Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–1 Chapter 15Social Class Concept of social class How social classes are measured Measurement problems marketing managers face Impact of social class on the consumption process Use of social class in developing marketing strategies

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–2 Social Class Social class and consumption Social class – cultural differences – components of social class – measurements of social class Social class and consumption differences – global similarities – segmenting the affluent Status symbols

15–3 Social Standing and Behaviour

15–4 Not all Behaviours are Unique

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–5 Behaviour and Social Class Unique behaviours – Product: fine china – Situation: entertainment  e.g. Opera subscription Not all behaviours are unique: Shared behaviours – Situation: entertainment  e.g. Football match

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–6 Status Crystallisation Degree of consistency on status dimensions – occupation – education – income – ownership Status crystallisation is low in Australia

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–7 Social Class in Australia* Upper class – 10% of population Middle class – 60% Lower class – 30% *Source: ABS

15–8 The Functional Approach to Social-Class Structure

15–9 The Reputational Approach to Social-Class Structure

15–10 Positioning Within Social Class

15–11 Upward-Pull Strategy Targeted at the Middle Class

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–12 Measurement of Social Class and its Application to Marketing Strategy Single-item indexes – e.g. education Multiple-item indexes – e.g. Hollingshead Index of Social Position

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–13 Measurement of Social Class and its Application to Marketing Strategy (cont.) Uses: – Differences in product consumption  instant coffee  snack foods  imported wine

15–14 Consumption Differences Across the Hollingshead Index of Social Position Strata

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–15 Social Class and Marketing Strategy Relate status variables to product consumption – Usage, motivation, symbolic meaning Target social status – Actual lifestyle, desired lifestyle, media, etc. Develop product position – Select desired position (based on actual/desired lifestyle) Marketing mix decisions – Develop mix

15–16 Using Social Stratification to Develop Marketing Strategy

15–17 Use of Income and Purchase Motivation for Target Market Appeal

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 15–18 Next Lecture… Chapter 16: Culture and Cross-Cultural Variations in Consumer Behaviour