Examining BOP Customers’ Package-Size Choice Decision

Abstract

Despite the enormous market potential at the bottom of the pyramid (BOP), firms face challenges in formulating a winning marketing strategy, especially from the product package-size perspective. In this context, this study examines how and when aspects of the BOP customer's package size choice decision across different product and income categories. The study employed the interpretative phenomenological paradigm of qualitative research design. A total of 30 long face-to-face interviews were conducted. The questions were open-ended. Each interview was audio-recorded and then transcribed into text. A text (content) analysis method was used to analyse the data based on the subjective understanding of different phenomena under investigation. The study found that customers’ economic, consumption-related, psychological, and in-package framing-related factors affect the package-size decision. BOP consumers do not necessarily misplace their resource allocation priorities in the context of package sizes or get driven by companies' different marketing campaigns. Instead, they carefully evaluate the utility of varying package sizes based on their economic and behavioural aspects to substantiate their purchase behaviour. However, the judgments about package sizes vary based on product categories and income heterogeneity. Considering factors such as customer affordability, product necessity, and usage volume, firms can design the marketing mix and take appropriate package-size and in-package promotional framing decisions. A marketing strategy comprising customer-centric package-size decisions can enable firms to exploit the untapped potential of BOP markets. This can help BOP customers regulate their product consumption and spending habits to live better lives. The study contributes to the literature on BOP by establishing an integrated framework depicting how economic, consumption-related, and psychological factors affect decision-making from the package-size choice perspective. Besides, our framework explains how the in-package framing of the marketer's promotional offers influences package-size decisions based on perceived gain and loss.

Keywords: Package Size, Choice Decision, Bottom of the Pyramid, Emerging Market, India