Earlier quoted context omitted.
WTF is this social hierarchy? I hear about it a lot but really it just sounds like hanging out with douchebags.
I think this is an expression that sums up how you view yourself in comparison to other people and how you think other people view and "rank" you. I can honestly not imagine that anyone has never had thoughts like this, so for better or worse, there IS something like this out there and if you need more proof then just think of all the brands and labels offering you mostly image and their name and a perceived step-up…
People who care a lot about fake gimmicks like these (clothes, friends, status, power) are usually shallow, self-centered and insecure; the exact opposite of the people a self-confident and secure person would want to hang out with. It's the same thing when dating; there are a lot of semi-dishonest tricks guys can use to appear more attractive to a lot of girls. But the girls that fall for these tricks are rarely very interesting on a more personal level.
It's a mechanism that's cool to be aware of, but not something that any secure person would actually endorse. Unless you _need_ to interact with people like these in a professional setting or something.