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SOCIAL CLASS AND

CONSUMER
Made by :
IDENTITY
NOUREEN AKBER

MASTERS EVENING
PROGRAM
3RD SEMESTER
COURSE NUMBER: 641-B
UNDER SUPERVSION OF
MS. ANILA MUKHTAR
From sociological point of view when we see the incident of
Titanic ship which hit with an ice berg and broken down
on April 15th, 1912 and unfortunately more than 1600
people loss their lives, there existed social classes which
actually decided the survival of some people how?

More than 60 % of people holding first class tickets were


saved because they were on the upper decks
Only 36 % of the second-class passengers survived
The third-class passengers on the lower decks only 24%
escaped drowning.
The fate of the passengers on the Titanic dramatically
illustrates how social inequality affects the way people live
(Macionis, 2012)
Have and have-not (Society division)
Income, family background and occupation decides
society position
How much and how spend money
Sociologist W. Lloyd Warner suggested ranks of U.S.A
social class structure in 1941.
Pick a pecking order
Dominance-submission hierarchy example of chicken.
Similarly human education, housing and consumer goods depends on ranking.

Marketing strategies work on desires on people to develop in life and show others your success

For instance, when you start to earn salary from 50,000 to 100000 you will buy more expensive products than before for sake of your status in society.
Karl Marx (19th century) economic theorists gave a concept of
relationship to means of production and position in society.

Use other’s labor


Haves Control resources to preserve their
privilege status

Most to gain if
Depend on own
Haves- not change the
labor for survival
system
Social class
It is altogether rank of people in a certain society.
Principle of similarity in social class
Concept of homogamy in social class
Effect of class membership on consumption
For example rich people buy branded bag, jewelries,
properties, expensive club membership, cars, branded
cosmetics etc
EDUCATION

INCOME

SOCIAL BUYING
CLASS BEHAVIOR

OCUPATION

STATUS

Iftikhar et al. , 2013


People from high class spend more on luxury products and
prefer to buy rare, unique and imported products and well
reputed brands because they have more resources to spend
and they prefer luxurious lifestyle (Han et al., 2010).
People from middle class are intelligent and spend on
quality products within their means.
 People who belong to low class spend their resources on
buying necessities of life and even accept low quality
products. Buying behavior also change as people move
from upward or downward in their position of social class.
Upward mobility
Upper -upper class or blue bloods or upper crust (shooting,
sailing, golf, horseback riding)
Lower upper or super rich or capitalist (employ chefs,
nutritionists, maids, nannies, personal assistants)
Upper-middle or professional achievement (home, cars and
travel)
Lower-middle class or faithful followers or semi professionals
(avoid hot styles, value religion a lot)
Upper lower class or working class (TV, refrigerator, smoking)
Lower class or poor people (second hand products)
Under class or lower-lower class (day to day living)
Conspicuous consumption
Conspicuous consumption : Buying goods or services
to openly exhibit one’s wealthy instead of fulfilling
basic needs.

Affluent Consumers
are those who are healthier, have high life
expectancies, and are more likely to become marketers
“customers for life” than less wealthy
Social stratification
Artificial division
Uneven division of limited and precious resources to
status position
Status hierarchy (better off than others)
Occupational prestige
Working class less likely to travel or take long trips,
they most likely buy home appliances like TV,
refrigerator etc
Long term goals by rich people are most likely saving
for retirement, college fees etc
WEALTH

PRESTIGE
THREE
COMPONENT
THEORY OF
STRATEFICATION
POWER
BY CLASS
SOCIOLOGIST
MAX WEBER

(Weber, 1978)
Facilities of chefs or cooks availed
by middle and upper class
Working class conservative and family oriented and
maintains homes and properties regardless of size
No power to effect their outcomes felt by lower class
men as per research (consumer feelings of empower)
 potent and impotent actors
It influence consumption behavior
Potent invest money
Working class not necessarily view maintenance of
high status life style worth the effort.
The possessors of most comfort suffer most by Emile
Durkheim in 1897
Suicide higher among wealthy
Affluenza is condition well off consumers stressed or
unhappy due to their wealth
Cosmopolitanism tries to open with world and strives for
diverse experience (not need to be rich) involve in social
media
Cosmopolitan consumers see themselves as part of the
larger world as much as they do part of particular groups.
Thus, they use modern technology and communication
regardless of their level of localized ethnic identity. 2
Starbucks is a prime example of a company likely to
benefit from increased knowledge of cosmopolitan
consumers. The company has become a global
phenomenon with worldwide locations. The ways in
which it addresses the brand border is an important
aspect of its global presence. Starbucks has 5,500
coffee houses in over 55 countries. The operations
philosophy surpasses language and culture.
International availability is built on global
partnerships.
Income versus social class
Money ≠ social class
Not necessarily use earnings for common good for
family
Social class or income better predictor of consumer
behavior?
Depends on type of product, buy mostly for functional
value (what it does) or symbolic value (impression
creates on others)
Social class better predictor if symbolic but low to
moderate price (cosmetic)
Income is better predictor if largely buying for
functional value (home appliances)
Both class and income for expensive symbolic
products (cars, homes)
How to measure social class?
Subjective and objective measures
Index of status characteristics (1940)
Index of social position (1950)
Both combine individual characteristics (income, type
of house) its multivariable measures
Not valid today
Status crystallization (social inconsistency)
Over privilege (20 to 30%) income and under privilege 15%
less than median big chunk of income to maintain
impression (house poor)
In past women achieve social status by husbands.
Husbands define family’s social status and women must live
it.
Physically attractive women marry social class than
attractive men
But today situation is different women equally contribute in
economy
Lower income spend extravagantly and higher income
bargain
Differences in consumption pattern between upper
and upper middle classes and between middle and
working classes are disappearing
Still differences are there upper and upper middle visit
farm houses or do national and international tours
and middle and lower attend parks with in city or visit
with in countries like visiting rural areas.
Marketing strategies for social classes
For elite class by branded products which meet their
standards and charge for higher prices
Advertisements of luxury products not only targets
but also for all people
For middle class in their ranges by advertising
For middle and lower class sales is the technique to
attract them
References
Iftikhar, M., Farooq H. M., Ali K. Z., Iliyas, S. (2013). Social class is a
myth or reality in buying behavior. African Journal of Business
Management, Vol. 7(9), pp. 713-718.
http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.1239
ISSN 1993-8233©2013 Academic Journals

 Solomon, M. R. (2020). Income and Social Class. Consumer Behavior:


Buying, Having, and Being, 13th Edition. (439-473) Pearson Education,
Inc.

 Schiffman, L. G. & Wisenblit, J. (2015). The Family and Its Social


Standing. Consumer Behavior, 11th Edition. (231-265) Pearson Education,
Inc.

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