Consumer Behavior

External Influences – Social Environment and Social Class

Social Environment

Reference groups have an influence on purchasing behavior, but the level of influence will depend on where the product will be consumed—in public or in private—and whether the product is a want or a need.

PROFILE OF THE AMERICAN CLASS STRUCTURE
CLASS	% Pop	INCOME	EDUCATION LEVEL	OCCUPATION	DESCRIPTION
Upper-Upper	.3%	$5 million and up	Graduate Degree	CEO, Executives, Senator	Inherited wealth, aristocratic, fund charities, “old money”, participate in politics
Upper	1.2	$2 million	Graduate Degree	Executive, professional	Entrepreneurs, Sports Stars, Entertainers
Lower-Upper	12.5	$250,000	Graduate Degree, medical degree	Executive, Professional, Doctor	Education is important, involved in arts
Middle Class	32	$100,000	College Degree	Office workers, managers	Insecure due to economic fluctuations, live in the suburbs
Working Class	38	$50,000	High school	Teacher, plumber,	Skilled workers, may be in danger of falling into a lower class
Lower	9	$20,000	Some High School	Janitor, farmer	Poorly educated, low income, work as laborers
Lower-Lower	7	$9,000 and under	Grade School	Minimum wage or unemployed	Unskilled, may be unemployed for long periods of time, receive government support

GROUP INFLUENCE ON PRODUCT AND BRAND SELECTION
	Need	Want
Public	Example: fast food lunch A product used in public that you need weak group influence for product selection, strong group influence for brand selection	Example: yacht A product used in public that you want strong group influence for product selection, strong group influence for brand selection
Private	Example: bed sheets A product used in private that you need weak group influence for product selection, weak group influence for brand selection	Example: hot tub A product used in private that you want strong group influence for product selection, weak group influence for brand selection

Social Class

Populations can be subdivided into groups who members share similar hobbies, opinions, and activities. Americans have two lifestyles—the one they are in and the one they strive to be in, which is usually better than their current situation. It is important for a marketer to understand the subdivisions of society in order to better choose target markets for their products and services.