Fortune at the Bottom of the Pyramid: An Alternative Perspective

The Bottom of the Pyramid (BOP) has emerged as one of the dominant ideas in business. Cognizant of the overwhelming attention BOP has attracted and its potential impact on the billions of the poor and on managerial practices, the author analyzes the different aspects of BOP approach on how large corporations can serve low income customers profitably. An attempt is made to provide an alternate perspective on the BOP concept. I argue for the facilitation of selective consumption by the poor by avoiding their undesirable inclusion (marketing products that are not likely to enhance their wellbeing or products that are likely to be abused by them) and exclusion (not offering products that are likely to enhances their wellbeing) in target market selection decisions by the private sector organizations. A framework is presented for assessing the appropriateness of large corporations’ participation in BOP markets. I also emphasize the need to strengthen the role of the poor as a producer for rapid poverty alleviation.

Examining the Nonlinear Effects in Satisfaction-Loyalty-Behavioral Intentions Model

Extant research has widely investigated linear functional forms in satisfaction and loyalty models. Though complex nonlinear nature of satisfaction loyalty link is suggested by several researchers, few attempts have been made to empirically examine nonlinearity. Moreover, researchers have used divergent functional forms to model nonlinearity and their findings are often inconclusive. In this study we use nonlinear form to describe the relationship between satisfaction, attitudinal loyalty, purchase loyalty and customer behavioral intentions such as willingness to pay more and external and internal complaining responses in the context of business-to-consumer ecommerce. We find modest empirical support for nonlinear effects in the relationship. Results support nonlinearity only in the case of attitudinal loyalty to internal complaining response link. Results also present evidence about the mediating role of attitudinal loyalty in the relationship between satisfaction, purchase loyalty, willingness to pay more and internal complaining responses.