Beyond radical affordability in the base of the pyramid: The role of consumer self‐confidence in product acceptance

Abstract

When developing products and services for base of the economic pyramid (BoP) consumers, it has been widely assumed that organizations must set extremely low prices that are dependent on substantial product acceptance and economies of scale. However, such pricing is often not feasible. Growing evidence suggests that more moderate price

Technological Adoption in Emerging Economies: Insights from Latin America and the Caribbean with a Focus on Low-Income Consumers

“…Furthermore, Blocker et al [23] state that, similar to affluent market contexts, education, age, and gender affect product adoption in disadvantaged environments [24]. Even within a limited income range, income can affect consumption experiences for new products.…”

“…In particular, the inability to digest package information, deconstruct persuasive messages, or tally up cash at the register can reduce consumption [28]. Impoverished living increases cognitive load and buffer [23], reducing contextual sensitivity and impairing decisionmaking [29][30][31].…”

“…These five aspects frame low-income customers' consumption and openness to new products. These deficits show how low-income customers are constantly stressed and anxious in the marketplace [23,28,32], suggesting that businesses should focus Technological Adoption in Emerging Economies: Insights from Latin America and the Caribbean… DOI: http://dx.doi.org/10.5772/intechopen.112004 on building trust and relationships with low-income consumers, providing them with value-added services, and using social media and mobile technology to reach them [23].…”

“…Finally, Blocker et al [23] studied consumer self-confidence among low-income consumers. The study finds that self-confidence affects consumers' information search and share intention and significantly affects product expertise.…”