Question

Low-income consumers traditionally have been an underserved area, even though the needs of these consumers are the same as those of people in a higher income bracket. There is a large number of consumers at what is often referred to as the bottom of the pyramid that companies can profitably target, given the right marketing mix strategy. These strategies can include modifying the offer to the marketplace through innovations in both product design and service elements.

Which of the following might be some good examples of how to modify a product or service to meet the needs of low-income consumers?
Select all the items in the following list that apply, and click Submit.

O Reduce the size of the product's package.
O Ship the product in a retail-ready box that will require less handling by the retailer.
O Make multiple varieties of the product available.
O Source from local suppliers.
O Keep large amounts of inventory to ensure products do not go out of stock.

Answer 1

Modifying a product or service to meet the needs of low-income consumers can be achieved through reducing packaging size, sourcing from local suppliers, and offering multiple varieties of products.

Step-by-step explanation:

Modifying a product or service to meet the needs of low-income consumers can help companies effectively target this market segment. Some good examples of modifications include:

1. Reduce the size of the product's package: This can help lower the cost of the product, making it more affordable for low-income consumers.
2. Source from local suppliers: By sourcing products from local suppliers, companies can support the local economy and offer lower-priced products.
3. Make multiple varieties of the product available: Offering different varieties of a product allows low-income consumers to choose options that fit their budget and preferences.

By implementing these modifications, companies can cater to the needs and budgets of low-income consumers, making their products more accessible and profitable.