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Poverty Definition

The income cutoffs used by the Census Bureau to determine the poverty status of families and unrelated individuals, based on family size. The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index.

In marketing research, poverty refers to the state in which individuals or households have insufficient income or resources to meet basic living needs. It is often measured relative to a defined poverty threshold and used to understand economic constraints that influence consumer behavior, access and market potential.

What are key aspects of poverty in marketing research?

• Defined by income level below a national or regional threshold.
• Includes absolute and relative poverty metrics.
• Influences consumption patterns, brand access and media use.
• Linked to other socio-economic factors like education and employment.
• Measured through census, panel or survey data.
• Can vary significantly by geography and demographics.

Why is poverty data important in market research?

Understanding poverty helps researchers and businesses identify underserved populations, design inclusive products or services and create pricing and distribution strategies that align with economic realities. It also informs public policy and social impact efforts aimed at reducing inequality.

Who relies on poverty data in marketing research?

• Consumer insights teams targeting low-income segments.
• Nonprofits and NGOs designing aid and access programs.
• Retailers and CPG brands creating value-based offerings.
• Public sector and policy researchers assessing need.
• Social marketers promoting behavior change in disadvantaged areas.
• Health care and financial services organizations tailoring outreach.

How do market researchers use poverty data?

Market researchers use poverty-related data to better understand how economic constraints shape consumer behavior, access to goods and services and engagement with media and marketing channels. By segmenting populations based on poverty levels or associated indicators like income, education and housing, researchers can identify specific needs, pain points and barriers to adoption. This insight supports the development of accessible product lines, affordable pricing models and targeted outreach strategies. In both commercial and social sectors, analyzing poverty helps ensure that research and marketing initiatives are inclusive, equitable and aligned with real-world consumer conditions.