Flashcards in Chapter 12 - income, Social Class, and Family Structure Deck (46):
What are two ways general economic conditions affect the way we allocate our money?
1. Persons social cloass impacts that they do with money to solidify ones place in society
How are Canadian living standards?
They are high and improving, but we are still feeling affects of 2008 recession and income has been increasing very slowly
What is the fastest growth in the labour market?
Mothers with preschool children
What % of wives make more money than their spouses?
30% of wives make more money than their spouses
Does it pay to go to school?
Yes, 50% of CDNs had some post secondary edu, and 25% have university, and 16% have degree.
We earn 74,600 vs 43,700 on average against other education levels
Consumer demand = ???
Consumer demand = willingness to buy + ability to buy
What is discretionary income?
What is it being spent on more now than before?
This changes as households ages, and households now are spending more on entertainment and education
With discretionary income, what do older households do?
Older households spend a much larger share of budget on shelter and transportation, and less on food and apparel
What was the 2008 recession influence on attitudes toward money?
Created more frugal types
The Walmart study identified three distinct groups of consumers with attitudes toward money, what were they?
1. Brand aspirationals
(low incomes but obsess with names like KitchenAid)
2. Value-price shoppers
(like low prices, and cannot afford more)
3. Price-sensitive affluents
(weather shoppers who love deals)
Define consumer confidence
Consumer confidence is extent to which people are optimistic or pessimistic about the future health of the economy
What influences how much discretionary money we will pump into economy?
Overall savings rate is affected by what 3 things?
1. Pessimissm/optimism about personal circumstances
2. National and world events
3. Cultural differences in attitudes toward savings
Our place in the social structure determines how much we ____
Our place in the social structure determines how much we spend and how we spend it
What is the dominance-submission hierarchy?
What are the
So a pecking order is determined that says where you stand in society
standing determines access to resources such as education, housing, consumer goods
so we use marketing strategies to focus on the desire to move up in this standing, such as Walmarts Live Better campaign
Marx: means of production
Max Weber: Status Groups
What is homogamy?
Birds of a feather flock together, so people in same class stick to eachother
What is social stratification?
Sharing out resources unequally through artificial divisions, also called reputation economy where the higher social class gets more resources such as education, housing, and consumer goods
Achieved vs. Ascribed Status?
Achieved: Earned through hard work
Ascribed: Born with a silver spoon
What is social mobility?
Passage of individuals from one social class to another
With social mobility, what is:
from one occupation to another in same social class
So demotion or job lower social class
Climbing the ladder, as it were
What are 5 trending class structures happening around the world in:
5 trending class structures happening around the world in:
(rise of middle class, love Nikes haha)
(status and brand conscious society)
(women enjoy shopping with family/friends)
(Rigid class structure still exists, but aristocracy is fading. Marketers still targeting Chavs though haha)
(economy booming, many poor, but rich are preferring high end brands & credit cards)
What an example of people shopping "cheap" in one area to shop "rich" elsewhere?
Even the wealthy shop at Walmart for basics
What are 4 blurring social class trends?
1. Many luxuries affordable to all now
2. Shop cheap in one area to shop rich in another
3. emergence of BRIC economies
4. Growing demand for mass class products globally
What are the two components of social class?
1. Occupational Prestige
(some jobs more respected than others, stable over time and similar across cultures)
(Income not a good indicator, its the way the money is spend and now how much is spent)
Why are money and class not synonymous?
What are 3 things that predict the purchase from these attributes
Social class is better predictor to buy lower to moderately priced symbolic purchases such as lexus
income is better predictor of major non status/nonsymbolic expenditures
You need both social class and income to predict expensive, symbolic products
What are 5 characteristics of working class being intimate and constricted group?
1. immediate needs dictate buying behaviour
2. depend on relative and community
3. More likely to be conservative/family oriented
4. Maintain appearance of home/property
5. Don't feel high status lifestyle worth it
Strategic insights study divided consumers attitudes toward luxury into what three groups?
1. Luxury is functional
(purchases logical, not impulsive)
2. Luxury is reward
(younger people, I've made it!)
3. Luxury is indulgence
(lavish and self indulgent)
What is taste culture?
What do some think of this concept?
Taste culture differentiates people in terms of their aesthetic and intellectual preferences.
It distinguishes consumption choices among social classes.
So upper going to visit museums and live theatre, whereas middle will go camping and fishing.
Some think this concept of taste culture is elitist (including me)
A community is healthier and more desirable when it is able to offer a lot of ______ as an inducement for people to join
A community is healthier and more desirable when it is able to offer a lot of social capital as an inducement for people to join
What are status symbols?
These are status seeking things that let others know you've made it
What is conspicuous consumption?
People desire to provide prominent visible evidence of their ability afford luxury goods, so conspicuous consumption is when they make sure others know they bought a status symbol
What is invidious distinction?
So this is when we buy things that are meant to make others envious of us through a display of wealth and power
What are the two ways we measure social class?
1. index of status characteristics and index of social position developed by Mr. Hollingshead.
2. Blishen, which is socioeconomic index for occupations
What are 7 problems with measuring social class?
1. Trouble accounting for two-income families, young singles living alone, or households headed by women
2. Increasing anonymity of our society, so can't use reputation of others
3. Status crystallization, our self concept is not consistent
4. Overprivileged vs underprivileged, such as if they're lottery winners and overprivileged
5. Traditional issues of hierogamy, such as women tending to marry instead of men
6. Many women now contribute equally to families wellbeing
7. Potential spouses social class as product attribute to him
For problems with segmenting social class, marketers tend to ignore what 5 things?
1. Status inconsistency
2. Intergenerational mobility
3. Subjective social class
4. Consumers aspirations to change class standing
5. Social status of working wives
What must a family household be to be considered that?
Just that there is at least two people, regardless of their relationship
Family size depends on what?
Educational level, birth control availability, religion etc
What is Canadian fertility rate?
1.6, which is less than rate of 2.1 to sustain CDN population
Wordwide what do women want with family size?
Smaller families, especially in industrialized countries. SO divorce is common, fewer young people to support elders, and some countries want people to have more children
What are these two groups:
Adults who care for their parents as well as their own children
Adult children who return to live with their parents
What are the two factors for how couple spend money?
1. Do they have kids
2. Whether the woman works
What is the FLC (family life cycle) concept?
The FLC concept combines trends in income and family composition with change in demands placed on income
What are the 4 variables that the Family Life Cycle Approach Models take into account to describe changes in priorities and demand for product categories?
2. Marital Status
3. Presence/absence of children in home
4. Ages of children
Are people less or more focusing on status symbols?
This generation is much more focused on quality, and not so much on the status it exudes. It is a trend away from conspicuous consumption, and people are more frugal about it.
What does it mean that there is a trend for smaller families?
That people are not willing to pay to heat things like big houses, buy in huge bulk, car sizes going down etc