Not one segment: using global and local BoP characteristics to model country-specific consumer profiles

Abstract

Purpose This paper aims to show that a generic bottom-of-the-pyramid (BoP) segmentation strategy does not represent a multi-country BoP consumer profile. A series of multinational entry failures has clearly shown that a one-size-fits-all strategy is inappropriate for emerging markets, especially in Africa. Design/methodology/approach The study analysed literature defining and profiling BoP consumers at both a global and local level using South Africa as a case study. Being Africa’s largest economy, South Africa was an ideal subject. The findings were then independently triangulated with seven experts for validation. Findings The results show that the South African BoP has eight characteristics that align with definitions in global BoP consumer literature. An additional five characteristics were identified that were not general BoP characteristics, and that applied specifically to South Africa. Practical implications The findings add to the growing evidence that BoP markets are complex and heterogeneous, and they make a case to consider each BoP market individually. As there is yet to be a model to define BoP market differences systematically, this study provides a foundation for new developments in BoP segmentation in Africa and in other emerging markets. Originality/value While there is evidence that BoP markets are complex and heterogeneous, there is yet to be a model to begin the process of defining these differences systematically to improve strategic direction for multinational companies and regional decision makers. This study, therefore, provides a foundation for new developments in this field of segmentation in Africa and in other emerging markets globally.

Social Stratification, Self-Image Congruence, and Mobile Banking in Colombian Cities

“…Therefore, we recommend that marketing communications better visualize opinion leaders in using the technology, that is, role models who, for this consumer group, reflect an aspirational lifestyle that is accessible to them. This would complement the belief that people have higher levels of trust between themselves or other people rather than with institutions (i.e., the bank) (Lappeman, Ransome, and Louw 2019;Barki and Parente 2006). Furthermore, we affirm that PEOU and PU are relevant antecedents of intention to use, as shown in other studies.…”

Electronic Commerce for Sustainable Rural Development: Exploring the Factors Influencing BoPs’ Entrepreneurial Intention

“…At this stage, the urban e-commerce market is gradually becoming saturated [18], nudging e-commerce enterprises to expand to untapped BoP markets [19,20]. This expansion offsets the lack of physical stores in many rural communities, providing them with greater access to more products and options [5,21].…”

“…The development of rural e-commerce plays a positive role in improving the living standards of the BoP. For example, BoPs can solve the problems of limited options and good scarcity through online shopping [5]. In addition, rural e-commerce has created logisticsrelated jobs for BoP communities, providing many rural residents with the opportunity to work locally instead of emigrating into the city [6].…”

“…In addition, rural e-commerce has created logisticsrelated jobs for BoP communities, providing many rural residents with the opportunity to work locally instead of emigrating into the city [6]. In the development of rural e-commerce, the BoP plays the roles of consumer (e.g., Lappeman et al [5]; Campos et al [7]) and partner (e.g., Wan et al [8]; Chen and Yu [9]).…”

Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid

“…Emerging markets, as well as the BOP and entrepreneurship literature, tend to view those at the BOP as potential consumers for large enterprises (Lappeman et al , 2019) or lesser partners in supply chains, who can operate as distributors due to their knowledge of the BOP environment (Kolk et al , 2014; Borchardt et al , 2020a). However, millions of micro- and small-enterprises (MSEs) at the BOP are non-formalized (Lappeman et al , 2019), may not belong to a large enterprise supply chain or be able to develop technologically sophisticated products and services due to their deprived and informal status (Engelman et al , 2017). This study focuses on such enterprises while also considering them as key producers and players in the BOP market (Dembek et al , 2019; Varga and Rosca, 2019).…”