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Doing good never
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¼Encouraging members of the more affluent classes to remember that others are less fortunate
than themselves is the task of many organisations. Importantly, guilt may not be the best strategy
and humour may deliver better results.
There is a new creature in marketing land. Encapsulated in the snappy acronym CUB, which stands for ‘Cashed-up
Bogan’, this new target market comprises a population long neglected by prestige brands: the blue-collar workers
and tradespeople. However, to make it as a CUB, the previously lowly sparky, plumber or bricklayer must first have
done well and earned income far in excess of what medical, dentistry or legal graduates can hope to make.
‘Bogan’ was once a pejorative term referring to a person both unsophisticated and of lower social class. Typically
of working-class background, ‘bogans’ are expected to display the mannerisms and speech of the uneducated.
Importantly, they revile their upper class compatriots and revel in their blue-collar roots. Hence, their consumption
pattern has traditionally been confined to stereotypical products (e.g. the ute) and brands (e.g. Holden). This
paradigm, however, has shifted in the last decade as the building and mining industries experienced both an
economic boom and a skilled-labour shortage. From this unusual combination emerged a category of workers in
such demand that their lack of formal education, far from hindering them to earn more, simply enabled them to
start earning, and lots, from an earlier age.
A whole generation of under-30 working-class Australians is now happily propping the sales of BMWs and
expensive wines, and investing big in real estate, city apartments included, thus further growing the building
industry! And while some of them still drive a Holden ute, it is now an $80 000-plus machine with elaborate paint
jobs and top of the range options such as heated leather seats. While academic research is uncovering key elements
of the bogan lifestyle, from heavy metal music to visible tattoos and clothing choices, favourite purchases of the
CUBs include spas, and gigantic flat-screen televisions. For marketers, this group presents a challenge. They may
have the money to buy the brand but will the association erode the brand equity? Will traditional yuppies continue
to aspire to a BMW if any cashed-up carpenter can afford one too? Australian marketers are all too aware of the
predicament experienced by Burberry in the UK when its brands became (somewhat inexplicably) emblematic of
the much reviled ‘chav (council-houses and violent) crowds’.1
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496 / PART THREE EXTERNAL INFLUENCES
social stratification
the process of
assigning members
of society to different
groups according to
their social status
societal rank
social standing;
the place and
ranking granted
to an individual by
the rest of society
social-class
system
the hierarchical
division of a
society into
relatively distinct
and homogeneous
groups with
respect to
attitudes, values
and lifestyles
Social stratification is the way in which social inequality is manifest in hierarchical levels within a society.
It reflects how inequalities are socially structured and persistent over time. Although social stratification
can refer to social inequalities based on a wide range of criteria that include gender, age or ethnicity, it
most often relates to social divisions based on social class status. Many goods and services are positioned
to appeal to consumers’ existing or desired social status. Marketers need to understand consumers’
perceptions of and attitudes towards social class in order to determine whether social class can influence
consumption behaviour. However, as discussed later in this chapter, even though there has traditionally
been a link between income and social status, this may be decreasing over time.
This chapter examines the phenomenon of social stratification, the various methods of measuring social
status and the nature of Australasian social classes. We examine the influence that social position can have
on purchase and consumption and the opportunities it may present for the development of marketing
strategy.
Pierre Bourdieu explained how people’s choice of objects both reflects and determines their class status.2
Class is thus an intricate part of consumer behaviour. Our perceptions of attractiveness and beauty, for
instance, are influenced by the social environments in which we are raised. The relationships and social
networks that help us to develop the taste preferences we use to make consumption decisions are defined by
Bourdieu as ‘social capital’.
Social position is understood to influence consumer behaviour in two distinct ways, both of which relate
to the use of consumption as an economic and social signal to others.3 First, individuals can aspire to be
members of a higher social class and thus purchase goods and services that will increase their status. This
process of the lower classes emulating the consumption behaviours of those in higher classes is known as
‘trickle-down’. Second, individuals often feel the need to consume to particular levels to consolidate their
position in their own class, also known as ‘keeping up with the Joneses’. The use of products as a means of
demonstrating or acquiring status is particularly prevalent when the product is consumed in the presence
of others, a process known as conspicuous consumption.
Reflecting these two forms of signalling, the positioning of many products is based on existing or
desired social status. For example, some luxury products are positioned to appeal to both those high in
social status groups and those aspiring to reach a high social status. For those enjoying a high social status,
advertising reinforces the association of the particular brand with high social status. For those striving
for higher social status, the product is depicted in the advertising as a means to achieving some aspects of
this lifestyle.
However, not all products require a social class identity. Some advertising does not associate the product
with any particular social class. Although many white-collar and blue-collar individuals would prefer to
have more money or wealth, they are content with their basic social status. In some cases, they even hold
in disdain products that are closely associated with the upper social strata.
Everyone is familiar with the concept of social class; however, it can mean different things to people
in different parts of the world. In Australia and New Zealand, the terms social class and social standing are
used interchangeably to mean societal rank—one’s position relative to others on one or more dimensions
valued by society.
How does an individual obtain his or her social standing? This is the result of a number of factors.
Social standing is a result of characteristics that others in society desire and hold in high esteem
(see Exhibit 15.1). For example, education, occupation, property ownership and source of income all
influence social standing, as shown in Figure 15.1. Social standing ranges from the lower class, whose
members have either few or none of the socioeconomic factors desired by society, to the upper class,
whose members possess many of the socioeconomic characteristics considered by society as both
desirable and high in status. Individuals with different social standing tend to have different needs and
consumption patterns.
Because individuals with different social standing are likely to live their lives differently, a social-class
system can be defined as a hierarchical division of a society into relatively distinct and homogeneous
groups with respect to attitudes, values and lifestyles.
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© SOFITEL SYDNEY WENTWORTH
CHAPTER 15 SOCIAL STRATIFICATION / 497
Exhibit 15.1 Advertisements featuring affluent-looking models in expensive surroundings attempt
to attract higher-class consumers or those who aspire to this status.
SO C IO E C O N O M IC
FA C TO RS
S O C I AL S TAN D I N G
UNIQUE
B EH AVI O U R S
Occupation
Upper class
Preferences
Education
Middle class
Purchases
Ownership
Working class
Consumption
Income
Lower class
Communication
Figure 15.1 How social standing is derived and how it influences behaviour
The fact that members of each social class have a set of unique behaviours makes the concept relevant to
marketers. However, it is also important for marketers to understand when social position is an influencing
factor and when it is not. As shown in Figure 15.2 overleaf, not all behaviours differ between social strata;
in fact, much behaviour is shared. Therefore, it should be recognised that the applicability of social position
in the formulation of marketing strategies is often product-specific and situation-specific. Take the example
of expensive glassware. A marketing strategy for this product would need to consider issues of social
standing and also situational factors, such as whether the product is being purchased as a wedding gift or
for some other purpose.
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498 / PART THREE EXTERNAL INFLUENCES
Behaviours not
engaged in
Behaviours
associated with
a particular
social class
Unique
behaviours
Shared
behaviours
Excluded
behaviours
Behaviours shared with
other social classes
Figure 15.2 Not all behaviours within a social class are unique
The concept of social class
bounded
(social class)
having limits, so that
each social class is
clearly separated
from all others
ordered
(social class)
arrayed or
spread out in
terms of some
measurement from
lowest to highest
mutually
exclusive
(social class)
an individual can
belong to only
one social class,
though movement
from one class to
another over time
is possible
exhaustive
(social class)
every member of a
social system must
fit into a class
influential
(social class)
there must be
behavioural
variations between
the classes
Traditional views of social class assume that for a social-class system to exist in a society, the individual
classes must meet five criteria. They must be:
1 bounded
2 ordered
3 mutually exclusive
4 exhaustive
5 influential.
Bounded means that there are clear breaks between each social class, separating one class from another.
In other words, a rule that will include or exclude any particular individual must be devised for each class.
Ordered means that the classes can be arrayed or spread out in terms of some measure of prestige or status,
from highest to lowest. Mutually exclusive means that an individual can belong to only one social class,
although movement from one class to another over time is possible.
Requiring social classes to be exhaustive means that every member of a social system must fit into some
class. There must be no ‘undefined’ individuals. Finally, the social classes must be influential. There must
be behavioural variations between the classes. This is closely related to the degree of class awareness or
class-consciousness of members of the society.
If we use these five criteria as a basis, it is clear that a strict and tightly defined social-class system does not
exist in most industrialised nations. The first criterion, that the classes be distinctly bounded, is not applicable
in Australia and New Zealand. Different studies of social class in Australia have identified differing numbers
of classes. Likewise, various criteria of social class will place individuals in different categories. For example,
an individual may be considered ‘upper-middle class’ if education is the placement criterion, but ‘upper-lower
class’ if income is used. This casts doubt on the existence of mutually exclusive social classes.
Social classes can be made exhaustive simply by constructing appropriate rules. However, these rules
may distort the internal consistency of the various classes if substantial numbers of individuals clearly do
not fit into one class. This is a common problem when the assignment of families to social classes is based
on the husband’s characteristics while ignoring those of the wife. As has been seen in Chapter 12, with the
increase in the number of working wives has come the situation where the wife may contribute the same
financial resources and prestige to the family as the husband does—if not more.
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CHAPTER 15 SOCIAL STRATIFICATION / 499
A more dynamic view of social class is offered by Holt who views social stratification to be alive and
well in modern society, albeit in a different form from the rigid definition provided above.4 He notes that
consumer behaviour may be more homogenised across the social classes with the advent of mass production
and mass consumption, but that motivations to consume and the nuances of consumption patterns differ
in important aspects between classes. For example, Holt illustrates how higher-class Americans value
certain products for the instrumental opportunity they provide to demonstrate high levels of cultural
knowledge, whereas those in the lower classes value these products’ functional or terminal benefits.
Although it is apparent that ‘pure’ social classes do not exist in Australia, New Zealand and most other
industrialised societies, these societies have hierarchical groups of individuals and individuals in these
groups do exhibit some unique behaviour patterns that are different from those of other groups.
What exists is not a set of social classes but a series of status continua.5 These status continua reflect
various dimensions or factors that the overall society appreciates. In achievement-oriented societies such as
Australia, New Zealand and the United States, achievement-related factors constitute the primary status
dimensions. Therefore, education, occupation, income and, to a lesser extent, quality of residence and place
of residence are important status dimensions in these countries. Race, age and sex are ascribed dimensions
of social status; they are not related to achievement.6 Likewise, the status characteristics of a person’s
parents are an ascribed status dimension. Although the social status of one’s parents is somewhat relevant
in countries such as Australia and New Zealand, heritage is a highly significant indicator of social status in
other parts of the world.
Status crystallisation
The various status dimensions are related to each other both functionally and statistically. In a functional
sense, the status of your parents can influence your education, which in turn influences your occupation,
which generates income, and which consequently sets limits on your lifestyle. Status crystallisation is
the degree of consistency of all status dimensions. The question of status crystallisation revolves around
the question: will an individual with high status based on one dimension have high status based on the
other dimensions?
The more consistent an individual is on all status dimensions, the greater the degree of status
crystallisation for the individual. For example, in Figure 15.3, person A is low on most status dimensions,
but has a relatively high degree of status crystallisation because of this consistency. Likewise, person C has
a fair degree of status crystallisation because of consistency across status dimensions. Person B has a low
degree of status crystallisation since there are great inconsistencies across the four dimensions.
Status crystallisation is relatively low in Australia and New Zealand. For example, many blue-collar
workers (such as electricians) earn higher incomes than many professionals (such as school teachers).
Position on status dimensions
Status crystallisation
Low
A
status
crystallisation
the degree of
consistency on all
status dimensions
High
B
High
A
C
Occupation
C
Education
B
Income
Ownership
Low
Low
High
Consistency across status dimensions
Figure 15.3 Status crystallisation depends on consistency across status dimensions
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500 / PART THREE EXTERNAL INFLUENCES
Social class structure
The low degree of status crystallisation supports the contention that a social-class system is not a perfect
categorisation of social position. However, this does not mean that the population cannot be subdivided
into status groups that share similar lifestyles, at least with respect to particular product categories or
activities. Furthermore, there are many people with high levels of status crystallisation who exhibit many
of the behaviours associated with a class system. It is useful for the marketing manager to know the
characteristics of these relatively pure class types, even though the descriptions represent only a simplified
abstraction from reality.7
The functional approach
Social-class structures can be defined in a variety of ways. Gilbert and Kahl use a functional approach,
which focuses on occupational role, income level, living conditions and identification with a possibly
disadvantaged ethnic or racial group. In the functional approach, more attention is paid to capitalist
ownership and to occupational division of labour as the defining variables, and prestige, association and
values are treated as derivatives.8
The Gilbert–Kahl new synthesis class structure (a situations model from political theory and sociological
analysis, based on the United States) is shown below:
• Upper:
– capitalist class (1%): their investment decisions shape the national economy; their income is mostly
from assets, earned/inherited; prestige university connections
– upper-middle class (14%): upper managers, professionals, medium businesspeople; university
educated; family income is nearly twice the national average
• Middle:
– middle class (33%): middle-level white-collar, top-level blue-collar; education past high school
typical; income somewhat above the national average
– working class (32%): middle-level blue-collar; lower-level white-collar; income runs slightly below
the national average; education is also slightly below
• Marginal and lower:
– working poor (11–12%): below mainstream population in living standard, but above the poverty
line; low-paid service workers; some high-school education
– underclass (8–9%): depend primarily on welfare system for sustenance; living standard below
poverty line; not regularly employed; lack schooling
The reputational approach
Coleman and Rainwater base their social-class structure on ‘reputation’, relying heavily on the
‘person-in-the-street’ imagery. A reputational approach is designed to reflect popular imagery and
observation of how people interact with one another—as equals, superiors or inferiors. The core of this
approach is personal and group prestige.9 This system as applicable to the US population is shown below.
Although the functional and reputational approaches are based on different conceptual frameworks, there
is a high degree of similarity between the two social structures.
The Coleman–Rainwater social standing class hierarchy (a reputational, behavioural view in the
community-study tradition, based on the US) is as follows:
• Upper:
– Upper-upper class (0.3%): the ‘capital-S society’; world of inherited wealth, aristocratic names
– Lower-upper class (1.2%): the newer social elite, drawn from current professional, corporate leadership
– Upper-middle class (12.5%): the rest of the university-graduate managers and professionals; lifestyle
centres on private clubs, causes and the arts
• Middle:
– Middle class (32%): average-pay white-collar workers and their blue-collar friends; live on ‘the better
side of town’, try to do ‘the proper things’
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CHAPTER 15 SOCIAL STRATIFICATION / 501
– Working class (38%): average-pay blue-collar workers; lead ‘working-class lifestyle’ whatever the
income, school background and job
• Lower:
– Upper-lower class (9%): ‘a lower group of people but not the lowest’; working, not on welfare; living
standard is just above poverty; behaviour judged ‘crude’, ‘trashy’
– Lower-lower class (7%): on welfare, visibly poverty stricken, usually out of work (or have ‘the dirtiest
jobs’); ‘bums’, ‘common criminals’
Social stratification in Australia
This section looks briefly at the three main social classes identified in Australia and examines how the
behavioural and lifestyle characteristics of each social class create unique marketing opportunities.
Does social class exist in Australia? This issue has been investigated in several studies conducted in
Australia since the 1950s. The Department of Psychology at the University of Melbourne conducted
one of the first studies on class in Australia.10 Studies from the 1960s onwards have contributed to an
understanding of the changing perceptions of class in Australia. A large study, published in 1991, has
provided a comprehensive view of class in contemporary Australia. This research provided some thoughtful
but not unequivocal conclusions:
Is class a significant organising principle in Australia today? The short answer based on our research
findings is that it both is and isn’t. Class clearly matters in some areas of social life but in others it
appears to have very little salience … We found that less than half of our sample were prepared to
admit the existence of classes in Australia and could place themselves in a specific class category.
Overall social class appeared to be of only minimal significance in determining how people
constructed their social identities.11
However, a study by Chamberlain in 1983 found that over 80 per cent of the working and middle
classes rejected the proposition that Australia is a classless society. This statement was often greeted with
incredulity.12 More recently, McGregor, in his book Class in Australia, explained that class is integral to our
understanding of Australia and how Australians live:
It is impossible to live in Australia without coming to realise that the different social classes have
different sorts of jobs, live in different suburbs, go to different schools, get different incomes,
experience crucial differences in privilege and inequality, indeed live different lives.13
A study of Australian consumers’ financial strategies found indications that social position influences
perceptions of empowerment as well as actual access to resources, both of which serve to produce variations
in approaches to financial planning.14 This outcome demonstrates the direct and indirect means by which
social position can influence individuals’ consumption behaviours.
However, the Business Review Weekly’s Australian Rich 200 list demonstrates that social position is not
the only influence on affluence, as the list contains individuals from across the social spectrum.15 Similarly,
a recent study of some of Australia’s wealthiest businesspeople found that, although ‘old money’ is still
influential, new entrepreneurs are increasingly emerging from a range of social backgrounds. In an era of
globalisation a new set of skills is required for success, resulting in a weakening of traditional upper-class
strongholds over corporate Australia.16
Some of the research conducted to date in Australia has focused on trying to identify the number of
social classes. Baxter, Emmison and Western’s study applied Goldthorpe’s model of class categories to
the Australian population to determine the classification of groupings. This classification is shown in
Table 15.1 (overleaf).
Most previous studies, however, have identified three main social classes: upper, middle and lower
or working.
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502 / PART THREE EXTERNAL INFLUENCES
Table 15.1 Distribution of respondents in Goldthorpe’s class categories*
Description
I
Upper service, higher professional administrative and managerial,
large proprietors
10.5
125
II
Lower service, lower professional administrators, managers etc.;
higher-grade technicians, supervisors of non-manual employees
23.5
281
IIIa
Routine non-manual higher grade
10.3
123
IIIb
Routine non-manual lower grade; personal service workers
11.8
141
IVab
Small proprietors, own-account workers, non-agricultural
8.9
107
IVc
Farmers, smallholders
1.6
19
V
Lower-grade technical, manual supervisory
7.8
94
VI
Skilled manual workers
11.6
138
VIIa
Semi-skilled and unskilled workers; non-agricultural
13.3
159
VIIb
Agricultural workers
0.7
8
100.0
1196
Total
Percentage
Weighted
no.
Class
*Distributions are of people in the paid workforce; those excluded are the unemployed, housewives, retired people, etc. All data are weighted to ensure representativeness in relation to
Census estimates.
Source: J. Baxter, M. Emmison and J. Western (1991), Class Analysis and Contemporary Australia, Macmillan, Melbourne, p. 42.
The upper class
The upper class has been described as consisting of the 11 per cent of the Australian population who
classify themselves as ‘upper class’ or ‘upper-middle class’.17 This group is described in many ways by
different authors and researchers, including ‘the Establishment, the power elite, the bourgeoisie or ruling
class’.18 It is made up mainly of employing groups, large landholders, financiers, entrepreneurs and some
self-employed people, managers and professionals.
Members of this class are well represented in Business Review Weekly’s annual Australia’s Rich 200 list.
There are goods and services that are targeted to appeal to people belonging to this class. Some alcoholic
products, especially expensive spirits, use an exclusivity appeal in their advertising to target the upper class.
The middle class
The middle class consists of about 60 per cent of the population. It comprises white-collar workers, owners
of small businesses, clerks, salespeople, teachers and some affluent tradespeople. Middle-class Australians
tend to see themselves as belonging to a middle mass that is below the upper class. They do not have the
wealth and power of those at the top, but are considered to be above the working class because they have
higher incomes and better jobs that are not manual in nature.19
In addition, there are changes occurring within the middle class. Research has highlighted that the
middle class can be categorised further into an upper and a lower middle class. Professional people,
managers and administrators (in both the private and the public sectors), proprietors of medium-sized
businesses and those with landholdings represent the upper-middle class. The white-collar majority, small
shopkeepers, teachers, small farmers, technicians and some skilled workers represent the lower-middle class.
Figure 15.4 illustrates an upward-pull strategy, often used by marketers to appeal to members of the
middle class. Some high-social-status goods and services are attractive to those middle-class consumers
who wish to improve their social status and who aspire to be seen as upwardly mobile.
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CHAPTER 15 SOCIAL STRATIFICATION / 503
M ID D L E
C L A SS
A SP I R AT I O N S
P R EFER EN C ES
P O S I T I O N I NG
To belong to
upper-middle
class
Products
consumed by
upper-middle
class
Upper-class
symbolism for
middle-class
products
Target market
Figure 15.4 Upward-pull strategy targeted at the middle class
The lower or working class
The lower or working class accounts for about one-third of the Australian population. It is made up
mainly of skilled, semi-skilled and unskilled blue-collar workers, labourers, bush workers, factory hands
and those in manual work. According to McGregor, ‘Working-class Australians generally live in different
suburbs, speak in different accents, work different hours, vote for different parties, and belong to a different
culture from middle- and upper-class Australians’.20 Daniel found that working-class people suffer from
higher levels of violence than middle- and upper-class groups; they also have higher levels of ill health
and unemployment, and die younger.21 The working class, like the middle class, is not homogeneous.
In addition to occupation type differences, there are considerable income differentials and variations in
educational attainment levels.22
It is often the working-class image that is projected through advertising in Australia today. According to
McGregor, ‘Beer ads have often combined sporting heroes (footballers, cricketers) with close-ups of blokes
in shorts drinking beer straight from the can, slapping each other, carrying on in a rough and rowdy way’.23
Figure 15.5 illustrates the positioning strategies judged appropriate for this group. McGregor also notes,
however, that marketers are increasingly appreciating the dominance of the middle-class segment. The
various football codes, for example, are now positioned more towards middle-class members and audiences
rather than their traditional working-class followers.
The advertisement in Exhibit 15.2 (overleaf ) uses humour and parodies upper-class claims of exclusivity
to appeal to lower classes. Some brands widely used by lower class consumers may use a more subtle tone to
infer higher social status, as shown in Exhibit 15.3 overleaf.
Increasingly, there has been debate whether countries such as Australia and New Zealand are developing
an underclass. Those who suggest that an underclass does exist describe its members as a permanently
and chronically disadvantaged group who are ‘outside’ the traditional class structure and ‘under’ the
working class. The underclass would be made up of the unemployed, homeless, sick and poverty-stricken
members of society. However, not all researchers agree that an underclass exists. Some suggest that those
who would otherwise be classified as members of the underclass subsist at the lower stratum of the lower
class. In Australia and New Zealand there is unequal representation of Indigenous populations among the
W O RKIN G - C L A SS
A RISTO C RATS
D I S D AI N FO R
P R EFER EN C ES
P O S I T I O N I NG
Middle class
Working-class
products
and
brands
Working-class
symbolism for
working-class
products
Target market
Figure 15.5 Positioning within social class
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504 / PART THREE EXTERNAL INFLUENCES
It’s classic
Lindt, but
with a twist.
Thomas Schnetzler
Lindt Master Chocolatier
(A twist of orange,
to be exact.)
Few flavours are as welcomed by Lindt’s fine
dark chocolate as orange.
Its sharp, slightly tart citrus is an unexpected,
yet highly agreeable, counterpoint to the smooth,
velvety richness of our dark Excellence.
And while it would seem unlikely, it is this subtle
tartness that actually brings out the natural
sweetness of the chocolate.
We believe our particular take on this classic
flavour marriage makes Lindt Excellence
Dark Orange Intense a standout indeed.
LINDT
MCDONALD’S
And one that will only be enhanced by the
highly pleasurable act of the tasting it with
each of your five senses.
Exhibit 15.2 An advertisement using a mock
exclusivity appeal can be used to appeal to lowerclass consumers who do not aspire at all to be
upper class.
Exhibit 15.3 Brands within the same product
category can be positioned towards consumers
belonging (or aspiring) to different social
classes, even products like chocolates that
have been traditionally perceived as upperclass items.
unemployed, the sick and the poor,24 indicating that if an underclass exists it is disproportionately made
up of Indigenous individuals.
Disadvantage can also be related to casual employment. Work status and working conditions
influence individuals’ economic security and wellbeing. Casual employees typically have no
entitlement to paid sick or holiday leave, and they receive little in the way of training and career
advancement. While casual employment has grown across the board in the last two decades, the
difference between men and women has decreased markedly in relation to labour casualisation:
whereas only 13 per cent of male employees were casual in 1990, this proportion had almost doubled
by 2004. In comparison, women’s rate of casual employment has remained relatively stable (28% in
1990 and 31% in 2004). The global financial crisis of 2008–09 had an impact on labour status, with
full-time employment falling from 45 per cent to 43 per cent, partly in favour of casual employment
but also translating in higher unemployment rates. Hourly earnings are lower than those with ongoing
employment, and casual part-time workers typically want more additional working hours than their
ongoing counterparts.25
The Ethical Edge boxed example opposite illustrates some of the social and ethical implications of classbased differences in consumption patterns.
The descriptions of classes provided above are both brief and stereotypical. In part, this reflects the belief
that it is relatively unproductive to try to provide very specific descriptions for social classes. The complexity
and variety of behaviours and values involved preclude any greater accuracy. Instead of seeking to place
consumers in social-class categories, marketing managers should rather investigate the various status
dimensions to determine which, if any, affect the consumption process for their own products. The next
section discusses how this can be done.
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CHAPTER 15 SOCIAL STRATIFICATION / 505
ethicaledge
Is health an outcome of
social class?26
Western societies are bracing themselves for the longterm economic impact of an increasing rate of obesity
in an already ageing population. Public health statistics
show not only the magnitude of the problem but also
the stark difference between different population groups.
That some social groups exhibit consistent patterns of
excess weight and adverse food-consumption behaviour
suggests that social class may be more than a covariate
of unhealthy weight: it may play a significant role in
determining who will be overweight. Indeed, low-income
households struggle to achieve an optimal nutritional diet.
Not only are fresh foods dearer than heavily processed
ones, low-income families may have difficulties accessing
a range of shopping outlets or may be unable to store
fresh food appropriately without an adequate refrigerator.
Worst affected in Australia are Aboriginal and Torres Strait
Islander peoples, as well as the elderly.
Different occurrences of diet-related pathologies are
also evident in groups of varied ethnic background. For
example, diabetes mellitus is lower in men and women
from the UK and Ireland, but 82 per cent higher
among Asian men. Education and status, as opposed
to income, appears determinant with certain nutrient
intake. For example, a national survey showed that
betacarotene, vitamin C, folate and fibre intake were
all positively associated with occupational prestige and
education.
Key to healthy eating is the affordability of fresh food.
Yet, an examination of the Consumer Price Index from
1989 to 2007 suggests that the price of core healthy food
had risen at a higher rate than less nutritionally sound
alternatives. Foods that are typically higher in fat, sugar
and calories are gradually becoming cheaper to buy.
This may fuel not only a great obesity divide but also an
ever-larger health budget liability.
Given the greater occurrence of childhood obesity in
families where the adults are also overweight, this is a
problem that Australia can ill afford to ignore. In order to
attempt to prevent such a spiralling impact of obesity on
families, state and federal agencies have recently introduced
OPAL, a community-based project aimed at preventing
obesity in children. This program is directly inspired by
EPODE, a health prevention program developed and
implemented in France with clear and measurable results.
1 Should government do something to help reduce
the price of fresh foods and help address the
obesity epidemic?
2 Are manufacturers of processed foods responsible for
the obesity epidemic? Discuss.
3 Visit the OPAL website. Do you think this has the
potential to stem the advance of obesity? Why/
why not?
The measurement of social status
As stated earlier, education, occupation, income and, to a lesser extent, place of residence are the primary
achievement-based status dimensions used for determining social standing. Race, age, gender and parents’
status are ascribed (non-achievement) status dimensions. What is the most useful way to measure these
dimensions? There are two basic approaches:
1 a single dimension: a single-item index
2 a combination of several dimensions: a multiple-item index.
Single-item indexes
A single-item index estimates social status using a single dimension as a basis. Since several dimensions
influence an individual’s overall status, single-item indexes are generally less accurate at predicting an
individual’s social standing or position in a community than are well-developed multiple-item indexes.
However, single-item indexes allow marketers to estimate the influence of specific status dimensions on the
consumption process. The three most common single-item indexes are education, occupation and income.
Each is discussed below.
single-item index
an index that
relies on a single
parameter
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506 / PART THREE EXTERNAL INFLUENCES
Education
Education has served as the primary path for upward social mobility. It is therefore a direct measure of
status and is also used as a component in several of the multiple-item indexes. In addition, education may
influence an individual’s tastes, values and information-processing style.
Education is relatively simple to measure. In Australia, it is generally broken into the following
categories: primary school, secondary/high school, post-secondary (TAFE) and university. Education
level is correlated with employment, occupation and income. For example, Australians with a post-school
qualification are more likely to be employed (82 per cent compared to 63 per cent of those without postschool qualifications) and to be employed in full-time rather than part-time positions (77% compared
to 64%).
The rates of attainment of post-school qualifications are increasing in Australia and New Zealand. In
Australia, the number of people with a post-school qualification increased from 41 per cent in 1995 to
51 per cent in 2005. In New Zealand the number has increased from 41 per cent in 1995 to 48 per cent
in 2004.27 Much of these increases can be attributed to the growth in those attaining a Bachelor degree or
higher. This proportion increased from 12 to 20 per cent between 1995 and 2005 in Australia and from
8 to 13 per cent in New Zealand between 1995 and 2004.
As shown in Table 15.2, in 2005 Australian labour force participation rates among those over the age
of 15 years were influenced by educational attainment.
Table 15.3 shows that in Australia and New Zealand the proportion of 25- to 64-year-olds who are
university educated is slightly above the OECD average, and that the proportion of this age group who
have not completed secondary education is also slightly higher than the OECD average.
Table 15.2 Level of highest educational attainment, by labour force status (Australia) (’000)(a)
Level of highest
educational
attainment(b)
Full-time
workers
Part-time
workers
Total
employed
Postgraduate
degree
276.3
63.3
339.5
Graduate diploma/
graduate certificate
209.4
69.8
279.3
1255.8
355.2
1611.0
610.3
238.6
1362.3
Certificate I/II
Certificate not
further defined
Unemployed
Not in the
labour force
Total
350.7
41.4
392.1
284.3
34.9
319.2
44.4
1655.5
238.9
1894.4
848.9
29.1
878.0
175.8
1053.8
289.5
1651.7
63.5
1715.2
244.2
1959.4
375.9
202.0
577.9
36.5
614.4
215.9
830.3
136.9
52.3
189.2
13.5
202.6
35.5
238.1
95.6
32.5
128.2
133.5
26.7
160.1
Total with a nonschool qualification
4322.6
1303.2
5625.7
208.4
5834.1
1013.3
6847.4
Total without
a non-school
qualification
2598.2
1482.8
4081.0
330.2
4411.2
2037.7
6448.9
Total
6920.7
2786.0
9706.7
538.6
10245.3
3051.0
13296.3
Bachelor degree
Advanced diploma/
diploma
Certificate III/IV
Level not
determined
11.1
In the
labour force
5.0*
5.3*
*Estimate has a relative standard error of 25 per cent and 50 per cent and should be used with caution.
(a)
Includes those who never attended school.
(b)
The levels of education are not necessarily listed in order from highest to lowest.
Source: Australian Bureau of Statistics (2005), Education and Work, Cat. No. 6227.0, Australian Bureau of Statistics, Canberra, p. 19.
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CHAPTER 15 SOCIAL STRATIFICATION / 507
Table 15.3 Population aged 25 to 64 years, distribution by highest educational attainment,
OECD countries, 2002 (%)
Country
Below upper
secondary
Upper
secondary and
post-secondary
non-tertiary
Tertiary
Average years of
schooling
Australia
39
30
31
13.1
New Zealand
24
46
30
10.6
United States
13
49
38
12.7
Canada
17
40
43
12.9
United Kingdom
16
57
27
12.7
Ireland
40
35
25
12.7
Germany
17
60
23
13.4
Spain
58
17
24
10.3
Turkey
75
16
9
9.6
OECD country
mean
33
44
23
11.8
Source: Compiled from information available at www.oecd.org
Table 15.4 provides an international comparison of the income differentials between those who do not
complete their secondary schooling and those who attain tertiary qualifications. It is apparent that there are
large differences in earnings between the two groups in each country, although the differences in Australia
and New Zealand are not as substantial as those in the US and the UK.
Education influences lifestyle and therefore the consumption patterns of individuals in a direct manner.
However, it seldom provides a complete explanation for consumption patterns. For example, university
Table 15.4 Relative earnings of those aged 25–64 years by education level, selected
countries, 2001–02 (upper secondary education = 100)
Country
Below upper secondary education
All tertiary education
Australia
77
133
New Zealand
74
133
United States
71
186
Canada
79
143
United Kingdom
67
159
France
84
150
Germany
78
146
Spain
78
129
Portugal
62
178
Source: www.oecd.org
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508 / PART THREE EXTERNAL INFLUENCES
graduates earning $30 000 per year probably have different lifestyles from university graduates earning
$60 000 per year, despite their similar educational backgrounds. Moreover, people are now more likely
to engage in education at all stages of their lives, in what some call ‘lifelong learning’. Hence, as shown in
Table 15.5, many individuals are studying for a variety of qualification as they also work, either full-time or
part-time. People currently unemployed also may use this opportunity to further their studies and acquire
qualifications they may not have considered earlier. As Table 15.5 shows, over 60 per cent of employed
Australians currently enrolled in further study are seeking a qualification beyond high school. This
compares with a little over 45 per cent of unemployed people who are doing so.
Occupation
Occupation is the most widely used single-item index in marketing studies. In fact, occupation is probably
the most widely used single cue allowing people to evaluate and define the individuals they meet. When
a person in Australia meets a new acquaintance, a common question is ‘What do you do for a living?’.
Almost invariably there is a need to know a new acquaintance’s occupation in order to make inferences
about his or her probable lifestyle. By comparison, New Zealanders are less likely to question others about
their occupations. Across Australasia, occupation is associated with education and income, although the
association is not as strong as it once was.28
As discussed in Chapter 12, the changes to the occupational structure of the Australian and New
Zealand populations over the last decade—an increase in the number of working women, decreases
in blue-collar positions in manufacturing and related industries, and growth in positions in service
industries—have had an effect on the composition of the social classes.
Occupational structure alone cannot be regarded as a sufficient indicator of class structure.29 However,
the type of work an individual does and the types of people he or she works with do have a direct influence
on preferred lifestyle.
Table 15.5 Australian enrolments in 2006, in a variety of qualification levels, by highest year of school
completiona
Highest year of school completed
Level of education
Year 12
Year 11
Year 10
Year 9 or
below
Postgraduate degree
413.2
*5.4
8.7
1.5
428.8
Graduate diploma/graduate certificate
279.2
15.1
19.5
2.2
316.0
1 879.8
52.0
64.2
12.3
2 008.3
Advanced diploma/diploma
783.0
101.1
167.3
24.0
1 075.7
Certificate III/IV
680.8
336.0
840.7
198.6
2 056.5
Certificate I/II
286.1
114.6
287.7
73.9
762.3
Certificate not further defined
109.7
32.9
68.6
18.8
230
72.1
13.1
46.6
9.9
141.9
Total with non-school qualification
4 504.0
670.2
1 503.3
341.2
7 019.5
Total without non-school qualification
2 324.7
857.5
1 944.5
1 230.7
6 375.1
Total
6 828.7
1 527.7
3 447.8
1 571.9
13 394.7
Bachelor degree
Level not determined
Totalb
*Estimate has a relative standard error of 25 per cent to 50 per cent and should be used with caution.
(a)
Persons aged 15–64 years.
(b)
Includes persons who never attended school.
Source: ABS data available on request, 2006 Survey of Education and Work.
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CHAPTER 15 SOCIAL STRATIFICATION / 509
A number of approaches are used to assign scores or rankings to the hundreds of occupational
categories that exist in an industrial society. Until recently, separate prescribed classifications have
been used in Australia and New Zealand to determine occupational groupings. These were titled the
Australian Standard Classification of Occupations (ASCO) and the New Zealand Standard Classification
of Occupations (NZSCO) respectively. Figure 15.6 uses these classifications to show the distribution of
employed people by occupation in Australia and New Zealand in 2005.
As from 2006, the two governments have collaborated to develop a combined Australian and
New Zealand Standard Classification of Occupations (ANZSCO).30 The main categories of occupations
listed in the ANZSCO are:
• Managers
• Professionals
• Technicians and Trades Workers
• Community and Personal Service Workers
• Clerical and Administrative Workers
• Sales Workers
• Machinery Operators and Drivers
• Labourers.
The use of a common classification system will enable closer comparison of occupation distribution
between the two countries in the future. In addition, broader international comparisons will be possible as
the ANZSCO main occupational categories are very similar to those listed in the International Standard
Classification of Occupations (ISCO) developed by the International Labour Organization (ILO).
Prestige and occupation
Broom developed a status scale for Australian occupations by asking people to rank the prestige of certain
occupations, and then reviewing how variables such as age, education, gender, qualifications and work
New Zealand
Australia
9.0
8.3
6.7
12.0
9.0
9.9
18.7
14.6
9.6
8.4
7.7
11.7
12.6
16.6
16.2
3.7
12.5
12.6
Managers and
administrators
Intermediate clerical,
sales and service workers
Legislators, administrators
and managers
Agriculture and
fishery workers
Professionals
Intermediate production
and transport workers
Professionals
Trade workers
Associate
professionals
Elementary clerical,
sales and service workers
Technicals and
associate professionals
Plant and machine
operators and assemblers
Tradespersons and
related workers
Labourers and
related workers
Clerks
Elementary
Advanced clerical
and service workers
Service and
sales workers
Figure 15.6 Occupations of the employed, Australia and New Zealand, annual averages for 2005
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510 / PART THREE EXTERNAL INFLUENCES
experience contributed to these evaluations, and using this information to estimate composite status scores
for all occupations.31
Another Australian occupational scale, developed by Daniel, asked different groups to rank an
alphabetical list of 160 occupations on a scale from 1 (high status) to 7 (low status).32 Daniel found that the
most prestigious occupations were those of judge, cabinet minister and medical specialist, whereas garbage
collector and road sweeper were the least prestigious. According to Daniel:
Occupational prestige remains the most powerful single indicator of the power and privilege any
individual or group may command … the status of occupations reflects the class structure; from
the upper class are drawn those persons whose interests and activities constitute the dominant or
governing elite in society.33
relative
occupational
class income
(ROCI)
the relationship
of a family’s total
income to the
median income
of other families
in the same
occupational class
Income
Income has traditionally been used as a measure of both purchasing power and status. Historically, the
association between income and status has been high. However, this association is not as strong today as
it has been in the past.
Using income poses a number of measurement problems. Basically, the researcher must decide which
income to measure. This involves such decisions as:
• individual or family income?
• income before or after taxes?
• salary or total income?
Many individuals may not have accurate knowledge of their income as defined by the researcher (total
family pre-tax income). In addition, individuals are often reluctant to reveal their income, and if they do
respond to questions of this nature, they may not provide an accurate answer.
There are wide disparities in wealth in Australasia. In Australia, for example, the 200 richest individuals
control over $101 billion. This yields an average of $508 million per person. By comparison, the average
Australian household has wealth (mainly invested in the family home) of $486 000. This means that the
average household has around 0.1 per cent of the wealth of the richest individuals.34 Such variation indicates
that income differentials continue to be considerable even if social categories per se are becoming less
defined. The global distribution of income is also unequal, as discussed in the Global Gaze box opposite.
The Australian Bureau of Statistics produces A Social Atlas, which provides a series of maps, produced
from Census data, showing the distribution of demographic and economic characteristics (population,
age distribution, household income, occupations, type of dwelling, and so on) in statistical divisions in all
Australian capital cities. These maps show clearly that certain regions are class-defined.
In real terms, equivalised disposable household income in Australia, on average, increased by 18 per
cent between 1993–94 and 2002–03, from $461 to $542 per week. Over that same period, the real mean
income of low-income people increased by 13 per cent, from $249 to $281 per week. By comparison, the
real mean income of high-income people increased by 19 per cent (from $876 to $1046 per week). Average
household incomes in New Zealand were $888 per week in 2003–04. This represented a 16 per cent
increase over the $765 per week earned in 2000–01.
Income is clearly necessary if a lifestyle is to be maintained. Likewise, there is a higher status attached
to higher incomes than to lower incomes. Still, income does not explain lifestyles completely. A university
lecturer or a solicitor may have the same income as a truck driver or a plumber. Nonetheless, it is likely that
their consumption patterns for a variety of products will differ. Income relative to other variables, such as
occupation, may thus be quite useful.
Relative occupational class income
So far, we have discussed the relative merits of only one status dimension in comparison with another.
However, it may be more productive in some cases to consider using one status dimension in conjunction
with another. This is what the concept of relative occupational class income (ROCI) involves. Relative
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CHAPTER 15 SOCIAL STRATIFICATION / 511
globalgaze
Progress leads to more
inequality, not less35
Just as income is unevenly distributed in many societies
around the world, there is a large degree of inequality in
how wealth is distributed in various countries and regions
around the world. And while, historically, wealth has never
been equally divided amongst nations, it is a matter of
concern that economic development and inequalities appear
to increase, rather than decrease, over time, as this will
inevitably lead to social unrest, political instability and largescale migration flux. Economic development, it has generally
been believed, allows poorer countries to catch up and
achieve living standards more comparable to that of more
advanced economies; not so, according to recent statistics
that showed that the gap between rich and poor countries
continues to widen. In 1913, the per-capita GDP in rich
countries was 22 times that of poor countries. In 1970, it
was 88 times higher. Globalisation dramatically increased the
gap to the extent that in 2000, the per-capita GDP in rich
countries was 267 times that of the poorest countries.
The inequality conundrum does not stop there. Even
within those countries that progressed economically, such
as China, the internal inequality has grown exponentially
during the economic boom. In today’s China, the average
income of the lowest quintile is less than 5 per cent of the
highest quintile.
The so called Super-Rich live primarily in the US
and Europe although a handful of them are in Asia.
Worldwide, the richest 1 per cent of adults consist of
37 million people owning over US$515 000 worth of
assets each. Collectively, they hold 40 per cent of the
planet’s total wealth, or US$125 trillion. Indeed, the slim
10 per cent upper layer of the world population owns
85 per cent of the world’s wealth while the 50 per cent
poorest share only about 1.1 per cent of global wealth.
And over a billion people must struggle on less than a
dollar a day.
Despite this, recent research has unearthed unexpected
findings. For example, the increase in inequality among
the 30 most developed countries of the OECD is around
2 Gini points (the Gini is the best measure of income
inequality), which is about the same as the current
difference between Germany and Canada: significant and
noticeable, but hardly likely to provoke massive social
unrest.
1 Why are consumers so interested in the Super-Rich?
2 To what extent does national wealth matter to
individuals?
3 Discuss how economic growth can be captured by so
few countries, or people. Is inequality the norm?
occupational class income is the relationship of a family’s total income to the median income of other
families in the same occupational class.36 Thus, occupational class is viewed as setting the basic lifestyle,
whereas relative income provides one of the following:
1 excess funds
2 neither excess nor deficient funds
3 deficient funds for the desired lifestyle.
The three categories are referred to respectively as over-privileged, average and underprivileged. They
have been found to influence the consumption of such products as coffee and cars (see also Exhibit 15.4
overleaf ). Relative class income (used with Coleman’s multiple-item index) also influences the types of
stores at which people will shop.37
A closely related concept is subjective discretionary income (SDI). Subjective discretionary income is
an estimate by the consumer of how much money he or she has available to spend on non-essentials. It
is measured by using the responses on a one-to-six, agree-to-disagree scale to the following statements:
1 No matter how fast our income goes up, we never seem to get ahead.
2 We have more to spend on extras than most of our neighbours do.
3 Our family income is high enough to satisfy nearly all our important desires.
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512 / PART THREE EXTERNAL INFLUENCES
In one large-scale American study, subjective discretionary income
was found to add considerable predictive power to total family income
(TFI) measures and, for some product categories, to predict purchases
when family income did not. An Australian study found similar
conclusions on the value of subjective discretionary income and total
family income for predicting the use of various financial services.38
COURTESY OF EMIRATES
Multiple-item indexes
Exhibit 15.4 Different social classes may have
different purchase motivations for the same
product. For instance, air travellers may seek
either basic, safe transportation or a statusenhancing experience.
multiple-item index
an index formed on
the basis of several
parameters
Hollingshead
Index of Social
Position (ISP)
a two-item index
for measuring
social position
The use of social class as an explanatory consumer behaviour variable
has been heavily influenced by two seminal studies, both of which
have developed a multiple-item index to measure social class.39
The basic approach in each of these studies was to determine, through
a detailed analysis of a relatively small community, the classes into
which the community members appeared to fit. Next, more objective
and measurable indicators or factors related to status were selected
and weighted in a manner that would reproduce the original class
assignments.
The first of the two available measures is the Hollingshead Index
of Social Position (ISP), a two-item index that is well-developed and
remains widely used. The item scales, weights, formulas and socialclass scores are shown in Table 15.6.
It is important to note that this scale, like most multiple-item
indexes, was designed to measure or reflect an individual family’s
overall social position within a community. Because of this, it is
possible for a high score on one variable to offset a low score on
another. Therefore, the following three types of individuals may
all be classified as middle class:
Table 15.6 The Hollingshead Index of Social Position (ISP)
Occupational scale (weight of 7)
Description
Higher executives of large concerns, proprietors and major professionals
Business managers, proprietors of medium-sized businesses and lesser professionals
Administrative personnel, owners of small businesses and minor professionals
Clerical and sales workers, technicians and owners of small businesses
Skilled manual employees
Machine operators and semi-skilled employees
Unskilled employees
Score*
1
2
3
4
5
6
7
Educational scale (weight of 4)
Description
Professional
Four-year university graduate
One to three years of university
High school graduate
Ten to 11 years of school
Seven to nine years of school
Fewer than seven years of school
*ISP score = (occupational score × 7) + (education score × 4)
Score*
1
2
3
4
5
6
7
Source: Adapted from A. B. Hollingshead and F. C. Redlich (1958), Social Class and Mental Illness, John Wiley & Sons, New York.
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CHAPTER 15 SOCIAL STRATIFICATION / 513
1 a person with a secondary school education who is a successful owner of a medium-sized firm
2 a TAFE college graduate working as a salesperson
3 a university graduate working in an administrative position in the public service.
All of these individuals may well have similar standing in the community. However, it seems likely
that their consumption processes for at least some products will differ. This highlights the fact that overall
status may mask or hide potentially useful associations between individual status dimensions and the
consumption process for particular products.
The other widely used multiple-item scale of social status is Warner’s Index of Status Characteristics
(ISC). Warner’s system of measurement is based on four socioeconomic factors:
1 occupation
2 source of income
3 house type
4 dwelling area.
As shown in Table 15.7 below, each of these dimensions of status is defined over a range of seven categories
and each carries a different weight. This system classifies individuals into one of six social-status categories.
Understanding the combined effects of class-related variables can be important for particular products,
especially those where consumption is highly correlated to multiple variables.
The selection of a measure of social status or prestige is not as complex a problem as it might appear.
What must be realised is that there is no single uni-dimensional status or class continuum. The problem
is not one of selecting the best measure—rather, it is that of selecting the most appropriate prestige or
status dimension for the problem at hand. When an individual’s total personal status is the dimension of
concern, perhaps in a study of opinion leadership, a multiple-item index such as Warner or Hollingshead’s
index would be most appropriate. Studies of taste and intellectually oriented activities, such as magazine
readership or television viewing, should consider education as the most relevant dimension. Occupation
could be the most relevant dimension for studies focusing on leisure-time pursuits.
Warner’s Index
of Status
Characteristics
(ISC)
a system of
measurement
of social status
based on four
socioeconomic
factors: occupation,
source of income,
house type and
dwelling area
Table 15.7 Warner’s Index of Status Characteristics (ISC)
Characteristics
Score*
Occupation
Source of
income
House type
Dwelling area
1
Professionals and proprietors of
large businesses
Inherited wealth
Excellent houses
Very high: Gold Coast, North
Shore, etc.
2
Semi-professionals and officials of
large businesses
Earned wealth
Very good houses
High: better suburbs and
apartment-house areas
3
Clerks and kindred workers
Profits and fees
Good houses
Above average: areas all
residential, space around houses,
apartments in good condition
4
Skilled workers
Salary
Average houses
Average: residential
neighbourhoods, no deterioration
5
Proprietors of small businesses
Wages
Fair houses
Below average: area beginning to
deteriorate, business entering
6
Semi-skilled workers
Private relief
Poor houses
Low: considerably deteriorated,
run down and semi-slum
7
Unskilled workers
Public relief and
non-respectable
income
Very poor houses
Very low: slum
*ISC score = (occupation × 4) + (house type × 3) + (dwelling area × 2)
Source: W. L. Warner, M. Meeker and K. Eels (1949), Social Class in America: Manual of Procedure for the Measurement of Social Status, Science Research Associates, Chicago.
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514 / PART THREE EXTERNAL INFLUENCES
Differences in patterns of consumption
between groups
Regardless of the scale and measure used, research has demonstrated significant difference in patterns of
consumptions between social classes. To a large extent, and as described in Chapter 12, many purchases are
influenced by lifestyle and lifestyle is itself influenced by social class. Through the process of socialisation,
consumers learn hobbies and activities that will then be part of their lives. Hence, one’s social class will
often play an important, although not entirely exclusive, role in determining some lifestyle consumption
patterns. For example, research shows that upper classes are much more likely to attend art festivals
and live theatre, whereas lower classes will enjoy fishing and camping.40 At times, the same activity may
be undertaken by different classes in different forms. For example, upper classes would enjoy casino
gambling whereas lower class will gamble at their local pokies lounges. Figure 15.7 shows the clear shift
of consumption that occurs across social classes.
As well as influencing what consumers will buy, social class will also have a demonstrable impact on
the evaluative process followed by consumers in making purchase decisions. Both the number and types
of attributes, as well as the specific threshold or decision rules that may apply, can be influenced by social
class.41 This explains the success of many prestige brands, whose products are so exclusive and desirable
by the upper class as to make the brand an overriding attribute in its own right. Whether it be haute
couture, luxury watches, jewellery or sports cars, the choice may well be reduced to only Chanel, Tiffany
or Maserati. Figure 15.8 illustrates how different social classes use different attributes to select a particular
product. However, anecdotal evidence suggests that this applies for many products and services. For
example, banks have noted that affluent upper class consumers are more likely to make use of internet
banking than lower social categories.42
The emergence of ‘Masstige’
While research shows clear consumption differences between social classes, it would be wrong to assume
that all purchase behaviour is predicted by social class. Indeed, aspirational influence and a blurring
of traditional class structures, as illustrated by the CUB story at the start of this chapter, has muddied
Mean per cent of households
22
20
18
16
14
12
10
8
6
Upper
Upper-middle
Middle
Working
Lower
Social class
Casino gambling
Live theatre
Fishing
Camping
Source: E. Sivadas (1997), ‘A Preliminary Examination of the Continuing Significance of Social Class to Marketing: a Geodemographic Replication’, Journal of
Consumer Marketing, Vol. 14, Issue 6, pp. 463–79.
Figure 15.7 Social class and consumption
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CHAPTER 15 SOCIAL STRATIFICATION / 515
Number of respondents
n = 13
Class
Income
n = 14
Lower
Lower
n = 44
Lower
Higher
n = 19
Working
Lower
n = 47
Working
Higher
n = 19
Middle
Lower
n = 18
Middle
Higher
n=4
Upper
Lower
Upper
Higher
Stereo
Durability
–
Low price
Warranty
+
+
–
–
+
Reliability
–
+
Value
–
+
Prestige brand
+
Style/appearance
+
Uniqueness
+
–
–
–
Notes: – Indicates that the mean evaluative criterion importance score for the social class is significantly less than the mean for all respondents (p ≥ 0.05); + Indicates that the mean
evaluative criterion importance score for the social class is significantly greater than the mean for all respondents (p ≥ 0.05). Purchase evaluative criteria are grouped with more objective
listed first, followed by more subjective. Only significant relationships are shown.
Source: T. Williams (2002), ‘Social Class Influences on Purchase Evaluation Criteria’, Journal of Consumer Marketing, Vol. 19, Issue 3, pp. 249–76.
Figure 15.8 Social class influence on evaluation criteria for the purchase of a stereo
cyberconsumer
iPhone, therefore I am43
In the aftermath of the iPhone tsunami, and as phone
competitors, such as Nokia, rush to the market with
iPhone me-toos, it appears more and more obvious that
the competitive advantage of the snazzy, ubiquitous largescreen device actually resides outside of its smooth and
fancy case. Indeed, most industry experts agree: what is
placing the iPhone on a pedestal of its own is the myriad of
applications, many of them free and consumer-generated,
that can allow any consumer to customise and modify the
attributes and benefits derived from the phone. Key to
the success of Apple is its operating-system distribution.
When Apple launched the original iPhone in 2007, it took
a highly unusual step: it broke carriers’ control over mobile
operating-system updates. Instead, Apple controls and
distributes the updates, in effect generating the capacity
to top up the value it delivers to consumers over time
by allowing the future download of applications as they
become available.
Apple executives have not taken long to understand
the unique source of their competitive advantage, shifting
the focus of their marketing away from the device and
onto the applications. The newest ads, brilliant in their
simplicity, are built around a simple and straightforward
promise ‘There is an App for that’. The killer application
for Apple is indeed the App Store, where it is estimated
that over 15 000 applications are now available.
While there is a large number of supporters for the app
value theory, others have been quick to point out that
the phenomenal success of iPhone seems driven more by
fashion (or perhaps fad) than any rational utility-driven
consideration by consumers. Some social commentators
have even branded iPhones a status symbol much like Rolex
watches used to be. Others have pointed out that being
innovative and beating the rest of the crowd to the next
techno-gizmo may in fact be what bestows status on early
adopters. They describe how the race to be an early twitter
participant, or one of the first iPad owners, must fulfil some
need for social recognition in a society that increasingly
values technology for its own sake. The issue is hotly
debated on a number of blogs and discussion forums.
1 Do you agree that iPhones and other new technology
are status symbols? Why/why not?
2 How many apps do you use or know about? Which is
your favourite? Why?
3 What can iPhone competitors do to regain market
share in the face of the iPhone’s runaway success?
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516 / PART THREE EXTERNAL INFLUENCES
‘masstige’
a marketing
phenomenon
that occurs
when a prestige
brand becomes
generalised to a
wider target market,
and achieves largevolume sales
inconsistent with its
original positioning
the social waters and given rise to a whole new category of goods and services known as the ‘masstige’
sector. ‘Masstige’ describes mass-market prestige where goods and services occupy a spot between mass
and class and command a premium over conventional products, but may not always be positioned at
the top of their category in price. For instance, in Australia Jamie Durie has put his name to a high-end
outdoor line at Kmart, Deborah Hutton has lent her name and talents to a mass-market chain-store line
and Target’s 2006 spring–summer range in Australia had for the first time a ‘designer’ line, featuring
a collection of designer garments at reasonable prices. Famous designers such as Alice McCall, Tina
Kalivas and T. L. Wood have provided garments featuring their own touch but at prices well below their
normal ranges. The general effect of this masstige phenomenon is likely to be the creation of a variety of
cheap and prestige product classes based on emotional involvement and attachment rather than actual
social class.44 A good example of how a product initially perceived as exclusive can take markets by storm is
the Apple iPhone (see Global Gaze on page 515).
Issues and assumptions in using social class
BULGARI
B V LG A R I . C O M
A number of issues and assumptions are involved in using social class. First, there is a tendency for
marketers to assume that all individuals desire upward social mobility and/or want to emulate the
behaviours and consumption patterns of those above them.
However, as we have seen, this is often not the case. Many individuals are quite content with their social
standing and lifestyle. This is true not only for older individuals, but also for younger people. Today, many
teenagers and young adults aspire to the lifestyle and social status enjoyed by their parents. Appeals to
upward social mobility are not effective with these individuals.
Class-consciousness is generally quite low in
Australia. Australians do not generally think
in terms of social classes and most describe
BVLGARI BRIDAL
themselves as ‘middle class’ when asked. Thus,
EVENT INVITATION
direct or obvious class-based appeals would
Create the Perfect Wedding
not work with many individuals. Most socialBulgari will host an exclusive event
featuring all the finest elements for the
class measures and theories were developed
perfect wedding.
before the rapid growth in the role of women.
Where: Bulgari store, 123 Collins Steet,
followed by a Champagne Cocktail party at the
Traditionally, women acquired the status of
residence in Grand Hyatt Melbourne.
their husbands. They had few opportunities
When: Monday, October 12th
from 6.30p.m. to 9.30p.m.
outside the home and had limited access
Tickets: $60 per person.
to education or careers. This has changed
Your Gift: Bulgari perfume valued at over $100
and a Bulgari Diamond Guide.
dramatically in recent years. Now, women bring
Booking: Please call (02) 8257 1005 or
educational, financial and occupational prestige
email [email protected]
Bookings are limited and essential.
to the household just as males do.
This glamourous evening will showcase the
finest Bulgari diamonds and jewels and exclusive
Other than using total household income
Bridal couture in the sophisticated ambience
THE BRIDAL COLLECTION
of Melbourne’s premium wedding venue - the
rather than the male’s income, no scale has been
D edicata a Ve nezia
residence in Grand Hyatt Melbourne.
developed that fully accounts for the reality of
“Diamonds, like all beautiful things,
enrich people’s lives.”
dual sources of status for a household. The fact
Paolo Bulgari, President of the Bulgari Group
that marriages are generally among individuals
with similar educational and occupational
Exhibit 15.5 Some advertisements seek to transcend social class
backgrounds minimises the problems this
categories, offering, for example, sales promotions on otherwise
would otherwise cause.
exclusive brands.
ACCORDING TO A DOCUMENT DATING BACK TO 1503.
THE TRADITION OF GIVING ONE’S BELOVED A DIAMOND
ENGAGEMENT RING ORIGINATED IN VENICE. THE DIAMOND RING HAS BECOME
THE EVERLASTING SYMBOL OF LOVE. A LEGACY OF ITALIAN TRADITION TO WHICH
BVLGARI DEDICATES ITS BRIDAL COLLECTION.
39$.%9s#!34,%2%!'(34
-%,"/52.%s#/,,).334
"2)3"!.%s$!6)$*/.%315%%.30,!:!15%%.34
Social class and marketing strategy
Although the concept of social class does not explain all consumption behaviour, it is certainly relevant for
some product categories. A visit to a furniture store in a working-class area and then to a store catering to
the upper class should provide some evidence of this.
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CHAPTER 15 SOCIAL STRATIFICATION / 517
RE L ATE STATU S
VA RIA BL E S TO
PRO D U C T
C O N SU M PTIO N
TA RG ET S O C I AL
S T R ATA
Gather data on:
1 Product/brand
usage
2 Purchase
motivation
3 Symbolic
meaning
1
2
3
4
Actual lifestyle
Desired lifestyle
Media usage
Shopping
patterns, etc.
D EVEL O P
PRODUCT
POSITION
MAR K ET I N G MIX
D EC I S I O N S
Select desired
image based on
actual or desired
lifestyle of
target strata
Develop mix to
achieve desired
position:
1
2 Product
3 Price
4 Promotion
Distribution
Figure 15.9 Using social stratification to develop marketing strategy
Figure 15.9 indicates the steps involved in using social class to develop a marketing strategy. The first
task of marketing managers is to determine, for their specific product categories, which aspects of the
consumption process are affected by social status. This will generally require research, in the course of
which relevant measures of social class will be taken and associated with product/brand usage, purchase
motivation, outlet selection, media usage, and so on.
Product/brand utilisation often varies widely across social strata. Income clearly restricts the purchase of
some products, such as expensive sports cars and boats. Education often influences the consumption of fine
art. As noted earlier, occupation appears to be related closely to leisure pursuits.
The consumption of imported wine, liqueurs and original art varies with social class. Beer is consumed
across all social classes, but Crown Lager is probably more popular at the upper end and Tooheys at the
lower end.
A product/brand may also have different meanings to members of different social strata. For example,
jeans may act as economical, functional clothing items to working-class members, but a brand such as
Calvin Klein would be seen as a stylish, self-expressive item by upper-class individuals. Likewise, different
purchase motivations for the same product may exist between
social strata. Some people in higher social classes use credit cards
for convenience (they tend to pay off the entire balance each
month), while people in the lower social classes tend to use them for
Why spend a fortune on
instalment purchases (so they do not pay off the entire bill at the end
expensive creams
of each month).
For products such as those described above, social class represents
when
a useful segmentation variable. Having selected a segment based
is just as good?
on usage rate, purchase motivation or product/brand meaning, the
$
marketer must position the brand in a manner consistent with the
100?
desired target market.
While some status brands attempt to transcend social class by
$
250?
appealing to the more value-conscious consumer, as illustrated in
Exhibit 15.5 (opposite), others focus on different motivations, as
shown in Exhibit 15.6.
It is important to remember that members of social strata may
desire to emulate some aspects of the lifestyle of higher social strata
at least some of the time. Therefore, a brand targeted at the middle
class could benefit from an upper-class product position.
The task of the marketing manager is to analyse the problem
and select the measure of social class that is conceptually most
relevant. Given this perspective, it is not surprising that studies
Exhibit 15.6 Individual consumers’ income often
trying to determine the single best measure of social class have been
restricts the consumption of certain goods, such
inconclusive.45
as expensive brands of makeup and moisturisers.
A recent US test* of Total Effects found it’s moisturizing, anti oxidant and exfoliation performance
to be as good as more expensive moisturisers. So choose what gives you the better
value with Olay Total Effects. To find out if Total Effects is right for you, go to rightolayforyou.com.au
*Based on studies conducted in P&G technical center in the US, on March 2008 among 73 respondents in moisture retention, anti-oxidancy and exfoliation.
total effects
Love the skin you’re in.™
PROCTOR & GAMBLE
Total Effects
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Quester 6e-15.indd 517
5/8/10 1:50:13 PM
summary
1 What is the concept of social class?
A social-class system is defined as the hierarchical
division of a society into relatively permanent and
homogeneous groups with respect to attitudes, values
and lifestyles. For a social-class system to exist in a
society, the individual classes must meet five criteria.
They must be bounded, ordered, mutually exclusive,
exhaustive and influential. Education, occupation,
income and, to a lesser extent, type of residence are
important status dimensions.
2 How is social class measured?
There are two basic approaches to the measurement of
social class: using a combination of several dimensions,
a multiple-item index; or using a single dimension, a
single-item index. Multiple-item indexes are designed to
measure an individual’s overall rank or social position
within the community.
Single-item indexes base the estimate of status on
a single-status dimension, which is easier to do than
in multiple-item measures. Income, education and
occupation are the most often used measures of social
status. Since there is not a uni-dimensional status
or class continuum, it is impossible to state which is
the best measure. Rather, the choice of the measure
to be used should depend on its appropriateness for
or relevance to the problem at hand. The use of one
status dimension in conjunction with another seems
appropriate. Relative occupational class income is a good
example of such an approach.
3 What measurement problems do marketing
managers face?
There is a tendency for marketers to assume that all
individuals desire upward social mobility and/or want
to emulate the behaviours and consumption patterns of
those above them. However, this is often not the case.
Many individuals are quite content with their social
standing and lifestyle. This is true not only for older
individuals but also for younger people. Today, many
teenagers and young adults aspire to the lifestyle and
social status enjoyed by their parents.
Most social-class measures and theories were
developed before the rapid growth in the role of women.
Traditionally, women acquired the status of their
husbands. They had few opportunities outside the home
and had limited access to education or careers. This
has changed dramatically in recent years. Now, women
bring educational, financial and occupational prestige to
the household, just as males do.
Other than using total household income rather than
the male’s income, no scale has been developed that
fully accounts for the reality of dual sources of status
for a household. The fact that marriages are generally
between individuals with similar educational and
occupational backgrounds minimises the problems this
would otherwise cause.
4 What is the effect of social class on the
consumption process?
Each social class is different in terms of occupation,
education, income, ownership and affiliations. Because
of these differences, the lifestyles and consumption
behaviour of individuals in one social stratum can
be quite different from those in other strata. These
differences can often provide marketers with useful
insights into the consumption behaviour of certain
segments of the population.
Product/brand utilisation often varies widely across
social strata. Income clearly restricts the purchase of
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CHAPTER 15 SOCIAL STRATIFICATION / 519
some products, such as expensive sports cars and boats.
Education often influences the consumption of fine
art. Occupation appears to be related closely to leisure
pursuits. The consumption of imported wine, liqueurs
and original art varies with social class.
5 How can marketing managers use their
knowledge of social class to develop marketing
strategies?
The first task of marketing managers is to determine,
for their specific product categories, which aspects of
the consumption process are affected by social status.
A product/brand may also have different meanings to
members of different social strata.
Social class represents a useful segmentation variable.
Having selected a segment based on usage rate, purchase
motivation or product/brand meaning, the marketer
must position the brand in a manner consistent with the
desired target market.
It is important to remember that members of
social strata may desire to emulate some aspects of the
lifestyle of higher social strata at least some of the time.
Therefore, a brand targeted at the middle class could
benefit from an upper-class product position.
key terms
bounded (social class) 498
exhaustive (social class) 498
Hollingshead Index of Social Position (ISP) 512
influential (social class) 498
‘masstige’ 516
multiple-item index 512
mutually exclusive (social class) 498
ordered (social class) 498
relative occupational class income (ROCI) 510
single-item index 505
social stratification 496
social-class system 496
societal rank 496
status crystallisation 499
Warner’s Index of Status Characteristics
(ISC) 513
review questions
1 What is social stratification?
2 Describe the five criteria necessary for a
social-class system to exist.
3 What is meant by the statement, ‘What exists
is not a set of social classes but a series of status
continua’?
4 What is meant by status crystallisation? Is the
degree of status crystallisation relatively high
or low in Australia or New Zealand? Explain
your answer.
5 What are the two basic approaches used by
6 What are the advantages and disadvantages of
multiple-item indexes?
7 What are the primary advantages of single-item
indexes?
8 What are the problems associated with using
income as an index of status?
9 Why is education sometimes used as an index
of status?
10 What is meant by relative occupational class
income? Why is the general idea behind this
concept particularly appealing?
marketers to measure social class?
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520 / PART THREE EXTERNAL INFLUENCES
discussion questions
1 Which status variable, if any, is related most
closely to the following?
(a) type of car owned
(b) preferred drink
(c) code of football supported
(d) favourite television program
(e) preferred holiday destination
2 How could knowledge of social class be used in
the development of a marketing strategy for the
following?
(a) a clothing brand
(b) airline travel
(c) a university
(d) an MP3 player
(e) a ski resort
3 Nominate two of your ascribed status
dimensions and two of your achievement status
dimensions. How would an understanding of
this help a marketer market to you?
4 Name three products for which each of the three
greatest influence on marketing strategy. Justify
your answer.
(a) income
(b) education
(c) occupation
5 Do you feel it would be more appropriate for
marketers to employ single- or multiple-factor
indexes when identifying target markets
and formulating marketing strategy? Justify
your answer.
6 Is it ethical for marketers to use the mass media
to promote products that most members of the
lower class or working class cannot afford?
7 Why would marketers choose to employ an
upward pull strategy when promoting particular
goods and services?
8 For what kinds of products would subjective
discretionary income be most relevant to
demand? Justify your answers.
following single-factor indexes would have the
application activities
1 Try using ‘social class’ as a search term in your
library’s electronic publications database.
What do you notice about the availability of
articles on this subject?
4 Look in the ‘positions vacant’ section of a
newspaper. What differences, if any, do you
notice between advertisements for higher and
lower status occupations?
2 Travel around a few different neighbourhoods.
5 You have been hired as the marketing manager
Consider the products promoted on
billboards in upper-class versus lower-class
neighbourhoods. What are the similarities
and differences? What can you conclude about
marketers’ assumptions about these different
target markets?
for an electronic products store. Explain which
social class you are going to target and how you
will go about attracting them to your store.
3 Locate a copy of a mainstream women’s
6 Interview someone who works in a fast-food
restaurant. Ascertain whether they are aware of
any class differences among their customers and
how these differences may be apparent.
magazine (such as Women’s Weekly). Can
you identify which products are being sold to
which social class segments? How did you make
this assessment?
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CHAPTER 15 SOCIAL STRATIFICATION / 521
tuteteaser
cyberconsumer
Golf goes downmarket46
In recent times, the strong association between golf and the upper class has weakened. This change
can be at least partially attributed to the forces of demand and supply. Since 1998, 35 new 18-hole
courses have opened in Australia and another 23 are in the process of being developed. These
new golf courses are generating large amounts of excess capacity that cannot be absorbed by just
the wealthy.
The result of this rapid increase in the number of golf courses has been a change in focus
of many clubs as they seek to woo those who would once have felt out of place in such an
environment. New target markets include those who are full-time workers and as a result are
time-poor and interested in shorter sessions at lower cost. The traditionally high entrance and
annual fees have served to exclude many would-be players in the past. To attract these different
segments, many clubs have changed their pricing structures to accommodate ‘pay and play’ golfers
who prefer to be charged on a per-use basis. Other pricing variations include the sale of ‘limited’
memberships that specify the number of rounds that can be played, the option of transferable
memberships that can be on-sold and instalment payment plans for those who cannot afford the
up-front entrance and annual fees. Adaptation has become a necessary strategy in the Australian
golf market. Dress codes and membership fees are falling by the wayside as course managers open
their clubs to a wider range of Australians in an effort to retain their profitability. These changes
demonstrate a response to the need to modify products in line with a shifting social environment.
QUES TI ONS
1 Why do you think the type of pastime we enjoy, such as playing golf, is so related to
social class?
2 What should golf course managers do to make golf more widely popular? Is there is risk
to that strategy?
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522 / PART THREE EXTERNAL INFLUENCES
case y
stud
47
47
In her collections of essays entitled Noblesse Oblige,
Nancy Mitford caricatured the British upper class
(the Us) and made fun of the aspiring middle
class (the Non-Us). She parodied their different
speeches and mannerisms, and denounced their
particular differentiating traits and vocabulary.
Her cutting remarks were all the more pertinent
given that she herself was part of a very established
and aristocratic family, albeit tainted by its fair
share of eccentricity and rebellion (one Mitford
sister turned out to be a communist, another
was a fan of Hitler and yet another divorced her
first husband to follow a noted English pro-Nazi
politician). According to Nancy Mitford, etiquette
and language are much more than just symbols or
consequences of social class, they are in fact what
sets social classes apart from each other: they allow
individuals to identify others like them and to
congregate with their peers, as well as avoid those
who do not conform to their idea of how things
should be, or dissent with their particular lifestyles.
If Us and Non-us were indeed apt descriptions
of English society in the early days of the
20th century, social commentators now argue that
the 21st century may well be better defined as a
society divided between the Es (those who speak
and breathe ‘green’), and the Non-Es (who simply
do not care about the environment). In the streets,
the shops and of course the media, the climate
deniers battle it out with the climate doomsayers.
And just as Us and Non-Us could recognise likeminded people and despise all others, so too can Es
find peers and identify Non-Es with a single glance.
Those who show up at an organic vegetable stall
with a recycled carry-bag can feel just that little
bit smug as they catch the guilty buyer furtively
asking for a plastic bag to take their purchase home.
Those who purchase free-range only can stand in
judgment in the supermarket queue as the hapless
Non-E lines up his or her un-PC dozen of batteryproduced eggs on the check-out tray.
Of course, Eco-snobs know that they must be
prepared to pay for the privilege of buying green.
Not for them the imported grape or the out-ofseason peach. They avoid imported vegetables
because the carbon footprint to bring these over
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CHAPTER 15 SOCIAL STRATIFICATION / 523
to Australia would be unforgivable—indeed
downright amoral. Just like Mrs Pratchett in
Roald Dahl’s Boy, you can almost hear them chant
in the well-heeled organic shops of leafy suburbs,
‘We don’t want you in ’ere just to look around!
Either you forks out or you gets out’. And because
it is expensive to be green, becoming an E is just
as much of a challenge as to become a Us used to
be. It is about language, posture and behaviour.
Perhaps the most regrettable aspect of this new
breed of consumers is the fact that, ultimately,
Eco-snobs are not in it for the planet at all: they
leverage the environment to project an image
and impress others. It is not about the planet, but
about them as a person belonging to a better, more
enlightened class of people. Instead of creating
communities intent on reaching shared goals,
the Eco-snob only serves to antagonise the less
deserving, or those who simply can’t afford to pay
$3.50 per peach when feeding a family of four.
What are the external signs that Eco-snobism
is on the increase? Anyone who has watched
the rise of the mighty Prius (before the public
relations disaster of the product recall in the US
and Europe) could be forgiven for thinking that
Australians, currently the largest emitters of carbon
dioxide in the world on a per-capita basis, have
had an epiphany and are now bent on reining
in car-induced pollution. Not so! A marketing
survey exploring the purchase motivation of Prius
drivers revealed that 57 per cent of buyers bought
the high-profile hybrid car because ‘It makes
a statement about me’, compared with only
36 per cent who did so because of its lower fuel
consumption and 25 per cent who did so to reduce
carbon dioxide emissions. And while ethicists may
argue that it does not matter whether preserving
the environment is an end in itself or the means to
an end, one can only marvel at the ingeniousness of
humankind, able to infinitely invent ways to create
classes of ‘haves’ and ‘have-nots’.
It would, however, be a mistake to dismiss the
fundamental issue of climate change as merely a
phenomenon in social categorisation. Eco-snobs
should not distract others from realising that
without quick and energetic human intervention
to address and correct human-induced global
warming, dire consequences will be felt by Es and
Non-Es alike!
QU ES TIO NS
1 Whatever the issue in question, will there
always be ‘snobs’ who look down on others?
Why/why not?
2 Are you an Eco-snob? How do you know?
Are Eco-snobs helping the cause or making it
harder for everyone?
3 What does the existence of ‘snobs’ tell you
about society?
spotlight
ON NZ
Speight’s and the
development of the New
Zealand beer market
Rob Hamlin, University of Otago
New Zealand, like Australia, has traditionally been
considered to be a highly egalitarian society without
a defined class structure. However, over the past
couple of decades this has started to change: in
1985, the Labour Party in New Zealand initiated
a ‘revolution’, which included the dismantling of
many of the interventionist policies that had created
and supported the country’s egalitarian culture.
The outcome of this revolution was an increasing
gap between the incomes of rich and poor members
of New Zealand’s society, and the emergence of a
more strongly stratified society based on income
and economic resource.
The impact of this rapid change was keenly felt
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524 / PART THREE EXTERNAL INFLUENCES
in the beer market. Before this time, people drank
the same types of beer because they had very little
choice—they could choose from a small group of
‘keg’ beer brands produced by Lion Nathan and
Dominion Breweries, which enjoyed a comfortable
duopoly in the market at the time. The lack of
a rigid structure in New Zealand’s society was
reflected in a relative lack of structure within the
beer brands: Lion Nathan had a ‘structure’ of sorts,
based on geography rather than the type of user and
the usage situation. Lion Nathan’s most strongly
identified brand was Speight’s, and this regional
brand was taken all over the nation and the world
through the 1990s by a very effective advertising
campaign that identified the brand with the rugged
outdoors and the independent ‘southern man’.
However, by 2007, this campaign was showing
signs of running out of steam. The major reason
for this was that New Zealand society had now
become highly economically and socially stratified.
While Speight’s still held the middle ground, it
was now being challenged as never before by large
numbers of high-quality and much more expensive
offers at the top of the market. Some of these
were international premium beer brands, such as
Stella Artois, and Heineken, but smaller local craft
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3 What should Lion Nathan do with the
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