Income & Social Class Flashcards
Gini Coefficient:
Number between 0 and 100, where 0 -> everyone has the same income, and 100 -> one personal has all the income and everyone else has 0).
Money and Happiness: Hedonic Treadmill:
People adapt to positive/ negative events/ circumstances.
Money and Happiness: Need satisfaction:
Needs that are “expensive” (need for social status) do not necessarily bring happiness.
Money and Happiness: Material goods < Experiences
Experiences bring more happiness than material goods.
Money and Happiness: Maximizers
Make more money, but tend to be satisfied.
Purchases are based on:
Consumers’ preferences and the price of the product.
If consumers like the product the [ ] in the brain lights up that is associated with [ ], [ ].
Nucleus accumbens, anticipation of a reward, positive arousal
If price is more than the consumer would like, the [ ] in the brain is activated and its associated with [ ], [ ], & [ ].
Insula, pain, stress and negative arousal.
Paying less painful when you can do it later, or its very easy (contactless, one-click, automatic).
Social class:
Rank of people in society, based on prestige from occupation, income level, education.
Social mobility:
Movement of individuals from one class to another.
Homogamy:
Tendency to marry people in a similar social class.
Hypergamy:
Marrying up.
Hypogamy:
Marrying down.
Conspicuous consumption:
Buying expensive items to display wealth, income and social class due to the need for status (status signalling).
- Big/ loud logos
- Not necessarily wealth
- Target = Customers with a high need for status that want to display their wealth
- Marketing with celebrities, lots of flash
