India's Population Is Over 1 Billion, but Many Live on Less

question 83

Multiple Choice

India's population is over 1 billion, but many live on less than $2 per day. That hasn't dissuaded some U.S. companies, though, because the shear number of poor consumers can still provide a market opportunity. So some companies have created products to meet the needs of this large group at a very low cost to consumers. For example, Dannon created yogurt treats that are just a mouthful and sells them for pennies. Those pennies have the potential to add up to substantial dollars due to the large number of poor consumers targeted. This large number of poor consumers is often referred to as the _____.

• A) underserved market
• B) bottom of the pyramid
• C) secondary market
• D) majority market
• E) inverted pyramid market

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Definitions:

Inert Set

A group of brands or products that a consumer is aware of but feels indifferent towards when making a purchase decision.

Lexicographic Rule

A decision-making rule where alternatives are compared based on the most important attribute first; if one option is superior, the decision is made, otherwise the next most important attribute is considered.

Attribute Preference Rule

A decision rule used by consumers, focusing on a single characteristic of a product to make a choice, often when other decision criteria are overwhelming or unclear.

Disjunctive Rule

A decision-making rule applied when choosing among alternatives, focusing on selecting the option that has at least one attribute exceeding a threshold level.