Behavioral Economics and Social Class

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Questions and Answers

What is achieved status based on?

Education

Wealth

Social connections

Merit (correct)

What does social mobility refer to?

Movement of individuals from one social class to another (correct)

Movement of individuals within the same social class

Movement of individuals from one country to another

Movement of individuals from rural to urban areas

What is conspicuous consumption?

Avoiding widely used status symbols

Purchasing goods for practicality and functionality

Buying and displaying luxury goods to demonstrate socioeconomic status (correct)

Purchasing goods to maintain a low profile

What does consumer confidence reflect?

The state of mind of consumers in relation to the economy Signup and view all the answers

What is the paradox of the wealthy related to?

Social distinctions no longer revolving around money Signup and view all the answers

What does achieved status depend on?

Individual accomplishments and capabilities Signup and view all the answers

How is social class related to purchase decisions?

Different stores and products are associated with different social classes Signup and view all the answers

What is the concern for the newly rich related to?

Status anxiety and how they are perceived in the upper social class Signup and view all the answers

What does the working class evaluate products based on?

Practicality Signup and view all the answers

What does approximately 14% of Canadian families living below the poverty line raise?

Ethical concerns about marketers ignoring this group Signup and view all the answers

What is the main focus of behavioral economics?

Studying the psychological factors influencing economic decisions Signup and view all the answers

How does consumer confidence impact spending behavior?

It reflects the state of mind of consumers in relation to the economy Signup and view all the answers

What is achieved status based on?

Merit Signup and view all the answers

How does social mobility impact consumer behavior?

It affects how individuals are perceived and treated Signup and view all the answers

What is conspicuous consumption?

Buying and displaying luxury goods to demonstrate socioeconomic status Signup and view all the answers

How does social class influence purchase decisions?

Different stores and products are associated with different social classes Signup and view all the answers

What is the concern for the newly rich according to the text?

Status anxiety Signup and view all the answers

What does the paradox of the wealthy refer to?

Social distinctions no longer revolve around money for those who come from wealth Signup and view all the answers

What does achieved status impact according to the text?

Social mobility and consumer behavior Signup and view all the answers

Why is the group living below the poverty line often ignored by marketers?

Ethical concerns Signup and view all the answers

Study Notes

Behavioral Economics and Social Class in Consumer Spending

Behavioral economics studies the psychological factors influencing economic decisions, such as how motives and future expectations affect current spending.
Consumer confidence reflects the state of mind of consumers in relation to the economy, impacting their spending behavior.
Social class determines a person's standing in society and influences how money is spent.
Distinctions between "Old Money" and "New Money" influence spending patterns and consumer behavior.
Achieved status is based on merit, while ascribed status is not earned, impacting social mobility and consumer behavior.
Social mobility refers to the movement of individuals from one social class to another and affects how individuals are perceived and treated.
Social class influences purchase decisions, with different stores and products being associated with different social classes.
Approximately 14% of Canadian families live below the poverty line, and this group is often ignored by marketers, raising ethical concerns.
The working class evaluates products based on practicality, while the affluent may be concerned with appearance and body image.
The paradox of the wealthy lies in how social distinctions no longer revolve around money for those who come from wealth.
Status anxiety is a concern for the newly rich, who may worry about how they are perceived in the upper social class.
Conspicuous consumption involves buying and displaying luxury goods to demonstrate socioeconomic status, while parody display involves avoiding widely used status symbols.

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Description

Explore the intersection of behavioral economics, social class, and consumer spending in this quiz. Learn about the psychological factors influencing spending decisions, the impact of social class on purchase choices, and ethical considerations related to marketing to different socioeconomic groups. Delve into the distinctions between "Old Money" and "New Money," the concept of achieved and ascribed status, and the influence of status anxiety on consumer behavior.