1. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–1 Chapter 15Social Class Concept of social class How social classes are measured Measurement problems marketing managers face Impact of social class on the consumption process Use of social class in developing marketing strategies

2. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–2 Social Class Social class and consumption Social class – cultural differences – components of social class – measurements of social class Social class and consumption differences – global similarities – segmenting the affluent Status symbols

3. 15–3 Social Standing and Behaviour

4. 15–4 Not all Behaviours are Unique

5. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–5 Behaviour and Social Class Unique behaviours – Product: fine china – Situation: entertainment  e.g. Opera subscription Not all behaviours are unique: Shared behaviours – Situation: entertainment  e.g. Football match

6. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–6 Status Crystallisation Degree of consistency on status dimensions – occupation – education – income – ownership Status crystallisation is low in Australia

7. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–7 Social Class in Australia* Upper class – 10% of population Middle class – 60% Lower class – 30% *Source: ABS

8. 15–8 The Functional Approach to Social-Class Structure

9. 15–9 The Reputational Approach to Social-Class Structure

10. 15–10 Positioning Within Social Class

11. 15–11 Upward-Pull Strategy Targeted at the Middle Class

12. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–12 Measurement of Social Class and its Application to Marketing Strategy Single-item indexes – e.g. education Multiple-item indexes – e.g. Hollingshead Index of Social Position

13. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–13 Measurement of Social Class and its Application to Marketing Strategy (cont.) Uses: – Differences in product consumption  instant coffee  snack foods  imported wine

14. 15–14 Consumption Differences Across the Hollingshead Index of Social Position Strata

15. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–15 Social Class and Marketing Strategy Relate status variables to product consumption – Usage, motivation, symbolic meaning Target social status – Actual lifestyle, desired lifestyle, media, etc. Develop product position – Select desired position (based on actual/desired lifestyle) Marketing mix decisions – Develop mix

16. 15–16 Using Social Stratification to Develop Marketing Strategy

17. 15–17 Use of Income and Purchase Motivation for Target Market Appeal

18. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–18 Next Lecture… Chapter 16: Culture and Cross-Cultural Variations in Consumer Behaviour