Comparing apples with apples : segmenting sub-Saharan Africa by affluence, expressed as a measure of living standard; a market segmentation study

In 2002 some of the main challenges facings sub-Saharan African marketers and development strategists was the lack of credible and current income data and the absence of a reliable socio-economic profiling framework or affluence measurement tool to underpin consumer insights. There was no basis for affordability-based segmentation and no reliable market evaluation framework available in the public domain. This situation greatly limited the usefulness and applicability of other consumer data collected. This study aimed to explore the apparent methodology gap left by traditional socia/demographic methods of market evaluation and segmentation that were not optimally effective in the sub- Saharan environment and conditions. The need to explore this knowledge shortfall further in this study stemmed from a lack of research and empirical work that could have perhaps illuminated a more effective and more appropriate measurement tool developed in the same way for as many countries in sub- Saharan Africa as possible. It was very important to be able to effectively stratify the regions markets based on wealth, affluence or standard of living. The main aim of this thesis therefore, was to explore and develop an effective and reliable market evaluation and segmentation method in the form of a measure of the poverty/affluence level of the individual sub-Saharan countries, as well as the entire African sub-region. This measure was to act as a surrogate for SES group or income.