Segmenting the Bottom of the Pyramid Consumers: Theoretical Approach

2021 ◽  
pp. 147078532110550
Author(s):  
Devinder P. Singh ◽  
Justin Paul ◽  
Pooja Sharma

The Bottom of the Pyramid (BOP) market deserves further attention from researchers. The purpose of the paper is to profile the psychographic and behavioral heterogeneity within the BOP market in India employing a theoretical approach. We use constructs of the Theory of planned behavior (TPB) to identify distinct BOP segments. It segments the BOP market in the context of durable goods, non-durable goods, and services. The findings demonstrate the presence of three consumer segments, each of the durable and non-durable goods. In the context of services, the findings show the existence of four segments of BOP consumers. This study offers insights into application of behavioral theories for segmentation, which could help with behavioral change of BOP consumers to use high-quality products and services. Further, it is significant because the BOP market has witnessed a progressive decline in size as a large segment of the BOP market is being transformed into the middle class. Comprehension of the cognitive and behavioral tendencies of each consumer segment would strategically help in retaining the brand loyal BOP customers when they upgrade to the middle class.

Author(s):  
Nicolae Țău ◽  
◽  
Ibrahim Mustafa Sharfeldin Mohammedelkhatim ◽  

The definition of international business is related to commercial transactions that occur across country borders. The exchange of goods and services among peoples and businesses is organized between multiple countries. The term is composed of two words; International has many meanings, among them external and global. The word Business has also various senses such as trade, transaction and commercial relations. This huge number of words and concepts describes the large field of affairs. International business means the exchange of goods, services, resources, knowledge and skills among other things between two or more firms and/ or countries. It can also denote the trade conducted across national boundaries for the profit of all parties connected on an industry. It refers to negotiated commerce and investment performed by firms across boarders functioning together at several levels.


Subject Vietnam's emerging middle class. Significance As a result of three decades of economic reform, the middle class will account for more than one-third of Vietnam's population by 2020, and will have more than doubled in number since last year, by one estimate. The country's communist government faces an increasingly class-divided society as the economy develops. Impacts The middle class will drive demand for internationally branded merchandise. Middle-class growth will generate investment opportunities connected with goods and services provision and with urbanisation. The internet could catalyse political dissent; online firms and platforms face rising government crackdown risks. China’s maritime assertiveness could excite Vietnamese middle-class political activity.


1998 ◽  
Vol 23 (2) ◽  
pp. 19-27
Author(s):  
Martin M Tolar ◽  
Paul W B Hyland ◽  
Charles E O'Mara

In recent years⁄ the Indian economy has undergone a number of reforms, resulting in a more marketoriented economy. These reforms have also seen the emergence of a growing middle class with a high disposable income. This increased prosperity has led to increases in demand for both durable and nondurable consumer items. This paper by Tolar⁄ Hyland, and O'Mara reports upon a study of Australian consumers that is designed to provide manufacturers, retailers, and distributors of nondurable goods and services with an insight into what information influences consumers to purchase these items. In doing so, the paper also reports upon India's developing consumer markets. The results of the survey are then applied to the Indian experience with a view to presenting Indian managers with an insight into what determinants consumers take into consideration when purchasing non-durable goods and services.


2001 ◽  
Vol 1 (3) ◽  
pp. 298-304
Author(s):  
Rimma Ananina ◽  

The variety of models of conducting economic relations in the last few decades has led to the fact that the most pronounced manifestation and action of those whose competitive foundations allow them to hold current positions or occupy new niches occurs in the market of goods and services. In the article, the author attempts to analyze and compare the characteristics of several models of economic relations: breakthrough innovations, business ecosystems. The model of breakthrough innovations was introduced into scientific circulation by K. Christensen, which is based on changes in values in any market [21]. As noted in the report of the Bank of Russia, in the second quarter of 2021, the market is developing due to the digitalization of the consumer segment and the activity of large online companies [15]. This trend is formed due to the transition of part of economic relations to the real-time mode using digital formats for their implementation, which are based on a certain concept of carrying out activities. In this regard, the study of various business models becomes relevant with the help of an integrated approach that takes into account the diverse development of economic relations.


Author(s):  
Andrew Coleman

The paper develops and solves a simple model of urban Location choice when there is a location-based income externality such as a tendency for schools to be better in high income areas than low income areas. In the model, households choose between consumption of a Location externality, paid for by rent, and consumption of ordinary goods and services. It is shown that the extent to which groups with different incomes separate into different areas depends nonlinearly on the unemployment rates and benefit levels can lead to a rapid clustering of jobless people into Low rent areas.


2020 ◽  
Vol 16 (02) ◽  
pp. 17-22
Author(s):  
Indrani Sengupta ◽  
Dhaval Maheta

Had the Indian economy were a person, its income in 2020-21 and 2021-22 would be much less than what it was in 2019-20. This is what the recent World Bank predictions says. There is vast, perhaps unparalleled, economic pain ahead. The World Bank released its Global Economic Prospects report in the second week of June, expecting India’s gross domestic product (GDP) to contract by 3.2% in 2020-21. A moderate recovery growth is expected from 3.1% in 2021-22. India is not the only country which will face this quandary. As per the statistics, generally March and April each contributes to the sales turnover of 12% every year, but March 2020 has witnessed a downfall of 55% year on year amidst the corona- induced lockdown. Undoubtedly, the pandemic has a tremendous impact on these, but the industry certainly needs to cope us with the current situation and some key transitions should be made in their approach to sales, logistics, marketing to customer service. So, as an investor we need to know how the consumption market was just before the Covid-19 hit the Indian premise. The consumption industry is further segregates into durable, non-durable goods and services industry. This paper compares the price volatility of the stock prices of three firms who are into consumer goods with its related NSE Nifty consumption index. Data has been taken from NSE website and the time period of the study is 2015-2019. The data has further been treated with time series analysis using multiple regression which tries to test whether there is any connect between the trends of the stock prices of firms vis-à-vis the Nifty index of the sector. The study also attempts to identify patterns between the regressor and the regressands.


2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Arif Julianto Sri Nugroho ◽  
Roos Kities Andadari ◽  
Eric Kunto Aribowo

The segment of Muslim consumers in Indonesia currently has a high sense of concern for the halal goods and services they consume. This consumer segment, in addition to wanting high-quality products, also demands that the products they consume comply with the rules set by Islamic law. This segment has a tendency to be able to recommend to other parties the products they perceive are halal, they even want to pay a more expensive price if there are no alternative products of the kind they perceive halal. Instead, they can provide incorrect information which results in a viral effect and leads to encouragement to boycott the consumption of goods and services. This study aimed to examine the effect of halal supply chain knowledge on Muslim and non-Muslim consumers on the motivation and purchasing behavior of halal chicken meat. The halal supply chain knowledge tested includes halal feed dimensions, halal slaughtering processes, halal storage and logistics, and halal packaging and logistics. The research was conducted with a quantitative approach through multivariate multiple regression statistical tests. The population in the study was all consumers of halal chicken meat in Klaten City. Sampling using purposive sampling as many as 102 respondents. The final stage of the study found the findings of the four antecedent variables, three supply chain knowledge variables in the form of halal slaughter process, halal storage and logistics and halal labeling packing had a significant influence on purchasing motivation. Halal slaughter process had the highest influence on consumers because the halal perception that is most familiar to them is the slaughter process. One variable had no significant influence in the form of halal feed. In the motivation variable, the findings of this dimension had a significant influence on behavior.===========================================================================================Rantai Pasok dan Perilaku Pembelian Daging Ayam Halal. Segmen konsumen muslim di Indonesia saat ini memiliki rasa kepedulian yang tinggi terhadap kehalalan barang dan jasa yang mereka konsumsi. Segmen konsumen ini selain menginginkan produk yang berkualitas juga menuntut produk yang mereka konsumsi mematuhi aturan-aturan yang ditetapkan oleh syariat Islam. Segmen ini memiliki kecenderungan bisa merekomendasikan ke pihak lain produk yang mereka persepsikan halal, bahkan mereka mau membayar dengan harga yang lebih mahal jika tidak terdapat alternatif produk sejenis yang mereka persepsikan halal. Sebaliknya, mereka dapat memberikan informasi yang tidak benar yang mengakibatkan efek viral dan berujung anjuran memboikot konsumsi barang dan jasa tersebut. Penelitian ini bertujuan menguji pengaruh pengetahuan rantai pasok halal pada konsumen muslim dan non-muslim terhadap motivasi dan perilaku pembelian daging ayam halal. Pengetahuan rantai pasok halal yang diuji meliputi dimensi halal pakan, halal proses penyembelihan, halal penyimpanan dan logistic, serta halal pengepakan dan logistik. Penelitian dilakukan dengan pendekatan kuantitatif melalui uji statistik multivariat regresi berganda. Populasi dalam penelitian adalah seluruh konsumen daging ayam halal di Klaten, Indonesia. Pengambilan sampel menggunakan purposive sampling sebanyak 102 responden. Tahap akhir penelitian diperoleh temuan dari empat variabel anteseden, tiga variabel pengetahuan rantai pasok berupa halal proses penyembelihan, halal penyimpanan dan logistik, serta halal pengepakan labelling berpengaruh signifikan terhadap motivasi pembelian. Halal proses penyembelihan memiliki pengaruh paling tinggi pada konsumen karena persepsi halal yang paling familiar bagi mereka adalah kegiatan proses penyembelihan. Satu variabel tidak berpengaruh signifikan berupa halal pakan. Pada variabel motivasi diperoleh temuan dimensi ini berpengaruh signifikan terhadap perilaku.


2021 ◽  
Author(s):  
Zakia Khurshid Kayani ◽  
Tayyba Fatima ◽  
Thurasamy Ramayah ◽  
Tahir Mumtaz Awan ◽  
Ruqia Khan

Abstract Background This study aims to measure the safety behavior of individuals’ during the pandemic of COVID-19 by integrating Health Belief Model (HBM) and behavioral theories i.e. Theory of Reasoned Action (TRA), Social Cognitive Theory (SCT) and Information-Motivation Behavioral Skills (IMB). Methods The research was conducted in education sector; data was collected from students and staff (teaching and nonteaching) of universities. Mono method was used with deductive approach. Data was collected from 780 respondents and analyzed using Smart PLS3. Results A scenario-based survey conducted online, and data was collected from 780 respondents to test the model. Data analysis was conducted by using SPSS and Smart PLS3.The results highlighted the factors that leads towards behavioral change during the pandemic times. The results highlighted the factors that leads towards behavioral change during pandemic times. Conclusions This study not only contributes into the existing literature on social marketing but also will bring the betterment in the society by measuring the safety behavior of individuals. This research may also help the health policy makers and contributes as communication guideline for individuals to follow safety behaviors which will limit the spread of COVID-19. Trial Registration: Not applicable


2014 ◽  
Vol 1 (1) ◽  
pp. 10-14
Author(s):  
Satya P. Chattopadhyay

Abstract The next big challenge in a global marketplace is to engage the very large segment of world population which survives on less income than the defined poverty level by any measurements that may be applied. This segment in the past has been the focus of aid and charities and been at the receiving end of poverty alleviation programs created by a variety of international donor agencies, with very limited success. It is time now to take a different approach. A radical re-thinking of the problem now has resulted in a novel approach: that of engaging them as customers like any other. The underlying assumption is that folks in this segment still spend billions of dollars in the aggregate and are now able to critically examine offerings and choose to go after quality and value just like any other segment. The opportunity to tap into this huge market lies in innovative entrepreneurial efforts that make goods and services available to this segment without compromising on performance and quality. This paper explores the nature of innovation that is likely to result in entrepreneurial success in what is called the Base (Bottom) of the Pyramid marketplace.


Author(s):  
Valéria de Cássia Sparapani ◽  
Sidney Fels ◽  
Noreen Kamal ◽  
Lucila Castanheira Nascimento

ABSTRACT Objective: to present a theoretically based conceptual framework for designing video games for children with type 1 diabetes mellitus. Methods: this was a methodological study that developed a conceptual framework with nine steps in view of health behavior change theories and the user-centered design approach as theoretical and methodological frameworks, respectively. Twenty-one children, aged 7 to 12 years, participated by expressing their needs and preferences related to diabetes and video games. Data were analysed following content analysis guidelines. Then, a choice of appropriate health behavioral change theories and their determinants that should be capable of influencing children’s behaviors and preferences. Results: the conceptual framework proposes a video game that consists of six phases, each addressing one stage of behavioral change and specific determinants, aligned with the needs and preferences identified by the participating children. This study shows the applicability of this framework in view of each proposed phase presenting examples and the children’s ideas. Conclusion: the results of this study contribute to advance the discussion on how behavioral theories and their determinants should be related to the design of creative and funny video games considering the profile of the target population as well as its needs and preferences.


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