1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Household and Social Class Influences

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives~ Ch. 13 1.Describe the various types of households and families, and explain how the family life cycle and other forces affect household structure. 2.Discuss the roles that household members play in acquisition and consumption decisions, and how companies can build on these roles to market more effectively. 3.Define the social class hierarchy and identify the major determinants of social class standing. 4.Explain how social class influences consumer behavior and why these influences are considerations when marketers plan strategy and tactics. 5.Outline three key forces that are, over time, changing social class structure in many countries.

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Household Influences & CB Family –Nuclear –Extended Types of Households –Single person living alone –Group of individuals living together

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Household Structure Trends Delayed marriage Cohabitation Dual-career families Divorce Smaller families Same-sex couples What accounts for these changes and in what ways are they relevant to business?

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Roles Gatekeeper Influencer Decider Buyer User –Roles can be expressive or instrumental

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Spouses & Decisions Dominant –Husband –Wife Decision –Autonomic –Syncratic Bargaining versus concession Children? Pester power

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Class Hierarchy Social class systems –Upper –Middle –Lower Social class—economic substrata –Overprivileged –Class average –Underprivileged

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. U.S. Subclasses Upper Americans –Upper-upper –Lower-upper –Upper-middle Middle Americans –Middle class –Working class Lower Americans –“Not the lowest” –“Real lower-lower”

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Class Influence Trickle-down –Lower classes copy trends of upper-classes Status float –Trends start in lower-/middle-classes & spread upward

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Class Determination Income versus social class—income not strongly related Occupation & education—strongest determinant of class standing Other indicators –Inherited status –Earned status Social class indexes –Computerized status index –Status crystallization

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Class Dynamics Upward mobility—education Downward mobility—job loss Marriage may impact mobility –Status panic Social class fragmentation –Blurred class divisions –Increased availability of mass media –Advances in communication technology

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Class & Consumption Conspicuous consumption & status symbols— conspicuous waste Status symbols & judging others –Parody display –Fraudulent symbols Compensatory consumption Meaning of money –Both good & evil –Can you buy happiness?