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Consumer is also known as the Ultimate Buyer of the product. In order to devise effective marketing strategies, marketers have to study and understand consumer buyer. The study of buyer or consumer behaviour involves the study of factors that influence consumer behaviour and also understand the purchase related activities of individuals.

Consumer behaviour is the behaviour that consumer exhibits before they purchase a product, during the purchase, while using the purchase and after the product has been used. The consumer market includes all individuals and households who buy goods and services in order to satisfy their personal needs.


1. Cultural Factors: Culture is the most fundamental determinant of a person wants and buying habits. Culture refers to the shared ideas, beliefs, values and ways of behaving among large groups of people living in a defined geographic area. 2. Social Factors: Social factors such as reference groups, family, an individuals social roles and status also influence the buying behaviour of an individual. 3. Economical Factors: Economic factors such as occupation, lifestyle and income of the individual also influence the consumer behaviour.

4. Personal Factors: Motivation, perception and beliefs and attitudes are some of the personal individual factors which influence a person buying behaviour.

How do marketers categorise indian consumers?

Ans: The Indian consumer market has never had it better. Higher disposable incomes, the evelopment of modern urban lifestyles and an increase in consumer awareness have affected buyer behaviour in cities, towns and even rural areas. Buying power has also expanded to new consumer segments be it the youth or the urban woman. The vast rural hinterland of India is beckoning and the sheer numbers make it impossible to ignore. In this scenario, creating consumer loyalty is now a whole new challenge. . A summary of the discussion follows:

The Indian consumer market landscape: The Indian consumer story is one that has caught the attention of the rest of the world. Rising incomes in the hands of a young population, a growing economy, expansion in the availability of products and services and easy availability of credit all of this has given rise to new

consumer segments and a rising acceptability of debt. While consumerism has seen a gradual build-up, what is certain today is that there has been a genuine uptake in consumption. Whether it is mobile phone, credit cards, apparel or organised retail, people clearly seem to be spending more, particularly on discretionary items. And the consumer seems to be everywhere, whether it be the large metros, the emerging new cities, the small towns and even rural India.

Emergence of the new consumer: Three major emerging segments were identified: Kids, the Youth (including the young working singles) and the Urban Indian Woman. These segments have shown a tremendous increase in influencing and driving purchase decisions and hence are huge drivers of change in the consumer market. More interestingly, purchases are being driven not by necessity, but to satisfy individual needs. A high-potential emerging market is also the vast rural market hinterland, which has its own unique characteristics.

Kids: getting older younger:

There are 300 million children aged between 414 years in India a vast market by any standards. The role that children play in purchase decisions has changed dramatically in the past 45 years. As Rajat Jain, Mobile2Win described: From pester power, kids have changed their role to becoming influencers.

Youth: charting their own path:

With the majority of its population below the age of 25 years, Indias young consumer market is the primary target of every consumer goods company. The trend towards homogeneity is also apparent here, as Shantonu Aditya, UTV explained. In terms of aspiration between SEC A, B, C, D, E there is no difference in the mindset of the younger demographic.

The urban Woman: defining her own space:

In India, it has been a long-accepted fact that it is the women in a family who define the environment at home. In the urban cities and even in small towns, they have been the silent influencers for some time now, directing family purchases and expenditures. It is only recently, however, that the urban woman has come into her own, and today there is no looking back from her newly gained independence. In the past five years, there has been a large increase in the product categories specifically targeted towards the urban woman. Be it mobile phones, computers, apparel, jewellery or even financial products, women in the cities are finding themselves spoilt for choice.

Paradoxical behavior : A paradox is a situation where observations are not in accordance with experiences or expectations.

Wine Business: The Indian Paradox and Exports to India

Indian population is 1.1 billion, second only to China. With a huge middle class of 250 million people, we could drink 250 million liters of wine at only 1 liter per person. We consumed only 7 million liters of wine including 1.5 mill liters of foreign wines last year. Less than a million people drink wine. This is Indian Paradox.

The customs duties on wine imports continue to be as high as 267%, whereas India is committed to cap it at 150%. So much so that EU has gone to the WTO and the case has been filed, where India is expected to lose. Yet, the hotels are allowed to import free of any import duties, under certain conditions. Perhaps, it happens only in India . This is the Indian Paradox. The government is aware that the hotels have kept the significant portion of the duty benefits themselves with the mark ups of 500-600% quite common for wines they sell. Yet due to strong lobby it continues to look in the other direction. This is the Indian Paradox.

There are thousands of Wine Shops in India selling only beer and liquor, shops that do not sell wine at all. Wine has been in the Indian psyche as liquor while it is being encouraged by the government in the similar emerging economy, China where the duties have been cut drastically for import of wine because of its halth benefits. This is the Indian Paradox.

Source: 1. Understanding logic of consumer india by Rama Bijapukar 2. Marketing Management, 13th edition, Philip Kotler, Book Information and Review 3. http://www.scribd.com/doc/28277064/Changes-in-Consumer-Behaviour-ofIndia#download