Not one segment: using global and local BoP characteristics to model country-specific consumer profiles

2019 ◽  
Vol 31 (3) ◽  
pp. 317-336 ◽  
Author(s):  
James Lappeman ◽  
Kristin Ransome ◽  
Zach Louw
Keyword(s):  
South Africa ◽  
Emerging Markets ◽  
Local Level ◽  
Bottom Of The Pyramid ◽  
New Developments ◽  
Content Type ◽  
Segmentation Strategy ◽  
Strategic Direction ◽  
Bop Markets ◽  
Global And Local

Purpose This paper aims to show that a generic bottom-of-the-pyramid (BoP) segmentation strategy does not represent a multi-country BoP consumer profile. A series of multinational entry failures has clearly shown that a one-size-fits-all strategy is inappropriate for emerging markets, especially in Africa. Design/methodology/approach The study analysed literature defining and profiling BoP consumers at both a global and local level using South Africa as a case study. Being Africa’s largest economy, South Africa was an ideal subject. The findings were then independently triangulated with seven experts for validation. Findings The results show that the South African BoP has eight characteristics that align with definitions in global BoP consumer literature. An additional five characteristics were identified that were not general BoP characteristics, and that applied specifically to South Africa. Practical implications The findings add to the growing evidence that BoP markets are complex and heterogeneous, and they make a case to consider each BoP market individually. As there is yet to be a model to define BoP market differences systematically, this study provides a foundation for new developments in BoP segmentation in Africa and in other emerging markets. Originality/value While there is evidence that BoP markets are complex and heterogeneous, there is yet to be a model to begin the process of defining these differences systematically to improve strategic direction for multinational companies and regional decision makers. This study, therefore, provides a foundation for new developments in this field of segmentation in Africa and in other emerging markets globally.

Resource access mechanisms in networks and SME survival in Ghana

2018 ◽  
Vol 12 (5) ◽  
pp. 611-631 ◽  
Author(s):  
George Acheampong ◽  
Raphael Odoom ◽  
Thomas Anning-Dorson ◽  
Patrick Amfo Anim
Keyword(s):  
Census Data ◽  
Local Level ◽  
Directed Network ◽  
Resource Access ◽  
Content Type ◽  
Structural Hole ◽  
One Year ◽  
Global And Local ◽  
Access Mechanisms ◽  
Global Influence

Purpose The study aims to determine the resource access mechanism in inter-firm networks that aids SME survival in Ghana. Design/methodology/approach The authors collect census data on a poultry cluster in Ghana and construct a directed network. The network is used to extract direct and indirect ties both incoming and outgoing, as well as estimate the structural holes of the actors. These variables are used to estimate for survival of SMEs after a one-year period using a binary logit model. Findings The study finds that out-indirect ties and structural hole have a significant influence on SME survival. This works through the global influence and the vision advantage that these positions and ties offer the SMEs. Originality/value The study offers SMEs a choice of whom to collaborate with for information (resources) in the form of outgoing and incoming ties at both the global and local level.

Assessing algorithms for selecting countries to market new products to low-income consumers

2013 ◽  
Vol 3 (4) ◽  
pp. 1-12
Author(s):  
Michael D Metzger ◽  
Arch G. Woodside ◽  
John C. Ickis
Keyword(s):  
Emerging Markets ◽  
New Product Development ◽  
Low Income ◽  
Food Packaging ◽  
New Products ◽  
Subject Area ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Decision Tools ◽  
Low Income Consumers

Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader ' s indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Branding paradigm for the bottom of the pyramid markets

2009 ◽  
Vol 13 (4) ◽  
pp. 58-68 ◽  
Author(s):  
Rajagopal
Keyword(s):  
Brand Management ◽  
Business Strategies ◽  
Bottom Of The Pyramid ◽  
Brand Positioning ◽  
Market Segments ◽  
Content Type ◽  
Rural Markets ◽  
Global Brands ◽  
Consumer Value ◽  
Bop Markets

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.

Predicting FinTech innovation adoption in South Africa: the case of cryptocurrency

2019 ◽  
Vol 11 (1) ◽  
pp. 30-50 ◽  
Author(s):  
Last Mazambani ◽  
Emmanuel Mutambara
Keyword(s):  
South Africa ◽  
Emerging Markets ◽  
Structural Equation ◽  
Consumer Behaviour ◽  
Behavioural Intention ◽  
Adoption Studies ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Innovations ◽  
Intention To Adopt

Purpose Financial technology innovation within the developed world is driving financial markets, yet its adoption is lagging among consumers in emerging markets. At the same time, most African economies continue to be at the tail end of global financial innovations adoption. Given lagging consumer adoption of cryptocurrency in South Africa, the purpose of this paper is to apply the theory of planned behaviour (TPB) to predict behavioural intention to adopt cryptocurrency. Design/methodology/approach A survey instrument based on the TPB was used to collect quantitative data for predicting adoption from adult distance students at the Mancosa, Cape Town campus. For data analysis, the two-step structural equation modelling approach was used. Findings The findings indicate that attitude and perceived behavioural control positively impact the intention to adopt cryptocurrency. Subjective norm showed a negative non-significant influence. Overall, the results of the study show that the model has a good model fit and can be used to explain the theory. Research limitations/implications The results of this study may not be generalisable to the wider population as it is only based on a cross-sectional study of a sample of adult students at a single institute in South Africa. Originality/value The contribution of this paper is threefold: it is one of a few studies on the behavioural intention to adopt cryptocurrency in South Africa using the TPB model, it contributes towards the use of predictive behavioural economics models in understanding consumer behaviour critical to accelerating the adoption of financial innovations, and the results of the study also inform behaviour change strategies that can be applied by practitioners or policymakers to improve adoption. Studies of this nature may lead to the development of financial innovation in emerging markets through a nuanced understanding of consumer behaviour.

Comparative analyses of mean-variance and mean-semivariance approaches on global and local single factor market model for developed and emerging markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehmet Emin Yildiz ◽  
Yaman Omer Erzurumlu ◽  
Bora Kurtulus
Keyword(s):  
Emerging Markets ◽  
Stock Returns ◽  
Risk Measures ◽  
Emerging Market ◽  
Cost Of Equity ◽  
Content Type ◽  
The Cost ◽  
Global And Local ◽  
Insight Into ◽  
Better Than

PurposeThe beta coefficient used for the cost of equity calculation is at the heart of the valuation process. This study conducts comparative analyses of the classical capital asset pricing model (CAPM) and downside CAPM risk parameters to gain further insight into which risk parameter leads to better performing risk measures at explaining stock returns.Design/methodology/approachThe study conducts a comparative analysis of 16 risk measures at explaining the stock returns of 4531 companies of 20 developed and 25 emerging market index for 2000–2018. The analyses are conducted using both the global and local indices and both USD and local currency returns. Calculated risk measures are analyzed in a panel data setup using a univariate model. Results are investigated in country-specific and model-specific subsets.FindingsThe results show that (1) downside betas are better than CAPM betas at explaining the stock returns, (2) both risk measure groups perform better for emerging markets, (3) global downside beta model performs better than global beta model, implying the existence of the contagion effect, (4) high significance levels of total risk and unsystematic risk measures further support the shortfall of CAPM betas and (5) higher correlation of markets after negative shocks such as pandemics puts global CAPM based downside beta to a more reliable position.Research limitations/implicationsThe data are limited to the index securities as beta could be time varying.Practical implicationsResults overall provide insight into the cost of equity calculation and emerging market assets valuation.Originality/valueThe framework and methodology enable us to compare and contrast CAPM and downside-CAPM risk measures at the firm level, at the global/local level and in terms of the level of market development.

Sticking to the social mission: Microinsurance in bottom of the pyramid markets

2019 ◽  
Vol 44 (4) ◽  
pp. 209-219
Author(s):  
B Elango ◽  
Stephen Chen ◽  
Jim Jones
Keyword(s):  
Emerging Markets ◽  
Social Services ◽  
Social Enterprise ◽  
Social Enterprises ◽  
Bottom Of The Pyramid ◽  
Social Mission ◽  
The Social ◽  
Bop Markets

The purpose of this article is to understand what drives social enterprises in bottom of the pyramid (BOP) markets to stick to or drift away from their social mission. Based on an analysis of 192 microinsurance operators in 26 emerging markets, we find that (1) when donors are involved in the operations of the social enterprise, this leads to a greater commitment to the social mission and (2) social enterprises located in countries with poorly performing governments tend to have a lower commitment to their social mission. Given the need for social services in such countries, we offer some suggestions to increase the chances of social enterprises staying committed to their social mission.

Marketing microcredit to bottom of the pyramid market

2016 ◽  
Vol 34 (2) ◽  
pp. 191-215 ◽  
Author(s):  
Charles Jebarajakirthy ◽  
Paramaporn Thaichon
Keyword(s):  
Positive Affect ◽  
Measurement Model ◽  
Bottom Of The Pyramid ◽  
Cross Sectional ◽  
Content Type ◽  
Self Identity ◽  
Credit Access ◽  
Mediating Role ◽  
Post War ◽  
Bop Markets

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.

Landmark local poll will recast South Africa politics

2016 ◽  
Keyword(s):  
South Africa ◽  
Rural Development ◽  
Voter Turnout ◽  
Local Level ◽  
Moderate Increase ◽  
Content Type ◽  
Nelson Mandela ◽  
Port Elizabeth ◽  
Municipal Election

Significance The party secured 54% of the vote compared to 62% in the last municipal election in 2011. The opposition Democratic Alliance (DA) saw a moderate increase overall but made substantial gains in key cities, notably Nelson Mandela Bay (NMB), which incorporates Port Elizabeth, the capital Tshwane (Pretoria) and Johannesburg. Impacts Relatively high voter turnout (58%) will provide incoming administrations with strong mandates to carry out their policy programmes. Violent incidents may occur in the coming weeks as local-level competition over municipal posts intensifies. Racial tensions exacerbated by the ANC and EFF's inflammatory rhetoric during campaigning will likely ease now that the poll has passed. The results may push the national ANC government to consolidate its core support by prioritising spending on rural development.

scholarly journals Internationalisation of service firms through corporate social entrepreneurship and networking

2014 ◽  
Vol 31 (6) ◽  
pp. 576-600 ◽  
Author(s):  
Pervez Ghauri ◽  
Misagh Tasavori ◽  
Reza Zaefarian
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Social Entrepreneurship ◽  
Service Firms ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Sustainable Solutions ◽  
Social Value Creation ◽  
Bop Markets ◽  
Corporate Social

Purpose – The purpose of this paper is to explore how employing corporate social entrepreneurship and developing a network of relationships with non-governmental organisations (NGOs) can support and contribute towards the internationalisation of service firms into the base of the pyramid (BOP) markets in emerging markets. Design/methodology/approach – This research adopts an exploratory approach employing qualitative multiple case studies. Three service firms that have targeted the BOP markets in India were studied. In total, 25 in-depth interviews were conducted with multinational corporations (MNCs) and their NGO partners. Data analysis was facilitated through pattern matching and systematic case comparison. Findings – The findings reveal that, by engaging in social entrepreneurship, these MNCs have focused on the neglected needs of the BOP population, developed sustainable solutions and empowerment, and started with social value creation and postponed value capturing. The pursuit of corporate social entrepreneurship has paved the way for them to establish relationships with NGOs. While the MNCs have mainly had the technical knowledge and financial resources required, collaboration with NGOs have allowed them to learn about the BOP’s specific needs and benefit from the NGOs’ knowledge, human resources and good relationships in this market. Originality/value – This research unravels how service firms can seize opportunities at the BOP. The authors build on social entrepreneurship theory and bring new insights to the field of international business. In addition, the authors broaden the network view and show how networking with social actors such as NGOs enables the mobilisation of resources, actors and activities in emerging markets.

ICTs in the context of disaster management, stakeholders, and implications

2017 ◽  
Vol 15 (01) ◽  
pp. 32-52 ◽  
Author(s):  
Sreedhar Madhavaram ◽  
Victor Matos ◽  
Ben A. Blake ◽  
Radha Appan
Keyword(s):  
Information And Communication Technologies ◽  
Disaster Management ◽  
Stakeholder Theory ◽  
Text Message ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
The Usa ◽  
Bop Markets ◽  
Human And Nature

Purpose This paper aims to focus on the role of information and communication technologies (ICTs) in preparation for and management of human and/or nature induced disasters. Design/methodology/approach Drawing from the phenomenal growth of ICTs, initiatives aimed at disaster management, stakeholder theory, prior research and the successful development and implementation of 9-1-1 (emergency telephone service of the USA), this paper explores ICTs in the context of human and/or nature induced disasters. Findings This paper discusses a new ICT for mitigating disaster management, scans, using stakeholder theory, relevant initiatives and prior research to identify the stakeholders relevant for successful preparation for and management of disasters, and draws from the 9-1-1 example to discuss how ICTs can be successfully developed and adopted. Research limitations/implications There are opportunities for researchers to develop ICTs that can make countries, developing and developed, more efficient and effective in their preparation for and management of nature and human induced disasters. In addition, researchers can investigate the role of stakeholders in facilitating the adoption of new ICTs developed for disaster management. Researchers could also help public policy in designing the most efficient and effective programs for the adoption of new ICTs. Practical/implications As an example of new ICTs that can potentially mitigate the effect of disasters, this paper discusses the E711 text-message mobile phone service (named “I am OK”) and provides a description of how this protocol operates and can be implemented. There are tremendous opportunities to develop new ICTs in the context of disaster management. Social/implications This paper argues that ICTs such as E711 can have a major impact on all countries in general and poor and developing nations in particular. Specifically, in the bottom of the pyramid (BOP) markets, developing ICTs for BOP market in the context of managing human and nature induced disasters and ensuring the diffusion of such ICT innovations is both critical and challenging. Originality/value This paper discusses the role and importance of ICTs in disaster management, identifies relevant stakeholders, discusses how ICTs can be diffused and implemented and calls on and hopes to provide an impetus to research on ICTs that can aid in the preparation for and the management of disasters.

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