The world population hit the seven billion mark in 2011, but out of that number symbolizing an unprecedented demographic bulge, four billion persons are at the bottom with low incomes, and must survive on less than US $2 dollars a day. Whereas the twentieth and twenty-first centuries have witnessed tremendous innovations in goods and services by some of the world’s leading companies, and a
... [Show full abstract] spillover of best practices to even very locally-based companies in developing economies, the four billion people are mostly underserved, and even worse still, totally ignored by companies due to their low-income status, which apparently is accompanied by a host of constraints to business, such as inadequate basic infrastructure, and other difficulties in doing business. Based on the dictate of traditional business practice of market segmentation, the four billion people have mostly not been considered as a market segment until very recently. It is only recently when companies have come to the realization that the large number of low-income earners may also constitute a viable market to which it is worth committing resources. On the matter of low-income groups being underserved by corporate services and goods, it is tenable to argue that goods and services marketed to the low-income groups are more often than not mere extensions of mature products in marketing campaigns by companies. As such, more often than not, products and services that are sold to the low-income groups are not innovated with low-income persons in mind. Predominantly, minor changes and modifications such as resized smaller packages, and no-frill offerings characterize products and services to the low-income groups. Closely linked to this trend are the risks of oversimplification of the needs, demands, and product and service preferences of the low-income groups, yet like other consumers, low-income people’s market behaviour can also be quite complex in terms of their choices and preferences. Nonetheless, there are compelling economic, social, and even moral rationales to innovate both products and services targeting the four billion people at the bottom of the global income pyramid.