Social Stratification and Social Class – Flashcards

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Social Stratification
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Rank ordering either groups or individuals hierarchically in a society with respect to socioeconomic status. Placing an individual or group within a hierarchial social structure into social categories called strata
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Social Class
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A type of social stratification- one's position relative to toehrs on one or more dimensions valued by society (education, wealth, home etc.)
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Social class system
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a hierarchial division of an industrial or post industrial society into relatively distince and homogenous groups based on social prestige and respect (titanic) People in society sharing aprox same lifestyles, values and attitudes who are stratified by dimensions valued by society. (airlines, concerts)
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Warner's 6-class system
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Upper upper Lower Upper Upper Middle Lower Middle Upper Lower Lower Lower
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Coleman- Rainwater Social Standing Hierarchy
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1) Upper Americans 1a- upper upper: .3%, capital S society world of inherited wealth 1b- lower upper: 1.2% The new social elite, drawn from current professionals 1c- upper middle: 12.5%: the rest of college graduate managers and professionals; lifestyle centers on private clubs, causes and the arts 2) Middle Americans 2a- middle class:32% average pay white collar workers and their blue color friends live on the better side of town and try to do proper things 2b- working class: 38% average pay blue collar workers; lead working class lifestyle whatever the income, school, background and job 3) Lower Americans 3a- upper lower:9% a lower group of ppl but not the lowest, working, not on welfare, living standard just above poverty, trashy 3b- lower lower: 7% on welfare, poverty, out of work, bums, common criminals
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Differences between Warner and Coleman Rainwater
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Coleman Rainwater's middle americans are roughly Warner's lower middle. Otherwise the labels are identical, except C-R added a working class.
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Open to social mobility
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Meriotcracy not aristocracy as in traditional systems or heritage
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How do we socially climb?
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Education Occupaton Talent, hard work Marriage Downward social mobility possible by economic downturns
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American Dream
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thru education/ hard work we can raise ourselves up and achieve dreams rising above parent's economic status
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Social class influences various aspects of CB
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Types, quantities and qualities of acquired products Preference for store brands vs. national brands Choice of where to shop Saving, investing, and spending patterns Credit use, convenience vs. make ends meet Leisure pursuits Amount of effort put into search activity Media choices
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Uses of social class in marketing: target marketing
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Social class as a sociodemographic segmentation variable. Occupants of given social class often share common demographics/ socioeconomic variables, ways of thinking, lifestyles and behaviors so they share common needs and wants. Aim upscale, midscale and or downscale.
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Two-tier marketing, bifurcation of markets
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Targeting marketing efforts either upscale or downscale due to bifurcation of incomes and wealth into high & low strata Gap and Banana republic
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Trade up
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Splurge selevtively on luxury goods found emotionally satisfying or conspicuous (restaurant, jacket, wide screen)
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Trade Down
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Save $$ on less important goods to be able to splurge on more important goods, Annies vs. Kraft Trading up and trading down are sometimes done simultaneiously by the same consumers
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Uses of social class in marketing continued
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Positioning- upscale, midscale or downscale, espcecially by user and usage situation as well as by SC values.
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If target market is the X Social class market, do you always position to the X Market?
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No. Sometimes also to adjacent classes. X+1 Social class 1 run above and sometimes to the x- 1 (1 rung below
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Why market lower or higher?
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Social mobility- appeal to where consumers are headed or wish they were headed Upward pull strategy - target X but position X+1
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Aspirational brand
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a brand that will assist consumers in achieving the trappings of the next rung on the social ladder. The psychological basis is their subjective social class
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subjective social class
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a class in which they 1) identify (think of themselves as belonging to) and or to which they 2) aspire (wannabes- long to belong but which they do not yet belong)
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Methods
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Use aspirational advertising to become an aspirational brand Add high style items at not so high style prices for aspirational customers: affordable luxuries
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Relative occupational income (ROCI)
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The relationship of a family's total income to the median income of other families in the same social class
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Overprivileged
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families have an income level higher than the media in their class and so can buy relatively high priced products
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Underprivileged
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are below their social class median income and so can't afford some products considered appropriate for their class
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Class average
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household have typical income levels for their class and so can afford to buy products their social class peers expect
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Socioeconomic variables
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occupation, education, income, wealth possessions
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Social interaction variables
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personal friends prestige, associations/ organizations
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Power and misc variables
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economic, political, corporate, military, social power, class consciousness, mobility efforts
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The big three socioeconomic determinants of social class
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1) occupational status 2) family (HH) income (source more than amount) 3) Education level All highly correlated, occupation is the best Education-> occupation--> income
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Income (personal or family/ household)
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The dollar amount earned per time period. The increase in money accumulated produced by capital assets
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Gross income
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an individual's total personal income before taking taxes or deductions (money from job, investments, alimony, child support)
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Disposable income
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gross income- taxes and other deductions. Income/ take home pay affter taxes that is available for spending, saving and investing
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Discretionary income
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disposable income- spending on necessities Money left for optional/luxury expenditures, saving and non retirement investing after taxes, withholding and buying necessities Marketing implications: Discretionary income is key: determines both financial status and social status
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Social Class vs. income
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Income does not equal social class Class and income are not well correlated. There is a broad range of incomes within each social class.
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Income
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Occupation is best indicator over occupation. Income best predicts CB for major expenditures without status or symbolic aspects (washers, dryers, trash compactors, computers) (privately consumed goods) Both income and social class are needed for high priced visible status items (publicly consumed goods)
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Wealth (Capital value, net worth)
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A cumulative stock of assets (savings) minus liabilities (mortgage) Net worth influences willingness to spend but not necessarily ability to spend because much wealth is not liquid and so cannot be easily spent
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wealth effect
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the influence on consumer spending caused by increases and decreases in people's wealth caused by fluctuations in home valuations (most important) and stock prices.
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Credit access
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borrowing vs. future earnings or wealth- make the illiquid liquid
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source of income
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from inherited to welfare- better SC indicator than income.
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Measurement of SC: Reputational method
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ask people to rank other's percieved social status in their comunnity and to explain the basis they used for the rankings Advantage: most accurate and thoroughly validated Disadvantage: much time and money, best for small communities, imporactical
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Measurement of SC: subjective (self-reporting) method
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people are asked to select their own social class from a predetermined list of class Good because: simple and inexpensive Disadvantage: perceptions often erroneous (large MC)
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Warner's index of status characteristics (ISC)
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Warner ISC score= occupation rating X4 + source of income score X 3 + house type score X 3 + dwelling area score X2
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Hollingshed index of social position (ISP)
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Occupation score X7 + education score x 4
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