The influence of marketing on consumption behavior at the bottom of the pyramid

2015 ◽  
Vol 32 (2) ◽  
pp. 113-124 ◽  
Author(s):  
Anand Kumar Jaiswal ◽  
Shruti Gupta
Keyword(s):  
Empirical Support ◽  
Purchase Behavior ◽  
Careful Examination ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Consumption Behavior ◽  
Doing Business ◽  
Ethical Marketing ◽  
Bop Markets ◽  
Marketing Actions

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.

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.

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.

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.

Developing a marketing framework for the bottom of the pyramid consumers

2020 ◽  
Vol 17 (3) ◽  
pp. 455-471
Author(s):  
Mahima Mathur ◽  
Ritu Mehta ◽  
Sanjeev Swami
Keyword(s):  
Qualitative Research ◽  
Design Methodology ◽  
Research Approach ◽  
Bottom Of The Pyramid ◽  
Senior Managers ◽  
Content Type ◽  
Successful Business ◽  
Bop Markets ◽  
Depth Interviews ◽  
Practical Implications

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.

What drives the customer of world's largest market to participate in value co-creation?

2014 ◽  
Vol 32 (4) ◽  
pp. 413-435 ◽  
Author(s):  
Kumkum Bharti ◽  
Rajat Agrawal ◽  
Vinay Sharma
Keyword(s):  
Data Collection ◽  
Rank Correlation ◽  
Strong Relationship ◽  
Customer Participation ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
The Difference ◽  
Bop Markets ◽  
The Relationship ◽  
Depth Interviews

Purpose – The purpose of this paper is to explore the drivers of customer participation for value co-creation among bottom of the pyramid (BOP) customers. In addition, the difference, if exists, between the perception of customer and marketers belongs to this segment about the drivers of customer participation is also studied. Design/methodology/approach – Qualitative study has been conducted to investigate the drivers of customer participation for value co-creation in BOP market. Data collection are done through in-depth interviews from BOP customers and marketers. Spearman rank correlation is used to find out the relationship between the BOP customers and marketers responses. Findings – The findings enrich understanding of value co-creation in the BOP market by suggesting the various drivers that instigate BOP consumers to participate in value co-creation activities. The study also shows a strong relationship between the customers and marketers perspective on what drives BOP customers to participate in value co-creation. Research limitations/implications – The study is conducted qualitatively hence results cannot be generalized. The sample used for data collection is limited to one state of India. Practical implications – Twenty-seven factors are identified that an organization can leverage or develop to successfully practice value co-creation in the BOP markets. Originality\value – The paper provides a comprehensive view to help organizations manage value co-creation through customer participation in BOP market. According to author's knowledge, no prior study in BOP as well as on value co-creation literature discusses empirically the drivers of customer participation in value co-creation.

Diners’ loyalty toward luxury restaurants: the moderating role of product knowledge

2015 ◽  
Vol 33 (2) ◽  
pp. 179-196 ◽  
Author(s):  
Norman Peng ◽  
Annie Huiling Chen
Keyword(s):  
Food Quality ◽  
Brand Loyalty ◽  
Structural Equation ◽  
Empirical Support ◽  
Equation Modeling ◽  
Product Knowledge ◽  
Content Type ◽  
Consumption Behavior ◽  
Managerial Implications

Purpose – Consumers dine at luxury restaurants for reasons beyond fulfilling basic needs; however, little is known about the factors that contribute to diners’ loyalty. The purpose of this paper is to examine diners’ luxury restaurant consumption behavior by incorporating product knowledge into a modified Mehrabian-Russell model. Design/methodology/approach – Following exploratory qualitative research, 238 consumers who have dined at Hong Kong’s Michelin-starred luxury restaurants were recruited for the main study. The data were analyzed through structural equation modeling. Findings – The results show that luxury restaurants’ stimuli (i.e. food quality, service quality, and atmospherics) influence diners’ emotions, which in turn affect their brand loyalty. Furthermore, food quality can directly influence diners’ loyalty toward the restaurant. Third, diners’ product knowledge can moderate the relationships between restaurant stimuli and diners’ emotion. Research limitations/implications – This study offers new empirical support for the proposition that product knowledge has a role in building brand loyalty and thereby shades both theoretical and managerial understanding of the luxury restaurant consumption process. Originality/value – This study is one of the first to conceptualize diners’ loyalty toward luxury restaurants by examining the influences of restaurants’ stimuli and diners’ knowledge toward luxury restaurants. In addition, this study puts forth some managerial implications for practitioners.

scholarly journals The effects of luxury restaurant environments on diners’ emotions and loyalty

2015 ◽  
Vol 27 (2) ◽  
pp. 236-260 ◽  
Author(s):  
Annie Chen ◽  
Norman Peng ◽  
Kuang-peng Hung
Keyword(s):  
Structural Equation ◽  
Empirical Support ◽  
Study Data ◽  
Equation Modeling ◽  
Content Type ◽  
Consumption Behavior ◽  
Quantitative Studies ◽  
Managerial Implications ◽  
Practical Implications ◽  
Different Levels

Purpose – This paper aims to examine diners’ luxury restaurant consumption behavior by incorporating diner expectations into a modified Mehrabian–Russell model. Consumers dine at luxury restaurants for reasons beyond fulfilling basic needs. However, little is known about the factors that contribute to diners’ emotions and loyalty toward luxury restaurants. Design/methodology/approach – To examine the proposed six hypotheses, qualitative and quantitative studies were performed. Following exploratory qualitative research, 310 consumers who dined at Taiwan’s five-star hotel restaurants were recruited for the main study. Data were analyzed using structural equation modeling. Findings – The results show that restaurants’ stimuli influence diners’ positive and negative emotions (organisms), which, in turn, affect their loyalty toward luxury restaurants (responses). Furthermore, customers with different levels of expectation react differently to stimuli. Practical implications – This study offers new empirical support for the proposition that diner expectation plays a role in building customer loyalty and, thereby, shades both theoretical and managerial understanding of the luxury restaurant consumption process. Originality/value – This study conceptualizes diners’ loyalty toward luxury restaurants (e.g. revisiting and recommending luxury restaurants) by examining the influence of restaurants’ stimuli, diners’ emotions and customers’ expectations toward luxury restaurants. Additionally, this study offers some managerial implications for practitioners.

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.

Addressing mass-customization trade-offs in bottom of the pyramid markets

2019 ◽  
Vol 49 (5) ◽  
pp. 451-472 ◽  
Author(s):  
Fred Ahrens ◽  
David Dobrzykowski ◽  
William Sawaya
Keyword(s):  
Mass Customization ◽  
Medical Equipment ◽  
Supply Chain Design ◽  
Design Parameters ◽  
Local Market ◽  
Production Volume ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Trade Offs ◽  
Bop Markets

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.

scholarly journals Visual cues and innovation adoption among bottom of the pyramid consumers

2017 ◽  
Vol 20 (2) ◽  
pp. 147-157 ◽  
Author(s):  
Md Rajibul Hasan ◽  
Ben Lowe ◽  
Mizan Rahman
Keyword(s):  
Social Relations ◽  
Visual Cues ◽  
Innovation Adoption ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Innovative Products ◽  
Adoption Research ◽  
Private And Public ◽  
Bop Markets

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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