Factors affecting consumer behaviour bba mba.pptx

Compiled by Henna P. 1
UNIT - II

Unit II :
• Factors influencing Consumer Behaviour
• Internal Influences– Psychological and
Personal factors
• External Influences – Economical, Social and
Cultural Factors

FACTORS AFFECTING CONSUMER BEHAVIOR
Psychological
Factors
Motivation
Perception
Learning &
Experience
Attitudes
and Beliefs
Social
Factors
Family
Reference
Groups
Roles and
status
Cultural
Factors
Culture
Sub-
culture
Social
Class
Personal
Factors
Age
Income
Occupation
Lifestyle
Personality
Gender
Economic
Factors
Family
Income
Consumer
Credit
Personal
Income
Liquid
Assets
Savings

- Motivation
- Perception
- Learning and Experiences
- Attitudes and Beliefs
(A) PSYCHOLOGICAL FACTORS

(A) Psychological Factors
Internal factors influencing consumer behavior are the
personal and psychological factors that affect how
individuals make decisions when buying products or
services. These factors are inherent to the consumer and
can vary from person to person.
(i) MOTIVATION:
Motivation to do something often influences the buying
behaviour of the person. Individuals have different needs
such as social needs, basic needs, security needs, esteem
needs, and self-actualization needs. Out of all these, the
basic needs and security needs take a position above all
other needs, and these motivate a consumer to buy
products and services.

• Consumers buy personal care and
grooming products (e.g., cosmetics,
mouthwash, shaving cream), as well as
most clothes, in order to satisfy social
needs. Park Avenue offers 7 in 1 Grooming
Kit for men – A good combo pack of
grooming kit at a single place itself, it
covers almost everything you need for your
grooming needs It is ..
• Woodland advertisements targets
adventure lovers by featuring their durable,
comfortable footwear designed for various
terrains and weather conditions,
emphasizing exploration, outdoor living,
and a connection to nature.
(i) MOTIVATION :

Examples of how companies in India design and offer products or services
based on the motivation factor to target consumers:
• Fitness Wearables: Companies like Fitbit and Mi offer fitness wearables
and smartwatches that track users' physical activity, heart rate, and sleep
patterns. These devices cater to consumers motivated to lead healthier
lifestyles by providing data and insights to support their fitness goals.
• Health Insurance Policies: Insurance companies like ICICI Lombard and
HDFC Ergo offer specialized health insurance plans that cater to
consumers motivated to secure their family's well-being. These policies
provide coverage for medical expenses, surgeries, and critical illnesses,
aligning with the motivation to prioritize health and financial security.
• Digital Payment Apps: Companies like Paytm and PhonePe offer digital
payment and money transfer services, appealing to consumers
motivated by the convenience -to-use platforms for making payments,
including utility bills, online shopping, and peer-to-peer transfers.
(i) MOTIVATION :

• E-Learning Platforms: Edtech platforms such as Vedantu and Toppr
offer online tutoring and exam preparation courses. They cater to
students and parents motivated by academic success, providing
interactive and personalized learning experiences to help students
achieve their educational goals.
• Sustainable Fashion Brands: Companies like FabIndia and B-Label
design and market clothing and accessories made from sustainable
materials. They cater to consumers motivated by environmental
consciousness and ethical consumption, offering eco-friendly fashion
options that align with these values.
These examples illustrate how Indian companies strategically design and
offer products or services that align with consumers' motivation factors,
such as health, education, sustainability, and convenience. By
addressing these motivational needs, businesses can better connect with
their target audiences and meet their specific desires and goals.
(i) MOTIVATION :

(ii) PERCEPTION:
Our perception is shaped when we gather information
regarding a product and examine it to generate a relevant
image regarding a certain product. Whenever we see an
advertisement, review, feedback, or promotion regarding a
product, we form an image of that item. As a result, our
perception plays an integral role in shaping our purchasing
decisions.
• Luxury Car Brands: Luxury car manufacturers like
Mercedes-Benz and Audi emphasize their vehicles'
perception of sophistication, performance, and prestige.
These brands cater to consumers who associate luxury
cars with social status and affluence.

(ii) PERCEPTION:

The car ad reflects Porsche’s understanding of their customers’ needs.
People buy cars because they need personal transportation, but the types of
cars they purchase reflect their psychological and sociological characteristics
and lifestyles, including financial resources. The tagline in the Porsche
Boxster ad states that, “unfulfilled dreams cost a lot more,” and urges buyers
to “fulfill their dreams rather than deny them.” Recognizing that many
daydream about buying the top-of-the-line and exceptionally engineered
Porsche but might feel conflicted because of its high price, the ad states that,
“It is expensive to fulfil one’s dreams, but it is worth the expense.” The ad also
reinforces the decisions of consumers who had purchased the car: “Of all the
emotions you can expect while driving a Boxster, regret will never be one of
them,” and ends with Porsche’s classic tagline: “Porsche. There is no
substitute.” While Porsche appeals to fulfilling a dream, an advertising
campaign for the Scion’s sporty car – which also appeals to young adults –
features such slogans as Stand with Us by Standing Out, Make an
Impression by Breaking the Mold, and Be an Icon Not an Imitation.
(ii) PERCEPTION:

(ii) PERCEPTION:

An image shows an update of the
package of Heinz Tomato Ketchup.
Because today’s consumers want
healthier foods, Heinz substituted
the little green pickle, which has
appeared on the ketchup label for
decades, with a tomato on a vine. It
also enlarged the word tomato,
while leaving the size of the word
ketchup unchanged. In addition,
Heinz redesigned the small
packets of ketchup commonly
available at fast-food outlets. The
company modernized its packages
without diluting its identity and
consumers instantly recognized the
bottle in spite of the label update.
(ii) PERCEPTION:

(ii) PERCEPTION:

• Herbal and Ayurvedic Cosmetics: Companies like Himalaya Herbals
and Patanjali leverage the perception of Ayurveda's natural and herbal
properties. They offer skincare and cosmetic products that are
perceived as being gentle on the skin and free from harmful
chemicals, appealing to consumers who prioritize natural ingredients.
• Premium Smartphone Brands: Smartphone manufacturers like Apple
and Samsung design high-end devices with sleek aesthetics and
advanced features. These products are perceived as status symbols
and indicators of technological sophistication, targeting consumers
who value premium experiences.
• Fine Dining Restaurants: Luxury restaurants such as Bukhara and
Indian Accent in India focus on creating a perception of exclusivity and
culinary excellence. They offer gourmet dining experiences with
impeccable service, targeting consumers looking for special occasions
and memorable meals.
(ii) PERCEPTION:

• Online Marketplaces: E-commerce platforms like Myntra
and Ajio offer curated collections of fashion and lifestyle
products. They create a perception of trendiness -
forwardness, appealing to consumers who want to stay up-
to-date with the latest styles and trends.
These examples demonstrate how companies in India
strategically design and market their products and services to
align with consumers' perceptions. By shaping the way their
offerings are perceived, businesses can influence consumer
behaviour and attract customers who value the qualities and
characteristics associated with their products or services.
(ii) PERCEPTION:

(iii) LEARNING AND EXPERIENCE:
When a person buys a product, the general tendency is to learn
something more about the product. Learning also comes over a
period through experience. This learning depends on skills and
knowledge.
For example, after visiting stores, consumers know which
stores carry the type of clothing they prefer at prices they can
afford to pay. When they find a store that carries clothing that
meets their needs, they are likely to patronize it to the exclusion
of other stores. Every time they purchase a shirt or a sweater
there that they really like, their store loyalty is rewarded
(reinforced), and they are likely to become repeat customers.

(A) Psychological
Factors
(iii) LEARNING AND
EXPERIENCE:
Avocados from Mexico, a brand made up
of the Mexican Hass Avocado Importers
Association (MHAIA) and The Association
of Growers and Packers of Avocados from
Mexico (APEAM), works to show people
that avocados are healthy, fresh,
nutritious, and have good fats without
cholesterol. They use fun and repeated
ads, including Super Bowl commercials, to
make the brand well-known and trusted.
By sharing this message in many ways,
they stand out from other brands. When
people enjoy the product, they are more
likely to buy it again. This helps shoppers
remember the health benefits of avocados
and choose them regularly, building long-
term loyalty.

Barbara’s dentist advised her to
use toothpaste for gingivitis.
Earlier, she bought any brand on
sale, but now she needed a
special one. After seeing a Crest
Pro-Health ad, she chose it
despite its higher price. Her gums
improved, and praise from her
dentist reinforced her choice. This
shows cognitive learning –
identifying a problem, finding
information, trying a solution, and
continuing after positive results.
(A) Psychological
Factors
(iii) LEARNING AND
EXPERIENCE:

(iv) ATTITUDES & BELIEFS :
Consumers’ attitudes and beliefs also influence the buying
decision. Based on this attitude, the consumer behaves in a
particular way towards a product. This attitude plays a
significant role in defining the brand image of a product.
Hence, marketers try hard to understand the attitude of a
consumer to design their marketing campaigns. Examples of
how companies in India design and offer products or services
based on the attitudes of consumers to target their audience:

• Levi’s offerings will be made from waterless techniques : Levi’s is a well-known
jeans brand in India. Indian marketers need to change not only with regard to
consumer lifestyle changes but also due to other demands made by societal
concerns. Levi’s loyalists are taking the “Wash Less” pledge in an effort to
preserve water resources. The stigma associated with the garment is that it
uses 3,800 litres of water during its life cycle in its value chain – right from
procurement of raw materials to the usage by consumers after they had bought
the garment. Their designers challenged themselves to get the same looks we
all love, but using less water in the finishing stage. That’s why Levi’s®
developed more than 20 innovative techniques that do just that: use less of our
world’s precious natural resource. They pledged that by 2020, 80 percent of
Levi’s offerings will be made from waterless techniques. However, by 2019,
69% of Levi's® bottoms were made Water<Less.
• Eco-Friendly Home Cleaning Products: Companies like "Clean India Ventures"
offer eco-friendly and sustainable cleaning products. They cater to consumers
with a positive attitude towards environmental sustainability, providing products
that align with their values.

Oreo is a world class cookie that was launched in India in
2011 by the makers of Cadbury chocolates (Mondelez
International). Oreo is a cream cookie with vanilla flavoured
cream in between slightly bitter-tasting cookies. Oreo had a
mass premium positioning and was introduced in sachets
too. The brand had its associations with Café Coffee Day
and McDonald’s in their indulgent offerings (i.e., the concept
of perception). The brand’s advertising catch phrase –
“Twist, lick, and dunk” – indicated a ritualistic aspect that
appealed to the consumers (i.e., the concept of rituals). The
cue of indulgence (cues are associated with learning
theories) was so effective that a paan shop in Hyderabad
created its Oreo based paan. College students had Oreo in
the form of cakes, shakes, and pastries that signaled
indulgence with respect to taste gratification. Thus, Oreo had
created a strong attitude among consumers here; and India
was, and still remains, one of its important markets.

Campaign Message: “Don’t Call, Just Install.”
In 2015, Foodpanda, present in 200 Indian cities with 12,000 restaurants, ran a
campaign to promote app-based food ordering over phone orders. The aim was
to highlight offline ordering problems and show how apps offer a smoother
experience. With smartphones making up 20% of phones but 100 million monthly
downloads, Foodpanda sought to build consumer habits and improve brand
experience through convenient, reliable mobile ordering.
Foodpanda launched a clever TV campaign in 2015—#DontCallJustInstall—
highlighting frustrations of phone orders like misheard messages and delayed
deliveries, encouraging users to embrace the smoother, all-app experience.
•The campaign, conceptualized by Percept India and produced by Housefull
Movies, featured fun TV commercials illustrating typical hassles of phone
ordering—such as miscommunications and limited choices—and contrasted
them with the quick, user-friendly app experience. It ran for six weeks and
extended across various channels like radio, mall activations, and corporate
programs to reinforce the message. As smartphones boosted online orders—
with app orders becoming larger and more frequent—the brand built trust,
heightened awareness, and improved its customer experience across India.

(A) PSYCHOLOGICAL FACTORS
• Vegan Food Brands: Brands like "Goodmylk" offer plant-based and vegan food
products, targeting consumers who have a positive attitude towards cruelty-free
and ethical food choices.
• Corporate Social Responsibility (CSR) Initiatives: Companies like Tata Group
and Infosys emphasize their CSR initiatives, aligning with consumers who have
a positive attitude towards socially responsible businesses. These initiatives
include community development, education, and healthcare programs.
• Health and Wellness Resorts: Resorts like "Ananda in the Himalayas" offer
wellness retreats and spa services, targeting consumers with a positive attitude
towards holistic health and relaxation.
• Fair Trade Brands: Brands like "Fabindia" and "Tribes India" support fair trade
practices and sell products made by artisans and marginalized communities.
They target consumers who value social justice and ethical trading.
• Animal-Friendly Brands: Brands like "Biotique" and "The Body Shop" offer
cruelty-free and vegan skincare and cosmetics. They cater to consumers who
prioritize animal welfare and ethical beauty practices.

• Age
• Income
• Occupation
• Lifestyle
• Personality
• Gender
(B) PERSONAL FACTORS

(i) AGE AND LIFE STAGE:
Age and life stage also have a significant impact. In India,
young adults may prioritize gadgets and fashion items, while
older individuals may focus more on retirement savings or
investments. The buying choices of individuals depend on
which age group they belong to. Elderly people will have
totally different buying behaviours as compared teenagers.
Examples of how companies in India design and offer
products or services based on the internal factor of "Age and
Life Stage" to target their consumers:

AGE AND LIFE STAGE:
• Age also influences our buying priorities. For example, as
a young student, would you say that your opinions
regarding what is a “luxury” product are the same as
those of your parents or grandparents? The most likely
answer is, “No.” Your parents, and especially
grandparents, would probably criticize your purchases of
upscale sneakers, designer shirts and handbags, jeans
from Abercrombie & Fitch, and many other things you buy
as far too expensive.
• Colgate offers My First Fluoride-Free Toothpaste for the
littlest children, without any artificial colors, preservatives,
or Fluoride. Colgate Troll Mild Bubble Fruit Toothpaste is
designed for kids age 2 and older (and also available as
gel). Additional offerings for older kids include Colgate 2-
in-1 Toothpaste (in Watermelon Burst and Strawberry
Smash flavors), and cavity protection toothpaste.

• Baby Care Brands: Companies like "Johnson & Johnson" and
"Himalaya Baby Care" offer a range of baby products, including
diapers, baby shampoos, and skincare items. They target
parents in the early stages of parenthood, addressing the unique
needs of infants and toddlers.
• Online Learning Platforms: Edtech platforms like "BYJU'S" and
"Unacademy" offer K-12 educational content and test preparation
courses. They cater to students in various age groups, from
young children preparing for exams to college students seeking
advanced education.
• Retirement and Pension Plans: Financial institutions such as
"HDFC Life" and "ICICI Prudential" design retirement and
pension plans. They target individuals in the later stages of their
careers who are planning for a secure financial future after
retirement.
• Smartphone Brands: Smartphone manufacturers like "OnePlus"
and "Realme" offer budget-friendly models with advanced
features. They target young adults and college students who may
have limited budgets but still desire smartphones with impressive
specifications.
AGE AND LIFE STAGE:

AGE AND LIFE STAGE:

(ii) Income :
When a person has a higher disposable income, the purchasing
power increases simultaneously. Disposable income refers to
the money that is left after spending towards the basic needs of
a person. When there is an increase in disposable income, it
leads to higher expenditure on various items. But when the
disposable income reduces, parallelly the spending on multiple
items also reduced.

(ii) Income :
–Hospitality chains like "The Oberoi" and
"Taj Hotels" offer luxurious accommodations,
fine dining, and impeccable service. They
cater to guests seeking a lavish and upscale
experience, often including business
travelers and tourists with higher social
status.
–There are a number of offerings of premium
brands in the snack category (Cadbury’s Silk
chocolate, Sunfeast Dark Fantasy and
Parle’s Milano cookies, and Magnum ice
cream to name a few) in India. In terms of
affluence, the top five percent of the
consumer provides a good segment for
offerings that are tasty indulgences.

(iii) Occupation :
• Occupation of a consumer influences the buying
behaviour. A person tends to buy things that are
appropriate to this/her profession. For example, a senior
corporate professional would tend to buy formal clothing
whereas a creative designer would tend to spend on
casual wear.

(iii) Occupation :
Athletes and Sports Professionals:
• Brands like Nike, Adidas, and Under Armour are synonymous with sports and fitness,
often sponsoring athletes and teams to build brand recognition within this demographic.
Beauty and Cosmetics Professionals:
• L'Oréal, Sephora, and MAC Cosmetics are prominent in the beauty industry, offering
products and training opportunities for makeup artists, hairstylists, and estheticians.
Finance Professionals:
• Companies like Goldman Sachs, JPMorgan Chase, and other financial institutions
target individuals working in finance, banking, and investment management.
Creative Professionals:
• Brands like Adobe, Wacom, and various design agencies cater to graphic designers,
illustrators, and other creative professionals.
Hospitality and Tourism Professionals:
• Marriott, Hilton, and other hotel chains target individuals working in the hospitality
industry, including hotel managers, event planners, and travel agents.
Construction and Engineering Professionals:
• Brands like Caterpillar, John Deere, and various construction companies target
professionals in the construction and engineering fields.

(iii) Occupation :

(iii) Occupation :
Campbell's Chunky soups can be a
convenient and relatively quick meal
option for busy working women, offering a
variety of flavors and hearty ingredients.
Campbell’s Chunky soup emphasizes
saving time and tells consumers that they
can prepare the soup quickly and also
receive value for their appeals to
consumers’ desire to save time. The ad
for the company’s Healthy Request
focuses on health and fitness another
priority in many peoples’ lives.

(iv) Lifestyle :
Lifestyle is an attitude, and a way in which an individual
stay in the society. The buying behaviour is highly
influenced by the lifestyle of a consumer. Someone who
leads a healthy lifestyle would spend more or healthy food
alternatives, or at the other end there could be someone
with a mediocre income but invests in appearances,
fashion and luxury items.

(iv) Lifestyle :

(v) Personality :
Personality represents inner psychological characteristics that both
determine and reflect how we think and act, which together form an
individual’s distinctive character. Consumers often purchase products
and brands that marketers have differentiated from others by giving them
“personalities”.
• Adventure Sports and Equipment: Companies like "Decathlon" and
"Wildcraft" offer adventure sports gear and equipment, targeting
consumers with adventurous personalities who enjoy activities like
trekking, camping, and water sports.
• Travel agencies like "Thrillophilia" specialize in adventure and
experiential travel. They cater to consumers with adventurous
personalities who seek thrill-seeking experiences like bungee jumping,
paragliding, and trekking.

(v) Personality :
Brand personification is assigning a brand human attributes and
creating sentiments for it among consumers. of Brand
Personification, a form of anthropomorphism, means attributing
human characteristics to something that is not human. For
example, Mr. Clean—one of America’s most beloved and
instantly recognized “persons.” The brand and mascot are
owned by Procter & Gamble and used for positioning and
marketing cleaning items. The mascot, introduced in the 1950s,
quickly became a best seller, and “his” product line now
includes bathroom cleaners, a magic eraser, cleaning liquids
and sprays, and items for heavy and outdoor cleaning. Procter
& Gamble continues to add items to the brand and consumers
buy them because they personify Mr. Clean: he is strong,
tenacious, competent, dependable, and friendly. In his recent
incarnation shown during a Super Bowl, he appeared strong
and somewhat sexier than when he was first introduced.

(vi) GENDER :
Gender significantly influences consumer behavior,
impacting everything from product preferences and
shopping habits to the way consumers evaluate
information and make purchasing decisions.
Understanding these differences is crucial for marketers to
develop effective strategies tailored to both men and
women.
• Frito-Lay overhauled all of its calorie-conscious snacks,
making them more appealing to women, and introduced
100-calorie packages of snacks.

(vi) Gender :
More and more men have been using men have been buying
exfoliators, toners, aftershave creams, and moisturizers. Recognizing
that many men feel embarrassed to be seen looking for cosmetics,
many department stores have redesigned the areas where men’s
grooming products are sold. Dove, a well-established brand of face and
body care products, introduced a product line named Dove Men+Care
and their ads try to convince men that their faces should be pampered.
The ads urge men to “end the face torture,” and depict men’s faces can
be exposed to harsh elements such as sun, wind, and snow.

(vi) Gender :
Several travel agencies offer specialized tour packages designed for
women, focusing on safety, comfort, and empowerment. These tours
cater to various preferences, including adventure, cultural exploration,
wellness retreats, and city escapes.
Several online travel agencies specialize in women-only tours, such as
Wander Womaniya, Jugni Travel, and LetsGoForACamp.com

(C) SOCIAL FACTORS

(C) SOCIAL FACTORS
Humans are social beings, and the society or the people they live around
influence their buying behaviour. Human beings try to imitate other
humans and nurture a desire to be socially accepted. Hence, their buying
behaviour is influenced by other people around them. Some of the social
factors are as follows :
i. Family : Family plays a significant role in shaping the buying behaviour
of a person. A person builds his/her preferences from his childhood by
watching their family buy certain products and continues to buy the
same products even when they grow up.

(C) SOCIAL FACTORS
(i) FAMILY :
The ad for Mott’s juice depicts a mother as a
socialization agent who is teaching her children that
juices with less sugar are healthier. Researchers
identified distinct socialization styles among mothers,
based on mothers’ attitudes toward marketing.

(C) SOCIAL FACTORS
(i) FAMILY :

(C) SOCIAL FACTORS
(iii) REFERENCE GROUPS :
A reference group is a group of people with whom a person
associates himself. Some of these are primary groups with whom the
person interacts fairly continuously and informally, such as family,
friends, neighbours, and coworkers. People also belong to secondary
groups, such as religious, professional, and trade-union groups,
which tend to be more formal and require less continuous interaction.

(C) SOCIAL FACTORS
(ii) REFERENCE GROUPS :
BTS ARMY Includes These Music StarsBTS Army refers
to the global fanbase of the South Korean boy band BTS
(also known as Bangtan Sonyeondan). The name
"ARMY" is an acronym that stands for "Adorable
Representative M.C. for Youth". It's a dedicated and
organized fandom known for its strong online and offline
presence, characterized by its support for the band,
translation efforts, and various charitable initiatives.

(C) SOCIAL FACTORS
(ii) REFERENCE GROUPS :

(C) SOCIAL FACTORS
(ii) ROLE & STATUS :
A person is influenced by the role that he holds in the society. If a
person is in a high position, his buying behaviour will be
influenced largely by his status. A person who is a Chief
Executive Officer in a company will buy according to his status
while a staff or an employee of the same company will have
different buying pattern.

(C) SOCIAL FACTORS
• Rolex : Associated with prestige, accomplishment, and high social
standing. Their watches are often seen as a symbol of success and
are frequently targeted towards professionals and individuals who
have achieved significant milestones.
• Mercedes-Benz : Known for its luxury and performance, Mercedes-
Benz appeals to those who value comfort, status, and advanced
technology.
• Patagonia : Focuses on sustainability, outdoor adventure, and
ethical consumerism, appealing to individuals who prioritize these
values.
• Nike : Inspires athletes and fitness enthusiasts, associating its
products with performance, ambition, and a healthy lifestyle.
• Dove : Promotes body positivity and self-acceptance, targeting
women who value natural beauty and authenticity.

(C) SOCIAL FACTORS

(D) CULTURAL FACTORS

A group of people is associated with a set of values and
ideologies that belong to a particular community.
(i) Culture :
• People coming from particular communities have
behaviours highly influenced by their culture. Culture is
learned rather than being something we are born with.
Culture is manifested within boundaries of acceptable
behavior.

India has a strong religious culture. The Kumbh Mela in India is
considered to be the largest religious congregation in the world, where
millions of pilgrims converge. As the Maha Kumbh Mela 2025 in
Prayagraj draws millions of pilgrims, brands are seizing the opportunity to
connect with attendees through targeted initiatives. From healthcare and
financial services to lighting solutions and digital engagement, companies
are addressing practical needs and enhancing the experience for
pilgrims. This list highlights how brands like Sensodyne, PayNearby, and
others are leveraging the scale of this event to provide essential services,
promote awareness, and offer convenience to participants.
(D) CULTURAL
FACTORS

The case highlights how Titan’s brands, Raga and
Tanishq, adapted to India’s evolving cultural values.
Raga, initially positioned on femininity with a traditional
touch, gradually embraced progressive ideals like
independence and gender equality. Tanishq, first
targeting urban women with traditional values, later
launched ads reflecting progressive themes such as
remarriage, inter-caste marriage, and women’s
empowerment. Both brands show how linking positioning
to cultural shifts and emerging progressive values
strengthens consumer attitudes and relevance.
(i) CULTURE :

(i) CULTURE :
• Rin detergent uses an ad where a young woman in spotless white
impresses her boss, who questions her modest commute. She
proudly reveals her father is an auto driver, showing dignity in
humble roots. The ad shifts from ego-defense to value-expression,
portraying Rin as more than whiteness - symbolizing family pride,
emotional strength, and cultural values in India.

• H&M, the global fashion apparel brand, had entered the Indian market in 2015,
and by 2017, it was the fastest growing fashion brand in the country over
several other multinational brands that had entered this market earlier. One of
the observations that H&M had made about Indian consumers is their penchant
(ponshon) for colors and prints. The complex colour combinations that Indians
come across in everyday life with respect to consumer preferences in apparel is
a distinct characteristic of the Indian high cultural context.
• Almost two decades after its entry into India, Kellogg’s advertised that its
cornflakes can be taken with hot milk for one of its variants! This is important
because unlike the Americans, Indians don’t have a taste for cold milk along with
any food. Hence, Kellogg’s had faced problem in having a rapid reach in India.
(i) CULTURE :

(ii) SUBCULTURE :
• A subculture is a group of people within a society that
share a distinct identity and values that are different from
the larger society. Subcultures can be characterized by
shared interests, aesthetics, political views, or musical
preferences.

• Cosmopolitan magazine and other media have started targeting
Latin women, a segment that, for a long time, went unnoticed by
most media. Cosmopolitan Latina targets American-born, bilingual
Latinas. The magazine also has editions for women in Argentina,
Mexico, and Colombia.
(ii) SUB-CULTURE:

(ii) SUB-CULTURE:
L’Oreal USA collaborated
with Telemundo (an
American TV network that
broadcasts in Spanish) in
building a website for
Hispanic consumers.
• Telemundo is a U.S.-based Spanish-
language television network, owned by
NBCUniversal (Comcast).
• It is one of the largest providers of
Spanish-language content in the United
States, alongside Univision.
• “Hispanics” generally refers to people
who have origins in Spanish-speaking
countries, especially from Latin America
and Spain.

(iii) SOCIAL CLASS :
Social class encompasses various aspects, such as income, wealth,
occupation, education, and lifestyle. The social class provides a
framework for understanding individuals’ positions within society and
their associated behaviours and preferences.

• Peter England, a Rs.1000-crore brand, had used the concept of
segmentation with life stage as a base to create a new concept in retailing.
The brand has a presence in 2,000 outlets that sell multi-branded apparel,
and it also has exclusive outlets (750). The new retail outlets have apparel
for three segments – the entry level professional after collegiate education,
the early professional, and the older professionals (its sub-brand, Elite, is
for this segment). The age group covered is between 20 and 40 years. The
apparel includes formal, casual, and party wear for each of these
segments. Peter England was launched as the “honest shirt” – an
affordable international brand – during the 1990s and had appealed to the
mid-price market segment.

Apple, Chanel, Nike, Longines, and Mercedes that follow minimalist design
and communication are western brands. Paper Boat and Titan Edge, to
mention a few Indian brands that have adopted minimalist packaging and
communication, are higher-end brands in terms of their prices, and,
therefore, bound to target consumers who prefer costlier brands for a
variety of reasons – minimalistic look being one. Given the influence of
western cultures on the Indian context after economic liberalization in 1991,
consumers at the higher end of the price spectrum seem inclined towards
brands that have a western orientation and hence their acceptability.

(E) ECONOMIC FACTORS

Consumer buying habits greatly depend on the economic situation of a
country or a market. When a nation’s economy is strong, it leads to a greater
money supply in the market and higher purchasing power for consumers.
Whereas a weak economy reflects a struggling market that is impacted by
unemployment and lower purchasing power. Some of the important economic
factors are as follows:
Personal Income
• When a person has a higher disposable income, the purchasing power
increases simultaneously. Disposable income refers to the money that is
left after spending towards the basic needs of a person. When there is an
increase in disposable income, it leads to higher expenditure on various
items. But when the disposable income reduces, parallelly the spending on
multiple items also reduced.
Family Income
• Family income is the total income from all the members of a family. When
more people are earning in the family, there is more income available for
shopping basic needs and luxuries. Higher family income influences the
people in the family to buy more.

Luxury Cars : E.g. Rolls Royce :
• Ads often depict the vehicles in
affluent settings, highlighting
advanced features and a
sophisticated lifestyle that
resonates with top earners, E.g.
Rolls Royce Luxury Cars. Luxury
comes at a hefty price and
therefore, not everyone can own it.
Buying a Rolls-Royce is every car
lover's dream, though
unfortunately, not everyone can
purchase the luxury brand.
Luxury Watches (e.g., Rolex, Rado):
• Hrithik Roshan has represented the
Swiss watchmaker Rado for over a
decade now. His personality truly
resonates with the brand's attitude of
practicality and effortless charm.

Nirma Detergent for Middle
Class :
Nirma targeted the middle class
through a focus on affordability
and value, a strategy
exemplified by its iconic "Doodh
si safedi" jingle and the use
of budget-friendly pricing for its
detergent
powder. Advertisements
featured satisfied, budget-
conscious women to build trust
and appeal to the Indian
housewife.
Amul products for middle class :
Amul advertisements target the middle
class by offering quality products at
affordable prices, creating an emotional
connection through relatable campaigns
like the "Amul Girl," and using a "moment
marketing" strategy to tap into current
events and festivals

Consumer Credit
• When a consumer is offered easy credit to purchase goods, it
promotes higher spending. Sellers are making it easy for the
consumers to avail credit in the form of credit cards, easy
instalments, bank loans, hire purchase, and many such other credit
options. When there is higher credit available to consumers, the
purchase of comfort and luxury items increases.
Liquid Assets
• Consumers who have liquid assets tend to spend more on comfort
and luxuries. Liquid assets are those assets, which can be converted
into cash very easily. Cash in hand, bank savings and securities are
some examples of liquid assets. When a consumer has higher liquid
assets, it gives him more confidence to buy luxury goods.
Savings
• A consumer is highly influenced by the amount of savings he/she
wishes to set aside from his income. If a consumer decided to save
more, then his expenditure on buying reduces. Whereas if a
consumer is interested in saving more, then most of his income will
go towards buying products. Compiled by Henna P. 74

CASE STUDY : WALT DISNEY
The Walt Disney Company, founded in 1923 by brothers Walt and Roy Disney, has become
a global leader in family entertainment. Starting as a small cartoon studio, Disney gained
international recognition with Mickey Mouse and the first full-length animated feature, Snow
White and the Seven Dwarfs. Over the decades, the company expanded into animated
classics like Pinocchio and Cinderella, live-action films such as Mary Poppins, television
shows, consumer products, and theme parks, including Disneyland and Walt Disney World.
Following the deaths of Walt and Roy, Disney faced a period of struggle but recovered in the
1980s with ventures like the Disney Channel and Touchstone Pictures, targeting both family
and older audiences. Today, Disney operates through five business segments: Studios,
Parks and Resorts, Consumer Products, Media Networks, and Interactive Media. The
company continues to balance its 90-year heritage with innovation, using technology, cross-
platform franchises like Hannah Montana, and global outreach to engage audiences. Disney
estimates that consumers spend billions of hours annually interacting with its content, from
movies and television to theme parks. With revenues reaching nearly $38 billion in 2008,
Disney remains a trusted, influential, and enduring entertainment brand worldwide.
General Questions:
1. Who founded The Walt Disney Company, and when?
2. What are the five main business segments of Disney today?
3. Which films and characters made Disney globally famous?
4. How does Disney balance maintaining its heritage while innovating for new audiences?
5. How has Disney leveraged cross-platform franchises to increase consumer engagement
and revenue?

Thank You

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