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.

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

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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

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

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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

Social Standing and Behaviour

Not all Behaviours are Unique

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Hawkins

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Behaviour and Social Class

– Product: fine china

– Situation: entertainment

 e.g Opera subscription

• Not all behaviours are unique:

– Situation: entertainment

 e.g Football match

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Hawkins

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Status Crystallisation

• Degree of consistency on status dimensions

– occupation

– education

– income

– ownership

• Status crystallisation is low in Australia

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

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Social Class in Australia*

• Upper class

– 10% of population

• Middle class

– 60%

• Lower class

– 30%

*Source: ABS

The Functional Approach to

Social-Class Structure

The Reputational Approach to

Social-Class Structure

Positioning Within Social Class

Upward-Pull Strategy Targeted at the

Middle Class

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Hawkins

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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

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Hawkins

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13

Measurement of Social Class and its

• Uses:

– Differences in product consumption

 instant coffee

 snack foods

 imported wine

Consumption Differences Across the

Hollingshead Index of Social Position Strata

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

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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

Using Social Stratification to Develop

Marketing Strategy

Use of Income and Purchase Motivation for

Target Market Appeal

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Hawkins

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Next Lecture…

Chapter 16:

Culture and Cross-Cultural Variations in

Consumer Behaviour