Abstract
Bottom of the pyramid (BOP) consumers are not just basing their purchase decisions on price and affordability but on the value derived from good-quality brands. Hence, this study assesses the brand-consciousness of South African BOP consumers in terms of brand awareness, differentiation, recognition, loyalty, trust and preferences for leading brands. The aim is to understand the brand consciousness of the South African BOP market so that suitable brand management strategies may be formulated to profitably serve the needs of this market. The population (2 556 422 elements) included BOP consumers living in relative poverty within the rural areas of South Africa from which a sample of 600 subjects was drawn using area sampling. Data was collected using a self-development questionnaire whose psychometric properties were statistically assessed and analyzed using descriptive and inferential statistics. The findings reflect that there is a high degree of brand awareness amongst BOP consumers, the majority of BOP consumers are able to easily differentiate between the various brands based on the brands’ logos, design and/or coloring, a significant segment displays brand loyalty which alters when price becomes a factor for consideration and BOP consumers lack trust where new brands are concerned and prefer good quality brands. Furthermore, BOP consumers’ brand consciousness and purchase decisions are influenced by education and income respectively. It can also be concluded that the majority of South African BOP consumers are brand-conscious; hence, brands play an influential role in their consumer decision-making process. Beneficial recommendations are presented for business organizations.
Highlights
Prahalad (2005) advocates that the plight of approximately 4 billion people who survive on less than $2 per day can be alleviated by an unconventional approach to global poverty eradication
Discussion of results: Several pertinent aspects of branding were examined in this study and the overarching evidence reveals that South African Bottom of the pyramid (BOP) consumers are very brand conscious and that brands play a decisive role in their purchase decisions
The results of this study, in relation to the key dimension of branding, reveal that the majority of South African BOP consumers are brand-conscious; brands play an influential role in the consumer decisionmaking process
Summary
Prahalad (2005) advocates that the plight of approximately 4 billion people who survive on less than $2 per day can be alleviated by an unconventional approach to global poverty eradication. By co-creating unique solutions, Prahalad (2005) believes that the consumers residing at the bottom of the economic pyramid (BOP) will be able to derive the benefits of dignity, respect, choice and self-esteem and, will be afforded the opportunity to break out of the poverty trap The basis for this process of co-creation is that the poor are perceived as value-conscious consumers and joint problem solvers who collectively possess vast entrepreneurial potential and purchasing power. This multi-trillion dollar market segment requires business strategists to focus their efforts on providing low-cost but good quality products and harnessing creative and novel approaches in order to convert the problem of poverty into a lucrative business opportunity that benefits all constituents involved (Prahalad & Hart, 2002)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
