Consumer Behaviour

Internal Assignment for December 2023 Examination

Q1. A study in 2021 by People Research on India’s Consumer Economy (PRICE) in
partnership with the National Payments Corporation of India on Digital Payments has
estimated that around 61% of Indian households will be doing digital payments by 2025 if
the enabling environment for that is created. The break-up of the households across 3 broad
income groups viz. Rich, Middle Class and Poor for digital payments is as under:
It is obvious that the Poor Class is going to be much bigger in Digital Payments compared to
the Rich and almost similar in share compared to the Middle Class, though their average
ticket size is going to be smaller. It is also clear that in order the realise the potential number
of 55 million Households the poor will need the highest support and hand-holding From a
consumer buying perspective what are the things think the Government Authorities along
with banks and financial institutions do to enable a faster adoption of Digital Payments
across the poorer and economically backward sections of the society.
Answer 1. The study of consumer’s actions during searching for, purchasing, using,
evaluating, and disposing of products and services which they purchase in order to satisfy
their needs is termed as consumer behaviour. It explains how consumers choose to spend
their resources.
As per the above case, it is crucial for the Government authorities and financial institutions
to promote digital payments across the poor class of the society to meet their target by the
year 2025.
To encourage the economically disadvantaged segments of society to accept digital
payments more quickly, banks, financial institutions, and government agencies need to take
a multimodal strategy that takes into account the particular difficulties that this group faces.
To promote and ease the switch to digital payments, the following tactics can be used:

 Simple infrastructure- The authorities should focus on building a strong and easily
accessible technology infrastructure to guarantee dependable internet connectivity
in even the most remote locations. This would enable those living in economically
disadvantaged areas to easily access digital payment services. A simple system will
encourage their participation to try and learn, unlike a complex system, which would
discourage them at a very initial stage.
 Educating them about the financial literacy- Start extensive financial literacy
initiatives aimed at the economically disadvantaged groups to improve their
comprehension of digital payment methods. These courses ought to go over the
fundamentals of online transactions, security precautions, and the advantages of
switching to cashless payment methods.
 Encouraging Digital transactions- Government can incentivize the digital transactions
by offering benefits for using digital transactions, discounts, or cashback to people
who choose to do so. Those in the economically disadvantaged groups who would be
 reluctant to move owing to perceived hassles or uncertainty may find this to be
motivating.
 Budget friendly Devices- Work together with tech companies to create reasonably
priced smartphones and other electronic gadgets. Concurrently, create UIs that are
easy to use for online payment apps so that people with different tech skills can
utilize them.
 Providing Subsidies- Provide targeted government subsidies to lower the transaction
costs of digital payments for those who are not well off. Give banks and other
financial institutions that are prepared to fund outreach initiatives for this group
financial help as well.
 Collaborations- Promote collaborations between financial institutions and small and
micro companies in the community. This partnership has the potential to increase
grassroots adoption of digital payments and foster an atmosphere that is favourable
to their use.
 Overcoming language barriers- To get beyond language limitations, create support
materials and digital payment applications in local languages. This guarantees that
people in economically disadvantaged groups can use digital platforms with ease and
comprehend their features.
 Influencing the masses with engagement programs- Launch community involvement
initiatives with local influencers, leaders, and organisations. Making use of these
networks can aid in information sharing, trust-building, and promoting the use of
digital payments in these communities.
With above mentioned strategies, a faster acceptance of digital transactions can take place
among the pool class. It is in alignment with the financial empowerment and inclusion
vision. Along with this, the authorities can employ agents, who can provide personalized
guidance and support to the rural and economically backward sections to address the
challenges faced by the individuals. Also, to establish the trust of people with their hard-
earned money being transacted digitally, the authorities should establish a safe and
transparent digital payment ecosystem. All the concerns of people regarding the scams and
frauds should be eradicated with clear communication about the security features. In this
way, people will be confident and educated to deploy the digital transactions in their daily
lives.

Q2. Age has 2 broad categories – chronological age and Subjective Age which is different
from chronological age. Subjective Age has 4 dimensions. Analyse how the 4 dimensions of
Age will impact the purchase choices for consumers buying cosmetics and ready-to-wear
clothes.
Answer 2. A chronological age is the age of the person as measured from birth to a given
date. Whereas, a subjective age is a relative age which refers to how individuals experience
themselves as younger or older than their chronological age. Individuals' subjective
perceptions of ageing vary greatly from one another and do not align with chronological
age.
Biological age, social age, identity age, and cognitive age are the four dimensions that make
up subjective age, which is different from chronological age. These factors are quite
important in determining what customers choose to buy, especially when it comes to
cosmetics and ready-to-wear clothing.
1. Biological age- When choosing cosmetics designed to address particular aging-
related skin issues, consumers may take their biological age into account. This
market would be drawn to skincare products with anti-aging ingredients and
solutions for aged skin. Regarding clothing, Comfort and body shape are two aspects
that might affect clothing selections and are frequently linked to biological age.
Fashion firms ought to provide a range of sizes and styles that suit the various body
shapes connected to various biological ages.
2. Cognitive age- Cognitive age refers to an individual's perceived age based on their
attitudes, beliefs, and behaviours, rather than their actual chronological age. In
marketing and consumer behaviour, cognitive age is an essential concept because it
helps marketers understand how individuals perceive themselves in terms of age.
Customers who believe they are cognitively younger might be more likely to
purchase skincare and anti-aging treatments. Marketing plans ought to highlight the
cognitive advantages of these cosmetics, stressing renewal and looking young.
People who are younger in age may find themselves drawn to fashion trends and
styles that are representative of a more carefree lifestyle. Clothing companies that
cater to this demographic should give priority to creating designs that follow current
fashion trends.
3. Identity age-Identity age plays a significant role in shaping preferences and choices.
Marketers often target specific identity age segments with products, services, and
advertising campaigns that align with the perceived characteristics and aspirations of
those age groups. Understanding identity age helps marketers create more
personalized and resonant messaging that speaks to the self-perception and lifestyle
preferences of their target audience. Customers might match the cosmetics they
choose to their perceived age. For example, someone who defines as having a
youthful and active lifestyle could want to use bold and fashionable makeup items.
Identity age affects what people want to wear; they pick clothes that match how
they see themselves. Clothing that fits both youthful and older identities should be
offered by brands in order to cater to varied identity age divisions.
4. Social age- A person's perceived age in relation to societal standards, expectations,
and roles is referred to as their social age. A person's social age indicates where they
are in the social life cycle. While younger consumers might choose items in line with
current societal trends, older consumers might choose cosmetics associated with
sophistication and elegance. Dress rules and fashions that are considered
appropriate for various occasions are determined in part by social age. When
creating and promoting their products, clothing designers must to take into account
the expectations and preferences of the general public regarding social age.
In conclusion, Marketers can develop focused and successful tactics to attract customers in
the ready-to-wear and cosmetics industries by comprehending and utilising these subjective
age dimensions. Brands may improve consumer happiness and engagement by matching
their marketing messages and products to the target audience's subjective age perceptions.
Q3. Answer the following
a) A company in USA has developed a Gluten Meter which is device that measure the
gluten content in the food a consumer wants to consume. Gluten is a group of
proteins found in wheat, barley, rye, and their derivatives. It's what gives dough its
elasticity and helps baked goods maintain their shape. While gluten is responsible for
the desirable texture of many baked products, it can aggravate diabetes and obesity.
Since India has the highest number of diabetics in the world this American wants to
understand the attitude of people towards Gluten and Gluten Meters. How will they
be able to understand the attitude of the consumer to this. (5 Marks)
Answer 3 a. India has the highest number of diabetics in the world, which is a
combination of reasons such as genetic predisposition, lifestyle, obesity, limited
awareness and screening, limitations in healthcare facilities and other cultural factors as
well. As stated in the above case, an American company has developed a Gluten Meter
to measure the gluten content in the food, it is important to understand the perspective
of an Indian consumer towards the concept of gluten and a device that measures it. The
company can apply strategies stated as follows;
1. Dietary preferences and Market study- Start thorough market research to learn
more about Indian customers' attitudes, behaviours, and awareness of gluten.
Surveys, interviews, and focus groups may be used in order to learn about people's
attitudes, degrees of awareness, and worries about consuming gluten. Examine
Indian customers' food habits and preferences. Recognise the frequency of gluten-
containing products in their regular diets and note any concerns or preferences they
may have regarding gluten-free options.
2. Creating awareness- Start educational initiatives to increase public knowledge of the
health risks associated with gluten, particularly with regard to diabetes and obesity.
Describe the advantages of keeping an eye on your gluten intake and how it can
improve your general health. Stress the advantages of utilising the Gluten Metre for
your health. Demonstrate how it can enable people to make knowledgeable dietary
selections, particularly those who have diabetes. Emphasising the device's capacity
to manage medical issues can help shape consumers' opinions.
3. Partnering with the Medical professionals- Collaborate with nutritionists and medical
professionals to support the Gluten Metre. Their advice and assistance can increase
credibility and trustworthiness and allay any doubts or worries customers may have
regarding the device's efficacy.
4. Address the diversity of the Nation- Acknowledge the variations in eating customs
throughout India's many regions. Adapt product positioning and marketing tactics to
local preferences and variances in gluten-free possibilities.
5. Digital influence and trials- Use social media and internet channels to interact with
the intended audience. To get comments and viewpoints in real time, conduct
surveys, polls, and interactive sessions. This can be useful in determining people's
 initial thoughts and feelings about gluten and the Gluten Metre. Provide customers
the chance to test and see the Gluten Metre through demonstrations. Encouraging
prospective users to witness the technology in operation and grasp its user-
friendliness can have a favourable effect on their impression and probability of
adoption.
The American corporation can learn a great deal about Indian consumers' perceptions of
gluten and the marketability of Gluten Metres by implementing these tactics. This data
would be essential for creating marketing efforts that are specifically targeted at Indian
consumers and for improving the product offering to better suit their unique needs and
preferences.

b) How will you use hemispheric laterization to influence consumers to buy a particular
brand of a lifestyle home theatre system like Bose. (5 Marks)
Answer 3 b. Different mental processes take place in the left and right hemispheres of
the brain. While the right hemisphere functions physically, instinctively, and holistically,
the left hemisphere is more specialised for processing information sequentially, audibly,
and logically. Marketing tactics to persuade consumers may take into account the
concept of hemispheric laterization, which is the theory that distinct functions are
localised in separate hemispheres of the brain. It is possible to emphasise appealing to
both the rational and emotional parts of the consumer's decision-making process when
marketing a lifestyle home theatre system such as Bose. Hemispheric laterization can be
applied in the following ways:
1. Right Hemisphere- It is believed to be responsible for the Emotional and Creative
side of our brain. As a marketer, our focus should be on creating aesthetically
pleasant, immersive experiences, building emotional connect, and having celebrities
for endorsements. Stress the product's ability to create immersive experiences in
order to establish an emotional bond with customers. Write narratives in your
marketing materials that illustrate how the Bose home theatre system may elevate
sentimental occasions like family movie evenings or music listening. Draw attention
to the Bose system's svelte form, high-quality components, and attractive
appearance. Make use of visually appealing content, including sharp photos and
videos, to arouse favourable feelings related to the way the product looks. Use
techniques of emotional branding to connect the Bose brand to luxury, quality, and
lifestyle. Develop advertising strategies that highlight the happiness, excitement, and
relaxation that a home cinema system can provide by appealing to the emotional
qualities of entertainment. To elicit happy feelings, think about utilising celebrity
endorsements or partnerships. Linking a product to well-known individuals can
improve brand impression and elicit a favourable emotional response.
2. Left Hemisphere- It is believed to be responsible for the Logical and analytical
functioning of our brain. Emphasise the Bose home entertainment system's features,
innovations, and technical specifications. Give specifics about the superior
 engineering, cutting-edge technology, and sound quality that make it stand out from
the competition. Highlight the rationale behind why Bose is a better option.
Showcase quantifiable information like as power, frequency responsiveness, and
connectivity options in a comparative analysis with different products. To appeal to
the analytical side of your customers, who look for unbiased information before
making a purchase, use graphs and charts. Incorporate endorsements, kudos, and
professional judgements. When making selections about what to buy, logical
customers frequently consider other people's experiences and professional
recommendations.
In conclusion, we can consider a combination of both logical and emotional appeal for
creating an integrated marketing campaign by showcasing technical features through a
video depicting a story about how Bose home theatre can enhance the entertainment
quotient in the ambience. This strategy seeks to present a comprehensive and engaging
story that inspires customers to feel emotionally invested in the brand and its
advantages for improving their quality of life, in addition to appreciating the product's
excellent technical performance.