Study objective: This paper analyzes the impact of non-essential purchases, particularly smartphones, and patience on self-determination and subjective well-being of bottom of pyramid customers.Method: 665 questionnaires were personally administered to respondents. Partial Least Squares Structural Equation Modelling (PLS SEM) was performed using SmartPLS software to test multiple dependency relationships between non-essential purchases, self-determination, subjective well-being and patience.Main results: Non-essential purchases, particularly smartphones, had a direct effect on self-determination and an indirect effect on subjective well-being of bottom of pyramid customers. Non-essential purchases fulfilled psychological need for self-determination, that led to subjective well-being. Moreover, patience was established as a significant predictor of self-determination and subjective well-being.Theoretical/ methodological contributions: This paper makes a theoretical contribution by connecting social identity theory, self-determination theory and patience with non-essential purchases and subjective well-being of bottom of pyramid customers.Relevance/ originality: Relatively fewer researches are available in Western marketing literature that connect patience with self-determination and subjective well-being of bottom of pyramid customers. The novel insight of this research showed that non-essential purchases can restore a sense of subjective well-being in such customers and when poverty related adverse situations tend to lower subjective well-being of these customers, patience positively impacts their self-determination and does not let them despair.Managerial and social implications: Marketers can use the insights from this research to develop products that satisfy bottom of pyramid customer’s psychological needs for self-determination that lead to subjective wellbeing in a consumer society.
This paper aims to broaden the understanding why bottom of pyramid customers in Pakistan purchase non-essential items despite their financial constraints. Qualitative data was collected through in-depth interviews from a purposive sample of 14 respondents. NVivo 12 was used to analyze data. In the light of self-determination theory, this hermeneutic inquiry suggests that bottom of pyramid customers who are negatively stereotyped on account of their consumption inadequacy, have a specific need to improve self-worth. They struggle to engage in socially relevant consumption practices, to avoid social exclusion. Internet increases their awareness about products that they consider necessary for a minimal level of decent living. This digital influence transforms their consumer behavior. Since consumer culture does not adequately define what makes up a minimally decent living, bottom of pyramid customers will keep on aspiring products that they perceive as socially relevant for a better lifestyle. These reasons make ‘non-essential’ purchases extremely essential and relevant for bottom of pyramid customers. This practice is observed in more affluent people too, however, the sacrifices that bottom of pyramid customers make in order to fulfill their need for a more respectable social standing, are relatively more critical than the trade-off that more affluent people make among their choices. This research will enable marketers to understand value requirements of bottom of pyramid customers more deeply and create more precise value propositions.
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