Indian Changing Family Structure - Consumer Behaviour - Lecture Slides, Slides of Consumer Behaviour

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The Indian changing family structure • Nuclear families comprising of husband and wife and children have grown in India • Census 2011 - 56% of households in urban India now have four or less members • 10 years ago, the median household size in urban India was between four and five members The changing family structure • 49.7% of all Indian households having four or less members • The median Indian household has just a fraction over four members • In rural India, the median household size is between four and five members, but closer to four than it has ever been NCAER Report 2011 – Middle Class Middle Class Ownership • 49 per cent of total number of cars in India, 21 per cent of TVs, • 53.2 per cent of computers, 52.9 per cent of ACs, • 37.8 per cent of microwaves and 45.7 per cent of credit cards Socialisation and Family Member roles • Consumer Socialisation is defined as the process by which children acquire the skills, knowledge, attitudes and experience necessary to function as consumers • A socialisation agent is person or organisation involved in the socialisation process. Mothers may play an important role Socialisation – continuous process • Socialisation is not confined to childhood but extends into a persons entire life period • Adjustment to living and consuming begins from childhood • Phases like marriage, relocation etc is part of the ongoing socialisation process • Brand loyalties or preferences could evolve from one generation to another- intergenerational brand transfer Marketing Perspective – Traditional FLC • Companies are interested in the types of products and services that a household or family may be interested in each stage • Single adults will have needs for a variety of products and services, the combined income of young married couples allows a relaxed buying behaviour • Married couples with children have different stages with changing financial resources. The buying pattern changes at each stage depending upon responsibilities etc Marketing Perspective – Traditional FLC • Old married couples may buy luxury goods, new consumer durables etc as their disposable income increases. Unsatisfied needs may be fulfilled • Old age will see a more economical life style. Expenditure on healthcare products will increase Influence of Age • There is a definite variation in the pattern of consumption as per the age group • Younger generation will spend more on non- essentials and entertainment products • Older group consumers may have higher expenditure in sectors like medical etc • Hence companies segment the market according to age and choose their target market Age Profiling • Members of a specific subculture posses a distinct set of beliefs, values and customs that set them apart from other subcultures • They adhere to most of the dominant cultural beliefs and behavioural patterns of that community • Hence companies can understand their behaviour depending to the age group of these consumers Young India • Two-thirds of the Indian population is under 35 • The average Indian is expected to be only 29 years old in 2020, as against 37 in China and the United States, 45 in western Europe and 48 in Japan • 333 million is the number of literate young Indians • 62 per cent of the literate youth live in villages Young India • India has great market opportunities • Large market for companies producing consumer goods • This age group is characterised by a propensity to spend on pleasurable needs • In two decades from now the older generation would have a different profile from the current profile of the older generation Social Class categories in India • The upper social class is varied and tends to choose conspicuous consumer products • Expression of status results in the purchase of high-quality prestigious brands • Middle class values determine the type of products and services acquired and consumed • Disposable income is used in essential products, education, household gadgets etc Social Class categories in India • Consumers in working class are highly price sensitive and shop in kirana stores etc • They may also not have a lot of product information while shopping and buy cheaper variants. They constitute a large segment of population • Below poverty line consumers are important for the unbranded sector Lifestyle and Consumer Behaviour • Lifestyle characteristics provide relevant information to understand consumer behaviour and to design effective advertising campaigns • Lifestyle segments are important to study the different kinds of consumption patterns in a diverse market like India • Consumer lifestyles have important implications for market profiling, marketing communication and new product ideas Culture – an overview • Culture offers order, direction and guidance for satisfying physiological, personal and social needs • Culture also indicates what is necessity and what is a luxury • Middle class Indians consider basic TV and fridge etc as necessity and Plasma TV and double door fridge as luxury Culture – an overview • Cultural beliefs and customs continue to be followed as long as they give satisfaction • However, when a specific standard no longer provides satisfaction it is replaced to be in line with current needs • Cultural beliefs and traditions can be innovatively used by brands e.g. Herbal products, soaps like Hamam or water purifiers The Indian Context • In India, the dimension of culture extends to number of subcultures on account of number of languages and customs, different geographical areas and various religions • Consumer behaviour often varies in different parts of India • Culture assumes a dominating role in a typical consumer choice of products and services