Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP)that need to be corrected.All of the following mistaken assumptions are correct except:
A)the poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods.
B)the goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit.
C)the poor have no money.
D)people in BOP markets cannot use advanced technology.
E)global companies that target BOP markets will be criticized for exploiting the poor.

Question

Quizplus · Accepted Answer

Prahalad and Hammond argue against the misconception that the poor have no money (C) and that they are only focused on basic needs, ignoring nonessential goods (A). They also challenge the idea that people in BOP markets cannot use advanced technology (D) and that companies targeting these markets will necessarily be seen as exploiting the poor (E). However, they do not argue that goods in developing markets are too expensive for new entrants to make a profit; instead, they suggest that there are opportunities for profit by innovating and creating affordable products for these markets.

Prahalad and Hammond Have Identified Several Assumptions and Misconceptions About