10.1 Social Stratification and Its Influence on Consumption
3 min read•july 22, 2024
shapes consumer behavior in profound ways. From product preferences to shopping habits, it influences what we buy, where we shop, and how we perceive brands. Understanding these patterns helps marketers tailor strategies to different segments.
Social class affects adoption of new products too. Upper classes often have earlier access to innovations and more resources to try them. This can create a "trickle-down" effect as products diffuse from higher to lower classes over time.
Social Stratification and Its Components
Components of social stratification
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- Social stratification hierarchically arranges individuals into divisions of power and wealth within a society based on four key principles:
- Represents a trait of society, not simply a reflection of individual differences
- Persists over generations
- Exists in all societies but varies in degree and configuration (universal but variable)
- Involves not just inequality but beliefs and ideology
- Social class groups individuals who share similar levels of wealth, income, education, and occupational prestige
- Categorized as upper class, middle class, working class, lower class
- Status indicates the degree of social honor or prestige an individual or group holds
- Power represents the ability to control or influence others, even if they resist
- enables individuals to move up or down the social hierarchy
Social Class and Consumer Behavior
Social class influence on consumption
- Social class shapes consumer preferences and tastes
- Upper classes prefer more expensive, exclusive, status-signaling products and services (luxury cars, designer fashion)
- Lower classes prioritize functionality, durability, value for money (generic brands, secondhand goods)
- Social class affects types and quantity of products purchased
- Higher classes spend more on discretionary and luxury items (international travel, fine dining)
- Lower classes spend higher proportion of income on necessities (groceries, utilities)
- Social class influences shopping habits and outlets patronized
- Upper classes more likely to shop in upscale department stores and specialty boutiques (Nordstrom, local artisans)
- Lower classes more likely to use discount stores and budget retailers (Walmart, thrift shops)
- Social class shapes price sensitivity and deal proneness
- Higher classes less price sensitive, more focused on quality and service
- Lower classes more price conscious, responsive to sales promotions and discounts
Social class and brand loyalty
- Social class influences brand awareness, perceptions, and preferences
- Higher classes more brand conscious and loyal to prestigious, established brands (Rolex, Mercedes-Benz)
- Lower classes more open to trying new or generic brands, more influenced by price (store brands)
- Social class affects perceived risks and benefits of switching brands
- Upper classes perceive higher risks in switching from known, trusted brands (social, psychological, financial risks)
- Lower classes perceive higher benefits from switching to cheaper alternatives (cost savings)
- Social class shapes motives and values driving brand loyalty
- For upper classes, brand loyalty driven more by emotional and symbolic factors (status, self-identity, social acceptance)
- For lower classes, brand loyalty driven more by functional and economic factors (reliable quality, value for money)
Social class in product adoption
- Social class affects access to information about new products and innovations
- Upper classes have more diverse social networks and media consumption habits that provide earlier exposure to new ideas
- Lower classes may face information gaps and time lags in learning about new products (digital divide)
- Social class influences perceived risks and benefits of adopting innovations
- Upper classes have more resources to absorb risks and are more open to change (higher education, financial cushion)
- Lower classes are more risk averse and may wait until new products are established and prices decrease
- Social class shapes symbolic meanings and social acceptability of new products
- Adoption by upper classes can signal aspirational value and hasten diffusion to lower classes (iPhone, Tesla)
- Adoption by lower classes only can stigmatize a new product as downmarket and deter upper class uptake
- Rate of new product diffusion often follows a "trickle down" pattern from higher to lower social classes over time
- Early adopters tend to be younger, more urban, more educated and affluent
- Later adopters tend to be older, more rural, less educated and less affluent
Key Terms to Review (13)
Bourdieu's Theory of Cultural Capital: Bourdieu's theory of cultural capital refers to the non-financial social assets that promote social mobility and influence an individual's social status and opportunities in society. This concept includes education, tastes, cultural knowledge, and any advantages that help individuals navigate social spaces and consumption patterns. Cultural capital plays a crucial role in social stratification, as those with more cultural capital tend to access better opportunities and make more informed consumption choices.
Caste system: The caste system is a form of social stratification traditionally found in India, where individuals are born into specific social groups known as castes, which determine their social status, occupation, and potential interactions with others. This rigid structure significantly influences various aspects of life, including economic opportunities and access to resources, reflecting deep-rooted cultural norms and values.
Class system: A class system is a social stratification structure in which individuals or groups are categorized based on their socio-economic status, which includes factors like wealth, education, and occupation. This system influences various aspects of life, including access to resources, social interactions, and consumption patterns, as people from different classes often have distinct preferences and purchasing behaviors that reflect their economic capabilities.
Conspicuous Consumption: Conspicuous consumption refers to the practice of purchasing and using goods or services to publicly display wealth and social status. This behavior is often driven by a desire for social recognition and the need to signal one's economic position, which can significantly influence consumer choices and preferences. It connects deeply with societal values surrounding status, materialism, and the role of consumer goods in social stratification.
Consumer segmentation: Consumer segmentation is the process of dividing a broad consumer market into smaller, more defined groups based on shared characteristics, behaviors, or preferences. This approach allows businesses to tailor their marketing strategies and product offerings to meet the specific needs of each segment, ultimately enhancing consumer satisfaction and driving sales.
Income inequality: Income inequality refers to the unequal distribution of income within a population, where some individuals or groups earn significantly more than others. This disparity can impact social dynamics and consumer behavior, influencing spending habits, access to resources, and overall economic well-being.
Luxury consumption: Luxury consumption refers to the acquisition and use of high-end goods and services that are not necessary for basic living but are sought after for their status, quality, and exclusivity. This type of consumption is heavily influenced by social status, cultural values, and personal identity, reflecting an individual's wealth and social standing. Luxury consumption often signifies personal achievement and serves as a means to express individuality and taste within a competitive social hierarchy.
Purchasing Power: Purchasing power refers to the amount of goods and services that a consumer can buy with a specific amount of money. It is influenced by factors such as income levels, inflation, and the cost of living, which can significantly affect a consumer's ability to make purchases. Understanding purchasing power is crucial because it reflects the economic condition of individuals and influences their consumption behavior.
Social Class: Social class refers to a hierarchical distinction among groups in society based on factors like wealth, income, education, and occupation. It significantly influences consumer behavior by affecting individuals' purchasing power, preferences, and lifestyle choices, which ultimately shapes consumption patterns and market segmentation strategies.
Social mobility: Social mobility refers to the ability of individuals or families to move up or down the social ladder, which can be influenced by various factors such as education, occupation, and economic conditions. This movement plays a critical role in shaping consumer behavior as it affects people's access to resources, consumption patterns, and overall lifestyle choices. The degree of social mobility in a society often reflects the equality of opportunity available to its members and can significantly impact consumption trends and social dynamics.
Status hierarchy: Status hierarchy refers to the ranking of individuals or groups within a social structure based on their perceived prestige, wealth, or influence. This ranking affects not only social interactions but also consumption patterns, as individuals often align their buying behavior to reflect or aspire to a certain status level. The concept illustrates how social stratification shapes the way consumers make choices and how they are influenced by those around them.
Structural Functionalism: Structural functionalism is a sociological perspective that views society as a complex system composed of various parts, each serving a specific function to promote stability and order. This framework emphasizes the interdependence of social institutions and structures, suggesting that they work together to maintain the overall functioning of society. By understanding how these components interact, we can better comprehend the ways in which social stratification influences consumption patterns among different groups.
Symbolic interactionism: Symbolic interactionism is a sociological perspective that emphasizes the role of symbols and language as core elements of all human interaction. This perspective suggests that people create meaning through their social interactions, which in turn shapes their behaviors and identities. In the context of social stratification, it highlights how individuals interpret their social status and how these interpretations influence their consumption patterns and behaviors.