Chapter 10(1)

The Family and Its Social Class StandingBMAKT3101 | Consumer BehaviourBMAKT3101 | Consumer Behaviour

Prepared by Noraizan Abdul Rashid

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Learning Objectives

1. To Understand the Changing Nature of U.S. Families, Including Their Composition and Spending Patterns.

2. To Understand the Socialization Process

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2. To Understand the Socialization Process and Other Roles of the Family.

3. To Understand the Dynamics of Husband-Wife Decision Making, as Well as the Influence of Children in Family Consumption Decision Making.

2Copyright 2010 Pearson Education, Inc.Chapter Ten Slide



Learning Objectives (continued)

4. To Understand How Traditional and Nontraditional Family Life Cycles Impact Consumer Behavior.

5. To Understand What Social Class Is and


5. To Understand What Social Class Is and How It Relates to Consumer Behavior.

6. To Understand the Various Measures of Social Class and Their Role in Consumer Behavior.





7. To Appreciate the Distinctive Profiles of Specific Social Class Groupings.

8. To Understand the “Ups and Downs” of Social Class Mobility.


Social Class Mobility.

9. To Understand the Relationship Between Social Class and Geodemographic Clusters.

10. To Understand the Affluent Consumer.





11. To Understand the Middle-Class Consumer.

12. To Understand the Working Class and Other Nonaffulent Consumers.


Other Nonaffulent Consumers.

13. To Understand the Nature and Influence of the “Techno-Class.”

14. To Understand How Social Class Is Used in Consumer Research Studies.




As You See It, What Is the Main “Family Message” of This Ad?

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It Reminds Parents of the Importance of Creating “Quality

Time.”


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The Changing U.S. Family

• Types of families

– Nuclear

– Extended

– Single-parent


– Single-parent

• Changes in household spending patterns




Evidence of the Dynamic

Nature of U.S.

Households -Figure 10-2


Figure 10-2




Consumer

Socialization

The process by which

children acquire the

skills, knowledge, and


Socializationskills, knowledge, and

attitudes necessary to

function as consumers.




What Is the Name and Definition of the Process Depicted in

This Ad?


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BMAKT3101 | Consumer BehaviourConsumer Socialization - the Process by Which

Children Acquire the Skills, Knowledge, Attitudes,

and Experiences Necessary to Function as

Consumers


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Other Functions of the Family

• Economic well-being

• Emotional support

• Suitable family lifestyles


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Family Decision Making

• Dynamics of Husband-Wife Decision Making

– Husband-Dominated

– Wife-Dominated


– Wife-Dominated

• Expanding Role of Children In Family Decision Making

– Choosing restaurants and items in supermarkets

– Teen Internet mavens

– Pester power




The Family Life Cycle

• Traditional Family Life Cycle

– Stage I: Bachelorhood

– Stage II: Honeymooners

– Stage III: Parenthood


– Stage III: Parenthood

– Stage IV: Postparenthood

– Stage V: Dissolution

• Modifications - the Nontraditional FLC




To Which Stage of the Family Life Cycle Does This Ad Apply,

and Why?


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Bachelorhood – The Target Consumer Is Not Yet Married


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Nontraditional FLC Family Stages

Alternative FLC Stage Definition/Commentary

Childless couples Increasingly acceptable with more career-oriented married women and delayed marriages

Couples who marry later in life Likely to have fewer or no children

Couples with first child in late 30’s or Likely to have fewer children. Want


Couples with first child in late 30’s or later

Likely to have fewer children. Want the best and live quality lifestyle

Single parents I High divorce rate - about 50% lead to this

Single parents II Child out of wedlock

Single parents III Single person who adopts

Extended family Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.




Social Class

The division of

members of a society

into a hierarchy of

distinct status classes,

so that members of


Social Class so that members of

each class have either

higher or lower status

than members of other

classes.



BMAKT3101 | Consumer BehaviourSocial Class Measure and DistributionTable 10.8

SOCIAL CLASSES and PERCENTAGE

Upper 4.3%


Upper-middle 13.8%

Middle 32.8%

Working 32.3%

Lower 16.8%

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Social Class Measurement

• Subjective Measures

– individuals are asked to estimate their own social-class positions

• Objective Measures


• Objective Measures

– individuals answer specific socioeconomic questions and then are categorized according to answers



BMAKT3101 | Consumer BehaviourObjective Measures

Single-variable indexes

• Occupation

Composite-variable indexes

• Index of Status


• Occupation• Education• Income

• Index of Status Characteristics

• Socioeconomic Status Score

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Discussion Questions

• What are the advantages to a marketer using the objective method to measure social class?

• When would the subjective or reputational


• When would the subjective or reputational method be preferred?




Social Class Mobility

• Upward mobility

• Downward mobility

• Rags to riches?

ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide24Copyright 2010 Pearson Education, Inc. 24

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Geodemographic

Clusters

A composite

segmentation

strategy that uses

both geographic

variables (zip codes,

neighborhoods) and


Clustersneighborhoods) and

demographic

variables (e.g.,

income, occupation)

to identify target

markets.



BMAKT3101 | Consumer BehaviourPrizm ClustersFigure 10.10a, b


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The Affluent Consumer

• Growing number of households can be classified as “mass affluent” with incomes of at


incomes of at least $75,000

• Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income 27Copyright 2010 Pearson Education, Inc.

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The Affluent Consumer

Three Segments of Affluent Customers’ Customers’ Average Household Expenditures - Figure 10.12




What Is the Middle Class?

• The “middle” 50 percent of household incomes - households earning between $25,000 and $85,000

• The emerging Chinese middle class


• The emerging Chinese middle class

• Moving up to more “near luxuries”

Copyright 2010 Pearson Education, Inc. 29Chapter Ten Slide



The Working Class?

• Households earning $40,000 or less control more than 30 percent of the total income in the U.S.

• These consumers tend to be more brand


• These consumers tend to be more brand loyal than wealthier consumers.




Discussion Questions

• What types of products are targeted to the working class?

• What issues must marketers consider when targeting their ads to the working


when targeting their ads to the working class?




The Techno Class

• Having competency with technology

• Those without are referred to as “technologically underclassed”

• Parents are seeking computer exposure


• Parents are seeking computer exposure for their children

• Geeks now viewed as friendly and fun




In What Ways Have the Prestige and Status of Geeks Been

Changing?


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The Change is Due to the

Importance of Computers.


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Consumer Behavior and

Social Class

• Clothing, Fashion, and Shopping

• The Pursuit of Leisure

• Saving, Spending, and Credit


• Saving, Spending, and Credit

• Social Class and Communication


Chapter 10(1)

Documents

Transcript of Chapter 10(1)