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Consumer Identity II:

Chapter Objectives

1. Our confidence in our future, as well as in


the overall economy, determines how
freely we spend and the types of products
we buy.

Social Class & Lifestyles

2. We group consumers into social classes


that say a lot about where they stand in
society.

CONSUMER
BEHAVIOR, 11e
Michael R. Solomon

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Chapter Objectives (Cont.)

Chapter Objectives (Cont.)

3. Individuals desire to make a statement

5. Identifying patterns of consumption can

about their social class, or the class to


which they hope to belong, influences the
products they like and dislike.
4. A lifestyle defines a pattern of
consumption that reflects a persons
choices of how to spend his or her time
and money, and these choices are
essential to define consumer identity.

be more useful than knowing about


individual purchases when organizations
craft a lifestyle marketing strategy.
6. Psychographics go beyond simple
demographics to help marketers
understand and reach different consumer
segments.

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Learning Objective 1

To Spend or Not To Spend

Our confidence in our future, as well as in

Discretionary income is the money

the overall economy, determines how


freely we spend and the types of products
we buy.

available to a household over and above


what it requires to have a comfortable
standard of living

How we spend varies based in part on our


attitudes toward money
Tightwads
Spendthrifts
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Consumer Confidence

For Reflection

Factors affecting

How does your own attitude toward

savings rate:
Pessimism/
optimism
World events
Cultural differences
in attitudes toward
savings
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spending affect your general shopping


patterns?

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Learning Objective 2

Social Class Structure

We group consumers into social classes

Haves versus have-nots


Social class is determined by income,

that say a lot about where they stand in


society.

family background, and occupation

Universal pecking order: relative standing


in society

Social class affects access to resources

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Picking a Pecking Order

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Components of Social Class

Artificial divisions

Occupational prestige
Is stable over time and similar across

in a society

cultures

Achieved versus

Single best indicator of social class

ascribed status

Income
Wealth not distributed evenly across

Status hierarchy

classes (top fifth controls 75% of all


assets)
How money is spent is more influential
on class than income
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Predicting Consumer Behavior

Consumer View of Luxury Goods

Social class is better predictor of lower to

Luxury is functional
Luxury is a reward
Luxury is indulgence

moderately priced symbolic purchases

Income is better predictor of major


nonstatus/nonsymbolic expenditures

Need both social class and income to


predict expensive, symbolic products

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The Income Pyramid

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Figure 11.1 The 4 As

Top of the Pyramid


Bottom of the Pyramid

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Social Mobility

Figure 11.2 American Class Structure

Horizontal Mobility
Upward Mobility

Downward Mobility

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Problems with Social Class Segmentation

For Reflection

How do you assign people to social

Ignores status inconsistencies

classes, or do you at all?

Ignores intergenerational mobility

What consumption cues do you use (e.g.,

Ignores subjective social class


Ignores consumers aspirations to change
class standing

clothing, speech, cars, etc.) to determine


social standing?

Ignores the social status of working wives

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Learning Objective 3

Taste Cultures

Individuals desire to make a statement

Taste culture differentiates people in terms

about their social class, or the class to


which they hope to belong, influences the
products they like and dislike.

of their aesthetic and intellectual


preferences

Upper- and upper-middle-class are more


likely to visit museums and attend live
theater

Middle-class is more likely to go camping


and fishing
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Figure 11.4 Living Room


Clusters and Social Class

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Status Symbols

Does it matter that we have more


wealth/fame than others?

Status-seeking is a motivation to obtain


products that will let others know that you
have made it

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Figure 11.5 A Typology of


Status Signaling

How Brand Loyal Consumers Deal with


Counterfeiting

Flight
Reclamation
Abranding

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For Reflection

Learning Objective 4

Provide examples of quiet versus loud

A lifestyle defines a pattern of

brand signals used among your reference


groups. What do these signals say about
social class and lifestyle?

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consumption that reflects a persons


choice of how to spend his or her time and
money, and these choices are essential to
define consumer identity.

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For Reflection

Learning Objective 5

Identify a brand that appeals to your

Identifying patterns of consumption can be

lifestyle. Does it appeal specifically to the


things you like to do, how you spend your
leisure time, or how you spend your
money?

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Figure 11.6 Consumption Style

more useful than knowing about individual


purchases when organizations craft a
lifestyle marketing strategy.

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For Reflection

Identify products and settings that would


be at home in your consumption styles.

Have marketers identified these


consumption styles and used them in
advertising?

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Learning Objective 6

Psychographic Analysis

Psychographics go beyond simple

demographics to help marketers


understand and reach different consumer
segments.

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AIOs and Lifestyle Dimensions


Activities

Interests

Opinions

Work

Family

Themselves

Hobbies

Home

Social issues

Social events

Job

Politics

Vacation

Community

Business

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Lifestyle profile
Product-specific profile
General lifestyle segmentation
Product-specific segmentation

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Uses of Psychographic Studies

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Define target market


Create a new view of market
Position the product
Better communicate product attributes

Develop product strategy


Market social and political issues

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Figure 11.8 VALS2

For Reflection

Which VALS category would you guess


you are in? Why?

Do you see possible linkages between


brand images and the segments in the
VALS system?

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Chapter Summary

Both personal and social conditions


influence how we spend our money.

We group consumers into social classes


that say a lot about where they stand in
society.
A persons desire to make a statement
about social class influences the products
he likes and dislikes.
Lifestyle is the key to many marketing
strategies.
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