CHANGES IN CONSUMER BEHAVIOUR OF INDIA “Change is growth, both intellectual and emotional.

Introduction:Possibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. The attitude of Indian consumers has undergone a major transformation over the last few years. The Indian consumer today wants to lead a life full of luxury and comfort. He wants to live in present and does not believe in savings for the future. An important and recent development in India‟s consumerism is the emergence of the rural market for several basic consumer goods. The Indian middle class has provided a big boost to the consumer culture during the recent past and it is hoped that their buying behaviour will continue to change in the coming future. Due to fast growth of the services sector per capita income of people of India is also increasing. The number of middle class is increasing due to another fact that people are fast shifting from agriculture to the services and industry sector where growth prospects are reasonably high as compared to the agriculture sector which is showing slow growth. The consumption pattern of a country depends on liberalization of economic policies, buying habits of the younger generation, financial independence at a young age, increase in number of nuclear families and increase in media exposure of the people. The tastes and preferences of the current generation are changing rapidly. The current generation does not mind paying extra for better facilities and ambience. Another major factor that has led to increased consumerism is the growth of credit culture in India. The Indian consumer does not feel shy to purchase products on credit and pay tomorrow for what they use or buy today. This tendency has led to a tremendous increase in purchase of homes, cars, two-wheelers and consumer goods. The market for luxury products in India is also climbing at an astonishing rate as compared to a decade ago when it was almost negligible. The reason behind this is that the purchasing power of people of India is rising very steeply. The Indian consumer today is highly aware about the product, price, quality and the options available with him. The purchasing is done by keeping all these factors in mind. Today, price is not the only consideration as it was a few years back when prices played a major role in purchasing. Marketers are trying hard to capture this ever increasing Indian middle class as they form the bulk of Indian consumers.

2 Literature Review:Consumer behaviour reflects the totality of consumer‟s decisions with respect to the acquisition, consumption and disposition of goods, services, activities and ideas by human decision making units. (Hoyer, Macinnis and Pinaki Das Gupta, 2008). Consumer behaviour means more than just how a person buys tangible products such as bath soap, digital music players and automobiles. It also includes consumer‟s use of services, activities and ideas such as going to the doctor, visiting a theme park, etc David M Potter (1954) presented the situation of consumers with diverse nature and ambitions. Cyndee Miller (1995) has described the 80 different natures of women as a purchaser in different capacities. Fitzerald (1994) has described the role of life style in deciding the consumer behaviour factor. The advertising age (1995) has given the reasons for developing different consumer images. Maxine Wilkie (1995) has advocated that Demographic plays a vital role for deciding the culture of consumer. Adweek's Marketing week (1994) has given the scene of vanishing culture of housewives and replacement by working wives. Howard and Sheth (1969) explained how consumer‟s buying behaviour influenced by internal and external factors. They explained that human mind is „BLACK BOX‟ which receive stimuli. This stimulus creates perception in the mind of consumer which implied the kind of learning– favourable or unfavourable. This will give the output in the form of acceptance or rejection. Basically this model is based on Stimulus -Response theory.

432435 Nowadays we hear a lot about an economical recession, how it influences the world economies and the stock markets around the Globe. But what influence does it have on lives of ordinary people? Has the consumer behavior somehow changed during this difficult period? The ordinary people are usually affected the most during the difficult economic times. They are the first ones who are hit hard by the drop in stock and real estate prices. Imagine if you have a house mortgage and the car payments to make, how would you feel if your retirement saving have decreased 40-50% in one year. Being in highly risky category, the average person is always at risk of losing his job. The reason for that is that despite how recession proof your company might be, it will eventually face a drop in earnings and revenues. So, to stay alive management usually has to reduce salaries or even lay off workers. All this will eventually lead to changes in consumer behavior. A person is more eager to save some extra money, because he does not know what future brings. Take meat products for examples - there not only has been a decrease in consumption of meat, but also the proportions of pork and beef consumption have changed. The reason for that is that during difficult economic times, people prefer to eat pork to beef, because of the cheaper prices. In some countries, where a large number of population is highly sensitive to price changes the demand for bread products has risen, meaning people have been buying more bread instead of other food products. That is because the bread has relatively low price cost compared to its high nutritious value. The economic situation during recession usually evolves like a snowball. It affects everything from the labor market and Gross Domestic Product to the prices on most necessities. Everything from alcohol and food items (like meat, milk, bread) to luxuries is affected by recession. Studies showed that people generally cut spending on most of the luxuries, which included the following: entertainment, clothes, traveling. This are the areas that are hit the hardest. As the consumption falls sharply in almost all sectors of the economy the simple logic tells us that the prices should also decrease. This is not the case today though. The governments around the world are so eager to continue spending, that they implement more taxes and regulations to try to cut their budget deficit. For example, in some of the EU member states, one of the side effects of this recession was the rise in alcohol and fuel prices because of the additional taxes implemented. Again an average person suffers. The recession will continue happening once in awhile. With the age of globalization and fast information technologies they will only get more fierce. So, the only thing we can do about it is to protect ourselves by taking less debt, saving more, having strong health and some special skills, which will help us to make a living in case of a layoff.

Make atmosphere around you more relaxing and unique. Learn how to chose the Best Settee Furniture for your home to make it cozy. Read about the history of settees, modern settees and their future. Learn how to chose a Upholstered Settee Furniture for your house or apartment.

Sign up to vote on this title
UsefulNot useful