Consumer Behavior and Social Strata in Transition Economies. Are Elites Existent ?

Paulius Senuta, Head of Strategy

Marketing Communication Garage 4x4

in association with

Young & Rubicam, Riga

Presentation at EBS, 6 April 2000

Conference The Impact of Advertising on Social Values

Consumer behavior and social strata in transition economies. Are elites existent ?

Already for a decade Baltics is a market where business as is known in Western world may be conducted. The same decade has shown that business here has its own peculiarities, entrepreneurs who did not respect it were doomed for failure.

Looking the same decade back, when markets opened and business world was welcomed, foreign investors faced a multitude of decisions to make for starting their ventures. One of the most popular ways was to hinge directly onto conventional principles; known as well as know-how.

A decade passed and business is still adapting. Looks like “invisible hand” of Adam Smith is working. Nice to have a prove. Is it not so?

The decade shaped business in general and marketing practices in particular. Comprehending and dealing with local end customer was not easy, nor will be. And it is not just because it is not easy anywhere, but notably because fast-changing environment carries strong impact on consumer values, opinions, attitudes, etc.

Taking a closer look, the transition is marked not only by fast-changing market but as well by fast-changing social structure. Thus, one without other can not be understood (even if some people try to do it).

Belief in marketing practices requires consumer behavior studies, as they are the only viable method for insights into what drives consumption process, and allows the producer side to adapt for greater value delivery and consequent satisfaction.

Getting down to consumption behavior studies, one may see that mass product consumption studies have revealed quite egalitarian underlying consumption principles. On the other hand, studies preoccupied with luxury commodities depict completely different picture....