Brand Loyalty, Base of the Pyramid, BoP, Prahalad, 4As
This purpose of this paper is to examine how Prahalad’s 4As market framework influences brand loyalty in the Base of the Pyramid (BoP) market of the Philippines. Specifically, Prahalad’s proposed market framework composed of four constructs – awareness, affordability, access, and availability. Prahalad proposed that the 4As strategic framework was a more appropriate alternative to the traditional marketing framework of the 4Ps – product, price, place and promotion. To date, limited market research has focused on brands and brand loyalty in BoP markets. The present study was conducted first to examine Prahalad’s 4As as a comprehensive set of constructs, and second to measure the impact of the 4As on brand loyalty in the BoP market of the Philippines.
Using an online survey, data was collected from 606 Philippine college students. Structural equation modeling was utilized to examine the relationship between Prahalad’s constructs and their combined impact on brand loyalty. Two constructs, access and availability, were combined into the construct presence, reflecting the consumers’ perspective that the product is present in the consumers’ marketplace, both in a store and on the shelf. Examining the impact on brand loyalty, both awareness of the branded product and the affordability of the branded product were found to be positively related to brand loyalty; these findings support previous research studies. While presence was not found to be related to brand loyalty, presence was found to be positively related to both awareness and affordability.
The paper concludes with a discussion of how the findings link to previous research, the theoretical implications, recommendations for marketing practitioners, the limitations of this research, and suggestions for future research.
Full Text : PDF
- Ahmed, M., Sandhu, A. R., Zulkarnain, M., & Gulzar, T. I. (2011). Factors behind the brand loyalty, developing and proposing a conceptual model. Interdisciplinary Journal of Contemporary Research in Business, 3(3), 1217-1229.
- Barki, E., &Parente, J. (2010). Consumer behaviour of the base of the pyramid market in Brazil. Greener Management International, (56), 11.
- Byrne, B. M. (2006). Structural equation modeling with EQS: Basic concepts, applications, and programming. New York: Psychology Press.
- Casselman, R. M., Sama, L. M., Horak, S., Stefanidis, A., Lu, V., Gevorkyan, A. V., & Carroll, R. (2015, February). A review of business models, mechanisms and solutions for the alleviation of poverty. In Prosperity, poverty and the purpose of business: Rediscovering integral human development in the Catholic Social Tradition (p. 74-79). Symposium conducted at the 9th International Conference on Catholic Social Thought and Business Education, Manila, Philippines.
- Chikweche, T., & Fletcher, R. (2011). Branding at the base of pyramid: a Zimbabwean perspective. Marketing Intelligence & Planning, 29(3), 247-263.
- Dawar, N., & Parker, P. (1994). Marketing universals: Consumers' use of brand name, price, physical appearance, and retailer. Journal of Marketing, 58(2), 81.
- Eisingerich, A. B., & Rubera, G. (2010). Drivers of brand commitment: A cross-national investigation. Journal of International Marketing, 18(2), 64-79.
- Khan, M. A., & Mahmood, Z. (2012). Impact of brand loyalty factors on brand equity. International Journal of Academic Research, 4(1), 33-37.
- Kim, J., Forsythe, S., Gu, Q., & Moon, S. J. (2002). Cross-cultural consumer values, needs and purchase behavior. The Journal of Consumer Marketing, 19(6), 481-
- Kumar, V., Sharma, A., Shah, R., & Rajan, B. (2013). Establishing profitable customer loyalty for multinational companies in the emerging economies: A conceptual framework. Journal of International Marketing, 21(1), 57-80.
- Lam, D. (2007). Cultural influence on proneness to brand loyalty. Journal of International Consumer Marketing, 19(3), 7-21.
- London, T., Sheth, S., & Hart, S. L. (2014). A roadmap for the base of the pyramid domain: Re-energizing for the next decade. (No. 1). Ann Arbor, Michigan.
- Mahajan, V., Banga, K., & Gunther, R. (2006). The 86 percent solution: How to succeed in the biggest market opportunity of the next 50 years. Upper Saddle River, NJ: Wharton School Publishing.
- Nguyen, T. D., Barrett, N. J., & Miller, K. E. (2011). Brand loyalty in emerging markets. Marketing Intelligence & Planning, 29(3), 222-232.
- Prahalad, C. K. (2004). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River, NJ: Wharton School Publishing.
- Prahalad, C. K. (2010). The fortune at the bottom of the pyramid: Eradicating poverty through profits (Revised and updated 5th anniversary ed.). New Jersey: Pearson Education.
- Prahalad, C. K. (2012). Bottom of the pyramid as a source of breakthrough innovations. Journal of Product Innovation Management, 29(1), 6-12.
- Punniyamoorthy, M., & Raj, M. P. (2007). An empirical model for brand loyalty measurement. Journal of Targeting, Measurement & Analysis for Marketing, 15(4), 222-233.
- Sheth, J. N. (2011). Impact of emerging markets on marketing: Rethinking existing perspectives and practices. Journal of Marketing, 75(4), 166-182.
- Singh, R., Ang, R. P., & Sy-Changco, J. (2009). Buying less, more often: An evaluation of sachet marketing strategy in an emerging market. Marketing Review, 9(1), 3-17.
- Sproles, G. B., & Kendall, E. L. (1986). A methodology for profiling consumers' decision-marking styles. Journal of Consumer Affairs, 20(2), 267.
- Tong, X. (2006). Creation of brand equity in the Chinese clothing market. (Ph.D., University of Missouri - Columbia). ProQuest Dissertations and Theses, (Currently available). (305307559).
- Wel, C. A. B. C., Alam, S. S., & Nor, S. M. (2011). Factors affecting brand loyalty: An empirical study in Malaysia. Australian Journal of Basic & Applied Sciences, 5(12), 777-783.