An analysis of the applicability of NOS for the BoP in emerging markets is the goal of this thesis. A conceptual classification of NOS is developed and the BoP as potential market is identified to enable this analysis. The applicability is investigated through an identification of successful business concepts in developed and emerging markets and an imaginary transfer of concepts from developed to emerging markets, based on previously identified entry potentials.
In order to base the analysis on a solid conceptual framework, first, the shift from a goods-dominated (G-D) to a service-dominated (S-D) logic and the connected concept of value co-creation is demonstrated referring to existing literature. Furthermore, the concept of NOS is characterized and defined as conceptual framework for the following analysis. Moreover, a typology of NOS is developed to systematically categorize existing concepts. Second, the BoP is identified as potential target market for the application of NOS by defining and characterizing the market perspective and referring to underlying market data. Special aspects to be concerned while doing business at the BoP and specific needs of BoP consumers are also elaborated on for the applicability of NOS. Third, to systematically transfer the concept, successful NOS business models in developed markets are analyzed and classified as well as successful concepts at the BoP based on the developed conceptual framework to demonstrate current developments. Here, additionally, market entry potential through possible shortcomings is investigated. Based on this potential market entry wedges, identified concepts are transferred from developed markets to the BoP. Finally, implications for different stakeholders are derived, limitations and future directions elaborated, and the results of the analysis summarized in the concluding part of this thesis.
Table of Contents
1 Introduction
1.1 Purpose of the Study, Problem Definition and Objective
1.2 Course of Investigation
2 Concept of Service-Dominant Logic and Non-Ownership Services
2.1 The Shift from Goods-Dominant to Service-Dominant Logic
2.2 Value Co-Creation through Service
2.3 Non-Ownership Service Definition, Characterization and Typology
2.3.1 Service Characteristics
2.3.2 Non-ownership and Non-Ownership Services
2.3.3 Definition of Non-Ownership Services
2.3.4 Characterization and Terminological Differentiation of Non-Ownership Services
2.3.5 Typology of NOS
3 Base of the Pyramid – a Potential Target Market
3.1 Defining the Base of the Pyramid
3.2 Market Data
3.3 Mass Market vs. Multiple Market Niches
3.4 Doing Business at the Base of the Pyramid
3.4.1 Special Characteristics of Base of the Pyramid Markets
3.4.2 Challenges and Constraints
3.4.3 Entrepreneurship at the Base of the Pyramid
3.4.4 Business Concepts and Market Entry at the Base of the Pyramid
3.5 Specific Needs at the Base of the Pyramid
4 Transferring a Business Model: Non-Ownership Services at the Base of the Pyramid
4.1 Non-Ownership Services as Business Concept in Developed Markets
4.1.1 Reasons and Motivations for Non-Ownership Services
4.1.2 Current Development and Competitive Advantages
4.1.3 Overview of Existing Concepts
4.2 Non-Ownership Services as Business Concept in Developing Markets
4.2.1 Reasons and Motivations for Non-Ownership Services
4.2.2 Existing Businesses
4.2.3 Competitive Advantages and Entry Potential
4.3 Transfer of Business Models
5 Implications, Limitations and Future Directions
5.1 Implications
5.2 Limitations and Suggestions for Further Research
6 Conclusion
Objectives and Research Focus
The primary objective of this thesis is to examine the applicability of Non-Ownership Services (NOS) within Bottom of the Pyramid (BoP) markets. The research addresses whether business models centered on temporary access to assets, rather than the transfer of ownership, can serve as a viable solution for poverty alleviation while simultaneously creating profitable business opportunities. The central research question explores how successful NOS concepts from developed markets can be transferred to emerging markets, considering the unique socio-economic constraints and specific needs of the BoP population.
- Theoretical analysis of Service-Dominant Logic and the concept of "consumption without ownership."
- Characterization and typology of Non-Ownership Services (NOS).
- Identification of the Base of the Pyramid (BoP) as a target market and its unique operational challenges.
- Development of a systematic framework for transferring NOS business models to emerging economies.
Excerpt from the Book
1.1 Purpose of the Study, Problem Definition and Objective
“I'm sort of rich. I can rent anything I want!” (emphasis added) this ironic quote by the cartoon actor Homer Simpson metaphorically catches a currently ongoing development in consumption behavior and indicates general relevance for a current research discussion: Embedded in a whole body of works from Lusch and Vargo (Vargo & Lusch 2004a, 2004b, 2006, 2008a, 2008b; Bolton et al., 2004; Lusch, Vargo, & O’Brien, 2007), an extensive shift of research paradigms in marketing logic from a goods-dominant to a service-dominant logic is defined, reasoned and characterized. In connection to this change of logic, the process of value creation has also been redefined and adapted, mainly based on works of Grönroos (Grönroos 2008, 2011; Grönroos & Ravald, 2011; ) and further scholars (Vargo, Maglio, & Akaka, 2008; Edvardsson, Tronvoll, & Gruber, 2011). Concluding from these two significant streams of ideas, Maglio and Spohrer (2008) labeled the research field of “service science” and numerous publications have inquired various aspects of its details (i.e., Spohrer & Maglio, 2008; Vargo & Lusch, 2011). With respect to this, the discussion of service characterization and definition, influenced significantly by Gummesson and Lovelock (2004), opened the field for a further stream of thought: Non-Ownership services (NOS), which enable consumers to receive a certain service as provided by a supplier without actually owning the asset necessary to “produce” the service, have become increasingly relevant, both for scholars (Botsman & Rogers, 2010; Möller & Wittkowski, 2010) and in practice, as an increasing number of successful, i.e. profitable renting and leasing business in multiple forms prove (i.e., erento.de, avelle.com, boels.de, flexpetz.com, flinkster.de, zipcar.com).
Summary of Chapters
1 Introduction: Introduces the shift from goods-dominant to service-dominant logic and outlines the research objective of applying Non-Ownership Services to the BoP context.
2 Concept of Service-Dominant Logic and Non-Ownership Services: Establishes the theoretical framework by discussing S-D logic, value co-creation, and systematically defining and categorizing Non-Ownership Services.
3 Base of the Pyramid – a Potential Target Market: Analyzes the BoP market, its definition, empirical data, and the specific operational challenges and consumer needs faced by businesses in these regions.
4 Transferring a Business Model: Non-Ownership Services at the Base of the Pyramid: Evaluates existing business models in both developed and emerging markets to derive potentials for transferring and adapting NOS for BoP consumers.
5 Implications, Limitations and Future Directions: Discusses the strategic implications for NGOs, MNCs, and entrepreneurs, acknowledges research limitations, and suggests paths for future inquiry.
6 Conclusion: Synthesizes the findings, confirming the applicability of NOS at the BoP as a potential instrument for profitable poverty alleviation.
Keywords
Non-Ownership Services, Service-Dominant Logic, Base of the Pyramid, BoP, Value Co-Creation, Emerging Markets, Consumption without Ownership, Service Science, Market Entry, Poverty Alleviation, Business Models, Access to Asset Systems, Sustainability, Social Entrepreneurship, Resource Integration.
Frequently Asked Questions
What is the core focus of this thesis?
The work examines the potential of applying Non-Ownership Services (NOS)—models where consumers pay for access rather than ownership—as a strategic approach to meet the needs of consumers at the Base of the Pyramid (BoP).
What are the primary theoretical foundations?
The thesis is grounded in Service-Dominant (S-D) logic and the concept of value co-creation, alongside theories of property rights and service-science models like the FTU framework.
What is the primary research goal?
The goal is to determine if NOS can act as a bridge to convert poverty into an opportunity by lowering access costs to necessary assets for the poorest market segments.
Which methodology is applied?
The research conducts a conceptual classification of NOS, an analysis of BoP market data, and a qualitative identification of successful business concepts to facilitate a potential transfer of models.
What does the main body of the work cover?
It details the theoretical shift from goods-dominant to service-dominant logic, characterizes the BoP target market, and provides a comparative analysis of NOS business models in developed versus developing economies.
Which keywords define this research?
Key terms include Non-Ownership Services, Service-Dominant Logic, Base of the Pyramid, Value Co-Creation, and Social Entrepreneurship.
How do BoP constraints impact business entry?
The work identifies specific challenges such as institutional voids, chronic resource shortages, and low purchasing power, arguing that these constraints necessitate adapted business models like microfranchising or pay-per-use services.
What conclusion does the author reach regarding poverty alleviation?
The author concludes that NOS can facilitate a twofold benefit by providing the poor with affordable access to necessary assets while enabling businesses to generate profits through more efficient resource utilization.
- Quote paper
- Achim Schade (Author), 2012, Non-Ownership Services for the Base of the Pyramid, Munich, GRIN Verlag, https://www.grin.com/document/193685
