Consumer Behavior 101: Income and Social Class - Social Class Mobility Marketing Strategy

What It Is

Social class mobility refers to the movement of individuals or families from one social class to another, either upward or downward. A notable example is the "Aspirational Marketing" campaign by Procter & Gamble's Tide laundry detergent, which targeted low-income households with the goal of improving their social status through the use of Tide. This campaign matters because it highlights the importance of understanding social class mobility in marketing strategy, as it can influence consumer purchasing decisions and brand loyalty.

Key Terms & Concepts

• Social Class Mobility: The movement of individuals or families from one social class to another, either upward or downward.
• Aspirational Marketing: A marketing strategy that targets low-income households with the goal of improving their social status through the use of a product or service.
• Maslow's Hierarchy of Needs (1943): A theory that proposes that human needs are hierarchically organized, with basic physiological needs at the base and self-actualization needs at the top.
• Veblen's Theory of Conspicuous Consumption (1899): A theory that proposes that individuals consume goods and services to signal their social status and wealth.
• Weber's Law: A law that states that the minimum amount of stimulation required to elicit a response is directly proportional to the intensity of the response.
• Fishbein's Multi-Attribute Model (1967): A model that proposes that consumer attitudes are formed through the evaluation of multiple attributes of a product or service.
• Actual Self vs. Ideal Self: A distinction between an individual's current self-concept and their ideal self-concept.
• Need Recognition vs. Opportunity Recognition: A distinction between the recognition of a consumer need and the recognition of an opportunity to satisfy that need.
• Social Identity Theory (Tajfel & Turner 1979): A theory that proposes that individuals derive a sense of identity and belonging from their membership in social groups.
• Cultural Capital (Bourdieu 1986): A concept that refers to the cultural knowledge, skills, and practices that are valued in a particular social context.
• Symbolic Interactionism (Blumer 1969): A theory that proposes that individuals interact with each other through the use of symbols and meanings.

Common Misunderstandings

• Misunderstanding: Social class mobility is only relevant to high-income households.
• Correction: Social class mobility is relevant to all households, regardless of income level, as individuals and families may move up or down the social class ladder.
• Misunderstanding: Aspirational marketing only targets low-income households.
• Correction: Aspirational marketing can target any household that is seeking to improve its social status, regardless of income level.
• Misunderstanding: Veblen's theory of conspicuous consumption only applies to luxury goods.
• Correction: Veblen's theory applies to any good or service that is consumed to signal social status and wealth.

Quick Application / Identification

Scenario: A consumer is considering purchasing a luxury watch to signal their social status. Which concept is most relevant to this decision?

Answer: Veblen's Theory of Conspicuous Consumption. Explanation: The consumer is purchasing the watch to signal their social status and wealth, which is a key aspect of Veblen's theory.

Last-Minute Revision

• Social Class Mobility is not the same as social status.
• Maslow's Hierarchy of Needs proposes that human needs are hierarchically organized.
• Veblen's Theory of Conspicuous Consumption proposes that individuals consume goods and services to signal their social status and wealth.
• Fishbein's Multi-Attribute Model proposes that consumer attitudes are formed through the evaluation of multiple attributes of a product or service.
• Actual Self vs. Ideal Self is a distinction between an individual's current self-concept and their ideal self-concept.
• Need Recognition vs. Opportunity Recognition is a distinction between the recognition of a consumer need and the recognition of an opportunity to satisfy that need.
• Social Identity Theory proposes that individuals derive a sense of identity and belonging from their membership in social groups.
• Cultural Capital refers to the cultural knowledge, skills, and practices that are valued in a particular social context.
• Symbolic Interactionism proposes that individuals interact with each other through the use of symbols and meanings.
• Weber's Law states that the minimum amount of stimulation required to elicit a response is directly proportional to the intensity of the response.
• Tajfel & Turner proposed Social Identity Theory in 1979.
• Bourdieu proposed the concept of Cultural Capital in 1986.
• Blumer proposed Symbolic Interactionism in 1969.