Posted: February 8th, 2017

Can making loans to customers whose income is less than $100 monthly at interest rates of 20 percent to purchase TVs, cell phones, and other consumer durables be justified?

Respond to Question #2 at the end of the case:

Marketing to the B.O.P. raises a number of issues revolving around the social responsibility of marketing efforts. Write a position paper, either pro or con, on one of the following:

Is it exploitation for a company to profit from selling soaps, shampoo, personal computers, ice cream, etc., to people with little disposable income? Can making loans to customers whose income is less than $100 monthly at interest rates of 20 percent to purchase TVs, cell phones, and other consumer durables be justified? One authority argues that squeezing profits from people with little disposable income – and often not enough to eat – isn’t capitalist exploitation, but rather that it stimulates economic growth. Conclude with action steps a company can take to support your position. Be sure to support your arguments with a minimum of three scholarly sources that are cited in APA format within the text of your paper and on the reference page. Your written content should be two to three pages (not including the cover page and reference page), and formatted in APA style as outlined in the Ashford Writing Center.