Question

According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably", which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)?

A) The poor have no money.
B) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods.
C) People in BOP markets will be criticized for exploiting the poor.
D) People in BOP markets cannot use advanced technology.
E) All of the above are mistaken assumptions discussed by the authors.

Answer 1

All of the mentioned assumptions (the poor have no money, the poor only focus on basic needs, and they cannot use advanced technology) about BOP markets are incorrect and discussed as such by the authors of the Harvard Business Review article.

Step-by-step explanation:

According to the authors of the Harvard Business Review article, Serving the World's Poor, Profitably, the mistaken assumptions that global companies might have about the Bottom of the Pyramid (BOP) markets include A) The poor have no money, B) The poor are too concerned with fulfilling basic needs to 'waste' money on nonessential goods, D) People in BOP markets cannot use advanced technology. These assumptions are incorrect as they underestimate the purchasing power, aspirational qualities, and capabilities of the BOP market.

Despite the perception of poverty traps in low-income countries that prevent economic growth, these markets have the potential for profit while also contributing to development. The BOP market consists of billions of people who, collectively, have substantial buying power which they exercise, even on nonessential goods. Moreover, they are increasingly using and accessing advanced technology. Therefore, option E) All of the above are mistaken assumptions discussed by the authors is the correct answer.