Deck 13: Lifestyle, Income and Social Class

Question 1

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.

Answer 1

D

Question 2

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

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

Answer 2

complementarity

Question 3

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?'

Answer 3

C

Question 4

Paul and Erica Smith are both retired.Their son and daughter are both in their late 20s and are trying to establish themselves professionally.Paul and Erica help their children as much as possible, in terms of financial help and also giving advice, so that their children will be successful.The Smiths reunite for all major holidays.Which value segment best describes Paul and Erica Smith?

A)Socially Aware
B)Look At Me
C)Young Optimism
D)Traditional Family Life

Question 5

Linking products together to create a more desirable connotation in consumers' minds is known as ________.

A)product complementarity
B)co-branding strategies
C)consumption constellations
D)product companions

Question 6

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 7

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 8

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 9

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 savings 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 10

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 11

________ 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 12

________ 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 13

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 14

Samantha has a great job at a publishing company, but she often lies awake at night and envisions scenarios involving her getting laid off from her job and being unable to find another one, resulting in her losing her home and her belongings.According to clinical psychologists, Samantha's fear of poverty is equated to which of the following phobias?

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

Question 15

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 16

Martha, a university-educated young professional, married Bill, another university-educated young professional.Both earn similar amounts of money in their fields.Most of Martha's friends have also married others under similar circumstances.Sociologists call this ________, or assortative mating.

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

Question 17

Which Roy Morgan-developed value segment describes those who are generally part of the 'establishment' and are interested in maintaining a disciplined, predictable and safe society?

A)Socially Aware
B)Look At Me
C)Conventional Family Life
D)Real Conservatism

Question 18

Which of the following theorists first discussed the motivation to consume for the sake of consuming at the beginning of the 20th century?

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

Question 19

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

Question 20

Sherif, a psychiatrist, has observed that many of his patients wear a Rolex, a type of watch known for its expense.Which of the following terms best illustrates what Sherif has observed in his patients?

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

Question 21

Fred has been a farmer all his life.He inherited the family farm when he was 35, but that was 20 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 22

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 23

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)occupational 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 24

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

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

Question 25

Ahmed decided to become a police officer after several years as a firefighter.He still wanted to help people; he just wanted to do it differently.Ahmed's case is an example of which of the following?

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

Question 26

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 27

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 28

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 29

Jaime was born into a wealthy family that has made millions of dollars from multiple generations of real-estate speculation.Because of this, Jaime, now in his 30s, has never had to have a job.Jaime has ________ status.

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

Question 30

Kenneth graduated at the top of his class, but he didn't get any breaks.Without any money for a car, he walked two miles to and from school each day.He knew he needed help with math, so he worked a part-time job outside of school to pay for a math tutor.These years were hard for Kenneth, but he graduated with many friends and with much recognition.Kenneth attained ________.

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

Question 31

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 32

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

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

Question 33

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 34

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 35

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 36

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 37

Sasha has worked hard her whole life, having two and sometimes three jobs when she was in her 20s and 30s.She saved and invested diligently and now, in her 50s, she is a wealthy and highly respected entrepreneur.Sasha has ________ status.

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

Question 38

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 39

An Aston Martin car, a Giorgio Armani suit, and a Mark Rothko 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 40

Richard never worked very hard on his grades.When he needed help, his parents paid for as many tutors as he needed.Furthermore, because his father was a prominent and wealthy politician, none of Richard's teachers wanted to upset him, and they gave Richard multiple chances to provide his work when he missed deadlines.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 41

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 42

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

Question 43

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 44

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 45

Wealthy Australians often indulge in luxury goods and also in everyday items.

Question 46

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 47

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

Question 48

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

Question 49

The psychographic variables used by researchers to group consumers are area, income and occupation.

Question 50

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 51

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 52

Discretionary income is all the money available to a household.

Question 53

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

Question 54

A lifestyle profile is a type of psychographic study that looks for items that differentiate between users and non-users of a product.

Question 55

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 56

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 57

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 58

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

Question 59

A consumption constellation for lower- or working-class consumers would be Mercedes cars, yachts, caviar and champagne.

Question 60

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 61

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 62

What is a consumption constellation, and how does it relate to consumer lifestyle?

Question 63

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

Question 64

What are AIOs, and how do contemporary psychographic researchers use them?

Question 65

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 66

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

Question 67

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

Question 68

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 69

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.

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

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

Question 72

How does the worldview difference in social class help explain why the sons and daughters of working-class families typically spend their entire lives living within a short distance of where they were raised?

Question 73

Explain the concept of social mobility and its various forms.