Use of Social Class for Market Segmentation (Term Paper Sample)

Instructions: Answer ALL Questions
All questions carry equal marks
The CAT should be submitted no later than 01/07/2022 at 7:00 PM
You have been appointed as a marketing manager in the firm manufacturing and marketing cosmetics. Prepare a note for the management covering the following aspects:
Use of social class for market segmentation
There are two main concerns with social class segmentation. The primary question is which approach when segmenting markets based on social class and income, best describes consumer behavior. In comparison to income, social class is a greater predictor of consumer behavior. An upper-middle-class family prefers to purchase homes in prestigious areas, as well as high-end furniture and apparel from reputable retailers (Boutsouki, 2019). A middle-class family may have a nicer home, but it is not in a posh neighborhood, and they purchase furniture that is not designed by well-known designers. A middle-class family may have a small home but may have a larger car and more expensive kitchen items. Clothing and furniture are usually less expensive for this family.
People's purchasing habits are also influenced by their social levels. Despite having the same purchasing power as the middle class, the working class frequently retains its distinct class ideals, habits, and tastes. Working-class women consider their primary duty to be that of housekeepers, whereas middle-class women consider themselves to be wives. Working-class women, for example, purchase a large number of high-end equipment since they contribute to a more cheerful kitchen environment and make their work easier. They place a greater emphasis on the utility of appliances. Middle-class women, on the other hand, desire the most up-to-date appliances to facilitate their exit from the kitchen. They are more worried about appliance designs.
Importance of studying post-purchase behavior
The term "post-purchase behavior" refers to a customer's total reaction and response after purchasing a product or service. It's critical to understand client behavior after a deal has been made. Many businesses overlook a customer's post-purchase behavior because the sale has already been done, but what's vital to remember is that if the consumer is unhappy, the chances of repeat business are greatly reduced. One of the determinants of a company's long-term viability is repeat business.
Due to poor word of mouth, post-purchase dissonance can have an influence on the brand image and overall sales in the market (Ahn, & Kwon, 2022). If a consumer is satisfied with their purchase, they will not only return to buy more, but they will also promote the product to others, so promoting the brand and increasing sales. To combat post-purchase behavior dissonance, aftermarket support is critical these days. There is still time to remedy the client’s complaints. If a client raises a problem and it is remedied, the customer will remain satisfied and give the brand another chance. This is only conceivable if the problem or fault was just momentary.
Explain reference groups and their influence on the purchase decisions making process.
Informational, utilitarian, and value-expressive reference groups are the three most common categories. Informational influence is potent, and it's one of the easiest to impact with a well-thought-out marketing approach. An unstructured group does not have a clearly defined mission. Face-to-face encounters are a key group. Because they influence various product behaviors, families and peer groups are the most widely researched informal primary groups. Professional societies, for example, are formal secondary groups with little or no face-to-face connection and a specified structure or objective. Formal secondary groupings would have little impact on most products. If the information is viewed as improving their awareness of the environment or their ability to cope with some part of it, consumers are more likely to be persuaded. That is, they will reply if they believe it will assist them in achieving a goal. When a person complies with perceived expectations of what others desire to receive rewards or avoid punishments, this is known as a utilitarian influence. Purchases of products and/or brands may be impacted.
Discuss the family life cycles and their influence on consumer buying behavior.
1. Young Singles
Young singles may live alone, with their nuclear families or friends, or with partners, resulting in a wide range of disposable income spent on furnishings, rent, food, and other living expenditures during this period. Despite their low salaries, these consumers frequently have few financial obligations and do not feel compelled to invest for their futures or retirement. Many of them end up spending as much money as they earn on automobiles, furniture for their first homes away from home, clothes, recreation, alcoholic beverages, eating away from home, vacations, and other dating-related products and services (Haines, 2018). Some of these singles may have small children, making it impossible for them to continue.
2. Newly married couples:
Because they generally have two paychecks to spend on one family, newly married couples without children are usually better off financially than they were when they were single. These families are likely to devote a significant portion of their earnings to automobiles, clothing, holidays, and other leisure pursuits. They also appear to be more sensitive to advertising and have the greatest purchase rate and average purchases of durable goods (especially furniture and appliances).
3. Full Nest I:
With the birth of their first child, parents must redefine their responsibilities in the family and determine if one parent will stay at home to care for the infant or whether both parents will work and pay for daycare. In most cases, either path results in a decrease in family discretionary income and a shift in how the family spends its money (Haines, 2018). Families are likely to move into their first home at this point, buy furniture and furnishings for the child, buy a washer and dryer and other home maintenance items, and buy new products like baby food, cough