CH-12 Income, Social Class, And Family Structure – Consumer Behaviour: Buying, Having, Being : Book Guide

Chapter 12 Income, Social Class, And Family Structure CHAPTER OBJECTIVES When students finish this chapter they should: •Understand that income patterns and social class influence how we spend our money. •Understand that we group consumers into social classes that say a lot about where they stand in society. •Understand that class structures differ across the world. •Understand that individuals’ desire to make a statement about their social class, or the class to which they aspire to belong, influences the products they like and dislike. •Understand that there are a variety of ways to assess and measure social class. •Understand that household structure, family age, and family life cycle are factors that can influence consumption patterns. CHAPTER SUMMARY •The field of behavioural economics studies how consumers decide what to do with their money. Consumer confidence—the state of mind consumers have about their own personal situations, as well as their feelings about their overall economic prospects—helps to determine whether they will purchase goods and services, take on debt, or save their money. •A consumer’s social class refers to his or her standing in society. Factors including education, occupation, and income determine the class to which we belong. •Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources. This social stratification creates a status hierarchy in which some goods are preferred over others. •Although income is an important indicator of social class, the relationship is far from perfect. Factors such as place of residence, cultural interests, and worldview also determine social class. •As income distributions change around the world, it is getting more difficult to distinguish among members of social classes. Many products succeed because they appeal to a newly emerging group marketers call the mass class—people with incomes high enough to purchase luxury items, at least on a small scale. •Conspicuous consumption, where a person flaunts his or her status by deliberately using up valuable resources, is one way to “buy up” to a higher social class. Nouveaux riches, whose relatively recent acquisition of income rather than ancestry or breeding accounts for their enhanced social mobility, are the most likely to use this approach. •We use status symbols (usually scarce goods or services) to communicate our standing to others. Parody display occurs when we seek status by deliberately avoiding or mocking fashionable products. •Household and family structure are important demographic dimensions, and our traditional notions about families are often outdated. Some of the most important demographics for marketers to consider relate to family structure. •A household is an occupied housing unit. The number and the type of Canadian households are changing in many ways, including delays in getting married and having children, and differences in the composition of family households, which increasingly are headed by a single parent. New perspectives on the family life cycle, which focus on how people’s needs change as they move through different stages in their lives, are forcing marketers to consider more seriously consumer segments such as homosexual, divorced, and childless couples when they develop targeting strategies. LECTURE/DISCUSSION IDEAS XIII. IT’S NOT JUST MONEY – How consumers allocate money; societal positions influence how people consume A. Income Patterns – Products are valued as status symbols; the average Canadian standard of living continues to improve; working women; education B. Women’s Work – Working women contribute to increases in family income C. Yes, It Pays to Go to School – University graduates have higher income levels D. To Spend or Not to Spend: That is the Question – Consumer demand depends on both ability and willingness to buy Class Interaction Opportunity: Can you think of some item that you have the ability to buy but you don't intend to buy? Why won't you buy it? Can you think of some item you would be willing to buy but you just don't have the means to buy it? What do you think the final outcome will be? o Discretionary income – Money available for non-necessary items 1. Individual attitudes towards money – Tightwads outnumber spendthrifts; consumers are anxious to hold on to their money; reallocate their priorities o Money has meanings – Equated with success or failure, social acceptability, security, love, freedom, sex appeal Class Interaction Opportunity: How do you "feel" about money? What does it represent to you? Would you classify yourself as a saver or a spender? Do you think other people would agree with this?  Emotions that have nothing to do with the transaction at hand can influence the price people are willing to pay. Consumers open their wallets despite downbeat news.i E. Consumer Confidence – Reflects optimism and pessimism about the future o Behavioural economics – Concerned with the ‘human’ side of decisions o The savings rate – Affected by consumer’s optimism and pessimism about the economy Class Interaction Opportunity: What are your greatest fears with respect to money? Explain. What do you expect of a spouse with respect to money? Are you stingy or sharing with respect to money? Where do you think this feeling comes from? II. SOCIAL CLASS – Variables include: family income, background, and occupation A. Picking a Pecking Order – In most animal species the most assertive or aggressive animals exert control over the others; the ‘haves’ or ‘have-nots’ o Social class affects taste and lifestyles – People in each group tend to socialize with each other, share many ideas and values, and have similar education o Social stratification – Refers to the artificial divisions in society (e.g., ‘those who have, get!) 1. Achieved versus ascribed status – Status is either earned or inherited o Status hierarchy: Some are better off than others (more authority and power, more respect or simply better liked) Class Interaction Opportunity: Do you think that those who achieve should have authority, power, money, and respect? How are authority, power, money, and respect shown in advertisements? B. Social Mobility – Movement from one class to another o Direction of movement – Type of mobility •Horizontal: nurse becomes an elemental school teacher •Downward: farmers and displaced workers end up on welfare or homeless  An ethnographic study gives a poignant account of how homeless women adapt to life in a shelter.ii •Upward: child of a blue collar works becomes physician or professor Class Interaction Opportunity: Ask students to identify television shows that depict social class issues and topics. 1. Class structure in Canada – Proposed by Bernard Blishen; based on occupation 2. Class structure around the world – Markers of success o China: Cuban Cohiba cigars, Nike shoes o Japan: wear designer labels o Middle East: few Arab women work; Western luxury brands o The United Kingdom: birth, education, speech patterns, polo, House of Lords o India: high end brands prized 3. Blurring social class lines – Increasingly difficult to link brands with social class; global income distribution resulting in ‘luxuries’ for the masses (expensive clothes, Kraft Dinner for supper); the ‘mass class’ C. Components of Social Class – Occupation, income, and education 1. Occupational prestige •High prestige: judge, CEO, physician, professor •Low prestige: shoe shiner, ditch digger, garbage collector •Indicators: leisure time use, allocation of family resources, political orientation Class Interaction Opportunity: Which do you think is more important—occupation or income? Give examples of prestigious occupations that do not have corresponding wealth and high-paying jobs that do not have much prestige. 2. Income – Those in the top 20% control 40% of all the net worth 3. How income relates to social class •More income doesn’t necessarily result in increased status or changed consumption patterns •Income predicts purchase of expensive products without status (e.g., major appliance) •Social class can predict the purchase of low to moderate priced symbolic products (e.g., liquor, cosmetics) •Both social class and income are needed to predict purchase of expensive symbolic products (e.g., cars, homes) Class Interaction Opportunity: What are some products (brands) that typical college or university students buy which tend to indicate their social class? How are these products shown in advertisements to this segment? III. HOW SOCIAL CLASS AFFECTS PURCHASE DECISIONS – Products and stores are perceived to belong to certain social classes A. Class Differences in Worldview o Working classes concerned with immediate needs are more dependent on relatives for emotional support, are family-oriented, the appearance of home is a priority Higher classes tend to focus on more long-term goals: seem to be stressed or unhappy; may not consider themselves rich; old money vs. new money o Strategic Business Insights (, divides consumers into three groups on the basis of their attitudes toward luxury: •Luxury is functional (they use money to buy things that will last and have enduring value). •Luxury is a reward (they use money to buy things that say “I made it!”). •Luxury is an indulgence (they use money to buy lavish things) B. “What Do You Use That Fork For?” Taste Cultures, Codes, and Cultural Capital – Subtle distinctions in consumption choices o Taste culture – Aesthetic and intellectual preferences •Lower-status home: religious objects, artificial flowers, still-life portraits •Higher-status home: abstract paintings, sculptures, and modern furniture o Codes and social class – How meanings are expressed and interpreted o Cultural capital – Knowledge of ‘refined’ behaviour Class Interaction Opportunity: Illustrate taste culture with ads from magazines. How are the magazines matched to market segments? Class Interaction Opportunity: What are some physical cues that you can observe to determine whether a person is in the upper, middle, or lower socio-economic class? Do you think you can easily be misled?  Social class codes are often used to classify women by their appearance. A lower social class code may contain such elements as flashy dress, long nails, and so on. The French sociologist Pierre Bourdieu has correlated many attributes with social class (e.g., he claims that waist measurements go up as one goes down the class ladder). Students will enjoy discussing the accuracy and fairness of such characterizations.iii  South Korea is Asia’s third largest car market, but there has always been unease about buying foreign cars – until now. Foreign cars still make up less than 2% of the market, but they are almost exclusively limited to the luxury end. Driving a BMW, for example, has become a symbol of success.iv  A study by US Trust ranked the concerns wealthiest parents have about how their children were affected by growing up rich. For example, 61% were concerned that they would place too much emphasis on material things; 47% were concerned that they would have their initiative ruined by affluence. Eighty percent hoped their children would find satisfying careers; 52% thought they should feel an obligation to be charitable.v  “New old money” has emerged in Asia, and Volkswagen is betting on the second generation middle-class who are less status-conscious than their parents. Black and white print ads for their Phaeton sedan read, “It’s like saying you made it, but not in a permed hair, gold bracelet, and jade ring kind of way.vi Class Interaction Opportunity: How do spending patterns differ between the "old rich" and the "new rich"? IV. ONLINE SOCIAL CAPITAL – Acquired as the actions and interactions are valued by the online community (Foursquare) •Online gated communities – Selective access allowed, high social capital for those who are included V. STATUS SYMBOLS – Equate themselves with others, i.e., ‘keeping us with the Jones’ or ‘s/he who dies with the most toys wins’ •Conspicuous consumption – Thorstein Veblen: visible evidence of ability to afford luxury (e.g., banquets for pets, money folded into guests’ dinner napkins, etc.); most evident among the leisure class; wives are an economic resource; consumers engage with products as status markers – even very subtle ones (brand prominence) •Imitations of status symbols prompted three coping strategies from luxury fashion brand consumers in India and Thailand: o Flights – stop using the brand to avoid association with lesser-status person who buys fake brands. o Reclamation – emphasize long relationship with the brand and express concern for the brand’s image. o Abranding – they disguise their luxury items in the belief that high-status people do not need to display expensive logos, so those who do betray lower status. Class Interaction Opportunity: What are some current examples of conspicuous consumption among your friends? For your parents?  Although there are low sales density and high import duties, makers of designer clothing and jewelry are pouring into China. Brands, such as Zegna, Louis Vuitton, Bulgari, and Coach, appeal to a market with fast-rising incomes and an unapologetic taste for conspicuous consumption. A 2004 report by Morgan Stanley estimates that China’s luxury segment could eventually number 100 million.vii o The modern potlatch – A feast where the host gives elaborate gifts to guests and guests are expected to reciprocate, forcing poor guests into bankruptcy. Today’s elaborate wedding ceremony and reception parallels this practice. Class Interaction Opportunity: What are some obvious expenses that could be eliminated from the average wedding? Why won't people eliminate these? o Parody display – Avoid status symbols (e.g., pipes and support beams were deliberately exposed in home construction; ripped blue jeans; Jeeps owned by the rich); status is shown through adoption of product symbolism Class Interaction Opportunity: What are some of the new status symbols that are being created by mocking traditional status symbols? VI. HOW DO WE MEASURE SOCIAL CLASS? – Difficult to do A. Problems with Measures of Social Class – Outdated measures o Changes in family structure – Two-income families, singles, single parents o Anonymity – People won’t share pertinent information o Status inconsistency •Person from a low status ethnic background has a high-status job •Person who did not finish high school lives in a fancy part of town •Over privileged consumer (lottery winner) •Under privileged consumer (sacrifice in order to look proper – beautiful home but no furniture) Class Interaction Opportunity: Can you think of someone who “suffers” from status inconsistency? (Hint: Sports and entertainment figures.) B. Problems with Social Class Segmentation: A Summary – Marketers have failed to use social class information effectively because they ignored: •Status inconsistencies •Intergenerational mobility •Subjective social class (the class a consumer identifies with rather than the one he or she belongs to) •Consumers’ aspirations to change their class standing •Social status of working wives VII. FAMILY STRUCTURE – Traditional family structure has declined; many other types of families are growing rapidly  The Smart car moved into the family segment with a four-door model (called the forfour) for funky families who cannot fit the children into the original two-seater.viii  Some hotels, such as the Cambridge Suites in Halifax, Sydney and Mississauga that accommodate business travelers, also accommodate travelling families well. A. Household Structure •Extended family: three generations living together •Nuclear family: mom, dad and kids (only 40% of Canadian families in 2014) Class Interaction Opportunity: Ask students to write down their definition of a family. Compare the answers with the rest of the class. How do their definitions accommodate non-traditional family structures? Why is it important for marketers to know how to define a family? B. Family Age: •Under 24: most never married or in a common-law relationship •34-64: about 75% of Canadians married C. Family Size •Average Canadian family is 3 people •Total fertility rate (number of births per woman aged 15-49 years); about 1.61  Pets are often treated as family members. According to a survey conducted by the Pet Products Manufacturing Association, 41% of dog owners share their bed with their dogs; 15% say they have purchased cologne for them, and 7% have purchased toothpaste for them.ix D. Non-traditional Household and Family Structures •10.3% are lone-parent families in 2014; nearly 20% of those are headed by men •9.2% were common-law families in 2012 1. Who’s living at home? – The ‘sandwich generation’ cares for parents and kids; boomerang kids – children returning home after college or university, divorce, job loss, etc. Class Interaction Opportunity: Do you think the concept of “the sandwich generation” existed before now? When? Explain. Is the phenomenon of “boomerang kids” new? What brought kids back to the nest in previous years? Why is this phenomenon important to marketers? E. The Family Life Cycle - Combines trends in income, family composition and time; significant changes in spending occur as people move through stages o Pivotal events include: •Couples moving in together •Birth of a first child •Departure of the last child •Death of a spouse •Retirement •Divorce 1. Family life cycle effects on buying – Changes in spending patterns •Updating the life cycle approach – must include: age, marital status, presence or absence of children at home, and their ages, the definition of marital status must be relaxed; for example, families with young children are more likely to consume health foods, while expenditures on homes, cars, and other durables are lowest for bachelors and single parents and increase as people go through the full-nest and childless couple stages END-OF-CHAPTER SUPPORT MATERIAL Summary of Special Feature Boxes 1. Marketing Insight I: Attitudes toward Money Consumers react differently to economic conditions, and this box discusses research that identifies eight consumer segments that have different attitudes and behaviours towards spending and saving money. 2. Consumers in Focus I: Aspirational Groups Aspirational groups used to be admired from afar, but this box discusses examples of how people are getting close to those they aspire to. Additionally, it talks about the use of negative reference groups as motivators to avoid some products. 3. CB As I See It Sandra Laporte, HEC Montreal, conducts research into the link between obesity and poverty in society (those with lower incomes have higher rates of obesity), and proposes that there is an important psychological determinant previously overlooked that is influencing the link. She finds that people perceive money and food as closely related, and has found that feeling poor makes people want to eat more (caloric) food because of the value of energy. 4. Consumers in Focus II: Rich Canadians, Old and New This box discusses the state of the ‘Canadian Rich’ including where they hail from (all regions of the country) and whether their wealth is old or new. It is provides some characteristics about rich Canadians based on research that segments millionaires into groups based on their wealth – including what kind of activities they like, their education levels, age, and what they tend to worry about (maintaining their lifestyle; and children squandering their assets). 5. Consumers in Focus III: Luxury for the Masses Working-class Canadian youth are buying products to define who they are – and they have high aspirations. They buy expensive products as a result of high discretionary income, and are greatly influenced by celebrity endorsements. 6. Consumers in Focus IV: Trophy Husbands Trends have changed, and in recent years older women are increasingly dating younger men. This box describes the trend, and provides a first-hand ‘cougar’ experience regarding the appeal of dating ‘boy toys.’ 7. Consumer Insight I: Family Structures Canadian family structures are changing, and same-sex households have continued to increase. Marketers are seizing opportunities to create products for all types of family units, who increasingly represent a lucrative market of child-free couples that tend to be better educated and have professional or managerial occupations. 8. Marketing Insight II: Family Pets Pets are often viewed as members of the family, and this trend is global. This box outlines some of the marketing opportunities created by the inclusion of pets as family members. Review Questions 1. How have women contributed to the overall rise in income in our society? Answer: One reason for this increase in income is that there also has been a larger proportion of people of working age participating in the labour force. Mothers with preschool children are the fastest-growing segment of working people. Furthermore, many of these jobs are in high-paying occupations such as medicine and architecture that used to be dominated by men. Although women are still a minority in most professional occupations, their ranks continue to swell. The steady increase in the numbers of working women is a primary cause of the rapid growth of middle and upper-income families. There are now more than 18 million married couples making over $50,000 a year—but in almost two-thirds of these families, it is the wife’s paycheck that is propelling the couple up the income ladder. 2. Define discretionary income Answer: Discretionary income is the money available to a household over and above that required for a comfortable standard of living. 3. How does consumer confidence influence consumer behaviour? Answer: Consumers’ beliefs about what the future holds is an indicator of consumer confidence that reflects the extent to which people are optimistic or pessimistic about the future health of the economy and how they will fare down the road. These beliefs influence how much money they will pump into the economy when making discretionary purchases. 4. What is a pecking order? Answer: In many animal species, a social organization develops whereby the most assertive or aggressive animals exert control over the others and have the first pick of food, living space, and even mating partners. Chickens, for example, develop a clearly defined dominance–submission hierarchy. Within this hierarchy, each hen has a position in which she is submissive to all of the hens above her and dominates all of the ones below her (hence, the origin of the term pecking order). People are not much different. They also develop a pecking order that ranks them in terms of their relative standing in society. This standing determines their access to such resources as education, housing, and consumer goods. People try to improve their ranking by moving up in the social order whenever possible. This desire to improve one’s lot in life, and often to let others know that one has done so, is at the core of many marketing strategies. 5. What is social class? Is it different from income and if so how? Answer: We use the term social class more generally to describe the overall rank of people in a society. People who are grouped within the same social class are approximately equal in terms of their social standing in the community. They work in roughly similar occupations, and they tend to have similar lifestyles by virtue of their income levels and common tastes. These people tend to socialize with one another and share many ideas and values regarding the way life should be lived. Indeed, “birds of a feather do flock together.” 6. What is the difference between achieved and ascribed status? Answer: Think back to groups to which you’ve belonged. You’ll probably agree that in many instances some members seem to get more than their fair share of goodies, whereas other individuals are not so lucky. Some of these resources may have gone to people who earned them through hard work or diligent study. This allocation is due to achieved status. The person may have obtained other rewards because she was lucky enough to be born with “a silver spoon in her mouth.” Such good fortune reflects ascribed status. 7. Describe what is meant by the term “mass class” and explain what is causing this phenomenon. Answer: Mass class refers to the hundreds of millions of global consumers who now enjoy a level of purchasing power that’s sufficient to let them afford high-quality products—except for big-ticket items like college educations, housing, or luxury cars. 8. Define social mobility and what different forms can it take? Answer: In some societies, such as India, one’s social class is very difficult to change, but America is reputed to be a country in which “any man (or woman?) can grow up to be president.” Social mobility refers to the “passage of individuals from one social class to another.” 9. What one variable is the best indicator of social class? What are some other important indicators? Answer: When we think about a person’s social class, there are a number of pieces of information we may consider. Two major ones are occupation and income. A third important factor is educational attainment that is strongly related to income and occupation. 10. Why does earning more money often not result in a corresponding change in social class? Answer: One problem is that even if a family increases household income by adding wage earners, each additional job is likely to be of lower status. A homemaker who gets a part-time job is not as likely to get one that is of equal or greater status than the primary wage earner’s full-time job. In addition, the extra money earned is often not pooled toward the common good of the family. Instead, the individual uses it for his own personal spending. More money does not then result in increased status or changes in consumption patterns because it tends to be devoted to buying more of the usual rather than upgrading to higher-status products. 11. Define status crystallization and give an example. Answer: Social scientists developed the concept of status crystallization to assess the impact of inconsistency on the self and social behaviour. The logic behind this idea is that because the rewards from each part of such an “unbalanced” person’s life would be variable and unpredictable, stress would result. People who exhibit such inconsistencies tend to be more receptive to social change than are those whose identities are more firmly rooted. 12. How does the worldview of blue-collar and white-collar consumers tend to differ? Answer: Although they would like to have more in the way of material goods, working-class people do not necessarily envy those who rank above them in social standing. They may not view the maintenance of a high-status lifestyle as worth the effort. As one blue-collar consumer commented, “Life is very hectic for those people. There are more breakdowns and alcoholism. It must be very hard to sustain the status, the clothes, and the parties that are expected. I don’t think I’d want to take their place.” 13. What is a taste culture? Answer: A taste culture differentiates people in terms of their aesthetic and intellectual preferences. This concept helps to illuminate the important yet sometimes subtle distinctions in consumption choices among the social classes. 14. What is cultural capital, and why is an etiquette class a way to accumulate it? Answer: This refers to a set of distinctive and socially rare tastes and practices—knowledge of “refined” behaviour that admits a person into the realm of the upper class. The elite in a society collect a set of skills that enable them to hold positions of power and authority, and they pass these on to their children (such as etiquette lessons and debutante balls). These resources gain in value because access to them is restricted. That’s part of the reason why people compete so fiercely for admission to elite colleges. As much as we hate to admit it, the rich are different. 15. How would you differentiate between consumers who are “old money” versus “nouveau riche consumers?” Answer: We call consumers who have achieved extreme wealth and have relatively recently become members of upper social classes the nouveau riches, a term that many people use in a derogatory manner to describe newcomers to the world of wealth. 16. What is conspicuous consumption? Give a current example. Answer: Conspicuous consumption refers to people’s desire to provide prominent visible evidence of their ability to afford luxury goods. 17. What is a current example of parody display? Answer: As the competition to accumulate status symbols escalates, sometimes the best tactic is to switch gears and go in reverse. One way to do this is to deliberately avoid status symbols—that is, to seek status by mocking it. Social scientists call this sophisticated form of conspicuous consumption parody display. Hence, the popularity of old ripped blue jeans, and “utility” vehicles such as Jeeps among the upper classes. 18. What are some of the problems associated with efforts to measure social class? Answer: One reason is that most measures of social class were designed to accommodate the traditional nuclear family, with a male wage earner in the middle of his career and a female full-time homemaker. Such measures have trouble accounting for two-income families, young singles living alone, or households headed by women, who are so prevalent in today’s society. Another problem with measuring social class is the increasing anonymity of our society. Earlier studies relied on the reputational method, in which extensive interviewing was done within a community to determine the reputations and backgrounds of individuals. This information, coupled with the tracing of interaction patterns among people, provided a very comprehensive view of social standing within a community. However, this approach is virtually impossible to implement in most communities today. One compromise is to interview individuals to obtain demographic data and to combine these data with the subjective impressions of the interviewer regarding the person’s possessions and standard of living. 19. What is a nuclear family, and how is it different from an extended family? Answer: The extended family was once the most common family unit. It consists of three generations living together and it often includes grandparents, aunts, uncles, and cousins. As evidenced by the Cleavers of Leave It to Beaver and other TV families of the 1950s, the nuclear family—a mother and a father and one or more children (perhaps with a sheepdog thrown in for good measure)—became the model family unit over time. 20. How is a nation’s total fertility rate (TFR) calculated? What TFR is required to ensure that population size does not decline? Answer: The fertility rate is determined by the number of births per year, per 1,000 women of childbearing age. A TFR of 2.1 is needed for population levels to remain constant. 21. What are boomerang kids? Answer: Adult children who move back in with mom and dad after having moved out on their own. 22. What is the FLC, and why is it important to marketers? Answer: Recognizing that family needs and expenditures change over time, marketers apply the family life cycle (FLC) concept to segment households. The FLC combines trends in income and family composition with the changes in demands placed upon income. As we age, our preferences and needs for products and activities tend to change. CONSUMER BEHAVIOUR CHALLENGE Discussion Questions 1. Sears and The Bay have made concerted efforts in recent years to upgrade their images and appeal to higher-class consumers. How successful have these efforts been? Do you believe this strategy is wise? Answer: Because consumers have always thought of stores like Sears and The Bay as low or value-price stores, it is likely that these stores will have difficulty changing their images among the general public. Attempting to change a store's image when consumers have a strong perception of the store's image, and one that is largely inconsistent with the proposed image, can be a very risky strategy. Retailers run the risk of alienating a significant group of loyal consumers with these attempts. Nevertheless, The Bay seems to be particularly successful so far and has incorporated some very high-end brands into some of their flagship stores. 2. What consumption differences might you expect to observe between a family characterized as underprivileged versus one whose income is average for its social class? Answer: An example of the consumption differences one might expect to observe between a family characterized as underprivileged versus one whose income is average for its social class include the brands of clothing worn, the types of cars driven, types of vacations (flying versus driving, hotels versus camping), and vacation destinations (local state park versus Hawaii). Students likely will identify a number of factors in their own lives that distinguish them as members of the “middle” class. 3. How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing? Answer: As discussed in the text, people are assigned to social classes by virtue of their social standing in the community. People are grouped according to their occupation, lifestyle, ideas and values, and income. Consumption cues that may be used to determine people's social standing include their cars, homes, clothing, speech, and types of people with whom they socialize. Social class assignments are often based on observable consumption cues like clothing, speech, and cars. These cues can indicate economic status and lifestyle preferences. However, assigning social class can be complex and imprecise, as it relies on visible indicators that may not fully capture an individual’s actual socioeconomic position or personal values. 4. In today's economy it has become somewhat vulgar to flaunt your money. Do you think status symbols like luxury products are passé? Why or why not? Answer: The discussion should focus on the reasons that students give for their answers. Students might explore the difference between traditional status symbols and status symbols based on current cultural values. For example, environmentally friendly products could replace some luxury items as the status symbols of today. Status symbols like luxury products may seem passé to some, as flaunting wealth can be perceived as inauthentic or out of touch. However, luxury items still hold value as symbols of success and exclusivity. Their appeal persists, but the way they are used to signify status may be evolving towards subtler forms of expression. 5. Thorstein Veblen argued that women were often used as a vehicle to display their husbands’ wealth. Is this argument still valid today? Answer: Students should be expected to differ in their level of agreement with Thorstein Veblen's notion that women often are used as a vehicle to display their husbands' wealth. They should be encouraged to defend and support their views with examples from today's society. Thorstein Veblen's argument about women being used to display their husbands' wealth still holds some validity today, though societal norms have shifted. While traditional displays of wealth might involve luxury items for partners, modern dynamics often emphasize individual success and personal achievements, reducing the direct use of women as symbols of wealth. 6. Given present environmental conditions and dwindling resources, what is the future of “conspicuous waste?” Can the desire to impress others with affluence ever be eliminated? If not, can it take on a less dangerous form? Answer: The goal of this question is to make the student think about current environmental conditions, depleting resources, and how “conspicuous waste” plays a major role in this decay process. The view of conspicuous waste from both consumer and marketer perspectives should be included. Given environmental concerns and resource constraints, conspicuous waste is likely to face growing scrutiny. While the desire to impress others with affluence may never be entirely eliminated, it could shift towards more sustainable or symbolic forms, such as eco-friendly luxury goods or experiences that emphasize ethical consumption over wasteful display. 7. This chapter observes that some marketers are finding "greener pastures" by targeting low-income people. How ethical is it to single out consumers who cannot afford to waste their precious resources on discretionary items? Under what circumstances should we encourage or discourage this segmentation strategy? Answer: Possible ethical issues include: Do people with low incomes need special protection? Does low income equate with low intelligence? Do you take away freedom of choice from people with low incomes? Who should decide how people use their money? Will society have to provide essential items if those with low incomes spend their money on discretionary items? The argument of what discretionary items should not be promoted to low-income people seems to be centering on “sin products” (tobacco, alcohol, etc.). When a special cigarette, a special wine, and a special ale were targeted toward people who live in the inner-city, many groups spoke out saying that it was immoral to use billboards in these neighbourhoods to encourage sales. The companies involved have either dropped the product or changed their promotional strategies, but these same products with different brand names are still appearing on billboards in the inner-city. Some argue that since low-income people have the right to use tobacco products and alcoholic beverages, manufacturers should have the right to communicate about their products to every potential consumer. Targeting low-income consumers for discretionary items raises ethical concerns, as it may exploit their limited resources. This strategy should be discouraged if it promotes unnecessary spending or exacerbates financial strain. However, it can be ethical if it offers genuine value or essential benefits, such as affordable products that enhance quality of life without encouraging wasteful behavior. 8. Status symbols are products we value because they show others how much money or prestige we have, such as Rolex watches or expensive cars. Do you believe that your peer group values status symbols? Why or why not? If yes, what products do you think are status symbols for consumers your age? Answer: There will be two groups of students here; those who think their peer group values status symbols and those who think their peer group does not. For the latter, you might probe individuals in this group by dropping some brands or objects that you think might be valued by them. For those that do feel they and their peers value status symbols, the symbols given may vary quite a bit from the traditional. Although they may give the obvious such as BMW or Rolex, they will likely provide more items that their college-student peers are actually using and wearing. To some extent, cell phones are also used as a status symbol by many young people in trying to appeal to their peers. Of course, whether or not cell phone can be used as a status symbol depends on the type of cell – an old school flip phone or Apple iPhone. Experiential Exercises 9. Using the status index in Figure 12-2 to compute a social class score for people you know, including their parents if possible. Ask several friends (preferably from different places) to compile similar information for people they know. How closely do your answers compare? If you find differences, how can you explain them? Answer: Students should be encouraged to try this exercise with a variety of individuals, not just friends in different majors. It would be interesting to see differences in perceptions of prestige due to gender, age, current occupation, level of education, etc. (Possible Field Project). Comparing social class scores using the status index will reveal variations in perceptions of social class among different individuals. Differences may arise due to subjective interpretations of social indicators like income, education, and occupation. These variations can reflect personal biases, regional differences, or the diverse criteria people use to assess social status. 10. Compile a list of occupations, and ask a sample of students in a variety of majors (both business and nonbusiness) to rank the prestige of these jobs. Can you detect any differences in these rankings as a function of students’ majors? Answer: The students should be encouraged to try this exercise with a variety of individuals, not just students in different majors. It would be interesting to see differences in perceptions of prestige due to gender, age, current occupation, level of education, etc. (Possible Field Project Idea) Ranking the prestige of various occupations among students from different majors may reveal differences based on career aspirations and field-specific values. Business students might rank high-status corporate roles higher, while non-business students could prioritize jobs aligned with their own fields or societal impact. Such differences reflect how academic and career goals influence perceptions of job prestige. 11. Compile a collection of ads that depict consumers of different social classes. What generalizations can you make about the reality of these ads and about the media in which they appear? Answer: The instructor might review this exercise after students have completed it and attempt to identify the aspects of the advertisements that students used to classify consumers as members of different social classes. A discussion of how our attitudes and perceptions are influenced by stereotypical beliefs could then be used with the students' own examples as evidence of stereotypical beliefs and their potentially negative consequences. (Possible Field Project). Ads depicting different social classes often reflect stereotypical images: luxury brands target affluent consumers with high-status settings, while budget brands may use more relatable or practical scenarios. These portrayals can reinforce class distinctions and are often tailored to the media's target demographic, reflecting broader societal attitudes and market segmentation strategies. CASE STUDY TEACHING NOTES 1. Why is counterfeiting such a serious problem for luxury goods manufacturers and retailers? Is this something they should be concerned about? Why? Answer: As noted in Chapter 12, a person’s social class has a profound impact on what he or she does with money and on how consumption choices reflect the person’s place in society. Products are frequently bought and displayed as markers of social class and valued as status symbols. Importantly, consumer demand for goods and services depend on the ability to buy and the willingness to buy. As a result, counterfeiting has become a serious problem for luxury goods manufacturers and retailers because consumers are willing to purchase these fake products instead of the actual luxury goods. As a result luxury good manufacturers and retailers are losing sales and profits. Further, counterfeits undermine the status benefits that luxury goods provide. 2. How do counterfeit goods influence the status benefits that luxury goods provide? How does the consumer react to this characteristic of the marketplace? Answer: Because counterfeit goods allow consumers with moderate to low incomes (who are obsessed with luxury brand names such as Canada Goose) to purchase convincing counterfeit products at a lower price, counterfeiters undermine the status symbol of luxury goods. Consumers’ social class is an important determinant not just of how much money is spent but also how it is spent. Thus, consumers who have more authority and wealth in the status hierarchy are less likely to purchase luxury products such as Canada Goose that are perceived to be purchased by the mass class (as counterfeits). Although mass-consumed products still offer some degree of panache, they are not clear status symbols of affluent, upscale consumers. Nouveaux riche consumers who suffer from status anxiety may stop using the brand or go out of their way to emphasize their long relationship with the brand (while expressing concern that its image is being tarnished by counterfeits). In contrast, the old money who are secure in their status may be unaffected by counterfeit products and disguise their luxury items in the belief that the truly high status people do not need to display expensive logos – while those who do betray their lower social status roots. 3. What is your reaction to Canada Goose and the efforts they are making with respect to counterfeit goods? Are they doing enough? Answer: Although Canada Goose’s response to counterfeit goods is probably effective for the old money consumer segment, a stronger response may be needed for the nouveaux riche consumer segment. As noted in Question 2, the nouveaux riche may stop using the brand or express concern that its image will be tarnished, unless Canada Goose uses prominent, visible evidence to distinguish its jackets from those of counterfeiters. An authenticating hologram stitched into the interior of its branded products, that can be replicated by counterfeit products may not provide the level of authentic conspicuous consumption desired by the nouveaux riche. In contrast, the old money segment (who are secure in their status and disguise their luxury items) are likely to prefer the subtle status marker of the authenticating hologram. 4. What is your recommendation to Janet? How can she meet the ever evolving challenge of counterfeit goods? Answer: In meeting the ever-evolving challenge of counterfeit goods, Janet must continue to define unique design elements in her branded goods. Effectively staying one step ahead of counterfeiters – i.e., by ensuring that the authentic brand is designed such that copying the design is difficult and expensive – is going to be critical moving forward. Identifiable brand markers, perhaps facilitated by technology, will ensure that the brand stays coherent and valuable. Importantly, Janet needs to be mindful of the different types of consumers (e.g., nouveaux riche and old money) that are likely to have different feelings about counterfeits. FIELD PROJECT IDEAS Individual Assignments 1. Have students compile a list of ten colleges and universities (or academic majors) and ask a few individuals to rank each according to its prestige. Have them comment on the results. Are there any marketing implications to the results? Answer: Ranking College Prestige: Compile a list of colleges and ask individuals to rank them by prestige. Analyze any differences in rankings and discuss marketing implications, such as how perceived prestige influences college choice and brand positioning. 2. Ask students to bring in an ad in which the brand being marketed was formerly a status symbol (e.g., Cadillac, Parker Pen, etc.). Have students discuss whether the ad still attempts to create that perception. What new product, if any, has replaced the featured product as a status symbol? Answer: Status Symbol Ads: Find an ad for a brand that was once a status symbol. Discuss if the ad still creates that perception or if the status symbol has shifted to a new product. Explore how brand perception evolves over time. 3. Have students interview small business owners, large business owners, or a couple of both for their opinions on the state of the economy. How do they think an increase in HST, GST and/or provincial taxes, or some currently proposed federal regulation or mandate) would affect them? Have students find out which major signals the owners study and watch before making their business forecasts. Answer: Students should explore how small and large business owners perceive economic conditions and proposed changes like tax increases or new regulations. By interviewing them, students can learn how these factors might impact business operations and the indicators business owners rely on for forecasting, such as economic trends, consumer behavior, or financial reports. 4. Encourage students to read Michael Adam’s book Better Happy Than Rich? Canadians, Money and the Meaning of Life and tell the class about their reactions to it. Answer: After reading Michael Adam's *Better Happy Than Rich?*, students should discuss their personal reactions to the book's exploration of the relationship between money, happiness, and life satisfaction. They might reflect on how the book challenges or reinforces their views on financial success and well-being. 5. Have students visit with a representative of a local consumer protection agency (e.g., Better Business Bureau, the Consumers’ Association of Canada, an investigative reporter from the newspaper or television station, etc.) and ask their opinion on how lower-class and middle-class consumers differ in terms of the type of consumer protection they need. Answer: When speaking with a consumer protection agency representative, students should investigate how consumer protection needs differ between lower-class and middle-class individuals. This could reveal differences in the types of protections required, such as financial literacy resources for lower-income consumers versus higher-value protection services for middle-class consumers. 6. Have students interview one or more salesperson(s) from one of the following product categories - new or used cars, electronic equipment, clothing, insurance, or real estate. Ask students to determine the social classes or status of their customers. Do the students recommend that the sales approach will vary depending on the customer's social class? Answer: By interviewing salespeople across different product categories, students can assess whether the sales approach should be adjusted based on a customer's social class or status. They should determine if a tailored approach is needed to address different customer needs and preferences effectively. 7. Have students visit two sections of a community – one where residents are professionals and business people and one where residents are mostly working class. Ask them to note how the homes vary in terms of colour, architecture, and the general appearance of the lawn and landscape. Have them check the paper or call a realtor to find the general value of homes in the area. What types of stores are in the neighbourhood and how are they promoted? Answer: Students should observe differences in housing aesthetics and landscaping between professional and working-class neighborhoods, noting variations in home colors, architecture, and upkeep. They should also compare property values and assess the types and promotion of local stores in each area to understand how these factors reflect the socioeconomic status of the residents. 8. Ask students to bring in a collection of magazines aimed at different social classes. Have students comment on the products advertised, the physical appearance and layout, and the editorial content of the magazines. Answer: By analyzing magazines aimed at different social classes, students should evaluate the products advertised, the design and layout, and the editorial content. This analysis will reveal how magazines target various demographics and reflect social class distinctions through their content and presentation. 9. Have students bring in ads for two different product categories in which the family is targeted. Find another set of ads for two different brands of the same items in which the family is not targeted. Evaluate the ads as to their effectiveness. Answer: Students should compare ads for two different product categories targeting families with ads for the same items that do not target families. They should assess the effectiveness of these ads based on how well they address the needs and preferences of their intended audiences. 10. Have students make a list of ten product/service categories (e.g., window treatments, china, appliances, lawn mower, children's toys, cookware, automobiles, dental care, groceries, vacations, insurance, bedroom furniture, garden supplies). Now ask students to interview two married couples (one in their 20's and one in their 50's or older). Without conferring with each other, have them indicate whether decisions to purchase products in each category are likely to be made primarily by the wife, by the husband, or jointly. Answer: After listing ten product or service categories, students should interview two married couples from different age groups to determine who typically makes purchasing decisions. This will help identify if decision-making roles are influenced by age and generational differences. 11. Encourage students to visit three local restaurants that seem to target clientele in three different family life cycle stages (e.g., young singles; young married without children; married with young children; married with youngest child over six; empty nesters with the breadwinner still in the work force; empty nesters out of the work force; sole survivors). How does each establishment attract its target market? Sometimes it is fun to run about a 2 minute video of the clientele entering and leaving each different type of restaurant. Answer: Students can observe how local restaurants target different family life cycle stages by analyzing menu options, ambiance, and promotional strategies. For example, a trendy café might appeal to young singles with a vibrant atmosphere and social media promotions, while a family-friendly diner could attract married couples with young children through kid’s menus and family-oriented discounts. A fine dining restaurant might cater to empty nesters with sophisticated fare and a relaxed environment. 12. Ask students to visit a clothing store, shoe store, furniture store, appliance store, or restaurant and interview the store manager regarding how the family life cycle concept is employed in their inventory selection, pricing, and/or advertising and sales promotion. Answer: When interviewing store managers, students should explore how the family life cycle influences inventory, pricing, and advertising. For instance, a furniture store might offer discounts on items suitable for young families, while a clothing store could market luxury goods to empty nesters. Managers might also tailor their inventory to match the purchasing power and needs of different life stages. 13. Have students interview international students from various countries. Have the international students make a list of ten product/service categories that are considered to be typical family purchases. Have them indicate whether decisions to purchase products in each category are likely to be made primarily by the wife, by the husband, or jointly. Answer: International students can list ten typical family purchases and note who primarily makes the purchasing decisions. For example, they might identify groceries, home appliances, and vacations as common categories, with decisions being made by the wife, husband, or both, depending on cultural norms and family dynamics. Team Assignments 14. Bring to class copies of the types of magazines described in the chapter that appeal to various social classes. Pass the magazines around and have students look through them. Ask the class to discuss the differences and similarities that they noted. Answer: Have students examine magazines targeting different social classes to identify varying themes, advertising styles, and content. Discuss how these magazines cater to distinct socio-economic groups, highlighting differences in luxury versus practicality and aspirational versus everyday content. 15. Prepare a list of 15 occupations and distribute copies to the class. Ask students to rank the occupations according to prestige. Give the list to students and ask them to calculate averages for each occupation. Discuss the results with the class. Answer: Distribute a list of 15 occupations and have students rank them by prestige. Calculate the average prestige score for each occupation and discuss how perceptions of prestige vary based on factors such as education, income, and social impact. 16. Have students bring to class four or five ads in which teenage girls or boys are targeted. How are these appeals similar and/or different from appeals to women and men in their twenties? You might bring in a magazine that appeals to them. Does the class think the teenage ads were designed for older children or young adults? Have them speculate. Answer: Students can compare ads targeting teenage girls or boys with those aimed at adults in their twenties. Analyze differences in style, messaging, and product focus, and debate whether the teenage ads are geared towards older teens or young adults based on their content and presentation. Individual or Team Assignments 17. Ask students (or a team) to find at least two manufacturer's ads for the same generic product (such as clothing, food product, personal care product, etc.) that they think are aimed at different social classes. Have them explain how they differ. Answer: Students should find two ads for the same product aimed at different social classes, such as luxury versus budget versions of clothing. They should compare elements like imagery, language, and pricing strategies, explaining how these reflect the target social classes' preferences and values. 18. Ask a team of students (or individuals) to compile a collection of ads that depict consumers of different social classes. Have them generalize about the reality of the stories told in these ads. Do the ads appear to be in the right media? Answer: Teams can gather ads depicting various social classes and evaluate the authenticity of the portrayed lifestyles. Discuss whether the ads are appropriately placed in their media channels and how effectively they target their intended audience. 19. Ask a team to classify the major retail stores (department and specialty stores) in your community according to their estimation of the social class of their target market. Have them explain how the marketing strategy is different for each of the stores profiled. Answer: Have teams categorize local retail stores by the social class they target. Analyze the differences in marketing strategies, such as store ambiance, product range, and pricing, to match the target market’s socio-economic status. 20. Have students bring to class some woman's magazine, such as Chatelaine, Elm Street, Canadian Living, etc. Discuss how advertisements aimed at women have changed over the past 20 years. (Perhaps you could photocopy older ads from magazines in the public library). Show how advertisers have adapted their copy and art work to account for the changing roles of women. Answer: Compare women’s magazine ads from the past 20 years, noting changes in themes and representations. Discuss how advertisers have adjusted their messaging and visuals to reflect evolving roles and expectations for women. 21. You or one or more of your students should select a product category, such as a car, tie, jewelry, restaurant, shoes, or apartment. Using the life-cycle stages given in the chapter, ask the class to explain the variables that will affect a purchase decision by consumers in each stage of the cycle. Answer: Select a product category and examine how purchase decisions vary across different life-cycle stages. Consider factors such as family size, income, and lifestyle changes that influence consumer choices at each stage. 22. In segmenting the market for customer telecommunication services (e.g., CompuServ, Modems, Faxes, caller ID, call return, call blocker, three-way calling, speed calling, call forwarding, and call waiting), what stage of the family life cycle, gender, age, education, or some other factor(s) would be more important? What marketing and promotional strategies would you devise to reach the segment(s) you selected? Why? Answer: For telecommunication services, analyze which family life cycle stages, age groups, or educational backgrounds are most relevant. Propose marketing strategies that align with these segments’ needs and preferences, such as targeted promotions or tailored service bundles. eLAB Individual Assignments 1. Go to www.burberry.com. How does this prestige fashion label use social class and status to sell its products? Critique their approach. Does this approach make you want to buy such products? Explain. Answer: Burberry uses exclusivity and high-status imagery to market its products, emphasizing luxury and tradition. Their approach appeals to consumers who seek prestige and social distinction. This strategy can attract customers who value brand status, though it may alienate those who prefer more accessible or practical fashion choices. 2. Go to www.hammacher.com. How does Hammacher Schlemmer use prestige and the desire to be different in its marketing effort? Give illustrations from the company’s website to support your conclusions. Is this a good strategy for the company to follow? Explain. Answer: Hammacher Schlemmer markets its unique, high-end products as exclusive and innovative. Examples like a $10,000 massage chair or a personal submarine highlight its appeal to those seeking distinctiveness. This strategy effectively targets consumers who desire rare, luxury items, reinforcing the brand’s niche appeal. 3. Go to www.burtsbees.com. How does this site use lifestyle marketing to its advantage? What lifestyle would be most associated with the products shown on this site? After reading the history of the founders, how were the founders able to project their own lifestyles into the products produced by the company? How could the company expand its sales into other lifestyle segments? Answer: Burt’s Bees utilizes lifestyle marketing by promoting natural, eco-friendly products associated with a wholesome, sustainable lifestyle. The founders’ commitment to organic and ethical practices reflects in the brand’s messaging. To expand, the company could target other lifestyle segments such as luxury or tech-savvy consumers by introducing premium or innovative product lines. 4. Go to www.cadillac.com. Once the ultimate status symbol, Cadillac’s image began a slow decline around 1980. The brand is now on a major quest to reclaim its title. Although they are seeing some success, they may be hitting certain target markets with some of their products that actually detract from the image they are trying to achieve. Specifically regarding the Escalade line of SUVs, how do you perceive the conflict between Cadillac’s traditional target market, and that of new market segments that are embracing the brand (e.g., hip hop culture)? How should Cadillac address this issue? Design a promotional strategy outline. Answer: Cadillac’s Escalade line, associated with hip-hop culture, contrasts with its traditional luxury image, potentially confusing its target market. Cadillac should create a promotional strategy that balances its classic prestige with modern trends, perhaps through targeted campaigns that highlight both heritage and contemporary appeal. 5. Go to https://www.chapters.indigo.ca/en-ca/. How can a website as large and as broad as this be discussed in terms of the family life cycle? Explain how each aspect of the FLC can or cannot be applied here. Answer: Chapters Indigo’s website caters to various family life cycle stages by offering products that appeal to different age groups and family needs. From children’s books to home decor, the site addresses multiple FLC aspects, though it may need more targeted marketing to fully address specific family stages. eLAB Team Assignments 1. Go to www.miserlymoms.com. Have your group analyze the advantages of this website. What benefits are offered? How would this site get upscale, affluent consumers to use the website? How would the site get poorer, less affluent consumers to use the website? What evidence do you see that the organization is trying for both markets? Explain. How does the site appeal to upscale consumers who have greater amounts of discretionary income? Downscale consumers who have less? Answer: Miserly Moms offers budget-friendly tips and resources for managing expenses, appealing to both affluent and less affluent consumers. To attract upscale users, the site could emphasize exclusive, high-quality savings strategies, while targeting lower-income users with practical, accessible advice. The site’s content should reflect strategies for both markets, such as high-end budget products and basic cost-saving tips. 2. Visit http://www.strategicbusinessinsights.com/vals/presurvey.shtml and complete the VALS survey. Have your group discuss the questions posed to sort you into categories. Do the questions assess important attributes for marketers to understand consumer groups? What other information about lifestyle would you want to know? Develop your own questionnaire. Answer: The VALS survey categorizes consumers based on their values and lifestyles, helping marketers understand different consumer segments. The questions are relevant for assessing motivations and behaviors, though additional questions could explore social influences and media consumption. A tailored questionnaire could include questions about brand loyalty, purchasing triggers, and lifestyle aspirations. PROFESSORS ON THE GO! Chapter Objectives
When students finish this chapter they should understand why: •Income patterns and social class influence how we spend our money Go to www.miserlymoms.com. Have your group analyze the advantages of this website. What benefits are offered? How would this site get upscale, affluent consumers to use the website? How would the site get poorer, less affluent consumers to use the website? What evidence do you see that the organization is trying for both markets? Explain. How does the site appeal to upscale consumers who have greater amounts of discretionary income? Downscale consumers who have less? •We can group consumers into social classes that say a lot about where they stand in society Prepare a list of fifteen occupations and distribute copies to the class. Ask students to rank the occupations according to prestige. Compile the results (either during class or after for the next class period). Discuss the results with the class. Are there consistencies? Why do these form? What implications do these perceptions have on consumer behaviour? Ask students to find at least two manufacturers’ ads for the same type of product (e.g., clothing, food product, personal care product, etc.) that they think are aimed at different social classes. How do these ads differ? Ask students to compile a collection of ads that depict consumers of different social classes. What medium and vehicle is each ad found in? Have students generalize about the reality of the stories told in these ads. Have students interview one or more salespeople from one of the following product categories: new or used cars, stereo equipment, clothing, insurance, or real estate. Ask students to determine the social classes or status of their customers. Do the student recommend that the sales approach will vary depending on the customer’s social class? How can online marketers use social class in marketing efforts? Give examples of good and bad usage. Go online to do this if possible. Have student groups visit two sections of a community—one where residents are professionals and business people and one where residents are mostly working class. Ask them to note how the homes vary in terms of colour, architecture, and the general appearance of the lawn and landscape. Have them check the paper or call a realtor to find the general value of homes in the area. What types of stores are in the neighborhood and how are they promoted? Ask students to make a list of slang terms that are used to disparage social classes. Why are these terms used? How do marketers disparage or make fun of social classes (which they do not target)? What is the best way to treat all classes with ethics and dignity? Have your group designate which social class would most accurately describe each member’s current position. Where do the members expect to be in five years with respect to social class? What differences will occur if the anticipated movement in social class occurs? Discuss the changes in class. •Class structures differ across the world Ask students to compare and contrast the hierarchical class structures presented in the text. Do they have any person experiences with global class structures? •Individuals’ desire to make a statement about their social class, or the class to which they aspire to belong, influences the products they like and dislike Ask a student to bring in an ad in which the brand being marketed was at one time a status symbol, but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste, etc.). Have the student discuss whether the ad still attempts to create that perception. What new product, if any, has replaced the featured product as a status symbol? What status symbols motivate you to purchase? Pick an example product and give an illustration. Have a group of students compile a list of ten colleges and universities. Then have them go out and have other students rank them. Have the students comment on the results. Are there any marketing implications to the results? Go to www.cadillac.com. Once the ultimate status symbol, Cadillac’s image began a slow decline around 1980. The brand is now on a major quest to reclaim its title. Although they are seeing some success, they may be hitting certain target markets with some of their products that actually detract from the image they are trying to achieve. Specifically regarding the Escalade line of SUVs, how do you perceive the conflict between Cadillac’s traditional target market and that of new market segments that are embracing the brand (e.g., hip hop culture)? How should Cadillac address this issue? Design a promotional strategy outline. •There are a variety of ways to assess and measure social class Using the status index, compute a social class score for people you know, including their parents if possible. Ask several friends (preferably from different places) to compile similar information for people they know. How closely do your answers compare? If you find differences, how can you explain them? •Household structure, family age, and lifestyle cycle are factors that can influence consumption patterns Have students go to the library and research advertisements in a women’s magazine (e.g., Good Housekeeping, Ladies’ Home Journal, Family Circle, and Woman’s Day) over the past twenty years. How have advertisers adapted their copy and art work to account for the changing roles of women? Are there things that have not changed? Each student should consider the market for cell phones. In segmenting the market for cell phones and cell phone service, discuss the impact of family life cycle stage, sex, age, education, or important factors? What marketing and promotional strategies would you devise to reach the segment(s) you selected? Why? Ask a student to visit a store (e.g., clothing store, shoe store, furniture store, appliance store, restaurant, etc.) and interview the store manager regarding how the family life cycle concept is employed in their inventory selection, pricing, and/or advertising and sales promotion. Groups should identify three local restaurants that seem to target clientele in three different family life cycle stages (e.g., young singles; young married without children; married with young children; married with youngest child older than six; empty nesters with the breadwinner still in the work force; empty nesters out of the work force; sole survivors). Each restaurant should be visited by a team member. How does each establishment attract its target market? Sometimes it is fun to run a 2-minute video of the clientele entering and leaving each different type of restaurant. ENDNOTES i Sharon Begley, “How Do You Keep the Public Shopping? Just Make People Sad, The Wall Street Journal Europe, March 19-21, 2004:A7. ii Ronald Paul Hill, "Homeless Women, Special Possession and the Meaning of 'Home,' An Ethnographic Case Study," Journal of Consumer Research 18 (December 1991): 298 iii Joan Kron, "Secret Beauty Codes," Allure (August 1992)3: 54. iv Song Jung-a, “Foreign cars gain traction in South Korea,” Financial Times, March 23, 2004: 11. v Sharon Reier, “You’re rich: What do you tell your kids?” International Herald Tribune, January 24-25, 2004: 19- 20. vi Chris Prystay, “VW Makes Bet on a New Class of Asian Buyers,” International Herald Tribune, March 3, 2004: A7. vii Leslie Chang, “Luxury Brands Flock to China,” The Wall Street Journal Europe, March 16, 2004: M1. viii Nicholas Foulkes, “Smart gets even smarter,” Financial Times, February 14/15, 2004: W10. ix John McIntyre, “Figuratively Speaking,” The Chronicle-Herald, April 10, 2004: E9. Solution Manual for Consumer Behaviour: Buying, Having, Being Michael R. Solomon, Katherine White, Darren W. Dahl 9780133958096