buyer behaviour income and social class chp. 13 with duane weaver
TRANSCRIPT
Buyer BehaviourIncome and Social ClassBuyer BehaviourIncome and Social Class
Chp. 13 with Duane WeaverChp. 13 with Duane Weaver
Income & Social ClassOUTLINE
Income & Social ClassOUTLINE
INCOME PATTERNS$PENDING Consumer Confidence Social Class
ImpactsMeasuringAffect on Purchase Decisions
INCOME PATTERNS$PENDING Consumer Confidence Social Class
ImpactsMeasuringAffect on Purchase Decisions
INCOME PATTERNSINCOME PATTERNS
Average Cdn. Income is up Steady increase in working women,
thus middle & upper income Family earnings UP!
Education increases income2006 results:
50%+ Cdns. with some post secondary education/income
25% have some University, 16%+ have degree
Average Cdn. Income is up Steady increase in working women,
thus middle & upper income Family earnings UP!
Education increases income2006 results:
50%+ Cdns. with some post secondary education/income
25% have some University, 16%+ have degree
$PENDING$PENDING
Discretionary Income a.k.a “disposable income”
“the money available for a household over and above
that required for a comfortable standard of living.” ^^^what does this really mean??^^^
Discretionary Income a.k.a “disposable income”
“the money available for a household over and above
that required for a comfortable standard of living.” ^^^what does this really mean??^^^
+or
?
Consumer Confidenceand the propensity to spendConsumer Confidenceand the propensity to spend
Behavioural Economics (economic psychology) tries to determine:how consumers’ motives and expectations about the future affect the entire society’s economic well-being.
Optimism vs. Pessimism
Spend vs. Hoard/Save(e.g. Great Depression, severe weather, impending war, threats of terror…social or political unrest)
Behavioural Economics (economic psychology) tries to determine:how consumers’ motives and expectations about the future affect the entire society’s economic well-being.
Optimism vs. Pessimism
Spend vs. Hoard/Save(e.g. Great Depression, severe weather, impending war, threats of terror…social or political unrest)
SOCIAL CLASSSOCIAL CLASS
Social Class = a consumer’s standing Determined by a complex set of variables including
income, family background, and occupation within a particular culture.(note we will look at cultural implications separately)
Is it Have vs. Have not?
What is the “have”???
How does the perception of social class impact the cognition of spending?(e.g. minimalism vs. materialism)
Social Class = a consumer’s standing Determined by a complex set of variables including
income, family background, and occupation within a particular culture.(note we will look at cultural implications separately)
Is it Have vs. Have not?
What is the “have”???
How does the perception of social class impact the cognition of spending?(e.g. minimalism vs. materialism)
IMPACTS of SOCIAL CLASSIMPACTS of SOCIAL CLASS
Pecking order Access to resources Tastes and Lifestyle Social stratification and status
hiearchy
Please get together with your team NOW: take 8 minutes to come up with one example for each
of the above. Your examples should exemplify how social class
impacts a decision to spend by that social group.
Pecking order Access to resources Tastes and Lifestyle Social stratification and status
hiearchy
Please get together with your team NOW: take 8 minutes to come up with one example for each
of the above. Your examples should exemplify how social class
impacts a decision to spend by that social group.
Measuring Social ClassMeasuring Social Class
Why bother?What is the value to a marketer, advertiser, or product manager?
Complex concept that is difficult to measure
Problems with metrics: Badly dated, not as relevant today Most based on traditional nuclear family Relies largely on interviewer’s judgment Mixed rankings: income, ethnic status, job status, &
actual social behaviour
Why bother?What is the value to a marketer, advertiser, or product manager?
Complex concept that is difficult to measure
Problems with metrics: Badly dated, not as relevant today Most based on traditional nuclear family Relies largely on interviewer’s judgment Mixed rankings: income, ethnic status, job status, &
actual social behaviour
Measuring Social ClassMeasuring Social Class
Social Class Segmentation Issues: Ignore status inconsistency Ignore intergenerational mobility Ignore subjective social class (self-
identity vs. classification of value)
Ignore aspirations to change one’s standing
Ignore social status of working spouse
Social Class Segmentation Issues: Ignore status inconsistency Ignore intergenerational mobility Ignore subjective social class (self-
identity vs. classification of value)
Ignore aspirations to change one’s standing
Ignore social status of working spouse
SOCIAL CLASS’sAffect on Purchase Decisions
SOCIAL CLASS’sAffect on Purchase Decisions
Social class “standing” can be used to segment markets as we see examples of buyer behaviour that are related. E.g.: Working class focusing on Function and Yuppie focusing on Image.
World-view of classes Taste cultures (aesthetic and intellectual
preferences), codes (restricted v.s
elaborated), cultural capital (destinctive rare practices)
Social class “standing” can be used to segment markets as we see examples of buyer behaviour that are related. E.g.: Working class focusing on Function and Yuppie focusing on Image.
World-view of classes Taste cultures (aesthetic and intellectual
preferences), codes (restricted v.s
elaborated), cultural capital (destinctive rare practices)
SOCIAL CLASS’sAffect on Purchase Decisions
SOCIAL CLASS’sAffect on Purchase Decisions
Targeting Social Class From what we have learned, how can we
better target a specific social class? High income Middle income Low income
Invidious distinction – products that inspire envy in others through display of wealth or power.
Conspicuous consumption – people’s desire to provide prominent, visible evidence of their ability to afford luxury goods.
Parody Display – seek status by reverse consumption, mocking status symbols.
Targeting Social Class From what we have learned, how can we
better target a specific social class? High income Middle income Low income
Invidious distinction – products that inspire envy in others through display of wealth or power.
Conspicuous consumption – people’s desire to provide prominent, visible evidence of their ability to afford luxury goods.
Parody Display – seek status by reverse consumption, mocking status symbols.
Thank YouThank You