Consumer Behavior Studies in India

Concept of consumer behavior 

The Study of consumer behavior is the study of how individual make decisions of spend of what they buy, why they buy it, where they buy it, where they buy it, how often they buy it and how often they use it.

"The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods & services".

Several Aspects of consumer behaviour 

1. Customer and consumer
2. The ultimate consumer
3. Individual buyer
4. The decision processes
5. A subset of human behavior.

Importance for studying Consumer Behavior 

The study of consumer behavior is vital in framing production policies, price policies, decisions regarding channels of distribution and above all decisions regarding sales promotion.

1. Production policies
2. Price policies
3. Decision regarding channels of distribution
4. Decisions regarding sales promotion.

Characteristics of the Indian Consumer Behavior

1. The Indian consumers are noted for the high degree of value orientation- Such orientation to value has labelled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market.
2. Indian consumers have a high degree of family orientation- This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Indian market.
3. Indian consumers are also associated with values of nurturing, care and affection- These values are far more dominant that values of ambition and achievement. Product which communicates feelings and emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer behavior is quite unique. Perhaps, only in India, one sees traditional products alongside modern products. For example, hair oils and tooth powder existing with shampoos and toothpaste.

Different Segments of Indian Consumers

1. The Socialites - Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods. They are always looking for something different. They are the darlings of exclusive establishments. They go for high value, exclusive products.
2. The Conservatives - The Conservatives belong to the middle class. The conservative segment is the reflection of the true Indian culture. They are traditional in their outlook, cautious in their approach towards purchases; spend more time with family than in partying and focus more on savings than spending. Slow in decision making, they seek a lot of information before making any purchase.
3. The Working Women - The working woman segment is the one, which has seen a tremendous growth in the late nineties. This segment has opened the floodgates for the Indian retailers. The working woman today has grown out of her long-standing image of being the homemaker.
4. Rural Consumer - About three quarters of the Indian population are in the rural areas and with the growing middle class, especially in the Indian cities, the spill over effect of the growing urban middle class is also felt in the rural areas.
5. India’s Rich - India’s rich can be categorized into five major categories as follows: -
• The Rich - The rich have income greater than US$11,000/- per annum. They spend more on leisure and entertainment-activities than on future looking investments. Across the category, backgrounds are distinctly middle class.
• The Super Rich - The Super Rich have income greater than US$22,000/- per annum. The Super Rich are mainly professionals and devoted to consumerism. They buy many durables and are status conscious.
• The Ultra Rich - The Ultra Rich have income greater than US$44,000/- per annum. There is no typical profile of the ultra-rich. Some single earning households are of first-generation entrepreneurs.
• The Sheer Rich - The Sheer Rich is made up by households having income exceeding US$110,000/- per annum. There are joint families as well as nuclear families in this category. They consume services greatly. They own multiple cars and houses. They aspire to social status and power.
• The Obscenely Rich - The Obscenely Rich is made up of households having income exceeding US$222,000/- per annum. They are first-generation entrepreneurs who have made it big. Some of them are techies. They are just equivalent to the rich in the developed countries. They crave for exclusivity in what they buy. Most premium brands are relevant to them.

Changing Trends in Indian Consumer Behaviour

1. Bulk Purchasing - Urbanization is taking place in India at a dramatic pace and is influencing the life style and buying behaviour of the consumers. The working urbanites are depending more on fast and ready-to-serve food, they take less pain in traditional method of cooking and cleaning. Bulk purchases from hyper stores seems to be the trend these days with purchasing becoming more of a once-a-week affair, rather than frequent visits to the neighbourhood market/store/vendor.
2. The popular growing shopping trend among urbanities is purchasing from super markets to hyper stores.
3. Trendy Lifestyles - The current urban middle- and upper-class Indian consumer buying behaviour to a large extent has western influence. There is an increase in positive attitude towards western trends. The Indian consumer has become much more open-minded and experimental in his/her perspective. There is now an exponential growth of western trend reaching the Indian consumer by way of the media and Indians working abroad. Foreign brands have gained wide consumer acceptance in India, they include items such as; Beverages, Packed food, Personal care products, Audio/video products, Garment and apparel, Footwear, Toys & Gift items e.tc. Foreign brands vie increasingly with domestic brands for the growing market in India. Foreign made furniture is well accepted by the Indian consumers. Malaysian, Chinese, Italian furniture are growing in popularity in India. Indian consumers have also developed lifestyles which have emerged from changing attitudes and mind sets; exposure to western influences and a need for self-gratification. Beauty parlors in cities, eateries, designer wear, watches, and hi-tech products are a few instances which reflect these changes.

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