consumer behaviour

1. CONSUMER BEHAVIOR
Consumer Behavior is a study of what consumers buy, where they buy, how they buy and how
much they buy. The term consumer behavior is defined as the behavior that consumers display in
searching for, purchasing using, evaluating and disposing of products and services that they
expect will satisfy their needs. A whole variety of factors, both internal and external influence
the whys of consumer behavior. The central question for marketers is:
HOW DO CONSUMERS RESPOND TO VARIOUS MARKETING EFFORTS THE
COMPANY MIGHT USE??
The buying behavior of final consumers is of interest to all marketers. Consumer Behavior is a
net result of interplaying of a number of factors: cultural, social, personal & psychological.
Consumers today are very different from those in the past - they have more information, higher
expectation, more choices and better products at lower prices available due to globalization,
deregulation of markets and quality movements. An emerging trend of mercurial consumption is
Before we embark on our journey to understand the dynamics of the Pakistani market, a typical
Pakistani consumer and the challenges faced by Pakistani marketers, let’s understand the Asian
Consumer.
The Asian Consumer:
According to Euromonitor, over 2017-2030, the top five countries with the biggest urban
population expansion, in absolute numbers, are expected to be China, India, Nigeria, Indonesia
and Pakistan. 4 out of these 5 countries are in Asia. This means Asia's emerging economies are
leading the world out of recession, and the region's consumers are taking the baton from their
overextended counterparts in developed countries. The unprecedented shift from rural to urban
living is an important trend impacting the global consumer landscape. In 2016, 54.6% of the
global population lived in urban areas, a proportion that is expected to increase to 60.5% by
2030. Asia was able to surpass United States as the lead engine of global growth—in the last five

2. to ten years. At the end of 2019, the GDP of Asia was under $26.99 trillion, more than the GDP
of the United States (21.43 trillion USD)1
Asia is in the middle of a historic transformation. If it continues to follow its recent trajectory, by
2050 its per capita income could rise sixfold in purchasing power parity (PPP) terms to reach
Europe’s levels today. It would make some 3 billion additional Asians affluent by current
standards. By nearly doubling its share of global gross domestic product (GDP) to 52 percent by
20502.
To be effective in Asia, consumer companies must think regionally but sell locally: they do
better by focusing on urban clusters than by conceiving of an entire country as one market. In
developed and emerging Asia alike, cities are by far the dominant nodes of mass consumption,
and their importance will surely grow. A great shift is also being continuously made from the
rural to the urban localities. After pouring into the cities, the migrants assume new social
identities. They are open to trying new food, fashion, forms of entertainment, and ways of living,
but they are nonetheless fickle customers, unfamiliar with established brands. As they prosper,
their choices become more diverse.
Long gone are the days when global companies could charge Asians a premium to buy products
designed for consumers in developed markets. It's not enough even to tweak existing product
lines for Asian sensibilities. Success now requires the ability not only to understand regional and
local tastes and preferences but also to design products and services in Asia. Many multinational
firms are strengthening their position in Asian economies, considering the demand potential and
urbanization.
The wants of the Asian consumers are as complex as any other developed economy. According
to a survey conducted by Nielsen during the second quarter of 2010, 47% of Vietnamese
consumers want to spend their discretionary income on “new technology.” Apple's latest iPhone
completely sold out when it was officially launched in Vietnam. According to some local
1 TradingEconomics,retrieved from https://data.worldbank.org/?locations=Z4-8S
2 Asia 2050:Realizingthe Asian Century: Executive Summary

3. observers, the popularity of Apple products is partly due to the fact that the logo is recognizable
from a distance, immediately setting its possessor apart as a member of the country's elite.3
Penetration rate for traditional and online media are lower in developing Asia than in developed
markets, so efforts to influence purchase decisions are more complex. Consumer companies must
be adept at shaping the consumers’ view of brands across a number of channels and through a
variety of media – not only TV, Radio, Print and the Internet, but also events, outdoor ads,
mobile messaging, in-store promotions, and educational campaigns. This shift to multichannel
retailing and sales management is creating a demand for new approaches to Marketing and Brand
Building.4
China
Driven by migration from the countryside, China’s urban population expanded by 36.8%
(equivalent to an additional 207 million people) over the 2006-2016 period. By 2030, two-thirds
of its population (981 million people) will be living in urban settings. China’s rapid urban growth
has resulted not only in a rising number of large cities, but also megacities with populations
above 10 million. Of the 31 megacities worldwide, six were in China as of 2016. On the other
hand, urbanization has helped to generate impressive economic growth, rising living standards,
and an expanding and consuming middle class. This has created substantial new markets for
businesses both in China and abroad. Ikea is tapping China’s rapid urbanization and the
associated apartment living trend to provide flat-pack furniture for the urban middle class.
Between 2011 and 2016, Ikea opened 12 new stores in China – its largest number of store
additions in a single country over this period. This helps to boost Ikea’s retail sales value in
China to over US$2.0 billion in 2016, a substantial increase from US$789 million in 20115.
India
3 Euromonitor Article: “Not settling for second best:Emerging market consumers going gaga for the latest gadgets”.
Published in 2010.
4 Guild, Todd. “Think Regionally, Act Locally: Four Steps to Reaching the Asian Consumer”. McKinsey
Quarterly,00475394,2009,Issue 4
5 Euromonitor, Top 5 Countries with the Biggest Rise in Urban Population,2017

4. Over 2017-2030, India’s urban population is set to expand by 186 million – the second biggest
absolute increase globally. Indian key cities will offer great opportunities thanks to middle class
expansion and robust economic growth. By 2030, India will be home to six megacities (up from
three in 2016). Unilever is the leader in India’s beauty and personal care market. It recorded
strong retail sales growth during 2011-2016 and held a market share of 25.2% in 2016 despite
growing competition.
Indonesia
Indonesia became a majority urban country in 2011 and by 2030, 63.0% of the Indonesian
population will be living in urban areas. Over the forecast period of 2017-2030, the country’s
urban population will expand by 28.1% adding an extra 40.8 million people to the urban
population. Due to greater disposable incomes, households in Jakarta enjoy much higher
discretionary spending power. In 2016, per household spending on categories other than food,
housing and transport was 48.7% higher in Jakarta in comparison with the average for the rest of
Indonesia. In 2017, Singapore-based ride-hailing app Grab announced investment of US$700
million to expand its operations in Jakarta, after its GrabCar and GrabBike services in Indonesia
both grew 600% year-on-year in 2016.
Pakistan
Like India, Pakistan will still be a predominantly rural nation by 2030, but it is nevertheless
urbanising rapidly. Over 2017-2030, its urban population will expand by 36 million (45.9%). In
2016, Pakistani urban consumers earned on average US$1,482, which was 33.6% lower than
their Indian counterparts and 77% lower than Chinese urban consumers. Pakistan has not gained
much interest from global businesses, partly because of its immense urban challenges and partly
because it is overshadowed by China and India. It is, however, high time that companies pay
more attention to Pakistan, because it is home to a burgeoning urban middle class that is starting
to earn more and spend more, particularly on fast-moving consumer goods.
Ready meals in Pakistan are benefiting from urbanisation and rising disposable incomes, as
people are leading busier lives and are also able to afford convenient ready meals. Although

5. Pakistan’s market for ready meals remains small, it registered a healthy real growth of 32% over
2011-2016. Quick Food Industries invested heavily in production and advertising. It also
operates a popular Facebook page in order to specifically target mid- to high-income urban
consumers.
Pakistan has significantly progressed in the use of digital media. Today, all brands from all
categories have taken the digital platform as their route to the end customer, be it pharmaceutical
products such as Panadol or fashion brands. The marketers are able to directly reach the end
consumers through various means such as paid ads, SMS marketing and WhatsApp marketing.
Paid ads include Google ads and Facebook ads both. Nishat Linen for example has been using
WhatsApp marketing quite rigorously. This enables them to reach the customer and attract them
at the same time in the comfort of their home. It also saves costs as the soft copy of their
catalogue is now circulated through WhatsApp rather than having to incur all the printing and
distribution costs of a catalogue. Not only this, but digital media also enables brands to retarget
their customers. Re-targeting is when you remind your customer about your brand and the
product that they viewed on your website. It is usually aimed at people who just browse and
leave without doing a transaction. It’s a way to remind them of the product that they liked but
haven’t purchased yet. Although brands often focus on creating awareness, the end goal in a
customer journey is conversion of customers4. Brands like Daraz.pk measure the success of their
campaigns through KPI’s like number of orders placed.

6. The Pakistani Population Dynamics:
Consumer Behavior is affected by many socio-cultural factors like social class, demographics,
personality and beliefs. Pakistan ranks 5th in the list of world’s most populated countries, with a
population growth rate of approx. 2.0%. Pakistan’s population is large and growing at an
exceptionally rapid pace. In 2019, total population was 217 million – an increase of 74.2 million
since 2000. Though rising, the median age is correspondingly low. In 2019, it stood at 22.5
years. The measure will reach 24.9 years by 2030 – still the lowest of all countries in the region.
In the long term, Pakistan should see some economic benefits from its rapid population growth.
The working-age population between 15 and 64 years is steadily increasing6.
Rural-Urban Split:
In 2019, the share of urban households in the country stood at 41.4%; however, it is expected to
surpass the number of rural households by 2036. The rapid expansion of cities has resulted from
natural population growth, domestic household migration, and reclassification of areas (from
rural to urban) that has the potential to stimulate economic development. In 2019, 44.9% of the
urban Pakistani population resided in slums, while poverty in urban areas was lower than that in
rural areas.
6 Euromonitor International, Households:Pakistan,2020

7. Metros which include Karachi, Lahore and Islamabad (KLI) are the largest cities and are easier
to target both in terms of advertising and distribution.
Age Groups7:
Year 0-14 years 15-64 years 65 years and older
2019 35.05% 60.62% 4.32%
7 www.statista.com

8. 2018 35.27% 60.42% 4.31%
2017 35.48% 60.21% 4.31%
2016 35.70% 59.99% 4.32%
2015 35.94% 59.75% 4.31%
2014 36.25% 59.44% 4.31%
2013 36.59% 59.11% 4.30%
2012 36.95% 58.77% 4.28%
2011 37.32% 58.42% 4.26%
2010 37.69% 58.07% 4.24%
2009 38.15% 57.63% 4.22%8
Socio-Economic Classes:
The class division in Pakistan is dynamically changing, with more numbers of the population
having access to education and thus better incomes, yet there still exists a majority of the
population that belongs to the aspiring class9
Population break-up by gender is as follows
Total Population in 2018/2030 millions
6 9 Durr-e-Nayab. (2011). “Estimating the Middle Class in Pakistan”. Pakistan Institute of Development
Economics, Working Papers.

10. Female and Male Population by Age 2018'000 people
Literacy level:
Pakistan Social and Living Standards Measurement (PSLM) conducted the survey during the
term 2018-19. The survey noted that the literacy rate in the urban areas was higher at 74% as
compared to the rural areas with a rate of 51%10.
10 https://www.thenews.com.pk/latest/671198-economic-survey-reveals-pakistans-literacy-rate-increased-to-
60#:~:text=ISLAMABAD%3A%20The%20Pakistan%20Economic%20Survey,58%25%20in%202015%2D16.

11. People aged 15 and over who can read and write are said to be literate. Literacy rate of Pakistan
is growing at a relatively slow pace.
Mentioning the province-wise break-up, the report noted that Punjab led all the other provinces,
with a 64% literacy rate followed by Sindh (excluding merged areas) with 57%, Khyber
Pakhtunkhwa (including merged areas) with 55% and Baluchistan with 40%.
Gross Enrollment Rates (GER) at the primary level excluding katchi (prep) for the age group 6-
10 years at the national level during 2018-19 remained at 87% when compared to 2015-16.
Province wise data suggests that Punjab showed improvement from 93% in 2015-16 to 95% in
2018-19, while Sindh remained stable with primary level GER at 78% (Economic Survey
reveals, The News, 2020).
Khyber Pakhtunkhwa (excluding merged areas) improved to 89% in 2018-2019 as compared to
88% in 2015-16, while Baluchistan witnessed a decline from 59% in 2015-16 to 57% in 2018-
19.

12. Meanwhile, the Net Enrollment Rates (NER) slightly improved at the national level from 65% in
2015-16 to 66% in 2018-19. Province wise comparison reveals that Punjab witnessed an
improvement in net enrollment, taking it to 73% in 2018-19 as compared to 71% in 2015-16.
Sindh showed an improvement of 58% in 2018-19 as compared to 56% in 2015-16. KP
(excluding merged areas) witnessed a decline from 67% in 2015-16 to 66% in 2018-19, while
Baluchistan remained stable with primary level NER at 40%, the survey added.
In summary, a large chunk of the population in Pakistan is youth, with a median age of 23.3 and
22.8 years for Male and Female (according to 2018 estimates) – a great opportunity for
marketers.
Median Age Male vs Female: 2018/2030 years11
Divided we Stand: Challenges faced by Marketers
Pakistan is a strong market with sizeable opportunities. (Consumer’s Behavior Toward
Marketing, By Faraz Siddiqui, May 22 – 28, 2000). Nationally Pakistan comprises of a very
diverse set of individuals hailing from different religious, social, cultural, lingual and regional
backgrounds. While nationally they represent one culture but at a micro level, they have their
own sub-cultures with very unique and distinctive characteristics. Following is a description of
the various ethnic groups and languages present in Pakistan
11 Euromonitor International, Income and Expenditure: Pakistan, 2019

13. It is interesting to note that Urdu – the official language of the country is spoken by a mere 8%
whereas English – the language of the Pakistani elite and most government ministries is spoken
by very few. It shares the 8% under the others category mentioned in the table above12.
These realities of Pakistan pose a great challenge for the marketers of mass brands. Audiences
stand fragmented, making mass appeal products and mass communications less viable.
Following are some of the dimensions along which the Pakistani population stands divided:
• Rural-Urban divide
12Uncommon tongue: Pakistan'sconfusingmove to Urdu By M Ilyas Khan,BBC,September 2015
Population by Language
2000-2030
Population by Ethnicity & Race
2000-2030

14. • Big Town - Small Town divide
• Rich – Poor divide
• Male – Female divide
Realities across these groups are contrasting, interesting and challenging to gauge and respond
to. (Process of Socio- Economic Change in Pakistan, By: Arif Hasan, October 2004, Paper for a
conference at John Hopkins University at the School of Advanced International Studies (SAIS),
Washington DC, USA.)
When brands used conventional sources of media such as billboards, TV, Radio and Newspaper
placements, the ability to target a specific segment of the market was limited. Not only due to its
visibility to the masses, but also due to high costs. These placements are expensive on their own;
the idea of purchasing multiple options is quite difficult. Digital media enables brands to
segment their market in terms of demographics and psychographics both. For instance, a fashion
brand like Al-Karam can easily distinguish and accordingly target its customers according to age
group. It is commonly known that university or a college going girl would want to buy prêt wear
while a housewife will buy an unstitched three-piece suit. Such information enables brands to
show their customers what they like.
Big Towns vs. Small Towns
Some of the big towns/cities of the country include Karachi, Lahore, Hyderabad, Multan,
Faisalabad and Rawalpindi. These cities not only show higher levels of literacy but also a rapidly
decreasing gap between male and female literacy. Educated women are visible in workplaces and
more recently in politics too. Satellite and cable television is common, and entertainment is
finding a new meaning. Fast food international chain outlets exist in all middle and lower
middle-income areas.
Grooming needs have increased among women from all socioeconomic backgrounds. Nuclear
families in the metropolitan cities are rising although extended family systems are still a norm.
As the female population is joining the workforce, families today have more time compressed
lifestyles. This gets translated into demand for solutions that deliver value alongside

15. convenience; hence, ready to cook meals, recipe masalas such as Shan and National Habib, home
cooked food delivery options. Online grocery purchases, car maintenance service, laundry pick
up and drops are common in the urban households. There is a rising demand for ready to wear
clothes. Not only are the international brands like Nike and Levi’s, in demand but a number of
local brands such as Limelight, Outfitters, GulAhmed, Khaadi, Bonanza, etc.; are emerging as
significant players in the ready to wear lines, in the marketplace.
As the number of individuals stepping out of home increases, there is also increased demand of
cars, leading to the government feeling the need to upgrade the infrastructure in terms of better
and wider roads to accommodate the influx.
Time compressed lifestyles means there are multiple claims on each individual’s time. Hence
shopping that was previously seen as a highly rated and much liked indulgence is also changing.
This however is truer for the higher income households where convenience of shopping is rated
high in deciding where to buy essentials from. All of this has given rise to increased commercial
activity in all major cities of the country. Posh localities are now housing a number of modern
format stores and malls that provide ultimate convenience of shopping. Middle to low-income
localities is however, still following the conventional forms of shopping areas where price is an
important factor while making purchase decisions. This is where consumers like to compare the
various options available before they make up their mind about any brand. Keeping these urban
developments in mind, a number of organizations are revisiting their business model.
In times of intense competition, marketers not only need to provide convenient solutions that fit
the customers’ needs and deliver higher value but also innovate each time they design solutions.
Imitating a successful business model has been the practice of a number of Pakistani
manufacturers; such practices only produce short term results and long-term losses. The effort
from the marketers’ side is to engage customers, to abandon artificial boundaries and offer
convenience-based solutions. Many brands from the FMCG sector are investing their funds and
time to develop direct to consumer channels. A recent example from our environment is that of
MUNCHIES.

16. While the consumers in big towns of Pakistan are at par with those in the developed nations,
those present in the small towns cannot be ignored. However, their reality is very different from
those in the top towns. Little investment in industry and human resource development is made
and most planning is unregulated. There is social fragmentation and religious extremism has
replaced traditional tolerance of diversity.
There is essentially a lack of city ownership. Women from small towns receive education and
pursue their professions as doctors, teachers, employees in government and the corporate sector,
but in the larger cities and not in their own towns. There is an increasing number of young
individuals migrating from the small to the big cities as a result the towns become politically
weak and socially backward.
Rich-poor divide in urban areas
Like anywhere in the world, there is physical divide between the rich and the poor. Poor live in
un-serviced high-density settlements increasingly on the outskirts of the city while the affluent
class lives in well-developed and serviced localities. The poor localities are sometimes deprived
of even clean drinking water and basic sanitation. Such areas lack all the basic amenities of life
and hence the inhabitants suffer from a number of health problems. The family size of such
households is large with more children. Very basic durables are owned such as 14-inch TV sets,
bicycles, sewing machines, etc. Consumption of basic packaged items, such as ghee, soap, and
tea are prevalent. Bicycle is a means of transport used by 3 out of 10 households. Public
transport is the means of commuting for members of the remaining households.
The two classes are also socially divided. Most of the major investments in recreation and
entertainment have been made through the private sector for the higher income groups and are
therefore unaffordable to lower income groups, cinemas being an exception. In the recent past,
the City District Government of Karachi has done substantial work to develop the city. As a
result, a number of parks have come up, the up-keep and maintenance of which is a challenge for
the government.

17. The chief earner in a poor family is barely educated (5-7 years of education) and most
housewives are illiterate. Those who are interested in getting their children educated heavily rely
on the Urdu medium government schools. The average time spent in school is approximately 7
years. In contrast, children from the affluent urban families not only go to private English
medium schools but also pursue their higher education in renowned universities of the world.
Such difference in exposure and knowledge directly gets translated into personal characteristics
which in turn get translated into consumption choices and practices. It is interesting to note that
education and social class has a role to play in an individuals’ loyalty towards a brand and a
store/retail outlet. Consumers with lower education are more loyal to stores whereas consumers
with higher education are more loyal to brands. (Brand Loyalty, Store Loyalty and Demographic
Variables: A relational Study, By Dr Zeenat Ismail, Business Review – Vol.3, No. 2, July-Dec
2008)
Despite the pre-existing divide in almost all markets across the globe, some segments try to rise.
Several indicators have shown that there has been a growth in the demand of consumer goods in
Pakistan. As observed by the political economist, S Akbar Zaidi, the Pakistani middle class has
grown rapidly in the last two decades primarily due to remittances sent by expats. The rise in
overall consumption levels of consumers has also been exhibited in the growth of electronic
goods such as refrigerators (up by 25%) and deep freezers (increase by 54.4%) which have
mainly contributed to the category improvement. Similarly, consumer financing has also shown a
significant increase of Rs. 37.6 billion. The growth was dominated by auto finance, but personal
loans did play a role as well13
13 https://tribune.com.pk/story/1398602/pakistans-middle-class-continues-grow-rapid-pace/

18. Consumer Credit in Pakistan increased to 783,114 PKR Million in December from 762600 PKR
Million in November of 2020 (State Bank of Pakistan)14.
Male - Female Divide
Pakistan is a fairly male dominated society whereby females’ play a limited role in decision
making. By the year 2040, 88.7% of household head in Pakistan will be male, whereas 6.8% of
14 TradingEconomics

19. the household head will be unemployed15. Most important decisions involving large sums of
money are made by the man of the house. Men being the principal bread earners rarely consult
women. This is truer for the orthodox Pakistani households; in the urban setting, however,
females are increasingly sharing the decision-making role with their male counterparts.
Irrespective of the rural-urban difference, most decisions concerning the household consumption
are made by the housewife. She is the primary caretaker of her family and therefore looks after
its health, likes and dislikes, working within her economic parameters.
Since women are mostly involved with the household chores, they have limited time available
for leisure activities. Men enjoy greater social freedom and therefore have more options available
to recreation. The cultural norms of the society do not approve of a female staying out of the
house with her friends late at night. However, family outings are a norm with females. However,
the trend is changing especially in the urban localities where women step out to dine with their
friends in restaurants, go for cinema shows, concerts, etc. Majority of the women in Pakistan are
still confined to their homes and spend a lot of their free time watching morning shows and
dramas on TV, listening to music, or talking on the phone.
Growth in a female’s disposable income is seen as an opportunity for marketers as they are the
key individuals who purchase household items. They are the prime decision makers for a wide
range of products including household, fashion and electronics. Consumer financing has also
shown a significant increase of Rs. 37.6 billion. The growth was dominated by auto finance, but
personal loans also played a role16.
15 Euromonitor International, Income and Expenditure: Pakistan, 2019
16 (Euromonitor, 2018)

20. Implication for the marketer
Pakistan is a heterogeneous market where consumers have different needs, wants and demand
patterns. There is variable consumer behavior, and one aspect of this variance is the difference in
public and private opinions and behavior. One of the reasons why a TV program Begum
Nawazish Ali became very popular was because it highlighted a number of issues that are
considered “inappropriate” for public discussions. Pakistan is a collectivist society where norms
are strictly upheld. Hence, a number of people maintain digital personalities that allow them to
be what they like with anonymity.
Not only do these trends need to be carefully monitored but also kept in mind while designing
and implementing marketing strategies vis-a-vis product positioning, communication strategy,
media strategy, brand activation strategy, etc. Since there are multiple regional languages it is
critical to decide which would be the best bet if one is marketing a mass brand. Certain
communication may have one meaning for one SEC and totally different for another; low price
of a premium brand may be perceived as a drop in quality by higher income groups whereas as
an incentive to try out by the lower income groups.
Extended family system is a norm with most households in Pakistan, allowing limited personal
space to individuals. Most activities are taken up in groups. As previously mentioned, societal
and family traditions are strictly upheld. Youngsters have limited freedom to question the family
traditions and if done so then their education is majorly questioned.
The Modern/Urban Pakistani Consumer
There are major advancements underway in the communication sector of Pakistan. According to
a 2020 estimate, there are 164.9 million mobile users. At the same time, there has been an
increase in the number of radio and TV channels serving the population along with an increased
awareness of social media. There are now 76.38 million internet users in Pakistan. The number
of internet users in Pakistan increased by 11 million (+17%) between 2019 and 2020. 37 million

21. of the internet users are active social media users. The number of social media users in Pakistan
increased by 2.4 million (+7.0%) between April 2019 and January 202017.
Social media penetration in Pakistan stood at 17% in January 2020. The number of mobile
connections in Pakistan increased by 9.6 million (+6.2%) between January 2019 and January
2020. The number of mobile connections in Pakistan in January 2020 was equivalent to 75% of
the total population18.
Reportedly, Pakistan has 77.7% penetration of mobile phones, whereas 46 million people are
actively using social media (increase of 24.3% as of 2020). Facebook is the most popular social
media website, which is used by 34.59 million users, while 36.1 million users are watching
YouTube.
Social Media marketing is a growing medium, and marketers spend a significant advertising
budget on digital mediums. The graph below shows the profile of advertising audience
17 https://datareportal.com/
18 https://datareportal.com

22. 173.2 million mobile connections exist in Pakistan, which is 77.7% of the total population.
96.1% of these mobile connections are prepaid, while 3.9% of the connections are post-paid.
This is the reason why Super Cards were a massive success in Pakistan. Mobile users spend
103.6 billion hours on mobile phones, every year, while spending over 60 million USD on
mobile Apps.
Pakistan is witnessing a rising trend in ecommerce and financial inclusion. 21.3% of the people
have an account in the financial institute, whereas 1 percent own a credit card. 8% of the people
make online purchases or pay online bill. Out of this, 3.3% are men, and 12.3% are women who
make online transactions. Billions of dollars on various ecommerce categories. Over 1.76 billion
USD is spent on travel, mobility and accommodation services19.
19 https://datareportal.com

23. Given all the changes occurring in the environment, a Pakistani consumer from the urban setting
may be described as young, educated, informed and tech savvy. He is quality conscious but with
fickle loyalties. This modern customer is concerned about the environment and therefore
demands greener products and better social responsibility from the corporates.
Upon comparison of Pakistan with other developed countries, low internet penetration is
observed. However, consumers in urban areas who enjoy internet access are the main drivers of
the growing e-commerce industry. This growing popularity has been exhibited through a
substantial increase of internet consumer goods sales, it reached, 3.9 billion US in 2021. An
average user spends 82 dollars per year on ecommerce. This has been primarily due to the
increasing provision of 3G/4G across the nation. Along with internet penetration, other benefits
including lower prices, easy cash-on delivery payments and wide availability of various hard-to-
find products contributes greatly to the e-commerce industry. Customers who are tech-savvy and
do not have time to go on shop really appreciate this mode of shopping20
20 http://www.portal.euromonitor.com/portal/analysis/tab

24. The rise in the number of cinema houses, clubs, restaurants etc. prove that the new Pakistani
consumer is looking for recreational activities and prefers quality of life. He is becoming
increasingly health and appearance conscious and hence we see a number of cooking oils
claiming that they deliver better/higher health value in comparison to competitors. Similarly,
gyms, diet food, beauty salons, designer wear, hair transplanting services, dermatologists, etc.
are increasingly becoming popular.
While all of the above is true, it is interesting to note that the behavior of consumers is an
evolving process. A typical 15-year-old would be more care-free, self-indulgent and
adventurous. When this same individual grows up, gets married and makes a parent himself, his
outlook completely changes. He is now more responsible, value-conscious and socially
accountable. He is also more risk averse. As an individual progresses from one phase of life to
the next, there is change observed in his personality and hence behavior; his likes and dislikes
change and his reasons for preferring A over B also changes. This change is of interest to the
marketers.

25. Factors affecting Purchase Intention in Pakistan
Some of the common factors influencing purchase decision of Pakistani consumers are as
follows:
1. Size of the retail outlet
Merchandising, self-service, point of purchase displays, placement of product on shelves,
discount offers, and product assortment are all variable across different types of outlets.
(Factors influencing customer’s impulse buying behavior in Pakistan by Syed Muntazir
Mehdi and Amir Feroz Shamsi, MAJU Karachi)
Those that follow the modern format provide a complete shopping experience whereby
the customer moves around, registers communication made at the POP, compares options
and makes a decision. As against this, over-the-counter stores have the retailer play a
major influencing role on the consumer’s purchase intention. He is likely to push a
product that gives him higher margins. It is important for marketers to recognize retail as
a major touch point, understand how customers make brand decisions and accordingly
market their products at the POP. According to a global estimate 40% of the customers
change their mind at the retail outlet. Supermarkets are being increasingly recognized as
an emerging medium where a brand must be reinforced/ reminded to the target
customers.
2. Country of origin image (COO)
A second factor affecting consumers’ perception toward a brand is its country of origin of
the product, which is typically operationalized or communicated through the phrase
“made in ________” is an extrinsic product cue – an intangible product attribute – that is
distinct from a physical product characteristic or intrinsic attribute. A country-of-origin
cue is similar to price, brand name, or warranty in that none of these directly bear on
product performance.

26. It may be argued that with globalization taking effect, COO has limited impact on
consumer behavior. While it may be true, realizing that Pakistan is still a developing
market, consumers base a number of their decisions on perceptions rather than reality.
That being a fact, one is likely to hear a Pakistani customer complain about the locally
assembled Honda Civic or Toyota Corolla while comparing with those found in Dubai.
Although strict quality measures are implemented, the perception is nonetheless deep-
rooted. Most people are likely to evoke differing impressions of men’s suit made in Italy
and Spain or of VCRs made in Japan and Malaysia. If the stereotype is negative, it can
impose formidable barriers for marketers attempting to enter a market or position
products in an existing market.
In the last 15 to 20 years of Pakistan’s history, there has been a sharp increase in the
number of locally produced product and services coming into the market, ranging from
electronic goods like TV and computers to durable products and services like automobile,
cosmetic goods and companies dealing in all form of services including financing, IT and
advertising. Although most of these goods and services are of commendable quality, both
technologically and in terms of appeal, consumer demand was very slow initially.
(Pakistan Review Magazine 2001). Today a number of Pakistani brands are very well
received, some of which are more popular with the lower SECs while others are equally
popular with all. Sohrab Motorcycles, Super Asia Washing Machines, Dawlance
Electrical Appliances, etc. have found a stable place in both the consumers’ minds and
hearts.
By closely studying the COO effect on Consumer Behavior, managers can benefit by
having a better understanding of when promoting a products country of origin is
beneficial and when it is not, as well as identifying the dimensions along which country
image should be improved (COO and Brand names’ effect on consumer behavior and
purchase intention in Pakistan by Dr. M. Shahbaz Shabbir, Shabana Kirmani, Dr. Javed
Iqbal, Dr. Bashir Khan, IIUI)

27. 3. Brand name
Another factor worth noting here is the corporate brand name. New brands coming from
established companies with proven track records are likely to be tried and adopted by the
target market far more quickly as against a new company launching a new product.
This information is essential for marketers to make informed decisions concerning
product positioning, re-positioning and differential advantage.
4. Situational factors
There is dissimilarity of consumer behavior both between and within individual markets.
This is a result of specific combinations of collective and personal parameters. Time,
money, mood state are all individual factors that affect purchase intentions of a typical
customer.
Imagine a customer who enters a shopping mall to buy X. while moving toward the
targeted retail to get what he is looking for; he is likely to register other outlets that are on
the way. If he is not pressed for time and is economically stable, chances are that he
might just stop in front of a shop and take a better look at what is displayed in the
window. If further tempted, he is likely to enter and investigate further. Likelihood of this
customer becoming a buyer is very high.
5. Brand Awareness
Brand awareness is one of the major factors for a well-known brand, product or service in
the market. Whenever a certain product is being launched into a marketplace the main
aim of it is making its customers well-aware of its unique features and to attract the
customers. Within a year of the launch of the product, it must be known to its target
population, (Kokemuller, 2012). Brand awareness is one of the major factors for a well-
known brand, product or service in the market. Whenever a certain product is being

28. launched into a marketplace the main aim of it is making its customers well-aware of its
unique features and to attract the customers. Within a year of the launch of the product, it
must be known to its target population (Factors Affecting Consumer’s Purchase Intention
Toward Japanese Car in Pakistan by Javeria Asghar, Yasir Iftikhar, Sarmad Ejaz and
Rabia Shahid).21
In order to make brand equity better from competitors, the company must focus on brand
awareness, brand association, perceived quality, and brand loyalty. The company must
focus on creative ways to advertise their product to capture its customer's mind and to
compete with its competitors. The company must pay heed to modern and innovative
ideas in advertising their product. The company should move towards new interesting
situations and ideas in advertising in order to make its brand awareness. Lowest agree
level in the brand association is safe to use.
6. Perceived Price and Quality
The change in market trends, of late, is marked by the growth of ‘brands’ for consumable
items. Now, people prefer ‘branded’ products even for household use instead of random
selection (Factors Influencing Consumers Purchase Intentions towards Private Brands by
Muhammad Bilal and Dr. Tahir Ali).
Walker (2006) suggests that private brands are normally cheaper than manufacturer
brands; therefore, they can be considered as a substitute to the manufacturer brands. Price
has been considered as a main reason for consumers’ inclination towards the private
brands, and generally price sensitive buyers are more likely to buy private brands.
However, consumers who prefer quality over price are less likely to purchase private
brands because usually price is used as an indicator of quality.
According to Hoch and Banerji (1993), and Ailawadi et al (2001), when it comes to
private brands, quality is given more importance than price. Private brands are generally
21 Musharraf, M. B., & Ali, T. (2013). Factors influencing consumers purchase intentions towards private
brands. Journal of Independent Studies and Research-Management, Social Sciences and
Economics, 11(2).

29. considered as low-quality products due to the fact that manufacturer brands have
international standard packaging whereas store brands do not meet that standard.
Besharat (2010) and Chen et al (2007) suggest that manufacturer brands are preferred,
when compared with private brands, due to the fact that they are famous, reputable and
well-advertised. Earlier studies established that perceived quality significantly affects
consumers’ purchase intentions (Chang, 2006; Ho, 2007; and Wu, 2006). Perceived value
is the most important factor in consumers’ purchase of private brands followed by
perceived quality, perceived price, and perceived risk. There is a significant relationship
between perceived quality and purchase intention of private brands22.
Changing Paradigms of Consumers
Consumer Behavior is never constant. It changes over time and these changes are clues to the
future. Consumers in Pakistan are also changing their responses because of globalization, and
technology advancement. If marketing has one goal, it is to reach consumers at the moments that
most influence their decisions. Marketing has always sought those moments, or touch points
(such as advertisements, news reports, conversations with family and friends, retail environment,
and product experiences), when consumers are open to influence.
For years, touch points have been understood through the metaphor of a “funnel”—consumers
start with a number of potential brands in mind (the wide end of the funnel), marketing is then
directed at them as they methodically reduce that number and move through the funnel, and at
the end they emerge with the one brand they chose to purchase.
22 Awan, H. M., Siddiqui, A. N., & Haider, Z. (2015). Factors affecting Halal purchase intention–evidence
from Pakistan’s Halal food sector. Management Research Review.

30. Awareness
Familiarity
Consideration
Purchase
Loyalty
But today funnel concept fails to capture all the touch points and key buying factors resulting
from the explosion of product choices and digital channels, coupled with the emergence of an
increasingly discerning, well-informed consumer. A more sophisticated approach is required to
help marketers navigate this environment, which is less linear and more complicated than the
funnel suggests. This new approach is called The Consumer Decision Journey and is more
circular in nature. It constitutes four primary phases representing potential battlegrounds where
marketers may win or lose: initial consideration; active evaluation, or the process of researching
potential purchases; closure, when consumers buy brands; and post-purchase, when consumers
experience them. Unlike the funnel approach, the number of brands under consideration during
the active-evaluation phase may now actually expand rather than narrow as consumers seek
information and shop a category. Brands may “interrupt” the decision-making process by
entering into consideration and even force the exit of rivals. This is easily done by brands
through digital marketing and SMS marketing. Since search patterns of customers looking for a
specific product are similar, competing brands for example Daraz.pk often target the same
customer. Similarly, even eateries like Bambou and Broadway send similar deals via SMS at
around the same hour of the day.

31. Two thirds of the touch points during the active-evaluation stage involve consumer-driven
marketing activities, such as internet reviews and word of mouth recommendations from family
and friends, as well as in store interactions and recollections from past experiences. Proliferation
of media and products requires marketers to find new and more engaging ways to get their
brands registered with the end consumers. Word of mouth plays a very important role in
influencing a consumer’s decision towards a brand; managing this word of mouth is becoming
increasingly important and challenging. With the increasing penetration of digital media, word of
mouth does not require direct interaction anymore. With Facebook groups such as Soul Sisters
Pakistan and Desi Wedding Diaries to name a few, a consumer just needs to search, and
sufficient quantity of reviews are easily accessible.
How companies market themselves and/or how they design their products has significantly
changed. One of the forces behind this change is the changing behavior of typical consumers.
Today, consumers across all demographics are better informed than ever before; not only about
the products they buy but about the company they buy from. Typical examples are the telecoms.
Someone with usage patterns in the lower quadrants of average revenue (less than Rs.
300/month) knows about on and off-peak times, special deals and ongoing competitions. This
means that a product has to be strong enough to make an impression on the mind of the
customer. This not only modifies customers’ pre- and post-purchase behavior, but it also
increases their expectations about the product and about the product information they receive. It
is a sign of highly developed competitive market.
The digital industry in Pakistan has increased this challenge by ten folds for the brands. In this
day and age, when your main consumer is in their twenties, online purchasing has significantly
increased. Today’s consumer is very well informed and has the option of comparing brands and
products in the comfort of their home. Clothing and fashion brands are a victim of this problem.
A girl who wants a dress for an event would compare offerings from all the brands in terms of
design, pricing, color, size and other factors that influence the purchase decision and make a
very well-informed purchase. However, the concept of online purchase also proves to be
advantageous. Previously, sufficient time was needed to go for a shopping trip. Now, the
purchase is easily made online with just a click causing an impulse purchase. But there are some

32. industries that are still not able to benefit from online shopping such as home electronics. Since
the product requires sufficient investment and is a high involvement product, customers usually
prefer going to the brick-and-mortar store and purchasing it.
Digital Transformation
As the world of marketing becomes increasingly personalized and dynamic, business leaders
know that digital technologies hold the potential to transform nearly every aspect of the function.
So, what will it take to succeed in 2020 and beyond?
1. Personalization
Personalization has enabled brands like Amazon and Netflix to become the giants they are today.
Amazon analyses customer behavior and promotes products based on past purchases or
browsing history. Netflix recommends series and films based on what a subscriber has
previously watched. To stand out in 2020, you need to personalize your marketing efforts
according to each consumer segment. The next step will be to differentiate unique consumer
profiles versus multiple users operating from a single online profile.
2. Artificial Intelligence (AI)
AI is taking over the world. It can analyze consumer behavior and search patterns and use data
from social media platforms and blog posts to help businesses understand how customers find
their products and services. Analysts predict, AI technologies will become virtually pervasive in
almost every new software product and service. It will influence businesses and their working
style, which in turn could have a significant impact on economies and the labor market. For
example, chatbots and virtual assistants such as Siri or Google Assistant are forms of AI. Many
businesses use chatbots on their websites to capitalize on all interactions.
3. Influencer marketing

33. Influencer marketing is key to reaching Millennials. It is a type of word-of-mouth marketing that
focuses on using influencers to drive a brand’s message to a larger market. They can be well-
known celebrities, but more often, they are Instagram or YouTube personalities with a huge
following. Through their social media channels, they can help spread the word about a business
or product directly, while simultaneously highlighting an organization’s corporate values –
something Millennials are interested in knowing before committing to a purchase. Influencer
marketing has become a powerful force in business and marketing. Kanwal Ahmed, who set up a
Facebook group in 2013 to provide women a safe space to discuss their issues, is a prime
example of the power of social media.
4. Community marketing
Community marketing is a way for brands to drive affinity by creating spaces for people to
discuss shared interests, answer common questions and build relationships. Social media groups,
meet-ups and online forums are looking for like-minded individuals they can trust. For example,
Apple have an official support community, made up entirely of their customers, who help each
other to do everything from troubleshooting to setting up new computers or components. For
marketers, building a robust community of advocates may be a difficult task, but the effort can
also help generate valuable insights about what customers think and how to improve products,
services and the business as a whole.
5. Video marketing
An across-the-board uptake in video messaging and marketing is perhaps one of the most
important trends today and likely to remain so in the foreseeable future. Videos have the highest
engagement rate of all types of content on social media. They break through the thousands of
static content clutter that go up online every day, delivering longer brand messages quickly and
in an engaging way. Testimonials, product reviews, Vlogs, interviews and animations are all
examples of effective video messaging and marketing. The best strategy is to start by
understanding your customers and what they want to hear and comparing it to what your

34. organization has been saying in the past. Video messaging enables companies to pick up the
right messages and communicate them effectively to their target audience.
6. Predictive analytics
Predictive analytics as defined by SaS, is the use of data, statistical algorithms and machine
learning techniques to identify the likelihood of future outcomes based on historical data. The
goal is to go beyond knowing what has happened to provide the best assessment of what may
happen. It integrates the correlation between metrics and better business results with advanced
strategies to bring more impact across the customer life cycle23.
Use of predictive analytics is gaining traction in most industries. It is useful for improving
segmentation, better lead scoring and creating personas that are more accurate. This results in a
higher level of customer loyalty and a declining churn rate (Leveraging digital transformation by
Sheikh Adil Hussain, Aurora, Jan- Feb 2020).
Shifting purchasing power patterns is another reason behind this change is consumer behavior
in Pakistan. Compared to ten years ago, more money is being spent on wants (rather than needs).
Take for example mobile phones and top-up cards. The convenience of the prepaid option has
increased the usage and shifted a great amount of the family’s income towards this expense
within the household budget. Secondly, the purchasing decision is no longer with a single
decision maker; all members of the family, especially kids have an opinion and their own
preferences. (Engaging with Change, By K. Yousuf)
In 2018, Children aged between 0 – 14 years make up approximately 35% of the Pakistani
population. While most of these children live in villages and towns, almost all have a window to
the world by virtue of their TV sets. They have a 20/20 vision coupled with an unparalleled
hindsight. An IQ level that beats most MBAs and a knowing of truth that seems to come as a
given with these new-age children. They may be impressionable but not gullible, therefore they
23 Leveraging digital transformation by Sheikh Adil Hussain, Aurora, Jan- Feb 2020

35. question. Whatever communication is designed for them must be current, honest and no-
nonsense. These are kids growing up in an age where the value of brand is an all-time-high24.
Hence, we see these children being recognized as significant influencers and targeted through
advertisements for various brands. Not only do brands that specifically target children as
consumers (such as Cheetos, Energy candy, Ding Dong Bubble, Prince Biscuits, etc.) have
messages designed for them – marketing to children; but also brands like Surf Excel, Lifebuoy
and Safeguard have clearly chosen children as the central theme in their message design.
Although the decision maker/consumer may be the mother/housewife/homemaker, the choice is
influenced by the children – hence marketing through children, for example Surf Excel and State
Life. Realizing that children are a great emotional hook for their parents, it makes sense to target
mothers/fathers through children. (The Pester Power by Marylou Andrew, Aurora, July-Aug
2008).
Safeguard’s campaign is an example of both marketing to and through the children. Commander
Safeguard today is established as an icon in the minds of the young customers - the story is
embedded in their little minds, the concluding jingle has become an anthem that they stand and
sing along to, and the difference between Safeguard and Lifebuoy is clear to them. (Ads, Brands
& Children; By: Oswaid Lucas, Aurora).
Understanding the reason behind this sudden rise in Pester Power unfolds a whole new
phenomenon that is a result of dual income families today in the urban localities of Pakistan.
More women are getting educated and entering the workforce. The size of a typical Pakistani
household is reported to be six; urban families have an average of 2-3 kids. With two earning
members and smaller family sizes, it’s obvious that the disposable income is rising. Parents give
in more to the demands of the children as a trade-off for spending less time with them.
Recognizing that these children today have access to PKR 10billion/year through direct means
such as allowances, gifts, daily spending, etc. and indirect means such as their parents’ wallet,
advertisers in Pakistan are spending approximately PKR 400 million/year on Cartoon Network,
Nickelodeon etc.
24 www.statista.com

36. Consumer Behavior During Covid-19
Covid-19 has changed most aspects of our lives and caused upheaval in every business
imaginable – and consumer spending, one of the most important driving forces for economic
growth, has been no exception. To find out more about how consumer patterns changed during
the lockdowns, which began to be implemented across Pakistan on March 23, Aurora conducted
the Aurora Covid-19 Consumer Behavior Survey. According to the Survey, 62.3% of
respondents confirmed that their overall spending had decreased; 19.4% were of the opinion that
the lockdown had not made much difference and 13.3% that their spending had increased.
Although consumers may have been spending less or very little on non-essential items, they used
this amount to stock up on other items instead. These include groceries such as packaged food,
fresh food, beverages (58.7%) – not surprising given that the lockdown led people to throng
supermarkets and stores. Groceries most stocked upon on include daily essentials such as bread,
flour, pulses, rice and sugar (53.4%), fruit and vegetables (44.7%), snacks (36.3%), meat/poultry
(33.4%), and frozen foods (21.7%). Other items that consumers have been spending more on
include personal protection products, such as sanitizers, gloves and masks (54.5%).
Noteworthy in this respect is the fact that 44.7% said they had never purchased or used personal
protection items before the Covid-19 outbreak. Other categories where consumers are spending
more on include household cleaning products (49.8%), personal care products (42.7%) and OTC
medicines (16.5%).
Surprisingly, while the rest of the world saw a spike in online shopping during the lockdown
(groceries mainly), in Pakistan 53.4% still purchased groceries from physical stores. Only 10.6%
used an online channel to buy an item for the first time although 18.7% said they are ordering
more online now; 16.8% said they regularly used e-commerce channels for their purchases even
before the lockdown. Nearly 12% said they were willing to try online shopping for the first time
but had not done it yet.

37. While the lockdown has seen a surge in internet banking globally, in Pakistan only 5.9%
downloaded banking apps or used online banking services for the first time during the lockdown;
22.5% said they are not using online banking channels while 4.7% said they would like to try in
the near future. Nearly 66% respondents who said they use online banking channels25.
When asked if brands have created advertising/communication messages relevant to Covid-19,
35.8% stated yes; when asked to name these brands, the ones mentioned most frequently
included soap and telecoms: Lifebuoy (12%), Dettol (4%), Safeguard (3%), Jazz (1%), Telenor
(1%) and Ufone (1%). “Brands have molded their ads and product line-up according to the onset
of Covid-19; telecoms have made recharging balances much easier (Covid-19 and the Pakistani
Consumer by Anusha Zahid, Aurora, July 2020).
25 Covid-19 and the Pakistani Consumer by Anusha Zahid, Aurora, July 2020.

38. A Legal Aspect
Marketers may be playing on this pester power to make a lot of money but is marketing to
children really ethical? Critics say that most of the advertisements are for food products and
children just don’t have the maturity to make healthy decisions and take responsibility for the
consequences. Not surprisingly, Pakistan had insufficient laws when it comes to marketing or
advertising to children. The only body that could pull the plug on unethical advertising was the
Pakistan Advertisers’ Society (PAS) and most advertisers admit that the body rarely exercised
the privilege. In such a scenario, most companies (and MNCs in particular) follow their own
guidelines. In Unilever’s case, this means ensuring that the advertising does not mislead about
the potential benefits of a product, that emotions are portrayed realistically, that no direct appeals
are made to children or to parents to buy the product, and no sense of urgency is created by using
words such as ‘now’ or ‘only’. Unfortunately, such stringent guidelines are rare, especially in the
case of national companies26.However, a progress was made on the situation and a Competition
Commission of Pakistan (CCP) was established on 2nd October 2007 under the Competition
Ordinance, 2007. Major aim of this Ordinance is to provide for a legal framework to create a
business environment based on healthy competition towards improving economic efficiency,
developing competitiveness and protecting consumers from anti-competitive practices.
Briefly, the law prohibits situations which tend to lessen competition such as actions constituting
an abuse of market dominance, competition restricting agreements and deceptive market
practices. Although essentially an enabling law, it briefly sets out procedures relating to review
of mergers and acquisitions, enquiries, imposition of penalties, grant of leniency and other
essential aspects of law enforcement.
Prior to Competition Ordinance, 2007, Pakistan had an anti-monopoly law namely ‘Monopolies
and Restrictive Trade Practices (Control and Prevention) Ordinance’ (MRTPO) 1970. The
Monopoly Control Authority (MCA) was the organization to administer this Law. In the fast
changing global and national economic environment, the MRTPO, 1970 was inadequate to
address competition issues effectively.
26 The Rise and Rise ofPesterPower, by Marylou Andrew,Aurora,July-Aug 2008.

39. Major parts of the Competition Ordinance are:
• Part I. Jurisdiction
• Part II. Definitions
• Part III. Prohibition of abuse of dominant position
• Part IV. Prohibition of certain agreements, exemptions and procedures
• Part V. Deceptive marketing practices
• Part VI. Approval of mergers
• Part VII. Penalty, Leniency and Appeals
For the first time Pakistani consumers and businesses are protected from deceptive marketing
practices as per Section 10 of the Competition Ordinance, as follows:
(1) No undertaking shall enter into deceptive marketing practices.
(2) The deceptive marketing practices shall be deemed to have been resorted to or continued if
an undertaking resort to__
(a) the distribution of false or misleading information that is capable of harming the
business interests of another undertaking.
(b) the distribution of false or misleading information to consumers, including the
distribution of information lacking a reasonable basis, related to the price, character,
method or place of production, properties, suitability for use, or quality of goods.
(c) false or misleading comparison of goods in the process of advertising; or
(d) fraudulent use of another’s trademark, firm name, or product labeling or packaging.
On February 2010: In a rare case encompassing violations of Section 3 (Abuse of Dominant
Position), Section 4 (Prohibited Agreements) and Section 10 (Deceptive Marketing Practices) of
the Competition Ordinance, 2009, the Competition Commission of Pakistan (CCP) has passed an
Order against Takaful Pakistan Limited (TPL), an Islamic Insurance provider, and the Travel

40. Agents Association of Pakistan (TAAP). A penalty of PKR twenty million has been imposed on
TPL for tying passengers’ travel insurance with the default insurance guarantee.
TPL and TAAP both have been penalized for fixing price of travel and medical insurance for
passengers and each shall pay a penalty of PKR ten million whereas for deceiving passengers,
TAAP shall collect from its members and pay a penalty of PKR ten million.
(http://www.cc.gov.pk/Ordinance.htm)
Very recently, however, the demand for developing and enforcing a junk food marketing code
was also articulated by The Network for Consumer Protection on the occasion of World
Consumer Rights Day, observed in March 2009 in Pakistan. (The Daily News)
Marketers have always perceived consumers as the buyers and focused on selling them their
products. However, there has been a global change in consumer attitude. Today, brands need to
ensure that they talk to people in their cultural context and not just treat them as people who have
money to buy your product. Now, they have a lot of options available which have them spoilt for
choice. Brands need to connect with customers on an emotional level; a customer should be able
to relate to the brand persona to be attracted to the product. A customer should feel valued rather
than just a way to earn27.
27 https://www.warc.com/content/article/arf-
kif/consumers_dont_exist_people_do_how_to_speak_to_people_within_their_cultural_context/106900