SOCIAL CLASS AND

CONSUMER BEHAVIOUR
SOCIAL CLASS
Social class usually is defined by the amount of status that
members of a specific class possess in relation to members of
other classes. Social-class membership often serves as a frame
of reference for the development of consumer attitudes and
behaviour.

“The division of members of a society into hierarchy of

distinct status classes, so that the members of each class
have either higher or lower status than members of other
classes.”
 SOCIAL CLASS IS HIERARCHICAL

Status is frequently thought of as the relative

rankings of members of each social class

• WEALTH
• POWER Social Comparison Theory
• PRESTIGE states that individuals compare their
own possessions against those of
others to determine their relative
social standing.
Presentation title

PERCENTAGE DISTRIBUTION OF FIVE- CATEGORY SOCIAL

CLASS MEASURE

SOCIAL CLASS PERCENTAGE

Upper 4.3
Upper- middle 13.8
Middle 32.8
Working 32.3
Lower 16.8
Total Percentage 100
SOCIAL CLASS MEASUREMENT

 Subjective measures
• Individuals are asked to estimate their own social
class positions.
Reputational measures
• Informants make judgements concerning the social
class membership of others within the community.
 Objective measures
• Individuals answer specific socioeconomic
questions and then are categorized according to
answers
 OBJECTIVE MEASUREMENT

 Single variable indexes  Composite-variable

• Occupation indexes
• Education • Index of status
• Income characteristics
• Other variables • Socioeconomic status score
GEODEMOGRAPHIC CLUSTERING

 “Birds of a feather flock together”

 Families of similar socioeconomic
backgrounds tend to reside in the same
neighbourhoods or communities. “They
cluster together”
 Dispersed communities with similar
geographic profiles
 Located by PINCODES
INDEX OF STATUS CHARACTERISTICS
(ISC)
• A composite measure of social
class that combines occupation,
source of income (not amount),
house type/dwelling area into a
single weighted index of social
class standing.
SOCIOECONOMIC STATUS SCORE
(SES)

A multivariable social class measure used

by the United States Bureau of the Census
that combines status, family income, and
educational attainment into a single
measure of social class standing
GEODEMOGRAPHIC CLUSTERS

A composite segmentation strategy that

uses both geographic variables (zip
codes, neighbourhoods) and
demographic variables (e.g., income,
occupation) to identify target markets.
 A composite index of
geographic and
PRIZM socioeconomic factors
(POTENTIAL expressed in residential
RATING zip code neighborhoods
INDEX BY ZIP from which
MARKET) geodemographic
consumer segments are
formed
THE AFFLUENT CONSUMER
• Especially attractive target to marketers
• Growing number of households can be
classified as “mass affluent” with incomes of
atleast $75,000
• Some researchers are defining affluent to
include lifestyle and psychographic factors in
addition to income
• Have different medial habits that the general
population
WHAT IS THE MIDDLE CLASS?

• The “middle” 50 percent of household 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)
THE MIDDLE CLASS

• There is evidence that the middle class is

disappearing in the US
• Growth of middle class in some Asian and Eastern
European countries
• Many companies offering luxury to the masses with
near-luxury models and goods.
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.
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?
THE TECHNO CLASS

• Having competency with technology

• Those without are referred to as
“technologically under-classed”
• Parents are seeking computer exposure for
their children
• Geeks now viewed as friendly and fun
SOCIAL CLASS
 Clothing, Fashion, and Shopping
 The pursuit of leisure
 Saving, Spending, and Credit
 Social Class and Communication
SUMMARY
Social class significantly influences consumer
behavior, shaping preferences, purchasing decisions,
and lifestyle choices. It reflects individuals'
economic and social standing, impacting their brand
choices and consumption patterns. Marketers
analyze social class dynamics to tailor marketing
strategies, ensuring products align with the
aspirations and values of specific social groups for
effective targeting.
THANK YOU

Nirbhay Kumar Vishwakarma

Roll no. 22
MBA (FT)