The Fortune at the Bottom of the Pyramid is a book presenting an interesting argument - that emerging economies have 4 billion residents that struggle to live on a very minimal income, but even making a tiny profit off of sales of this volume can be a financial windfall. With a market of this size, there is certainly vast potential. Despite being very large and with high aggregate purchasing power the cost structure of serving this market has not been financially attractive to U.S. firms. Overall, The Fortune at the Bottom of the Pyramid has not worked out for U.S. companies because of which of the key criteria for successful market segmentation? This segment is not:
A) profitable.
B) significant in size and purchasing power.
C) well focused.
D) cooperative with the customer.

Question

Quizplus · Accepted Answer

CThe key criteria for successful market segmentation that are not met in this context include profitability and being well-focused. Serving the bottom of the pyramid can be challenging due to the high costs relative to the low-income levels, making it difficult to achieve profitability. Additionally, targeting this segment may lack focus due to the diverse needs and geographical spread of the population, complicating efforts to serve them effectively.

The Fortune at the Bottom of the Pyramid Is a Book