Chapter 11

Social Class and

Consumer Behavior
Consumer Behavior,
Ninth Edition

Schiffman & Kanuk

Copyright 2007 by Prentice Hall

 Chapter Outline
• What Ss Social Class?
• The Measurement of Social Class
• Geodemographic Clustering
• The Affluent Consumer
• The Middle Class Consumer
• The Working Class
• Selected Consumer Behavior
Applications of Social Class

Copyright 2007 by Prentice Hall 11 - 2

 The division of
members of a society
into a hierarchy of
distinct status classes,
Social Class so that members of
each class have either
higher or lower status
than members of other
classes.

Copyright 2007 by Prentice Hall 11 - 3

 Status Consumption
• Consumers endeavor to increase their
social standing through consumption
• Very important for luxury goods
• Is different from conspicuous consumption

Copyright 2007 by Prentice Hall 11 - 4

 Discussion Question
• Why is status consumption important for
some consumers?
• How can marketers promote increased
status consumption?

Copyright 2007 by Prentice Hall 11 - 5

 Social Class Is Hierarchal
• Status is frequently thought of as the
relative rankings of members of each
social class

Copyright 2007 by Prentice Hall 11 - 6

 Table 11.2 Percent Distribution of Five-
Category Social-Class Measure

SOCIAL CLASSES PERCENTAGE

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

Copyright 2007 by Prentice Hall 11 - 7

This luxury
cruise line
targets
upscale
customers.
 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
Copyright 2007 by Prentice Hall 11 - 9
 Objective Measures
• Single-variable • Composite-variable
indexes indexes
– Occupation – Index of Status
– Education Characteristics
– Income – Socioeconomic
– Other Variables Status Score

Copyright 2007 by Prentice Hall 11 - 10

 Discussion Question
• What are the advantages to a marketer
using the objective method to measure
social class?
• When would the subjective or reputational
method be preferred?

Copyright 2007 by Prentice Hall 11 - 11

 A composite
measure of social
class that combines
occupation, source
Index of Status of income (not
Characteristics amount), house
(ISC) type/dwelling area
into a single
weighted index of
social class
standing.

Copyright 2007 by Prentice Hall 11 - 12

 A multivariable social
class measure used by
the United States
Bureau of the Census
Socioeconomic
that combines
Status Score
occupational status,
(SES) family income, and
educational attainment
into a single measure of
social class standing.

Copyright 2007 by Prentice Hall 11 - 13

 This
reference
to a plastic
surgeon
may be part
of targeting
to upper-
class
consumers.
 Occupational
ranking in
terms of
honesty and
ethical
standards -
Figure 11-2

Copyright 2007 by Prentice Hall 11 - 15

 Table 11.7 Typical Categories Used for
Assessing Amount or Source of Income
Amount Source
Under $25,000/year Public welfare
$25,000-$49,999 Private financial assistance
$50,000-$74,999 Wages (hourly)
$75,000-$99,999 Salary (yearly)
$100,000-$124,999 Profits or fees
$125,000-$149,999 Earned wealth
$150,000-$174,999 Inherited wealth, interest,
$175,000-$199,999 dividends, royalties
$200,000 and over

Copyright 2007 by Prentice Hall 11 - 16

 A composite
segmentation
strategy that uses
both geographic
variables (zip codes,
Geodemographic
Clusters
neighborhoods) and
demographic
variables (e.g.,
income, occupation)
to identify target
markets.

Copyright 2007 by Prentice Hall 11 - 17

 A composite index of
geographic and
socioeconomic factors
PRIZM
expressed in
(Potential
residential zip code
Rating Index
neighborhoods from
by Zip
which
Market)
geodemographic
consumer segments
are formed.

Copyright 2007 by Prentice Hall 11 - 18

 Explore the
Prizm Product
at Clarita’s
Web site.

weblink

Copyright 2007 by Prentice Hall 11 - 19

 The Affluent Consumer
• Especially attractive target to marketers
• Growing number of households can be
classified as “mass affluent” with incomes
of at least $75,000
• Some researchers are defining affluent to
include lifestyle and psychographic factors
in addition to income
• Have different medial habits than the
general population

Copyright 2007 by Prentice Hall 11 - 20

 Most large
banks offer
“private
banking”
services to
their most
affluent
customers.
weblink

Copyright 2007 by Prentice Hall 11 - 21

 Three segments
of affluent
consumers’
average
household
expenditures
Figure 11-5

Copyright 2007 by Prentice Hall 11 - 22

 What Is the Middle Class?
• The “middle” 50 percent of household
incomes - households earning between
$22,500 and $80,000
• Households made up of college-educated
adults who use computers, and are
involved in children’s education
• Lower-middle to middle-middle based on
income, education, and occupation (this
view does NOT include upper-middle,
which is considered affluent)
Copyright 2007 by Prentice Hall 11 - 23
 The Middle Class
• There is evidence that the middle class is
slowly disappearing in the U.S.
• Growth of middle class in some Asian and
Eastern European countries
• Many companies offering luxury to the
masses with near-luxury models and
goods

Copyright 2007 by Prentice Hall 11 - 24

 This ad
focuses on
the affordable
price of this
treatment.
 The Working Class?
• Households earning $40,000 or less
control more than 30 percent of the total
income in the U.S.
• These consumers tend to be more brand
loyal than wealthier consumers.

Copyright 2007 by Prentice Hall 11 - 26

 Discussion Question
• What types of products are targeted to the
working class?
• What issues must marketers consider
when targeting their ads to the working
class?

Copyright 2007 by Prentice Hall 11 - 27

 The U.S.
Census is an
excellent
source of data
on different
economic
groups.

weblink

Copyright 2007 by Prentice Hall 11 - 28

 The Techno Class
• Having competency with technology
• Those without are referred to as
“technologically underclassed”
• Parents are seeking computer exposure
for their children
• Geeks now viewed as friendly and fun

Copyright 2007 by Prentice Hall 11 - 29

 Consumer Behavior and
Social Class
• Clothing, Fashion, and Shopping
• The Pursuit of Leisure
• Saving, Spending, and Credit
• Social Class and Communication

Copyright 2007 by Prentice Hall 11 - 30

 Preferences
of
Americans
for 100 Arts,
Media and
Leisure
Pursuits
Figure 11-8

Copyright 2007 by Prentice Hall 11 - 31

 Class Situations, Self-Perceptions, and
Financial Orientations
Figure 11-9

Copyright 2007 by Prentice Hall 11 - 32