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The Problem with the "Poverty Premium"

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According to "bottom of the pyramid" theory, poor consumers pay much higher prices for most things than middle-class consumers do, meaning there's real opportunity for large multinationals to capture market share by offering high-quality goods at lower prices. But research on the ground in India shows that today, the poverty premium is often illusory. Companies need to be aware of how hard it is to compete solely on price.
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