Beyond radical affordability in the base of the pyramid: The role of consumer self‐confidence in product acceptance

Christopher P. Blocker, Kenneth C. Manning and Carlos Trujillo

Journal of Consumer Affairs, 2023, vol. 57, issue 1, 619-647

Abstract: When developing products and services for base of the economic pyramid (BoP) consumers, it has been widely assumed that organizations must set extremely low prices that are dependent on substantial product acceptance and economies of scale. However, such pricing is often not feasible. Growing evidence suggests that more moderate price levels are needed for organizations to viably serve the needs of low‐income consumers. However, price sensitivity is less understood in low‐income contexts. To promote the success of social enterprises through fresh insight, we reexamine the extremely low‐price BoP assumption by investigating product acceptance among low‐income consumers using two experiments in Latin America. Results reveal that a belief in one's capabilities to make effective consumption decisions, consumer self‐confidence, helps explain the acceptance of moderately‐priced products. Discussion highlights directions for stimulating acceptance of socially beneficial products in low‐income contexts.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/joca.12514

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jconsa:v:57:y:2023:i:1:p:619-647

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-0078

Access Statistics for this article

Journal of Consumer Affairs is currently edited by Sharon Tennyson

More articles in Journal of Consumer Affairs from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().