EDWARD'S LECTURE NOTES:
More notes at http://tanguay.info/learntracker
C O U R S E 
Subsistence Marketplaces
Madhu Viswanathan, University of Illinois at Urbana-Champaign
https://www.coursera.org/course/subsistence
C O U R S E   L E C T U R E 
Low Literacy's Effect on Consumer Behavior
Notes taken on January 13, 2015 by Edward Tanguay
low literacy and consumer behavior
for those with low literacy it is difficult to:
locating the product
when you can't read, it takes a long time just to find the product, so when you find one, you buy it without deciding if it is the best one
locating the right price
there are many prices:
regular price
sale price
price per kilogram
item price for bundled products
locate correct packages
you need 150 candles
there are packs of 10 and 100 and individual candles all with different prices
computing the price
if one item costs $1.50, how much do two cost, or twelve?
what is the price if it is 20% off?
computing total cost on a shopping trip
allowing for taxes if necessary
one is afraid that one won't have enough money for the taxes
nutrition labels
how people think in low literacy consumer markets
concrete reasoning
reduce their habits to simple rules
look to see what costs most, what costs less, and get the one that costs less
low-literate adults display concrete, context-dependent thinking
people with low literacy have problems with abstractions
don't see three products and understand that they are related
often don't think in terms of "tools" but "hammer" and "saw"
see one product and imagine a concrete use for it in their lives
interest rates have to be explained in terms of currency units
"state of health" is an abstraction
low literate people may see health simply as either "in hospital" and "out of hospital"
"nutrition" is an abstraction
pictographic thinking
they can remember the brand logo and brand name as an image, and then either buy that product again or not
those with a very low literacy level cannot even read numerals
but almost all people can tell a higher number from a lower number
they don't think of how much sugar they need in terms of units of measurements or price per unit
they think of themselves backing a cake and how much sugar they pour into the bowl
if you want to understand people living in subsistence and design solutions for them, you have to understand how they think