Retailers and new product acceptance in India's base of pyramid (BoP) markets

Sivakumar Alur · Jan P. L. Schoormans

27 citations0/0 files storedInternational Journal of Retail & Distribution Management

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Consumer Market Behavior and Pricing Consumer Retail Behavior Studies Innovation and Socioeconomic Development

Abstract

Purpose Retailers' new product acceptance in base of pyramid (BoP) markets is crucial to marketers in this segment. This paper seeks to develop propositions for research on factors that affect retailers in new product introduction. The propositions also aim to make a distinction between urban and rural BoP markets. Design/methodology/approach The paper provides a broad description of India's BoP market (one of the world's largest BoP markets) to better understand context. It uses literature from developed country context to BoP markets to arrive at research propositions for further research. Findings The key research propositions derived relate to exogenous and endogenous factors. Exogenous factors relate to store trading area, competitive environment, shopper characteristics and product diversity. The endogenous factors include store atmosphere, assortment and shelf space allocation, price and promotion. The differences across rural and urban BoP markets are highlighted for each proposition. Practical implications Understanding differences between rural and urban BoP retailers can help make crucial new product introduction decisions. Considering endogenous and exogenous factors that influence retailer acceptance decisions will make product introduction decisions successful. Originality/value BoP literature has been replete with research on marketers and products but less on retailing. This paper addresses that gap. In addition, very few papers make the distinction between urban and rural BoP markets and mostly across countries but not within a country. This paper places the distinction within the country. Finally, explaining how various factors influencing retailing differ in urban and rural contexts and developing propositions is a major original contribution of this paper.

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References

2006Fortune at the bottom of the pyramid, the: eradicating poverty through profits 2003The Rise of Supermarkets in Africa, Asia, and Latin America 2007The Mirage of Marketing to the Bottom of the Pyramid: How the Private Sector Can Help Alleviate Poverty 2007New Evidence on the Urbanization of Global Poverty 2004Decision Making and Coping of Functionally Illiterate Consumers and Some Implications for Marketing Management 2002Rethinking Marketing Programs for Emerging Markets 2009Why is Assortment Planning so Difficult for Retailers? A Framework and Research Agenda 2000Slotting Allowances and Fees: Schools of thought and the Views of Practicing Managers

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2021Sustainable value creation through information technology-enabled supply chains in emerging markets 2016Small retailer’s new product acceptance in emerging market: a grounded theory approach 2019The Vitality of Price Comparison and Product Display for Assortment Satisfaction 2019Product adoption by small retailers in India 2022Role of word-of-mouth communication in consumer brand relationship initiation and maintenance: insights from the bottom of pyramid markets

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