Lecture Consumer behaviour: Chapter 15 - Cathy Neal, Pascale Quester, Del Hawkins

Marketers need to understand the concept of social class and how it influences consumer behaviour. In this lecture we will examine the characteristics of social classes, how they are measured, the impact of social class on consumption and how this is used to develop marketing strategies.

Chapter 15 Social Class • Concept of social class • How social classes are measured • Measurement problems marketing managers face • Impact of social class on the consumption process • Use of social class in developing marketing strategies  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15–1 Social Class • Social class and consumption • Social class – – – cultural differences components of social class measurements of social class • Social class and consumption differences – – global similarities segmenting the affluent • Status symbols  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15–2 Social Standing and Behaviour 15–3 Not all Behaviours are Unique 15–4 Behaviour and Social Class • Unique behaviours – – Product: fine china Situation: entertainment  e.g Opera subscription • Not all behaviours are unique: • Shared behaviours – Situation: entertainment  e.g Football match  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15–5 Status Crystallisation • Degree of consistency on status dimensions – – – – occupation education income ownership • Status crystallisation is low in Australia Copyrightê2004McGrawưHillAustraliaPtyLtd 156 Social Class in Australia* Upper class – 10% of population • Middle class – 60% Lower class 30% *Source: ABS Copyrightê2004McGrawưHillAustraliaPtyLtd 157 The Functional Approach to Social-Class Structure 15–8 The Reputational Approach to Social-Class Structure 15–9 Positioning Within Social Class 15–10 Upward-Pull Strategy Targeted at the Middle Class 15–11 Measurement of Social Class and its Application to Marketing Strategy • Single-item indexes – e.g education • Multiple-item indexes – e.g Hollingshead Index of Social Position  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15– 12 Measurement of Social Class and its Application to Marketing Strategy (cont.) • Uses: – Differences in product consumption    instant coffee snack foods imported wine  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15– 13 Consumption Differences Across the Hollingshead Index of Social Position Strata 15–14 Social Class and Marketing Strategy • Relate status variables to product consumption – Usage, motivation, symbolic meaning • Target social status – Actual lifestyle, desired lifestyle, media, etc • Develop product position – Select desired position (based on actual/desired lifestyle) • Marketing mix decisions – Develop mix  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15– 15 Using Social Stratification to Develop Marketing Strategy 15–16 Use of Income and Purchase Motivation for Target Market Appeal 15–17 Next Lecture… Chapter 16: Culture and Cross-Cultural Variations in Consumer Behaviour  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15– 18 ... Approach to Social-Class Structure 15 8 The Reputational Approach to Social-Class Structure 15 9 Positioning Within Social Class 15 10 Upward-Pull Strategy Targeted at the Middle Class 15 11 Measurement...  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15 15 Using Social Stratification to Develop Marketing Strategy 15 16 Use of Income and Purchase Motivation for Target Market Appeal 15 17 Next Lecture Chapter 16: Culture and Cross-Cultural... Marketing Strategy • Single-item indexes – e.g education • Multiple-item indexes – e.g Hollingshead Index of Social Position  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  15 12 Measurement of