Upload
sahil-vadhia
View
220
Download
0
Embed Size (px)
Citation preview
7/30/2019 Social Class Final
1/61
SOCIAL CLASSRAVI (61)
SAHIL (66)DHAVAL
1
7/30/2019 Social Class Final
2/61
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.
2
7/30/2019 Social Class Final
3/61
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"
7/30/2019 Social Class Final
4/61
What is social class ?
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
7/30/2019 Social Class Final
5/61
What is social class ?
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.
7/30/2019 Social Class Final
6/61
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
6
UpperClass
MiddleClass
Lower Class
UpperClass
MiddleClass
LowerClass
7/30/2019 Social Class Final
7/61
What determines social class?
Occupation
Personal
Performance Interactions
Possessions
Value orientations
Classconsciousness
Income Level Heritage
Educational
attainment
Level of Influence
7
7/30/2019 Social Class Final
8/61
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.
8
7/30/2019 Social Class Final
9/61
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
9
7/30/2019 Social Class Final
10/61
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.
10
7/30/2019 Social Class Final
11/61
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)
11
7/30/2019 Social Class Final
12/61
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.
12
7/30/2019 Social Class Final
13/61
Factors Important in DeterminingStatus
Authority over others
Ownership of Property
Consumption Patterns & Lifestyle
Public Service Association
Power
Income
Occupation
Education
Ancestry
13
7/30/2019 Social Class Final
14/61
India's top status symbols
1. Education degree
2. Car
3. Home location
4. Cell phone5. Children school / College
6. Credit card
14
7/30/2019 Social Class Final
15/61
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)
15
7/30/2019 Social Class Final
16/61
Marketing practitioners most often use three socio-
economic variables on a daily basis to measure social-class
Family income
Occupational status
Educational attainment
16
7/30/2019 Social Class Final
17/61
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.
17
HOW IS IT IMPORTANT TO UNDERSTAND SOCIAL CLASS IN CONSUMER
7/30/2019 Social Class Final
18/61
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:
7/30/2019 Social Class Final
19/61
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)
19
7/30/2019 Social Class Final
20/61
20
7/30/2019 Social Class Final
21/61
Unique behavioursSituation: entertainment e.g. Opera subscription
Shared behaviours
Situation: entertainment e.g. Football match
21
7/30/2019 Social Class Final
22/61
22
7/30/2019 Social Class Final
23/61
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
23
7/30/2019 Social Class Final
24/61
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.
24
7/30/2019 Social Class Final
25/61
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.
25
7/30/2019 Social Class Final
26/61
Income based classification
Higher Income
Upper Middle Income
Middle Income
Lower Middle Income
Lower Income
26
7/30/2019 Social Class Final
27/61
SECA&B
SECC
SECD,E
Tier 1(Consumingclass)
Tier 2 ( The aspiring
class)
Tier 3 ( The underprivileged)
The new urban Indian consumerpyramid
27
7/30/2019 Social Class Final
28/61
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
28
7/30/2019 Social Class Final
29/61
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
29
7/30/2019 Social Class Final
30/61
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
30
7/30/2019 Social Class Final
31/61
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
31
7/30/2019 Social Class Final
32/61
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
32
7/30/2019 Social Class Final
33/61
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
33
7/30/2019 Social Class Final
34/61
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
34
7/30/2019 Social Class Final
35/61
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
35
7/30/2019 Social Class Final
36/61
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
36
7/30/2019 Social Class Final
37/61
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
37
7/30/2019 Social Class Final
38/61
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
38
S bj ti M t f S i l
7/30/2019 Social Class Final
39/61
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
7/30/2019 Social Class Final
40/61
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
7/30/2019 Social Class Final
41/61
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?
7/30/2019 Social Class Final
42/61
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)
42
Index of Status Characteristics
7/30/2019 Social Class Final
43/61
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)
43
Socioeconomic Status Score
7/30/2019 Social Class Final
44/61
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
44
7/30/2019 Social Class Final
45/61
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)
45
7/30/2019 Social Class Final
46/61
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
46
7/30/2019 Social Class Final
47/61
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
47
PRIZM (P t ti l R ti I d b Zi
7/30/2019 Social Class Final
48/61
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
48
7/30/2019 Social Class Final
49/61
49
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.
7/30/2019 Social Class Final
50/61
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.
50
Mediamark Research Inc Affluent
7/30/2019 Social Class Final
51/61
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)
51
7/30/2019 Social Class Final
52/61
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
52
Wh t i W ki Cl d th ffl t
7/30/2019 Social Class Final
53/61
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
53
7/30/2019 Social Class Final
54/61
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
54
Consumer Behavior Application for
7/30/2019 Social Class Final
55/61
Consumer Behavior Application forSocial Class
Clothing, Fashion,and Shopping
The Pursuit ofLeisure
Saving, Spending,
and Credit
Social Class and
Communication
55
Clothing Fashion and
7/30/2019 Social Class Final
56/61
Clothing, Fashion, andShopping
56
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.
7/30/2019 Social Class Final
57/61
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
7/30/2019 Social Class Final
58/61
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
7/30/2019 Social Class Final
59/61
Social Class andCommunication
59
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
7/30/2019 Social Class Final
60/61
http://www.pbs.org/peoplelikeus/games/chintz.html
60
http://www.pbs.org/peoplelikeus/games/chintz.htmlhttp://www.pbs.org/peoplelikeus/games/chintz.htmlhttp://www.pbs.org/peoplelikeus/games/chintz.htmlhttp://www.pbs.org/peoplelikeus/games/chintz.htmlhttp://www.pbs.org/peoplelikeus/games/chintz.html7/30/2019 Social Class Final
61/61
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
61