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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Gobinda Roy & Rajarshi Debnath & Partha Sarathi Mitra & Avinash K. Shrivastava, 2021. "Analytical study of low-income consumers’ purchase behaviour for developing marketing strategy," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(5), pages 895-909, October.
    • Handle: RePEc:spr:ijsaem:v:12:y:2021:i:5:d:10.1007_s13198-021-01143-6
    DOI: 10.1007/s13198-021-01143-6
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    References listed on IDEAS

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