Indian Consumer Buying Behaviour in the UK
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This dissertation provide an overview of research topic on Indian consumer buying behavior in UK, first part outline aims and objective of the dissertation and followed by the motivation and study carried. Outline of structure of the dissertation and limitation are presented.
1.1 Aims and Objectives
The aim of the dissertation is to understand and identify the social, cultural, buying behaviour characteristics of Indian community in UK.
The research carried out primary and secondary research associated with Indian community and shows the linked between the ethnic consumer behaviour connections with market.
What are the consumer buying behaviour characteristics of Indian Community in the UK”?
The objective of the dissertation is to focus and study on buying behavior of the Indian Community living in UK. To determine identify categories associated with Indian and their age characteristics. The article, literature, journal covers cultural, ethnical issues, historical issues of Indian identify integrating it with the personally studies. The method used on the basis of quantifiable observation for statistical analysis and philosophical interpretive research method to support Questionnaires are used to analyses the primary data. The findings reveal personal, ethnical, buying pattern and cultural characteristics relevant for identifying Indians' consumer behavior. The conclusions are made for the implications of this identity need to be taken into account by the UK marketers or business market for new segment to target.
1.2 Motivations behind the Dissertation
The Indians are part of a multicultural UK society, they make a significant cultural and consumer force Ref 35 (Fletcher, 2003). They are increasing in size, purchasing power and geographic concentration, giving “marketers a unique opportunity to modify their marketing strategies in the pursuit of increased market share and profitability” Ref 27 (Lindridge and Dibb, 2003). Due to increase in ethnic population and cultural diversity which represent many opportunity and threats to the markets hence marketer has to acknowledge the change in market by understanding the ethnic diversity Ref 35.
Total in UK around 29% organization don't target ethnic market while 47% do target but were not effective in strategies due to lack of understanding and information about the Indian community in UK. Ref 27 (Lindridge and Dibb, 2003 cited: Fulford, 2001). Since UK represent multiethnic society, consisting of a diverse mix of culture and languages, there generates to understand the buying behaviors of all the elements which effects the business to fulfill marketing knowledge as the for the satisfaction of customer needs and wants Ref 28 (Chudry and Pallister, 2002)(Ref 25). This report will be focusing on the consumer buying behaviors characteristics of the Indians community in UK.
1.4 Limitations of the study
The limitation of the study are that there has not been enough research done on the cultural characteristics of Indian Consumer Behaviour therefore there is no previous more studies carried out to judge the topic further. The Empirical Side of the Research has been hindered due to the fact that there is only one researcher, which made difficult to gather substantial studies and sample of Indian Community for quantitative research which have been omitted due to lack of manpower and time.
2. Literature Review
According to Philip Kotler consumer behavior as “the buying behavior of final consumer- individual and households who buys goods and services for personal consumption”, all to this it is directly related to market created by Consumer which varies in income, age, education level and taste across the world tremendously. They buy incredible variety of services and products which diverse consumer connection with each other with other element of the world (Ref 1). Today consumers have many choices to select a product as compared to ten or fifteen year before. Business growth depends on loyal customer or repeat purchase because they are satisfied with product variety/ services which they have received which bring consumer into the stores. Lot of marketing efforts is played to bring consumer to the stores, normally consumer assumes marketing as advertising and selling which is flow of goods from producers to customer. Marketing has great influence on fast moving consumer goods through range of activities includes promotion, market research, advertising etc. Evaluation and monitoring of customer is also an important and one method of evaluation is by completing marketing research. Ref 7 (Woodruffe 1995 149, 163-4)
According to Adrian Palmer Business Philosophy, marketing puts customers at the centre point of all the organization's which reflects the basic values to understand and response to customer necessity and needs to search constantly for new market opportunities. (Ref 22)
There are three major components of marketing by Narver and Slater (1990) Customer Orientation, Competitor Orientation and Interfunctional Co-ordination. Customer Orientation understands its target buyers, Competitor Orientation focus on customer and its competitors police and strategy, while Interfunctional Co-ordination which futile marketing manager to develop the marketing plans to creating value, delivering promise made to customer and integrates its human and physical resources effectively and adapts them to meet customer needs. Marketing key concepts depends on customers, needs, value, exchange and market.
Marketing Environment According Kotler “The actors and forces outside marketing that affect marketing ability to develop and maintain successful transaction with its target customer.” As per Environment markets depends to two major environment micro and macro environment but basically here we will be dealing with Macro Environment with explores border concepts of consumer behavior. Macro Environment consists of larges societal forces like demographic, cultural, economical, natural, political and technological. UK which is huge market with varied customers which are widely scattered hence we have to focus on specific Indian Consumer segment. According to Kotler Segment marketing is an “isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments”.(Ref 1,2). For marketer to target the entire consumer with same marketing style and approach doesn't satisfy to all customer where are many customer are dissatisfied or there need are fulfilled, hence here opportunity arise fro the company for specific segment. As per data and statistics Marketer has to go for niche marketing to target specific segment. According to Kotler Niche Marketing is Focusing or sub segment or niches with distinctive traits that may seek a special combination of benefits.(Ref 1,2). Hence in this project we will be focusing on Indian consumer with total UK consumer hence below gives the Geographical, Cultural, Political, Technological and Economical consumer patterns as compared to total UK Consumer.
Geographically Indian Consumer In UK
According to Kotler Demography or Geographical shows the study of human population in terms of size, density, location, age, gender, race occupation.(Ref1) Its very important because its gives marketers major interest it involve people, and people make up markets, as Indian Consumer geographical location is given below.
Geographical Distribution of Minority Religions Mainly In London
Percentage of each religion living in London, April 2001, GB
Percentage of each religion living in London, April 2001, GB
http://www.statistics.gov.uk/cci/nugget.asp?id=956 (Ref 39)
Families with dependent children: by ethnic group and family type, April 2001, UK
Families with dependent
Total International Migration (TIM) to/from the UK 1991-2004
Total International Migration (TIM) to/from the UK 1991-2004
According to recent survey by Government in 2004, around 223,000 more people migrated to UK than migrated abroad, as its higher migration than estimate before in 1991. Migration from New Commonwealth has increased by 45 percent between 2003 and 2004 within this group, net in migration from Asian was risen from 38,000 to 54000 in 2003, 2004 respectively. Ref 39
Net migration by country of last or next residence (1995-2004)
Net migration by country of last or next residence (1995-2004)
The demographic characterized of ethnic population in Britain is complex, As 97 percent of Britain's non white population live in England, where most of the Indian lives in England and major cities of Scotland, approximately 53 percent of Indian lives in the south east and a further 30 percent in the midlands. Recently due to new Government laws implementation in Scotland the increase of Asian community are raising in great major cities like Edinburgh and Glasgow .Ref 39
Social, Cultural and Economic characteristics of the Ethnic population
Culture can be defined as a “unique pattern of shared meanings that characterized a society and distinguish it from other societies. It is passed down from generation to generation and has been described as a society's ‘personality' ” Ref 21 (Wells and Prensky, 1996). Culture should be viewed as a “complex bundle of independent variables that can be attributed to behaviour” Ref 27.
Culture plays an important part in the identification of an ethnic group, as ethnic groups are “those human groups that entertain a subjective belief in their common descent because similarities of physical type or of custom or both, or because of memories of colonization and immigration” Ref 27 i.e. culture.
According to Kotler the cultural environment is made up of institution and other forces that affect the society's basic values, perceptions, preference and behavior. Every consumer grows in specific environment which gives some beliefs, values, inheritance, family structure, reference characteristics which reflects in him.(Ref 1)
Culture is forever evolving “synthesizing old ideas with new ones” Ref 20 (Solomon, 2004). All cultures are different, but there are four dimensions that are in all cultures:
1. Power distance: how relationships form when difference in power is perceived.
2. Uncertainty: “the degree to which people feel threatened by ambiguous situations and have beliefs and institutions that help them to avoid this uncertainty” Ref20
3. Masculinity/femininity: how clear are the sex roles?
4. Individualism: cultures differ on how individualist (importance attached to personal goals) or collectivist (people lower their personal goals for the group) they may be Ref 20.
18.104.22.168 Components of Culture
The components of culture are a useful tool for marketers as they can use appropriate marketing communications to associate the product with the consumer's values.
“Values are the underlying beliefs about the appropriate ways the members of a culture should act, think, and feel” Ref21, these values are:
i. Somewhat stable;
ii. Somewhat general
iii. “Fairly widely accepted as a guide to culturally appropriate behaviour - and therefore as a ‘standard' of desirable and undesirable beliefs, attitudes and behaviour” (CIM, 1993).Ref 23
Norms and Customs
Norms are the rules of values on how to behave or not behave; individuals may or may not accept these norms Ref 9 (Antonides and van Raaij, 1998). “Crescive” norms are norms that are rooted in a culture (Ref 20). “Crescive” norms can also be perceived as a custom, which are the “established patterns of behaviour adopted within the society or community. They regulate and regularize social practices and define which behaviours are acceptable” (Rice, 1997) Ref 16. Williams (1981) identified four forms of customs or what Le Vine (1997) calls ‘ostensible markers' from the least to the most serious enforced:Ref 19,26
Myths are tales that exemplify one or more of the shared values of a culture by describing a person, event, or idea that symbolizes values (Wells and Prensky, 1996) Ref 21. Myths serve four interconnected functions in a culture: Ref 19
1. Metaphysical: explains the origin of life
2. Cosmological: all the components of the universe is part of one picture
3. Sociological: the maintaining of social order through a social code
4. Psychological: the providing of models for personal behaviour
Ref 20(Solomon, 2004)
a. “A ritual is a set of interrelated patterns of behaviour that have a symbolic meaning” (Ref 21), ritualized behavior is formal and ceremonial such as marriage ceremonies and religious services (CIM, 1993). Ritualistic behaviour is an individual behavior that is made into a ritual such as shaving and getting up at a certain time in the morning Ref 19 (Schiffman and Kanuk, 2003).
Sacred and Profane Consumption
* Sacred consumption involves items and events that are not part of ordinary activities and are treated as such, example, religious ceremonies (Ref 20).
* Profane Consumption involves ordinary, everyday items and events (Ref 20)
* Sacred Events - when consumer's activities take on special status, it can be anything from public events, sports events or holidays, as they occupy sacred time and space for the consumer Ref 20 (Solomon, 2004).
Material artefacts are possessions that have a special significance to members of a culture. Artefacts obtain their special significance due to the role they play in myths, customs, and rituals. Artefacts can be everyday products that have symbolic meanings, which give them special status in culture, such as red roses for Valentines Day Ref 21.
Indian have different rituals, customer,myths which relates each other, due to help of British Government Indian enjoy major big Indian Festival like Diwali, Dusshera etc in UK, as festival times seems to major shopping and expenditure time of Indian , majority of Indian community still does major investment, buying or moving on special festive period or religious occasion then usual day due to long traditional belief from ancient time. Gold purchasing and wearing is one of the passion in Indian customer , Women during festive period used to buy gold and diamonds which is one of the major segment for marketer to target the ethnic community during festive period.
Language and Symbols
Language makes the learning and sharing of culture possible (CIM, 1993), without a common language, a shared understanding would cease to exist, which will lead to the extinction of a culture Ref 19. Symbols are an important aspect of language; they can be verbal or non-verbal (CIM, 1993). Verbal symbols include television and magazine advertisement, whilst non-verbal symbols are s, shapes and colours Ref 19. Symbols can carry a number of different meanings and have different interpretations to many people; these interpretations can be unique to one culture.
India have a diverse culture with more 24 different language, having Hindi has national language, majority of Indian in UK use Hindi or English as communication language in community.
According to Journal of Consumer Behaviour, Britain ethnic minority population was around 5.5 percent with spending power of L 10 Bn in 1998 which has increased drastically, whereas the population of Indian are increasing faster than Caucasian which leads increase in buying power. Many companies has started targeting ethnic group eg. Jaguar started sponsorship events of Indian Bollywood Mega Mela in London of 3 days.
Indian culture are great lovers of music and art from ancient times, ancient history have shown deep interest in this field which has contributed in formation of Bollywood industry, world largest film industry in the world, which influence billion of people in India through cultural aspects and Behaviour. Before Bollywood industry was popular only in east but now every year its increase 18 % market globally with 3.6 billion global audience which higher than Hollywood which has only 2.5 billion global audience, Indian community which migrated and living in UK cannot distract from viewing Bollywood movies and channels Which has created a huge market for Indian viewer of Asian channels and Bollywood movies in UK market. As per recent survey by BBC more than 70% of British Asian homes twice the national average the Telewest, sky or cable tv at home where viewing two third of Asian viewer are made of Asian interest channels featuring dramas, Bollywood music of back home and movies. Also surveyed revealed that majority of ethnic population have their own mobile, DVD and internet at home. Majority Indian women back in India has highly soap addicts drama , survey carried out shown that 71% percent ethnic community made a point of watching soap as compared to 56% of white woman. Leader in broadcaster were Zee TV and Star which was just a new comer in UK around 4 year before but in his second year of launch he had 90,000 strong customer of ethnic community because Star TV is one of Indian Top Channel with 42 million subscribers which show cultural inheritance in UK which has high growth rate. Some of provider like Telewest understood the consumer Behaviour of ethnic community and launch Asian Channel Package which was cheaper than individual channel and wholesome package which attracted number of customer toward him. Ref 31, 32, 33
For a marketer culture may come across as too broad a subject, as it embraces whole societies (CIM, 1993), therefore, to make life much easier a marketer could subdivide a culture into distinct subcultures. A subculture can then be defined as groups of people within a society that share common experiences and beliefs, which distinguishes them from other groups (Ref 20). An individual can belong to a number of subcultures and these subcultures can play a crucial role in defining the extended self (Ref 20) . Rice (1997) suggests that there are five prime subcultures: Geography; Religion; Age; Gender and Ethnicity.(Ref 16)
Indian with has diverse culture with varied religion, India has many sub religion which makes sub culture or sub group like Sikh religion which has same characteristics and belief like Hindu, . While Indian Muslims used to differ in culture, tradition and belief which can be a new sub culture. As under studies and my knowledge India used to be male dominant society from long time, still majority of Indian women in India used to housewife and male used to earn but in recent 20 years women in India used to work and way ahead but still male dominant the heavy purchase like home, car, investment, buying while female dominant male in purchase of household, home maintenance, buying food etc which reflect same in UK.
Acculturation is the “process of movement and adaptation to one country's environment by a person from another country” (Ref 20); this process is the learning of the host countries language, myths, values, customs and rituals (Wells and Prensky, 1996) Ref 21. There is also the opposite affect of acculturation which is enculturation that is the “process of learning one's native cultural values” Ref 21. (Ref 9) Antonides and van Raaij (1998) call this the process of socialization with the culture being transferred from the older to the younger generation through family, religious groups, schools and other agents. Ref 9
Acculturation agents can align with the culture of origin or the culture of immigration in Fig. 1.3 shows how well an individual responds to the agents depends on their individual differences, these responses thus affect the acculturation process such as; movement which is the physical movement from one location to another; there is then the need for the translation of social rules in the host country; and this leads to the adaptation process by the consumer, on how much do they align with the host nation. The acculturation outcomes are either to assimilate with the host nation, by adopting their values; maintain practices from culture of origin; or just segregate completely from the host nation, by only buying goods from people from their culture.
Many Indian migrated from India have cultural Behaviour of back country as well they kindly start adopting the British culture , hence year after year they have 20-30 percent of British culture which has replaced some of the Indian culture, Majority Indian in back country used to religious more but after migrating they become less religious , don't concern more than usual, also majority of Indian in back country use to Vegetarian and keep to avoid Liquor but after several years in UK they used to eat majority on Non Vegetarian food except religion prohibition of eating beef (Hindu and Sikh) and pork(Muslims) and start drinking more than usual, the back country they used to leave in joint family and have strong family structure , which has little bit change in coming year, the new generation British Indian or Indian leaving from long time use to leave separately than joint family , get separate from parents and leave independently but still have strong bondage with family which shows mixed culture of Indian and British.
According Sinha (1969) and Mandelbaum (1970) study indicated that the Indian families are of dominant concern for most Indians. Individuals within the family are instilled with collectivist cultural values of duty, interdependence, obedience, reliability and sacrifice for the group (Triandis, 1989; Triandis et al., 1993). In contrast, individualistic cultures encourage detachment from the family unit and greater individuality (Halman, 1996). It is British Indians' relationship with their family that may be a major cultural determinant upon their buyer behavior. The family unit's influence, within the collectivist-individualistic context noted earlier, therefore, will be assessed through three buyer behavior areas: use of possessions to enhance social status, materialism and reference group use.
Family structure and Reference Group
According to Journal of Consumer Behaviour , Ethnic Indian Community have family dominant concern for most Indian, individuals within the family has distinct collectivist value of culture, duty, obedience, interdependence, sacrifice and reliability where in contrast British's Causcaucian are detached and great individuality. This relationship bondage within the family structure has major cultural determinant upon their buying Behaviour. As per Journal Indian Immigrant are more concerned with possessions than people, inferring and have a materialistic Behaviour which is other way on British Community. Ref 30
A reference group is “any person or group that serves as a point of comparison for an individual in forming either general or specific values, attitudes, or a specific guide for behavior” (Ref 19), these groups can be real or imagined (Ref 20). Reference groups can be influential as they can be “informative, utilitarian, and value-expressive” (Ref 20). Normative reference groups influence general values or behavior, whereas comparative reference groups are benchmarks for specific attitudes or behavior (Ref 19).
Factors that affect reference group's influence on consumers may include:
* Information and experience: an individual who has knowledge of a product/service is less likely to be influence by a group
* Credibility, attractiveness, and power of the reference group: these groups can induce consumer attitude and behavior change, as they are seen as trustworthy and knowledgeable
* Conspicuousness of the product: reference groups influence varies according to whether the product visually conspicuous (one that stands out) or verbally conspicuous (a product can be easily described)
There are several types of reference groups that can be defined as either ‘aspirational' (successful business people sportsmen or celebrities) or ‘membership' (groups that an individual can identify with) groups (Solomon, 2004)Ref 20. Some of these reference groups are:
* Friendship groups: they are informal groups and are the most influential group when it comes to the purchase decision
* Shopping groups: they are made-up of family or friends, this function can be referred to as purchase pals
* Work groups: because of the amount of time people spend at work, the work group can be a major influence
According to Green the family structure favored by Indian community which have traditional family structure and contrary to it, as the new generation has different attitudes towards family structure across the generation in Indian families.
The family structure favored by Indian groups varies enormously It is clearly important for marketers to be aware of these divergent trends since they will have important implications for advertising and promotional activities directed towards the various ethnic groups (Green, 1999).
According to Journal of Consumer Behaviour, due to collectivist culture of Indian which are affected by external perceptions, then reference group selection may be determined by the need of gain recognition of the family's reputation, majority British Indian seek recognition from these reference group, secondly work colleagues and friends have greater collectivist power of culture. Ref 30
Age profile of minority groups
According to Journal Dawn Burton (Ref 24) Age profile plays an important role in minority group, one of the most significant features of the Indian population is its younger age as compared to white indigenous population. According to data 1990, 48 percent of the ethnic minority population was under 24 years of age in 1999 compared with 31 percent of the white population. Indian group had 41 percent of individual in this age group, As a study in US marketer have recognized that younger age profile of minority group is having an important impact on consumer behaviors . The studied show that Indian Minorities community have higher percentage of card ownership, ATM usages, use cards for withdraw cash and more likely purchase goods and service with cards than the white population Ref 26(Texas Banking, 1999) hence Indian community has similar culture expectation like in Britain . Ref 24,26.
Economic and Social Characteristics
Economic Environment consists of factors which affects the consumer purchasing power and spending patterns, According to Adrian Palmer for “marketer it's hard to appreciate fully the cultural values of a society, attitudes to specific product changes through time and at any one time between different groups”. “Like in Home market specially UK, company should understand the processes of gradual changes and be prepared to satisfy the changing needs of consumer” (Ref 22). As a new challenges for marketing are posed by the diverse cultural tradition of ethnic minorities.
According to Journal Dawn Burton issues can be addressed our social and economic factor, the issues holds religion, household income and family structure. Before targeting a specific segment its important level of income and expenditure, the superiority of Indian groups over the white category is party accounted for the higher proportion of pensioner households in the white indigenous population.(Ref 24) The PSI survey is useful in this respect since it categorizes the proportion of members of different ethnic groups in various income brackets. The ethnic Indian and White Population were on a par but there are significant proportions of high earners in the Indian, Indian population in UK are at high earning capacity with high saving as compared to White or any other community Ref 32. They have strong purchasing power. According recent publication in newspaper, out of 10 richest people of UK five are from Indian origin, hence from this statistics one can imagine how far Indian are economical strong in UK, world 3 richest and UK Top richest person Mr. Laksmi Mittal belong to India, majority of Indian living in UK are economical sound and having high saving then the normal British consumer, due to which they have strong buying power Ref 35, Ref 40
According to International Journal of Entrepreneurship, majority of Indian community in UK runs small scale business, in transition which are lining into owing large scale, profitable, enterprise has not the attracted investment but attention of media and research , nearly of half of independent shops in Britain in 1990 were own by Ethnic Asian entrepreneur which have high scale of Indian, in which have around 300 millionaire 1990 which have increased to 500 or more today, whereas they are 2 percent of working age population in Britain , contributing towards wealth creating by employment which is greater in size. According to Modood in 1997 the average weekly earning of Indian exceeds those of White population In Britain. Ref 30,33
As Success of the Asian Business in Britain likes in their cultural characteristics which have high encourage thrift, hard and reliance on family lab our. There are major cultural facts like mechanisms of self help, family controlled business, informal source, local ethnic community market which builds the business to new ladder. A enterprenuser who makes productive use of the community like cheap family labor, finance within community, cultural values, niche marketing to satisfy the demands of their own community for ethnic product which have huge population to fulfill. Ref 30
Ethnic business has asserted the success due to sense of developing from small to large scale business, due to ability of branch out from ethnic enclave economy. According social aspect, Indian community have strong social education belief, around 60 percent have done bachelor's degree or higher qualification which impact on growth in business and employment.Ref 30,33
According Kotler Technological environment is a Force that create new technologies, creating new product and market opportunities. Today every second or day a new technology hits the market which
Technological point of Indian Consumer In UK have hardly any in-depth studies, but Study by PSI (see Table IV).showed the individual about their ownership of a range of consumer durables, as compared to white population. In comparison Indian community has higher ownerships of some items like micro-ovens, video recorder, computer, washing machine etc than other community hence the market looks immense for specific Indian Segment.
Indian community have higher eagerness toward technology aspects specially for household purchase , also one of the studies said that Car market has began specific target towards Indian consumer due to there high tech power consumer attitude and affording capacity. In UK, most of Indian community gives first preference to buy Mercedes rather than any other car due to its royal status, which similar concept previous back in India.
As India is becoming a global hub for IT, greater increase in Internet User and IT becoming a way to cheaper communication to India most of the Indian prefer to buy computer or high tech things to get connected. According to The Guardian majority of Indian were more likely to have own mobiles phone, dvd, household durables, internet at home than white population in UK. Ref 32,33
Lifestyle segments are measured through the use of A.I.O. (Activities, Interests, and Opinions) rating statements. It measures people's activities in terms of how they live their lives; their interests on what is important to the consumer; their opinions on themselves and social/cultural issues; as well as demographic descriptors such as age, education, income, etc. Ref 36 (Plummer, 1974) Ref 11 (Brassington and Pettitt, 2003). Table 1.1 lists elements, which are included in each measurement.
Table 1.1 Lifestyle Dimensions
Stage in life cycle
(Plummer, 1974) Ref 36
Lifestyle Segmentation: Relevance to Consumer Behavior
Segmentation can be used to:
Ø Defining the target Market by going beyond demographic region.
Ø Generating New Market
Ø Positioning the product
Ø Better Communication product attributes which allows advertiser to fully communicate to all that fits in with a individual lifestyle
Ø Public Relation to market social and Political Issue
Indian Consumer have a mixed style of living in UK , they inherit eastern and western culture lifestyle, food prefer to be totally Indian , kitchen durables are western, clothing have mixed wearing, maximum style are adopted from Bollywood films style dressing, Hollywood adoption is too less , majority of people adopts the dressing , brand, product used by Actor and ,Actress of Bollywood .The Indian who are born in UK having mixed type of lifestyle western and Indian culture. Indian are more likely to interested in Cricket, Indian food, joining family business, higher studies, cultured minded, social attachment to the community, living in group or community hereby area, attending social events etc which are to seen to understand the lifestyle. Ref 31,32,33
For personality to be relevant to consumer behavior, personality needs to be combined with the rest of an individual's background. This is where psychographics comes into play as it integrates personality and positions it in a cultural and social context (Ref 21). Therefore, psychographics categories consumers by their attitude, feelings and personality. There is recognition that individuals who possess the same interests, enjoy the same activities have a similar outlook in life, therefore they should be grouped together to make it easier for marketing purposes Ref 28 (Senguder, 2003). When used in conjunction with demographics, psychographics can become a very useful tool in understanding consumers and placing them in clear and more realistic market segments Ref 28.
The PSI provides reliable and detailed data about inter and intercultural variations in income. Religion is a very significant part of life for individuals in some ethnic groups. Marketing academics and practitioners therefore need to consider the marketing implications of the interaction between religion, ethnicity and consumer behavior. Finally, the family unit is a long-standing method of segmentation in marketing and the differences in family structure of various ethnic groups suggests this issue needs to be given particular consideration.
Statt (1997J stated that “the act of consumption is an integral part of our daily existence”. Buying goods and services involves making decision.(Ref 37) Statt claimed(1997:22), “ our whole lives are the sum of the decision we have ever made” People like to believe that they make a decision as consumer rationally taking into account the economic considerations and the facts presented to them at the time. (Ref 38) Caruana & Vassallo, (2003) claimed that as “children we acquire skills and attitudes towards the marketplace in a process of consumer socialization. Many factors can influence the decision made such as family values and influence of significant other people, ethics, self esteem or self control, and elements from the service marketing mix. (Ref 37,38)
2.2 Consumer Behavior by Product, Price and Promotion
According to Sarah Maxwell study brands have a greater value to Indian community, Brand as cue to quality is particularly useful to Indian because the quality of their unbranded product varies widely in India due to which they have same thing in their mind and goes for purchase with brand quality; brand value adds particular value to India. Symbolic meaning of brands indicates that brand names generally have a higher symbolic meaning in more collectivist societies like India (Johansson, 1997) or Indian UK consumer. They have strong concept that good brand are better made and durable. But in UK Indian consumer still are more price conscious then brand because of the difference of exchange rate, people who migrated are very high price conscious because every product seems to be very expensive but still they are brand lover. But British Indian is brand valued. As per Journal Indian consumer are highly status conscious, as per a research “ Hindu women of the middle class in the householder stage of life spend a great deal of time dressing up - much more than US women do - so that they will reflect well on their family.” International brands and products are well accepted by the Indian consumer
Indian migrated which are coming from India basically from Middle Class or Upper Class which reflects the buying behavior of Indian middle class in UK, while British born Indian reflect Indian Higher Upper middle class behavior and western buying behavior. A study published in Outlook (July 23, 1997) which reported that Indian consumers have an “a very strong price-value consciousness”. In India, Bullis (1997, p. 66) states, “quality is less of a consideration than price in the purchase decision for most products.” Indian who works hard, are very price conscious regarding product, they are mostly very aware about the Product price difference with brand, as per my observation, Indian has very high habit of price comparison within stores and brand, which make seller to hard to sell the product, as this is due to “The conservative attitude of Indians toward spending may be seen in even more affluent Indians. Although they may actually spend lavishly, they are still concerned about doing it. “There is nothing,” Tully (1992, p. 101) writes, “that Hindus respect more than austerity in others, no matter how much difficulty they may find in practicing it themselves.” Different culture have different attitudes toward money and related behavior, such things are saving and spending. As per a research conducted in US , current saving of US person 0.4 while Indian has 22 percent saving rate which is reflected in Indian UK, they have strong habit of saving money, Indian their need for saving determines their consumption. According to Varma Indian are more positive towards the economizing which will result them having a more negative perception of price. Indians' perceived acceptability of other costs is significantly higher.
Promotion plays an important role to attract Indian Consumer or British Indian, as e.g. As Bollywood play an important role in buying clothes, cosmetics, fashion and their lifestyle and personality products, Indian are very keen off seeing movies and music, due to Bollywood which makes them very apart from western culture, Indian consumer are more likely to accept the product used by Bollywood actor or actress then any Hollywood or British actor. Once Indian Megastar worn A GAP Jumper with GAP logo on that, after the release of the movie the GAP jumper was so well picked up in the market that jumper has high sales and one of the successful Gap clothing. Also due to increase of Asian channel in UK market, they are still attached with the same buying behavior to back to their country. One of recent survey conducted BBC 77% Indian have Asian channel at their home ,having sky or telewest connection at home which is high percentage then British person having Sky or Telewest connection because Telewest provide better promotion and package of Asian channel. Specific target Promotion is very important to Indian or British Indian Consumer for developing a better market. Ref 31,32 ,33
This chapter outlines the strategies and tactics needed to achieve the research objectives. This chapter enables the researcher to conduct the findings and discussion chapters.
3.1 Research design
The research design the specifies the practical aspects of what needs to be done and what information has to be gather are the main objective Ref 13, 14 (Malhotra and Birks, 2000). Saunders et al (2003) refers to the research process as the ‘onion', which contains a number of layers within this onion that needs to be peeled to be able to make a decision on the type of research technique that is going to be used. The research process ‘onion' has five layers, with each layer raising specific questions: Ref 17
1. The research philosophy to be adopted
2. The research approach that flows from the research philosophy
3. The research strategy
4. Time horizons applied to the research
5. Data collection methods. Ref 17
3.2 Research Philosophy
The research philosophy is an important aspect of the research design as it depends the on myself how I think and about the development of knowledge which comes into affects as he proceed the research.
The research philosophy is an important part of the research design, because it acknowledges of the way a researcher thinks about his development of knowledge, as this ultimately affects they way the research is done which depends on positivism, interpretive and realism.
The positivist researcher takes the role as an objective analyst who makes detached interpretations about those data that have been collected in a value free manner. There is an emphasis on a highly structured methodology to facilitate replication Ref 12 (Gill and Johnson, 1997) and on quantifiable observations for statistical analysis.
Interpretists see it necessary to discover ‘the details of the situation to understand the reality or perhaps a reality working behind them.' Ref 15 (Remenyi et al, 1985). Ref 17 Saunders et al (2003) has associated this with social constructionist. Interpretists find it a necessity to study the “subjective meanings motivating people's actions and the nature of their social interaction with others.” (Saunders et al, 2003). The interpretivist's philosophy helped support some of the project, through the identification of cultural characteristics the Indian community, using personality and cultural frameworks mentioned in the Literature Review.Ref 17
The most appropriate philosophical research method to be used for this project is realism. Realism indicates, “That there are large-scale social forces and processes that affect [people's]…interpretations and behaviours” (Saunders et al, 2003), and recognises:
The philosophy helped to bring together the identification markers of the Indian community in relation with their personality and cultural characteristics.
3.3 Research Approach
As before research question and approach one has to be clear about the theory and beginning of the research, as report required a research question to obtain the objectives, the research approach, as it coincides with Robsons (1993) five sequential stages (Ref 17) (Saunders et al, 2003):
1. The us of a research in section
2. The expression of the research question through both objectives in section
3. The empirical testing of the research question shown in section
4. Analysis of the findings shown in section
5. Concluding the findings, which are shown in section 5
The concepts of the approach can also be operationalised into ethnic identity, personality and cultural characteristics, which allows for quantifiable measures. The deductive approach also allowed for the selection of a sufficient numerical size (see Sampling 3.5) for generalisation (Saunders et al, 2003). An element of the inductive approach will be used as the report is attempting to discover the characteristics of Indian's, it also allowed for the use of qualitative data and the use of a smaller sample of subjects for the focus group. Ref 17
3.4 Research Strategy
Ethnography was the bases of the research strategy, as it enabled the interpretation of “the social world the research subjects inhabit in the way in which they interpret it.” Ref 17 Ethnographic research suited this research topic as it has its roots in anthropology (Saunders et al, 2003) and the research topic has elements of social and cultural studies, therefore, all three disciplines can be interpreted as human science disciplines.
Ethnography studies were used to achieve both objectives, to assist the ethnography studies. There was the use of survey's, which allowed the use of a large sample size in a highly economical way (Saunders et al, 2003). Exploratory research will be used, as it will help “to clarify [the] understanding of a problem” (Saunders et al, 2003). Exploratory research will be used in the data collection section to:
* Search for literature
The survey method used - questionnaire allowed for standardised data, which made it easier to compare variables (Saunders et al, 2003).Ref 17
The UK Indian population was sampled to enable qualitative and quantitative research methods to be undertaken. The sampling of the Indian population In UK was an appropriate alternative to using the whole Indian population in UK as:
* It would be impractical to survey the whole population
* Cost of conducting survey at different region
* The costs would be too high
* There wouldn't be enough time to survey
* There wouldn't be enough time to analyse results.
(Saunders et al, 2003) Ref 17
Non-probability was the sampling technique used, for both qualitative and quantitative research methods, as the probability of each case being selected from the total UK Indian population was not known.
The test trial has to be taken to identify the response rate, problem related to that, no of days for response, questionnaire format, and language used is appropriate and comfortable for consumer.
Test Questionnaire send to around 5 consumers with 5 questions which could give some result on that Questionnaire.
The non probability sampling technique is used homogenously to gather rich information respondent (Saunders et al, 2003). The questionnaire is send to people which are Indian and contacted randomly, which are split into age groups, splitter into gender, married/unmarried, origin and many other factor which will classified and finding will be given by the output of the questionnaire and analysis of the questionnaire. Ref 17
Tables to be given under after the survey analysis
Tables to make on male/female
Buying from supermarket/specialist store
4 Data Collection
4.1.1 Secondary data
Secondary data was used in assisting in the research process, as there were enormous savings on resources, such as time and money (Saunders et al, 2003 cites from: Ghauri et al, 2002). The data allowed for a triangulation of different data collection methods (Saunders et al, 2003), as well as it being easily available to the general public. Ref 17
The secondary data obtained included a number of qualitative data. Saunders et al (2003) identifies three main sub-groups of secondary data: documentary data, surveyed-based data, and those compiled from multiple sources. Ref 17
Documentary data - used were written documents such as: books, journals, magazine articles and newspapers. They provided useful qualitative data on ethnic groups, UK Indians Pakistani and South Asian Population, personality and cultural theories, which helped to achieve both objectives.
Survey-based secondary data helped to understand the lifestyle, personality, culture, social factor within the Indian Community their buying capacity.
Locating secondary data
Secondary data was taken from reference books, journal from ABI-INFORM, Blackwell Synergy, Emerald etc, Using electronic journal resource from Napier University, search engines likes google.com, UK Government Statistics ,
To ascertain whether the secondary data that is needed was available, there was a thorough examination of the references in journals and books that apply to information relating to the objectives.
Evaluating secondary data sources
The evaluation of secondary data was taken by measuring the validation of data; examining other researcher problem and limitation with the view of ethnic group, ensure reliability, validity, journal obtained from Electronic services.
Costs and benefits - there was an identification of the financial and time costs obtaining data. There will also need to be an analysis of whether the data will answer the objectives.
4.1.2 Collecting primary data: Questionnaire
Questionnaire was send to the Indian Community by questionnaire through email which can target consumer which would be helpful to cover geographically.
Reliability: Personal Email Questionnaire
The email questionnaire is easy to send different people at same time, sending electronic information in a faster way, detailed information and information gathering, exact information translated , non times sensitive information not requiring an immediate response, times consuming and less man power when you don't even bother to communicate via other means, less obtrusive, social event .
Limitation: Ignoring the non response, failing to assess the reliability of the survey, treating perception as objective measure, failing to ask the entire question, ignoring some of the result.
* Validity: According to Saunders et al (2003) “validity is concerned with whether the findings are really about what they appear to be about.” Respondents are surveyed through email for both test from for quantitvative survey,
* Sample Spreaded Geographically
* Control Survey Easier
* Every Person can have their right view rathe than getting influence of other group and othe e group therefore covers a wider range of opinion (Ref 40)
* Responses seemed to be spontaneous and through
* Dealt with delicate issues better (eg pornography)
* Fast turnaround of results (within 24 hours)
* Responses more representative of participants. Indeed virtually all express an opinion about each topic.
* Discussion more focused to objectives of research
* Participants prefer them as they are less hassle to take part in (Ref 40)
22.214.171.124 Collecting primary data: questionnaire
The proposal methodology recommended the use of a questionnaire; questionnaire helps to give the explanatory side of the research (Saunders et al, 2003) Ref 17
The questionnaire (Appendix A2) were self made, self administered which require to interview and send through email with collection and follow up. The concept is done on in-depth analysis of theoretical framework and objective oriented on response of the Indian Community in UK. The response and answer variable are analyzed on the concept of Statistical analysis of SPSS theory, as SPSS software is not used thoroughly.
The questionnaires format took the form of two open ended questions and option variable which used for exploratory research from consumer readership. Thirty questions were open to close ended where most of the them option and rated formatted. The most of question are Likerty Style scale question where respondents have rate and give priority to the options (Saunders et al, 2003). Ref 17
Reliability of the questionnaire was an internal consistency test(Saunders t al, 2003), questionnaire are made in different part by using the theory of Cronbach's alpha coefficient scale, question are splinted into subgroups , where first subgroup being personal information , second subgroup buying market, third buying behaviors behavior and attraction towards superstore and specialist store, fourth group focus on clothing and fashion and fifth last group show consumer behavior for entertainment means, while little focus is given on technology aspect where outcome are justified to consumer behavior.(Ref 17) Questionnaires are prepared in plain English language while in personal interview question will be asked in English.
To test the validity of the questionnaire, I have taken test analysis trial questionnaire survey with few customers to know the problem with the questionnaire and understanding of language to get better output to check the readability, English accuracy and easy language understanding (Saunders et al, 2003). Ref 17
Questionnaire: Total 28 questionnaire were prepared to carry out the research on consumer buying behaviors of Indian Community in UK which are shown in appendix (1.),
4.1.3 Analyzing data
126.96.36.199.1 Analysing data: qualitative data
The qualitative research analyse data poses quite a challenge to the researcher, because of the huge material data gathered from in-depth interview, observation, secondary data, questionnaire.(ref 38), there are different method to approach which are
1. Familiarisation of the data: It gives an overview of the depth and diversity of the material and identification of recurring themes and issues (Ref 38)
2. Creating a thematic framework: Identified key themes at the familiarisation stage are in detailed viewed to setting up a thematic framework index, which are carefully read and grounded in original accounts and framework.
Applying to codes to the data, As per Matthew and Hobberman alphabetical codes are to use which keeps the research close to the data.
4. Charting Distilled data summaries can be charted according to coded text which gives the picture of the data.
5. mapping and interpretation(Ref 38)
It processes the analysing qualitative data, interpreting the data and making assertions which review chart and research notes.
These are versions of qualitative data; therefore, there is a need to conduct a qualitative analysis, as qualitative data is based on meanings expressed through words, which leads collection results to be in non-standard data requiring classification into categories. The analysis to was conducted through the use of conceptualisation (Saunders et al, 2003), because of the change to the methodology approach there was a change from three objectives to two objectives (see section 1.1).Ref 17
188.8.131.52.2 Analysing data: quantitative data and Findings
The data used was quantified as all the values had numerical measures, as they are more precise than categorical measures, as each data has been assigned either a nominal or ordinal position on the numerical scale (Ref 17). To do effectively business must collect numerical data, store it and interrogate it , The analysis begin with basic statistical summary, frequencies, bar charts and numerical measures and then tables are revised and formatted in chart formation ( Ref 38)). The whole unit compromise of Data sheet of numerical values and graphical representation of the output by bar chart. (Ref 38)
Analysis has been conducted by Excel which a not very flexible by enough to analyze small scale project and better representation where majority entities are variables. Pivot tables are used to represent the data.
Around 70 peoples where send the questionnaire by email of different geographically of which 40 responded replied to the questionnaire, which was taken into data analysis, the entire questionnaire where complied and format together and put the output in different section by excel sheet by personal information, specialist and superstore, technology and clothing accessories. (Data sheet are attached in appendix) which are further analysis by gender and group wise by behavior option ticked. (Ref 38)
Total analysis was carried by different section, first data where inputted in the excel sheet by Gender, Age Group, Occupation, Shopping frequency, Location preference by the consumer which given in appendix sheet(1). Whereas second section data input of Specialist and Supermarket are fended and output are taken out below by percentage format shown in sheet 2(appendix sheet store) while third option categories of clothing behaviour shown in sheet 3(appendix sheet clothing), fourth option categories of Technology and Entertainment shown in sheet 4(technology and entertainment sheet).
Further above data are numerical analyzed and output mathematical in percentage format ,which are further studied and represented in graphical way which will show below in brief below.
5. Finding And Analysis
The output of the analysis are given as below, consumer buying behaviour research analysis is shown by chart in percentage format from sheet 1 appendix,
1. Gender survey in research carried out
Total consumer taken for survey by responded are 40 from 70 , where total 67.5 percent are Male and 32.5 consumer are female while further it has been classified by age group which shown in age group which shown below(Chart 2).
When comparing both the graph and taking analysis certain finding shows that's marketer needs to understand the wider market of Indian consumer in UK which are potential and specific segment to be target which cannot be ignored.
The above data finding represents that 65 percent strongly agree and 25 agree with product type in specialist store in compare to 45 percent strongly agree and 40 percent agree in superstore so majority people still buys majority of product from specialist store which can be an opportunity for supermarket to drag towards them by targeting, while majority believes that superstore have good price than specialist store (shown in fig 5,6) so its easy to shift them towards superstore, where majority agrees superstore provides better promotion than specialist store which offer very few offer, where range of product specialist store have strong Indian range of product which attracts them by 92.5 combination of strongly agree and agreed behaviour of specialist store, where in super store has same with huge range of product rather than Indian, if we speak of quality superstore ahead specialist store by providing better quality(shown in fig 5,6). On specially surveyed about Indian product in superstore, around 45 percent strongly disagree with Indian product availability in superstore, where 22 percent feel no thing about that only 35 percent believes are satisfied but somehow they also shop in specialist store which show poor understanding of consumer behaviour of Indian community by superstore giants which relates too loss of huge market. On of the finding shown in appendix (graph 4) which related that 72.5 percent Indian consumer were not related or attached due to community store but they purchased that product due to customer need and product type available which was not available in superstore.
On studying further on research survey, Indian consumer are very high concern regarding purchasing the product because of culture belief, majority of Indian are Hindu and Sikh which do not eat beef , any product contain beef or flesh of cow are prohibited to eat by their religion, where majority likes to remain vegetarian and they follow strictly. Hence they survey taken gives out about their product behaviour, majority of Indian consumer are branded attached, where 25 percent are doesn't matter are movable with brand, where more than 72 percent product strongly believes product packaging should describe it is vegetarian or not which makes them easy to buy. Around 25 and 42.5 percent strongly agree, agree respectively believes in packaging of product and around 55 and 40 percent strong agree and agree packaging should contain display all the intergradient present in the product which can help to check the product contain whether they vegetarian or not. Like in UK ,fish and eggs count as vegetarian product while Indian doesn't agree on that, any thing made up of living thing except plants are non vegetarian against there religion to eat. (Ref Appendix Dataoutput.xls Sheet 2) where shown in the appendix graph 1and 2.
Today many superstore gives ready to eat Indian food, by the finding certain things came forward that around 35 percent Indian buyer don't prefer Ready to eat food due to many reason, only 32.5 percent preferred the ready to eat food available, zero percent believed in most preferred whereas vice versa 75 and 25 most preferred , preferred respectively preferred Home Made food, which giving great data, which shows that superstore doesn't still lacks proper understanding of Indian consumer, where majority people prepares food at home and bring majority food stuff from specialist store (shown in appendix graph 1 & 2)
On taking further research on Indian Consumer Behaviour specially on clothing market which is one of huge market in UK, where Indian have great hobbies to shopping and concerned much, but there are certain areas where there behaviour vary from the White Community of UK, majority British community are directly influenced by Hollywood dressing and culture while Indian community are influence by Indian Film Industry Bollywood and Hollywood which defers them from British buying Behaviour.
According to research around 35 and 27.5 strong agree, somewhat respectively are willing to buy fashion clothes, while 77.5 Indian consumer behaviour in UK likes to buy fashion follower or follow fashion trends but major attention result where majority of Indian community consumer are influence by Bollywood dressing style with 32.5 and 37.5 strongly and somewhat are influenced to Bollywood where others are different other trend. So its makes caution for the marketer to know the latest trends Indian trends or fashion market to attract the Indian consumer in UK. Ref 31,32,33
Clothing Buying behaviour is further classified below with product type, price, promotion, quality, range of product and Indian style product which has been shown in the below .
where 52 percent Indian consumer strongly agree as product type for buying clothes, where 47.5 as price importance for purchasing, while 55 percent strongly believes in promotion, and 62.5 percent agree on range of product and only 57.5 believes in quality of product for buying clothes. Hence data above shows that's Indian consumer in UK needs to study through to satisfy their need which has huge market in returns.
Further conducting the research on technology, entertainment and mobile phone user buying behaviour we find that Indian are more attracted towards TV, Technology buying due to presence of Indian own Film Industry which world biggest Film making in the world which not only bring toward TV viewer through films but due to hundreds on channel Indian channel and where some of them are broadcast in UK By Asian channel. Research carried out give strange output, majority of Indian community in UK used to prefer to see Telewest by 60, while 10 percent have Sky connection only 5 percent were interest in BBC channel where 25 have none of the connection at home to view.
On further studying the behaviour of Television viewing behaviour rating which sh
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