The Family & Social Standing 2 Flashcards
Social Class Influence
Social stratification has always existed
- Division of members of society into a hierarchy of distinct social classes
- Same Class = Same Status
- Low Class < Middle Class < High Class
What’s Your Social Class?
Social Comparison Theory
- consumers compare their own personal products with others
- purchase products that are favored by members of same or higher social class
- avoid products perceived as lower class
- determine their relative social standing
Materialistic Societies
- More Purchasing Power = More Status
Social Standing (Socioeconomic Status)
- Income
- Occupational Status
- Educational Achievement
Consumers look for cues indicating that others are either
- equal to them (same social class)
- superior to them (higher social class)
- inferior to them (lower social class)
Status Consumption
Purchase and display of products showing ones’ social standing, prestige, and success
- Social signaling: using brands as class symbols
- Veblen goods: demand increases with higher price and exclusivity
- Conspicuous consumption: public display of extravagant spending
Outcome
- Enhance self-esteem
- Get social validation
- Upward social comparison
Luxury Consumption
Purchase and display of highly observable items by well-known brands
Spatial Segregation
Separation of groups in a particular territory by lines of race, caste, ethnicity, language, religion or income status
Membership
Sales method used to acquire new customers or to retain existing ones
Signaling Status With Luxury Goods
Wealth (Haves) + Need For Status (Low): Patrician
- signal to each other
- quiet signals
Wealth (Haves) + Need For Status (High): Parvenu
- associate themselves with other haves and and disassociate themselves with have-nots
-loud signals
Wealth (Have-Nots) + Need For Status ( Low): Proletarian
- do not engage in signaling and status consumption
Wealth (Have-Nots) + Need For Status (High): Poseur
- aspire to be parvenu and will participate in status consumption
Veblen: Trickle-Down Theory
Also used for the fashion movement
Upper Class
- Innovators
- Top Celebrities
- Elite Families
Middle Class
- Early Adopters
-Influencers
- Other Celebrities
Lower Class
- General Public
Trickle-Round Theory
Since the middle class have been trying to imitate the upper class, then the lower class is essentially imitating the upper class as well
Upper class adopt items associated with lower class to distinguish themselves from the middle class
Example: upper class were raising chickens like the lower class, but spending thousands of dollars to build the chicken coops
US Careers
Top 10 Prestigious US Careers
- Occupational prestige ranking represents society’s beliefs regarding the occupation’s worth and desirability.
- Doctor
- Scientist
- Firefighter
- Military Officer
- Engineer
- Nurse
- Architect
- Emergency Medical Technician (EMT)
- Veterinarian
- Police Officer
Top Least Honest US Career
- Members of Congress
- Senators
- Car Salespeople
- Journalist
- Advertising Practitioners
- Stockbrokers
- Insurance Salespeople
- Lawyers
- State Governers
- Business Executives
Social Stratification in the US
Upper-Upper Class – Inherited wealth/privilege (< 1%)
Nouveau Riche – Money is King (< 1%)
Upper-Middle Class – Achieving Professionals (≈ 15%)
Lower-Middle Class – Faithful Followers (≈ 30%)
Upper-Lower Class – Security-Minded (≈ 30%)
The Working Poor – The Insecure (≈ 13%)
The Underclass – Rock Bottom (≈ 12%)
Affluent Households
- Have large disposable incomes and are a lucrative target market for luxury goods
- Prefer clothing without conspicuous labels
- Tend to be healthier and have higher life expectancies
- Watch less TV, read more newspapers/magazines, and listen to the radio
- “Future oriented” and confident of their financial acumen
Middle Class
- Comfortable living standards and economic security
- Independent, intrinsically motivated, nonconformist, innovative
- Broader view of the world than lower class consumers
Working Class (Blue-Collar)
- Households earning less than $40,000 annually
- Tend to be more brand loyal than other groups
- Purchase clothing that carry logos, trademarks, or names of celebrities or music groups
- Interested in safety and security
Max Weber: Theory of Social Stratification
Social Class
- determined by economic factors, social status, power
Status:
- respect and admiration a person receives from others
Power:
- individual’s control over valuable resources
Status with power
- President of U.S.
Status without power
- King of the England
Power without status
- Key personnel of a department
Powerlessness Leads to Status Acquisition
- Powerless is an aversive psychological state
- Consumers feeling powerless might compensate through status consumption (Buy an expensive watch)
