Purpose: Retailers' new product acceptance in base of pyramid (BoP) markets is crucial to marketers in this segment. This paper seeks to develop propositions for research on factors that affect retailers in new product introduction. The propositions also aim to make a distinction between urban and rural BoP markets. Design/methodology/approach: The paper provides a broad description of India's BoP market (one of the world's largest BoP markets) to better understand context. It uses literature from developed country context to BoP markets to arrive at research propositions for further research. Findings: The key research propositions derived relate to exogenous and endogenous factors. Exogenous factors relate to store trading area, competitive environment, shopper characteristics and product diversity. The endogenous factors include store atmosphere, assortment and shelf space allocation, price and promotion. The differences across rural and urban BoP markets are highlighted for each proposition. Practical implications: Understanding differences between rural and urban BoP retailers can help make crucial new product introduction decisions. Considering endogenous and exogenous factors that influence retailer acceptance decisions will make product introduction decisions successful. Originality/value: BoP literature has been replete with research on marketers and products but less on retailing. This paper addresses that gap. In addition, very few papers make the distinction between urban and rural BoP markets and mostly across countries but not within a country. This paper places the distinction within the country. Finally, explaining how various factors influencing retailing differ in urban and rural contexts and developing propositions is a major original contribution of this paper. © Emerald Group Publishing Limited.