Size and Shape: The Influence of Packaging on South African BOP Consumers' Decision-Making
Keywords:
Bottom of the pyramid (BOP); single-serve packaging; sachet packaging; BOP consumer decisionmaking; reusable packaging; storage and convenience of packaging
Abstract
The bottom of the pyramid (BOP) proposition espouses the use of ‘single-serve’ or ‘sachet’ packaging in order to enhance affordability, encourage consumption and offer an assortment of good-quality products to BOP consumers. This study assesses the influence of packaging (in relation to size and price of different quantities) on South African BOP consumers’ purchase decisions. The study analyses whether or not these consumers have a tendency to purchase smaller quantities of products as opposed to making bulk purchases. This study further investigates the impact that packaging criteria (storage, convenience of purchase, prices of different package sizes and reusability of packaging) have on consumers’ decision-making. The aim is to uncover South African BOP consumers’ perceptions of packaging as a decision-making influencer in order to formulate appropriate strategies that businesses can adopt in order to lucratively serve this market. Using area sampling, a sample of 600 BOP consumers living in relative poverty within the rural areas of South Africa was drawn. Data was collected using a self-developed questionnaire whose psychometric properties were statistically analyzed using descriptive and inferential statistics. The study’s results reveal that although South African BOP consumers view small quantities of products as convenient and easy to store, the majority have an inclination to purchase large quantities instead of smaller package sizes. South African BOP consumers are also enticed to purchase products that are packaged in reusable containers, thereby, enabling the containers to be re-used after the consumption of the contents. Practical recommendations are articulated for business organizations.
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References
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Oodith, P. D. &Parumasur, S. B. (2013). Tapping into the Bottom of the Pyramid (BOP) Market in South Africa: Possible? And How? Corporate Ownership & Control, [Online]. 11(1), 280-294. Accessed February 18, 2017, from the World Wide Web: http://www.virtusinterpress.org/IMG/pdf/1022495_cocv11i1c2art6.pdf Pfeiffer, P. & Massen, S. (2010). Serving the Low-Income Consumer: How to Tackle This Mostly Ignored Market. Online. Accessed December 21, 2010, from the World Wide Web: http://www.atkearney.com/index.php/Publications/serving-the-low-income-consumer.html Pitta, D. A., Guesalaga, R. & Marshall, P. (2008). The quest for the fortune at the bottom of the pyramid: potential and challenges. Journal of Consumer Marketing, [Online]. 25(7), 393-401. Accessed January 13, 2010, from the World Wide Web: http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output /Published/EmeraldFullTextArticle/Pdf/0770250704.pdf Prahalad, C. K. (2012). Bottom of the Pyramid as a Source of Breakthrough Innovations. Journal of Product Innovation Management, [Online]. 29(1), 6-12. Accessed February 18, 2017, from the World Wide Web:http://onlinelibrary.wiley.com/doi/10.1111/j.1540-5885.2011.00872.x/pdf Prahalad, C. K. (2005). The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits, New Delhi: Pearson Education/Wharton School Publishing. Prahalad, C. K. & Hart, L. H. (2002). The Fortune at the Bottom of the Pyramid. Strategy+Business, [Online]. 26. Accessed December 2, 2010, from the World Wide Web: http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf Rajagopal. (2009). Branding paradigm for the bottom of the pyramid markets. Measuring Business Excellence, [Online]. 13(4), 58-68. Accessed June 13, 2015, from the World Wide Web: http://www.emeraldinsight.com/doi/full/10.1108/13683040911 006792 Rijke, K. C., Diehl, J. C. & Schoormans, J. P. L. (2009). Introducing solar products in rural Cambodia: A quest for the right marketing mix in base of pyramid markets. Online. Accessed June 13, 2015, from the World Wide Web: http://www.kcstrategic design.com/kamworks_files/Introducing%20solar%20products%20in%20rural%20Cambodia.pdf Sample Size Calculator. (2014). Online. Accessed February 4, 2014, from the World Wide Web: http://www.surveysystem.com/sscalc.htm Schiffman, L. G. & Wisenblit, J.L. (2015). Consumer Behavior (11thed), England: Pearson Education Limited. Sehrawet, M. & Kundu, S.C. (2007). Buying behavior of rural and urban consumers in India: The impact of packaging. International Journal of Consumer Studies, [Online]. 31, 630-638. Accessed July 21, 2012, from the World Wide Web: http://onlinelibrary.wiley.com/doi/10.1111/j.14706431.2007.00629.x/full Simanis, E. (2012). Reality Check at the Bottom of the Pyramid. Harvard Business Review. Online. Accessed October 17, 2017, from the World Wide Web: http://eriksimanis.com/wpcontent/uploads/2014/06/Simanis-Reality-Check-at-BOP-June-2012-HBR.pdf Subrahmanyan, S. & Gomez-Arias, J. T. (2008). Integrated approach to understanding consumer behavior at the bottom of pyramid. Journal of Consumer Marketing, [Online]. 25(7), 402-412. Accessed January 13, 2010, from the World Wide Web: http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output /Published/EmeraldFullTextArticle/Pdf/0770250702.pdf Tripathi, S. S. & De, S. K. (2007). Innovation as a Tool of Building Competitive Advantage at the Bottom of the Pyramid. Online. Accessed January 12, 2010, from the World Wide Web: http://dspace.iimk.ac.in/bitstream/2259/374/1/171-179.pdf Variawa, E. (2010). Buying behavior and decision-making criteria of Base of the Pyramid consumers: The influence of packaging on Fast Moving Consumer Goods customers’ brand experience. MBA Thesis. Gordon Institute of Business Science, University of Pretoria. World Economic Forum. (2009). The Next Billions: Unleashing Business Potential in Untapped Markets. Online. Accessed February 27, 2012, from the World Wide Web: https://members.weforum.org/pdf/BSSFP/ExecutiveSummaryUnleashingBusinesPotential.pdf White, S. (2017). Influence of Packaging on Consumer Buying Behavior. Online. Accessed October 17, 2017, from the World Wide Web: https://www.labelvalue.com/documents/Influence-of-Packaging-onConsume-%20Buying-Behavior.pdf
Published
2018-03-15
How to Cite
Oodith, P. D. (2018). Size and Shape: The Influence of Packaging on South African BOP Consumers’ Decision-Making. Journal of Economics and Behavioral Studies, 10(1(J), 6-21. https://doi.org/10.22610/jebs.v10i1(J).2084
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