Explaining product adoption and diffusion at the base of the pyramid

Abstract

Product adoption and diffusion dynamics observed in field studies vary with population size and structure and affect the financial future of firms of all sizes. The purpose of this study is to identify a single model that could produce this variety of dynamics. A single model was in fact identified in this study, namely replicator dynamics. To identify this single model, a case study approach based on secondary sources is utilised. Product adoption cases are selected from the base of the pyramid (BOP) because the richness and variety of that context provided a unique opportunity to study the phenomenon. It is shown that replicator dynamics could produce a variety of product adoption and diffusion dynamics that had been observed at the BOP. These findings imply that replicator dynamics, hence imitation and biased cultural transmission, may lie at the core of most product adoption and diffusion.