1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-1 Chapter 15: Social class Concept of social class How social classes are measured Measurement problems marketing managers face The effect of social position on the consumption process How marketing managers can use their knowledge of social stratification to develop marketing strategies

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 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. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-3 Social standing and behaviour

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-4 Concept of social class Traditional viewpoint assumes that social classes must meet the following criteria: Bounded Ordered Mutually exclusive Exhaustive Influential

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-5 Ads using affluent-looking models to attract higher-class consumers

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-6 Not all behaviours are unique

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-7 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

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-8 Status crystallisation Degree of consistency on status dimensions – Occupation – Education – Income – Ownership Status crystallisation is low in Australasia

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-9 Social class in Australia* Upper class – 10% of population Middle class – 60% Lower class – 30% *Source: ABS

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-10 The functional approach to social-class structure

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-11 The reputational approach to social-class structure

12. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-12 Positioning within social class

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-13 Upward-pull strategy targeted at the middle class

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-14 Ad aimed at repositioning the meat pie to a different social class

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-15 Measurement of social class Single-item indexes – E.g. education – E.g. occupation Multiple-item indexes – E.g. Hollingshead Index of Social Position

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-16 Occupations of the employed Australia

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-17 Occupations of the employed New Zealand

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-18 Measurement of social class and its application to marketing strategy Uses: – Differences in product consumption  instant coffee  snack foods  imported wine

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-19 Income Income has been used as a measure of status Poses a number of measurement problems – Individual or family income? – Income before or after taxes and allowances? – Salary or total income?

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-20 Multiple-item indexes e.g. Hollingshead's Index Two-item index using occupation and education Designed or measure overall a family’s overall position in society Exceptions could arise from someone with: – Only secondary schooling and running a successful small- medium business – Doctor or lawyer working with charities

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-21 Consumption differences across the Hollingshead Index of social position strata

22. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-22 Which scale to use? No one scale is suitable for measuring all status dimensions  Hollingshead’s multi-item index could be used for measuring personal status in a study of opinion leadership  Studies of intellectually oriented activities, e.g. magazine subscription & TV viewing could consider using education  Occupation could be used for studies on leisure-time pursuits

23. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-23 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

24. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-24 Using social stratification to develop marketing strategy

25. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-25 Individual’s income may be more restricting than purchase motivation for target market appeal

26. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 15-26 Next Lecture Chapter 16: Culture and Cross-Cultural Variations in Consumer Behaviour