Subsistence Market Research Articles

MODELING CUSTOMER LOYALTY INTENTIONS, FOOD QUALITY AND DEMOGRAPHIC MODERATORS IN SUBSISTENCE MARKETS

The study sought to determine the strength of the relationship between food quality and customer loyalty intention in the restaurant industry. More importantly, the study sought to determine the moderating effects of demographic variables (age, gender and level of education) on the association between food quality and customer loyalty intentions. The study was informed by the theory of customer loyalty. To substantiate the model of the study, a sample of 200 respondents was drawn from selected restaurants using a structured questionnaire. The main effects between food quality and customer loyalty intention were tested using inferential statistics whereas moderated effects of demographics (age, gender and level of education) were computed using moderated multiple regressions. All the hypothesised moderators were supported with significant interaction effects. The results suggest that the nexus between food quality and customer loyalty intention is not a straight forward relationship. More sensitive consumers were young adults, females and those with tertiary education. Therefore, the study validates the food quality and customer loyalty scales in a subsistence market. Testing moderating effects of demographic profiles brings precision in theoretical models in restaurant consumer behaviour studies, which are sparse in extant literature.

Subsistence small business entrepreneurs in Pakistan

ABSTRACT Subsistence small business entrepreneurs operate to fulfil the necessities of life but do so on a smaller scale with fewer resources and capital. In this paper, we will explore the domains of entrepreneurial ecosystems in Pakistan, to understand the support needed for subsistence entrepreneurs. Following a qualitative research approach, data are collected through in-depth interviews with subsistence entrepreneurs in Pakistan. This involves developing a systematic structure of knowledge sharing among other subsistence entrepreneurs in the community. We find that all entrepreneurs share their experience and knowledge with each other. This means that the concept of competition does not resonate in their setting; rather, the entrepreneurs use their personal knowledge augmentation to contribute to their community. This paper offers insights that contribute to the subsistence market of Pakistan and the future potential of entrepreneurs in the country.

Culture and attitudes towards contraception of women in subsistence markets: the role of values and social axioms

PurposeThe purpose of this paper is to investigate the effects of culture on attitudes to contraception by rural-based women in a developing economy.Design/methodology/approachBased on data collected from 395 rural women in Eastern Zimbabwe, this study examines the hypothesized relationships between values (resultant conservation, resultant self-enhancement), social axioms (reward for application, social cynicism, religiosity, social complexity, fate control and Ubuntu) and contraceptive attitudes, considering the moderating effects of age and education.FindingsUsing covariance-based Structural Equation Modelling and Multi-Group Analysis, this study found that resultant self-enhancement, fate control, the reward for application and religiosity significantly relate to attitudes to contraception whilst resultant conservation, social complexity, Ubuntu and social cynicism, did not produce significant correlations. Age and education moderate the significant relationships.Research limitations/implicationsThe study's findings suggest that contraception social marketers, non-governmental organizations and health practitioners should develop marketing strategies to neutralize the negative impact of these beliefs held by rural contraceptive consumers to increase contraceptive awareness and uptake in such subsistence markets. In addition, this study provides empirical evidence on the role of Ubuntu as a new culture construct in African markets.Originality/valueDespite being limited to a single developing economy, this paper extends prior research on consumer culture and attitudes on contraception use by exploring the role of values and social axioms, an imperative issue for rural women health and general subsistence market well-being.

Bibliometric mapping on sustainable development at the base-of-the-pyramid

Base-of-the-Pyramid (BoP) is a sustainable proposition that calls on private businesses to alleviate public poverty while fulfilling their own interests. Previous studies show the significance of BoP in the advancement of Sustainable Development Goals. Particularly, in the manner of cooperating with people at the bottom of socio-economic pyramid, multinational enterprises can alleviate public poverty and thus promoting sustainable development at the BoP regions. However, the general state and trend of sustainable development-related studies in the BoP domain are not clear; the popular keywords and theoretical orientations have yet to been determined. This study aims to address these issues by analyzing 273 high-impact articles in the related field from the Web of Science database between 2002 and 2018. A mixed review method is adopted, which combines quantitative bibliometric analysis with qualitative content analysis. The results show that an increasing number of sustainable development-related studies are emerging from the BoP domain, particularly concerning social and economic sustainability in developing countries (or regions). Four theoretical orientations are identified, namely subsistence market, sustainable solution, corporate social responsibility and inclusive business. This study contributes to a deeper understanding of the related research area and at the same time calls for continuing scholarly exploration.

Retailer selection compulsion in the subsistence markets

Although enduring relationships between buyers and sellers encourage subsistence market consumers to shop at a particular retailer, these relationships have a negative side. This study focuses on the issue of ‘retailer selection compulsion’ existing in the subsistence market, which refers to the negative side of these relationships. The purpose of this study is to investigate the factors driving the retailer selection compulsion in the subsistence market. This study adopted a qualitative phenomenological approach. Sixty interviews were conducted with subsistence consumers in two areas: Kolkata and Kharagpur, in the Indian state of West Bengal. The findings have demonstrated that subsistence consumers are compelled to stick to their neighbourhood retailers due to convenience, social capital, and obligations, as well as social identities resulting from a sense of social compulsion, and the value-added services provided by retailers that help overcome the consumers' financial and cognitive constraints. This study contributes to the literature on customer behaviour and retailing. These findings deepen the current understanding of the social capital theory, social identity theory, and bounded rationality theory in the context of subsistence marketplaces. Practically, the findings of this study will contribute to the practice of marketers who target subsistence markets. The findings will also help further entrepreneurial activities in subsistence areas, improve the retailing operations of subsistence retailers, and address exploitative practices of subsistence retailers on poor customers.

Poverty, Business Strategy, and Sustainable Development

The past 15 years have witnessed an exponential growth in business activities aimed at serving the needs and increasing the well-being of disenfranchised individuals in low-income communities. Thousands of new business initiatives, development institution programs, and innovative investment funds focused on poverty alleviation have emerged during this time. Similarly, since the late 1990s when Prahalad and Hart first coined the term Bottom of Pyramid (BoP), and suggested a new, enterprise-based approach to poverty alleviation, there has also been a steady rise in research on business and poverty. A whole new lexicon emerged to describe this phenomenon, including phrases like “inclusive business,” “subsistence market places,” “frugal innovation,” and “impact investing.” Unfortunately, management theory and research have not advanced at the same pace with the BoP business revolution, and consequently knowledge about parameters for successfully integrating business, poverty alleviation and sustainable development still remains ambiguous.

Kafkaesque institutions at the base of the pyramid

ABSTRACTImpelled by neo-liberal ideology, base-of-the-pyramid (BOP) and subsistence market discourses have put emphases on markets, profits and entrepreneurialism. Because of this ideological mooring, there is a marginal understanding of the role of the State and its impact on the poor in these discourses. Franz Kafka’s work provides a critical perspective on the role of the State in BOP or subsistence settings. This ethnographic study in India examines transactions related to land and highlights the Kafkaesque nature of the State. The institutional setting is fraught with Kafkaesque elements such as inaccessible and indecipherable legality, abusive power relations and alienation of subaltern subjects. It further shows that the illicit character of the State is an important reason for illegal practices in subaltern settings.

Implications of transaction cost on the consumer choice heuristics: a grounded theory analysis at the Indian bottom of the pyramid

The present study traces the implications of transaction cost on the consumer choice heuristics at the bottom of the pyramid. With the help of the grounded theory approach for theory generation, the study identifies that endowments like wide-spread low literacy and lack of 4As (awareness, availability, accessibility, and affordability) prompt the subsistence customers to minimise the transaction cost of purchase by resorting to bounded rationality, opportunism and locking-in effects. Such endeavours challenge the chronology of consumer decision-making process for convenience products and lead to an automatic choice of the interlinked market at the BoP even before evaluating the functional attributes of the brands of the required convenience products. Therefore, the findings of the study suggest that the choice of interlinked market limits the process of brand choice and forms an alternative choice heuristics in the subsistence market place.

SOURCING FOR THE BOP: AID-FOCUSED & CONSUMER-FOCUSED SUPPLY CHAINS IN SUBSISTENCE MARKETS

Subsistence markets are recognized as full of potential due to their considerable size, estimated at over four billion people living at the base of the pyramid. Although there has been substantial work describing how products and distribution systems must be uniquely adapted for these markets, less is known about how supply chains are created and managed to support these efforts and satisfy subsistence market customers. We identify two prototypical types of supply chains (aid-based and consumer-based) by which firms outside of subsistence markets can access these markets. In contrast to traditional supply chains, we propose that subsistence market supply chains combine elements of both efficiency and responsiveness; engage with more diverse partners; and rely primarily on relational governance mechanisms. Furthermore, we suggest that aid-focused chains will emphasize responsiveness more than efficiency, will have more homogenous partners, and will use relatively more formal means of managing suppliers. By...

Escravos e cidadãos na Ilha Grande: a alvorada republicana demorou a chegar

The article introduces Ilha Grande, a district in the municipality of Angra dos Reis, and describes its role within the subsistence market economy and the memory of slavery as found in the Angra dos Reis Civil Records. According to the Almanaque Laemmert, this district had the largest number of slaves in the municipality as of the 1870s. Most owners had few slaves, and the majority of landholdings were small. The Angra dos Reis Civil Records did not forget slavery after May 1888. A number of birth and death notifications describe the persons in question as former slaves. Even in the twentieth century, clerks continued to describe various republican citizens as ex-slaves.

Market formation in subsistence contexts: a study of informal waste trade practices in Tanzania and Brazil

The world's low-income majority is increasingly seen as a new market, the base-of-the-pyramid (BOP) market, with opportunities for new business and poverty reduction through inclusive business. This has led to research on activities geared towards this market, such as strategies for market entry and BOP business model design. However, the market itself as a dynamic entity has not been problematized. This paper suggests that defining markets in subsistence contexts as ongoing processes of economic organizing and as bundles of practices, rather than as collections of people, offers additional tools for engaging in their realization. The empirical study of informal waste trade practices suggests that the emergence of a market is linked to the economic organizing process moving from being dominated by exchange practices towards a more diversified dynamic in which these practices become linked to normalizing and representational practices. This more diversified market dynamic is intimately connected to collective organizing efforts on behalf of subsistence market actors.

Social alliances: Business and social enterprise collaboration for social transformation

Social alliances are voluntary collaborations between business and social enterprises addressing social problems too complex to be solved by unilateral organizational action. The present study adopts a systems approach to the study of social alliances and concurrently analyzes the objectives instrumental in the formation of the cross-sector collaboration, the inputs provided by the partners and the outcomes and social transformation impact of the social alliances in a subsistence market place context. The research questions addressed by the study are “Why and with what consequences do business and social enterprises establish alliances?” The exploratory research follows the methodological tradition of using case studies in collaborations. Comparative analyses of the six social alliance cases indicate patterns regarding the adoption and prioritization of alliance- and partner-level objectives, provision of resources by partners, intended scope and social transformation impact, and measurement of results. Some of the observed patterns support prior research and are in line with the resource dependence and institutional perspectives. Despite their limited capacity for significant social change, the results highlight the potential of incremental contributions of social alliances in social transformation in subsistence market places.

Enhancing New Product Adoption at the Base of the Pyramid: A Contextualized Model

Companies are recognizing and pursuing the opportunity to serve the market known as the base of the pyramid (BOP), i.e., consumers who live in poverty in developing countries. The BOP constitutes the largest remaining global market frontier for businesses. Until recently, it has been ignored because of its seeming unattractiveness and insurmountable challenges compared with middle‐ and high‐income markets. However, BOP consumers desire and are able to pay for quality products tailored to their needs. In response, firms are developing new products specific to the demands and conditions of this low‐income population. To innovate effectively, ensuring new products are well received, firms need to know how to enhance new product adoption among these consumers despite the barriers of poverty. We address this need by developing a model of adoption contextualized to the BOP. Based on theories of innovation and poverty, and drawing on the emergent subsistence market literature, we propose that certain new product characteristics, social context dynamics, and marketing environment approaches moderate or counter some of the limits of poverty, making adoption possible. We then discuss the managerial and theoretical implications of our model for innovation practitioners and researchers.

Strategic motivations and choice in subsistence markets

This paper examines the different motivations behind strategic choice in base of the pyramid or subsistence markets. Two strategies are examined through comparative analysis: market extension and strategic intent. Using two commercial bank's micro-lending business strategies in Sri Lanka, a comparative case study suggests that strategic intent is motivated by building capabilities over time that results in successful poverty alleviation, whereas market expansion is motivated by an immediate desire to expand overall sales revenue. This conclusion may help reframe subsistence market or BoP arguments away from such false choices as appropriate size (e.g., multinational corporations versus small and medium size enterprises) toward more useful discussion on understanding why firms participate in subsistence markets and what is the motivation behind their strategic choice. By considering more than just size and scope and studying the motivations behind long-term solutions to poverty alleviation, firm success can be better understood and achieved.

Fuel-efficient stoves for Darfur: The social construction of subsistence marketplaces in post-conflict settings

This paper explores the development of market roles and transactions in fuel-efficient stoves in Darfur from 1997 to 2008 as a grounded example of how subsistence markets are socially constructed in post-conflict settings. Using a combination of archival texts, interviews, and real-time discourses by protagonists, this study explains the who, what, why and how of emergent marketplaces by showing how development interventions come to imbue market participants and transactions with socially (re)constructed meanings. The fitful emergence of subsistence marketplaces for fuel-efficient in Darfur is punctuated by development interventions which at times under- or misrepresent market participants and by successes and failures in bringing together trainers, producers, sellers, consumers and users of fuel-efficient stoves. Subsidies and handouts delay and distort the emergence of grassroots demand, choices, and prices; a plurality of competing development interventions re-shape the supply. By the end of 2008, the subsistence market for fuel-efficient stoves catches momentum, engaging over 52% of the Darfuri communities in market transactions for the product. As market participants gain voice and influence they reshape the market to favour mud stoves over metal stoves. Reports by several development organizations suggest that among fuel-efficient stove users, 90% use mud models, and 49% of women who own both mud and metal stoves prefer mud stoves.

The Village Network™: Partnership and collaboration to alleviate poverty in subsistence marketplaces

The Village Network is a unique model of poverty alleviation involving the collaboration of a host subsistence market community and a nonprofit organization, typically a university, with a multidisciplinary academic module. All parties in this partnership stand to gain from collaboration. The subsistence market benefits from the skill set and labor provided by the university. The university benefits by placing their students in a position to apply theory guided by the social and economic development experience and insights of the indigenous village leadership. The coordinating organization improves relationships and fosters growth in developing communities. The discussion then focuses on insights about subsistence marketplaces that emerge from this initiative.