Income and Social Class Consumer Behavior Social Class

Income and Social Class Consumer Behavior

Social Class Haves and Have nots. Determinants of a Social class Income Occupation Education Family Background Characters of a Social Class

Picking a Pecking Order Relative standing in Society Scarce and valuable resources are distributed un equally Social class determines this standing. Achieved vs. ascribed status

Income Pattern Distribution of money across the society Increase in women labor Increase in education attainment Discretionary Income: amount of income that is left after fulfilling taxes and basic necessities of life.

Consumer Confidence Consumer confidence is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. Factors Pessimism and optimism of individual Political stability of region Cultural differences

Mass Class World is a Global Market Luxury goods across the globe Mass Marketing

Social Mobility: Passage of individuals from one social class to other. Types Vertical mobility Horizontal mobility Upward mobility Downward mobility

How Social Class Influence Purchase Decisions: Three social classes: Upper Class • Attracted to quality and other features • Prefer body image and appearance. Middle class • Focus on healthy food • Economical products Lower class • Focus on price

Taste Culture: Differentiates consumer in terms of their aesthetic and intellectual preferences. Helps to understand consumption choices among social classes. Grouping occur on the basis of taste.

Codes: The way consumer express and interpret meaning Different social classes uses different codes. 1. Restricted codes– focus on content of objects, not relationship among objects. 2. Elaborative codes– focus on relationship among objects.

Cultural Capital: Refers to collection of symbolic elements such as skill, taste, posture, dressing, mannerism, material belongings– that one acquires to being part of particular class. Refined behavior of individuals

Targeting The Poor: Most people live below poverty line. Difficult task for marketers to target poor and rich at same time. They buy staple, milk, tea on low prices. Improvements in sales

Targeting The Rich: Marketers try to target affluent and upscale markets. Paying for lavish items can become a statement of wealth. We should not place everyone with high income into the same market segment.

Attitude Toward Luxury: Functional– use their money to buy thing that will last and have enduring value. Luxury Reward– use money to buy luxury is goods to become achiever and to say Yes, I made it. Indulgence– use money to buy products to be unique in a society or noticed by others.

Status Symbol: A possession that is sign of money, power and some other mark of social status. Different countries have different status symbol. China– children are status symbol. Russia – cell phones with gems Malaysia– fake braces etc.

Subculture A subculture is a group whose members share beliefs and common experiences which set them apart from others Everyone of us belong to many subcultures depending upon our age, race, ethnic background and place of residence. Determined by nature fashions, mannerisms, and argot

Religious Subcultures Common Beliefs about same religion Defined religious class Religious themes can spill over into everyday consumption -“Cult products” Marketing opportunity among religious subcultures Shiya, Sunni, Wahabi, Deo band etc

Microculture & Consumer Identity People who are part of microculture freely choose to identify with a lifestyle or aesthetic preferences. Microculture can gel around fictional character or events, which help in defining their extended self. Turners: Car racers in late teens or early 20 s apple products Gul Ahmed , Horse Riders

Ethnic and Racial Stereotypes • Many subcultures have powerful stereotypes associated with them Subgroups are assumed to possess certain traits (often erroneously) which can be cast either positively or negatively Muslims are terrorists Women can’t do as good of a job as a man Men are the "backbone. "

Ethnic and Racial Subculture Ethnic subculture is a self-perpetuating group who share common cultural or genetic ties where both its members and others recognize it as a distinct category. Ex: Pakistan is virtually synonymous with common culture, claim to be the same ancestors As compared to US, a heterogeneous society, incorporate diff cultures, consumers expand great effort to join the mainstream of dominant society.

High-Context culture Group members tend to b tighlty knit, and infer meaning that go beyond the spoken world Symbols and gestures instead of words Carry much of the weight of message Knowledge is relational, interconnected people have close connections over a long period of time.

a party with friends, family gatherings Meeting with friends

Low context Culture Low context refers to societies where people tend to have many connections but of shorter duration or for some specific reason Knowledge is more often transferable or just for the sake of exchange of information Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities. a chain supermarket, a cafeteria, a convenience store, sports where rules are clearly laid out, a motel.

Acculturation The process of movement and adaptation to one country’s cultural enviorment by a person from another country Important issue for marketers because of our increasingly global society Modernization Turkish Acculturation

Ethnicity and Marketing Strategies The minority group find an advertising spokesperson from their own group more trust worthy. Translates into more positive brand attitudes

Progressive Learning Model People Gradually come to know about a new culture as they come in contact with it increasingly Mixing of Culture with host culture

How Religion Influences Consumption Religious groups Influence Companies decisions by encouraging their members to boycott products or stage protests Lays controversy Shehzan Bakery

How Religion Influences Consumption Halal Vs Haram Food Kosher Food Cow meat consumption Veg Korma Hardees & Mc Donalds do not serve Ham burgers in Muslim Countries.

Age Cohort People Have of similar ages similar experiences Share many common memories about cultural heroes Important historical events

Age Subcultures Multigenerational Marketing Strategy

The Youth Market 21. 5 % are from 15 -25 Years old in Pakistan. Great potential for Marketers. Increase in birthrate increase in youth market.

Teens Values, Conflicts and Desires This age subculture have a number of needs including Experimentation Belonging Independence Responsibility Approval from others.

Smoking cigarettes as a Status activity

Use of Axe will make you famous in Girls

Teens Conflicts Autonomy versus belonging Rebellion versus conformity Idealism versus pragmatism Narcissism versus intimacy

Autonomy versus belonging

Rebellion versus conformity

Idealism versus pragmatism

Narcissism versus intimacy

Researching the Youth Market Important because teens are the consumers in training. Brand loyalty often develops in teenage. It is important to know that what is cool to teens. Teenagers also influence the purchase decision of their parents.

Tweens

Generation Y

Generation X

The Gray Market

How should Marketers Talk to Seniors? Autonomy Connectedness Altruism

Perceived age You are only as old as you feel

Segmenting Seniors Senior friendly products