Consumer culture of low income consumers

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.

Consumer culture of low income consumers

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.

This paper attempts to synthesize the existing literature on low-income consumers and to delineate directions for future research in this field.

Consumer culture of low income consumers

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.

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.

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 above factors have greatly increased global poverty.

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Accordingly, it is essential to develop a better understanding of this important and enlarged, but often neglected, segment of the world population.

The first step toward examining the international poverty picture then, is to develop a definition of poverty which will encompass its relative aspects. To say who is poor is to use all sorts of value judgements.

The concept has to be limited by the purpose which is to be served by the definition. This paper focuses on low-income consumers, that is, on individuals who lack the goods and services needed for an "adequate" standard of living.

Low income consumers include individuals whose financial resources or income are inadequate to provide a "socially acceptable" standard of living.

The Economic Divide How Consumer Behavior Differs Across the Economic Spectrum

The poor are those whose incomes are insufficient to meet their basic needs. The terms "poverty," "low-income," and "poor" are used interchangeably throughout this paper.

Specific topics to be addressed are: At that time much interest in low-income consumer research was stimulated by the pioneering work of Caplovitz In addition, much research undertaken in the study of low income consumers has been descriptive in nature.

In terms of a general description of the poor, Orshansky and Bretz have noted that men and women without a highschool diploma tend to have difficulty keeping their families above the poverty line, particularly if the family is large. This description has been corroborated by a United States Census Bureau Study which shows that the poor largely consists of those families wherein children live under households headed by females and where the persons heading the households did not complete highschool.

Studies based outside of the United States by Watanabe and Mueller and Musgrove and Ferber provide similar findings.

Watanabe and Mueller compiled a "poverty profile" of rural Botswana based on government statistical data, visits and questioning of randomly selected households.

The poor households were likely to lack a male of prime working age, to be headed by a woman and to have a large number of children under 15 years old.

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Musgrove and Ferber in an explanatory study based on data obtained from Bogata and Medellin, Columbia and Lima, Peru, found that in all three cities studied, poverty households were mostly characterized by low labor incomes.

Education was the most powerful discriminatory variable, although not very powerful in locating the poor. In Africa, while poverty is principally a rural problem, it exists to a considerable extent in the urban areas as well.

Several studies have investigated the shopping behaviors of low-income consumers, but findings in this area have been conflicting.consumer financial product and service needs of low-income and economically vulnerable consumers.

Consumer culture of low income consumers

As a step toward helping to formulate this strategy and its implementation, the CFPB’s Office of Financial Empowerment hosted a national convening in Washington, DC on November , 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. 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.

Marketing Strategies for Low-Income Consumers | Your Business

These consumers are diverse in culture, geography, stage of life, and financial status. Last year, the Office of Financial Empowerment hosted a forum to examine the unique consumer financial product and service needs of low-income and economically vulnerable consumers.

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 . 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.