Social Class Final

7/30/2019 Social Class Final

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SOCIAL CLASSRAVI (61)

SAHIL (66)DHAVAL

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Social Class

Social classa status hierarchy by which groups andindividuals are classified on the basis of esteem (regard,

respect) and prestige (reputation, influence derived from

achievements).American Marketing Association

The division of members of a society into a hierarchyof distinct status classes, so that members of eachclass have either higher or lower status thanmembers of other classes.

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What is social class ?

Socialist Ideology for Social Class

Karl Marx: 1818-1883

Assertion that there were two great classes the owners of themeans of production (capitalists) and the workers the only thing

that the workers owned was their ability to work, what Marxcalled labor power. Because owners (capitalists) paid wages toworkers and could for the most part determine that wage, ownershad power over workers.

"in countries where modern civilization has become fully

developed, a new class of petty capitalist has been formed. Anindustrial army of workmen, under the command of a capitalist,requires, like a real army, officers (managers) and sergeants(foremen, over-lookers) who, while the work is being done,command in the name of the capitalist"


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Max Weber: 1864 1920

Max Weber formulated a three-component theory of stratification,that saw political power as an interplay between "class", "status"and "group power". Weber believed that class position wasdetermined by a person's skills and education, rather than by

their relationship to the means of production.

Class:A person's economic position in a society. Weber noted howmanagers of corporations or industries control firms they do notown.

Status: A person's prestige, social honor, or popularity in a society.Weber noted that political power was not rooted in capital valuesolely, but also in one's individual status. Poets or saints, forexample, can possess immense influence on society with oftenlittle economic worth.

Power: A person's ability to get their way despite the resistance ofothers. For example, individuals a member of Parliament, may


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Modern Definition of social class

Schiffman & Kanuk

The division of members of a society into a hierarchy of distinctstatus classes, so that members of each class have either higheror lower status than members of other classes.

Grant, J. Andrew

Social class (or simply "class") is a set of concepts in the socialsciences and political theory centered on models of socialstratification in which people are grouped into a setof hierarchical social categories.

American Heritage Dictionary 4th

A set, collection, group and configuration containing membersregarded as having certain attributes or traits in common: a kindof category.


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Meaning of social class

Social class can be viewed as a range of position in asociety . Social class define the ranking of people in asociety in to a hierarchy of distinct status class; Upper,Middle, Lower, so that the member of class have

relatively the same status based on their power &prestige.

Structure of Social Class

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UpperClass

MiddleClass

Lower Class

UpperClass

MiddleClass

LowerClass


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What determines social class?

Occupation

Personal

Performance Interactions

Possessions

Value orientations

Classconsciousness

Income Level Heritage

Educational

attainment

Level of Influence

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Nature of Social class

1. Social classes exhibit status

Net equivalent but related.

Status =Rank in social system perceived by othermembers of society= Function of social class and

personal characteristics E.g. Scientist High rank social system but in a

prestigious capacity other in small R&D late. Hisprofessional contribution to society determines his status.

Factors that determines status are , Authority over otherPower ( political , Economic , Military)

Property, Income, Consumption Pattern, Lifestyle,Occupation, Education, Public Service, Ancestry,Associations and Connections.

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Symbols of status ( Mark of Distinction) Things consumer buys become symbols ( Status Symbolization)

because of scarcity and social desirability. Conspicuous Consumption (Buying things we dont need). Shunning prestige items frivolity and a lavish display of wealth. Stealth wealthQuieter buy of quality item that dont scream

money , glamour and glitz. Financial wealth dictates status. Possessions are substitute indicator of status. Marketers cater to consumers looking for something to give them

an edge (Real or imagined) over their peers. Need for prestige is universal (Admired , Praised , envied and

acknowledged) Relatively expensive , high quality, limited supply products

purchased by a respected and admired group of people.

Blurring of Symbolism Luxury goods market supported by middle class upscale tastes.

Pseudo affluent purchase upscale indulgences. Genuine affluent have many of the Common mans

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Blurring of Symbolism (Conti.)

Truly rich view luxury goods as Toys. Designer labels mass marketing result in less thanclear

distinctions between social classes.

2. Social classes are Multidimensional

Based on numerous components like occupation andincome.

Some of these variable are more reliable substitutes Eg Colgate Palmolive used neighborhood to drop 10 Million

samples of their detergent (Based on one criteria You arewhere you live)

3. Social classes are Hierarchical Vertical order from high to low.

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4. Social classes restrict behaviour

Assiciation with same social class because of sharing ofsimilar education , occupation , income level ,lifestyle.

5. Social classes are Homogeneous People in one class have similar attitudes , activities,

interests and other behavior patterns. Exposed to similar media shop in similar stores.

6. Social classes are Dynamic Open systems (Move up or down) Closed systems ( inherited / ascribed status eg. Rural India)

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What is Social Status?

Relative ranking of members of each social class interms of specific status factors.

Family income, occupational status and educationalattainment.

Social class and status are not equivalent concepts.

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Factors Important in DeterminingStatus

Authority over others

Ownership of Property

Consumption Patterns & Lifestyle

Public Service Association

Power

Income

Occupation

Education

Ancestry

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India's top status symbols

1. Education degree

2. Car

3. Home location

4. Cell phone5. Children school / College

6. Credit card

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Social comparison theory

Individuals normally compare their own material

Possessions with those owned by others in order to

Determine their relative social standings.

Consumers purchasing power

Consumers possessions

In making such a comparison, an individual consumer use

Downward comparison (bolster his/her self-esteem)

Upward comparison (create inferiority)

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Marketing practitioners most often use three socio-

economic variables on a daily basis to measure social-class

Family income

Occupational status

Educational attainment

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Social class is hierarchical anda natural form of segmentation

Social-class categories usually are ranked in ahierarchy, ranging from low to high status.

Social-class membership serves consumers as a frameof reference for the development of their attitudes andbehaviours.

The various social-class strata provide a natural basisfor market segmentation for many products andservices.

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HOW IS IT IMPORTANT TO UNDERSTAND SOCIAL CLASS IN CONSUMER


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HOW IS IT IMPORTANT TO UNDERSTAND SOCIAL CLASS IN CONSUMERBEHAVIOUR STUDY?

UniversalPeckingOrder

Affectsaccess toresources

Affectstastes andlifestyles

naturalform ofmarketsegmentation

Frame ofreferenceforconsumerbehaviour

Reflects apersonsrelativesocialstatus

Individualscan moveup or downthe socialclass

hierarchy

Social class is a crucial external factor which influence consumers behaviour;It is because:


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Classification of social class

Social class is hierarchical and a form of segmentation

Social class categories

a. Two category social class ( bluewhite collar; L,U; L,M)

b. Three category (blue, grey, white collar ; L-M-U)c. Four category (L,L-M,U-M,U)

d. Five category (L,L-M,M,U-M,U)

e. Six category (L-L,U-L,L-M,U-M,L-U,U-U)

f. Seven Category (RL-L, a lower group of people but notlowest, working class, M,U-M,L-U,U-U)

g. Nine category (L-L,M-L,U-L,L-M,M-M,U-M,L-U,M-U,U-U)

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Unique behavioursSituation: entertainment e.g. Opera subscription

Shared behaviours

Situation: entertainment e.g. Football match

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Social class in America Social class in India

Upper Americans U

U-U U-M

L-U M-M

U-M L-M

Middle Americans L

M

Working

Lower Americans

U-L

L-L

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Indian Social class

INDIAN CONSUMER MARKET A CHANGE FROM PYRAMIDTO SPARKLING DIAMOND

Extreme rural poverty has declined from 94% in 1985 to 61%in 2005 and is projected to drop to 26% by 2025.

Affluent class, defined as earning above Rs 10,00,000 a yearwill increase from 0.2% of the population at present to 2% ofthe population by 2025. Affluent classs share of nationalprivate consumption will increase from 7% at present to 20%in 2025.

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Economic predictions

India's social class is moving from a pyramid to a diamond .

There is a large middle class population now.

India's growing at an average annual rate of 7.6% for the past

five years and it is expected to grow at a faster rate.

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Income based classification

Higher Income

Upper Middle Income

Middle Income

Lower Middle Income

Lower Income

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SECA&B

SECC

SECD,E

Tier 1(Consumingclass)

Tier 2 ( The aspiring

class)

Tier 3 ( The underprivileged)

The new urban Indian consumerpyramid

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Indian consumer classification

Consumers are divided into three major types based onsize of wallet, occupation, education and sort of town/citythey live

1. Consumers(largest value consumer base) HHI- above 35,000 per month Professionals, Businessmen,

owning major consumer durables, at par with thedeveloped world's consumers

Their needs. Lifestyle, aspiration would give answer to Who to market Consumer profiling

What to market- Needs and benefits

How to market _ Media and distribution

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Indian consumer classification

2. Climbers (Largest volume consumer base

HHI- 15,000-35,000 per month

Graduates, blue collar worker, small business traders, owntwo consumer durable. Focused on children's education

3. Aspirants( Largest growth driving consumer base)

HHI- 8000/- to 14,000/- per month

rural/first generation migratory urban workers

Poor employed, aspirations for children

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SEC's in Total Urban Population

SEC's in Total Urban Population

Urban Sec Class No. of families(mn)

SEC-A 9.10

SEC-B 12.61

SEC-C 16.58

SEC-D 18.05

SEC-E 21.08

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Average monthly household incomes of UrbanSEC's

Urban SECClass SEC A SEC B

SECC SEC D SEC E

All urbanhouseholds

Av.MonthlyHHI 18,549 10,911 6,776 5,112 4,219 9,113

Av.percapita MHI 4,678 2,679 1,636 1,235 1,018 2,251

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Social-Class Profiles

THE UPPER-UPPER CLASS--COUNTRY CLUB

Small number of well-established families

Belong to best country clubs and sponsor major charityevents

Serve as trustees for local colleges and hospitals

Prominent physicians and lawyers

May be heads of major financial institutions, owners ofmajor long-established firms

Accustomed to wealth, so do not spend moneyconspicuously

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THE LOWER-UPPER CLASS--NEW WEALTH

Not quite accepted by the upper crust of society

Represent new money

Successful business executive

Conspicuous users of their new wealth

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THE UPPER-MIDDLE CLASS--ACHIEVINGPROFESSIONALS

Have neither family status nor unusual wealth

Career oriented

Young, successful professionals, corporate managers, andbusiness owners

Most are college graduates, many with advanced degrees

Active in professional, community, and social activities

Have a keen interest in obtaining the better things in lifeTheir homes serve as symbols of their achievements

Consumption is often conspicuous

Very child oriented

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THE LOWER-MIDDLE CLASS--FAITHFULFOLLOWERS

Primary non-managerial white-collar workers and highly paidblue-collar workers

Want to achieve respectability and be accepted as goodcitizens

Want their children to be well behaved

Tend to be churchgoers and are often involved in church-

sponsored activitiesPrefer a neat and clean appearance and tend to avoid faddishor highly-styled clothing

Constitute a major market for do-it-yourself products

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THE UPPER-LOWER CLASS--SECURITY-MINDEDMAJORITY

The largest social-class segment

Solidly blue-collar

Strive for security

View work as a means to buy enjoyment

Want children to behave properly

High wage earners in this group may spend impulsively

Interested in items that enhance leisure time (e.g., TV sets)

Husbands typically have a strong macho self-image

Males are sports fans, heavy smokers, beer drinkers

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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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Social Class Measurement

Subjective Measures: individuals are asked to estimatetheir own social-class positions

Reputational Measures: informants make judgments

concerning the social-class membership of others withinthe community

Objective Measures: individuals answer specific

socioeconomic questions and then are categorizedaccording to answers

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S bj ti M t f S i l


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Subjective Measurement of Socialclass

The individual places himself/herself in a classcategory, regardless of whether the researcherthinks they belong in that class category.

Reflection of ones product usage andpreferences

Problem is to categorized themselves as

middle class

S bj ti M t f S i l


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Subjective Measurement of Socialclass Think of this ladder as representing

where people stand in India.

At the top of the ladder are thepeople who are the best off thosewho have the most money, the mosteducation and the most respected

jobs. At the bottom are the people who

are the worst off who have theleast money, the least education,and the least respected jobs or no

jobs.

The higher up you are on this ladder,the closer you are to the people atthe very top; the lower you are thecloser you are to the people at thevery bottom.

If you consider your current situation

and compare it with all other peoplein India, where would you place

R t ti l M t f S i l


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Reputational Measurement of Socialclass

Think of this ladder asrepresenting where peoplestand in their communities.

At the top of the ladder arepeople who have the

highest standing in theircommunity.

At the bottom are peoplewho have the loweststanding in theircommunity.

If you consider yourcurrent situation andcompare it with all other

people in your community,where would you place

yourself on this ladder?


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Objective Measures

Single-variable indexes Occupation (Revital for sales people)(Economic times for business

corporate executives and professionals )

Education (public defender & private lawyer)(mode of information

search) (Laptops) Income (skiing, bowling, golf) (economic boom Mach 3 razor,

Huggies supreme diapers)

Other Variables (quality of neighborhood) (Chapins social statusscale items in living room)

Composite-variable index

Index of status characteristics (ISC)

Socioeconomic status score (SES)

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Index of Status Characteristics


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Index of Status Characteristics(ISC)

Developed by Warner

A weighted measure of the following socioeconomicvariables like Occupation, source of income (not theamount), house type, dwelling area (quality ofneighbourhood)

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Socioeconomic Status Score


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Socioeconomic Status Score(SES)

Developed by The United States Bureau of the Census

A multivariable social class measure used by the UnitedStates Bureau of the Census that combines occupationalstatus, family income, and educational attainment into asingle measure of social class standing.

Occupation, family income, occupational attainment

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Social Mobility

It occurs whenever people move across the social classboundaries, perhaps in their own life time or throughgenerations, or from one occupational level to another

Horizontal Mobility: Movement from one position to another roughly equivalent in

social status. ( same designation but organization changed)

Vertical Mobility: Downward Mobility: movement from one position to another

position that is lower in social status ( loss in share market)(parents and son)

Upward Mobility: movement from one position to another

position that is higher in social status (rajnikant)

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Upward mobility

Upward mobility

Upward Shift

A good example can be the Maruti 800 Ad camp. Of Rs 2599 which appeals to allthe two wheelers and the lower middle class people , who are looking for an upwardmobility in Status moving from a scooter to a Car

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Geo-demographic Clusters

A composite segmentation strategy that uses bothgeographic variables (zip codes, neighborhoods) anddemographic variables (e.g., income, occupation) toidentify target markets.

Once settled in, people naturally emulate theirneighbors, adopt similar social values, tastes andexpectations and, most important of all, share similarpatterns of consumer behavior toward products,

services, media and promotions. It's the old "birds of a feather flock together"

phenomenon

LIFESTYLES, PRIZM, CLUSTER PLUS and

Compusearch's new PSYTE system

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PRIZM (P t ti l R ti I d b Zi


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PRIZM (Potential Rating Index by ZipMarket)

A composite index of geographic and socioeconomicfactors expressed in residential zip code neighborhoodsfrom which geo-demographic consumer segments areformed.

Education, income, occupation, family life cycle,ethnicity, housing and urbanization with consumerbehavior

62 segments further collapsed into 15 groups (s1 to R3)

Nielsen PRIZM is a set of geo-demographic segmentsfor the United States, developed by Claritas Inc., whichwas then acquired by The Nielsen Company. It was awidely used customer segmentation system for

marketing in the United States in the 1990s and

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PRIZM NE (New Evolution) is an update to the originalPRIZM model that featured 62 segments. The PRIZMsystem categorizes U.S. consumers into 14 distinctgroups and 66 demographically and behaviourally

distinct types, or "segments," to help marketers discernthose consumers likes, dislikes, lifestyles and purchasebehaviours.


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The affluent consumer

Especially attractive target to marketers

Have extra income to buy upscale products (householditems)

Growing number of households can be classified asmass affluent with income of at least $75000

Some researcher are defining affluent to include lifestyleand psychographic factors in addition to income

Have different medial habits than the general population No longer rely on volume to increase profit.

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Mediamark Research Inc Affluent


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Mediamark Research, Inc. AffluentMarket-Segmentation

Upper deck ( top 10% households in teams of income) Well-feathered Nests ( at least 1 high income earner with children)

No Strings Attached ( at least 1 high income earner with nochildren)

Nannys In Charge ( more than 1 earner but not high and havechildren)

Two Careers (more than 1 earner but not high and no children)

The Good Life (high degree of affluent with no person employed)

Rural Affluent Segments Suburban Transplants (who moved to rural but still have high

paying urban job) Equity-rich Suburban Expatriates (who sale home at high price in

urban area and live in rural area)

City Folks with Country Homes (who enjoy vacation in rural areaslike mountain and costal)

Wealthy Landowners (wealthy farmers others who comfortableliving off)

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What is Middle Class?

The middle 50% of household incomes - householdsearning between $25,000 and $85,000

Households made up of college-educated adults who

use computers, and are involved in childrens education Lower-middle to middle-middle based on income,

education, and occupation (this view does NOT includeupper-middle which is considered affluent)

Near luxury model and down price make them buyupscale items

Slowly disappearing towards upward and downwards inUSA but increasing in Asia so companies moving to Asia

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Wh t i W ki Cl d th ffl t


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What is Working Class and other non affluentclass?

Households earning $34,000 or less control more than30% of the total income in the U.S.

More brand loyal because they cant afforded mistakes

Food is a particularly important purchase

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The Techno class

Having competency with technology

Those without are referred to as technologically underclassed

Seek for earliest exposure to computers

Parents are seeking computer exposure for theirchildren

No longer want to left out and being embarrassed byadmitting dont know computers

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Consumer Behavior Application for


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Consumer Behavior Application forSocial Class

Clothing, Fashion,and Shopping

The Pursuit ofLeisure

Saving, Spending,

and Credit

Social Class and

Communication

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Clothing Fashion and


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Clothing, Fashion, andShopping

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Like to wear as per social class that suits them Lower middle class wear cloth with well known logos

Upper class preferred more delectated looks

Like to purchase from those stores which are relevant to their socialclass

Big Bazaar has divided India into three segments: India one: Consuming class which includes upper middle and lower

middle class (14% of India's population).

India two: Serving class which includes people like drivers,household helps, office peons, liftmen, washermen, etc. (55% ofIndia's population) and

India three: Struggling class (remaining 31% of India's population).

While Big Bazaar is targeted at the population across India one andIndia two segments, Aadhaar Wholesale(joint venture between TheFuture Group & Godrej Agrovet Ltd) is aimed at reaching thepopulation in India three segment.


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The Pursuit of Leisure57

Upper class like to attained theater andconcerts

Lower class tend to be avid tv watcher

Middle class spend more on experience thatbrings family together


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Saving, Spending, and Credit58

Upper class is more confidence and futureoriented, they invest in insurance, stock andreal estate

Use credit card as substitute of case Lower class not future oriented and when they

do save primarily interest are safety andsecurity

Use credit card as buy now and pay later

Social Class and


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Social Class andCommunication

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Diff. social classes are diff. in their media habitsand how they transmit and receivecommunication.

middle class have a broader or more general

view of world while lower class tend to havenarrow or personal view Also regional differences in terminology is there;

Dabeli is known as roti in kuchha Higher class tend to watch current events and

drama on tv while lower class watch quiz showsand comedies

Upper class have more exposure to magazinesthan lower


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http://www.pbs.org/peoplelikeus/games/chintz.html

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Group Activity

Assume you are a travel agent selling vacationpackages to different social classes.

Discuss and create a plan for: Vacation packages to offer (destination, accommodations,

food, etc.) Advertising media selection and appeals used

Communication style used in Ads

Payment polices

Do this for (a) upper class, (b) middle class, and (c)lower class.

Discuss if YOUR product is better suited for upper,middle, or working class and why.

Write down your ideas and be prepared to share with

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Social Class Final

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