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1 – 3 of 3Murilo Carrazedo Costa Filho, Roberto P.Q. Falcao and Paulo Cesar de Mendonça Motta
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…
Abstract
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.
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Roberto Pessoa de Queiroz Falcão, Murilo Carrazedo Marques da Costa Filho and Jorge Brantes Ferreira
The purpose of this paper is to segment travelers by their predispositions regarding the adoption of smartphones to purchase travel-related services, which is crucial for…
Abstract
Purpose
The purpose of this paper is to segment travelers by their predispositions regarding the adoption of smartphones to purchase travel-related services, which is crucial for developing specific marketing strategies for each group of tourists.
Design/methodology/approach
A survey was conducted with 1,014 Brazilian travelers assessing their smartphone usage frequency and predispositions regarding travel purchases. The authors selected three variables related to the users’ acceptance of technology (perceived usefulness, ease of use and intentions to use smartphones for tourism purchases) and m-commerce perceptions of risk. Segmentation was conducted employing cluster analysis.
Findings
The authors identified three significantly different clusters of travel consumers: “Risk Ignorers,” “Cautious Users” and “Conservatives.” Risk perceptions appeared to be the main discriminating variable, followed by perceptions that smartphone apps are useful and free of effort.
Research limitations/implications
The non-probabilistic snowball sampling technique of Brazilian travelers may limit the generalization of the findings. Also, the use of intentions as one of our clustering variables instead of actual purchase behavior might bring limitations.
Practical implications
Segmentation enables the development of specific marketing strategies for each group, encompassing different risk profiles. Cautious travelers demand the development of safe and trustworthy m-commerce environments, as well as reassuring communication approach to reduce their perceptions of risk in performing mobile-mediated transactions. Conservatives demand marketers to build simpler and more straightforward apps to entice them.
Originality/value
The study reveals more fine-grained nuances to the role of mobile technology and its impact on travelers, unveiling important differences across travelers’ predispositions toward smartphone adoption that is distinctively associated with usage patterns regarding their risk profiles.
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