Master's – Middle class: segmentation and comparative analysis of household budget allocation in Brazil

Tipo de evento: 
Data e hora: 
27/11/2019 - 14:00 to 17:00


Bárbara Silva Garcia

Master's – Middle class: segmentation and comparative analysis of household budget allocation in Brazil

Advisor: Prof. Dr. Paulo Roberto Feldmann

Comission: Profs. Drs. José Afonso Mazzon, Abrão Caro and Mateus Canniatti Ponchio 

 Class: 217, FEA-1


The middle class is approximately half of the Brazilian population, which indicates the relevance of this globally recognized segment of demand for its potential to drive growth in emerging countries. However, despite being a commonly used term, it presents many variations and complexities of definition according to the perspective of the analysis. In order to identify the pattern of consumption through household budget allocation, this study considers the economic classification for the middle class based on the consumption potential of Brazilian households. Thus, a first segmentation analysis, differentiating budget allocation for eleven categories (household supply, transportation, leisure, health, education, communication, household bills, out-of-home food, financial investments, clothing and beauty), presents three groups ordered by per capita income in upper (C1), middle (C2) and lower (C3) middle class. The lower middle class emerges as the most representative group, with 52% of households. From the identified groups, comparisons are made for the mentioned budget spending categories identifying the similarities and differences in their allocation within the middle class groups and between upper and lower classes, results show that when there is an increase in the economic hierarchy not always there is an increase in the level of spending for all categories and, on the other hand, a lower class may have higher spending than the higher purchasing power classes for some categories. Finally, opinions are raised about future concerns and consumption expectations after the crisis period for a more complete understanding of middle class purchasing behavior in Brazil.

*Abstract provided by the author



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