Social class

Consumer Buying Behaviour, Define Different kind of social class works in consumer buying behaviour

1. Consumer behaviour : Social Class Vidhi Malhotra – 31 Harshit Maru – 32 Ronak Menghwani - 33

2. Consumer Behaviour: Consumer behavior is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers’ emotional, mental, and behavioral responses. Why is it important? Studying consumer behavior is important because this way marketers can understand what influences consumers’ buying decisions. By understanding how consumers decide on a product they can fill in the gap in the market and identify the products that are needed and the products that are obsolete. Studying consumer behaviour also helps marketers decide how to present their products in a way that generates maximum impact on consumers.

3. One factor Affecting Consumer Behaviour is.. Social Class

4. What Is a Society? A society, or a human society, is a group of people involved with each other through persistent relations, or a large social grouping sharing the same geographical or social territory, subject to the same political authority and dominant cultural expectations.

5. What Is social class Social classes are the strata in the society. Social classes group people status-wise. Each class has people having more or less the same status. However, In marketing, status is considered with respect to household income, occupational choice and academic achievements. Social Class and Social Status: Status has evolved considering three factors like wealth, power, and prestige. Its Importance : Social class is hierarchical - The hierarchical aspect of social class is important to marketers. Social class and market segmentation – The various social-class strata provide a natural basis for market segmentation for many products and services. Social class and Behavioral Factors –Classification of social classes has enabled researchers to note the existence of shared values, attitudes, and behavioral patterns among members within each social class. Social class as a frame of reference – Social class membership serves consumers as a frame of reference ( i.e.reference group) for the development of their attitudes and behavior. Marketers have often exploited this behavioral need of a specific class to align with its reference group, by seeking clues to their advantage.

6. This states that individuals compare their own possessions against those of others to determine their relative social standing. Social Comparison Theory

7. Status Consumption theory The process by which consumers actively increase their social standing through conspicuous consumption or possessions

8. The Class Categories

9. Upper-Upper They are Microscopic, Elite, Wealth inherited and value family reputation. This section also believes in pedigree and is socially responsible. Small number of well-established families Belong to best country clubs & sponsor major charity events Serve as trustees for local universities and hospitals Prominent physicians & lawyers May be heads of major financial institutions, owners of major long established firms Accustomed to wealth, so do not spend money conspicuously

10. Lower-Upper This section has Wealth of first generation, Neo-rich. It is a shade lesser than upper- upper section. Choose good schools for children like Doon School and Mayo College. Future generations have chances to move to top-class. Emulate etiquettes of the top-class. Not quite accepted by the upper crust of the society Represent new money Successful business executives Conspicuous users of their new wealth

11. Upper-Middle Here the section is larger than the above two classes. Financially stable and secured that is income is above average. They are moderately successful professionals and businessmen. Emulate the upper classes. Degree of success puts a dividing line between them and the two upper classes. Career oriented Young successful professionals, corporate managers, business managers Active in professional, community, & social activities Have a keen interest in obtaining the better things in life. Their homes serve as a symbol of their achievements Consumption is often conspicuous

12. Lower-Middle A large class. Supervisors, non- managerial staff, traders, clerical staff, salespeople and they also value education. Primarily non managerial white collar workers and highly paid blue collar workers. Want to achieve respectability and be accepted as a good citizen Prefer simple and a neat appearance and tend to avoid high-styled clothing

13. Upper-Lower Largest class who are Wage-earners or more precisely working class. Strive for respectability. The working class are those minimally educated people who engage in “manual labor” with little or no prestige. Unskilled workers in the class—dishwashers, cashiers, maids, and waitresses—usually are underpaid and have no opportunity for career advancement. They are often called the working poor. Skilled workers in this class—carpenters, plumbers, and electricians—are often called blue collar workers. The largest social class segment Solidly blue collar Strive for security View work as a mean to buy enjoyment Husbands have strong macho self image Interested in Items that enhance their leisure time ( eg . TV Sets, hunting equipment etc )

14. Lower Lower Lowest income, unemployed. This class is basically underdeveloped and uneducated. They are daily wage earners and low occupations. People of this class, few of whom have finished high school, suffer from lack of medical care, adequate housing and food, decent clothing, safety, and vocational training. The media often stigmatize the lower class as “the underclass,” inaccurately characterizing poor people. Poorly educated, unskilled laborers Often out of work Children are often treated poorly Tend to live on day to day existence

15. Measurement Of Social class

16. Measurements Subjective measures : individuals are asked to estimate their own social-class position from the given alternatives such as the lower class, the lower middle class, the upper middle class, and the upper class. Reputational measures : The reputational approach for measuring a social class takes the help of informants to make judgements concerning the social class membership of others within the community, rather than themselves. Objective measures : In this approach, selected demographic or socio-economic variables concerning the individuals under study are chosen for evaluation of their social class.

17. Objective measures Single Variable Indexes A single variable index uses just one socio-economic variable to evaluate social- class membership. Some of the most popular variables are Education, Income, Employment, Ownership, and Net worth. Interestingly, when two individual variables are matched and plotted differently, one composite matrix can emerge such as Occupation and Income. Composite Variable Indexes Composite indexes systematically combine a number of socio-economic factors to form one overall measure of social class standing. Such indexes are of interest to marketers because they may better reflect the complexity of social classes than single variable indexes. Post capturing the required single variables, a composite variable index can be developed as needed for the classification of your consumers.

18. SOCIO-ECONOMIC CATEGORISATION (SEC) For Indian marketers, one composite index was developed, known as SOCIO-ECONOMIC CATEGORISATION (SEC), in which occupation of the individual and income are considered. This is considered as traditional classification and in the recent past, new SEC classification has also been evolved in which their education is considered along with their ownership of durables. There is also a classification available for rural India based on the nature of house owned by them, and education.

19. LEARNINGS & conclusion Rich are quicker to adopt consumer habits considered premium. Stereotypes are no guide to marketing, rising income means less expenditure on household products, and more spending on out-of- home activities. Social acceptance and status are powerful drivers. Indian middle-class consumers place strong importance on brands, particularly luxury brands. Status is a key factor – many people will buy luxury goods not because they necessarily like them, but because they are representations of success. Make sure you have a specific strategy focusing on brand localization, brand building and awareness creation. New entrants to the market with a recognized brand may wish to consider a product launch or media conference to announce their arrival in India. For everyday commodities, price is an important consideration for Indian consumers, particularly at the middle class and other lower- income levels. As opposed to status items on which wealthier Indian consumers are willing to spend more, non-status items are likely to be chosen based on price. 

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