Impoverished Consumers and Consumer Behavior: The Case of AFDC Mothers

Abstract

This article presents three dimensions of impoverished-consumer behavior-exchange restrictions, the consequences of these restrictions, and coping strategies-in a model developed through literature review. The consumer environment of welfare mothers is then employed to examine the perspective of this model. The article closes with suggestions for welfare reform and a discussion of the broader implications for consumer behavior.

How the unbanked cope with financial exclusion: Evidence from Pakistan

“…Although unbanked individuals might be considered disadvantaged compared with mainstream consumers, they may nonetheless be able to exert some degree of control over their lives (Hill and Stephens, 1997;Hill, 2002). Poor consumers do not want to be considered victims; rather, they want to play an active role in coping with consumption constraints (Hamilton, 2009).…”

“…Coping strategies can be categorized as emotional or behavioral (Hill and Stephens, 1997). Emotional coping strategies include distancing, fantasizing, and other attempts to regulate emotions (Baker, et al, 2005;Hill and Stephens, 1997), whereas behavioral coping strategies include controlling potentially harmful behaviors, eliminating reminders of a negative experience, seeking social support, and using deception (Baker et al, 2005).…”

“…Participants who simultaneously rely on both emotional and behavioral coping strategies believe that their economic circumstances are the fundamental cause of their financial exclusion and the disadvantages that they suffer. Emotional strategies include distancing, fantasy and other attempts to regulate emotions (Baker et al, 2005;Hill and Stephens, 1997). However, emotional coping strategies do not dissipate participants' emotional stress (Lazarus, 1991) because they may suffer disadvantages due to financial exclusion during their coping efforts.…”

“…Unbanked individuals are generally considered disadvantaged relative to mainstream consumers in the marketplace. Many consumers who are disadvantaged in this manner (i.e., low-income consumers) have developed skills to exploit their environment to achieve some degree of control over their lives (Hill and Stephens, 1997;Hill, 2002). Financial exclusion can be stressful for consumers, and previous research in the developed world highlights several negative consequences for unbanked consumers (e.g., Kempson and Whyley, 1998;Collard and Kempson, 2005).…”

How Do Soap Operas Affect the Poor? Experiences of Turkish Women

“…Feeling incapable of purchasing the desired item or to create positive change in their circumstances can lead to learned helplessness and adapting to deprivation (Hill and Stephens 1997), both of which can lead to a general pessimist outlook toward life. As argued, in the case of low income households, either state (being hopeful or hopeless about reaching the desired) may entail negative consequences.…”