ABSTRACT
This chapter explores how and to what extent base of the pyramid (BoP) consumers are integrated in innovation processes. It argues that direct interaction with, and active integration of, BoP consumers into innovation processes are crucial to the success of BoP ventures. The chapter presents insights from theory regarding consumer integration into innovation processes by describing the basic ideas, assumptions and selected methods of consumer integration into innovation processes. It focuses on the empirical results of an explorative study regarding innovation processes and consumer integration in BoP markets. The costs companies face to gain access to the tacit knowledge of BoP consumers can be compensated through the fact that consumers actively participate and, ideally, take over tasks in the innovation process. Companies also need to overcome structural constraints in BoP markets, such as the lack or difference of distribution and communication channels. The selected case studies show that innovations are crucial for entering markets.
