Abstract
Purpose – To understand different perceptions of retail by consumers at the bottom of the social pyramid, to thus understand specific market niches that are a part of the low income segment. Design/methodology/approach – We carried out a survey including 560 cases. We also used cluster and discriminant analysis. Findings – We observed the formation of four groups of customers, which showed significant distinctions in the characteristics considered for choosing a store. Originality/value – The clusters represents a discriminant effort to highlight the differences between consumers considered in the same group of analysis, the bottom of the pyramid. Managerially, retail managers can assess their retail mix, and then drive more focused strategies and operations.
Highlights
Low-income consumers at the bottom of the social pyramid have enormous consumption potential thanks to the large part of the population facing the possibility of gradual economic and social inclusion (Prahalad, 2010)
This study aims to identify the subgroups of consumers at the bottom of the Brazilian pyramid according to their expectations related to retail as a whole and clarify how such a compound is related to the average spending of the purchases made
To meet the objective of the study, a quantitative-descriptive research was conducted through a survey enabled clustering the consumers in groups, considering their perceptions the dominant characteristics of the retail mix
Summary
Low-income consumers at the bottom of the social pyramid have enormous consumption potential thanks to the large part of the population facing the possibility of gradual economic and social inclusion (Prahalad, 2010). Consumers at the bottom of the pyramid have begun to be recognized as individuals who are less dependent on society and governments, with their own expectations and consumption patterns, and have become an opportunity for businesses to expand their markets (Prahalad & Hammond, 2002; Prahalad & Hart, 2002; Prahalad, 2010) These consumers have come to be understood in a different manner from the traditional economic and marketing point of view, raising the prospect that serving this class leads to a more inclusive practice of capitalism (Barros & Rocha, 2009; Hemais et al, 2014). According to Prahalad (2010), the inclusion of these consumers in the consumer market causes the creation of new ways of offering and supplying the products created, since these consumers have characteristics and behaviors that can determine different choice patterns and purchasing decisions compared to wealthier consumers
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