Information Search,Alternatives Evaluation,and Coping Mechanisms of Functionally Illiterate Consumers in Retail Settings: A Developing Economy Context

Little research has been carried out with regard to marketing to functionally illiterate consumers, despite the size and purchasing power of this market segment. This qualitative study examined the decision-making processes and coping mechanisms of functionally illiterate consumers in the South African grocery shopping environment. The findings provide insights that have important theoretical and practical implications for marketers, retailers, and policy makers. For functionally illiterate consumers, the information-search stage of the consumer decision-making process is either nonexistent or limited to a few trusted sources, such as friends and family, which often occurs only after a purchase has been made. Furthermore, these consumers face difficulties in a grocery store environment but have developed several coping mechanisms to compensate for their limited literacy skills.     

Perception versus Reality: Canadian Consumer Views of Local and Organic

During the past decade, Canadian consumers have developed a keen interest in local and organic foods. In response, the Canadian government established standards to regulate their labeling. However, many retail and media outlets offer varying definitions that fit their needs. Consumers utilize this often conflicting information to formulate their understanding of local and organic. The aim of this study was to investigate consumer understanding and perception of local and organic food, especially in regard to production characteristics. The results indicate that local is predominantly defined as decreased miles to transport, whereas organic is defined as food produced without the use of synthetic pesticides. However, a fairly large percentage of consumers perceive inaccurate definitions as being characteristics of local and organic. Furthermore, consumers with accurate definitions of local and organic share a similar consumer profile, while consumers with misguided perceptions do not. We also see that characteristics such as ethnic heritage, personal characteristics, geographic region, and length of stay in Canada not only influence consumer understanding and perception, but also the geographic boundaries associated with local.     

Fixed costs,markups and concentration in Eswatini (Swaziland): A firm-level analysis of panel data

This paper documents the evolution of markups and concentration, detects causality between firm churning and markups/concentration, and determines the impact of fixed costs on markups. It relies on production data of Eswatini during 1994–2007 to estimate markups using the production approach. It finds elasticities, markups and concentration to be comparable with other findings elsewhere. Although no causality is found from a regression of markups/concentration to entry/exit dynamics an increase in productivity within high capital stock industries and in fixed costs raises average markups. Further research will focus on markup state dependence, unobserved heterogeneity, and endogenous regime switching to enhance understanding of markup pricing.