Bottom Of The Pyramid Consumers Research Articles

Behavioural intention to adopt mobile wallets at the bottom of the pyramid: a developing economy perspective

PurposeThe 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/approachTo 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.FindingsThe 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/valueThis 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.

Exploring the Reactions of Bottom of The Pyramid Consumers when Protecting Consumer Rights

Supposedly the popular belief that customers actively participate in market activity is not always the case. This is primarily due to marketers' poor consideration of consumer rights protection and a lack of awareness about the issue among both marketers and consumers. This is especially evident in developing-country markets like Sri Lanka, where certain consumer segments, such as those at the Bottom of the Pyramid (BOP), face limited consumption opportunities, making them vulnerable. As a result, the goal of this study is to investigate BOP customers' attempts to act against violations of consumer rights in an environment defined by constrained spending patterns. In-depth interviews were conducted with twenty participants from vulnerable populations in Sri Lanka's southern province. The participants were chosen using a non-probabilistic snowball sampling method, and the data was analyzed thematically. According to the study, there are two basic categories of attempts exhibited by the Bop population when acting against the violation of consumer rights. The expressive approach and the silent approach are the two approaches. Under each approach, sub-themes were identified. Although a consumer protection mechanism exists, it does not always provide adequate protection to consumers in the BOP sectors, adding to greater vulnerability and disparities in the marketplace. Keywords: BOP consumers, Consumer rights, Vulnerability

Connecting BOP consumers and retailers: What drives small-time retailing through social media?

Social media has emerged as an all-inclusive technology with the potential to integrate with the Bottom of the Pyramid (BOP) consumers to provide manifold benefits, ranging from education to retailing. Though the presence of BOP on social media has increased lately, the desired level of adoption by BOP consumers is still far from reality. There is a need to understand what motivates BOP consumers, primarily engaged in small-time retailing (STR), to adopt social media in their daily lives and for what purposes. Using the Gioia method and grounded theory approach, the study interviewed 52 BOP participants to investigate the motivational themes that drive them towards social media adoption. The mined themes were found to align with the Uses and Gratification 2.0 (UGT 2.0) theory, which were classified into four sub-elements of UGT 2.0: agency, modality, navigability, and interactivity. The classification provides interesting insights into what gratifies the BOP consumer to adopt social media as a tool for self-expression and growth. The study provides theoretical and practical insights for academicians and industry to better understand why BOP consumers engaged in STR adopt social media.

Reaching out to the bottom of the pyramid to achieve financial inclusion

PurposeThis study aims to explore the factors influencing the bottom of the pyramid (BOP) consumers’ adoption and usage intention towards mobile payment (m-payment) to achieve financial inclusion and sustainable development goals.Design/methodology/approachA qualitative research design is used to explore the enablers and inhibitors that influence BOP consumers’ m-payment adoption and usage intention. To collect the qualitative responses, semi-structured in-depth interviews with BOP respondents were conducted. The thematic analysis using the text mining technique will be used to analyse qualitative data for exploring the predominant factors affecting m-payment adoption intention and usage.FindingsThe results suggested awareness, social influences and self-efficacy as crucial enablers and privacy and security risks and vulnerability concerns as crucial inhibitors towards m-payment adoption and usage.Originality/valueAs a novel contribution to the BOP, financial inclusion, sustainable development goals and m-payment literature, this study unfolds several unknown perceived benefits and perceived sacrifices that influence the BOP consumers’ m-payment adoption intention and usage. The study’s findings help the government and banks formulate and implement strategies to achieve financial inclusion among BOP consumers.

Exploring the reactions of the bottom of the pyramid consumers when protecting consumer rights

Purpose: Supposedly the popular belief that customers actively participate in market activity, is not always the case. This is primarily due to marketers' poor consideration of consumer rights protection and a lack of awareness about the issue among both marketers and consumers. This is especially evident in developing-country markets like Sri Lanka, where certain consumer segments, such as those at the Bottom of the Pyramid (BOP), face limited consumption opportunities, making them vulnerable. As a result, the goal of this study is to investigate BOP customers' attempts to act against violations of consumer rights in an environment defined by constrained spending patterns.
 Design/methodology/approach: In-depth interviews were conducted with twenty participants from vulnerable populations in Sri Lanka's southern province. The participants were chosen using a non-probabilistic snowball sampling method, and the data was analyzed thematically. 
 Findings: According to the study, there are two basic categories of attempts exhibited by the Bop population when acting against the violation of consumer rights. The expressive approach and the silent approach are the two approaches. Under each approach, sub-themes were identified.
 Originality: Although a consumer protection mechanism exists, it does not always provide adequate protection to consumers in the BOP sectors, adding to greater vulnerability and disparities in the marketplace.
 Implications: According to the findings of the study educating vulnerable groups about their consumer rights protections and the actions they can take when their rights are violated is crucial. It is also important to ensure that all layers of regulatory bodies are actively involved in safeguarding their rights.
 Keywords: BOP consumers, Vulnerability, Consumer rights

Does reference-group comparison impact compensatory consumption for bottom of the pyramid (BOP) consumers?

ABSTRACT This article investigates the effect of reference group comparison on compensatory consumption for bottom-of-the-pyramid (BOP) consumers. While existing research reveals a relationship between upward social comparisons and compensatory consumption, there has been minimal focus on how BOP consumers react to such comparisons. By conducting multiple studies targeting low-income but educated employees of different organizations, this research demonstrates that BOP consumers engage in conspicuous consumption behavior; in particular, they prefer conspicuous material goods when undergoing reference group comparisons (both upward and downward), which is a marked contrast from their more affluent peers and the western population. Furthermore, while incidental envy explains the underlying mechanism of the relationship between upward reference group comparison and conspicuous material consumption, anxiety is the mediator between downward reference group comparison and conspicuous material consumption for BOP consumers. Overall, this research significantly contributes to the BOP and compensatory consumption literature and has managerial implications for marketers serving BOP markets.

BoPMLPIP: Application of Classification Techniques to Explore the Impact of PIP among BoPs

This study tries to gain insight into the effect of demographic and psychological variables on the Bottom of the Pyramid (BoP) consumers for making Packaging Influenced Purchase (PIP) decisions by focusing on two specific consumer behaviour theories - compensatory consumption and consumers’ resistance. Being the product's face, packaging contributes heavily to the above mentioned two streams of consumption behaviour. A collection of ten demographic variables and four psychological variables have been administered on a sample of 1400 BoP consumers to explore their effect behind making PIP of selected FMCG products. Various classification techniques have been deployed to capture the impact of these variables. This experimental research design revealed that both demographic and psychological variables affect the PIP. The comparison between urban and rural BoPs potentially comes with the guidelines for practical marketing implications.

Social Innovation for Sustainability and Social Inclusion

Companies are realising now that business is not only about selling products to rich consumers but also to serve the underserved bottom-of-the-pyramid (BOP) markets. Serving these customers calls for innovative methods. This had led to reinventing business models to expand the nature of their businesses from mere commercial motives to social ones as well; the understanding that businesses succeed if they go beyond their mandate of making profits. The future rests on three paradigm shifts taking place in BOP approaches: innovation, transformation of companies into social enterprises and technological advancements that bring products closer to BOP consumers. That is to say, companies today re-invent their business models and their very approach of doing business. Such companies stand a greater chance of success and long-term survival. This article describes the concepts of social business, social entrepreneurship and social innovation. We illustrate the concepts with mini case studies or examples of several companies that have achieved innovation in products, business models or processes to serve BOP markets. We describe efforts that solve problems of consumers who are disadvantaged because of distance, education or purchasing power. If this ‘social innovation’ betters the life of consumers, it could result in sustainability and inclusive development. The world is slowly realising that the existing business models that place importance on relentless pursuit of profits are causing immense damage to our society and environment. The objectives of business must change. Milton Friedman’s famous saying, ‘the sole purpose of a business is to generate profits for its shareholders’ is no longer accepted today as businesses find that they must cater to social objectives as well. This article describes that this can well be achieved, as illustrated by several companies who achieve both—financial profits and social good. Drawing from examples of successful initiatives, new business models are being created that provide affordable products and services for disadvantaged consumers. We have taken elements from the business models of these companies to figure out what the future looks like. These companies, we find, found solutions through an action-oriented mindset to solve long-standing problems. Firms that embrace experimentation and rapid prototyping stand to win huge new markets and profits. They invest in distribution and training of local resources, develop innovative products and processes, involve stakeholders and above all, build a social purpose in their objectives. Social innovation and social entrepreneurship shift the focus of governments and companies towards neglected or BOP consumers who are otherwise unapproachable. Examples of social innovation show that it touches the lives of millions of people, empowers them and leads to sustainability. Investments in social innovation that are both sustainable and socially inclusive are the need of the hour.

BoPCOVIPIP: Capturing the Dynamics of Marketing Mix Among Bottom of Pyramid Consumers during COVID-19

The behaviour of consumers mostly follows the guidelines derived from marketing theories and models. But under some unavoidable circumstances, the consumers show a complete deviation compared to their existing consumption pattern, purchase behaviour, decision-making and so on. Under similar circumstances, this study aims to capture both urban and rural Bottom of the Pyramid (BoP) consumers’ perceptions of various marketing mixes during the COVID-19 pandemic situation. With a sample size of 378 and 282, the perception towards different marketing mixes has been captured for Pre-COVID and During-COVID periods, respectively. The adopted quantitative analysis indicates a difference in perception towards marketing mix During COVID compared to Pre-COVID. Moreover, the selection of West Bengal, India, as an area of research fulfills the BoP literature’s existing prominent research gap. This study also comes with the potential to assist marketers and the Fast-Moving Consumer Goods (FMCG) industry in framing strategies to target BoP consumers.

Multi Criteria Decision Making based Approach to Assist Marketers for Targeting BoPs Regarding Packaging Influenced Purchase during Covid-19

This study has a novel approach to capture the attitude of Bottom of the Pyramid (BoP) consumers towards Packaging Influenced Purchase (PIP) during the Covid-19 crisis. Over the years, BoPs consumers have established themselves as an emerging market with ample growth and opportunities. The authors suggested a Multiple-Criteria Decision-Making (MCDM) based framework to assist marketers in targeting both urban and rural BoP consumers regarding PIP. Packaging elements and influence of family, extended family, peers have been included in the framework for gaining in-depth understanding. With a sample size of 100 from West Bengal, this focus group-based study can fulfil the BoP literature’s existing prominent research gap. Results indicate the difference in attitude for urban and rural BoPs towards PIP during this crisis. The fusion of MCDM based approach and relevant machine learning-based technique aims to assist marketers in identifying, formulating, and redefining an action plan.

Segmenting the Bottom of the Pyramid Consumers: Theoretical Approach

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.

Packaging-influenced-purchase decision segment the bottom of the pyramid consumer marketplace? Evidence from West Bengal, India

This study explores whether consumer segments can be formed by the Bottom of the Pyramid (BoP) consumers based on their perception towards various packaging attributes while making Packaging Influenced Purchase decisions (PIP) for buying Fast-Moving Consumer Goods (FMCG) products. Along with facilitating targeting for marketers, this study aims to contribute significantly to the literature of ‘BoP consumer behaviour’ where a visible research gap exists. FMCG, being a low-involvement market by nature, most of the purchase decisions are made under time pressure. So, packaging being the point of interaction between products and consumers, has huge potential to influence purchase decisions. A sample of 1530 BoP consumers has been considered from West Bengal, a state of India with high Human Poverty Index. Along with clustering techniques, Self-Organizing Map (SOM) has been applied for validation and visualization. The result shows existence of clear segments along with the variability of influences of the packaging attributes.

Executive Functions of BoP Consumers: Research Propositions, Conceptual Framework and Implications for Marketing Strategies for BoP Markets

Although extant literature has studied consumers at the bottom of the pyramid (BoP) extensively, there seem to be some lacunae in terms of a deeper understanding of the cognitive peculiarities of low-income consumers owing to their resource-lean environments and childhood uncertainties. In this paper, we attempt to address this gap by focusing on poverty-induced idiosyncrasies in a set of vital cognitive processes called executive functions (EFs). Specifically, we exlore the possible impact of such anomalies in EFs on a BoP consumer’s information processing abilities, decision-making processes, and consumption behaviors, through a series of propositions and a conceptual framework. The focus is on two core EFs, inhibition and working memory, which tend to make BoP consumers susceptible to persuasive messages, while lacking sufficient self-control, goal-directed behavior, analogy-processing and comparative evaluation abilities. We then present several managerial, policy and research implications of the study.

Thinking, feeling and coping by BoP healthcare consumers: policy-based intervention in an emerging market

ABSTRACT We examine the co-creation of value by bottom of the pyramid consumers in the health services context. Following a qualitative approach, we use the empirical context of the National Rural Health Mission (NRHM) in India, one of the largest healthcare policy interventions in the world. Our grounded theory-based research used semi-structured interviews conducted in 28 villages across three states using a purposive sample (NRHM beneficiaries). The qualitative data were analysed utilising a discovery-oriented approach, in accordance with the value co-creation and service-dominant logic frameworks. We draw insights about the roles of individual agency, the individual’s social milieu, and supplementary forces in affecting different types of individual wellbeing. Our results help to explicate the processes of the exploitation, combination and reinforcement of resources within a co-created healthcare ecosystem, and six propositions explain value co-creation-driven health service delivery. We also discuss implications for marketers and policy implementers.

Television viewing and conspicuous consumption of households: evidence from India

Purpose The purpose of this paper is to empirically examine the effect of television viewing duration of a household on its annual category-level conspicuous consumption and also the enhanced level of this relationship for the bottom of the pyramid (BoP) households. Design/methodology/approach Hypotheses formulation was guided by cultivation theory and the concept of compensatory consumption. The hypotheses were later examined by using ordinary least square (OLS) regression on the data from the large nationally representative India Human Development Survey, 2011 (IHDS-II) database. Findings Television viewing duration of the household exerts a positive effect on its annual category-level conspicuous consumption expenditure. The nature of this relationship is enhanced for the BoP households. The annual category-level conspicuous consumption for the BoP households increases by close to four percent for every hour increase in their television viewing duration while such increase for other households is close to one and a half percent only. Research limitations/implications Findings can be further strengthened by using time-lagged dependent variable taken at monthly intervals, as well as survey data linking household television viewing duration with desirability of conspicuous goods. Practical implications Managers can rely on television for reaching BoP consumers while being cognizant of the negative effects of promoting conspicuous consumption among them. They need to adopt a responsible marketing approach. Besides regulating television, policymakers need to work toward increased provisioning of educational and financial services for BoP households. They can leverage television for promoting beneficial behavior in BoP households. Originality/value The study empirically establishes the external validity of cultivation theory at the household level in an emerging economy by using a large nationally representative database. It also establishes the higher vulnerability of BoP households to increase category-level conspicuous consumption in response to television viewing. To the best of the authors’ knowledge, this is the first study to empirically examine the effect of television viewing duration of household on its annual category level conspicuous consumption.

Analysing pro-poor innovation acceptance by income segments

PurposeTo enhance the understanding of the moderating influence of different bottom of the pyramid (BOP) income segments on the antecedents of pro-poor innovation acceptance.Design/methodology/approachIn this study, 320 BOP consumers with a range of low-to-moderate literacy and low-income levels were used as a convenience non-probability sample for undertaking quantitative analyses.FindingsOnly the influence of perceived usefulness on intention is moderated by income segments, such that the effect will be stronger for low-income BOP segment. Moreover, the influences of relative advantage, compatibility and observability on intention are moderated by income segments.Practical implicationsThis empirical work has considerable private sector and public policy implications for companies and government designing/selling products for millions of poor people in developing and emerging economies.Originality/valueThis study contributes originally to knowledge in the subject area as there are very few studies that clearly and systematically analyse the key antecedents influencing the adoption intention of pro-poor technological innovations in the BOP market.

Decoding Western Festive Season Symbols and Rituals in Marketing Messages: A Bottom of the Pyramid Consumer Study in South Africa

This study explored the communication of marketing messages containing traditional, Western festive season symbols and rituals. Specifically, the research sought to understand the decoding of such messages portraying festive season symbols (like Santa Claus and Christmas trees) and rituals, by Afrocentric bottom of the pyramid (BOP) consumers. This qualitative study involved interviews with thirty-one participants in two metropolitan areas in South Africa. The study used a combination of semi-structured interview questions and treatments of two South African television advertisements and two newspaper advertisements depicting Western festive season symbols and rituals. The study revealed a broadly positive sentiment towards the festive season, where festive season activities allow participants to implement their Afrocentric cultural values of unity and collective responsibility. Findings also show that Afrocentric cultural values do affect the decoding of these marketing messages. There was also a variety of responses to marketing messages displaying the symbols of Christmas trees and Santa Claus, which were not common in BOP consumer households. The key recommendation highlighted by this study is that marketing messages communicated to South African BOP consumers should also consider Afrocentric values of unity and collective responsibility.

Influence of corporate social responsibility on bottom of the pyramid consumers' purchase intention

Corporate social responsibility has become one of the key strategic tools for a business organisation for sustaining and maintaining long-term profitability and growth. Although the influences of corporate social responsibility on consumer behaviour have been widely studied, very few studies have attempted to examine the role of corporate social responsibility on consumer behaviour, specifically for the consumers from the bottom of the pyramid (BoP). Thus, to contribute to the scarcity of literature, this is the first study that investigates how the dimensions of corporate social responsibility influence the purchase intention of the consumers from the BoP. The results of the empirical study reveal that among the dimensions of corporate social responsibility, legal responsibilities, ethical responsibilities, and philanthropic responsibilities have significant influences on the purchase intention of the consumers from the BoP. However, no significant influences of economic responsibilities and environmental responsibilities on the purchase intention of the consumers from the BoP were observed.

Consumption of Bottled Water at the Bottom of the Pyramid: Who Purchases First?

While consumer and marketing research in developed markets is an established field, research on consumers in an Bottom of the Pyramid (BoP) setting is less established and mostly conceptual or qualitative. This paper examines the individual heterogeneity and the local context of BoP consumers with an empirical study on consumption of low cost bottled water on the Kenyan coast and the capitals of Uganda and Rwanda. The empirical analysis builds on existing research exploring consumer behavior, and it studies a database of 713 bottled water consumers in Kenya, Uganda and Rwanda. Consumers with a higher level of education were less likely to be late consumers. Additionally, early consumers were more likely to purchase due to a purposeful search for a bottled drinking water solution. Since we control for location specific effects we highlight the importance of supply driven consumption in the BoP market. Furthermore, the results suggest that the two water companies may not be reaching their targeted low-income consumers but rather middle class consumers. The research contributes to the larger BoP debate by presenting evidence that consumers in a BoP setting may purchase more on the basis of supply of a product rather than other socio-demographic factors such as income.

Not one segment: using global and local BoP characteristics to model country-specific consumer profiles

PurposeThis paper aims to show that a generic bottom-of-the-pyramid (BoP) segmentation strategy does not represent a multi-country BoP consumer profile. A series of multinational entry failures has clearly shown that a one-size-fits-all strategy is inappropriate for emerging markets, especially in Africa.Design/methodology/approachThe study analysed literature defining and profiling BoP consumers at both a global and local level using South Africa as a case study. Being Africa’s largest economy, South Africa was an ideal subject. The findings were then independently triangulated with seven experts for validation.FindingsThe results show that the South African BoP has eight characteristics that align with definitions in global BoP consumer literature. An additional five characteristics were identified that were not general BoP characteristics, and that applied specifically to South Africa.Practical implicationsThe findings add to the growing evidence that BoP markets are complex and heterogeneous, and they make a case to consider each BoP market individually. As there is yet to be a model to define BoP market differences systematically, this study provides a foundation for new developments in BoP segmentation in Africa and in other emerging markets.Originality/valueWhile there is evidence that BoP markets are complex and heterogeneous, there is yet to be a model to begin the process of defining these differences systematically to improve strategic direction for multinational companies and regional decision makers. This study, therefore, provides a foundation for new developments in this field of segmentation in Africa and in other emerging markets globally.