Abstract

The article presents information on the effects of social class on brand loyalty. One important identifying characteristic of market segments is their social class status. People in the same social class tend to cluster in residential neighborhoods. There may be relatively wide income level differences in such a neighborhood, but the people tend to have similar occupations in terms of prestige, skills, training and job responsibility. Social class differences have important implications for marketing strategy. The alternatives likely to be considered by the shopper should determine the retail location of dealers with respect to their potential competition. In lower class neighborhoods dealers for the lower priced popular brands may not need to be clustered since brand loyalty is most common and comparison shopping is infrequent. In middle class neighborhoods considerable clustering of dealers still appears to be the most appropriate strategy. In upper class neighborhoods dealers of certain popular lower priced brands can be separated from other dealers, particularly from dealers of brands in the same price class. However, dealers of higher priced brands would be well advised to locate near the lower priced brand dealers so that trading-up opportunities are readily available.