According to renowned management expert Professor Philip Kotler, marketing is basically need-driven. Thus, marketers try to find out the latent needs of the consumers and satisfy them accordingly through suitable products or services. However, in today's world of consumerism and huge disposable incomes, overspending has became a common global phenomenon. Consumers buy more for status and style, rather than need. The new generation consumers are not driven by satisfaction alone, they want more. This article discusses this issue from all angles.
It has been observed that consumer's income has a great impact on his purchase decision. When a consumer chooses a product, he does not look for satisfaction alone and looks for something beyond. In the Indian society, the average population are mostly from middle or low middle class groups while a small segment belongs to the rich creamy layer. These different strata of the society have different kinds of mindset towards their purchase planning.
When PV Narasimha Rao became the Prime Minister in 1991 and gave the country's economic power to Dr. Manmohan Singh, it ushered a new breakthrough in Indian economy. At the onset of liberalization in India, people started feeling the benefits of open economy. People of India saw robust economic growth—in terms of employment, industrial output, foreign exchange reserve, inflow of foreign money, etc. In the second and third phases of liberalization, people of India saw a revolution in the telecom sector, retail sector, insurance sector, global mergers and acquisitions, etc. |
