Access-based Services for the Base of the Pyramid

Tobias Schäfers, Roger Moser, Gopalakrishnan Narayanamurthy

Research output: Contribution to journalJournal articleResearchpeer-review

8 Downloads (Pure)

Abstract

One key challenge for consumers at the base of the pyramid (BoP) is access to products that could transform their livelihood, leading to nonconsumption as the dominant pattern. Previous studies have claimed that nonconsumption could be addressed with services offering access to goods without ownership. Drawing on expected utility theory, we conduct two experimental studies in rural India that provide the first empirical support for the idea that the availability of access-based services reduces nonconsumption at the BoP. Additionally, we show that this effect is explained by BoP consumers’ expected utility assessment as reflected in their perception of access being more affordable and entailing less financial risk than ownership. We also demonstrate that access temporality, an important configurational variable for access-based service providers, affects the degree to which nonconsumption can be decreased. Compared to short-term access, BoP consumers perceive long-term access to be too similar to ownership in terms of affordability and financial risk, which causes them to refrain from purchasing. Overall, the results suggest that access-based services represent a viable alternative for addressing nonconsumption at the BoP. However, service providers should be aware that short-term access is required to gain acceptance among BoP consumers.
Original languageEnglish
JournalJournal of Service Research
Volume21
Issue number4
Pages (from-to)421-437
Number of pages17
ISSN1094-6705
DOIs
Publication statusPublished - 22 Apr 2018
Externally publishedYes

Bibliographical note

Epub ahead of print. Published online: April 22, 2018

Keywords

  • Access-based services
  • Base of the pyramid
  • Nonconsumption

Cite this