An Empirical Comparison of Consumer Innovation Adoption Models: Implications for Subsistence Marketplaces

So called “pro-poor” innovations may improve consumer wellbeing in subsistence marketplaces. However, there is little research that integrates the area with the vast literature on innovation adoption. Using a questionnaire where respondents were asked to provide their evaluations about a mobile banking innovation, this research fills this gap by providing empirical evidence of the applicability of existing innovation adoption models in subsistence marketplaces. The study was conducted in Bangladesh among a geographically dispersed sample. The data collected allowed an empirical comparison of models in a subsistence context. The research reveals the most useful models in this context to be the Value Based Adoption Model and the Consumer Acceptance of Technology model. In light of these findings and further examination of the model comparison results the research also shows that consumers in subsistence marketplaces are not just motivated by functionality and economic needs. If organizations cannot enhance the hedonic attributes of a pro-poor innovation, and reduce the internal/external constraints related to adoption of that pro-poor innovation, then adoption intention by consumers will be lower

Entrepreneurship and micro-finance in extreme poverty circumstances – challenges and prospects : the case of Zimbabwe

Using an on-going real case study of a micro-finance project modeled on financial inclusion in Zimbabwe, a country with high levels of poverty, we provide real time insights on entrepreneurship and micro-finance in this environment focusing on the nature of challenges faced by entrepreneurs and potential solutions to these challenges. While acknowledging this is a research stream that has dominated micro-finance, our study extends the scope of research beyond Asia and Latin America to include insights from an African market where micro-finance has recorded significant growth yet very few stories are told about these experiences. Our case study provides an opportunity to reflect on emerging and previously held insights in real time using a project that is still in the process of dealing with these challenges. We then go onto illustrate how our inclusive approach to serving the unbanked segment in Zimbabwe has potential for broader contribution to poverty reduction among citizens who are exposed to extreme conditions of poverty. Our paper also outlines an alternative approach of solutions to the challenges faced by micro-finance entrepreneurs, which could be applied by entrepreneurs in environments facing similar challenges

Financial exclusion : an analysis of the evolution and development of microfinance in Zimbabwe

Zimbabwe's inclusive economic turnaround hinges upon an integrated alignment of different facets of the economy. These include the recovery of smallholder agriculture, stimulating the micro, small to medium scale enterprises to ensure production for the home and export markets. However, central to any intervention that seeks to achieve economic and social justice is a conscious strategy that targets the majority bottom of pyramid (BOP) group of citizens who survive on less than $2.00 per day and make up more than 65% of the total population

Tiger Airways suspension crisis : back in the skies … but will the passengers come back?

Case study: On Saturday 2 July 2011, the Civil Aviation Safety Authority (CASA) suspended the operations of Tiger Airways Australia Pty Ltd due to concerns about the airline's safety protocols. Tiger Airways Australia is part of Tigerair, established in 2004 as a low-priced airline targeting budget travellers across the Asia-Pacific region. The airline operates from four bases in Singapore, Australia, Indonesia and the Philippines and currently flies to over 50 destinations in 13 countries in the Asia-Pacific region. Tiger Airways’ key value proposition on the market is centred around offering travellers affordable, memorable and safe air travel in a market that is dominated by big players such as Virgin and Qantas. However, the airline’s proposition was severely tested by its suspension by CASA in 2011, This resulted in Tiger Airways suspending flights until it had satisfied CASA’s safety requirements. Inevitably the suspension had a negative impact on the airline’s already depressed financial and operational performance, resulting in a loss in 2011. More importantly, air travel is an experience- and perception-driven service; therefore, Tiger’s main challenge in its recovery was inevitably going to be in establishing confidence and a positive image of the brand among air travellers who already have other options for low-cost travel. Whether Tiger Airways managed to recover from this crisis remains a key question, which the marketing team at the airline continues to grapple with in shaping the brand’s future in a cutthroat competitive sector

Unbranded : the challenges of branding for Africa's informal economy

The informal economy’s strategic positioning in Africa’s economic and social landscape creates a unique opportunity for marketers to explore the challenges and opportunities for brand building in this complex context. The purpose of this chapter is to expand the discussion on brand building in Africa from the vantage point of the informal economy to identify challenges and benefits and missed opportunities and prospects. A roadmap that can be used to accelerate and improve brand building in the informal marketing is then outlined. In so doing the chapter raises the following pertinent question: Could the informal economy be the key for marketers to unlock potential opportunities for tapping on the proverbial low hanging fruit for brand building among the often-ignored majority consumers in Africa

Rana Plaza tragedy

Case study: The tragedy at Rana Plaza (Dhaka, Bangladesh) brought to the world's attention the often ignored and 'ugly' side of international manufacturing outsourcing, which has become the preferred mode of operations for international companies as it offers low wages in countries with relaxed labour laws. Unfortunately, it also offers long working hours and unsafe working environments

Marketing to the bottom of the pyramid : a Zimbabwean perspective

The purpose of the study is to investigate marketing to the Bottom of Pyramid (BOP) in Zimbabwe. This is a market which constitutes at least two-thirds of the world’s total population and is made up of consumers whose daily household income is less than US$2 per day. The thesis achieves its purpose by establishing how consumers make decisions to buy products, how firms which serve the BOP conduct business in this environment and the nature of the interaction which occurs between consumers and the firms. The thesis takes the view that both consumer and firm perspectives are directly intertwined and thus must be jointly investigated in order to get a better understanding of marketing to the BOP. Traditionally the focus of business marketing has been on identifying and serving markets that have consumers with a capacity to consume and pay a sustainable price for the product. However the mid-90s has seen the emergence of a counter-scholarly argument which puts across a new view centered on the fact that by focusing on that portion of the market, businesses are losing sight of a big layer of the market at the BOP which does not necessarily meet the conventional prerequisites of a viable market. By virtue of the number of current and potential consumers, this layer provides considerable opportunities for businesses. To date, comparison and application of theories developed in the ‘west’ has been largely confined to the ‘Western’ markets (developed markets, e.g. Europe, USA) and ‘Eastern’ markets (emerging markets, e.g. Asia) leaving out sub-Saharan Africa. This is a region which has a higher proportion of its population at the BOP compared to other countries like Brazil, China, and India, and which has a market potential of US$429 billion. Hence the motivation for this study to focus on Zimbabwe, a market made up of more than 85% BOP consumers. The thesis is based on insights drawn from studies conducted in Zimbabwe employing a mixed research methods approach to collect data. This approach comprised qualitative consumer interviews and focus groups which were augmented by ethnographic observations and case studies of firms. This approach afforded the researcher the opportunity to utilize multiple sources of information from multiple approaches in order to draw new insights into the social world at the BOP. By combining multiple methods, the researcher was able to draw important new insights into the causes and consequences of BOP consumer beliefs and behaviour. The study found that the BOP market in Zimbabwe is not homogenous but is made up of four groups of consumers; namely, diluted urban, urban based, rural-urban based and rural, each of whom has different characteristics that determine purchase behaviour. It was found that the BOP market contributed to an increasing percentage of the turnover of firms in the food and personal hygiene manufacturing sector in Zimbabwe. The study articulated the process that consumers go through when allocating and managing their limited income to meet their needs. The decision making level of BOP consumers when buying food and personal hygiene products was found to be a high-involvement decision instead of an habitual one. The study found that family roles in purchase decision are changing at the BOP. Specifically the research found that there was increasing joint spousal decision making and children were responsible for the upkeep of their parents and siblings and consequently assumed multiple roles. Motivation to buy products was found to be determined by a set of influencers of core drivers which are interlinked and a second tier of drivers which are peripheral. The research found that commitment by firms to serving the BOP should be embraced by all managers and employees and be reflected in the development and implementation of internal systems and allocation of resources to specifically serve this market. Both consumers and firms were exposed to diverse constraints which had been highlighted in previous studies. However this study identified new constraints faced by consumers and firms, and more importantly, it highlighted reasons why firms continue to do business in environments such as those found at the BOP. Social networks were found to be important in facilitating interaction between consumers and firms; distribution systems such as use of franchises were embedded in these social networks which emerged as key conduits for facilitating interaction. The study set out a detailed qualitative process which provided a greater understanding of the complexity of the BOP in terms of understanding consumer xiii behaviour and firms’ strategies, outlining procedures which can be replicated in other markets to expand the scope for generalizability of the findings

Independent retail and grocery shops in Zimbabwe : survival and demise in a crisis and post-crisis era

Research on independent retail and grocery shops has largely been confined to more advanced markets such as those of the United States and the United Kingdom, ignoring trends in this sector in other markets such as Africa. Findings from these previous studies have established increasing pressure for survival faced by these independent retailers due to the dominance of big local supermarket chains and increased foreign competition. This research investigates the impact of increased local and foreign supermarket retail competition on independent retailers in Zimbabwe during the turbulent hyperinflation crisis era and the post-crisis recovery dollarization era. Key findings from the study focus on the impact of the changing retail landscape on growth and demise of these retailers. The study outlines constraints faced by the retailers and coping strategies that are being used to address the changing landscape and constraints. Implications for marketing practice and policy are then outlined