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Book chapter
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Reference no. BEP8441
Authors: Ritu Srivastava
Chapter from: "Decoding Customer Value at the Bottom of the Pyramid"
Published by: Business Expert Press
Originally published in: 2020
Revision date: 06-Jan-2020

Abstract

This chapter is excerpted from 'Decoding Customer Value at the Bottom of the Pyramid'. Mature businesses across all advanced countries are struggling to find new markets as these countries are aging with the consequence that their domestic markets are either stagnant or growing very slowly. Their future seems to be destined to come from emerging markets, India being one of them. The challenge is especially high for business organizations that are leaders in their industry. Also, Marketing as a discipline has to serve the call of meeting societal and customer needs. The Indian market has been estimated huge in size, approximately USD1.2 trillion in purchasing power parity for the households earning an annual income of less than USD4,000. This comes to almost 880 million of Indian population of which 22 percent is urban India and 78 percent rural India, commonly referred to as Bottom of the Pyramid/Low Income/Subsistence Markets. While these markets offer immense business opportunities they also pose challenges because of their unique characteristics such as low incomes, geographical dispersion, heterogeneity in culture, poor transport, communication and media infrastructure, lack of education, different life styles compared to other income segments, lack of affordability and availability which are actually the effects of poverty. The needs of this segment have to be addressed by the corporate world but it might need a new approach with new business frameworks for implementation. The first most important thing that companies must understand is what constitutes value for this segment, how is it different from other segments and how can firms offer value through their market offerings, accordingly what could be the successful business models. Decoding Customer Value at the Bottom of the Pyramid: An Urban India Perspective answers these questions through a practical, rigorous, and research-oriented way, written in a lucid and easy style for both practitioners and academicians for a quick grasp. This book would be a must read for Business Executives across the globe with an interest in the low income customers in India. It will be a window for them to understand these customers and the perspective on value for them which can be incorporated in firm's products and services. This book is must for a Marketing Faculty in Indian Business Schools as this complements the existing Marketing core papers which fail to cover this side of the Indian Reality for B School Participants. Together Business and Academia may start aligning to this customer segment which is seen as a challenge and both sides fail to organize themselves.

About

Abstract

This chapter is excerpted from 'Decoding Customer Value at the Bottom of the Pyramid'. Mature businesses across all advanced countries are struggling to find new markets as these countries are aging with the consequence that their domestic markets are either stagnant or growing very slowly. Their future seems to be destined to come from emerging markets, India being one of them. The challenge is especially high for business organizations that are leaders in their industry. Also, Marketing as a discipline has to serve the call of meeting societal and customer needs. The Indian market has been estimated huge in size, approximately USD1.2 trillion in purchasing power parity for the households earning an annual income of less than USD4,000. This comes to almost 880 million of Indian population of which 22 percent is urban India and 78 percent rural India, commonly referred to as Bottom of the Pyramid/Low Income/Subsistence Markets. While these markets offer immense business opportunities they also pose challenges because of their unique characteristics such as low incomes, geographical dispersion, heterogeneity in culture, poor transport, communication and media infrastructure, lack of education, different life styles compared to other income segments, lack of affordability and availability which are actually the effects of poverty. The needs of this segment have to be addressed by the corporate world but it might need a new approach with new business frameworks for implementation. The first most important thing that companies must understand is what constitutes value for this segment, how is it different from other segments and how can firms offer value through their market offerings, accordingly what could be the successful business models. Decoding Customer Value at the Bottom of the Pyramid: An Urban India Perspective answers these questions through a practical, rigorous, and research-oriented way, written in a lucid and easy style for both practitioners and academicians for a quick grasp. This book would be a must read for Business Executives across the globe with an interest in the low income customers in India. It will be a window for them to understand these customers and the perspective on value for them which can be incorporated in firm's products and services. This book is must for a Marketing Faculty in Indian Business Schools as this complements the existing Marketing core papers which fail to cover this side of the Indian Reality for B School Participants. Together Business and Academia may start aligning to this customer segment which is seen as a challenge and both sides fail to organize themselves.

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