Social Class and Demographics

1
Social Class and Demographics

• Dr. John T. Drea
• Associate Professor of Marketing
• Western Illinois University

2
Characteristics of an Effective Social Class
System

• Rank ordering
• Relative permanence
• Intergenerational class mobility
• Internal homogeneity
• Distinct from income

3
Social Status in America

• Upper Americans (14)
• common goals, differentiated mainly by income
• quality merchandise is most prized.
• self-expression is prized.
• High consumption priorities include theater,
  books, European travel, household help, club
  memberships and prestige schooling for children

4
Social Status in America (continued)

• Middle Americans (70)
• Middle Class (32)
• Emphasis is to do the right thing and buy
  whats popular.
• Increased earnings mean better neighborhoods with
  good schools.
• Spends money on worthwhile experiences for
  children.
• Home appearance is important.
• Admires/emulates upper class.
• Deferred gratification is an ideal but may not be
  practiced.

5
Social Class in America (continued)

• Middle Class (70) continued
• Working Class (38)
• These are family folk - they depend heavily on
  relatives for economic and emotional support.
• More limited horizons comparisons are made to
  other relatives and peers.
• Group characteristics change little even when
  incomes rise.
• Discretionary spending focuses on ease of labor
  and leisure purchases

6
Social Status in America (continued)

• Lower Americans
• Highly heterogeneous behaviors.
• Behaviors range greatly from an intense focus on
  immediate gratification to strong religious
  beliefs and delayed gratification (not earthly)

7
Measuring Social Status

• Single item vs. multi-item
• Single item measures do not accurately reflect
  social status, since there is variation of
  perceived status according to factors other than
  the one measured

Individually, single item measures fail to
adequately assess a construct in its entirety.
8
Measuring Social Status

• Multi-item measures
• Hollingshead Index of Social Position
• Widely used
• Two factors occupation and education
• Warners Index of Status Characteristics
• Also widely used
• Four factorsoccupation, source of income, house
  type, dwelling

9
Measuring Social Status

• Socioeconomic Status Scale
• US Dept of the Census
• Three factors occupation, income, and education
• Computerized Status Index
• Coleman (1983)
• Four factors education, occupational prestige,
  area of residence, and family income

10
Social Status vs. Income

• Social status is more relevant than income when
• purchases do not involve high dollar expenditures
  but do reflect underlying differences in
  lifestyle, values, or roles not captured by
  income
• Social status is also superior for the purchase
  of highly visible, symbolic, and expensive items.

11
Social Class vs. Income (continued)

• Income is more appropriate than social class
  when
• products require substantial expenditures but are
  not status symbols within the social class.
• washers, dryers, kitchen appliances

12
Demographic Data

• Demographics describe a population by its
• size of individuals in a population
• distribution location of individuals
• structure descriptors of the population in terms
  of age, income, education, and occupation