Enhancing market exchanges at the base of the pyramid

Abstract

The base of the pyramid (BOP) has garnered attention recently, as it constitutes the largest unreached global segment. While international marketers are interested in serving this segment, the BOP is characterized by deep and wide poverty, which dampens market exchanges, or making/selling and buying/consuming activities. This study aims to address a) the specific issue of how national culture distinguishes BOP markets in terms of exchange activities, and b) the broad issue of how market exchanges can grow and flourish by accounting for comparative differences across BOP markets. We do so by drawing on theories of poverty, culture, human assets, and information technology as well as the BOP literature to propose a conceptual framework. The framework proposes that restrictive poverty may be ameliorated through enhanced, or more active, market exchanges. Three factors have an enhancing role: national culture (performance orientation), nontraditional capitals (social and creative), and transformative technologies (mobile telephony). Furthermore, due to differences in culture, capitals, and technologies, BOP markets vary in market exchange behaviors, indicating opportunities for strategic and tactical marketing. We conclude with managerial and theoretical implications of the framework.

Base of the pyramid orientation, imitation orientation and new product performance in an emerging market

“…This market is characterized by illiteracy, poor health conditions, limited resources, inaccessibility to media, geographic isolation, and inexperience in consumption (Hammond and Prahalad, 2004;Prahalad, 2005). Nevertheless, it is also one of the biggest global market frontiers for firms today, encompassing around $9 trillion in assets and over $5 trillion in purchasing power (Dembek et al, 2020;Nakata and Antalis, 2015;Prahalad, 2012).…”

“…However, an emerging stream of literature suggests that firms could effectively adopt imitation strategies in the BOP market to enhance their performance (Adomako et al, 2021;Nagy et al, 2019). When developing products for the BOP market, the low income of the consumers must be accounted for, as well as other conditions such as inadequate housing, poor standards of living, and remote locations (Decker and Obeng Dankwah, 2022;Nakata and Antalis, 2015;Ramani and Mukherjee, 2014). Imitation orientation, which can aid firms in lowering time and cost associated with new product development, can be effectively used to develop products tailored for the unique characteristics of BOP consumers.…”

Sustainability performance measurement in risk and uncertainty management: An analysis of base of the pyramid supply chain literature

“…Redesign of chain configuration and customer satisfaction, product improvement, and supplier improvement Findings suggest a correlation between redesign of chain configuration and customer satisfaction, product improvement, and supplier improvement (Figure 5). It entails that creating distribution channels close to customer vicinity increases customer satisfaction (Nakata & Antalis, 2015). Moreover, the redesigning chains close to customers that also enable mass customizations of the products shifts the decoupling point thereby offering improved products to the customers (Bechtsis et al, 2018).…”

Mercado base de pirámide urbano y rural en Norte de Santander, Colombia

“…La heterogeneidad de las economías en desarrollo plantea retos como la comprensión de las necesidades de los clientes (Thakur, 2015), quienes a diferencia de países desarrollados, tiene Mercado base de pirámide urbano y rural en Norte de Santander, Colombia Contreras Julio, Wilches Sandra, Delgado Monica y Cerda Marcos________________ 711 diferentes realidades socio-culturales, que impactan en su estilo de vida, expectativas y hábitos de compra (Craig y Douglas, 2011;Puente y López, 2011), exigiendo a las empresas, tener en cuenta el comportamiento de consumidores de la BoP para el diseño de estrategias de marketing (Alur y Schoormans, 2013;Chikweche y Fletcher, 2011;Ireland, 2008;Nakata y Antalis, 2015;Rajagopal, 2009;Saavedra, 2004;Sridharan y Viswanathan, 2008).…”