Deck 12: Income, Social Class, and Family Structure

Question 1

Consumer demand for goods and services depends on:

A) target marketing and PR.
B) economics and finance.
C) ability and willingness to buy.
D) the money to buy the product or service.

Answer 1

C

Question 2

Because consumer beliefs about what the future holds is such an important determinant of how much they will pump into the economy when making discretionary purchases, many companies take forecasts about intended spending seriously and have surveys conducted to measure:

A) consumer confidence.
B) economic health.
C) consumer purchase behaviour.
D) discretionary spending.

Answer 2

A

Question 3

Canada is the only G7 nation to have fully recovered in terms of employment and GDP. This has been attributed to:

A) more women entering the work force.
B) growth of computer-related industries.
C) a sound financial system.
D) a growing working immigrant class.

Answer 3

C

Question 4

What are status symbols and what role do they play in a consumer context?

Question 5

What is generally true of consumers in a recession?

A) Everyone suffers and cuts back on spending.
B) The rich suffer as the poor cut back on spending.
C) Many reallocate spending and buy less on credit cards.
D) Everyone cuts back on spending, but only the low-income consumer segments suffer.

Question 6

Spending on ________ can make people happier than spending on ________.

A) material goods; experiences
B) necessities; luxury items
C) experiences; material goods
D) luxury items; experiences

Question 7

Which field of research is concerned with the human side of economic decisions?

A) expectancy theory
B) behavioural economics
C) buyer behaviour
D) consumer economics

Question 8

Which statement reflects the average Canadian's standard of living?

A) It is relatively high by international standards but declining.
B) It is relatively low by international standards and continues to decline.
C) It is moderate by international standards and stable.
D) It is relatively high by international standards and continues to improve.

Question 9

Products that are bought and displayed as markers of social class are called:

A) status symbols.
B) wealth markers.
C) possessions.
D) social symbols.

Question 10

Nearly half the world's population survives on what amount per day?

A) less than $2
B) less than $6
C) less than 20 cents
D) $20

Question 11

What is discretionary income?

Question 12

Which is the fastest-growing segment of working people and what impact are they having?

Question 13

Victor wanted to be able to show Marilyn's parents that he had some money, too, so he wore his best Italian suit and his TAG Heuer watch. They were Victor's way of advertising his achievements. Products used in this way are called:

A) status utilities.
B) fraudulent symbols.
C) social class indicators.
D) status symbols.

Question 14

Consumer confidence refers to how sure consumers feel about their being able to make the right product and brand choices.

Question 15

In 2016, the proportion of Canadian adults aged 25 through 64 who had a college diploma or a university degree was:

A) 35%.
B) 44%.
C) 54%.
D) 65%.

Question 16

Which is the best description of discretionary income?

A) money that the household saves for emergencies and does not spend
B) the money available to a household after tax
C) the total gross income the household has earned
D) the money available to a household over and above that required for a comfortable standard of living

Question 17

Which of the following is true regarding spendthrifts and tightwads?

A) Spendthrifts spend cautiously; tightwads hate spending.
B) Spendthrifts hate spending; tightwads do not spend.
C) Spendthrifts spend occasionally on others; tightwads never spend on others.
D) Spendthrifts spend freely; tightwads hate spending.

Question 18

According to the Conference Board of Canada, one factor that appears to dampen consumer confidence is:

A) exchange rates.
B) increasing gas prices.
C) lowering interest rates.
D) a steady GDP.

Question 19

The reason that people with more money tend to be happier than those with less money is because they:

A) can live out their wildest fantasies.
B) become more satisfied because of the "more" feeling.
C) have fewer problems with debt collectors.
D) can afford the freedom money can buy.

Question 20

The money available to a household over and above that required for a comfortable standard of living is termed:

A) diversion income.
B) discretionary income.
C) consumer income.
D) disposable income.

Question 21

What is consumer confidence and how does it affect spending behaviour?

Question 22

Nick comes from the "other side of the tracks." His father spent all his life in the mine and Nick works as a sanitary engineer. All these factors determine his:

A) social stratification.
B) savings rate.
C) consumer confidence.
D) social class.

Question 23

Universally, people develop a ________ whereby they are ranked in terms of their relative standing in society.

A) ranking order
B) placement order
C) social strata
D) pecking order

Question 24

Which sector of the population is largely responsible for fuelling Japan's luxury-goods spending?

A) single young males
B) single working women
C) young newlyweds
D) wealthy retirees

Question 25

How does consumer optimism or pessimism affect spending?

Question 26

Albert accounts for every penny he spends because he would rather save money than spend it. Doreen, his wife, complains he is a "tightwad." Is she right? Explain.

Question 27

Katrina, a new recruit for Maple Leaf Foods, is promoted very quickly over longer-term employees, and is given a parking space with the company vice presidents. This is an example of:

A) employee discrimination.
B) social stratification.
C) company favouritism.
D) rapid advancement.

Question 28

Canada has a(n) ________ class structure in terms of income distribution and a(n) ________ structure in terms of the groups that occupy the positions.

A) increasing; decreasing
B) stable; changing
C) decreasing; increasing
D) changing; stable

Question 29

How do consumers' beliefs about the state of the economy affect spending patterns?

Question 30

Jackie is a wage earner in her house. Her husband, Ed, also works but is able to take two days off a week to look after their two young preschool children. In Canada, is this a common or unusual scenario?

Question 31

Jack and Jill were married last year. Jack works construction and Jill is a waitress. This is an example of:

A) monogamy.
B) homogamy.
C) ascribed status.
D) achieved status.

Question 32

Which is the primary growing consumer market in the Middle East at present?

A) sports cars
B) menswear fashion
C) designer ladies underwear
D) western luxury brands

Question 33

Johann seemed to have all the luck-some would say that he was "born with a silver spoon in his mouth." This is an example of:

A) prestige status.
B) ascribed status.
C) homogamy.
D) status recognition.

Question 34

According to Karl Marx, the nineteenth-century theorist, a person's position in society was determined by their relationship to what?

A) the socialist government
B) the land
C) the church
D) the means of production

Question 35

The Garrets are a lower-class family and have four children. The Devlins are a middle-class family that has only two children. The fact that the Garrets have more children is an example of:

A) differential fertility.
B) strata ascription.
C) status achievement.
D) distinguishing effects.

Question 36

The most influential and the earliest attempt to describe Canadian class structure was proposed in 1958 by:

A) Richard Coleman.
B) Bernard Blishen.
C) W. Lloyd Warner.
D) George Katona.

Question 37

Miriam comes from a background of old money. How might this affect her spending habits compared to her friend Harry who has recently done well financially?

A) Miriam spends less in general.
B) Miriam doesn't flaunt her consumption.
C) Miriam spends less on small items as she has high property upkeep costs.
D) Miriam needs to show others her wealth in social contexts.

Question 38

Sandra Jackson decided to become a university professor after several years as a doctor. She still wanted to help people; she just wanted to do it differently. Sandra's change in social status is an example of which of the following?

A) downward mobility
B) upward mobility
C) horizontal mobility
D) diagonal mobility

Question 39

Although members of a particular social group carry the same identity of membership, some members are better off, better liked or respected, and have more authority or power than others. The group exhibits:

A) social inequity.
B) a status hierarchy.
C) a "big cheese" structure.
D) intraclass rivalry.

Question 40

The German sociologist Max Weber broke social rankings down into which three types?

A) social honour, power, and wealth and property
B) social honour, personal honour, and material honour
C) class, wealth, and personality
D) family background, power and wealth, and property

Question 41

Explain the term "social class" and how it affects people.

Question 42

In China, an economic decline is rapidly decreasing the size of the middle-class segment.

Question 43

Social mobility refers only to upward social class movement.

Question 44

There is no evidence of a pecking order for people.

Question 45

Is there a universal social class concept?

Question 46

Compare achieved and ascribed status with an example.

Question 47

Basically, the concept of stratification of the society is a universal phenomenon.

Question 48

Describe the concepts of social stratification and how it relates to achieved and ascribed status.

Question 49

The biggest emerging consumer market at present is known by its acronym BRIC. What does it stand for?

A) Big, Rich, Industrial Consumers
B) Brazil, Russia, India, China
C) Booming, Rich, Independent Children
D) Bolivia, Russia, Italy, China

Question 50

Young, lower-class men and women who mix track suits with flashy brands and accessories from big names such as Burberry have become known as what in the UK?

A) blingsters
B) ritchies
C) chavs
D) rads

Question 51

In the Middle East, women with money tend to seek out the latest in Western luxury brands.

Question 52

People within the same social class tend to have similar lifestyles by virtue of their income levels and common tastes.

Question 53

Achieved status is acknowledged when an individual obtains material wealth by some unusual good fortune, like winning the lottery.

Question 54

Because a person's occupation tends to be strongly linked to his or her use of leisure time, allocation of family resources, political orientation, and so on, this variable is often considered to be the single best indicator of social class.

Question 55

Samuel would like to use occupational prestige to measure social class, but his study is international, and the prestige of occupations changes from one culture to the next.

Question 56

Social mobility is possible in almost any society if the person possesses something that the culture highly values.

Question 57

The concept of social class has been valuable in marketing because it tells researchers how money is spent. Unfortunately, however, social class has failed to tell marketers how much money will be spent within each class.

Question 58

Briefly explain the three types of social mobility.

Question 59

What is social stratification?

Question 60

The millions of consumers around the world who can now afford higher-quality products are referred to as belonging to the:

A) global middle class.
B) mobile class.
C) swing class.
D) mass class.

Question 61

Mary is a doctor. Mike is a garbage collector. How would we define them in terms of occupational prestige? How does this relate to their social class?

Question 62

How does social class relate to consumer behaviour in the Middle East?

Question 63

Veronica recently bought a new high-end BMW. One of the reasons she purchased it was because she knew other people in her neighbourhood would be jealous of her. For Veronica, the role of the BMW was:

A) individual distinguishing.
B) integrated status.
C) invidious distinction.
D) inspired differentiation.

Question 64

The proliferation of inexpensive counterfeit products threatens to diminish the value of some status symbols. One coping strategy is to disguise the item in the belief that truly high-status people do not need to display expensive logos. This is known as:

A) conspicuous consumption.
B) unbranding.
C) abranding.
D) reclamation.

Question 65

Joshua was born into a wealthy family and never had to work in his life. He eventually became bored with his life and went looking for a job to keep him busy. His parents were very angry with him and would not speak to him. Joshua could be categorized as belonging to the:

A) invidious class.
B) conspicuous class.
C) middle class.
D) leisure class.

Question 66

How does social class differ across different cultures?

Question 67

When Otis visited Toronto, he watched CNN on TV in his hotel and went to hear the symphony orchestra. Most likely he belongs to:

A) the upper or upper-middle class.
B) the upper class.
C) the middle class.
D) the middle or working class.

Question 68

Strategic Business Insights, the research firm that developed VALS, divides consumers into three groups on the basis of their attitudes toward luxury. Those groups are:

A) functional, reward, and indulgence.
B) tangible, experiential, and necessity.
C) fashion, entertainment, and travel.
D) functional, experiential, and whimsical.

Question 69

How does social class relate to consumer behaviour in China?

Question 70

What are the major components of social class?

Question 71

What modern Canadian ceremony would come closest in intent to a Native American potlatch?

A) a baptism
B) a marriage
C) a university graduation
D) a rock concert

Question 72

In general, working class people focus more on ________ needs while higher classes focus more on ________ needs.

A) immediate; long-term
B) critical; luxury
C) family; personal
D) functional; indulgent

Question 73

One study on social class looked at how it relates to consumers' feelings of empowerment. Those who feel they are at the mercy of their economic situations were called:

A) potent non-actors.
B) potent actors.
C) disempowered non-reactors.
D) impotent reactors.

Question 74

How might Qin Yao's lifestyle and spending habits differ from Charlene's? Charlene lives in a middle-class household in Toronto, Canada, and Qin Yao lives in a middle-class household in Shanghai, China.

Question 75

The proliferation of inexpensive counterfeit products threatens to diminish the value of some status symbols. One coping strategy is to stop using the brand because they don't want to be mislabelled as a lesser-status person who buys fake brands. This is known as:

A) abranding.
B) reclamation.
C) flight.
D) avoidance.

Question 76

Miguel has worked very hard over the past ten years and has reaped the rewards of his labours by being named company president (salary $200 000/yr.) However, even after his newfound wealth, he is unhappy. This condition is known as:

A) achievement dysfunction.
B) affluenza.
C) acquired deficiency.
D) depressive anxiety.

Question 77

The Bartons threw a massive birthday party for their youngest daughter. They decorated the event like a carnival, hired a clown, had a huge balloon drop, and even brought in an elephant for three hours. The Bartons' behaviour is an example of:

A) affluenza.
B) trickle-down theory.
C) conspicuous consumption.
D) conspicuous waste.

Question 78

How does social class relate to consumer behaviour in Japan?

Question 79

Consumers who are "in the know" about valued status symbols may switch gears and deliberately seek to mock the prizing of such status symbols by avoiding them, for example, by wearing torn blue jeans, a form of consumption called:

A) ironic mimicry.
B) fraudulent flattery.
C) parody display.
D) counterfeit consumption.

Question 80

The concept of the potlatch, the extravagant feast and display and often even the destruction of wealth or possessions (to show that one can afford to) characteristic of the Kwakiutl Indians of the Pacific Northwest, is analogous to the modern concept of:

A) conspicuous consumption.
B) social class.
C) the idle rich.
D) reciprocal demand theory.