Chapter 10

The Family and Its Social Class Standing
BMAKT3101 | Consumer Behaviour

Prepared by Noraizan Abdul Rashid
Faculty of Business Management and Globalization
Learning Objectives
1. To Understand the Changing Nature of U.S. Families, Including Their Composition and Spending Patterns. 2. To Understand the Socialization Process and Other Roles of the Family. 3. To Understand the Dynamics of Husband-Wife Decision Making, as Well as the Influence of Children in Family Consumption Decision Making.
ALL Copyright 2010 part of this documentEducation, Inc. RIGHTS RESERVED 2 Slide No Pearson may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Chapter Ten
Learning Objectives (continued)
4. To Understand How Traditional and Nontraditional Family Life Cycles Impact Consumer Behavior. 5. To Understand What Social Class Is and How It Relates to Consumer Behavior. 6. To Understand the Various Measures of Social Class and Their Role in Consumer Behavior.
Chapter Ten
7. To Appreciate the Distinctive Profiles of Specific Social Class Groupings. 8. To Understand the Ups and Downs of Social Class Mobility. 9. To Understand the Relationship Between Social Class and Geodemographic Clusters. 10. To Understand the Affluent Consumer.
Chapter Ten
11. To Understand the Middle-Class Consumer. 12. To Understand the Working Class and Other Nonaffulent Consumers. 13. To Understand the Nature and Influence of the Techno-Class. 14. To Understand How Social Class Is Used in Consumer Research Studies.
Chapter Ten
As You See It, What Is the Main Family Message of This Ad?
Chapter Ten
It Reminds Parents of the Importance of Creating Quality Time.
Chapter Ten
The Changing U.S. Family
Types of families
Nuclear Extended Single-parent
Changes in household spending patterns
Chapter Ten
Evidence of the Dynamic Nature of U.S. Households Figure 10-2
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Consumer Socialization
The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.
ALL Copyright 2010 part of this documentEducation, Inc. RIGHTS RESERVED 10Slide No Pearson may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
Chapter Ten
What Is the Name and Definition of the Process Depicted in This Ad?
Chapter Ten
Consumer Socialization - the Process byConsumer Behaviour BMAKT3101 | Which Children Acquire the Skills, Knowledge, Attitudes, and Experiences Necessary to Function as Consumers
Chapter Ten
Other Functions of the Family
Economic well-being Emotional support Suitable family lifestyles
Chapter Ten
Family Decision Making
Dynamics of Husband-Wife Decision Making

Husband-Dominated Wife-Dominated
Expanding Role of Children In Family Decision Making

Choosing restaurants and items in supermarkets Teen Internet mavens Pester power
Chapter Ten
The Family Life Cycle
Traditional Family Life Cycle

Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution
Modifications - the Nontraditional FLC
ALL Copyright 2010 part of this documentEducation, Inc. RIGHTS RESERVED 15 No Pearson may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide Slide
Chapter Ten
To Which Stage of the Family Life Cycle Does This Ad Apply, and Why?
Chapter Ten
Bachelorhood The Target Consumer Is Not Yet Married
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Nontraditional FLC Family Stages

Alternative FLC Stage Childless couples Definition/Commentary Increasingly acceptable with more career-oriented married women and delayed marriages Likely to have fewer or no children Likely to have fewer children. Want the best and live quality lifestyle High divorce rate - about 50% lead to this Child out of wedlock Single person who adopts Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with inlaws.
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Couples who marry later in life Couples with first child in late 30s or later Single parents I Single parents II Single parents III Extended family
Social Class
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.
Chapter Ten
Social Class Measure and Distribution Table 10.8

SOCIAL CLASSES and PERCENTAGE Upper Upper-middle Middle Working Lower 16.8% 4.3% 13.8% 32.8% 32.3%
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Social Class Measurement
Subjective Measures
individuals are asked to estimate their own social-class positions
Objective Measures
individuals answer specific socioeconomic questions and then are categorized according to answers
Chapter Ten
Objective Measures BMAKT3101 | Consumer Behaviour
Single-variable indexes Occupation Education Income
Compositevariable indexes Index of Status Characteristics Socioeconomic Status Score
Chapter Ten
Discussion Questions
What are the advantages to a marketer using the objective method to measure social class? When would the subjective or reputational method be preferred?
Chapter Ten
Social Class Mobility
Upward mobility Downward mobility Rags to riches?
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24
Geodemographic Clusters
A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets.
Chapter Ten
Prizm Clusters Figure 10.10a, b
Chapter Ten
The Affluent Consumer
Growing number of households can be classified as mass affluent with incomes of at least $75,000 Some researchers are defining affluent to include lifestyle and psychographic factors in addition to Copyright 2010 Pearson Education, Inc. income
Chapter ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide Slide
27
Ten
The Affluent Consumer
Three Segments of Affluent Customers Average Household Expenditures - Figure 10.12

Chapter Ten
Copyright 2010 Pearson Education, Inc.
28Slide
What Is the Middle Class?
The middle 50 percent of household incomes - households earning between $25,000 and $85,000 The emerging Chinese middle class Moving up to more near luxuries
Chapter Ten ALL Copyright 2010 part of this documentEducation, Inc. RIGHTS RESERVED 29 No Pearson may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide Slide
The Working Class?
Households earning $40,000 or less control more than 30 percent of the total income in the U.S. These consumers tend to be more brand loyal than wealthier consumers.
Chapter Ten
Discussion Questions
What types of products are targeted to the working class? What issues must marketers consider when targeting their ads to the working class?
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The Techno Class
Having competency with technology Those without are referred to as technologically underclassed Parents are seeking computer exposure for their children Geeks now viewed as friendly and fun
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In What Ways Have the Prestige and Status of Geeks Been Changing?
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The Change is Due to the Importance of Computers.
Chapter Ten
Consumer Behavior and Social Class
Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication
Chapter Ten

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The Family and Its Social Class Standing

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Learning Objectives (continued)

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Learning Objectives (continued)

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Learning Objectives (continued)

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

It Reminds Parents of the Importance of Creating Quality Time.

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

The Changing U.S. Family

Changes in household spending patterns

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Evidence of the Dynamic Nature of U.S. Households Figure 10-2

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Other Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Family Decision Making

Dynamics of Husband-Wife Decision Making

Expanding Role of Children In Family Decision Making

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

The Family Life Cycle

Traditional Family Life Cycle

Modifications - the Nontraditional FLC

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Bachelorhood The Target Consumer Is Not Yet Married

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Nontraditional FLC Family Stages

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

Social Class Measure and Distribution Table 10.8

BMAKT3101 | Consumer Behaviour

Faculty of Business Management and Globalization

BMAKT3101 | Consumer Behaviour

Social Class Measurement

Faculty of Business Management and Globalization

Objective Measures BMAKT3101 | Consumer Behaviour