week four - social strata

Question 1

what is the difference between culture and social strata

Answer 1

• culture: describes the whole society
• social strata: describes the internal organisation of society

Question 2

what is social stratification in marketing

Answer 2

the presence in a society of clearly distinct consumer groups divided by socio-economic factors

Question 3

why are marketers interested in social class when marketing their products

Answer 3

social class is a useful factor to consider in segmentation and targeting

Question 4

what is social class

Answer 4

the general description of the overall rank of people in a society

Question 5

define status

Answer 5

the position an individual holds within the social system as it is perceived by other members of society

Question 6

what does status determine

Answer 6

• amount of money spent
• how money is spent

Question 7

what are the characteristics of social strata

Answer 7

• they are multidimensional: functional/symbolic dimension
• they have homogenous behaviours
• there is an awareness of group
• they present hierarchical positions
• they manifest antagonistic relationships
• they are related to maslow’s pyramid of needs
• they are dynamic and open systems, but fairly stable
• there is social mobility: horizontal/vertical (upward and downward) mobility

Question 8

maslow’s pyramid of needs

Answer 8

topic 4, check slides

Question 9

what determines the social status of an individual

Answer 9

• income
  determines the purchasing power and lifestyle
• prestige
  (depends on the characteristics of the society)
• occupation
  occupation can be a way to assess the value of the individual, influencing social prestige
• education
  can condition the social ascent
• economic condition
  affects the lifestyle

Question 10

what are the measuring methods of social strata

Answer 10

• reputational method
  the individual is asked to indicate which social strata their peers belong to
• sociometric method
  the individual is asked about personal relationships
• subjective method
  the individual needs to self-position in a social classification
• objective methods
  individuals are classified according to certain stratified variables –> simple index (single-item)/composite index (multi-item)

Question 11

what are some simple index objective methods

Answer 11

• income
• professional category
• education
• possessions

Question 12

what are some composite objective methods

Answer 12

• hollingshead index (ISP): occupation, education
• warner index (ISC): occupation, income source, type of house, dwelling area

Question 13

what behaviours of consumer behaviour can be influenced by social strata

Answer 13

• Qualitative and quantitative dimensions of consumption
• frequency of purchase
• location and types of shops there
• sources of information
• motives and needs
• learning
• personality and attitudes
• evaluation criteria
• price sensitivity

Question 14

1other differences among social classes

Answer 14

• leisure activities
• personal preferences and lifestyles
• home decor
• method of payment

Question 15

10 highly effective luxury brand digital marketing

Answer 15

1. Take advantage of visual social networks
2. Build a website that combines style, user experience, and
   functionality
3. Use brand heritage to tell the stories behind products
4. Use Facebook Ads to reach luxury shoppers
5. Don’t underestimate the value of good SEO
6. Create aspirational content to educate customers
7. Supply content that appeals to people’s desire to display
   their status
8. Create a sense of exclusivity online
9. Never stop building your list
   10.Take the in-store experience online, and the online
   experience in-store