To What Level Does Social Inequality Dictate Consumption of Products - Essay Example

? To what level does Social Inequality dictate consumption of products? Sociology Research Project Aysha Boshor Kingston To what level does Social Inequality dictate consumption of products? Abstract  It seems that nearly everybody is lamenting about the cost of living nowadays. Even the Government has been forced to look at austerity measures regarding spending and saving, and controlling inflation has become one of the most important issues. Purchase and consumption behaviour across the social spectrum in the UK has been largely dictated by income, lifestyle, peer choices and price sensitivity. This paper discusses to what level does social inequality dictate consumption of products of daily use. A study was undertaken to cover mainly the spending and consumption habits of the middle and lower classes of society in the UK, with participants maintaining a food log for a month and also taking part in a survey distributed at supermarkets where level of income, lifestyle, peer pressure and television advertising were considered for their impact on buyers’ purchase and consumption behaviour. It was found that peer pressure and television advertising had a secondary impact, the primary one being the price sensitivity and the lifestyle choices made by the individual or household, all depending on the level of disposable income that was available to the consumers. To what level does Social Inequality dictate consumption of products? List of Contents  No. Topic Page 1 Introduction 3 2 Literature Review 5 3 Research Questions 9 4 Methodology 10 5 Findings and Discussion 13 6 Conclusion 16 7 References 17 8 Appendices 19 To what level does Social Inequality dictate consumption of products? I. Introduction  The 21st century has been hailed as the new millennium. It is a good chance to bury the problems of the past century and start anew. While the 20th century has been remarkable in terms of material progress and comfort in nearly all fields of human endeavour, it has still generated human hatred and discontent for the first time on a global level resulting in two World Wars no more than three decades apart. It is still worth remembering that it was social inequality and a sense of deprivation and anger among the masses that were the real seeds of sowing these world wars. For they played into the hands of capitalists, industrialists and warmongers who rather than tackling the social inequalities that were an inherent part of society, chose to look outward for a military solution to their problems. In any event we did not learn from the first such instance and the world was destined to repeat it not too much later. However it is a sad fact that even today, at least 50 percent or more of the world lives in mass poverty, eking out a subsistence level existence in many underdeveloped countries across the world. Even in so called industrialized economies, we have yet to tackle the social problem of the homeless and the dispossessed that many see as problems of an inefficient and greedy economic and financial system that victimizes people at the end of every business cycle. Social inequality, especially in terms of income levels remains a problem in determining health and wellness benefits of citizens, while also placing limits on the quantity and quality of goods and services of consumption that can be afforded by different sections of society. It is best defined as “a social condition in which privileges and obligations are given to some but denied to others” (Henslin 2005, p.81). In this research project, we will discuss the impact that income inequality has on the consumption and purchasing power of different sections of society in the UK. The purpose of the research project at hand was to determine whether and to what extent are consumer choices regarding food and other items related to their income and social status. Fortunately or unfortunately, the level of income earned by a household depending on their professions and abilities is the main determinant of the status they enjoy in life. The nature and scope of their lifestyle, the main activities they undertake every day and even the distribution of work and leisure hours over their lifetimes are based upon the size and regularity or irregularity of their income or other earnings- be it from investments, overtime, moonlighting or any other source. Since the lower class of society mainly feel that they are the victims of society, forced to subsist on meagre incomes in low paying jobs that is typically their lot, we will focus on the consumption habits of this strata of society. In the process we will also determine how much the power of advertising and media over the television has on their purchasing and consumption habits. We will also try to determine how, with typically low paid and temporary unskilled employment, these people view the food products they purchase in terms of getting dietary satisfaction or not. Lastly, we will investigate whether and to what extent does peer group pressure and price sensitivity of the food consumed by these individuals and families and whether or not this varies according to the types of products being purchased and consumed. II. Literature Review  To date there have not been many studies conducted about the linkages between product consumption and social inequality in the UK. The earlier social thinkers such as Karl Marx and Friedrich Engels quite likely had their own agenda and purposes behind their writings and speeches to display the diverse conditions that existed in English society at that time. Engel’s findings were published in The Condition of the Working Class in England (1845) and his dissatisfaction is evident in his most quickly teaming up with Karl Marx to write the Communist Manifesto (1848) and Das Kapital. He also published his own theory and ideas about Surplus Value. Obviously they thought that social upheaval through a popular uprising was the only way to uproot the capitalist system and its evils from society. Even today, social inequality under the lens of finance is important to marketing organizations and also the strength of the national economy based on tax revenues earned by governmental bodies and ensuring corporate health. Thus, uncovering what drives consumption between classes, especially the lower-income class is important for economic issues as well as satisfying knowledge regarding social systems. In this report, social inequality will be measured under the class system that drives most Westernized countries, defined as a type of social stratification based largely on the possessions of money or material possessions that an individual holds (Henslin). Social inequality is thus “the most consistent predictor of his or her behaviour, attitudes and life chances” (sociologyindex.com 2011, p.1). According to a report in the Independent, Britain remains a deeply divided society in terms of income inequality after 13 years of Labour Government rule. The National Equality Panel set up by Harriet Harman in 2008 to investigate income inequalities found that differences in social class still account for differences in life chances and that there remain deep seated systematic differences between social classes in the UK (Cassidy, 2010, 1). These differences in fact even had an impact on the desire to learn and poorer children were found less willing to start school than rich kids. If anything, the gap between rich and poor widened as one progressed along the education system right through graduation. Poor kids were not surprisingly found less likely to attend university or to graduate from a prestigious school. These differences have been more evident since the 1980s and though the gap has narrowed in recent years, it is still not good enough. Thus it appeared that there is social warfare being engendered among the different classes by the Labour Government of Gordon Brown. In their report entitled Poverty and Wealth Across Britain 1968-2005, the authors opine that Britain is fast moving back to an era of poverty and social inequality last seen 40 years ago. They found that the number of people or households at or under the poverty line in terms of consumption ability has remained at a consistent 17 percent in the last 15 years or so. The spatial distance in terms of areas where the rich and poor have residences has also widened and polarized as a consequence of urban city development. However it was encouraging to note that as much as 23 percent of UK households had managed to pay off their housing mortgages and now owned their homes. As poor and richer abodes have become increasingly segregated, the rich class now live either in the centre of London city or on the outskirts in exclusive communities. The authors however lament that income inequalities which were first evident in the 1980s had increased in the 1990s and 2000s but the effect of the last decade was still being worked out (Dorling et al, 2007). They have classified 6 percent of Britain’s population as exclusively wealthy while 11 percent have been grouped into the core poor or abjectly poor class of society. In fact Bartley and others (1996) have even done a study linking health and mortality according to social class. Using Erikson-Goldthorpe schema, they determined that higher chance of mortality existed in groups without a career structure and lower discretion over their work assignments. This has implications for employment conditions in the workplace. Occupation and employment status were the determinants of social class in this context. It is hoped someday that studies concentrating on non-work classifications of social structure may also be undertaken. It is known that people with higher financial resources tend to enjoy the ostentatious presentation that comes from consuming products as a means of demonstrating wealth (Mariana, Raluca & Gratiela 2009). However, lower-class individuals with less discretionary income have a variety of different problems that are associated with consumption including lack of resources and physiological discrepancies that dictate the type of consumption possible or desired. There appears to be a fundamental difference between the higher resource consumer and the lower-class buyer. People in lower-class or middle-class buying segments see consumption as “the adequate, appropriate reward for their productive efforts” rather than finding personal utility through consumption and psychological needs rewards (Wolff, p.2). How low and middle-class consumers view consumption is important as the research study seeks to identify how social inequality dictates consumption patterns. Mass media also seems to have an influence on these decisions. Modern communication technologies are referred to as being “elite manipulation and oppression” (trinity.edu 2011, p.2). Marketers of low cost products targeted to lower class individuals are constantly present on television and thus influence purchase decision to some measureable degree. However, as social class increases, so does the volume of television viewing. Television “leads individuals to view themselves as being relatively powerless and apolitical, oblivious of the real forces shaping their lives” (trinity.edu, p.3). Thus, we will also consider how television advertising shapes the consumption patterns of those who are isolated by social inequality. A recent study conducted to measure food-related consumer perceptions of products identified two types of buyers: food-secure and food-insecure consumers. Food secure buyers are those who have adequate resources and are able to sustain their physiological needs appropriately. Food insecurity is “the inability to obtain sufficient, nutritious, personally acceptable food through normal food channels or the uncertainty that one will be able to do so” (Rock, McIntyre & Rondeau 2009, p.168). Consumer theory in marketing also dictates that some individuals consume for the personal regard they receive from others, the proverbial keeping up with the Jones’ philosophy of consumption: “Over time, their intrinsic sense of their own identity and their own evaluations of experience and attributions of value may be replaced by creations partly or even entirely due to the pressures felt from other people” (Mulhauser, 2011, p.1). Peer opinion about consumption is a widely understood fact as a rationale for making product purchases, especially with higher income buyers. However, does the lower class individual with less resources concern themselves with peer or other social opinion when making purchases while they are being burdened with certain physiological restrictions? If the lower class individual affords the luxury of being a variety seeker, rather than relying on peer opinion, they are likely to be price-sensitive (Martinez & Montaner 2008). To understand whether individuals purchase products, in lower-class categories and lower resource availability, it is necessary to understand how they view consumption as compared to other members of society. Do they purchase for their own identity, refer to peer group opinion, or simply buy out of necessity? III. Research Questions  As can be seen from the preceding paragraphs, the main query behind all the research effort was to determine how social inequality dictates the consumption of products. To answer this question, the research questions posed were as follows: 1. How does the lower-income buyer view their consumption habits in relation to government, politics, or corporate employment? 2. What role, if any, does television usage (volume and content) dictate lower-income buyer preferences and consumption behaviours? 3. In relation specifically to food, how do food insecure individuals view the food products they purchase in relation to needs or environment? 4. What is most important to the lower-income buyer- peer opinion or price sensitivity and to which types of products does either/or apply? In other words, this sociological research project was expected not only to draw a relationship between income, consumption and lifestyle but also to determine how the lower class of society respond to the jobs provided to them in terms of daily living, purchasing and consumption activities. Obviously the highly relevant factors of media advertising and peer group recommendations had to be included as these factors cannot be ignored in the consideration of modern lifestyle choices- no matter what strata of society we are dealing with in a typical Western economy. IV. Methodology   As can be seen from the earlier part of the research project, the methodology involved first of all the creation of a Food Log, followed by a multi-purpose Survey covering the purchasing habits of the lower class families in selected areas. The multipurpose survey had three distinct sections- one about general consumption behaviours, the second about the influence of television and peers on decision-making, and the third about any physiological restrictions that each participant maintains in their lifestyle. These surveys were distributed by the researcher in an environment where low-income shoppers frequented in the region, while guaranteeing anonymity to the participants. However the expected sample to be collected was 50-100 individuals of varying demographics and socio-cultural backgrounds to gain a broader perspective of what drives product consumption as it relates to their social inequality as compared to other more resourceful consumers. The data gathered from the study was then analyzed and correlated to find any similarities that might exist between certain socio-cultural backgrounds, geographic distribution or other relevant commonalities. This data was further compared to available sociological literature and marketing literature regarding the consumption habits of affluent and non-affluent buyers to identify any potential trends from the sample group results. To influence participation of the lower class individuals especially, it was thought necessary to distribute food coupons that gave them ability to purchase food or participate in one of the food kitchens sponsored by corporate firms or social welfare groups. This not only makes the research more authentic but makes the participants less reluctant to participate in the survey. Normally people are reluctant to talk about their personal habits or food choices so this is one way to overcome this barrier. Once the people are convinced there are no ulterior motives they are more than willing to cooperate, especially if they realize that it may benefit their lot in the long run. This fact might apply to all income and social groups, regardless of their place in society. Coming to the choice of research methods, the creation of a food log with the kinds of food and drink consumed by the average middle to lower class consumer was a first step in realising the divide if any that exists between these and the higher classes of society. Common sense would dictate that it is so. From the very simplest of elements across the breakfast table- bread, muffins, jams and other items to the comparison of complex dinners and desserts with the typical readymade meals that form the dinner choices of the lower class, it is evident that income disparities dictate these choices and limitations. The food log is a readily acceptable piece of evidence that would give credence, validity and reliability to the income disparities observed among the different classes of society. While the elements of breakfast and dinner are undoubtedly the same, like bread and butter and jam, the price of these items, the taste and variety is quite different for the upper, middle and lower income groups. Where the upper middle class can rely on a varied and nutritionally filling breakfast, the lower classes would have to do with what’s available or even what was left over from yesterday. These were the stark realities expected to be observed from the data collected. Much the same story would be expected of dinner varieties. While some of the upper class chose to forgo lunch for reasons of health, maintaining a healthy lifestyle or reducing the waistline etc, most of the lower income group simply skipped lunch now and then out of necessity. They could not afford a good lunch, except a sandwich sometimes. Coming to the multi-purpose survey, it was distributed in retail shops and department stores like ASDAs and Sainsburys in Surrey where the sample population was to be targeted. It would give me a good idea of the purchase and consumption patterns of various income groups, what were the influencers of these choices- media advertising, peer group choices or any other- and where price sensitivity was involved. It would also help determine how these classes perceived they were being treated by society. While the first instrument i.e. food log would be quantitative being just a record of items consumed, the second i.e. multipurpose survey would seek to find the qualitative connection between consumption choices, their influencing factors, relation to price sensitivity and perceptions about how the participants viewed themselves as members of society. Population and Sample Size As can be seen from the project details above, it was estimated that a good sample size would be between 50 to 100 participants, dispersed along the same lines as the population with the desired characteristics being measured. According to an article published in the Guardian as recently as December 2011, the OECD estimates that income disparity in the UK is rising rapidly as the average income of the top 10% of the population is twelve times that of the lowest 10% of the masses. It has also been noted that these disparities are increasing in other parts of the world like the developing economies. Even the USA was not immune as the top 1% earned 20 percent of the total gross income of the nation, before the financial crises of 2008. No wonder there have been worldwide ‘Occupy Wall Street’ type protests against this menace. Even Government seems to have to bow down to these pressures (Rogers, 2011, 1). Although the data from the food log and the sample surveys was not more than 70 percent of the total given out, it still gives a reasonably strong picture of the results. The forms were either given out by hand or left at the stores and retail outlets to be distributed by the store clerks. We had to involve the managers of the premises and explain our purpose of doing the research. Thankfully there was not much opposition and most of the data collection being able to be marked on the form made it easier to complete, compile, summarize and evaluate. V. Findings and Discussion  As to how the lower-income buyer views their consumption habits in relation to government, politics, or corporate employment, it was seen that the low income households especially the homeless were highly critical of Government’s role of managing the economy and lamented that they had been cheated out of their savings and assets following the repossession of their houses and cars by the banks. If the Government was serious about it, how come the bankers and business owners were not brought to task? How come this behaviour repeated itself every business cycle? While those in Government or public employment were less disparaging, others in private employment and the self employed really found it difficult to make ends meet and enjoy a reasonably comfortable lifestyle. As many as 30 respondents or 42.85% felt that the food they consumed barely met their dietary requirements. 20 felt it was lacking in some respect, 10 felt it was adequate while 10 felt it was more than enough to meet their requirements. It was also clear that television advertising played a big role in dictating the preferences of middle and lower-income buyers in regard to purchase of items of daily consumption. Apart from that, special offers and discounts were also of considerable importance, as felt by more than 10 percent of the respondents. While food insecure individuals viewed the food products they purchase as a normal expenditure and do not bargain even if the prices raised a little, among the lower classes there was comparison shopping for nearly all items and list making before trips to the store. News of food coupons or discounts was quickly relayed to relatives and friends. As many as 40 respondents were highly price sensitive, 20 were moderately sentivitve and 10 percent were only a little sensitive price increases. Analysis of the data indicated that while peer opinion and television advertising did play a role in their important to the lower-income bracket, it was ultimately price sensitivity that dictated purchases for daily consumption from breakfast to dinner. This even applied to personal items like perfumes, underwear and shaving kits. As many as 30 respondents reported price sensitivity to be the most important factor regarding their purchases (see below), while 10 each regarded peer pressure and special discounts or offers to be a major determining factor. 20 were most influenced by television advertising. VI. Conclusion It was observed from the analysed data that there was clearly a connection between income disparity and food choices. While most of the lower income group showed a desire to consumer a better and more nutritious variety of items, the paucity of income limited their choices. They also had less discretionary income to spend and were mostly living from hand to mouth in most situations i.e. simply making ends meet. Most of them viewed it as their lot in life and were critical of Government initiatives. They said that there was simply not enough to go around. The middle class however aspired to do better in the future- they had better food choices, and a healthier lifestyle. The lower classes did not care much about their health. The higher classes were the best off with the best variety of choices showing that income does have an impact on quality of life. References  Bartley, M; Carpenter, L; Dunnell, K & Fitzpatrick, R.(1996). Measuring Inequalities in health- an analysis of mortality patterns based using two social classifications. Sociology of Health and Illness, Volume 18, Number 4, pp 455-75. Cassidy, Sarah (2010, Jan 27). Social inequality gap remains, study finds. The Independent, Social Affairs Section. Dorling, Daniel; Rigby, Jan; Ben Wheeler, Dimitris Ballas, Bethan Thomas, Eldin Fahmy, David Gordon and Ruth Lupton (2007). Poverty and Wealth Across Britain 1968-2005. Accessed at the Joseph Rowntree Foundation on 3 May 2012 at http://www.jrf.org.uk/publications/poverty-and-wealth-across-britain-1968-2005 Henslin, J.M. Sociology: A Down to Earth Approach, 6th ed. A&B Publishing, 2005. Mariana, C., Raluca, G. & Gratiela, G. (2009). Culture – Major Determinant of the European Consumer Behaviour, Annales Universitatis Apulensis: Series Oeconomica, 11(2), pp.1019-1025. Martinez, E. & Montaner, T. (2008). Characterization of Spanish store brand consumers, International Journal of Retail & Distribution Management, 36(6), p.477. Mulhauser, G. (2011). An introduction to person-centred counselling.Online. Accessed October 11, 2011 at http://counsellingresource.com/types/person-centred/ Rogers, Simon (2011). OECD Income Inequality Report-How Do Different Countries Compare? Online. Datablog Section, the Guardian online, UK. Accessed on 01 March 2012 at http://www.guardian.co.uk/news/datablog/2011/dec/05/oecd-ineqaulity-report-uk-us Rock, M., McIntyre, L. & Rondeau, K. (2009). Discomforting comfort foods: stirring the pot on Kraft Dinner and social inequality, Agricultural Human Values, vol. 26, pp.167-176. Sociologyindex.com. (2011). Social stratification. Online. Accessed October 12, 2011 at http://sociologyindex.com/stratification.htm Stovel, K. (2007). Sociology 401c: Food and social inequality, University of Washington. Online. Accessed October 11, 2011 at http://courses.washington.edu/soc401a/syllabus-fall-07.pdf Trinity.edu. (2011). Explorations in social inequality. Online. Accessed October 12, 2011 at http://www.trinity.edu/~mkearl/strat.html Wolff, R. (2004). The riddle of consumption. Online. Accessed October 12, 2011 at http://rdwolff.com/content/riddle-consumption Appendices A. Survey Form Information Obtained From a Participant Personal Details: Name: Mr/Mrs/Ms Erica Longfield Age: 33 years Occupation: Housewife Family Size: 5 (2 adults, 3 kids) Location: Surrey, UK (Henslin, 2005, 177). 1. How do you view the food products you consume on a daily basis? a) Barely meeting your family’s dietary requirements. b) Adequate in relation to energy expended for daily needs. c) Lacking some or the other nutrients most of the time. d) More than meets the dietary needs of the family. 2. What do you think of the prices of items, quality and quantity being made available at these prices? a) Dismal conditions- Government and regulatory authorities have no control over quality, quantity or price. b) Good conditions- adequate quality, good quantity and reasonable prices. c) Price, quality or quantity supplied needs to be improved (mention which) _________________ 3. Do you think the Government is doing a good job concerning the provision of meals and handouts to homeless and other people living on subsistence/below the poverty line? (tick one) Yes ___ No ___ Not sure ___ 4. What do you think if any needs to be improved for people on welfare, handouts and the homeless in terms of food assistance programs? a. Nothing- they are doing absolutely fine as it is. b. Not sure- there are limits to what the Government can do in this situation. c. Quite a lot needs to be improved in terms of the quantity, quality and regularity of meals supplied (Mention which) ____________________ 5. To what extent do you think purchases of food and drink items for consumption purposes are dictated by TV advertising? a. Very much indeed-most of my purchases follow the ads. b. Debatable- depends on how much I believe the advertisers claims. c. Not at all- I pride myself on being a logical person and buy things only when I am convinced of their worth or benefit. 6. To what extent do you think that purchases of food and drink items for consumption purposes are dictated by the recommendations of your peer/ referral group? d. Very much indeed-most of my purchases are based on it. e. Debatable- depends on how much I trust their judgment. f. Not at all- I pride myself on being a logical person and buy things only when I am convinced of their worth or benefit. 7. Would you say that your purchases of food and drink items on a regular basis are affected by (please tick as appropriate): Price YES NO MAYBE Quality YES NO MAYBE Quantity of the good being supplied YES NO MAYBE Any other factor (please mention) YES NO MAYBE Thank you for your participation in this survey. B. FOOD LOG OBTAINED FROM A PARTICIPANT: Date Day Meal Items Consumed Quantity 20/12/11 Mon Breakfast Bread 2 slices Butter To taste Jam To taste Toast 1 slice Tea 1 cup Lunch Sandwich 1 midsized Cold Drink 1 glass Teatime Biscuits 3 Pastries 1 Tea 1 cup Dinner Rice 1 plate Meat 2 pieces Veggies 2 oz. Salad 2 oz. 21/12/11 Tue Breakfast Bread 2 slices Butter To taste Oatmeal 1 bowl Lunch Burger 1 midsized Iced Tea 1 glass Teatime Biscuits 3 Green Tea 1 cup Dinner Roast Beef 2 slices Fries Qtr plate Bread 2 slices Read More