Infographic: Household Purchasing Models

As diverse as households characteristics are, so are their monthly requirements. More often than not, set budget items may determine what gets included on regular shopping lists. Moreover, purchasing models adopted by households may depend on the nature of goods - from groceries to durable household equipments - within consideration.

Members of middle-income and upper income classes tend to have greater outlays required to make bulk purchases, thereby escaping vagaries of price fluctuations for fast-moving consumer goods. 

On the lower rung of the income ladder, members of a low-income class, who may be daily wage earners tend to opt for buy-as-you-go purchasing options. Sadly, many low-income households bear the brunt of rising food prices and commodity price shocks.

The amount of time available for regular market visits, may also affect a household's purchasing model. Time-poor householders, who may choose to allocate limited time to other high-value or income-generating activities (other than stress-inducing and time-consuming shopping runs), may seek time-saving purchasing options such as agent-aided shopping, community-assisted shopping or allied alternatives.

Nearness to local farmers' markets, where produce is cheaply available in large quantities, may steer cooperation among some lower income groups towards bulk purchasing during inflationary episodes. So doing, they can share costs and allot savings to other essentials. 

The degree of urbanisation of a locality may influence the outlook of households about regular shopping. In town and cities where malls and multi-department supermarkets abound, shopping trips tend to be more recreational than a chore. With side attractions such as cinemas, playgrounds and merriment equipments, shopping trips serve as a great time out for parents and their wards.

In order to gain cost advantage from market channels that offer goods at attractive distributorship deals, households may maintain a directory of target vendors. With these network of price lists in the pull, households can make regular comparisons and choose channels with least cost options.

Moreover, the global health shock triggered by COVID-19 pandemic and its associated lockdowns,  facilitated a faster drift towards remote shopping, demand for logistic services and door-step delivery of goods. In order to reduce the risk of community transmission of the virus, it is beneficial that households in communities cooperate to mobilise market agents with capacity to facilitate group purchases.

For the economising household, other things being equal, the nominal costs and real costs of choosing a purchasing model must be less than the economic benefits. Else, a switch in between available household purchasing models is imminent.