搜档网
当前位置:搜档网 › solomon13_tif

solomon13_tif

CHAPTER 13

INCOME AND SOCIAL CLASS

Multiple Choice

1. A Rolls-Royce, a Cartier diamond, or an Andy Worhol painting are bought and

displayed as markers of social class. When this occurs, products become:

a. social inhibitors.

b. status symbols.

c. social parameters.

d. psychological blocks.

Answer: (b) Difficulty: (E) Application Page: 441

2. The average American’s standard of living continues to improve. These income

shifts are linked to two key factors:

a. a shift from blue collar to white-collar employment and the increased use of

personal computers.

b. more immigrants to the United States and increasing technical skills.

c. a shift in women’s roles and increases in education al attainment.

d. a shift in population from the Snow Belt to the Sun Belt and advances in human rights.

Answer: (c) Difficulty: (H) Fact Page: 441

3. Today there is a larger proportion of people of working age participating in the labor force. _______________ are the fastest growing segment of working people.

a. Retirees returning to the workforce

b. Mothers with pre-school children

c. Mothers whose youngest child is a teenager and lives at home

d. Mothers who no longer have any children at home

Answer: (b) Difficulty: (H) Fact Page: 441

4. There are now 18 million married couples making over $50,000 a year. Which of the following groups is primarily responsible for propelling these families up the income ladder?

a. working teenagers

b. working men

c. working women

d. those that invest in the stock market

Answer: (c) Difficulty: (M) Fact and Application Page: 441

5. It has been said that education pays off. According to material presented in the

text, college graduates earn about _____________ more during the course of their

lives than those that have only gone through high school.

a. 25%

b. 40%

c. 50%

d. 66%

Answer: (c) Difficulty: (M) Fact Page: 441

6. Consumer demand for goods and services depends on both the ability to buy and

a. a good jo

b.

b. a good selection of goods and services.

c. good information about the goods and services.

d. the willingness to buy.

Answer: (d) Difficulty: (E) Fact Page: 442

7. ______________ is the amount of money available to a household over and above that required for a comfortable standard of living.

a. Variable money

b. Personal savings

c. Discretionary income

d. Fixed income

Answer: (c) Difficulty: (E) Fact Page: 442

8. American consumers are estimated to wield about $400 billion a year in discretionary spending power. Fifty percent (50%) of this amount is generated by people aged:

a. 25-35, whose incomes are at a peak.

b. 35-55, whose incomes are at a peak.

c. 55-75, who are planning retirement.

d. 65+, who are retired.

Answer: (b) Difficulty: (H) Fact and Application Page: 442

9. According to information presented in the text, there are seven distinct money

personalities. Which of the following money personalities holds the largest

percentage of the total with 19%?

a. The hunter.

b. The protector.

c. The striver.

d. The gatherer.

Answer: (d) Difficulty: (H) Fact and Application Page: 443, Table 13.1

10. According to information presented in the text, there are seven distinct money

personalities. Which of the following money personalities is matched to the

characteristic of believing that money makes the world go round and equates money with power?

a. The hunter.

b. The protector.

c. The striver.

d. The gatherer.

Answer: (c) Difficulty: (H) Fact and Application Page: 443, Table 13.1

11. Fred Johnson has worked hard all of his life to make a decent living for himself and his family. However, in recent years he has become obsessed with a fear of being

ruined (either because of losing his job or losing all of his savings). According to clinical psychologists, Fred Johnson’s condition could be equated to which of the following phobias?

a. Atephobia.

b. Harpaxophia.

c. Peniaphobia.

d. Aurophobia.

Answer: (a) Difficulty: (H) Fact and Application Page: 442

12. Manuel Gomez started out his life in poverty and he has always been very afraid of becoming impoverished again. To compensate for this fear, he is a fanatical saver, does not take any monetary risks, and does not trust banks or credit cards. Clinical psychologists would probably call Manuel’s fear of poverty a phobia. Which of the following phobias would best describe Manuel’s con dition?

a. Atephobia.

b. Harpaxophia.

c. Peniaphobia.

d. Aurophobia.

Answer: (c) Difficulty: (H) Fact and Application Page: 442

13. The field of __________________ is concerned with the “human side” of economic decisions (including the biases in decision making).

a. clinical psychology

b. microeconomics

c. behavioral economics

d. macroeconomics

Answer: (c) Difficulty: (E) Fact Page: 442

14. ____________ reflects the extent to which people are optimistic or pessimistic about the future health of the economy and how they will fare down the road.

a. Individual demand

b. Aggregate demand

c. Industrial supply

d. Consumer confidence

Answer: (d) Difficulty: (E) Fact Page: 442

15. Dr. Sam Jones has a decision to make. He must decide whether to expand his clinic by 50 percent or not. The move will cost him $500,000 and will tie him to debt for

20 years. Dr. Jones believes the economy is going to get even better in the future and that his clients are going to need even more health care services as they age. Given

the facts above, Dr. Jones is making his decision based on which of the following

variables?

a. The profit motive.

b. Consumer confidence projection.

c. Supply and demand based on consulting reports.

d. Statistical analysis of a market.

Answer: (b) Difficulty: (M) Application Page: 442-443

16. If you were going to construct a question naire to determine “consumer confidence,” you might be advised to ask all of the following questions EXCEPT:

a. would you say that you and your family are better off or worse off financially than

a year ago?

b. will you be better off or worse off a year from now?

c. are you happy with your job?

d. do you plan to buy a car in the next year?

Answer: (c) Difficulty: (M) Fact and Application Page: 443

17. All of the following affect the overall savings rate of consumers EXCEPT:

a. whether an individual has a credit card or not.

b. individual consumers’ optimism or pessimism about personal circumstances.

c. world events.

d. cultural differences in attitudes toward saving.

Answer: (a) Difficulty: (M) Fact Page: 443-444

18. The place one occupies in the social structure is an important determinant not only of how much money is spent, but also:

a. how the money was earned.

b. who shares in the wealth.

c. how it is spent.

d. who it is spent with.

19. The term “pecking order” was derived from which of the following hierarchies?

a. A dominant-submissive hierarchy.

b. A supply and demand hierarchy.

c. A cohort analysis hierarchy.

d. A social contract hierarchy.

Answer: (a) Difficulty: (M) Fact Page: 444

20. The German sociologist Max Weber showed that rankings people develop are not

one dimensional. All of the following are ways people are ranked, according to

Weber, EXCEPT:

a. prestige or social honor.

b. a focus on power.

c. revolving around wealth or property.

d. ethnicity and rac

e.

Answer: (d) Difficulty: (M) Fact and Application Page: 444

21. ______________ is a complex set of variables, including income, family background, and occupation.

a. Reference groups

b. Society

c. Welfare

d. Social class

Answer: (d) Difficulty: (E) Fact Page: 444-445

22. We tend to marry people in a similar social class to ours. Sociologists call this

__________ or assortative mating.

a. homophilia

b. monogamy

c. homogamy

d. cultural formatting

Answer: (c) Difficulty: (M) Fact Page: 445

23. The phenomenon called _______________ refers to the creation of artificial divisions in a society.

a. reference group affiliation

b. bias

c. the “silver spoon” syndrome

d. social stratification

24. The phrase “those processes in a social system by which scarce and valuable

resources are distributed unequally to status positions that become more or less

permanently ranked in terms of the shar e of valuable resources each receives” is

associated with which of the following concepts?

a. reference group affiliation

b. bias

c. the “silver spoon” syndrome

d. social stratification

Answer: (d) Difficulty: (M) Application Page: 446

25. In school, it always seemed as if Kenneth got all the breaks. He had access to all the right resources, such as special privileges, fancy cars, large allowances, or dates with all the beautiful girls. Even at work, he was put on the fast track and got promoted early to a high-prestige job. It seemed as if Kenneth was artificially ranked higher than others. The process that best describes what happened in the above example is called:

a. reference group affiliation.

b. bias.

c. ascribed status or the “silver spoon” syndrome.

d. achieved status.

Answer: (c) Difficulty: (M) Application Page: 446

26. If a person was to receive rewards and status because of luck or good fortune, the

status that he or she achieved would be called:

a. ascribed status.

b. achieved status.

c. classification status.

d. psychological status.

Answer: (a) Difficulty: (M) Fact Page: 446

27. If a person works hard to achieve the resources that are necessary to climb a social ladder and to elevate his or her social status, that person can be said to have achieved their rewards due to:

a. ascribed status.

b. achieved status.

c. classification status.

d. psychological status.

Answer: (b) Difficulty: (M) Fact and Application Page: 446

28. Richard worked very hard on his grades and worked after school part-time to be able

to afford tutors to help him advance his education. When he was named #1 in his

class, he was given a certain status. The best term to describe the form of status that was given to Richard was:

a. ascribed status.

b. achieved status.

c. classification status.

d. psychological status.

Answer: (b) Difficulty: (E) Application Page: 446

29. Most groups exhibit a structure called a(n) ______________ in which some members are somehow better off than others.

a. social array

b. symbolic status

c. status hierarchy

d. symbolic reference

Answer: (c) Difficulty: (E) Fact Page: 446

30. The most influential and earliest attempt to describe American class structure was

proposed by _________________ in 1941.

a. Max Weber

b. John Maynard Keynes

c. W. Lloyd Warner

d. Thomas Hobbes

Answer: (c) Difficulty: (M) Fact Page: 447

31. Which of the following was one of the six social classes described by Warner’s Social Class Scale?

a. The striver.

b. A blue blood.

c. Upper Upper

d. A mobile worker.

Answer: (c) Difficulty: (M) Fact Page: 447

32. According to the social class structure proposed in the text, the world of inherited

wealth or the “capital S society” i s found in which of the following social class

categories?

a. Lower Upper.

b. Upper Upper.

c. Upper Middle.

d. Lower Middl

e.

Answer: (b) Difficulty: (E) Fact and Application Page: 447, Figure 13.1

33. Max’s family is part of what is called “the new rich.” They are the newer social elite, drawn from current professionals. His father is a medical doctor and his mother is vice president at a large urban bank. Max’s family (based on the description given in the text) belongs to which of the following social class categories?

a. Lower Upper.

b. Upper Upper.

c. Upper Middle.

d. Lower Middl

e.

Answer: (a) Difficulty: (M) Application Page: 447, Figure 13.1

34. Stephanie’s par ents are considered to be blue collar; however, her dad owns a

construction company and performs mostly white-collar duties. Her mother runs an office cleaning company from their home. The couple earns about $90,000 a year and are able to send Stephanie and her two sisters to the state university close to their

hometown. Based on the above description, which of the following contemporary views of the American class structure best describe Stephanie’s family?

a. Upper Upper

b. Lower Upper

c. Lower Lower

d. Middle Class

Answer: (d) Difficulty: (H) Application Page: 447, Figure 13.1

35. The “welfare class” that is visibly poverty-stricken, usually out of work, and

considered to be the disassociative class by other categories in society is called

the _____________________ class on the social class scale.

a. Upper Upper

b. Lower Upper

c. Real Lower Lower

d. Middle Class

Answer: (c) Difficulty: (E) Fact and Application Page: 447, Figure 13.1

36. Of the countries listed below, which is thought to be highly status-conscious?

a. Canada.

b. Japan.

c. Brazil.

d. Spain.

Answer: (b) Difficulty: (M) Fact Page: 448

37. According to an old saying, “the rich get richer and the poor get poorer.” This is in fact somewhat true and has led to which of the following marketing strategies in

contemporary America?

a. A pyramid strategy.

b. A have and have-not strategy.

c. A two-tiered marketing strategy.

d. A social polar strategy.

Answer: (c) Difficulty: (M) Fact and Application Page: 448, Marketing

Opportunity

38. _____________ refers to the passage of individuals from one social class to another.

a. Social class

b. Social affinity

c. Social mobility

d. Social prestige

Answer: (c) Difficulty: (E) Fact Page: 448

39. Sandra Jackson decided to become a nurse after several years as an elementary

teacher. She still wanted to help people. She just wanted to do it differently.

Sandra’s case is an example of which of the following?

a. Downward mobility.

b. Upward mobility.

c. Horizontal mobility.

d. Diagonal mobility.

Answer: (c) Difficulty: (H) Application Page: 449

40. Rufus Brown has been a farmer for years. His family has been in the farming

business for over 120 years. However, because of poor crops and high bank loans,

Rufus has had to accept welfare payments some months just to put food on his family’s table and pay his basic bills. Which of the following situations best describes Rufus Brown’s situation?

a. Downward mobility.

b. Upward mobility.

c. Horizontal mobility.

d. Diagonal mobility.

Answer: (a) Difficulty: (E) Application Page: 449

41. All of the following are important components of social class EXCEPT:

a. occupational prestige.

b. income.

c. gender.

d. educational attainment.

Answer: (c) Difficulty: (E) Fact Page: 449

42. Hierarchies of occupational prestige tend to be:

a. unstable over time.

b. not comparable from one society to another.

c. quite stable over time.

d. not really related to social class.

Answer: (c) Difficulty: (M) Fact Page: 450

43. Which of the following variables related to social class distinction is identified by the text as being unclear and the subject of debate with respect to its role as an indicator of social class?

a. Occupation.

b. Amount of income.

c. Education.

d. How income is spent.

Answer: (b) Difficulty: (H) Fact Page: 451

44. All of the following are problems with measuring social class EXCEPT:

a. most measures of social class are dated and designed for the traditional family

structure.

b. the increasing anonymity of society.

c. many measurements are subjective.

d. most of the measurements are too expensiv

e.

Answer: (d) Difficulty: (H) Fact Page: 453-454

45. If a social scientist were to interview members of a small community to determine

who was at the top of the social class ladder and who was at the bottom, the social

scientist would be using which of the following measurement designs?

a. The objective wealth method.

b. The reputational method.

c. The analytical metho

d.

d. The behavioral method.

Answer: (b) Difficulty: (M) Fact and Application Page: 453

46. Raj comes from the lowest class in his native India (the “untouchables”); however,

with a scholarship, mentor support, and years of hard work he has become an

outstanding brain surgeon . Raj is an example of a person that can cause

difficulty in assessing social class. He ranks low on some scales and high on others.

_______________ was developed to assess the impact of inconsistency on the self

and social behavior.

a. Reference duality

b. Reputational fault

c. Status crystallization

d. Status error

Answer: (c) Difficulty: (H) Application Page: 454

47. All of the following are reasons that marketers have failed to use social class

information as effectively as they could EXCEPT:

a. they have ignored status inconsistency.

b. they have ignored intergenerational mobility.

c. they have ignored the social status of males in a two-income family.

d. th ey have ignored consumers’ aspirations to change their class standing. Answer: (c) Difficulty: (H) Fact and Application Page: 455

48. When people are differentiated in terms of their aesthetic and intellectual preferences,

a _____________ concept is being applied.

a. taste culture

b. cultural code designation

c. social cluster

d. reference code

Answer: (a) Difficulty: (M) Fact Page: 456

49. Social class distinctions can be based on the ways meanings are expressed and

interpreted by consumers. These codes can be very valuable for research study.

Which of the following codes is dominant among the working classes?

a. Elaborated codes.

b. Sophisticate codes.

c. Macho codes.

d. Restricted codes.

Answer: (d) Difficulty: (M) Fact and Application Page: 457

50. If the upper rich buy “shredded Levi’s jeans” to wear to formal parties, they are

exhibiting a sophisticated form of conspicuous consumption known as:

a. invidious distinction.

b. pyramid climbing.

c. parody display.

d. downsizing.

Answer: (c) Difficulty: (M) Application Page: 465

True/False

51. Many Americans say they don’t make enough money, therefore, in reality, the

average American’s standard of living has not improved in several years.

Answer: (False) Difficulty: (E) Fact Page: 441

52. Two key reasons account for the average American’s standard of living increasing

in recent years. Those reasons are a shift in women’s roles and increases in

educational attainment.

Answer: (True) Difficulty: (E) Fact Page: 441

53. The greatest reason that income levels have gone up for the average American family is that the female (wife) in the family has gone into the workforce and, therefore,

increased the income-earning potential of the family.

Answer: (True) Difficulty: (E) Fact and Application Page: 441

54. It is estimated that a college education is not worth what it used to be. The fact is that the average college graduate only earns about 20 percent more than the high school

graduate because of the increasing technical skills of the high school graduate. Answer: (False) Difficulty: (M) Fact Page: 441

55. Discretionary income is the money available to a household over and above that

required for a comfortable standard of living.

Answer: (True) Difficulty: (E) Fact Page: 442

56. According to the “money personalities” scheme proposed in the text by Robert

Sullivan, someone who takes risks to get ahead is most likely to be in “the hunter”

category.

Answer: (True) Difficulty: (M) Application Page: 443, Table 13.1

57. To designate an individual’s social class, varia bles such as income, family

background, and occupation should be examined.

Answer: (True) Difficulty: (E) Fact Page: 444

58. Social stratification refers to the creation of artificial divisions in a society. Answer: (True) Difficulty: (E) Fact Page: 446

59. There were eight social class divisions in W. Lloyd Warner’s original social class scale.

Answer: (False) Difficulty: (E) Fact Page: 447

60. The Upper Upper class is characterized as being the “capital S society” world of inherited wealth.

Answer: (True) Difficulty: (E) Fact Page: 447, Figure 13.1

61. The average blue-collar family that is leading the “working class” lifestyle is found in the Upper Middle class category of the contemporary view of American class

structure.

Answer: (False) Difficulty: (M) Application Page: 447, Figure 13.1

62. Social mobility identifies the ability to move from one social class to another. Answer: (True) Difficulty: (E) Fact Page: 448-449

63. Alex Ford is a laid-off autoworker. He has moved from a $60,000-a-year job to

welfare. Alex is an example of someone who has experienced

downward mobility.

Answer: (True) Difficulty: (M) Fact and Application Page: 449

64. Social class appears to be a poor predictor of purchases that have symbolic aspects and low to moderate prices (such as liquor and cosmetics).

Answer: (False) Difficulty: (M) Fact Page: 451

65. The best method to use in assessing social class (according to information presented in the text) is the reputational method.

Answer: (False) Difficulty: (M) Fact Page: 453-454

66. If a person ranks high on some social class variables (such as income) but low on

others (such as occupation title), the concept of status crystallization may be at work. Answer: (True) Difficulty: (M) Fact Page: 454

67. Marketers have failed to use social class information as effectively as they could

because they have ignored status inconsistency.

Answer: (True) Difficulty: (M) Fact Page: 455

68. With respect to codes that are used to separate social classes, middle and upper

classes tend to use restricted codes.

Answer: (False) Difficulty: (M) Fact Page: 457

69. Being able to distinguish between fine wines and those of lesser quality, knowing

how to act at a formal debutante ball, understanding Latin, and knowing the social elite in one’s city might all be examples of Bourdieu’s concept of cultural capital. Answer: (True) Difficulty: (M) Application Page: 457

70. Many nouveaux riches (new rich) are plagued by what is called status anxiety

because they want to always “do the right thing.”

Answer: (True) Difficulty: (M) Fact and Application Page: 461

71. Eddie just bought a new Prowler. He can hardly wait to have the guys at the office

drool when they see him drive up in this extremely expensive “purple hot rod.”

Eddie’s reason for purchase falls into the category describ ed by Thorstein Veblen as

invidious distinction.

Answer: (True) Difficulty: (M) Application Page: 462-463

72. The phenomenon called conspicuous consumption is probably most evident in the

poorer classes where buying things seems to be a way to rid a person of misery. Answer: (False) Difficulty: (M) Fact and Application Page: 464

73. Rachel doesn’t work, has a rich and successful husband, and loves to wear high-

heeled shoes, tight clothes, and flamboyant hairstyles. According to the writings of Veblen, Rachel is what is called a “billboard wife.”

Answer: (True) Difficulty: (M) Application Page: 464-465

74. The Sultan of a small Middle-Eastern country recently held a lavish party for ruling

dignitaries celebrating the 10-year anniversary of his reign. At this ceremonial party

he gave outlandish presents, showed off his wealth, and demonstrated that he cared little what the poorer people of his country thought of him. The Sultan’s ceremonial

party is an example of a potlatch.

Answer: (True) Difficulty: (M) Application Page: 465

75. Many twenty-somethings have rebelled against their more affluent parents by

mocking wealth with such clothing as shredded jeans, boxy cars like Jeeps, and

understated makeup. These are examples of what is called a modern potlatch. Answer: (False) Difficulty: (M) Application Page: 465

Essay Questions

76. The average American’s standard of living continues to i mprove. This shift in income has been linked to two key factors. What are these factors? Provide explanatory comments on each factor.

Answer:

The two key factors appear to be the shift in women’s roles and increases in educational attainment.

(a) The shift in women’s roles--there are more people in the workforce than ever before and 60+ percent of the increase is directly attributable to women entering the workforce. The jobs women are taking are also quality jobs that carry high salaries. This increase is

a primary reason for the rapid growth of middle- and upper-income families.

(b) Increases in educational attainment--college graduates earn about 50 percent more than those who have only gone to high school.

Difficulty: (E) Fact Page: 441

77. Robert Sullivan identified seven “money personalities” in the text. List and briefly profile each of these “money personalities.”

Answer:

The money personalities identified in the chapter are as follows:

(a) The Hunter--takes risks to get ahead.

(b) The Gatherer--is better safe than sorry.

(c) The Protector--puts others first.

(d) The Splurger--travels first class or not at all.

(e) The Striver--is controlled by money.

(f) The Nester--needs just enough to take care of self.

(g) The Idealist--believes there’s more to life than money.

Note to Instructor: This question can be expanded and developed in other ways. Table 13.1 has a wealth of information that can be used in creative ways. It is recommended that students be required to read this table if accurate testing is to be obtained.

Difficulty: (H) Application Page: 443, Table 13.1

78. Describe the concepts of social stratification and achieved and ascribed status.

Answer:

Social stratification refers to the creation of artificial divisions in society. “.....those processes in a social system by which scarce and valuable resources are distributed equally to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives.

Achieved status--resources go to those people who have earned them through hard work or diligent study.

Ascribed status--rewards go to those people that were lucky enough to be born rich or beautiful. Such good fortune reflects ascribed status.

Difficulty: (M) Fact Page: 446-447

79. A contemporary view of the American social class structure is presented in the text. Take each of the major categories and list them. Next, supply a brief comment that characterizes each of these major categories.

Answer:

Upper Americans include:

Upper-Upper (0.3%) The “capital S society,” world of inherited wealth.

Lower-Upper (1.2%) The newer social elite, drawn from current professionals.

Upper-Middle (12.5%) The rest of college graduate managers and professionals, lifestyle centers on private clubs, causes, and the arts.

Middle Americans include:

Middle Class (32%) Average pay “white-collar” workers and their “blue-collar” friends; live on the “better side of town”; try to do the proper things.

Working Class (38%) A verage pay “blue-collar” workers; lead “working class lifestyle” whatever the income, school, background, and job are.

Lower Americans include:

“A lower group of people, but not the lowest” (9%) Working, not on welfare; living standard is just above pove rty; behavior judged “crude,” “trashy.”

“Real Lower-Lower” (7%) On welfare, visibly poverty-stricken; usually out of work (or have the dirtiest jobs); “bums,” “common criminals.”

Difficulty: (H) Fact and Application Page: 447, Figure 13.1

80. Explain the concept of social mobility and its various forms.

Answer:

Social mobility refers to the passage of individuals from one social class to another. There are three forms—upward (moving up in social class), downward (moving to a lower social class), and horizontal (moving from one position to another [such as jobs] in the same social class strata).

Difficulty: (E) Fact and Application Page: 448-449

81. What are the general components of social class? Explain and comment on each component (such as which is most important).

Answer:

In brief, they are occupation and income. A third factor, which is highly correlated with them, is educational attainment.

Occupational prestige - This is one way to evaluate the "worth" of people. Hierarchies of occupational prestige tend to be quite stable over time, and they tend to be similar in societies as diverse as Brazil, Ghana, Turkey, and Japan. If one had to choose only one indicator of social class, it would be occupation, since it is strongly

linked to other variables such as use of leisure time, allocation of family

resources, political orientation, and so on.

Income - Income itself is often not a very good indicator of social class, but the way it is spent is far more revealing. Wealth is by no means evenly distributed across

the classes. The top fifth of the population controls about 75 percent of all

assets.

Difficulty: (M) Fact Page: 449-451

82. In what ways have marketers apparently failed to use social class information as effectively as they could?

Answer:

Traditionally, marketers have failed to use social class information effectively in these ways:

- They have ignored status inconsistency.

- They have ignored intergenerational mobility.

- They have ignored subjective social class (i.e., the class a consumer identifies with rather than the one to which s/he objectively belongs).

- They have ignored consumers' aspirations to change their class standing.

- They have ignored the social status of working wives.

Difficulty: (H) Fact Page: 455

83. Describe how codes are used in social class study.

Answer:

One approach to studying social classes is to examine codes (the ways meanings are expressed and interpreted by consumers). These codes are used differently by different social strata. For example, restricted codes (a focus on content of objects, not on relationships among objects) is dominant in working classes. Elaborated codes (a more complex approach and a worldview) is dominant among middle and upper classes. See Table 12.2 for more data on these two code forms.

Difficulty: (M) Fact Page: 457-458, Table 13.2

84. How does the relationship between wealth and social class affect the way marketers segment affluent markets? Are there some consumption situations in which income alone is a good indicator of consumer behavior?

Answer:

In targeting the rich, it is a mistake to assume that everyone with a high income should be placed into the same market segment. Social class involves more than absolute income; it is also a way of life, and affluent consumers' interests and spending priorities are significantly affected by such factors as where they got their money, how they got it, and how long they have had it.

Common affluence distinctions are:

- "Old money" is the category of the ultra rich who have "always" been that way,

i.e., their money is from inherited wealth. Segment distinctions based upon

"how long" versus "how much" are more salient for this class.

- "Nouveaux riches" are those who have recently acquired wealth, usually through their own labor or industry but could include lottery winners as well. In many

cases, their consumption patterns are still linked to lower-class origins. Some

in this class suffer status anxiety in which flamboyant consumption may serve

as a symbolic attempt to assert their new class status. This group may also

develop “status anxiety.”

Wealth alone may be a good predictor of purchases of the highest ticket items in the ultra-rich lifestyle of the rich and shameless. Such products as super-luxury yachts and private islands can be afforded only by those who really have endless wealth.

On the other hand, many wealthy people still hold to more or less middle-class values. Not all first- or second-generation rich are conspicuous consumers like the stereotypical nouveaux riches. Products selected by these consumers will be partially determined by social influences of others like themselves.

Difficulty: (H) Fact and Application Page: 459-461

85. Explain what conspicuous consumption is and then detail the various illustrative versions of the concept as explained in the text.

Answer:

Conspicuous consumption(a phrase coined by Veblen) refers to people’s desire to provide prominent visible evidence of their ability to afford luxury goods. Related to this was the invidious distinction role played by luxury products.

Forms might include:

(a) The billboard wife--a spouse that symbolizes wealth and beauty.

(b) The modern potlatch--a host that shows wealth by giving extravagant parties and gifts to guests.

(c) The leisure class--people for whom productive work is taboo. The “idle rich” are a good example of this class. Often associated with (a) above.

(d) Parody display--do the reverse of showing off wealth. A rich person that down-dresses (shredded and torn jeans) to show anti-fashion because they can because they are rich.

Difficulty: (M) Fact and Application Page: 462-466

相关主题