Deck 7: Social Class Influences

Question 1

In a caste system, one's social rank is ascribed based on uncontrollable characteristics given at birth.

Answer 1

True

Question 2

Socioeconomic status is an individual's or group's position within a hierarchical social structure and constitutes the relative ranking of members of each social class stratum regarding factors like wealth, power, and prestige.

Answer 2

True

Question 3

Mid-tier department stores and specialty stores are rising in popularity due to an increase in middle market consumers.

Answer 3

False

Question 4

An effective marketing program targets one and only one specific social class in order to achieve a stronger response.

Question 5

The term trade up refers to a brand's repositioning of itself in order to appeal to a higher social class.

Question 6

Occupation, education, and amount of income are all examples of surrogate variables.

Question 7

Income is the best single indicator of a person's social class because it highly correlates with most of the other dimensions of social class.

Question 8

Income as a single-item predictor variable is best used to forecast sales of expensive, nonnecessity, nonstatus items.

Question 9

Consumer buying power is determined by wealth, income, and access to credit.

Question 10

The Index of Social Position uses four socioeconomic factors, weighting each one as follows: occupation (4), source of income (3), house type (3), and dwelling area (2).

Question 11

Social mobility through a social hierarchy is a major aspect of a/an __________.

A) Class system
B) Caste system
C) Objective method
D) Subjective method
E) Consumer index measure

Question 12

Ann Taylor offers two different retail environments for customers. The company offers the original Ann Taylor high-class, upscale, and sophisticated line at Ann Taylor stores. They also offer similar styles for less at their Ann Taylor Loft retail locations. What is this an example of?

A) Trade up
B) Aspirational brand
C) Upward pull strategy
D) Two-tier marketing
E) Outlet marketing

Question 13

The nouveau riche or the "new money" segment of the Coleman-Rainwater Social Standing Hierarchy is also known as the __________.

A) Upper upper class
B) Lower upper class
C) Upper middle class
D) Middle class
E) Working class

Question 14

Which tier of the Coleman-Rainwater Social Standing Hierarchy contains two groups: the traditionalists and the nontraditionalists?

A) Upper upper class
B) Lower upper class
C) Upper middle class
D) Middle class
E) Working class

Question 15

Observations and surveys are examples of __________.

A) Primary data
B) Secondary data
C) Socioeconomic status
D) Proxy factors
E) Objective data

Question 16

What are the three key single-index variables that are relevant to social class?

A) Occupation, education, and wealth
B) Occupation, education, and affiliations
C) Occupation education, and income
D) Occupation, wealth, and affiliation
E) Occupation, wealth, and income

Question 17

Which item is the greatest materials possessions indicator of social status in the United States?

A) Car(s)
B) Appliances/furniture
C) Location of residence
D) Home
E) Leisure activities

Question 18

Which multi-item index combines education, occupation, area of residence, and income?

A) Computerized status index
B) Census Bureau's index of socioeconomic status
C) Hollingshead index of social position
D) Warner's index of status characteristics
E) Consumer buying power status index

Question 19

Which multi-item index combines three-factor social status index using occupation, income, and education, thereby producing four social class categories?

A) Computerized status index
B) Census Bureau's index of socioeconomic status
C) Hollingshead index of social position
D) Warner's index of status characteristics
E) Consumer buying power status index

Question 20

Explain the relationship between social stratification and social class.

Question 21

Tie the following interrelated concepts together in a coherent paragraph explaining their interrelationship: trading up, upward social mobility, subjective social class, upward pull strategy, and aspirational brand.

Question 22

Describe the Coleman-Rainwater social standing hierarchy and its use by marketers. How does it differ from Warner's Index of Status Characteristics Hierarchy?

Question 23

Describe the stratification system in the United States in terms of each of the characteristics of stratification: formality, objectivity, social mobility, and ascribed vs. achieved status. (A one- or two-word description for each of these four factors will suffice.)

Question 24

Cite the two complicating factors that cause marketers to target two or more social classes simultaneously with one marketing program.

Question 25

In general, which is the better proxy/surrogate variable for social class: income or occupation? Explain a major advantage of using the variable that is best to use and four problems/disadvantages of using the variable that is not as good to use as a surrogate for social class.

Question 26

Define status symbol and provide an example.

Question 27

Imagine you have the opportunity to do observational research to look at two material possessions of one of your retail store's target customers to learn more about their social class so you can more effectively direct market to her. Which two things would you choose to learn about and why?

Question 28

Cite two advantages of using a single-item index for measuring social class.

Question 29

What are the major limitations in using a multi-item index for measuring social class? What are the advantages of using a multi-item index as opposed to a single-item index?