A Cluster-Based Comparative Analysis of Economic Conditions and Consumer Spending Patterns in Cameroon and Nigeria

Abstract

This study examines the relationship between economic conditions and consumer spending patterns in Cameroon and Nigeria, two of sub-Saharan Africa's largest economies. Using a quantitative, cross-national survey design, the research surveyed 750 respondents (370 from Cameroon, 380 from Nigeria) across major urban centres to assess their economic perceptions and spending behaviours. The study employed Kolmogorov-Smirnov normality testing, K-means clustering, one-way ANOVA, and CHAID decision tree analysis to identify distinct consumer segments and key factors influencing spending behaviour. Three consumer clusters emerged: "Cautious Spenders" (32.7%), "Inflation-Conscious Consumers" (37.1%), and "Optimistic High Spenders" (30.2%), each characterised by unique economic perceptions and spending patterns. Job security perception emerged as the primary factor differentiating consumers between the two countries (F(2,747) = 929.725, p < .001, η² = .713), with Nigerians showing more polarised perceptions compared to Cameroonians. Despite an overall economic optimism across both countries, reflected in high mean scores for economic outlook (M = 4.79, SD = 0.71) and economic stability perception (M = 4.64, SD = 0.85), the study revealed nuanced differences in how economic factors influence spending, particularly on essential goods. The findings suggest that while there are similarities in consumer behavior between Cameroon and Nigeria, significant differences exist that transcend national boundaries. These insights challenge the notion of homogeneous national markets and highlight the need for segmented approaches in marketing and economic policy. The study contributes to the growing body of research on consumer behavior in developing economies and provides valuable insights for businesses and policymakers operating in these dynamic African markets. It underscores the importance of considering economic perceptions in understanding consumer spending patterns in sub-Saharan Africa. Businesses operating in these markets should prioritise consumer cluster profiles over country-level generalisations, directing value-and-security messaging at Cautious Spenders and inflation-hedging positioning at Inflation-Conscious Consumers.