Study reveals that low-income consumers prefer to purchase from environments in the same income band

This study was conducted by Jorge Jacob (assistant professor at IÉSEG School of Management) and Yan Vieites (assistant professor at FGV EBAPE), researchers and alumni of the FGV EBAPE’s MSc program, in co-authorship with FGV EBAPE’s professors Rafael Goldszmidt and Eduardo B. Andrade. The article, Expected SES-Based Discrimination Reduces Price Sensitivity Among the Poor, was recently published in the Journal of Marketing Research, one of the world’s leading marketing journals, and offers relevant contributions to the scientific field of consumer behavior.

The research was conducted from August 2017 to January 2022 with 1,936 participants, including residents of the regions Complexo de Favelas da Maré and the South of the city of Rio de Janeiro. The results show that low-income consumers prefer to shop in environments of low-income sellers and customers, regardless of product prices or services’ costs. According to the study, low-income consumers are less likely to be discriminated against in these commercial environments than in more elite environments.

For the researcher Yan Vieites,

“The studies also show that this situation can be circumvented by emphasizing values linked to equal treatment to all consumers and/or appreciation of diversity. It is possible to reduce concerns about discrimination against low-income consumers, who in turn feel more comfortable shopping in commercial environments traditionally seen as serving only to the wealthiest.”

Access the full article here.

THE PROGRAM

FGV EBAPE’s MSc Program in Administration offers methodological and conceptual training equivalent to those offered by similar programs worldwide, at the same time giving access to specific knowledge and contexts of the Brazilian reality. The program emphasizes research production and dissemination through publications in leading journals in administration and related fields. The MSc is taught entirely in English. Therefore, students must be able to read, write, understand, and speak the language.

FGV EBAPE’s PhD Program in Administration prepares students for the academic life of a research professor at a university or higher education institution in Brazil and abroad. The program requires students to read, write, understand, and speak English. The PhD concept paper, the dissertation project, and the final dissertation must be prepared in English unless the supervisor and student agree differently. Applications for the program are open until August 4, 2022. For more information, visit the program’s webpage.