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Chapter 13 Household and Social Class Influences CHAPTER SUMMARY Individuals in a society can be grouped into status levels (upper, middle, and lower), making up a social class hierarchy. Class distinctions are significant because members of a particular class share common life experiences and therefore values and consumer behavior patterns, although many variations occur within groups. Individuals are most likely to be influenced by members of their own class because they regularly interact with them. Still, influence can cross class lines through the trickle-down effect (when lower classes copy upper-class values and behavior) or the status float effect (when trends start in the lower classes and spread upward). A variety of factors determine social class, the most critical of which are occupation and education. Researchers use a battery of items, such as the Computerized Status Index, to measure social class. Three major trends producing an evolution in social class structure are upward mobility, downward mobility, and social class fragmentation. Social class influences consumer behavior in three major ways: (1) through conspicuous consumption, the acquisition and display of status symbol offerings to demonstrate social standing; (2) through compensatory consumption, trying to offset some deficiency by engaging in greater-than-usual consumption; and (3) through the meaning of money. Households include both families and unrelated people living together, as well as singles. The proportion of nontraditional households has increased because of factors such as (1) later marriages, (2) cohabitation, (3) dual-career families, (4) divorce, and (5) smaller families. Households exert considerable influence on acquisition and consumption patterns. Members can play different roles in the decision process (gatekeeper, influencer, decider, buyer, and user). Also, husbands and wives vary in their influence in the decision process, depending on whether the situation is husband dominant, wife dominant, autonomic, or syncratic. Children can influence the decision process by making requests of parents. The nature of this influence partly depends on whether the household is authoritarian, neglectful, democratic, or permissive. In general, the older the child, the greater the influence. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Describe the various types of households and families, and explain how the family life cycle and other forces affect household structure. 2. Discuss the roles that household members play in acquisition and consumption decisions, and how companies can build on these roles to market more effectively. 3. Define the social class hierarchy and identify the major determinants of social class standing. 4. Explain how social class influences consumer behavior and why these influences are considerations when marketers plan strategy and tactics. 5. Outline three key forces that are, over time, changing social class structure in many countries. CHAPTER OUTLINE I. How the Household Influences Consumer Behavior A. Types of Households 1. Nuclear Family: mother, father, children; the most typical unit 2. Extended Family: nuclear plus aunts, uncles, grandparents, cousins, nieces 3. Household is a broader term that includes a single person or a group of nonrelated people living together. a) Cohabiting couples—an unmarried male and female living together. b) Gay couples c) Roommates d) Single-parent households e) Boomerang children (come back home after college) B. Households and Family Life Cycle 1. Households differ in the family life cycle. It is different stages of family life, depending on the age of the parents and how many children are living at home. 2. Marketers consider the great variation in needs depending on the family life cycle. Generally, spending increases in households when couples marry and decreases when families become older, single households. 3. Family in the midst of a life cycle change are more likely to switch brand preferences and be more receptive to marketing efforts. C. Changing Trends in Household Structure 1. Delayed Marriage and Cohabitation a) Many are waiting to raise a family while establishing a career. It is not as common anymore to get married right after high school or college. More people are living together before marriage. 2. Dual-Career Families a) Dual-career families spend more money on childcare, eating out, and services in general than other families typically do. b) The increased burden of both career and family leads to role overload and less time for cooking, housekeeping, shopping, and other activities. a) More money is spent on time saving devices such as fast food. b) More husbands are taking on household responsibilities, including shopping and cooking. For a small but growing percentage, some men are staying home to care for children. As a result, some ads are now geared towards men. In Asia, ads that are geared toward men are viewed negatively by both men and women since sex roles are considered more traditional even though more men are handling more housework. 3. Divorce a) Four out of 10 US marriages are likely to end in divorce. This trend has leveled off, but the impact for consumer behavior, including separation, needs to be considered. b) Consumers dispose of old possessions when forming a new household, creating new patterns of consumption. c) Changes in lifestyle to form a new identity or to relive stress during the transition can lead to acquiring goods and services. d) Recently divorced consumers might buy a new house, car, furniture or clothing, get a new hairstyle, or go to singles clubs to assume a new image or simply to feel better. e) The divorced individual with custody of children may be less economically stable than married counterparts. Such individuals may also need services such as daycare or convenience products such as prepared food. f) Divorced individual with little or no responsibility for children may be older but still have characteristics more common to singles, but with generally more income for housing, cars etc. g) Consumption patterns of divorced parents are influenced by having children who travel between families, which requires duplicate supplies of clothes, toothbrushes, and toys. 4. Smaller Families a) In many countries the average household is getting smaller. b) Average household in the U.S. has dropped below 3 people. c) More discretionary income to spend on recreational items, vacations, education, toys, and entertainment. d) Can spend more money per child. e) Childless married couples tend to have more discretionary income than other households; spending more on food, restaurant meals, entertainment, liquor, clothing, and pets. 5. Same-Sex Couples a) The number of same-sex couples is growing. b) Some states and countries are now allowing same-sex marriage. D. Marketing Implications 1. Products that offer convenience can be targeted to dual-career and divorced households. 2. In dual-income families, working wives gain influence over consumption and acquisition decisions. 3. Singles are an attractive market to marketers. 4. Marketers target same sex couples via sponsoring gay pride festivals, and ads. II. Roles that Household Members Play A. Types of Roles 1. Household decision roles are roles that different members play in a household decision. a) Gatekeeper b) Influencer c) Decider d) Buyer e) User 2. Instrumental roles relate to tasks affecting the buying decision. 3. Expressive roles involve an indication of family norms. B. The Roles of Spouses 1. Husband-dominant decision is made primarily by the male (e.g., lawnmower) 2. Wife-dominant decision is made predominantly by the female head of household. 3. An autonomic decision is equally likely to be made by either party but not both. 4. A syncratic decision is made jointly by the husband and wife. C. The Role of Children 1. Children influence (or attempt to) their parents buying and disposition. 2. Children overestimate how much influence they have in most decisions. 3. Children may bargain, persuade, use emotional appeals, and request. 4. Authoritarian households stress obedience, and this determines the child’s obedience. D. Marketing Implications 1. Marketers appeal to deciders usually, but should appeal to others, such as persuaders. 2. Companies target mothers by using mommy bloggers. 3. More children are online, so children game sites featuring products are a rising trend. III. Social Class A. Types of Social Class Systems 1. Most societies have high, middle, and low class hierarchy. 2. The U.S. breaks it down further, into seven subclasses (upper-upper, lower-upper, upper-middle, middle class, working class, and lower Americans and lower-lower. B. Social Class Influences 1. Trickle-down effect: trends that start in the upper classes and are copied by lower classes. 2. Status float: whereby trends start in the lower or middle classes and spread upward. C. How Social Class Is Determined 1. Income vs. Social Class a) Income is weakly related to social class. b) Most overlap is in the middle and lower levels. c) Both factors are important. 2. Occupation and Education a) The greatest determinant of class standing is occupation, particularly in Western cultures. b) Education, skill or training is critical because it often determines their type of occupation, and therefore social class. c) Educational attainment is considered the most reliable determinate of a consumer’s income potential and spending patterns. 3. Other Indicators of Social Class a) Area of residence b) Possessions c) Family background d) Social interactions e) Inherited status: derived from parents at birth f) Earned status: acquired from personal achievements 4. Social Class Indexes a) Computerized Status Index (CSI) b) Status crystallization occurs when consumers are consistent across the various dimensions and social class is easy to determine. IV. How Social Class Changes Over Time A. Upward Mobility 1. Individuals rise to a higher level of status. 2. Usually achieved by educational or occupational achievement. B. Downward Mobility 1. Individuals move to a lower class and lose social standing. 2. Increasing trend in many industrialized countries. 3. Usually caused by loss of job or inflation. 4. Status panic occurs when children cannot maintain the same status level as their parents. C. Social Class Fragmentation 1. Old social class distinctions are beginning to disintegrate. 2. Upward and downward mobility have blurred class divisions. 3. Mass media have exposed consumers to norms and values of other classes. 4. Advances in communication technology have increased interaction across social class lines. V. How Does Social Class Affect Consumption? A. Conspicuous Consumption and Voluntary Simplicity 1. The acquisition and visible display of luxury goods and services to demonstrate one’s ability to afford them. 2. Occurs with different items across all social classes. 3. Conspicuous waste occurs when wealthy individuals buy products that are never used. 4. Voluntary simplicity is limiting acquisition/consumption for a less material life. B. Status Symbols and Judging Others 1. Status symbols indicate their owners’ place in the social hierarchy. 2. Parody display—occurs when status symbols move in a reverse way. 3. Fraudulent symbols—occurs when status symbols become widely possessed and lose their status connotations. C. Compensatory Consumption 1. An attempt to offset deficiencies or a lack of esteem by devoting attention to consumption. D. The Meaning of Money 1. Goes beyond the utilitarian level and comes to symbolize security, power, love, and freedom. 2. Money as Both Good and Evil a) Money can lead to a higher quality of life and the ability to help others, or to harmful practices and negative emotions. 3. Money and Happiness a) The endless pursuit of money does not always result in fulfilled dreams. b) After some people acquire tremendous wealth, money can become meaningless and no longer highly desired. c) Money cannot buy love, health, true friendship, and children, among other things. 4. Marketing Implications a) Tapping into the desire for visible signs of upward mobility can be effective in marketing some products. b) The use of credit and debit cards is rising in many nations, creating opportunities and challenges. VI. The Consumption Patterns of Specific Social Classes A. The Upper Class 1. In most societies, the upper class is a small group consisting of the aristocracy, the new social elite (nouveaux riches) and the upper-middle class (professionals). 2. Likely to view themselves as intellectual, liberal, political, and socially conscious. 3. Attend cultural events, travel, invest in art, and donate to causes. 4. More likely to judge products based on attribute other than price. 5. A third of all U.S. millionaires are under the age of 40. B. The Middle Class 1. The U.S. middle class consists primarily of white-collar workers, many of whom have a college degree. 2. The middle class tends to look to the upper class for guidance. C. The Working Class 1. Mainly represented by blue-collar workers. 2. Heavy dependence on family members for economic and social support. 3. More locally oriented socially, psychologically, and geographically than other classes. 4. More likely to spend than save. 5. More likely to judge product quality on the basis of price. D. The Homeless 1. At the low end of the social class hierarchy are the homeless who lack shelter and live on the streets or in makeshift structures, cars, or vacant houses. 2. Reasons include unemployment (or underemployment), release from mental institutions, drug addiction, lack of low-cost housing. 3. Struggle for survival, including scavenging, finding goods that have been either used or partially used and discarded by other individuals or institutions 4. Items are consumed to their maximum and are discarded only if they have absolutely no further use. E. Marketing Implications 1. Social classes can serve as a way of segmenting the market. 2. Product or Service Development a) Social class motives and values can determine which products or services consumers’ desire. b) Marketers can appeal to consumers’ aspirations for upward mobility. 3. Messages a) Advertising and personal selling messages can be designed to appeal to different social classes. b) Advertisements to upper class might suggest “Pamper yourself, you deserve it.” 4. Media Exposure a) Classes differ in their exposure to media, with upper classes reading newspapers and magazines and lower classes watching TV. 5. Channel Selection a) Certain channel members are designed to appeal to and pamper the upper class. b) Mass merchandisers and discount stores are successful when targeting the working class. 6. Note of Caution a) Difficulties in using social class as segmentation variable. (1). Varieties of factors affect social classes, making it difficult to measure. (2). Due to social class fragmentation, traditional social class distinctions may be becoming too broad to be useful. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows: 1. Define the terms nuclear family, extended family, and household. Answer: A nuclear family is the core; it is the father, mother and children. Some families unofficially include their pets in the nuclear family. The extended family includes relatives such as grandparents and cousins, aunts, and uncles. It may include nephews and nieces as well. A household is a single person living alone or a group of people who live together. You do NOT have to be related to be in a household. For instance, your college roommates are in your household that given year. 2. What five key factors have altered the basic structure and characteristics of households? Answer: 1. Delayed marriage age and cohabitation. People are getting married at an older age (e.g., to start their career and save for a family) and are testing out living together before marriage more than other generations. 2. Dual-career families. More women work out of the home, and thus more often we see both parents split duties bringing home money and taking care of the home. 3. Divorce. Unfortunately, not all marriages last, and as a result any impacted children may have 2 or more families with step parents, etc. Divorce is about 40 percent, according to the text—and that is a conservative figure based on some other reports. 4. Smaller families. Children are expensive and it is difficult to raise many children when both parents work. 5. Same-sex couples. There are about 645,000 same-sex households, conservatively. This includes relationships and partnerships (e.g., a lesbian couple), and many more states are considering legal marriages among same-sex couples. 3. What five roles might a household member perform in acquiring and consuming something? Answer: There are five roles: 1. Gatekeeper- collects and controls information 2. Influencer-express their opinions and may persuade 3. Decider-makes the decision 4. Buyer-makes the purchase transaction 5. User-uses or consumes the product or service (the user may also be the decider or buyer). Note you may have multiple roles in any given situation, and sometimes, not all 5 roles are fulfilled. 4. What is the social class hierarchy? Answer: A social class hierarchy is the grouping of members of society according to status—high or low. Different cultures have differing hierarchies. For instance, in the US, there are upper, middle, and lower classes. It is thought that classes tend to behave more similarly with others in their class than with those in other classes. 5. What are the determinants of social class? Answer: The classes depend on occupation, education, income, and inherited vs. earned status. Also, where you live (e.g., home ownership vs. renting an apartment) can be a component. An upper class person tends to have an esteemed career (e.g., doctor or teacher), education (college or post grad), above average income, an upper class family, and owns a home. Not all of these are necessary, yet, each are indicators of social class. 6. Why is social class fragmentation taking place? Answer: Social class fragmentation is the disappearance of class distinctions. They are starting to have blurred barriers. This is because of upward and downward mobility. Note that class is transient, so you may have an inheritance to high social class, but that can be lost. Or, one can earn a higher status by hard work and education. Increased availability to the Internet and media exposes all groups to the lifestyles of other classes, and consumers may mimic what they see. For instance, the show the Real Housewives of Orange County showcases wealthy housewives, and some consumers may aspire to use the brands that these women use on the show. Last, there is increased interaction among classes due to social media and communication technology. 7. Why would a consumer engage in conspicuous consumption, conspicuous waste, or voluntary simplicity? Answer: Conspicuous consumption is to show a brand, or attributes of the brand that go along with a self-schema, or one in which a consumer is proud of and wants attention to the purchase or product. A shiny set of chrome wheels with a brand prominently displayed is an example. Conspicuous waste is visibly buying products and services that one never uses. This could be because one wants to put out an image. For instance, pianos look nice and show an image of music appreciation. That piano may never be used though. Counter to this, sometimes consumers choose not to spend, or to underspend. They may choose to opt out of Valentine gift exchange with their partner, and make a card and dinner versus a more conspicuous dinner date at a high-end restaurant. Note, this is not because they can’t afford the restaurant—it is a choice to be low-key in consumption. It can be a lifestyle for some to live minimally. 8. How does parody display differ from status symbols? Answer: Parody displays are status symbols that start in the lower-social classes and move upward. Status symbols in general are product or services that tell others about someone’s social class standing. 9. Under what circumstances does compensatory consumption occur? Answer: This is the behavior of buying products or services to offset frustration or difficulties in life. For instance, one may buy a red convertible car during a mid-life crisis to show that they are cool, hip, and drive a young and trendy car. 10. Why might a company develop different offerings for consumers in different social classes? Answer: Companies develop different offerings because upper class consumers may want to wear signs of wealth, such as a pair of designer sunglasses with diamonds. Other classes may not be able to afford those sunglasses, but instead a different brand without diamonds. Car companies such as Toyota understand this, so they have tiered branding (Lexus for upper-class consumers, Toyota for the middle class, and Scion for Gen X or Y). CONSUMER BEHAVIOR CASE IKEA’s Household Appeal No matter where you live, no matter what kind of household you live in—married with children, same-sex couple, single or single parent, or just roommates—IKEA wants to be “your partner in better living.” The Swedish retailer rings up $33 billion in sales through 284 stores in 26 countries, offering stylishly-designed furniture and quality housewares at affordable prices. In fact, IKEA continues to lower prices year by year on popular items so it can both attract new customers and stimulate repeat business, even among consumers whose household incomes are stalled or falling. Offering a range of good-better-best products widens the store’s appeal to consumers setting up new households, families getting ready for new babies, families where children regularly travel from one parent’s household to another, and households that are buying on a limited budget. Also, consumers who might have bought IKEA’s top-of-the-line items before the recession now have more choices if they’re trading down to less-expensive products. Shopping at IKEA is deliberately family-friendly: Many of its stores feature a play area where youngsters can be dropped off while one or two parents browse the store for adult or children’s furniture and make their purchases without their children along. The stores also are equipped with restaurants that serve Swedish-style foods for breakfast, lunch, and dinner, equipped with high chairs for the youngest shoppers. When the IKEA store in Wednesbury, England added a children’s play area and expanded the restaurant, it saw an immediate sales increase and found that the length of the average customer visit had doubled, to about four hours. Yet not every family member looks forward to an IKEA shopping trip. For Father’s Day weekend in Australia, the IKEA store in Sydney set up a temporary Manland, a room where men could watch sports programming and play video games while their wives or girlfriends shopped. “Manland is the perfect solution for both the blokes who find shopping a chore and the ladies who are forced to drag their partners around,” said IKEA’s PR manager in Australia. Although targeting singles and couples with advertising that appeals to their needs and wants is nothing new, IKEA was among the pioneers of mainstream advertisers to target gay couples. Its TV commercial showing two men shopping for furniture together caused a stir in part because the men were depicted as a committed couple. A recent—and controversial—billboard for IKEA in Italy features two men holding hands (and a shopping bag) under the headline: “We are open to all families.” The ad goes on to say: “With us, you will feel at home. What we want to do is make life easier for everyone, every family, whoever they are.” IKEA’s word-of-mouth reputation for quality and value gives the company an advantage in expanding to new markets. Before the first IKEA store opened in Bangkok, the marketing manager acknowledged the presence of competition but also noted that many locals “have travelled abroad or learned from friends about IKEA furniture.” In advance of this store opening, IKEA distributed one million copies of a special 16-page catalog featuring items chosen specifically for the Thai market. So many consumers worldwide use the full 370-page IKEA catalog for ideas as well as shopping that IKEA prints more than 200 million copies each year and makes the catalog available online and via an app. U.K. consumers who use Facebook were recently invited to create a 3D IKEA bedroom on YouTube and click on items from the company’s catalog to furnish it as they wish. IKEA adds the finishing touch by hanging photos from each user’s Facebook wall in the bedroom. “We want to be the experts in truly understanding peoples’ needs, wants, and dreams to help them live a happier life at home,” explains an executive. Of course, any merchandise chosen for the virtual bedroom can be easily ordered for delivery in the real world. Case Questions 1. The Manland experiment lasted only one weekend in one store. What are the marketing advantages and disadvantages of expanding it to other stores? Do you think IKEA should do more with this idea? Why or why not? Answer: Advantages – novel, well received concept that could garner earned media and provide opportunities for interesting advertising Disadvantages – may not translate well into other cultures, added expense of reconfiguring many more stores After conducting market research, IKEA should move forward with a similar idea but tailor it to be culturally appropriate based on the store’s location 2. Would you classify IKEA’s products as suitable for conspicuous consumption, voluntary simplicity, and/or compensatory consumption? Explain your answer. Answer: IKEA products are most likely suitable for voluntary simplicity since their products are known to be well-made, but affordable. However, arguments can be made for conspicuous consumption as IKEA also makes trendy and/or top-of-the line products, or compensatory consumption as they sell items that can make one’s life easier or more decorative and may offset consumer difficulty or low self-esteem. 3. IKEA’s ads targeting gay couples have drawn criticism as well as acclaim. What effect do you think such controversy has on the retailer’s image and appeal? Answer: Although it may turn some potential customers off, generally it demonstrates IKEA’s image as an open and progressive company that recognizes the relative decline of the traditional nuclear family and rise of alternative household structures (i.e. gay, single-parent, roommates, non-married couples, etc.). 4. Why would IKEA continue to print millions of catalogs every year, while other retailers are eliminating printed catalogs in favor of online and in-store shopping? Answer: The printed catalog gives consumers a tactile experience with the brand and allows them to visualize how the products would fit into their home before they even enter a store. Additionally, it is a point of uniqueness since most companies no longer offer printed catalogs. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Design a battery of questions to measure social class standing. Make sure to include all the determinants of social class. In addition, pick one product and one service that you think will vary across social class in terms of consumer behavior and develop a series of questions to measure the acquisition and consumption of this product and service (i.e., how much time is spent, what information is collected, where it is purchased, what brands are considered and selected, and so on). Administer this questionnaire to at least 15 consumers who represent the range of social classes, and divide the respondents into three major groups (upper, middle, and lower class). Summarize how the three groups vary in terms of consumption behavior for both the product and service. Answer: The key component to this question is to remind students that social-class standing and income are not strongly related. It is important to have the student understand the nature of the differences between classes to be able to target different social classes. Refer students to the social class determinants of area of residence, social interaction, occupation, and education. Social Class Standing Questionnaire Determinants: 1. Education Level 2. Occupation 3. Annual Household Income 4. Net Worth 5. Housing Type Product: Smartphone Questions: 1. How often do you buy a new smartphone? 2. Primary information source for purchase? 3. Usual place of purchase? 4. Considered brands? 5. Important factors (Price, Brand, Features, etc.)? Service: Healthcare Questions: 1. Frequency of regular check-ups? 2. Method of selecting healthcare provider? 3. Usual place of service? 4. Preferred provider type? 5. Important factors (Cost, Quality, Convenience, etc.)? Summary of Findings Upper Class: • Prefers premium smartphones; values brand and features. • Uses private healthcare; values quality and specialist care. Middle Class: • Balances price and features in smartphones; shops at electronics stores. • Chooses healthcare based on cost and quality; often visits general practitioners. Lower Class: • Prioritizes affordability in smartphones; buys from discount retailers. • Uses public clinics or telehealth; cost is a key factor in healthcare decisions. 2. A travel service has hired you to develop a marketing strategy for a vacation package. The company wants to offer different packages to different social classes. Develop a complete package and marketing strategy for each of the following: the upper class, the middle class, and the working class. Be sure to discuss (1) services offered (including destination, accommodations, and so on), (2) pricing, (3) the advertising message, and (4) media targeting. Summarize the key differences among the three marketing strategies. Answer: This exercise is similar in intent to the exercise above. Again, remember to steer students away from the natural tendency to mistake social class with income. In designing different packages for different classes, challenge students to think more specifically about the type of amenities that each social class is interested in, rather than just adding more amenities (and charging higher prices) for the different classes. Upper Class Package 1. Services Offered: Luxury destinations (e.g., French Riviera), 5-star accommodations, private jets, exclusive experiences (private yacht tours, gourmet dining). 2. Pricing: Premium pricing, all-inclusive packages with high-end amenities. 3. Advertising Message: "Experience the ultimate in luxury and exclusivity. Indulge in a bespoke vacation crafted just for you." 4. Media Targeting: Luxury magazines, high-end lifestyle websites, exclusive social media platforms (LinkedIn, Instagram), direct mail to affluent neighborhoods. Middle Class Package 1. Services Offered: Popular international destinations (e.g., Mediterranean cruise), 4-star hotels, guided tours, family-friendly activities. 2. Pricing: Mid-range pricing, customizable packages with options for upgrades. 3. Advertising Message: "Discover unforgettable experiences without compromising comfort. The perfect vacation for families and couples." 4. Media Targeting: Mainstream travel magazines, social media (Facebook, Instagram), online travel agencies, email marketing. Working Class Package 1. Services Offered: Affordable domestic destinations (e.g., national parks), budget-friendly hotels, group tours, inclusive meal plans. 2. Pricing: Economical pricing, value-driven packages. 3. Advertising Message: "Affordable adventures for everyone. Create lasting memories on a budget-friendly vacation." 4. Media Targeting: Local newspapers, radio, discount travel websites, social media (Facebook), community boards. Key Differences • Services Offered: Varies from luxury, premium experiences for the upper class to affordable, value-focused options for the working class. • Pricing: Ranges from premium pricing for upper-class packages to economical pricing for working-class packages. • Advertising Message: Emphasizes luxury and exclusivity for the upper class, comfort and convenience for the middle class, and affordability for the working class. • Media Targeting: Upper class uses high-end, exclusive channels; middle class uses mainstream media; working class focuses on accessible and local media outlets. 3. Pick three products and services that households consume. Conduct an interview of individuals from five families, and ask them to provide a thorough description of the processes used to acquire, consume, and dispose of these products or services. Summarize this information by answering the following questions: (a) Which specific roles do household members play in the decision process? (b) What is the nature of husband-wife interaction in the decision? (c) Which role do children play in the process? (d) How do household consumption patterns for these products and services differ from individual consumption patterns? (e) Who disposes of the products and services and why? Answer: Products selected should be ones that involve consumption by multiple household members in order to better capture the dynamics that take place during the consumer behavior process. Discuss how different consumption situations affect the roles of gatekeeper, influencer, decider, buyer, and users. Products and Services 1. Groceries 2. Family Car 3. Streaming Services Subscription Interview Summary (a) Specific Roles in Decision Process • Groceries: Parents (mostly mothers) are the main decision-makers; children influence snack and treat choices. • Family Car: Joint decision-making by parents; fathers often research options and handle negotiations. • Streaming Services: Joint family decision; children suggest services, parents approve based on content suitability and cost. (b) Nature of Husband-Wife Interaction • Groceries: Collaborative; mothers lead with input from fathers on larger purchases. • Family Car: Collaborative; extensive discussions on budget, brand preferences, and features. • Streaming Services: Generally consensus-based, ensuring family-friendly content. (c) Role of Children in the Process • Groceries: Influencers, particularly in selecting snacks and specific brands. • Family Car: Minimal role; may express preferences but not major decision-makers. • Streaming Services: Significant influencers, suggesting services and specific shows or movies. (d) Household vs. Individual Consumption Patterns • Groceries: Bulk buying for the family; individual preferences accommodated within the collective choice. • Family Car: Vehicle choice reflects family needs (space, safety), not individual preferences. • Streaming Services: Selection of services/content aims to satisfy diverse family tastes; more variety than individual preferences alone. (e) Disposal of Products and Services • Groceries: Parents handle disposal of waste; emphasis on reducing waste and recycling. • Family Car: Disposal managed by fathers or jointly; decisions to sell/trade-in often include practical considerations like mileage and condition. • Streaming Services: Parents typically manage service cancellations; decisions often based on cost and usage. These findings indicate varied decision-making dynamics in households, with collaborative efforts in major decisions and specific roles in regular consumption and disposal processes. Children's influence varies depending on the product or service's relevance to them. SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS NASCAR Once dominated by working class men, the fan base for the National Association for Stock Car Auto Racing (NASCAR) has changed radically over the past five years. Point your browser to www.nascar.com and examine the home page and links. Which social class influence is exemplified by NASCAR’s surging popularity? What are some of the stimuli intended to engage the interest of consumers beyond NASCAR’s original fan base? Instructor Notes The overwhelming popularity of NASCAR is a prime example of status float. The sport has gained fans from the middle class and upper middle class in an astonishingly short time, although one would surmise that few upper-class consumers count themselves among the faithful. No doubt a brilliant marketing strategy has propelled NASCAR to the forefront of current sports culture. However, one wonders if the phenomenon of status float might have been enough to increase its popularity somewhat, regardless of marketing efforts. The website’s very existence constitutes a nod from NASCAR to its burgeoning middle-class fan base, since few working-class consumers have online access. NASCAR’s home page provides many cues to entice these middle-class consumers. A welter of brands preferred by middle-class consumers are featured as sponsors or affiliates of NASCAR activities: Red Lobster restaurants, Sears Craftsman tools, Ford vehicles, Miller Lite beer, Visa charge card, and ESPN cable sports network. Of particular interest to middle-class and upper-middle-class families is NASCAR’s partner, Premier Cruise Lines. In 2000, the family-friendly operator of the Big Red Boat ships entered a licensing agreement with NASCAR to bundle cruise packages with race tickets, and to sell jointly branded merchandise in its shipboard gift shops. The home page links to pages for track information and NASCAR news, including extensive transcripts of interviews with various drivers. The site’s e-tail shops sell a variety of collectibles, clothing, and other accessories. Many of these items are comparatively expensive. Upper-middle-class fans can easily afford them; many middle-class and working-class fans will purchase them for conspicuous or compensatory consumption. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 4, Memory and Knowledge (schemas for spectator sports activities like NASCAR) • Chapter 6, Attitudes Based on Low Effort (mere exposure effect, communication source effects of popular drivers as NASCAR representatives in marketing cues) • Chapter 9, Judgment and Decision Making Based on Low Effort (passive learning of NASCAR lore, brand loyalty of NASCAR fans) Discussion Idea By broadening its appeal to consumers of other social classes, does NASCAR risk alienating its original working-class fan base? DEL WEBB Say the words “Sun City” to most people, and the image that comes to mind is one of seniors living in cookie-cutter homes in a retirement community. Del Webb Inc. revamped its marketing strategy some years ago to broaden the appeal of its communities beyond the stereotype of Sun City. Visit the company’s website at www.delwebb.com. How does Del Webb Inc. use age, family life cycle stage, and lifestyle to segment the market for its communities and homes? Describe some of the products targeted to various segments. Instructor Notes Del Webb Inc.’s website provides extensive details about the company’s communities. The home page features photos of different homes and residents, including younger families. The tab for About Del Webb links the visitor to information about Active Adult and Family Living communities, each defined in terms of age, family life cycle stage, and/or lifestyle. Active Adult communities meet the needs of consumers age 55 “or better,” with their emphasis on fun for people who have retired from work but not from life. A click of this link takes the visitor to the Sun City website, with information on the activities, clubs, and amenities available at Sun City communities across the U.S. Each community’s page includes photos of attractive seniors engaged in entertaining activities, which effectively targets the senior market, especially its Young Again subset. Del Webb Inc. encourages the visitor to discover the benefits of a Sun City lifestyle by providing information about the communities’ residents (“people like you”), views, floor plans, and prices ranges for model homes, virtual tours, area maps, and more. The Family Living pages comprise an informative site about Del Webb’s other housing developments. Here the emphasis is on attributes to benefit family households, especially those in the Full Nest stages of the Family Life Cycle. For example, proximity to good schools and convenience to work for dual-career households take priority in these communities. However, the pages explicitly state that these diverse communities attract residents of all ages. Imagery of active grandparents frolicking with their grandchildren complements this theme. Homes in Family Living communities are smaller in size and in price than most of those found in other Del Webb communities, and thus are affordable for a wider variety of households. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 3, From Exposure to Comprehension (selective exposure concerning Del Webb communities, misperceptions about retirement communities) • Chapter 4, Memory and Knowledge (schemas for retirement living, family-oriented developments) • Chapter 7, Problem Recognition and Information Search (evoked set for housing developments, brand recognition for Del Webb) • Chapter 8, Judgment and Decision Making Based on High Effort (lifestyle, community orientation and age limits, price as determinant attributes in home purchase decision) • Chapter 14, Psychographics: Values, Personality, and Lifestyles (profile of residents of various Del Webb communities) Discussion Idea How can Del Webb Inc. improve its marketing strategy to target consumers in the Baby Boomer generation? CHOICE HOTELS INTERNATIONAL Among marketers who target consumers in more than one social class, a favorite strategy is developing different product lines or brands within a product category to appeal to consumers in each targeted class. Choice Hotels International offers travelers a variety of lodgings suitable not only to a broad range of incomes but also to several different social classes. Go to the company’s site at www.choicehotels.com, scroll to the bottom of the page, and click on the link for each lodging subsidiary (Clarion, Quality, Comfort, etc.). Examine each hotel’s page for cues that appeal to consumers in a particular social class. Which lodgings appeal to upper-class consumers? Which lodgings appeal to middle-class consumers? Which lodgings appeal to working-class consumers? Instructor Notes Clarion Hotels appeal to upper-middle-class consumers, especially those who are upwardly mobile. Clarion’s home page presents the slogan “Relaxing, Service, Distinctive,” along with photos of business travel, conferences, and resorts. The text mentions Clarion Class guest rooms which provide special amenities for business and leisure travelers. These cues imply that the Clarion is a good choice for consumers in white-collar or managerial occupations, who are comfortable spending time in cities or exotic locales. Quality Inns, Comfort Inns and Suites, and Main Stay Suites appear to target middle-class consumers. Their slogans and photos emphasize spacious rooms, well-kept grounds, good value (complimentary breakfast buffets and free local calls, for example), family-friendly surroundings, and reputable brands (Serta mattresses and Maxwell House coffee in the rooms). The clear implication from these cues is that these Choice lodgings are appropriate for consumers who are less well-off than Clarion’s target market, yet who still want to select a popular, well-known hotel brand. Sleep Inns and Suites, Rodeway Inns, and Econo Lodge appeal to working-class consumers. Their home pages feature good value, especially for families and seniors; spartan, clean rooms that are “warmly decorated” (comforting to the home-centered working-class consumer); and a friendly staff. All of these attributes communicate that these are appropriate choices for working-class consumers. The corporation currently offers no hotels that would meet the expectations of upper-class consumers. They require exclusive lodgings with fine furnishings; a large, professional staff; an extensive array of amenities; and highly desirable locations. Additional Uses This exercise also relates to concepts in the following: • Chapter 3, From Exposure to Comprehension (visual cues of lodging quality, consistency of color scheme for the logos of all Choice Hotels’ subsidiaries) • Chapter 4, Memory and Knowledge (imagery and discursive processing of information about Choice Hotels; trace strength of links for each Choice Hotel subsidiary) • Chapter 7, Problem Recognition and Information Search (diagnosticity of price and amenities, perceived risk and benefits of hotel stays) Discussion Idea What other cues and information can Choice Hotels provide at its website to steer consumers toward the lodging subsidiary that best meets their needs? ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions that the students consider while reading the chapter or to test their understanding of the material after the reading and lecture are complete. 1. Explain the ways in which social class and income can serve as predictors of consumption. Answer: Social class and income each predict consumption behavior in different ways. Income tends to be a better indicator for products and services that are not associated with class symbols but that do involve significant monetary expenditures. Social class tends to be a better indicator for products and services that reflect lifestyles and values but that does not involve significant monetary expenditures. 2. Explain the four ways that social class can affect consumption. Answer: Social class can affect consumption in the following four ways: (a) conspicuous consumption, (b) acquisition of status symbols, (c) compensatory consumption, and (d) the meaning of money. a. Individuals often judge others based on their possessions. Conspicuous consumption is an individual’s acquisition and display of objects to show off his or her status. The object is purchased as much because of what it signals to others. We read about famous people with a dozen cars and so many clothes that they cannot remember what they own. These are examples of conspicuous consumption. b. Closely related to conspicuous consumption are status symbols. These symbols are representations of a person’s social status or aspirational social status. For example, dining at a trendy restaurant or wearing the latest high-end watch makes a visual statement about the consumer and his or her ability to participate in or possess these symbols. c. Compensatory consumption is the act of buying a greater number of products or services or spending a larger amount of money than the consumer normally would in order to offset life’s problems. For example, a consumer might go on a clothes-buying spree after being fired in the belief that the purchase of the clothing will make him or her feel better. d. The final way that social class affects consumers is through the meaning of money. Money’s meaning extends beyond its functional purpose to symbolize freedom, power, and security, among other things. Understanding what consumers believe money represents is important in understanding their consumption patterns and in employing appropriate marketing strategies. 3. What roles do the members of your household play in acquisition, consumption and disposition decisions? Give examples of ways in which they perform these roles. Answer: Answers will vary. The responses should identify the individuals who perform the following roles: gatekeeper, influencer, decider, buyer, and user. A sample response follows. I live with two roommates. We recently signed a lease on a condominium. My roommate Jane was about to lose her current living arrangement, so she started looking for a place first and then asked Mary and me if we would like to live with her. She had already seen and eliminated a number of condominiums. This is an example of her being a gatekeeper. More recently, all three of us looked and had varying opinions about the way we would like the condo laid out, the locale, the cost, etc. Therefore, we all took on the role of influencers. In addition, Jane’s boyfriend is opinionated and thinks he knows it all. He has been influencing her opinion, which, in turn, affects us. The deciders and buyers will not only be the three of us, but also our parents, who agreed to co-sign the lease. The three of us will be the users. Acquisition: • Decision-Maker: Parents decide on major purchases (e.g., car). • Influencer: Children influence specific choices (e.g., snack brands). • Buyer: One parent handles purchases (e.g., subscribing to streaming services). Consumption: • User: All family members use products/services (e.g., watching TV). • Maintainer: Parents handle upkeep (e.g., car maintenance). Disposition: • Disposer: Parents manage disposal (e.g., recycling). • Evaluator: Family decides on discontinuing services (e.g., cancelling subscriptions). ADDITIONAL QUESTIONS 1. Working together, develop a definition of social class. Discuss the role that social class plays in society and how it influences behavior. Answer: Social class refers to a division of society based on socioeconomic status, including factors like wealth, education, occupation, and lifestyle. Social class influences behavior by shaping access to resources, consumption patterns, social interactions, and life opportunities. 2. Discuss the positive and negative aspects of social class. Answer: Positive Aspects: Can provide structure, create a sense of identity, and promote social order. Negative Aspects: Can lead to inequality, discrimination, and limit social mobility. 3. Discuss the following phenomena: (a) the trickle-down effect, (b) status float, (c) upward mobility, and (d) downward mobility. Consider how each of these phenomena could be important to marketers. Answer: Trickle-Down Effect: Trends starting in upper classes move to lower classes. Marketers can anticipate mass appeal for luxury items. Status Float: Trends originating in lower classes rise to upper classes. Marketers can capitalize on emerging trends. Upward Mobility: Movement to a higher social class. Marketers can target aspirational consumers. Downward Mobility: Movement to a lower social class. Marketers may adjust strategies for affordability. 4. Discuss the concept of conspicuous consumption and how it can motivate behavior. Provide three examples of how it can be incorporated into marketing strategy. Answer: Conspicuous consumption is buying goods to display wealth and status. It motivates behavior by encouraging people to purchase visible luxury items. Examples in marketing: 1. Luxury branding: Emphasizing exclusivity. 2. Limited editions: Creating scarcity. 3. Celebrity endorsements: Associating products with high-status individuals. 5. As a group, develop a definition of status symbols. Then, generate and record five examples of status symbols for each of the upper, middle, and lower classes. Answer: Status symbols are objects or services that signify a person's social and economic standing. Upper Class: Luxury cars, designer clothing, private jets, high-end watches, exclusive club memberships. Middle Class: New mid-range cars, branded electronics, suburban homes, vacation trips, advanced education degrees. Lower Class: Smartphones, branded sneakers, cars (used or economical), stylish yet affordable clothing, brand-name accessories. 6. It has been said that a phenomenon called social class fragmentation is now occurring in our society. What is this phenomenon? Why is it occurring? What are the marketing implications of this phenomenon? Answer: Social class fragmentation refers to the blurring of traditional social class distinctions. It's occurring due to increased social mobility, diverse lifestyles, and changing consumption patterns. Marketers must adapt by targeting micro-segments and offering a wider range of products. 7. As a group, discuss the role of money in society. What are its positive and negative aspects? Develop arguments to support the position that our society is too money-oriented. Then develop arguments that contradict this position. Answer: Positive Aspects: Facilitates trade, creates wealth, and provides financial security. Negative Aspects: Can lead to materialism, inequality, and stress. Arguments for society being too money-oriented: Overemphasis on wealth can lead to neglect of relationships, ethical compromises, and reduced well-being. Arguments against: Money enables innovation, supports philanthropy, and provides opportunities for better living standards. 8. Discuss how gender roles have changed for men and women over the years. Discuss what further changes might be expected. Explain how marketers can best respond to these changing roles. Answer: Gender roles have become more flexible, with more women in the workforce and men participating in domestic roles. Future changes may include further blurring of traditional roles and greater equality. Marketers should embrace diverse representations and target products without gender stereotypes. 9. Discuss how men and women differ on (1) traits, (2) information processing, (3) decision-making styles, and (4) consumption. Explain how knowing about these differences can lead marketers to act differently when targeting either men or women. Answer: 1. Traits: Men often emphasize independence; women value relationships. 2. Information Processing: Men focus on primary information; women integrate multiple details. 3. Decision-Making Styles: Men are often decisive; women may be more deliberative. 4. Consumption: Men may prioritize functionality; women may prioritize aesthetics and variety. Marketers can tailor messages: direct and feature-focused for men, relational and detail-oriented for women. 10. Family and household are not the same things. Explain the differences. Discuss how knowing the distinction between the two can be important for marketers. Answer: A family is a group of related individuals, while a household is all people living together, regardless of relationships. Understanding this distinction helps marketers target non-traditional households (roommates, cohabiting partners) with appropriate products and services. 11. Marriage patterns have changed in recent years. Explain what these changes are. Discuss what impact they have on the marketing environment. Answer: Changes include higher rates of cohabitation, later marriages, and more single-parent households. These shifts affect marketing by creating demand for smaller household goods, flexible services, and targeted communication for diverse family structures. 12. Often, family members play different roles in the decision process. Describe the types of roles that each family member might play in a specific decision. Explain how a marketer can influence the process, given these different roles. Answer: Roles include: Initiator: Suggests the need (e.g., parent suggests a new car). Influencer: Provides input (e.g., children express preferences). Decision-Maker: Makes the final decision (e.g., parents decide on the purchase). Buyer: Purchases the product (e.g., parent buys the car). User: Uses the product (e.g., entire family uses the car). Marketers can influence by targeting messages to each role, highlighting benefits relevant to each family member. 13. Children can often be influential in family decision-making. Select a product that is not targeted at children and discuss how a child can influence the choice of a particular brand. Answer: Product: Family vacation package. Influence: Children can sway parents toward choosing a vacation destination with child-friendly attractions (e.g., amusement parks), thereby influencing the choice of a family-friendly brand/package. Marketers can target children with appealing features like kids' clubs or themed accommodations. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “Class Portrait” Exercise Divide the class into small groups corresponding to the social classes and sub-groups described in the text. (The number of small groups formed will depend upon the size of the class.) Ask a representative of each group to pick from a hat a piece of paper on which has been printed a social class designation or sub-group Upper Americans (consisting of upper-uppers, lower-uppers and upper-middles), Middle Americans (consisting of the middle class and working class) and Lower Americans (which consists of lowers and lower-lowers). Give each group the homework assignment of drawing a portrait—on poster board large enough to be displayed at the front of the class—of a family from that social class or sub-group. The portrait, which must be graphical (i.e., handmade drawings or pictures clipped from magazines and other sources), should at a minimum include the members’ clothing, food, leisure-time activities, automobile, and prized possessions. Posters should not explicitly identify the social class depicted. When the groups have completed the assignment, position the posters around the room, allow students to inspect them, and then ask them to guess which social class or sub-group is portrayed in each. Use the exercise to motivate a discussion about the relationships among product and brand usage, lifestyle factors, and social class, as well as about social class stereotypes. (For students who want additional information on the topic, www.isr.umich.edu/src/psid is the website for the Panel Study for Income Dynamics, a longitudinal survey of U.S. individuals and families. Clicking on “PSID Newsletter” will give students access to recent study findings.) 2. Jeopardy Break the classroom into groups. Have the groups elect a team captain who is responsible for answering questions. Prior to class, create twenty questions from the chapter that can be answered by the groups with the help of the textbook. Following the format of the Jeopardy television program, ask questions from different topics in the chapter. Assign escalating point values to the questions. Keep track of the points earned by each group. At the end of the twenty questions, have each group submit a wager on a closed book Final Jeopardy question. Have groups submit a response to the final question on a sheet of paper. Calculate final scores and reward the top group(s) with a small prize (candy always works). 3. “Venus and Mars” Exercise Separate the class into groups of four or five individuals of the same sex. Tell the women that they are to assume they are men who need to select a gift for their girlfriends. Tell the men that they are to assume they are women who need to select a gift for their boyfriends. Give each group a few minutes to come up with the gift ideas, then discuss their selections. It is amazing to see the differences across genders. In one instance, the women, acting as men, said they would give their girlfriends a $300 handbag by Kate Spade, a designer of whom the guys had never even heard. The men, acting as women, said they would give their boyfriends Sega DreamCast, something the women said they would never do because it would cause the guys to spend too much time in their rooms. This exercise is great for revealing how little insight the genders have into one another and typically leads to a very lively discussion of differing needs and expectations! 4. “Time to Decide” Exercise Tell students to assume that they have graduated, have accepted a job with a company in another state, and now must choose a place to live. They know what they are looking for, but because of a tight rental market, an extensive search produced only three vacancies, described below (as examples): VACANCIES Apartment A: Autumn Chase Apartment B: Cedar Run Two bedrooms Two bedrooms Living room, kitchen/dining room combination Living room, kitchen, separate dining room No microwave Microwave in kitchen 1 bath 1 bath Blue color scheme Lime green color scheme Outdoor pool, plenty of laundry facilities Indoor and outdoor pools, plenty of laundry facilities Upstairs unit (senior-citizen couple lives downstairs) Upstairs unit (manager lives downstairs) Rent $595/month Rent $500/month 5 minutes from work 15 minutes from work Lots of single neighbors Few single neighbors Grocery store 2 blocks away; other shopping 10 minutes away Grocery store, other shopping 15 minutes away Fishing pond with ducks on beautifully landscaped property Married coworker lives in complex Covered parking Sliding glass doors to patio off living room Apartment C: Meadow View Two bedrooms Living room, kitchen, separate dining room 1 ½ baths Microwave in kitchen Beige color scheme No pool, limited laundry facilities Townhouse-style layout Rent $440/month 22 minutes from work Few single neighbors, college students Shops, theater around corner, grocery store 12 minutes away Nice view from upstairs Close to synagogue/church of your denomination Record on the chalkboard the names of students who selected A vs. B vs. C and discuss the reasons for their choices and the processes they used to arrive at them. After a thorough discussion, tell students to pair up with another individual who chose a different apartment. They now must pick a place they will both call home. Once they have made their selections, discuss their choices, the reasons for them, and the underlying dyadic decision-making processes. Pay particular attention to the methods they used to reconcile their differences. Ideal Apartment Two bedrooms Living room, kitchen, separate dining room (you often entertain) 1 ½ baths Microwave in kitchen Beige color scheme Pool and laundry facilities Townhouse-style layout (bedrooms upstairs, living area downstairs) Rent of no more than $550/month (preferably less, given your financial condition) Within 15 minutes from work Lots of single neighbors, college students Close to grocery stores and other shopping CLASSROOM GROUP ACTIVITY Social Class Analysis: 20 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to use the concepts related to social class in a brief classroom exercise. B. What the instructor will do 1. The instructor will divide people into small groups, assign them a social class and a brand for consideration, and be available to coach and help the groups as needed. C. What the participants will do 1. The participants will work in small groups to brainstorm ideas for applying concepts from the chapter to specific brands. After a period of small-group discussion, they will make reports to the large group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Assign social classes and brands to groups. 1. Each group should be assigned a social class (upper, middle, lower) on which to focus its discussion. 2. Assign each group a brand to be targeted toward the social class. a) Consider using local brands, including both products and services. b) Consider using brands that are not the leaders in their categories (i.e., not Coca-Cola or McDonald’s). c) Consider bringing samples of the brands to the class for students to study and review in their groups (e.g., a box of crackers, a candy bar, a cola can). C. Specific actions for groups 1. The groups are responsible for analyzing the social class they have been assigned. Then they are to consider how the brand they have been assigned can be targeted to the social class they have been assigned. a) What are the basic characteristics of the (upper, middle, lower) class? b) How might the product you have been assigned be targeted toward the class you are considering? c) How would this group’s consumption of this product be different from that of other social classes? 2. Large-group discussions a) First have groups present their ideas about the first question, then proceed to discuss each of the subsequent questions. b) If there are many groups, share the discussion among all groups, though not all groups may answer all of the questions. III. Debrief and Unveil Concepts. A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise d) What will be different when they do this for their own brand B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The role of social class in society and in the consumer experience b) The organization’s responsibility to consider the role of social class with respect to its offering 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships among their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Francine Kopun, “IKEA Sets Up Playpen for Men,” Star (Toronto, Canada), September 23, 2011, www.thestar.com; Kwanchai Rungfapaisarn, “IKEA Launches 2012 Catalogue Ahead of First Store,” The Nation, October 1, 2011, www.nationmultimedia.com; “IKEA Sales Up as Shoppers’ Time in Store Doubles,” Express and Star (UK), October 16, 2011, www.expressandstar.com; “The Swedish Revolution,” Bangkok Post, September 19, 2011, www.bangkokpost.com; “IKEA Has Launched the First Ever Personalised 3D Showroom on YouTube,” Social Media Today, August 25, 2011, www.socialmediatoday.com; Natalie Zmuda, “With Home Sales Down, Focus Turns to Upkeep,” Advertising Age, July 25, 2011, p.11; Nick Pisa, “‘We Are Open to All Families,’” Daily Mail (UK), March 18, 2011, www.dailymail.co.uk; and “The Secret of IKEA’s Success,” Economist, February 26, 2011, p. 68.Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211

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