Social class and consumer

behavior
“ It is defined as division of members of a
society into a hierarchy of distinct status
classes, so that members of each class have
relatively the same status.
 Measurement of Social Class
Often Measured in Terms of Social Status
To estimate social class, status factor i.e.
Relative wealth
Power
Prestige
are frequently used Products and Services.
 Max Weber Class Components
• Weber formulated a three-component theory of
stratification.
• Class”, Status” and Group power.
Weber saw political power as an interplay
between those components
He theorized that class position was determined
by a person’s skills and education, rather than by
their relationship to the means of production.
 The dynamics of social status
• It is a related concept based on consumption
A Five question status consumption
1. I would buy a product just because it has a status.
2. I am interested in new product with status.
3. I would pay more for a new product if it has
status .
4. The status of a product is irrelevant to me.
5. A Product is more valuable to me if it has some
snob appeal.
 Classification of a social class
• Social class is hierarchical and a form of segmentation
• Social class Categories
a. Two category social class
b. Three category(L.M,U
c. Four category(L,L-M,U-M,U)
d. Five category(L,L-M,M,U-M,U)
e. Six category((L-L,U-L,L-M,U-M,L-U,U-U)
f. Seven Category(RL-L,A lower group of people but not the
lowest, working class, MC, U-M,L-U,U-U)
g. Nine category social class (L-L,M-L,U-L,L-M,M-M,U-M,L-
U,M-U,U-U)
% Distribution of five category social- class

• Upper - 4.3
• U-M - 13.8
• M - 32.8
• L-M - 32.3
• L - 16.8
 The Social class mobility
• Upward Mobility
• Downward Mobility
 Selected consumer behavior application of
the social class
a. Friendship group
b. Shopping groups
c. Work groups
d. Virtual groups
e. Brand communities
f. Consumer action groups
g. Celebrities
 The family
• Concept
a. Nuclear
b. extended family
c. Single parent family
• Function of the family
a. Socialization(Children , adult and intergenerational )
b. Economic well being
c. Emotional support
d. Suitable family lifestyle
• Family life cycle
Selected consumer related reference groups

a. Friendship group
b. Shopping groups
c. Work groups
d. Virtual groups
e. Brand communities
f. Consumer action groups
g. Celebrities
 The family
Concept:
“ traditionally it is defined as two or more
persons related by blood, marriage, or
adoption who reside together.”
Family and house hold:
 The Family
Types of family:
• Married couple
• Nuclear family
• Extended family
• Ever-changing household spending pattern
• Socialization of family members
Consumer socialization of children:
Consumer socialization of children“ is the
process by which children acquire the, skill ,
knowledge, attitudes, and experience,
necessary to function as consumer”
Adult consumer socialization:
Intergenerational socialization:
Simple model of socialization process
Young person

Other family members Friends

Influence more expressive

Influence more basic values
attitudes/ behavior
behavior
•Moral /Religious principal
•Interpersonal skill • Style
•Dress/grooming standard • Fashion
•Manner & speech • Fads
•Educational motivation • “ In/Out
•Occupational & career goal • Acceptable consumer behavior
•Consumer behavior norms

Preadolescent Adolescent Teenager older

 Function of a family
• Economic well being
• Emotional support
• Suitable family life style
 Family decision making
• Key family consumption role
• Dynamics of husband – wife decision making
a. Husband dominated
b. Wife dominated
•
 The Eight role in family decision making
process
• Influencer
• Gatekeeper
• Decider
• Buyers
• Preparers
• Users
• Maintainers
• Disposers
 The expanding role of children in family decision making

Tactics use by children to influence their parents,

• Pressure tactics
• Upward appeal
• Exchange tactics
• Coalition tactics
• Ingratiating tactics
• Rational persuasion
• Inspirational appeal
• Consultation tactics
 Family life cycle
• Traditional FLC
Five stages:
a. Bachelorhood
b. Honeymooners
c. Parenthood
d. Post parenthood
e. Dissolution
Influence of culture on consumer behavior

• What is culture
“ It is defined as sum total of learned believes,
values, and customs that serve to direct the
consumer behavior of members of a particular
society “
• Culture is societies personality
• To study culture we needs to learn about, factors
such as food, language, religion, art, technology ,
work pattern, products, music, and other artifacts.
 Three level of subjective culture
• Supranational
• National
• Group
 Theoretical model of cultural influence on
behavior

Personality
traits
Cognitive believes

Attitudes
Subjective
culture
Behavioral
• Religion Behavior
Practice intention
• Ethnic
• Religious
• Linguistic
• National values
• Professional
• Organizational
• Group Social
norms
 Characteristics of culture
• Culture is learned
a. Formal learning
b. Informal learning
c. Technical learning

• Enculturation
• Acculturation
• Language and symbol
• Rituals
• Culture is shared
• Culture is dynamic
 The measurement of culture
• Content analysis
• Consumer fieldwork
• Value measurement survey instruments
Relationship between culture and subculture

Sub cultural Dominant Sub cultural

traits of south Indian traits of North
Indians in cultural Indians in India
trait
India
 Subcultures and Consumer behavior
• What is subculture
“ A Distinct cultural group that exist as an identifiable
segment within a larger more complex society”
Types of subculture:
• Religious, Hindu, Christian, Muslim, Jews,
• National, Indian , American, Pakistani, Arabian
• Geographic, Northern, Southern, Central Eastern
• Racial, Asian, African, American
• Age Teenagers, Xers, elderly
• SexMale, Female
• Occupation Bus driver, cook, professional, scientist
• Social Class Lower, middle, upper
 Sub cultural interaction
• At any given moment a consumer is a member
of more than one sub-cultural segment.
Example: a young, Asian, south-Indian living in
eastern part of the country
• It is important that marketers know and understand how the
multiple sub-cultural interaction take place to influence the
target consumers relevant consumption behavior.

Promotional strategies should not be limited to target a

single sub-cultural membership
 Cross cultural consumer behavior-an
international perspective
• The imperative to be multinational
• Acquiring exposure to other culture
• Country of origin affects
COD,COA,COP
 National identity

Belief structure

Cultural
homogeneity National identity National heritage

Ethnocentrism
 Cross cultural consumer analysis
• Cross cultural consumer analysis
a. Similarities and difference among people
• The growing global middle class
a. The global teen age market
• Acculturation a must to start with and succeed
• Distinct characteristics of cross cultural analysis
a. Applying research techniques
 Alternative Multinational Strategies
Global Vs Local
• Favoring a world brand
• Are global brands different
Three characteristics of global brands
a. Quality signal
b. Global myth
c. Social responsibility
 Alternative Multinational Strategies
Global Vs Local
• Global brand extension and consumer
reaction
• Adaptive global marketing
• Combining global and local strategies
Cross cultural psychographic segmentation

Segments: Mkt Size Description

• Strivers 23% Materialistic, ambitious,

• Dvouts 22% Traditional value self content

• Altruist 18% Social issues and causes

• Intimates 15% Inward family, focus on relationship

• Fun-seekers 12% Excitement, adventure, pleasure

• Creatives 10% Technology, Knowledge & learning