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Business Case Analysis (Marketing)

Read Attach Case (Marketing to the Bottom of the Pyramid).

Respond to, and discuss the following three questions:

1. Is it exploitation for a company to profit from selling soaps, shampoo, personal computers, and ice cream, and
so on, to people with little disposable income?

2. Can making loans to customers whose income is less
than $100 monthly at interest rates of 20 percent to purchase TVs, cell phones, and other consumer durables be justified?

3. 'Squeezing profits from people with little disposable incomeÃ?¢?"and often not enough to eatÃ?¢?"is not capitalist exploitation but rather it stimulates economic growth.' Comment on this statement.

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1. I do not believe that it is exploitation for a company to profit from selling soaps, shampoos, personal computers, and ice cream, and so on to people with little disposable income. I do not believe that this is exploitation, due to the fact that the individuals have a choice whether or not to purchase these items from a given company, or whether or not to purchase these items at all. I believe that individuals can usually find cheaper access to a great variety of items, due to the mere fact that there is usually competition between different businesses for the potential customers in a given area, and this competition will usually cause one or more of the competitors to reduce ...

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