Abstract

OLIVA, Fábio Lotti et al. Proposing the concept of a fit strategy for low-end products. Economia Global e Gestão [online]. 2010, vol.15, n.3, pp.63-87. ISSN 0873-7444.

The interest of businesses in the low-income market has increased in recent years in emerging countries. In order to serve this market, there is a need of an innovative approach in the development of new products and in understanding their specificities. The focus of this paper is to assess crucial attributes in consumer purchase decision and how companies are organizing themselves to serve this population segment. It examines the case of the consumption of an electrical appliance - tanquinho (a less sophisticated washing machine) by low-income population. Thus, a field research was conducted in retail stores with low-income consumers in the city of São Paulo, in the last quarter of 2005. Primary data obtained were subjected to analysis using statistical techniques. The results show that to serve popular markets is not simply a matter of adopting low-cost generic strategies. There is also a need of an adequacy strategy, a fit strategy, which configures the balance between the search for the best price bid responses and addressing the needs of low-income consumers.

Keywords : Popular Products; Fit Strategy; Low Income Population; Retail; Consumer Purchasing Decision.

        · abstract in Portuguese     · text in Portuguese     · Portuguese ( pdf )