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Article
Publication date: 29 December 2021

Patrícia de Oliveira Campos and Marconi Freitas da Costa

This 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…

Abstract

Purpose

This 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/approach

An 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.

Findings

Our 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 implications

Financial 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/value

This 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.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 23 October 2009

Ayantunji Gbadamosi

The purpose of this paper is to explore the attitudes and behaviour of low‐income women consumers in respect of low‐involvement grocery products.

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Abstract

Purpose

The 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/approach

One 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.

Findings

The 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/value

The 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.

Details

Marketing Intelligence & Planning, vol. 27 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 15 March 2019

Marco Tulio Zanini, Fernando Filardi, Fábio Villaça, Carmen Migueles and Aline Menezes Melo

The 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

Abstract

Purpose

The 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/approach

The 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.

Findings

The 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/value

The 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.

Details

Marketing Intelligence & Planning, vol. 37 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 3 April 2019

Kerry Chipp, E. Patricia Williams and Adam Lindgreen

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…

Abstract

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.

Details

European Journal of Marketing, vol. 53 no. 11
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 16 December 2021

Meheli Basu and Vanitha Swaminathan

This paper aims to understand how the Covid-19 pandemic has changed consumers’ perceptions of outdoor consumption categories, such as retail shopping, eating out, public…

Abstract

Purpose

This paper aims to understand how the Covid-19 pandemic has changed consumers’ perceptions of outdoor consumption categories, such as retail shopping, eating out, public events and travel and how these perceptions may impact businesses in these domains in the long term. Further, this research aims to understand demographic effects on outdoor consumption inhibition during the current pandemic and discuss how businesses can use these insights to rebrand their offerings and evolve after the pandemic.

Design/methodology/approach

Data collected by CivicScience, a survey-based consumer intelligence research platform, during April–July 2020 forms the basis of the preliminary analysis, where the chi-square test has been used to examine significant differences in consumer attitudes between different age groups, income groups and genders. Further, a social media analysis of conversations around outdoor consumption activities is undertaken to understand the rationale behind these demographics-based attitude differences.

Findings

Results lend varying degrees of support to the hypothesized consumer attitudes toward outdoor consumption activities during the Covid-19 pandemic. As the pandemic wore on, older (vs younger), female (vs male) consumers and lower (vs higher) income-group consumers had reportedly higher inhibition toward different outdoor activities. Older individuals were significantly less likely to shop, dine and attend public events than younger individuals. Lower-income consumers were significantly less likely to dine and travel than higher-income consumer consumers. Female consumers were significantly less likely to shop and travel than male consumers. Social media scan of conversations suggests that differences in perceived health and financial risks may have resulted in demographics-based differences in outdoor consumption activities.

Research limitations/implications

This study contributes to the literature by understanding demographic differences in consumer participation in outdoor activities. One limitation is that due to the time-sensitive nature of the pandemic research, further studies could not be conducted to understand the implications of other variables, beyond demographics that influence consumer behavior during a crisis. A future research direction is to understand how other psychological variables or traits, influence health and financial risk-taking behavior during a similar crisis.

Originality/value

The principal contribution of the present research is that it tests the risk-taking theory in the context of outdoor consumption during the Covid-19 pandemic. The present research has implications for businesses as they continue to evolve during and post Covid-19.

Article
Publication date: 22 September 2021

Charmant Sengabira Ndereyimana, Antonio K.W. Lau, Dana-Nicoleta Lascu and Ajay K. Manrai

Heeding the call for insights into the Sub-Saharan African international marketing context, this study aims to empirically examine consumers' desires and motivations for…

Abstract

Purpose

Heeding the call for insights into the Sub-Saharan African international marketing context, this study aims to empirically examine consumers' desires and motivations for buying counterfeit luxury goods. It examines influences on consumers' attitudes and purchase intentions related to counterfeit luxury goods in Rwanda, one of Sub-Saharan Africa's fastest-growing economies and growing luxury markets, developing and testing a model examining the effect of social context on personal attributes, providing evidence on economic and social-status factors as drivers for counterfeiting.

Design/methodology/approach

The data were collected using an online survey administered in Rwanda to consumers who had previously purchased luxury goods and counterfeits. A total of 312 valid responses were analyzed using structural equation modeling.

Findings

This study found that normative and informational influences had a positive effect on Rwandan consumers' attitude toward purchasing counterfeit luxury products, with attitude influencing purchase intentions directly and indirectly, through mediating variable desire for status or through value consciousness and desire for status.

Originality/value

The study contributes to academic research − one of the first empirical studies to examine consumers' desires and motivations for buying counterfeit luxury goods in Sub-Saharan Africa, providing insights that benefit scholars and practitioners seeking to better understand a market where more than half of the world's fastest economies are located.

Article
Publication date: 9 October 2018

Isabel Sánchez-García, Homero Rodríguez-Insuasti, José Martí-Parreño and Antonio Sánchez-Mena

The purpose of this paper is to analyse how the nutritional traffic light can reduce consumers’ intention to purchase unhealthy food by eliciting negative emotions (i.e…

Abstract

Purpose

The purpose of this paper is to analyse how the nutritional traffic light can reduce consumers’ intention to purchase unhealthy food by eliciting negative emotions (i.e. fear and guilt). The work also examines the moderating role of income in the above-mentioned relationships.

Design/methodology/approach

The empirical study was conducted in Ecuador. In an initial phase, exploratory research was carried out with two focus groups. Then a quasi-experiment was conducted with 330 participants following a 3×2 design, in which the nutritional traffic light for a dairy product (green, yellow, red) and the variable income (high and low income) were manipulated.

Findings

Traffic light colours (red, yellow and green) significantly influence consumers’ levels of fear and guilt as well as their intention to purchase. Income has also been found to have a moderating effect on the above relationships.

Practical implications

Further understanding of how nutritional labels influence consumer behaviour may have beneficial effects for public authorities attempting to improve citizens’ health and for society as a whole. It may also help firms that produce and market packaged foods to be aware of what type of foods new consumers want and adapt their offering in consequence.

Originality/value

The main contribution of this work is the analysis of the influence of the nutritional traffic light on emotions, namely, fear and guilt and how these emotions lead consumers to control their consumption of unhealthy foods. In addition, the present work proposes the moderating effect of income on the influence of colour on emotions and purchase intention.

Details

British Food Journal, vol. 121 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 4 September 2009

Kathy Hamilton

The purpose of this paper is to focus on low‐income families who are excluded from consumer culture. It explores their experiences and responses to material deprivation…

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Abstract

Purpose

The purpose of this paper is to focus on low‐income families who are excluded from consumer culture. It explores their experiences and responses to material deprivation, social deprivation and stigmatization.

Design/methodology/approach

Given the need for identification and calculation of exclusion thresholds to be supplemented by the voice of the excluded themselves, the study is based on qualitative analysis of 30 in‐depth interviews with low‐income families who encounter consumption constraints in the marketplace.

Findings

While the harsh realities of consumer exclusion cannot be denied, findings also present a more positive outlook as excluded consumers can achieve empowerment through employment of stigma management strategies, creative consumer coping and rejection of the stigmatizing regime.

Research limitations/implications

Research is based only on families with children under the age of 18; future research on older people and exclusion would prove a useful comparison.

Practical implications

The research raises a number of important policy issues in relation to social barriers to inclusion and the role of marketing in contributing to consumer exclusion.

Originality/value

Social policy studies surrounding social exclusion in terms of separation from mainstream society tend to focus on employment. This paper highlights that a social exclusion discourse can also provide a useful perspective to investigate exclusion in relation to consumerism.

Details

International Journal of Sociology and Social Policy, vol. 29 no. 9/10
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 1 September 2006

Guillermo D'Andrea, Larry J. Ring, Belen Lopez Aleman and Alejandro Stengel

The research objective was to understand what low‐income or emerging consumers living in the Latin American region understand as value when considering retail offerings.

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Abstract

Purpose

The research objective was to understand what low‐income or emerging consumers living in the Latin American region understand as value when considering retail offerings.

Design/methodology/approach

The methodology employed for primary research was qualitative. Six of the major markets were selected: Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico. Four focus groups were conducted in each country, resulting of a total of 208 participants. Target consumers were women from the emerging socio‐economic strata (SES). Secondly, this study relies upon a wide selection of secondary research and data sources: syndicated data sources such as A.C. Nielsen; local retail associations such as ABRAS in Brazil and ANTAD in Mexico; journal and popular press articles, SES profiles and previously published, relevant consumer studies.

Findings

Rather than emphasizing their limited income, emerging consumers as a group represent a sizable market for consumer products. But they should not be addressed as a single group: peculiarities among them underline the need for further segmentation, as in higher income segments. Their needs should be better defined as basic instead of just simple, and they do not just go for the lowest prices or second brands, as they have marked preferences that characterize them. This also reflects in their shopping habits, which partly explains the resilience of the traditional/small format retailers. The findings underline these segments' relevance for consumer products, their rational behaviour as they try to reconcile their preferences with their economic reality, and how this explains their distinct set of products and format requirements.

Practical implications

Marketers and retailers interested in catering to lower‐income segments will find clues to understanding the preferences, habits and needs of these segments that represent a significant portion of emerging markets.

Originality/value

Conclusions are presented here in the form of six common myths on emerging consumers that are contradicted by the findings. The relevance of this study comes not only from the significant size of this market but also from the possibility of marketers to emphasize the social contribution of business.

Details

International Journal of Retail & Distribution Management, vol. 34 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 26 February 2021

Flavio Gazzani

The purpose of this paper is to examine the introduction of three specific fiscal flexible mechanisms such as VAT surcharges/discounts, surcharges on import/manufacture of…

Abstract

Purpose

The purpose of this paper is to examine the introduction of three specific fiscal flexible mechanisms such as VAT surcharges/discounts, surcharges on import/manufacture of risk substances and maturity land tax to implement a new environmental fiscal reform that aims to reduce pollutions and emissions and avoid a regressive impact on low-income households using a feedback system.

Design/methodology/approach

The idea behind this article is to explore alternative environmental taxation system that aims to foster the transition to social-ecological sustainability without affect negatively poor and low-income households. It looks at the potential of environmental fiscal reform in terms of environmental benefits and present in the first section, evidence of some economic regressive impact caused by environmental fiscal reform in European Union from previous empirical studies. The article then introduces of a feedback mechanism to create a repayment system, such as rebate or cash transfer to compensate the regressive effect of the levy being added to the consumer price affecting low-income households in a very short period and push consumers to buy alternative eco-friendly products and services and to stimulate the market to offer them.

Findings

Lowering VAT rate for green products and services has the potential to increase demand for sustainable products and services and stimulate green jobs. Surcharges on import and manufacture of risk substances play a significant role to discourage the import of hazardous and pollutant substances by putting price on them and push the industrial sector towards a medium and long-term transition. Lowering taxes rates for buildings in inner cities encourage improvements and renovations, while raising tax on peri-urban areas discourage land speculation in areas with higher grade of biodiversity. This fiscal mechanism indirectly will reduce private and public transport emissions caused by urban sprawling and travel costs, reduce public infrastructure costs for connecting suburban area to the inner city and reduce the loss of urban-edge farmland area that are vital for smart urban growth.

Originality/value

The previous studies on the economic impact of the on environmental fiscal reform analysis, have focused on environmental aspects, economic growth and employment, but little on the regressive impact in short and medium terms on least wealthy sections of society. The proposed feedback mechanism aims to reduce distortion and inequalities caused by surcharges on existing taxation to low-income using monetary repayment measures, especially for products and services with elastic demand and no substitutes.

Details

International Journal of Social Economics, vol. 48 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

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