Consumer culture of low income consumers

The first step toward examining the international poverty picture then, is to develop a definition of poverty which will encompass its relative aspects.

All these suggested areas of highest priority for research can have more meaning and make a positive contribution if studied within the aforementioned framework. Over the next ten years, the total number of households in the U.

Indeed, Andreasen also notes that there is considerable evidence in the literature that the poor are less knowledgeable than the non-poor about many aspects of the marketplace.

Quite recently, Andreasen pointed out some of the critical questions that need to be addressed or answered, questions pertaining to consumption behavior responses to economic downturns, nature and extent of credit usage and the current status of ghetto market structures.

Social evaluation theories Pettigrew, such as reference group theory, social comparison theory, and relative deprivation theory, in assuming that the meaning attached to a given behavior depends upon the individual's evaluation of his behavior relative to another individual or group, should enable researchers to better understand low-income consumer behavior.

The distinction between the two aforementioned views is not solely academic; it has different and far-reaching research and policy implications.

Over the past few decades the predominance of isolated studies among the majority of marketing academicians shows a general lack of concern in the area of low-income consumer behavior. Apparently, these senior citizens were behaving as senior citizens first and as low income consumers second.

Marketing Strategies for Low-Income Consumers

In addition, growing world-wide inflation has depreciated the purchasing power of many consumers, placing an increasing number of them into the low-income category. The culture of poverty view refers to a way of life or design for living that is handed down from generation to generation and accounts for the behavior of the poor by imposing on them a system of values different from those of the middle class.

The terms "poverty," "low-income," and "poor" are used interchangeably throughout this paper. In his recent American Marketing Association address, Kotler emphasized that one of the most neglected areas in marketing is that of marketing to the poor. Poverty is seen as a situation or condition facing an individual.

Besides the interdisciplinary pursuit, direct and indirect relationships need to be investigated in the general context of a contingency view and based on the theoretical foundations provided in the consumer behavior literature.

It is worth noting that the situational perspective is unquestionably a narrow conception of poverty that focuses on material deprivation.

Such information, be it via governmental agencies or corporations, could, for example, use radio rather than newspapers to make information on competitive product characteristics available to the decision maker to increase efficiency of choice for the low income consumer.

Similarly, the role of such geographic factors as density of settlement, relative location within the national economy, accessibility to transport and markets need to be taken into account since they are likely to affect consumption behavior.

Over the next ten years, more people will move into the lower-income group, which is expected to grow twice as fast as total households. Nonetheless, at least from the low-income perspective, cognitive dimensions of individual person factors may be one of the least explored areas.

By taking a culture of poverty perspective, the studies have tended to introduce an element of bias, in that the writings about the life of the poor have been influenced by a middle class point of view. Such an approach also has 1 the potential of providing valuable inputs in the formulation of public policy designed to regulate programs of consumer influence and 2 the greater potential for understanding the causes of failed governmental regulations and policies that affect the consumer and for providing inputs for improvements in present and potential regulations.

Lower-income consumers exhibit a huge appetite for media, logging almost 15 more daytime TV hours than middle income consumers, and about 25 more hours than higher-income consumers.

The latter is likely to affect strategies used in processing information presented. All shoppers patronize all channels, but certain formats attract a disproportionately high percentage of shoppers from specific income groups," says Jeff Gregori, vice president, Consumer and Shopper Analytics-Retail at Nielsen.

Other successful strategies include loyalty cards that offer rewards and double-coupon savings days. Applying Behavioral Insights in Consumer Protection Policy No. 95 June Rafe Mazer, Katharine McKee, and Alexandra The consumer profile includes a number of related and overlapping potential vulnerabilities including low or variable for low-income consumers may call for policies that would better protect consumers from providers.

For. Further expanding the area of information search, Coe (), in a study of 50 low and 50 middle income consumers, found that the low-income group had a low identification with private brands, preferring to obtain information about well-known brands, thus raising the cost of food.

Low-income consumers face the challenge of meeting day-to-day expenses on a limited budget. The luxury of choice and quality brands is not always an option, and value for money is the main motivator when making a purchase.

The same strategy employed for high-income earners -- namely, building and maintaining the right. The Economic Divide How Consumer Behavior Differs Across the Economic Spectrum.

Marketing Strategies for Low-Income Consumers

Markets and Finances | dollar stores are attracting a broad base of shoppers who are primarily low and middle income.” Lower-income consumers exhibit a huge appetite for media, logging almost 15 more daytime TV hours than middle income.

Consumer culture is born. Americans weren't always addicted to buying things. Long before U.S. consumers racked up $ trillion in aggregate debt, people used to save money for things they.


Empowering low income and economically vulnerable consumers

It develops a new framework in which to study the low-income consumer. A thorough understanding of the low-income consumer in particular, and consumers in general, should facilitate the design of.

Consumer culture of low income consumers
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