Social Class

The Process of Social Stratification:

Social stratification then is the general term whereby people in a
society are ranked by other members of a society into higher and
lower social positions, which produces a hierarchy of respect or
prestige.

The Nature of Social Class:

The term social class has been defined as a group consisting of a
number of people who have approximately equal positions in a
society. These positions may be achieved rather than ascribed, with
some opportunity for upward or downward movement to other class.

Following six basic characteristics of social classes

1.

Social class exhibit status:

Social class and status are not equivalent concepts although they
do have an important relationship. Status generally refers to
ones rank in the social system as perceived by other members
of society.
Symbols of status: People buy products for want the products
mean as well as what they can do. That is, products and services
are seen to have personal and social meanings in addition to
their purely functional purpose. Some members of each social
class to engage in conspicuous consumption while others spend
more conservatively.

Marketers should recognize that the use of prestige

appeal rests on the following assumptions:
- The need for prestige or self-esteem is universal.
- Prestige is related to and satisfied by ones product/ service
purchases.
- The manifestation and satisfaction of this need vary across culture.
- A companys multinational success depends on communication
and embodying product prestige in a way that is culturally
appropriate for target segments
The effectiveness of a product or service prestige appeal is
conditioned on the basis of five factors:
It is relatively expensive.

It is of high quality.
It is in limited supply.
Not everyone can qualify for it.
It is purchased by a respected and admired group of people.

Blurring of symbolism:
At one time, class difference in status and its symbols where an
accepted fact of life in clothing, housing and furnishings, food,
drink, speech and even religious affiliation. Today, however
views of status symbols are changing. Rapid advantages in
technology and communications have spread and desire for the
availability of these material pleasures through all social
classes.

2.

3.

4.

Social class indicators/ multidimensional:

Social class is not equivalent to occupation, or income, or any
one criterion; however, it may be indicated by or be related to
one or more of these measures. It is important for the marketer
to realize that some of these variables are more reliable than
others.
Social class are hierarchical: Social classes have a vertical
order to them, ranging, from high status to low status. They
exist as a position on the social scale. Individual may be placed
within a class on this hierarchy, based on status criteria.
Social class restrict behavior: Interaction between the classes
members of the same social class tend to associate with each
other and not to any large extent with members from another
social class because they share similar educational backgrounds,
occupations income levels or lifestyles.

5.

6.

Social classes are homogeneous: Social class may be viewed

as homogeneous divisions of society in which people within a
class have similar attitudes, activities, interests and other
behavior patterns. Homogeneity allows the marketer in many
cases to effectively segments the market by social class and to
develop appealing marketing mixes.
Social classes are dynamic: Social stratification systems in
which people have some opportunity for upward or downward
movement are known as open systems. People in closed systems
have inherited or ascribed status; that is, they are born into one
social level and are unable to leave it.
Thus, the difference between a system based on earned or
achieved status versus one based on inherited status is
significant with regard to social mobility.

Social Class Measurement Categorization:

Social class, generally, three methods have been utilized.
Subjective method: In this approach, individuals are asked to rank
themselves in social-class hierarchy. However, because most people
are reluctant to categorize themselves as either lower or upper class.
The reputation method: This approach asks members of a
community to rank each other in the status system. Because people
know each other in order to rank.
The objective method: Individuals are ranked on the basis of certain
objective factors and are positioned accordingly in the social-status
hierarchy.

Trends for social class evolution

Upward Mobility

Downward Mobility

The measurement of social class

Subjective Measures

Reputational Measures

Objective Measures
Composite-variable index
Index of status
characteristics
Single-variable index weight measure of
occupation,
Occupation
source of income
Education
house type
Income
dwelling area
Cultural interest
World view
Etc.,

Socio economic status score

A measure using three basic socio
economic variables:
occupation
income and
educational attainment

Lower class to upper class

Social Class Lifestyles

The significance of social stratification for the marketer is that there
are differences in values, attitudes and behavior of each of the classes.
Some major distinction between each of the social classes:
Upper Class : Upper Upper Upper Middle Upper Lower
Middle Class: Middle Upper Middle Middle Middle Lower
Lower Class : Lower Upper Lower Middle Lower Lower

Social-Class Profiles
THE UPPER-UPPER CLASS--COUNTRY CLUB
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 physicians and lawyers
May be heads of major financial institutions, owners of major
long-established firms
Accustomed to wealth, so do not spend money conspicuously
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

Continued to Prev. Slide

THE UPPER-MIDDLE CLASS--ACHIEVING
PROFESSIONALS
Have neither family status nor unusual wealth
Career oriented
Young, successful professionals, corporate managers, and
business 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 life
Their homes serve as symbols of their achievements
Consumption is often conspicuous
Very child oriented

continued
THE LOWER-MIDDLE CLASS--FAITHFUL
FOLLOWERS
Primary non-managerial white-collar workers and highly paid
blue-collar workers
Want to achieve respectability and be accepted as good
citizens
Want their children to be well behaved
Tend to be churchgoers and are often involved in churchsponsored activities
Prefer a neat and clean appearance and tend to avoid faddish
or highly-styled clothing
Constitute a major market for do-it-yourself products

continued
THE UPPER-LOWER CLASS--SECURITY-MINDED
MAJORITY
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

continued
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

Social Class and Consumer Behavior:

This section examines the most significant findings concerning various
classes behavior with regard to the products they buy, the places they
shop and the promotions and prices they respond to.
Products and services consumed : Product choice and usage differ
among the social
Shopping Behavior : Shopping behavior also varies by social class
store choice, high status etc.
Promotional response patters : Important class differences exist with
regard to promotional response. The social class have differing media
choice and usage patterns.
Price related behavior : Lower class people buy products on sale or
priced power.

How is it important to understand social class in consumer behaviour study?

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