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The Family and Its Social Class StandingBMAKT3101 | Consumer BehaviourBMAKT3101 | Consumer Behaviour
Prepared by Noraizan Abdul Rashid
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Learning Objectives
1. To Understand the Changing Nature of U.S. Families, Including Their Composition and Spending Patterns.
2. To Understand the Socialization Process
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
2. To Understand the Socialization Process and Other Roles of the Family.
3. To Understand the Dynamics of Husband-Wife Decision Making, as Well as the Influence of Children in Family Consumption Decision Making.
2Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Learning Objectives (continued)
4. To Understand How Traditional and Nontraditional Family Life Cycles Impact Consumer Behavior.
5. To Understand What Social Class Is and
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
5. To Understand What Social Class Is and How It Relates to Consumer Behavior.
6. To Understand the Various Measures of Social Class and Their Role in Consumer Behavior.
3Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Learning Objectives (continued)
7. To Appreciate the Distinctive Profiles of Specific Social Class Groupings.
8. To Understand the “Ups and Downs” of Social Class Mobility.
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Social Class Mobility.
9. To Understand the Relationship Between Social Class and Geodemographic Clusters.
10. To Understand the Affluent Consumer.
4Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Learning Objectives (continued)
11. To Understand the Middle-Class Consumer.
12. To Understand the Working Class and Other Nonaffulent Consumers.
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Other Nonaffulent Consumers.
13. To Understand the Nature and Influence of the “Techno-Class.”
14. To Understand How Social Class Is Used in Consumer Research Studies.
5Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
As You See It, What Is the Main “Family Message” of This Ad?
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide6Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
It Reminds Parents of the Importance of Creating “Quality
Time.”
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide7Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Changing U.S. Family
• Types of families
– Nuclear
– Extended
– Single-parent
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
– Single-parent
• Changes in household spending patterns
8Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Evidence of the Dynamic
Nature of U.S.
Households -Figure 10-2
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Figure 10-2
9Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Consumer
Socialization
The process by which
children acquire the
skills, knowledge, and
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Socializationskills, knowledge, and
attitudes necessary to
function as consumers.
10Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
What Is the Name and Definition of the Process Depicted in
This Ad?
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide11Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer BehaviourConsumer Socialization - the Process by Which
Children Acquire the Skills, Knowledge, Attitudes,
and Experiences Necessary to Function as
Consumers
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide12Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Other Functions of the Family
• Economic well-being
• Emotional support
• Suitable family lifestyles
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide13Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Family Decision Making
• Dynamics of Husband-Wife Decision Making
– Husband-Dominated
– Wife-Dominated
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– Wife-Dominated
• Expanding Role of Children In Family Decision Making
– Choosing restaurants and items in supermarkets
– Teen Internet mavens
– Pester power
14Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Family Life Cycle
• Traditional Family Life Cycle
– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
– Stage III: Parenthood
– Stage IV: Postparenthood
– Stage V: Dissolution
• Modifications - the Nontraditional FLC
15Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
To Which Stage of the Family Life Cycle Does This Ad Apply,
and Why?
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide16Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Bachelorhood – The Target Consumer Is Not Yet Married
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide17Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Nontraditional FLC Family Stages
Alternative FLC Stage Definition/Commentary
Childless couples Increasingly acceptable with more career-oriented married women and delayed marriages
Couples who marry later in life Likely to have fewer or no children
Couples with first child in late 30’s or Likely to have fewer children. Want
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Couples with first child in late 30’s or later
Likely to have fewer children. Want the best and live quality lifestyle
Single parents I High divorce rate - about 50% lead to this
Single parents II Child out of wedlock
Single parents III Single person who adopts
Extended family Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.
18Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Social Class
The division of
members of a society
into a hierarchy of
distinct status classes,
so that members of
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Social Class so that members of
each class have either
higher or lower status
than members of other
classes.
19Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer BehaviourSocial Class Measure and DistributionTable 10.8
SOCIAL CLASSES and PERCENTAGE
Upper 4.3%
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Upper-middle 13.8%
Middle 32.8%
Working 32.3%
Lower 16.8%
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Social Class Measurement
• Subjective Measures
– individuals are asked to estimate their own social-class positions
• Objective Measures
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• Objective Measures
– individuals answer specific socioeconomic questions and then are categorized according to answers
21Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer BehaviourObjective Measures
Single-variable indexes
• Occupation
Composite-variable indexes
• Index of Status
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• Occupation• Education• Income
• Index of Status Characteristics
• Socioeconomic Status Score
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Discussion Questions
• What are the advantages to a marketer using the objective method to measure social class?
• When would the subjective or reputational
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
• When would the subjective or reputational method be preferred?
23Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Social Class Mobility
• Upward mobility
• Downward mobility
• Rags to riches?
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide24Copyright 2010 Pearson Education, Inc. 24
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Geodemographic
Clusters
A composite
segmentation
strategy that uses
both geographic
variables (zip codes,
neighborhoods) and
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Clustersneighborhoods) and
demographic
variables (e.g.,
income, occupation)
to identify target
markets.
25Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer BehaviourPrizm ClustersFigure 10.10a, b
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide26Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Affluent Consumer
• Growing number of households can be classified as “mass affluent” with incomes of at
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
incomes of at least $75,000
• Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income 27Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
The Affluent Consumer
Three Segments of Affluent Customers’ Customers’ Average Household Expenditures - Figure 10.12
28Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
What Is the Middle Class?
• The “middle” 50 percent of household incomes - households earning between $25,000 and $85,000
• The emerging Chinese middle class
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• The emerging Chinese middle class
• Moving up to more “near luxuries”
Copyright 2010 Pearson Education, Inc. 29Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Working Class?
• Households earning $40,000 or less control more than 30 percent of the total income in the U.S.
• These consumers tend to be more brand
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• These consumers tend to be more brand loyal than wealthier consumers.
30Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Discussion Questions
• What types of products are targeted to the working class?
• What issues must marketers consider when targeting their ads to the working
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when targeting their ads to the working class?
31Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Techno Class
• Having competency with technology
• Those without are referred to as “technologically underclassed”
• Parents are seeking computer exposure
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• Parents are seeking computer exposure for their children
• Geeks now viewed as friendly and fun
32Copyright 2010 Pearson Education, Inc.Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
In What Ways Have the Prestige and Status of Geeks Been
Changing?
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Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
The Change is Due to the
Importance of Computers.
ALL RIGHTS RESERVEDNo part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide34Copyright 2010 Pearson Education, Inc.
Chapter Ten Slide
Faculty of Business Management and Globalization
BMAKT3101 | Consumer Behaviour
Consumer Behavior and
Social Class
• Clothing, Fashion, and Shopping
• The Pursuit of Leisure
• Saving, Spending, and Credit
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• Saving, Spending, and Credit
• Social Class and Communication
35Copyright 2010 Pearson Education, Inc.Chapter Ten Slide