1. Copyright Atomic Dog Publishing, 2002 Chapter 14 Social Class and Reference Group Influences

2. Copyright Atomic Dog Publishing, 2002 Chapter Spotlights Social class Social class in the United States Values, attitudes, and lifestyles across social classes Social class and marketplace behavior Reference group types and influences Social power

3. Copyright Atomic Dog Publishing, 2002 Social Class “Birds of a feather flock together” Social class – a status hierarchy by which groups and individuals are classified on the basis of esteem (regard, respect) and prestige (reputation, influence derived from achievements). – American Marketing Association The different lifestyles of social classes lead to different benefits being sought

4. Copyright Atomic Dog Publishing, 2002 Social Class Membership Members of the same social class tend to share common values, beliefs, and behaviors that unite them (as opposed to simple demographics). Common factors used to place people into different social classes: occupation, source of income, possessions, associations with others, and level of influence.

5. Copyright Atomic Dog Publishing, 2002 Occupation What a person does for a living. It is an indicator of other signs of class membership: income, personal associations, and status. Further, class assumptions within an occupation may be based on performance level.

6. Copyright Atomic Dog Publishing, 2002 Income Source Level of income is not by itself a good indicator of class. Income source along with occupation may help us determine whether two individuals that have the same income belong in the same class: investments, inheritance, old wealth, etc. Does a professional athlete making $20 million belong in the same social class with a physician making $150,000?

7. Copyright Atomic Dog Publishing, 2002 Associations Consumption patterns and interaction networks are inherently linked. People tend to associate with others that share the same tastes and recreational activities. Class consciousness – sense of belonging to a certain class is reinforced by our associations. The higher our class the more class conscious we are. A mechanic wins a $50 million in the lottery…will his/her social class change?

8. Copyright Atomic Dog Publishing, 2002 Level of Influence Membership in a higher class generally leads to greater influence within the workplace, organizations, and society as a whole. The more responsibility one has the greater the influence s/he can exert on others.

9. Copyright Atomic Dog Publishing, 2002 Assigning Individuals to Social Classes The five indicators may be used singly or in combination to establish an individual’s class status. Methods normally used to classify people into social classes include (all are subjective): The reputational approach The subjective approach Objective approaches: Single-item measures Multiple-item measures

10. Copyright Atomic Dog Publishing, 2002 Social Class in the United States A five-class hierarchy Upper class (Upper – “Landed gentry”, Lower “New money”) Attend elite schools, old/new money, in/not in the “register” Upper-middle class (Professional class, Cultural protectors) Professionals, independent businesspeople, corporate executives Lower-middle class (Moral compass of society, “Typical American”) Salespeople, clerical workers, supervisors, construction contractors, small retail store owners, “white collar” Upper-lower class (“Monotonous” existence) Skilled and semi-skilled blue-collar workers, narrow existence Lower-lower class Lower blue-collar workers, the unemployed, families on welfare, and unskilled workers

11. Copyright Atomic Dog Publishing, 2002 Values, Attitudes, and Lifestyles across Social Classes Social class is an important source of beliefs, values, and behaviors Different social classes value education differently. Attitudes toward family life, raising children, the role of women, etc. vary from class to class. People in various social classes exhibit markedly different lifestyles.

12. Copyright Atomic Dog Publishing, 2002 Influence on media use Lower-class people are less likely to subscribe to newspapers than are members of the middle class. Choice of magazine is likely tied to education and reading ability Lower-middle class – Reader’s Digest, Ladies Home Journal Upper-middle class – Time, SI, The New Yorker, etc. Broadcast media choice also varies by social class Lower-middle class – more responsive to audiovisual forms of communication

13. Copyright Atomic Dog Publishing, 2002 Influence on Advertising Acceptance - Observations Lower-status consumers are more receptive to advertising that depicts activity, ongoing work and life, expressions of energy, etc. Upper-middle class consumers are more critical of advertising, suspicious of emotional appeals and skeptical of claims

14. Copyright Atomic Dog Publishing, 2002 Influence on Shopping and Choice Behavior Lower-class women are the most “impulsive” about shopping. Outlet choice varies by social class (class match very important) Upper-lower class women are likely to respond to promotions offering coupons or other special inducements Bowling, TV, and bingo are favorite lower-class leisure pursuits Most activities enjoyed by middle- and upper-class people are less time consuming than lower-class choices.

15. Copyright Atomic Dog Publishing, 2002 Reference Group Influences A reference group is the group whose perspective an individual takes on in forming values, beliefs, attitudes, opinions, and overt behaviors. They set levels of aspiration They help define the actual items/services considered acceptable for displaying those aspirations.

16. Copyright Atomic Dog Publishing, 2002 Social Norms and Conformity Social norm – any rule or behavior for meeting societal expectations  normative system Conformity pressures – actions taken to encourage or force members to act, think and/or express themselves in certain ways. The more important a group is in our lives, the greater our desire to accept and conform to its norms

17. Copyright Atomic Dog Publishing, 2002 Homan’s Equation The difference between the “price” we pay for conformity and the rewards obtained for doing so determines for each of us whether we will conform to group expectations and to what extent. Price: Loss of freedoms Time commitment Financial commitment Etc. Rewards: Levels of acceptance Advancement within the group Prestige gained Etc.

18. Copyright Atomic Dog Publishing, 2002 Reference Group Types Primary reference group: one with which the individual has frequent face-to-face contact and in which members are close-knit. Examples: families, households, study groups, work teams, roommates, etc. Secondary reference group: one in which interaction with other members is less frequent Formal group: one in which there is some sort of structure and/or for which there are specific membership requirements. Informal group: one that has no special membership or attendance requirements, other than common interests.

19. Copyright Atomic Dog Publishing, 2002 Reference Group Types (continued) Membership group: one to which a person currently belongs. Aspirational group: a group that a person would like to be part of, but to which he or she does not currently/ may never belong Dissociative group: a group that an individual avoids or denies connection with.

20. Copyright Atomic Dog Publishing, 2002 Reference Group Influences Reference groups as part of the socialization process setters of roles information sources normative influences an expression of self-value

21. Copyright Atomic Dog Publishing, 2002 Conformity Pressure and Marketplace behavior The influence of reference groups varies Groups tend to be more influential on product decisions than they are on either brand or outlet choices Conspicuousness “based on exclusivity” -- product decisions (bikers and black leather jackets) Conspicuousness “associated with the individual” - - brand decisions possible within product class, “allowed personal expression” Visibility of consumption (Exh. 14-10) Level of product necessity (Exh. 14-10)

22. Copyright Atomic Dog Publishing, 2002 Social Power Power of reward – praise, approval, acceptance, status, recognition, etc. Coercive power – unacceptable behavior strongly discouraged Expert power – informational attraction Referent power – closer the match between person and group, more willingness to conform