Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal,...

Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & HawkinsSlides prepared by Dr Wayne Binney

15-1

Chapter 15: Social class

• Concept of social class• How social classes are measured• Measurement problems marketing managers face • The effect of social position on the consumption

process• How marketing managers can use their knowledge

of social stratification to develop marketing strategies


15-2

Social class

• Social class and consumption• Social class

– Cultural differences– Components of social class– Measurements of social class

• Social class and consumption differences– Global similarities– Segmenting the affluent

• Status symbols


15-3

Social standing and behaviour


15-4

Concept of social class

Traditional viewpoint assumes that social classes must meet the following criteria:

• Bounded• Ordered• Mutually exclusive• Exhaustive• Influential


15-5

Ads using affluent-looking models to attract higher-class consumers


15-6

Not all behaviours are unique


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Behaviour and social class

• Unique behaviours– Product: fine china– Situation: entertainment

e.g. Opera subscription

• Not all behaviours are unique:• Shared behaviours

– Situation: entertainment e.g. Football match


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Status crystallisation

• Degree of consistency on status dimensions– Occupation– Education– Income– Ownership

• Status crystallisation is low in Australasia


15-9

Social class in Australia*

• Upper class– 10% of population

• Middle class– 60%

• Lower class– 30%

*Source: ABS


15-10

The functional approach to social-class structure


15-11

The reputational approach to social-class structure


15-12

Positioning within social class


15-13

Upward-pull strategy targeted at the middle class


15-14

Ad aimed at repositioning the meat pie to a different social class


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Measurement of social class

• Single-item indexes– E.g. education– E.g. occupation

• Multiple-item indexes– E.g. Hollingshead Index of Social Position


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Occupations of the employed Australia


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Occupations of the employed New Zealand


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Measurement of social class and its application to marketing strategy

• Uses:– Differences in product consumption

instant coffee snack foods imported wine


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Income

Income has been used as a measure of status• Poses a number of measurement problems

– Individual or family income?– Income before or after taxes and allowances?– Salary or total income?


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Multiple-item indexese.g. Hollingshead's Index

• Two-item index using occupation and education• Designed or measure overall a family’s overall

position in societyExceptions could arise from someone with:– Only secondary schooling and running a successful

small-medium business– Doctor or lawyer working with charities


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Consumption differences across the Hollingshead Index of social position strata


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Which scale to use?

• No one scale is suitable for measuring all status dimensions

Hollingshead’s multi-item index could be used for measuring personal status in a study of opinion leadership

Studies of intellectually oriented activities, e.g. magazine subscription & TV viewing could consider using education

Occupation could be used for studies on leisure-time pursuits


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Social class and marketing strategy

• Relate status variables to product consumption– Usage, motivation, symbolic meaning

• Target social status– Actual lifestyle, desired lifestyle, media, etc.

• Develop product position– Select desired position (based on actual/desired lifestyle)

• Marketing mix decisions– Develop mix


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Using social stratification to develop marketing strategy


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Individual’s income may be more restricting than purchase motivation for target market appeal


15-26

Next Lecture

Chapter 16:Culture and Cross-Cultural Variations in Consumer Behaviour

Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal,...

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