White Goods Demand Among Bottom-of-the-Pyramid Consumers Under Urbanization

Abstract

This study investigates how bottom-of-the-pyramid (BOP) consumers in urbanizing regions of China perceive and prioritize the attributes of white goods. Drawing upon the Kano model, a large-scale online survey was conducted, complemented by preliminary in-depth interviews, to capture the nuanced needs of BOP consumers. The results indicate a multi-layered demand structure, with factors such as product reliability, affordability, and durability classified as must-be attributes, while intelligent functionalities, brand image, and aesthetic design emerge as one-dimensional demands. Moreover, innovative, high-value-added features, including remote operation and personalized interfaces, are identified as attractive attributes. Analysis across different city tiers in China reveals substantial variation in consumption priorities: first- and second-tier city respondents place stronger emphasis on intelligent features and brand recognition, whereas third- and lower-tier city consumers exhibit a more pragmatic orientation, focusing on core performance and cost-effectiveness. These findings underscore the interplay between urbanization and demand evolution, offering managerial implications for firms seeking to tailor products and marketing strategies to distinct urban environments. From a policy perspective, the outcomes highlight the importance of fostering energy efficiency and environmental awareness through targeted incentives and support programs. Academically, this research contributes to the literature on BOP consumer behaviour by applying the Kano model to a durable goods context, thereby enriching the understanding of how low-income consumer preferences evolve amid rapid urban development.