Question

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.

Answer 1

The correct answer is E) Global companies that target BOP markets will be criticized for exploiting the poor.

Step-by-step explanation:

The correct answer is E) Global companies that target BOP markets will be criticized for exploiting the poor.

According to Prahalad and Hammond, this is a misconception that needs to be corrected. They argue that global companies that successfully target the bottom of the pyramid (BOP) markets can actually create win-win situations, benefiting both the companies and the poor.

For example, by providing affordable and innovative products and services to the poor, companies can help improve their quality of life while also generating profits. Additionally, successful BOP initiatives can lead to job creation and economic development in these markets.