REVIEW QUESTIONS
12-1. How have women contributed to the overall rise in income in our society?
One reason for this increase in income is that there also have been a larger proportion of people
of working age participating in the labor force. Mothers with preschool children are the
fastest-growing segment of working people. Furthermore, many of these jobs are in high-paying
occupations such as medicine and architecture that used to be dominated by men. Although
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
12-2. Define discretionary income.
Discretionary income is the money available to a household over and above that required for a
(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge)
12-3. How does consumer confidence influence consumer behavior?
Consumers’ beliefs about what the future holds are an indicator of consumer confidence that
reflects the extent to which people are optimistic or pessimistic about the future health of the
(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge)
12-4. What is a pecking order?
In many animal species, a social organization develops whereby the most assertive or aggressive
animals exert control over the others and have the first pick of food, living space, and even
mating partners. Chickens, for example, develop a clearly defined dominance–submission
hierarchy. Within this hierarchy, each hen has a position in which she is submissive to all of the
(10 minutes, Chapter Objective 2, AACSB: Application of Knowledge)
12-5. What is social class? Is it different from income and if so how?
We use the term social class more generally to describe the overall rank of people in a society.
People who are grouped within the same social class are approximately equal in terms of their
social standing in the community. They work in roughly similar occupations, and they tend to
(10 minutes, Chapter Objective 2, AACSB: Application of Knowledge)
12-6. Define social mobility and describe the different forms it takes.
In some societies, such as India, one’s social class is very difficult to change, but America is
reputed to be a country in which “any man (or woman?) can grow up to be president.” Social
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Copyright © 2017 Pearson Education, Inc.
(10 minutes, Chapter Objective 2, AACSB: Application of Knowledge)
12-7. What one variable is the best indicator of social class? What are some other important indicators?
When we think about a person’s social class, there are a number of pieces of information we may
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-8. What is income inequality, and why is it a problem?
Today one of the biggest issues we hear about is income inequality, that is, the extent to which
resources are distributed unevenly within a population. One consequence of rising inequality is
that more consumers worry about “falling behind” if a breadwinner loses his or her job or if the
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
12-9. Why might a person’s social class not change when he or she earns more money?
One problem is that even if a family increases household income by adding wage earners, each
additional job is likely to be of lower status. A homemaker who gets a part-time job is not as
likely to get one that is of equal or greater status than the primary wage earner’s full-time job. In
(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-10. What are some of the problems we encounter when we try to measure social class?
One reason is that most measures of social class were designed to accommodate the traditional
nuclear family, with a male wage earner in the middle of his career and a female full-time
homemaker. Such measures have trouble accounting for two-income families, young singles living
alone, or households headed by women, who are so prevalent in today’s society. Another problem
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-11. How does the worldview of blue-collar and white-collar consumers tend to differ?
Although they would like to have more in the way of material goods, working-class people do not
necessarily envy those who rank above them in social standing. They may not view the
(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-12. What is a taste culture?
A taste culture differentiates people in terms of their aesthetic and intellectual preferences. This
(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge)
12-13. Describe the difference between a restricted and an elaborated code. Give an example of each.
Restricted codes are dominant among the working class, whereas the middle and upper classes
tend to use elaborated codes. Restricted codes focus on the content of objects, not on
(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-14. What is cultural capital, and why is enrolling in an etiquette class a way to accumulate it?
This refers to a set of distinctive and socially rare tastes and practices—knowledge of “refined”
behavior that admits a person into the realm of the upper class. The elite in a society collect a set
(10 minutes, Chapter Objective 3, AACSB: Application of Knowledge)
12-15. How do you differentiate between “old money” versus “nouveau riche” consumers?
We call consumers who have achieved extreme wealth and have relatively recently become
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-16. What roles do status symbols play in purchase decisions?
We tend to evaluate ourselves, our professional accomplishments, our appearance, and
our material well-being relative to others. Often it’s not enough just to have wealth or fame; what
matters is that you have more of it than others. A major motivation to buy is not to enjoy these
items but rather to let others know that we can afford them. These products are status symbols.
The popular bumper-sticker slogan, “He who dies with the most toys, wins,” summarizes the
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-17. What is conspicuous consumption? Give a current example.
Conspicuous consumption refers to people’s desire to provide prominent visible evidence of their
(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge)
12-18. What is a current example of parody display?
As the competition to accumulate status symbols escalates, sometimes the best tactic is to switch
gears and go in reverse. One way to do this is to deliberately avoid status symbols—that is, to
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-19. Describe what we men by the term mass class and summarize what causes this phenomenon.
Mass class describes the hundreds of millions of global consumers who now enjoy a level of
purchasing power that’s sufficient to let them afford high-quality products—except for big-ticket
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
CONSUMER BEHAVIOR CHALLENGE
DISCUSS
12-20. Sears, JC Penney, and Walmart tried hard in recent years to upgrade their images and appeal to
higher-class consumers. How successful have these efforts been? Do you believe this strategy is
wise?
JC Penney has not been very successful in changing its image. Because consumers have always
thought of stores like J. Penney, Sears, and Walmart as discount or low-price stores, it is likely
that these stores will have difficulty changing their images among the public. Attempting to
(15 minutes, Chapter Objective 3, AACSB: Analytic Skills)
12-21. What are some of the obstacles to measuring social class in today’s society? Discuss some ways
to get around these obstacles.
Some of the obstacles in measuring social class in today’s society are changes in family structure,
anonymity, and status inconsistency. One way to get around obstacles is to obtain demographic
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking
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Copyright © 2017 Pearson Education, Inc.
12-22. What consumption differences might you expect to observe between families characterized as
underprivileged versus those whose income is average for its social class?
An example of the consumption differences one might expect to observe between a family
characterized as underprivileged versus one whose income is average for its social class include
the brands of clothing worn, the types of cars driven, types of vacations (flying versus driving,
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-23. How do you assign people to social classes, or do you at all? What consumption cues do you use
(e.g., clothing, speech, cars, etc.) to determine social standing?
As discussed in the text, people are assigned to social classes by virtue of their social standing in
the community. People are grouped according to their occupation, lifestyle, ideas and values, and
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-24. In today’s economy, it has become somewhat vulgar to flaunt your money – if you have any left.
Do you think this means that status symbols like luxury products are passé? Why or why not?
This will be an interesting debate among students. They may agree that luxury can be consumed
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-25. Thorstein Veblen argued that men used women as “trophy wives” to display their wealth. Is this
argument still valid today?
Student responses will vary based on their opinion of trophy wives. To Veblen, wives are an
economic resource. He criticized the “decorative” role of women, as rich men showered them
with expensive clothes, pretentious homes, and a life of leisure as a way to advertise their own
(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
12-26. Research suggest that social class influences how much compassion people show to others who
need help. For example, one study reported that luxury car drivers were more likely to cut off
other motorists instead of waiting for their turn at the intersection. Another showed that
less-affluent people are more likely to agree with such statements as, “I often notice people who
need help,” and “It’s important to take care of people who are vulnerable.” Other studies have
demonstrated that upper-class people are not as good at recognizing others’ emotions. One
explanation is that more resources provide a sense of independence; the less we have to rely on
others, the less we care about their feelings. Do you agree that wealthy people are less caring?
Why or why not?
Student responses will vary. One approach to social class focuses on the codes (the ways
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Copyright © 2017 Pearson Education, Inc.
Elaborated codes, in contrast, are more complex and depend on a more sophisticated worldview.
(5 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning )
12-27. This chapter observes that some marketers find “greener pastures” when they target low-income
people. How ethical is it to single out consumers who cannot afford to waste their precious
resources on discretionary items? Under what circumstances should we encourage or discourage
this segmentation strategy?
Student responses will vary but should indicate an understanding of segmentation strategy and
(10 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning)
APPLY
12-28. Compile a list of occupations and ask a sample of students in a variety of majors (both business
and non-business) to rank the prestige of these jobs. Can you detect any differences in these
rankings as a function of students’ majors?
The students should be encouraged to try this exercise with a variety of individuals, not just
(30 minutes, Chapter Objective 2, AACSB: Analytic Skills)
12-29. Compile a collection of ads that depict consumers of different social classes. What
generalizations can you make about the reality of these ads and about the media in which they
appear?
The instructor might review this exercise after students have completed it. The instructor might
attempt to identify aspects of the advertisements that students used to classify consumers as
(30 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
CASE STUDY TEACHING NOTES
Chapter 12 Case Study: Success At The Bottom Of The Pyramid? P&G’s Gillette Guard Shows It’s
Possible
Summary of Case
Consumer behavior is influenced by internal and external factors. One of the external factors that sets real
boundaries for consumers is their level of income. Some marketers refer to strategies directed at different
income tiers as targeting certain levels of a pyramid. Marketing to the bottom of the pyramid, focusing on
consumers with very limited financial means.
Suggestions for Presentation
This material can be used to illustrate how reference groups also have status symbols.
Suggested Answers for Discussion Questions
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Copyright © 2017 Pearson Education, Inc.
CS 12-1. Using the “4A’s” framework in Figure 12.1, analyze the considerations that went into the
development of the Gillette Guard razor for the Indian market?
Gillette Guard focuses on needs of the consumer at a “ruthless cost.” This meant paying
(10 minutes, Chapter Objective 4, AACSB: Application of Knowledge)
CS 12-2. Are companies targeting the bottom of the pyramid taking advantage of vulnerable consumers
with limited resources?
No, consumers at the bottom of the pyramid still have needs.
(10 minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments)
CS 12-3. More than half of U.S. workers earn less than $30,000 a year barely above the poverty line for a
family of five. What would you recommend to a company looking to target the bottom of the pyramid
consumers in the United States?
Companies should use Gillette’s India Research as a blueprint on how to reach this market
(10 minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments
Additional Support Material
STUDENT PROJECTS
Individual Projects
1. Have students look for the parody display segments in town – for instance, the freegans, or the
blue denim pants (Von Dutch) crowd. Talk to them and determine their rationale for their
lifestyle and their opinions about other social classes.
When upper class individuals avoid brands this is called parody display. Students may find the
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
2. Have a student visit a high-end specialty store for a luxury good (i.e., Louis Vuitton, Coach,
Burberry, etc.). Have them interview a sales associate or manager about the existence of the mass
class segment. Can they identify the difference between upper-class people and middle- to
lower-class people who buy the products? What are the noted differences? How prevalent are the
mass culture members?
Students should find the first-hand experience of the sales associate interesting. The appeal to
(30 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
3. Conduct this as an in-class activity. Prepare a list of 15 occupations and distribute copies to the
class. Ask each student to rank the occupations according to prestige. Compile the results (either
during class, or after for the next class period). Discuss the results with the class. Are there
consistencies? Why do these form? What implications do these perceptions have on consumer
behavior?
This exercise relates to the information about occupational prestige. Different people are likely
(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
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Copyright © 2017 Pearson Education, Inc.
4. Ask students to find at least two manufacturer’s ads for the same type of product (e.g., clothing,
food product, personal care product, etc.) that they think are aimed at different social classes.
How do these ads differ?
Look for students to relate the elements of the advertisement, including the social environment,
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
5. Ask a student to bring in an ad in which the brand being marketed was at one time a status
symbol, but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste, etc.). Have the
student discuss whether the ad still attempts to create that perception. What new product, if any,
has replaced the featured product as a status symbol?
For a status symbol to distinguish a customer and show s/he has “made it,” it must be exclusive
in some way. Cadillac, for example, hurt its image as a status symbol when it introduced lower
(25 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
6. Have a student interview one or more salespeople from one of the following product categories:
new or used cars, stereo equipment, clothing, insurance, or real estate. Ask the student to
determine the social classes or status of their customers. Does the student recommend that the
sales approach will vary depending on the customer’s social class?
The chapter notes some of the differences in how social class members shop. The student’s
(45 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities)
7. What status symbols motivate you to purchase? Pick an example product and give an illustration.
Student responses will vary. Look for students to explain how owning the product or using the
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
8. How can online marketers use social class in marketing efforts? Give examples of good and bad
usage. Go online to do this if possible.
Students might compare sites that cater to the upper class (e.g. robbreport.com) to sites that cater
9. Ask students to compile a selection of recent ads that attempt to link consumption of a product
with a specific lifestyle. In class, have students demonstrate what they have found. Discuss how
the goal of linking product consumption to a lifestyle is usually accomplished.
There are plenty of brands that use sports sponsorships (e.g. tennis, golf, X-games) to associate
(45 minutes, Chapter Objective 4, AACSB: Reflective Thinking)
10. Ask students to think of a specific lifestyle (your own, your parent’s, your aspirations, etc.) and
then make a list of products and services that are linked in the consumer’s mind to that specific
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Copyright © 2017 Pearson Education, Inc.
lifestyle. (Hint: You might decorate your living room, design a wardrobe, think of options for a
car, etc.)
Student responses will vary. It may be helpful to narrow down the specific task, perhaps using
(30 minutes, Chapter Objective 5, AACSB: Reflective Thinking)
Group Projects
1. Have student groups visit two sections of a community—one where residents are professionals
and businesspeople and one where residents are mostly working class. Ask them to note how the
homes vary in terms of color, architecture, and the general appearance of the lawn and landscape.
Have them check the paper or call a realtor to find the general value of homes in the area. What
types of stores are in the neighborhood and how are they promoted?
Look for students to identify characteristics of the homes and the retailers that serve the
(60 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
2. Ask a group to classify the major retail stores (department and specialty stores) in your
community according to their estimation of the social class of their target market. Have them
explain how the marketing strategy is different for each of the stores profiled.
Look for students’ descriptions of social class to go beyond income and consider education and
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
3. Ask students to make a list of slang terms that are used to disparage social classes. Why are these
terms used? How do marketers disparage or make fun of social classes (which they do not
target)? What is the best way to treat all classes with ethics and dignity?
Slang terms are most likely to apply to upper class and lower class categories. Students should
recognize that marketer efforts to associate with one class often depend on their ability to
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
4. Have your group designate which social class would most accurately describe each member’s
current position. Where do the members expect to be in 5 years with respect to social class? What
differences will occur if the anticipated movement in social class occurs? Discuss the changes in
class.
Many people categorize themselves as middle class, which is one of the issues with
(25 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
5. Assign groups of students to go to an airport (or other location where they will find lots of foot
traffic) to people watch. Have them classify as many people as possible according to social class
based on the appearance and behaviors of individuals. Have the class as a whole discuss their
results. What lessons can be learned from this?
It will be challenging for consumers to determine social class based on the appearance of
individuals. Further, some social classes are not likely to be represented at the airport. Students
(90 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
6. Student groups should identify three examples of lifestyle marketing on the Internet. Have
members of the group demonstrate at least one of these sites in class. Show how the site uses
lifestyles to the organization’s advantage.
Students should select websites that appeal to people with common leisure activities and
(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking)
eLAB
Individual Assignments
1. Go to www.burberry.com. How does this prestige fashion label use social class and status to sell
its products? Comment on their approach. Does this approach make you want to buy such
products? Explain.
Burberry.com uses a distinctive font, color scheme, and music, in addition to highly stylized
photographs of its products. The products are not available to everyone because they use
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
2. Go to www.maxlang.com. How much would you pay for a belt for casual or business wear? How
much does Max Lang charge? Is Max Lang selling belts or status? How can the Max Lang
website overcome problems such as sizing and the desire to personally see prestige products?
What do you think of the organization’s strategy?
Max Lang sells expensive belts and belt buckles, but the website design does not support the
position of Max Lang belts as a status symbol. The website has a toll free number for support.
(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
3. Go to www.hammacher.com. How does Hammacher Schlemmer use prestige and the desire to
be different in its marketing effort? Give illustrations from the company’s website to support your
conclusions. Is this a good strategy for the company to follow? Explain.
Hammacher Schlemmer sells unique merchandise at various price points, but some of the
merchandise is very expensive. Its retail location is three blocks from Bloomingdales in New
York City (on 57th near the cross section with Lexington Avenue), and Bloomingdales is a
high-end department store. The website uses a clean design and features individual, unique
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
4. Go to www.burtsbees.com. How does this site use lifestyle marketing to its advantage? What
lifestyle would be most associated with the products shown on this site? After reading the history
of the founders, how were the founders able to project their own lifestyles into the products
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Copyright © 2017 Pearson Education, Inc.
produced by the company? How could the company expand its sales into other lifestyle
segments?
Burt’s Bees sells natural products. Its products are likely to appeal to people whom value natural
products and the environment. Its founders include their story on the website and on the
packaging for some of the products. Look for students to talk about expansion into other lifestyle
segments in ways that does not alienate the current lifestyle segment.
(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking)
Group Assignments
1. Visit both www.macaronigrill.com and www.dennys.com. Have your group analyze the
approaches that both of these websites have taken to appeal to their target markets. What
elements and cues in these websites reflect the principles contained in this chapter on social
status?
Both companies appeal to the masses, but Macaroni Grill appeals to a slightly higher social
class. Denny’s tends to focus on the quantity of food at a low price point, while Macaroni Grill
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
2. Visit http://www.strategicbusinessinsights.com/vals/presurvey.shtml and complete the VALS
survey. Have your group discuss the questions posed to sort you into categories. Do the questions
assess important attributes for marketers to understand consumer groups? What other information
about lifestyle would you want to know? Develop your own questionnaire.
Teams will have different answers but this is a good exercise for encouraging them to consider
(20 minutes, Chapter Objective 6, AACSB: Reflective Thinking)
12-11
Copyright © 2017 Pearson Education, Inc.