The rank of individuals or groups in societies or cultures; determined by a set of variables that include, but are not limited too, income, family background, and occupation
Is the money available to a household over and above that required for a comfortable standard of living
What are the 2 types of frugal consumers?
1. Spend Thrifts: spend cautiously because they enjoy saving money
2. Tightwads: spending is an unpleasant experience
What are the 3 shopper groups as identified by Walmart consumer researchers?
1. Brand Apsirationals: low income, love brand names
2. Value-priced: like low price, cannot afford more
3. Prince-sensitive: wealthy, love deals
Behavioural Economics (Economic Psychology)
A form of psycho-analysis that considers the "human" side of economic decisions; questions include what a consumers' motives and expectations are about the future of their current spending, how their decisions may affect society's general economic well-being, etc.
A consumer's belief about what the future holds for society's economic state, reflecting the extent to which people are optimistic or pessimistic about the future health of the economy and how they predict they'll fare
The tendency for people to marry individuals in a similar social class to themselves; a.k.a. assortative mating
Those processes in a social system by which scarce and valuable resources are distributed unequally to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives
What is the difference between ascribed and achieved status?
The former refers to status earned through birth right or some other form of previous good fortune, whereas the latter refers to status earned through independent diligence
Whereabouts some members are somehow better off than others; have more authority or power, or other other members simply like or respect them more
Occurs when person moves from one position to another that is roughly equivalent in social status
Occurs when a person moves into a new social status that was below their current position
Occurs when a person moves into a new social status that was above their current position
What does BRIC represent?
It is an acronym for the the biggest emerging markets-- Brazil, Russia, India and China
A large segment of the consumer population who now enjoy a level of purchasing power that enables them to afford high quality products, except for the traditional big-ticket items
True or False: Social class is a better predictor of purchases that have symbolic aspects, but low-to-moderate prices?
True of False: Income is a better predictor of major expenditures that do not have status or symbolic aspects?
True or False: Social class is the better predictor of purchases that are both expensive and symbolic?
FALSE: both social class and income data are required
What is the difference between potent actors and impotent actors?
The former refers to those who believe that they are at the mercy of their economic situation, whereas the latter refers to those who believe they have the ability to take actions that affect their world
What are the 3 categories of consumers in relation to luxury goods?
1. Luxury is functional: buy things that last, plenty of prepurchase research, logic over emotion
2. Luxury is reward: demonstration of success
3. Luxury is indulgence: lavish demonstration of individuality, emotion over logic, impulse purchase
What are the 2 ways to communicate product benefits?
1. Restricted Codes: content of objects
2. Elaborated Codes:relationships among objects
The physical and constitutional characteristics of an individual; behavior and appearance; predisposition or status-marking force
A set of distinctive and socially rare tastes and practices or knowledge of refined behaviour that admits a person into the realm of the upper class
A theory of social analyst Thorstein Veblen which states that a major role of products is to inspire envy in other through displays of wealth or power
The desire of people to provide prominent, visible, evidence of their ability to afford luxury goods-- Thorstein Veblen