Aspirations and entrepreneurial motivations of middle-class consumers in emerging markets: The case of India

The world is eyeing emerging markets where increasing numbers of consumers are entering into a new segment called the middle class. In emerging markets, this new segment of the population, as it moves up the economic ladder and seeks a better life, is considered the backbone of the economy. In this study, India is chosen because its economic progress, and changing cultural and demographics shifts, have set the stage for fundamental change of the country's middle class consumers, who are exhibiting new life-aspirations and entrepreneurial pursuits. While India's middle class continues to grow in size and importance, the existing research fails to fully address questions regarding their aspirations or life goals, entrepreneurial motivations, and demographic characteristics.This study attempts to fill the void by focusing on life goals, attitudes, and behaviors of the middle class consumers. Specifically, this study focuses on their aspirations and entrepreneurial motivations. The data collected from India reveals interesting insights about this important segment of India's people. Their demographic profiles suggest that they are well-educated, employed full-time and own assets. Furthermore, these middle class consumers express their confidence in attaining life aspirations such as financial success and personal growth. They tend to seek more opportunities for accomplishing life goals and display entrepreneurial motivations.     

Black middle class township shoppers: a shopper typology

Due to an increase in spending power amongst Black middle class, this growing segment has become a lucrative investment opportunity for many retailers in South Africa and most emerging markets. The purpose of this study is to segment township consumers according to their demographics, life stage, attitudes towards township shopping centres and Living Standards Measure, to understand shopping patterns of township consumers. A survey among Soweto Black middle class township respondents was conducted, and maximum likelihood factor analysis was used to identify attitudes towards township mall factors. The study revealed five factors namely entertainment, convenience, mall essence, staff and mall basics, which were all consistent with previous studies, with the exception of staff and mall basics, which was revealed in this study. A K-means cluster analysis was then used to segment township shoppers according to their attitudes. Four shopper segments were discovered, namely disappointed crusaders, upcoming loyals, social seekers and local loyals, which, despite investigating shopper attitudes in place of shopper behaviour alone, were similar to well-establish shopper typologies. Each segment was profiled according to demographic variables, attitudes as well as shopping patterns. Results, therefore, suggest that retailers and developers need to consider the unique needs and differences among Black middle class consumers when developing retail strategies as they reveal unique characteristics from typical shopper typologies. Given similarities in some emerging countries such as India, the findings of this study could be generalized to other middle class consumers from emerging markets. Similar shopper segments may arise, which may be consistent with previous shopper typology studies and new segments unique to emerging market middle class consumer may be unveiled.     

The new middle class in Turkey: A qualitative study in a dynamic economy

Although the middle class phenomenon is a widely investigated topic within a wide range of academic fields such as sociology, political sciences, anthropology, the current study concentrates on the middle class from a marketing perspective in the context of an important Emerging Market—Turkey. The definition we adapt in this study pertaining to the new middle class includes the households that have gained substantial disposable income and have experienced substantial lifestyle changes since the market liberalization reforms which commenced in the 1980s. We first present the importance of the middle class in emerging markets (especially the BRIC), the concept of middle class and the new middle class phenomenon. We then review the literature on the new middle class in Turkey and we explore whether secular and conservative subgroups of the new middle class differ in consumptional and attitudinal dimensions. Finally, we offer preliminary insights based on a qualitative study with 36 new middle class consumers in urban Turkey.     

Latin American retail: where modernity blends with tradition

Latin America's retail landscape has changed dramatically over the last 20 years. Attracted by deregulation and a sizable and growing market, modern retailers arrived looking for the next El Dorado. But signs of maturity appeared much before expected. Traditional retailers modernized their offer, while keeping their appeal to the emerging consumers. While chain retail has concentrated earlier than expected – and faster by the hand of crisis that are usual in emerging markets –, local chains have developed formats which add modernity to their understanding of their customers' base. By providing better access through convenience and credit to a broader range that even includes affordable design and quality, local chains are showing the way to the growing mass customers that form Latin America's new emerging middle class. And leveraging on this customer understanding, they are redefining concepts like convenience and crossing borders to grab the opportunity of the new emerging consumers. This article covers the evolution of retailing in Latin America over the past two decades, and provides insights on the segment that has brought the most significant growth: emerging consumers.     

Determining female consumers’ perceptions of garment fit,personal values and emotions when considering garment sizing

Female consumer's clothing shopping experience is primarily influenced by the appearance and fit of a garment that may be influenced by their personal values and is a process that involves emotions (Otieno et al., 2005; Lopatovska and Arapakis, 2011). Very little research focussing on the emotional impact and the role that personal values play in the female consumers’ shopping experience of ready‐to‐wear garment fit has been conducted in South Africa to date. The primary objective of this study was to explore the areas of concern of garment sizing to establish the emotional impact garment sizing and the resulting fit have on the female consumer purchasing behaviour when evaluated against their personal value system. This study applied the means‐end chain theory approach that allowed the researcher to explore female consumers’ personal values and the resulting emotions, through the application of the laddering interview techniques. Using open‐ended questions, this study aimed to discover the role of female consumers’ perceptions of garment sizing and the resulting emotional effects of garment fit on their purchasing decisions. The findings from the data collected from a purposeful and convenient sample of 62 female consumers from Gauteng, Johannesburg showed that the majority of the participants in this study failed to attain their personal values through the fit of a garment due to inconsistent, unreliable and inaccurate sizing, garment sizing which is unsuitable for various body shapes and the unavailability of certain clothing sizes in ready‐to‐wear garments. The study established that it is extremely important that South African clothing manufacturers and designers should strategize to satisfy the clothing need of the consumers who are currently having problems with garment sizing, by understanding female consumers’ garment sizing and fit needs through extended research of their target markets.     

Energy efficient household appliances in emerging markets: the influence of consumers' values and knowledge on their attitudes and purchase behaviour

This research integrates both motivational and cognitive approaches to better understand consumers' purchase behaviour of energy efficient household appliances in emerging markets. A unique values, knowledge, attitudes and behaviour model was developed, and then validated by obtaining data from Vietnamese consumers which yielded 682 usable responses. The findings confirm that consumers with stronger adherence to egoistic values are more likely to develop negative attitudes towards environmental protection, and they tend to formulate positive attitudes towards individual inconvenience associated with the purchase of energy efficient appliances. In contrast, biospheric and altruistic values facilitate consumers' purchase behaviour by enhancing their attitudes towards environmental protection, and by also reducing their attitudes in relation to individual inconvenience. Interestingly, consumers with high knowledge about energy efficient appliances tend to believe that the purchase of such products is important for environmental protection, and they are likely to negate the perception of inconvenience associated with the purchase. Attitudes were found to be significant determinants of both purchase intention and behaviour. The implications for policymakers, marketers and other stakeholders are discussed and future research directions presented.     

Personal values associated with political consumption: an exploratory study with university students in Brazil

Emerging countries have witnessed an incredible change in their societal structure in the last few years. In Brazil, the economical rise of the middle class brought more that 100 million people to the marketplace. This stimulus to consumerism (i.e. the social and economic order that encourages the purchase of goods and services in ever‐greater amounts) is accompanied by a notable growth in social movements and mobilization of citizen‐consumers, which indicates changes in the values of individuals and concerns with the direction the society is taking. Conscious and political consumption consequently arises as an alternative way. Especially among young consumers such issues are interesting to address from a theoretical and social point of view, as this new generation will shape the future of the nation. Therefore, the main objective of this study is to analyse socially conscious and political consumption in terms of consumers’ civic engagement as political citizens. We argue that the young political consumer is value‐oriented. The study relied on quantitative research, conducted through an internet‐based survey where 458 valid questionnaires were obtained. Schwartz's Portrait Values Questionnaire was used to measure personal values of the interviewees. Conscious and political consumption were measured through eight questions addressing alter‐ and anti‐consumption actions. The results indicated significant differences among the personal values of the university students that were classified as political consumers. Universalism and benevolence stood out among the core values of this group, with prominence of self‐transcendence, appreciation for equality and concerns for the well‐being of others. However, a gap was observed between the discourse and action of interviewees, once only one‐third of the sample undertook some form of political consumption. The conclusion was that most of the university students interviewed show the will to change society with individual actions, but demonstrate very little political commitment, and currently do not act politically in their purchases.     

Covered in Gold: Examining gold consumption by middle class consumers in emerging markets

As wealth and status rise for middle class (MC) consumers in emerging markets (EMs), they increasingly acquire gold for both consumption and investment. The authors delineate a conceptual map for gold consumption drawing insights from the context of MC in EMs. Perceived benefits of gold and disposable income directly determine the attractiveness and availability of gold for individual consumers. Cultural, institutional and economic factors account for country variations in gold consumption. Based on theoretical considerations and empirical evidence, we contend that gold consumption and disposable income have a curvilinear relationship: as EMs mature and MC consumers’ shopping baskets become more diverse and sophisticated, their gold consumption decreases and eventually stabilizes.     

Trust and the don't‐want‐to‐complain bias in peer‐to‐peer platform markets

This paper addresses peer‐to‐peer (P2P) digital platform markets, often associated with the “sharing economy” or the “collaborative economy”. Such digital platforms, facilitating new purchasing channels for consumers by matching P2P supply and demand, can be considered new market places challenging the conventional markets. How are P2P platform markets evaluated by the consumers? Based on a comprehensive survey‐data material, five different P2P service markets are considered by peer buyers and the results compared to consumers’ evaluations from similar conventional service markets according to trust, comparability and consumers’ satisfaction with the transactions. Comparability seems to be one advantage for the platform markets, while trust could become a problem. Conditions for trust in P2P platform markets is particularly interesting to study because contrary to conventional markets P2P transactions cannot rely on governmental laws, regulations and security net. This trust problem has been solved by a trust‐generating rate and review system. Our data material, however, distinguishes a mechanism that we have coined as the don't‐want‐to‐complain bias. More precisely, people do not like to complain, hence buyers of P2P services often hesitate to give negative ratings when they are discontent with a service or a supplier. Therefore, positive ratings become overestimated. If consumers recognize this bias, ratings and reviews will lose credibility and no longer be considered trustworthy. Eventually, this may threaten the well‐functioning of P2P markets.     

How western marketers respond to the new middle class in emerging market cities: The case of Italian fashion marketers

This paper deals with Italian Fashion Marketers (IFMs) expanding internationally through the opening of retail stores. Its main contributions are twofold. Firstly, an explanation is proposed for the reasons that IFMs decide to go international. In particular, it appears they are driven by the search for new customers, specifically among the middle class in emerging markets, where they have the advantage of being able to capitalize on brand equity, such as the Italian origin of their offerings. Secondly, the paper reveals some discernible patterns in new retail store internationalization, pointing out trends and choices in terms of the specific international markets targeted. In this regard, the main countries and cities where IFMs establish and cultivate a retail presence are identified, and comparisons made between emerging vs. developed countries as target markets.Some major implications of the findings are then discussed. In particular, the paper proposes an analysis that aims to contribute to filling a significant theoretical gap in the literature – the rising role of the middle class in urban areas and the potential response of western companies. Some managerial implications for companies engaged in expansion abroad are moreover addressed and six formal research propositions advanced.     

Social stratification and mobility among Chinese middle class households: An empirical investigation

Middle class (MC) consumers’ demand for a better quality of life continues to drive economic growth in emerging markets (EMs). Given their importance for the dynamically transforming economy in EMs, the present study examines the extent to which consumption patterns are associated with social stratification and mobility among China's MC consumers. Building on the extant literature that links material and culture consumption to social stratification, we construct a typology of MC households in contemporary China, identifying the factors by which these newly emerging MC households vary or are similar in their consumption behavior. We find that, of the three widely recognized stratifying dimensions (income, education, and occupation), educational attainment is the strongest indicator explaining the variance in culture consumption among the MC households, while occupation plays a relatively weak role in explaining their consumption patterns. Among the alternative pathways into the social class position of MC, our findings suggest that merely becoming wealthy is negatively related to culture consumption of these new MC households while becoming MC defined by educational attainment or belonging to the core middle class (whose status is achieved on all of the three stratifying dimensions) has a profound effect on both material and culture consumption. The findings support the conclusion that social stratification and mobility are of importance for China's MC consumers in shaping and maintaining their lifestyles and consumption patterns.     

Consumer values,the theory of planned behaviour and online grocery shopping

Taking a hierarchical value‐attitude‐behaviour approach, this study empirically tests relations of consumer personal values, attitude, social norm, perceived behavioural control (PBC) and willingness to buy groceries online. The study distinguishes three groups of consumers: consumers who have not yet bought anything on the Internet; consumers who have bought something on the Internet – but not groceries; and consumers who have bought something on the Internet – including groceries. Data were collected from an online survey of Swedish consumers (n = 1058) using self‐administered questionnaires. The findings suggest that consumers may link personal values to attitude towards online grocery buying – but also that this relation may be moderated by whether the consumer previously has carried out an online purchase or an online grocery purchase.     

An exploratory study of the upper middle-class consumer attitudes towards counterfeiting in China

Although counterfeiting has been discussed in the literature, research focusing on the newly-emerged upper-middle class from emerging economies remains scarce. The aim of this exploratory study is to uncover the new upper-middle class consumers’ attitudes towards counterfeiting in China. Qualitative research method was adopted to provide richer and deep information on the research questions. Through semi-structured in-depth interviews with members of the Chinese upper-middle class in Beijing, this study reveals that upper-middle class consumers present a distinctive view in counterfeiting in that they believe counterfeiting not only causes grave welfare related consequences and loss of trust in the legal system, but also seriously interferes with the order of the market.     

Ostentation and funk: An integrative model of extended and expanded self theories under the lenses of compensatory consumption

In the last decade, economic growth have created in Brazil and other emerging countries a ‘new middle class’, a group that left the poverty line and entered the consumption markets. In this scenario, a musical movement with many traces of this ‘new middle class’ has emerged. Known as Funk Ostentação (ostentation funk), the movement is formed by young singers whose lyrics and promo videos refer to the consumption of designer's clothes, cars and aspirational products. We have studied Funk Ostentação by means of its promo videos, personal interviews and a group discussion with its fans (young adults) and found meaningful relations between consumption and identity building. We developed a framework that integrates the extended and expanded self theories under the lenses of compensatory consumption. This framework can be applied to studies with other groups that have similar characteristics of vulnerability with other niches of the ‘new middle class’ in emerging markets.     

Segmenting Markets Along Multiple Dimensions of Luxury Value: The Case of India

abstract

This is one of the first investigations of consumer motivations for purchasing luxury brands in India, a country with an emerging middle class. It identifies four dimensions of luxury benefits for segmenting markets. These include the financial, functional, personal, and social benefits of luxury value. Using data collected from 329 respondents in Mumbai the study identifies nine luxury factors for purchase behavior. These are used for classifying respondents into three behavioral segments using cluster analysis. The first segment appears to buy luxury goods primarily for their snob appeal, the second segment for their prestige appeal, and the third for their value appeal. The results show that while many consumers may buy the same luxury goods, their motivations for doing so differ. The findings should help marketers tailor their messages to specific luxury-seeking segments. There are many papers on luxury brands but very few are from emerging markets. The results may be of great use to global brands that are looking for expansion due to slowdown condition across globe.     

Receptivity to advertising messages and desired shopping values

Advertising designed around the ‘value’ notion represents a way to deal with widespread retail competition and knowledgeable, empowered consumers. This study empirically examines the influence of receptivity to advertising messages (RTAM) on desired shopping values and assesses whether this relationship is moderated by gender, age, and income. The structural model indicates that, compared to low‐RTAM shoppers, high‐RTAM shoppers tend to perceive each of the six value dimensions, (i.e. monetary cost saving, time cost saving, energy cost saving, post‐sale customer support, engaging store environment, and personal leisure experience) as more important in making a retail patronage decision. Further analysis shows that the links from RTAM to monetary cost saving and to post‐sale customer support are stronger for younger male shoppers. Another interesting finding is that the link from RTAM to monetary cost saving is stronger for high‐income shoppers whereas the link from RTAM to engaging store environment is stronger for low‐ and middle‐income shoppers. If retail advertisers are aware of the value dimensions that are crucial to the high‐RTAM segment within specific target markets, they could achieve advertising goals more effectively and efficiently through tailored advertising messages.     

Changing Consumer Preferences in Emerging Markets: Food Market Challenges in Central Mexico

As incomes in emerging markets grow, consumers’ ability to break from former food consumption patterns and introduce new foods or conveniences grows as well. While this general principle is widely accepted, the path of such introductions is not identical worldwide. In this study, we explore how consumers in an advanced emerging market have identified with their current food options, including open-air markets v. supermarkets, and simple v. processed alternatives. Using focus groups, we find that Mexican consumers have strong ties to traditions in food preparation while also showing interest in modern food conveniences. Using product adoption theory, we show that consumers exhibit expected traits of innovation resistance, social contagion influence, and consumption innovativeness, but with specific local variation, including problems with trust, expectations of government action (paternalismo), and considerable definitional confusion. Foreign marketers wishing to access the growing Mexican market should account for these differences from broader product adoption theory.     

Examining the economic growth and the middle-income trap from the perspective of the middle class

In recent decades, while some countries have been growing consistently, others were not able to keep high growth rates and got stuck in the “middle-income trap.” This study aims to explore the relationship between the middle class and the persistence of economic growth, and understand the role of the middle class in avoiding the middle-income trap which is a serious threat for many emerging markets, yet an understudied topic in the academic literature. Our findings suggest that the key growth factors including the middle class, innovation, productivity, and foreign direct investment have diminishing marginal effect on economic growth. Moreover, the middle class plays an important role in avoiding the middle-income trap. We also find regional differences in the middle-class growth and economic evolution of emerging markets over time. To our knowledge, this is the first study examining the relationships between the middle class, economic growth, and the middle-income trap.     

Consumer satisfaction in retail stores: theory and implications

The substitution of small retail stores by the large stores has been a topic of debate among academics, practitioners, retailers and general public, especially in the context of foreign firms entering emerging markets such as China and India. The purpose of this research is to find out the determinants of consumer satisfaction in small and large retail stores in an emerging market, with a sample from India. Data were collected using a 39‐item structured questionnaire developed by the authors. The sample consists of 225 consumers who shop at retail outlets (Convenience sample of 125 consumers from small and 100 consumers from large stores respectively). Exploratory factor analysis grouped the 39 variables into 14 factors. Further, regression analysis revealed that six of the factors (Social desirability, staff friendliness, shopping economy, shopping ambience, family shopping and deal proneness) were major predictors of consumer satisfaction as they were found to be significant at 5% level. The significance of factors such as social desirability and staff friendliness imply that many consumers prefer those typical features of small stores, which in turn results in the likely coexistence of small retail formats in spite of the entry and proliferation of large retail stores from different countries. We posit three theoretical propositions to stimulate further research in this area.