Classify the World Population Based on the Income Pyramid

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The Answer is Answers will vary. Conceptually, the world population can be divided into segments based on the amount of income received each day. Roughly 1 billion people-the very poor-live on less than $2 a day. Businesses have difficulty operating at this level because most activity in this segment is humanitarian. The next segment, which lives on $2-10 a day, accounts for about 3 billion people, who collectively make up a $5 trillion market. These two groups are often called "the base of the pyramid." Two other segments, those who make between $10 and 60 a day and those who make more, constitute a $12.5 trillion market that is well served by many companies' products and services. However, little competition occurs at the base of the pyramid; these markets are difficult to access, difficult to serve, and difficult to develop profitable products and services for.
The section "Base of the Pyramid Strategies" on page 179 discusses the income pyramid. Students can use this section to make their own interpretation and answer this question.

Classify the World Population Based on the Income Pyramid

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