A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

In many developing countries, buyer-seller exchange among the poor occurs mainly in unique, socially embedded environments that are essentially informal markets. This article describes the findings of an in-depth, in situ study of an informal-economy subsistence marketplace in South India. Through interviews with consumers and owners of survivalist microenterprises, the authors identify seven themes that characterize the subsistence marketplace context, buyer-seller interactions within them, and specific elements of exchange. Drawing on these findings, along with theories of social capital and consumption in poverty, they make the case that business policy in developing countries should aim to empower subsistence entrepreneurs and consumers, embrace emergent solutions, help build bridges between informal and formal economies, and adopt a bottom-up orientation to policy development. The study's findings offer important insights into policy that can help microenterprises of the informal economy become engines of economic growth in these countries.

We propose a new statistical approach to analyzing stochastic systems against specifications given in a sublogic of continuous stochastic logic (CSL). Unlike past numerical and statistical analysis methods, we assume that the system under investigation is an unknown, deployed black-box that can be passively observed to obtain sample traces, but cannot be controlled. Given a set of executions (obtained by Monte Carlo simulation) and a property, our algorithm checks, based on statistical hypothesis testing, whether the sample provides evidence to conclude the satisfaction or violation of a property, and computes a quantitative measure (p-value of the tests) of confidence in its answer; if the sample does not provide statistical evidence to conclude the satisfaction or violation of the property, the algorithm may respond with a "don't know" answer. We implemented our algorithm in a Java-based prototype tool called VeStA, and experimented with the tool using case studies analyzed in [15]. Our empirical results show that our approach may, at least in some cases, be faster than previous analysis methods.

We describe Java-MaC, a prototype implementation of the Monitoring and Checking (MaC) architecture for Java programs. The MaC architecture provides assurance that the target program is running correctly with respect to a formal requirements specification by monitoring and checking the execution of the target program at run-time. MaC bridges the gap between formal verification, which ensures the correctness of a design rather than an implementation, and testing, which does not provide formal guarantees about the correctness of the system. Use of formal requirement specifications in run-time monitoring and checking is the salient aspect of the MaC architecture. MaC is a lightweight formal method solution which works as a viable complement to the current heavyweight formal methods. In addition, analysis processes of the architecture including instrumentation of the target program, monitoring, and checking are performed fully automatically without human direction, which increases the accuracy of the analysis. Another important feature of the architecture is the clear separation between monitoring implementation-dependent low-level behaviors and checking high-level behaviors, which allows the reuse of a high-level requirement specification even when the target program implementation changes. Furthermore, this separation makes the architecture modular and allows the flexibility of incorporating third party tools into the architecture. The paper presents an overview of the MaC architecture and a prototype implementation Java-MaC.

This article uses insights gained from the unique context of subsistence marketplaces, or the base of the pyramid, to put forth a sustainable market orientation for businesses. Using qualitative research and case studies of businesses, ingraining social good in a product-relevant sense is argued to be central and essential for businesses in subsistence contexts to be successful. This analysis is unique in taking a bottom-up in orientation and begins at the microlevel, drawing on psychological and sociological aspects of subsistence marketplaces to derive macrolevel implications.Keywords subsistence marketplaces, base of the pyramid, sustainability, poverty, literacy Understanding and alleviating poverty is crucial to the development of sustainable marketplaces. This paper focuses on subsistence marketplaces characterized by demanding, resource-constrained conditions-and yet unfolding and potentially vast opportunities. These conditions pose challenges to conventional business research and practice, which have developed predominantly through a focus on relatively resource-rich settings. This work is in keeping with the state-of-the-art in this area by examining how, rather than whether, businesses can function in subsistence marketplaces. Recent work has examined poverty from a variety of perspectives, including distributive justice (Hill, Felice, and Ainscough 2007), empowerment and exclusion (Varman and Vikas 2007), consumption and entrepreneurship in subsistence (Viswanathan, Gajendiran, and Venkatesan 2008), social marketing (Kotler, Roberto, and Leisner 2006), market orientation (Carman and Dominguez 2001), and business strategy (Prahalad 2005). This article builds on these perspectives, using the understanding of microlevel reality to derive macrolevel implications. Specifically, insights from the unique context of subsistence marketplaces (Viswanathan and Rosa 2007), or the base of the pyramid (Prahalad 2005), are used to propose a sustainable market orientation for businesses.Distinct from other orientations, such as societal marketing or corporate social responsibility (CSR), a sustainable market orientation that involves ingraining product-relevant social good in businesses is proposed, wherein customer and societal welfare concerns permeate business activities and move to the center of strategic planning. Ingraining product-relevant social good is defined as the development of a deep-seated organizational understanding of individual and community welfare as it relates to product offerings, the incorporation of the goal of enhancing such welfare into business processes, outcomes, and assessments, and the inculcation of product-relevant social good into the organizational culture. ''Ingraining'' refers to a fundamental orientation that affects the knowledge acquired by the organization, the processes, outcomes, and performance metrics of the organization and the culture of the organization. ''Good'' is not referred to in a generic sense but rather focused on how business can enhance the welfare of individ...

Statistical methods to model check stochastic systems have been, thus far, developed only for a sublogic of continuous stochastic logic (CSL) that does not have steady state operator and unbounded until formulas. In this paper, we present a statistical model checking algorithm that also verifies CSL formulas with unbounded untils. The algorithm is based on Monte Carlo simulation of the model and hypothesis testing of the samples, as opposed to sequential hypothesis testing. We have implemented the algorithm in a tool called VESTA, and found it to be effective in verifying several examples.

This article describes the findings of an immersive program of field research on consumers living in poverty in South India and the lessons learned from the development and operation of educational interventions designed to enhance the marketplace literacy of these consumers. Whereas extant research and practice have traditionally addressed two key factors that facilitate market participation for the poor—market access and financial resources—the current research focuses on a third critical and complementary factor—namely, marketplace literacy. The authors contend that to sustainably benefit from enhanced market access and resources, (1) people living in subsistence conditions need to develop tactical or procedural knowledge, or concrete “know-how,” regarding how to be an informed consumer or seller, and (2) this know-how must be grounded in conceptual/strategic knowledge, or “know-why” understanding, of marketplace exchanges. To that end, the educational program outlined begins by familiarizing participants with the purpose and logic of marketplaces and then transitions to the tangible aspects of how these marketplaces function. The article concludes with reflection on the implications for consumer policy, marketing research, and business practice.

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