1. Social Class and Consumer Behavior
Chapter 11
Social Class and Consumer Behavior

2. Social Class
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes

3. Social Class and Social Status
Social status is usually defined in terms of one or more of the following socioeconomic variables:
Family Income
Occupational Status
Educational Attainment

4. Table 11.1 Variations in the Number and Types of Social-Class Categories
TWO-CATEGORY SOCIAL CLASS SCHEMAS
Blue-collar, white-collar
Lower, upper
Lower, middle
THREE-CATEGORY SOCIAL CLASS SCHEMAS
Blue-collar, gray-class, white-collar
Lower, middle, upper
FOUR-CATEGORY SOCIAL CLASS SCHEMAS
Lower, lower-middle, upper-middle, upper
FIVE-CATEGORY SOCIAL CLASS SCHEMAS
Lower, working-class, lower-middle, upper-middle, upper
Lower, lower-middle, middle, upper-middle, upper

5. Table 11.1 continued SIX-CATEGORY SOCIAL CLASS SCHEMAS
Lower-lower, upper-lower, lower-middle, upper-middle, lower-upper, upper-upper
SEVEN-CATEGORY SOCIAL CLASS SCHEMAS
Real lower-lower, a lower group of people but not the lowest, working class, middle class, upper-middle, lower-upper, upper-upper
NINE-CATEGORY SOCIAL CLASS SCHEMAS
Lower-lower, middle-lower, upper-lower, lower-middle, middle-middle, upper-middle, lower-upper, middle-upper, upper-upper

6. Table 11.2 Percent Distribution of Five-Category Social-Class Measure
SOCIAL CLASSES PERCENTAGE
Upper 4.3
Upper-middle 13.8
Middle 32.8
Working 32.3
Lower 16.8
Total percentage 100.0

7. The Measurement of Social Class
Subjective Measures
Reputational Measures
Objective Measures

8. Subjective Measures
In the subjective approach to measuring social class, individuals are asked to estimate their own social-class positions.

9. Reputational Measures
The reputational approach requires selected community informants to make initial judgments concerning the social-class membership of others within the community.

10. Objective Measures of Social Class
A method of measuring social class whereby individuals are asked specific socioeconomic questions concerning themselves or their families On the basis of their answers, people are placed within specific social-class groupings.

11. Objective Measures Single-variable indexes Composite-variable indexes
Occupation
Education
Income
Other Variables
Composite-variable indexes
Index of Status Characteristics
Socioeconomic Status Score

12. Single-Variable Index
The use of a single socioeconomic variable (such as income) to estimate an individual’s relative social class.

13. Chapin’s Social Status Scale
A social class rating scheme that focuses on the presence or absence of certain items of furniture and accessories in the home.

14. Composite-Variable Index
An index that combines a number of socioeconomic variables (such as education, income, occupation) to form one overall measure of social class standing.

15. Index of Status Characteristics (ISC)
A composite measure of social class that combines occupation, source of income (not amount), house type and dwelling area into a single weighted index of social class standing. Also known as Warner’s ISC.

16. Socioeconomic Status Score (SES)
A multivariable social class measure used by the United States Bureau of the Census that combines occupational status, family income, and educational attainment into a single measure of social class standing.

17. Table 11.3 Readers’ Median Household Income for Selected Publications
NEWSPAPER/MAGAZINE MEDIAN HOUSEHOLD INCOME
Wall Street Journal $86,109.4
Barron’s 83,075.5
New York Times Daily 78,093.1
Architectural Digest 71,483.6
Forbes 68,518.7
Money 64,423.2
PC World 60,680.4
New Yorker 59,471.0
Smithsonian 55,5646
Newsweek 54,842.2
Time 52,283.5
Car & Driver 52,338.0
National Geographic 49,561.4

18. Table 11.3 continued NEWSPAPER/MAGAZINE MEDIAN HOUSEHOLD INCOME
People $48,206.4
Town & Country 47,810.3
Esquire 45,565.4
Cosmopolitan 42,937.8
Playboy 39,759.1
Field & Stream 39,164.8
Outdoor Life 38,765.6
Hunting 38,299.9
Family Circle 39,476.5
Soap Opera Weekly 28,583.8
Ebony 27,744.8
True Story 17,426.1

19. Table 11.4 Occupational Rankings in Terms of Honesty and Ethical Standards
COMBINED PERCENT*
Druggists/pharmacists 1
69%
Clergy 2 59
Medical doctors 3 56
College teachers 4 55
Dentists 5 54
Police officers 6 49
Engineers 7 49
Funeral directors 8 36
Bankers 9 34
Public opinion pollsters 10 23
Journalists 11 23
TV reporters, commentators 12 22

20. *Rank is based on the combination of “very high” and “high” rating.
Table continued
OCCUPATIONAL
1997 RANK
COMBINED PERCENT*
Business executives 13 20
Local officeholders 14 20
Building contractors 15 20
Newspaper reporters 16 19
Stockbrokers 17 18
State officeholders 18 17
Real estate agents 19 16
Lawyers 20 15
Labor union leaders 21 15
Senators 22 14
Advertising practitioners 23 12
Congresspeople 24 12
Insurance salespeople 25 12
Car salespeople 26 8
*Rank is based on the combination of “very high” and “high” rating.

21. NO MORE THAN ELEM. SCHOOL
Table 11.5 The Relationship between Formal Education and Household Income
TOTAL
NO MORE THAN ELEM. SCHOOL
SOME HIGH SCHOOL
HIGH SCHOOL GRAD.
1 TO 3 YEARS OF COLL.
4+ YEARS OF COLL.
ALL HOUSEHOLDS
100%
100%
100%
100%
100%
100%
Under $10,000
11.7
31.9
24.4
11.4
8.3
3.3
$10,000 to $14,999
8.5
18.0
16.0
9.1
6.8
3.3
$15,000 to $24,999
15.5
22.0
23.3
18.2
14.5
7.5
$25,000 to $34,999
14.0
12.0
13.3
16.9
15.1
10.3
$35,000 to $74,999
17.6
5.6
7.5
16.9
21.2
23.2
$75,000 and Over
15.6
2.1
3.3
8.7
14.3
35.2
Households (000’s)
94,364
8,062
9,683
29,507
23,670
23,424
Median income
$35,235
$15,043
$18,298
$31,376
$39,637
$58,052

22. Table 11.6 Typical Categories Used for Assessing Amount or Source of Income
AMOUNT OF INCOME
Under $25,000 per year
$25,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $124,999
$125,000 to $149,999
$150,000 to $174,999
$175,000 to $199,999
$200,000 and over
SOURCE OF INCOME
Public welfare
Private financial assistance
Wages (hourly)
Salary (yearly)
Profits or fee
Earned wealth
Inherited wealth, interest, dividends, royalties

23. Table 11.7 Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB ESTABLISHMENT
Small number of well-established families
Belong to best country clubs and sponsor major charity events
Serves as trustees for local colleges and hospitals
Prominent physicians and lawyers
May be heads of major financial institutions, owners of major long-established firms
Accustomed to wealth, so do not spend money conspicuously
THE LOWER-UPPER CLASS--NEW WEALTH
Not quite accepted by the upper crust of society
Represent “new money”
Successful business executive
Conspicuous users of their new wealth

24. Table 11.7 continued THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS
Have neither family status nor unusual wealth
Career-oriented
Young successful professionals, corporate managers, and business owners
Most are college graduates, many with advanced degrees
Active in professional, community, and social activities
Have a keen interest in obtaining the “better things in life”
Their homes swerve as symbols of their achievements
Consumption is often conspicuous
Very child-oriented

25. Table 11.7 continued THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS
Primary nonmanagerial white-collar workers and highly paid blue-collar workers
Want to achieve “respectability” and be accepted as good citizens
Want their children to be well-behaved
Tend to be churchgoers and are often involved in church-sponsored activities
Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing
Constitute a major market for do-it-yourself products

26. Table 11.7 continued THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY
The largest social-class segment
Solidly blue-collar
Strive for security (sometimes gained from union membership)
View work as a means to “buy” enjoyment
Want children to behave properly
High wage earners in this group may spend impulsively
Interested in items that enhance their leisure time (e.g., TV sets)
Husbands typically have a strong “macho” self-image
Males are sports fans, heavy smokers, beer drinkers
THE LOWER-LOWER CLASS--ROCK BOTTOM
Poorly educated, unskilled laborers
Often out of work
Children are often poorly treated
Tend to live a day-to-day existence

27. Geodemographic Clusters
A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods, or blocks) and demographic variables (e.g., income, occupation, value of residence) to identify target markets.

28. PRIZM (Potential Rating Index by Zip Market)
A composite index of geographic and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.

29. Table 11.9 A Profile of PRIZM Cluster: “Young Literati” (Cluster 08)
SOCIOECONOMIC FACTORS:
Percent of U.S. households 0.94%
Predominant age range 25-34, 35-44
Socioeconomic group Upper middle
Demographic caption Upscale urban singles and couples
Housing type Renter
Education College graduates
Occupation Professional
LIFESTYLE:
Plan for large purchases
Take vitamins
Use a discount-broker
Watch Bravo
Read GQ

30. Figure Three Segments of Affluent Consumers’ Average Household Expenditures (among purchasing households)

31. Figure 11.5 Affluent Consumers’ Participation in Selected Sports

32. Table 11.10 Affluent Readers’ ($70,000+ Median Household Income) for Selected Publications
NEWSPAPER/MAGAZINE MEDIAN HOUSEHOLD INCOME ($)
Allure 115,400
Architectural Digest 125,400
Art & Antiques 103,200
Better Homes and Gardens 96,600
Boating 101,400
Bon Appetit 119,200
Business Week 121,500
Cigar Aficionado 115,100
Conde Nast Traveler 123,500
Elle 119,900
Esquire 108,200
Fortune 121,900
Golf Magazine 102,200
Good Housekeeping 94,800

33. Table 11.10 continued NEWSPAPER/MAGAZINE MEDIAN HOUSEHOLD INCOME ($)
Gourmet 120,600
GQ/Gentlemen’s Quarterly 103,500
House & Garden 100,300
Martha Stewart Living 100,000
National Geographic 97,000
Newsweek 109,000
Self 103,800
Southern Accents 120,800
Town & Country 124,200
Travel & Leisure 111,100
U.S. News & World Report 99,900
Vanity Fair 124,700
Vogue 119,800
W 138,000

34. MRI Affluent Market-Segmentation Schema
Affluent Segments
Well-feathered Nests
No Strings Attached
Nanny’s In Charge
Two Careers
The Good Life
Rural Affluent Segments
Suburban Transplants
Equity-rich Suburban Expatriates
City Folks with Country Homes
Wealthy Landowners

35. Consumer Behavior and Social Class
Clothing, Fashion, and Shopping
The Pursuit of Leisure
Saving, Spending, and Credit
Social Class and Communication