MARKETING AT THE BOTTOM OF THE PYRAMID

This course will explore how to understand consumers at the Bottom of the Pyramid and how to develop successful strategies to address consumers’ needs. The module is divided into three macro-topics: consumer behavior, innovation, and strategy. During the first five weeks, the students will learn more about the concepts of scarcity and how scarcity is experienced at different social and cultural levels. The students will gain a better understanding of consumers’ psychology and needs. During the remaining part of the course, the students will develop competencies in the domains of innovation and marketing strategy. That knowledge is fundamental to understand how companies operate in such a specific market. The course will allow the students to have a unique perspective on a market which is often neglected (the market of the poorest people in the world) but which still represents one of the most profitable segments. Moreover, the course will allow students to develop their sensitivity on matters related to diversity, inclusion, and equality which will provide them with a competitive advantage for their future careers.

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By the end of this course students will be able to: Knowledge and understanding Interpret the concepts of incidental, conditional, episodic and chronic scarcity Recognize successful elements in developing products and services for consumers at the Bottom of the Pyramid (BoP) Explain how to develop a marketing strategy, including a pricing and distribution strategy at BoP Applying knowledge and understanding Execute and implement interviews to assess how consumers cope with different types of scarcity in everyday life Contrast the stereotypical idea of poor consumer Differentiate and decide a successful strategy to address the target’s needs. Develop a new product and justify the decision for a strategy Making Judgements Compare different consumers’ habits depending on their relation with scarcity Criticize and compare existing marketing strategies (e.g., communication, pricing, and distribution) of companies operating at the BoP Judge the key elements of an innovation at the BoP Communication Skills Summarize and present the key findings of an analysis in an effective way Elaborate a strategy for the launch of a new product Present a strategy in an effective way Learning Skills Propose actionable solutions for a company Exhibit understanding of the key concepts related to the module

The modules of the course will cover the following topics: What do we mean by Bottom of the Pyramid and Why do we care? Incidental Scarcity and Compensatory consumption Conditional Scarcity and Social Comparison Episodic Scarcity and the Poverty Cycle Chronic Scarcity and the Stigma that Comes with it Innovation at the Bottom of the Pyramid The Challenges of Digitalization and New Technologies at the BoP Entrepreneurship at the Bottom of the Pyramid How to Communicate at BoP Pricing and Distribution Strategy at BoP The Role of Brands at the BoP Developing your Own Strategy

The key textbooks for the course are: Blocker, C., Zhang, J. Z., Hill, R. P., Roux, C., Corus, C., Hutton, M., ... & Minton, E. (2022). Rethinking scarcity and poverty: Building bridges for shared insight and impact. Journal of Consumer Psychology. Goldsmith, K., Griskevicius, V., & Hamilton, R. (2020). Scarcity and consumer decision making: Is scarcity a mindset, a threat, a reference point, or a journey?. Journal of the Association for Consumer Research, 5(4), 358-364. Roux, C., Goldsmith, K., & Bonezzi, A. (2015). On the psychology of scarcity: When reminders of resource scarcity promote selfish (and generous) behavior. Journal of consumer research, 42(4), 615-631. Mandel, N., Rucker, D. D., Levav, J., & Galinsky, A. D. (2017). The compensatory consumer behavior model: How self-discrepancies drive consumer behavior. Journal of Consumer Psychology, 27(1), 133-146. Hagerty, S. F., & Barasz, K. (2020). Inequality in socially permissible consumption. Proceedings of the National Academy of Sciences, 117(25), 14084-14093. Whillans, A., & West, C. (2022). Alleviating time poverty among the working poor: a pre-registered longitudinal field experiment. Scientific reports, 12(1), 1-17 Prahalad, C. K. (2012). Bottom of the pyramid as a source of breakthrough innovations. Journal of product innovation management, 29(1), 6-12 Bhattacharyya, A., & Belk, R. W. (2019). Consumer resilience and subservience in technology consumption by the poor. Consumption Markets & Culture, 22(5-6), 489-507 Tarafdar, M., Singh, R., & Anekal, P. (2013). Impact of ICT-enabled product and process innovations at the Bottom of the Pyramid: a market separations perspective. Journal of Information Technology, 28(4), 279-295. Arunachalam, S., Bahadir, S. C., Bharadwaj, S. G., & Guesalaga, R. (2020). New product introductions for low-income consumers in emerging markets. Journal of the Academy of Marketing Science, 48, 914-940. Shepherd, D. A., Parida, V., & Wincent, J. (2021). Entrepreneurship and poverty alleviation: the importance of health and children’s education for slum entrepreneurs. Entrepreneurship Theory and Practice, 45(2), 350-385. Beninger, S., & Robson, K. (2015). Marketing at the base of the pyramid: Perspectives for practitioners and academics. Business Horizons, 58(5), 509-516 Jacob, J., Vieites, Y., Goldszmidt, R., & Andrade, E. B. (2022). Expected Socioeconomic-Status-Based Discrimination Reduces Price Sensitivity Among the Poor. Journal of Marketing Research, 59(6), 1083-1100. Anderson, Stephen J., et al. "Modernizing Retailers in an Emerging Market: Investigating Externally Focused and Internally Focused Approaches." Journal of Marketing Research 59.3 (2022): 472-496. Cova, B., Barès, F., & Nemani, A. (2021). Creating a brand community at the bottom of the pyramid: The case of a Cameroonian music platform. Journal of Marketing Management, 37(9-10), 887-913. Han, Y. J., Nunes, J. C., & Drèze, X. (2010). Signaling status with luxury goods: The role of brand prominence. Journal of marketing, 74(4), 15-30.

Fully asynchronous TA consultations Group work Project Work

Attending Students will be evaluated on the following activities: Group interview and presentation of results (up to 9 points) Group work (up to 15 points): Target, prototype, and analysis (up to 7.5 points) + campaign and distribution/price strategy (up to 7.5 points) Two open simulations (up to 3 points): up to 1.5 points each In-person individual presentation: up to 3 points Bonus: up to 2 points for active participation on Perusall  Non-attending Students will be evaluated as follow: Study Materials: Watch teaching videos of Prof. Emanela Stagno Study all mandatory and optional readings (available on Canvas) Final Exam Structure: 1. Presentation of Project Work (24 points) Max. 10 slides Components: Interviews conducted Target identified Prototype of product/service Campaign, distribution, and pricing strategy Include provided templates 2. Questions on Readings (8 points) Covers both mandatory and optional readings Assignments to Include in Presentation (for both attending and non-attending students): 1. Conducting Interviews (9 points) Purpose: Discover experiences of scarcity Interview Requirements: Two consumers (18+ years old) Consent to record Key topics: Background info Definition of scarcity Feeling of constraint Impact on consumption Compensatory consumption Suggested duration: 30 minutes Presentation Content: Description of interviewees (no names) Methodology (how conducted, recording methods, duration) Main results Connections to course material Concluding remarks 2. Define a Target and Develop a Prototype (7.5 points) Purpose: Identify target market in BoP context of India Present prototype product/service Required Files: “What we mean by ‘Target’ and How to identify and reach your target market with surveys” (week 6) “Prototype: video, document, and template” (week 7) 3. Define a Campaign, Distribution, and Price Strategy (7.5 points) Purpose: Develop communication, distribution, and pricing strategy for the target and prototype Required Files: “Template Campaign, Distribution, and Price Strategy” (week 10)

Active attendance at the course. Quality of the proposed issue for the thesis.