Purpose The paper examines the increase in annual income of the new middle-class (The NMC) of Delhi-NCR and its impact on their investment habits, consumption habits and lifestyle. The paper aims to look into the transformation of the new middle-class into the NMC in emerging economies and its potential to the companies and investors. Design/methodology/approach This study draws insight from 558 new middle-class consumers in Delhi-NCR. ANOVA, post hoc tests , and hierarchical multiple linear regression model are applied to test the proposed hypotheses. Findings The NMC living in India's megacities imitates the lifestyle of their counterparts living in the West. To maintain their status and present themselves different from those living in middle or lower-middle-class categories, they spend audaciously, even though the income is low. When they enter the new middle class, their consumption, saving and lifestyle diversify positively. Research limitations/implications This study has limitations. First, the authors do not apply any behavioral theory or marketing model such as the theory of reasoned action (TRA), Engel-kollat-Blackwell (EKB) model or theory of normative model of target markets. Second, the research is limited to the NMC of only one emerging economy, i.e., India. Third, the research sample is limited to only one megacity of India, i.e., Delhi. Finally, this research used only one factor, i.e., AI, to study the consumption pattern. Practical implications The results suggest that considering the buying habits and lifestyle of Indian the NMC, consumers would prove helpful to the companies in product decision-making. Furthermore, understanding change in investment habits across different income levels would be advantageous to financial institutions, investment planners and marketers while designing their products to attract investment. Originality/value The research holds significance from the point of view of understanding Indian consumers encompassing the the NMC and predicting their implications on consumer goods-producing industries, which shall, in turn, facilitate producers and government in formulating policies and strategies.

The government struggles to fight escalating food safety issues in Vietnam. However, government measures yielded little evidence of improvement to domestic food safety. For that reason, consumers lower their trust in the government. The current market context, and low trust towards the government left consumers to count on their own judgement for the sake of their own food safety. This study applied choice experiment method based on Lancastrian consumer theory and random utility theory to elicit consumers’ preferences on traceable safe foods and the perception regarding food safety. The impact of food safety related attributes was identified in the order of decreasing magnitude: freshness, label, traceability, certification, and price. Results suggested that Vietnamese consumers adhered food quality to food appearance (i.e. freshness) and made judgement with such perception. This paper also highlighted a noticeable reverse impact of the level of food certification on consumer preferences toward safe choices, which contributed to the current food safety situation in Vietnam. The reason was expected to be trust issues in the government, the impact of food safety context, and consumers’ false perception of food safety. To enhance trust, food traceability appears to be an indispensable and potential instrument. Besides, traceability information should be addressed via food label precisely to augment visual inspection as well as to increase its effectiveness. Additionally, consumers are willing to pay a price premium for traceable products, thus inducing suppliers to participate in food traceability. Nevertheless, the government must play a more proactive role in market supervision and education to facilitate the development of food traceability.

Download

One of the effects of exchange rate fluctuations is cross-border shopping by consumers. This paper provides an empirical analysis of the effects of Malaysian ringgit depreciation on cross-border shopping of Bruneians. This has been done by using daily data from 1 January 2014 to 31 December 2016 (total 1,096 observations) on traffic flows to Miri, a border town of Eastern Malaysia. We find that a 1 percent increase in the depreciation of Malaysian ringgit per Brunei dollar increases the number of Bruneian shoppers to Miri by 2.10 percent. We also estimated that the average spending per person per trip to Miri is B$155 and the total spending of Bruneian shoppers in Miri is $175 million a year. This total spending is 1.11 percent of gross domestic product of Brunei in 2016. The result from this study would be helpful in designing policies for cross-border shopping of Bruneians. This is because the number of visits and the total expenditure amount of Bruneians in Miri are related to high outflow of money which results in a loss to the local economy – which may deteriorate local business.

Download