The Nature of Family Decision Making at the Bottom of the Pyramid (BoP): Social and Managerial Implications

Abstract

This paper describes the consumer at the bottom of the pyramid (BoP) to shed light on the resources and constraints associated with consumption in this marketplace. It compares and contrasts the nature of decision making in BoP households and roles of its members to research mostly conducted in the context of western societies. Data for this paper comes from a qualitative study conducted with 58 urban poor consumers in India who provide detailed accounts of their household purchase behavior. Findings from this study carry significant ethical and marketing implications for companies that target the BoP segment and highlight the importance of revising marketing strategy to better fit the needs of the BoP household. This research makes a contribution the literature on transformative consumer research (TCR) to generate insights into poverty alleviation by understanding consumption by the poor. In the area of consumer decision making, the TCR approach advocates to help the poor become better decision makers by customizing market information to fit their cognitive and emotional abilities. We hope that the findings of this study and suggested implications for marketing practice will have help improve the well-being of the poor, reduce their vulnerability through innovative marketplace interventions which in turn will empower the poor consumers.