Consumer Behavior 101: Culture and Subculture - Social Class Measurement Consequences for Consumption

What It Is

Social Class refers to the hierarchical division of society based on economic and social status. A key example is the concept of Veblen's Theory of Conspicuous Consumption (1899), which suggests that individuals in higher social classes consume luxury goods to signal their status and distinguish themselves from others. This matters for understanding consumers because it highlights the role of social comparison and status-seeking in shaping consumption behavior.

Key Terms & Concepts

• Social Stratification: The division of society into distinct social classes based on economic and social status.
• Veblen's Theory of Conspicuous Consumption (1899): The idea that individuals in higher social classes consume luxury goods to signal their status and distinguish themselves from others.
• Weber's Class Theory (1922): A sociological theory that categorizes social classes based on economic factors, such as income and occupation.
• Pareto's 80/20 Rule (1906): A principle that suggests that 20% of the population holds 80% of the wealth, highlighting the concentration of wealth among the upper class.
• Maslow's Hierarchy of Needs (1943): A psychological theory that proposes that individuals have different levels of needs, with basic needs (e.g., food, shelter) preceding higher-level needs (e.g., self-esteem, status).
• Fishbein's Multi-Attribute Model (1967): A model that suggests that consumers make purchasing decisions based on multiple attributes, such as price, quality, and brand reputation.
• Actual Self vs. Ideal Self: A distinction between an individual's current self-concept and their desired self-concept, which can influence consumption behavior.
• Need Recognition vs. Opportunity Recognition: A distinction between the process of identifying a need and the process of recognizing an opportunity to satisfy that need.
• Hofstede's Cultural Dimensions Theory (1980): A framework that categorizes cultures based on six dimensions, including power distance and individualism, which can influence consumption behavior.
• Bourdieu's Cultural Capital Theory (1986): A theory that suggests that cultural knowledge and skills can be used as a form of capital to distinguish oneself from others.
• Karl Marx's Theory of Alienation (1844): A theory that suggests that capitalism can lead to alienation, or a sense of disconnection from one's true self and others.

Common Misunderstandings

• Misunderstanding: Social class is solely determined by income.
• Correction: Social class is a complex construct that takes into account economic, social, and cultural factors, including occupation, education, and lifestyle.
• Misunderstanding: Conspicuous consumption is only practiced by the wealthy.
• Correction: Conspicuous consumption can be practiced by individuals across various social classes, as a means of signaling status and distinction.
• Misunderstanding: Maslow's Hierarchy of Needs is a linear progression.
• Correction: Maslow's Hierarchy of Needs is a non-linear progression, with individuals often experiencing multiple levels of needs simultaneously.

Quick Application / Identification

Scenario: A young professional, Sarah, is considering purchasing a luxury handbag to signal her status and success. Which concept is most relevant to her decision-making process?

Answer: Conspicuous Consumption. Explanation: Sarah's decision to purchase a luxury handbag is influenced by her desire to signal her status and distinguish herself from others, which is a key aspect of Veblen's Theory of Conspicuous Consumption.

Last-Minute Revision

• Veblen's Theory of Conspicuous Consumption (1899)
• Weber's Class Theory (1922)
• Pareto's 80/20 Rule (1906)
• Maslow's Hierarchy of Needs (1943)
• Fishbein's Multi-Attribute Model (1967)
• Actual Self vs. Ideal Self
• Need Recognition vs. Opportunity Recognition
• Hofstede's Cultural Dimensions Theory (1980)
• Bourdieu's Cultural Capital Theory (1986)
• Karl Marx's Theory of Alienation (1844)
• Social Stratification
• Social Class
• Upper Class
• Middle Class
• Lower Class
• Conspicuous Consumption
• Symbolic Consumption
• Social Class is not the same as income
  Conspicuous Consumption is not limited to luxury goods
  Maslow's Hierarchy of Needs is not a linear progression