MCQ Chapter 13: Social Class and Status Flashcards
(18 cards)
Define social class
a group of people with similar levels of prestige and esteem who share beliefs, attitudes, and values expressed in their thinking and behavior
Explain each social class group
- economic capital: is money and wealth
- social capital: it is the aggregate of actual and potential resources within one’s social network (it can be in the form of a common family name or school)
- cultural capital: refers to a set of distinctive taste, skills, and practices, each social class group share the same knowledge (is especially noticeable in consumers’ preferences for and taste in hobbies, food, furniture, and clothing)
Explain what a reputation economy is
The “currency” people earn is approval rather than cold hard cash
Explain proxies
It is the indicators of one’s position
Define social status
Where we think we stand in a society. It is to assess that standing, we compare ourselves and what we have with others and what they have
Define financial deprivation
The sense of not having as much money as peers have
Differentiate between upward and downward comparison (pg 428)
Upward comparison: aspirational social reference groups
Downward comparison: looking to the less fortunate
Differentiate between status symbols and status seeking
Status symbols: possessions (e.g., luxury brand items) or services (e.g., spa treatments or personal shoppers) that communicate wealth or prestige to others
Status seeking: a significant source of motivation to procure products and services that will let others know we’ve “made it”
What four consumption groups are consumers assigned to (pg 429)
Patrician: signal to each other they use quiet signals (have wealth, low need for status)
Parvenu: associate with other haves and want to disassociate themselves from have-nots, they use loud signals (have wealth, high need for status)
Proletarian: do not engage in signing (have-not wealth, low need for status)
Poseur: aspire to be haves, they mimic the parvenus (have-not wealth, high need for status)
What is a status threat
Upward comparison can make us worried about our social status, a condition called status threat
Explain status pivoting
A way to cope with status rate is by status pivoting which involves signaling our status and success—in alternative domains
What are the three groups based on their attitudes towards luxury brands
- Luxury is functional: these consumers use their money to buy things that will last, and have enduring value. They conduct extensive pre-purchase research and make logical decisions rather than emotional or impulsive choices.
- Luxury is a reward: these consumers tend to be younger then the first group but older than the third group. They use luxury ghost to say “I’ve made it”
- Luxury is indulgence: this group is the smallest of the three and tends to include younger consumers and slightly more males than the other two groups. To these consumers the purpose of owning luxury is to be extremely lavish and self-indulgent. This group is willing to pay a premium for goods that express their individuality and make others take notice
Define income inequality
The extent to which resources are distributed and evenly within a population
What is an indicator of income inequality
The CEO pay ratio, which compares the salary of a company’s CEO to the earnings of a typical employee
Explain the 4 A’s of addressing low income consumers
- awareness: promote offerings through mix of outlets and form partnerships with public and nongovernmental organizations
- affordability: reduce packaging size for low price per unit, maintain operations on zero (or near-zero) working capital and leverage scale effects and sourcing network
- acceptability: focus development on customers, employ innovative thinking to meet customer needs
- availability: reduce cost, shorten supply chain, elect and support retailers, devise stocking strategy and localize sourcing
What is the digital divide
access to technology is still restricted for many people because of income
What are purpose driven consumers
Purpose-driven consumers choose products and brands that fit with their values
How can social justice be addressed in the global market place and create social change
- businesses can improve access to bottom-of-the-pyramid consumers and invest in cause-related marketing
- society can form grassroots community organizations
- the government can enact policy changes and educational opportunities for upward social mobility
- non-profit organizations can fund social programs
