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ROLE OF SOCIAL CLASS

IN CONSUMER

BUYING BEHAVIOUR

Those activities directly involved in obtaining ,

consuming and disposing of products

and services, including the decision making

processes.

What do we mean by Consumer

Behavior

Refers to the buying behavior of people who buy goods and services for personal use.

These people make up the consumer market.

Cultural FactorsCulture and Subculture

Social FactorsSocial Class, Reference Groups, Family, Roles and Status

Psychological FactorsMotivation, Perception, Learning, Personality and Attitude

Personal FactorsAge, Life Cycle, Occupation, Socio – Economic Condition, Lifestyle, Personality and Self Concept

Consumer Buying BehaviorFactors influencing consumer behavior:

SOCIAL ANDGROUP FORCESCultureSubcultureSocial ClassReference GroupsFamily

PSYCHOLOGICAL FORCESMotivationPerceptionLearningPersonalityAttitude

Buying Decision ProcessNeed recognition

Identification of alternatives

Evaluation of alternatives

Purchase and related decisions Post purchase behaviour

Self-Concept & Lifestyle(A.I.O)

Needs

Desire

Experience & Acquisitions

Experience & Acquisitions

Situational Factors

Commercial and Social Sources

Social Class A division of members of a society into a hierarchy of

distinct status classes, so that members of each class have relatively the same status and they share almost similar values, interests, behaviors, attitude and possessions and can be differentiated from other members

People within a social class tends to exhibit similar buying behavior and can be measures by:

Occupation

Income

Education

Wealth

Social Status is frequently thought of as the relative rankings of members in terms of specific status factors i.e. wealth, power, and prestige.

The Social Class System•Th

e Upper Class (Old & New Wealth)

•The Lower Upper Class (Newly Rich)

The Upper Class (2%)

•Upper Middle (12%): Moderately successful business people, professionals, new social elite, Corporate

•Lower Middle ( 32%): White collar workers, technicians, small business owners

The Middle Class (32%)

•Blue-collar workers who make average pay and lead “working class lifestyles” regardless of school, job, income, and background (38%)

The Working Class (38%)

•Upper Lower Class: Working, not on welfare but having a living standard just above poverty

•Lower Lower Class: On welfare, usually out of work, visibly poverty-stricken.

The Lower Class (28%)

Social Influences on the Buying Decision Process:

1. Reference Groups

A reference group is a any person or group of people who significantly influences an individual’s behavior.

Reference groups are those with whom we interact and who influence our attitudes, values and behaviour.

Small reference groups establish norms that influence purchase decisions, and their word-of-mouth is considered to be more powerful than advertising and other commercial forces

Influence people by exposing them to new behaviors and lifestyles, influencing the person’s attitudes and self-concept because he or she wants to “fit in.” Creates pressures to conform that may influence the person’s product and brand choices

Primary Groups – a social aggregation that is sufficiently intimate to permit and facilitate unrestricted direct interaction. eg .Family

Secondary Groups – have direct interaction, but it is more sporadic, less comprehensive and less influential in shaping thought and behavior. e.g. Professional associations & community organizations

Formal Groups - defined structure, list of members & requirements for memberships

Informal groups – less structure and likely to be based on friendship or interests

Aspirational Groups - desire to adopt the norms, values, and behavior of others with whom the individual aspires to associate.

Dissociative Groups - groups from which an individual tries to avoid association.

Members of the buyer’s family can exercise a strong influence on the buyer’s behavior.

The family of orientation consists of one’s parents. From parents a person’s acquires an orientation towards religious, politics, and economics and a sense of personal ambitions, self –worth, and love. Even if the buyer no longer interacts very much with his or her parents, the parents influence on the unconscious behavior of the buyer can be significant.

In countries where parents continue to live with their children, their influence can be substantial. In case of expensive products and services, husband and wives engage in more joint decision making.

2. Family:

Family decision-makingprocesses

Autonomic - Equally shared decision-making

Husband-Dominant -Husband makes decisions

Wife-Dominant—Wife makes decisions

Syncratic—Decisions made jointly

3.Role & StatusA person belongs to many groups, family, clubs, organizations. The person’s position in each group can be defined in terms of both role and status.

A Role consists of the activities people are expected to perform according to the persons around them.

Social Status is frequently thought of as the relative rankings of members in terms of specific status factors i.e. wealth, power, and prestige.