IJSSH 2011 Vol.1(3): 235-238 ISSN: 2010-3646
DOI: 10.7763/IJSSH.2011.V1.41

A New Paradigm to Evaluate the BOP Population by Considering the Effects of Inflation Rate: A Real Case Study

Nasrin Jazani and Ahdieh Sadat Khatavakhotan
Abstract—Despite disagreements in Bottom of the Pyramid definition, there is a common idea declares that the Bottom of the Pyramid market with billions potential consumers is the most profitable market. The huge 2.5 to 4 billion low income population is the main goal of global marketing plans. The research done in the recent years shows that Bottom of the Pyramid marketing has remarkable benefits for companies and also social and cultural improvements for poor level of the society. In this paper a case study has discussed BOP market size in Iran in subsequent years 2007 and 2008. The suggested model helps calculating the Bottom of the Pyramid population. In this model two variables are assumed: inflation rate and income rate. The reason is the annual increasing inflation rate in Iran which makes the purchasing power less gradually. However, most marketing experts have only considered $2 daily income as BOP border. Calculating the approximate population of low income people in Bottom of the Pyramid in Iran helps to support them by predefined enrichment plans. The inflation rate, population growth rate, and average income applied in the case study are all extracted from formal reports of Central Bank of the Islamic Republic of Iran and Statistical Centre of Iran.

Index Terms—BOP Population, Household Expenditure, Inflation Rate, Purchasing Power

Dr. Nasrin Jazani, Ahdieh Sadat Khatavakhotan, department of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

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Cite: Dr. Nasrin Jazani and Ahdieh Sadat Khatavakhotan, "A New Paradigm to Evaluate the BOP Population by Considering the Effects of Inflation Rate: A Real Case Study," International Journal of Social Science and Humanity vol. 1, no. 3, pp. 235-238, 2011.
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