Household

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Chapter 13

• Household
• Social Class Influences

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Learning Objectives Ch. 13

• To understand
• Social class hierarchy its determinants
• Social class consumer behavior
• Three key forces changing social class structure
  in many countries
• Various types of households/families the family
  life cycle

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Social Class Household Influence
4
Social Class Hierarchy

• Social Class Systems
• High
• Middle
• Lower
• Social ClassEconomic Substrata
• Over privileged
• Class Average
• Underprivileged

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Class Structure by Culture
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U.S. Subclasses

• Upper Americans
• Upper-upper
• Lower-upper
• Upper-middle
• Middle Americans
• Middle class
• Working class
• Lower Americans
• Not the lowest
• Real lower-lower

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Social Classes of Thailand

• Aristocracy
• Elite
• Upper-Middle Class
• Lower-Middle Class
• Lower Class

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German Social Classes
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Social Class Influence

• Trickle-Down
• Lower classes copy trends of upper classes
• Status Float
• Trends start in lower/ middle classes spread
  upward

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Social Class Determination

• Income Versus Social ClassIncome not strongly
  related
• Occupation EducationStrongest determinant of
  class standing
• Other Indicators
• Inherited Status
• Earned Status
• Social Class Indexes
• Computerized Status Index
• Status Crystallization

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Social Class Dynamics

• Upward MobilityEducation
• Downward MobilityJob loss
• Marriage may impact mobility
• Status panic
• Social Class Fragmentation
• Blurred class divisions
• Increased availability of mass media
• Advances in communication technology

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Social Class Consumption

• Conspicuous consumption status
  symbolsconspicuous waste
• Status symbols judging others
• Parody display
• Fraudulent symbols
• Compensatory consumption
• Meaning of money
• Both good evil
• Can you buy happiness?

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Consumption Patterns by Social Classes

• Upper Class
• Aristocracy
• New Social Elite (Novae Riches)
• Upper Middle Class
• Middle ClassWhite-collar workers
• Working ClassBlue-collar workers
• Homeless
• Struggle to Survive
• Scavenging

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• This ad targets the upper-upper social class who
  are likely to own private jets.

Courtesy Villas at Royal Lahaina
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Marketing Implications

• Product/service should reflect social class
  motives values
• Marketing messages should focus on groups
  distinctiveness
• Media usage differs between classes
• Different social classes shop at different stores
• Social class may not be the best market
  segmentation variable Why not?

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Household Influences CB

• Types of Households
• Family
• Single Person Living Alone (the most growing
  group)
• Group of Individuals Living Together
• Family
• Nuclear
• Extended

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Household Types
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The Family Life Cycle
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Household Structure Trends

• Delayed Marriage
• Cohabitation
• Dual Career Families
• Divorce
• Smaller Families
• What accounts for these changes and in what ways
  are they relevant to business?

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Roles

• Gatekeeper
• Influencer
• Decider
• Buyer
• User
• Roles can be expressive or instrumental

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• One of the trends in families is the increase of
  dual income families. This DuPont ad targets
  working mothers.

Courtesy DuPont
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Buyers Users
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Household Role Conflict

• Reasons for buying
• Who should make decision
• Which option to choose
• Who uses product/service
• Purchaser is not always the end user
• Gender roles are blurring

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Spouses Decisions

• Dominant
• Husband
• Wife
• Decision
• Autonomic
• Syncratic
• Bargaining Versus Concession
• Children? Pester power

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Questions?