Chapter 10 part 2

Question 1

How can the flc concept impact a single product overtime

Answer 1

Holidays

Question 2

What are the modifications to the traditional flc?

Answer 2

think of why non nuclear families exist
Modifications:
1. Contemporary South African life stages
2. consumption in non-traditional families
3. dual-income households

Question 3

Expand upon contemporary South African life stages

Answer 3

The SAARF Developed the life stages that can be used by marketers to identify specific segments for their product and services and research the consumer behaviour of the members of specific groups. there are eight life stages.

Question 4

Expand upon consumption in non-traditional families

Answer 4

When households undergo status changes (divorce, temporary retirement, a new person moving into the household, or the death of a spouse), they often undergo spontaneous changes in consumption related preferences.

Question 5

expand upon dual- income households

Answer 5

DSWI-Dual spousal work involvement - Composite Index that uses occupational status and the career commitments of both spouses as a basis for segmentation

Question 6

Define social class

Answer 6

The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.

Question 7

What is the difference between social class and social status

Answer 7

researchers often measure social class in terms of social status; that is, they define each social class by the amount of status the members of the class have in comparison with members of other social classes. The relative rankings of members of each social class in terms of specific status factors such as; wealth, power, prestige

Question 8

what is social comparison theory

Answer 8

comparison of an individual’s own material possessions with those owned by others in order to determine their relative social standing

Question 9

How is the hierarchy of social class used in segmentation

Answer 9

 Consumers may buy certain products favoured by own or higher class And avoid products perceived to be lower class
 Shared values, attitudes and behaviours are easily detected among a specific consumer group

Question 10

What are the social class categories

Answer 10

lower class, working class, middle class, upper middle class and upper class

Question 11

How is social class measured?

Answer 11

1. subjectively - individuals estimate their own social class
2. objectively - individuals answer specific socio-economic questions and then are categorized according to their answers; can be single variable indices or composite-variable indices

Question 12

Explain single variable indexes:

Answer 12

uses just one socio economic variable to evaluate social class membership such as:

1. occupation - most widely accepted and best documented measure
2. education - the more education a person has the more likely it is at the person as well paid and has an admired or respected position
3. income

Question 13

Explain composite variable indexes

Answer 13

combination of various socio-economic factors to measure a social- class standing
The Warner’s index of status characteristics measures the socioeconomic variables (ISC)

Question 14

Explain the dynamics of social class mobility

Answer 14

There can be upward social class mobility as seen in South Africa with the development of black diamonds the new black middle class. The black community has gained extensive access to credit, aswell as better education, which enables entry to a middle class lifestyle. Any individuals can achieve upward mobility because of the availability of new possibilities and bbbee. 
Downward mobility may occur as seen in the previous white middle class falling into the lower class. Service delivery and job creation as well as financial crises can cause individuals to slip into a lower class. some young adults in the European Union are not likely to do better than their parents

Question 15

What is the importance of Geo- demographic clustering?

Answer 15

A composite segmentation strategy that uses both geographic variables (postal codes, neighbourhoods) and demographic variables (e.g., income, occupation) to identify target markets.

Question 16

Affluent

Answer 16

Especially attractive target segment because its members have incomes that provide them with a disproportionately larger share of discretionary income - spare cash to purchase luxury items. There is a strong positive relationship between affluence and health. Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income

Question 17

Describe the working class

Answer 17

> Downscale consumers have more brand loyalty than wealthier consumers due to
not being able to make any mistakes
This type of consumer spends most of their income on food
South Africa’s has more working-class citizens than other type of social classes

Question 18

Technology and class

Answer 18

• Having competency with technology
• Those without are referred to as “technologically under-classed”
• Parents are seeking computer exposure for their children
• Geeks now viewed as friendly & fun

Question 19

How does social class influence attitudes to clothing, fashion and shopping?

Answer 19

= Consumers dress to fit their self-image (This includes their perceptions of their own social-class membership)
= Social classes have different ideas of what is fashionable
= Health, wellness, and gym memberships are mostly seen in the middle and high social class
= Young Africans in the middle and upper social class prefers showing brands off

Question 20

How does social class influence saving, spending and credit?

Answer 20

• Upper-class consumers are more invested in the future (Prefers saving)
• Lower-class consumers prefer instant gratification and will only save for security and safety purposes
• South Africa has low savings and high credit spendings