An Assignment

On
Social Class and Consumer
Behavior
(CHAPTER - 11)
Date of Submission: 09 / 05 / 2014
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Submitted to:
Mohammad Solaiman
Assistant Professor
Department of Marketing
Comilla University
Submitted by:

Name D NO
Md! "ai#ul $a%ue &'()(*(*
Md! Alauddin Sarker &'()(*(+
"ar#ana Akter ,aki &'()(*&-
Sudipta Shaha &'()(*(-
Md! Mokaddas &'()(*))
Anirban Chanda &'()(*&.
2
/able of 0ontent
Social Class and Consumer
Behavior
Description
Chapter Summar
!ntroduction
"hat is Social class
The #easurement o$ Social Class
%i$estle Pro&les o$ the Social Classes
Social Class #o'ilit
(eodemo)raphic clusterin)
The A*uent Consumer
#iddle Class Consumers
The "or+in) Class and ,ther -on a*uent
consumers
#iddle Class Consumer
The Arrival o$ The .Techno-Class/
Selected Consumer Behavior Applications
o$ Social Class
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Executive Summary
Social stratification, the division of members of a society into a hierarchy of distinct social
classes exists in all societies and cultures. Social class usually is defined by the amount of
status that members of a secific class ossess in relation to members of other classes. Social!
class membershi often serves as a frame of reference "a reference #rou$ for the
develoment of consumer attitudes and behavior.
%he measurement of social class is concerned &ith classifyin# individuals into social!class
#rouin#s. %hese #rouin#s are of articular value to mar'eters. &ho use social classification
as an effective means of identifyin# and se#mentin# tar#et mar'ets. %here are three basic
methods for measurin# social class( sub)ective measurement, reutational measurement and
ob)ective measurement. Sub)ective measures rely on an individual*s ercetions of others and
ob)ective measures use secific socioeconomic measures either alone " as a sin#le + variable
index$ or in combination &ith others " as a comosite!variable index$ ,omosite variables
indexes such as the index of status. ,haracteristics and the socioeconomic status score ,
combine a number of socioeconomic factors to form one overall measure of social!class
standin#.
,lass structures ran# from t&o!class to nine class systems. - fre.uently used classification
system consists of six classes/ 0er! 0er, 1o&er!0er, 0er!2iddle, 1o&er!2iddle,
0er!1o&er, 1o&er!1o&er class. 3rofiles of these classes indicate that the socioeconomic
differences amon# classes are reflected in differences in attitudes, in leisure activities and in
consumtion habits. %his is &hy se#mentation by social class is of secial interest to mar'ets.
4n recent years, some mar'eters have turned to #eo!demo#rahic clusterin# as an alternative
to a strict social!class tyolo#y. 5eo!demo#rahic clusterin# is a techni.ue that combines
#eo#rahic and socioeconomic factors to locate concentrations of consumers &ith articular
characteristics 3articular attention currently is bein# directed to affluent consumers &ho
reresent the fastest!#ro&in# se#ment in our oulation( ho&ever, some mar'eters are
findin#s it extremely rofitable to the needs of non!affluent consumers.
6esearch has revealed social!class differences in clothin# habits, home decoration and leisure
activities as &ell as savin# sendin# and credit habits. %hus astute mar'eters tailor secific
roduct and romotional strate#ic to each social tar#et se#ment.
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Some form of class structure or social stratification has existed in all societies throu#hout the
history of human existence. 4n contemorary societies, an indication that social class exist is
the common reality that eole &ho are better educated or have more resti#ious occuation
such as hysicians and la&!years often are more hi#hly valued then those &ho are truc'
drivers and farmhands. %his is so even throu#h all four occuations are necessary for a
society*s &ell!bein# . 2oreover, as &ill be discussed later a &ide ran#e of differences in
values, attitudes, and behavior exists amon# members of different social classes.
%he ma)or toics that &ill be exlored in this discussion are a definition of social class and
ho& it is measured , lifestyle rofiles of the social classes, Social class mobility , #eo
demo#rahic clusterin# the affluent and non!affluent consumers, the resence of a techno
class, and ho& social!class!lin'ed attitudes and behavior influence selected asects of
consumer behavior.
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-lthou#h social class can be thou#ht of as a continuum! a ran#e of social ositions on &hich
each member of society can be laced! researchers have referred to divide the ,ontinuum
into a small numbers of secific social classes or strata. Social class is defined as the 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 members of all other classes have either more or less
status.
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%o measurin# social class and social status that is they define each social class by the amount
of status the members of that class have in comarison &ith members of the social classes. 4n
social research " sometimes called social stratification$ status is fre.uently thou#ht of as the
relative ran'in#s of members of each social class in terms of secific status factors.
%o secure an understandin# of ho& status oerates &ithin the minds of consumers,
researchers have exlored the idea of secial comarison theory. -ccordin# to this social
sycholo#ical concet, individuals .uite normally comare their o&n materials ossessions
&ith those o&ned by others in order to determine their relative social standin#. %his is
esecially imortant in a mar'etin# society &here status is often associated &ith consumers*
urchasin# o&er " or ho& much can be urchased$.
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- related concet is status consumtion! &hich is the rocess by &hich consumers endeavor
to increase their social standin# throu#h consicuous consumtion and ossessions. - number
of research studies validated a status consumtion scale.
%he develoments of such measures are imortant, for as the mar'et for luxury or status
roducts continues to #ro&, there is an even #reater need for mar'eters to identify and
understand &hich consumers esecially see' out such status! enhancin# ossessions, as &ell
as the relationshi bet&een status consumtion and social class.
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%he hierarchical asect of social class is imortant to mar'eters. ,onsumers may urchase
certain roducts because these roducts are favored by members of either their o&n or a
hi#her social class, and consumers may avoid other roducts because they erceived the
roducts to be :lo&er class; roducts. %hus the various social!class strata rovide a natural
basis for mar'et se#mentation for many roducts and service. 4n many instance, consumers*
researchers have been able to relate asects of roduct usa#es to social class membershi

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4n the sub)ective aroach to measurin# social class, individuals are as'ed to estimate their
o&n social!class ositions. %he resultin# classification of social!class membershi is based on
the articiants* self!ercetions or self!ima#e, social class is treated as a ersonal
henomenon, one that reflects an individual*s sense of belon#in# or identification &ith others.
%his feelin# of social!#rou membershi is often referred to as class consciousness.
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T2o cate)or social-class schemas
<lue collar, &hite collar
1o&er uer
1o&er middle
Three cate)or social-class schemas
<lue collar, #ray collar, &hite collar
1o&er, middle, uer
3our cate)or social-class schemas
1o&er, lo&er!middle, 0er! middle, 0er
3ive cate)or social-class schemas
1o&er, &or'in# class, lo&er middle, uer!middle, uer
1o&er, 1o&er!middle, middle, uer!middle, uer
Si4 cate)or social-class schemas
1o&er!lo&er, 0er!lo&er, 1o&er!middle, 0er!middle, 1o&er! uer, 0er!uer
Seven cate)or social-class schemas
6eal lo&er!lo&er ,a lo&er #rou of eole but not the lo&est &or'in# class middle class
uer!middle, lo&er!uer, uer!uer
-ine cate)or social-class schemas
1o&er!lo&er, middle! lo&er, uer=lo&er, lo&er! middle, 2iddle! middle, 0er!
middle , 1o&er!uer, 2iddle!uer, 0er!uer
Social classes Percenta)e
0er 4.3
0er!middle 13.9
2iddle 32.9
>or'in# 32.3
1o&er 17.9
%otal ercenta#e 100.0
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%he reutational aroach for measurin# social class re.uires selected community informants
to ma'e initial )ud#ment*s concernin# the social class membershi of others &ithin the
community. %he final tas' of assi#nin# community members to social class ositions
ho&ever, belon#s to the trained researcher.

?b)ective measures of social class fall into t&o basic cate#ories sin#le +variable indexes and
comosite variable indexes.
,ccupation1 ?ccuation is a &idely acceted and robably the best documentation
measure of social class because it reflects occuational status. %he imortance of occuation
as a social class indicator is dramati@ed by the fre.uency &ith &hich eole as' others they
meet for the first time . 2ore imortant mar'eters fre.uently thin' in terms of secific
occuations &hen definin# a tar#et mar'et for their roducts
Education1 %he level of erson*s formal education is another commonly acceted
aroximation of social class standin#. 5enerally sea'in# the more education a erson has
the more li'ely it is that the erson is &ell aid and has an admired or resected osition.
!ncome1 4ndividual or family income is another socioeconomic variable fre.uently used to
aroximate social class standin#,
,ther varia'les1 Auality of nei#hborhood and dollar value of residence are rarely
used as sole measures of social class.
The 5pper 6 upper class---Countr clu' Esta'lishment
Small number of &ell!established families.
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<elon# to best country clubs and sonsor ma)or charity events.
Serve as trustees for local colle#es and hositals.
3rominent hysicians and la&yers.
2ay be heads of ma)or financial institutions o&ners of ma)or lon# established forms.
-ccustomed to &ealth, so do not send money consicuously.
The lo2er 6 upper class- -e2 2ealth
Bot .uite acceted by the uer crust of society.
6eresent : Be& 2oney ;
Successful business executives.
,onsicuous users of their ne& &ealth.
The 5pper middle class- Achievin) pro$essionals
Cave neither family status nor unusual &ealth.
,areer oriented.
Doun# successful rofessional*s cororate mana#ers and business o&ners.
2ost are colle#e #raduates, many &ith advanced de#rees.
-ctive in rofessional, community and social activities.
Cave a 'een interest in obtainin# the : <etter thin#s in life ;.
%heir income serves as symbols of their achievements.
,onsumtion is often consicuous.
Eery child oriented.
The %o2er middle class- 3aith$ul 3ollo2ers
3rimary non mana#erial &hite collar &or'ers and hi#hly aid blue + collar &or'ers.
>ant to achieve resectability and be acceted as #ood citi@ens.
>ant their children to be &ell behaved.
%end to be church#oers and are often involved in church sonsored activities.
3refer a neat and clean aearance and tend to avoid faddish or hi#hly styled clothin#.
,onstitute a ma)or mar'et food + it your self!roducts.
The 5pper lo2er class- securit minded ma7orit
%he lar#est social class se#ments.
Solidly <lue collar.
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Strive for security "Sometimes #ained from union membershi$.
Eie& &or' as a means to : <uy : en)oyment.
>ant children to behave roerly.
Ci#h &a#e earners in this #rou may send imulsively.
4nterested in items that enhance their leisure time.
Cusbands tyically have a stron# : macho; self!ima#e.
2ales are sorts fans, heavy smo'ers beer drin'ers.
The %o2er- lo2er class- Roc+ Bottom
3oorly educated uns'illed laborers
?ften out of &or'
,hildren are often oorly treated.
%end to live a day to day existence.
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4n recent years , traditional social class measures have been enhanced by lin'in# consumer
related 5eo!demo#rahic and socioeconomic data to create more o&erful #eo!
demo#rahic ,lusters . %he underlyin# rationale for demo#rahic ,lusterin# is that birds of a
feather floc' to#ether. %his is to say that families of similar socioeconomic bac'#rounds tend
to reside in the same nei#hborhoods or communities! that is they cluster to#ether.
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4t is not easy to define the boundaries of &hat is meant by : 2iddle ,lass : -lthou#h the
0.S. <ureau of the census does not have a definition of middle class there have nevertheless
been many attemts to define it. For instance :2iddle 2ar'et; has been defined as the
:2iddle; 50 ercent of household incomes!%hat is about 57 million household earnin#
bet&een G22.500 and G 90.000. Still another definition of : 2iddle ,lass : environment
house hold comosed of colle#e!educated adults &ho in some &ay use comuters to ma'e a
livin# , are involved in their children*s education and are confident that they can maintain the
.uality of their familyHs life.
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Clothin) 8 $ashion8 and shoppin)
2embers of secific social classes differ in terms of &hat they consider fashionable or in
#ood test. For instance , lo&er middle class consumers have a stron# reference for: %!
shirts;, cas, and other clothin# that offer an external oints of identification, such as the
name of an admired erson or #rou a resected comany or brand name, or a valued
trademar' . these consumers are rime tar#ets for licensed #oods . 4n contrast , uer + class
consumers are li'ely to buy clothin# that is free from such suortin# association. uer +
class consumers also see' clothin# &ith a more suitable loo'.
The pursuit o$ leisure1
Social + class membershi is also closely related to the choice of recreational and leisure +
time activities. For instance uer +class consumers are li'ely to attend the theater and
concerts to lay brid#e and to attend colle#e football #ames. 1o&er class consumers tend to
be avid television &atchers and fishin# enthusiasts. and they en)oy drive in movies and
baseball #ames . Furthermore the lo&er class consumers sends more time on commercial
tyes of activities " bo&lin#, layin# ool or billiards or visitin# taverns$ and craft activities
" model buildin# , aintin#, and &ood &or'in# ro)ect rather than cerebral activities
" 6eadin#, visitin#, museums$. 4n any case, &hether &e are describin# middle!class or
&or'in# class consumers, there brin# the family to#ether "family vacations or activities$ and
less sendin# on thin#s.
Savin)8 spendin)8 and credit
Savin# , sendin# and credit usa#e all seem to be related to social class standin# uer class
consumers are more future oriented and confident of their financial acumen, they are more
&illin# to invest in insurance , stoc's and real estate. 4n comarison , lo&er!class consumers
are #enerally more concerned &ith immediate #ratification ( &hen they do save they are
rimarily interested in safety and security.
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,onsumer as erson he reresent the social class. <ehavior of consumer is the main factor of
the mar'et. 4t also reflects to the economy, olitics, cultural, reli#ious and business. So &e
should consider the social class accordin# to their behavior. 4n the mar'etin# arena consumer
behavior mentioned or chan#in# about the olicy of or#ani@ation, roduct .uality , ricin#
strate#y because it should decide &hat &ill be the future of the or#ani@ation. ,onscious
or#ani@ation thin' about their buyer, &hat they exect from or#ani@ation. 4t*s all about
deends on consumer behavior. %here it have classification of society &hich ma'e the real
mar'et of roduct. Bo& Social mar'etin# is the best concet of the &orld. 4t should chan#e
the attern of #lobal mar'et.
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