Mirage at the Bottom of the Pyramid
AbstractPoor people – at the bottom of the pyramid (BOP) – represent a very attractive market opportunity. The ‘BOP proposition’ argues that selling to the poor can simultaneously be profitable and help eradicate poverty. This is at best a harmless illusion and potentially a dangerous delusion. This paper shows that the BOP argument is riddled with fallacies, and proposes an alternative perspective on how the private sector can help alleviate poverty. Rather than focusing on the poor as consumers, we need to view the poor as producers. The only way to alleviate poverty is to raise the real income of the poor.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp835.
Date of creation: 01 Aug 2006
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Poverty; Bottom of the pyramid; Selling to the poor; social responsibility;
Find related papers by JEL classification:
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-21 (All new papers)
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