Exam 12: Social Class and Lifestyles

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Explain how the relationship between England's class structure and consumption has recently begun to change.

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England has traditionally been an extremely class-conscious country, with inherited position and family background largely predetermining consumption patterns. Members of the upper class attended elite schools such as Eton and Oxford and spoke with an accent distinct from that heard from members of the middle and lower classes. However, the supremacy of inherited wealth has recently faded in England as British entrepreneurs redefine the economy. The recession has also brought about a new emphasis on frugality, altering the consumption patterns across all classes.

Some theorists do not include income in their measure of social class, arguing that it is unnecessary. Defend this point of view and also explain why income is added when measuring social class in marketing.

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According to the text, social class has two major components: occupation prestige and income. Income by itself is not a good predictor of social class. The terms overprivileged and underprivileged are used to explain how income does not adequately explain the behavioral differences between the classes. Income, in fact, can be seen as a result of occupation and education. Income can be seen as a result of class rather than a cause of class differences.
As pointed out in the text, there is an interrelationship between income and social class in how customers relate to a number of product categories, meaning that a business must know both to successfully market a number of products.

The prestige of occupations varies dramatically from one culture to the next.

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Mothers with preschool children are the fastest-growing segment of working people.

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For the most part, many marketers fail to use social-class information as effectively as they could. List five reasons why this failure might occur. Be specific.

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Amos always felt that it was unfair that society created artificial divisions that discouraged him from having friends from different social structures. Which of the following terms describes the process that Amos is having difficulty with?

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Eddie just bought a vintage Prowler. He can hardly wait to have the guys at the office drool when they see him drive up in this extremely expensive purple "hot rod." Eddie's reason for purchase falls into the category described by Thorstein Veblen as invidious distinction.

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Describe the concepts of social stratification and compare and contrast achieved and ascribed status.

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Consumers use a set of products called a(n) ________ to define, communicate, and perform social roles.

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Measures of consumer confidence can help marketers predict how much money consumers will pump into the economy through discretionary purchases.

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Characterize how Japanese social class structure relates to the goods and services purchased by Japanese consumers.

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Harry was the lead singer in a band that hit it big. For his birthday, Harry had two hundred friends flown in chartered jets to a private island in the South Pacific. They ate the most expensive food, and every morning the bungalows were burned to the ground and rebuilt for the next night. Harry's party is a good example of ________.

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Sixteen-year-old Michael wanted a car. One evening while his father was paying bills, Michael looked over his father's shoulder and saw how much money had been placed in the checking account. He whistled. "I thought you said that you didn't have enough money to buy me a used car. In just one month you could buy me the car I want." Michael's father then gave him a lecture on the differences between income and what is left after money is spent on utilities, mortgages, insurance premiums, and food. "Total income," his father said, "is not the same as ________ income, the source from which your unnecessary car would have to come."

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A person in the middle class, but with an income at least 15 percent lower than the median for the middle class, would be known as a(n) ________ consumer.

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Richard worked very hard on his grades and worked after school part time to be able to afford tutors to help him advance his education. When he was named number one in his class, he earned a certain status. The best term to describe the form of status that Richard earned is ________.

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Which of the following is NOT a reason cited by your text that marketers have failed to use social class information as effectively as they could?

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Which of the following questions would be LEAST likely to appear on a questionnaire designed to determine consumer confidence?

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According to the class structure outlined in the text, most business managers and university professors would be in the ________ class.

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Fred Johnson has worked hard all of his life to make a decent living for himself and his family. However, in recent years he has become obsessed with a fear of being ruined, either because of losing his job or losing all of his savings. According to clinical psychologists, Fred Johnson's fear of being ruined is equated to which of the following phobias?

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Which of the following refers to consumers who refuse to sacrifice style but who achieve that style on a budget?

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