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Consumer behavior change at the base of the pyramid: Bridging the gap between for‐profit and social responsibility strategies
Author(s) -
Jones Christensen Lisa,
Siemsen Enno,
Balasubramanian Sridhar
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2249
Subject(s) - profit (economics) , microeconomics , economics , bottom of the pyramid , marketing , customer base , pyramid (geometry) , bridging (networking) , business , industrial organization , computer science , computer network , physics , optics
This longitudinal field experiment compares two different for‐profit market entry strategies with a philanthropic strategy in terms of how each influences consumer behavior in b ase‐of‐the‐ p yramid communities. We analyze reactions to a water purification product offered at three price points (moderate discount, deep discount, and free) in rural M alawi. We find that those who paid the deeply discounted price remain more likely to re‐obtain and use the product than do those who paid the moderate price or who took it for free . Copyright © 2014 John Wiley & Sons, Ltd.