Household & Social Class Influences Chapter 13 Household & Social Class Influences

Learning Objectives~ Ch. 13 To understand: Social class hierarchy & its determinants Social class & consumer behavior Three key forces changing social class structure in many countries 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 waste Status symbols & judging others Parody display Fraudulent symbols Compensatory consumption Meaning 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 workers Working Class— Blue-collar workers Homeless 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 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 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?