Consumer behavior case study with solution

CHAPTER 12 12-9 Why might a person’s social class not change when he or she earns more money? 12-10 What are some of the problems we encounter when we try to measure social class? 12-11 How do the worldviews of blue-collar and white-collar consumers differ? 12-12 What is a taste culture? 12-13 Describe the difference between a restricted and an elaborated code. Give an example of each. Income and Social Class 451 12-14 What is cultural capital, and why is enrolling in etiquette class a way to accumulate it? 12-15 How do you differentiate between “old money” versus “nouveau riche” consumers? 12-16 What roles do status symbols play in purchase decisions? 12-17 What is conspicuous consumption? Give a current example. 12-18 What is a current example of parody display? 12-19 Describe what we mean by the term mass class and summarize what causes this phenomenon. CONSUMER BEHAVIOR CHALLENGE ■ DISCUSS 12-20 Sears, JC Penney and Walmart tried hard in recent years to upgrade their images and appeal to higher-class consumers. How successful have these efforts been? Do you believe this strategy is wise? 12-21 What are some of the obstacles to measuring social class in today’s society? Discuss some ways to get around these obstacles. 12-22 What consumption differences might you expect to observe between a family we characterize as underprivileged and one whose income is average for its social class? 12-23 How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing? 12-24 In today’s economy, it’s become somewhat vulgar to flaunt your money—if you have any left. Do you think this means that status symbols like luxury products are passé? Why or why not? 12-25 Thorstein Veblen argued that men used women as “trophy wives” to display their wealth. Is this argument still valid today? 12-26 Research suggests that social class influences how much compassion people show to others who need help. For example, one study reported that luxury car drivers were more likely to cut off other motorists instead of waiting for their turn at the intersection. Another showed that less-affluent people are more likely to agree with such statements as, “I often notice people who need help,” and “It’s important to take care of people who are vulnerable.” Other studies have demonstrated that upper-class people are not as good at recognizing others’ emotions. One explanation is that more resources provide a sense of independence; the less we have to rely on others, the less we care about their feelings.120 Do you agree that wealthy people are less caring? Why or why not? 12-27 This chapter observes that some marketers find “greener pastures” when they target low-income people. How ethical is it to single out consumers who cannot afford to waste their precious resources on discretionary items? Under what circumstances should we encourage or discourage this segmentation strategy? ■ APPLY 12-28 Compile a list of occupations and ask a sample of students in a variety of majors (both business and nonbusiness) to rank the prestige of these jobs. Can you detect any differences in these rankings as a function of students’ majors? ■ Case Study SUCCESS AT THE BOTTOM OF THE PYRAMID? P&G’S GILLETTE GUARD SHOWS IT’S POSSIBLE Consumer behavior is influenced by internal and external factors. One of the external factors that sets real boundaries for 12-29 Compile a collection of ads that depict consumers of different social classes. What generalizations can you make about the reality of these ads and about the media in which they appear? consumers is their level of income.