CONSUMER DURABLES IN INDIA
Consumer durables are any type of goods that are purchased for consumption and that is manufactured for long-term use. They can be further classified as either white goods, such as refrigerators, washing machines and air conditioners or brown goods such as blenders, cooking ranges and microwaves or consumer electronics such as televisions and DVD players. Air conditioners particularly split AC have contributed more for the growth of white goods in India. The washing machine segment is divided into semi-automatic and fully automatic machines. There is a growth of 44.5% for fully automatic washing machines and 18% growth for semi automatic washing machines. Entries of MNCs have brought in sophisticated models with the help of up gradation in technology. The refrigerator segment is divided into direct cool and frost free machines.
…show more content…
The marketers need to have a careful watch on these factors-
1. Cultural factors are influenced by values, beliefs and consumers perceptions. The economic factors are influenced by family monthly income, disposable, discretionary and future expectations in income. Social factors influencing consumer behaviour are reference groups, peer groups, family, and roles and status. Motivation, perception, learning and attitudes are the factors influencing the consumers psychologically.
2. Consumer durables are involved in high price, durability and are less frequently purchased. So consumers want to seek more information with regard to consumer durables than non consumer durables.
3. Consumer durables are more volatile and consumers are brand consciousness. Consumers prefer well established brands with high value.
4. Organized consumer durable outlets in cities have large investment and all brands are available at one place. Special financial schemes are more preferred by
High-end and niche merchandise: With rising disposable incomes the demand for high-end goods in increasing, which can best be catered by specialty retail stores. Large players can offer competitive prices as they buy in bulk. Smaller players can differentiate themselves by offering niche products and superior customer delight at a premium price.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Because public luxuries are strong for product and brand, and brand is oriented by consumer and identity. Accordingly, brands are regarded as images in the identities of consumers and other identities of target groups (Esch, 2010), which are designed by companies to decide their products (Kotler et al., 2009). Luxury brands are highly associated with their core consumer (Kapferer, 2008). For example, Land Rover is one of the worlds company to produce four-wheel drives, is the famous British SUV brand. The prices of Land Rover mostly are depend on middle-class economic conditions and the appearance of the car and speed of it are based on the male identity, mostly giving a image of tough guy. Despite the fact that public luxuries are more relevant to identities ,which is contrary to the private necessities. For private necessities, such as Haier, is the worlds largest household appliances maker, the global brand share of Haiers refrigerators, washing machines are on the top of the world. Compared with the relationship between the identity and Haier, Haier is more focus on quality of its products. The 1980s, coincided with the beginning of reform in China, many enterprises to introduce foreign advanced technology and refrigerator equipments, likes Haier. At that time, home appliances supply less than demand, there had a lot of enterprises which only focused on production rather than on quality.
The authors identify that there are three main factors that effect how people act, think, and make decisions. The first is religion, in some countries faith plays an important role in all areas of life in the culture of the country and can influence many of their customs and behavior. The second factor is that of fact. In many countries their greatest desire is to find the best deal and the best product or services. The final factor is feeling, if a culture is based on feelings the people will conduct business accordingly. For example it would be essential to make a personal connection with this type of individual.
The type of product is another factor as consumers tend to require fewer choices for commodity good and more choices for luxurious goods.
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
Mooij, M.de. (2004). Consumer Behavior and Culture, Sage Publications, Page 102, Page 119, Page 274, Page 275
3. Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are focusing on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the growth engine for FMCG growth. Though the urban markets are growing too, the incremental addition in consumer’s households is much more in rural space as compared to urban markets. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term.
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
This research focuses on “the Effect of Product Variation to the Consumer’s buying Preference.” Specifically, it aims to the following specifics question. What are the effects of product variation to the consumer’s buying preference? How product variation does affect the consumer’s buying preference? What is the importance of product variation? This research aims to identify the effect of product variation to the consumers’ buying preference. Identify the differentiation of products...
in this segment are often brand conscious and enjoy the latest fads and trends. They...
They can also very well influence the buying behavior of consumers. Teenagers would be more interested in buying bright and loud colors as compared to a middle aged or elderly individual who would prefer decent and subtle designs. A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties, clubs and so on. A young single would hardly be interested in buying a house, property, insurance policies, gold etc. Someone who has a family, on the other hand, would be more interested in buying something which would benefit his family and make their future
It is important to understand that quality varies when product evolves through time. Consider this, when refrigerators were introduced newly it contests on the level of performance and when all competitors are close enough to a certain level customers expect all products to perform (maintain a necessary temperature to keep bacteria away).then competition goes to the reliability stage where they compete on reliability, Durability, Conformance and Perceived Quality once these aspects are meet or even close to judge the completion moves on to convenience stage Features, Serviceability and Aesthetics will be their success factors and product is considered to be a commodity that is contested on price.
Every consumer has a unique way of measuring benefits versus costs and will sometimes pay for higher quality items and other times buy the low costs items, depending on which has the highest value to them.
Even with commodities, there are quite a few parameters which brands can use to position themselves to capture a place in the consumer’s memory and consequently in their shopping basket. A few of the more widely accepted of them are: Consistency of Product Quality, Customization of the product to the extent possible, Providing a wider range of products, Identifying the most profit generating segments of the market and modifying or adding an offering to cater to their specific needs, Unique packaging, Emotional Branding and even basing branding on building a unique image to the extent of professing to have a brand personality. In fact focusing on getting consumers to build an emotional identification with the brand and its personality has a far longer lasting effect and builds far greater loyalty than focusing on just functional and utility attributes which a competitor would also able to easily match if not surpass.