The base of the pyramid conversation often involves talking about the size and composition of BoP markets (wich, in fact, was the topic of my previous post) and how to create business models that sustainably create wealth for the people in those communities and the firms involved.I recently came across a very interesting paper from the World Bank which sheds light on something we have not touched upon that much (if at all): the changes in expenditure patterns of BoP consumers as new products enter the market. The paper is entitled "So You Want to Quit Smoking: Have You Tried a Mobile Phone?", and authored by Julien Labonne and Robert S.Chase.The basic idea is very simple: how do the spending patterns of BoP consumers change as they gain access to more products?(This post continues past the break; click "Read More" to continue) read more
