An investigation of low-income consumer-buying behaviour in the personal-care industry in South Africa

Abstract

South African companies are said to be mining the so-called "Black Diamond", the emerging middle-class segment that is driving economic growth within the country (Mahajan, 2009:9). The focus on the emerging Middle Class in South Africa (SA) has left a knowledge gap on Low-Income consumers - even though they are still the largest consumer group in SA (Connecting with Survivors, 2014). The Unilever "Connecting with Survivors Report" (2014) highlights the fact that 70% of the SA Market earn less than R6000 per month, while together they have a spending power of R300 Billion per annum. According to Martin (2012:71), 5.8% of Low-Income Consumer Households (HH) spending is prioritised for the purchase of personal care products, while 64.2% of their HH income is prioritised for food and housing expenses. Given the trivial proportion allocated to personal care products, this research has been guided by the problem statement that Low-Income consumers are forced to make trade-offs, when purchasing personal care products, which fall outside their realm of affordability. The primary objective of this study was to investigate Low-Income consumers' buying behaviour in the Personal Care Industry in South Africa. The Theory of Buyer Behaviour was used as a theoretical framework to assist in the understanding of Low-Income consumer behaviour in the Personal Care industry. The phenomenological research paradigm was used in this study, utilising interviews to collect the data from respondents in the Western Cape Province. Inductive reasoning was practised to draw a conclusion on the investigation of Low-Income consumer buying behaviour in the personal care industry in South Africa. The findings from the study indicate that Low-Income consumers do indeed make trade-offs when personal care products fall outside their realm of affordability. The extent to which they do so varies, based on necessity. This research stands to contribute to the body of knowledge by narrowing the knowledge gap on the Low-Income Consumer market in South Africa with the focus on the Personal Care Industry, thereby allowing marketers to develop and implement effective marketing strategies

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