Attitude Towards Foreign and Domestic Products in India and Its Effect on Changing Buying Preferencesattitude Towards Foreign and Domestic Products in India and Its Effect on Changing Buying Preferences

De Mooij and Hofstede (2002) define culture by eight dimensions. Asian cultures are associated with higher levels of uncertainty avoidance (UA) (see Appendix 1) compared to individualistic cultures, therefore these Asian cultures are more attracted to products with a lower risk (Moss & Vinten, 2001; Samli, 1995; Shannon, 2005). Furthermore, there is a strong belief that Asian consumers have a strong preference for NBs over PLs (Ahuvia & Wong, 1998; Brady et al., 2003; De Mooij & Hofstede, 2002). According to Batra and Sinha (2000) consumers who relate higher prices with higher quality are less attracted by PLs. According to De Mooij and Hofstede (2002) PLs are more frequent in individualistic cultures such as the Netherlands, than collectivist cultures such as in China. They presented two specific reasons for collectivist (Asian) nations to choose NBs over PLs, namely that NBs lead to more status, and the preference for long-term relationships and so for well-known NBs. Therefore, collectivistic cultures are more risk averse and tend to value brand names. They also value the perceived link between price and quality, which negatively affects the image of PLs in such countries. On the other hand, individualistic cultures are supposed

• Consumer Behavior: In different countries consumers will respond differently to advertising, product positioning and the kind of distribution. Also the willingness to spend a certain amount of the income for cosmetics differs among countries. Another important factor is the consumer’s willingness to switch the brand.

Additionally, the increasing overseas migration from Asia (Australian government 2009) will have an impact on consumer behaviour. These demographic groups have higher spending patterns and higher preference for branded products, and hence potentially increasing the market for high quality products (Australian Government 2009).

In an article called Cultural Factor Highly Influences On Consumers & Their Buying Behavior – In Indian Context, the basic characteristics of culture are described:

companies need to have a plan to create demand for their products. Consumer ethnocentrism can be moderated by aggressive marketing tactics. Western companies are trying to get into emerging markets and Russia, a former communist country, is a target for these companies. Consumer ethnocentrism in Russia has been a predominant barrier to success of foreign products in Russia and in Russia some distinguish between domestic products that are described as in-group products and foreign products that are described as out-group products (Puzakova, Kwak, & Andras, 2010). Research shows that the Russians view foreign products of superior quality, but remain ethnocentric in their consumer behavior (Puzakova, Kwak, & Andras, 2010). Using marketing communications the negative attitudes that are present with buying foreign products can be alleviated. The advertising efforts can be used to explore more moderate behavioral consequences of consumer ethnocentrism with initial contact being met with anxiety, but more subsequent positive contacts leading to comfort (Puzakova, Kwak, & Andras, 2010). The U.S. firm attempting to tap the large Russian consumer market needs to have a strategic marketing

Nations, like the people who inhabit them, are all different. Some, like the United States, are at the forefront of technology and development. Others exist as third world nations, where even the most basic necessities are hard to come by. And then there are those which are in the middle, such as India. In the past 20 years, India has grown in the eyes of the global community from a rural, developing nation to a burgeoning global marketing hub. While India had much guidance from the United States and other global powers, the country has still chosen to follow its own path of business and marketing development. This paper is designed

Company has to make the marketing strategies for making the product success in the market. And those general strategies would be effecting in different context throughout the company. To enter into the global market company has to use different signs, symbols, shape, slogans, by which is easily understandable to that country because if the product is not easily memorable to customers then they will easily move to the substitute product and then the product will have a chance for failure in that market. So before entering into the global market company has to research all the taste and preference of that country because to enter in to the new market it wants a very huge expense.

Our country is extremely diverse. We are reminded this every day, especially if we live in metropolitan areas. In Dallas, for instance, it is quite common to be in constant contact with individuals from all corners of the world. Marketers, even in the United States, have to understand how to navigate the different cultural, religious, and social differences when selling products. This challenge is magnified when a marketing team is asked to sell a product abroad. In this type of situation, the social, cultural, and religious challenges are magnified, and what sells well here, might not work near as well in another

And also in some cases going to the extreme in stating that parents are slowly killing their children with feeding them specific foods. This is a huge factor that has brought about changes in the way consumers purchase and behaviour. Other factors are current events, such as when the 9/11 incident occurred; a lot of patriotic Americans bought and consumed American made products to help the American economy grow. The American government also put out campaigns to promote American produced and made products to the public to change the views of consumer purchases. Just another example of factors that support change in consumer behaviours.

There are several cultural factors that will be affected by Wal-Mart’s entrance into India. If a giant corporate retail company, such as Wal-Mart, enters India it will have a direct impact on millions of farmers and people employed in small businesses. India is a land of retail democracy with hundreds of thousands of bazaars located across the country. In India, main streets are called bazaars as they are lively, vibrant and a source of livelihood for millions of people. Many citizens believe it is part of Indian culture to have crowded lanes with people selling shoes, toys, clothes, and much more. There are cafe owners making coffee and frying potatoes for people on the road sides. Moreover,

The tastes and preferences of the current generation are changing rapidly. The current generation does not mind paying extra for better facilities and ambience. Another major factor that has led to increased consumerism is the growth of credit culture in India. The Indian consumer does not feel shy to purchase products on credit and pay tomorrow for what they use or buy today. This tendency has led to a tremendous increase in purchase of homes, cars, two-wheelers and consumer goods. The market for luxury products in India is also climbing at an astonishing rate as compared to a decade ago when it was almost negligible. The reason behind this is that the purchasing power of people of India is rising very steeply. The Indian consumer today is highly aware about the product, price, quality and the options available with him. The purchasing is done by keeping all these factors in mind. Today, price is not the only consideration as it was a few years back when prices played a major role in purchasing. Marketers are trying hard to capture this ever increasing Indian middle class as they form the bulk of Indian consumers. CHANGES IN CONSUMER BEHAVIOUR OF INDIA 5

Purchase intention is constructed from consumers’ attitudes and external factors, where attitudes are multiplex consisting of three elements which are cognitive component or knowledge, affective component or emotion, and conative component motivating consumers toward behaviour or response (Adcock et al., 2001). Purchase intention is a significant factor for predicting consumer behaviour (Fishbein and Ajzen, 1975). Also, purchase it can measure the possibility of consumers’ purchases. The level of consumers’ willingness to buy products directly depends on their purchase intention (Schiffman and Kanuk, 2000). Thus, it is an important concept in marketing. Khan et al. (2012) stated that consumers consider many different criteria when they would like to buy products, such as price, quality, product features, brand and convenience. According to previous research, it is found that purchase intention has many different definitions.

The direct relation and effect of cosmopolitanism on foreign product purchase behavior is an aspect which needs to be studied for a better insight of it in India. Thus measuring these variables and study the effects of cosmopolitanism has a scope in International marketing research.

Several scholars have researched the process of how COO effects impact on consumer’s perceptions, product evaluations and purchase intensions. It can be explained by the theory of ‘Halo Effect’; ‘Summary Construct’ and ‘Combined Halo and Summary Construct’.

Thompson stated that from a social and cultural point of view to examine the consumption choices will benefit the country’s economy (Thompson, 2005). Therefore the understanding of Indonesian consumer’s behavior is the priority of any investment.