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Enhancing youth's attitudes towards microcredit in the bottom of the pyramid markets
Author(s) -
Jebarajakirthy Charles,
Lobo Antonio,
Hewege Chandana
Publication year - 2015
Publication title -
international journal of consumer studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 1470-6423
DOI - 10.1111/ijcs.12166
Subject(s) - bottom of the pyramid , affect (linguistics) , perception , market segmentation , microfinance , business , marketing , psychology , economics , economic growth , communication , neuroscience
The bottom of the pyramid ( BOP ) market comprises a huge customer size of approximately 4 billion globally; hence, segmentation is necessary within this market. The BOP market refers to an aggregate of customers who survive on relatively low‐income levels. In this respect, youth in war‐affected regions can be considered to be a segment of the BOP market. However, there is scant research on customers' attitudes and purchase behaviours in the BOP markets or segments therein. Hence, the purpose of this research is to investigate war‐affected youth's attitudes towards microcredit and the related drivers of these attitudes. The literature revealed four types of attitudes towards microcredit: positive affect, perceived benefits, perceived deterrents and default risk perceptions. Also, knowledge of microcredit and entrepreneurial desire were considered to be the drivers of these attitudes. A total of 795 valid completed surveys were collected from youth aged 18 and above who live in the N orthern P rovince of S ri L anka. The findings revealed that positive affect enhanced intentions to obtain microcredit, whereas perceived deterrents reduced them. Knowledge of microcredit enhanced attitudes towards microcredit. Also, entrepreneurial desire enhanced the association between positive affect and intentions to obtain microcredit and it decreased the negative association between perceived deterrents and intentions to obtain microcredit. The implications to theory and practice have been discussed which will go a long way in enhancing the attitudes towards microcredit among war‐affected youth and possibly those in the other segments of the BOP market.