Why is doing business in low income communities easy and beneficial to the business? Reasons

Question

Question

Answer 1

Answer #1

Following are the benefits of doing business in low income communities

This customer segment is seldom in radar of many companies and hence there is least competitive forces present in this market which increases margins
The consumers in this segment are mostly located close to each other in a dense set-up. Hence it is beneficial logistically to cater to this population
Usually this customer segment is largest in terms of population and hence even if margins are smaller, it is a mass market where volumes are potentially huge
It is easier to influence these customers owing to their lesser awareness and hence expectations

Answer 2

Similar Homework Help Questions

Why is Human Resources management a fundamental part of a business and why is it beneficial?...

Why is Human Resources management a fundamental part of a business and why is it beneficial? (Answer should be at least a paragraph long)
Adding nutrients to streams is beneficial to biological communities and is one way to improve water...

Adding nutrients to streams is beneficial to biological communities and is one way to improve water quality Select one: True False High levels of carbon dioxide and low levels of oxygen in water may indicate . . . Select one: a. high levels of bacterial growth b. high water temperature c. low levels of bacterial growth d. a healthy stream system High levels of nitrates and phosphates cause animals to die in streams by Select one: a. stimulating blooms of...
why is it beneficial for business students to learn about new technology companies, such as airbnb...

why is it beneficial for business students to learn about new technology companies, such as airbnb or uber?

Provide two reasons why identification of DNA variants in cancer patients is relatively easy compared to...

Provide two reasons why identification of DNA variants in cancer patients is relatively easy compared to other disease phenotypes, such as intellectual disability.
Discuss the reasons for cost overruns and identify ones that would be easy to correct. What...

Discuss the reasons for cost overruns and identify ones that would be easy to correct. What reasons would be most difficult to correct? Why?
Why is business continuity planning so important? Identify the reasons why testing the plan is a...

Why is business continuity planning so important? Identify the reasons why testing the plan is a good idea.

Why is it generally beneficial for a business to accept major credit cards as payment for...

Why is it generally beneficial for a business to accept major credit cards as payment for goods and services even when the fee charged by the credit card company is substantial? And what type of costs do businesses avoid when they accept major credit cards as compared to handling credit sales themselves? Think of a business of your choice, Consider yourself running a business of your choice. Tell everyone what business it is, and how t do you think accepting credit...
why is there low reports of sexual violence? Note: Do not provide reasons that are obvious...

why is there low reports of sexual violence? Note: Do not provide reasons that are obvious such as personal, distressing and embarassing or stigmatizing reasoning. do gender roles or socio/cultural play a role?
Categorize the reasons dealing with unemployment is different in low and middle income countries than in...

Categorize the reasons dealing with unemployment is different in low and middle income countries than in high income countries Low and middle income countries High income countries A large proportions of jobs tend to be short term Industries are more capital than labor intensive Workers do not always work for money Labor laws discourage hiring and make firing very difficult Answer Bank The connection between the workers and government infrastructure allows workers to fully benefit from welfare programs.

Research the issue of education disparity between impoverished families and those from high income families/communities. Explain...

Research the issue of education disparity between impoverished families and those from high income families/communities. Explain if research shons that students from high income families achieve better in school. Develop a list outlining possible reasons why this disparity is real. Next, create a list of possible solutions micro (individual) and macro (systems, laws) solutions) that can address this disparity, with hopes of closing the gap