Introduction

Man as a social human being, is a member of the most inclusive, dominant and complex type of social organization - the society. Society is created through social interactions between its members through the transmission of ideas or communication. Through such interactions, individuals over a period of time, automatically become participants of a social organization and will change their individual activities from a relatively independent social element to activities which are acceptable to the broader social organization - the society. This is visible in the way men create new relationships or join previously existing patterns of social order. The social class or society plays a major role in influencing the buying behaviour or consumption pattern factors, which will influence his purchase decisions. So, marketing decision makers have to understand how social class influences the consumer behaviour of the target market. For analysing this, they have to understand the role of 'opinion leaders', culture and subculture, which are the underlying determinants of the consumer behaviour in the society.

Meaning Of Social Stratification And Social Class

It is a common aspect noted throughout the world that human beings exist in a socially stratified environment. This may give rise to the question "What is the meaning of the term social stratification"?

"Social stratification is the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status" (Consumer Behavior L.G. Schiffman & L.L. Kanuk, 6th Edn., 1997, pp. 376)

Man lives and breathes in a society, he also gets influenced by it and at times even influences its course of development.

Social class is the relative standing of the members of a society so that a higher position implies a higher status than those in the lower class. The determinants of a social class is decided by the income, occupation, place of residence etc., of the individual members of the society.

The members of a particular social class will enjoy more or less the same status and prestige in the community. Although income is an important factor in deciding a person's social class, even one's education and profession can be used for determining one's social class. For instance, social class depends considerably on one's education and occupation so if an individual draws relatively low income but is highly educated or has a prestigious occupation then he or she will be accorded a higher social class in the society. The vice versa also holds true.

An appropriate example to explain the above will be the 'role' of 'doctors' and 'nurses'. There is no doubt that public health requirements of the society make both the roles of the 'doctors' and 'nurses' a very important one. However, there is a general tendency on the part of individual members of the society to value the roles on a comparative basis as higher or lower. Typically, the 'doctor' is accorded a higher status when compared to that of the nurses. Consequently, the society also expects better services of a higher level from a doctor than from the nurse. These two characteristics of our society of deliberately differentiating and evaluating the roles of the individuals based on the role performed and status are the basis for stratification.

In India also we have a stratified society. This can be seen from the unequal distribution of income and wealth among the people. The principle of inequality is visible from the fact that wealth is concentrated in the hands of a few, resulting in a clear distinction between the rich and the poor or 'haves' and 'have nots'. There is a ranking of individuals in society from high to low in terms of social status. Further, all the people do not have the same power and prestige, similar possessions, share the same value system and also act discriminately with individuals of the low social class having lesser power, prestige and status.

There are certain symbolic identifications by which individuals accorded higher status are distinguished from those occupying lower status. These status symbols are:

a. Insignia 

Mark of qualitative identification differentiating people of different status. 

b. Titles and designations 

People are identified based on the various titles and designations they carry with them. A person who falls into the high-class society will adorn herself with a Rado watch and platinum/diamond jewellery, wear high designer clothes and move around in a luxury car (Mercedes Benz).

c. Pay and perquisites 

Generally organizations award their employees salary and perquisites based on their job functions. So it is natural that a person occupying a higher grade will enjoy higher status and certain special perquisites due to him based on his higher-level status as compared to a person occupying a lower grade in the organization. The CEO of a company will prefer to fly Business class, while the executive may fly economy class or opt for the frills free airlines.

d.Physical facilities

Status of people can be distinguished on the basis of various facilities provided to them by the company at work place and at home. Top executives of companies or people who are regarded as occupying high status in the society are provided at place of work exclusive rooms with excellent furnishings, exclusive parking places, etc. They are also allocated luxury manors, membership to elite clubs, etc., to take care of their home needs.

The members of a given social class will enjoy more or less the same status and prestige in the community. They share a common lifestyle and behaviour pattern. They even prefer to do their shopping in a particular mall or shopping area and patronize selected shops which will suit their class image. Although differential preferences may exist among the members, in a buying situation when objective standards are not available to guide them, they may conform to certain 'class norms.' An understanding of such social class groupings can help the marketer to identify and segment the target market accordingly.

Studies have indicated every social class develops its particular lifestyle and behaviour standards and that the class members in their purchase behaviour are guided by their own class norms. Nevertheless, the extent of social class influence on its members will depend on the extent of attractiveness the group holds out to them. Greater the attractiveness more will be the behavioural conformity.

Nature Of Social Class Influences

The nature of social class influence on consumer behaviour can be understood if one has a look at social stratification, status symbols and social mobility.

Social Stratification

As mentioned earlier in the chapter, social stratification is the ranking of people in a society by other members into higher and lower positions so as to produce a hierarchy of respect or prestige. When we talk of the Indian society, it implies that certain members of the society are ranked higher than others on the basis of income, education, profession (or occupation) and other intangibles like lifestyles, one's influence and connections, political power and social service.

Social stratification occurs on the basis of the ideals and values of the particular society. Accordingly, the composition of social class as well as the basis for defining power and prestige will also vary. The social class status is likely to indicate common values and similar purchasing patterns. Thus, social class stratification is likely to influence the purchasing behaviour of consumers in a particular social class.

Symbolic Representation of Status

Typically, homes, clothes, cars, jewellery etc., are the indicators of the possessions of the particular social class. Indians have always had a penchant for jewellery and buying of diamonds was treated to be the exclusive previlege and status symbol of the rich or higher class. However, today, diamond manufacturers such as Mehul Chokshi (Gitanjali Group) and Vijay Jain (ORRA) diamond company) have discovered that there is an aspiration among individuals to move to a higher class of buyers. This new consumer is a homemaker, whose lifestyle is inspired by the fashionably attired 'bahus and betis' of the Indian Television. This new group of buyers, apart from easy accessibility and lower price have gained a better understanding of the intrinsic value of diamonds. Such consumers are looking for trendy, affordable, lightweight jewellery which can be worn on multiple occasions and which they would like to be seen wearing.

Social Mobility

Social mobility refers to the movement or shift of an individual or household from one level to another. This social mobility is visible in the shift of individuals from rural to urban and metro cities. Aspiring for a better lifestyle and standard of living, have prompted many youngsters to move to well known cities with better jobs prospects and with good jobs and pay packets, such individuals and households are moving up in the social ladder.

Social Class  Characteristics

As mentioned earlier in the chapter, social class is a relative standing of the members of a society such that those occupying higher position are accorded a higher status than those in the lower social class. A few of the characteristics of the social class concept are given below:

Social Class Suggests Rank Ordering

Social class differences are given ranks on the basis of the social prestige accorded to a particular social class.

Social Classes are Relatively Permanent

Social classes are relatively the permanent characteristics of the family. An individual's family's social class does not change from a day to day or from a year to year basis.

Social Classes have Internal Homogeneity

The social class may remain homogeneous within each strata. It is observed that all those belonging to the same social class tend to be similar in terms of the kind of occupation, the residencial area occupied by them, their eating habits, socializing etc.

Social Class can have Intergenerational Class Mobility

Although we have mentioned above about relative social class permanence, it is possible for an individual to move out of the social class of his or her birth and shift to a higher or lower class. This could be obtained by him or her acquiring the values, resources and behaviours of the new class.

Social Class Considers Determinants other than Income

Even though income is an important determinant of social class, there is no one-to-one correspondence between the two. The other determinants such as educational qualification, occupation and personal tastes can also be associated with the social class. Because of these determinants it will not be uncommon for a person with a relatively middle income to be accorded the upper social class status and visa versa. A person having political clout (though not very educated) may command prestige and status disproportionate with his income earnings.

The typical social class characteristics having relevance to marketing are elaborated here under:

Characteristic Features having Relevance to Marketing

Be it a developed economy or a developing economy like India, the society has certain characteristics, which will distinguish it from other societies. Analysis of the characteristic features of the social class, will help the marketer to gain a better understanding of its target market and thereby the consumption pattern adopted by the particular social class. Following are some of the major characteristics of the social classes relevant to consumer behaviour.

1. Persons within a given Social Class tend to Behave more Alike

Social classes are relatively permanent homogeneous divisions of the society with each social class showing similar lifestyles, values, status, prestige, interests and behaviour pattern. Marketers have observed that there was existence of shared attitudes and behavioural pattern among members within a particular social class and differing behavioural patterns, values and attitude between social classes.

For instance, a person belonging to middle class, when going to purchase an automobile, would prefer to make a choice between Alto, Indica, Santro, Getz or any other economically priced car, which will fit within his budget. Whereas, a person belonging to the higher class, intending to purchase an automobile, would prefer to make a choice from either a Corolla 'Opel Astra', 'Mercedes', or any other highly priced cars - which will indicate a higher status, value and prestige in the eyes of the society. Such differences in the buying pattern is even seen in case of products like shoes, mens/ladies formal wear, cigarettes, etc. This information can be used by the marketer in manufacturing products which meet the lifestyle, status and prestige of a particular social class.

2. Social Class is Hierarchical

Persons are ranked as occupying inferior or superior positions according to their social class or status held by them in the society. As discussed earlier, social class is decided by income, occupation, education and place of residence. Broadly speaking, in India, we have got at least three social classes - Upper class, middle class and lower class. Here each social class has similar lifestyles, values, interests and behaviour. Members of a specific social class perceive members of other social classes as having either more or less status as compared to them.

It has been observed that shoppers in the various strata seek out retail outlets that reflect and cater to that particular class. For example, the elite class or higher class may prefer to buy designer sarees which conveys a status, style and prestige of the higher order. In case of a middle class customer, she may prefer to purchase silk sarees at any ordinary shop because here she is looking for making a choice from economically priced sarees. This results in a retail structure which conveys social class or social prestige characteristics. These differences are ofcourse, relative and more noticeable with some class of products than with others. The clite or upper class may be willing to buy certain products like LCDTV, home theatre, refrigerators, etc., from company showroom where the brand name is the indicator of quality. However where taste or style is important, as with furniture, dress materials, jewellery, high priced watches etc., the upper class would prefer to shop at exclusive show rooms or retail outlets which the lower class people would generally avoid.

3. Social Class is not Measured by a Single Variable but is Measured as a Weighted Function of one's Occupation, Income, Wealth, Education, Status, Prestige, etc. 

The upper class consists of a very small percent of the population - the prominent "Social- register" families with wealth inherited from two or more generations. The members of this class have the benefit of going to "right" schools - Doon School, etc., occupy the executive positions in the family owned businesses, leading professionals like business managers,etc. The values inculcated by these people include living graciously, upholding the family reputation, reflecting excellent 'breeding' and displaying a sense of community responsibilities. For example, children of the Ambani's, Birla's, Wadia's etc.

The middle class people comprise of a very high percentage of the population. This social class is growing enormously. This class consists of families drawing income which is better than average and from various sources. It could include moderately successful business managers, owners of medium sized businesses, various professionals like doctors, lawyers, etc., middle level managers of public sector undertakings, etc. Their income is derived from salaries, profits and professional fees. Their drive is to earn professional success and membership into the upper class is very strong. They, with their limited income try to copy the lifestyle of the upper class and this can be seen in their choice of clothing and home furnishings.

The lower class also constitutes a reasonably large percentage of the population. This group comprises of skilled, semi skilled manual labourers, lower level supervisors, clerks, e Some of them have seen the light in schools while others not. They draw either meagre salary or wages. These people have limited sense of choice making and do not have money to "waste" on luxury items.

4. Social Class is Continuous rather than Concrete, with Individuals able to Move into a Higher Social Class or Drop into a Lower Class 

This mobility either up or down can take place most often with more industrialization or degree of urbanization as mentioned earlier. There are successful men who have moved up to the higher class due to increasing awareness to strive harder and harder, sheer determination and hard work. Examples would be of the successful story behind 'N.R. Narayana Murthy' of the Infosys Technologies' or of the Karsanbhai Patel's Nirma or late Dhirubhai Ambani's Reliance.

Social Influence On Consumer Behaviour

The buyer whom we are studying does not function as an entity independent of those around him. He maintains a constant contact with others ranging from members of his family, or colleagues, sales people and at times a complete stranger also. Sometimes a casual comment like "what an attractive dress" or "Ah! That jacket really adds to your personality", from any of the above mentioned individuals will boost up his morale and influence his buying choice. Consequently, the next time while spree, the buyer will spend more than the on his sh share of the money he had thought of putting aside for shopping.

Man as a social being, believes in having constant interactions with the various organizations because it serves many of his needs like socialization, feeling secure, a feeling of belongingness, etc. These constant interactions have an impact on him. While formulating purchase decisions, a person refers to the behaviour of another person or group and tries to conform to it. Such interactions may often also have a bearing on his day-to-day life.

We will briefly have a look at: (1) Reference group influence (2) Opinion leader influence (3) The role of communication and (4) The influence of social class on saving and buying attitudes of individuals

1. The Reference Group Influence

There are broadly three types of intimate groups in society which can influence the buying behaviour of individuals. These are:

a. Groups which Serve as Comparison Points

There are certain groups which serve as points of comparison and are used to evaluate the individual's status. It has been observed that today's unpredictable consumer gets influenced by people with whom he perceives as sharing similar traits, psychological quirks, behavioural peculiarities and this automatically gets imprinted on his mind and influences his buying behaviour. Marketers are helping consumers in their decision making by providing relative groups for comparison purpose. Such moves will re-inforce the familiarity of the brand in the minds of the consumers. Further, it also provides a reassurance against any perceived risk which prospective customers may experience before going for purchasing. At times celebrities are used for endorsing, which also helps in easy association with the brand. For instance, in the past, Mansoor Khan Pataudi, the cricket celebrity with the regal touch, had endorsed Royale an up market brand from Asian Paints. Now the same brand is endorsed by his children Saif Ali Khan and Soha Khan. Royale brand targets up market consumers and using of celebrity will help to serve as the point of comparison. Another example can be of Cadbury's Chocolates. Cadbury had realized that there is a child in every adult. Hence the advertisement had spoken about experiencing "the real taste of life" which was targeted at the adult buyer. Thus the firm (Cadburys) wanted to transfer an experience by rediscovering the carefree, unself-conscious, pleasure-seeking child within each adult. Here the point of comparison is an adult to a child. These two examples reveal how certain groups can serve as a point of comparison irrespective of their status.

However, estimate of the status may vary according to the group with which the individual compares himself. A customer ideally will make the choice of a product/service between two ideal combinations of price and value.

Says Krish Iyer, CEO and MD Piramyd Retail, "With respect to consumer preferences, every customer, irrespective of income, affordability and age have two kinds of attitudes- one is that of fashion and the other of price." The lower or lower Middle Class customers could behave like a bargain hunter or price conscious informed customers who are looking for value for the money spent on the product along with the benefits offered. Such customers would prefer to shop at the Big Bazaar, hypermarkets, since such outlets serve as a point of comparison by providing basic necessities.

The other category of customers are those who look upon celebrities or high society person's willing to make fashion statements. They tend to spend more irrespective of their income just to imitate the buying behaviour of the group which serves as a point of comparison. Such customers prefer to do lifestyle shopping at outlets like Piramyd Megastore, Globus, These consumers are aspiring to occupy a higher social class of those whose behaviour they are imitating Westside etc.,

b. Groups to which the Individual Aspires to be a Member

Very often individuals imitate the behaviour of the group they aspire to be a part of. HLL has always used Hindi film stars to endorse Lux beauty Soaps, Head & Shoulder Shampoo (Priety Zinta) Clinic anti dandruff Shampoo (Shahid Kapoor) They are trying to help consumers connect with the brand, through celebrity endorsements. Social class influence through celebrity usage, to induce positive consumer behaviour is being attempted at, although there may not be face to face contact between the groups. Pepsi's association with cricket players is well known. The brand personality can be defined as vibrant, for fun loving, young, lively and adventurous. The target segment is the younger generation for whom cricket is a popular sport. This segment is able to associate Pepsi and the endorser's with cricket in terms of their accomplishments, attitudes and lifestyles, which they (the target consumers) are aspiring for.

c. Group whose Perspectives are Assumed by the Individual Irrespective of whether he Aspires for its Membership or not 

With the market in the urban areas getting stagnated, marketers have woken up to the fact that there is a big rural market potential waiting to be tapped. This is because the rural customer is looking out for value and quality in the product and subconsciously he too wants to upgrade his living standards. Realizing this, 'Velvets International' Pharma products caught on the aspiration led need of the lower class or low income consumers and started offering them shampoo, in a sachet pack at an affordable price. Likewise many companies have also succeeded in penetrating this lower income.consumer segment with products such as 'detergent powder', 'pan masala' and even digestives like 'Hajmola' being offered in the sachet form.

The above mentioned three types of groups are referred to as the reference groups people who will act as references and could influence the buyer's purchase decisions. The reference group can affect the consumer behaviour broadly in two ways:

1. The reference group could affect the level of aspiration of the individual consumer thereby making the person experience a feeling of satisfaction or frustration. For example: A young boy may be aspiring to be a good badminton player and gets enrolled in a coaching class conducted by professionals. Inspite of vigorous practice if he is not selected to play in the match, it may lead to frustration.

2. The reference group can affect the behaviour of the individual through establishing conventional patterns of personal expenditure, thereby producing either conformity and contentment or discontentment. It has been observed that in case of products like cigarettes or vehicles, the reference group makes a significant impact on the consumer behaviour. For example, college going boys are very often seen using mobile phones and moving around on two wheelers/cars. The choice of both the product and brand in this case will be dependent on their selection of the reference group. The individual consumer will continue to use the specific (brand) mobile phone as long as he considers it to be the choice of his reference group, which may comprise of friends and classmates.

Thus, 'reference group' is a term used to designate the type of group an individual consumer uses as a 'point of reference' in determining his own judgments, preferences, beliefs and behaviour.

2. Role Of Opinion Leaders in Cinsumer Behaviour

Opinion Leaders: Marketers have spent lots of money in trying to identify those factors which affect consumer behaviour. However, it is often seen and said that "word-of-mouth advertising" has more influence on the success of the product rather than the money that is poured into advertising. Informal, reliable sources of information are given by opinion leaders.

The opinion leader will provide solicited as well as unsolicited information after seeking latest facts in detail from various sources. All this information is deliberately obtained in order to enhance his or her 'expertise status,' which is sought to in a particular product category. Consumers value the opinion leader's recommendation and suggestions because of their belief that the former does not receive material gain from the recommended actions. Consequently, the opinion leader's advice will be seriously considered.

"Opinion leadership refers to the degree to which an individual influences others in a given choice situation i.e., those who possess a disproportionately large amount of this trait". The beliefs, preferences, actions and behaviour of the leader sets a trend and pattern for others to follow in a given set of situations, he is a reference individual. Various research studies have revealed some distinctive characteristics of opinion leaders. The original study says that marketing leaders are found in about equal numbers in the various levels of social status.. The two strongest factors in favour of marketing leaders were the stage in life cycle and gregariousness. For example, in case of products related to home, current experience counted the most. Here, women with grown up children and those who had used the product would act as a leader. However, a significant factor to be noted is that, the more gregarious women are, the more likely they are to be marketing leaders.

Opinion leaders get involved in social activities. They are more gregarious, self confident and are very often found to be innovators of products also. They always enjoy being in the lime-light. They are always interested in gathering additional information of the products especially if the media helps them to exercise their leadership. Being an opinion leader, his/her advice is very often sought on issues at hand. This is because it is believed that with wider exposure, he/she is more knowledgeable than others and so they have to "live up" to their image as their advice is being sought.

Characteristics of the Opinion Leader

Marketers are of the opinion that the opinion leader can influence consumers within a product category. However, it will be difficult to identify opinion leaders across various categories. Yet certain traits identified among opinion leaders can be put as: 

• Opinion leaders are knowledgeable about the product category.

• Opinion leaders are more involved in the product category.

• Opinion leaders are active to receiving communication about the product from various personal sources.

• Opinion leaders are interested in new products.

• Opinion leaders read magazines and other print media relevant to their area of product interest.

• Opinion leaders are self confident in their appraisal of the product category.

• Opinion leaders are more socially active, which is a reflection of their willingness to communicate with others.

Since opinion leaders play a major role in influencing individuals, marketers are interested in knowing if there is a connection between opinion leadership and innovativeness.

It has been observed that the opinion leaders and the people with whom they interact are able to influence, typically those belonging to the same primary or intimate groups of family, friends, close colleagues and small close knit organizations. Such a group and the leader generally have a common social background and also belong to the same age group. The opinion leader's judgmental views on lifestyle and fashions are heard to with a lot of respect. Though the leader cannot directly influence the day-to-day purchase decisions of an individual member of the group, they can indirectly influence the group members by voicing their opinion and adopting a lifestyle, which is attractive enough to the group members so as to motivate them to purchase the particular product.

Because of the role adopted by them, such opinion leaders are acceptable to new ideas and new products and if convinced they also act as propagators of these new product ideas and products. This has resulted in marketing managers making efforts to identify such opinion leaders, who can provide the necessary 'word-of-mouth advertising' and help in pushing the product into the market with the right type of motivation.

Opinion Leaders and Marketing

Marketers have realized that women evolve mentally, physically and socially just as the society around them. Accordingly, they have portrayed such women as opinion leaders in their advertisements. To quote a few examples:

• The advertisment of Rin, where a woman comments on another woman's white clothes "Bhale uski Kameej Meri Kammej se Safed Kaise?"

• Surf's Lalitaji (a smart housewife) who knew the difference between buying cheap and buying value. Her opinion statement "Surf Ki Kharidari me he samajdari hai," was appreciated by the women (masses)..

• The social change, with young girls no longer feeling guilty about indulging themselves was reflected in the opinion (or theme) "I don't care"? This statement was made by the young college girl in the Lifebuoy Plus TVC in the late 1990s.

The above examples indicate that marketers are trying to stimulate word-of-mouth communication through advertising or other direct identification of opinion leaders.

Another example is that of the 'Asian Paints' company, when it had launched its ‘Utsav range of paints in the rural market, during the pre-Diwali season. At that time they had asked their salesmen to seek the help of opinion leaders to communicate with the villagers about their product. The salesmen of 'Asian Paints' selected the opinion leaders in the villages and painted the village post office/library/the house of the Mukhiya to demonstrate that the paint did not peel off. Over and above they also invited the village's painters for meets organized at the local dealer's place.

Though the opinion leader may vary from product to product, marketers having realized the important role played by them and are trying to reach out to their customers through a medium (opinion leaders) that is palatable to them.

3.  The Role Of Communication

Another important aspect of consumer behaviour related to social class is that of the exposure of individuals to the media of communication. Social class acts as an important variable in segmenting the market. A knowledge about the v various media will help the marketer to understand how best to reach out to these target markets. Today consumer is living in the age of information overkill and is bombarded by commercials, unsolicited product information and pursued by hardsell media. So, it is the responsibility of the marketer to get the consumers' attention, evoke their comprehension, gain their acceptance and then extract retention, alongside competing with thousands of other units of communication also trying to do the same. Thus, depending on the particular target segment, the marketer has to communicate and identify the path to penetrate the consumers mind through the media (mass print, outdoor, etc.) which is most suitable to them.

The Changed Social Scenario in India

For over more than a decade, along with a more liberalized economic policy, there are various transformations taking place at the social level. For instance, we have a younger population which has tasted financial independence at a much earlier age (when compared to the previous generations), rise in the number of nuclear families and an increased media exposure which has given rise to a new consumption culture in the country.

Over and above the information provided in Table 8.3 it was seen that there were around 130 million mobile phone users and the internet population had stood at 40 million. Credit card penetration has grown ten times between 2001 and 2005, although it is still low at around 2 per cent.

Research by Grey Worldwide revealed that the young Indian consumers were very much assured about their future and well being and also not too, apologetic about their indulgence and expenses. It is assumed that the consumer psyche apart from more indulgence, have a focus towards technology, more purchases with credit cards and a higher and global lifestyle orientation. Simultaneously, the pressures of modern life, especially lack of time is having an effect on their lifestyles. To make up for this, they are seeking leisure activities and products. In fact, in metros such as Delhi, Mumbai and Bangalore, even for mundane services, outsourcing seems to be an attractive option. Extended nuclear families seems to be common. Healthcare and psychographics shift seems to be towards down aging. Accordingly, consumers are spending more on self grooming and beauty care products.

With more spending power and disposable income in hand, consumers are showing more orientation towards personalization of entertainment through i-pods, web casting, and audience interaction on television programming (reality shows). Thus, when the consumer has access to so much information from various media (or sources), marketers will need to look beyond the conventional mind. They will need to work out a suitable media based on:

• The role advertising has to play.

• The advertising spends in the product category.

• The consumer behaviour pattern.

• The allocation of funds or budget estimated and asked for.

The Picture of the Rural Sector

It is estimated that in India there are about 630,000 villages. Studies indicate that even as the middle class consumers are thriving, and able to afford many consumer durables, roughly 35 per cent of the population gets by with less than Rs 45 a day and another 45 per cent lives on Rs 45-90. In order to help this social class grow, it is necessary that the poor or strivers as defined by NCAER (National Council of Applied Economic Research) gets enough to eat, an education, clean water and hygienic living conditions. If this is accomplished they will be able to graduate to the next level of the aspirers, as C.K. Prahalad's Theory of "The market at the bottom of the Pyramid", suggests.

Efforts are being made by the various organizations to penetrate into the rural Indian market.

• Microsoft India has started some key programmes like Project Shiksha, for accelerating IT literacy, Project Bhasha to promote language computing, Project Jyoti for empowering women and rural communities, Project Sakshan a Kiosk-model initiative for a strong IT ecosystem and Project Vikas to enhance the global competitiveness of India's small and medium enterprises.

• Philips India is working on a project called Disha where the company is testing the possibilities of providing mobile, affordable access to healthcare.

• Hindustan Lever Limited (HLL's) Project Shakti, where it employs rural, local women to become direct-to-consumer distributors and tap the remote village market for its affordable products (especially for the poor) like shampoo sachets at 50 paise, soaps and detergents at Rs.5 and toothpastes at Rs 10. This project enables its women distributors to earn a decent income of upto Rs 10,000 per month. This project also comprises of shaktivanis, who are trained to communicate the brand's attributes and also educate the rural women folk on the virtues of health, hygiene and basic healthcare.

Thus the rural womenfolk are enjoying the benefits of woman empowerment and HLL, on its part is able to increase consumption and penetration of the care products in its portfolio, in the rural areas. ITC'S e, Choupals, connect farmers with large firms and global markets. This alongwith reducing poverty levels it also increases the income levels.

• Cable and Satellite (C&S) TV is easily available in urban and towns but in rural areas their accessibility is not there largely because it is difficult to lay cables in the remote corners of the country. However, there has been a paradigm shift in TV viewing with the emergence of Direct-to-Home (DTH) satellite T.V such as Dish TV (from Essel group) Tata Sky, which have been able to take information and 'entertainment (infotainment) even to the remote rural areas. Tata sky currently has 275,000 subscribers and in order to reach the million mark the end of the year has brought in ITC e-Choupals, Godrej Aadhar (se n services and retail arm of Godrej Agrovet) and the Indian Oil. They are interacia with rural consumers through Kissan Kendras and are holding demonstrations f Mobile Vans. Similarly, Dish TV is depending on rural mandis and melas to get potent customers.

• Cellular services providers are also making efforts to redefine communication facility to rural areas. For instance, Airtel has tied-up with low cost handset manufact and also introduced the Rs.200 re charge coupons and the Rs 999 lifetime prepaid card especially for the rural markets.

There are certain key factors which come in the way of the rural class's consumption habits or buying behaviour

• Low income levels

• Limited purchasing power

• Inadequate telecom infrastructure

As seen in Figure 8.1, NCAER hopes to reduce the gap between the splurging Middle Class and today's no hopers. They estimate that by 2013, the strivers (those at the bottom of the pyramid) will gradually come down from 96 million households, with the aspirers in the middle rapidly rising from 96 million to 124 million households.

Marketers, as discussed above are making all efforts to create self sustainable scalab models that will help to make consumers out of the poor. Such efforts will provide opportunities to raise the income level of the rural consumers and then help them to save a part of it a disposable wealth to be used for purchasing products and services.

Use of multimedia mix

Today, most of marketers prefer to use multimedia mix, as a vehicle of communication at various levels of marketing. Advertising is a very important tool of communication and it is very necessary for marketers to work on the effectiveness of the ad. Once the ad effectiveness parameters are laid down and the ad budget worked out, the media manager has to understand how media delivers results. Lodestar Media, the media arm of FCB Group has developed a Threshold Grid applicable for different media, different products and different consumer segments. The Threshold Grid lays down the minimum media input needed to create an impact. Simply put, the model lays down:

• The Minimum length of advertising burst: 5 to 6 weeks

• Minimum amount of GRPs: 100-120/week (30 sec. Equivalent)

• Reach and OTS levels: 50%, 3+

In 1998-99, Lodestars had used newspapers almost to the exclusion of every other media to launch Tata Indica. At that time competitors Santra, Matiz, Uno and Zen were all using multiple media including TV to reach the target consumers. In the case of Tata Indica, the strategy was to go well above threshold level on one media and also ensuring that media reach and media OTS parameters were not sacrificed. The launch was a tremendous success. On the other hand, Whirlpool had used TV with very little newspaper advertising, whereas many of the other durable marketers were deploying the biggest part of their ad budget in print..

Studies to Understand Media Multiplication in India

In 1997, The Times Group had commissioned a study on "Measuring the Multiplier Effect" of print and TV through IMRB. The study used respondents in a controlled environment and exposed them to TV and print advertising of four FMCG products. The study found that synergistic effect of print and TV was more evident in terms of competitive imagery shift and brand recall, than in terms of preference shift. Print alongwith TV had a greater impact than only print or only TV.

Another more elaborate study done by INS through IMRB in 2002-03 was an attempt to replicate real market situation using live campaigns. Five leading brands in different product fields were co-opted to use only TV in one city while using TV and print in another. Even in terms of advertising recall, creative recall and brand recall, all five brands showed bigger shift in the media mix area compared to the TV only area on all or some of the various recall measures.

The brand where the difference was the smallest was the one where the creative elements across TV and print (or press) were very much apart (TV used film star, press used a cartoon).

Thus depending upon the product or service offering and on how best to reach the target consumer, the advertisers work out a suitable media strategy which will ensure the best way to communicate with their target consumers. Often, consumer's purchase decisions as well as the choice of the media are influenced by his social status. For instance, even if a person is not. educated much but being rich he may have a high social status. Such an individual may have more preference for a LCD T.V and not necessarily the print media.

The media selected should be such that it will penetrate the mind of the customer with a matching significance between message and product.

For instance, during the T.V coverage of the Wills World Cup, Britannia Industries', co- related their 50-50 brand of biscuits with the third umpire replays, when viewers were eagerly waiting the verdict of the third umpire, with a message "Gaya Ya Bach Gaya" (out or not out): Britannia 50-50. It was assumed that such an advertisement will be easily retained by the viewers and could have a positive influence on the mind of the consumers when they go to buy biscuits.

Another emerging market has been identified as the rural market consumers. The rural consumer is also facing media explosion with information about new products and services received right inside his home on one side and on the other side information trickling back from those who left the village in search of better prospects to the city. Here also the rural customer is vying with his better off urban cousin, by trying to improve upon his living style and consumption pattern so as to match his counterparts in the city.

Thus the marketer has to know the differences among the classes in their media choice behaviour. For this he will have to do analysis of the media and programmes watched by the target customers, the significant characteristic factors of each media and programme, which will be keeping in tune to the attitudes and values of one class as compared to another class.

4. Influence Of Social Class on saving & buying attitudes of individuals 

Social class also affects the saving and money borrowing attitudes of the members belonging to a particular class. In a study conducted by Pierre Martineau, on 'Social classes and spending behaviour', Martineau had asked people to suppose their incomes were doubled over the next ten years, and to explain what they would do with the increased income. And he found that 'higher the social status, the more likely people are to save rather than to spend' (Source: Consumer Behavior - Bennett, Kassarjian, P. 122, 1987). Martineau's study reveals that unlike the usual assumption that only people belonging to the lower social class prefer to save rather than spend, the same holds true often in case of higher social class also. Martineau also noted that higher the status, the more likely is the individual to specify how he will save his money. This shows how elaborately financial planning is done by the consumers belonging to the higher social class in the society. With regards to the lower social class- consisting of individuals who are barely able to make two ends meet, their consumption pattern will be evolved around purchasing only the basic necessities of life. Consumers belonging to this social class are less likely to consider decisions related to investment or saving.

In the past decade or so, the Indian society has been witness to many changes occurring in the social class standing of individuals. This could be because of the focus on education, more job openings (compared to earlier times) with attractive salary, better purchasing power and so on. We will try to understand the influence on social class on consumer behaviour by viewing: impact of IT, taste of clothes, fashion and shopping, choice of recreational activities and middle class "consumption community".

Impact of IT

In the IT (Information technology) age today, there is seen a mad rush of people from all walks of life to become computer literate. Even youth belonging to the lower social class feel that a working knowledge of computors will help them to get a job.

In fact, the use of technology has impacted the lifestyles and quality of life of consumers. It is felt that understanding of computers is a necessary tool to be competitive as well as an indicator of success. Consumers are comfortable to carry out buying transactions over the internet, the popularity of websites such as indiatimes.com, amazon.com, etc., is an indication of this trend. The young upward mobile trendy individuals earning decent (surplus) salary use e-ticketing for air and rail travel.

Taste of Clothes, Fashion and Shopping

Marketers of clothing have long back recognized the need of consumers to wear clothes to fit their self image which may be in tune to emulate (more often) persons who have more purchasing power than them.

Even members belonging to different social classes wear fashionable clothes suitable to their class. For instance, middle class would prefer to purchase reasonably priced branded clothes such as Peter England, Ruff & Tuff Jeans, Big Bazaar made etc. These customers prefer clothes which will give them a decent identification and quality should match the price of the branded clothes. The upper social class will not be price conscious. They will prefer branded exclusive designer wear such as clothes from Park Avenue, Westside, Reid & Taylor etc, where the make itself spells exclusiveness.

Social class is also an important variable in determining where a consumer prefers to shop. Customers will not have a preference for shops which is frequented by consumers belonging to another class. For instance middle class consumers have two kinds of attitudes: one is oriented towards fashion and the other towards price. I.e., this category of customers are seeking shops or retail outlets where they can get the value for the money spent on the (branded) product along with the benefits. They being bargain hunters may prefer to shop from Fabmall, Trumart supermarket (Fresh & More), Margin Free, Food Bazaar, Big Bazaar, Star Bazaar etc. In higher middle class category there may be classic customers who are willing to pay any price for the image or brand of the product. Such informed category of classic customers may prefer to patronize Globus, Shoppers Stop, or Westside outlets. In contrast, the rich class will prefer to purchase brands which are of the premium status these could be brands such as Louis Phillip, Reid & Taylor, Rado watch, Piaget Cartier, Carbon (jewellery) etc. For the premium product there are exclusive outlets catering to the rich class.

Some retailers have gone for outlets which cater to different, class category of customers. For example, the Future group runs Big bazaar outlets for the bargain hunting class, it also has Pantaloon retail outlets where vast branded product offerings, superior quality, genuine price, convenience, and ambience is available for the higher middle class customers.

Choice of Recreational Activities

There could be differences in the choice of recreational activities depending upon the social class. The rich (upper class) consumers are likely to attend Page 3 parties, socialize with the elite, attend concerts or theatre, play bridge billiards or Golf, have drink parties, and go abroad for shopping and pleasure. The upper middle class persons take membership in clubs, plan pleasure trips abroad with family, go shopping and entertainment with family in well known malls, watch live cricket matches, reading, go swimming etc. The lower class consumers may enjoy watching movies on TV or visit friends and relatives during festivals.

In case of the middle class there is seen a trend of spending more on activities involving the family members. Especially the trend of joining clubs for recreation and entertainment is picking up among the middle class consumers.

Middle Class 'Consumption Community

Marketers have realized that it is the middle class, as per the social stratification, which is emerging as the 'consumption community' for all types of goods and services. The individuals belonging to this class are better educated/professionals, exposed to the lifestyles of the rich upper class and with high flying aspirations. The consumption pattern of the middle class includes instant food/beverages, toiletries, cosmetics (premium brands) readymade garments, home appliances and quality furniture. With the breaking up of the traditional joint family system and emergence of nuclear family set up, the middle class homes comprise of a working couple together ensuring an increased flow of income to the family. This has resulted in changed lifestyle and increased affluence of the middle class and also an open attitude to invest in the stock market. There is a change in their buying behaviour shown in their keenness to purchase products and especially home appliances conveying a message of 'save time' or 'makes your job easy'.

Various surveys have revealed that the desire to acquire credit cards is very high among the middle class consumers especially in the age group of 19-30 years. The initial misconception associating 'Credit Card' as a status symbol has long since disappeared due to 'Citibank' who was able to convincingly communicate to the target consumers the convenience of using the Citibank credit card. The target consumers were educated on the benefits of using a credit card-ability to withdraw cash from their ATMs and making purchases on the credit card. The taboo associated with "credit" has started disappearing with the phrase of "buy now even without instant cash" fast catching up, with the middle class buyer. The middle class person is also actively participating in the money market. He is seen investing in stocks and mutual funds which he feels will earn him good dividends. He is also interested in real estate, purchasing land in the hope to sell it off when the price of the land has increased substantially. The above mentioned behavioural pattern is because the middle class consumer wants to live up to the image of his social class. Simultaneously he is trying to rise to a higher class with more purchasing power in his hands.

Thus, the task set before the marketing decision maker is to identify the behaviour of the social class to which his target market belong. They have to strive to influence the buying behaviour by understanding the intimate group influences on the consumers, the opinion leader who can motivate the buyer and design suitable media for communicating with this target market.