External Determinants of Buying Behavior

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EXTERNAL DETERMINANTS OF BUYING BEHAVIOR By: Astha Chand

Transcript of External Determinants of Buying Behavior

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EXTERNAL DETERMINANTS OF BUYING BEHAVIOR

By: Astha Chand

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CONTENTS Consumer Psychographics vs Demographics Group Dynamics & Consumer Reference Groups Family as Consuming Unit Social & Cultural Environment of Consumers Economic, Demographic, Cultural, Subcultural & Cross Cultural

Influences Social Class & Social Stratification

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CONSUMER PSYCHOGRAPHICSvs

DEMOGRAPHICS

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DEMOGRAPHICS Factors such as age, sex, education, income, marital status, family

size and social class, etc., are used singly, or in combination, to segment the market.

Eg: Toy manufacturers such as Funskool and Mattel toys segment the market on the basis of age of children.

Eg: Car manufacturers segment the market by considering income as an important varia.ble.

Eg: Producers of refrigerators, washing machines, microwave ovens, etc., take income and family size as important variables in segmenting the market.

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PSYCHOGRAPHICS A consumer psychographics is a profile of a potential consumr based

on interests, activities, attitude, lifestyle, values and opinions. It is a snapshot into consumer’s lifestyle organizations often use to

quickly identify potential costumers. Companies then can use these information to create and implement

highly targeted advertising campaigns

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GROUP DYNAMICS&

CONSUMER REFERENCE GROUPS

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WHAT IS A GROUP? A Group may be defined as two or more people who interact

to accomplish either individual or mutual goals.

Classification of Groups by membership status:1. MEMBERSHIP GROUP:

A group to which a person either belongs or would qualify for membership in.

2. SYMBOLIC GROUP:A group in which an individual is not likely to receive membership, despite acting like a member by adopting the group’s values, attitudes and behavior.

GROUP DYNAMICS:It refers to how individuals form groups and how one person’s purchasing influences the other person’s actions.

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REFERENCE GROUPS A Reference Group is any person or group that serves as point of

comparison (or reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior.

From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions.

1. NORMATIVE REFERENCE GROUP:Reference groups that influence general or broadly defined values or behavior.Eg: A child’s normative reference group is the immediate family, which is likely to play an important role in molding the child’s general consumer behavior (such as which food to select for good nutrition, appropriate ways to dress for specific occasions, how and where to shop, etc.,)

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2. COMPARATIVE REFERENCE GROUP:Reference group that serves as benchmarks for specific or

narrowly defined attitudes or behavior.Eg: A neighbouring family whose lifestyle appears to be admirable and worthy of imitation (the way they maintain their home, their choice of home furnishing and cars, their taste in clothing, or the number and types of vacations they take)

A BROADENED PERSPECTIVE OF REFERENCE GROUPINDIRECT REFERENCE GROUPS:Consists of those individuals or groups with whom a person does

not have direct face to face contact, such as movie stars, politicians, sports people etc.,

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FACTORS AFFECTING REFERENCE GROUPS

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1. INFORMATION & EXPERIENCE An individual who has first-hand experience with a product or service,

or can easily obtain full information about it, is less likely to be influenced by the advice or examples of others.

On the other hand, a person who has little or no experience with the product or service & does not expect to have access to objective information about it.

Eg: When a young corporate sales rep wants to impress his client, he may take her to a restaurant that he knows from experience to be good or to one that has been highly recommended by the local newspaper’s Dining Out Guide. If he has neither personal experience nor information he regards as valid, he may seek advice of a friend or a parent or imitate the behaviour of others.

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2. CREDIBILITY, ATTRACTIVENESS AND POWER OF THE REFERENCE GROUP

A reference group that is perceived as credible, attractive, or powerful can induce consumer attitude and behaviour change.

Eg: When consumers are concerned with obtaining accurate information about the performance or quality of a product or service, they are likely to be persuaded by those whom they consider trustworthy and knowledgeable. That is, they are more likely to be persuaded by source with high credibility.

When consumers are primarily concerned with the approval or acceptance of others, they like, they are likely to adopt their products, brands or other behavioural characteristics.

When customers are primarily concerned with the power that a person/group exerts over them, the might choose the product in order to avoid ridicule or punishment.

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3. CONSPICUOSNESS OF THE PRODUCT The potential influence of a reference group on a purchase decision varies

according to how visually or verbally conspicuous the product is to others. A Visually Conspicuous Product is one that will stand out and be

noticed.Eg: Luxury items & Novelty Products

A Verbally Conspicuous Product may be highly interesting or it may be easily described to others.

Products that are especially conspicuous and status revealing are more likely to be purchased with an eye to the reactions of relevant others. Eg: New automobile, fashion clothing, sleek laptop, etc.,

Privately consumed products that are less conspicuous are less likely to be purchased with a reference group in mind.Eg: Shaving Cream, Bath Soap, etc.,

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4. REFERENCE GROUP AND CONSUMER CONFORMITY Marketers may have divergent goals with regard to consumer

conformity. Some marketers, especially market leaders, are interested in the ability to reference groups to change consumer attitudes and behaviour by encouraging conformity.

To be capable of such influence, a reference group must accomplish the following:

1. Inform or make the individual aware of specific brand or product.2. Provide the individual with an opportunity to compare hi/her own

thinking with the attitudes & behaviour of the group.3. Influence the individual to adopt attitudes & behaviour that are

consistent with the norms of the groups.4. Legitimize the decisions to use the same products as the groups.

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SELECTED CONSUMER-RELATED REFERENCE GROUPS

1. Friendship Groups2. Shopping Groups3. Work Groups4. Virtual Groups or Committees5. Consumer Action Group

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1. FRIENDSHIP GROUPS

Typically classified as informal groups because they are usually unstructured and lack specific authority.

In terms of relative influence, after an individual’s family, his/her friends are most likely to influence the individual’s purchase decision.

Seeking and maintaining friendships is a basic drive of most people. Friends fill a wide range of needs: They provide companionship,

security, and opportunities to discuss problems that an individual may be reluctant to discuss with family members.

Eg: Marketers of products such as brand-name clothing, fine jewelry, snack foods, and alcoholic beverages recognize the power of peer group influence and frequently depict friendship situations in their advertisements.

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2. SHOPPING GROUPS Two or more people who shop together, whether for food, for clothing,

or simply to pass the time, can be called a shopping group. Such groups are often offshoots of family or friendship groups and

therefore, they function as what has been referred to as purchase pal. The motivation for shopping with a purchase pal range from a

primarily social motive (to share time together & enjoy lunch after shopping), to helping reduce the risk when making an important decision.

In-home shopping party: A special type of shopping group is the which typically consists of a group that gathers together in the same home of a friend to attend a “party” devoted to demonstrating and evaluating a specific line of products. The in-home approach provides marketers with an opportunity to demonstrate the features of their products to a group of potential customers.

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3. WORK GROUPS The sheer amount of time people spend at their jobs, frequently more

than 35 hours per week, provide ample opportunity for work groups to serve as a major influence on the consumption behavior of the members.

a) Formal Work Group: it consists of individuals who work together as part of a team, and thus have a sustained opportunity to influence each other’s consumption related attitudes and actions.

b) Informal Friendship-Work Group: it consists of people who have become friends as a result of working for the same firm, whether or not they work together as a team, and they can influence the consumption behavior of other members during coffee or lunch breaks or at after-work meetings.

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BRAND COMMUNITIES A Brand Community is a community formed on the basis of

attachment to a product or marquee. A Brand Community is a specialized, non-geographically bound

community, based on a structured set of social relationships among admirers of a brand.Eg: Harley Davidson Owners group (www.harleydavidson.com)

A group of runners who meet for a run (www.nike.com) Eg:Jeep

Jeep developed its brand community. Jeep (www.jeep.com) conducts Jeep Jamborees (regional rallies that concentrate on off-road driving), Camp Jeep (national rallies offering off road driving and product related activities), and Jeep 101 (an off road driving course with product related activities and displays).The result is that Jeep has fostered involvement in its brand community so that the bond exists b/w the Jeep owner and (1) the product, (2) the brand, (3) the company, (4) other Jeep ownners.

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4. VIRTUAL GROUPS OR COMMUNITIES

A virtual team (also known as a geographically dispersed team or distributed team) is a group of individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology.

Powell, Piccoli and Ives define virtual teams in their literature review article "as groups of geographically, organizationally and/or time dispersed workers brought together by information and telecommunication technologies to accomplish one or more organizational tasks.”

Eg: If you are a stamp collector you can chat online with others who share your interest.

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5. CONSUMER ACTION GROUP A particular kind of consumer group-A Consumer Action Group-has

emerged in response to the consumerist movement. Today there are a large number of such groups that are dedicated to providing consumer products in a healthy and responsible manner, and to generally add to the overall quality.

Consumer Action Group can be divided into 2 categories:a. Those that organize to correct the specific consumer abuse & then

disbandb. Those that organize to address broader, more persuasive areas &

operate over an extended or indefinite period of time. Eg: Temporary, Cause-Specific Consumer Action Group

A group of irate parents who band together to protest the opening of an adult x-rated video rental store in their neighbourhood.

Eg: Enduring Consumer Action Group Mothers Against Drunk Drive (MDDA) representatives serve on numerous public advisory board and help local task force combat drunk driving.

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CELEBRITY AND OTHER REFERENCE GROUP APPEALS

Appeals made by celebrities and other reference groups are used very effectively by advertisers to communicate with the markets.

Five major types of Reference Group Appeals are:1. Celebrity Appeal2. Expert Appeal3. Common Man Appeal4. Executive & Employee Appeal5. Trade or Spokes-Character Appeal

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1. CELEBRITY APPEAL

A celebrity is a person who has a prominent profile and commands a great degree of public fascination and influence in day-to-day media. The term is often synonymous with wealth (commonly denoted as a person with fame and fortune), implied with great popular appeal, prominence in a particular field, and is easily recognized by the general public.

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2. EXPERT APPEAL

A person because of his/occupation, special training, or experience is in a unique position to help the prospective consumer evaluate the product or service that the advertisement promotes.

Eg: An ad for a quality frying pan may feature the endorsement of a chef

Eg: Doctor promoting Sensodyne Toothpaste

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3. COMMON MAN APPEAL

A reference group appeal that uses the testimonials of satisfied customers is known as the common-man approach.

The advantage is that it demonstrates to prospective customers that someone just like them uses and is satisfied with the good or service being advertised.

The common man appeal is especially effective in public health announcement (such as antismoking or high B.P. messages), for most people seem to identify with people like themselves when it comes to such messages.

Slice-of-life commercials: They focus on real life situations with which the viewer can identify.

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4. EXECUTIVE & EMPLOYEE APPEAL

The firms have used their top executives as spokesperson in consumer ads. The popularity of this type of advt. probably is due to the success and publicity received by a number of executive spokespersons.

Like celebrity spokespersons, executive spokespersons seem to be admired by the general population because of their achievements and the status implicitly conferred on business leaders.

Eg: Pawan Goenka, President of Mahindra & Mahindra Ltd’s automotive division, in a recent TV ad.

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5. TRADE OR SPOKES-CHARACTER APPEAL

Trade or Spokes-Character as well as familiar cartoon character serves as quasi celebrity endorsers.

These trade spokesperson present an idealized image & dispense information that can be very important for the product or service that they work for.

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FAMILY AS CONSUMING UNIT

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WHAT IS A FAMILY?Family

is defined as a group of two or more people (one of whom is a householder) related by birth, marriage or adoption and residing together

family comprises of: Parents Siblings Spouse Grandparents Relatives (Cousins/Aunts, Uncles etc)

All families are households but all households are not families

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Household: Is a family and any unrelated person residing in the same house

and consuming food from a common kitchen at least once a day.

Two types of household: Family Household Institutional Household e.g.. Hostel

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TYPES OF FAMILY Family of OrientationThe family of orientation is the family you were born into involuntarily.

Consist of one’s parents and elders Provides orientation towards

Social: Religion, Politics, Economics Emotional: Self Worth, Ambition, Love and Care

Family of ProcreationFamily of procreation refers to the family you create through marriage

and by having or adopting children. Consist of one’s spouse and children Most important buying unit in a market

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Traditional Family Types: Married Couple:

Simplest type of family consisting of husband and wife Nuclear Family:

Consist of Husband Wife and at least one child Extended Family:

Consist of a nuclear family with at least one grand parent

Joint Family: Blood relatives and their spouses with kids staying

together

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New Modes of Family Blended Family:

A family in which either or both partner were previously married

Single Parent Family:A family in which only one of the parent is present

Unmarried Family:Parents, unmarried, but living together

Communal Family:A group of families living together and sharing

responsibility

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SOCIALIZATION OF FAMILY MEMBERS

The socialization of family members, ranging from young children to adults, is a central family functions

CONSUMER SOCIALIZATION OF CHILDREN It is a process by which the children acquires the skills, knowledge,

attitudes and experiences necessary to function as consumers

Some of them acquires their consumer behavior norms through observations of their parents and older siblings who function as a role models and sources of cues for basic consumption learning

ADULT CONSUMER SOCIALIZATION This process is not confined to childhood ,but is a ongoing process. This process begins from the childhood and extends throughout a

persons entire life.

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Intergenerational socialization- It appears that it is quite common for certain product loyalty and

brand preferences which is been transferred from one generation to other

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MODEL OF THE SOCIALIZATION PROCESS

Influence More BasicValues/Behavior• Moral/religious principles• Interpersonal skills• Dress/grooming standards

• Manners and speech• Educational motivation• Occupational career goals

• Consumer behavior norms

Influence More Expressive

Attitudes/Behavior

•Style•Fashion•Fads•“In/Out”•Acceptable consumer behavior

Other Family Members Friends

Young Person

Preadolescent Adolescent Teens Older

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FUNCTIONS OF A FAMILY Provides Economic Well Being Provides Emotional Support Provides Suitable Life Style Provides Social Relationships Provides Morals and Ethical Values Provides Religious Values Provides Interpersonal Skills

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FAMILY LIFE CYCLE

Stage 1 :Bachelorhood Consists of young and single men and women who have establish households apart

from their partners Maybe employed, some in college or graduated students who have left their parents

home Few Financial Burdens Fashion and Recreation Oriented

Stage 2: Newly Married Couple Consists of a married couple with one child Financially better off Highest purchase rate of consumables and durables Romantically inclined Household applications ,bedroom and living room furniture etc.

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Stage 3 : Parenthood Elementary school stage

Youngest child < 6 years of age Low Liquid Assets High purchase of baby food & baby oriented products

High school stage Youngest child >= 6 years of age Financially better off

College Phase All children still financially dependent High family influence on purchases Major expense on higher education

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Stage 4: Post Parent Hood Head of the family in labor force No Dependent Children Expenditure in self development

Stage 5 :Dissolution : Solitary Survivor – I

Single Surviving head of family in labor force Supported by family and friends Have high expendable income Spent on loneliness reducing products and services

Solitary Survivor – II: Single Surviving wife Low levels of income and savings Expenditure on medical products, security, affection

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EIGHT ROLES IN THE FAMILY DECISION-MAKING PROCESS

Initiators or gatekeeper- Initiators in a family first think of buying certain products and start gathering information to aid the decision e.g. adults, young

Influencers- Individuals whose opinion are sought concerning criteria to use in making the same purchase and which products or brands most likely fit those evaluative criteria, friends or peer group members.

Deciders– Such person hold the financial authority or power to decide amount of money that may be spent on buying those products or brands e.g. parents

Buyers- The persons who perform the task of visiting the retail store, calling on suppliers, making payments and bringing the products home e.g. housewives, servant.

Preparers– family members who transform the product into a form suitable for consumption by other family members e.g. mother or elder children.

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Users– The person who consume the product or service e.g. the whole family or the children.

Maintainers- Family members who service or repair the product so that it will provide continued satisfaction e.g. mothers or other family members.

Disposers- Family members who initiate the process or carry out the task of disposal or discontinuation of a particular product or services e.g. parents or adults.

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FAMILY DECISION MAKING PROCESS

Communication targeted at

Children

Communication targeted at

Parents

Influencer(Children)

Initiator(Parents, Children)

InformationGathering

DecisionMaker

(Parents, Children)

Purchaser(Parents)

User(Parents,Children)

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TYPES OF FAMILY DECISIONS Husband Dominated Decisions

Husband takes the purchase decisions Traditionally in products like Automobiles, Alcohol, Insurance

Wife Dominated Decisions Wife takes the purchase decisions Traditionally in products like household maintenance items, food and kitchen appliances

Joint Decision Making Both husband and wife make the decision Traditionally in School choice, living room furniture, vacations

Child Dominated Decision Making Child makes the “final product” decision Traditionally on children related items

Unilateral Decision Making Taken by any member of the family Traditionally on Personal Care items, low priced goods

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CONFLICT RESOLUTION Family Decisions are bound to create conflict Conflicts are resolved by:

Bargaining: Reaching a compromise on which product to buy

Impression Management: Misrepresentation of facts in order to create favorable impressions

Use of Authority: Claiming superior authority to resolve the conflict

Reasoning: Using logical arguments to resolve the conflict

Playing on Emotions: Using emotions to resolve the conflict

Additional Information: Getting additional Data or Third Party Information

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SOCIAL & CULTURAL ENVIRONMENT OF CONSUMERS

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SOCIAL FACTORS AFFECTING CONSUMER BEHAVIOUR

Social factors are made up of: Reference group Family Roles/status

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REFERENCE GROUP It consists of all the groups that have a direct/indirect influence on the persons

attitude /behaviorReference group are of three types-

1. Membership group those group having direct influence on a person Primary –family/friends/ neighbors /co-workers whom that person interacts

daily Secondary- formal /less interaction such as professional /relational /trade

unions2. Aspirational group Groups in which a person would like to belong 3. Dissociative group Groups whose values one rejects

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FAMILY Most important customer-buying organization in society .

Two types of family1. Family of orientation(parents/siblings)-it gives a person orientation

towards religion/politics /economics2. Family of procreation-it influences a buyer based on position

Husband ,wife ..etc

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ROLES AND STATUS Role –activities a person is expected to perform Each role would influence the person’s buyingBehaviorstatus – each role carries a status/positionPeople choose products that communicate their role/status.

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CULTURAL FACTORS AFFECTING CONSUMER BEHAVIOR

Cultural factors are comprise of set of values and ideologies of a particular community or group of individuals.

It is the cultural which decides the way he/she behaves. Cultural is nothing but value of and individuals Whatever a individual learn from their parents and relative as a child

become his culture Cultural factors have a significant effect on an individual’s buying

decision Every individuals has different sets of habits, belief and principles

which he/she develops from his family status and background SUBCULTURES Each cultural is further comprise of various subcultures such as

religion, age, geographical locations ,gender ,status

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ECONOMIC, DEMOGRAPHIC, CULTURAL, SUBCULTURAL & CROSS CULTURAL

INFLUENCES

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CULTURE The sum total of learned beliefs, values, and customs that serve to

regulate the consumer behavior of members of a particular society. Culture offers order, direction, and guidance

in all phases of human problem solving: When to eat, Where to eat, What to eat for each meal, What to serve guests at a dinner party, picnic, or wedding.

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ISSUES IN CULTURE Enculturation and acculturation Language and symbols Ritual Sharing of Culture

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WHY IT IS IMPORTANT FOR MARKETERS TO UNDERSTAND THE CULTURAL IMPACT

ON CONSUMER BEHAVIOUR? Because culture satisfies needsCulture exists to satisfy the needs of the people within a society. It offers order, direction and guidance in all phases of human problem solving by providing ‘tried and true’ methods of satisfying physiological, personal, and social needs.e.g.:- Culture provides standards and ‘rules’ about when to eat, where to eat, what is appropriate to eat for breakfast, lunch, dinner… etc...

Because culture is learned Unlike innate biological characteristics, culture is learned. The three distinct forms of cultural learning are formal learning, informal learning and technical learning. Although a firm’s advertising and marketing communications can influence all three types of cultural learning, it is likely that many product marketing messages enhance informal learning by providing the audience with a model of behaviour to imitate.

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Because of Acculturation Acculturation is an important concept for marketers who plan to sell their products in foreign or multinational markets. In such cases, marketers must study the specific cultures of their potential target markets to determine whether their products will be acceptable to its members and if so, how they can best communicate the characteristics of their products to persuade the target market to buy.

When using Language and SymbolsTo communicate effectively with their audiences, marketers must use appropriate symbols to convey desired product images or characteristics. These symbols can be verbal or nonverbal.

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When facilitating RitualsMost important from the standpoint of marketers is the fact that rituals tend to be replete with ritual artifacts that are associated with or somehow enhance the performance of the ritual. Because culture is sharedVarious social institutions within a society transmit the elements of culture and make the sharing of culture a reality. Such institutions are family, educational institutions, houses of worship and most importantly mass media. Because consumers receive important cultural information from advertising Because culture is dynamicTo fulfil its need gratifying role, culture continually must evolve if it is to function in the best interests of a society. For this reason, the marketer must carefully monitor the socio-cultural environment in order to market an existing product more effectively.

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THE MEASUREMENT OF CULTURE Content Analysis Consumer Fieldwork Value Measurement Instruments

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INDIAN CORE VALUES Achievement and success Activity Efficiency and practicality Progress Material comfort Individualism Freedom External conformity Humanitarianism Youthfulness Fitness and health

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CRITERIA FOR VALUE SELECTION The value must be pervasive. The value must be enduring. The value must be consumer-related.

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SUBCULTURES Subgroups of people who don’t think/ behave alike. They share most of society’s

norms, values, beliefs but they change some of society’s ideas to reflect more closely to their own needs.

IMPORTANT FEATURES OF SUBCULTURE: Provide a sense of belonging and identity. Develop unique features Rules of behavior are set up for dealing with the outside world. Supports group members in their daily activity Even if they are ridiculed by other groups in society, subculture members know

that upon returning on their own, they will receive social support and approval

Special signals- they are the same with the way they use language, dress, handshakes. They uses special signals to notice/ identify each other without being notice by an outsiders

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TYPES OF SUBCULTURE Nationality Subculture – Ex: Indians born in US and Indians born in

India. US- Indians are influenced by Indian food, tradition, custom, beliefs etc.

Religious Subculture- purchasing is done according to the religious identity or influenced by religious identity.

Geographic and regional subculture- Consumption and eating habits depends on geographic conditions and region like Energy drinks are more prefer by San Francisco rather then Philadelphia, Ground Coffee is more liked by Boston people rather then Los Angeles one.

Racial Subculture- Differences in lifestyle, consumer spending patterns etc.

Age Subculture Gender Subculture- Masculine/ Feminine Market with their

respective products

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WHAT IS CROSS- CULTURAL MARKETING?

Cross-cultural marketing is defined as “the effort to determine to what extent the consumers of two or more nations are similar or different. This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they wish to target, so as to design effective marketing strategies for each of the specific national markets involved.”

THE FIRM’S OBJECTIVES COULD BE1. To determine how consumers in two or more societies are Similar /

different and devise suitable, appropriate strategies2. Devise individualized marketing strategy if cultural beliefs, values

and customs of a specific country are different

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VARIABLES INFLUENCING CROSS-CULTURAL MARKETING STRATEGIES

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CROSS-CULTURAL VARIATIONS: FACTORS INFLUENCING NON-VERBAL

COMMUNICATIONS AND ALSO BECOME PROBLEMS FOR THE MARKETERS Space

Friendship - Two or more nations with each other Agreements Symbols Etiquette (basic manners) National Language Country-of-Origin Issues Ethnocentricity Animosity Bi-national products Matchup Hypothesis Time

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CROSS-CULTURAL CONSUMER ANALYSIS

To determine whether and how to enter in a foreign market, we need to conduct some form of cross-cultural consumer analysis.

Cross-cultural consumer analysis can be defined as the effort to determine to what extent the consumers of two or more nations are similar or different.

Such analysis can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to target, so that they can design effective marketing strategies for the specific national markets involved.

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BASIC RESEARCH ISSUES IN CROSS-CULTURAL ANALYSIS

Differences in language and meaning, e.g. restroom Difference in market segmentation opportunities, e.g. age while

buying the first car Difference in consumption patters, Difference in the perceived benefits of products and services, e.g.

yogurt Differences in the criteria for evaluating products and services, e.g.

credit cards Difference in economic and social conditions and family structure,

e.g. family soap Differences in marketing research and conditions, e.g. direct-mail lists Differences in marketing research possibilities, e.g. telephone surveys

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SIMILARITIES AND DIFFERENCES AMONG PEOPLE

A major objective of cross-cultural consumer analysis is to determine how consumers in two or more societies are similar and how they are different. According to some personality traits or behavioral aspects of the consumer we can analyze the things.

Fight for one’s beliefs/positions Individualistic Clear-cut Specific Display emotions in public Result oriented Make a short story long Verbal communication important Interested in what is spoken

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The Growing global middle class Acculturation is a needed marketing view point

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SOCIAL CLASS AND SOCIAL STRATIFICATION

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WHAT IS SOCIAL CLASS? 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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SOCIAL CLASS AND SOCIAL STATUS

Researchers often measure social class in terms of social status means they define each social class by the amount of status the members of that class have in comparison with members of other social classes.Ex- Doctors are more respected than criminals because of their job profile.

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SOCIAL CLASS RESULT FROM SOCIO-ECONOMIC FACTORS

Education Occupation Income level Ownership Heritage

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CHARACTERISTICS… Social classes are hierarchial that is from high status to low status,

based on this criteria individuals are placed within a class on this hierarchy.

Social classes restrict behaviour and interactions between the class is limited.

Social classes are homogenous. Based on similarities of factors such as education, activities, interests, opinions, attitudes and other behaviour patterns, social classes are viewed as homogenous divisions of a society.

Social class are dynamics and social stratification can be of two types. In a closed system people are born into a social class and cannot leave it whereas in open system people have some opportunity to move upward or downward from one social class to another.

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SOCIAL CLASS CATEGORIESW. Lloyd Warner in 1941 identified six social classes-

Upper-upper Lower-upper Upper-middle Lower-middle Upper-lower Lower-lower

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SOCIAL CLASS PROFILES The upper-upper class (Country Club Establishment) Small number of well established families Belong to best country clubs and sponsor major charity events Serve as trustees for local colleges and hospitals Prominent physician and lawyers Accustomed to wealth, so do not spend money conspicuously The lower upper class (new wealth) Represent as new money Successful business Not quite accepted by the upper crust of society Conspicuous users of their new wealth

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The upper middle class (achieving professionals) have neither family status nor unusual wealth Career oriented Young successful professionals, corporate managers and business

owners Their homes serve as symbols of their achievements Consumption is often conspicuous the lower middle class (faithful followers) Want to achieve respectability and be accepted as good citizens Want their children to be well behaved Prefer a neat and clean appearance and tend to avoid faddish or

highly styled clothing

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the upper lower class (security minded majority) The largest social class segment View work as means to buy enjoyment High wage earners in this group may spend impulsively Interested in items that enhances their leisure time eg t.v sets Want children to behave properly the lower-lower class (rock bottom) Poorly educated, unskilled laborers Often out of work Children are often poorly treated Tend to live a day-to-day existence

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THE MEASUREMENT OF SOCIAL CLASS

Subjective Measures: individuals are asked to estimate their own social class positions.

Reputational Measures: informants make judgments concerning the social class membership of others within the community.

Objective Measures: individuals answer specific socioeconomic questions and then are categorized according to answers.

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OBJECTIVE MEASURES Single variable indexesOccupationEducationIncomeOther variables

Composite variable indexesIndex of status characteristicsSocioeconomic status score

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