Social Class 15.10.09
-
Upload
goels-world -
Category
Technology
-
view
3.991 -
download
2
description
Transcript of Social Class 15.10.09
SOCIAL CLASS &
CONSUMER BEHAVIOR
Social ClassSocial ClassSocial Class may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
Social class is determined by:1. Occupation2. Income Level3. Heritage4. Educational attainment5. Possessions6. Associations or interactions 7. Level of Influence
Social Class Affects Access to Resources
Marx believed that position in society was determined by one’s relationship to the means of production.
Weber believed that rankings of people depended on prestige (status groups), power (party) and wealth (class)
Social Class Influence Social classSocial class represents an interesting way to look
at a market; influenced by such factors as education, occupation, and place of residence.
May be used as a basis for segmenting markets, and may reflect the aspirations of consumers.
Social classes exist whether people care to admit it or not; differences in beliefs and attitudes exist across class boundaries; and social class may be a better predictor of buyer behaviour than income.
3 Types of Social Influence
Conformity: a change in behavior to match the responses/actions of others (with no pressure necessarily).
Compliance: a change in behavior in response to a direct request.
Obedience: a change in behavior in response to a direct order from an authority figure.
Components of Social Class
Occupational Prestige: The “worth” of people based on what they do for a living
Income: Distribution of wealth is important to marketers because it
determines buying power and market potentialThe Relationship Between Income and Social Class:
Social class is a better predictor of purchases that have symbolic aspects but low to moderate price
Income is a better predictor of major expenditures that do not have status or symbolic aspects
Social class and income are both needed to predict purchases of expensive, symbolic products
Social Standing Influences Behavior
The Consumption Patterns of Specific Social Classes The Upper Class
The Middle Class White collar
The Working Class Blue collar
The Homeless Scavenging
The Social Class System
The UpperClass(2%)
• The Upper (Old Money)• The Lower (New Rich)
The Middle Class(45%)
• The Upper (12%)• Moderately successful business people, professionals
• The Lower (32%)•White collar workers, technicians, small business owners
The LowerClass(54%)
•The Upper (38%)•Blue collar (working class)
•The Lower (16%)•Unskilled, chronically unemployed, welfare poor
Advertisements Appealing to Different Classes
Advertisement Catering to Different Classes contd…
Advertisements Appealing to Different Classes Contd…
Contd..
Social Mobility
Social Mobility: The passage of individuals from one social class to another.
Horizontal Mobility: Movement from one position to another roughly equivalent in
social status.Downward Mobility:
Movement from one position to another position that is lower in social status.
Upward Mobility: Movement from one position to another position that is higher in
social status. Differential fertility: Middle class reproduce fewer children than
lower class.
Upward-Pull Strategy
Examples of mobility
Horizontal Mobility
Mobility
Upward mobility
Upward Shift
A good example can be the Maruti 800 Ad camp. Of Rs 2599 which appeals to all the two wheelers and the lower middle class people , who are looking for an upward mobility in Status moving from a scooter to a Car
Measuring Social Class
Problems with Measures of Social Class:Dated measures which are no longer valid Increasing anonymity of society
Reputational method: Extensive interviews within a community to determine reputations of individuals
Status crystallization: Assesses the impact of inconsistency on the self and social behaviorOverprivileged: Income is 25 to 30 percent greater than
one’s social class medianUnderprivileged: Income is 15 percent less than one’s
social class medianHierogamy: Physically attractive trend to “marry up”
Measuring Social Class (cont.)
Problems with Social Class Segmentation: A Summary:They have ignored status inconsistency.They have ignored intergenerational mobility.They have ignored subjective social class.They have ignored consumers’ aspirations to
change their class standing.The have ignored the social status of working
wives.
Income & Social Class
Overprivileged: Income is 25 to 30 percent greater than one’s social class median
Underprivileged: Income is 15 percent less than one’s social class median
ConsumptionSocial class better predictor of symbolic purchases with low
to moderate priceIncome better predictor of major expenditures that do not
have status or symbolic aspectsSocial class and income are both needed to predict purchases
of expensive, symbolic products
Income
.
Ability toBuy
Willingness to Buy
Consumer Demand
Market Potential
Discretionary income
The money available to a household over and above that required for a comfortable standard of living
Sociocultural InfluencesSociocultural InfluencesSociocultural influences, which evolve from a consumer’s formal and informal relationships withother people, can exert significant impact on consumerbehaviour. Sociocultural influences include:1. Personal influence2. Reference groups3. The Family4. Social Class5. Culture6. Subculture
BUYING-DECISION PROCESS
Need recognition
Identification of alternatives
Evaluation of alternatives
Purchase and related decisions
Postpurchase behaviour
INFORMATION
Commercialsources
Social sources
SITUATIONALFACTORSWhen consumers buyWhereconsumers buy
Why consumers buyConditions under whichconsumers buy
PSYCHOLOGICAL FORCESMotivationPerceptionLearningPersonalityAttitude
SOCIAL ANDGROUP FORCESCultureSubcultureSocial classReference groupsFamily and households
Copyright © 2000 McGraw Hill Ryerson Limited
Lifestyle & VALSLifestyle & VALSLifestyle is a mode of living that is identified by howpeople spend their time and resources (activities),
what they consider important in their environment(interests), and what they think of themselves and theworld around them (opinions).
Lifestyle analysis focuses on identifying consumerprofiles. The most prominent example of this type ofanalysis is the Values and Lifestyles (VALS) Programdeveloped by SRI International.
Social Stratification
Social Stratification:The artificial divisions of society “by which scarce and
valuable resources are distributed unequally to status positions that become more or less permanent” partly as a result of the distribution system itself.
Hegemonic processHow those currently in power distribute resources to stay in
power Dominance-submission hierarchy:
Each individual in the hierarchy is submissive to those higher in the hierarchy and is dominant to those below them in the hierarchy
Class Consciousness:May play a role ina firm’s operations
Social StratificationTypically defined by family background,
occupation, and income.Class:
some social mobilityCaste:
Virtually no mobility
It is the artificial division of society “by which scarce and valuable resources are distributed unequally to status positions, that become more or less permanent” partly as a result of the distribution system itself
Social Stratification
Functional Necessity of Stratification
In order to function, society must:
Motivate the proper members for proper positions
Motivate the persons filling these positions to do the required duties
Motivation is often based on rewards
Functional Necessity of Stratification
Types of rewards include:
things that contribute to SustenanceSustenance and ComfortComfort
things that contribute to HumorHumor and DiversionDiversionthings that contribute to Self-respectSelf-respect and Ego-Ego-
expansionexpansion
The differential distribution of those awards according to position are part of the social order and give rise to stratification
Nature of Social Class
It is a group consisting of a number of people who have approximately equal positions in a society
These positions may be
Ascribed, or inheritedAchieved, or earned
Characteristics of Social Class
A. Social Classes Exhibit Status Status refers to one’s rank in the social system, as
perceived by other members of the society
An individual’s status is a function of: social class to which he belongs personal characteristics, for example
scientist – employed in a prestigious research institute – earning Rs 2 lakh p.a.
scientist – employed by a small firm – earning Rs 75K p.a.
Characteristics of Social Class
personal contributions to society –– for example, a scientist discovering a breakthrough in laser technology
Factors Important in Determining Status are: Power Income Occupation Education Ancestry
Authority over others Ownership of Property Consumption Patterns
& Lifestyle Public Service Association
Characteristics of Social Class
B. Social Classes are Multidimensional
They are multidimensional, being based on numerous components
Income Occupation Housing
Characteristics of Social Class
C. Social Classes are Hierarchical
They have a vertical order to them, ranging from high status to low status
They exist as a position on the social scale
Individuals may be placed within a class on this hierarchy, based on status criteria
Characteristics of Social Class
D. Social Classes Restrict Behaviour
Interaction between the classes is limited because Most people are comfortable and find
reinforcement with people having similar values, lifestyles, educational backgrounds, occupations, income levels, and behaviour patterns
Members of the same social class tend to associate with each other, and to a lesser extent with members from other classes
Characteristics of Social Class
E. Social Classes are Homogeneous
They may be viewed as homogeneous divisions of society in which people within a class have similar attitudes, activities, interests, etc.
This homogeneity allows the marketers to predict that groups of people are exposed to similar media purchase similar products & services shop in similar stores
Characteristics of Social Class
F. Social Classes are Dynamic Social stratification systems in which people have some
opportunity for upward or downward movement are ‘Open Systems’ People in such systems have Achieved status
Social stratification systems in which people have either no opportunity for movement, or they are unable to leave are ‘Closed Systems’ People in such systems have Ascribed status
It occurs whenever people move across the social class boundaries, perhaps in their own life time or through generations, or from one occupational level to another
Downward Mobility: movement from one position to another position that is lower in social status
Upward Mobility: movement from one position to another position that is higher in social status
Inter-Generational Mobility: compares parents’ levels to that of their children
Social Mobility
In medieval society, Feudal and Caste societies were ‘closed’ - a person's position was largely based on ascribed characteristics (such as family origin, or ethnic group)
For example,Brahmin – teachers & priestsKshatriya – warriors & rulersVaisya – land owners & merchantsSudra – artisans & servants
such as potters, barbers, carpenters, leatherworkers, butchers, launderers, etc
Untouchables – Harijans or Dalits
Indian Society – ‘ Then ’
In today’s changing society, the caste inequalities exist and to some extent these ascribed characteristics are still socially significant
The classification is now done in three broad categories : Upper, Middle, Lower Classes
But in modern India greater emphasis is placed on Achievement, i.e. what people can do
This has paved a way for two more segments:
Working ClassTechno Class
Indian Society – ‘ Today ’
A] Working Class
More focused on immediate needs than long-term goals
Depend more heavily on relatives for emotional support
Orient themselves toward community rather than the world
More likely to be conservative and family oriented
B] Techno Class
Such structure centers around the amount of computer skills that a person possesses. Those who lack necessary computer skills find themselves to be “underclassedunderclassed” and “disadvantageddisadvantaged”
Degree of literacyliteracy, familiarityfamiliarity, and competencycompetency with technology, especially computers and the Internet, appears to be a new basis for a kind of “class class standingstanding”, or status or prestige
. . .
Consumers throughout the world believe that it is criticalcritical to acquire a functional understanding of computers in order to ensure that they do not become obsolete or hinder themselves socially or socially or professionallyprofessionally
Parents in all social-class groupings are seeking out early computer exposure for their children
At the other end of the life and age spectrum (i.e. 55-yr-old & above), professionals who were initially reluctant to learn computers, are now seeking personal computer training
Gadgets like iPods, camera phones and portable DVD players are must-have fashion accessories for kids, teens, and adults
Social Class Structure
Five–Category Social ClassesFive–Category Social Classes
Upper
Upper-Middle
Middle
Lower-Middle
Lower
Social Class Structure
Nine–Category Social ClassesNine–Category Social Classes
Upper-UpperUpper-MiddleUpper-Lower
Middle-UpperMiddle-MiddleMiddle-Lower
Lower-UpperLower-MiddleLower-Lower
Coleman and Rainwater Approach
Social-Psychological Approach :
based on personal and group prestigereflects how people interact with one another – as
equals, superiors, or inferiors
Class Identification
is influenced most heavily by educational educational credentials and occupationcredentials and occupation (including income as its success measure)
but, ultimately relates to a person’s social circle of person’s social circle of acceptanceacceptance
Upper-Lower
Upper-Middle
Middle
Working Class
Lower
Lower-Lower
Upper-Upper old family names
accepted new money
collegiate credentials expected
white-collar associations
blue-collar life style
below the mainstream
the welfare world
Coleman-Rainwater View
India follows a 5-Tier System
Consumer Group
Very RichConsuming ClassClimbersAspirantsDestitute
Annual Income
2,15,0002,15,000–45,000
45,000-25,00025,000-16,000
16,000 & Below
As per National Council of Applied Economic Research’s report, based on a national population that was estimated to be 900 million, it was revealed that
Very Rich, consist of about 6 millionConsuming Class, about 150 million people
(17%) and is expected to triple, reaching 450 million people by 2010
Climbers, about 275 million people (30%)Aspirants, about 275 million (30%)Destitute, estimated to be 210 million (23%)
Growing Indian Middle Class
Measurement of Social Class
Three Kinds of Measurement:
Subjective Measure – Based on the self perception
Reputational Measure – Based on consumption and behavior
Objective Measure – Based on demographic and socio-economic variables
Variables
Occupation IncomeEducationManners and styleOwnershipPoliticalPrestigeGenealogy
SocialClass
OccupationEducation Income Residence
Age of Head(s) of Household
Household Structure
Prestige Association Values
Operationalizing Household
Operationalizing Household Social Class
SocialClass
OccupationEducation Income Residence
Age of Head(s) of HouseholdHousehold Structure
Prestige Association Values
Social Structure
MobileManagers
Hard toBuild
Teams
Lackof
Loyalty
Entrepreneurship
Individual
Western
Lack ofEntrepreneurship
LifetimeEmployment
Identity
Group
Eastern
NonmobileManagers
Grouptwo or more individuals
with a shared sense of identity
Every Society
U.S.A.Embarrassed about it, ideal is equality & meritocracyIntergenerational mobility limited but possible
Western Europe: vestiges of aristocracy Central and South America
More dichotomized (2% control 95%) hegemony breaks down instability
Japan: Very hierarchical, large middle class
India: Caste system
China: “Classless”
Class vs. Caste
Achieved Versus Ascribed Status: Achieved status: Status earned through hard work or diligent study Ascribed status: Status one is born with
Social Mobility: Downward Mobility:
Movement from one position to another position that is lower in social status
Upward Mobility:Movement from one position to another position that is higher
in social statusDifferential fertility: Middle class reproduce less than
replacement value, allowing for upward mobility
India
A Caste SystemOccupation & MarriageBrahmin: teachers & priestsKshatriya: warriorsVaisya: merchantsSudra: dirty work
CASTE IN INDIABasis is kinshipAssociated occupationClearly separated, self-regulating groupsNo individual mobility in one lifetimeNo intercaste marriageReligious interpretation ranked by purity
Occupations and Class
All three dimensions of social stratification: class, status and authority are reflected in a person’s occupation.
Different occupations have different relations to the means of economic production…
Different levels of social status…And different levels of authority to
command.
CLASSBasis is economic: income, occupationAssociated lifestyleMobility is possible: downward and upward Interclass marriage is possibleClass at birth affects life chances: ability to fulfill one’s
potentialPersons in the same class more likely to associate with
each other, intermarry, have similar hobbies, tastes, political views
American mythology: open class system where all have equal opportunity to succeed