Customer segmentation in retailing based on retail brand patronage patterns

In this study, we propose an alternative method for customer segmentation based on households’ retail brand portfolios. We suggest blockmodeling, a method that is rooted in social network analysis, to identify homogeneous groups of customers being characterized by similar patronage patterns. In a second step, we combine this method with psychometric analyses to examine group differences based on sociodemographic and purchasing behavior variables. To illustrate our approach, we use a sample of 500 households out of a panel data set of 36,502 German households in the fast-moving consumer goods sector. The findings of our analyses yield support for our assumption that our methodology, taking into account the relationship between households and the different retail brands they patronize, provides a broader understanding of the antecedents of households’ multiple store patronage strategies, leading eventually to a new form of customer segmentation.     

The Responsiveness of Households to Energy Demand Management Initiatives: Segmenting by Household Types

Segmentation is often a complex and costly process, which commonly involves identifying groups with differing attitudes and behaviors or demographics. However, the segments generated may not adequately explain differences between consumers, or it can be difficult to identify households for target marketing, which consequently makes it difficult to use segmentation in practice. In this paper we present segmentation by household type as a simple method of segmentation, accessible to nonprofit organizations with limited resources and able to be employed using a secondary data set or with relatively simple data collection and analysis. Despite its simplicity, our findings show that this form of segmentation differentiates well between segments in terms of their actual electricity use, their past efficiency behaviors and preferences for efficiency programs. The results of focus groups and a survey of 4,000 households reveal, among other things, the effect of having children and of marital status on energy use and efficiency behaviors, the high curtailment but low investment behaviors of single parent households, and the low efficiency behaviors of shared households.     

A Model of Household Grocery Shopping Behavior

The shopping trip to the grocery store is one of the most basic elements of consumer behavior. The authors seek to provide an understanding of the factors that account for variations in shopping behavior across households. They present a model of shopping behavior that assumes that households seek to minimize the travel cost associated with shopping and the cost of holding goods in inventory. As in the classic EOQ model, observed shopping behavior reflects the manner in which households balance these costs while meeting their consumption needs. A number of propositions derived from the model are tested using data on shopping trips made by households over a one-year period. The results support the model and indicate that the relationship between household characteristics and shopping behavior can be fairly complex: for some households shopping may have a recreational aspect while for others it may compete directly with wage-earning activity.     

Liquidity constraints,productivity, employment and output: evidence from non-agricultural activities in Bangladesh

This paper examines the role played by liquidity constraints in determining non-agricultural employment, labour productivity and output among poor, landless households. The hypothesis that the provision of credit to poor non-agricultural households on reasonable terms can greatly enhance labour use, and output, thereby reducing poverty is empirically investigated using survey data from rural landless households in Bangladesh. The study's findings indicate that even small amounts of credit on reasonable terms can substantially enhance labour use and income for poor households and that the impact is greatest for the poorest households.     

Can food calorie be an index for poverty in a rural economy? An extrapolation from farm households in Ogun State,Nigeria

The study assessed poverty in rural areas of Ogun State, Nigeria through the food energy (calorie) intake approach. A sample of 60 households (comprising of 346 members) were selected using a multistage sampling technique and were interviewed with the aid of well‐structured questionnaire. Data were analysed using nutrient estimation techniques, cost of calorie method and poverty index. The estimated food poverty line was 64.72 naira. The incidence, intensity and severity of poverty were consistently higher among female‐headed households and households that lack access to credit facilities with values 0.290, 0.359, 0.160 and 0.313, 0.371, 0.160 for the poverty measures respectively. Incidence of poverty reduces with educational level and age of household heads, but the corresponding intensity and severity were higher for households whose heads are between 46‐ and 55‐year brackets and those who have secondary school education. All measures of poverty decline with farm size. Multipronged strategies involving improvement of educational level of household heads, improved access to agricultural land and credit facilities, as well as fair distribution of resources towards women, among others, are recommended for poverty and hunger reduction and for sustained agricultural production.     

Consumption levels of households based on expenditure and household production

The distribution of consumption is the relative ranking of households with regard to their consumption level. This article discusses the possibilities and some of the problems in measuring consumption levels by combining expenditure and household production into one total figure. The feasibility of our approach is illustrated by using data from the Dutch 1980 budget survey and the 1980 time use study. The findings show that this total figure differs more between households of different size than between households by stage of life cycle or by income level.     

Egg utilization and consumer acceptability of egg dishes prepared with commercial egg powder in rural Mkhambathini,South Africa

Eggs have a potential to alleviate protein‐energy malnutrition among rural communities. Unfortunately, eggs are perishable and most rural communities in South Africa have very limited access to effective food storage and preservation facilities. Utilization of eggs by rural households could increase if they were available in the form of egg powder, which is convenient and shelf‐stable. However, rural communities in South Africa are not familiar with egg powder and therefore it is not known whether it would be acceptable to them. The aim of the current study was to explore the utilization of eggs by rural households of Mkhambathini, South Africa, and assess the potential for using egg powder in popular egg dishes. A total of 110 household representatives completed a survey questionnaire, 50 participated in focus group discussions and 51 in sensory evaluation of egg dishes (sandwich and relish) prepared with commercial egg powder. The households perceived eggs as an important, nutritious food, but cultural beliefs, ineffective storage facilities, and limited market access restricted their utilization. Results of sensory evaluation showed that the acceptability of the egg powder dishes was similar to that of their fresh egg counterparts. Overall, the study demonstrates that there is a great potential for rural households to replace fresh egg dishes with egg powder dishes.     

较发达地区农户参与农信社小额信贷程度的影响因素分析——基于苏北金湖农户“直接意愿”调查的实证检验

结合农户借贷行为特征,采用江苏省金湖县273个农户实地调查数据,通过基于"直接意愿调查法"的二元Probit模型,从需求和供给两方面实证分析中国较发达地区农户小额信用贷款的现状及影响因素,结果显示,外出务工人数、农村家庭大额非日常支出、农户人际关系的强弱和正规社会资本资源显著影响农户小额信贷的需求,而非农收入比重、农户兼业类型及地区人均贷款显著影响农户获得小额信贷的概率。因此,重视和挖掘农户潜在信贷需求,改进信贷产品服务和质量,满足农户多样化的资金需求,才是实现农村小额信贷的可持续发展之道。     

The Use of Telephone Directories as a Sample Frame: Patterns of Bias Revisited

A study was undertaken to reassess the utility of using telephone directories as a sample frame. A survey research unit within the Genesee County Health Department of Flint, Michigan, randomly sampled 1,031 households from the city of Flint using a complete listing of dwellings within the city as a universe. In addition to the normal interview schedule used, households were given a supplemental questionnaire on telephone service. The adult household respondent was asked if the household had a telephone and, if not, why. If the household had a telephone the respondent was asked if the number was listed in a phone directory or not. If the phone was unlisted, the respondent was asked why. The results were quite similar to those found by past research. There were a number of statistically dependent relationships found between whether or not households had listed or unlisted phones and various characteristics of household heads as well as other household features. It is concluded that using a telephone directory as a sample frame may lead to a significant sampling bias. Telephone sampling can still be a useful marketing tool if random digit dialing is used. This latter suggestion is briefly discussed.     

A computable general equilibrium model of international sanctions in Iran

We detail recent international sanctions against the Iranian economy and its government imposed by a subset of developed countries. The effects of these sanctions on the Iranian economy in general and upon upper and lower‐income rural and urban Iranian households, as well as the Iranian government, are modelled using a computable general equilibrium (CGE ) model. We supplement the Global Trade Analysis Project 8 data set using income and expenditure shares from the Urban and Rural Household Income and Expenditure Survey from the Statistical Centre of Iran (SCI ). The model is calibrated to simulate the effects of international sanctions as closely as possible. We use endogenous trade taxes to simulate the effects of sanctions on Iranian oil and petrochemical exports and Iranian imports of petroleum products, metal products and motor vehicles. Our study finds that international sanctions reduced aggregate Iranian welfare by 14%–15%. Rural households in Iran suffered welfare losses which were almost double those experienced by urban households, and the poorest urban and rural households experienced the largest welfare losses, in the order of 5%–10%. But the government of Iran sees a decrease in real revenue of 40%–50%, due to the large negative effect of sanctions on the Iranian oil sector.     

Household characteristics and the change of financial risk tolerance during the financial crisis in the United States

This study examines how household financial risk tolerance is affected during the period of 2007 and 2009, which covered the eve and trough of the financial crisis in the United States and what types of households are associated with the change of risk tolerance. Risk tolerance is measured by two objective indicators, narrowly and broadly defined stock ownership, and a subjective indicator, risk taking attitude. Using panel data from 2007 to 2009 Survey of Consumer Finances, results show that during the financial crisis, the households in general are more risk averse, indicated by withdrawing from stock markets and holding a less risk taking attitude. In addition, Black and Hispanic households are more likely and households with higher education are less likely to withdraw from stock markets. Older households are less likely to change in risk tolerance during the financial crisis, as are richer households. The findings show panel data could generate novel results and contribute to the literature of financial risk tolerance.     

农村信用社农户小额信贷的博弈分析

农户小额信贷的行为主体信用社与农户之间博弈的纳什均衡因农户使用贷款用途不同而有所差异。通过博弈分析,得出了农户使用贷款在不同用途下的纳什均衡。然而要真正实现各种情况下的纳什均衡并非易事,博弈双方会面临各种信贷风险和自然风险。为此,应设计科学、完整的农户信贷等级评定指标体系和灵活多样的信贷产品,构建多元化的农业保险体系,从源头上加以防范,以实现信用社与农户双方博弈的纳什均衡。     

Learning for lower energy consumption

Energy‐efficient technologies are not just objects that might enable households to carry out more sustainable practices; they are tools, and using them effectively requires certain skills and knowledge. Households' difficulties in handling home heating and hot water technologies in particular have been highlighted as an obstacle to meeting energy conservation objectives. This has given rise to calls for improved support based on how the households define their activities and handle these technologies. By deploying a socio‐cultural theory of learning and using in‐depth interviews with households that have recently purchased renewable heating systems, this paper examines various situations in which people have learnt to use the technologies, and it discusses lessons learnt that may be useful for developing support. The results demonstrate three common learning approaches and identify situations where the learning process runs smoothly and where it does not. The conclusions suggest strategies for helping households overcome the resistance embedded in the interaction with the technologies, and they highlight the importance, when developing support, of starting with what creates meaning in various situations.     

Domestic fuel expenditure and payment of fuel allowances

The allocation of additional requirements for heating to households on supplementary benefit (SB) has been challenged recently. Some households receiving an addition spend less on fuel than others which do not. The fuel expenditure of any household on SB is likely to be constrained by income and may reflect ability to pay rather than need. A group of households with zero or close to zero income elasticity for fuel expenditure is identified. The expenditure on fuel of these households can be considered not to be constrained by income and to reflect the real costs of maintaining a warm home in given circumstances. Their expenditure is then used to indicate how fuel allowances might be better targeted.     

The effect of fraud experience on investment behavior

Given the recent increases in fraud targeted at households, we examine the effect of household-level fraud experience on investment behavior for a representative sample of Chinese households. Using a difference-in-differences approach with matching, we find that households exposed to fraud are less likely to invest in high-risk assets such as stocks and derivatives and allocate less of their portfolio to high-risk assets. We find that the relationship between fraud experience and investment behavior is driven by households with high risk aversion and not low trust.     

Rising prices and coping strategies of urban families in India

This study examines how Indian urban households coped with rising prices over the period 1995–1996 to 1999–2000. It provides evidence of cost of living indices and the coping strategies of urban households belonging to different income groups. Although there has been a lively debate on inflation and related issues, most of the studies were macro studies, which have not paid explicit attention to the impact of rising prices on the coping and financial management responses of the affected families. This paper is a part of a larger cross‐sectional study on the impact of rising prices on quality of life and financial management practices of Indian urban households belonging to five different income groups. This paper provides the evidence on cost of living indices and the coping strategies adopted by these households to combat an otherwise hostile economic environment. It found that the impact of cost of living indices differs across different income groups depending upon the composition of the consumption basket and the proportion of expenditure incurred on specific items of that basket. It is also observed that rational responses of households played an important role in coping with increased cost of living. The evidence suggests that a wide range of coping strategies is adopted by households such as consumption reallocation and seeking increased earning opportunities as part of their backward and forward coping strategies.     

Socio‐demographic determinants of gambling participation and expenditures: evidence from Malaysia

This study examined the socio‐demographic determinants of participation and expenditure decisions on gambling among non‐Muslim households in Malaysia using data from the 2005–2006 Malaysian Household Expenditures Survey. Heckman's sample selection analysis was used to obtain consistent (unbiased) empirical estimates for the regression equation of gambling expenditures in the presence of censoring (observed zeros) in the dependent variable. Marginal effects were also calculated to further explore the effects of socio‐demographic variables on the probability and levels of gambling expenditures. The results indicated that non‐Muslim households in Malaysia who are more likely to participate and spend more in gambling include Chinese, affluent, male‐headed, younger and non‐white collar households. Specifically, households of Chinese descent have higher gambling probabilities and expenditures than Indians and those of other ethnic backgrounds. While education reduces and age increases the likelihood and expenditures of gambling among Chinese households, these effects are non‐extant for Indians and other ethnic groups. Higher income and male‐headed households were more likely to partake and have higher expenditures in gambling among all non‐Muslim ethnic groups. Finally, Chinese and Indian households headed by a white‐collar worker have lower gambling likelihoods and unconditional expenditures than their blue‐collar cohorts. Based on these results, several anti‐gambling policies were suggested to target those more likely to participate and spend more in gambling activities.     

The Impact of Electronic Payments for Vulnerable Consumers: Evidence from Social Security

Vulnerable consumers may face barriers to using electronic payments, especially consumers in “unbanked” households where no member has an account to receive payments. In March 2013, the US Social Security Administration transitioned exclusively to electronic payments, representing a large shift in payment mode mandated at the federal level. This study identifies the size and characteristics of the population impacted by this shift, by linking administrative data on Social Security payments to a nationally representative survey on the use of bank accounts and financial services. We find that the majority of unbanked Social Security recipients took up electronic payments well before the March 2013 deadline. The mandate does not appear to have increased the use of bank accounts. Instead, recipients used electronic payment cards. However, the transition to electronic payments was slowest among the most financially vulnerable households, suggesting a focus on these households as payment methods continue to develop.