A field experiment on marketplace literacy and self-help group membership in subsistence marketplaces

Abstract

We conducted a field experiment to gain marketing insights into low-income, subsistence consumers in emerging markets. We examined two phenomena– marketplace literacy which is knowledge and skills about the marketplace to overcome challenges with low income and relatively lower literacy, and membership in self-help groups that has empowered women around the world. We studied how these factors influence strategies for managing product quantities essential for day-to-day survival in contexts with resource constraints. In a prospective design, low-income women were randomly assigned to self-help groups and marketplace literacy education, with pre- and post-measurement. Our findings suggest that, whereas self-help group membership and marketplace literacy help women in low-income households improve their strategies to manage product quantities, the interaction of these two variables leads to counterintuitive outcomes. Our findings provide a nuanced understanding of how consumer and marketing insights can empower consumers in resource-constrained settings to become more effective.