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Article
Publication date: 13 October 2023

Bianca Maria van Niekerk, Mornay Roberts-Lombard and Nicole Cunningham

This study aims to explore the impact of store atmospherics on urban bottom-of-the-pyramid consumers’ behavioural intentions to purchase apparel in an emerging African market…

Abstract

Purpose

This study aims to explore the impact of store atmospherics on urban bottom-of-the-pyramid consumers’ behavioural intentions to purchase apparel in an emerging African market context. This study also considers purchase antecedents to attitude, perceived behavioural control and social norms as determinants of urban bottom-of-the-pyramid consumers’ apparel behavioural intentions.

Design/methodology/approach

Using non-probability sampling, specifically purposive and interlocking sampling, data collection was secured from 881 economically active Namibian urban bottom-of-the-pyramid respondents through interviewer-administered questionnaires. Covariance-based structural equation modelling assessed the significant relationships among all constructs in the conceptual model.

Findings

This study found that for favourable apparel behavioural intentions of urban bottom-of-the-pyramid consumers to occur, apparel retailers should emphasise trust, perceived awareness and self-identity through apparel assortment and groupings, easy-to-read visible signage, together with competent, friendly and respectful sales personnel in their store atmospherics.

Practical implications

The findings of this study may guide apparel retailers in other emerging African markets to develop regional integration, market-based solutions and inclusive economic growth focusing on “non-essential” products, such as apparel, among urban bottom-of-the-pyramid consumers.

Originality/value

This study expands the intellectual boundaries of urban bottom-of-the-pyramid consumers’ behavioural intentions towards “non-essential” products. The theoretical framework supports the integration of both the stimulus-organism-response model and the theory of planned behaviour into one single model for empirical investigation. Additionally, adopting a novel theoretical framework helped identify the impact of store atmospherics from a bottom-of-the-pyramid perspective in an emerging African market context, such as Namibia.

Details

European Business Review, vol. 36 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 31 October 2008

Sofie Van den waeyenberg and Luc Hens

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation…

4778

Abstract

Purpose

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation in low‐income countries.

Design/methodology/approach

The paper confronts the literature on the “bottom of the pyramid” with the diffusion of innovations theory in order to identify the country characteristics that call for marketing changes when entering low‐income markets. The authors investigate for one case (the Tata Nano) whether – and how – the company implements changes to respond to these conceptually identified challenges. The case study is systematically analysed and structured according to Kotler's four Ps.

Findings

The case shows that companies can create products with functionality and cost advantage for the poor without compromising on safety and comfort. Creating an innovative distribution system pushes costs and builds trust between the company and the customer.

Research limitations/implications

The study examines one case from the automobile industry. Marketers would benefit from multiple case studies.

Originality/value

The study's originality springs from the confrontation between the bottom of the pyramid and the diffusion of innovations theories. The study is valuable to marketers targeting the bottom of the pyramid. The case study is interesting because the industry (automobile) surprisingly targets a poorer non‐traditional customer base (the upper bottom of the pyramid).

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Book part
Publication date: 3 December 2018

Wasana Jayawickramarathna, Kaleel Rahman, Rajendra Mulye and Tim Fry

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of

Abstract

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of there being a ‘fortune’ to make at the Bottom of the Pyramid (BoP) market that was an opportunity for both businesses and consumers. The notion of the BoP market has been widely studied using urban and rural contexts as distinct classifications; yet many argue that the opportunity does not in fact exist in the rural BoP markets. In this chapter the authors examine the prospects in the rural BoP in Sri Lanka through a qualitative study using insights provided by industry practitioners who operate at the BoP level. Findings show that a large percentage of the income of multinational companies is derived from rural BoP markets. Compared to the urban sector, the rural BoP market indicates relatively higher disposable income and is viewed as an attractive market segment by industry practitioners. The findings also show that rural BoP people have more resources and skills than their urban counterparts, although the former commonly have lower levels of education. Moreover, the youth segment in both the urban and rural BoP markets was found to heavily consume social media. The authors conclude their discussion by providing several key proposals for organisations looking to seize opportunities in this market.

Details

Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

Keywords

Book part
Publication date: 10 August 2016

Paul N. Gooderham, Svein Ulset and Frank Elter

The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to “Bottom-of

Abstract

The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to “Bottom-of-the-Pyramid” (BOP) settings. Second, to address how they can apply elements of BOP business models across their operations. We use the case of the entry of the Norwegian mobile telecom MNC Telenor into India as the empirical context. Prior to India, Telenor had operated successfully in Asian emerging economies by adapting its business model to local conditions. However, it had only operated in the upper income tiers of these countries. In India, its late entry meant that for the first time in its history it had to move beyond these upper income tiers and develop a business model suited to BOP. We apply an economic model terminology as a means to gauging the degree of business model innovation Telenor undertook. Telenor succeeded in its development of a BOP business model by working in close partnership with local firms. Although Telenor in India was operating at BOP, a number of the resultant innovations were deemed by Telenor to be transferable to top-of-the-pyramid operations across Telenor. In order to succeed in developing BOP business models MNCs must go beyond local responsiveness and engage closely with local partners. However, transference of elements of BOP business models to other parts of the MNC is contingent on there being a centralized integrating capability.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

Keywords

Abstract

Details

Microfinance and Development in Emerging Economies
Type: Book
ISBN: 978-1-83753-826-3

Article
Publication date: 28 September 2023

Felicia Naatu, Ilan Alon, George Kofi Amoako and Dekuwmini Mornah

This study aims to fill the gap on proenvironmental behavior studies among consumers in bottom of the pyramid (BOP) market by examining the relationship between values, beliefs…

Abstract

Purpose

This study aims to fill the gap on proenvironmental behavior studies among consumers in bottom of the pyramid (BOP) market by examining the relationship between values, beliefs and norms among Ghanaian consumers.

Design/methodology/approach

A sample of 324 Ghanaian consumers (responses rate of 64%) was used to estimate the model. The data was analyzed using maximum likelihood robust approach of Lavaan package for structural equation modeling in R.

Findings

The findings show that there is no significant relationship between values and the new ecological worldview, which also does not affect awareness of environmental consequences. However, awareness of consequences, likely based on personal experiences, significantly impacts perceived ability to reduce threats to the environment. Ghanaian consumers are mainly influenced by personal experiences with local environmental consequences that affect their perceived ability to reduce threats to their environment and their willingness to engage in proenvironmental behavior. The study supports the argument that proenvironmental behavior is the result of complex decision-making that might be influenced by a country’s economic situation, infrastructure, culture and institutions.

Research limitations/implications

This study focuses on a single country in Africa. More studies are needed among other base of the pyramid countries, and in comparison to developed countries’ consumers.

Originality/value

The study adds to the limited knowledge regarding sustainable consumption in the neglected context of the bottom of the pyramid market.

Details

Competitiveness Review: An International Business Journal , vol. 34 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 31 October 2008

Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending…

12463

Abstract

Purpose

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low‐income consumers.

Design/methodology/approach

The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.

Findings

There is no agreement in the literature about the potential benefits of the BOP approach for both private companies and low‐income consumers. However, further research on characterizing the BOP segment and finding the appropriate business model for attending the BOP can provide some answers to this issue.

Practical implications

The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.

Originality/value

The article presents a thorough analysis of the key elements involved in the BOP initiative: companies' motivations, characterization of the BOP consumers, and the business model to attend the BOP.

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Book part
Publication date: 3 December 2018

Ogechi Adeola and Yetunde Anibaba

The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP…

Abstract

The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP markets are impoverished and therefore unable to afford their products. However, Prahalad’s seminal study on BoP markets as potential sources of wealth may have influenced the mindset of marketers around the world to view the demographic at the BoP as prodigious product markets waiting to be mined. This chapter, therefore, explores how some multinational corporations (MNCs) may have successfully implemented BoP marketing in Nigeria against the backdrop of diffusion of innovation (DoI) theory. The DoI theory tries to explain how and why new ideas, product, structures, or phenomena (innovations), spread across users and social systems. It posits among other things that there are at least five conditions that define the rate of adoption of an innovation, including relative advantage, compatibility, complexity, trialability, and observability. The authors find in the context of case companies, MTN Communications, Promasidor (Cowbell), and Dufil Prima Foods (Indomie) Nigeria that these elements contribute to building a viable explanation for the wide adoption of their products in the Nigerian BoP markets. Regarding the economic viability of BoP markets, the authors find that MNCs may have to embrace a commitment to long-term profitability, focus on economies of scale as a basis for competitiveness, and realize that in BoP markets, defining a marketing model is a continuous process.

Details

Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

Keywords

Book part
Publication date: 24 July 2024

Nishi Malhotra

This chapter discusses about the role of social capital in providing access to the microfinance for the tribal people at the bottom of the pyramid. Marginalised people at the…

Abstract

This chapter discusses about the role of social capital in providing access to the microfinance for the tribal people at the bottom of the pyramid. Marginalised people at the bottom of the pyramid do not have access to finance due to the problem of information asymmetry, and the community groups use the social capital to gain access to the physical capital and financial services. Due to the presence of the lemons and agency problem, the people at the bottom of pyramid are unable to be financially included. The social contract is operationalised through the use of the peer mechanism, and this helps in financial inclusion of the marginalised tribal people at the bottom of the pyramid. Thus, financial intermediation and financial inclusion play an important role in mitigating the woes of the marginalised tribal people who have been financially excluded from the financial system.

Article
Publication date: 26 June 2024

Sumit Sodhay, Lalit Mohan Kathuria, Tanveen Kaur and Gurpreet Kaur

The study aims to investigate the factors influencing the behavioural intention of bottom-of-the-pyramid (BOP) consumers in developing economies, such as India, to adopt mobile…

Abstract

Purpose

The study aims to investigate the factors influencing the behavioural intention of bottom-of-the-pyramid (BOP) consumers in developing economies, such as India, to adopt mobile wallets, drawing upon the framework of the uses and gratification theory. Furthermore, the study also examines the moderating effect of gender.

Design/methodology/approach

To achieve the objective, primary data were collected from a sample of 220 respondents using the survey method. The reliability and validity of the survey instrument were demonstrated through confirmatory factor analysis. Subsequently, structural equation modelling (SEM) was used for hypotheses testing.

Findings

The study revealed that only convenience and social influence have a positive significant influence on the behavioural intention to adopt mobile wallets whereas, innovativeness, trust and compatibility have no significant relationship with behavioural intention to adopt mobile wallets among the BOP consumers. Further, gender moderates the relationship between compatibility and behavioural intention to adopt mobile wallets in India.

Originality/value

This study contributes to the underexplored area of research concerning the behavioural intention to adopt mobile wallets among BOP consumers in a developing economy. It introduces a novel approach by using the uses and gratifications theory to uncover the underlying motivations behind adoption behaviour.

Details

International Journal of Quality and Service Sciences, vol. 16 no. 3
Type: Research Article
ISSN: 1756-669X

Keywords

1 – 10 of over 4000