Human Centered Design Principles and the Bottom of the Pyramid

In “Profits at the Bottom of the Pyramid,” we learn about two primary hurdles in poor markets: changing consumer behavior and changing the way that products are made. Indeed, while it is possible for companies to succeed in tapping potential profitability in the lower portion of the global consumer pyramid, the article makes a clear argument that those companies who do not take the above two challenges seriously may very well find themselves in difficult positioning within the marketplace.

I found the crossover of human-centered design principles to be particularly relevant to the article’s discussion of these two challenge areas, as well as to the challenges presented in other articles assigned in this week’s reading. For example, if we consider the primary problem that Anchen and Bauer find themselves facing at the close of this week’s case examining Envirofit International, we find an explicit example of the cross-section of human-centered design principles and the two challenges listed above.

To have a significant impact in the lower portion of the consumer pyramid, companies must study the user experience intently. By doing this, firms are able to understand the behavior patterns of consumers to the extent that they are prepared to intentionally attempt to affect these patterns in line with their product design, marketing, and functionality. Had Envirofit understood the cultural dynamics at play within Indian households between men and women, the firm’s team would have been better prepared to address the likely resistance that male household members would have to what is, to them, a significant purchase of an energy efficient, low emission cookstove.

This understanding of consumer behavior patterns is necessary for a legitimate attempt directed to change patterns of low-income consumers in such a way that allows for a socially-minded company to profit and grow to the scale at which a significant social impact is possible.

Likewise, a need to change the way a product is made so as to be conscious of profit margin and desired functionality is imperative. Again, in our example of the Envirofit cookstove, the firm found itself having difficulty mass producing cookstoves for the marketplace at a level of quality consistent with prototypes produced at the Colorado State University Engines and Energy Conversion Laboratory. Reliability and functionality are particularly important for a consumer base whose spending capital is incredibly limited and easily diverted into less beneficial product areas, like tobacco and alcohol in the case of areas and populations of India in which Envirofit’s market was centered.

In both behavior and product development and design, human-centered design principles are fundamental to best understanding and meeting the needs of the bottom of the consumer pyramid.