Question

In your opinion, what are the primary determinants of social class in the U. S.? Be specific and give examples.

In your opinion, which demographic trend in the U.S. today demands the most attention from marketers?  Why should marketers study this trend?  Next briefly describe how this trend will impact the consumer market.  How should marketers respond?

Answer 1

         I. The primary determinants of social class in the U.S. are based on the following factors:

· Income

· Education

· Occupation

· Ownership

Examples: The upper class in the U.S. possess higher wealth and earn higher income as compared to middle and lower class.

Ownership of property is less with the lower class. The upper and middle class have relatively more ownership of property.

The post of CEOs is generally taken by the rich class. Lawyers, doctors and professors are the individuals from the middle class. The other jobs are usually done by the lower class individuals.

The demographic trend is changing in America. There is a large population of "Millenials" which directly means higher demand for goods in the market. The youth have different consumption trends compared to the older Americans. They are more educated and ethnically diverse. It is important for marketers to provide the goods which satisfies their demand.

The consumer market is now more demanding and competitive as compared to earlier trends. The demand pattern of consumers, mostly youth, is increasing with technological progress. Every company has to compete in the market so as to maximise their profits.

The marketers can respond to this in the following ways:

· Launching new product with additional specifications and features.

· Continuously monitoring the consumption trend of the consumer market.

· Diversifying their operations in different product items.

· Providing competitive products at lower price.

· Adding new innovative features in their product.