Question

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

Answer 1

The relationship between wealth and social class can act as a significant and determinant factor of how marketers can segment the affluent markets as the positive relationship between these two factors help the marketer in dividing the groups of customers into different classifications and accordingly targeting them. Just because affluent markets consist of rich people does not mean that we can sell them anything. The social class not only defines the level of affordability of a customer but also defines their inclinations, interests, willingness to spend, drive towards savings, etc , therefore enabling the marketer to offer relevant type of products to each affluent segment divided not just based on money but also on aforementioned factors to attract sales. It is an evident fact that offering a product which is beyond the affordability of target customers will not attract sales, but offering a product to a rich person which they don't consider important or are not willing to spend on is also not relevant. Therefore identifying the right segment to sell right range and type of products is very essential to enhance sales. Social class wil help marketer to identify where to offer high end products

The social class thus defines the capability of customers to purchase a particular product depending on their income or wealth, which will help marketer choose the right audience for its high end products based on the distinct characteristics which are attributed to a particular social class. For example a social class where traditional view of married women wearing jewellery is followed will be attractive to sell heavy good ornaments, but the new modern social class where Jewellery is not prefered by young rich women will not be attractive to sell good ornaments.

The purchase of important speciality goods or one time buying items such as buying a house, heavy home appliances like refrigerator, etc are the various consumption situations in which income alone is a good indicator of consumer behavior. In times of purchase of these goods a consumer is more concerned about their budget as these items constitute the single purchase items therefore income is a big consideration here as they are purchased by all but within their budget or income level.

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