BUS3041F Term 2
Social Class
The class stratification system known as social class is defined as a group of people within
a society who share the same class, status and power
Caste system:
• Individual’s position in society is fixed by birth and/or inheritance
• The caste system is closed in that little or nothing can be done to change the social
standing
Achievements
• Individual’s position in society is determined by their achievements in life
• Eg. education, hard work, opportunity
Characteristics of social class
• The social class system is not as rigid as the caste system – there can be social
mobility
• Someone can move from a low to a higher social class through education or
overcoming their perceived limitations (or through something more sinister like
corruption, but I won’t go there)
• Similarly, someone can move from a higher to a lower social class if they run into
hardship and lose their source of income. Or if they choose to lower their social
standing. But who would do that..?
• Rank ordering – social classes are ranked in order of prestige (high/low status)
• Relative permanence – social class does not usually change in the short term
• Upward and downward mobility – consumers can move from the social class of their
birth to one higher or lower than that of their parents or family (eg. Divorced women
used to frequently move downward after divorces, although this is changing)
• Internal homogeneity – each social class is homogenous within itself, i.e. its
members belong to the same group, however some heterogeneity may exist within
the group (eg. A person who became wealthy through a plumbing business may not
be given the same status as someone who achieved the same wealth through IT)
• Distinct from income – income is not the only variable in social class (other factors
include level of education, occupation). For example, a drug dealer may be very
wealthy but us not seen as having much status.
1
,The importance of social class
• Social class influences the consumption behaviour of consumers
• It allows for segmentation of markets
• It influences what consumers aspire to have, where they shop and the types of
stores they shop in
• It influences the way in which a consumer lives (lifestyle), the work they do, their
quality of food or housing, their education, how they use their leisure time, etc
Reference groups:
2
, 3
Social Class
The class stratification system known as social class is defined as a group of people within
a society who share the same class, status and power
Caste system:
• Individual’s position in society is fixed by birth and/or inheritance
• The caste system is closed in that little or nothing can be done to change the social
standing
Achievements
• Individual’s position in society is determined by their achievements in life
• Eg. education, hard work, opportunity
Characteristics of social class
• The social class system is not as rigid as the caste system – there can be social
mobility
• Someone can move from a low to a higher social class through education or
overcoming their perceived limitations (or through something more sinister like
corruption, but I won’t go there)
• Similarly, someone can move from a higher to a lower social class if they run into
hardship and lose their source of income. Or if they choose to lower their social
standing. But who would do that..?
• Rank ordering – social classes are ranked in order of prestige (high/low status)
• Relative permanence – social class does not usually change in the short term
• Upward and downward mobility – consumers can move from the social class of their
birth to one higher or lower than that of their parents or family (eg. Divorced women
used to frequently move downward after divorces, although this is changing)
• Internal homogeneity – each social class is homogenous within itself, i.e. its
members belong to the same group, however some heterogeneity may exist within
the group (eg. A person who became wealthy through a plumbing business may not
be given the same status as someone who achieved the same wealth through IT)
• Distinct from income – income is not the only variable in social class (other factors
include level of education, occupation). For example, a drug dealer may be very
wealthy but us not seen as having much status.
1
,The importance of social class
• Social class influences the consumption behaviour of consumers
• It allows for segmentation of markets
• It influences what consumers aspire to have, where they shop and the types of
stores they shop in
• It influences the way in which a consumer lives (lifestyle), the work they do, their
quality of food or housing, their education, how they use their leisure time, etc
Reference groups:
2
, 3
