The Effects of National Cultural Traits on BOP Consumer Behavior

Tsai Kuo,Rex Robielos,Jessica Hanafi,Wan Sun

doi:10.3390/su8030272

Tsai Kuo, Rex Robielos + Show 2 more

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https://doi.org/10.3390/su8030272

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Abstract

Scholars who aim to solve problems with poverty and a lack of resources often focus on bottom of pyramid (BOP) consumer groups. They propose that the traditional TOP (top of pyramid) business strategies are not suitable for BOP populations, and that it is crucial to determine and satisfy BOP consumption demands. The purpose of this study is to find out which factors influence BOP consumption, and to explore BOP integrated products. The concepts of “national cultural traits” and sustainable product design are also used. The findings will help enterprises learn how to make profits in BOP markets (addressing economic goals), while helping the poor get out of poverty (addressing social goals). Two different areas concerning BOP consumers are used to illustrate the results.

Highlights

In June 2013, the United Nations (UN) forecast that by 2050, the world population would reach 9.6 billion [1]
The t-test method is applied in this study to verify whether there are any differences between Indonesia and the Philippines, in terms of national cultural traits and bottom of pyramid (BOP) product design
The results showed that with respect to national cultural traits, Indonesia and the Philippines have significant differences in “individualism” “uncertainty avoidance”, “masculinity”, and “power distance”

Summary

Introduction

In June 2013, the United Nations (UN) forecast that by 2050, the world population would reach 9.6 billion [1]. BOP population groups are those in which individuals have daily incomes of less than 2 USD. It is estimated that four billion people are at the bottom of pyramid. These groups are referred to as “rising stars” or “rising powers” [4]. The BOP populations tend to be relatively isolated, typically leading to strong local cultures and less contact with national or international consumer habits [7]. The BOP may not have adequate education, health care, and appropriate infrastructure. They are often not well served by the private sectors as they tend to pay more for the same products than the TOP. Many enterprises regard the BOP market as a potential market, and many sales models have been developed as a result [4,10,11]

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