IDENTIFYING THE MARKET NICHE FROM A FAMILY BUDGET ANALYSIS IN LOW INCOME POPULATION

Abstract

The allocation of the family incomes around some consumption items is proposed as linked to the limitations on money resources. The expenses stemming from these income distributions have framed family budgets. This paper provides a quantitative descriptive study using cluster analysis, with the purpose of evaluating the consumption of the low-income population, clustering the families according to their budgets. The study is based on micro data from the Consumer Expenditure Survey - POF (2008-2009), with geographic cutout in the city of Fortaleza/CE, guided to the classes C and D. Ward clustering method was used with the R² as the criteriona for retaining the number of clusters, resulting in four clusters. Families with low income presented the following expenditure on food and housing: cluster 1 - 67.50%; cluster 2 - 66.7%; cluster 3 - 50.60% and cluster 4 - below 43.30%. The average monthly income of clusters is respectively: R$ 1,108.86; R$ 1,486.57; R$ 1,569.09 and R$ 1,684.17; showing that a small variance in their income influences families expanses. The resulting clusters show the heterogeneity of family groups by income level and that variances in income levels affect family consumption behavior.