cultural anaylsis

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Second, a greater understanding of India and China’s socio-cultural segments showcases the influences society has on consumer behavior. Mooij (2010) argues that cultural values affect consumer behavior. Effectively, market consumption is in part based on the cultural environment surround a consumer, thus marketing should adapt to their local customs. India’s consumers offer a family orientation that includes an extended family that value generic brands at affordable prices. Chinese consumers face a shrinking family that values luxury items and places preferential treatment towards brand names. Chinese consumers intend to flaunt their wealth to differentiate themselves from their neighbors. While India’s consumers traditionally favor savings, their economic prosperity has provided them with the ability to buy beyond their basic needs, some for the first time.
Furthermore, traditional Indian behavior falls intermediately between Hofstede’s individualist score, while Chinese consumers are highly group oriented (figure 10). Loyalty is the foundation of Chinese families and it carriers over to the Chinese market place. While, Indian families are loyal to each other, it plays a limited role in consumer behavior. Thus, social- cultural norms prevent most Chinese consumers to change their product loyalty. Marketers entering the Chinese market would face stark opposition from loyal customers who have a cultural need to affiliate with a particular brand. However, Indian consumers place limited value on branding. Again their underdevelopment has placed these consumers into a market where their limited exposer to the international market forces allows them to shift loyalty based on price. Thus, India is a leading market to enter constructed ...

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...chases on price rather than branding. Thus, product introduction within India would be easier because companies only have to compete economically via a supply chain. Furthermore, product loyalty is unlikely in India than China. Indian customers would rather gather convenience than impress their neighbors when compared to Chinese markets. Thus, the Indian consumer market gains positive traction for economic growth as consumers’ loyalty shift based on price.
Thus, an investment in Indian consumer demands should bring immense rewards and mitigate speculation risk. Their market is adaptive to new brands so long as they are priced effectively. The market share is growing beyond most expectations and their quality preference is not improving at the rate of China. Hence, the Indian consumer market should be the hot topic market in the international trading market place.
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