Income and consumer identity in

consumer behavior

Presented by: Lubna Naseer

Income:
 Income is a very important factor that affects the buying decisions
and consumer behavior of people. Across different income levels, the
difference in product choices and buying patterns can easily be marked. ... A
buyer with higher disposable income will spend more on luxury or lifestyle items.
Individual attitude towards money:
1.Atephobia: Fear of being ruined
2.Haraxophobia: Fear of being robberies
3.Peniaphobia: Fear of poverty
4.Aurophobia : Fear of gold
Discretionary income:
Discretionary funds refer to the remaining funds you have after paying taxes
and other necessary expenses such as food and housing.( spend on luxuries
items or entertainment)
Disposable income: left over money after paying taxes or bills.
All the product are not for all. Everyone has different
purchasing power and their buying patterns reflect their
income. Marketer targets the consumer by their
purchasing styles.
Status symbol: A status symbol is something that a person has or owns they have money or
importance in society. In our society we perceived an individual income by their
consumption behaviors, e.g: Expensive and branded mobiles, clothes, watches, sunglasses,
shoes, cars, luxury villas these are the status symbols of today’s society.

 We have 6 different types of class structure.

1. upper upper
2.Lower upper
3.Uper Middle
4.Lower Middle
5.upper Lower
6. lower lower
But here we are elaborating consumer’s identity into two major groups.
1.Higher income status
2.lower income status
High income consumers status:
marketer target the higher income consumer through novel changes in luxuries product.
They like to spend money on costly remarkable brands.
Wealthy like to spend money on priorities.

Three different consumers attitude towards luxuries:

1.Luxury functional: purchase product that will last and constant. They wise
decision instead of emotional and impulsive buying.
2. Luxury reward: They use luxury good to say ; I have made it.
They purchase high end automobiles and home in exclusive community.
( younger)
3. Luxury is indulgence: Spend their money on splendid gratify product.
( emotional buyers)
Affluent customers have a distinctive sense of style and taste.
Greater ability to spend means that they should enjoy exclusive brands.

 Focus Not on Price, But on Quality

 Brand and Reputation Matter to These Customers
 Center on the Broader Theme of Success
 An income of US $40,000 per year which translates to 4191400
Pakistani Rupees a year is what I consider to be rich which is a
monthly income close to Rs 3.5 lakhs
Low income consumers status:
Many people with lower incomes select price as a conscious factor of choice
and claim it is the most important criterion affecting their buying decisions
across all categories.

 They fulfill their only basic need like food shelter,health etc.
 low-income consumers as they often go with the simple option.
 They find a supermarket that is known to be a bit cheaper and buy their usual
products and brands in that store.
 unable to obtain the goods and services needed for an "adequate" and
"socially acceptable" standard of living.
 Limited product availability can be a problem for low-income consumers.
( e.g: shampoo sachet)
 Poor dietary habits such as low dietary variety and inadequate nutrient
intakes can affect physical health.
Marketers target low income consumers by different
strategies:

 reduce price
 provide the product in different sizes
 alternative products
 By one get one free
 Product with scholarship
 Provide different money range packages( Ramadan sale+ supermart)
 Residence ( show identity as well)
Social mobility: Social mobility, movement of individuals,
families, or groups through a system of social hierarchy or
stratification.

 horizontal mobility( change occupation but no change in social class)

 vertical mobility(the move involves a change in social class)


Nouveau Riches: recently achieved their wealth and
don’t know how to spend.
old money: inherited fund and secure with status.