1. Household & Social Class Influences
Chapter 13
Household &
Social Class Influences

2. 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

3. Social Class & Household Influence

4. Social Class Hierarchy
Social Class Systems
High
Middle
Lower
Social Class— Economic Substrata
Over privileged
Class Average
Underprivileged

5. Class Structure by Culture

6. 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”

7. Social Classes of Thailand
Aristocracy
Elite
Upper-Middle Class
Lower-Middle Class
Lower Class

8. German Social Classes

9. Social Class Influence
Trickle-Down
Lower classes copy trends of upper classes
Status Float
Trends start in lower/ middle classes & spread upward

10. 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

11. 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

12. 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?

13. 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

14. This ad targets the upper-upper social class who are likely to own private jets.
Courtesy Villas at Royal Lahaina

15. 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?

16. Household Influences & CB
Types of Households
Family
Single Person Living Alone (the most growing group)
Group of Individuals Living Together
Nuclear
Extended

17. Household Types

18. The Family Life Cycle

19. 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?

20. Roles Gatekeeper Influencer Decider Buyer User
Roles can be expressive or instrumental

21. 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

22. Buyers & Users

23. 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

24. Spouses & Decisions Dominant Husband Wife Decision Autonomic Syncratic
Bargaining Versus Concession
Children? Pester power

25. Questions?