What Constitutes the Bottom of the Pyramid (BOP) Market?

Fasiha Subhan1; Amira Khattak2
1Doctoral Student, The University of Auckland, New Zealand
2Assistant Professor Prince Sultan University, Saudi Arabia
f.subhan@auckland.ac.nz, akhattak@psu.edu.sa

 

Abstract: The BOP is a concept of dividing the world into an economic pyramid by keeping the privileged on the top and unprivileged poor at the bottom. Businesses need to adopt innovative ways of doing businesses in a market consisting of billions of underprivileged poor consumers. However, the main question is, does this huge segment have the capability of becoming profitable for companies? This research analyzes the viewpoints of various theorists and organizations about the agreed income level of a typical BOP and in doing so attempts to arrive at an ideal definition of the BOP market for businesses. Further, the research is critical of including only income as a major determinant of the BOP and incorporates broader (social and educational) dimensions while establishing the boundaries of an ideal BOP market assuming that income cannot solely measure poverty.

Keywords: Bottom of Pyramid (BOP), Income, Definition of BOP, Macro characteristics of BOP
 
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