Download presentation
Presentation is loading. Please wait.
1
Chapter 12 Income and Social Class
CONSUMER BEHAVIOR, 9e Michael R. Solomon Dr. Rika Houston CSU-Los Angeles MKT 342: Consumer Behavior
2
Consumer Spending and Economic Behavior
General economic conditions A person’s social class Products as status symbols Consumer schizophrenia?
3
Attitudes toward money
Discretionary Income The money available to a household over and above what it requires to have a comfortable standard of living Attitudes toward money Tightwads Spendthrifts
4
Wal-Mart Study on Attitudes Toward Money
Brand Aspirationals Price-Sensitive Affluents Value-Priced Shoppers
5
Factors affecting the overall savings rate:
Consumer Confidence Behavioral economics Consumer confidence Factors affecting the overall savings rate: Pessimism/optimism World events Cultural differences
6
Social Class Structure
“Haves” versus “have-nots” Determined by: Income Occupation Education Family background Universal pecking order relative standing in society Affects access to resources
7
Determinants of Social Class Structure
Income Occupation Background Family Education
8
Social Stratification
Creation of artificial divisions among people Distribution of scarce/valuable resources
9
Picking a Pecking Order
Distribution of scarce/valuable resources Based upon relative standing, power, or control Status hierarchy Achieved Status (by hard work) Ascribed Status (by who they are)
10
Social Mobility Horizontal Mobility Upward Mobility Downward Mobility
11
Figure 12.1 American Class Structure
12
Components of Social Class
Occupational prestige Stable over time Similar across cultures Single best indicator of social class Income Wealth not distributed evenly across classes (top fifth controls 75% of all assets) How money is spent means than income
13
Predicting Consumer Behavior
What predicts consumer behavior better? Social class or income? Well, it depends on the product! Social Class: Moderately priced, symbolic purchases Income: Major non-status/non-symbolic expenditures Social Class and Income: Expensive, symbolic products
14
Three Consumer Views of Luxury Goods
Luxury is functional Luxury is a reward Luxury is indulgence
15
Upper- and upper-middle-class Middle-class
Taste Cultures Differentiates people in terms of their aesthetic and intellectual preferences Upper- and upper-middle-class Museums and live theater Middle-class Camping and fishing
16
Codes in Taste Cultures
The way consumers express and interpret meanings Allows marketers to communicate to markets using concepts and terms consumers are most likely to understand and appreciate Restricted codes focus on the content of objects, not on relationships among objects Elaborated codes depend on a more sophisticated worldview
17
Status Symbols Status seeking (through consumption) is a global trend
What matters is having more wealth/fame than others Lets others know that you have “made it”
18
Deliberately avoiding status symbols Examples:
Parody Display Deliberately avoiding status symbols Examples: Ripped jeans Sports utility vehicles Red Wing boots
19
Problems with Social Class Segmentation
Ignores status inconsistencies Ignores intergenerational mobility Ignores subjective social class Ignores consumers’ aspirations Ignores the social status of working wives
20
Chapter 12: Income & Social Class Key Concepts
Discretionary income Attitudes toward money Consumer confidence Determinants of social class structure Social stratification Achieved vs. ascribed status Social mobility American class structure Components of social class structure Consumer views of luxury goods Taste cultures & codes of taste cultures Status symbols Parody display Problems with social class segmentation
Similar presentations
