Income & Social Class

Chapter 13
 Social
Social Class
Class
Social Class is Determined by a Complex Set of
Variables, Including: Income,
Income Family Background,
and Occupation.
Occupation
Social Class Influences:
How
How Much
Much Money
Money Will
Will Be
Be Spent
Spent

How
How Money
Money Will
Will Be
Be Spent
Spent

Access
Access to
to Resources
Resources Such
Such as
as Education,
Education, Housing,
Housing,
and
and Consumer
Consumer Goods
Goods

Taste
Taste and
and Lifestyles
Lifestyles
 Social
Social Stratification
Stratification
Creation of Artificial Divisions In a Society by:

Achieved Ascribed
Status Status
Earned Through Obtained Through
Hard Work Luck or Inheritance

Status
Status
Hierarchy
Hierarchy
Some
Some Members
Members Are
Are
Somehow
Somehow Better
Better Off
Off
Than
Than Others
Others
Living Standards Measurement (LSM)
•• South
South African
African Social
Social Class
Class Measure
Measure
Independent
Independent of
of Race
Race
•• Components:
Components:
–– Fridge/freezer
Fridge/freezer in in home
home –Hi-fi or music
–– Water
Water oror electricity
electricity in home center
in home
–– Polisher
Polisher oror vacuum cleaner –Employ domestic
vacuum cleaner
–– Supermarket shopper
Supermarket shopper
worker
–– Car in household –Washing machine
Car in household
–– TV set –Sewing machine
TV set
–– Microwave
Microwave ovenoven
–– Rural
Rural oror metropolitan
metropolitan
 LSM Classes

•• 1.
1. Traditional
Traditional have-nots--contains
have-nots--contains
16
16 percent
percent of of population;
population; mainly
mainly
female;
female; many
many widowed,
widowed, divorced
divorced or
or
separated;
separated; living
living inin owned
owned rural
rural
huts;
huts; largely
largely illiterate.
illiterate. Unemployed
Unemployed
or
or retired;
retired; lowest
lowest income,
income, lack
lack
electricity,
electricity, few
few durables.
durables. Use
Use
essential
essential commodities
commodities
 LSM Classes (Continued)

• 2. Self-centered non-earners--
contains 14 percent of population;
Mainly rural age 16-24; largely
illiterate; Slightly higher income;
small use of savings facilities;
minimal ownership of large
appliances and motor vehicles; no
money for home or self improvement
LSM Classes (continued)

•• 3.
3. Traditional
Traditional Rurals--Comprise
Rurals--Comprise 13 13
percent
percent ofof population;
population; rural
rural with
with
some
some urban;
urban; age
age 16-34,
16-34, single;
single;
slightly
slightly higher
higher income,
income, Illiteracy
Illiteracy
high,
high, limited
limited large
large appliances
appliances & & use
use
of
of financial
financial services
services and
and credit
credit use.
use.
 LSM Classes (Continued)

•• 4.
4. Urbanized
Urbanized Singles--13
Singles--13 percent
percent of
of
population;
population; mainly
mainly metropolitan,
metropolitan,
high
high number
number ofof 16-34-year-old
16-34-year-old men;
men;
Some
Some education,
education, but
but few
few complete
complete
high
high school;
school; moderate
moderate incomes;
incomes; use
use
aa variety
variety of
of consumables
consumables (except
(except
“sophisticated
“sophisticated goods”),
goods”), and
and have
have
some
some savings
savings account
account
 LSM Classes (continued)

•• 5.
5. Young
Young Aspirers--13
Aspirers--13 percent
percent ofof
population;
population; urban,
urban, some
some high
high
school
school education,higher
education,higher incomes;
incomes;
stoves,
stoves, refrigerators,
refrigerators, TVs,
TVs, high-fi’s,
high-fi’s,
and
and users
users of
of most
most financial
financial services
services
improvement,and
improvement,and homehome
improvement
improvement
LSM Classes (Continued)
•• 6.
6. Emerging
Emerging Market--13
Market--13 percent
percent ofof
population;
population; metropolitan,
metropolitan, somesome post-
post-
matriculation
matriculation education;
education; highhigh full
full
time
time employment,
employment, high
high income,
income,
extensive
extensive ownership
ownership of of large
large
appliances,
appliances, but
but not
not luxury.
luxury. Above
Above
average
average mass
mass media
media consumption,
consumption,
vehicle
vehicle ownership,
ownership, andand expenditures
expenditures
on
on financial
financial services,
services, self
self
 LSM Classes (continued)

•• 7.
7. Established
Established Affluents--12
Affluents--12 percent
percent
of
of population;
population; high
high school
school
education,
education, mostly
mostly married
married &&
employed
employed full
full time.
time. 7070 percent
percent own
own
homes;
homes; use
use sophisticated
sophisticated
investment
investment services
services & & have
have large
large
appliances
appliances && vehicles.
vehicles. High
High mass
mass
media
media use,
use, except
except black
black media
media
 LSM Classes (Continued)

•• 8.
8. Progressive
Progressive Affluents--6
Affluents--6 percent
percent
of
of population;
population; mostly
mostly
urban,educated,and
urban,educated,and most
most affluent.
affluent.
Highest
Highest home
home ownership,
ownership, with
with
many
many 2nd
2nd homes;
homes; Sophisticated
Sophisticated
luxury
luxury items
items &
& financial
financial services,
services,
highest
highest mass
mass media
media exposure
exposure
Income Patterns
Money Personalities
Age Subcultures

Chapter 15
 Age Cohorts
• People of similar ages who have
undergone similar experiences,
share many common memories,
cultural heroes, important
historical events { My Generation}
 BABY BUSTERS:
"GENERATION X"
• So -called baby busters include many
people, both in and out of college, whose
tastes and priorities are beginning to be
felt in fashion, popular culture, polities,
and marketing. Their (supposed) sense of
alienation is echoed by their choices in
music, media and fashion.
 Teen
Teen Values
Values and
and Conflicts
Conflicts
• Teens use products to express their identities,
explore the world and their new-found freedoms in it,
and rebel against their parents.
• Marketers often do their best to assist Teens in the
above decisions.
• The five most important social issues for Teens are:
– Race relations,
– Child abuse,
– Abortion, and
– AIDS,
– The environment.
 Teen
Teen Values
Values and
and Conflicts
Conflicts
There are Four Themes of Conflict Common to All
Teens:
Teens

Autonomy Vs. Belonging Rebellion Vs. Conformity

Want
WantIndependence
Independencebut
but Rebellion Against Social
Need
NeedSupport
Support Norms but Want Acceptance

Narcissism Vs. Intimacy Idealism Vs. Pragmatism

Obsessed With Must Reconcile How the
Appearance but Want World Should be With
Sincere Relationships Reality
 Segments of busters/
Subcultures
• Cynical disdainers: the most pessimistic and skeptical
about the world.
• Traditional Materialists: the most like baby boomers in
their thirties and forties, these young people are upbeat,
optimistic about the future, and actively striving for what
they continue to view as the American Dream of material
prosperity.
• Hippies Revisited: This group tends to espouse the non-
materialistic values of the Sixties. Their priorities are
expressed through music, retro fashion, and a strong
interest in spirituality.
• Fifties Machos: These consumers tend to believe in
traditional gender roles, are politically conservative, and
they are the least accepting of multiculturalism.
 The
The College
College Market
Market
Advertisers
Advertisers Spend
Spend $100
$100Million
MillionaaYear
Yearto
to
Influence
Influence Them
Them
Purchase
Purchase$20
$20Billion
Billion Worth
Worthof
of Products
ProductsaaYear
Year

Media
Media Habits
Habits
Watch
WatchLess
LessTV
TVand
and
Read
ReadFewer
FewerNewspapers
Newspapers
Read
ReadCollege
CollegeNewspapers
Newspapers
Reach
ReachThrough
ThroughSampler
SamplerBoxes
Boxes

Use
Useof
ofPosters
Posters(Wall
(WallMedia)
Media)
Spring
SpringBreak
Break
 THE GRAY MARKET

• The MOVIE: The old woman sits alone in her dark

apartment, while the television blares out a soap opera.
Once every couple of days, she slowly and painfully opens
her triple locked door with arthritic hands and ventures
out to the corner store to buy essentials like tea, milk,
and cereal, always being sure to pick the least expensive
brand. Most of the time she sits in her rocking chair,
thinking sadly of her dead husband and the bad times
she used to have.
• As our population ages and people are living longer and
healthier lives, the game is rapidly changing. A lot of
businesses are beginning to replace the old stereotype of
the poor recluse. The newer, more accurate image is of an
older person who is active, interested in what life has to
offer, and is an enthusiastic consumer with the means
and willingness to buy many goods and services.
Segmenting
Segmenting Seniors
Seniors
Older
Older Elderly
Elderly
55
55 -- 64
64 65
65 -- 74
74

Subsegments
Subsegments of
of the
the Mature
Mature Market
Market

Very
Very Old
Old Aged
Aged
85
85 ++ 75
75 -- 84
84
 KEY VALUES OF SENIORS

• Researchers have identified a set of key values that are

relevant to older consumers. For marketing strategies to
succeed, they should be related to one or more of these
factors:
• Autonomy: Mature consumers want to lead active lives
and to be self-sufficient. The advertising strategy for
Depends, undergarments for incontinent women made by
Kimberly-Clark, is centered around actress June Allyson
who plays golf and goes to parties without worrying about
her condition.
• Connectedness: Mature consumers value the bonds they
have with friends and family. Quaker Oats successfully
tapped into this value with its ads featuring actor Willard
Brimley, who dispenses grandfatherly advice about eating
right to the younger generation.
• Altruism: Mature consumers want to give
something back to the world. Thrifty Car Rental
found in a survey that over 40 percent of older
consumers would select a rental car company if
it sponsored a program that gives van discounts
to senior citizens centers. Based on this
research, the company launched its highly
successful program, "Give a Friend a Lift.".
• Personal growth: Mature consumers are very
interested in trying new experiences and
developing their potential.
 Effective Advertising for the
Elderly
• Keep language simple.
• Use clear, bright pictures.
• Use action to attract attention.
• Speak clearly, and keep the word count
low.
• Use a single sales message, and
emphasize brand extensions to tap
consumers' familiarity.
• Avoid extraneous stimuli (i.e., excessive
pictures and graphics can detract from
the message).