It develops a new framework in which to study the low-income consumer. Finally, it delineates directions and suggested implications for future research. 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. 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.
Email Share separate addresses by comma Lower-income households represent a high growth opportunity sector for retailers and manufacturers. 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. Over the next ten years, the total number of households in the U.
To better understand consumers across the economic spectrum, Nielsen conducted an analysis of media usage and purchasing behaviors.
Results revealed dramatic differences in the media consumption patterns and delivery platforms across income levels. The same differential was found in CPG shopping behavior, alongside notable similarities in some categories.
Extreme Retailing Understanding both the similarities and differences in consumer goods purchasing patterns is the key to successfully reaching and marketing to both economic groups.
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. Conversely, dollar stores are attracting a broad base of shoppers who are primarily low and middle income.
Branded products make up a similar fraction of purchasing for both upper and lower-income groups. Private-label products are also more similar than different across income groups in most product categories. Shopping strategies differ across income groups, so manufacturers and retailers need to tailor offers to meet the needs of each segment.
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.
The average American devotes hours and 58 minutes to TV viewing each month. 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.
Reaching consumers at the economic polarities requires an understanding of their media usage and adjusting marketing strategies accordingly. Retailers and manufacturers face the challenge of deciding how best to advertise to each income group in such a fragmented media setting.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.
Who Is the Low-Income Consumer? To serve low-income consumers successfully, companies must first account for their lower purchasing power. Figure 1 illustrates a widely- used threshold for defining low-income con-sumers: $10, in purchasing power parity (adjusted for living costs in different coun-tries).
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.
Paper focus on low-income consumers whose economic resources results in them being unable to obtain the goods and services needed for an ‘‘sufficient’’ and ‘‘socially acceptable’’ standard of income (Darley and Johnson, , p.
); in other words, consumers experiencing relative poverty and relative deficiency (Townsend, ) in consumer culture. The Low-Income Consumer is a helpful resource for scholars and researchers in marketing, economics, social work, public policy, consumer policy, and consumer psychology.
The book is also appropriate for students in marketing management, business ethics, sociology of the . 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.