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Social Class and Consumer Behaviour

Social class is defined by status in relation to other classes in a hierarchy. It serves as a frame of reference for consumer attitudes and behavior. Social class is measured objectively using variables like occupation, education, and income, or subjectively by asking individuals to estimate their own class. Marketers use geodemographic clustering to identify target markets based on geographic and demographic factors like income and occupation within residential neighborhoods. Consumer behavior significantly differs between social classes like the affluent, middle class, working class, and classes defined by technological competency.

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Shivani Khandelwal
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644 views20 pages

Social Class and Consumer Behaviour

Social class is defined by status in relation to other classes in a hierarchy. It serves as a frame of reference for consumer attitudes and behavior. Social class is measured objectively using variables like occupation, education, and income, or subjectively by asking individuals to estimate their own class. Marketers use geodemographic clustering to identify target markets based on geographic and demographic factors like income and occupation within residential neighborhoods. Consumer behavior significantly differs between social classes like the affluent, middle class, working class, and classes defined by technological competency.

Uploaded by

Shivani Khandelwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Introduction: An introductory overview of how social class affects consumer behavior.
  • Social Class: Defines social class and its hierarchical nature, setting the framework for subsequent analyses.
  • Social Class Measurement: Discusses methods for measuring social class, including subjective, reputational, and objective measures.
  • Geodemographic Clustering: Describes clustering techniques based on geographic and demographic data to segment markets.
  • Index of Status Characteristics (ISC): Details a composite measure that uses various social indicators to assess class standing.
  • Socioeconomic Status Score (SES): Explains how SES uses multiple variables to provide a comprehensive social class measure.
  • Geodemographic Clusters: Introduces segmentation strategies employing geographic and demographic variables for market analysis.
  • PRIZM (Potential Rating Index by Zip Market): Provides insights into consumer market segmentation using PRIZM based on geographic and socioeconomic factors.
  • The Affluent Consumer: Discusses characteristics and marketing strategies for reaching affluent consumers.
  • What is the Middle Class?: Explores the definition and characteristics of the middle class in consumer contexts.
  • The Working Class: Analyzes the consumer habits of the working class, emphasizing brand loyalty tendencies.
  • The Techno Class: Examines a class defined by technological proficiency and its relevance in consumer marketing.
  • Social Class Impacts: Evaluates how social class influences consumer areas like fashion, leisure, and communication.
  • Summary: Summarizes the overall impact of social class on consumer behavior, preferences, and marketing strategies.
  • Conclusion: Final thoughts and acknowledgments to conclude the presentation.

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)

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 t
SOCIAL CLASS IS HIERARCHICAL Status is frequently thought of as the relative rankings of members of each social class • WEAL
Presentation title PERCENTAGE DISTRIBUTION OF FIVE- CATEGORY SOCIAL CLASS MEASURE SOCIAL CLASS PERCENTAGE Upper 4.3 Upper- m
SOCIAL CLASS MEASUREMENT Subjective measures • Individuals are asked to estimate their own social class positions. Reputat
OBJECTIVE MEASUREMENT Single variable indexes • Occupation • Education • Income • Other variables Composite-variable inde
GEODEMOGRAPHIC CLUSTERING “Birds of a feather flock together” Families of similar socioeconomic backgrounds tend to res
INDEX OF STATUS CHARACTERISTICS (ISC) • A composite measure of social class that combines occupa
SOCIOECONOMIC STATUS SCORE (SES) A multivariable social class measure used by the United States Bu
GEODEMOGRAPHIC CLUSTERS A composite segmentation strategy that uses both geographic variables (zip codes, neighbourhoods)

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