Role of Social Network in Defining the Impact of Marketing - Mix on Satisfaction from Food Items at Subsistence Marketplace
DOI:
https://doi.org/10.17010/ijom/2019/v49/i2/141579Keywords:
Bottom of the Pyramid (bop) or Subsistence Marketplace
, Compensatory Construct of Food Items, Marketing - Mix, Purchase Satisfaction, and Social NetworkPaper Submission Date
, June 11, 2018, Paper sent back for Revision, January 15, 2019, Paper Acceptance Date, January 21, 2019Abstract
The current research study modified the traditional 4Ps (product, price, place, and promotion) of the marketing - mix model in an egalitarian manner for the consumers in subsistence or bottom of the pyramid (BOP) marketplace. For this study, subsistence marketplace was defined as composed of households earning less than ` 8000 per month and clustered in slum areas. A survey of such 600 households clustered in six different slum areas of Delhi was conducted. This study constructed the marketing - mix for non-core or compensatory construct of food items. This study not only redefined the marketing - mix, but also determined the impact of identified marketing- mix constructs on purchase satisfaction and analyzed whether the relationship was moderated by BOP consumers' participation in the social network. The key findings emerged in the form of a redefined marketing - mix comprising of : Value of Offer, Convenience, Quality Food, and Social Sources of Information. A significant direct influence of marketing mix variables on purchase satisfaction was observed. The participation in the social network significantly moderated the relationship between consumers' satisfaction and price-mix and promotional-mix elements. This study stressed the need to use the social network for ethical market exchanges. It marks an integral step towards the inclusion of the long-forgotten BOP market in the mainstream, thereby improving their standard of living. This paper makes an original contribution in the direction of the revival of existing Western marketing dynamics and the role of social networks in the context of subsistence marketplace.Downloads
Downloads
Published
How to Cite
Issue
Section
References
Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38 (3), 102 - 120.
Ahmed, S., & Rahman, M. (2015). The effects of marketing mix on consumer satisfaction: A literature review from Islamic perspective. Turkish Journal of Islamic Economics, 2 (1), 17 - 30.
Akbay, C., & Jones, E. (2005). Food consumption behaviour of socioeconomic groups for private labels and national brands. Food Quality and Preference, 16 (7), 621- 631.
Ali, J., Kapoor, S., & Moorthy, J. (2010). Buying behaviour of consumers for food products in an emerging economy. British Food Journal, 112 (2), 109 - 124.
Banerjee, A.V., & Duflo, E. (2007). The economic lives of the poor. The Journal of Economic Perspectives, 21 (1), 141 - 168.
Byrne, B. M. (2010). Structural equation modelling with AMOS: basic concepts, applications, and programming (2nd ed.). New York, NY : Routledge.
Burlakanti, K., & Srinivas, R. V. (2013). The most influential factors of consumers' buying pattern at organized and unorganized retail stores with special reference to Kakinada City, Andhra Pradesh. Indian Journal of Marketing, 43 (1), 14 - 23. doi:10.17010/ijom/2013/v43/i1/34038
Chikweche, T., & Fletcher, R. (2010). Understanding factors that influence purchases in subsistence markets. Journal of Business Research, 63 (6), 643 - 650.
Chikweche, T., & Fletcher, R. (2012). Revisiting the marketing mix at the bottom of pyramid (BOP): From theoretical considerations to practical realities. Journal of Consumer Marketing, 29 (7), 507 - 520.
Das, G. (2011). Effect of retail sales promotion on buying behaviour of customers : An empirical study. Indian Journal of Marketing, 41(7), 25 - 35.
Davidson, K. (2009). Ethical concerns at the bottom of the pyramid: Where CSR meets BOP. Journal of International Business Ethics, 2 (1), 22 - 32.
Delhi Urban Shelter Improvement Board (DUSIB). (2016). Details of 675 JJ Clusters. Delhi: Govt. Of NCT of Delhi.
Dunne, P., Lusch, R., & Carver, J. (2010). Retailing (7th ed.). Mason, OH : South-Western Cengage Learning.
Ebitu, E. T. (2014). Marketing strategies and consumers' satisfaction of cement products in Calabar, Nigeria. British Journal of Marketing Studies, 2 (6), 52 - 67.
Elaydi, R., & Harrison, C. (2010). Strategic motivations and choice in subsistence markets. Journal of Business Research, 63 (6), 651- 655.
Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18 (1), 39 - 50. doi:10.2307/3151312
Government of India. (2014). 68th Round of National Sample Survey Office (NSSO) : Household consumption of various goods and services in India 2011-12 (Report No. 558(68/1.0/2). New Delhi : Ministry of Statistics and Programme Implementation. Retrieved from http://mospi.nic.in/sites
Goyal, S., Esposito, M., Kapoor, A., & Jaiswal, M., & Sergi, B. S. (2014). Understanding base of the pyramid literature - A thematic, methodological and paradigmatic review. pp. 1-27. Retrieved from https://www.researchgate.net/publication/255731397_Understanding_Base_of_the_Pyramid_Literature_-_A_Thematic_Methodological_and_Paradigmatic_Review
Gronmo, S. (1988). Compensatory consumer behaviour : Elements of a critical sociology of consumption. In P. Otnes (ed.), The sociology of consumption. New York : Solum Forag Norway: Humanities Press.
Guesalaga, R., & Marshall, P. (2008). Purchasing power at the bottom of the pyramid: Differences across geographic regions and income tiers. Journal of Consumer Marketing, 25 (7), 413 - 418.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6th ed.). New York : Pearson.
Hammond, A.L., Kramer, W.J., Katz, R.S., Tran, J.T. & Walker, C. (2007). The next four billion: Market size and business strategy at the base of the pyramid. Washington DC: World Resources Institute and International Finance Corporation.
Hayes, A. F. (2012). PROCESS: A versatile computational tool for observed variable mediation, moderation, and conditional process modelling [White paper]. Retrieved from http://www.afhayes.com/ public/process2012.pdf
Jaiswal, A. K. (2008). Fortune at the bottom of the pyramid: An alternate perspective (Working Paper No. 2007-07-13). Ahmedabad : Indian Institute of Management, Ahmedabad.
Jaiswal, A. K., & Gupta, S. (2015). The influence of marketing on consumption behaviour at the bottom of the pyramid. Journal of Consumer Marketing, 32 (2), 113 - 124.
Kadhim, A. F., Abdullah, T. F., & Abdullah, M. F. (2016). Effects of marketing mix on customer satisfaction: Empirical study on tourism industry in Malaysia. International Journal of Applied Research, 2 (2), 357 - 360.
Karnani, A. (2009). Romanticizing the poor harms the poor. Journal of International Development, 21 (1), 76 - 86.
Karnani, A. (2017). Marketing and poverty alleviation: The perspective of the poor. Markets, Globalization & Development Review, 2(1), 76-86. DOI : http://dx.doi.org/10.23860/MGDR-2017-02-01-05
Kolk, A., Rivera - Santos, M., & RufÃn, C. (2014). Reviewing a decade of research on the ''base/bottom of the pyramid'' (BOP) concept. Business & Society, 53 (3), 338 - 377.
Kotni, V. V. (2014). Perception of the retailers towards marketing mix strategies : An empirical case study on the soft drink market in Visakhapatnam. Indian Journal of Marketing, 44(6), 24 - 36. doi:10.17010/ijom/2014/v44/i6/80369
Layton, R. A. (2007). Marketing systems - A core macromarketing concept. Journal of Macromarketing, 27 (3), 227 - 242. doi: 10.1177/0276146707302836
Mahajan, V., & Banga, K. (2006). The 86% solution : How to succeed in the biggest market opportunity of the 21st century. New Jersey, USA: Wharton Publishing.
Malik, M. R. (2011). Determinants of retail customer satisfaction - A study of organized retail outlets in Kurukshetra. Indian Journal of Marketing, 41 (4), 56 - 64.
Mulky, A. G. (2011). Marketing to bottom of the pyramid and subsistence markets - A research agenda. Acta Universitatis Agriculturae ET Silviculturae Mendelianae Brunensis, 59 (2), 9 -14.
Nevin, S., & Karakus, S. S. (2010). Evaluation of food purchasing behaviour of consumers from supermarkets. British Food Journal, 112 (2), 140 - 150.
Ngai, E., Tao, S., & Moon, K. (2015). Social media research: Theories, constructs, and conceptual frameworks. International Journal of Information Management, 35 (1), 33 - 44.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York : McGraw - Hill.
Nuseir, M. T., & Madanat, H. (2015). 4Ps: A strategy to secure customers’ loyalty via customer satisfaction. International Journal of Marketing Studies, 7 (4), 78 - 87.
Prahalad, C. K. (2004). The fortune at the bottom of the pyramid: Eradicating poverty through profits (4th ed.). Philadelphia: Wharton School Publishing Paperbacks.
Prahalad, C.K., & Hart, S.L. (2002). The fortune at the bottom of the pyramid. Strategy + Business, 26 (1), 2 -14.
Purvez, S. A. (2003). Making use of mediating resources : Social network of the extreme poor in Bangladesh (IMEC Report). Dhaka, Bangladesh : IMEC.
Rangan, V., Chu, M., & Petkoski, D. (2011). Segmenting the base of pyramid. Harvard Business Review, 89 (6), 113 - 117.
Saquib, S., Khan, M. A., & Ahmed, R. (2013). Business strategies and approaches for effective engineering management. PA, USA: Business Science Reference.
Sharma, Y., & Nasreen, R. (2017). Ethics of serving the bottom of pyramid market - A study in context of Indian food market. Marketing to the bottom of the pyramid in emerging markets (p. 314). Pakistan: IBAICM 2016.
Sharma, Y., Nasreen, R., & Kumar, A. (2018). Impact of marketing-mix for core-food items on purchase behavior at subsistence marketplace - An empirical study of urban subsistence market of Delhi. Global Journal of Management and Business Research: E Marketing, 18 (3), 1-19.
Sreelata, Narasimham, N. V., & Gupta, M. K. (2016). Segmenting consumers in food and grocery retail. Indian Journal of Marketing, 46(4), 24-38. doi:10.17010/ijom/2016/v46/i4/90527
Subrahmanyan, S., & Gomez - Arias, J.T. (2008). Integrated approach to understanding consumer behavior at bottom of pyramid. Journal of Consumer Marketing, 25 (7), 402 - 412.
Thieu, B. T., Hieu, N. T., Huyen, N. T., Binh, P. C., & Hoang, N. V. (2017). Linkages between marketing mix components and customer satisfaction: An analysis on Google in Hanoi, Vietnam. Journal of Economics and Business Research, 23 (1), 123 - 148.
Viswanathan, M., Sridharan, S., & Ritchie, R. (2008). Marketing in subsistence marketplace. In Wankel C. (Ed.), Alleviating poverty through business strategy (1st ed., pp. 209 - 231). New York, USA: Palgrave Macmillan.
Viswanathan, M., Sridharan, S., & Ritchie, R. (2010). Understanding consumption and entrepreneurship in subsistence marketplaces. Journal of Business Research, 63 (6), 570 - 581.
Weidner, K.L., Rosa, J.A., & Viswanathan, M. (2010). Marketing to subsistence consumers: Lessons from practice. Journal of Business Research, 63 (6), 559 - 569.
Woodruffe, H. R. (1997). Compensatory consumption: Why do women go shopping when they're fed up and other stories. Marketing Intelligence and Planning, 15 (7), 325 - 334.
