Chapter 12
The ________ richest people in the world are worth $1.9 trillion. This is about the same amount shared by the 3.5 billion people who are in the bottom half of the world's income bracket.
80
____________ is one way to differentiate among social classes.
world view
Shirley buys an expensive handbag and then sees a woman walking on Worth Avenue with a faux version. Shirley decides to disguise her genuine handbag because she believes that truly high-status people do not need to display expensive logos, whereas those who do are demonstrating that they belong to a lower status. Marketers would describe this coping strategy as ________.
abranding
Many argue that America's economy can be described as one that is driven by a fairly small number of rich people. In fact, Citigroup strategists created the term ________ to describe this type of economy.
plutonomy
This term is used to describe an economy that's driven by a fairly small number of rich people.
plutonomy
Social analyst Thorstein Veblen criticized the "decorative" role of women, as rich men showered them with expensive clothes, pretentious homes, and a life of leisure as a way to advertise their own wealth. Today, we refer to these women as ________.
trophy wives
Marketers understand that individuals make statements about their social class through product purchases. Research on the study of the impact of fakes finds a major headache for many manufacturers, especially in Asia. Officials in China estimate that ________ percent of the products made there are counterfeit.
15 to 20
describes the state of mind consumers have regarding their overall economic prospects, which impacts their decisions on the purchase of goods and services and their willingness to take on debt or save their money.
Consumer confidence
If a person who bought the real thing sees imitations of their prized handbag or watch paraded in public, they can respond in a number of ways. One approach is to discontinue using the brand to avoid being mislabeled as a lesser-status person who purchases counterfeit brands. Which term do researchers use for this consumer reaction?
Flight
Devon has a more emotional approach to luxury spending and is more likely to make impulse purchases. Based on Devon's attitude towards luxury, SRI Consulting Business Intelligence would place her in which consumer group?
Luxury is indulgence
sRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury. Which phrase is used by marketers to describe consumers who use their money to buy things that will last and have enduring value?
Luxury is indulgence
Jessie uses her luxury goods to say, "I've made it." She likes to demonstrate her success to others and purchases conspicuous luxury items, such as high-end automobiles and homes in exclusive communities. SRI Consulting Business Intelligence would describe Jessie's attitude toward luxury as ________________.
Luxury is reward
The director thinks that another way to increase sales would be to explore the idea of mass class. What would be the best way for Bradfords to take advantage of the growing consumer segment of mass class?
Offer a high quality but more affordable version of the luxury watch
In the last few years, the label ________ entered our nation's vocabulary, beginning with the Occupy Wall Street movement where protestors camped out in cities across the United States.
One Percenter
_______ is the coping strategy used by consumers who go out of their way to emphasize their long relationship with the brand and express concern that its image will be tarnished.
Reclamation
Which of the following might be some good examples of how to modify a product or service to meet the needs of low-income consumers? Select all the items in the following list that apply, and click Submit.
Ship the product in a retail-ready box that will require less handling by the retailer. Reducing the size of the package can allow a more affordable price per unit. Sourcing from local suppliers could reduce shipping costs, which in turn should reduce the price to the consumer.
The creation of artificial divisions in a society, where resources are distributed based on status position, is a process called ________.
Social stratification
___________ is the use of possessions to communicate wealth or prestige to others.
Status symbolism
He says, "We have been considering developing a watch under a different brand that would target the lower income segment of the watch market. This is an often-underserved area, and we think it may provide a good opportunity for us. We want you to analyze this possibility and tell us if we should enter this lower income segment." Which of the following options is the best recommendation?
The company should develop a watch to target the lower income segment of the watch market because, combined, lower income consumers have more money than high-income consumers.
Market researchers have found that a consumer's confidence in the overall economy determines how freely they will spend their money and the types of products they will buy. ________ is the study of how consumers decide what to do with their money.
behavioral economics
When a person flaunts his status by deliberately using up valuable resources, marketers call this ________.
conspicuous consumption
When consumers ________, they reduce the amount they save, they take on more debt, and they splurge on discretionary items.
feel optimistic about the future
The director says, "We would like to know if the economic conditions are right to introduce a new luxury product." You recommend introducing the luxury watch. Which of the following would be the best economic conditions to support your recommendation?
increasing discretionary income, high consumer confidence.
Consumers who buy things to inspire envy through their display of wealth or power create ________.
invidious
The social analyst Thorstein Veblen first discussed the motivation to consume for the sake of consuming at the turn of the 20th century. According to Veblen, we purchase things to create (a) ________, which means that we use them to inspire envy in others through our display of wealth or power.
invidious distinction
Social analyst Thorstein Veblen called people for whom productive work is taboo the ________ class.
leisure
As discussed in this chapter, SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury. The smallest of the three groups includes younger consumers and more males than females. This group's attitude could be described as __________
luxury is indulgence
Which of the following refers to individuals moving upward or downward in social class?
mobility
He says, "Unfortunately, sales have been disappointing. We think that a better understanding of social class could help us better target the market. What would you recommend we include in the market research study that would help us better understand our consumers' social class? Keep in mind that this product will eventually be rolled out around the globe." Which of the following research methodologies should be used to help the company better understand social class?
not A market research study that uses a reputational methodolog
Now that you better understand your consumers' different social classes, you need to determine the best codes or imagery to use when communicating with your high social status consumer. What codes or imagery would be the best to use with a high social status consumer?
not Use imagery that shows a person feeling great right after they buy the watch.
Which of the following parameters would be the best way to understand the status hierarchy of consumers that would also be the most consistent across cultures?
not Worldwide not age and income.
You meet with the director again. He says. "Now that we have decided to enter the luxury watch market, I need you to help us with something else." He continues, "Market research tells us that most consumers in the luxury watch market use the watch to demonstrate their success. We want you to tell us which segment would be the best to target based on this market research information." Based on the market research information, which of the following would be the best segment to target?
not indulgence reward
Bill Gates and Mark Zuckerberg are individuals who recently achieved their wealth and who don't have the benefit of years of training to learn how to spend it. Market researchers would use the term ________ to describe these consumers.
nouveau riche
Some individuals who have a desire to make a statement about their social class, or the class to which they hope to belong, seek status by deliberately avoiding fashionable products. Market researchers would use the term ______ to describe the actions of these status seekers.
parody display
A range of factors influence the overall ________ including individual consumers' pessimism or optimism about events that can impact their personal circumstances, such as a sudden increase in personal wealth as the result of an inheritance or a decline in investments due to global events such as the Great Recession.
savings rate
Market researchers use the term _____ to describe products that are purchased not for the enjoyment of the item itself, but rather to let others know that the purchaser/owner can afford it.
status symbols
"We would like you to help us choose which country to target next as we roll out the product worldwide. We think the country that is the most brand-conscious would be the best choice. In addition, recent market research shows that single working women appear to be the most connected to our brand, so finding a country where they have a large influence on luxury goods spending is also important." Which of the following options is the best country considering the company's requirements?
you chose the United Kingdom. This was not the best choice. not china and japan not china middle