42 Questions
What was one of the misconceptions about the BoP market?
BoP consumers are not brand conscious
What did Karnani criticize about Prahalad's work regarding the BoP concept?
The idea of selling products to the poor
What shift occurred in the BoP concept from BoP 1.0 to BoP 3.0?
From a focus on selling to a focus on buying from the poor
In the context of the African pricing model discussed, why might firms set relatively higher prices for products intended for BoP markets?
To prevent the products from entering an informal secondary market
What characterizes BoP 4.0 according to the text?
'Enabling fortune' with BoP
What is the main goal of Sustainable Development Goal 1?
Eradicate extreme poverty for all people everywhere
Why is it important for the private sector to contribute to poverty reduction?
To generate job opportunities
What is one way in which science contributes to reducing poverty?
Improving access to clean water and hygiene
According to Banerjee & Duflo (2007), what does their paper focus on?
The effects of poor people on the economy
What is the significance of an enabling environment created by governments for the poor?
To create sustainable jobs and employment opportunities
Which statement best describes the approach of sustainable development?
Balancing current needs with future generations' needs
What does Sustainable Development Goal 1.4 aim to achieve by 2030?
Guarantee equal rights to economic resources for men and women
How does inclusive growth contribute to poverty reduction?
By reducing disparities and benefiting the marginalized
What is a key challenge in designing products for the poor according to the text?
Adopting a one-size-fits-all approach
How can governments play a role in poverty reduction, according to the text?
By creating an enabling environment for job opportunities
What percentage of their income do poor people typically spend on sugar?
7%
Why do many poor households engage in multiple occupations?
To spread the risk of work
What is a major challenge faced by the poor regarding savings?
Lack of access to formal insurance
What is the main reason why the poor heavily rely on credit markets?
Due to limited access to bank loans
Why do the poor typically operate their businesses at a small scale?
Due to a problem of scale
What innovative solutions are suggested in the text to address problems faced by the poor?
Offering subsidies for fertilizer purchase
'The Fortune at the Bottom of the Pyramid' by Prahalad highlights which market segment?
'Poorer' consumers with untapped potential
'The Fortune at the Bottom of the Pyramid' suggests that poor people often pay substantially more for basic needs. What term is used to describe this phenomenon?
'Poverty premium'
According to Prahalad, what is one common assumption that multinational companies hold about selling to the bottom of the pyramid (BOP)?
The BOP market is too small to be profitable
What strategy did companies like Unilever adopt to address the issue of high costs for basic needs among the poor?
Changing product sizing
What is the main concern regarding premium pricing in the Africa's BOP market according to the text?
It exacerbates consumption inequality.
How does the text describe the purchasing behavior of liquidity-constrained consumers in BOP markets?
They purchase small packs to match their desired consumption level.
What strategy do some firms use to transition consumers from the BoP market to outside markets effectively?
Providing volume promotions on smaller packs within the brand.
How do Chinese and emerging market MNC's differ from other firms regarding pricing according to the text?
They charge higher premiums on smaller packs.
What is a key finding about firms that have BoP products within their brand, as discussed in the text?
Their brands perform better than those without BoP products.
What is one of the strategies mentioned in the text for brands operating in the BoP market to increase revenue and market share?
Having a single brand option in both BoP and outside markets.
What does the evidence presented in the text suggest about the relationship between product variety and volume promotions?
Product variety increases volume promotions for BoP products.
What does the text suggest about premium pricing in the Africa's BOP market?
It exacerbates consumption inequality.
Why do liquidity-constrained consumers in BOP markets in low-income countries purchase small packs according to the text?
To match their desired consumption level.
What does the above text imply about pricing strategies in BOP markets for smaller packs compared to larger packs?
Smaller packs have a price premium compared to bigger packs.
Based on the text, what does the evidence suggest about Chinese and emerging market MNC's regarding pricing in BOP markets?
They charge higher premiums compared to other firms.
How does the text describe the relationship between liquidity-constrained BOP consumers' willingness to pay and their actual purchasing behavior?
They pay less than their willingness due to pricing strategies.
What strategy did Unilever adopt in India after realizing the success of Nirma in the detergent market?
Launched Wheel with lower margin
Why do firms operating in BoP markets sometimes set relatively lower prices for smaller packs of products?
To address poverty and social responsibility concerns
What dual motives do firms operating in BoP markets typically have according to the text?
Intrinsic motives to do good and extrinsic motives to do well
What is a common reason why firms may set relatively higher prices for products intended for BoP markets?
To maintain brand reputation
What type of data did Unilever use when expanding into the African market with its products?
Nielsen data on the laundry detergent market in Cameroon
Test your knowledge on serving Base of the Pyramid (BoP) markets, where enterprises can provide affordable products to low-income consumers while still making profits. Explore the concepts of tapping into underserved markets and capturing business opportunities that help alleviate poverty.
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