Indian Consumer Behavior: Demographics, Age, Urban vs. Rural, Trends, Slides of Consumer Behaviour

Download Indian Consumer Behavior: Demographics, Age, Urban vs. Rural, Trends and more Slides Consumer Behaviour in PDF only on Docsity! Demographic Picture • The population of India is expected to increase from 1029 million to 1400 million during the period 2001-2026 - an increase of 36 percent in twenty- five years at the rate of 1.2 percent annually. As a consequence, the density of population will increase from 313 to 426 persons per square kilometer. Age group – Behavioural Patterns • Infants: Below 6. Young Parents spend a larger portion of disposable income on products like baby care • Teens: 8-12 years. They play an important role in family purchases and are conversant with hi-tech products • Teenagers: 13-19 years. They are an important part of the consumer segment and purchase across a large variety of consumer and hi-tech personal use products Rural vs. Urban India • Different marketing mix for both the markets • Mode of distribution/channels differs • Rural: A cultural and emotional connect with consumers. Airtel has has increased its regional content by introducing songs and caller tunes in regional languages Socio-Economic Diversity Urban: • High education levels • High exposure to media • Families play an important role in purchases • High interest in life style products • Pre-existing markets Socio-Economic Diversity Rural • Media exposure is increasing with increasing TV penetration • Utilitarian, practical buying habits • Head of family play an important role in purchase decision • Up-coming markets Diversity in Men Emerging Attitudes • Futuristic • Believes in equality of sexes • Driven by status and symbols • Risk Taker • Tech savvy • Individualistic • Wants to project right image Influence of changes in Indian Market • Booming Economy • Changing Demographics • Smaller Households • Increasing Awareness • Westernization • Retail Stores – Organisation and Expansion Consumer Trends • Affordable Indulgence • Time pressure • Health Consciousness • Double Income Households and affordability of EMI’s • Frequency of Purchase • Convenience Shopping Rural Consumer • Distribution of products is a challenge as number of retailers are limited and they influence purchase • Purchase takes place in ‘’Haats and Melas” which are popular in rural areas • Advertising strategy has to be specially tailored for rural customers New Consumption Patterns • Eating Out • Fast Food • Packaged Food against sales in loose form • Frozen Foods • Home Delivery New Consumption Patterns Shopping Culture • Shopping as a family outing • Price as driver of mass markets • Increase in sales of luxury goods • Malls are becoming popular and rotine for many consumers • Rural fairs are driving sales