Social class in consumer behaviour

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

Social Class and Social Status

Status is frequently thought of as the relative rankings of members of each social class

·        Wealth

·        Power

·        Prestige

Social Comparison Theory states that individuals compare their own possessions against those of others to determine their relative social standing.

Status Consumption the process by which consumers actively increases their social standing through conspicuous consumption or possessions

Convenient Approaches to Social Class:

Social status is usually defined in terms of one or more of the following socioeconomic variables:

– Family Income

– Occupational Status

– Educational Attainment

SOCIAL CLASSES	PERCENTAGE
Upper	4.3
Upper-middle	13.8
Middle	32.8
Working	32.3
Lower	16.8
Total percentage	100.0

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

Social-Class Profiles

THE UPPER-UPPER CLASS--COUNTRY CLUB

·         Small number of well-established families

·         Belong to best country clubs and sponsor major charity events

·         Serve as trustees for local colleges and hospitals

·         Prominent physicians and lawyers

·         May be heads of major financial institutions, owners of major long-established firms

·         Accustomed to wealth, so do not spend money conspicuously

THE LOWER-UPPER CLASS--NEW WEALTH

·         Not quite accepted by the upper crust of society

·         Represent “new money”

·         Successful business executive •Conspicuous users of their new wealth

THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS

·         Have neither family status nor unusual wealth •Career oriented

·         Young, successful professionals, corporate managers, and business owners

·         Most are college graduates, many with advanced degrees

·         Active in professional, community, and social activities

·         Have a keen interest in obtaining the “better things in life”

·         Their homes serve as symbols of their achievements

·         Consumption is often conspicuous

·         Very child oriented

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS

·         Primary non-managerial white-collar workers and highly paid blue-collar workers

·         Want to achieve “respectability” and be accepted as good citizens

·         Want their children to be well behaved

·         Tend to be churchgoers and are often involved in church-sponsored activities

·         Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing

·         Constitute a major market for do-it-yourself products

THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY

·         The largest social-class segment

·         Solidly blue-collar

·         Strive for security

·         View work as a means to “buy” enjoyment

·         Want children to behave properly

·         High wage earners in this group may spend impulsively

·         Interested in items that enhance leisure time (e.g., TV sets)

·         Husbands typically have a strong “macho” self-image •Males are sports fans, heavy smokers, beer drinkers

THE LOWER-LOWER CLASS--ROCK BOTTOM

·         Poorly educated, unskilled laborers

·         Often out of work

·         Children are often poorly treated •Tend to live a day-to-day existence