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consumer behaviour

consumer behaviour

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Published by: Yashovardhansinghchauhan on Mar 07, 2011
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This study on Indian consumer behavior is aimed at helping India¶s No.1 two wheeler manufacturer (Motor Cycles and Scooters), to get a better understanding of the Indian market place thus enabling them to embark on selected strategies to effectively reach the Indian consumers. India is a big country with 28 states, over one billion people and 120 dialects/languages. From the market perspective, people of India comprise different segments of consumers, based on class, status, and income. An important and recent development in India¶s consumerism is the emergence of the rural market for several basic consumer goods. Three-fourths of India¶s population lives in rural areas, and contribute one-third of the national income. This rural population is spread all over India, in close to 0.6 million villages. Among the total 164.8 million households in India, 80.7 million households comes under low income group ( <US$ 581 ), followed by 50.4 million lower middle income households ( US$ 581 to US$ 1162), 19.7 million middle income group (US$ 1162 to US$ 1190 ), 8.2 million upper middle income group (US$ 1790 to US$ 2465 ) and 5.8 million high income group (>US$ 2465).

Definition of Buyer Behavior:Buyer behavior is ³all psychological, Social and physical behaviors of potential customers as they become aware of evaluate, purchase, consume and tell others about product & service. Consumer Buying Decision Process 1. Problem identification The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger particular need. By gathering information from a

Evaluation of alternative:There is no single process used by all consumers by one consumer in all buying situations. using the product. sales persons. some basic concepts are: First. Experimental sources: Handling. Marketers should find out the source of information and their relative degree of importance to the consumers. Personal Sources: Family. telephone directory. friends. catalogues. commercial. The marketer must know which criteria the consumer will use in the purchase decision . neighbor Commercial Source: Advertising. displays. friends. They can then develop marketing strategies that trigger consumer interest.number of consumers. business association. the consumer learns about completing brands and their features. Marketers can identify the most frequent stimuli that spark an interest in a product category. Second. the consumer is trying to satisfy need. Public sources: mass media. Information Search:The consumer tries to collect information regarding various products/service. Examine. the consumer is looking for certain benefits from the Product solutions. trade fair etc. rating organizations. Through gathering information. the consumer processes. There is several First. retailers. family members. consumer. Packaging. chamber of commerce. Information may be collected form magazines. dealers.

(3)Consumer behaviors are very complex and dynamic to constantly changing. management need to adjust with the change otherwise market may be lot. And therefore. such as need .Choice of purchasing decision:From among the purchase of alternatives the consumer makes the Solution. motives. perceiving advertising material. as well as social by external groups. of enviourmenatal economics influences and such family culture. as the influences. The consumer may also for man intention to but the most preferred brand Characteristic of Buyer Behaviors The chief characteristics of the buyers behaviors are as follow:(1)It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them. perception. and attitudes. In the evaluation stage the consumer forms preferences among the brands in the choice set. business . The marketer up to this stage has tried every means to influence the purchase behavior. but the choice is properly consumers. (2)It includes both observable activities such as walking through the market to examine as merchandise forming and making a purchase and mental activities-such attitudes. and learning to prefer particular brands. It may be to buy or not to buy. If the decision is to buy. (4)The individuals specific behaviors in the market place is affected by internal factor.

They prefer high value consumer products. The conservative segment is the reflection of the true Indian culture. go to clubs on weekends. These habits in turn affect their purchasing habits where they are trying to go for the middle and upper middle level priced products. spend more time with family than in partying and focus more on savings than spending. and spend a good amount on luxury goods. but often have to settle for the more affordable one. They look for durability and functionality but at the same time are also image conscious. The Conservatives The Conservatives belong to the middle class. They are traditional in their outlook. she is rubbing shoulders with men. Slow in decision making. The working woman today has grown out of her long-standing image of being the homemaker. They are always looking for something different. Today. exclusive products. cautious in their approach towards purchases. The Working Women The working woman segment is the one. Socialites are also very brand conscious and would go only for the best known in the market.Different SegmentsOf Indian Consumers The Socialites Socialites belong to the upper class. This segment has opened the floodgates for the Indian retailers. which has seen a tremendous growth in the late nineties. proving herself to be . They prefer to shop in specialty stores. They go for high value. They are the darlings of exclusive establishments. they seek a lot of information before making any purchase.

000/. The Sheer Rich . Working women have their own mind in decision to purchase the products that appeal to them.per annum. The Super Rich The Super Rich have income greater than US$22. There is no typical profile of the ultrarich. The Super Rich are mainly professionals and devoted to consumerism.000/. These people are upwardly mobile. The Ultra Rich The Ultra Rich have income greater than US$44.289. therefore.000/. Total household having such incomes are 1. Some of them in this category are Double Income No Kids (DINK) households. to attain the super-rich status.per annum. They spend more on leisure and entertainment-activities than on future looking investments. backgrounds are distinctly middle class.900. They aspire. They buy many durables and are status conscious.equally good.961. 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. who have been rich for a long time. Some single earning households are of first generation entrepreneurs. Total number of households is 320. The number of households in this category is 98. There are less DINK families here than in the rich category.058. Some rich farmers. There are some DINK households of middle-level executives. if not better. Across the category. belong to this category.per annum.

Most premium brands are relevant to them. There are joint families as well as nuclear families in this category. specially in the Indian cities.per annum. They crave for exclusivity in what they buy. They are just equivalent to the rich in the developed countries. Such households are 20. Marketing Strategies Online marketing . adding more than 1 million new consumers every year and now accounts for close to 50% of the volume consumption of fast-moving consumer goods (FMCG) in India.25 billion by 2010 from the present US$ 11. it is becoming an important market place for fast moving consumer goods as well as consumer durables. A variety of people belong to this category. The Indian rural market has been growing at 3-4% per annum. They are first-generation entrepreneurs who have made it big.The Sheer Rich is made up by households having income exceeding US$110.863. They own multiple cars and houses. Rural Consumer About three quarters of the Indian population are in the rural areas and with the growing middle class.per annum. As a result. There are hardly 6. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23.515 such households in India. The Obscenely Rich The Obscenely Rich is made up of households having income exceeding US$222. They consume services greatly. They do not have a homogenous profile.16 billion. Some of them are techies. the spill over effect of the growing urban middle class is also felt in the rural areas.000/.000/. They aspire to social status and power.

Their activities and movements are being closely watched and imitated. What they endorse sell like hot cakes. of which the business to business segment will account for US$ 5. refrigerators. For the Indian market.Motor Cycles and Scooters manufacturer should see the substantial middle class and base the market demand/projections on this roughly estimated at 250 million people with substantial disposable income. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. In general. TVs. In India. Freebies are consumer products given free of charge as gifts to purchases of selected products above a certain value. . It is not surprising therefore that using celebrities in advertisements has become common practice.41 billion. Conclusion Top class. Indian consumers are likely to buy environmentally responsible products and packs.10 million in 2000-01 to US$ 5.A study by the Confederation of Indian Industry (CII) and the International Trade Centre predicts that e-commerce activity in India will rise from US$ 0. washing machines.8 billion in 2005-06. Eco-Friendly Products The environmental awareness in India has started affecting marketing of products based upon their eco-friendliness. and ready made clothes are some of the product categories in which freebies are given to Indian consumers. Celebrity Influence This is an important tool which is able to influence Indian consumer buying behavior. Freebies Indian consumer buying behaviour is influenced by freebies. celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. middle class and lower class are income related classifications of the population and each of this class has its own consumption pattern.

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