1.

Social Class
A hierarchy in society where individuals are ranked based on status (e.g., upper, middle, working
class).
Example: A CEO belongs to the upper class, while a retail worker may belong to the working class.

2. Characteristics of Social Class

• Hierarchical: Classes are ranked (e.g., upper > middle > lower).
• Natural Segmentation: Used in marketing to target specific class-based groups.
• Frame of Reference: Influences buying choices.
• Reflects Social Status: Indicates position in society.
• Mobility: In countries like Canada, people can move up/down the social ladder.
Example: A student from a lower class becomes a doctor and moves to upper-middle class.

3. Social Class vs. Social Status

Social class refers to group rankings; status is the individual's rank based on wealth, power, or
prestige.
Example: A wealthy entrepreneur (high wealth) may have higher status than a government clerk.
4. Social Comparison Theory People
evaluate their own social standing by comparing themselves to others' possessions.
Example: Buying the latest iPhone to feel on par with peers.

5. Status Consumption
Buying visible or luxury items to show off wealth and improve social image.
Example: Purchasing a designer handbag to appear affluent.

6. Social Class Measurement

• Subjective: People rank themselves.
Example: "I think I’m middle class."
• Reputational: Others rank someone.
Example: Neighbors think Mr. X is upper-middle class.
• Objective: Based on occupation, education, income.
Example: A software engineer with a degree and high salary = upper-middle class.
• Single-variable indexes: Use just one factor (e.g., income only).
• Composite index: Combines multiple factors like occupation, dwelling type, and source of
income.
• 7. What is Middle Class?
Households with mid-range income, educated adults, use of tech, and active in kids’ education.
Example: A teacher and nurse family owning a suburban home.
8. What is Working Class?
Lower-earning households who contribute 30%+ of U.S. income and show high brand loyalty.
Example: A warehouse worker preferring to buy the same detergent brand consistently.
9. Social Class & Marketing Strategy
• Clothing & Shopping: Where and how people shop differs by class.
Example: Upper class shops at luxury brands, working class at discount stores.
 • Leisure: Class affects hobbies.
Example: Upper class might play golf, working class may watch local sports.
• Spending & Credit: Higher classes delay gratification, lower classes often prefer immediate
rewards.
Example: Wealthy buyers invest; working class may buy on credit.
• Communication & Media Use: Upper classes have broader worldviews, language and
media use vary by class.
Example: Magazines and TV shows preferred differ by class.

10. Limitations of Social Class

• Harder to measure than income alone.
• Income may better explain purchases than class.
• Consumption often reflects aspired class.
• Dual incomes affect behavior.
• Single class dimensions can be better predictors.
Example: A high-income plumber may spend differently than a lower-paid professor.
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What is a Group: Two or more people who interact to accomplish individual or mutual goals.
Reference Group: A person or group used as a comparison to form values, attitudes, or behaviour.
Types of Reference Groups:
→ By Membership:
• Membership Group: One the individual actually belongs to (e.g., school friends).
• Symbolic Group: One the individual aspires to but isn’t part of (e.g., celebrities).
→ By Extent of Interaction:
• Direct: Involves face-to-face interaction (e.g., colleagues).
• Indirect: No direct contact, only observed (e.g., influencers).
→ By Nature of Attraction:
• Aspirational: Group the person wants to join (e.g., athletes).
• Dissociative: Group the person avoids (e.g., addicts).
→ By Degree of Formality:
• Formal: Organized and structured group (e.g., church group).
• Informal: Casual and unstructured group (e.g., friend circle).
Types of Reference Group Influence:
• Informational Influence: Group provides knowledge used in decisions (e.g., expert advice).
• Normative Influence: Conforming to norms to gain group acceptance (e.g., dress codes).
• Identification Influence: Internalizing group values and acting accordingly (e.g., joining
activism).
Selected Consumer-Related Reference Groups:
• Friendship Groups: Close peers affecting daily decisions.
• Shopping Groups: Companions influencing purchases during shopping.
• Work Groups: Colleagues affecting work-related or personal consumption.
• Virtual Groups/Communities: Online communities that influence preferences.
• Brand Communities: Consumers loyal to and bonded over a brand (e.g., Apple fans).
 • Consumer-Action Groups: Groups promoting social/consumer causes (e.g., PETA).
• Celebrities: Famous figures acting as aspirational or symbolic reference points.
Reference Groups and Marketing Strategy:
Marketers must assess reference group influence in a situation, choose the most effective influence
type, select suitable group members for promotions, and find ways to boost group influence on
consumer behaviour.
The Family Life Cycle
• Traditional Family Life Cycle : Stage I: Bachelorhood Stage II: Honeymooners Stage III:
Parenthood Stage IV: Post-parenthood Stage V: Dissolution
Other Functions of the Family
• Economic well-being 2.Emotional support 3.Suitable family lifestyles
Family and Marketing Strategy
• Use the FLC for segmentation and positioning
• Recognize the diverse consumption roles within the family
• Understand and use the dynamics of husband-wife decision making
• Understand and use the consumer socialization role played by the family
• Recognize the changing nature of Canadian families.
Types of New Products
Even though thousands of products are offered for the first time each year, less than
10 percent are entirely new and innovative. Booz, Allen & Hamilton has identified six
categories of new products:
1. New-to-the-world products: New, innovative products that create an entirely new
market
2. New product lines: New products that allow a company to enter an established
market for the first time
3. Additions to existing product lines: New products that supplement a company’s
established product lines (package sizes, flavors, and so)
4. Improvements and revisions of existing products: New products that provide
improved performance or greater perceived value and replace existing products,
such as Microsoft Office 2000.
5. Repositioning: Existing products that are targeted to new markets or market
segments, such as repositioning Johnson & Johnson’s Baby Shampoo for adults as
well as youngsters.
6. Cost reductions: New products that provide similar performance at lower cost,
such as Intel’s Celeron chip.
Five characteristics influence the rate of
adoption of an innovation:
(1) relative advantage—the degree to which the innovation appears
superior to existing products;
(2) compatibility—the degree to which the innovation matches the
values and experiences of the individuals;
(3) complexity—the degree to which the innovation is relatively difficult
to understand or use;
(4) divisibility—the degree to which the innovation can be tried on a
limited basis; and
(5) communicability—the degree to which the beneficial results of use
are observable or describable to others.
This is 5th
Key Changes in Consumer Behaviour
1.Consumers compare beyond competitors 2.Less tolerant, harder to satisfy
• Increased customer-to-customer interaction 4.Greater influence of social media
• Decline in brand loyalty 6. Demand for value and quality
• More informed due to digital tech 7. Multichannel behavior increasing

Consumer Expectations
1. Desire for elevated, rewarding experiences 2.Rise of try-before-you-buy models

Omnichannel and Mobile Purchasing

• Surge in mobile and tablet purchases
• Importance of consistent, channel-agnostic experiences
• Need for mobile-optimized and unified retail systems

Personalization
• Shift from mass marketing to individual engagement
• Adoption of cloud-based POS and in-store personalization

Real-Time Customer Service

• Need for fast, authentic interaction
• Self-service and visualization tools growing
• Social media as a core service platform

Emerging Consumer Trends

• Multiplicity: Desire for multi-sensory, interactive, participative experiences
• Hyper Efficiency: Smarter, faster solutions; multifunctional usage
• New Industrial Revolution: Consumers become creators using digital tools
• Escape: Craving for fun, indulgence, and freedom
• Mindfulness: Focus on depth, ethics, and disconnecting from tech

Tech-Driven Trends Impacting Consumer Behaviour

• Smartphones: Multifunctional tools affecting purchasing, shopping, and information
• Social Media: Drives opinions, flexible adoption across platforms
• Online Education: Growing market with sustained digital demand
• Mobile Payments: Growth of digital wallets and POS mobile commerce
• Mobile Apps: Expanding influence across industries
• Smarter Living: Adoption of energy management and efficient living tech