SOCIAL CLASS & CONSUMER BUYING BEHAVIOUR-

 

SOCIAL CLASS &  CONSUMER BUYING BEHAVIOUR

                    MBA / BBA MARKETING MANAGEMENT 

                      QUESTION PAPER OCTOBER 2019  

                                    PUNE UNIVERSITY

 

Top 20 points on social class-

1.      People in a particular society are divided into different distinct social  classes.

2.      People are classified into social classes according to different characteristics.

3.      Consumption patterns vary with the change in social classes.

4.      It implies that a group of people or market can be structured or subdivided into smaller groups on the basis of differences in their behavioral patterns

5.      They may also differ from one another in the degree to which they possess intellectual and material things such as knowledge, skills, and money.

6.      We use the concept of social class to describe these differences found among consumers

7.      As social structures vary among groups, they display different consumption patterns, lifestyles, and behavior.

8.      One should note that, every human society maintains a system of social stratification, or layering, through which members are assigned ranks, grades, or positions. Using these some members of society exploit others.

9.      the history of all hitherto existing society is the history of class struggles. There are have and have not, oppressors and oppressed, rich and poor, lord and serf. It means that rewards and responsibilities among people are not distributed equally.

10.  Social stratification as “the general term whereby people in a society are ranked by other members of a society into higher and lower social positions, which produces a hierarchy of respect or prestige”1. This stratification brings with its social inequality that is, persons in lower strata have fewer access to money, power, prestige and privilege.

11.  Caste system is the older and traditional form of social stratification. Under the caste system, major emphasis is placed upon hereditary status.

12.  society may be stratified using six variables. They are: (1) prestige; (2) occupation, (3)

possessions, (4) interaction, (5) class consciousness, and (6) value orientation.

13.  social class may best be understood by looking at the lifestyles of people. People belonging to a

particular class are likely to display same lifestyle by buying and consuming similar types of products.

14.  social class characteristics. The major social class characteristics are: they (1) are bounded. (2) are hierarchical, (3) are mutually exclusive, (4) are exhaustive, (5) are influential, (6) exhibit status, (7) multidimensional, (8) restrict behavior, (9) are homogeneous, and (10) are dynamic.

15.  The basic factors determining an individual’s class membership are: (1) occupation, (2) personal performance, (3) possessions/artifacts, (4) interactions/associations, (5) education, and (6) influence.

16.  The basic techniques that are used by marketers to measure social classes are: (1) reputational

approach, (2) subjective approach, and, (3) objective approach.

17.  The reputational technique takes into account, opinions of other people with regards to an individual’s social class, where others may not appropriately rank an individual either because of his own disliking or to protect their self images. The subjective method is not bias free in the sense that, individuals are most of the time likely to exaggerate their own positions with respect to others. The objective method, in measuring social classes of individuals, use such  emographic variables as income, occupation, education, type or area of residence, organizational  involvement, and material belongings

18.  Another well developed and widely used method of measuring social classes is the Hollingshedad Index of Social Position (ISP). This method measures social classes along two dimension: occupation and income.

19.  W.L. Warner’s classification is accepted widely. He identified six social classes that exist in societies around the In every society, a setof social classes exist.  world. The six commonly identified social classes are: (1) upper-upper; (2) lower-upper; (3) upper-middle; (4) lower-middle; (5) upper-lower; and (6) lower-lower.

20.  Marketers are particularly interested in social classes as the knowledge helps them formulating appropriate market segmentation, positioning, pricing, distribution, and communication strategies.

21.  Upper-Upper Class: The upper-upper class consists of people from old, wealthy families, often with inherited wealth for at least more than one generation. People of this group are found to be very polished in their behavior. Members of this group often live in large homes in exclusive neighborhoods. They are found to exhibit a sense of social responsibility. They patronize fancy, expensive, and status shops. Though upper-upper class people buy expensive items, they do not conspicuously display their wealth and properties. People of this group constitute a very good market for antiques, art, expensive and rare jewelry, luxury travel, and uniquely designed  products.

22.  Advertising and promotional messages are perceived differently by the members of different social classes.

Consumer behavior differ along following points in different social classes

Social Class and Leisure Activities:

Social Class and Purchase of Expensive Items:

Social Class and Response to Advertising and Promotional

Messages:

Social Class and Decision Making Process:

Social Class and Media Usage:

Social Class and Shopping Behavior:

  

EXAMPLES

When an

1.      individual becomes an MP, he/she is expected to fulfill certain roles associated with that status. An MP may have legislative roles, political roles, and ceremonial roles. It is to mention here that, certain  Behaviors are considered improper for an MP, such as accepting bribes

2.      two individuals - one serving in a private firm as an executive, and others serving a public university as teacher - having the same amount of income may not belong to the same class as their spending patterns will vary. Therefore, you cannot predict an individual's class membership based on his income.

3.      For example, all university professors do not enjoy the same status as their personal characteristics vary.

4.      Air hostesses' status, in our country has changed over time with the change in people's attitudes toward this profession. This change has brought change in their social class position.

5.      Interaction or association may be considered as an important determinant of an individual’s social class. It is found that friendship, date, and marriages take place within people of the same class.

6.      A university professor may have the same amount of income as a motor mechanic. But, lifestyles of these two individuals will differ so as their social classes.

7.      it is not possible for a marketer to devise appropriate strategies in areas ranging from product development, to market segmentation, to pricing, and finally to distribution.

8.      Social class is a very useful predictor of buying behavior.  shopping more frequently than lower class women. Middle and lower class people spend much time in shopping and also enjoy window shopping while upper class people shop quickly. Lower class people avoid status stores and prefer shops where they get discount and other facilities such as credit and friendly behavior. People of upper and upper middle classes are very organized in their purchases. They are found to be more knowledgeable with regards to different aspects of purchase. Middle class people work more at their shopping as they are value conscious and seek out the best buy for the money. The lower classes’ purchases are mostly routinized and they depend more on instore information sources.

9.      Social Class and Media Usage: There is a relationship between social classes and media usage. Different studies found that higher class people spend more of their leisure time in reading magazines and books, listening to the radios, and going to movies. They spend less time in watching television. Higher class people read more news and  analysis magazines, notification books, and editorial materials in the newspaper. The lower class people, on the otherhand, read more fiction books, genral women’s magazines, and genral news stories in newspapers. Lower class people usually subscribe newspapers less than the middle and upper clas people. Lower class people spend much time in fornt of television than upper class people.

10.  Advertising portraying day-to-day life and solutions to practical problems can attract lower class people more. Advertising messages offering inducements such as ‘price-cuts’, ‘buy two, get one free’ etc. can influence lower class people more.

11.  The upper class people may be attracted by different, sophisticated, stylish, witty, and individualistic appeals.