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CONSUMER BEHAVIOR
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CASE 1 (20 Marks)
Sports marketing strategy: A consumer behavior case analysis in China. Marketing research that
targets consumers' influences and financial implications is a worthwhile sports marketing effort. To
implement effective marketing strategies in a specific country, it is pertinent to understand consumer
behavior in that country. In this paper, 11 major findings related to the unique behavior, attitudes, and
buying patterns of Chinese sports consumers are highlighted. From the results of questionnaires
administered to 2,155 mainland Chinese consumers in 10 selected cities, different economic, social,
and personal factors in the China's environment are determined. The marketing implications of the
Chinese culture and lifestyle are also discussed.
With a quarter of the world's population and a fast-growing economy, China is rapidly turning into
one of the busiest market centers in the world. Sports marketing has the potential to emerge not only
as an effective vehicle in imitating the development of the Chinese economy, it also affects the
Chinese culture and lifestyle.
Since sports marketing in China has not been analyzed or researched, it is appropriate to study the
consumer as well as general financial implications. A look at American success in sports marketing
will be helpful. However, implementing such strategies in China creates special considerations
because of the existence of cultural and economic differences between the two countries. This study
attempts to identify the proper marketing strategies in China through an analysis of Chinese
consumers' behavior, attitudes, and buying patterns.
METHODOLOGY
The methodology used in this study consisted of exploratory research of interviewing managers of
retail outlets, secondary research of literature review, and primary research of a total of 4,000
questionnaires distributed in 10 selected cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao,
Shanghai, Shenzhen, Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a
judgmental quota sample and assigned to one of four age groups with equal males and females. The
rate of response was 53.9%; 2,155 questionnaires were returned.
The analysis of the data include editing, coding, analyzing coded observations, and interpreting
results for solutions to the research problems. Tabulations and measures of central tendency were
used to describe the distribution of characteristics in the subject population. Crosstabulation and chi
square statistics were also used to show relationships between consumer segments.
SURVEY FINDINGS
Eleven major factors affecting consumer purchasing emerged from the questionnaire data analysis: 1.
purchasing reasons; 2. purchasing experience evaluation; 3. income level relative to the expense
level; 4. type of sporting goods purchased; 5. product factors affecting purchasing; 6. people
influencing consumer purchasing; 7. sources of information about where and how to purchase;8.
influence of advertisements; 9. brands consumers prefer; 10. where goods purchased; and 11. time
spent in sports.
Purchasing Reasons: The major reason why people purchased sports products was "for exercise."
Purchasing Experience Evaluation: Approximately half of the respondents indicated that their
purchasing experience was "positive."
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Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from less
than $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of the
respondents.
However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of
sporting goods.
Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for
Chinese consumers. Females tended to purchase apparel; males were more likely to purchase all type
of sporting goods.
Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most important
factors influencing purchasing decisions. People Influencing Consumer.
Purchasing: "Boy-and-girlfriend" had the most important influence in the decision process. "Parents"
had the least important influence.
Sources of Information About Where and How to Purchase: The major information channel for
Chinese consumers was their "going to a shopping mall" experience.
Influence of Advertisements: Of those responding to the survey, more than half said they either
"occasionally" or "rarely" believe advertisements.
Brands Consumers Prefer: Adidas, Asics, Nike, and Reebok were identified by the Chinese
consumers.
Where Goods Purchased: Most of those surveyed purchased their sporting goods from either "a
sporting goods store" or "a department store."
Time Spent in Sports Activities: Almost 90% of the Chinese consumers spent "less than 5 hours a
week" participating in sports activities. However, three meaningful findings emerged: 1) those who
participated "less than 5 hours per week" in sports activities spent more money purchasing sports
products than those who participated "over 5 hours" per week in sports activities; 2) those in the
income level of "$402 to $863 U.S." spent more time participating in sports activities; 3) young
adults and "unmarried" persons spent more time per week participating in activities than those who
were "married" or elderly.
DISCUSSION ON CONSUMER INFLUENCES
The following discussion focuses on economic, social, and personal influences. These three
categories have unique Chinese environmental and cultural meanings and thus need to be considered
when engaging in marketing in China.
Economic Factors: Unlike the past, when most income was spent on basic necessities such as food
and clothing, the current Chinese consumer spends more money on entertainment and durable goods.
However, the general tendency of the Chinese consumer to have stronger purchasing power and the
fact that their buying decisions reflect creative purchasing beyond bare necessities are not reflected in
sports marketing. It could be concluded that not all Chinese consumers are willing to spend a certain
percent of their income on sports products. This phenomenon can be explained either by consumers'
lack of sufficient income or too high a price for sports products. On the other hand, however, a great
potential exits for marketers who appeal to the Chinese consumers with creative strategies. Those
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who know desires and needs in specific areas, while being sensitive to economic restraints, may
capture a slumbering Chinese market.
Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle
of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers
to be optimistic about Chinese consumers.
 The most important trend is growing fitness consciousness. No matter the gender, age,
occupation, and education of those surveyed, all tend to tie their purchase of sports products
with exercise and entertainment.
 A second trend the survey revealed is a movement toward use of sports products for casual
reasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.
 There is a growing consumer preference for international products. The Chinese people,
especially the younger generation, are very fond of wearing and using brand name sporting
goods from around the world. Owning high grade sporting goods seems to be a symbol of
wealth and a new fashion for those young consumers.
The social and culture trends just discussed will lead to different pricing, promotional, and
distributional strategies. Since marketing principles are applicable throughout the international arena,
what has proved successful in the American market could basically be transferred and applied to the
China market.
However, to implement a successful marketing strategy in China, several environmental differences
must be taken into account:
1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create an
attractive shopping environment in a prestigious shopping center.
2) Chinese consumers believe what they see rather than what they hear. They know that some
imitation products exist in the market, and dishonesty in advertising is publicized. Marketers
should increase their image by eliminating imitation products and dishonesty advertising.
3) Although consumers' attitudes toward the international sports products are positive, devotion
or loyalty to brands is subject to rapid change. Marketers should have a strategy to keep
consumers' loyalty.
4) Non athletes have greater purchasing power than most athletes or sportspersons. Nonathletes
buy sporting goods either to impress others or simply because their friends have those items.
Marketers should consider how to design sports product with attractive sports features.
5) The type of sporting goods desired by the older and younger generations is widely dissimilar.
And a large gap exists between the desire to purchase and the ability to purchase sporting
goods. It causes problems of bringing the right products to the right person and establishing
an appropriate price policy.
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6) The purchasing decision of Chinese consumers is heavily influenced by social values and the
social environment. Marketers should establish an educational program to either match or
lead a social value.
Personal Factors: Because of recent social changes, Chinese consumers have learned much from
other cultures. They are more independent and more knowledgeable about commerce and business.
There are at least three particular changes which may create opportunities for marketers:
1) The nuclear family has become the baic economic unit, and it has more power to make
purchasing decisions. With the implementation of the "one child per family" policy in China,
the nuclear family, consisting of parents with one child, has replaced the traditional clan
family which consisted of two or more generations living as one family.
2) Chinese wives are viewed as decision makers for goods purchased in families. Since wives
control family finances, it is important to target wives.
3) Individuals who live in the urban locations have stronger purchasing power. The Chinese
government predicts that by the end of 1995, people in large urban areas will increase to
30% of the population. This modernization movement will undoubtedly create business
opportunities.
Questions
Discuss the various factor which influences consumer behavior in china?
What should be the target market and what can be the marketing strategy?
CASE - 2 (20 Marks)
Consumer behavior: yesterday, today, and tomorrow
THE ECONOMIC PARADIGM
The 1940s view of the consumer in the marketplace was rooted in economic theory. Most scholars of
economics probably still hold to the theory of Economic Man. In this paradigm, purchasing decisions
are the result of largely "rational" and conscious economic calculations. The individual buyer seeks to
spend his income on those goods that will deliver the most utility (satisfaction) according to his tastes
and relative prices. This is a normative rather than a descriptive model of behavior, because logical
norms are provided for buyers who want to be "rational."
The model suggests useful behavioral hypotheses, such as: (a) the lower the price of the product, the
higher the sales; (b) the lower the price of substitute products, the lower their sales; (c) the lower the
price of complementary products, the higher their sales, provided they are not "inferior" goods; and
(d) the higher the promotional expenditures the higher the sales. In striving to meet these hypotheses,
consumers are not only assumed to be aware of all available alternatives in the marketplace; they are
also assumed to be able to rationally rank order the available alternatives by preferences. This is the
case of perfect information in the marketplace and unlimited ability of tile consumer.
In applying these assumptions to actual consumption, several problems became apparent. First of all,
consumers do not have perfect information in the marketplace. Second, they do not all have the same
information about the existing alternatives or attributes of known alternatives. instead, each consumer
has fragmented knowledge of his or her own set of known alternatives; as a result, consumers can not
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always rank a set of alternatives available to them. In addition, preferences often violate utility
theory, because different people prefer different styles, have different tastes, and hence make choices
built on preferences rather than objective information such as price.
Problems arise with applying economic theories to gifts. Increasing the price of goods may actually
make them more desirable, defying basic economic theory. Hence, inverted demand curves reflect
products where increasing prices stimulate increasing sales. Perfume is a perfect example of this type
of good. Most perfume or cologne is bought as a gift, and the connotations of bringing home a $2
bottle of cologne or a $50 bottle for a loved one are implicit. A relationship may not last upon receipt
of the cheaper good. Hence the economic model ignores the fundamental question of how product
and brand preferences are formed.
THE IRRATIONAL CONSUMER
After becoming aware that goods have "hidden meaning," scholars of consumer behavior in the
1950s took to the notion of the consumer as an irrational, impulsive decision maker. Consumers were
seen as passive, open, and vulnerable to external influences. This position was an obvious reaction to
the "economic man" and also represented a time when business schools were developing. Earlier,
faculty trained in economics were the first to be hired, but in the 1950s psychologists were added to
the payroll. Their insights from Freud to Maslow, from personality to motivation theory, seemed ever
so relevant to our study of the consumer.
The two major psychological theories underlying this era were the Pavlovian learning model and the
Freudian psychoanalytic model. The Pavlovian model is based on four central concepts-those of
drive, cue, response, and reinforcement. Drive or motives can be primary, such as hunger and sex, or
secondary, such as fear. A drive is very general and impels a particular response only in relation to a
particular configuration of cues. The Pavlovian model emphasizes the desirability of repetition in
advertising. Repetition fights the tendency for learned responses to weaken in the absence of practice
and provides reinforcement.
The model also provides guidelines for copy strategy. To be effective as a cue, an advertisement must
arouse strong drives in the person. For candy bars, it may be hunger; for safety belts, fear; for hair
tonics, sex; for automobiles, status.
In the Freudian psychoanalytic model, the guilt or shame man feels toward his sexual urges causes
him to repress them from his consciousness. Through rationalization and sublimation, these urges are
denied or become transmuted into socially approved expressions. These urges are never eliminated or
under perfect control and they emerge in dreams, in slips of the tongue, or in neurotic or obsessive
behavior.
Because of these urges, the consumer's motivations for behavior are not obvious or deeply
understood. As a result, Freudian psychology gave consumer behavior the tool of in-depth
interviewing to get at the motives and symbols behind a purchase. If a consumer is asked why lie
purchased an expensive foreign sports car, he may reply that he likes its maneuverability and its
looks. At a deeper level he may have purchased the car to impress others, or to feel young again. At a
still deeper level, lie may be purchasing the sports car to achieve substitute gratification for
unsatisfied sexual strivings.
Other Freudian consumer research findings included men wanting their cigars to be odoriferous to
prove they were masculine, and women being very serious when baking cakes because unconsciously
they were going through the symbolic act of birth. These theories were certainly more interesting
reading than the graphs and curves of economics.
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One major study of this era (Haire 1950) found that when a shopping list included instant coffee
rather than drip grind, the owner of the list was perceived to be a very different person. The owner of
the list with instant coffee was lazy, a poor planner, a spendthrift, and a bad wife. Meanwhile, the
owner of the list with drip coffee was perceived to be thrifty and a good wife. Fortunately a
replication of this study was done in 1970 and housewives were no longer judged by their coffee
(Wilkie 1986). However, Haire's study provided good insight to the fact that products have meaning
and significance that go far beyond the physical attributes of the products themselves. Furthermore,
these hidden values were thought to be a major influence on consumer decisions. To tap into the
consumers' hidden motives for purchase, more indirect methods of data gathering were necessary.
Toward the end of the 1950s an empirical article started to throw doubt on the heavy reliance on
psychological perspectives. A study by Evans (1959) sought to determine the personality
characteristics of Ford versus Chevrolet owners. In the 1950s these were the major automobile
manufacturers. Wider choice and Japanese imports did not exist. If the differences between the cars
were not major, the train of thought was that the personality of the owner must be significantly
different and motivate the consumer to buy one brand or the other. A carefully controlled survey of
personality characteristics of 1,600 owners of Fords and Chevrolets showed no major significant
differences in personality characteristics of the car owners. The importance of this line of behavioral
research to consumer products was questioned. By this time, in the early and mid-1960s, business
schools were producing their own scholars and faculty. Researchers were trained by business schools
rather than only economics and psychology departments. Researchers of consumer behavior gained
from this marriage of economics and psychology and began to develop their own theories of the
consumer.
THE PROBLEM SOLVER
In the 1960s John Kennedy became president of the United States and gave the consumer elevated
status. In his message to Congress on March 15, 1962, he put forth the Consumer Bill of Rights
(1963) as a social contract between business and society. Government was tile ultimate guarantor of
these rights, which included the right to safety, the right to be informed, the right to choose, and the
right to be heard (redress). The government took Kennedy seriously and began an activist role
The marketplace was becoming more diversified. The concept of market segmentation became even
more important. Goods that the consumer ted were now being produced, rather than just the goods
the manufacturer wanted to make. Choice prevailed for the consumer, and the consumer was
recognized by the highest official in the country. Consumers had the right to he informed and
protected.
The government poured millions of dollars into departments whose goal was to make sure the
consumer had access to information. The Federal Trade Commission flourished. Labels were put on
products listing all ingredients. Advertising was regulated and measured; if it was misleading, then
corrective advertising was necessary. Information was in great supply to the consumer. Ralph Nader,
with his book Unsafe At Any Speed, emerged as the hero of the 1970s, taking on corporate giants in
the name of the little man. Consumerism was everywhere.
As a result of this environment, consumer behavior researchers started to see the consumer as a
"cognitive man." The irrational psychotic purchaser of the 1950s and early 1960s was left behind.
The consumer was now a problem solver. He or she was receptive to products or services that
consciously met his or her needs. Consumers were thought to actively search for information about
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the products and services they bought. Consumer Reports was born. Consumers were seen as striving
to make the best decisions possible given their limitations.
However, consumer researchers told us that even though consumers are given information, they often
fail to use it to make decisions. In an initial experiment (Jacoby, Speller, and Kohn 1974) and a
follow-up (Scammon 1975), consumers were given objective product information concerning several
brands available in the marketplace. The results of the first study showed that consumers felt better
about their brand selections with more information, but actually made poorer choices. The study by
Scammon corrected for weaknesses in the original study but still found that recall of product
attributes decreased with increasing information. Consumers were still limited by the extent of their
knowledge about the marketplace and their capacity to store information about the marketplace in
short-term memory. Miller's (1956) rule of seven plus or minus two) pieces of information as
cognitive capacity held for the consumer.
The information in the marketplace was not organized for the ease of the consumer. Unit pricing was
fine, but comparing prices across brands and sizes for products was quite a challenge. Only when unit
prices were posted on one sheet in a simple linear manner by decreasing prices across all sizes and
brands did the consumers shift in their decision making toward lower-priced brands. You can imagine
the national brand manufacturer's enthusiasm toward presentation of this information at point of
purchase.
The overriding conclusion of consumer research in the 1970s was that people can only attend to
limited information at one point in time. The consumers' existing skills, habits, reflexes, values, and
goals shape the way they search and use information to make their decisions. The 1970s told us that
consumers' skills were limited, but at the same time the number of choices available to the consumer
kept increasing. More and more choices became available in the 1980s.
THE COGNITIVE MISER
Today's consumer uses decision-making skills originally developed in the 1970s, but the 1980s
consumer went farther than just recognizing man's cognitive limitations. Researchers have labelled
the low-involvement decision maker (or cognitive miser) as unable or unwilling to engage in
extensive decision-making activities in many cases and settle instead for "satisfactory" decisions
(Olshavsky and Granbois 1979). There is too much choice and not enough discretionary time to
engage in extended cognitive effort for purchases. Instead the consumer develops rules of thumb or
heuristics to simplify purchase behavior. An in-store study showed that consumers go through almost
no brand price comparison behavior (Hoyer 1984). Rules such as "buy the cheapest," "buy name
brands," or "buy what my friend bought" give the consumer a satisfactory choice in the marketplace
that supplants an optimal choice. This is a very adaptive and rational course for the consumer to have
taken in the 1980s, given the cluttered choice environment with little time for decision making and
virtually no support in information handling. The cost of thinking was recognized as a limiting factor
in processing choices.
The 1980s brought a focus on business and conservatism, and many came to feel that governmental
regulation was more of a hindrance than a help. This was expressed in the election of Ronald Reagan.
As quickly as Kennedy had made the consumer important, Reagan made him unimportant. With
strokes of a pen, the FTC experienced a sharp reduction in its budget and influence. Whole
departments set up by the government to service the consumer were abandoned. Consumer programs
developed for the 1970s folded.
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The 1980s were for business. This focus was a result of several factors. First, the "baby boomer
bulge" had a greater number of people for a smaller number of jobs. In the early 1970s a college
graduate decided what job to take, or perhaps a trip to Europe, then work. In the early 1980s the
concern was for getting any job at all. The economy was slow and competition was stiff. Business
looked to the MBA to turn companies around. The student was serious and conservative due to the
competitive environment. Business and engineering were in; the humanities were out. The
marketplace became more competitive, more diversified. Deregulation prevailed.
Too many goods cluttered too many store shelves for the consumer. For example, the average number
of products in supermarkets soared from 13,000 in 1981 to 21,000 in 1987. There are said to he 400
different brands of beer available to the American beer drinker. A new car purchaser might have 300
different types of cars and light trucks, domestic and imported, to choose from.
Along with the "over choice" and market diversity of the 1980s came decreased leisure time for the
consumer, not more leisure time as predicted in the 1940s. The number of free hours a person
possesses decreased from four to one since the 1970s. The reason for this is that the average time
spent at work has increased seven to eight hours a week since 1978 (Stern 1987). More than 50
percent of all women are working, so household duties are done after 6 p.m. or on weekends. Single
working mothers have virtually no free time and can't take care of all they want to do. This scenario
has led to a demand for convenience products and convenience shopping. Home catalogs, home TV
shopping, home computer shopping, and home shopping parties are part of this easier access to goods
that will prevail in the 1990s. The efficiency of in-home shopping, especially through direct
marketing, is exemplified by the fact that American Express sold 7 percent of all the luggage bought
in the U.S. by sending mailings to affluent cardholders whose charge records showed they spent
heavily on travel-related merchandise.
This the cognitive miser of the 1980s is a product of decreased time for shopping decisions and
increased choice in the marketplace. It is an adaptive strategy to suit the decision-making
environment.
THE COLLECTIVE BUYER OF THE 1990s
The focus on individual decision processes for personal purchase of products and services will be
replaced by a more collective decision-making style during the 1990s. This will be caused by the
changing cultural patterns of North America combined with the decrease in purchasing power of the
individual consumer. The culture of North America is changing due to: (1) the rapid increase in the
percent of elderly people who are neither healthy nor wealthy; (2) the aging of the baby boomers,
causing a shift in values and needs; and (3) increased immigration from Asian cultures with high
birth rates to offset the North American decline in population. All three categories of this cultural
shift will have to rely on joint decisions for purchase of goods and services, since goods and services
will be shifting to a collective consumption style rather than individual consumption in the North
American marketplace.
Individuals will combine households in an increasing rate to make life more affordable. The evidence
that this joint living may be a trend for the future is exemplified by the fact that 6.2 percent of all
employed people are working two jobs, mainly to meet living expenses. When the economy turns
down these extra jobs will not be available, and people will have to decrease their standard of living
to meet day-to-day expenses. More unmarried people will share apartments, more single-parent
families will couple up, and more children will live at home longer. Thus, more people will be
sharing consumer goods just due to living arrangements. Also, through the changing face of North
American consumers, the marketplace will continue to change and supply more and more services for
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these groups. The changing face of the consumer will alter the marketplace and the mode of decision
making.
Much has been written about the marketing opportunities for the senior segment. Right now
approximately 7.3 percent of the population is over 65. By the year 2000, this group will increase by
20 percent, making it the fastest-growing segment of our population. This is one reason why
marketers focus on the elderly. However, this group is not all that wealthy or all that healthy. It is
estimated that 80 percent of people over 65 have chronic health problems, and 16 percent have severe
physical problems. One in five Americans over the age of 85 resides in a nursing home.
The Baby Boomers
A full one-third of the population is bulging at middle age. In the year 2000 they will be 36 to 54
years old and at the middle of peak earnings. They are important to our view of consumer behavior
because they will head 44 percent of all households and still account for a majority of purchasing
power. Due to the conflicting structure of the population versus the corporate culture, there will be
less moving around among this group, and they will be more stable in their jobs. Hence, their values
and attitudes will change dramatically to reflect this stability. The collective decision-making style
will be based on their stable environment.
Questions
Discuss as to how the consumer behavior has evolved post 1950?
CASE - 3 (20 Marks)
Consumer behaviour: Men still major decision-makers
In India, men continue to dominate.
Even today, only 16 per cent of Indian professionals are women. Therefore, consumer decisionmaking
in all areas -- ranging from what cars to buy to what clothes manufacturers to patronize -- is
dictated by men when it comes to the most upscale market segment in India.
'Horizon 2003', a study by BBC World, BBC's 24-hour international news and information channel,
using the latest census as a base, gives some startling insights into the attitudes and activities of
India's leading consumers and decision makers.
The research, conducted by market research agency NFO-MBL across six top metros and profiling
380,000 people, will greatly help media planners, agencies and advertisers to understand this
particular horizon professional.
Life insurance was found to be the biggest financial investment for most Indians, followed by the
stock markets.
Washing machines were the most desirable consumer durable products, followed by cars and desktop
computers.
Forty-two per cent of the respondents owned a mobile phone, of which 52 per cent had a Nokia, and
42 per cent of these subscribed to AirTel cellular service.
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For example, more than half of the people surveyed (56 per cent) felt that it was all right to give or
take bribes to get their work done. A slightly smaller number (40 per cent) thought it perfectly
acceptable 'to make money through underhand means/deals.'
Who decides
Self Spouse Joint Family Elders Children
Buying a house 25% 5.8% 20.8% 30.1% 14% 0.4%
Child's marriage 7.7% 5.9% 21.8% 18.7% 11.5% 4%
Own marriage 20.4% 2.5% 6.2% 22.4% 29.7% 0.9%
Child's education 15.1% 6.6% 34% 12.5% 5.6% 4.6%
Taking a loan 31.4% 5% 24.3% 18.1% 9.2% 0.6%
Fixing monthly budget 24.2% 10.3% 33.3% 18.5% 11.2% 0.6%
Buying entertainment durables, like TVs 21.4% 8.2% 33.4% 26.7% 7.4% 1.6%
Buying durables like washing machines 19.3% 10.7% 33.3% 26.2% 8.2% 1%
Deciding on holiday destinations 20.6% 6.1% 28.4% 31.8% 4.5% 5.6%
"It is very difficult to survey this group by using traditional methods," says Jeremy Nye, BBC
World's head of research, in the study. "However, it is important to know the tastes of these
professionals who will be shaping India's destiny."
Adds Dezma De Melo, research manager, BBC World: "All the individuals in this class are rather
alike. They have similar opinions, attitudes and beliefs."
The study showed the emergence of certain definite trends in the area of just who decides what. For
example, the person in question seemed to play a major role in deciding the monthly budget or
whether to take a loan, but when it came to deciding whom he should marry, it was still the older
people in the family who played a key role.
Both, the husband and the wife jointly decided on issues like the marriage of progeny. In a majority
of cases, the whole family got together to decide what kind of house to buy where to go for a holiday.
Alcohol consumption habits indicated that 25 per cent drank alcohol, of which 72 per cent were beer
drinkers. Most executives drank at bars and pubs, while self-employed professionals drank at friends'
homes. Businessmen preferred parties to have a drink or two at.
The research has an entire section focusing on travellers as a separate target audience. This is the first
time that anyone has studied consumer behaviour in this area in such depth.
The study tries to understand the travelling habits -- such as the mode of transport, kind of holidays,
choice of place and media consumption while travelling -- which will be different from normal
household viewership.
The survey sets forth several interesting findings in this area. Sixty per cent people take a holiday in
India, while 5 per cent take a holiday abroad. Eighteen per cent travel on business within India, while
8 per cent travel on business abroad at least once in a year.
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As for international holidays taken in the last one year, people from Mumbai (30 per cent), Bangalore
(35 per cent) and Hyderabad (26 per cent) preferred travelling to the United States, while 35 per cent
from Kolkata and 41 per cent from Chennai travelled to Singapore.
A quarter of the respondents from Delhi went to Nepal for a holiday.
Among domestic business travellers, Jet Airways (60 per cent) is the preferred airline, followed by
India Airlines (53 per cent) and Sahara Airlines (20 per cent). For domestic leisure travel, Jet
Airways and Indian Airlines enjoy an equal share.
Among international leisure destinations, Singapore is the favourite with 23 per cent respondents,
followed by 22 per cent opting to visit the US. International business travellers prefer the US (24 per
cent) followed by Singapore (23 per cent) and the United Kingdom (13 per cent).
Interestingly, people in the six metros surveyed seemed to show entirely different tastes in watching
television. The average number of channels watched was five and an average of 100 minutes of
television is watched a day, with 30 minutes devoted to news.
News and Sports are the most preferred programme genres, followed by general entertainment.
However, 29 per cent of the respondents in Delhi preferred News channels, while only 14 per cent of
those surveyed in Bangalore preferred News. Bangaloreans prefer watching Sports with a high of 34
per cent.
"We look forward to Horizon 2003 being a tool for advertisers and planners to get a better
understanding of this upscale, influential audience. We have been able to offer better solutions on the
channel to advertisers based on the learning of this upmarket audience," Seema Mohapatra, head of
advertising sales for BBC World, says.
The survey also found that 95 per cent of the professionals were proud to be Indians, while 75 per
cent believed risks are worth taking.
Questions
Q1) With reference to case above ,define the terms below,and justify how they influence
consumer behaviour?
Cultural and Cross-Cultural Influences
Subculture and Social Class
Reference Groups and Family
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CASE-4 (20 Marks)
After its successful launch of local classifieds, Admanya, India’s leading consumer internet portal
today announced the launch of a free classifieds matrimony service for its users .Based on user
suggestions and requests, Admanya realized the needs of people in India who are extremely busy yet
believe in the traditional way of matchmaking. With its network across 500 cities in India, this new
functionality of Admanya will also help people from smaller cities in their search for life partners.
Ranjana, a 26 year old software professional from Bangalore says, "Admanya has always been
coming up with surprises. With our busy and hectic schedule this is indeed a welcome surprise for us,
seeking a simple platform for matrimonial alliances."
Mr. Jaydeep Bhattacharjee, the founder and CEO of Admanya says, "People in India have always
been rooted in tradition and religious beliefs. They believe in arranged marriages
rather then romanticized tying of partners. So, we are indeed honoured to extend this free service to
our members to make their search for a life partner fast and easy. With no elaborate profiles required
posting a matrimonial ad in Admanya will be simple and hassle-free."
Admanya is not only an online classifieds service that caters to the growing requirements of
communities all over the world but is also a place for product reviews, consumer feedbacks and an
emerging social community. You can find a job, recruit people, sell your car or buy one, rent your
house and do much more through Admanya classifieds.
Questions
Matrimonial classified has moved from newspaper to online service, how has the consumer behavior
changed, what are the factors which had influenced it?