Topics: Marketing, Consumer behaviour, Consumer protection Pages: 10 (3432 words) Published: March 16, 2013
Arth Prabhand: A Journal of Economics and Management    Vol.1 Issue 8, November 2012, ISSN 2278‐0629  


*Lecturer, Biju Patnaik Institute of Information Technology & Management Studies, Bhubaneswar.

ABSRACT The way Indian consumers are spending their money on various items has changed in recent years. With the ever-increasing penetration of internet and social media, the purchasing behavior of Indian consumers has changed dramatically. Urbanization is taking place in India at a dramatic pace and is influencing the life style and buying behavior of the consumers. The present study is based on the perceptions, buying behavior and satisfaction of the consumers in Indian market. The Indian consumers are noted for the high degree of value orientation. India is a lucrative market even though the per capita income in India is low and it remains a huge market, even for costly products. Consumer behavior is complex and very often not considered rational. The recent trends which are found in the Indian market are celebrity influence, online shopping, freebies and popularity of eco-friendly products . KEYWORDS: Consumer behavior, Urbanization, perceptions, eco-friendly. ______________________________________________________________________________ INTRODUCTION With the ever-increasing penetration of internet and social media, the purchasing behavior of Indian consumers has changed dramatically. The Indian consumer market has higher disposable income the development of modern urban lifestyles and an increase in consumer awareness have affected buyer behavior in cities, towns and even rural areas. According to a 2007 report by McKinsey & Co., India is set to grow into the fifth largest consumer market in the world by 2025. In this scenario, creating consumer loyalty is now a whole new challenge. These demographic shifts have also created the need for leaders who can keep pace with change and identify with and predict future demand. 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, whether it is mobile phones, credit cards, apparel or organized retail, people clearly seem to be spending more, particularly on discretionary items. And the consumer seems to be everywhere, whether it is the large metros, the emerging new cities, the small towns and even rural India. What has emerged in this consumer story is the fact that there is much more homogeneity in the market than ever before; for the first time some patterns have begun to emerge in consumer behavior. The Indian consumer is also maturing fast and is upgrading within product segments at a pace that consumer companies are struggling to keep up with. The mobile phone category is a classic example, where individuals across segments are constantly moving to the next price level as

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Arth Prabhand: A Journal of Economics and Management    Vol.1 Issue 8, November 2012, ISSN 2278‐0629  


soon as they master the technology of their current phone. There is a growing realization today that it is easier to compete in the smaller towns because many of the big brands and their marketing managers and sales teams don’t make the effort to travel there. Another shift has been the changing dynamics of rural migration to urban centers. OBJECTIVES 1. To recognize the different consumer types & communicate accordingly 2. To know the factors that affect their buying behavior 3. Understand buying behavior & consumer decision making...
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