The Problem with the "Poverty Premium"

• Autores: Ethan Kay, Woody Lewenstein
• Localización: Harvard business review, ISSN 0017-8012, Vol. 91, Nº 4, 2013, págs. 21-23
• Idioma: inglés
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• Resumen

  • The article looks at research on the poverty premium, which refers to higher prices paid by poor consumers, as of 2013. A 2002 article in the publication by C. K. Prahalad and Allen Hammond is credited with introducing the concept, which they say formed the basis of some corporate product introductions in emerging markets, citing companies including soy products firm Solae. The authors' research in 2013 in Mumbai, India is presented, which found that the prices in a poor neighborhood, Dharavi, were generally lower than prices for the same or similar goods in an upscale neighborhood, Warden Road. They discuss why the poverty premium may have shrunk or disappeared over the past decade.