Question

C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets-bottom-of-the-pyramid markets (BOPMs)-consisting of the 4 billion people across the globe with annual incomes of less than ________?

1) $1,000
2) $2,000
3) $3,000
4) $4,000

Answer 1

The bottom-of-the-pyramid markets (BOPMs) introduced by C. K. Prahalad include approximately 4 billion people worldwide with annual incomes of less than $2,000, which equates to living on less than $2 per day.

Step-by-step explanation:

C. K. Prahalad and his associates introduced the term bottom-of-the-pyramid markets (BOPMs) to describe the extensive market consisting of approximately 4 billion people globally with annual incomes below a certain level. According to various data presented, a substantial share of the population in countries like China, India, Nigeria, and Egypt, among others, live on very little per day. In the context provided, it is clear that this income level is benchmarked at less than $2 per day. This figure takes into consideration the difference in costs for essentials like food, clothing, and shelter when compared to the United States, meaning that although the amount may seem low by American standards, it can represent a different level of purchasing power in developing regions. Hence, the bottom-of-the-pyramid markets consist of the 4 billion people across the globe with annual incomes of less than $2,000.