Share
Yes. Prices are often higher in poor areas and with reduced access to cars, comparison shopping is harder:
This research undertakes a carefully designed and detailed empirical study to gain insights into (1) the extent of price differentials between wealthy and poor neighborhoods; (2) what induces such differentials, especially the nature and intensity of competitive environments, including mass merchandisers like Wal‐Mart; and (3) their relative impacts. It finds a price differential of about 10%–15% for everyday items. Even after controlling for store size and competition, prices are found to be 2%–5% higher in poor areas. It also finds that it is not the poverty level per se but access to cars that acts as a key determinant of consumers’ price search patterns.
Source: Cost of Being Poor: Retail Price and Consumer Price Search Differences across Inner‐City and Suburban Neighborhoods from JOURNAL OF CONSUMER RESEARCH
Join over 320,000 readers. Get a free weekly update via email here.
Related posts:
New Neuroscience Reveals 4 Rituals That Will Make You Happy
New Harvard Research Reveals A Fun Way To Be More Successful
How To Get People To Like You: 7 Ways From An FBI Behavior Expert