Segmenting the Bottom of the Pyramid Consumers: Theoretical Approach

Abstract

The Bottom of the Pyramid (BOP) market deserves further attention from researchers. The purpose of the paper is to profile the psychographic and behavioral heterogeneity within the BOP market in India employing a theoretical approach. We use constructs of the Theory of planned behavior (TPB) to identify distinct BOP segments. It segments the BOP market in the context of durable goods, non-durable goods, and services. The findings demonstrate the presence of three consumer segments, each of the durable and non-durable goods. In the context of services, the findings show the existence of four segments of BOP consumers. This study offers insights into application of behavioral theories for segmentation, which could help with behavioral change of BOP consumers to use high-quality products and services. Further, it is significant because the BOP market has witnessed a progressive decline in size as a large segment of the BOP market is being transformed into the middle class. Comprehension of the cognitive and behavioral tendencies of each consumer segment would strategically help in retaining the brand loyal BOP customers when they upgrade to the middle class.