It was the relative newcomer to the group who thought that it was time for the discussions to cover a wider spectrum of subjects. He was immediately reminded that the core subject discussions virtually always start off in a direction that appears to be very far removed from either economics or even local government, while at the same time they start off with emotional matters that are very local and then end with broad generalisations.

However, out of curiosity, the pipe-smoker asked what it was that needed to be discussed on that pleasant morning. The reply was short and simple: Whether they were aware that nearly every product that is to be found on the shelves of the supermarkets has been placed there after extensive market research has been done. This market research includes aspects that touch on the income levels of the customers as well as their tastes regarding a wide variety of everyday characteristics such as their educational levels, their residential areas, their ages and so on.

The major basis of all of these matters is the LSM number. He went on to explain that this number represents their Lifestyle Measurement category. These numbers start at 1 and go up to 10 and represent the level of lifestyle of the persons involved. The questions then came thick and fast especially regarding the origin of these numbers and also who compiles them. It was explained that market research companies do all kinds of research about the various lifestyles that are found in any community. Obviously they start with analysis of census data and then analysis of the income tax data. Quite often students at universities are tasked by their lecturers to do specific research in a particular area.

Following these researches, the manufacturers of consumer products find other persons who offer their services for information regarding the way in which the products are packaged and finally placed on the shelves. This strategy is obviously directed at the consumer who visits that supermarket and that is why products are placed at eye level or at the level where small children can see or grasp the product.

But, just before anyone could ask why they were discussing these matters while services that are delivered by local governments are not available at supermarket shelves, the answer to the original question was suggested.

The quick answer was that the behaviour of the customer was influenced by the LSM characteristics of the particular customer. This procedure was elaborated as to be generally applied and that customers fit in particular niches and that the economy is made up of a number of niches.

At this point, a question was posed regarding the fact even local governments could be categorised as representing a particular niche, however, there was no number similar to the LSM numbers that apply to customers at supermarkets. The pipe-smoker then expressed the view that when the rating agencies allocate a triple A or lower rating to a local government (based on their debt to assets ratio) the end result is the same, as the action is based on a number compiled by someone else. It is similar insofar as any investor, which could include a pension fund or a life insurance company or even a special investment fund that is quoted on the Johannesburg Stock Exchange, takes his decision after referring to a number. These various rating numbers could in fact be seen to serve the same purpose as the LSM number because it influences the way in which the customer (or investor) spends (or invests) his money.