TY - JOUR
T1 - An economic analysis of demand of the very poor
AU - Lee, Sanghak
AU - Thomas, Suman Ann
AU - Allenby, Greg M.
N1 - Funding Information:
We want to acknowledge NUS Business School, National University of Singapore for the provision of the dataset.
Publisher Copyright:
© 2020 Elsevier B.V.
PY - 2020/9
Y1 - 2020/9
N2 - Economic studies of consumer behavior focus almost exclusively on people in developed countries with relatively large household budgets as compared to others in the world. The very poor, those surviving on less than $2.50 per day, make up half the world's population and are not represented in academic studies of brand preference and choice. Those characterized as extremely poor, living on less than $1.25 per day, are estimated to comprise 1.3 billion people, with nearly half living in India and China1. In this paper we investigate demand for the very poor using economic models of choice that have been applied to studies of the American consumer in two product categories, toothpaste and laundry detergent. The data come from a unique panel of respondents in India where consumers purchase small and affordable single-use packages. Our analysis indicates that standard models of demand used to study wealthier consumers also apply to people in extreme poverty. https://www.dosomething.org/us/facts/11-facts-about-global-poverty
AB - Economic studies of consumer behavior focus almost exclusively on people in developed countries with relatively large household budgets as compared to others in the world. The very poor, those surviving on less than $2.50 per day, make up half the world's population and are not represented in academic studies of brand preference and choice. Those characterized as extremely poor, living on less than $1.25 per day, are estimated to comprise 1.3 billion people, with nearly half living in India and China1. In this paper we investigate demand for the very poor using economic models of choice that have been applied to studies of the American consumer in two product categories, toothpaste and laundry detergent. The data come from a unique panel of respondents in India where consumers purchase small and affordable single-use packages. Our analysis indicates that standard models of demand used to study wealthier consumers also apply to people in extreme poverty. https://www.dosomething.org/us/facts/11-facts-about-global-poverty
KW - Direct utility model
KW - Extreme poverty
KW - Horizontal variety
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U2 - 10.1016/j.ijresmar.2020.01.003
DO - 10.1016/j.ijresmar.2020.01.003
M3 - Article
AN - SCOPUS:85079177164
SN - 0167-8116
VL - 37
SP - 544
EP - 556
JO - International Journal of Research in Marketing
JF - International Journal of Research in Marketing
IS - 3
ER -