Income in Consumption

consumer confidence

consumers beliefs about what the future holds

when people are pessimistic, they tend to cut back their spending + take on less debt

when they are optimistic, they tend to reduce the amount they save, take on moredebt + buy

crash dieters (26%)

cut out all nonessential spending

scrimpers (13%)

maintain lifestyle by switching to offbrands

abstainers (15%)

postpone big purchases, but lack to buy things on credit

balancers (9%)

give up some categories to keep spending on other categories

treaters (12%)

mess up budgeting, keep rewarding themselves

justifiers (12%)

spend only on good deals

ostriches (9%)

in denial, keep spending on credit

vultures (4%)

bargain hunters

social class influences

how much money will be spent

how money will be spent

access to resources such as education, housing, + consumer goods

taste + lifestyle

social class types

achieved status, ascribed status

old v new money

consumption types

conspicuous consumption, status symbols, compensatory consumption

luxury goods

functional, reward, or indulgence

social statification

status hierarchy, occupational prestige, world view, cosmopolitan, affluenza

income + social class

more income doesn’t necessarily result in increased status or changed consumption patterns

income predicts purchase of expensive nonstatus products (i.e. major appliances)

social class predicts the purchaase of low to moderate priced symbolic products (i.e. cosmetics)

both social class + income are needed to predict purchases of expensive symbolic products (i.e. homes)