Consumer Behavior Chapter 12 (Social Class & Lifestyles)

Discretionary Income
Money available to a household over and above what it requires to have a comfortable standard of living
Tightwads
Experience emotional pain handing over their cash
spendthrifts
enjoy buying everything in sight, enjoy nothing more than spending.
Behavioral Econimics
Studies the “human” side of economic decisions
Consumer Confidence
The state of mind of consumers relative to their optimism or pessimism about economic conditions; people tend to make more discretionary purchases when their confidence in the economy his high.
Frugalistas
fashion-conscious consumers who pride themselves on achieving style on a limited budget.
Plutonomy
an economy that’s driven by a fairly small number of rich people
Social Class
A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
Homogamy
Marriage between people with the same social characteristics.
Social Stratification
A system by which a society ranks categories of people in a hierarchy
Status Hierarchy
A ranking of group members by their power and influence over other members.
Social Mobility
Movement of individuals or groups from one position in a society’s stratification system to another.
Chavs
Young, lower-class men and women who mix flashy brands and accessories from big names such as Burberry with track suits.
BRIC Nations
Acronym to the biggest emerging markets (Brazil,Russia,India,China)
Mass Class
a term analysts use to describe the millions of global consumers who now enjoy a level of purchasing power that is sufficient to let them afford many high-quality products
Worldview
A person’s view of the world, consisting of the set of beliefs on which he bases his life.
Affluenza
unsustainable addiction to overconsumption and materialism exhibited in the lifestyles of affluent consumers in the United States and other developed countries
Nouveau riches
consumers who recently achieved their wealth and who do not have the benefit of years of training to learn how to spend it
taste culture
a group of consumers who share aesthetic and intellectual preferences
Restricted codes
The ways of expressing and interpreting meanings that focus on the content of objects, which tend to be used by the working class.
Elaborated Codes
More complex and depend on sophisticated worldview than restricted codes
Habitus
Ways in which we classify experiences as a result of our socialization
Social Capital
organizational affiliations & experiences that provide access to desirable social networks
Cultural Capital
Cultural knowledge and cultural competencies that people need to function effectively in society.
Online Gated Communities
selectively allow access to only some people and may offer a high degree of social capital to the lucky few who pass the test.
Status Symbols
Products whose primary function is to communicate one’s social standing to others
Invidious Distinction
The use of status symbols to inspire envy in others through display of wealth or power
Conspicuous Consumption
buying expensive services and products in order to flaunt your wealth
leisure class
according to Veblen- people for whom productive work is tabo
Brand Prominence
the display of blatant status symbols to insure that others recognize one’s luxury brands
Parody Display
Deliberately avoiding status symbols; to seek status by mocking it
Status Crystallization
When consumers are consistent across indicators of social class income, education, occupation, etc..
Lifestyle
Pattern of consumption that reflects a person’s choices of how to spend their time and money
Lifestyle Marketing perspective
recognized that people sort themselves into groups on the basis of the thighs they like to do, how they choose to spend their leisure time and how they choose to spend their disposable income
Co-Branding Strategies
when they team up with other companies to promote two or more items
Product complementarity
When Symbolic meanings of different products relate to one another
Consumption Constellation
a set of products and activities used by consumers to define, communicate, and perform social roles