Worlds apart: an investigation of South Africa’s established and emerging middle class consumers

Abstract

Purpose The purpose of the paper is to investigate the nature of variations among established and emerging middle class consumers in South Africa in response to the institution context factors associated with emerging markets that are established in international business studies. Design/methodology/approach An exploratory research approach using semi-structured expert interviews was used to collect data. Findings Key findings indicate distinct approaches in dealing with factors such as different fallback positions, asset ownership, education, language, family responsibility, career aspirations and risk protection in the middle class process of attaining and sustaining middle class status. Research limitations/implications The focus on one country has the potential to minimize the generalizability of findings from the study, however, South Africa has a significantly high proportion of sub-Saharan middle class consumers. This provides a basis for further a basis for further research into other sub-Saharan African countries. Practical implications Findings from the study provide practical insights on risk profiling of middle-class consumers for marketing practitioners. Social implications The study provides insights into the distinct variations between emerging and established middle class consumers in areas such as language and education. These insights have potential implications on the implementation of government policies such as the Empowerment Policy and consumer protection. Originality/value The paper expands the research agenda in the area of middle class consumer behavior in emerging markets. By concentrating on South Africa, the research expands existing knowledge beyond emerging giants like China and India, which are often a focus in literature.

An Investigation of the Impact of Financial Literacy and Financial Socialization on Financial Satisfaction: Mediating Role of Financial Risk Attitude

“…Joo and Grable (2004) argue that risky investments tend to yield high return on investments that enhance individual’s financial satisfaction. Furthermore, Lappeman et al (2019, p. 308) argue that individuals within the established middle class are likely to make financially risky decisions as they have established fallback position (usually within the middle class itself) compared to individuals in emerging middle class. Family and friends are able to readily assist in times of financial trouble or income shocks, such as retrenchment or business failure.…”

Revisiting Middle-Class Consumers in Africa: A Cross-Country City-Based Investigation Outlining Implications for International Marketers

“…A key gap in understanding the middle class relates to how international marketers adopt “theories of consumption that treat all households as having the same propensity to consume” (Cavusgil et al 2018, p. 102). The treatment of the African middle class as a homogeneous group is common (Lappeman et al 2019; Simpson and Lappeman 2017). Our study therefore augments existing marketing theory by providing a window on middle-class heterogeneity in life and consumer behavior.…”

“…Our development of a more nuanced and inclusive approach to conceptualizing the middle class built on previous studies that used both income and nonincome variables to explore the concept of class in Africa (Cavusgil et al 2018; Chikweche and Fletcher 2014a, b; Lappeman et al 2019, 2021). To date, no African middle-class study has attempted to divide the middle class into behaviorally relevant subsegments.…”