MULTIAHORRO: Successful Business Model Innovations to Better Serve BOP Customer Needs for Goods and Services, Profitably

John Paul — Wed, 07 Dec 2005 16:08:03 -0500

Session Title:
Managing Business at the BOP

Date of talk or publication:
2005

Speaker Name / Title:
Wilson A. Jácome & Luis E. Loría, Luis Reyes

Organization:
IDE-Business School, TIA-Ecuador

Description:
It is common practice in business, especially in emerging market economies, to target customers at the top of the socioeconomic pyramid because they have high purchasing capacity. The less privileged segments of the population, which in the case of Ecuador amounts to nearly three quarters of its habitants, have traditionally been neglected. Some opportunistic entrepreneurs (e.g., loan sharks and many informal businesses and stores) exploit the needs of those in the poorer market niches with low quality products and services offered at unreasonably high prices. These poor segments consequently differ dramatically from the middle and high-income segments of the population in terms not only of monetary income and purchasing capacity, but also adequate access to quality products and services, many of which are desperately needed.

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MULTIAHORRO: Successful Business Model Innovations to Better Serve BOP Customer Needs for Goods and Services, Profitably