Consumer culture of low income consumers

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.

In addition, research completed in Norway by Thorelli shows that low-income consumers are less aware of the existence and nature of specialized consumer information services.

Government agencies and local welfare organization can incorporate your products into their programs and make them visible to the low-income consumer.

Poverty is seen as a situation or condition facing an individual. Although most psychologists would affirm that behavior is always a joint function of the external situation and personal disposition Allen,p.

Empowering low income and economically vulnerable consumers

While higher-income consumers are unique in their access to various devices and media types, lower-income consumers are distinguished in their consumption of the media they do have access to, including digital media. 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.

Individual differences can exist in background influences for example, demographics, life styles. Also, IPT provides a theoretical framework incorporating all the recognized determinants of consumer behavior, forces a more empirical approach to the study of consumer decision making, has the ability to make unambiguous and precise predictions about detailed aspects of consumer behavior, and draws a distinction between what is "psychological" about consumer behavior, and therefore constantand what is "sociological and "environmentally" determined Olshavsky, Characteristics of Population Below Poverty Level: Staying small and hiring local staff that connect well with consumers is appealing, as low-income people tend to prefer to buy from relatives or friends that they know; word-of-mouth recommendations are heavily relied upon, especially in making major purchases.

Specific topics to be addressed are: The accompanying model has three key components: Research contributions that are based on, or influenced by, the existing models for example, information processing theory, attribution theory, the Engel, Kollat and Blackwell model will definitely make a more meaningful and lasting contribution to the better understanding, prediction and explanation of both low-income consumer and consumer behavior as a whole.

However, the number of low-income consumers will increase rapidly in the next few decades, as explosive world population growth will occur mainly in those countries which can afford it least.

Nonetheless, at least from the low-income perspective, cognitive dimensions of individual person factors may be one of the least explored areas.

To better understand consumers across the economic spectrum, Nielsen conducted an analysis of media usage and purchasing behaviors.

The same strategy employed for high-income earners -- namely, building and maintaining the right relationships -- is the best way to capture and maintain customer loyalty.

Marketing Strategies for Low-Income Consumers

Whereas the "culture of poverty" view argues for special theories of poverty and special kinds of research designed for understanding poverty Hannan,the present authors see no need to create "new" theories for studying the low-income consumer.

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.

A thorough understanding of the low-income consumer in particular, and consumers in general, should facilitate the design of acceptable consumer public policy and should efficiently provide solutions to societal problems.

Marketing Strategies for Low-Income Consumers

Referring to the United States, he noted that "the poverty market is becoming one of the biggest growth sectors, yet only a handful of research papers are published each year about it" p.

Dugan and William H. The actual choice process may be modified by anticipated circumstances such as sudden changes in income, change in residence or physical circumstances, price deals and coupons.

However, the number of low-income consumers will increase rapidly in the next few decades, as explosive world population growth will occur mainly in those countries which can afford it least.

A Word of Caution," Journal of Retailing, vol. Finally, it delineates directions and suggested implications for future research. The terms "poverty," "low-income," and "poor" are used interchangeably throughout this paper.

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 aforementioned factors suggest that research on the low-income consumer may be appropriately pursued from an interdisciplinary perspective. 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.

Also, Belk and Engel, Kollat and Blackwell contend that situational variables or circumstances must be given a more explicit recognition in our conceptualization of decision processes. Problems and Prospects," in Psychological Factors in Poverty, ed.

At that time much interest in low-income consumer research was stimulated by the pioneering work of Caplovitz Based on insights gathered during a year of field study of three families, Newton argues that the low-income consumers may forego search either because it is irrelevant to their purchasing decisions or psychologically too costly.

Thus, those theories which evaluate the individual in his situation relative to the situations of others should be valuable in helping to understand consumer behavior under poverty.

Individual person factors present yet a third variable. Thus, for example, the fact that the poor engage in less long range planning and have short time perspectives is only a reasonable adaptation when facing an incredibly variable environment. In addition, little attention has been given to the area of other persons both poor and non-poor in influencing the behavior and attitudes of the low-income consumer Allen, Verhallen found the following: Individual differences can exist in background influences for example, demographics, life styles.

However, with the exception of a few studies for example, Verhallen,much of the research in this area has been ad hoc and unrelated to existing theories of consumer behavior. The framework presented in the previous section should aid in this regard.

Serving the Low-Income Consumer: How to Tackle This Mostly Ignored Market they have largely ignored the more than 5 billion low-income consumers, SERVINGThE LOW-INCOME CONSUMER FIGURE 2 The 4 A’s of addressing low-income consumers s y y y • Reduce packaging size.

A CONTEMPORARY ANALYSIS OF THE LOW INCOME CONSUMER: AN INTERNATIONAL PERSPECTIVE. ("culture of poverty" and "situational") on poverty. 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. The Economic Divide How Consumer Behavior Differs Across the Economic Spectrum.

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.

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. 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.

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.

Consumer culture of low income consumers
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