Chapter 12 - CB

________ is a system in which we define people by what they do for a living. A) Status hierarchy B) Occupational prestige C) Social prestige D) Social class

B) Occupational prestige

With respect to social organization, some barnyard animals exhibit signs of a dominance-submission hierarchy. Which of the following terms best illustrates such a hierarchy? A) Dog-eat-dog B) Pecking order C) Social class D) King-of-the-hill

B) Pecking Order

Define discretionary income.

Discretionary income is money available to a household over and above what is required to live comfortably.

Explain the term "hedonic adaptation."

Hedonic adaptation basically means that the consumer maintains a fairly stable level of happiness.

The American rich often indulge in luxury goods while pinching pennies on everyday items.

True

The flamboyant consumption of the nouveau riche is an example of symbolic self-completion.

True

The prestige of occupations varies dramatically from one culture to the next.

False

A person who receives rewards and status because of his hard work is said to have ________ status. A) nouveau riche B) hierarchical C) achieved D) longitudinal

C) Achieved

List the 6 social classes.

The 6 social classes are: 1. Upper-upper 2. Lower-upper 3. Upper-middle 4. Lower-middle 5. Upper-lower 6. Lower -lower

Explain what Veblen meant by the term "invidious distinction."

The meaning of invidious distinction is when consumers purchase items to inspire envy of others through their display of wealth and power.

What are the two major components of social class? Explain and comment on each component (such as which is more important).

1. Occupational prestige—this one way to evaluate the "worth" of people. Hierarchies of occupational prestige tend to be quite stable over time, and they tend to be similar in societies as diverse as Brazil, Ghana, Turkey, and Japan. If one had to choose only one indicator of social class, it would be occupation, for it is strongly linked to other variables such as use of leisure time, allocation of family resources, political orientation, and so on. 2. Income—income itself is often not a very good indicator of social class, but the way it is spent is revealing.

Explain what a credit score is and how it relates to social class.

A credit score is based on a person's outstanding debt and payment history, to see if the consumer qualifies for a loan. Today credit scores have become a badge that many use to "keep score" of a person's worth.

Why is wearing a baseball cap backward (with the brim toward the back) a type of parody display?

A parody display is a method of seeking status by avoiding it. One way this is done is by adopting clothing or material that has function in the working world in such a way that the function is minimized. The baseball cap was built with a large visor in the front to protect the eyes from the sun or rain. By wearing it backward, the wearer is demonstrating that his or her status is high enough that the actual function of the clothing object can be ignored.

Fred Johnson has worked hard all of his life to make a decent living for himself and his family. However, in recent years he has become obsessed with a fear of being ruined, either because of losing his job or losing all of his savings. According to clinical psychologists, Fred Johnson's fear of being ruined is equated to ________. A) atephobia B) harpaxophia C) peniaphobia D) aurophobia

A) Atephobia

Consumers who refuse to sacrifice style, but achieve it on a budget are called ________. A) frugalistas B) the mass class C) the nouveau rich D) social consumers

A) Frugalistas

According to Pierre Bourdieu, people's taste regarding entertainment and the arts serves as a status-making force or ________ that causes consumption preferences to cluster together. A) habitus B) code C) hierarchy D) chav

A) Habitus

A tendency for people to marry in a social class similar to their own is called ________. A) homogamy B) affluenza C) social dating D) social stratification

A) Homogamy

If a member of the upper class wore shredded Levi's jeans to a formal party, the person would be exhibiting a sophisticated form of conspicuous consumption known as ________. A) parody display B) invidious distinction C) downsizing D) status anxiety

A) Parody Display

Most groups exhibit a structure called a ________ in which some members are somehow better off than others in terms of authority, power, or respect. A) status hierarchy B) social array C) social class D) mass class

A) Status Hierarchy

The lower classes use more restrictive codes than do the upper classes. How does this knowledge change the way insurance might be sold to a working-class man compared to an upper-class man? A) The promotion to the working-class man should emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasize the long-term consequences of the choice. B) The promotion to the working-class man should emphasize the long-term benefits of insurance, while the upper-class promotion should emphasize the short-term consequences of the choice. C) The promotion to the working-class man should emphasize pictures while the upper-class promotion should emphasize words. D) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category.

A) The promotion to the working-class man should emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasize the long-term consequences of the choice.

A middle class person with an income at least 15 percent lower than the median middle class income, would be considered a(n) ________ consumer. A) underprivileged B) invidious C) restricted D) conspicuous

A) Underprivileged

Some theorists do not include income in their measure of social class, arguing that it is unnecessary. Defend this point of view and also explain why income is added when measuring social class in marketing.

According to the text, social class has two major components: occupation prestige and income. Income by itself is not a good predictor of social class. The terms "unprivileged" and "underprivileged" are used to explain how income does not adequately explain the behavioral differences between the classes. Income, in fact, can be seen as a result of occupation and education. Income can be seen as a result of class rather than a cause of class differences. As pointed out in the text, there is an interrelationship between income and social class in how customers relate to a number of product categories, meaning that a business must know both to successfully market a number of products.

Anna is a millionaire but she is constantly stressed and unhappy despite her wealth, Anna is experiencing ________. A) burnout B) class warfare C) affluenza D) cosmopolitanism

Affluenza

What modern American ceremony would come closest in intent to a Native American potlatch? A) A baptism B) A marriage C) A university graduation D) The celebration ordered by a large company that has gained a new lucrative contract

B) A marriage

Jason is a marketing researcher working for a client who believes that social class will be an important segmenting device. Jason decides to find social class categories by simply asking respondents to pick their own category. Which of the following best supports Jason's approach?

B) American consumers generally have little difficulty accurately placing themselves in the lower-middle class or middle class.

Which of the following phrases is the best illustration of homogamy? A) Opposites attract B) Birds of a feather flock together C) Leave no stone unturned D) To the victor go the spoils

B) Birds of a feather flock together

John Jones purchases products to show visible evidence of his ability to afford luxury goods, John is practicing ________. A) brand prominence B) conspicuous consumption C) brand positioning D) homogamy

B) Conspicuous Consumption

Evan was an aggressive, rich, and determined businessman originally from a working class family. He had become wealthier than he had ever imagined by buying and selling other businesses. Evan seemingly could do anything until he tried a hostile takeover of an established bank owned by several prestigious families. When his bid failed, Evan said "I always knew there was an elite, but up to now I thought I was part of it." What type of capital was Evan lacking? A) Economic B) Cultural C) Psychological D) Sociological

B) Cultural

________ are consumers who refuse to sacrifice style, but they achieve on a budget. A) Fashionistas B) Frugalistas C) Nouveau rich D) Cosmopolitanism

B) Frugalistas

Luminaries from Amazon, Google, and Twitter tend to use ________. A) hedonic adaptation B) glamping C) social capital D) cultural capital

B) Glamping

We tend to marry people in a similar social class to ours. Sociologists call this ________, or assortative mating. A) hemophilia B) homogamy C) monogamy D) cultural formatting

B) Homogamy

One percenters are an example of ________. A) pay pay ratio B) income inequality C) saving rate D) plutonomy

B) Income Inequality

Of the countries listed below, which is thought to be highly status-conscious? A) Canada B) Japan C) Brazil D) Spain

B) Japan

A ________ is an economy that is driven by a fairly small group of rich people. A) democracy B) plutonomy C) monarchy D) homogany

B) Plutonomy

________ describes consumers in terms of their aesthetic and intellectual preferences. A) A restricted code B) Taste culture C) An elaborated code D) Social culture

B) Taste Culture

Which of the following variables related to social class distinction is identified by the text as being unclear and the subject of debate with respect to its role as an indicator of social class? A) Occupation B) Education C) Amount of income D) How income is spent

C) Amount of income

Money available to a household over and above what is required to have a comfortable standard of living is called ________. A) real income B) overtime pay C) discretionary income D) average of earnings

C) Discretionary income

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? A) Horizontal mobility B) Two-way stretch mobility C) Downward mobility D) Upward mobility

C) Downward mobility

Vance comes from the lower-upper class as does Jeff. They are both madly in love with Julia, who is beautiful enough to do part-time modeling. According to the principle of ________, Julia could be attracted to both men. A) elaborated codes B) ascribed status C) homogamy D) restricted codes

C) Homogamy

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? A) Downward mobility B) Upward mobility C) Horizontal mobility D) Status crystallization

C) Horizontal mobility

The best predictor of major expenditures that do not have status or symbolic value is ________. A) social class B) income C) social class and income D) occupation

C) Social Class and Income

When a Rolls-Royce, a Cartier diamond, and an Andy Warhol painting are bought and displayed as markers of social class, they are ________. A) social inhibitors B) social parameters C) status symbols D) psychological blocks

C) Status Symbols

When people are differentiated in terms of their aesthetic and intellectual preferences, a ________ is being applied. A) culture code designation B) social cluster C) taste culture D) consumption constellation

C) Taste Culture

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. A) an old money family B) the taste culture C) the nouveau riche D) the mass class

C) The nouveau riche

The average American's standard of living continues to improve. These income shifts are linked to two key factors: ________. A) a shift from blue-collar to white-collar employment and an increase in computer usage B) an increase in immigration to the U.S. and the increase of technical skills C) a shift in women's roles and an increase in educational attainment D) a shift in population from the North to South and advances in human rights

C) a shift in women's roles and an increase in educational attainment

________ measures how optimistic or pessimistic people are about the future health of the economy and how they will fair in the future. A) Income inequality B) Credit score C) Saving rate D) Consumer confidence

D) Consumer Confidence

China's economic boom has created 130 million people in what social class? A) Upper-upper class B) Lower-upper class C) Upper-lower class D) Lower-middle class

D) Lower-middle class

Hundreds of millions of consumers around the world have the purchasing power to afford higher quality products. This consumer group, known as the ________, tend to buy affordable cars rather than luxury cars. A) plutonomy B) taste culture C) leisure class D) mass class

D) Mass Class

Jim is considered a part of the upper middle class, while Marcos is considered part of the lower upper class. Jim and Marcos have been identified in terms of ________. A) cultural capital B) occupational prestige C) social rank D) social class

D) Social Class

The ability of a person to pass from one social class to another is called ________. A) status hierarchy B) plutonomy C) hedonic adaption D) social mobility

D) Social Mobility

Amos always felt that it was unfair that society created artificial divisions that discouraged him from having friends from different social structures. Which of the following terms describes the process that Amos is having difficulty with? A) Reference group affiliation B) Bias C) Social anxiety D) Social stratification

D) Social Stratification

Although teenagers do not have the income of older consumers, they are still an attractive marked based on income. Why? A) Because they have less money, they are more careful of how they spend it. B) Parents lead the teenagers into what they buy; hence any understanding of adult buying patterns can be useful for teenagers as well. C) Teenagers have more consumer confidence and are, therefore, more likely to be swayed by promotional material. D) Teenagers don't have the income of adults, but it's almost all discretionary, meaning that they can spend it as they see fit.

D) Teenagers don't have the income of adults, but it's almost all discretionary, meaning that they can spend it as they see fit.

Explain how the relationship between England's class structure and consumption has recently begun to change.

England has traditionally been an extremely class-conscious country, with inherited position and family background largely predetermining consumption patterns. Members of the upper class attended elite schools such as Eton and Oxford and spoke with an accent distinct from that heard from members of the middle and lower classes. However, the supremacy of inherited wealth has recently faded in England as British entrepreneurs redefine the economy. The recession has also brought about a new emphasis on frugality, altering the consumption patterns across all classes.

Although there are many differences between social classes, almost all these differences can be summarized by the differences that income makes in a person's life.

False

American spendthrifts outnumber American tightwads.

False

Downward mobility is not possible is the U.S. social class system.

False

Lower-class men are more likely than middle-class men to have a general sense of empowerment.

False

Many twenty-somethings have rebelled against their more affluent parents by mocking wealth, wearing clothing such as shredded jeans and driving boxy cars. These are examples of what is called a modern potlatch.

False

Of the three groups of attitudes toward luxury, the largest group is "luxury is indulgence"; this view is held mainly by wealthy seniors citizens.

False

Plutonomy refers to the passage of individuals from one social class to another.

False

Samuel would like to use occupational prestige to measure social class, but his study is international, and prestige of occupation changes from one culture to the next.

False

Social capital refers to an individual's knowledge of the "right" behavior used in the realm of the upper class.

False

Which of the following theorists is best known for arguing that an individual's relationship to the means of production determines his position in society? A) Karl Marx B) Max Weber C) Horatio Alger D) Thorstein Veblen

Karl Marx

Explain the term "nouveau rich."

Nouveau rich describes consumers who recently achieved wealth and don't have the benefit of years of training to learn how to spend it.

Explain the difference between restricted codes and elaborated codes.

Restricted codes focus on the content of objects, not the relationship among objects. In contrast, elaborated codes are more complex and depend on a more sophisticated worldview.

Explain the concept of social mobility and its various forms.

Social mobility refers to the passage of individuals from one social class to another. There are three forms—upward (move up in social class), downward (moving to a lower social class), and horizontal (moving from one position to another [such as jobs] in the same social class strata).

Trisha grew up in a drug-ridden inner city neighborhood. Through sheer determination and intelligence, Trisha is now a medical doctor teaching on the staff of a large university hospital. Trisha is proud of what she has accomplished, but sometimes she feels stressed and uncertain of who she really is. The concept of ________ assesses the impact of such inconsistencies. A) status crystallization B) homogamy C) habitus D) invidious distinction

Status Crystallization

Explain the 2 factors that influence consumer savings.

The two factors that influence consumer savings are: 1. Consumer pessimist or optimism about their personal circumstances 2. World events

The average American's standard of living continues to improve due to two key factors. What are these factors? Provide explanatory comments about each factor.

The two key factors appear to be the shift in women's roles and increases in educational attainment. a. The shift in women's roles—Mothers with preschool children are the fastest-growing segment of working people, many of them working in high-paying occupations. This increase is a primary reason for the rapid growth of middle-and upper-income families. b. Increases in educational attainment—college graduates earn about 50 percent more than those who have only graduated from high school.

How does the worldview difference in social class help explain why the sons and daughters of working-class families typically spend their entire lives living within a hundred miles of where they were raised?

The world of the working class is more intimate and constricted. They depend heavily on relatives for emotional support and tend to orient themselves around the local community rather than the world at large. Hence, job opportunities will be sought closer to a familiar community and family.

A co-branding strategy was being utilized when the Taco Bell Chihuahua showed up in a commercial for Geico insurance.

True

A consumer's belief about what the future holds is an indicator of consumer confidence.

True

A sophisticated form of conspicuous consumption is called parody display.

True

An economy that is driven by a fairly small number of rich people is called a plutonomy.

True

An example of social mobility is when a consumer moves from one social class to another.

True

Discretionary income is the money available to a household over and above that required for a comfortable standard of living.

True

Education is one determining factor in future income.

True

Mothers with preschool children are the fastest-growing segment of working people.

True

Product complementarity occurs when the symbolic meanings of different products relate to one another.

True

Restricted codes focus on the content of objects, not on relationships among objects.

True

Social stratification refers to the creation of artificial divisions in a society.

True

The wealthiest 160,000 U.S. families are considered one percenters.

True

Tian Zhao's parents were peasants from central China. Tian earned a degree in electronics from a university and now works for a medium-sized firm building computer components. Tian has purchased a Canon camera and a Dell computer, and he wears Nike running shoes. He is a member of the mass class.

True

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

C) Social Mobility

All of the following are important components of social class except for ________. A) gender B) income C) educational attainment D) occupational prestige

A) Gender

Consumers who buy everything in sight are called ________. A) tightwads B) spendthrifts C) justifiers D) balancers

B) Spendthrifts

Which of the following is NOT listed as a determiner of how much a person will save (saving rate)? A) The individual's own sense of optimism about his or her personal circumstances B) The relationship between the lending prime rate and growth rates C) World events such as wars D) Cultural differences

B) The relationship between the lending prime rate and growth rates

Blue-collar workers with relatively high-prestige jobs consider themselves as ________. A) upper middle class B) working class lower middle C) upper lower class D) lower lower class

B) Working class lower middle

SRBI Consulting Business Intelligence divides consumers into which of the following groups? A) Luxury is functional B) Luxury is a reward C) Luxury is indulgence D) All of the above

D) All of the above

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 ________. A) parody display B) social mobility C) ascribed status D) conspicuous consumption

D) Conspicuous Consumption

George Katona is credited with creating the social class system still used in consumer behavior.

False

Allison is considered part of the "luxury is functional' group. Given this information, describe Allison's attitude about luxury and how she spends her money.

These consumers use their money to buy things that will last and have enduring value. They conduct extensive pre-purchase research and make logical decisions rather than emotional or impulsive choices.