solomon_cb08_13 - Chapter 13 Income and Social Class...

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Chapter 13 Income and Social Class CONSUMER BEHAVIOR, 8e Michael Solomon
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Prentice-Hall, cr 2009 13-2 Chapter Objectives When you finish this chapter you should understand why: Both personal and social conditions influence how we spend our money. We group consumers into social classes that say a lot about where they stand in society. A person’s desire to make a statement about his social class, or the class to which he hopes to belong, influences the products he likes and dislikes.
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Prentice-Hall, cr 2009 13-3 Consumer Spending and Economic Behavior General economic conditions affect the way we allocate our money A person’s social class impacts what he/she does with money and on how consumption choices reflect one’s place in society Products can be status symbols
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Prentice-Hall, cr 2009 13-4 Income Patterns The average American’s standard of living continues to improve due to: An increase of women in the workforce Increases in educational attainment Discretionary income: money available to a household over and above that required for a comfortable standard of living
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Prentice-Hall, cr 2009 13-5 Individual Attitudes Toward Money Wal-Mart study on how consumers think about money and brand names Three distinct groups of consumers: Brand aspirationals: people with low incomes who are obsessed with names like KitchenAid; Price-sensitive affluents: wealthier shoppers who love deals; and Value-price shoppers: like low prices and cannot afford much more.
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Prentice-Hall, cr 2009 13-6 Consumer Confidence Behavioral economics: concerned with “human” side of economic decisions Consumer confidence: the extent to which people are optimistic or pessimistic about the future health of the economy Influences how much discretionary money we will pump into the economy Overall savings rate is affected by: Pessimism/optimism about personal circumstances World events Cultural differences in attitudes toward savings
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Prentice-Hall, cr 2009 13-7 Social Class Society is divided into the “haves” versus “have-nots” Social class is determined by income, family background, and occupation Universal pecking order: relative standing in society Standing determines access to resources like education, housing, consumer goods Marketing strategies focus on this desire to move up in standing Social class affects access to resources Social class: overall rank of people in a society Homogamy: we even tend to marry people in similar social class
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Prentice-Hall, cr 2009 13-8 Discussion
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This document was uploaded on 10/27/2011 for the course BUSINESS ALL at Texas Tech.

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solomon_cb08_13 - Chapter 13 Income and Social Class...

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