Low‐income consumers' reactions to low‐involvement products

2009 ◽  
Vol 27 (7) ◽  
pp. 882-899 ◽  
Author(s):  
Ayantunji Gbadamosi
Keyword(s):  
Low Income ◽  
Women Consumers ◽  
Content Type ◽  
Marketing Environment ◽  
The Subject ◽  
Low Income Women ◽  
Grocery Products ◽  
Low Income Consumers ◽  
Depth Interviews ◽  
Is Value

PurposeThe purpose of this paper is to explore the attitudes and behaviour of low‐income women consumers in respect of low‐involvement grocery products.Design/methodology/approachOne focus group and 30 in‐depth interviews on the subject‐matter are conducted with low‐income women in Salford (Northwest England). Given the nature of the topic and the target respondents involved, the subjects are recruited through the use of purposive and snowballing sampling methods.FindingsThe findings suggest that low‐income women consumers' purchases of low‐involvement grocery products are based on habit. They do not show strong loyalty to brands of these products, and do not perceive price as an indication of their quality. Their key motivation underlying their purchases of these products is value‐for‐money. Also they are very sensitive to sales promotional stimuli, albeit in varying degrees according to the respective attractiveness of these tools. However, while they indicate a positive attitude towards buy‐one‐get‐one‐free (BOGOF), free samples, discount and coupons, BOGOF stands out as their best preference; but they are not positively inclined towards gifts and competition.Originality/valueThe paper explores the motivation, attitudes and behaviour of a special group of consumers (low‐income women) in respect of low‐involvement grocery products. It indicates the directions of their sensitivity in terms of marketing stimuli. Hence, it will be valuable for marketing decision making towards providing this group of consumers with the utmost satisfaction needed in this increasingly complex marketing environment.

Shopping streets vs malls: preferences of low-income consumers

2019 ◽  
Vol 37 (2) ◽  
pp. 140-153 ◽  
Author(s):  
Marco Tulio Zanini ◽  
Fernando Filardi ◽  
Fábio Villaça ◽  
Carmen Migueles ◽  
Aline Menezes Melo
Keyword(s):  
Low Income ◽  
Policy Decision ◽  
Decision Makers ◽  
Shopping Malls ◽  
Content Type ◽  
Quantitative And Qualitative Research ◽  
Research Findings ◽  
Patronage Intention ◽  
Low Income Consumers ◽  
Depth Interviews

PurposeThe purpose of this paper is to identify the attributes of shopping streets and shopping malls that influence the satisfaction and patronage intention of low-income consumers in order to understand the consumers’ preferences when it comes to shopping in these retail agglomerations.Design/methodology/approachThe study is based on quantitative and qualitative research, including in-depth interviews and focus groups with low-income consumers. The research collected data from 396 consumers at 3 retail agglomerations in Rio de Janeiro, Brazil, and used a structured questionnaire to identify 12 attributes as the factors of the agglomerations’ attractiveness.FindingsThe results show that the items “selection” and “value” affect satisfaction and patronage intention at the same intensity in both shopping streets and shopping malls. However, the item “access” proved to be important for shopping malls, and the item “security” proved to be important for shopping streets. The results indicate that shopping streets have a preference for patronage intentions, despite the greater satisfaction generated by shopping malls. In addition, the study looked at consumers’ opinions on these retail agglomerations.Originality/valueThe research findings help to build a conceptual framework on evolved retail agglomerations in comparison to created retail agglomeration, represented by shopping streets and shopping malls, respectively. The findings allow a broader view of low-income consumption, offering insights so entrepreneurs and companies can direct their efforts to better capture value and improve the supply of products and services. Likewise, these findings will help public policy decision-makers to build and provide infrastructure for the preservation of shopping streets, maintaining this option for the consumer.

Brand loyalty among low-income consumers?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murilo Carrazedo Costa Filho ◽  
Roberto P.Q. Falcao ◽  
Paulo Cesar de Mendonça Motta
Keyword(s):  
Low Income ◽  
Brand Loyalty ◽  
Perceived Risk ◽  
Content Type ◽  
Five Factors ◽  
Wide Range ◽  
Holistic Understanding ◽  
Brand Consideration ◽  
Low Income Consumers ◽  
Depth Interviews

Purpose Low-income consumers (LICs) have gained more attention from marketers after Prahalad and Hart (2004) called attention to untapped opportunities among the world’s poorest. Once neglected and seen as price-driven, more recent research has depicted LICs as brand-conscious consumers who are willing to pay a premium for quality. However, because LICs must balance their tight budgets with aspirations for branded items, this perspective may be too optimistic. To address this issue, the purpose of this paper is to investigate brand consideration and loyalty among LICs across a wide range of products. Design/methodology/approach The authors used a qualitative-inductive approach to assess LICs’ brand considerations across ten fast-moving consumer goods. In-depth interviews with 20 Brazilian LICs were conducted. Findings The authors found that brand loyalty among LICs is both context- and category-dependent. Patterns of loyalty are influenced by five factors: perceived differentiation, perceived risk, contextual usage, proportion of the category expenditure to household income and hedonic vs functional consumption. It seems that the interplay of these factors ultimately shapes differently the attitudes and repeated patronage of brands within each category among LICs. Research limitations/implications Generalizability of findings is limited owing to the qualitative method used. Practical implications The authors provide practical insights to managers concerning key attributes that influence brand consideration and loyalty among LICs. Originality/value This paper adds to the yet limited knowledge on LICs and provides a deeper and more holistic understanding of the relation of LICs with brands.

Regulatory focus and construal level theory on low-income consumer indebtedness: Evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrícia de Oliveira Campos ◽  
Marconi Freitas da Costa
Keyword(s):  
Decision Making ◽  
Low Income ◽  
Regulatory Focus ◽  
Task Complexity ◽  
Emerging Market ◽  
Psychological Distance ◽  
Construal Level Theory ◽  
Construal Level ◽  
Content Type ◽  
Low Income Consumers

PurposeThis study aims to further analyse the decision-making process of low-income consumer from an emerging market by verifying the influence of regulatory focus and construal level theory on indebtedness.Design/methodology/approachAn experimental study was carried out with a design 2 (regulatory focus: promotion vs prevention) × 2 (psychological distance: high vs low) between subjects, with 140 low-income consumers.FindingsOur study points out that the propensity towards indebtedness of low-income consumer is higher in a distal psychological distance. We found that promotion and prevention groups have the same propensity to indebtedness. Moreover, we highlight that low-income consumers are prone to propensity to indebtedness due to taking decisions focused on the present with an abstract mindset.Social implicationsFinancial awareness advertisements should focus on providing more concrete strategies in order to reduce decision-making complexity and provide ways to reduce competing situations that could deplete self-regulation resources. Also, public policy should organize educational programs to increase the low-income consumer's ability to deal with personal finances and reduce this task complexity. Finally, educational financial programs should also incorporate psychology professionals to teach mindfulness techniques applied to financial planning.Originality/valueThis study is the first to consider regulatory focus and construal level to explain low-income indebtedness. This paper provides a deeper analysis of the low-income consumers' decision process. Also, it supports and guides future academic and decision-making efforts.

Assessing algorithms for selecting countries to market new products to low-income consumers

2013 ◽  
Vol 3 (4) ◽  
pp. 1-12
Author(s):  
Michael D Metzger ◽  
Arch G. Woodside ◽  
John C. Ickis
Keyword(s):  
Emerging Markets ◽  
New Product Development ◽  
Low Income ◽  
Food Packaging ◽  
New Products ◽  
Subject Area ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Decision Tools ◽  
Low Income Consumers

Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader ' s indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Building blocks of financial inclusion through customer experience value at financial touchpoints in Southern Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nkosinathi Sithole ◽  
Gillian Sullivan Mort ◽  
Clare D'Souza
Keyword(s):  
Southern Africa ◽  
Low Income ◽  
Financial Services ◽  
Building Blocks ◽  
Customer Experience ◽  
The Body ◽  
Financial Inclusion ◽  
Structured Interviews ◽  
Content Type ◽  
Low Income Consumers

PurposeThis paper aims to examine customer experience value orchestrated by non-banks' financial touchpoints to understand how they enhance the financial inclusion of low-income consumers.Design/methodology/approachTwo independent but related studies were conducted using qualitative comparative analyses (QCA) research design with semi-structured interviews to compare and contrast customer experience value at two rural locations in Southern Africa. The interview transcripts were analysed using ATLAS.ti, which is a powerful operating system for analysing qualitative data.FindingsThe results indicate that non-banks in the two countries design financial services that include functional, economic, humanic, social and mechanic customer experience value dimensions.Research limitations/implicationsThe data for this study was collected from financial services customers of retailers and mobile phone network operators in only one research setting in each country. Further research could extend the comparative context for qualitative studies across similar markets. Other limitations are discussed in the paper.Originality/valueThis paper contributes to the body of knowledge by highlighting the salient and germane dimensions and components found to be important in understanding financial inclusion using customer experience value. To the best of the authors’ knowledge, this is the first study that incorporates customer experience value dimensions in understanding the financial inclusion of low-income consumers at the base of the social and economic pyramid in emerging markets.

Determining value in a complex service setting

2015 ◽  
Vol 25 (5) ◽  
pp. 568-591 ◽  
Author(s):  
Carolin Plewa ◽  
Jillian C. Sweeney ◽  
David Michayluk
Keyword(s):  
Design Methodology ◽  
Conceptual Development ◽  
Perceived Value ◽  
Content Type ◽  
Customer Perceived Value ◽  
Value Perceptions ◽  
Service Setting ◽  
Depth Interviews ◽  
Is Value

Purpose – The purpose of this paper is to capture the richness of customer perceived value by determining its benefit and cost dimensions in a complex service setting. Perceived value is argued as equivalent to value-in-use; that is value that emerges for or is created by the customer. Design/methodology/approach – A series of in-depth interviews was conducted with a diverse group of clients of financial planning services as well as with financial planners in Australia. Findings – Six benefit and four cost dimensions of complex service are identified, namely expertise, education, motivation, support, relationship and convenience benefits, as well as monetary, time and effort, emotional and lifestyle costs. The results also indicate proposed outcomes of these dimensions, along with relevant moderators, leading to a broad conceptual framework for future empirical validation. Originality/value – This study contributes to the sparse conceptual development of value perceptions, or value-in-use, in a complex service context. In particular, the authors identify the benefit and cost dimensions, specifically addressing aspects of value that are linked to the long-term relationship between provider and customer. The authors also develop a conceptual model of value, including both outcomes and situational moderators of the various value dimensions. Finally, the conceptualization of perceived value is discussed with respect to the value co-creation literature.

Relying on frugality as a cornerstone of scalability

2020 ◽  
Vol 36 (9) ◽  
pp. 17-18
Keyword(s):  
Low Income ◽  
Design Methodology ◽  
Review Paper ◽  
Innovation Strategy ◽  
Frugal Innovation ◽  
Content Type ◽  
Developed Markets ◽  
Pertinent Information ◽  
Low Income Consumers ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The review is based on “In search of the frugal innovation strategy” by Santos et al. (2020), published in “Review of International Business and Strategy.” This literature review paper concentrates on explaining that pursuing frugal innovation involves developing products and services, in a tightly resource-constrained environment, that are both affordable and sufficiently high quality to cater for low income consumers. Pursuing such a frugal innovation strategy is originated in emerging markets but can also translate across to developed markets and their value-seeking consumers. The study's results reveal that frugal innovation is most effective for executing innovation in products and processes. Original/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Exploring the growing link of ethnic entrepreneurship, markets, and Pentecostalism in London (UK)

2015 ◽  
Vol 10 (2) ◽  
pp. 150-169 ◽  
Author(s):  
Ayantunji Gbadamosi
Keyword(s):  
Religious Orientation ◽  
Content Type ◽  
Marketing Environment ◽  
Ethnic Entrepreneurship ◽  
Competitive Edge ◽  
African Caribbean ◽  
The Uk ◽  
Entrepreneurial Activities ◽  
Creativity And Innovation ◽  
Depth Interviews

Purpose – This paper aims to unravel how membership of Pentecostal fellowships aids the entrepreneurial activities of African-Caribbean (AC) members. While many issues about the entrepreneurial engagements of AC people have been discussed in the literature, there are far less studies documented about the link of these activities to faith, especially in the context of Pentecostalism. Design/methodology/approach – Adopting the interpretive research paradigm, a total of 25 tape-recorded, semi-structured, in-depth interviews were conducted with AC entrepreneurs who are members of Pentecostal faith-based organisations in London, and pastors in this same sphere. Sixteen of the respondents are entrepreneurs running and managing their businesses, seven are pastors and the remaining two fall in both categories, as they are both entrepreneurs and still serving as pastors in churches in London. Rather than merely serving as gatekeepers for information, the pastors are active participants/respondents in the study. Findings – The paper highlights the challenges confronting the AC ethnic entrepreneurs, but also suggests that those in the Pentecostal faith are motivated and emboldened by the shared values in this religion to navigate the volatile marketing environment. It unveils participants’ faith in God as their key business survival strategy. It also shows the unwavering confidence of the respondents that this religious stance results in outstanding business successes like increase in sales and profits, competitive edge, divine creativity and innovation, opportunity recognition, networks, institutional support and other factors that underpin entrepreneurship. Originality/value – This study unpacks the thickly blurred link between Pentecostalism as a thriving religious orientation among the AC ethnic group in the UK and their entrepreneurial engagements.

The “dark side” of food banks? Exploring emotional responses of food bank receivers in the Netherlands

2014 ◽  
Vol 116 (9) ◽  
pp. 1506-1520 ◽  
Author(s):  
Hilje van der Horst ◽  
Stefano Pascucci ◽  
Wilma Bol
Keyword(s):  
The Netherlands ◽  
Low Income ◽  
Charitable Giving ◽  
Self Esteem ◽  
Food Assistance ◽  
Dark Side ◽  
Food Banks ◽  
Food Bank ◽  
Content Type ◽  
Depth Interviews

Purpose – The purpose of this paper is to address how food, social status as well as the interactions at the food bank induce emotions in receivers, such as shame, gratitude and anger. Since early 2000s a steadily growing number of low-income and/or over-indebted households in the Netherlands alleviate their situation with food donations from local food banks. Such food banks collect from companies edible food that would otherwise have gone to waste. The growing demand for food assistance indicates it is a welcome contribution to the groceries in many households. However, receiving food assistance as well as eating the products forces the receivers to set aside embodied dispositions towards food and norms about how to obtain food. Furthermore, it places them in interactions of charitable giving that may be harmful to the self-esteem of receivers. Design/methodology/approach – The paper is based on a qualitative study at a food bank in the Netherlands, consisting among others of in-depth interviews with 17 receivers of food assistance, observations and several interviews with volunteers. Findings – Of all emotions that were expressed during the interviews, shame appeared as the most prominent. Particularly issues of shame emerged in relation to all three food-bank-related experiences: the content of the crate, the interaction with volunteers and lastly the understanding of one's positioning in a social hierarchy. While shame can be a very private emotion – even talking about being ashamed can be shameful – it is also an utterly social emotion. Originality/value – This research is among the few ones explicitly addressing emotional emotions related to receivers in food bank.

scholarly journals Value-in-acquisition: an institutional view

2019 ◽  
Vol 53 (11) ◽  
pp. 2373-2396
Author(s):  
Kerry Chipp ◽  
E. Patricia Williams ◽  
Adam Lindgreen
Keyword(s):  
Low Income ◽  
Social Roles ◽  
Qualitative Interviews ◽  
Exchange Process ◽  
Institutional Arrangement ◽  
Content Type ◽  
Acquisition Process ◽  
Service Value ◽  
Acquisition Processes ◽  
Low Income Consumers

Purpose By combining consumer culture theory and service dominant logic, this study proposes that value might be understood as value-in-acquisition, such that value outcomes result from the acquisition process in which broader social forces shape the exchange process. Design/methodology/approach This study addresses low-income consumers, for whom societal arrangements strongly determine service interactions. Qualitative interviews reveal service value processes and outcomes for low-income consumers during acquisition processes. Findings For low-income consumers, inclusion, status, resource access and emotional relief represent key value outcomes. Important value processes shape those value outcomes, reflecting broader societal arrangements at macro, meso and micro levels. Marketing constitutes an institutional arrangement that establishes an empowered “consumer” role. Value processes are hindered if consumers sense that their agency in this role is diminished, because marketing interactions give precedence to other social roles. Research limitations/implications Marketing should be studied as an institutional arrangement that shapes value creation processes during acquisition. Micro-level value processes have important implications for service quality and service value. Value outcomes thus might be designed in the acquisition process, not just for the offering. Practical implications The acquisition process for any good or service should be designed with its own value proposition, separate to the core product or service. Careful design of value processes during acquisition could mitigate conflict between social roles and those of consumption. Originality/value There is value in the acquisition process, independent of the value embedded in the goods and services.

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