family– Nuclear– Extended
Household Types
The Family Life Cycle
Household Structure Trends
Delayed Marriage
Cohabitation
Dual Career Families
Divorce
Smaller Families
What accounts for these changes and in what ways are they relevant to business?
Roles
Gatekeeper
Influencer
Decider
Buyer
User– Roles can be expressive or instrumental
One of the trends in families is the increase of dual income families. This DuPont ad targets working mothers.
Courtesy DuPont
Buyers & Users
Household Role Conflict
Reasons for buying
Who should make decision
Which option to choose
Who uses product/service
Purchaser is not always the end user
Gender roles are blurring
Spouses & Decisions
Dominant– Husband– Wife
Decision– Autonomic– Syncratic
Bargaining Versus Concession
Children? Pester power
Questions?
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