This study explored the use of location-based marketing to minimize the effect of poverty penalty often experienced by the low-income consumers. Poverty penalty is a phenomenon that explains why the low-income consumer pay relatively more than middle- an upper-income consumers. The low-income consumer is normally situated in areas that are far from retailers, thus has to incur a considerable amount on transport costs, which in effect leads to an increased cost to acquire goods and services, and means that this consumer is restricted by location. Location-based marketing is the use of location to broadcast marketing information to the consumer relevant to their location and preferences. Low-income consumers can use this location-specific information to optimize their location by taking advantage of the goods and services around them to save on further travel costs. The study was a quantitative survey that asked low-income consumers about their perceptions on what location-based marketing could offer them. The key findings of the study were that consumers value personalisation of the content, access to information would lead to access to more goods and services, and finally that access to information optimise the location of the consumer and lead to reduced transport costs. The study contributed academically by establishing that for the low-income consumer, mobile marketing needs to be focused at optimising the current location, and not transacting anywhere and anytime as the existing literature suggests. / Dissertation (MBA)--University of Pretoria, 2013. / lmgibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

A dearth of information was found to guide food product formulation for low-income consumers. The political change in South Africa and neighbouring countries and the accompanying influx to economic centres, resulted in the unprecedented growth of urbanised informal settlements. These communities, accommodating the poorest of the poor and experiencing a high prevalence of nutritional devastation, indicated a merited project opportunity. The purpose of the study was to develop a food product formulation framework for low-income consumers living in urbanised informal settlements in South Africa. The unique contribution of this approach is based on the depiction of the food product attribute (concept) needs perceived as most important by these respondents during purchasing choice of their staple food, maize meal. The study comprised five sub-objectives, executed in three phases. The concepts required by low-income consumers were identified, selected and organised through a baseline survey in an informal settlement (n = 60). Satiety value, affordability, packaging size, value for money and taste were identified, in sequence, as the most important design parameters for the framework. The food industry (n = 17) indicated affordability, nutrient content, taste and product quality as the food product attributes of most importance during food product development, indicating a discrepancy. Phase 2 of this study consisted of two parallel approaches, comprising an extended survey to validate the suggested design parameters in the target market against an established product maize meal) (quantitative approach) and the description of the identified concepts to reveal embedded elements to clarify terminology use (qualitative approach). Three informal (n = 401) and one formal (n = 101) settlement were involved. All groups agreed regarding the need for satiety value, product acceptability, convenience and the influence of household factors. Consumers from the informal settlements identified satiety value and affordability as of highest importance, followed by taste. Appearance, product quality, texture, product safety/ shelf life, brand loyalty and nutrient content were indicated as less important, prioritising concepts linked to survival during severely constrained economic conditions. Consumers living in the urbanised formal settlement, identified taste as the key concept. Focus group discussions revealed no differences in the meaning ascribed to terminology, although perceptions reflected the variance in income level. The identified concept elements revealed the interlinked nature of satiety value and affordability. Differences in the understanding of concepts between these consumers and literature, were revealed. Concepts to consider when developing food products for low-income consumers were identified as satiety value, affordability, taste, product acceptability, convenience/ ease of preparation, household influence, appearance, value for money, product quality, packaging size, texture, product safety/ shelf life, brand loyalty and nutrient content, in the stated sequence. A framework was proposed. However, from a humanitarian point of view, nutrient content cannot be ignored by the food industry. As the key to market success lies in the potential of a product to find solutions relating to its physical nature, as well as in the use and advantages of the product, the results of this research project have great application value. / Thesis (PhD)--University of Pretoria, 2010. / Consumer Science / unrestricted

The challenges that face MNPCs in making healthcare more affordable is a topic that is being increasingly researched. These companies face challenges such as pressure from governments around the world to lower their prices, stagnant growth in developed markets and the failing blockbuster business model. Turning to new markets, such as emerging markets, for growth will necessitate innovations in their business models. The aim of this research was to understand what business models will work in low-income patient markets, specifically in the South African base of the pyramid context. The investigation of four MNPCs through a case study methodology, allowed the exploration of their current business models and ambidexterity level. Two of the four MNPCs exhibited a purely exploitative business model and as such had very little penetration into the BOP segment. One of the four MNPCs demonstrated a few characteristics of ambidexterity, but applied mainly an exploitative model and had limited access to the BOP segment. One of the four companies implemented all of the characteristics of business models that are successful in entering BOP markets as well as a high level of correlation to the characteristics of ambidexterity. The result of this MNPC described was a successful entrance in the BOP segment. The review of the literature and the findings of this research show that MNPCs can adopt profitable business models to enter low-income markets that not only serve consumers at the base of the pyramid but also provide sustained business benefits to the MNPCs. The research study successfully achieved the research objectives and provides insights to stakeholders as to which strategies are effective when entering a low-income patient market and what are the elements that are missing from business models that are not successful. The research also highlighted institutional voids and barriers that are unique to the South African state health care system. / Dissertation (MBA)--University of Pretoria, 2014. / zkgibs2015 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

This research compares partners required to be competitive in the low income market to the partner network of the more traditional upper income market in South Africa. The research examines the non-traditional partnerships engaged by firms which include local communities, government and NGO’s. It further looks at the broader alliances formed by firms competing in the low income market compared to the traditional market and lastly investigates institutional voids and their effect in the respective markets. The research is exploratory in nature and considers the perceptions of managers in eight companies through the use of semi-structured interviews. 14 managers were interviewed across the 6 industries selected. Insights were gained through the use of a semi structured interview guide. The research indicates that non-traditional partnerships do take place in both the low income and traditional markets but for different reasons, with the low income market focusing on these partnerships to access the consumer. It was further apparent from the interviews that those competing in the low income market tend to partner more with other firms operating in the market but in different industries, whilst the traditional market managers tend to partner more with smaller business set up to fulfil the needs of the larger firm. The research further indicates that institutional voids may present an area to develop first mover advantage by locking down successful partnerships before competitors do. / Dissertation (MBA)--University of Pretoria, 2014. / zkgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

The purpose of this study was to explore the various forms of brand loyalty, to understand the drivers of brand loyalty and disloyalty, and to determine within which product categories consumers were brand loyal or disloyal at the base of the pyramid (BoP) in South Africa. The study was exploratory, therefore a qualitative research design was adopted where individual face-to-face interviews were conducted with 18 low income consumers in Living Standard Measure (LSM) 2 to 4, residing in urban Gauteng. The findings show that low income consumers are increasingly brand conscious with proven access to media and therefore marketing messages. Primary brand loyalty drivers at the BoP include perceived quality, durability, brand experience, brand trust and affordability, while in their absence consumers are disloyal. Affordability is important to these consumers, but they also value these other aspects of brands, making them discerning and value driven. Consumers are loyal to those brands that are relevant to them at an acceptable price value proposition. Consumers spend more of their money on consumables than durables and branded services. Brand loyalty is minimal across product categories; consumers seek variety and are prone to sales promotions, making them multiple brand users. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

The uptake of micro insurance products by low income consumers has been low, especially in the short term insurance industry. Many studies have identified a number of challenges that insurers are faced with when trying to penetrate this market. This study explores this problem from a different angle, where it investigates whether low income consumers already apply risk mitigating strategies to their circumstances, precluding them from purchasing short term micro insurance products. A qualitative design was followed, specifically to understand what the target population understood of insurance and whether they had their own existing methods of how to respond to risk events regarding their assets. 20 interviews were conducted with 10 from two townships namely Thembisa and Alexandra in the Guateng province of South Africa. The research found that risk mitigating behaviour did indeed exist amongst low income consumers; however this behaviour was driven by a prioritisation process. This process was developed considering low income consumers’ dilemmas of having limited resources but needing to mitigate the effect of what they would term as the most significant risk in their household. These risks would differ per household because of the different criteria that households would use to determine what is important, and this will lead to mitigating solutions that these consumers will engage in, thus resulting risk mitigating behaviour. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

After over 25 years of decline, the global poverty rate has started to increase driven by the COVID-19 pandemic, taking millions back into poverty, most of them live in Sub-Saharan Africa. Low-income consumers are underserved and do not have the means to pay for or access to goods or services which are required for a minimum standard of living. These consumers struggle to find essential goods, the products do not always meet their needs or are too expensive for them to afford and the products' benefits are not easily understood. Yet the spending power and demand from consumers at the bottom of the economic pyramid in emerging markets and developing countries are motivating for global consumer goods companies. Not only does the opportunity presents financial benefit but is a social obligation to democratise new product innovations across markets. The 4As Framework (Affordability, Acceptability, Availability and Awareness) encompass factors which help manufacturers to better reach and serve low-income consumers. This framework is applied in this research to understand products meet their needs of low-income consumer across these four factors; and how designers employ human centred design to design products for low-income consumers against these factors. Human Centred Design has been employed to develop solutions to complex problems with great empathy to users and stakeholders for many years but has been gaining popularity with business and social ventures since the early 2000s. By interviewing consumers and designers, this study delved into understanding (1) the motivations and challenges of designing products for low income consumers, (2) how human centred design was being employed in the design of consumer goods for this group against the 4As framework and (3) how products currently meet the needs of low-income consumers, against the 4As framework. It was found that designers were consistently motivated by designing products for this consumer group which they believed served them. However, the constant evolution of needs, and needing to design for an affordable price were challenges. It was also found that some human centred design practices were prominent but there was more consistency needed in application, particularly when dealing with acceptability, affordability and awareness.

Call number: LD2668 .T4 1965 B26 / Master of Science

Thesis (Ph. D.)--University of California, San Diego, 2003. / Vita. Includes bibliographical references.

Esta dissertaÃÃo analisa o comportamento do consumidor idoso de baixa renda em seus hÃbitos de lazer a partir da anÃlise de estudos realizados pelo Instituto Brasileiro de Geografia e EstatÃstica - IBGE e pelo LaboratÃrio de Estudo da Pobreza da UFC - LEP. O exame parte de uma pesquisa bibliogrÃfica dos temas em questÃo, perpassando por uma pesquisa realizada com 100 pessoas idosas de baixa renda - residentes da zona metropolitana de Fortaleza/CE - para consolidaÃÃo da pesquisa teÃrica. A anÃlise dos dados primÃrios e secundÃrios extraÃdos destas pesquisas serviu para estabelecer uma reflexÃo entre os conceitos definidos cientificamente e o arquÃtipo de idoso compreendido pelo senso comum das pessoas. A principal suposiÃÃo deste trabalho sustenta-se na idÃia de que o idoso de modo geral possui uma forte necessidade de socializaÃÃo, influenciando fortemente seu comportamento de consumo. Quando visto na perspectiva do poder de compra â mais precisamente o de baixa renda â esta necessidade de socializaÃÃo os estimulando a se reunirem em grupos para realizarem suas atividades de lazer. De outro modo, o trabalho tambÃm se propÃe a produzir um discurso de valorizaÃÃo para este segmento e revelar algumas oportunidades mercadolÃgicas a serem exploradas pelas empresas que investem em sustentabilidade e responsabilidade social. / This dissertation analyzes the elderly consumer behavior of low-income their leisure habits from the analysis of studies conducted by the Brazilian Institute of Geography and Statistics - IBGE and the Laboratory Study of Poverty UFC - LEP. O take part of a literature review of the issues involved, passing by a survey of 100 elderly low-income people - residents of the metropolitan area Fortaleza / CE - to the theoretical research consolidation. The analysis of the primary data, and side extracted from these surveys served to establish a reflection among the concepts defined scientifically and the archetype of old understood by common sense of people. The main assumption of this work is based on the idea that the old mode general has a strong need for socialization, strongly influencing their consumer behavior. When viewed in the purchasing power perspective - more precisely the low-income - this need for socialization encouraging them to meet in groups to perform their leisure activities. Otherwise, the work also intends to produce a valuation of speech for this segment and reveal some market opportunities to be exploited by companies that invest in sustainability and social responsibility.