Essays on The Role of Income and Social Class in Consumer Behavior Case Study

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The paper "The Role Of Income And Social Class in Consumer Behavior" is a great example of a Marketing Case Study. Consumer buying behaviors and trends is a critical tool in marketing strategies development. In this regard, it is the consumer behaviors and changes that guide and influence marketers in the development of the relevant marketing strategies in an organization. Therefore, an organisation serving similar customers will tend to adopt and apply the same marketing strategies while those serving different customers tend to apply different marketing strategies (Ramesh, 2009, p. 23). The consumer buying behavior can be linked to a series of internal and external factors influence.

Internally, the customer demographics influence their buying behavior. On the other hand, external factors are the exiting environmental conditions that impact the ability and willingness to consume a product. An example of the internal consumer-based factors that impact on the purchase process includes the income levels. On the other hand, examples of the external environmental factors that impact on the customer's buying process include the social class and status in society. Nevertheless, although the two examples of factors influencing customer buying behavior impact on the intention and willingness to purchase, they do so at different levels and capabilities (Krishna, 2013, p. 35).

This essay develops a critical analysis of the impacts of the two factors on the overall consumer buying behaviors. As such, the analysis uses key theories to critically analyze the two influencing factors. Finally, in its summary, it draws a conclusion on which between the two variables greatly impacts on the consumer buying behavior and is largely considered in the development and formulation of relevant marketing strategies. Income Factors The income factors among consumers have a ripple effect on their buying behaviors and as well as the marketing strategies adopted to focus on a specific consumer category.

The level of income in a market and among consumers is influenced and determined upon by a number of factors. Kawachi and Subramanian (2014, p. 126) developed a study evaluating the causes of different levels of income in a society. In this regard, the study was guided by the principles that there are many causes and effects of varying income levels in society.

In this context, it established that the national economic development levels, in terms of GDP and per capita income had a direct and influencing role in the overall market earnings. In this case, nations with a high GDP growth rate as well as a high per capita income had a tendency of having the market and society earning high incomes. On the other hand, the nations with a low GDP value and overall per capita income had their society and consumers earning less as compared to their peers in developed and high GDP nations (Farina, (2012, p. 19).

In addition, the level of development and employment levels lead to effects on the income levels. In this regard, nations with a high employment level had the high-income level for the majority of the employees, while those with low employment and high unemployment levels had minimal earnings for equal level employees respectively (King, 2012, p. 390). The level of income has a direct impact on the nature and extent of disposable income available in the market. Disposable income can be described as the number of funds in the market that the consumers have ready for spending after the deduction of their basic needs and recurrent expenditures.

In this case, the availability of high disposable incomes is based on higher earnings. On the contrary, minimal earnings lead to low disposable incomes in society. Sabelhaus et al (2013, p. 18) developed a study evaluating the relationship between consumers' earnings and disposable income to their interest and willingness to purchase. In this case, the study was guided by the assumption that the availability of disposable incomes was likely to impact on the customers buying trend and product choices.

In this case, the analysis established that the availability of disposable incomes had a direct impact on the overall employees' and customers' ability to demand a product. This is based on the conventional marketing definition of demand. While the normal perception of demand is described as the actual purchase of a product, marketing perceives demand in a different perception (Stadtler and Kilger, 2008, p. 293). In his case, marketing defines demand as the willingness and ability of consumers to consume a product at a given price over a given period of time.

In this case, the availability and level of disposable income led to the variances in the ability to purchase. In this case, although many could be willing to purchase a product, they were unable to purchase due to the availability of funds. Therefore, based on this analysis, it is apparent that income levels have an effect on the overall consumers’ ability to purchase a product (Jacobs, 2008, p. 52).


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