Deck 12: Income and Social Class

Question 1

The average Australian's standard of living continues to improve.These income shifts are linked to two key factors: ________.

A) a shift from blue-collar to white-collar employment and the increased use of personal computers
B) increasing immigration to Australia and increasing development of technical skills
C) a shift in women's roles and increases in educational attainment
D) a shift in population from the elderly to the young and advances in human rights

Answer 1

C

Question 2

________ refers to the passage of individuals from one social class to another.

A) Status crystallisation
B) Social affinity
C) Social mobility
D) Social stratification

Answer 2

C

Question 3

Sandra Jackson decided to become a nurse after several years as a primary school teacher.She still wanted to help people; she just wanted to do it differently.Sandra's case is an example of which of the following?

A) Downward mobility
B) Upward mobility
C) Horizontal mobility
D) Status crystallisation

Answer 3

C

Question 4

We tend to marry people in a similar social class to our own.Sociologists call this ________,or assortative mating.

A) marriage complementarity
B) homogamy
C) monogamy
D) status crystallisation

Question 5

________ income is the money available to a household over and above that required for a comfortable standard of living.

A) Capital
B) Discretionary
C) Net
D) Invidious

Question 6

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

A) Spendthrifts
B) Frugalistas
C) Ostriches
D) Tightwads

Question 7

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?

A) Atephobia
B) Harpaxophia
C) Peniaphobia
D) Aurophobia

Question 8

Social class is a strong predictor of purchases that have symbolic aspects,but low to moderate prices.Which of the following is the best example of a product with these characteristics?

A) Liquor
B) Cars
C) Homes
D) Refrigerators

Question 9

The phenomenon called ________ refers to the creation of artificial divisions in a society.

A) reference group affiliation
B) ascribed status
C) mass class
D) social stratification

Question 10

Which of the following theorists is best known for arguing that an individual's relationship to the means of production determines his position in society?

A) Karl Marx
B) Max Weber
C) Horatio Alger
D) Thorstein Veblen

Question 11

The term affluenza refers to ________.

A) members of the lower-middle class who are struggling to make ends meet
B) tightwads who are reluctant to spend money on anything but the most basic of necessities
C) scrimpers who have traded down to less expensive brands to save money
D) well-off consumers who are stressed or unhappy despite or even because of their wealth

Question 12

A person who receives rewards and status because of his hard work is said to have ________ status.

A) ascribed
B) hierarchical
C) achieved
D) longitudinal

Question 13

The hundreds of millions of consumers around the world who can now afford higher quality products belong to the ________.

A) prestige class
B) mobile demanders
C) ruling class
D) mass class

Question 14

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

A) "Would you say that you and your family are better off or worse off financially than a year ago?"
B) "Will you be better off or worse off a year from now?"
C) "Are you happy with your wife (husband)?"
D) "Do you plan to buy a car in the next year?"

Question 15

Consumers who are ________ love buying everything in sight.

A) tightwads
B) price-sensitive affluents
C) spendthrifts
D) socially stratified

Question 16

With respect to social organisation,some barnyard animals exhibit signs of a dominance-submission hierarchy.Which of the following terms best communicates such a hierarchy?

A) Dog-eat-dog
B) Pecking order
C) Follow-the-leader
D) King-of-the-hill

Question 17

According to a classic view of the Australian class structure,the newer social elites,drawn from current professionals,belong to which of the following social class categories?

A) Lower-Upper
B) Upper-Upper
C) Upper-Middle
D) Lower-Middle

Question 18

The field of ________ is concerned with the 'human' side of economic decisions (including biases in decision making).

A) clinical psychology
B) microeconomics
C) macroeconomics
D) behavioural economics

Question 19

Most groups exhibit a structure called a ________ in which some members are somehow better off than others.

A) status hierarchy
B) social array
C) social mobility
D) symbolic reference

Question 20

A person who is born into a rich,powerful family (i.e.,'she was born with a silver spoon in her mouth')is said to have ________ status.

A) ascribed
B) hierarchical
C) achieved
D) longitudinal

Question 21

________ are wealthy individuals who are likely to suffer from status anxiety,trying to display symbols of their success to make up for an internal lack of assurance about the 'correct' way to behave.

A) Old money consumers
B) The working wealthy
C) The nouveau riche
D) Typical millionaires

Question 22

Pierre Bourdieu concluded that 'taste' is a ________ that causes consumption preferences to cluster together.

A) habitus
B) code
C) hierarchy
D) capital

Question 23

Fred has been a farmer all his life.He inherited the family farm when he was 35,but that was twenty years ago.It looks like he is going to lose the farm and have to take a manual labour job in the city to support his family.What form of mobility best describes Fred's position?

A) Horizontal mobility
B) Two-way stretch mobility
C) Downward mobility
D) Upward mobility

Question 24

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?

A) Reference group affiliation
B) Bias
C) The 'silver spoon' syndrome
D) Social stratification

Question 25

Social analyst Thorstein Veblen believed that we buy things to create ________.This means we use our purchases to inspire envy in others through our display of wealth or power.

A) affluenza
B) invidious distinction
C) status crystallisation
D) cultural capital

Question 26

A Rolls-Royce,a Cartier diamond and an Andy Warhol painting are all items bought and displayed as markers of social class.These products are ________.

A) social inhibitors
B) social parameters
C) status symbols
D) psychological blocks

Question 27

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

A) brand prominence
B) consumption constellation
C) restricted code
D) elaborated code

Question 28

If a social researcher wanted to investigate social status in a small city,her best choice for a questionnaire would be one that included questions or observations on education,area of residence,total family income per year,and ________.

A) occupation prestige level of household head
B) membership groups of the primary income earners
C) ability to communicate via the Internet and other electronic communication channels
D) ability to win friends and influence people

Question 29

________ defines a pattern of consumption reflecting a person's choices about how he or she spends their time and money.

A) Lifestyle
B) Habitus
C) Social class
D) Cultural capital

Question 30

Product ________ occurs when the symbolic meanings of different products are related to one another.

A) distinction
B) crystallisation
C) complementarity
D) hierarchy

Question 31

When people are differentiated in terms of their aesthetic and intellectual preferences,a ________ concept is being applied.

A) cultural code designation
B) social cluster
C) taste culture
D) consumption constellation

Question 32

Psychologists use the term homogamy to describe 'assortative mating.' Which of the following phrases is the best illustration of homogamy?

A) Opposites attract.
B) Birds of a feather flock together.
C) Leave no stone unturned.
D) To the victor go the spoils.

Question 33

In school,it always seemed as if Kenneth got all the breaks.He had access to all the right resources,such as special privileges,fancy cars,a large allowance,and dates with all the beautiful girls.Even at work,he was put on the fast track and got promoted early to a high-prestige job.It seemed as if Kenneth was artificially ranked higher than others.The process that best describes what happened to Kenneth is called ________.

A) reference group affiliation
B) bias
C) ascribed status or the 'silver spoon' syndrome
D) achieved status

Question 34

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

A) underprivileged
B) invidious
C) restricted
D) conspicuous

Question 35

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."

A) wealth
B) managed
C) perpetual
D) discretionary

Question 36

The lower classes use more restrictive codes than the upper classes.How does this knowledge change the way insurance might be sold to a working-class man compared to an upper-class man?

A) The promotion to the working-class man should emphasise his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasise the long-term consequences of the choice.
B) The promotion to the working-class man should emphasise the long-term benefits of insurance, while the upper-class promotion should emphasise the short-term consequences of the choice.
C) The promotion to the working-class man should emphasise pictures while the upper-class promotion should emphasise words.
D) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category.

Question 37

If the super-rich bought 'shredded Levi's jeans' to wear to formal parties,they would be exhibiting a sophisticated form of conspicuous consumption known as ________.

A) parody display
B) invidious distinction
C) downsizing
D) elaborated codes

Question 38

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 ________.

A) reference group affiliation
B) achieved status
C) classification status
D) ascribed status

Question 39

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

A) They have ignored status inconsistency.
B) They have ignored intergenerational mobility.
C) They have ignored consumers' aspirations to change their class standing.
D) They have ignored the impact of technology on social class.

Question 40

The ________ marketing perspective recognises that people sort themselves into groups on the basis of the things they like to do,how they like to spend their leisure time,and how they choose to spend their disposable income.

A) personality
B) motivation
C) lifestyle
D) social

Question 41

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

Question 42

Sharon noticed that many of her high-end,outdoor spa customers drive Volvos,a luxury car known for its safety record and high performance.Which of the following terms best illustrates what Sharon has observed in her customers?

A) Product complementarity
B) Motivational compliance
C) Conscientious association
D) Parody display

Question 43

Trisha grew up in a drug-ridden inner city neighbourhood.Through sheer determination and intelligence,Trisha is now a medical doctor teaching on the staff of a large university hospital.Trisha is proud of what she has accomplished,but sometimes she feels like she isn't quite sure who she really is.The concept of ________ assesses the impact of such inconsistencies.

A) status crystallisation
B) hierogamy
C) habitus
D) invidious distinction

Question 44

The term plutonomy was coined to describe an economy that relies on a large and healthy middle class.

Question 45

The flamboyant consumption of the nouveau riche is an example of symbolic self-completion.

Question 46

Discretionary income is the money available to a household over and above that required for a comfortable standard of living.

Question 47

The Australian rich often indulge in luxury goods while pinching pennies on everyday items.

Question 48

Social class appears to be a poor predictor of purchases that have symbolic aspects and low to moderate prices (such as liquor and cosmetics).

Question 49

Of the three groups of attitudes toward luxury,the largest group is 'luxury is indulgence.' This view is held mainly by seniors with wealth.

Question 50

Lower-class men are more likely than middle-class men to have a general sense of empowerment.

Question 51

Social capital refers to an individual's knowledge of the 'right' behaviour to use in the realm of the upper class.

Question 52

Although teenagers do not have the income of older consumers,they are still an attractive market based on income.Why?

A) Because they have less money, they are more careful of how they spend it.
B) Parents lead teenagers into what they buy; hence any understanding of adult buying patterns can be useful for teenagers as well.
C) Teenagers have more consumer confidence and are, therefore, more likely to be swayed by promotional material.
D) Teenagers don't have the income of adults but their income is almost all discretionary, meaning they can spend it as they see fit.

Question 53

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

Question 54

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

A) upper-upper
B) working
C) upper-middle
D) middle

Question 55

Evan was an aggressive,rich and determined businessman originally from a working class family.He had become wealthier than he had ever imagined by buying and selling other businesses.Evan seemingly could do anything until he tried a hostile takeover of an established bank owned by several prestigious families.When his bid failed,Evan said,"I always knew there was an elite,but up to now I thought I was a part of it." What type of capital was Evan lacking?

A) Economic
B) Cultural
C) Psychological
D) Sociological

Question 56

Jason is a marketing researcher working for a client who believes that social class will be an important segmenting device.Jason decides to find social class categories by simply asking respondents to pick their own category.Which of the following best supports Jason's approach?

A) Most Australians don't mind talking about social class but usually get their own wrong.
B) Australian consumers generally have little difficulty accurately placing themselves in the lower-middle class or middle class.
C) Australian consumers are generally better able to identify their neighbours' social class than their own social class.
D) Respondents will list the social class they wish to belong to rather than the one they actually occupy.

Question 57

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

Question 58

Harry was the lead singer in a band that hit it big.For his birthday,Harry had 200 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 ________.

A) parody display
B) social mobility
C) ascribed status
D) conspicuous consumption

Question 59

Australian spendthrifts outnumber Australian tightwads.

Question 60

Education is one determining factor in who gets a bigger piece of the economic pie.

Question 61

What are the two major components of social class? Explain and comment on each component (such as which is more important).

Question 62

How does the relationship between wealth and social class affect the way marketers segment affluent markets? Are there some consumption situations in which income alone is a good indicator of consumer behaviour?

Question 63

Lifestyle is a statement about who one is in society and who one is not.

Question 64

Why is wearing a baseball cap backward (with the brim toward the back)a type of parody display?

Question 65

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

Question 66

Explain the concept of social mobility and its various forms.

Question 67

Identify the three components marketers use to express a consumption style,and explain why marketers would want to express a consumption style.

Question 68

Rachel doesn't work,has a rich and successful husband,and loves to wear high-heeled shoes,tight clothes and flamboyant hairstyles.According to Veblen's ideas,Rachel's role is decorative.

Question 69

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

Question 70

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.

Question 71

Many 20-somethings have rebelled against their more affluent parents by mocking wealth,wearing clothing such as shredded jeans and driving boxy cars.These are examples of what is called a modern potlatch.

Question 72

The average Australian's standard of living continues to improve.This shift in income has been linked to two key factors.What are these factors? Provide explanatory comments on each factor.

Question 73

Identify for each of the following items whether it would more likely be found in a working-class living room or an upper-class living room.Items: a Bible,picture windows,still-life portraits,photographs of family members,large potted plants,French furniture,a TV set,a family pet,and a piano.

Question 74

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

Question 75

The general method for elevating one's social status is to increase the use of ascribed status tools.

Question 76

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

Question 77

Conspicuous waste is the opposite of conspicuous consumption because one is aimed at showing how important a person's wealth is,and the other is aimed at showing how unimportant his or her wealth is.

Question 78

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

Question 79

Tian Zhao's parents were peasants from central China.Tian got a degree in electronics from a university and now works for a medium-sized firm building computer components for a company in Europe.Tian has bought himself a Canon camera and a Dell computer,and he wears Nike running shoes.He is a member of the mass class.

Question 80

Although there are many differences between social classes,almost all these differences can be summarised by the difference that income makes in a person's life.