**3. Low-income consumers**

The category of low-income consumers is vast. It defines the members of the socioeconomic group with limited incomes [11]. Most of the population in emerging economies consists of this group. Despite the magnitude of this group, there has yet to be a consensus regarding who constitutes low-income consumers. Moreover, the definition of low-income consumers is frequently contingent on the official definition of poverty, which varies by country and political criterion. In addition to these differences, low-income refers to those with insufficient financial resources to meet their basic requirements and limited access to essential public services [12].

Consumers in these emerging markets have significantly less money to spend on goods and services than consumers in developed countries [13, 14]. Further, these emerging markets are characterized by corruption, illiteracy, inflation, poor infrastructure, and red tape [15, 16]. These phenomena, unfortunately, worsened during the pandemic.

Accordingly, Correa et al. [11]state that low-income consumers are vulnerable and highly susceptible to adverse conditions. This vulnerability results from demographic, economic, psychological, and social factors [17, 18]. Consumers at the bottom of the pyramid tend to have fewer payment methods, and a smaller fraction of them own a bank account relative to high-income consumers. Therefore, lowincome consumers are constrained by spending and the type and variety of payment methods available [19].

However, according to [20], despite the limited purchasing power of the Bottom of Pyramid (BoP), this group's overall spending has a significant impact on the global economy, with an estimated 5 billion USD in purchasing power parity [21]. Given this impact, the BoP market represents a tremendous business opportunity in developing nations since it has been underserved for many years, even though this market segment contains many consumers who aspire to spend in the same product categories as higher-income consumers [22].

Furthermore, Blocker et al. [23] state that, similar to affluent market contexts, education, age, and gender affect product adoption in disadvantaged environments [24]. Even within a limited income range, income can affect consumption experiences for new products. Some shoppers can explore, while others focus on survival [25]. Malnourishment and other biophysical factors can dramatically affect vulnerability [26]. Illiteracy and numeracy also have drawbacks [27]. In particular, the inability to digest package information, deconstruct persuasive messages, or tally up cash at the register can reduce consumption [28]. Impoverished living increases cognitive load and buffer [23], reducing contextual sensitivity and impairing decisionmaking [29–31].

These five aspects frame low-income customers' consumption and openness to new products. These deficits show how low-income customers are constantly stressed and anxious in the marketplace [23, 28, 32], suggesting that businesses should focus

*Technological Adoption in Emerging Economies: Insights from Latin America and the Caribbean… DOI: http://dx.doi.org/10.5772/intechopen.112004*

on building trust and relationships with low-income consumers, providing them with value-added services, and using social media and mobile technology to reach them [23].

According to Roy et al. [33], understanding the purchase behavior of low-income consumers is crucial for developing effective marketing strategies to increase sales and profits. The study finds that low-income consumers prioritize price, quality, and convenience when purchasing. Therefore, businesses should focus on building trust and relationships with low-income consumers, providing value-added services, and using social media and mobile technology to reach them. The study also highlights the importance of understanding low-income consumers' cultural and social context and tailoring marketing strategies accordingly.

Moreover, Pels and Sheth [34] conclude that serving low-income consumers in emerging markets requires a different approach to business models than serving high-income consumers. The paper proposes a conceptual framework, a 2x2 matrix, to help businesses understand the needs and preferences of low-income consumers and design appropriate business models. The report also highlights the importance of understanding the social context dynamics and marketing environment approaches that moderate or counter some of the limits of poverty, making adopting new products possible. In addition, the paper emphasizes the need for innovation and strategic responses to enter low-income markets successfully. Finally, the report provides guidelines for future exploration of the business-to-business research domain and highlights the importance of global branding management in a rapidly changing environment.

Building on the market orientation literature, [22] identify a distinct firm capability, i.e., their base of the pyramid orientation (BOPO), that allows firms to create and capture opportunities in emerging markets. Moreover, they argue that BOPO enables firms to serve consumers' needs better and mitigate the risks and costs associated with emerging markets, consequently enhancing firm performance. All in all, this literature suggests that firms operating in emerging markets are more likely to succeed when they understand the consumers' needs and the challenges associated with these markets and take appropriate actions to address them.

However, despite BOP's theorized and observed importance in improving firms' success [22, 35], we need a more comprehensive understanding of how BOP affects firm outcomes. Moreover, research has yet to adequately address the assumed tensions between the firms' strategies to meet consumer needs in emerging markets and their environmental implications. Indeed, Arnold and Williams [36] state that firms may inadvertently harm themselves by degrading the natural environment in their desire to serve consumers in emerging markets.

Furthermore, more recent trends in literature have focused on new models to address the needs of low-income consumers. Tesfaye and Fougere [37] conclude that frugal innovation, which focuses on co-creation with the informal economy to create low-cost, quality goods and services for the poor, has been hijacked and co-opted in a hegemonic project that leverages powerful ambiguous signifiers, with co-creation acting as an empty signifier. The paper argues that frugal innovation has been transformed into a tool for corporate interests rather than empowering low-income people. The authors call for a critical examination of frugal innovation and its co-option power and for a reclamation of the concept for its original purpose of creating more inclusive markets and contributing to socio-economic development.

Finally, Blocker et al. [23] studied consumer self-confidence among low-income consumers. The study finds that self-confidence affects consumers' information

search and share intention and significantly affects product expertise. The paper also highlights the importance of self-awareness and self-efficacy in acceptance of disability, better health, and an active lifestyle. Additionally, the article discusses the moderating role of self-confidence and risk acceptance on the relationship between perceived risk and intention to use Internet banking, concluding that research must look beyond the effects of low income on price sensitivity to provide sustainable business models and educational strategies for emerging markets.

In conclusion, the current literature presents the challenges and opportunities of serving low-income consumers in emerging markets. The definition of low-income consumers varies by country and political criterion. However, it generally refers to those with limited financial resources to meet their basic requirements and limited access to essential public services. Consumers in emerging markets have significantly less money to spend on goods and services than consumers in developed countries and are vulnerable and highly susceptible to adverse conditions. However, despite the limited purchasing power of the Bottom of Pyramid (BOP), this group's overall spending significantly impacts the global economy. Therefore, inclusive businesses targeting low-income consumers face the challenge of designing business models that provide genuinely beneficial products and services at affordable prices.

Finally, the evidence suggests that firms operating in emerging markets are more likely to succeed when they understand the consumers' needs and the challenges associated with these markets and take appropriate actions to address them, highlighting the importance of consumer self-confidence in product acceptance among low-income consumers, which affects the information search and share intention of consumers, and significantly affects product expertise.
