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
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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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
15–5
Status Crystallisation
• Degree of consistency on status dimensions
–
–
–
–
occupation
education
income
ownership
• Status crystallisation is low in Australia
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
15–6
Social Class in Australia*
• Upper class
–
10% of population
• Middle class
–
60%
• Lower class
–
30%
*Source: ABS
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
15–7
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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