The purposes of this study are to empirically test the differences among three major cities in India by their affluence level, selected factors related to consumer purchase behaviors, and to examine the regional differences in purchase behaviors.
A total of 652 usable data were collected from consumers of age 18 years or older residing in Mumbai, New Delhi, and Bangalore, India via mall intercept surveys.
Overall, the findings confirmed that affluence level in each region explains the variances in region's values, attitudes, lifestyles, and consumption patterns of foreign branded goods. That is, Mumbai (i.e. the highest GDP among the three cities) showed individualistic characteristics (i.e. lower levels of face saving and group conformity). Attitude toward economizing was found to be inversely related to a city's affluence level with Bangalore (least affluent) having the highest attitude toward economizing and Mumbai (most affluent) having the lowest attitude toward economizing. Mumbai and New Delhi consumers purchased significantly more foreign jeans than Bangalore consumers. In purchasing foreign brand goods, social attributes (i.e. brand name and latest fashion) were more prominent in Bangalore consumers who are the most collectivistic in this study.
The findings of this study convey a clear message: assuming Indian consumers are the same across regions is a mistake and a localization approach should be considered to market to each region.
This study is one of the first attempts to examine regional differences in the Indian market. This study adds empirical evidence that differing economic affluence levels are critical in estimating consumption differences by region.
