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© International Journal of Management, Economics and Social Sciences
2013, Vol. 2(3), pp. 157 – 186.
ISSN 2304 – 1366


Assessing Market for Multi-National Corporations at Nigeria's Bottom of the Pyramid; Hints from Consumer Behaviour


Nathaniel Adeyemi Adebayo
Dept. of Business Admin and Management Studies, The Polytechnic, Ibadan, Nigeria



Undoubtedly, poverty reduction has become a front-burner issue in development and business agenda. Since its announcement and defense by its advocates as a potent weapon against poverty, the Bottom of the Pyramid (BoP) concept has been bedeviled by controversies. A major controversy is whether or not Multi-National Corporations (MNCs) can serve the BoP market profitably without further impoverishing the poor. The main objective of this study therefore is to assess if there is market for MNCs at Nigeria's BoP. The primary data for this study were collected using Questionnaires administered to consumers in South Western Nigeria. The secondary data used were obtained from the National Bureau of Statistics Surveys; 2009/2010 Consumption Pattern and Consumer Expectation. Using a combination of primary and secondary data, the study employed multiple regression analysis on determinants of consumption at Nigeria's Bottom of the Pyramid. Findings of the study were mostly in conflict with the positions of the BoP advocates. On the basis of the trends in Consumer Behavior and the composition of baskets of goods at the Bottom of the Pyramid, the study concluded that the BoP market would be better served by indigenous micro, small and medium enterprises than Multi-National Corporations.

Keywords: Bottom of the Pyramid, poverty reduction, consumer behaviour, multinational corporations, micro, small and medium entrepreneurs
JEL: F23, I32, P36, P46


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