Implications of transaction cost on the consumer choice heuristics: a grounded theory analysis at the Indian bottom of the pyramid Online publication date: Sat, 08-Nov-2014
by Srabanti Mukherjee; Debdatta Pal
International Journal of Business and Emerging Markets (IJBEM), Vol. 6, No. 4, 2014
Abstract: The present study traces the implications of transaction cost on the consumer choice heuristics at the bottom of the pyramid. With the help of the grounded theory approach for theory generation, the study identifies that endowments like wide-spread low literacy and lack of 4As (awareness, availability, accessibility, and affordability) prompt the subsistence customers to minimise the transaction cost of purchase by resorting to bounded rationality, opportunism and locking-in effects. Such endeavours challenge the chronology of consumer decision-making process for convenience products and lead to an automatic choice of the interlinked market at the BoP even before evaluating the functional attributes of the brands of the required convenience products. Therefore, the findings of the study suggest that the choice of interlinked market limits the process of brand choice and forms an alternative choice heuristics in the subsistence market place.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Emerging Markets (IJBEM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook