The focus of extant literature on tourism at the bottom of the pyramid is on the location of destinations in the bottom-of-pyramid markets and the role of the bottom-of-pyramid consumers as employees in the sector rather than as actual potential consumers of these services. This paper uses empirical evidence from India and Zimbabwe to identify relevant tourism formats that bottom-of-pyramid consumers prefer and investigate their perceptions and factors that influence them to engage with these specific tourism formats. The study contributes towards a comprehensive understanding of the determinants of tourism demand at the bottom of the pyramid, thereby expanding the ongoing debate on tourism's role in markets such as the BOP beyond the economic benefit argument.
The study investigates the significance and influence of heterogeneity within the African middle class on shopping behavior and consumer selection of distribution channels. It is exploratory, utilizing personal interviews and ethnographic observations to gather data from ten cities across nine African countries. This research is part of a larger project aimed at revisiting the conceptualization of the middle class in Africa and examining its potential heterogeneity. Findings from the ten African nations demonstrate that the shopping behavior of the middle class is shaped by the specific heterogeneous group they belong to within that classification. Three key segments emerge: the accomplished middle class, the comfortable middle class, and the vulnerable middle class. Across countries, consumers engage with formal and informal distribution channels, though each group has distinct motivations for using these channels. The shopping repertoire reveals variations concerning the critical barriers influencing channel selection and the motivations behind channel-switching behavior among the different middle-class segments. Various factors affecting the decision-making of the heterogeneous middle class regarding when and where to shop offer crucial insights and entry points for retailers to consider, serving as a complementary portfolio of variables that can shape marketing strategies
This paper proposes a new household decision-making model for base of pyramid (BoP) consumers. Many decision-making models focus on general consumer behaviour theory, with few focusing on the resource constraints experienced at the BoP. By focusing on the dynamics of household decisions, the data collected bring a unique perspective to BoP consumer behaviour and extend recent work in the BoP domain. The study comprised qualitative interviews with 61 household representatives (representing 233 household members) to explore decision-making, loyalty, budgeting, shopping and category trade-offs. The study proposes a household-focused decision-making framework, which is far more characteristic of BoP consumer behaviour (as opposed to isolated individual decisions). The proposed framework reveals the impact of situations and financial constraints on BoP household decision-making and how most households operate in both the formal and informal economy. Family obligation was observed to be a key factor, as well as how functional illiteracy drives brand loyalty but also creates embarrassment. Word of mouth trumps all other sources of information and, due to household complexities, there is significant decision-maker ambiguity, making it hard to define a target audience with a communication strategy. Brands are important, but fundamental value is still key and there is inexorable monthly variation in finances, making category trade-offs commonplace.
The article's purpose is to critically examine the heterogeneous middle class in Africa's evolving relationships with brands in the new digital age environment identifying drivers for brand purchase decision-making that brand managers can adopt for their strategies. The new environment is conceptualized from the impact of digitalization and the emergence of more discerning consumers, informed and empowered in their interaction with brands. The article contributes significantly to responses to calls by international marketing scholars for further research in global brand building and management in the new digital age. Our article provides insights into how the heterogeneity of the middle class in Africa influences the consumers' relationship with brands considering the impact of digital connectivity and nuances of each middle-class segment. We identify the core drivers for brand selection that the heterogeneous middle-class segments consider and how this influences their attitudes toward brands. The study also highlights the complexities of the relationship between the middle class and counterfeit brands. Practical and theoretical implications to provide guidelines for improving practice and research on managing brands in the new international marketing environment are presented.
Purpose This paper aims to investigate the factors that influence millennial purchase behaviour, brand choice and distribution channel selection in an evolving technology-driven environment. Design/methodology/approach The study was exploratory, using qualitative methods of personal interviews and some ethnographic observations to collect data from 585 millennials from ten cities in nine African countries. Findings Findings from the study confirm and support the critical role of e-commerce in facilitating millennials engagement with brands, highlighting how brand purchases are integral to their lifestyle choices. There is an overwhelming confirmation of the importance of influencer marketing and social media in shaping purchase decisions, with new insights into the role of local micro-influencers and social networks. The findings from the study highlight the pivotal role of a brand’s country of origin in influencing millennials’ brand preferences. The study supports and advances insights into the importance of online shopping and diverse factors influencing millennials’ selection of distribution channels. Practical implications There is an opportunity to leverage the growing mobile telephone penetration and social media usage to develop innovative integrated marketing communications strategies. There are opportunities for co-creating marketing communication campaigns with millennials in different settings. These are outlined in the practical implications section. Originality/value The paper is based on original empirical data collected from ten countries and explores the behaviour of a growing but under-researched segment of millennials in Africa.
PurposeThis study investigates the antecedents of supply chain resilience of small and medium-sized enterprises (SMEs) and the effects of government assistance and disruption intensity in long-term disruptions.Design/methodology/approachThis study collected data from 626 SMEs in Australia in 2022 and analysed data using partial least squares structural equation modelling.FindingsThe study empirically confirms that digital capabilities, prior experience in disruptions, supplier proximity and relationships are antecedents of supply chain resilience of SMEs, with supply chain robustness as a mediator. It further confirms that SMEs' access to government assistance positively moderates the relationship between digital capabilities and supply chain robustness. The disruption intensity moderates the relationships between supplier proximity and supply chain robustness with supply chain resilience. Severe disruptions weaken the effects of prior disruption experiences and supplier relationships on supply chain resilience.Practical implicationsThe findings inform SME practitioners of the importance of building supply chain robustness, leveraging their prior experience, supplier proximity and relationships and capabilities and flexibility for dynamic supply chain structures when disruptions are intense.Originality/valueThe novelty of our study is the use of the Contingent Resource-Based View to understand the effects of firm and supply chain-level antecedents on supply chain robustness and resilience, considering the contextual contingencies of disruption intensity and government assistance. The focus on long-term disruptions extends the conventional supply chain resilience studies on supply and demand disruptions of small scale. We also explore the firm-level effects of government assistance, which extends the commonly tested economic-level effects. Furthermore, we investigate supply chain robustness and resilience as different but connected constructs, deviating from common approaches. The finding that the relationship between digital capabilities and supply chain robustness, not the relationship between digital capabilities and supply chain resilience, becomes stronger with higher access to government support shows the importance of this approach to investigating specific effects.
The article investigates how the dynamics and complexities of regional-rural areas in Australia influence micro-, small, and medium-sized enterprises' (MSMEs) engagement with business advisory assistance services. Understanding these issues can be an important contribution to the entrepreneurial revolution that promotes equal distribution of resources and social inclusion of MSMEs and their communities. Data were collected from MSMEs and assistance providers using face-to-face interviews. Key findings that have practical implications include varied drivers for utilizing assistance programs, context-driven barriers to accessing services, and the dynamic nature of sources of information. Practical implications include recommendations for policy makers to design targeted and differentiated programs, investment in inclusive awareness campaigns, and a migrant outreach engagement strategy. These strategies should be supported by an inclusive small business policy that promotes entrepreneurial revolution that enables equitable access to resources, enhancing income distribution and livelihoods of regional-rural MSMEs and their communities.
The article investigates the impact of COVID-19 on micro-business enterprises (MBEs), establishing the coping strategies used to mitigate the impact and build resilience. A practical framework for building resilience is recommended for use by the enterprises as part of contributing to the entrepreneurial revolution agenda. An online survey using Survey Monkey was used to collect data from MBEs from a national sample in Zimbabwe. Key findings from the study include overwhelming evidence of the negative financial impact of COVID-19 on the MBEs and its impact on supply chain disruption and customer service. Practical recommendations include the need for MBEs to utilize creative resourcefulness by identifying tangible and nontangible resources in their ecosystem and utilizing their learning curve experience in dealing with precious disruptions to develop coping strategies for new challenges. MBEs should invest in the well-being of their employees and communities to foster collaboration for resilience building.
This research examines how Lao and Filipino consumers’ ethnicity and ethnic identity may influence consumer behavior and how individual acculturation may affect ethnic identity and ethnic consumer behavior in a multicultural environment. Multi-culturalism is a global phenomenon that has impacted how firms and consumers interact in Australia and Asian countries. Using self-ascribed samples from two ethnic groups (Lao and Filipino) residing in Australia, an exploratory mixed-method approach was used to examine how an individual’s ethnicity and ethnic identity influence individuals’ consumer behavior who ascribe to their respective ethnicities. To observe acculturation tendencies and any effects on consumer behavior, each ethnic group was divided into three generational sub-groups. The study revealed varying degrees of individual acculturation between three generations of consumers from the same ethnic background and between consumers from two different ethnic backgrounds. Inter-generational and inter-group differences affected the consumption of ethnic products such as food, clothes, movies, music, and choice of service providers. Implications for doing business in Asia are explored, drawing on the insights and connections that emerge from understanding the Lao and Filipino consumer behavior considering the increased intra-regional movement and multicultural clusters in Asia.
Africa is home to 27 of the world’s 28 poorest, marginalised and most vulnerable countries. There are limited studies on the challenges and opportunities of researching marginalised consumers in Africa, even though more than 440 million marginalised consumers consume products and services that require market research. This paper aims to critically identify and discuss the challenges and opportunities for researching marginalised consumers in Africa using insights from empirical studies conducted in various countries between 2009 and 2022. The paper proposes a conceptual framework that outlines the methodological and operational challenges and enablers for market research and concludes with practical guidelines of considerations that researchers should take for researching the marginalised in Africa.
The purpose of the study is to investigate the successes, gaps, limitations and failures of initiatives to improve financial inclusion in Zimbabwe and their potential impact on achieving citizen-centred inclusive socio-economic development. Our study contributes to the limited knowledge on financial inclusion in Zimbabwe by presenting findings from a 2021 study on the financial inclusion of micro, small and medium enterprises in Zimbabwe. The study’s findings are complimented by a review of other citizen-focused studies on financial inclusion in Zimbabwe. Key findings from this study include notable effort by the supporting system to improve the policy environment, improved access to financial services for women and integration of digital technologies to enhance financial inclusion. However, the empirical evidence from the enterprises indicates continued challenges in both the demand and supply sides and also shows how these are caused by the complex nuances of operating in Zimbabwe, which require urgent attention. The study identifies the current limited commitment by political stakeholders to articulate deliberate policies and programmes that support citizen-centred financial inclusion as a major challenge. We propose a framework for relevant conceptualisation of financial inclusion which involves a deliberate process of citizen engagement in co-designing and co-creating intervention and impact measurement strategies that are responsive to the lived circumstances of the citizens and enterprise.
Current decision-making models do not cover the processes bottom of the pyramid consumers go through when selecting mobility solutions to address access challenges they face. We investigate the process these consumers go through in their complex context in adopting a community-based renewable energy mobility solution and developing a decision-making framework. Findings indicate the positive social, environmental, and economic impact of the mobility initiative on the livelihoods of the BOP consumers. The findings offer critical theoretical contributions specifically for decision making for the adoption of renewable energy-based mobility solutions for marginalized BOP consumers and social connectedness literature.
This research investigates the core drivers for bottom of pyramid (BOP) consumers' motivation for participating in value co-creation (VCC) projects with firms evaluating the influence of each of the drivers considering the heterogeneity nature of the BOP. Ethnographic observations and interviews were used to conduct the research in Zimbabwe. A key finding is the impact of the heterogeneity of the bottom of pyramid on the eight drivers that are identified and evaluated in terms of their influence, thereby providing a more holistic understanding of BOP consumers participation in VCC. This research's findings have shown that digital technologies can be employed as a valuable complementary tool that firms and BOP consumers could effectively use to facilitate value co-creation. A key practical finding is the emergence of the concept of a Green Kiosk. This is a one stop resource which acts as a community building center, cultural renewal center, place of education and knowledge and point of access to other services such as telecommunication services. Evolving balance of power in the relations between the BOP and firms is outlined.
Our paper investigates how the heterogeneous structure of the middle class in sub-Saharan Africa influences its consumption of financial services, identifying drivers for their selection of these services. Implications for marketing practice are outlined. This research is an across-country city-based exploratory study in ten cities where structured questionnaires were used in interviews to obtain information from respondents over a period of 2 years. Our findings identify the importance of the financial realities of the three middle-class groups of the Accomplished, Comfortable and Vulnerable on their consumption of financial services and answer the question of what drives demand for these services. The three groups have varied spending and saving habits, perceptions of financial services and financial aspirations. We identify six key drivers for selecting services, namely availability, accessibility, affordability, status, security and trust. Technology is a key mediating variable of the marketing mix considerations. Marketing practice implications indicated a need for marketers to recognise the importance of the heterogeneity of the middle class and its influence on segmentation strategies. Opportunities for new approaches to new product development and marketing communication strategies that leverage the heterogeneity of the middle class are outlined. Marketers should also consider the varied influence of the drivers for the choice of financial services among the three groups. Our findings reinforce the need and potential that exist for financial services providers to improve the financial inclusion of previously marginalised consumers.
This research reports on a cross-country based investigation of the floating middle class in Africa demonstrating how their behavior and structure influences the design of marketing mix strategies used by marketers. Questionnaires were used to collect data in ten African cities. Key findings include the importance of branding and core drivers for purchase such as durability, origin, popularity, affordability, and a unique circle of quality variables. Innovative adaptations for pricing, distribution and marketing communications are outlined to assist marketers develop appropriate context relevant strategies to target the floating middle class. The discussion also outlines theoretical and practical implications.
This article reports on a cross-country city-based investigation that profiles the middle class in Africa and distinguishes discrete segments that demonstrate the importance of heterogeneity when studying the middle class. The authors identify three distinct middle-class segments by administering both qualitative and quantitative questionnaires across ten cities. They explore consumer behavior–related factors, such as lifestyle and purchasing, to answer calls to provide more marketing insight into the African middle class. The discussion also outlines theoretical and managerial implications.
The informal economy’s importance in Africa is demonstrated by its significant contribution to the national economies of countries across the continent where informality is more of the rule than exception (ILO, 2020b). According to the International Labour Organization, the informal economy in Africa accounts for about 60–80% of employment on the continent. There are various actors in the informal economy inclusive of micro-enterprises that act as channels for distribution of branded and unbranded products. This creates a foundation for a better understanding of branding in the informal sector in terms of challenges and benefits, missed opportunities and prospects to develop a roadmap that can be used to accelerate and improve brand building in the informal economy in Africa.
The purpose of this paper is to demonstrate the need for Business Advisors (BAs) who are not only capable of responding to small business enterprises’ (SBEs) current constraints but also capable of responding to their evolving needs due to the changing context and their growth. This dynamic environment is characterised by issues such as changing legislation, technology disruption and ethnic diversity. This research is an exploratory study that adopts a multiple case method approach. Data was collected from SBEs and BAs using interviews. Propositions from the study indicate that the new environment has created a greater demand for diverse services that address emerging new needs for SBEs. This includes demand for advisory services in new niche business areas. Trust, integrity, knowledge and advisory experience emerged as a portfolio of principles and skills that SBEs look for in a BA, in order for them to address their evolving needs. Availability of new integrated technology platforms is changing SBEs’ preferences of contact methods and BAs’ own usage of these platforms to engage SBEs. Practical and policy implications include need for regular review of relevant legislation; continuous professional development, establishment of sector specialists and an industry Advisory Council that will monitor practices and provide continuous professional training for BAs.
PurposeThe purpose of the paper is to investigate the nature of variations among established and emerging middle class consumers in South Africa in response to the institution context factors associated with emerging markets that are established in international business studies.Design/methodology/approachAn exploratory research approach using semi-structured expert interviews was used to collect data.FindingsKey findings indicate distinct approaches in dealing with factors such as different fallback positions, asset ownership, education, language, family responsibility, career aspirations and risk protection in the middle class process of attaining and sustaining middle class status.Research limitations/implicationsThe focus on one country has the potential to minimize the generalizability of findings from the study, however, South Africa has a significantly high proportion of sub-Saharan middle class consumers. This provides a basis for further a basis for further research into other sub-Saharan African countries.Practical implicationsFindings from the study provide practical insights on risk profiling of middle-class consumers for marketing practitioners.Social implicationsThe study provides insights into the distinct variations between emerging and established middle class consumers in areas such as language and education. These insights have potential implications on the implementation of government policies such as the Empowerment Policy and consumer protection.Originality/valueThe paper expands the research agenda in the area of middle class consumer behavior in emerging markets. By concentrating on South Africa, the research expands existing knowledge beyond emerging giants like China and India, which are often a focus in literature.