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Buyer Behaviour Income and Social Class. Chp. 13 with Duane Weaver. Income & Social Class OUTLINE. INCOME PATTERNS $ PENDING Consumer Confidence Social Class Impacts Measuring Affect on Purchase Decisions. INCOME PATTERNS. Average Cdn . Income is up

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Presentation Transcript
income social class outline
Income & Social ClassOUTLINE
  • INCOME PATTERNS
  • $PENDING
  • Consumer Confidence
  • Social Class
    • Impacts
    • Measuring
    • Affect on Purchase Decisions
income patterns
INCOME PATTERNS
  • Average Cdn. Income is up
  • Steady increase in working women, thus middle & upper income Family earnings UP!
  • Education increases income2006 results:
    • 50%+ Cdns. with some post secondary education/income
    • 25% have some University, 16%+ have degree
pending

or

+

?

$PENDING
  • Discretionary Incomea.k.a “disposable income”
    • “the money available for a household over and above that required for a comfortable standard of living.”^^^what does this really mean??^^^
consumer confidence and the propensity to spend
Consumer Confidenceand the propensity to spend
  • Behavioural Economics (economic psychology) tries to determine:how consumers’ motives and expectations about the future affect the entire society’s economic well-being.
  • Optimism vs. Pessimism
  • Spend vs. Hoard/Save(e.g. Great Depression, severe weather, impending war, threats of terror…social or political unrest)
social class
SOCIAL CLASS
  • Social Class = a consumer’s standing
    • Determined by a complex set of variables including income, family background, and occupation within a particular culture.(note we will look at cultural implications separately)
  • Is it Have vs. Have not?
  • What is the “have”???
  • How does the perception of social class impact the cognition of spending?(e.g. minimalism vs. materialism)
impacts of social class
IMPACTS of SOCIAL CLASS
  • Pecking order
  • Access to resources
  • Tastes and Lifestyle
  • Social stratification and status hiearchy
  • Please get together with your team NOW:
    • take 8 minutes to come up with one example for each of the above.
    • Your examples should exemplify how social class impacts a decision to spend by that social group.
measuring social class
Measuring Social Class
  • Why bother?What is the value to a marketer, advertiser, or product manager?
  • Complex concept that is difficult to measure
  • Problems with metrics:
    • Badly dated, not as relevant today
    • Most based on traditional nuclear family
    • Relies largely on interviewer’s judgment
    • Mixed rankings: income, ethnicstatus, job status, & actual social behaviour
measuring social class1
Measuring Social Class
  • Social Class Segmentation Issues:
    • Ignore status inconsistency
    • Ignore intergenerational mobility
    • Ignore subjective social class (self-identity vs. classification of value)
    • Ignore aspirations to change one’s standing
    • Ignore social status of working spouse
social class s affect on purchase decisions
SOCIAL CLASS’sAffect on Purchase Decisions
  • Social class “standing” can be used to segment markets as we see examples of buyer behaviour that are related. E.g.: Working class focusing on Function and Yuppie focusing on Image.
  • World-view of classes
  • Taste cultures (aesthetic and intellectual preferences), codes (restricted v.s elaborated), cultural capital (destinctive rare practices)
social class s affect on purchase decisions1
SOCIAL CLASS’sAffect on Purchase Decisions
  • Targeting Social Class
    • From what we have learned, how can we better target a specific social class?
      • High income
      • Middle income
      • Low income
  • Invidious distinction – products that inspire envy in others through display of wealth or power.
  • Conspicuous consumption – people’s desire to provide prominent, visible evidence of their ability to afford luxury goods.
  • Parody Display – seek status by reverse consumption, mocking status symbols.
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