1. Copyright © 2006 Pearson Education Canada Inc. Chapter 11 Social Class and Consumer Behaviour Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

2. Copyright © 2006 Pearson Education Canada Inc. 11-2 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.

3. Copyright © 2006 Pearson Education Canada Inc. 11-3 Characteristics of Social Class Is hierarchical Is a natural form of segmentation Provides a frame of reference for consumer behaviour Reflects a person’s relative social status In Canada, individuals can up or down the social class hierarchy

4. Copyright © 2006 Pearson Education Canada Inc. 11-4 Social Class and Social Status Status is frequently thought of as the relative rankings of members of each social class –wealth –power –prestige

5. Copyright © 2006 Pearson Education Canada Inc. 11-5 Social Comparison Theory states that individuals compare their own possessions against those of others to determine their relative social standing.

6. Copyright © 2006 Pearson Education Canada Inc. 11-6 Status Consumption The process by which consumers actively increase their social standing through conspicuous consumption or possessions

7. Copyright © 2006 Pearson Education Canada Inc. 11-7 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

8. Copyright © 2006 Pearson Education Canada Inc. 11-8 Objective Measures Single-variable indexes –Occupation –Education –Income –Other Variables Composite- variable indexes –Index of Status Characteristics –Socioeconomic Status Score

9. Copyright © 2006 Pearson Education Canada Inc. 11-9

10. Copyright © 2006 Pearson Education Canada Inc. 11-10 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.

11. Copyright © 2006 Pearson Education Canada Inc. 11-11 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.

12. Copyright © 2006 Pearson Education Canada Inc. 11-12 What is Middle Class? The “middle” 50% of household incomes 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)

13. Copyright © 2006 Pearson Education Canada Inc. 11-13 What is Working Class? Households with lower earnings; control more than 30% of the total income in the U.S. These consumers tend to be more brand loyal than wealthier consumers

14. Copyright © 2006 Pearson Education Canada Inc. 11-14 (continued)

15. Copyright © 2006 Pearson Education Canada Inc. 11-15 Figure 11-14 (continued) (continued)

16. Copyright © 2006 Pearson Education Canada Inc. 11-16 Figure 11-14 (continued) (continued)

17. Copyright © 2006 Pearson Education Canada Inc. 11-17 Figure 11-14 (continued) (continued)

18. Copyright © 2006 Pearson Education Canada Inc. 11-18 Figure 11-14 (continued)

19. Copyright © 2006 Pearson Education Canada Inc. 11-19 Social Class and Marketing Strategy Clothing, Fashion, and Shopping –Where one shops –External point of identification The Pursuit of Leisure –Type of leisure activities differ »continued

20. Copyright © 2006 Pearson Education Canada Inc. 11-20 Social Class and Marketing Strategy Saving, Spending, and Credit –Level of immediate gratification sought varies Responses to marketing communication –Upper classes have a broader and more general view of the world –Regional variations in language rise as we move down the social ladder –Exposure to media varies by social class »continued

21. Copyright © 2006 Pearson Education Canada Inc. 11-21 Limitations of Social Class Social class is more difficult to measure than income Many purchase behaviours are related more to income than social class Consumers often use expected social class for their consumption patterns Dual incomes have changed consumption patterns Individual dimensions of social class are sometimes better predictors of consumer behaviour