CHAPTER 12

Income-based Marketing, Top/Bottom of Pyramid, Luxury Classifications

Two factors contribute to an (overall) upward income trajectory: a shift in women's roles and increases in educational attainment: The vast numbers of low-income consumers are referred to as the bottom of the pyramid.

We tend to marry people in a similar social class to ours. Sociologists call this ________, or assortative mating.

homogamy

Money available to a household over and above what is required to have a comfortable standard of living is called ________.

descretionary income

A ________ is an economy that is driven by a fairly small group of rich people.

plutonomy

About 78% of the population are low income consumers who may not have electricity or access to clean water. These people need inexpensive products to satisfy basic needs are known to marketers as:

(bottom of pyramid)

Frugalistas

Consumers who refuse to sacrifice style, but achieve it on a budget

Fred has been a farmer all his life. He inherited the family farm when he was 35, but that was twenty years ago. Due to the economy, Fred has lost the farm and has taken a manual labor job in the city to support his family. What form of mobility best describes Fred's position?

Downward Mobility

Consumers who refuse to sacrifice style, but achieve it on a budget are called ________.

Frugalistas

Income Inequality and Social Mobility, Upward/Downward/Horizontal Mobility

Income inequality is the extent to which resources are distributed unevenly within a population. Horizontal mobility occurs when a person moves from one position to another that's roughly equivalent in social status

What is homogamy? Give and example.

Marrying people in a similar social class to ours

Harry was the lead singer in a band that hit it big. For his birthday, Harry had two hundred friends flown by chartered jets to a private island in the South Pacific. They ate the most expensive food, and every morning the bungalows were burned to the ground and rebuilt for the next night. Harry's party is a good example of ________.

conspicuous consumption

Status Signals: Conspicuous Consumption. Leisure class, cougars, Invidious Distinction

conspicuous consumption refers to people's desires to provide prominent visible evidence of their ability to afford luxury goods.--e leisure class; people for whom productive work is taboo.--Individious Distinction: the impulse among some people to obtain objects, or cultivate expertise in areas of craft or knowledge, that sets them apart from their fellows

Sandra decided to become a nurse after several years as an elementary teacher. She still wanted to help people but in a different manner. Sandra's case is an example of which of the following?

horizontal mobility

A member of ________ has recently gained personal wealth and may experience status anxiety. Such individuals may try to display symbols of their success to make up for an internal lack of assurance about the "correct" way to behave.

nouveauriche

________ refers to the passage of individuals from one social class to another

social mobility

Social Stratification, Occupational Prestige, Affluenza, Cosmopolitanism

social stratification refers to those processes in a social system by which scarce resources are distributed unequally to status positions that become permanently ranked in terms of the share of valuable resources each receives.---- occupational prestige:A system which defines people by what they do for a living ---Afluenza: Many well-off consumers seem to be stressed or unhappy despite or even because of their wealth---Cosmopolitanism:someone who tries to be open to the world and who strives for diverse experiences

Consumers who buy everything in sight are called ________

spend thrifts

Social Class: Status Crystallization, Status Symbols,

status crystallization to assess the impact of social class inconsistency---status symbols: s term describes possessions (or the use of services) that communicate wealth or prestige to others

When a Rolls-Royce, a Cartier diamond, and an Andy Warhol painting are bought and displayed as markers of social class, they are ________.

status symbols