Download Consumer Innovation at the Base of the Pyramid: Emerging by Sarah Praceus PDF

By Sarah Praceus

Approximately one-third of the world’s inhabitants lives in poverty on the international Base of the industrial Pyramid (BoP). Sarah Friderieke Praceus quantitatively investigates styles and features of a big pattern of techniques built through humans residing on the BoP in India. changes and commonalities as opposed to purchaser recommendations from the built international are assessed and results of innovation-relevant assets and contextual components at the leading edge results are tested. The findings point out that negative patron innovators and their wealthier opposite numbers percentage related strong demographic predispositions and personal tastes whereas the phenomenon adapts to the categorical resource-scarce context and diversified dwelling stipulations on the BoP. eventually, person innovation examine from built markets looks to not be fullyyt transferable to subsistence markets.

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48). The necessary degree of newness or innovativeness required for an idea to qualify as an innovation is not specified. It, therefore, ranges from radical to incremental as well as from new to world to new to the individual consumer (cf. Garcia, Calantone 2002). The other important notions of innovation consist in the realization and exploitation of a new idea or invention. Roberts accentuates this in the following definition of innovation: “… innovation = invention + exploitation. The invention process covers all efforts aimed at creating new ideas and getting them to work.

A study conducted by Teece (1977) shows how costly information transfers can be by analyzing several technology transfer projects with information transmittal costs reaching 59% of the total project costs, which explains the need to carefully organize and plan acquisition and development of technologies (cf. Tschirky et al. 2000; Tschirky, Trauffler 2011). Second, the information seeker’s existing stock of knowledge and experience influences his ability to exploit external information (Nelson 1982).

In the Philippines the poor averaged five trips per week to local, small so-called sari-sari stores. Previously, these stores rarely sold prepaid cards due to their reluctance to stock and guard the expensive cards. Hence, Smart eliminated the obstacles and the store owners’ reluctance with their over-the-air technology and small prepaid amounts. By leveraging the existing sari-sari store distribution network, Smart now ensures good access to their products. Instead of the conventional advertising strategies that are of little use at the BoP, Smart provides inshop marketing materials for the sari-sari stores, invests in billboards and advertising on local transportation vehicles and sponsors local events.

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