Chapter 13: Social Class and Household Influencess
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CHAPTER 13
Household and Social Class Influences
CHAPTER SUMMARY
Individuals in a society can be grouped into status levels (upper, middle, and lower), making
up a social class hierarchy. Class distinctions are significant because members of a particular
class share common life experiences and therefore values and consumer behavior patterns,
although many variations occur within groups. Individuals are most likely to be influenced by
members of their own class because they regularly interact with them. Still, influence can
cross class lines through the trickle-down effect (when lower classes copy upper-class values
and behavior) or the status float effect (when trends start in the lower classes and spread
upward).
A variety of factors determine social class, the most critical of which are occupation and
education. Researchers use a battery of items, such as the Computerized Status Index, to
measure social class. Three major trends producing an evolution in social class structure are
upward mobility, downward mobility, and social class fragmentation. Social class influences
consumer behavior in three major ways: (1) through conspicuous consumption, the acquisition
and display of status symbol offerings to demonstrate social standing; (2) through
compensatory consumption, trying to offset some deficiency by engaging in greater-than–
usual consumption; and (3) through the meaning of money.
Households include both families and unrelated people living together, as well as singles. The
proportion of nontraditional households has increased because of factors such as (1) later
marriages, (2) cohabitation, (3) dual-career families, (4) divorce, and (5) smaller families.
Households exert considerable influence on acquisition and consumption patterns. Members
can play different roles in the decision process (gatekeeper, influencer, decider, buyer, and
user). Also, husbands and wives vary in their influence in the decision process, depending on
whether the situation is husband dominant, wife dominant, autonomic, or syncratic. Children
can influence the decision process by making requests of parents. The nature of this influence
partly depends on whether the household is authoritarian, neglectful, democratic, or
permissive. In general, the older the child, the greater the influence.
CHAPTER LEARNING OBJECTIVES
After studying this chapter, you will be able to
1. Describe the various types of households and families, and explain how the family life
cycle and other forces affect household structure.
2. Discuss the roles that household members play in acquisition and consumption decisions,
and how companies can build on these roles to market more effectively.
3. Outline the social class hierarchy and the major determinants of social class standing, and
show how social class changes over time.
4. Explain how social class influences consumer behavior and why these influences are
considerations when marketers plan strategy and tactics.
5. Describe the consumption patterns of specific social classes and the implications for
marketers.
CHAPTER OUTLINE
I. How the Household Influences CB
Chapter 13: Household and Social Class and Household Influences
A. Types of Households
1. Family- A family is usually defined as a group of individuals living together who
are related by marriage, blood, or adoption; Nuclear Family- Mother, Father,
Children; the most typical unit
2. Extended Family- nuclear plus aunts, uncles, grandparents, cousins, nieces
3. Household-includes a single person or a group of nonrelated people living
together.
a) Cohabiting couples—an unmarried male and female living together.
b) Gay couples
c) Roommates
d) Single-parent households
e) Boomerang children (come back home after college)
4. Cohabitation
a) opposite-sex U.S. Households; more than half have never been married.
b) Compared to married couples, cohabitating individuals tend to be self-
oriented.
c) Many view themselves as having individual possessions vs. shared.
d) Many unmarried partners share expenses.
e) They consume more entertainment, transportation, and vacations vs.
married couples.
B. Households and Family Life Cycle
1. Households differ in the family life cycle. It is different stages of family life,
depending on the age of the parents and how many children are living at
home.
2. Marketers consider the great variation in needs depending on the FLC.
3. Bachelor stage (young and single), through marriage and having children, to
being older couple without children. Factors such as death and divorce can
alter household structure.
3. Marketers must consider the variation of needs over the family life cycle and
the effect on consumer behavior within households. Generally, spending
increases in households when couples marry and decreases when families
become older, single households.
4. What families purchase also changes—new parents spend more money on
health care, clothing and furnishings, housing, and food; they spend less on
alcohol, transportation and education.
5. As families grow, they spend more on housing, furnishings, childcare, and
related household services.
6. Young empty nesters spend more on vehicles and clothing.
7. Older single householders and couples spend more on home-based products,
health care, and travel.
8. Family in the midst of a life cycle change are more likely to switch brand
preferences and be more receptive to marketing efforts.
9. Same-sex couples (gays and lesbians) are relatively affluent and highly
educated.
C. Changing Trends in Household Structure
1. Delayed marriage cohabitation.
a) Many are waiting to raise a family while establishing a career. It is not as
common anymore to get married right after high school or college. More
people are living together before marriage.
b) Average age of marriage is 28 for men and 26 for women.
Chapter 13: Household and Social Class and Household Influences
a) Boomer and Xer couples are having fewer children because of dual
careers, financial burdens, and concern for overpopulation—some
couples believe having more than two children is socially irresponsible.
b) Average household in the U.S. consists of 3.14 people.
c) More discretionary income to spend on recreational items, vacations,
education, toys, and entertainment.
d) Can spend more money per child. This is seen in Japan, where families
are spending more money on education, activities, and clothing.
e) Childless married couples are one of the fastest growing types of
households. They tend to have more discretionary income than other
households.
f) Compared to couples with children, childless couples spend more on
food, restaurant meals, entertainment, liquor, clothing, and pets.
5. Same-Sex and Transgender Households
a) More than 645,000 same-sex HH in the US
b) States can not deny marriage licenses to gay or lesbian couples
c) Marriage is rising for gay or lesbian couples as a result of the Supreme Court case
(2015) in the US
d) Some companies are explicitly catering to these consumers (e.g., Las Vegas visitors
authority does ads welcoming same-sex couples to come get married in Vegas).
D. Marketing Implications
1. Products can be targeted to dual-income households—such as maid services
or products to help a family juggle schedules.
2. Marketers target same sex couples via sponsoring gay pride festivals, etc.
3. Working wives may split traditional “woman’s duties” such as cleaning, etc.
4. There is a unique consumption pattern of single households
a) Single men spend more on alcohol, new cars, clothes, and education than
married men. They are more likely than married men to give gifts of
jewelry, watches, and clothes.
b) Single women spend more on new cars, shoes, entertainment, candy,
and housing (to live in a safe area). They are more likely than married
women to give gifts of housewares and small appliances.
c) Singles in general have more discretionary income and therefore can
spend more than couples of the same social class and economic level.
5. Same-sex couples often have more egalitarian decision-making than traditional
households where a woman or man has a dominant role in purchasing power
II. Roles that Household Members Play
A. Types of Roles
1. Household decision roles are roles that different members play in a household
decision.
2. Instrumental roles relate to tasks affecting the buying decision.
3. Expressive roles involve an indication of family norms.
4. Types of roles:
-Gatekeeper. Household members who collect and control information important to
the decision.
-Influencer. Household members who try to express their opinions and influence the
decision.
-Decider. The person or persons who actually determine which product or service
will be chosen.
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-Buyer. The household member who physically acquires the product or service.
-User. The household members who consume the product.
B. The Role of Spouses
1. Husband-dominant decision is made primarily by the male (e.g., lawnmower)
2. Wife-dominant decision is made predominantly by the female head of
household.
3. An autonomic decision is equally likely to be made by either party but not both.
4. A syncratic decision is made jointly by the husband and wife.
5. an households stress obedience, and this determines the child’s obedience.
6. Conflict occurs when one partner is a spender and the other is a saver.
C. The Role of Children
1. Children influence (or attempt to) their parents buying and disposition.
2. Children overestimate how much influence they have in most decisions.
3. Children may bargain, persuade, use emotional appeals, and request.
D. Marketing Implications
1. Marketers appeal to deciders usually, but should appeal to others, such as
persuaders.
2. Companies target mothers by using mommy bloggers.
3. More children are online, so children game sites featuring products are a rising
trend.
III. Social Class
1. Types of Social Class Systems
a) Most societies have high, middle, and low class hierarchy.
b) The US breaks it down further, into 7 subclasses (upper-upper, lower-
upper, upper-middle, middle class, working class, and lower Americans
and lower-lower.
c) Up to 70% of population in US is in middle classes
1. Social Class Influences
a) Trickle down effect: trends that start in the upper classes and are copied by
lower classes. Example: large sunglasses
b) Status float: whereby trends start in the lower or middle classes and spread
upward. Example: high-top sneakers
3. How Social Class is Determined
-Income vs. Social Class
a) Income is weakly related to social class.
b) Most overlap is in the middle and lower levels.
c) Social class can explain how income is used
-Occupation and Education
a) The greatest determinant of class standing is occupation, particularly in
Western cultures.
b) Education, skill or training is critical because it often determines their type
of occupation.
c) Educational attainment is considered the most reliable determinate of a
consumer’s income potential and spending patterns.
d) Published scales of occupational prestige include the socioeconomic
index (SEC) and the Nam and Powers Scale.
-Other Indicators of Social Class
a) Area of residence
b) Possessions
c) Family background
Chapter 13: Household and Social Class and Household Influences
d) Social interactions
e) Inherited status (derived from parents at birth)
f) Earned status (acquired from personal achievements)
-Social Class Indexes
a) Index of Status Characteristics
b) Index of Social Position
c) Computerized Status Index (CSI)
d) Status crystallization occurs when consumers are consistent across the
various dimensions and social class is easy to determine.
IV. How Social Class Changes Over Time
A. Upward Mobility
1. Individuals rise to a higher level of status.
2. Usually achieved by educational or occupational achievement
B. Downward Mobility
1. Individuals move to a lower class and lose social standing.
2. Increasing trend in many industrialized countries
3. Usually caused by loss of job or inflation
4. Status panic occurs when children cannot maintain the same status level as
their parents.
C. Social Class Fragmentation
1. Old social class distinctions are beginning to disintegrate.
2. Upward and downward mobility have blurred class divisions.
3. Mass media have exposed consumers to norms and values of other classes.
4. Advances in communication technology have increased interaction across
social class lines.
V. How Does Social Class Affect Consumption?
A. Conspicuous Consumption and Voluntary Simplicity
1. The acquisition and visible display of luxury goods and services to
demonstrate one’s ability to afford them
2. Occurs with different items across all social classes
3. Conspicuous waste occurs when wealthy individuals buy products that are
never used.
4. Voluntary simplicity is limiting acquisition/consumption for a less material life.
B. Status Symbols
1. Status symbols indicate their owners’ place in the social hierarchy.
2. Parody display—occurs when status symbols move in a reverse way
3. Fraudulent symbols—occurs when status symbols become widely possessed
and lose their status connotations
C. Compensatory Consumption
1. An attempt to offset deficiencies or a lack of esteem by devoting attention to
consumption.
D. The Meaning of Money
1. Goes beyond the utilitarian level and comes to symbolize security, power, love,
and freedom.
2. Money as Both Good and Evil
a) Money can lead to a higher quality of life and the ability to help others, or
to harmful practices and negative emotions.
3. Money and Happiness
a) The endless pursuit of money does not always result in fulfilled dreams.
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b) After some people acquire tremendous wealth, money can become
meaningless and no longer highly desired.
c) Money cannot buy love, health, true friendship, and children, among other
things.
4. Marketing Implications
a) Tapping into the desire for visible signs of upward mobility can be
effective in marketing some products.
b) The use of credit and debit cards is rising in many nations, creating
opportunities and challenges.
VI. The Consumption Patterns of Specific Social Classes
A. The Upper Class
1. In most societies, the upper class is a small group consisting of the aristocracy,
the new social elite (nouveaux riches) and the upper-middle class
(professionals).
2. Likely to view themselves as intellectual, liberal, political, and socially
conscious
3. Attend cultural events, travel, invest in art, and donate to causes
4. More likely to judge products based on attribute other than price.
5. Nouveaux riches are upper-class consumers who have acquired a great deal
of status and wealth in their own lifetimes and often like to collect items that are
symbols of that status and wealth.
6. Most millionaires do not fit the stereotype of owning stately mansions
7. A third of all millionaires are under the age of forty.
B. The Middle Class
1. The US middle class consists primarily of white-collar workers, many of whom
have a college degree.
2. The middle class tends to look to the upper class for guidance.
C. The Working Class
1. Mainly represented by blue-collar workers
2. Heavy dependence on family members for economic and social support
3. More locally oriented socially, psychologically, and geographically than other
classes
4. More likely to spend than save
5. More likely to judge product quality on the basis of price
D. The Homeless (750,000 people are homeless in the US on average)
1. At the low end of the social class hierarch are the homeless who lack shelter
and live on the streets or in makeshift structures, cars, or vacant houses
2. Reasons include unemployment (or underemployment), release from mental
institutions, drug addiction, lack of low-cost housing.
3. Struggle for survival, including scavenging, finding goods that have been either
used or partially used and discarded by other individuals or institutions
4. Items are consumed to their maximum and are discarded only if they have
absolutely no further use.
5. Secondhand consumers who consume what others have disposed of.
E. Marketing Implications
1. Social classes can serve as a way of segmenting the market.
2. Product or Service Development
a) Social class motives and values can determine which products or
services consumers’ desire.
b) Marketers can appeal to consumers’ aspirations for upward mobility.
3. Messages
Chapter 13: Household and Social Class and Household Influences
a) Advertising and personal selling messages can be designed to appeal to
different social classes.
b) Advertisements to upper class might suggest “Pamper yourself, you
deserve it.”
4. Media Exposure
a) Classes differ in their exposure to media, with upper classes reading
newspapers and magazines and lower classes watching TV.
5. Channel Selection
a) Certain channel members are designed to appeal to and pamper the
upper class.
b) Mass merchandisers and discount stores are successful when targeting
the working class.
6. Note of Caution
a) Difficulties in using social class as segmentation variable
(1). Varieties of factors affect social classes, making it difficult to
measure.
(2). Due to social class fragmentation, traditional social class distinctions
may be becoming too broad to be useful.
QUESTIONS FOR REVIEW AND DISCUSSION
Possible answers are as follows:
1. Define the terms nuclear family, extended family, and household.
A nuclear family is the core; it is the father, mother and children. Some families
2. What five key factors have altered the basic structure and characteristics of
households?
1. Delayed marriage age and cohabitation. People are getting
married at an older age (e.g., to start their career and save
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raise many children when both parents work.
5. Same-sex couples. There are about 645,000 same-sex
households, conservatively. This includes relationships
and partnerships (e.g., a lesbian couple), and many more
states are considering legal marriages among same-sex
couples.
3. What five roles might a household member perform in acquiring and consuming
something?
4. What is the social class hierarchy?
classes.
5. What are the determinants of social class?
The classes depend on occupation, education, income, and inherited vs.
6. Why is social class fragmentation taking place?
Social class fragmentation is the disappearance of class distinctions. They are
7. Why would a consumer engage in conspicuous consumption, conspicuous waste,
Chapter 13: Household and Social Class and Household Influences
or voluntary simplicity?
Conspicuous consumption is to show a brand, or attributes of the brand that go
along with a self schema, or one in which a consumer is proud of and wants
8. How does parody display differ from status symbols?
someone’s social class standing.
9. Under what circumstances does compensatory consumption occur?
10. Why might a company develop different offerings for consumers in different social
classes?
Companies develop different offerings because upper class consumers may want
SUGGESTED EXERCISES AND TEACHER GUIDELINES
1. Design a battery of questions to measure social class standing. Make sure to include all
the determinants of social class. In addition, pick one product and one service that you
think will vary across social class in terms of consumer behavior and develop a series of
questions to measure the acquisition and consumption of this product and service (i.e.,
how much time is spent, what information is collected, where it is purchased, what
brands are considered and selected, and so on). Administer this questionnaire to at least
15 consumers who represent the range of social classes, and divide the respondents into
three major groups (upper, middle, and lower class). Summarize how the three groups
vary in terms of consumption behavior for both the product and service.
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The key component to this question is to remind students that social-class standing and
2. A travel service has hired you to develop a marketing strategy for a vacation package.
The company wants to offer different packages to different social classes. Develop a
complete package and marketing strategy for each of the following: the upper class, the
middle class, and the working class. Be sure to discuss (1) services offered (including
destination, accommodations, and so on), (2) pricing, (3) the advertising message, and
(4) media targeting. Summarize the key differences among the three marketing
strategies.
3. Pick three products and services that households consume. Conduct an interview of
individuals from five families, and ask them to provide a thorough description of the
processes used to acquire, consume, and dispose of these products or services.
Summarize this information by answering the following questions: (a) Which specific
roles do household members play in the decision process? (b) What is the nature of
husband-wife interaction in the decision? (c) Which role do children play in the process?
(d) How do household consumption patterns for these products and services differ from
individual consumption patterns? (e) Who disposes of the products and services and
why?
ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS
These discussion questions can be used as in-class activities or as thought questions that the
students consider while reading the chapter or to test their understanding of the material after
the reading and lecture are complete.
1. Explain the ways in which social class and income can serve as predictors of
consumption.
2. Explain the four ways that social class can affect consumption.
Chapter 13: Household and Social Class and Household Influences
Social class can affect consumption in the following four ways: (a) conspicuous
consumption, (b) acquisition of status symbols, (c) compensatory consumption, and (d)
the meaning of money.
a. Individuals often judge others based on their possessions. Conspicuous
b. Closely related to conspicuous consumption are status symbols. These symbols are
representations of a person’s social status or aspirational social status. For
possess these symbols.
c. Compensatory consumption is the act of buying a greater number of products or
d. The final way that social class affects consumers is through the meaning of money.
Money’s meaning extends beyond its functional purpose to symbolize freedom,
3. What roles do the members of your household play in acquisition, consumption and
disposition decisions? Give examples of ways in which they perform these roles.
I live with two roommates. We recently signed a lease on a condominium. My
roommate Jane was about to lose her current living arrangement, so she started
ADDITIONAL QUESTIONS
1. Working together, develop a definition of social class. Discuss the role that social class
plays in society and how it influences behavior.
2. Discuss the positive and negative aspects of social class.
Chapter 13: Household and Social Class and Household Influences
Give each group the homework assignment of drawing a portrait—on poster board large
enough to be displayed at the front of the class—of a family from that social class or sub-
group. The portrait, which must be graphical (i.e., handmade drawings or pictures clipped
from magazines and other sources), should at a minimum include the members’ clothing,
food, leisure-time activities, automobile, and prized possessions. Posters should not
2. Jeopardy
Break the classroom into groups. Have the groups elect a team captain who is
responsible for answering questions. Prior to class, create twenty questions from the
chapter that can be answered by the groups with the help of the textbook. Following the
3. “Venus and Mars” Exercise
Separate the class into groups of four or five individuals of the same sex. Tell the women
that they are to assume they are men who need to select a gift for their girlfriends. Tell
the men that they are to assume they are women who need to select a gift for their
4. “Time to Decide” Exercise
Tell students to assume that they have graduated, have accepted a job with a company
in another state, and now must choose a place to live. They know what they are looking
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VACANCIES
Apartment A: Autumn Chase
Apartment B: Cedar Run
Two bedrooms
Two bedrooms
Living room, kitchen/dining room
combination
Living room, kitchen, separate dining
room
No microwave
Microwave in kitchen
1 bath
1 bath
Blue color scheme
Lime green color scheme
Outdoor pool, plenty of laundry facilities
Indoor and outdoor pools, plenty of
laundry facilities
Upstairs unit (senior-citizen couple lives
downstairs)
Upstairs unit (manager lives downstairs)
Rent $595/month
Rent $500/month
5 minutes from work
15 minutes from work
Lots of single neighbors
Few single neighbors
Grocery store 2 blocks away; other
shopping 10 minutes away
Grocery store, other shopping 15 minutes
away
Fishing pond with ducks on beautifully
landscaped property
Married coworker lives in complex
Covered parking
Sliding glass doors to patio off living room
Apartment C: Meadow View
Two bedrooms
Living room, kitchen, separate dining
room
1 ½ baths
Microwave in kitchen
Beige color scheme
No pool, limited laundry facilities
Townhouse-style layout
Rent $440/month
22 minutes from work
Few single neighbors, college students
Shops, theater around corner, grocery
store 12 minutes away
Nice view from upstairs
Close to synagogue/church of your
denomination
Record on the chalkboard the names of students who selected A vs. B vs. C and discuss
the reasons for their choices and the processes they used to arrive at them. After a
Ideal Apartment
Two bedrooms
Living room, kitchen, separate dining room
(you often entertain)
1 ½ baths
Microwave in kitchen
Beige color scheme
Pool and laundry facilities
Townhouse-style layout (bedrooms
upstairs, living area downstairs)
Rent of no more than $550/month
(preferably less, given your financial
condition)
Chapter 13: Household and Social Class and Household Influences
Within 15 minutes from work
Lots of single neighbors, college students
Close to grocery stores and other
shopping
CLASSROOM GROUP ACTIVITY: SOCIAL CLASS ANALYSIS: 20
MINUTES
I. Start Up
A. Purpose of the activity
1. This activity will give students an opportunity to use the concepts related to
social class in a brief classroom exercise.
B. What the instructor will do
1. The instructor will divide people into small groups, assign them a social class
and a brand for consideration, and be available to coach and help the groups
as needed.
C. What the participants will do
1. The participants will work in small groups to brainstorm ideas for applying
concepts from the chapter to specific brands. After a period of small-group
discussion, they will make reports to the large group.
D. Rules for this experience
1. Groups are to work separately from each other. Individuals should rely on their
knowledge from the book and may refer to their notes and the book as
necessary.
II. Experience
A. Group up.
1. Have students form groups of no more than five. This exercise will work in
groups of any size; however, room restrictions that do not allow for moving
furniture may make group work more difficult.
B. Assign social classes and brands to groups.
1. Each group should be assigned a social class (upper, middle, lower) on which
to focus its discussion.
2. Assign each group a brand to be targeted toward the social class.
a) Consider using local brands, including both products and services.
b) Consider using brands that are not the leaders in their categories (i.e., not
Coca-Cola or McDonald’s).
c) Consider bringing samples of the brands to the class for students to study
and review in their groups (e.g., a box of crackers, a candy bar, a cola
can).
C. Specific actions for groups
1. The groups are responsible for analyzing the social class they have been
assigned. Then they are to consider how the brand they have been assigned
can be targeted to the social class they have been assigned.
a) What are the basic characteristics of the (upper, middle, lower) class?
b) How might the product you have been assigned be targeted toward the
class you are considering?
c) How would this group’s consumption of this product be different from that
of other social classes?
2. Large-group discussions
a) First have groups present their ideas about the first question, then
proceed to discuss each of the subsequent questions.
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b) If there are many groups, share the discussion among all groups, though
not all groups may answer all of the questions.
III. Debrief and Unveil Concepts.
A. Discuss the activity itself.
1. The purpose of this discussion is to allow students to express what they felt
about the experience itself.
2. Ask students to describe their experiences of doing the activity.
a) Likes and dislikes about what just happened
b) How they felt during the experience
c) What is realistic, unrealistic about the exercise
d) What will be different when they do this for their own brand
B. Discuss the content of the experience.
1. The purpose of this discussion is to ensure that students “take away” important
learning points.
2. Ask students to describe the important points the experience teaches.
a) The role of social class in society and in the consumer experience
b) The organization’s responsibility to consider the role of social class with
respect to its offering
3. Use the chalkboard to record student responses.
a) Write down their ideas as they are presented.
b) Concentrate on the principles being discussed rather than the examples
being used.
c) Help them to see the interrelationships among their responses.
IV. Execute
A. Apply what has been learned.
1. Lead a discussion on how the concepts can be applied in organizations.
a) What barriers may be faced in applying the concepts from the exercise?
b) What can be done to help others understand the concepts when you use
them at work?
B. Transfer and use the knowledge.
1. Encourage students to make a record in their notes about how they will use the
ideas in the workplace.
2. Even if they do not have a specific job, how will they remember to use what
they have learned?