India's population is over one billion, but many live on less than $2 per day. That hasn't dissuaded some Western companies, though, because the sheer number of poor consumers can still provide a market opportunity. So some companies have created products to meet the needs of this large group at a very low cost to consumers. For example, Dannon created yogurt treats that are just a mouthful and sells them for pennies. Those pennies have the potential to add up to substantial dollars due to the large number of poor consumers targeted. Which term describes this large number of poor consumers?
A) underserved market
B) bottom of the pyramid
C) secondary market
D) majority market

Question

Quizplus · Accepted Answer

The term that describes this large number of poor consumers is "bottom of the pyramid." This concept was popularized by C.K. Prahalad in his book "The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits." It refers to the idea that even though individuals may have low incomes, they still represent a sizable market opportunity due to their large numbers. Companies can create affordable products tailored to the unique needs of this market, and still generate profits while also contributing to poverty alleviation efforts.

India's Population Is Over One Billion, but Many Live on Less