Transcript Social Class and Lifestyle

Social Class &
Lifestyles
Dr. Azita Hirsa
Social Class
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Both personal and social conditions influence how we
spend our money.
Discretionary Income
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The money available to a household over and above what
it requires to have a comfortable standard of living
How we spend varies based in part on our attitudes
toward money
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Tightwads
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hate to part with their money and actually experience emotional pain
when they make purchases
Driven by pain of paying NOT the pleasure of saving
Spendthrifts
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Enjoy nothing more than spending
Consumer Confidence
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Consumer confidence
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Consumer beliefs about what the future holds
Factors affecting the overall savings rate:
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Pessimism/optimism about personal circumstances
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Optimism = reduce savings rate
World events
Cultural differences in attitudes toward savings
For Reflection
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How does your own attitude toward spending affect your
general shopping patterns?
Grouping Consumers to Understand &
Predict Their Behaviors
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Social class as an aggregate of several measures that can
describe a person or a household
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People who are similar on social class indicators are often
similar in their consumer behaviors
What is Social Class?
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Status hierarchy by which groups and individuals are classified
on the basis of esteem and prestige – AMA
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A group of people whom other members of the community
see as equal to one another in social prestige and whom
others believe to be superior or inferior in prestige to other
groups that constitute the social classes below them or
above them (L. Warner)
Social Class
Social Class Membership
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Members of the same social class tend to share common
values, beliefs, and behaviors that unite them
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Membership in a higher class generally leads to greater
influence within the workplace, organizations, and society as
a whole
Social Class Structure
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“Haves” versus “have-nots”
Social class is determined by income, family background,
and occupation
Universal pecking order: relative standing in society
Social class affects access to resources
What is your Social Class? Measures
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Subjective (rank self)
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Reputational (someone gives opinion of your social class)
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Objective methods (uses scores on various observable
variables)
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Warner’s Index: occupation, source of income, house type, dwelling
area
Social Class
Income Source
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Income source along with occupation, and education
may help us determine whether two individuals that have
the same income belong in the same class:
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investments, inheritance, old wealth, etc.
What do you think?
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Does a professional athlete making $20 million belong in the
same social class with a physician making $150,000
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A mechanic wins $50 million in the lottery…will his social
class change?
Social Mobility
Horizontal Mobility
Upward Mobility
Downward Mobility
Social Class in the United States
Social Class in the US - A five-class
hierarchy
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Upper class
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Upper-middle class
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Salespeople, clerical workers, supervisors, construction
contractors, small retail store owners
Upper-lower class
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Professionals, independent businesspeople, corporate executives
Lower-middle class
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Attend elite schools, engage in inconspicuous consumption
Skilled and semi-skilled blue-collar workers
Lower-lower class
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Lower blue-collar workers, the unemployed, families on welfare,
and unskilled workers
Class Structure Around the World
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China – Rise of middle class
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Japan – A status- and brand-conscious society
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Nike’s new brand presence there
Single, working women spending on luxury goods
Middle East – Major retailers/brands where Arab women
enjoy shopping with their families/friends
England – Rigid class structure still exists, but the
dominance of its aristocracy is fading (or is it?)
Marketers are targeting chavs’ interest in fashion, food, and
gadgets
http://news.bbc.co.uk/2/hi/uk_news/7853360.stm
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Social Class – Important Source of Beliefs,
Values, & Behaviors
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Different social classes value education differently
Attitudes toward family life, raising children, the role of
women, etc., vary from class to class
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Time with children, attitude toward work, care of self
People in various social classes exhibit markedly different
lifestyles
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Activities outside home, times of meals, types of sports
Taste Cultures: Social Class & Media Use
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Lower-class people are less likely to subscribe to
newspapers than are members of the middle class
Choice of magazine is likely tied to education & reading
ability
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Lower-middle class—Reader’s Digest, Ladies Home Journal
Upper-middle class—Time, The New Yorker, etc.
Broadcast media choice also varies by social class
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Upper-middle class—NBC vs. lower-middle class: CBS
Lower-middle class—more responsive to audiovisual forms of
communication
Social Class & Shopping
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Lower-class women are the most “impulsive” about shopping.
Why?
Upper-lower class women are likely to respond to
promotions offering coupons or other special inducements.
Why?
Members of the upper class prefer traditional home
furnishings. Why?
Social Class & Leisure
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Bowling, TV, and bingo are favorite lower-class leisure
pursuits. Why?
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Most activities enjoyed by middle- and upper-class people are
less time consuming than lower-class choices. Why?
Social Class & Advertising
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Lower-status consumers are more receptive to advertising
that depicts activity, ongoing work and life, expressions of
energy, etc. Why?
Upper-middle class consumers are more critical of
advertising, suspicious of emotional appeals, and skeptical of
claims. Why?
Social Class & (?)
http://www.youtube.com/watch?v=YeSC7j1vqe4&feature=relate
d
http://www.youtube.com/watch?v=hrwISyGSW0&feature=PlayList&p=039E34C814281921&playne
xt=1&playnext_from=PL&index=5
Status Symbols
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What matters is having more wealth/fame than others
Status-seeking: motivation to obtain products that will let
others know that you have “made it”
Problems with Social Class Segmentation
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Ignores status inconsistencies
Ignores intergenerational mobility
Ignores subjective social class
Ignores consumers’ aspirations to change class standing
Ignores the social status of working wives
Consumption Style
Chapter Summary
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Both personal and social conditions influence how we
spend our money.
We group consumers into social classes that say a lot
about where they stand in society.
A person’s desire to make a statement about social class
influences the products he likes and dislikes.