Academic journal article IUP Journal of Marketing Management

Influence of Consumer Demographics on Attitude towards Branded Products: An Exploratory Study on Consumer Durables in Rural Markets

Academic journal article IUP Journal of Marketing Management

Influence of Consumer Demographics on Attitude towards Branded Products: An Exploratory Study on Consumer Durables in Rural Markets

Article excerpt

India is emerging as an attractive market for consumer durables. But the vibrant environmental factors and fierce competition are making it imperative to understand the dynamics of consumer profiles. The aim of this study is to analyze the influence of consumer demographics in rural markets on brand management of consumer durables. A self-designed questionnaire containing 14 statements related to the brand/product features was administered face to face to 224 prospective buyers of consumer durables, randomly selected during the months of May and June 2011, while they were approaching retail outlets in Warangal district. The responses were analyzed through chi-square test and reliability analysis with the help of SPSS-19. The findings indicate that out of the five demographic factors tested, occupation and income emerged as the strongest determinants, followed by age and education, whereas gender did not yield a strong significance. Since this research has established empirical evidences in determining the attitude towards brands, consumer goods marketers may formulate their strategies accordingly.

Introduction

In current markets, the importance of establishing a dialogue between the brands and its customers has received increased response. Any firm tries to target marketing communication to specific households within the predefined segments. In this approach, apparent consumer demographic information is used to establish homogeneous segments. But typically, the conditions for successful brand building are not identical across categories. It depends on more than a few factors such as customers' predispositions toward brands, the firm's own management capabilities, and activities by competitors. Customers' inclination toward brands is particularly important. Comprehending more about a brand's customer-mix and how that mix changes in response to the environment is imperative for marketers.

India's being the second fastest growing economy with a huge consumer class has resulted in the high growth of consumer durables industry. With stimulating income levels, easy terms of finance, increasing consumer awareness and introduction of new products and models, the demand for consumer durables has been steadfast and is expected to be the same for the ensuing decades. According to a report by McKinsey (2007), the total consumption in India is likely to quadruple by 2025. India ranks first with 131 index points in the global consumer confidence survey (Nielsen, 2011). India has the youngest population in different income clusters. Around two-thirds of its population are below the age of 35, and nearly 50% are below 25. There are 56 million people in the middle class who are earning $4,400- $21,800 a year. Besides the steady growth, changing lifestyles and disposable income resulting in greater affordability have been causing a fundamental change in the Indian consumer behavior. A study by PricewaterhouseCoopers (PwC) and Federation of Indian Chambers of Commerce and Industr y (FICCI), for the National Manufacturing Competitiveness Council (NMCC), points out that with its favorable demographics and untapped market potential, India is emerging as an attractive market for consumer durables (NMCC, 2009). The quarterly report provides sectoral insights based on the financial performance of the Indian economy. The financial pulse study, published by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) Research Bureau during 2010 forecasted that the Indian rural markets would witness a 40% growth in the fiscal 2011-12 as against 30% during 2010-11. The study further revealed that around 35% of the total sales of consumer durables come from rural and semi-urban markets, which is expected to grow by 40% to 45% in the near future. The progressively growing market for consumer durables was estimated at 300 bn at present and will reach 500 bn by 2015. The urban consumer durables market is growing at an annual rate in the range of 9% to 12%. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.