CHAPTER 13

INCOME AND SOCIAL CLASS Multiple Choice 1. A Rolls-Royce, a Cartier diamond, or an Andy Worhol painting are bought and displayed as markers of social class. When this occurs, products become: a. social inhibitors. b. status symbols. c. social parameters. d. psychological blocks. Answer: 2. !" Di##icult$: E" Applic%tion P%&e: ''1

he a!erage American"s standard of li!ing continues to impro!e. hese income shifts are linked to t#o key factors: a. a shift from blue collar to #hite-collar employment and the increased use of personal computers. b. more immigrants to the $nited %tates and increasing technical skills. c. a shift in #omen"s roles and increases in educational attainment. d. a shift in population from the %no# &elt to the %un &elt and ad!ances in human rights. c" Di##icult$: H" (%ct P%&e: ''1

Answer: '.

oday there is a larger proportion of people of #orking age participating in the labor force. ((((((((((((((( are the fastest gro#ing segment of #orking people. a. Retirees returning to the #orkforce b. )others #ith pre-school children c. )others #hose youngest child is a teenager and li!es at home d. )others #ho no longer ha!e any children at home !" Di##icult$: H" (%ct P%&e: ''1

Answer: *.

here are no# 1+ million married couples making o!er ,-.,... a year. Which of the follo#ing groups is primarily responsible for propelling these families up the income ladder/ a. #orking teenagers b. #orking men c. #orking #omen d. those that in!est in the stock market c" Di##icult$: M" (%ct %n) Applic%tion P%&e: ''1

Answer:

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-. 0t has been said that education pays off. According to material presented in the te1t, college graduates earn about ((((((((((((( more during the course of their li!es than those that ha!e only gone through high school. a. 2-2 b. *.2 c. -.2 d. 332 Answer: c" Di##icult$: M" (%ct P%&e: ''1

3. Consumer demand for goods and ser!ices depends on both the ability to buy and a. a good 4ob. b. a good selection of goods and ser!ices. c. good information about the goods and ser!ices. d. the #illingness to buy. Answer: )" Di##icult$: E" (%ct P%&e: ''*

5. (((((((((((((( is the amount of money a!ailable to a household o!er and abo!e that re6uired for a comfortable standard of li!ing. a. 7ariable money b. 8ersonal sa!ings c. 9iscretionary income d. :i1ed income Answer: c" Di##icult$: E" (%ct P%&e: ''*

+. American consumers are estimated to #ield about ,*.. billion a year in discretionary spending po#er. :ifty percent ;-.2< of this amount is generated by people aged: a. 2--'-, #hose incomes are at a peak. b. '----, #hose incomes are at a peak. c. ---5-, #ho are planning retirement. d. 3-=, #ho are retired. Answer: !" Di##icult$: H" (%ct %n) Applic%tion P%&e: ''*

>. According to information presented in the te1t, there are se!en distinct money personalities. Which of the follo#ing money personalities holds the largest percentage of the total #ith 1>2/ a. he hunter. b. he protector. c. he stri!er. d. he gatherer. Answer: )" Di##icult$: H" (%ct %n) Applic%tion P%&e: ''3+ T%!le 13,1

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1.. According to information presented in the te1t, there are se!en distinct money personalities. Which of the follo#ing money personalities is matched to the characteristic of belie!ing that money makes the #orld go round and e6uates money #ith po#er/ a. he hunter. b. he protector. c. he stri!er. d. he gatherer. Answer: c" Di##icult$: H" (%ct %n) Applic%tion P%&e: ''3+ T%!le 13,1

11. :red ?ohnson has #orked hard all of his life to make a decent li!ing for himself and his family. @o#e!er, in recent years he has become obsessed #ith a fear of being ruined ;either because of losing his 4ob or losing all of his sa!ings<. According to clinical psychologists, :red ?ohnson"s condition could be e6uated to #hich of the follo#ing phobias/ a. Atephobia. b. @arpa1ophia. c. 8eniaphobia. d. Aurophobia. Answer: %" Di##icult$: H" (%ct %n) Applic%tion P%&e: ''*

12. )anuel AomeB started out his life in po!erty and he has al#ays been !ery afraid of becoming impo!erished again. o compensate for this fear, he is a fanatical sa!er, does not take any monetary risks, and does not trust banks or credit cards. Clinical psychologists #ould probably call )anuel"s fear of po!erty a phobia. Which of the follo#ing phobias #ould best describe )anuel"s condition/ a. Atephobia. b. @arpa1ophia. c. 8eniaphobia. d. Aurophobia. Answer: c" Di##icult$: H" (%ct %n) Applic%tion P%&e: ''*

1'. he field of (((((((((((((((((( is concerned #ith the Chuman sideD of economic decisions ;including the biases in decision making<. a. clinical psychology b. microeconomics c. beha!ioral economics d. macroeconomics Answer: c" Di##icult$: E" (%ct P%&e: ''*

1*. (((((((((((( reflects the e1tent to #hich people are optimistic or pessimistic about the future health of the economy and ho# they #ill fare do#n the road.

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a. b. c. d.

0ndi!idual demand Aggregate demand 0ndustrial supply Consumer confidence )" Di##icult$: E" (%ct P%&e: ''*

Answer:

1-. 9r. %am ?ones has a decision to make. @e must decide #hether to e1pand his clinic by -. percent or not. he mo!e #ill cost him ,-..,... and #ill tie him to debt for 2. years. 9r. ?ones belie!es the economy is going to get e!en better in the future and that his clients are going to need e!en more health care ser!ices as they age. Ai!en the facts abo!e, 9r. ?ones is making his decision based on #hich of the follo#ing !ariables/ a. he profit moti!e. b. Consumer confidence pro4ection. c. %upply and demand based on consulting reports. d. %tatistical analysis of a market. Answer: !" Di##icult$: M" Applic%tion P%&e: ''*-''3

13. 0f you #ere going to construct a 6uestionnaire to determine Cconsumer confidence,D you might be ad!ised to ask all of the follo#ing 6uestions EFCE8 : a. #ould you say that you and your family are better off or #orse off financially than a year ago/ b. #ill you be better off or #orse off a year from no#/ c. are you happy #ith your 4ob/ d. do you plan to buy a car in the ne1t year/ Answer: c" Di##icult$: M" (%ct %n) Applic%tion P%&e: ''3

15. All of the follo#ing affect the o!erall sa!ings rate of consumers EFCE8 : a. #hether an indi!idual has a credit card or not. b. indi!idual consumers" optimism or pessimism about personal circumstances. c. #orld e!ents. d. cultural differences in attitudes to#ard sa!ing. Answer: %" Di##icult$: M" (%ct P%&e: ''3-'''

1+. he place one occupies in the social structure is an important determinant not only of ho# much money is spent, but also: a. ho# the money #as earned. b. #ho shares in the #ealth. c. ho# it is spent. d. #ho it is spent #ith.

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Answer:

c" Di##icult$: M" (%ct P%&e: '''

1>. he term Cpecking orderD #as deri!ed from #hich of the follo#ing hierarchies/ a. A dominant-submissi!e hierarchy. b. A supply and demand hierarchy. c. A cohort analysis hierarchy. d. A social contract hierarchy. Answer: %" Di##icult$: M" (%ct P%&e: '''

2.. he Aerman sociologist )a1 Weber sho#ed that rankings people de!elop are not one dimensional. All of the follo#ing are #ays people are ranked, according to Weber, EFCE8 : a. prestige or social honor. b. a focus on po#er. c. re!ol!ing around #ealth or property. d. ethnicity and race. Answer: )" Di##icult$: M" (%ct %n) Applic%tion P%&e: '''

21. (((((((((((((( is a comple1 set of !ariables, including income, family background, and occupation. a. Reference groups b. %ociety c. Welfare d. %ocial class Answer: )" Di##icult$: E" (%ct P%&e: '''-''.

22. We tend to marry people in a similar social class to ours. %ociologists call this (((((((((( or assortati!e mating. a. homophilia b. monogamy c. homogamy d. cultural formatting Answer: c" Di##icult$: M" (%ct P%&e: ''.

2'. he phenomenon called ((((((((((((((( refers to the creation of artificial di!isions in a society. a. reference group affiliation b. bias c. the Csil!er spoonD syndrome d. social stratification

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Answer:

)" Di##icult$: M" (%ct P%&e: ''/

2*. he phrase Cthose processes in a social system by #hich scarce and !aluable resources are distributed une6ually to status positions that become more or less permanently ranked in terms of the share of !aluable resources each recei!esD is associated #ith #hich of the follo#ing concepts/ a. reference group affiliation b. bias c. the Csil!er spoonD syndrome d. social stratification Answer: )" Di##icult$: M" Applic%tion P%&e: ''/

2-. 0n school, it al#ays seemed as if Genneth got all the breaks. @e had access to all the right resources, such as special pri!ileges, fancy cars, large allo#ances, or dates #ith all the beautiful girls. E!en at #ork, he #as put on the fast track and got promoted early to a high-prestige 4ob. 0t seemed as if Genneth #as artificially ranked higher than others. he process that best describes #hat happened in the abo!e e1ample is called: a. reference group affiliation. b. bias. c. ascribed status or the Csil!er spoonD syndrome. d. achie!ed status. Answer: c" Di##icult$: M" Applic%tion P%&e: ''/

23. 0f a person #as to recei!e re#ards and status because of luck or good fortune, the status that he or she achie!ed #ould be called: a. ascribed status. b. achie!ed status. c. classification status. d. psychological status. Answer: %" Di##icult$: M" (%ct P%&e: ''/

25. 0f a person #orks hard to achie!e the resources that are necessary to climb a social ladder and to ele!ate his or her social status, that person can be said to ha!e achie!ed their re#ards due to: a. ascribed status. b. achie!ed status. c. classification status. d. psychological status. Answer: !" Di##icult$: M" (%ct %n) Applic%tion P%&e: ''/

2+. Richard #orked !ery hard on his grades and #orked after school part-time to be able

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to afford tutors to help him ad!ance his education. When he #as named H1 in his class, he #as gi!en a certain status. he best term to describe the form of status that #as gi!en to Richard #as: a. ascribed status. b. achie!ed status. c. classification status. d. psychological status. Answer: !" Di##icult$: E" Applic%tion P%&e: ''/

2>. )ost groups e1hibit a structure called a;n< (((((((((((((( in #hich some members are someho# better off than others. a. social array b. symbolic status c. status hierarchy d. symbolic reference Answer: c" Di##icult$: E" (%ct P%&e: ''/

'.. he most influential and earliest attempt to describe American class structure #as proposed by ((((((((((((((((( in 1>*1. a. )a1 Weber b. ?ohn )aynard Geynes c. W. Iloyd Warner d. homas @obbes Answer: c" Di##icult$: M" (%ct P%&e: ''0

'1. Which of the follo#ing #as one of the si1 social classes described by Warner"s %ocial Class %cale/ a. he stri!er. b. A blue blood. c. $pper $pper d. A mobile #orker. Answer: c" Di##icult$: M" (%ct P%&e: ''0

'2. According to the social class structure proposed in the te1t, the #orld of inherited #ealth or the Ccapital % societyD is found in #hich of the follo#ing social class categories/ a. Io#er $pper. b. $pper $pper. c. $pper )iddle. d. Io#er )iddle. Answer: !" Di##icult$: E" (%ct %n) Applic%tion P%&e: ''0+ (i&ure 13,1

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''. )a1"s family is part of #hat is called Cthe ne# rich.D hey are the ne#er social elite, dra#n from current professionals. @is father is a medical doctor and his mother is !ice president at a large urban bank. )a1"s family ;based on the description gi!en in the te1t< belongs to #hich of the follo#ing social class categories/ a. Io#er $pper. b. $pper $pper. c. $pper )iddle. d. Io#er )iddle. Answer: %" Di##icult$: M" Applic%tion P%&e: ''0+ (i&ure 13,1

'*. %tephanie"s parents are considered to be blue collarJ ho#e!er, her dad o#ns a construction company and performs mostly #hite-collar duties. @er mother runs an office cleaning company from their home. he couple earns about ,>.,... a year and are able to send %tephanie and her t#o sisters to the state uni!ersity close to their hometo#n. &ased on the abo!e description, #hich of the follo#ing contemporary !ie#s of the American class structure best describe %tephanie"s family/ a. $pper $pper b. Io#er $pper c. Io#er Io#er d. )iddle Class Answer: )" Di##icult$: H" Applic%tion P%&e: ''0+ (i&ure 13,1

'-. he C#elfare classD that is !isibly po!erty-stricken, usually out of #ork, and considered to be the disassociati!e class by other categories in society is called the ((((((((((((((((((((( class on the social class scale. a. $pper $pper b. Io#er $pper c. Real Io#er Io#er d. )iddle Class Answer: c" Di##icult$: E" (%ct %n) Applic%tion P%&e: ''0+ (i&ure 13,1

'3. Kf the countries listed belo#, #hich is thought to be highly status-conscious/ a. Canada. b. ?apan. c. &raBil. d. %pain. Answer: !" Di##icult$: M" (%ct P%&e: ''1

'5. According to an old saying, Cthe rich get richer and the poor get poorer.D his is in fact some#hat true and has led to #hich of the follo#ing marketing strategies in contemporary America/

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a. b. c. d.

A pyramid strategy. A ha!e and ha!e-not strategy. A t#o-tiered marketing strategy. A social polar strategy. c" Di##icult$: M" (%ct %n) Applic%tion P%&e: ''1+ M%r2etin& Opportunit$

Answer:

'+. ((((((((((((( refers to the passage of indi!iduals from one social class to another. a. %ocial class b. %ocial affinity c. %ocial mobility d. %ocial prestige Answer: c" Di##icult$: E" (%ct P%&e: ''1

'>. %andra ?ackson decided to become a nurse after se!eral years as an elementary teacher. %he still #anted to help people. %he 4ust #anted to do it differently. %andra"s case is an e1ample of #hich of the follo#ing/ a. 9o#n#ard mobility. b. $p#ard mobility. c. @oriBontal mobility. d. 9iagonal mobility. Answer: c" Di##icult$: H" Applic%tion P%&e: ''3

*.. Rufus &ro#n has been a farmer for years. @is family has been in the farming business for o!er 12. years. @o#e!er, because of poor crops and high bank loans, Rufus has had to accept #elfare payments some months 4ust to put food on his family"s table and pay his basic bills. Which of the follo#ing situations best describes Rufus &ro#n"s situation/ a. 9o#n#ard mobility. b. $p#ard mobility. c. @oriBontal mobility. d. 9iagonal mobility. Answer: %" Di##icult$: E" Applic%tion P%&e: ''3

*1. All of the follo#ing are important components of social class EFCE8 : a. occupational prestige. b. income. c. gender. d. educational attainment. Answer: c" Di##icult$: E" (%ct P%&e: ''3

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*2. @ierarchies of occupational prestige tend to be: a. unstable o!er time. b. not comparable from one society to another. c. 6uite stable o!er time. d. not really related to social class. Answer: c" Di##icult$: M" (%ct P%&e: '.4 *'. Which of the follo#ing !ariables related to social class distinction is identified by the te1t as being unclear and the sub4ect of debate #ith respect to its role as an indicator of social class/ a. Kccupation. b. Amount of income. c. Education. d. @o# income is spent. Answer: !" Di##icult$: H" (%ct P%&e: '.1

**. All of the follo#ing are problems #ith measuring social class EFCE8 : a. most measures of social class are dated and designed for the traditional family structure. b. the increasing anonymity of society. c. many measurements are sub4ecti!e. d. most of the measurements are too e1pensi!e. Answer: )" Di##icult$: H" (%ct P%&e: '.3-'.'

*-. 0f a social scientist #ere to inter!ie# members of a small community to determine #ho #as at the top of the social class ladder and #ho #as at the bottom, the social scientist #ould be using #hich of the follo#ing measurement designs/ a. he ob4ecti!e #ealth method. b. he reputational method. c. he analytical method. d. he beha!ioral method. Answer: !" Di##icult$: M" (%ct %n) Applic%tion P%&e: '.3

*3. Ra4 comes from the lo#est class in his nati!e 0ndia ;the CuntouchablesD<J ho#e!er, #ith a scholarship, mentor support, and years of hard #ork he has become an outstanding brain surgeon . Ra4 is an e1ample of a person that can cause difficulty in assessing social class. @e ranks lo# on some scales and high on others. ((((((((((((((( #as de!eloped to assess the impact of inconsistency on the self and social beha!ior. a. Reference duality b. Reputational fault c. %tatus crystalliBation

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d. %tatus error Answer: c" Di##icult$: H" Applic%tion P%&e: '.'

*5. All of the follo#ing are reasons that marketers ha!e failed to use social class information as effecti!ely as they could EFCE8 : a. they ha!e ignored status inconsistency. b. they ha!e ignored intergenerational mobility. c. they ha!e ignored the social status of males in a t#o-income family. d. they ha!e ignored consumers" aspirations to change their class standing. Answer: c" Di##icult$: H" (%ct %n) Applic%tion P%&e: '..

*+. When people are differentiated in terms of their aesthetic and intellectual preferences, a ((((((((((((( concept is being applied. a. taste culture b. cultural code designation c. social cluster d. reference code Answer: %" Di##icult$: M" (%ct P%&e: './

*>. %ocial class distinctions can be based on the #ays meanings are e1pressed and interpreted by consumers. hese codes can be !ery !aluable for research study. Which of the follo#ing codes is dominant among the #orking classes/ a. Elaborated codes. b. %ophisticate codes. c. )acho codes. d. Restricted codes. Answer: )" Di##icult$: M" (%ct %n) Applic%tion P%&e: '.0

-.. 0f the upper rich buy Cshredded Ie!i"s 4eansD to #ear to formal parties, they are e1hibiting a sophisticated form of conspicuous consumption kno#n as: a. in!idious distinction. b. pyramid climbing. c. parody display. d. do#nsiBing. Answer: True5(%lse -1. )any Americans say they don"t make enough money, therefore, in reality, the a!erage American"s standard of li!ing has not impro!ed in se!eral years. c" Di##icult$: M" Applic%tion P%&e: '/.

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Answer:

(%lse" Di##icult$: E" (%ct P%&e: ''1

-2. #o key reasons account for the a!erage American"s standard of li!ing increasing in recent years. hose reasons are a shift in #omen"s roles and increases in educational attainment. Answer: True" Di##icult$: E" (%ct P%&e: ''1

-'. he greatest reason that income le!els ha!e gone up for the a!erage American family is that the female ;#ife< in the family has gone into the #orkforce and, therefore, increased the income-earning potential of the family. Answer: True" Di##icult$: E" (%ct %n) Applic%tion P%&e: ''1

-*. 0t is estimated that a college education is not #orth #hat it used to be. he fact is that the a!erage college graduate only earns about 2. percent more than the high school graduate because of the increasing technical skills of the high school graduate. Answer: (%lse" Di##icult$: M" (%ct P%&e: ''1

--. 9iscretionary income is the money a!ailable to a household o!er and abo!e that re6uired for a comfortable standard of li!ing. Answer: True" Di##icult$: E" (%ct P%&e: ''*

-3. According to the Cmoney personalitiesD scheme proposed in the te1t by Robert %ulli!an, someone #ho takes risks to get ahead is most likely to be in Cthe hunterD category. Answer: True" Di##icult$: M" Applic%tion P%&e: ''3+ T%!le 13,1

-5. o designate an indi!idual"s social class, !ariables such as income, family background, and occupation should be e1amined. Answer: True" Di##icult$: E" (%ct P%&e: '''

-+. %ocial stratification refers to the creation of artificial di!isions in a society. Answer: True" Di##icult$: E" (%ct P%&e: ''/

->. here #ere eight social class di!isions in W. Iloyd Warner"s original social class scale. Answer: (%lse" Di##icult$: E" (%ct P%&e: ''0

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3.. he $pper $pper class is characteriBed as being the Ccapital % societyD #orld of inherited #ealth. Answer: True" Di##icult$: E" (%ct P%&e: ''0+ (i&ure 13,1

31. he a!erage blue-collar family that is leading the C#orking classD lifestyle is found in the $pper )iddle class category of the contemporary !ie# of American class structure. Answer: (%lse" Di##icult$: M" Applic%tion P%&e: ''0+ (i&ure 13,1

32. %ocial mobility identifies the ability to mo!e from one social class to another. Answer: True" Di##icult$: E" (%ct P%&e: ''1-''3

3'. Ale1 :ord is a laid-off auto#orker. @e has mo!ed from a ,3.,...-a-year 4ob to #elfare. Ale1 is an e1ample of someone #ho has e1perienced do#n#ard mobility. Answer: True" Di##icult$: M" (%ct %n) Applic%tion P%&e: ''3

3*. %ocial class appears to be a poor predictor of purchases that ha!e symbolic aspects and lo# to moderate prices ;such as li6uor and cosmetics<. Answer: (%lse" Di##icult$: M" (%ct P%&e: '.1

3-. he best method to use in assessing social class ;according to information presented in the te1t< is the reputational method. Answer: (%lse" Di##icult$: M" (%ct P%&e: '.3-'.'

33. 0f a person ranks high on some social class !ariables ;such as income< but lo# on others ;such as occupation title<, the concept of status crystalliBation may be at #ork. Answer: True" Di##icult$: M" (%ct P%&e: '.'

35. )arketers ha!e failed to use social class information as effecti!ely as they could because they ha!e ignored status inconsistency. Answer: True" Di##icult$: M" (%ct P%&e: '..

3+. With respect to codes that are used to separate social classes, middle and upper classes tend to use restricted codes. Answer: (%lse" Di##icult$: M" (%ct P%&e: '.0

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3>. &eing able to distinguish bet#een fine #ines and those of lesser 6uality, kno#ing ho# to act at a formal debutante ball, understanding Iatin, and kno#ing the social elite in one"s city might all be e1amples of &ourdieu"s concept of cultural capital. Answer: True" Di##icult$: M" Applic%tion P%&e: '.0

5.. )any nou!eau1 riches ;ne# rich< are plagued by #hat is called status an1iety because they #ant to al#ays Cdo the right thing.D Answer: True" Di##icult$: M" (%ct %n) Applic%tion P%&e: '/1

51. Eddie 4ust bought a ne# 8ro#ler. @e can hardly #ait to ha!e the guys at the office drool #hen they see him dri!e up in this e1tremely e1pensi!e Cpurple hot rod.D Eddie"s reason for purchase falls into the category described by horstein 7eblen as in!idious distinction. Answer: True" Di##icult$: M" Applic%tion P%&e: '/*-'/3

52. he phenomenon called conspicuous consumption is probably most e!ident in the poorer classes #here buying things seems to be a #ay to rid a person of misery. Answer: (%lse" Di##icult$: M" (%ct %n) Applic%tion P%&e: '/'

5'. Rachel doesn"t #ork, has a rich and successful husband, and lo!es to #ear highheeled shoes, tight clothes, and flamboyant hairstyles. According to the #ritings of 7eblen, Rachel is #hat is called a Cbillboard #ife.D Answer: True" Di##icult$: M" Applic%tion P%&e: '/'-'/.

5*. he %ultan of a small )iddle-Eastern country recently held a la!ish party for ruling dignitaries celebrating the 1.-year anni!ersary of his reign. At this ceremonial party he ga!e outlandish presents, sho#ed off his #ealth, and demonstrated that he cared little #hat the poorer people of his country thought of him. he %ultan"s ceremonial party is an e1ample of a potlatch. Answer: True" Di##icult$: M" Applic%tion P%&e: '/.

5-. )any t#enty-somethings ha!e rebelled against their more affluent parents by mocking #ealth #ith such clothing as shredded 4eans, bo1y cars like ?eeps, and understated makeup. hese are e1amples of #hat is called a modern potlatch. Answer: (%lse" Di##icult$: M" Applic%tion P%&e: '/.

Ess%$ 6uestions

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53. he a!erage American"s standard of li!ing continues to impro!e. his shift in income has been linked to t#o key factors. What are these factors/ 8ro!ide e1planatory comments on each factor. Answer: he t#o key factors appear to be the shift in #omen"s roles and increases in educational attainment. ;a< he shift in #omen"s roles--there are more people in the #orkforce than e!er before and 3.= percent of the increase is directly attributable to #omen entering the #orkforce. he 4obs #omen are taking are also 6uality 4obs that carry high salaries. his increase is a primary reason for the rapid gro#th of middle- and upper-income families. ;b< 0ncreases in educational attainment--college graduates earn about -. percent more than those #ho ha!e only gone to high school. Di##icult$: E" (%ct P%&e: ''1 55. Robert %ulli!an identified se!en Cmoney personalitiesD in the te1t. Iist and briefly profile each of these Cmoney personalities.D Answer: he money personalities identified in the chapter are as follo#s: ;a< The Hunter--takes risks to get ahead. ;b< The Gatherer--is better safe than sorry. ;c< The Protector--puts others first. ;d< The Splurger--tra!els first class or not at all. ;e< The Striver--is controlled by money. ;f< The Nester--needs 4ust enough to take care of self. ;g< The Idealist--belie!es there"s more to life than money. Note to Instructor: This question can be expanded and developed in other ways. Table !. has a wealth o" in"or#ation that can be used in creative ways. It is reco##ended that students be required to read this table i" accurate testing is to be obtained. Di##icult$: H" Applic%tion P%&e: ''3+ T%!le 13,1 5+. 9escribe the concepts of social strati"ication and achieved and ascribed status. Answer: Social strati"ication refers to the creation of artificial di!isions in society. C.....those processes in a social system by #hich scarce and !aluable resources are distributed e6ually to status positions that become more or less permanently ranked in terms of the share of !aluable resources each recei!es.

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$chieved status--resources go to those people #ho ha!e earned them through hard #ork or diligent study. $scribed status--re#ards go to those people that #ere lucky enough to be born rich or beautiful. %uch good fortune reflects ascribed status. Di##icult$: M" (%ct P%&e: ''/-''0 5>. A contemporary !ie# of the American social class structure is presented in the te1t. ake each of the ma4or categories and list them. Le1t, supply a brief comment that characteriBes each of these ma4or categories. Answer: %pper $#ericans include: $pper-$pper ;..'2< he Ccapital % society,D #orld of inherited #ealth. Io#er-$pper ;1.22< he ne#er social elite, dra#n from current professionals. $pper-)iddle ;12.-2< he rest of college graduate managers and professionals, lifestyle centers on pri!ate clubs, causes, and the arts. &iddle $#ericans include: )iddle Class ;'22< A!erage pay C#hite-collarD #orkers and their Cblue-collarD friendsJ li!e on the Cbetter side of to#nDJ try to do the proper things. Working Class ;'+2< A!erage pay Cblue-collarD #orkersJ lead C#orking class lifestyleD #hate!er the income, school, background, and 4ob are. 'ower $#ericans include: CA lo#er group of people, but not the lo#estD ;>2< Working, not on #elfareJ li!ing standard is 4ust abo!e po!ertyJ beha!ior 4udged Ccrude,D Ctrashy.D CReal Io#er-Io#erD ;52< Kn #elfare, !isibly po!erty-strickenJ usually out of #ork ;or ha!e the dirtiest 4obs<J Cbums,D Ccommon criminals.D Di##icult$: H" (%ct %n) Applic%tion P%&e: ''0+ (i&ure 13,1 +.. E1plain the concept of social mobility and its !arious forms. Answer: Social #obility refers to the passage of indi!iduals from one social class to another. here are three formsMup#ard ;mo!ing up in social class<, do#n#ard ;mo!ing to a lo#er social class<, and horiBontal ;mo!ing from one position to another Nsuch as 4obsO in the same social class strata<. Di##icult$: E" (%ct %n) Applic%tion P%&e: ''1-''3

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+1. What are the general components of social class/ E1plain and comment on each component ;such as #hich is most important<. Answer: 0n brief, they are occupation and inco#e. A third factor, #hich is highly correlated #ith them, is educational attain#ent. Kccupational prestige - his is one #ay to e!aluate the P#orthP of people. @ierarchies of occupational prestige tend to be 6uite stable o!er time, and they tend to be similar in societies as di!erse as &raBil, Ahana, urkey, and ?apan. 0f one had to choose only one indicator of social class, it #ould be occupation, since it is strongly linked to other !ariables such as use of leisure time, allocation of family resources, political orientation, and so on. 0ncome - 0ncome itself is often not a !ery good indicator of social class, but the #ay it is spent is far more re!ealing. Wealth is by no means e!enly distributed across the classes. he top fifth of the population controls about 5- percent of all assets. Di##icult$: M" (%ct P%&e: ''3-'.1 +2. 0n #hat #ays ha!e marketers apparently failed to use social class information as effecti!ely as they could/ Answer: raditionally, marketers ha!e failed to use social class information effecti!ely in these #ays: hey ha!e ignored status inconsistency. hey ha!e ignored intergenerational mobility. hey ha!e ignored sub4ecti!e social class ;i.e., the class a consumer identifies #ith rather than the one to #hich sQhe ob4ecti!ely belongs<. hey ha!e ignored consumersR aspirations to change their class standing. hey ha!e ignored the social status of #orking #i!es.

Di##icult$: H" (%ct P%&e: '.. +'. 9escribe ho# codes are used in social class study. Answer:

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Kne approach to studying social classes is to e1amine codes ;the #ays meanings are e1pressed and interpreted by consumers<. hese codes are used differently by different social strata. :or e1ample, restricted codes ;a focus on content of ob4ects, not on relationships among ob4ects< is dominant in #orking classes. Elaborated codes ;a more comple1 approach and a #orld!ie#< is dominant among middle and upper classes. %ee able 12.2 for more data on these t#o code forms. Di##icult$: M" (%ct P%&e: '.0-'.1+ T%!le 13,* +*. @o# does the relationship bet#een #ealth and social class affect the #ay marketers segment affluent markets/ Are there some consumption situations in #hich income alone is a good indicator of consumer beha!ior/ Answer: 0n targeting the rich, it is a mistake to assume that e!eryone #ith a high income should be placed into the same market segment. %ocial class in!ol!es more than absolute incomeJ it is also a #ay of life, and affluent consumersR interests and spending priorities are significantly affected by such factors as #here they got their money, ho# they got it, and ho# long they ha!e had it. Common affluence distinctions are: - PKld moneyP is the category of the ultra rich #ho ha!e Pal#aysP been that #ay, i.e., their money is from inherited #ealth. %egment distinctions based upon Pho# longP !ersus Pho# muchP are more salient for this class. - PLou!eau1 richesP are those #ho ha!e recently ac6uired #ealth, usually through their o#n labor or industry but could include lottery #inners as #ell. 0n many cases, their consumption patterns are still linked to lo#er-class origins. %ome in this class suffer status an1iety in #hich flamboyant consumption may ser!e as a symbolic attempt to assert their ne# class status. his group may also de!elop Cstatus an1iety.D Wealth alone may be a good predictor of purchases of the highest ticket items in the ultra-rich lifestyle of the rich and shameless. %uch products as super-lu1ury yachts and pri!ate islands can be afforded only by those #ho really ha!e endless #ealth. Kn the other hand, many #ealthy people still hold to more or less middle-class !alues. Lot all first- or second-generation rich are conspicuous consumers like the stereotypical nou!eau1 riches. 8roducts selected by these consumers #ill be partially determined by social influences of others like themsel!es. Di##icult$: H" (%ct %n) Applic%tion P%&e: '.3-'/1 +-. E1plain #hat conspicuous consu#ption is and then detail the !arious illustrati!e !ersions of the concept as e1plained in the te1t.

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Answer: (onspicuous consu#ption ;a phrase coined by 7eblen< refers to people"s desire to pro!ide prominent !isible e!idence of their ability to afford lu1ury goods. Related to this #as the in!idious distinction role played by lu1ury products. :orms might include: ;a< he billboard #ife--a spouse that symboliBes #ealth and beauty. ;b< he modern potlatch--a host that sho#s #ealth by gi!ing e1tra!agant parties and gifts to guests. ;c< he leisure class--people for #hom producti!e #ork is taboo. he Cidle richD are a good e1ample of this class. Kften associated #ith ;a< abo!e. ;d< 8arody display--do the re!erse of sho#ing off #ealth. A rich person that do#ndresses ;shredded and torn 4eans< to sho# anti-fashion because they can because they are rich. Di##icult$: M" (%ct %n) Applic%tion P%&e: '/*-'//

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