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CHAPTER FOUR

The
Changing
American
Society:
The Changing American Society:
Demographics
and
Social
Stratification
Demographics and Social Stratification

McGraw-Hill/Irwin

Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserv

Demographics

2

Describe a population in terms of its
size, distribution, and structure.

• Population Size
• Distribution

CHAPTER

4

A Tale of Three Cities… 3 CHAPTER 4 .

Demographics: Occupation 4 CHAPTER 4 .

Demographics: Education 5 CHAPTER 4 .

Demographics: Income 6 • Enables but does not generally cause or explain them • What is wealth? • Subjective Discretionary Income • Total Family Income CHAPTER 4 .

Demographics: Age 7 18-24 CHAPTER 4 25-34 35-44 45-54 55-64 65+ .

do you think should be added? • Do you think cognitive age is a valid concept? Why? • If the meaning of age is a cultural concept. how would the concept and measurement of co gnitive age change across cultures? • How can marketers use cognitive age? CHAPTER 4 . if any.Consumer Insight 4-1 8 • Cognitive age is measured on four dimensions. What additional dimensions.

Consumer Insight 4-2 9 • The percentage of the American population that is elderly is going to incr ease dramatically over the next 20 years. How is this going to change the nature of American society? • What ethical and social responsibilities do marketers have when marketing to the elderly? CHAPTER 4 .

and economic environment • Cohort Analysis: the process of describing and explaining the attitudes. values. values.Generations/Age Cohorts 10 • Generation/Age Cohort: a group of persons who have experienced a common social. political. and behaviors of an age group as well as predicting its future attitudes. historical. and behaviors CHAPTER 4 .

Understanding American Generations 11 • • • • • • CHAPTER 4 Pre-depression (Before 1930) Depression (1930 to 1945) Baby Boom (1945 to 1964) Generation X (1965 to 1976) Generation Y (1977 to 1994) Millennials (After 1994) .

Social Standing Influences Behavior 12 CHAPTER 4 .

The Coleman-Rainwater Social Class Hierarchy 13 CHAPTER 4 .

The Coleman-Rainwater Social Class Hierarchy 14 CHAPTER 4 .

Upward-Pull Strategy 15 CHAPTER 4 .

16 Group Exercise • Form a group of four people • Develop a scale of measurement for social status • Be able to answer the following: • Single-Item or Multi-Item? • What is the main effect (most important factor)of the index? • What are the strengths and weaknesses? • What products or services would be the best application of your index? CHAPTER 4 .

Measuring Social Status 17 • Single-Item Indexes • Education • Occupation (Socioeconomic Index: SEI) • Income • Relative Occupational Class Income • Subjective Discretionary Income • Multi-Item Indexes • Hollingshead Index of Social Position • Warner’s Index of Status Characteristics • Census Bureau’s Index of Socioeconomic Status CHAPTER 4 .

and lesser professionals Administrative personnel. owners of small businesses. proprietors of medium-sized businesses. technicians.Hollingshead Index of Social Position (ISP) 18 Occupation Scale (Weight of 7) Description Higher executives of large concerns. proprietors. and major professionals Business managers. and owners of little businesses Skilled manual employees Machine operators and semiskilled employees Unskilled employees CHAPTER 4 Score 1 2 3 4 5 6 7 . and minor professionals Clerical and sales workers.

MD. and the like) Four-year college graduate (BA.Hollingshead Index of Social Position (ISP) 19 Education Scale (Weight of 4) Description Professional (MA. PhD. ME. BS. BM) One to three years college (also business schools) High school graduate Ten to 11 years of school (part high school) Seven to nine years of school Less than seven years of school CHAPTER 4 Score 1 2 3 4 5 6 7 . LLD. MS.

Hollingshead Index of Social Position (ISP) 20 ISP score = (Occupation score X 7) + (Education score X 4) Classification System Range of Description Scores Upper Upper-middle Middle Lower-middle Lower CHAPTER 4 11-17 18-31 32-47 48-63 64-77 .

etc. apartments in good condition 4 Skilled workers Salary Average Average: residential neighborhoods.Warner’s Index of Status Characteristics (ISC) 21 Score Occupation CHAPTER 4 Characteristics Source of House Income Type Dwelling Area 1 Professionals and proprietors of large businesses Inherited wealth Excellent houses Very high: Gold Coast. 2 Semiprofessionals & officials of large businesses Earned wealth Very good High: better suburbs & apartment house areas 3 Clerks and kindred workers Profits & fees Good houses Above average: areas all residential. business entering 6 Semiskilled workers Private relief Poor houses Low: considerably deteriorated. North Shore. houses no deterioration 5 Proprietors of small businesses Wages Fair houses Below average: area beginning to deteriorate. run down and semi-slum 7 Unskilled workers Public relief & nonrespectable income Very poor houses Very low: slum . space around houses.

6 10.Warner’s Index of Status Characteristics (ISC) 22 ISC score = (Occupation X 4) + (Income source X 3) + (House type X 3) + (Dwelling area X 2) Classification System CHAPTER 4 Social Strata Range of Scores Upper-upper Lower-upper Upper-middle Lower-middle Upper-lower Lower-lower 12-17 18-24 25-37 38-50 51-62 63-84 Population Breakdown 1.0 25.2 28.8 33.4% 1.5 .

Methodology and Scores of the Socioeconomic Status. Working Paper No.000 and over 100 *Note: Income levels should be adjusted by consumer price index before using.000-$29.000-$14.999 97 College graduate 93 Clerical sales 71 $20.000 Under 15 Education Category Occupation Category Score Some grade school 10 Laborers 20 $3.000-$19.999 62 Some high school 42 Service workers 34 $8.000-$9.S. Government Printing Office. Source: U.Census Bureau Index of Socioeconomic Status (SES) 23 Income Category* Score Score $3.999 94 Some college 86 Craftsmen 58 $15.999 31 Grade school graduate 23 Students 33 $5.: U. 15 (Washington. 1963). Bureau of the Census. D.S.999 84 High school graduate 67 Operators 58 $10.C.000-$4. CHAPTER 4 .000-$7.999 99 Graduate school 98 Managers 81 Professionals 90 $30.

CHAPTER 4 . Methodology and Scores of the Socioeconomic Status. Bureau of the Census.Census Bureau Index of Socioeconomic Status (SES) 24 SES score = (Income) + (Education) + (Occupation) 3 Classification System Social Strata Range of Scores Upper Upper-middle Middle Lower-middle 90-99 80-89 45-79 0-44 Population Breakdown 15.5 34. D.S.: U. 15 (Washington. Source: U.3 *Note: Income levels should be adjusted by consumer price index before using. Government Printing Office.C.1 16. 1963). Working Paper No.1% 34.S.

Using Social Class… 25 • Choosing the best measure • Will a single-item index be accurate enough? • What is the underlying factor I should be concerned with? • Issues and Assumptions • Upward Social Mobility • Class Consciousness • Dated social-class measures CHAPTER 4 .

Positioning and Social Class Segments 26 CHAPTER 4 .

Perceived Social Class Appeal 27 CHAPTER 4 .