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Chapter 11 Social Class and Consumer Behavior2000 Prentice HallSocial ClassThe division of members of a society into a hierarchy of distinct status classes,so that members of each class have either higher or lower status than members of other classes2000 Prentice HallSocial Class and Social StatusSocial status is usually defined in terms of one or more of the following socioeconomic variables:Family IncomeOccupational StatusEducational Attainment2000 Prentice HallTable 11.1 Variations in the Number and Types of Social-Class CategoriesTWO-CATEGORY SOCIAL CLASS SCHEMASBlue-collar,white-collarLower,upperLower,middleTHREE-CATEGORY SOCIAL CLASS SCHEMASBlue-collar,gray-class,white-collarLower,middle,upperFOUR-CATEGORY SOCIAL CLASS SCHEMASLower,lower-middle,upper-middle,upperFIVE-CATEGORY SOCIAL CLASS SCHEMASLower,working-class,lower-middle,upper-middle,upperLower,lower-middle,middle,upper-middle,upper2000 Prentice HallTable 11.1 continuedSIX-CATEGORY SOCIAL CLASS SCHEMASLower-lower,upper-lower,lower-middle,upper-middle,lower-upper,upper-upperSEVEN-CATEGORY SOCIAL CLASS SCHEMASReal lower-lower,a lower group of people but not the lowest,working class,middle class,upper-middle,lower-upper,upper-upperNINE-CATEGORY SOCIAL CLASS SCHEMASLower-lower,middle-lower,upper-lower,lower-middle,middle-middle,upper-middle,lower-upper,middle-upper,upper-upper2000 Prentice HallTable 11.2 Percent Distribution of Five-Category Social-Class MeasureSOCIAL CLASSESPERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage100.02000 Prentice HallThe Measurement of Social ClassSubjective MeasuresReputational MeasuresObjective Measures2000 Prentice HallSubjective MeasuresIn the subjective approach to measuring social class,individuals are asked to estimate their own social-class positions.2000 Prentice HallReputational MeasuresThe reputational approach requires selected community informants to make initial judgments concerning the social-class membership of others within the community.2000 Prentice HallObjective Measures of Social ClassA method of measuring social class whereby individuals are asked specific socioeconomic questions concerning themselves or their families On the basis of their answers,people are placed within specific social-class groupings.2000 Prentice HallObjective MeasuresSingle-variable indexesOccupationEducationIncomeOther VariablesComposite-variable indexesIndex of Status CharacteristicsSocioeconomic Status Score2000 Prentice HallSingle-Variable IndexThe use of a single socioeconomic variable(such as income)to estimate an individuals relative social class.2000 Prentice HallChapins Social Status ScaleA social class rating scheme that focuses on the presence or absence of certain items of furniture and accessories in the home.2000 Prentice HallComposite-Variable IndexAn index that combines a number of socioeconomic variables(such as education,income,occupation)to form one overall measure of social class standing.2000 Prentice HallIndex of Status Characteristics(ISC)A composite measure of social class that combines occupation,source of income(not amount),house type and dwelling area into a single weighted index of social class standing.Also known as Warners ISC.2000 Prentice HallSocioeconomic Status Score(SES)A multivariable social class measure used by the United States Bureau of the Census that combines occupational status,family income,and educational attainment into a single measure of social class standing.2000 Prentice HallTable 11.3 Readers Median Household Income for Selected PublicationsNEWSPAPER/MAGAZINENEWSPAPER/MAGAZINEMEDIAN HOUSEHOLD INCOMEMEDIAN HOUSEHOLD INCOMEWall Street Journal$86,109.4Barrons 83,075.5New York Times Daily 78,093.1Architectural Digest 71,483.6Forbes 68,518.7Money 64,423.2PC World 60,680.4New Yorker 59,471.0Smithsonian 55,5646Newsweek 54,842.2Time 52,283.5Car&Driver 52,338.0National Geographic 49,561.42000 Prentice HallTable 11.3 continuedNEWSPAPER/MAGAZINEMEDIAN HOUSEHOLD INCOMEPeople$48,206.4Town&Country 47,810.3Esquire 45,565.4Cosmopolitan 42,937.8Playboy 39,759.1Field&Stream 39,164.8Outdoor Life 38,765.6Hunting 38,299.9Family Circle 39,476.5Soap Opera Weekly 28,583.8Ebony 27,744.8True Story 17,426.12000 Prentice HallTable 11.4 Occupational Rankings in Terms of Honesty and Ethical StandardsOCCUPATIONALCOMBINED PERCENT*1997 RANKDruggists/pharmacists69%1Clergy59 2Medical doctors56 3College teachers55 4Dentists54 5Police officers49 6Engineers49 7Funeral directors36 8Bankers34 9Public opinion pollsters2310Journalists2311TV reporters,commentators22122000 Prentice HallTable 11.4 continuedOCCUPATIONALCOMBINED PERCENT*1997 RANKBusiness executives2013Local officeholders2014Building contractors2015Newspaper reporters1916Stockbrokers1817State officeholders1718Real estate agents1619Lawyers1520Labor union leaders1521Senators1422Advertising practitioners1223Congresspeople1224Insurance salespeople1225Car salespeople 826*Rank is based on the combination of“very high”and“high”rating.2000 Prentice HallTable 11.5 The Relationship between Formal Education and Household IncomeUnder$10,00031.911.7$10,000 to$14,99918.08.5NO MORE THAN ELEM.SCHOOLTOTALALL HOUSEHOLDS100%100%$15,000 to$24,99922.015.5$25,000 to$34,99912.014.0$35,000 to$74,9995.617.6$75,000 and Over2.115.6Households(000s)8,06294,364Median income$15,043$35,23524.416.0SOME HIGH SCHOOL100%23.313.37.53.39,683$18,29811.49.1HIGH SCHOOL GRAD.100%18.216.916.98.729,507$31,3768.36.81 TO 3 YEARS OF COLL.100%14.515.121.214.323,670$39,6373.33.34+YEARS OF COLL.100%7.510.323.235.223,424$58,0522000 Prentice HallTable 11.6 Typical Categories Used for Assessing Amount or Source of IncomeAMOUNT OF INCOMEUnder$25,000 per year$25,000 to$49,999$50,000 to$74,999$75,000 to$99,999$100,000 to$124,999$125,000 to$149,999$150,000 to$174,999$175,000 to$199,999$200,000 and overSOURCE OF INCOMEPublic welfarePrivate financial assistanceWages(hourly)Salary(yearly)Profits or feeEarned wealthInherited wealth,interest,dividends,royalties2000 Prentice HallTable 11.7 Social-Class ProfilesTHE UPPER-UPPER CLASS-COUNTRY CLUB ESTABLISHMENTSmall number of well-established familiesBelong to best country clubs and sponsor major charity eventsServes as trustees for local colleges and hospitalsProminent physicians and lawyersMay be heads of major financial institutions,owners of major long-established firmsAccustomed to wealth,so do not spend money conspicuouslyTHE LOWER-UPPER CLASS-NEW WEALTHNot quite accepted by the upper crust of societyRepresent“new money”Successful business executiveConspicuous users of their new wealth2000 Prentice HallTable 11.7 continuedTHE UPPER-MIDDLE CLASS-ACHIEVING PROFESSIONALSHave neither family status nor unusual wealthCareer-orientedYoung successful professionals,corporate managers,and business ownersMost are college graduates,many with advanced degreesActive in professional,community,and social activitiesHave a keen interest in obtaining the“better things in life”Their homes swerve as symbols of their achievementsConsumption is often conspicuousVery child-oriented2000 Prentice HallTable 11.7 continuedTHE LOWER-MIDDLE CLASS-FAITHFUL FOLLOWERSPrimary nonmanagerial white-collar workers and highly paid blue-collar workersWant to achieve“respectability”and be accepted as good citizensWant their children to be well-behavedTend to be churchgoers and are often involved in church-sponsored activitiesPrefer a neat and clean appearance and tend to avoid faddish or highly-styled clothingConstitute a major market for do-it-yourself products2000 Prentice HallTable 11.7 continuedTHE UPPER-LOWER CLASS-SECURITY-MINDED MAJORITYThe largest social-class segmentSolidly blue-collarStrive for security(sometimes gained from union membership)View work as a means to“buy”enjoymentWant children to behave properlyHigh wage earners in this group may spend impulsivelyInterested in items that enhance their leisure time(e.g.,TV sets)Husbands typically have a strong“macho”self-imageMales are sports fans,heavy smokers,beer drinkersTHE LOWER-LOWER CLASS-ROCK BOTTOMPoorly educated,unskilled laborersOften out of workChildren are often poorly treatedTend to live a day-to-day existence2000 Prentice HallGeodemographic Geodemographic ClustersClustersA composite segmentation strategy that uses both geographic variables(zip codes,neighborhoods,or blocks)and demographic variables(e.g.,income,occupation,value of residence)to identify target markets.2000 Prentice HallPRIZM(Potential Rating Index by Zip Market)A composite index of geographic and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.2000 Prentice HallTable 11.9 A Profile of PRIZM Cluster:“Young Literati”(Cluster 08)SOCIOECONOMIC FACTORS:Percent of U.S.households0.94%Predominant age range25-34,35-44Socioeconomic groupUpper middleDemographic captionUpscale urban singles and couplesHousing typeRenterEducationCollege graduatesOccupationProfessionalLIFESTYLE:Plan for large purchasesTake vitaminsUse a discount-brokerWatch BravoRead GQ2000 Prentice HallFigure 11.4 Three Segments of Affluent Consumers Average Household Expenditures(among purchasing households)2000 Prentice HallFigure 11.5 Affluent Consumers Participation in Selected Sports 2000 Prentice HallTable 11.10 Affluent Readers($70,000+Median Household Income)for Selected PublicationsNEWSPAPER/MAGAZINENEWSPAPER/MAGAZINEMEDIAN HOUSEHOLD INCOME($)MEDIAN HOUSEHOLD INCOME($)Allure115,400Architectural Digest125,400Art&Antiques 103,200Better Homes and Gardens 96,600Boating 101,400Bon Appetit 119,200Business Week 121,500Cigar Aficionado 115,100Conde Nast Traveler 123,500Elle 119,900Esquire 108,200Fortune 121,900Golf Magazine 102,200Good Housekeeping 94,8002000 Prentice HallTable 11.10 continuedNEWSPAPER/MAGAZINENEWSPAPER/MAGAZINEMEDIAN HOUSEHOLD INCOME($)MEDIAN HOUSEHOLD INCOME($)Gourmet120,600GQ/Gentlemens Quarterly103,500House&Garden 100,300Martha Stewart Living 100,000National Geographic 97,000Newsweek 109,000Self 103,800Southern Accents 120,800Town&Country 124,200Travel&Leisure 111,100U.S.News&World Report 99,900Vanity Fair 124,700Vogue 119,800W 138,0002000 Prentice HallMRI Affluent Market-Segmentation SchemaAffluent SegmentsWell-feathered NestsNo Strings AttachedNannys In ChargeTwo CareersThe Good LifeRural Affluent SegmentsSuburban TransplantsEquity-rich Suburban ExpatriatesCity Folks with Country HomesWealthy Landowners2000 Prentice HallConsumer Behavior and Social ClassClothing,Fashion,and ShoppingThe Pursuit of LeisureSaving,Spending,and CreditSocial Class and Communication