Analytical study of low-income consumers’ purchase behaviour for developing marketing strategy

Gobinda Roy (), Rajarshi Debnath (), Partha Sarathi Mitra () and Avinash K. Shrivastava ()
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Gobinda Roy: International Management Institute, Kolkata
Rajarshi Debnath: Brainware University
Partha Sarathi Mitra: Indian Institute of Technology Kharagpur
Avinash K. Shrivastava: International Management Institute, Kolkata

International Journal of System Assurance Engineering and Management, 2021, vol. 12, issue 5, No 3, 895-909

Abstract: Abstract The objective of this study is to assess the unmet needs of low-income consumers in India. The study also identifies the critical segments of low-income consumers and the important factors influencing their purchase decision. Finally, the study suggested suitable marketing strategies and marketing channels realize these segments' market potential. This study used a detailed structured interview with 102 low-income consumers from three regions in eastern India. The inductive content analysis was used to analyze the living condition and unmet needs of respondents. Factor analysis was conducted to determine the key constructs which influence customers’ behavior. Afterward, cluster analysis was used to identify the customer segments based on the underlying constructs. Finally, regression analysis was performed to examine the role of these constructs on purchase behavior. This study identified that the top 3 unmet needs were affordable education, better housing, and proper sanitation. The study found three important low-income customers' segments. The findings indicated that roadshow, flexible retail distribution channels, spot discounts, flexible credit facility from local retailers could enhance market potential. For the first time in India, this study developed insight into low-income customers' segmentation and related marketing strategies based on their living conditions, unmet need, and media preference.

Keywords: Low-income consumer; Purchase behavior; Word of mouth; The bottom of the pyramid; Marketing strategies; Consumer behaviour (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s13198-021-01143-6

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