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The Buying Behaviour of Consumer in India

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The Buying Behaviour of Consumer in India essay
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In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted in a substantial increase in the purchasing power of the rural communities. The buying behavior of the consumer has become a great necessity in the modern marketing system because success or failure ultimately depends upon the buying behavior of the target customers considered individually or a group. The character, behaviour, and attitude of the consumer are the important dimensions in the decision-making process. It has now become the central topic of modern marketing since the ultimate aim of marketing is consumer satisfaction and profit making. As rapid socio-economic changes sweep across India, the country is witnessing the creation of many new markets and a further expansion of the existing ones. With over 300 million people moving up from the category of rural poor to rural lower middle class between 2005 and 2025, rural consumption levels are expected to rise to current urban levels by 2017. India is the second largest consumer market in the world.

The Indian consumer profile has been developed and changed in terms of education, income, occupation, and reference group and media habits. The consumer buying preferences are rapidly changing and moving towards high-end technology products with acculturation. Products which were once considered luxury items have become a necessity because of the changing lifestyle and rising income levels. With the growth in disposable incomes, the demand for high-end products such as television, washing machine, refrigerator, and air conditioners has increased considerably. The Indian consumer durables market has undergone a major transformation since the liberalization process, initiated in 1991. The market size, product penetration, the variety and technology of products sold, have all experienced a quantum leap. Improved product choice and decline in real prices, matched by increased consumer incomes have driven the market growth rate to dizzy heights. Now brands are becoming the most valuable assets that businesses can possess.

The marketers are facing a lot of challenges; regarding differentiation which is valued by the customers. The aim of marketing is to meet and satisfy the wants of consumers‘ needs and wants. This field deals with the behavior of how individuals, groups, and organizations select buy use or dispose of goods, service ideas or experience to satisfy their needs and desires.

Consumer buying behavior

The consumer buying behavior can be defined as the way in which consumers or buyers of goods and services tend to react or behave when purchasing products that they like. Buyers tend to exhibit different types of buying behavior when they are in the process of purchasing goods and services and the behaviors witnessed are influenced by the type of product he/she wants to buy. Consumer buying behaviors involve a long process where the buyer has to identify the product, study well its features, the pros and the cons are lastly deciding whether to purchase it or not. To understand more on this let us give a definition to each of the different types of consumer buying behavior that are associated with different buyers and consumers of products.

Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and dispose of ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.

Characteristics of Consumer Behaviour

  • Buyer behavior comprises mental and physical activates of a buyer when he wants to buy and service to satisfy his needs.
  • Buyer behavior is very complex and dynamic also.
  • It includes both visible and invisible of the buyer. The visible activates refer to physical activity like actually going to the marketplace, buying the product and consuming them. The invisible activates, on the other hand, refer to mental activates like thinking about the product, deciding to buy or not to buy that product, to buy one brand instead of another etc.
  • It is constantly changing requiring certain adjustment. The marketing management which fails to make such adjustments would certainly lose its market.

An individual buying behavior is also influenced by internal factors such as needs, habits, instincts, motives, attitudes etc and also by outside or environmental factors such as family, social, groups, culture, status, positions, economic and business conditions. In a narrow sense, consumer behavior is the act of a consumer when he is engaged in buying and consuming a good or a service.

Consumer durable goods

Consumer durable goods refer to various devices used in a household kitchen to reduce manual human labor content and to remove the drudgery in working place and to make household activities speedy, tidy and enjoyable. There are, in the present day, a large number and a variety of such household appliances like Air conditioners, Refrigerator, Television and Washing machine. The share of gold ornaments in durables expenditure was estimated at nearly 24% in rural India compared to about 20% in urban India. The refrigerator had a share of over 21% in urban India, compared to 9% in rural India. The share of motorized two-wheelers was about 12-14% in both sectors.

Post Purchase Behaviour

Post Purchase behavior refers to the behavior of a consumer after his commitment to a product has been made. It originates out of consumer experience regarding the use of the product and is indicated in terms of satisfaction. This behavior is reflected in repeat purchases or abstinence from further purchase. Post Purchase behavior refers to that behavior exhibited after the purchase decision. The goal of consumers’ decision system lies in consumption and consumption occurs during the post-purchase phase. Thus purchases are only means to an end the end being the attainment of benefits from consuming the product or service. From a marketers perspective, long-term success flows from having consumers experience satisfaction during the post-purchase phase. The post-purchase processes account for two major activities, consumption and disposition.

Trashing, saving and selling the product are the three major options of product disposition.

Need for the study

The country is witnessing the creation of many new markets and a further expansion of the existing ones. With over 500 million people moving up from the category of rural poor to rural lower middle class between 2005 and 2015, rural consumption levels are expected to rise to current urban levels by 2018. A combination of consumer depends upon lifestyles; income, product awareness, and pricing have been instrumental in changing the pattern and amount of consumer expenditure leading to the strong growth of consumer durables industry. Due to demographics; socio-economic and cultural status of impact the buying behavior of consumers.

Research gap in the literature

The literature review is a significant step in each and every research process. Review of earlier studies discloses the works and studies done by individual researchers and institutions help to establish further the need for the study. The various studies related to consumer behavior, rural market and the urban market have been conducted by different social scientists at micro as well as macro level in India and abroad. The present study was covered the Consumer Behavior towards consumer durable goods. But no study was made in purchase Behavior towards consumer durable goods. James U. Mcneal, Chyon-Yeh, (2016) have searched that examining ―Tolerance for Unethical Consumer Behaviour Provides a Key Insight to how People Behave as Consumers Worldwide.

In this study, consumer reactions to unethical consumer behavior scenarios are investigated using sample data from Austria, Brunei, France, Hong Kong, the UK, and the USA. Nationality is found to be a significant predictor of how consumers view various questionable behaviors. Gender is not a significant predictor, while age and religious affiliation are found to be significant predictors of consumer ethical perceptions. Paul Harrison and Robin Shaw, (2014) have contributed ―Consumer Satisfaction and Post-Purchase Intentions. An Exploratory Study of Museum Visitors. This paper examines the relationship between consumer satisfaction and subsequent intentions in the museum context as well as the moderating influence of demographic characteristics such as gender, age, and education in that relationship. The relationship between satisfaction and a range of service elements, overall satisfaction with the experience and intentions was investigated.

Museum marketers can profit by examining the ‘Value chain” of museum experience outlined in the model presented, especially the greater likelihood of consumers recommending the experience to others than making a repeat visit themselves, and by investigating segment differences beyond those reported here. Sudarshan R. and Sridhar, (2013) have conducted ―Impact of Consumer Involvement of Buying Decision – A Conceptual Frame-Work. Consumer involvement refers to the intensity of interest with which consumers approach the marketplace. It is related to the consumers‘ values and self-concept which influence the degree of personal importance ascribed to a product or situation consumer involvement varies Krishna across different individuals, product, brands, and situations. Alet C. Erasmus, Meriam M. (2012) has focused on The Paradox of Progress: Inexperienced Consumers‘ Choice of Major Household Appliances. The results supported the initial notion that limited consumer socialization may result in, and even necessitate inexperienced consumers‘ reliance on surrogate indicators of quality, such as price, brand name and store image, as compensation for lack of appropriate product knowledge, unfortunately, the use of surrogate indicators of quality does not necessarily imply informed, responsible buyer behaviour. Christopher P. Blocker, Daniel J. Flint, (2007) has analyzed that ―The Relationship between Satisfaction, Loyalty and Buying Intention Perceived by Spanish Consumers. Scale development was based on the review of the most relevant literature regarding food marketing and agribusiness. Data were collected through a structured questionnaire.

A structural equations model was applied to analyze the relationships among consumer satisfaction, loyalty and buying intention. The results show that a higher satisfaction leads to greater levels of loyalty and buying intention. The scope of the study The study aims at focusing study on purchase behavior of consumer durable goods in Palacode Taluk. Researcher limits its scope to selected consumer durables such as Air conditioners, Refrigerator, Television and Washing machine. Hence, it is necessary to concentrate on consumers‘ perception, consumers‘ pre-purchase and post-purchase behavioral activities. There are many sides of consumer behavior that possibly need elaboration and however, this study concentrates on individual consumer purchase behavior regarding the purchase of consumer durable goods already stated the consumer. There have been less focused studies analyzing the consumer durable market in the background of changing scenario of rural and urban markets. And there has been less attentiveness on consumer behavior studies.

Problems of the study

The study of a behavioral aspect of consumers is of great importance for marketers and this knowledge is applied to find out the consumers wants and needs. The study of consumer behavior helps every common man in all its practical sense. In a competitive environment, one cannot trust a product on the consumers. The reason for studying consumer behavior is to find out the role it plays in the lives of the much-consuming public at large and that as the institutions involved in the production and marketing of different types of consumable articles, equipment, goods, and services in general. But for such studies, it would be difficult to ascertain the exact needs of consumers. The consumer has also to take a decision about when and where to buy the products that he needs or wants, how much the consumer wants to spend on it, or how much the consumer can afford to and how the consumer will pay for it. Some purchase decisions are routines and may not require these considerations. To solve the problems of consumers and marketers, there must be continuous studies in the field of consumer buying behaviors.

Few types of research have been done in India on the impact of consumer buying behavior and brand equity on consumer durables.

Objectives of the study

  • To study the buying behavior of selected consumer durables.
  • To study the effect of brand awareness and its importance in decision making.


The data for the purpose of the present study have been collected through primary and Secondary data.

Primary data

Primary data has been collected through a structured questionnaire from 50 respondents in Palacode Taluk.

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