chapt 12 income and social class Flashcards
when people age and income levels rise the share of the budget for what gets bigger and what gets smaller
bigger- housing and transportation smaller- food and clothing
the money available to a household over and above what it requires to have a comfortable standard of living.
discretionary income
T/F How we spend doesn’t vary, based in part on our attitudes toward money.
F
what is an example of a taste culture?
upper and upper middle class like museums and live theatre while middle class more liekly to go fishing and camping
what is the college wage premium?
the gap between what workers with a college degree earn compared with those without one
what are 3 factors that determine ones social class?
- income 2. family background 3. occupation
which luxury atttitude has consumers that want to be extremely lavish and self indulgent?
luxury is an indulgence
peoples desires to provide prominent visible evidence of their ability to afford luxury goods
conspiicuous consumption
mebers of every society divide into what?
the haves and the have nots
what are the 2 factors that contribute to an overall upward income trajectory?
- shift in womens roles 2. increase in educational attainment
what is a tighwad?
experiences pain at handing over money
what luxury attitude has consumers that have a more emotional approach and are most likely to make impulse purchases?
luxury is an indulgence
T/F Individuals’ desire to make a statement about their social class, or the class to which they hope to belong, influences the products they like and dislike.
T
what is invidious distinction?
when we use buying things to inspire envy in others through our display of wealth or power
what is the mass class?
the many millions of people how enjoy a level of purchasing power thats sufficient to let them afford high qulaity products expect colledge housing and luxury cars
which luxury attitude has consumers that pay a premium for goods that express their individuality and make others take notice
luxury is an indulgence
what are the 3 types of social mobility?
upward downward horizontal- moves from one position to another thats roughly equivalent in social status
what is status signaling?
the extent to which a brand employs prominent signs of status such as a well known logo on merchandise
worldview of someone who tries to be open to the world and strives for diverse experiences
cosmopolitanism
which luxury attitude has consumers who do alot of extensive prepurchase research and make logical decisions rather than emotional or impulsive choices?
luxury is functional
what are the 5 problems with social class segmentation?
- Ignores status inconsistencies
- Ignores intergenerational mobility
- Ignores subjective social class
- Ignores consumers’ aspirations to change class standing
- Ignores the social status of working wives
karl marx said a persons realationship to what determined his position in societ?
the means of production
someone who refuses to sacrifice style but still achieves it on a budget
frugalista
what is a plutonomy?
an economy thats driven by a fairly small number of rich people
T/F worldview is not a way to differentiate among social classes
F
the passage of individuals from one social class to another
social mobility
what is parody display?
a sophisticated form of conspicuous consumption where one deliberately avoids status symbols…seeks status by mocking it (upper classes driving jeeps)
what is consumer confidence?
beliefs about what the future holds
T/F Our confidence in our future, as well as in the overall economy, determines how freely we spend and the types of products we buy.
T
the gap between what workers with a college degree earn compared with those without one is called the?
college wage premium
which luxury attitude has consumers that have the desire to be successful and demonstrate this to others so they buy conspicuous items like expensive cars and homes?
luxury is a reward
a sophisticated form of conspicuous consumption where one deliberately avoids status symbols…seeks status by mocking it (upper classes driving jeeps)
parody display
the display of blatant status symbols to ensure that others recognize ones luxury brands
brand prominence
what is affluenza?
when well off consumers are stressed or unhappy despite of or even because of their wealth
what is a better predictor of major nonstatus/nonsymbolic expenditures…. social class or income?
income
what is the nouveau riche?
people who recently acheived their wealth and who dont have the benefit of years of training to learn how to spend it
what is hedonic adaptation?
belief that to maintain a fairly stable level of happiness we tend to become used to positive and negative events in our lives
middle and upper classes reporduce less than lower classes. this is called?
differential fertility
what is discretionary income?
the money available to a household over and above what it requires to have a comfortable standard of living.
what is the bottom of the pryramid?
the huge number of consumers that do not have enought purchasing power to buy 10,000 worth of products for themselves and their families
what is homogamy?
when we marry people in a social class similar to our own
when well off consumers are stressed or unhappy despite of or even because of their wealth
affluenza
people for whom productive work is taboo
leisure class
what is a spendthrift?
enjoys buying everything in sight
products whose primary function is to communicate ones social standing to others
status symbols
what is a taste culture?
differentiates people in terms of their aesthetic and intellectual preferences
what are the 3 ways brand loyal consumers deal with counterfeiting?
- flight- stop using brand
- reclamation- go out of their way to emphasize their long relationship with the brand express concern that its image will be tarnished
- abranding- disguise their luxury items in belief that high status peeps dont need to display expensive logos like the lower status people do
what is differential fertility?
middle and upper classes reporduce less than lower classes
does social class affect access to resources?
yes
what is a frugalista?
someone who refuses to sacrifice style but still achieves it on a budget
which is more influential on class…..how money is spent or income?
how money is spent
what is the single best indicator of social class?
occupational prestige
what are status symbols?
products whose primary function is to communicate ones social standing to others
people who recently acheived their wealth and who dont have the benefit of years of training to learn how to spend it
nouveau riche
the extent to which a brand employs prominent signs of status such as a well known logo on merchandise
status signaling
what is the leisure class?
people for whom productive work is taboo
which is a better predictor of lower to moderately priced symbolic purchases….social class or income?
social class
what is social class?
the overall rank of people in a society
which luxury attitude has consumers who buy things that will last and have enduring value?
luxury is functional
the phenomenon of conspicious consumption is most evident for what class
leisure class
belief that to maintain a fairly stable level of happiness we tend to become used to positive and negative events in our lives
hedonic adaptation
what culture differentiates people in terms of their aesthetic and intellectual preferences
taste
what is conspicuous consumption?
peoples desires to provide prominent visible evidence of their ability to afford luxury goods
the top fifth of social classes controls what percentage of all assets?
75%
why must there be more likely upward mobility in our society?
middle and upper class reproduce less and restric family size alot to below replacement level
what is cosmopolitanism?
worldview of someone who tries to be open to the world and strives for diverse experiences
the overall rank of people in a society
social class
Is occupational prestige stable over time and similar across cultures?
yes
what age group accounts for about half the discretionary income
35- 55
T/F We group consumers into social classes that say a lot about where they stand in society.
T
what is brand prominence?
the display of blatant status symbols to ensure that others recognize ones luxury brands
what 3 factors affect the savings rate?
Pessimism/optimism
World events
Cultural differences in attitudes toward savings
an economy thats driven by a fairly small number of rich people
plutonomy
consumers views of luxury goods are based on what 3 attitudes?
- luxury is functional- buy things that last and have enduring value 2. luxury is a reward- use luxury good to say i’ve made it 3. luxury is an indulgence- want to be extremely lavish and self indulgent
when we use buying things to inspire envy in others through our display of wealth or power
invidious distinction
when we marry people in a social class similar to our own
homogamy
which luxury attitude has consumers that use these goods to say they’ve made it?
luxury is a reward
what is social mobility
the passage of individuals from one social class to another
which is a better predictor of expensive , symbolic products social class or income?
need both
