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1
Jebarajakirthy, Charles, and Paramaporn Thaichon. "Marketing microcredit to bottom of the pyramid market." International Journal of Bank Marketing 34, no. 2 (April 4, 2016): 191–215. http://dx.doi.org/10.1108/ijbm-12-2014-0176.
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Purpose – The leading multinational companies tend to expand their marketing activities to bottom of pyramid (BOP) market. The BOP market comprises many segments, however, little is known about the purchase behaviour of BOP market or segments therein. Microcredit provides credit access to customers in BOP market. The purpose of this paper is to investigate youth’s intentions of obtaining microcredit in the post-war era, which could be a segment of BOP market. Design/methodology/approach – The sample comprised 1,250 youth aged 18-27 selected from the Northern Province of Sri Lanka. Surveys were administered for data collection. After testing measurement model, two structural models – full model and non-mediated model (direct effects model) were run to test hypotheses. Findings – Positive affect, subjective norms, entrepreneurial desire and self-identity enhanced intentions of obtaining microcredit, whereas perceived deterrents reduced those intentions. Additionally, self-identity mediated the association between positive affect, entrepreneurial desire, perceived behavioural control and knowledge of microcredit, and intentions of obtaining microcredit. Research limitations/implications – This study was conducted amongst youth in one country. Also, the data were cross-sectional. Hence, the model needs testing with youth and adults in other post-war contexts and with longitudinal data. Practical implications – The findings of this study inform how effectively microcredit can be marketed to youth in post-war contexts and to the other segments of BOP market. Originality/value – A unique purchase behavioural model is suggested with the mediating role of self-identity, to enhance intentions of obtaining microcredit in BOP markets, such as youth in post-war contexts. This study contributes to literature relating to purchase behaviour and self-identity, with particular reference to BOP market.
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Pizzagalli, Lisa, Akshit Sharma, and Dana-Nicoleta Lascu. "Marketing at the Bottom of the Pyramid: Serving, and in the Service of Low-Income Consumers." Innovative Marketing 14, no. 2 (August 14, 2018): 35–40. http://dx.doi.org/10.21511/im.14(2).2018.04.
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Most academic studies in marketing have focused on advanced economies and fast-developing, large emerging markets (Sharma & Lascu, 2018). Until recently, only a few marketing studies have addressed subsistence markets; yet, there are over 4 billion bottom-of-the-pyramid (BOP) consumers living below less than 1.25 dollars a day in underserved areas worldwide (Kaplinsky, 2011; Sharma & Lascu, 2018). The present study attempts to bridge the gap in the literature by providing a comprehensive review of the theory and practice addressing the subject of marketing at the bottom of the pyramid, focusing on marketing approaches to BOP consumers that both efficiently sell products to this market and enrich their quality of life. The study suggests that selling products to the bottom of the pyramid may be profitable, but companies must be creative in their approach to formulating marketing strategies in order to engage BOP consumers and earn a profit. Marketers should also cater to BOP consumers’ needs in order to foster strong and enduring relationships.
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Ladd, Ted. "Business models at the bottom of the pyramid." International Journal of Entrepreneurship and Innovation 18, no. 1 (January 11, 2017): 57–64. http://dx.doi.org/10.1177/1465750316686242.
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Social enterprises serve distributed electricity to the bottom of the world’s economic pyramid (BoP), where 4 billion people live on less than US$2 per day and 1.6 billion lack access to electricity. Current mainstream theories of business models do not fully explain the logic by which these ventures create and capture value. Through interviews with 30 practicing entrepreneurs selling distributed electricity directly to rural BoP consumers, we employ grounded theory to derive a new framework of business models for the BoP that embeds the venture’s offering into the context of the marketplace, including the consumer’s social network, daily habits, mental models, and product constellations. This framework also incorporates affordability and the influences of government regulation. With further research, several of the concepts proposed in this framework might also apply to business models in other BoP sectors and in developed, mature, competitive markets.
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Agnihotri, Arpita. "Responsible innovation at the bottom of the pyramid." Journal of Business Strategy 38, no. 3 (May 15, 2017): 40–47. http://dx.doi.org/10.1108/jbs-02-2016-0018.
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Purpose This paper aims to explore various routes through firms can meet needs of the Bottom of the Pyramid (BoP) consumers in a socially responsible manner. Design/methodology/approach This is viewpoint paper based on evidences from archival sources. Findings The authors list possible and divergent answers to the following question: how to make innovations meaningful at BOP so that they can be acclaimed socially responsible for the BoP consumers. Originality/value Responsible innovation is yet unexplored part of business strategy especially in emerging markets. The authors throw light on this aspect.
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Rabino, Samuel. "The bottom of the pyramid: an integrative approach." International Journal of Emerging Markets 10, no. 1 (January 19, 2015): 2–15. http://dx.doi.org/10.1108/ijoem-08-2012-0081.
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Purpose – The purpose of this paper is to examine the concept of the bottom of the pyramid (BOP) in the context of the knowledge economy. Design/methodology/approach – A conceptual approach integrating the BOP perspective, diffusion of innovations, and the new product development process. Findings – This paper structures a framework that might be helpful in advancing the competitiveness and product development capabilities of multinationals. Practical implications – The paper provides managers of multinational companies with an organized way of evaluating opportunities in BOP markets in the context of a global knowledge economy. Originality/value – The paper incorporates ideas and theories from three business and marketing fields into a framework that could be used as basis for an action plan.
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Rajagopal. "Branding paradigm for the bottom of the pyramid markets." Measuring Business Excellence 13, no. 4 (November 13, 2009): 58–68. http://dx.doi.org/10.1108/13683040911006792.
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PurposeThis paper aims to deliver new models of brand management in bottom‐of‐the‐pyramid (BoP) markets, considering the personality traits, image, technology and reputation of firms associated with the brands.Design/methodology/approachReviewing the previous research studies, the paper advocates new strategies for enhancing the performance of global brands in BoP market segments, improving brand‐positioning approaches, measuring brand performance and consumer value, evaluating brand attributes, and underlining brand dynamics in the competitive marketplace.FindingsThe study argues that the performance of global brands in low‐profile consumer market segments is constrained by high transaction costs and coordination problems along the brand promotions, consumption and consumer value chain. Hence, firms looking towards managing brands in BoP market segments need to reduce brand costs by increasing the volume of sales and augmenting consumer value. Brands of BoP market segments are socially and culturally embedded. They are co‐created by consumers and firms, and positioned with the influence of brand equity of the premium market. Unlike traditional brands, BoP brands may be sufficiently malleable to support brand interpretations in the rural and suburban consumer segments.Research limitations/implicationsAcquired brands need to be merged into the existing structure, especially where these brands occupy market positions similar to those of existing brands. A balance needs to be maintained between the brand name and its equity. Managers should keep themselves better informed about consumer needs, market changes and company initiatives, thereby enabling staff to help consumers to improve service quality, which in turn can improve market positioning.Practical implicationsIn today's rapidly changing product markets, a firm needs to focus on a limited number of strategic brands in international markets in order to consolidate and strengthen its position and enhance brand power. The paper offers new business strategies to managers on brand positioning and targeting in suburban and rural markets with convenience packaging, pricing and psychodynamics.Originality/valueNew initiatives to manage global brands in BoP markets comprising suburban and rural markets that need to be implemented in the existing organizational culture are discussed.
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Ahrens, Fred, David Dobrzykowski, and William Sawaya. "Addressing mass-customization trade-offs in bottom of the pyramid markets." International Journal of Physical Distribution & Logistics Management 49, no. 5 (June 14, 2019): 451–72. http://dx.doi.org/10.1108/ijpdlm-02-2018-0048.
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Purpose Manufacturers find bottom of the pyramid (BOP) markets challenging to serve due to low margins and highly localized needs. As such, residents in BOP markets often go without products commonly available in developed countries. Going without medical equipment may negatively affect healthcare services. This study develops a supply chain design strategy that supports the production of medical equipment by preserving variety flexibility at low volumes that stands to create new market opportunities for manufacturers and improve healthcare for residents in BOP markets. Design/methodology/approach The authors introduce a mass-customization model called options-based planning (OBP) which offers a framework to both leverage the efficiencies of high volume production models and provide products that are customized to local market needs. An empirical simulation, grounded in data collected from a large international manufacturer of magnetic resonance imaging (MRI) equipment, illustrates how an OBP production strategy will likely perform under BOP conditions and facilitate the delivery of healthcare equipment to BOP markets. Findings OBP provides a means for manufacturers to provide the customization necessary to serve fragmented BOP markets, while enabling higher production volume to make serving these markets more feasible. The empirical simulation reveals the relative benefits of OBP under conditions of forecast uncertainty, product complexity (number of design parameters) and different levels of responsiveness. Social implications Increased access to modern medical equipment should improve healthcare outcomes for consumers in BOP markets. Originality/value The MRI context in BOP markets serves to illustrate the value of the OBP model for manufacturers.
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Mathur, Mahima, Ritu Mehta, and Sanjeev Swami. "Developing a marketing framework for the bottom of the pyramid consumers." Journal of Advances in Management Research 17, no. 3 (April 28, 2020): 455–71. http://dx.doi.org/10.1108/jamr-01-2020-0015.
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PurposeThis paper develops a comprehensive marketing framework that firms could use as a foundation for developing a successful business model that ensures sustainability in BOP markets.Design/methodology/approachThe study employs a qualitative research approach based on semi-structured in-depth interviews with founders or senior managers of Indian firms who have been successfully operating in the Indian BOP market. The data is then systematically coded and categorized with the help of software to get better insights.FindingsThe findings of the paper indicate that although the traditional 4As of marketing are important, they do not explain the success of firms adequately. Based on the findings of the interviews, we propose an 8A model that comprises the original 4As along with adaptability, assistance, action innovation and accelerating scale.Practical implicationsThe proposed 8A framework would be useful for domestic and multi-national firms aiming to make a foray into the Indian BOP market.Originality/valueThe paper contributes to the literature on the BOP market by identifying the factors important for succeeding in the BOP market. It builds on the 4A model to propose 8As marketing framework in the context of BOP markets.
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Chatterjee, Suparna. "Engaging with an emergent metanarrative: A critical exploration of the BOP proposition." Organization 21, no. 6 (July 19, 2013): 888–906. http://dx.doi.org/10.1177/1350508413494435.
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Recently, market-based strategies for poverty alleviation have emerged central to discourses on global poverty. One of the main proponents of market oriented strategy for poverty eradication was C. K. Prahalad whose publication Fortunes at the Bottom of the Pyramid paved the way for future work on business and poverty. It is curious that despite widespread discussions on the validity and relevance of the Bottom of the Pyramid (BOP) proposition by supporters and critics, there has been little sustained analysis of the foundational ideas, concepts and themes as outlined in the original BOP proposal. While by no means representative of the entire BOP field, Prahalad’s ideas deserve close attention because they provides the enabling conditions for the emergence of what I identify as the BOP ‘metanarrative’. In this article, I engage critically with Prahalad’s BOP proposition to highlight some of the theoretical and conceptual issues at stake in the BOP arguments. Specifically, I look at how globalization, partnerships, informality and enterprise, among others, are mobilized to accommodate and legitimize market development at the bottom of the pyramid. I conclude the article by emphasizing that the BOP project would be well served if it engaged in critical self-reflection as it may help to orient future iterations of the BOP strategy in ways that are less celebratory and more circumspect about the possibilities and potentials of linking the pursuit of profit with the goals of poverty relief and empowerment.
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Tate, Wendy L., Lydia Bals, and Donna Marshall. "Supply chain management at the base of the pyramid." International Journal of Physical Distribution & Logistics Management 49, no. 5 (June 14, 2019): 438–50. http://dx.doi.org/10.1108/ijpdlm-06-2019-390.
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Purpose The purpose of this paper is to compile a set of articles tackling supply chain issues in BOP contexts that address both demand and supply. Solutions are needed for global sustainability problems from medical aid and food availability to the ability to participate in supply chains for the global poor. Design/methodology/approach The accepted articles in the special issue used a range of qualitative and quantitative methodologies to answer research questions in a variety of base of the pyramid (BOP) contexts. These approaches and results distinguish between demand (BOP market) and supply, or base of the chain (BOC), perspectives. Findings The findings in the eight accepted marticles are interesting and applicable across different BOP contexts. Compilation of the articles into the special issue and the accompanying editorial led to a comprehensive future research agenda that addresses demand-side issues by investigating the customers in BOP markets, and supply-side issues focusing on the suppliers and intermediaries (BOC) who supply BOP markets. Future research ideas include a focus on supply chain design issues situated at the intersection of the demand (BOP) and the supply (BOC) concerns that address the needs of the world’s poorest populations. Research limitations/implications All of the selected articleshave societal implications related to addressing the needs of BOP populations. Many of these articles also have economic and environmental implications, the other two pillars of the triple bottom line. The detailed future research agenda developed in this editorial presents implications for researchers working in emerging and BOP communities to push research forward and further develop the foundational literature in the BOP context. Practical implications From a practical standpoint, each of the eight articles presents ideas for businesses that help address the needs of the global poor while enhancing global sustainability performance. The editorial summarizes these implications and provides new directions and examples of success in the BOP context. Managers are provided with techniques to address the supply and demand side of these growing markets. Originality/value The overall conceptual framework and positioning of the final papers into the BOP market, BOC suppliers and a combination of the two is novel and helps provide guidance to both scholars and managers.
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Hasan, Md Rajibul, Ben Lowe, and Mizan Rahman. "Visual cues and innovation adoption among bottom of the pyramid consumers." Qualitative Market Research: An International Journal 20, no. 2 (April 10, 2017): 147–57. http://dx.doi.org/10.1108/qmr-04-2015-0032.
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Purpose This paper aims to explore how visual comprehensibility of a product can affect innovation adoption among the bottom of the pyramid (BOP) consumers in Bangladesh. Design/methodology/approach This is an exploratory qualitative study based on interviews with eight managerial respondents involved in the design and marketing of innovative products targeted at BOP consumers in Bangladesh and three respondents who are consumers of these products. Findings One key finding from this research, in comparison to innovation adoption research in developed contexts, is the distinct importance that BOP consumers attach to visual cues in learning about and understanding a new product. Practical implications This research provides guidance for private and public sector organisations selling products and services to BOP consumers explaining the role of visual cues in generating better product comprehension. It also identifies the role of social relations in facilitating the adoption of new products within this segment. Social implications By enhancing the adoption of so-called pro-poor innovations, this research can assist in bringing about positive social change and developmental benefits in this burgeoning segment of the market. Originality/value This is one of the first studies to consider innovation adoption of pro-poor innovations in BOP markets and one of the first studies to collect data on the role of visual comprehensibility for consumers in BOP markets.
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Hussain, Mehdi, Abu Taher Mollik, Rechel Johns, and Muhammad Sabbir Rahman. "M-payment adoption for bottom of pyramid segment: an empirical investigation." International Journal of Bank Marketing 37, no. 1 (February 4, 2019): 362–81. http://dx.doi.org/10.1108/ijbm-01-2018-0013.
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PurposeThe purpose of this paper is to examine m-payment adoption for the bottom of pyramid (BoP) segment in a developing country context.Design/methodology/approachA questionnaire was distributed to 247 BoP customers in Bangladesh. Data were analysed by employing confirmatory factor analysis and Structural Equations Modelling.FindingsThe results show that performance expectancy (PE), effort expectancy (EE), facilitating conditions (FC), habit and social influence (SI) significantly influence the BoP segment’s behavioural intention (BI). It is revealed that PE, lifestyle compatibility (LC), SI and habit have relatively stronger effects being higher predictor of intentions. Again EE and FC have relatively lower effects on m-payment BI. On the other hand, hedonic motivation (HM) and price value (PV) are two non-significant predictors of m-payment adoption.Practical implicationsThe study recommends that financial institutions, such as banks and other non-banking service firms, need to know the antecedents affecting BI suggested by the unified theory of acceptance and use of technology (UTAUT2) theory along with “LC”. This will increase m-payment adoption for the BoP segment in developing countries.Originality/valueTo the extent of researcher’s knowledge, none of the previous studies using the UTAUT2 theory to examine m-payment adoption for BoP segment. This study contributes empirical data to the predominantly theoretical literature by offering a deeper understanding of the inclusion of LC, which is one of the significant antecedents in explaining BoP segment’s m-payment adoption.
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Mulky, Avinash G. "Marketing to the Bottom of the Pyramid and subsistence markets – A research agenda." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 2 (2011): 9–14. http://dx.doi.org/10.11118/actaun201159020009.
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The concepts of Bottom of the Pyramid (BOP) and subsistence markets have attracted substantial academic and managerial attention in recent years. The BOP thesis states that there are opportunities for multinational companies to achieve significant revenues and profitability by designing and implementing marketing programs aimed at people who occupy the lowest tier in the world’s economic pyramid. The number of people in this segment has been estimated to be between 2.7 billion and 4 billion. This paper reviews the academic literature on BOP and subsistence markets and identifies important issues related to marketing to these consumers. The review is based on journal articles that have appeared in peer-reviewed journals and on case studies published by reputed academic institutions. The literature review first identifies a number of business issues like size of BOP market, motivations for undertaking BOP initiatives, ethics and linkages. Then specific marketing issues related to the BOP segment such as consumer analysis, company analysis, collaborators, competition and context, segmentation and positioning and issues relating to marketing program design and implementation are analyzed. Based on this analysis, the paper develops a research agenda for future research on BOP and subsistence markets.
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Oodith, Pravina D., and Sanjana Brijball Parumasur. "Being on top of your game at the bottom of the pyramid." Corporate Ownership and Control 11, no. 3 (2014): 253–72. http://dx.doi.org/10.22495/cocv11i3c2p4.
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This paper analysed the viability of Prahalad’s Bottom of the Pyramid (BOP) proposition within the South Africa context as a mechanism to eradicate/minimize poverty by ensuring a joint collaborative effort by government, NGOs, large domestic firms, multinational corporations (MNCs) as well as the poverty stricken citizens themselves. It conceptualized the BOP proposition and, having reviewed statistics on the extent of poverty globally and in South African in particular, confirmed that the BOP is a lucrative market in the South African context. From the paper, it is evident that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of MNCs. It then reviewed Prahalad’s twelve Principles of Innovation and strategically divided these into six differentiation and six low-cost strategies. The paper concludes by articulating creative strategies (based on Prahalad’s 12 principles of innovation) for active participation and competitive advantage at the bottom of the pyramid, which are vividly presented in a model for strategic partners especially multinational corporations (MNCs) to adopt when expanding their scale of operations to incorporate the BOP market.
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Pervez, Taimoor, Alex Maritz, and Anton De Waal. "Innovation and social entrepreneurship at the bottom of the pyramid - A conceptual framework." South African Journal of Economic and Management Sciences 16, no. 5 (December 7, 2013): 54–66. http://dx.doi.org/10.4102/sajems.v16i5.628.
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The research aims to identify key success criteria for innovations by enterprises targeting the bottom of the pyramid. Innovation, social entrepreneurship and the bottom of the economic pyramid are defined in the light of academic literature and their varied criteria are explored. The two different academic opinions on fortune or opportunity existing in the BOP markets are also contrasted. The research philosophy is based on realism and the research methodology selected is inductive. The data have been collected through secondary sources using case study strategy to present four cases of innovations by social or corporate enterprises at the BOP. The case studies have been chosen from a variable range in terms of BOP countries, social enterprises and multinational companies, for-profit or not-for-profit organisations, and product or business model innovations. Success criteria identified from case studies in the light of academic literature include going beyond selling to the poor, considering BOP groups as producers and BOP engagement. A conceptual framework has been developed from identified criteria and further recommendations for empirically testing the framework to turn it into a model have been provided.
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Ahmed, Fauzia Erfan. "The Market at the Bottom of the Pyramid: Understanding the Culture of Poverty." Perspectives on Global Development and Technology 12, no. 4 (2013): 489–513. http://dx.doi.org/10.1163/15691497-12341269.
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Abstract As never before, the private sector can make a difference at the bottom of the pyramid (BOP). But little is known about who the poor really are, the environment in which they live, and how to create value for them. This also means that little is known about how to establish a business at the BOP that meets both development and profit goals. This article presents a segmentation approach embedded in a larger theory of the culture of poverty to help businesses focus on serving the BOP. I focus on examples from my research on the Grameen Bank in Bangladesh and Patrimonio Hoy in Mexico to show examples of applications of segmentation theory to businesses at the BOP.
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Oodith, Pravina D., and Sanjana Brijball Parumasur. "Tapping into the bottom of the pyramid (bop) market in South Africa: possible? And how?" Corporate Ownership and Control 11, no. 1 (2013): 280–94. http://dx.doi.org/10.22495/cocv11i1c2art6.
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Prahalad (2005) believes that the bottom of the pyramid (BOP) proposition can fulfill both the social goals of poverty eradication and the business goals of profits. The current ominous state of poverty in South Africa together with South Africa’s commitment to the United Nations Millennium Declaration to halve poverty by 2015 has motivated the researchers to consider Prahalad’s proposition of collaborating with the various constituencies including the multinational corporations (MNCs) to address the needs of the BOP market. This paper aims to evaluate the feasibility of implementing Prahalad’s Bottom of the Pyramid (BOP) proposition in the South African market and to conceptualize alternative approaches to developing marketing strategies for the South African BOP consumers. The study adopts a theoretical research study. It reviews statistics on the extent of poverty in South Africa. Arguments for and against the BOP proposition are examined and the researchers assess how the BOP proposition may work in the South African context. The secondary data indicates that the BOP is a lucrative market in the South African context. The authors conclude that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of multinational corporations (MNCs). The researchers recognize the importance of MNC’s buying into the BOP proposition from the standpoint of corporate social responsibility (CSR). They also propose a 6As Framework for the implementation of the BOP philosophy and a model for eradicating/minimizing poverty through profits.
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Jaiswal, Anand Kumar, and Shruti Gupta. "The influence of marketing on consumption behavior at the bottom of the pyramid." Journal of Consumer Marketing 32, no. 2 (March 16, 2015): 113–24. http://dx.doi.org/10.1108/jcm-05-2014-0996.
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Purpose – This paper aims to explore the nature and degree to which marketing affects consumption behavior of bottom of the pyramid (BOP) population. The objective of the study is to examine, identify and explain aspects of consumption behavior that evidences the influence of marketing practices on the BOP consumers. Design/methodology/approach – The study uses a long interview-based approach for an in-depth qualitative investigation of consumption behaviors of BOP consumers. Findings – Key findings that emerged from the research are: widespread usage of international brands and expenditure on products outside of the core bundle of consumption, susceptibility to sales promotions, need to look and feel good and use “fairness” creams, susceptibility to advertising and celebrity endorsements and influence of store personnel. Practical implications – For managers, this research suggests a careful examination of the likely consequences of their marketing actions. A set of guidelines are provided to them for doing business in a responsible manner at the BOP markets. Social implications – Recommendations for public policymakers are offered that stress on the need for ethical marketing exchanges to address the concern over possible exploitation of this vulnerable population. Originality/value – Extant literature on BOP has largely been conceptual in nature, relying on various case studies. This study empirically examines the nature and influence of marketing in the purchase behavior of BOP consumers. This is perhaps the first study providing empirical support to the argument that the poor consumers divert their scarce financial resources from fulfilling basic needs to purchasing non-essential discretionary products under the influence of BOP marketing.
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Rahman, Muhammad Sabbir, Mahafuz Mannan, and Riasat Amir. "The rise of mobile internet: the adoption process at the bottom of the pyramid." Digital Policy, Regulation and Governance 20, no. 6 (September 10, 2018): 582–99. http://dx.doi.org/10.1108/dprg-05-2018-0024.
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PurposeThe purpose of this study is to provide an insight into the adoption process of mobile internet (M-internet) among bottom-of-the-pyramid (BoP) customers.Design/methodology/approachAn empirical survey was used to test the proposed hypotheses. Data were collected from a total of 387 BoP customers from Bangladesh. PLS-SEM was applied to test the proposed model.FindingsThe findings in this study reveal that BoP customers’ life satisfaction, internet literacy, perceived usefulness and perceived ease of use significantly influence a customer’s intention to use M-internet, while these relationships are partially mediated by the attitude toward M-internet. Furthermore, price perception was found to directly influence intention to use M-internet and to have a positive moderating effect on the relationship between attitude toward M-internet and intention to use M-internet. Also, intention to use M-internet was found to have a significant influence on BoP customer’s M-internet adoption behavior.Practical implicationsThe findings of this study help to understand what drives and impedes the M-Internet adoption behavior of BoP customers in a developing country like Bangladesh.Originality/valueThis is the first study that incorporated BoP customers’ life satisfaction and internet literacy to investigate the BoP customers’ adoption process of M-internet in the context of developing countries. Overall, this study contributes to the limited literature regarding the BoP customers’ M-internet adoption behavior. The results of this study will help the M-internet service providers of Bangladesh and other similar developing countries to understand the BoP customer’s adoption process regarding M-internet to create successful policies and strategies both for the service providers and policymakers.
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Chatterjee, Suparna. "Articulating Globalization: Exploring the Bottom of the Pyramid (BOP) Terrain." Organization Studies 37, no. 5 (January 18, 2016): 635–53. http://dx.doi.org/10.1177/0170840615604505.
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Lima, Anderson Santos, and André Gustavo Carvalho Machado. "Strategic Actions for The Bottom of the Pyramid in the Housing Sector." Revista Ibero-Americana de Estratégia 17, no. 1 (November 7, 2018): 31–44. http://dx.doi.org/10.5585/ijsm.v17i1.2537.
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This article aims to analyze the characteristics of the strategic actions adopted in the housing sector in order to assist the population ranked in the Bottom of the Pyramid (BoP) market. Specifically, it aims to describe the key elements of the BoP’s commercial infrastructure and to identify the strategies adopted to attend the housing sector. The strategy used in this research was the multiple case study conducted at three firms: construction company, real state agency and banking correspondent. The evidences showed that the commercial infrastructure of the housing sector in the BoP market has similar aspects to the ones found in the main references about the theme. The strategic actions are concerned to encouraging people from the BoP market to buy their property, and the main ones are the following: risk assessment and simplified credit approval, management consulting, use of the internet and the utilization of public policy. In addition, it was observed that the Government, as it is the main external agent, plays an important part in the viability of the housing sector business in the BoP market. This study’s results advance towards identifying and understanding of the strategies adopted to attend the housing sector.
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Baishya, Kuldeep, and Harsh Vardhan Samalia. "Factors Influencing Smartphone Adoption: A Study in the Indian Bottom of the Pyramid Context." Global Business Review 21, no. 6 (August 5, 2019): 1387–405. http://dx.doi.org/10.1177/0972150919856961.
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The usage of smartphones is increasing with each passing day. The growth of wireless subscription in India in the last 5 years is very high. However, the penetration rate of smartphones among low-income people is significantly low. Looking at the near saturation and high competition of markets at the higher side of the economic pyramid, companies are trying to explore the segment of low-income people termed ‘Bottom of the Pyramid’ (BOP). In order to explore the BOP market for smartphones, one needs to realize the factors influencing the adoption of smartphones at the BOP. Our study explores these factors with reference to the existing literature of technology adoption. A theoretical framework is proposed and tested with 266 valid data points. Structural equation modelling (SEM) is used to test the proposed framework. The empirical analysis revealed that ‘performance expectancy’, ‘effort expectancy’ and ‘perceived monetary value’ have a positive impact on the ‘behavioural intention’ of using smartphones at BOP. ‘Smartphone anxiety’ and ‘smartphone self-efficacy’ are found to have an impact on ‘effort expectancy’.
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Foster, Chris, and Richard Heeks. "Innovation and Scaling of ICT for the Bottom-Of-The-Pyramid." Journal of Information Technology 28, no. 4 (December 2013): 296–315. http://dx.doi.org/10.1057/jit.2013.19.
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Scaling represents successful diffusion that ensures sizeable impact and earnings from information and communication technology (ICT) innovations in emerging markets. Practice can still be shaped by dualistic views - innovation vs diffusion, pilot vs scale-up, lead firm vs other actors, technical vs social. Synthesising the literature that challenges these dualities, this paper creates a systemic perspective that is particularly appropriate for scaling of ICT to bottom-of-the-pyramid (BoP) markets. That perspective is then instantiated through the case study of a successfully-scaled ICT innovation that has reached millions of poor consumers: the Kenyan m-money system, M-Pesa. It finds that scaling of this ICT system can be understood as a four-stage process of exploratory, incremental then aggressive growth, followed by (attempted) standardisation. Throughout these stages of scaling, ongoing adaptive innovations have been fundamental and have been both necessitated and shaped by the BoP context. These innovations have been more socio-technical than technical, and have emerged from a growing variety of actors and locations closer to poor consumers than the lead firm. The lead firm has buffered the unfamiliarity of BoP markets by approaching them through the ‘middle-of-the-pyramid’ and by intensive learning. At times, its planned ‘shifts’ in scaling strategy have triggered adaptive innovations. At other times, emergent innovations and learning lead to incremental ‘drifts’ in lead firm strategy. ICT firms wishing to scale goods and services for BoP markets must therefore recognise the multi-locational, continuous, and emergent nature of innovation, and develop processes to monitor and address those innovations.
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Howell, Rachel, Kinsuk Mani Sinha, Natascha Wagner, Neelke Doorn, and Cees van Beers. "Consumption of Bottled Water at the Bottom of the Pyramid: Who Purchases First?" Journal of Macromarketing 40, no. 1 (August 20, 2019): 31–50. http://dx.doi.org/10.1177/0276146719866890.
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While consumer and marketing research in developed markets is an established field, research on consumers in an Bottom of the Pyramid (BoP) setting is less established and mostly conceptual or qualitative. This paper examines the individual heterogeneity and the local context of BoP consumers with an empirical study on consumption of low cost bottled water on the Kenyan coast and the capitals of Uganda and Rwanda. The empirical analysis builds on existing research exploring consumer behavior, and it studies a database of 713 bottled water consumers in Kenya, Uganda and Rwanda. Consumers with a higher level of education were less likely to be late consumers. Additionally, early consumers were more likely to purchase due to a purposeful search for a bottled drinking water solution. Since we control for location specific effects we highlight the importance of supply driven consumption in the BoP market. Furthermore, the results suggest that the two water companies may not be reaching their targeted low-income consumers but rather middle class consumers. The research contributes to the larger BoP debate by presenting evidence that consumers in a BoP setting may purchase more on the basis of supply of a product rather than other socio-demographic factors such as income.
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Payaud, Marielle A., and Alain Charles Martinet1. "Stratégies RSE-BOP et Soin des Communautés Humaines. Concepts et Propositions Génériques." Management international 14, no. 2 (April 14, 2010): 31–51. http://dx.doi.org/10.7202/039547ar.
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Résumé Parmi les nombreuses pratiques de stratégies de responsabilité sociale, l’une requiert un engagement fort de l’entreprise sur le territoire, c’est-à-dire de ses compétences, de sa gouvernance et de son management : la RSE-BOP (Martinet, Payaud, 2008a, 2008b, 2009). La RSE-BOP est inspirée de « La base de la pyramide » (« Bottom of the pyramid ») de Prahalad (2004) qui désigne les 4 milliards d’individus disposant de moins de deux dollars par jour et qui suggère aux entreprises de reconsidérer ce faible pouvoir d’achat et de s’intéresser à ces nouveaux consommateurs. L’article esquisse un cadre conceptuel destiné au management stratégique de projets d’entreprise s’inscrivant dans une telle perspective. Ainsi, il présente la RSE-BOP comme une forme avancée de la RSE et une voie pour l’aide au développement des pays les plus pauvres, développe les fondements théoriques du cadre conceptuel et les conditions de mise en oeuvre d’une RSE-BOP.
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Dolan, Catherine, and Mary Johnstone-Louis. "Re-siting corporate responsibility." Focaal 2011, no. 60 (June 1, 2011): 21–33. http://dx.doi.org/10.3167/fcl.2011.600103.
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The bottom-of-the-pyramid (BOP) approach is championed as a way to deliver both corporate profits and poverty reduction. This article explores how “the poor” are repurposed as the instruments of ethical capitalism through the archetypal BOP model—Avon Cosmetics. A harbinger of “compassionate capitalism,” Avon has long stylized its entrepreneurial opportunity as a channel to a transcendent realm of self-actualization and social transformation. The company pursues this vision through a set of discourses and calculative practices that aim to produce industrious, self-disciplined, and empowered “entrepreneurs.” However, while BOP systems like Avon may provide a viable income stream for “poor” women, the practices through which women are “converted” into enterprising subjects can confound their intended “empowerment” effects. The article suggests that while targeting the “bottom of the pyramid” may elide the distinction between the maximization of profit and the imperatives of sustainable development, devolving corporate social responsibility (CSR) to the “entrepreneurial poor” raises questions about the implications of “making poverty business.”
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Dolan, Catherine, and Kate Roll. "ASR FORUM: ENGAGING WITH AFRICAN INFORMAL ECONOMIES." African Studies Review 56, no. 3 (November 20, 2013): 123–46. http://dx.doi.org/10.1017/asr.2013.82.
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Abstract:Over the last decade, the bottom-of-the-pyramid (BoP) approach has gained prominence as a tool of “inclusive” capitalism in sub-Saharan Africa. This approach reframes development as a seamless outcome of core business activities, one that can ameliorate poverty by bringing much-needed products and services to the poor and generating employment opportunities for informal and subsistence workers as “micro-entrepreneurs.” Yet while transnational capital has set its sights on Africa’s “underserved” yet potentially buoyant markets, BoP initiatives do more than seize upon the entrepreneurial talent and aspirations of Africa’s informal economies. This article argues, rather, that these initiatives create BoP economies through a set of market technologies, practices, and discourses that render the spaces and actors at the bottom of the pyramid knowable, calculable, and predictable to global business. The article describes how these technologies extend new forms of market governance over the informal poor, reconfiguring their habits, social practices, and economic strategies under the banner of poverty reduction.
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Saraswati, Dewi, and Dian Kusumaningrum. "CLUSTER ANALYSIS OF FINANCIAL BEHAVIORS AND PREFERENCES AMONG THE BOTTOM OF THE PYRAMID GROUP." Jurnal Manajemen dan Kewirausahaan 21, no. 1 (April 5, 2019): 51–63. http://dx.doi.org/10.9744/jmk.21.1.51-63.
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This study investigates the financial behavior and preferences of the bottom of the pyramid (BOP) group, and thus, contributes to the financial inclusion demand-side literature. A survey of 100 households was conducted. A cluster analysis was used to analyze the data and portray the characteristics of the BOP. Further analysis was conducted using chi-square and ANOVA tests. The results reveal three sub-groups within the BOP which consists of the very low, low, and medium. Financial behaviors are found to be indifferent among the sub-groups, except for savings allocations and financial planning. Households with a better economic condition are found to have a higher attention to use banking services. The financial literacy category indicates different attitudes in conducting long-term financial planning and service preferences. This result implies that financial literacy and adequate financial products are beneficial towards the financial inclusion of the BOP group.
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Hernandez-Cazares, Rafael, Late Lawson-Lartego, Lars Mathiassen, and Sergio Quinonez-Romandia. "Strategizing for the bottom of the pyramid: an action research into a Mexican agribusiness." Journal of Business & Industrial Marketing 35, no. 10 (September 18, 2019): 1475–89. http://dx.doi.org/10.1108/jbim-01-2019-0042.
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Purpose While recent research has established that businesses can benefit from engaging with people at the bottom of the pyramid (BOP), the authors know little about the practices that managers can use to effectively strategize this ethically sound and financially attractive proposition and turn it into new business. Design/methodology/approach To address this gap, the authors reported on an action research study in which the authors collaborated with a major Mexican agribusiness, ANSA, to expand its market through value co-creation with the country’s poorest farmers. To shape the strategizing, the authors combined dynamic capability theory and options theory, and the authors used the asset hexagon framework to understand the BOP population’s needs. Findings The authors offer a detailed account of how ANSA’s management team collaborated downstream with distributors and farmers and upstream with suppliers to grow a new micro-franchise business that increases the well-being of the poorest farmers and creates additional business opportunities. The research describes how firms can strategize and implement new business ventures for co-creating value with the BOP population. The results are a process model and related propositions for strategizing value co-creation with BOP. Originality/value The authors offer new empirical insights, a grounded process model and model-related propositions on strategizing BOP options. As such, the study contributes to the BOP literature by joining critical ethics with actionable knowledge of how such efforts may unfold and by demonstrating how theory may be enacted and developed in the process.
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Acheampong, George, Mahama Braimah, Daniel M. Quaye, and Samuel Kwasi Buame. "Impact of Demographic Factors on Technological Orientations of BOP Entrepreneurs in Ghana." International Journal of Innovation and Technology Management 11, no. 06 (November 25, 2014): 1450037. http://dx.doi.org/10.1142/s0219877014500370.
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The study explores relationship between technological orientations and demographics of bottom of the pyramid (BOP) entrepreneurs in Ghana. The study reviewed literature on the BOP concept. Based on the reviewed literature, hypotheses were developed for testing. Data was collected from 287 micro-entrepreneurs using a structured questionnaire. The data collected was analyzed using the analysis of variance (ANOVA) and regression analysis. The study found some relationships between technology acceptance, connectivity to networks and entrepreneurial demographics. This provides the information necessary for information communications technology (ICT) and technology companies seeking to expand to these new markets as top of the pyramid markets saturate.
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Nobre, Farley Simon, and Rodrigo Morais-da-Silva. "Capabilities and Organization Typology of Bottom of the Pyramid (BoP) Systems." Academy of Management Proceedings 2018, no. 1 (August 2018): 17595. http://dx.doi.org/10.5465/ambpp.2018.17595abstract.
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Angot, Jaques, and Loïc Plé. "Serving poor people in rich countries: the bottom-of-the-pyramid business model solution." Journal of Business Strategy 36, no. 2 (April 20, 2015): 3–15. http://dx.doi.org/10.1108/jbs-11-2013-0111.
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Purpose – The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries. Design/methodology/approach – This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources. Findings – The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitations and advantages of this transposition are also detailed. Research limitations/implications – A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries. Practical implications – Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function. Originality/value – Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.
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Wang, Li Ping, and Xue Jie Hu. "The Mining and Developing Research for BOP Market." Advanced Materials Research 798-799 (September 2013): 893–96. http://dx.doi.org/10.4028/www.scientific.net/amr.798-799.893.
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Since The Bottom of Pyramid Strategy has been put forward, enterprises began to pay close attention to this untapped market with potential. But how to dig the potential of BOP market, design the product that BOP groups really need, and open the BOP market, are problems that should be solved. This paper discussed the mechanism of mining and developing the BOP market with the orientation of value. The results of the study is that the mining and developing of BOP market is essentially the process that enterprises found value, put forward the value proposition, reconstruct the value network ,create value , deliver value and realize value.
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Otiti, Naome, Kjetil Andersson, and Roy Mersland. "Is employee-client matching good for firms targeting the bottom of the pyramid? A study of microfinance institutions." International Journal of Development Issues 20, no. 1 (February 5, 2021): 1–23. http://dx.doi.org/10.1108/ijdi-04-2020-0069.
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Purpose The purpose of this study is to determine whether there exists employee-client matching at the bottom of the pyramid (BOP) and the most favourable employee-client categorization in terms of employee productivity when serving the BOP market. This is important in a bid to determine how to effectively operate at the BOP given the market’s unique characteristics. Design/methodology/approach This study uses two methods depending on the research question. First, a one-way analysis of variance (ANOVA) is used to determine the different employee-client categories based on socio-economic status. Second, fixed effects analyses are performed based on these categories to determine the most suitable employee-client category. Findings The results show the existence of employee-client matching based on similar socio-economic status. However, multivariate testing reveals that the mismatch category, where employees are of higher socioeconomic status than the clients, generates more favourable employee productivity. Moreover, this result may be contingent on the geographical location of the firm. Practical implications The findings are important for human resource management particularly the employment strategy of BOP firms. It suggests the need to consider employee profiles and client profiles when deciding which new markets to target. Originality/value The paper uses a global database of microfinance institutions as a case of BOP firms to investigate employee-client matching at the bottom of the pyramid.
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Kang, Woo-Kyu, Eun-Ju Kim, and In-Soo Han. "A Study on Bottom of Pyramid(BOP) Business Approach to Reduce Water Poverty." Journal of the Korea Contents Association 15, no. 3 (March 28, 2015): 336–51. http://dx.doi.org/10.5392/jkca.2015.15.03.336.
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Angeli, Federica, and Anand Kumar Jaiswal. "Business Model Innovation for Inclusive Health Care Delivery at the Bottom of the Pyramid." Organization & Environment 29, no. 4 (August 1, 2016): 486–507. http://dx.doi.org/10.1177/1086026616647174.
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This article investigates business models innovation for delivering health care at the base of the pyramid (BoP). The examination of six health care organizational cases suggests that co-creation of patient needs, community engagement, continuous involvement of customers, innovative medical technology, focus on human resources for health, strategic partnerships, economies of scale, and cross-subsidization are business model innovation strategies that enable inclusive health care delivery. Based on these findings, we propose a four-dimensional framework. A process of value discovery, leading BoP patients and communities to recognize a health need and seek for an acceptable treatment, precedes the identification of a successful value proposition. Value creation and value appropriation then follow to warrant patient affordability and organizational sustainability. A “business model mechanism” for BoP health care hence emerges, where interdependencies among these dimensions are highlighted. This article sheds new light on how market-based approaches can improve equitable health care access and hence contribute to poverty alleviation.
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Tarafdar, Monideepa, Ramendra Singh, and Prashanth Anekal. "Impact of ICT-Enabled Product and Process Innovations at the Bottom of the Pyramid: A Market Separations Perspective." Journal of Information Technology 28, no. 4 (December 2013): 279–95. http://dx.doi.org/10.1057/jit.2013.21.
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Innovations in products and processes enabled by ICT such as mobile phones and the Internet constitute a rapidly emerging means of market development at the Bottom of the Pyramid (BOP), which consists of people who earn less than US$2 a day. However, these ICT-enabled market development efforts have not always yielded positive developmental outcomes, in part because market development is hindered by remote location and geographic dispersion of BOP communities, their low and uncertain incomes, and informal local markets having exploitative intermediaries. These conditions imply that BOP consumers and producers are ‘separated’ from marketers and customers, respectively, through physical distance, lack of financial ability, and information asymmetry. The paper examines the question: How do ICT innovations in products and processes impact development at the BOP? Drawing perspectives from the information systems (IS) and marketing literatures, we analyze how and why ICT-enabled innovations in products and processes deployed for market development at the BOP, enable developmental outcomes through reduction of market separations. Analyzing qualitative data gathered from interviews with 33 respondents in India, including BOP individuals, social entrepreneurs, and managers from private organizations, we find that ICT-enabled product and process innovations do have the potential to reduce four types of separations that ‘disconnect’ BOP consumers (producers) from marketers (customers). However, situated social conditions influence the impact of ICT innovations on reduction of separations. The reduction of separations leads to developmental outcomes at the BOP. Implications of our findings for theory, practice, and policy are discussed.
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Angeli, Federica, Shila Teresa Ishwardat, Anand Kumar Jaiswal, and Antonio Capaldo. "Socio-Cultural Sustainability of Private Healthcare Providers in an Indian Slum Setting: A Bottom-of-the-Pyramid Perspective." Sustainability 10, no. 12 (December 10, 2018): 4702. http://dx.doi.org/10.3390/su10124702.
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Delivery of affordable healthcare services to communities is a necessary precondition to poverty alleviation. Co-creation approaches to the development of business models in the healthcare industry proved particularly suitable for improving the health-seeking behavior of BOP patients. However, scant research was conducted to understand BOP consumers’ decision-making process leading to specific healthcare choices in slum settings, and the relative balance of socio-cultural and socio-economic factors underpinning patients’ preferences. This article adopts a mixed-method approach to investigate the determinants of BOP patients’ choice between private and public hospitals. Quantitative analysis of a database, composed of 436 patients from five hospitals in Ahmedabad, India, indicates that BOP patients visit a public hospital significantly more than top-of-the-pyramid (TOP) patients. However, no significant difference emerges between BOP and TOP patients for inpatient or outpatient treatments. Qualitative findings based on 21 interviews with BOP consumers from selected slum areas led to the development of a grounded theory model, which highlights the role of aspirational demand of BOP patients toward private healthcare providers. Overall, healthcare provider choice emerges as the outcome of a collective socio-cultural decision-making process, which often assigns preference for private healthcare services because of the higher perceived quality of private providers, while downplaying affordability concerns. Implications for healthcare providers, social entrepreneurs, and policy-makers are discussed.
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Chatterjee, Suparna. "A suitable woman: The coming-of-age of the ‘third world woman’ at the bottom of the pyramid: A critical engagement." Human Relations 73, no. 3 (March 27, 2019): 378–400. http://dx.doi.org/10.1177/0018726719828445.
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While the slogan ‘Make Poverty Business’ has become integral to neoliberal discourses on global poverty management, what often goes unremarked is the role of women, especially poor third world women in profitable poverty ventures. Taking the ‘Bottom of the Pyramid’ (BOP) approach as an entry point, the present article brings into sharpened focus the centrality of poor third world women in the ‘global order of poverty management.’ Drawing on Foucaultian notions of problematization, combined with feminist insights on the stakes involved in instrumentalizing women and their subjectivities, and a Marxist-inspired notion of immaterial labor, the article examines how poor third world women are incorporated into profitable poverty eradication ventures. I argue that the construal of poor third world women as knowable objects of knowledge and entrepreneurial subjects remains at the heart of the BOP programmatic. Where, at one level, poor third world women’s participation lends ethical credence to the BOP projects; at another level, their immaterial labor helps to build ‘economies of affect’ at the bottom of the pyramid. Located at the intersection of neoliberalism and feminism, the article aims to add to the ongoing debates on the uneasy proximity between women’s empowerment and ‘neoliberal reason.’
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Irugalbandara, T. C., and M. S. D. Fernando. "Context aware adaptive mobile learning framework for bottom of pyramid people (BOP)." International Journal of ADVANCED AND APPLIED SCIENCES 6, no. 12 (December 2019): 27–40. http://dx.doi.org/10.21833/ijaas.2019.12.004.
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Hassan, Nurbani Md, Noor Ashikin Mohd Rom, and Al-Mansor Abu Said. "Micro-Franchising for People at the Bottom of Pyramid (BOP) in Malaysia." Advanced Science Letters 22, no. 12 (December 1, 2016): 4564–67. http://dx.doi.org/10.1166/asl.2016.8222.
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Chikweche, Tendai, and Richard Fletcher. "Franchising at the Bottom of the Pyramid (BOP): an alternative distribution approach." International Review of Retail, Distribution and Consumer Research 21, no. 4 (September 2011): 343–60. http://dx.doi.org/10.1080/09593969.2011.588717.
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Ganapathy, Venkatesh. "AN INCLUSIVE STRATEGY FOR THE POOR FINDS WIDER APPLICATIONS." Journal of Global Economy 14, no. 1 (November 8, 2018): 76–87. http://dx.doi.org/10.1956/jge.v14i1.485.
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It took almost four years for the academic effort of C K Prahlad and Stuart Hart to be recognized as fit for publication by Harvard Business Review. The path-breaking research by the duo has received wide acclaim and has led to multinational corporations using the strategy as part of their efforts to grow their business footprint by also focusing on the bottom of the pyramid (BOP) segment of the market. In their research, Prahlad and Hart pointed out the companies were losing a greater pie of the market by not focusing on developing products for the poorest of poor. They highlighted the need for a strategy to exploit the fortune at the bottom of the pyramid.
The research on the BOP strategy has evolved over the years. The research has also been subject to criticism from some quarters as a strategy that exploits the poor and is imperialistic by nature. Organisations have achieved success with BOP strategy. However, there are also organizations that have faced failure with this strategy.
This case study traces the journey of the evolution of the BOP strategy over the years and documents the lessons that one can learn from failure in its implementation. Understanding the BOP market and educating the poorest consumers through unconventional means is a critical success factor. Profit cannot be the sole driver for successful implementation of BOP strategy as social and environmental obligations have to be met. The trade-off between profitability, scale, and nonprofit obligations is a tightrope for organizations attempting to garner a slice of the BOP market share. Community involvement is a crucial determinant of success as well.
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Broeksma, Maaike, and Bart Jan Willem (Bartjan) PENNINK. "Integrating general and local context-dependent factors into a framework for analysing business sectors in Bottom-of-the-Pyramid emerging markets." Central European Review of Economics and Management 5, no. 2 (June 21, 2021): 85–118. http://dx.doi.org/10.29015/cerem.913.
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Aim: This paper investigates how a framework for analysing business sectors in emerging markets looks like when taking into account the local context-dependent and general factors of The Bottom-of-the-Pyramid (BoP). The BoP segment in emerging markets represents a major growth potential for firms, including multinational enterprises (MNEs) from developed countries. However, the continued lack of success of MNEs in these markets has shown that generic one-size-fits-all strategies for the BoP are not appropriate as BoP contexts differ between countries.
Design / Research methods: The sample that was selected for the research includes two non-governmental organizations (NGOs) related to the BoP and eight managers at MNEs with activities in the BoP have been interviewed in a semi-structured manner to collect rich data.
Conclusion / findings: By interviewing eight managers at MNEs with activities in the BoP and two NGOs related to the BoP, an additional analysis, BoP-orientation, and further extensions to the original analyses are being presented. This results in an advanced framework for analysing business sectors in emerging markets.
Originality / value of the article: Current frameworks for analysing business sectors in emerging markets do take into account inter-country differences but fail to recognize intra-country differences, which causes them to fall short on their applicability to the BoP. This paper fills the gap how frameworks for analysing business sectors in emerging markets can be made applicable for the BoP by taking into account both the local context-dependent and general factors of a BoP-market to analyse it for opportunities, threats, and eventually and strategic entry mode.
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Lappeman, James, Joel Chigada, and Pragasen Pillay. "Rethinking share-of-wallet at the bottom of the pyramid: using financial diaries to observe monthly category trade-offs." Journal of Consumer Marketing 36, no. 1 (January 14, 2019): 50–63. http://dx.doi.org/10.1108/jcm-11-2017-2438.
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PurposeThis study provides empirical evidence for the impact that income and expenditure fluctuations have on understanding the fundamentals of BoP household share-of-wallet in South Africa.Design/methodology/approachThe study used a longitudinal financial diary methodology to record household income in 80 households (in four different geographic areas) over four monthly waves.FindingsThe study showed the lack of reliability of aggregated population income and expenditure surveys when understanding the specific behaviour of BoP households. The study concludes that major category trade-offs occur on a monthly basis, and that these trade-offs directly impact our fundamental understanding BoP SoW.Originality/valueWhile the BoP consumer theory is developing (especially in the last decade), most of the theory is focused on development and business strategy. Empirically based consumer theory is noticeably lacking, given that the BoP is the largest population segment on earth. In addition, research is largely absent of highly rigourous and in-depth quantification of consumer SoW behaviour. This study contributes to the BoP theory by examining monthly fluctuations in income and expenditure, a line of analysis not done before to this extent. In doing so, the study proposes a new metric for the measurement of category expenditure as an index of the total spend.
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Sinha, Piyush Kumar, Suraksha Gupta, and Saurabh Rawal. "Brand adoption by BoP retailers." Qualitative Market Research: An International Journal 20, no. 2 (April 10, 2017): 181–207. http://dx.doi.org/10.1108/qmr-07-2014-0056.
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Purpose The purpose of this paper is to develop a framework to understand how bottom of the pyramid (BoP) retailers adopt brands who sell to a very different set of customers and are served through long indirect channels. Design/methodology/approach In this study, 60 retailers belonging to different villages of Central and North Gujarat were interviewed. The interviews were audio recorded, transcribed and analyzed. A grounded theory-based analysis was carried out. Findings The analysis brought out six criteria used by the retailers in selecting brands with demand for the brand as the most dominant factor. Other criteria included brand adoption by other retailers, profitability, influence of wholesaler/distributor and packaging. Originality/value Previous studies with regard to brand adoption by retailers have focused on large retailers who are approached directly by the brands. There is a lack of studies on how BoP retailers adopt brands. Most studies have approached the subject from a distribution perspective of reaching these markets.
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Agarwal, Nivedita, and Alexander Brem. "The Frugal Innovation Case of Solar-powered Automated Teller Machines (ATMs) of Vortex Engineering in India." Journal of Entrepreneurship and Innovation in Emerging Economies 3, no. 2 (July 2017): 115–26. http://dx.doi.org/10.1177/2393957517717895.
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Constraint-based innovations are innovations that are conceived under conditions of scarcity for resource-constrained markets, often referred to as Bottom of pyramid (BoP) marketplace. One such type of constraint-based innovation, frugal innovation (also the focus of this study) has played an important role in providing affordable and accessible products and services to the customers at BoP. This study examines one of the successful frugal innovations from the Indian financial sector called Vortex solar based transaction systems (commonly known as rural ATMs) and offers a comprehensive analysis on the incorporated bottom-up product development process and innovation drivers. Study highlights the nine specific innovative design features of these machines that were mainly designed based on core customer requirements and unique challenges. Analysis reveals the importance of cost effective, easy to operate and sustainable solutions for customers at BoP and also showcase how frugal innovations are also facilitating solutions to address larger societal problems.
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VON JANDA, SERGEJ, SABINE KUESTER, and MONIKA C. SCHUHMACHER. "A CONFIGURATIONAL PERSPECTIVE ON BoP INNOVATION CAPABILITY." International Journal of Innovation Management 25, no. 05 (February 5, 2021): 2150060. http://dx.doi.org/10.1142/s1363919621500602.
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Marketing capabilities are a major driver of competitive advantage across different business contexts. One of these capabilities is the ability to sense consumer needs and to develop innovations to meet these needs, referred to as innovation capability. Innovation holds the potential to improve the living conditions of resource-constrained consumers at the bottom of the world’s economic pyramid (BoP) in emerging markets. Surprisingly, research has failed to develop a comprehensive understanding of how firms can innovate successfully in BoP markets. Applying a configurational perspective, this study explores the organisational configurations that characterise firms that successfully develop innovations for the BoP market. Analysing data from an online survey with senior-level managers ([Formula: see text] = 245) in 10 emerging markets, the authors offer important insights for firms seeking to develop innovations for BoP consumers in terms of the specific organisational configurations that lead to BoP innovation success.
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Primus, Dirk, Justin Robinson-Howe, and Nicholas Tasca. "Utilizing PPPS as an Alternative to Entering BOP Markets: Benefits, Challenges, and Success Factors." Journal of International Business and Economy 18, no. 2 (December 1, 2017): 32–59. http://dx.doi.org/10.51240/jibe.2017.2.2.
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This paper examines public-private-partnerships (PPPs) as viable modes of entry into Bottom-of-the-pyramid (BOP) regions. BOP regions present attractive growth targets with untapped purchase power, however, recent case evidence and BOP research suggests that challenges associated with BOP regions present significant challenges for companies entering BOP regions with business-to-business (B2B) and business-to-consumer (B2C) strategies. In this paper, we concur with existing work by Vinogradov et al. (2014), which argues for PPPs as alternative modes of entry that generate mutual benefits for the regional government and the entrant. However, there is no conceptual framework that guides research and informs practitioners in this important area. To address this deficit, we examine extant PPP literature and case evidence to identify benefits, challenges, and the key factors that contribute to a successful bidding and execution process in a PPP. Finally, our work provides a discussion of how the key success factors can be implemented.
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Adekambi, Souleimane A., Paul T. M. Ingenbleek, and Hans C. M. van Trijp. "Integrating Bottom-of-the-Pyramid Producers with High-Income Markets: Designing Institutional Arrangements for West African Shea Nut Butter Producers." Journal of Public Policy & Marketing 37, no. 2 (November 2018): 327–41. http://dx.doi.org/10.1177/0743915618813117.
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To reduce poverty, policy makers in developing and emerging markets have tried to connect producers at the bottom of the pyramid (BoP) to high-income markets. With supermarkets and exporters stretching their influence in these markets, policy makers can build their policies on the arrangements that companies offer to BoP producers. Although studies show that this approach is generally effective, no studies address the design of arrangements to increase their acceptance among BoP producers. This study tests the effects of three components of such arrangements (payment on delivery, third-party control, and marketing competence) on female processors of shea nuts in Benin. The results show that all three components have significant effects on the intended sales to the high-income channel, that the effects of some components are contingent on the remoteness of the BoP producers, and that the components interact. Two variables pertaining to institutional support (microcredits and information provision) show counterintuitive effects, suggesting that policy makers should be careful when combining institutional arrangements with other interventions.