Chapter 11 Flashcards
Money =
success/failure, social acceptability, security, love or freedom
Discretionary income
- The amount of an individuals or a households income available for spending after the essentials (such as food, clothing and shelter) have been taken care of
Discretionary income =
gross income – taxes – all compelled payments
Disposable income =
gross income – taxes
Low income cut-off (LICOs)
Income threshold below which a family will likely devote a larger share of its income on the necessities of food, shelter and clothing than the average family
Gini coefficient
A measure of the inequality of a distribution (income and wealth)
Components of social class
- Occupational prestige
o stable over time and similar across cultures
o Single best indicator of social class - Income
o Wealth is not distributed evenly across class (top 10% controls 45% of all assets)
o Income per se is not often a good indicator of social class: it’s the way money is spent and now how much is spent - Education: related to both occupation and income
How to use social class and income to predict consumer behaviour
- Social class: symbolic aspects but low-to-moderate prices
o E.g: cosmetics and liquor - Income: major expenditure that do not have status or symbolic aspects
o E.g.: major appliance (dishwasher, stove)
- Social class and income: expensive, symbolic products o E.g.: cars and homes
Achieved status
earned through hard work
Ascribed status
born with a silver spoon
Social mobility
passage of individual from one social class to another
o Horizontal mobility (from one occupation to another in same social class)
o Downward mobility
o Upward mobility
Myth
Story containing symbolic elements that represent the shared emotions/ideals of culture
o Conflict between opposing forces
o Outcome is moral guide for people
o Reduces anxiety
ex of Marketer creating own myth
o McDonalds golden arches = the hamburgerlar has to learn appropriate behaviour
o Startup myths for nike, Apple
Rituals
Set of multiple, symbolic behaviours that occur in a fixed sequence and that tend to be repeated periodically
Many consumers activities are ritualistic -ex
o Trips to starbucks
o Pulling the perfect pint of Guinness
Business supply rituals artifacts (items needed to perform rituals) to consumers - ex
o Wedding rice, birthday candles, diplomas, online gift registries
Consumers often employ a ritual script - ex
o Graduation programs, etiquette books
Sacred consumption
involved objectives and events that are set apart from normal activities that are treated with respect or awe
Profane consumption
involves consumer objects and events that are ordinary and not special
