FACTORS AFFECTING PURCHASE INTENTION OF HYGIENE PRODUCTS AMONG BOTTOM OF THE PYRAMID CONSUMERS OF BANGLADESH

Abstract

The phenomenon known as Bottom of the Pyramid (BOP) has been widely researched, discussed, debated and cited in literature. The concept where the poor can be profitable segment was first coined by Professor C. K. Prahalad. Though initial concepts of this theory was limited to Multi-national companies (MNCs) (i.e., Unilever), a wide array of literature now exists from various perspective, business initiatives and consumers. Moreover, the segment is of interest by both profit and not-for-profit organizations (or institutions) to develop, design and deliver products and services to this potentially profitable segment. Though literature depicts the prospect for generating sales and profits of this segment is high, it does have challenges to overcome. One of the challenge is the debate on whether the BOP consumers attribute a homogenous or heterogeneous needs and wants? Many scholars argue that the wide scattering of these consumers geographically makes these customer different from each other and thus different consumers may have heterogeneous needs. Moreover these scholars predict that due to different income and availability of products (and services) consumer of this segment will have different buying behavior. On the other hand, other scholars believe the BOP segment has similar frugal needs thoughout the world. Despite the debate, scholars do however agree that communicating to the BOP segment can be challenging and depending on the medium of communication, the behavior of these consumers also change. Literature also suggests that “one size fits all” approach does not work with these consumer and customizing product and services for each geographical segment is not a viable option. This is especially true in developing countries as culture, religion and other factors makes developing countries significantly different than developed countries. Therefore, it is important to understand what the BOP consumers considers as having “value”, in their products and services. Moreover it is also important to understand how the perception of value is influenced by peers among this segment. This thesis addresses the factors leading to purchase intention of hygiene by BOP consumers of Bangladesh. Hygiene products have been considered for this thesis as these product are rarely highlighted and practicing proper hygiene procedures can prevent the spread of infections, leading to greater economic return for consumers and the country alike. To understand this phenomenon a theoretical model is developed consisting of existing and well established theories, which includes Social exchange factors (reciprocity, trust and reputation), Psychological factors (Social Influence), Value proposition (Functional, Symbolic and Cost) and Purchase Intention. These factors provide insights of BOP consumer’s decision for hygiene products. Data was collected through a survey questionnaire. The study used both descriptive and inferential statistical techniques to analyze the data. Some of the techniques are independent sample t-test, Principle component analysis, factor analysis and regression. Data was inputted and analyzed using IBM Statistical Package for the Social Sciences (SPSS) software. The results suggest that in Bangladesh, several construct of the Value factor do explains purchase intention of Hygiene products among BOP consumers. Moreover, components of social exchange factors and social influence do affect purchase intention, thus indicating consumers at the BOP are influenced by their peers and family.