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An investigation of low-income consumer-buying behaviour in the personal-care industry in South AfricaStarkey, Simone January 2017 (has links)
South African companies are said to be mining the so-called "Black Diamond", the emerging middle-class segment that is driving economic growth within the country (Mahajan, 2009:9). The focus on the emerging Middle Class in South Africa (SA) has left a knowledge gap on Low-Income consumers - even though they are still the largest consumer group in SA (Connecting with Survivors, 2014). The Unilever "Connecting with Survivors Report" (2014) highlights the fact that 70% of the SA Market earn less than R6000 per month, while together they have a spending power of R300 Billion per annum. According to Martin (2012:71), 5.8% of Low-Income Consumer Households (HH) spending is prioritised for the purchase of personal care products, while 64.2% of their HH income is prioritised for food and housing expenses. Given the trivial proportion allocated to personal care products, this research has been guided by the problem statement that Low-Income consumers are forced to make trade-offs, when purchasing personal care products, which fall outside their realm of affordability. The primary objective of this study was to investigate Low-Income consumers' buying behaviour in the Personal Care Industry in South Africa. The Theory of Buyer Behaviour was used as a theoretical framework to assist in the understanding of Low-Income consumer behaviour in the Personal Care industry. The phenomenological research paradigm was used in this study, utilising interviews to collect the data from respondents in the Western Cape Province. Inductive reasoning was practised to draw a conclusion on the investigation of Low-Income consumer buying behaviour in the personal care industry in South Africa. The findings from the study indicate that Low-Income consumers do indeed make trade-offs when personal care products fall outside their realm of affordability. The extent to which they do so varies, based on necessity. This research stands to contribute to the body of knowledge by narrowing the knowledge gap on the Low-Income Consumer market in South Africa with the focus on the Personal Care Industry, thereby allowing marketers to develop and implement effective marketing strategies.
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Could Pricing Strategies in Different Regions Create a Sense of Division? : A Qualitative Study in the Pursuit of Scrutinizing European Individuals' Views on Penetration Pricing, Price Skimming, and Prestige Pricing Pertaining to a New Sugar-Sweetened BeverageTóth, Zoltán János January 2023 (has links)
Background: To many customers, prices are mundane; however, marketers engage in casuistry to purport their product as superior to others by enticing prices. Prices are the most susceptible variable in the Marketing Mix. The thesis posits a discussion on whether marketers should change pricing techniques depending on if they want to launch a (new) sugar-sweetened beverage in Eastern or Western Europe. Not a plethora of research has been written on this topic, which is why this thesis agog to find out which pricing strategies or strategy they should use when they enter Eastern or/and Western Europe with (new) sugar-sweetened beverages. The three quintessence of price-setting methods this paper exerts and later reflects painstakingly in the analysis chapter are penetration pricing, price skimming, and prestige pricing. Sugar-sweetened beverages were chosen as a central topic of interviews as the great majority of the population consumes sugar- sweetened beverages. All participants could form their opinion on the issue by dint of this aspect. Method: Qualitative method was chosen for the thesis. The qualitative method opens more room for insights and in-depth discussions with the participants. Seven individuals from Eastern and Western Europe were enquired to answer the questions can be found in the appendix. Results: The results reflect that it is worth ruminating to marketers to use different pricing strategies in Eastern and Western Europe based on the answers gathered. Besides, the interviews also shed light on how complexly customers view the price and the differences within Europe based on regions. Despite some differences, many similarities were also found in the individuals' perceptions. Lastly, publishing the result, the thesis also aims to draw on how one individual's perceptions change with time and the circumstances that influence it. Conclusions: From the findings, it might be possible to extrapolate which pricing strategy marketers should use to enter Eastern and Western Europe with a (new) sugar-sweetened beverage. The outcome of the interviews reflects that Eastern European individuals who were interviewed are dismissive of price skimming; meanwhile, the asked Western Europeans were dismissive about penetration pricing and prestige pricing in the context of sugar-sweetened beverages.
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