Consumer Behaviour- Chp. 13

True of False: Income is a better predictor of major expenditures that do not have status or symbolic aspects?

TRUE

True or False: Social class is a better predictor of purchases that have symbolic aspects, but low-to-moderate prices?

TRUE

Conspicuous Consumption

The desire of people to provide prominent, visible, evidence of their ability to afford luxury goods-- Thorstein Veblen

What is the difference between ascribed and achieved status?

The former refers to status earned through birth right or some other form of previous good fortune, whereas the latter refers to status earned through independent diligence

What are the 3 shopper groups as identified by Walmart consumer researchers?

1. Brand Apsirationals: low income, love brand names 2. Value-priced: like low price, cannot afford more 3. Prince-sensitive: wealthy, love deals

What are the 3 categories of consumers in relation to luxury goods?

1. Luxury is functional: buy things that last, plenty of prepurchase research, logic over emotion 2. Luxury is reward: demonstration of success 3. Luxury is indulgence: lavish demonstration of individuality, emotion over logic, impulse purchase

What are the 2 ways to communicate product benefits?

1. Restricted Codes: content of objects 2. Elaborated Codes:relationships among objects

What are the 2 types of frugal consumers?

1. Spend Thrifts: spend cautiously because they enjoy saving money 2. Tightwads: spending is an unpleasant experience

Consumer Confidence

A consumer's belief about what the future holds for society's economic state, reflecting the extent to which people are optimistic or pessimistic about the future health of the economy and how they predict they'll fare

Behavioural Economics (Economic Psychology)

A form of psycho-analysis that considers the "human" side of economic decisions; questions include what a consumers' motives and expectations are about the future of their current spending, how their decisions may affect society's general economic well-being, etc.

Mass Class

A large segment of the consumer population who now enjoy a level of purchasing power that enables them to afford high quality products, except for the traditional big-ticket items

Parody Display

A method for deliberately avoiding status symbols, i.e. seek status by mocking it

Cultural Capital

A set of distinctive and socially rare tastes and practices or knowledge of refined behaviour that admits a person into the realm of the upper class

Invidious Distinction

A theory of social analyst Thorstein Veblen which states that a major role of products is to inspire envy in other through displays of wealth or power

Upward Mobility

Occurs when a person moves into a new social status that was above their current position

Downward Mobility

Occurs when a person moves into a new social status that was below their current position

Taste Culture

Differentiates people in terms of their aesthetic and intellectual preferences

Horizontal Mobility

Occurs when person moves from one position to another that is roughly equivalent in social status

True or False: Social class is the better predictor of purchases that are both expensive and symbolic?

FALSE: both social class and income data are required

Discretionary Income

Is the money available to a household over and above that required for a comfortable standard of living

What does BRIC represent?

It is an acronym for the the biggest emerging markets-- Brazil, Russia, India and China

Social Mobility

Refers to the passage of individuals from one social class to another

What is the difference between potent actors and impotent actors?

The former refers to those who believe that they are at the mercy of their economic situation, whereas the latter refers to those who believe they have the ability to take actions that affect their world

Habitus

The physical and constitutional characteristics of an individual; behavior and appearance; predisposition or status-marking force

Status Crystallization

The question of whether or not an individual with high status based on one dimension will have high status based on the other dimensions; reflects the (in)consistency of status dimensions

Social Class

The rank of individuals or groups in societies or cultures; determined by a set of variables that include, but are not limited too, income, family background, and occupation

Income

The sum of earned monies and gifts in a given period

Homogamy

The tendency for people to marry individuals in a similar social class to themselves; a.k.a. assortative mating

Social Stratification

Those processes in a social system by which scarce and valuable resources are distributed unequally to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives

Status Hierarchy

Whereabouts some members are somehow better off than others; have more authority or power, or other other members simply like or respect them more