A Means-End Approach To Understanding Consumer

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A Means-End Approach To Understanding Consumer-Driven Innovation Hans Rask Jensen *

Abstract Product and process innovation in a company can be driven by many different factors and stakeholder interests. If innovation is driven by the consumers, then it is based on their desires, knowledge and postpurchase experiences. When asked, consumers are able to identify which product attributes they do not appreciate, but they are normally not able to specify which product attributes they want instead. If they quite exceptionally are, then they will typically refer to product attributes that are well-known and mainstream in the market place, and knowledge about such attributes will hardly be useful for companies seeking sustainable competitive advantages. However, consumers can tell companies many other important things of relevance for the improvement of customer offerings and it is the main purpose of this article to highlight what they in fact can tell, and to relate this knowledge to innovation management. Keywords Means-end chain, value production, customer value, laddering, the grand tour, innovation management, sustainable competitive advantages, expectation-conformation model, satisfaction, dissatisfaction. Introduction Consumers are users of products and services that they have purchased from companies. As users they have desires and they acquire knowledge and experience that should be used by companies to a larger extent in order to improve their customer offerings. When asked, consumers are able to tell which product attributes they do not appreciate, but they are normally not able to tell which product attributes they want to have instead. If they are, they will typically refer to product attributes that are well-known and mainstream in the market place and knowledge about such attributes will hardly be useful for companies seeking sustainable competitive advantages. However, consumers can tell many other important things of relevance to companies wishing to improve their products and services, and it is the main purpose of this paper to highlight what consumers in fact can tell, and to relate this knowledge to innovation strategy. First the concepts user-driven innovation and innovation management will be introduced followed by an explanation of the consumers´ interpretation of customer offerings and a description of two techniques that can be used to measure this interpretation. Then it will be explained what is meant by value production and customer value in consumer markets, and the relevance of customer value measures for innovation strategy will be discussed. Finally, the relevance of customer satisfaction measures for companies that want to improve their customer offerings will be discussed, and this discussion will be followed by a general conclusion. User-driven Innovation According to Evans, Moutinho & van Raaij (1996:70) an innovation is anything perceived as being new in a market place. Consequently, if anything in fact is an innovation, it depends on how actual and potential customers perceive it. *

Professor,University of Southern Denmark

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To define concepts by means of customer perceptions is quite common in marketing reflecting the fact that there would be no company, no managers and no workers without customers. This observation probably made Peter Drucker defines marketing as "the whole business seen from the point of view of its final result, that is, seen from the point of view of its customers" (Drucker, 1954:36). In marketing theory as well as in marketing practice the customer represents the final ultimate yardstick for outlining, evaluating and implementing competitive strategy. Resources and skills are only valuable in a company to the extent that they are used to produce something that customers in target markets are able and willing to pay for. What competitors do and are planning to do is, of course, of much importance for strategic analysis and decision-making, but they are not and they will never be customers. Innovation in a company can be driven by many different factors, often in combination. Among the most important macro environmental factors are changes in the economy, cultural and social changes, changes in the natural or physical environment and technological as well as political and legal changes. Economic changes caused by the present financial crises may, e.g., invite companies to develop cheaper products variants. A market development strategy often implies product adjustment to customers with different cultural values, tastes, customs, traditions and behaviours. Changes in prices for oil and other natural resources may result in product modifications, and laws passed in order to counteract the climate change may make it possible and profitable for companies to find new solutions to well-known global problems. Among the most important micro environmental factors are changes among the suppliers, the distributors, the competitors or the customers. Finally, among the most important internal factors are changes in skills and resources within the company. New skills based on training of human resources and the acquisition of new technology may open the doors for product and process improvements to the benefit of customers in target markets. However, innovation can also be driven by the users of products and services. They all have desires and goals that guide their activities as users, and they all acquire knowledge and experience as users reflecting the extent to which products and services have been able to solve the problems they were expected to solve. Such users can be identified both inside and outside the company. Internal users belong to different levels of authority and are guided by goals specified more or less by the management of the company. However, they also have desires reflecting their individual and social involvement in product use. They acquire experience and knowledge when they are using products and services in order to do their jobs, and these products and services may come from the same department, other departments within the company, other companies belonging to the same corporation or business contacts outside the corporation. Knowledge about such user experiences is therefore interesting not only for innovation managers within the company or corporation, but also for stakeholders outside the company that want to improve their supply. Among the most important external users are the final consumers, business users and institutional users. Business users and institutional users are organisations that both have internal and external users. The final consumers are using products and services in order to achieve some self-relevant goals in private households. Business users are organizations using products or services in order to achieve commercial goals. Institutional users are public organisations using product and services in order to achieve goals that are more or less specified by the political system. A company involved in business-to-business relations or in business-to-public institution relations is, of course, interested in getting knowledge of relevant internal user experiences in such relations, because this knowledge is decisive for the improvement of the supply and the achievement of sustainable competitive advantages. However, it is also important for such a company to seek knowledge about relevant external user desires and experiences because the demand of products and services in business or institutional markets is derived from the demand of the final consumers.

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Managing User-driven Innovation The pivotal role of innovation management in a company is to secure the improvement of products and services supplied to target markets in such a way that it contributes to the development and the maintenance of sustainable competitive advantages (Drucker, 2003; Porter 1996; Berry et al., 2006). All companies have certain sources of advantage. Some of these sources are decisive for the improvement of products and services, like an innovative organizational culture, market orientation, creativity and the support of top management to organizational change. They can therefore be called core innovation resources and skills. Such resources and skills have to be superior meaning that they have to be better than similar resources and skills in competing companies, because this means superior performance outcomes. Therefore a company has to invest in such resources and skills continuously in order to make and to keep them superior (Day & Wensley, 1988). Information of relevant user desires and user experiences should therefore contribute to the development and the maintenance of superior skills and resources. The performance outcomes of using such skills and resources should be satisfaction among customers in target markets. Satisfaction normally results in loyalty. Loyalty means repeat purchases that are reflected in market shares, and increasing market shares normally imply increasing profitability. However, performance outcomes are dependent on positional advantages that according to Porter should be either superior customer value or lower relative costs (Porter 1980:43). Otherwise the company will be stuck in the middle, Porter argues. However, forcing managers to regard strategic choice as one of either low costs or differentiation restricts their possibilities significantly. Strategies of most firms represent a trade-off between low costs and other forms of differentiation. Moreover, greater differentiation is not necessarily achieved through substantial increases in costs. Current practices indicate that improved quality can decrease rather than increase costs, and many firms have been successful in achieving both low costs and differentiated positions in their markets. Therefore it is not only possible but also desirable for firms to be oriented towards both low costs and differentiation (Fulmer & Goodwin, 1988). Firms trying to do so are not necessarily stuck in the middle (Porter, 1980:43). Only one company in an industry can differentiate itself as a cost leader. The remaining firms must therefore find other ways to position themselves taking into account market perceptions of both the get and the give components of their supply (Zeithaml, 1988). Consumer-driven Innovation Consumer-driven innovation is an activity taking place in companies that are serving the final consumers. It is guided by managers seeking sustainable competitive advantages in consumer markets. Consumer-driven innovation management is therefore based on information about the final consumers´ interpretation of customer offerings, their relative advantage and relative performance, but also on measurements of the consumers´ perception of what they want to have happen in a specific use situation with the help of a product or service offering in order to accomplish a desired purpose or goal (Woodruff & Gardial, 1996:54). The Consumers' Interpretation Of Customer Offerings At the lowest level of abstraction customer offerings are perceived as a bundle of concrete attributes. Such attributes are concrete representations of physical product dimensions that can be observed directly and they are rather objective like, e.g., square meters of a carpet. Abstract attributes are representations of more subjective aspects that cannot be observed directly but have to be inferred based on one or more concrete attributes. As examples of abstract attributes are good or bad quality, light, nutritious, healthy, delicious, cheap or expensive. Zeithaml (1988) has demonstrated that an intrinsic concrete

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attribute as, e.g., the thickness of a liquid, can be used as an indicator of quality. A thick liquid signals good quality for tomato juice but bad quality for apple juice. Also extrinsic concrete attributes as, e.g., the colour of wrappings, objective price or warranties may serve as indicators of quality. At a higher level of abstraction customer offerings are perceived as a bundle of benefits or consequences. Functional consequences are representations of which kind of problems can be solved or which kind of needs and wants can be satisfied by means of product use. As examples can be mentioned to get rid of your thirst and hunger for drinks and food, to be moved from one place to another for a car, to be entertained by music or to have your house repaired for a mason. Psychosocial consequences are psychological or social outcomes of product use. As examples are customer delights, satisfaction or dissatisfaction, anger, pride, happiness, to attain the attention of other people, to get prestige, to make other people envy you, to be like other people or to be different from them. Desirable consequences are representations of functional and psychosocial consequences that consumers want to obtain. They can therefore also be called perceived benefits. They pull the consumers towards something they want to achieve (Evans, Moutinho & van Raaij, 1996:20). Undesirable consequences are representations of functional and psychosocial consequences that the consumers want to avoid. They can therefore also be called perceived risks. They push the consumer away from something that they want to avoid (Evans, Moutinho & van Raaij, 1996:21). Perceived risks are based on two different kinds of knowledge. Stored affective knowledge concerning how unpleasant the negative consequences are, and stored cognitive knowledge concerning how likely it is that these consequences will occur. At the highest level of abstraction customer offerings are perceived as value satisfiers, as means to achieve some preferred goal achievements or to realize some important instrumental or terminal values. Instrumental values are preferred modes of behaviour or conduct as, e.g., to be polite, ambitious or capable. Terminal values are preferred end states of being as, e.g., meaning in life, self-respect or pleasure (Peter, Olson & Grunert, 1999:70). However, customer offerings are not perceived either at the attribute level, at the consequence level or at the value level. These different levels of abstraction are combined by the consumer in a means-end chain. Product attributes are perceived as means to obtain functional consequences and these consequences are perceived as means to obtain psychosocial consequences. Finally, consequences are perceived as means to achieve some important self-relevant instrumental or terminal values. The basic idea of means-end chains can be traced back to Tolman (1932) and Howard (1977). However, current thinking in marketing and consumer research about means-end chains seems to have been mostly influenced by Gutman & Reynolds (1979), Gutman (1982), Olson & Reynolds (1983) and Zeithaml (1988). According to all these authors product attributes are neither inherently important, nor do they have intrinsic value per se. Because consumers are interested in the consequences of product use, attributes are important only to the extent that they are perceived to be means for achieving a consequence or an end state which is salient to them. The meanings in a means-end chain are personal constructs, because consumers like all other human beings make cognitive representations of their environment as well as of themselves in order to stabilize life, make it more accessible and understandable. However each constructed piece of meaning is stored in memory as an associative network of inter-related knowledge and all knowledge structures are contextually contingent. This means that they are constructed and activated in particular use situations or social contexts. Specific cues and stimuli in the immediate retrieval environment affect which meanings are activated for the construction of new meanings or the choice between alternative courses of action. The levels of involvement a consumer experiences during product use is determined by the type of

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means-end knowledge activated in the situation. A consumer's level of involvement or self-relevance depends on two aspects of the means-end chain that are activated: (1) the importance or self-relevance of the ends and (2) the strength of connections between the product knowledge level and the selfknowledge level. Consumers who believe that product attributes are strongly linked to important end goals or values will feel higher levels of involvement in the product. In contrast, consumers who believe that the product attributes lead only to functional consequences, or that product attributes are only weakly linked to important values, will experience lower levels of involvement. Consumers believing that product attributes are not associated with any relevant consequences at all will experience little or no involvement in the product. Measuring Means-end Chains In the consumer behaviour literature especially two methods or techniques are described as useful for measuring means-end chains, namely "laddering" and "the grand tour" (Peter & Olson, 2008: 81; Woodruff & Gardial, 1996:178-190). Both techniques are qualitative and based on interviewing. Laddering is a moderately structured interviewing method that is specifically designed to measure the means-end association between attributes, consequences and values customers have towards products and services (Peter & Olson, 2008:81). Beginning at the bottom of the value hierarchy, the interviewer must first have the customer to identify all of the attributes that he or she believes are useful to describe or distinguish different brands or products in the category of interest. One method is to ask the participant to consider two or three products or brands and then to discuss the differences between them. Another method is to ask the respondent to identify a preferred brand or supplier and then discuss the reasons for this preference. Woodruff & Gardial (1996:178) suggest that the participant is placed in a particular context such as using the product or service. As opposed to discussing products in the abstract, this context often helps to cue the participant to recall important product dimensions. Although these initial questions may uncover consequences and desired end states in addition to attributes, Woodruff & Gardial (1996:179) emphasize that product users typically answer these questions at the attribute level, and it is only through laddering that the higher levels in the hierarchy emerge. Once the customer has identified product or service attributes, the interviewer will try to separate important ones from unimportant ones. There is generally not enough time to pursue ladders for all product attributes. Therefore understanding the most important ones is clearly more strategically critical than pursuing ladders for relatively unimportant ones. This subgroup of salient attributes then becomes the basis for laddering. Beginning one attribute at a time, the interviewer then asks a series of probing questions to determine the relationship between the attribute and higher order consequences and desired end states. This is typically done by asking "why is that important to you", "what does that mean to you" or "what does it mean when a product has or does not have that particular attribute". The interviewer then continues to ask these questions until the participant has worked his or her way up the ladder from attributes to consequences to desired end states. The ability to analyze and summarize laddering data across several interviews is often the most difficult aspect of using this technique. Each participant can generate a significant number of ladders and these must be summarized across multiple participants. However, laddering is clearly one of the most direct and established methods for measuring means-end hierarchies. An alternative technique for measuring means-end chains is called "the grand tour", (Woodruff & Gardial, 1996:182). This technique attempts to understand the value hierarchy indirectly by exploring in detail how the product or service is experienced by the customer in a particular context.

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To begin the grand tour, the interviewer asks the participant to imagine him- or herself in a typical reallife situation. This situation should be one that typifies a context in which the customer normally or regularly interacts with the product. The interviewer then asks the participant to describe what is going on in that situation. In essence, the objective is to get the participant to walk you through his or her typical experiences with the product. As the participant talks through his or her grand tour, the interviewer is free to probe for additional details and meaning. Probes should especially be used to add clarification, to get deeper meaning, to identify what feelings or emotions might be present, to get a better understanding of the connections between value hierarchy levels or to get a sense of the importance or intensity associated with particular statements. Unlike laddering, the grand tour does not directly pursue value hierarchies. If the connections between hierarchy levels are not made during the participant´s response, they must be inferred from the context of his or her response. However, it tends to yield much richer information about value hierarchies than laddering and it also yields significantly more information about use situations and their associated product requirements as well as about customer reactions to products, both in terms of evaluation and emotion. Because a grand tour interview is less structured than laddering, it can be somewhat longer to complete. In addition, its lack of structure calls for a great deal of interviewer skills to move the customer along to relevant issues, to probe for value hierarchy linkages and meaning and to pick up on important issues for additional probing. Value Production And Perceived Performance A purchase is not the ultimate goal of buying behaviour seen from the consumers´ point of view. All purchased goods have to be transformed because value is not inherent in purchased products or services themselves; it is experienced by the consumers as a consequence of using a supplier´s products or services for their own purposes. Value therefore is the result of a trade-off between positive and negative consequences of product use as perceived by the customer (Zeithaml, 1988; Woodruff & Gardial, 1996:57; Jensen, 2001). Material possessions are not disconnected. They are integrated parts of consumption patterns used in order to produce meaning and support preferred ways of living. They can therefore be said to reflect on the consumers´ implemented lifestyles (Fournier, 1998). Some of these lifestyles are functional and utilitarian while others are psychosocial and emotional. All, however, are purposive and more or less selfrelevant for consumers trying to facilitate living and to give meaning to their lives (Dittmar, 1992:204). Consequently, products are evaluated prior to a purchase based not only on information of their potential post-purchase value, but also of what this value represents seen in relation to dynamic pattern of consumption. If an implemented lifestyle is experienced as satisfactory and information has not changed this judgement, then the consumer will be inclined to buy products that are instrumental for a reproduction of established patterns of consumption. If the consumer feels that an implemented lifestyle ought to be adjusted without being fundamentally changed, then the consumer will be inclined to buy products offering variation in established patterns of consumption. Finally, if an implemented lifestyle is experienced as undesirable, then the consumer will try to divest it and to reconstruct an alternative constellation of complementary material possessions. Producing value by means of purchased goods always involves the use of the consumers´ implemented lifestyles which are constituted by a given set of post-purchase desires and expectations, skills and resources (Jensen, 2001). Skills are decisive for the consumers´ ability to reproduce, modify, divest or

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reconstruct implemented lifestyles. They represent learned scripts or script sequences for the transformation of purchased good in different use situations. Resources include possessions, time, manpower and money available for value production. Every transformation of purchased goods is dependent on the consumers´ available resources as well as on their post-purchase desires and expectations concerning the reproduction, modification, divestment or reconstruction of implemented lifestyles. Post-purchase expectations are beliefs about the likelihood that a transformation will lead to certain consequences and end goals, whereas post-purchase desires represent a preferred relationship between the input and output of value production. A transformation of purchased goods can be routine, simple or complex which reflects different levels of behavioural and cognitive effort associated with value production. In consumer and marketing research these concepts have almost exclusively been used to characterize buying behaviour. However, they can easily be adjusted to cope with the consumers´ value-producing activities. If the consumers are satisfied with their implemented lifestyles, then there is no psychological reason why they should change established patterns of consumption. Value production will therefore to a large extent imply different kinds of routine transformations. The level of involvement in virtual transformations is probably rather low, and the symbolic or ritual activities which may be linked to such transformations will probably be automatic (McCracken, 1986). Value production is based on the same input of resources as usual and it will require neither much time nor much cognitive or behavioural effort. Preparing the afternoon tea, cleaning the house or grooming yourself is probably for most consumers a typical routine transformation. If the consumers want to modify their implemented lifestyles because they need variation and/or have been exposed to pre-purchase information suggesting possible desirable variations in established pattern of consumption, value production will imply different kinds of simple transformations. Even if consumers believe that minor deviations from the established patterns of consumption are possible and desirable, different procedures may be open which may be associated with more or less undesirable outcomes. This kind of transformation therefore requires some cognitive effort concerning the desired use of available resources and/or the acquisition of new desired inputs of complementary items. The level of involvement in value production is typically neither very low nor very high. As examples of such a transformation could be preparing a more healthy breakfast, making sauce by means of new ingredients or grooming yourself by means of new skin-care products. If the consumer wants to divest and reconstruct established patterns of consumption, e.g., to stop smoking and to develop more healthy eating and drinking habits, then implemented lifestyles have to be changed through complex transformations which imply activities that are perceived as very self-relevant and risky. The acquisition of new skills is necessary, because stored procedural knowledge probably is experienced as inadequate. The value production resources will also be adjusted in order to facilitate transformations which require both much time and much cognitive effort. In such a case the outcome of value production will depend to a large extent on the consumers´ use of their capacity to produce value in an actual use situation, and this capacity will probably be changed in a fundamental way. Woodruff (1997) has proposed that customer value is regarded as a customer´s perceived preference for and evaluation of those product attributes, attribute performances, and consequences arising from use that facilitates or blocks achieving the customer´s goals and purposes in use situations. Customer value therefore reflects the perceived value of being a customer, and this value is inherent in or linked to the use of purchased goods. It reflects perceived performance seen in relation to salient goals for value production. Perceived performance can be defined as beliefs about the outcome of value production. Such beliefs are therefore linked cognitively to experienced consequences of reproducing, modifying, divesting or reconstructing implemented lifestyles in an actual use situation.

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Customer Value And Innovation Management The value hierarchy clearly shows that in order to understand value one must understand which particular set of consequences are/are not desired by product users, as well as which end-states are deemed desirable. Unless these upper levels of the hierarchy are understood, there is no "north star" to guide managers in the selection and choice of which attributes should be incorporated into the product or service; nor is there any way to judge the relative attractiveness of alternative offerings. Understanding value hierarchies will also remind the product or service provider that no two customers´ or segments´ value hierarchies will be exactly alike, and these differences will provide both challenges and opportunities. If an innovation manager truly understands the consumer´s value hierarchy, he or she might be able to identify "high impact" attributes or features that serve as multiple consequences for the customer, thus enhancing value. Consequently, innovation managers should not outline product or service improvements primarily in terms of changes at attribute levels. Customer value is not inherent in products or services themselves. Rather it is experienced by the customers as a consequence of using supplier´s offerings for their own purposes. Innovation managers should therefore first understand the higher hierarchy levels before translating this knowledge into a specific configuration of attributes or features, because these levels are perceived as more self-relevant and involving by the consumers than lower hierarchy levels. Furthermore, consequences and desired end-states provide a more stable basis for innovation decision-making than attributes or features, because the hierarchy represents increasing stability at higher levels. Values do not change as quickly as the perception of preferred attributes. Finally, desired end-states are futureoriented. They can therefore tell innovation managers what the consumers want to see in the future. Preferred attributes are based on history and present conditions, because consumers perceive and assess them seen in relation to their experience. Innovation managers should therefore start out by identifying the value dimensions customers perceive in relation to the supply of the company, and they should ask them to rank these value dimensions in order to identify the most important ones. Then they should ask the customers to assess the customer value dimension performance. If both the customer value dimension importance and the customer value dimension performance are perceived as low, then it does not have any strategic significance. If the customer value importance is low and the customer value dimension performance is perceived as high, there is a potential for cost saving. If the customer value dimension importance is high and the customer value dimension performance is perceived as low, then the company has a weakness that should be removed. Finally, if both the customer value dimension importance and the customer value dimension performance are perceived as high, then the company has a strength that should be maintained. In continuation, innovation managers should ask customers to assess the competitive difference on salient value dimensions in order to identify the competitive benchmarks. If both the customer value dimension importance and the competitive difference on the value dimension are perceived as low, it has no strategic significance. If the customer value dimension importance is low and the competitive difference on the value dimension is perceived as high, then there is a competitive distinctiveness, but it does not have much strategic importance. If the customer value dimension importance is high and the competitive difference on the value dimension is perceived as low, then the competitors are sticking to competitive standards, and this is not a threatening situation in the short run. Finally, if both the customer value dimension importance and the competitive difference on the value dimension are perceived as high, then somebody has a competitive differential advantage. If the company has it, it must be maintained. If not, it reflects a serious strategic challenge, and potentials for cost savings should be used among other things to improve the situation. Based on this knowledge innovation managers should identify the technological scripts for maintaining

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strengths, removing weaknesses and keeping or getting differential advantages. The different scripts should be compared and evaluated seen in relation to both the implied consequences for the consumers and the positional advantages the company wants to achieve. Superior customer value and lower relative costs will imply different technological solutions, and this is also the case if the company wants to achieve both low costs and differentiated positions at the same time. Finally, innovation managers should decide which product or service attributes must be chosen in order to improve consumption consequences, goal achievements and competitive differential advantages among customers in target markets. Satisfaction And Innovation Management Both customer value and satisfaction measure aspects, albeit different ones, of the consumer´s interaction with products and service. Customer value describes the nature of the relationship between user and product, while satisfaction is a representation of the consumer´s reaction to the value received from a particular product offering. It tends to exhibit a historical orientation. It is a judgement formed during or after product use or consumption. It is an evaluation directed at a particular product or service offering or supplier organization. It therefore provides a report card for the organization which indicates the perceived effects among its customers concerning the value creation efforts of the organization. Customer value is what the customer desires from the product or service. It exhibits a future orientation and is independent of the timing of product use or consumption. It exists independently of any particular product or service offering or supplier organization, and it provides direction for the organization indicating what should be done in order to create value. The expectation-disconfirmation model represents the most dominant theory of customer satisfaction (Woodruff & Gardial, 1996:87; Evans, Jamal & Foxall, 2009:130). Determining whether a product is satisfying or dissatisfying is essentially an evaluation process. The customer is required to make a performance judgement and satisfaction is strictly tied to the customer´s perception of product performance. Then perceived product performance is compared with a standard representing the product performance that the customer expected. However, comparison standards can vary across as well as within customers, and they can come from a variety of sources. Satisfaction is then the evaluation or feeling that results from the disconfirmation process. It is not the comparison itself, but it is the customer´s affective response to the comparison. Around the standard of comparison there is a zone of indifference where expectations are almost met. The magnitude of this zone will vary by the type of product, by the specific product dimension being judged, by the individual consumer and even by use and consumption situation. Of great importance is what happens when the performance of the product or service deviates significantly from the standard of comparison and falls outside the zone of indifference. If the performance falls well short of expectations, the consumer will experience what is known as "negative disconfirmation". The expected product performance is disconfirmed, and the direction of the disconfirmation is negative. Negative disconfirmation is critical for managers to recognize, because it represents the largest threat to customer loyalty, word-of-mouth recommendations, repeat purchases and other desirable customer responses (Wetzer et al., 2007). Product performance that increasingly exceeds the comparison standard, and thus represents superior or unexpectedly good product or service performance, is known as "positive disconfirmation". The direction of the disconfirmation is positive or better than what the consumer expected. Positive disconfirmation normally implies customer delight, loyalty, word-of-mouth recommendations and repeat purchases (Oliver, 1997). This seems to imply that it is always important for innovation managers to measure also customer satisfaction. However, it depends on the way satisfaction in fact is measured. It does not matter how the

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product actually performed, or even less so, how the product provider believes that the product performed. Satisfaction is strictly tied to the customer´s perception of product performance, and it is therefore important to measure only such perceptions. Furthermore, it is important to measure primarily satisfaction with "hot buttons", that is satisfaction with attributes that the consumers relate to salient consequences and goal achievements. Finally, it is important that satisfaction measurements reflect performance dimensions that in fact can be changed by innovation managers in companies trying to improve their supply, and that the consumers´ comparison standards for the assessment of such performance dimensions are fully understood. Conclusion Customer value has turned out to be a very important concept in marketing strategy and research despite the fact that the growing body of knowledge about the construct is fragmented. Different points of view are advocated and there seems to be no widely accepted way of pulling these views together. However, the ambiguity of the concept could be reduced if it was accepted to a larger extent that the consumers produce value, and that virtual and symbolic transformations of products can only be carried out by the consumers themselves. Organizations can help them to accomplish this task, and they ought to do so if they want to compete on customer value delivery. Producing value in private households by means of organizational offerings is always based on implemented lifestyles which are reproduced, modified, divested or reconstructed. Market share, relative profits and the investment of profits to sustain advantage therefore basically depend on the firm´s ability and willingness to make superior contributions continuously to the consumers´ production of value. By accepting such an approach to customer value delivery, it will be possible for marketing managers to change the focus of their strategies not only from the exit of the firm to the entrance of the household, but to the activities carried out by the consumers themselves in order to produce value. It will also be possible for firms to assess their competitiveness based on measurements which reflect their relative contribution to the consumers´ production of value instead of making comparisons only to alternative pre-purchase offerings independent of the consumers´ implemented lifestyles. Satisfying customers better than competitors has traditionally been regarded as the safest prescription for superior performance. However, satisfaction data do not always correlate with organizational performance as indicated by customers who say that they are satisfied but buy elsewhere. Even if organizations find initially a strong relationship between satisfaction scores and organizational performance, the identified relationship may decline over time. This may happen, if satisfaction measurements do not keep up with changes in what customers need and want. Knowledge of which product attributes or consequences satisfy the customers therefore provides at best only indirect evidence of what organizations should consider for future offerings. Consequently, customer value ought to be considered as a more important concept for strategic analysis and decision-making in companies serving consumer markets, because it reveals the perceived aspects of customer offerings that must be reconsidered in the future. Consumer-driven innovation should therefore primarily be based on measurements of preferred consequences and goal achievements among customers in target markets. Unless these upper levels of the value hierarchy are understood, there is no "north star" to guide innovation managers in the selection of which attributes should be incorporated in the product or service. Nor is there any valid way to judge the relative attractiveness or importance of alternative customer offerings. Customer value is what the customer desires from purchased products or services. It provides direction for an organization, because it indicates what should be done in order to provide value. Customer satisfaction only provides a report card indicating the perceived effects in target markets concerning the value creation effort of the organization. However, measures of both constructs are needed because they will

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help to improve innovation decision-making in companies that are fighting for sustainable competitive advantages in consumer markets. REFERENCES Berry, L., V. Shankar, J. Turner Parish, S. Cadwallader & T. Dotzel (2006). Creating new markets though service innovation. MIT Sloan Management Review, 47 (2), 56-63. Day, G.S. & R. Wensley (1988). Assessing advantage: A framework for diagnosing competitive superiority. Journal of Marketing 52, 1-20. Dittmar, H. (1992). The social psychology of material possessions. Hemel Hempstead, Hertfordshire: Havester Wheatsheaf. Drucker, P.F. (1954). The practice of management. New York: Harper & Brothers Publishers. Drucker, P.F. (2003). The future of management: Start seeing change as a golden opportunity. Executive Excellence, 20 (5), 3. Evans, M.J., L. Moutinho & W.F. van Raaij (1996). Applied consumer behaviour. Harlow, U.K.: AddisonWesley Publishing Company. Evans, M.J., A. Jamal & G. Foxall (2009). Consumer behaviour. Second edition. Chichester, U.K.: John Wiley & Sons Ltd. Fournier, S. (1998). Consumers and their brands: Developing relationships theory in consumer research. Journal of Consumer Research 24, 343-373. Fulmer, W.E. & J. Goodwin (1988). Differentiation: Begin with the customer. Business Horizons 31 (5), 159-166. Gutman, J. & T.J. Reynolds (1979). An investigation of the levels of cognitive abstraction utilized by consumers in product differentiation. In: Eigmmey, J. (ed.), Attitude research under the sun, American Marketing Association, Chicago, 128-150. Gutman, J. (1982). A means-end chain model based on consumer categorization processes. Journal of Marketing, 46 (Spring), 60-72. Howard, J.A. (1977). Consumer behaviour application and theory. New York: McGraw-Hill. Jensen, H.R. (2001). Antecedents and consequences of consumer value assessments: Implications for marketing strategy and future research. Journal of Retailing and Consumer Services 8, 299-310. McCracken, G. (1986). Culture and consumption: A theoretical account of the structure and movement of cultural meaning of consumer goods. Journal of Consumer Research 13, 71-83. Oliver, R.L. (1997). Satisfaction: A behavioural perspective on the consumer. New York: McGraw-Hill. Olson, J.C. & T.J. Reynolds (1983). Understanding consumers´ cognitive structures: Implications for advertising strategy. In: Percy, L. & A. Woodside (eds.), Advertising and consumer psychology, vol. 1. Lexington, MA: Lexington Books. Peter, J.P., J.C. Olson & K.G. Grunert (1999). Consumer behaviour and marketing strategy. European edition. London: McGraw-Hill. Peter, J.P. & J.C. Olson (2008). Consumer behaviour and marketing strategy. Boston: McGraw-Hill. Porter, M.E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

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Porter, M.E. (1996). What is strategy ? Harvard Business Review, November-December, 61-78. Tolman, E.C. (1932). Purposive behavior in animals and men. New York: Century. Wetzer, I.M., M. Zeelenberg & R. Pieters (2007). "Never eat in that restaurant, I did": Exploring why people engage in negative word-of-mouth communication. Psychology & Marketing, vol. 24, 8, 661668. Woodruff, R.B. & S.F. Gardial (1996). Know your customer: New approaches to customer value and satisfaction. Cambridge, MA: Blackwell. Woodruff, R.B. (1997). Customer value. The next source for competitive advantage. Journal of the Academy of Marketing Science 25 (2), 139-153. Zeithaml, V.A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing 52, 2-22.

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Brand Personality and Consumer Congruity: Implications for Advertising Strategies in India Bilal Mustafa Khan

Abstract Brand personality is one of the core dimensions of brand equity. Brand personality refers to the emotional side of a brand image. It is created by all experiences of consumers with a brand, but advertising plays a dominant role in personality creation. This paper explores the mechanism that builds brand personality with the help of advertising. Further an integration of advertising models is done with the theory of brand personality. This integrated framework leads to a number of propositions that set an agenda in this field. In building our framework we incorporate theories from the fields of marketing (brand equity and advertising), communication science and psychology (personality). Introduction The choice of creating advertising for global markets faces a new and unusual challenge. It is no longer just communicating globally in markets with somewhat similar demographic groups. The market segments are saturated with the presence of global brands and opportunities for growth. Consumer purchase products/ brands not only on the basis of their functions or quality, but do so, more importantly, because of the symbolic meanings contained in products/brands (Veryzer, 1995). Brands offer different values to consumers: these values basically include functional (i.e., the problem-solving capability of a brand), experiential (i.e., benefits related to sensory enjoyment or cognitive arousal), and symbolic brand benefits (i.e., the signal effects shown to others via the brand) (Keller, 1993). Brands constitute the basis by which organizations position themselves in a competitive surrounding. They serve as a critical differentiation factor in what any given organization offers relative to its competitors (Biel, 1993). Thus, purchasing a product of a particular brand may enable individuals not only to achieve maximum utility by way of the product's instrumental meaning, but also to express their personalities or increase their self esteem through the product's symbolic meaning (Slaughter et al., 2004). In today's competitive environment, brand differentiation based in tangible attributes is difficult to achieve. Therefore, concepts like 'customer-brand relationship' (Blackston, 1993), 'brand magic' (Beil, 1997) or 'lovemark' (Beckman, 2002) raise their importance in brand building literature. The reason for its success lies in the emotional and self-expression benefits that brands provide to their ultimate consumers. From a brand builder prospective, brand personality is an important input variable, normally considered in branding strategy models (Kapferer, 1991; Keller, 1993; Aaker, 1996). From the customer perspective, the adoption of new brands is a consequence of advertising processing (Mehta, 1994, 1997; CobbWalgren et al., 1995; Meenaghan, 1995). The following fig. 1.1 is presented pertaining to customer-brand personality, product-brand personality and customer self-image congruity with product brand personality, and purchase intention towards the brand as the dependent variable.

Assistant Professor, Department of Business Administration, Aligarh Muslim University, Aligarh

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Figure 1 Product and customer based congruity

Brand personality is an attractive and appealing concept in the marketing of today. It is one of the core dimensions of the brand identity (D. Aaker, 1996) and perhaps the one closest to the consumers. The personality idea responds to the tendency in contemporary society to value personal relationships. It also refers to the idea that relationships are important in social life. In terms of Maslow's hierarchy of needs, it tries to lift products to higher levels of need satisfaction, like belongingness, love and esteem. Brand personalities are created in different ways and with different tools. However, the creation always involves active communications on the side of the firm: the personality has to be disseminated to be alive. Advertising is heavily used in this process of personality creation. This follows logically from the fact that personalities are particularly useful for the creation of brand associations. Brand associations influence the' evaluation of alternatives' stage in basic consumer buying behavior models. In this stage, and for these goals, advertising is considered to be the most effective communication tools (Brassington & Pettitt, 2000). Brand Personality Keller (1998) states that "brand personality reflects how people feel about a brand, rather than what they think the brand is or does". The symbolic use of brands is possible because consumers often give brands human personalities (J. Aaker, 1997). Consumers perceive the brand on dimensions that typically capture a person's personality, and extend that to the domain of brands. The dimensions of brand personality are defined by extending the dimensions of human personality to the domain of brands. Rosenberger III & Donahay (2008) reveals that a strong, favourable BP can provide consumers (i.e. fans) emotional fulfilment, image enhancement, an increased willingness to remain loyal to the brand, to try a new brand or brand extension and to pay premium prices for a brand. BP can be the principle differentiation basis when there is little or no distinction other than the brand (Aaker 1997, Freling & Forbes 2005b, Venable et al 2005, Chang & Chieng 2006). Rosenberger III & Donahay (2007) further states that BP is a strategically important construct that can help firms achieve enduring differentiation and sustainable competitive advantage (Biel 1993, Diamantopoulos, Smith & Grime 2005, Freling & Forbes 2005a, Venable, Rose, Bush & Gilbert 2005).

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The research on brand personality suggests that consumers select brands that are congruent with their needs and personality characteristics. Brand characteristics tend to be similar with consumer's self-concept and personality traits, therefore behaviour choices are predictable if marketers identify consumer's self-images and brand perceptions. Freling and Forbes (2005) found that brands with strong personalities are likely to generate positive attitudes with consumers, which are likely to result in evaluations that are more favourable. Brand meaning and personality is found to transcend cultural boundaries and therefore coupled with consumer personality characteristics would be a valuable combination for marketing strategy purposes for all kinds of brands globally (Aaker and Schmitt, 2001; Escalas and Bettman, 2005). Brand Personality and Consumer's Self Congruity Self-congruity represents the degree of similarity between consumer's self-image or self-concept and that of brand. The degree of consistency between the self-image and brand image is self-congruity (Sirgy, 1982). The four aspects of self-concept compose the global self-image, which influence consumer choices of products/brands through self-image with brand image congruity (Johar and Sirgy, 1991; Sirgy and Su, 2000). Telic self-concept facets in Sirgy´s SICT, driven by different approach motives: =

Actual congruity (consistency motive)

=

Ideal congruity (self-esteem motive)

=

Social congruity (social consistency motive)

=

Ideal social congruity (social approval motive)

Figure 2 Conceptual Framework

Congruity impacts are desirable because they influence positively consumer's self-image, but inconsistencies or incongruity is likely to result in feelings of inadequacy, and dissatisfied with their choices (Johar and Sirgy, 1991; Sirgy and Su, 2000). According to Pervin and John (2001), self-concept is often viewed as a component of personality. Identifying congruity relationships between brand image and consumer's self-image would enable marketers to position and promote products more effectively with the appropriate target markets. Identifying more clearly symbolic brand personality meanings, consumer personality characteristics and the interrelationships between consumer self-image and brand image, would provide an integrated nomothetic approach to understanding the symbolic with the actual con-

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sumer needs. Understanding the relationships between brand and consumer personality would prove most invaluable, as personality constructs, are considered stable over a long timer and universally generalisable for all individuals and transcend cultural differences (Jung, 1921/ 1971; McCrae and Costa, 1997). Role of Advertising in creation of Brand Personality and Consumer Congruity: Advertising is a form of communication used in helping sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image". For these purposes, advertisements sometimes embed their persuasive message with factual information. Advertising is a promotional activity for marketing goods and services. It is heavily used in the process of personality creation. In the process of personality creation, advertising and marketing, communication approaches are largely used to create a brand's personality (Redenbach, 2000). Execution strategies employed in advertising range from the informational to the emotional. Through television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet marketing they reach large numbers of individuals who represent a wide range of cultural and ethnic backgrounds. Also the qualitative factors associated with the content and/or execution of an advertisement has an impact on its eventual effectiveness (MacKenzie et al. 1986). Literature Review This section summarizes literature related to branding, personality and self-concept, brand image and brand personality, and advertising. Self-concept and personality have been used interchangeably in existing marketing and psychology literature. Rosenberg (1979) defined self-concept as the "totality of the individual's thoughts and feelings having reference to him self as an object". Pike (2009) specifies branding in the context of the multiple intrinsic (eg, design, performance, taste) and extrinsic (eg, brand, price, reputation) cues and characteristics shaping consumer perceptions and behaviour, long-standing research in marketing reveals how product-country image and origin is often decisive. It underpins the 'Country of origin' or 'Made in …' effect derived from consumer views of the differential capabilities and historical reputations of countries for particular goods and services (Bilkey and Nes, 1982; Johansson, 1993; Thakor and Kohli, 1996). The Personality Concept: Morf (2002) claims that research in personality is currently thriving. To him, "it now seems much more than alive. It is vibrant with fresh momentum and renewed excitement, as the field experience rapid and creative expansion and growth. This results, in part, from more young people coming into the field, as well as people, who previously claimed other orientations, now declaring their affiliation with the field of personality" (p.650). Researchers generally agree that personality is "the dynamic and organized set of characteristics of a person that uniquely influences his or her cognitions, motivations and behaviors" (Allport, 1961, p.28; Ryckman, 1997, p.5). Furham (1990) classified personality theories into three schools: 1. Benevolent eclecticism describes a long and venerable line of personality theories; 2. Partisan zealots present only one theory based on a single belief and 3. Enthusiastic taxonomists classify theories according to their epistemological origins. Ryckman (1997), who belongs to the third school, categorize personality theories into five perspectives: a. The psychoanalytic perspective is biological in nature and based on the particular behaviors that occur (Ryckman, 1997).

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b. The trait perspective assumes that there are "dispositional factors that regularly and persistently determine conduct in a variety of everyday situations" (Furham, 1990, p.923). c. The cognitive perspective assumes that people's personality is never completely determined; people always are changing and always free to reinterpret their experiences in idiosyncratic ways (Ryckman, 1997). d. The existential perspective postulates the existence of an innate growth that moves individuals toward realization of their potentialities if environmental conditions are ideal (Ryckman, 1997). e. Lastly, the social behaviorist perspective assumes that most of our behavior is learned and purposive; we are guided by our motives to attain certain goals (Ryckman, 1997). Unlike the psychoanalytic and existential perspective, the social behaviorist perspective is not interested in stages of growth. It is however similar to the trait perspective which assumes that personality refers to regularities and consistencies in an individual's behaviour (Snyder and Ickes, 1985). However, the social behaviorist perspective asserts that our personality or behaviour is learned, rather than innate. People's experience and interactions continually influence one another (Rotter et al., 1972), and behaviour occurs as a result of the complex interplay between inner processes and environmental influences (Bandura, 1971). Albanese (1993) concluded that the concept of personality and consumer has emerged from the "Dark Ages" as a viable area of research in marketing. Biel (1993) suggested that brand image is composed of the image of the provider (e.g. the manufacturer), the user, and the product itself. Farquhar and Herr (1993) argue that associations evoked by brands include specific product attributes, customer benefits, usage situations and other summary evaluations. Recently, a consensus has emerged among personality psychologists that the Big Five Model should serve as a reference structure for the assessment and description of human personality, but applications of this model to marketing settings have appeared only recently (Aaker, 1995, 1997; Aaker and Fournier, 1995; Caprara and Barbaranelli, 1996, Caprara et al., 1998). Ekinci & Hosany (2006), in their literature specifies that a distinctive brand personality can help to create a set of unique and favorable associations in consumer memory, and thus build and enhance brand equity (Keller 1993; Johnson, Soutar, and Sweeney 2000; Phau and Lau 2000). A well established brand personality influences consumer preference and patronage (Sirgy 1982; Malhotra 1988) and develops stronger emotional ties (Biel 1993), trust, and loyalty with the brand (Fournier 1998). Similarly, a distinctive and emotionally attractive destination personality is shown to leverage the perceived image of a place and influence tourist choice behavior. The Study of Personality and the Big Five Model: The Big Five Model emerged as the 'language' of personality within the framework of a psycholexical approach. This approach originated from a hypothesis, formulated by Gordon Allport at the end of the 1930s and formalized by Raymond Cattell in the mid 1940s, called 'linguistic sedimentation' or the 'lexical hypothesis'. According to this theory, nouns and adjectives that describe human personality are integral to the development and maintenance of social relationships. As such, they become part of the vocabulary used by people every day, and are transmitted from one generation to another through the process of socialization. The practical consequences are that the vocabulary of natural languages represents the main source of descriptors for personality characteristics (John et al., 1988 as cited in Caprara et al., (2001). Several studies, scanning thousands of adjectives and nouns in unabridged dictionaries in different languages (Saucier et al., 1999), selected terms denoting stable characteristics of human personalities, which mostly have been considered the least ambiguous, the most frequently used, and the most useful for human personality description. According to Caprara et al. (2001), factor analysis conducted on these data sets revealed a structure generally composed of only five broad personality dimensions/traits (the so-called "Big Five Factors"). They are:

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1. Extroversion (active, competitive, dominant, energetic, happy, lively, resolute, strong), the preference for social interaction and for activity; 2. Agreeableness (affectionate, altruistic, authentic, cordial, faithful, generous, loyal), the orientation toward compassion and caring about others, and away from antagonism; 3. Conscientiousness (conscientious, constant, efficient, precise, productive, regular, reliable, scrupulous); 4. Emotional Stability (calm, level-headed, light-hearted, patient, relaxed, serene, stable, tranquil), the ability to cope effectively with negative emotions; and 5. Openness to Experience (creative, fanciful, informed, innovative, modern, original, recent, up-todate), the tolerance for new ideas and new ways of doing things, experientially-oriented. These traits were found to easily evoked by a limited number of adjectives (so-called markers) that showed a high loading in the desired factor and low loadings in the remaining factors (Goldberg, 1992). For complete reviews of these studies, see Digman, 1990; Goldberg, 1993; McCrae and John, 1992; Wiggins and Pincus, 1992.) Figure 3: The Big Five Factors

Adapted from Caprara, G.V., Barbaranelli, C. and Guido, G. (2001), "Brand Personality: How to make the metaphor fit," Journal of Economic Psychology, Vol.22, pp. 393 Further confirmations of this five-factor structure subsequently came from studies of personality traits using self-reported questionnaires and independent ratings (see, for a review, Ostendorf and Angleitner, 1992). Also, by re-analyzing factor solutions derived from human personality descriptions, Digman (1997) found second-order dimensions that account for correlations among the Big Five, resulting in two higherlevel factors. According to Digman, these factors represent the highest level of a hierarchical model of personality characteristics in which personality terms are arranged in order of increasing complexity, from the most specific behavioral response to broader personality dimensions. More recently, Slaughter et al. (2004) also conducted four studies to construct a multidimensional measure of perceptions of organizational personality based upon Aaker's (1997) earlier work. Findings from their research suggest that significant organizational differences exist among the five organization personality perception scales. Their study also demonstrated that scales used to measure human personality cannot be used for measuring organization personality without significant modification.

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Brand Personality Creation In reference to the paradox of personality in marketing, we all have a personality, but we do not know how it is systematically related to our consumer behaviour (Albanese, 1989). However, some have argued that the symbolic use of brands is possible because consumers often imbue brands with human personality traits (termed animism; e.g., Gilmore 1919 as cited in Aaker, 1997). Consumers readily can think about brands as if they were celebrities or famous historical figures (Rook, 1985) and as they relate to one's own self (Fournier, 1994); this all may be due in part, to the strategies used by advertisers to imbue a brand with personality traits such as anthropomorphization (e.g., California Raisins), personification (e.g., Jolly Green Giant), and the creation of user imagery (e.g., Charlie girl). Through such techniques, the personality traits associated with a brand, such as those associated with an individual, tend to be relatively enduring and distinct. For example, the personality traits associated with Coca Cola are cool, all American, and real; these traits have been relatively enduring (Pendergrast, 1993) and differentiate Coke from its competitors (e.g., Pepsi being young, exciting, and hip; Dr Pepper being nonconforming, unique, and fun (Plummer, 1985); italics in original as cited in Aaker,1997). Lee, Back & Kim (2009) reveals that Customer's emotions play the dominant role in explaining satisfaction, trust, and customer loyalty. Although some research has suggested that brand personality evokes consumer's emotions (Biel, 1993), increases levels of trust and loyalty (Fournier, 1994), and increases consumer preference and usage (Sirgy, 1982), they did not find mediating roles between brand personality and brand loyalty. Further, he states that brand personality has a significant impact on individual's emotion and further influence on his or her consumption behaviors. Specifically, when customers have established firm brand personality with a specific brand, they may have a certain level of service expectation with regard to the brand. The expectation of the brand leads to an emotional response in the customer's mind, resulting in either positive or negative emotions. Antecedents of Brand Personality Previous research has suggested that a consistency of relationship exist between human characteristics and brands. Consequently, some researchers (see Table 2.1) have postulated some antecedents of brand personality. Table 2.1 shows how various researchers have brought into focus these antecedents or determinants: Table 1: Some Studies on the Antecedents of Brand Personality Author(s)

Year

Antecedents

1. Levy

1959

Brand personality includes demographic characteristics such as gender, age, class, etc

2. Epstein

1977

Human and brand personality traits share a similar conceptualization

3. Park

1986

Perceptions of human personality traits are inferred on the basis of an individual’s behaviors, physical characteristics, attitudes and beliefs.

4. Plummer

1985

Perceptions of brand personality traits can be formed and influenced by any direct or indirect contact that consumers have with the brand.

5. McCracken

1989

Personality traits come to be associated with a brand in a direct way by thepeople associated with the brand (company employees, CEOs and the brand’s product endorsers etc).

6. Batra, Lehmann & Singh

1993

Personality traits come to be associated with a brand in an indirect way through product-related attributes, product category associations, brand name, symbol or logo, advertising style, price and distribution channel.

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Source: Extracted from Aaker, J. L. (1997), "Dimension of Brand Personality," Journal of Marketing Research, Vol. XXXIV, August, pp. 348 Measuring Brand Personality To examine how the relationship between brand and human personality may drive preference, Aaker (1997) indicates that two types of brand personality scales can be used. The first types are ad hoc scales, which typically are composed of a set of traits ranging from 20 to 300 in number. However, though useful, these scales tend not to be theoretical in nature-often having been developed for the purposes of a specific research study. As a result, key traits may be missing from such scales. Furthermore, the traits that are selected often are chosen arbitrarily, which casts doubt upon the scales' reliability and validity. The second type of brand personality scales are those that are more theoretical in nature, but are based on human personality scales that have not been validated in the context of brands (e.g. Bellenger et al., 1976; Dolich, 1969 as cited in Aaker, 1997). Some dimensions (or factors) of human personality may be mirrored in brands whilst others might not. As a result, the validity of such brand personality scales often is questionable, leading researchers to argue that "if unequivocal results are to emerge (in the literature on the symbolic used of brands) consumer behavior researchers must develop their own definitions and design their own instruments to measure the personality variables that go into the purchase decision" (italics in original, Kassarjian 1971, pp. 415 as cited in Aaker, 1997). It was against this setting that Aaker (1997) developed a brand personality by isolating these distinct dimensions, further treating brand personality as a 'unidimensional construct' and demonstrating how different types of brand personalities can be distinguished. This has resulted in the perception that there are multiple ways in which the brand personality construct can influence a consumer's preference, and has provided investigators tools so that these may be better understood. Figure 2.2 highlights Aaker's (1997) Brand Personality Framework. Figure 4: A Brand Personality Framework

Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness

. Down-toearth . Honest . Wholesome

. Daring . Spirited . Imaginative . Up-to-date

. Reliable . Intelligent . Successful

. Upper class . Charming

. Outdoorsy . Tough

Adapted from: Aaker, J.L. (1997), "Dimension of Brand Personality," Journal of Marketing Research, Vol. XXXIV, August, pp.352

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Aaker (1997) indicates that her study, as the maiden attempt to develop a measurement scale, is "based on a representative sample of objects, a comprehensive lists of traits and a systematically chosen set of brands across product categories"(p.354). She added that this scale can be used "to compare personalities of brands across product categories thereby enabling researchers to identify benchmark personality brands" (p.354). (For a fuller appreciation of the personality trait norms, see Appendix I). Conducting a study on the effect of brand personality and brand identification on brand loyalty, Kim et al. (2001) confirmed this hypothesis: the higher the self-expressive value of the brand personality and the higher the distinctiveness of brand personality, the higher consumers will perceive the attractiveness of the brand personality. In other words, there is positive relationship between customer and brand. It also turns out that brand identification has positive effects on word-of-mouth reports, but does not have a significantly direct effect on brand loyalty. Similarly, these investigators also discovered that the attractiveness of brand personality directly affects positive word-of mouth reports, and indirectly affects brand loyalty. Aaker's work precipitated similar studies to be conducted from different angles and perspectives. Table 2.2 lists some of the dimensions and frameworks for brand personality measurement suggested in the literature. Table 2: Some Dimensions and Frameworks of Brand Personality Measurement Author(s)

Year

Dimensions identified/Frameworks proposed

1. Aaker, J. L. and Fournier, S.

1995 1997

…a framework of Brand personality Dimensions (Aaker developed a 42 item Brand Personality Scale(BPS)

2. Aaker, J. L.

to structure and measure the brand personality in the US of any brand across five key dimensions: sincerity, excitement, competence, sophistication and ruggedness)

3. Fournier, S. M.

1998

…framework for understanding and extending Brand Personality. (Fournier created a brand relationship quality (BRQ)-model comprising six central factors: Brand partner quality, intimacy, interdependence, commitment, self-connection and love/passion)

4. Aaker, J. L., Benet Martinez, V. and Garolera, J.

2001

2001 …personality dimensions that share similar meaning in Japan and the USA (sincerity, excitement, competence, sophistication), as well as relatively cultural specific Japanese (peacefulness) and American (ruggedness) dimensions.

It should be highlighted that, prior to Aaker's work, three studies had investigated perceptions of the personalities of organizations. Tom (1971 as cited in Slaughter et al., 2004), asked students from a college placement centre to rate the personalities of their most preferred and least preferred organizations using Gough and Heilbrun's (1965) Adjective Check List (ACL) and Allport et al.'s (1951 as cited in Slaughter et al., 2004) Study of Values (SOV) scale. Tom's use of these scales to measure organizational personality is problematic because many items on these scales are not applicable to the task of describing organizations (Slaughter et al., 2004). Advertising Rajagopal (2005), in his study, suggests that social psychological theory of impression formation can be useful in understanding how family brand impressions are formed in addition to the cognitive theories. The creation and transfer of the brand personality is dependent on the way consumers process the

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advertisement. For a thorough understanding of advertising processing, and consequently the creation and transfer of brand personality through advertising, one should also look at the way advertising works. Sujan et al. (1986) showed that in sales interactions, information processing is more extensive when salespersons do not meet consumers' expectations. The advertising appeal with some degree of ambiguity, which leaves consumers with various interpretations, attracts more attention from the consumers (Rameshwar and Chaiken 1991). Advertising Tetrahedron Nerven & Pettersson (2009) reveals that most people want something they reflect or use to improve their self portrayal wit, this is why the creation of brand personality through advertising is so important for buying decisions. By using advertising, the emotional image of the brand and the associated brand personalities establishes a deep relationship between the customer and the brand. Hence, a brand personality can make a brand more interesting and help consumers to express their identities. The complexity of studying the effects of (integrated) marketing communication programmes is similar to the challenges associated with studying memory (Keller, 2001). Recognizing the context sensitivity of memory research, the famed psychologist J.J Jenkins (1979) made the following observation concerning factors affecting memory performance. "The memory phenomena that we see depend on what kinds of subjects we study, what kinds of acquisition conditions we provide, what kinds of material we choose to work with, and what kinds of criteria measures we obtain. Furthermore, the dependencies themselves are complex; the variables interact vigorously with one another" (p.432). Figuratively, these four factors and the dependencies have been represented in what Jenkins calls the "Theorist's Tetrahedron" or the "Problem Pyramid". Each vertex of the pyramid includes all the variables associated with one of the four main factors that affect memory performance; each edge of the pyramid represents two way interactions between factors; each plane of the pyramid represents a three-way interaction and the entire pyramid, or the tetrahedron, represents the four way interaction between all variables. Figure 5: Advertising Tetrahedron

Source: Keller, K. L. (2001), "Mastering the marketing communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs," Journal of Marketing Management, Vol.17, pp. 826.

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Brand Personality and Advertising In most disciplines of marketing science, there has been little systematic analysis on the effectiveness of advertisement. Previous studies have proposed taxonomy for a better understanding of the relationships and linkages between brands and customer portfolios (Rajagopal and Sanchez, 2005). Advertising is by far the most important communication tool in marketing, and brand personality is built with every advertisement. Rajgopal (2005) reveals that advertising is heavily used in the process of personality creation. This follows logically from the fact that personalities are particularly useful for the creation of brand associations. The media's effectiveness in relation to brand personality and customer response to brands may be studied for building long-run branding strategies. However, identifying an appropriate market and starting a meaningful relationship using relevant and entertaining content is generally a much more compelling tactic for creating loyal customers. Verma (2009) specifies that clever advertisers have always relied on the power of advertisement to get their messages across. The personality and psychological factors also lead to differences in cognitive style of different consumers (Cacciopo and Petty 1982). Research is only now beginning to apply learning from cognitive psychology and the affective (neuro) sciences on how meaning is created and memories retained when we are looking at visuals. The implicitness of a visual message involves the beholder more in meaning creation, thereby effectively making him a coauthor. This co-authoring effect (Bullmore, 1990) moves the beholder from adversary to accomplice and makes visuals so persuasive. With the intensifying competition, the major challenge ahead is to create a distinctive image for the individual product. Distinctiveness is the core of the innovative character of an advertising strategy. Consumers with high involvement in purchase evaluate advertising information more thoroughly than individuals with low involvement (Peltier and Schibrowsky 1994; Mantel and Kardes 1999). Such consumers who have high need for cognition often need rational reasons before buying any product. Thus, in such cases consumer response can be initiated by offering information rich advertisements (Petty et al. 1983; Maclnnis and Jaworski 1989; Suri and Monroe 2001). Brand Personality and Consumer Congruity (the connection between brand and consumer traits) Govers and Mugge (2004) revealed that self-congruence was manipulated using product-personality congruence. The findings specifies that people become more attached to products with a personality that is similar (high product-personality congruence), than to products with a personality that is dissimilar (low product-personality congruence) to their own personality. Research has shown that consumers tend to support brands and services whose personalities closely match their own (Kassarjian, 1971; Sirgy, 1982; Batra, et. al, 1993; Temporal, 2001; Kotler, 2003; Wee, 2004), thus allowing them to express themselves through the brands that they use (Dolich, 1969, Aaker, 1997, Fournier, 1994). The review of literature attempted here is just indicative but it substantially emphasizes the need for more focused research especially in the Indian market context. Conclusion Advertising is by far the most important communication tool in marketing and with every advertisement brand personality is built. Understanding how brand personality is created in the minds of consumers is essential for effective use of a company's marketing tools. Effective brand management, encompassing brand personality, is of paramount importance in reaching the overall company goals of satisfaction, loyalty, and profitability. Brand personality is an important, yet largely neglected area in brand management research. Hence understanding the implications of the advertising strategies in building brand personality and user congruity is essential in today's marketing research. Future researches can focus on emphasizing key attributes that customers deem important and facilitates self-congruity with the brand's personality, thus increasing the probability of being chosen by the cus-

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tomer (Kassarjian, 1971; Sirgy, 1982; Aaker, 1999; Kotler, 2003; Wee, 2004). It will also provide supporting evidence for a product-personality congruence effect. Such studies will contribute to the research on product attachment by investigating product-personality congruence as a determinant of product attachment and consumer's purchase decision. Future researches can be done to explore the various mechanisms that help to build brand personality through marketing communications such as advertising. Also to investigate the integration of advertising variability concepts with brand personality and present viable propositions as managerial implications for building a brand's personality while taking the variables of marketing communication into consideration. In addition, findings from future studies could provide future avenues for research to explore how to better assess brand personality congruence and address the gaps that may lead to deflated levels of satisfaction, trust, and ultimately, brand loyalty. It may also aid the companies in appropriating resources in the effort to create and effectively market a distinctive brand personality. Results of the research may have implications for global marketing schemes, particularly promotional and placement considerations. REFERENCES: Aaker, D. (1996). Building Strong Brands. New York: The Free Press. Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34(3), 347-356. Aaker, J. L., and Schmitt, B., (2001). Culture-dependent assimilation and differentiation of the self: Preference for consumption symbols in the United Sates and China. Journal of Cross-Cultural Psychology 32(September), 561-576. Asperin, Estepa Amelia (2007). 'Exploring Brand Personality Congruence: Measurement And Application In The Casual Dining Restaurant Industry'. An Abstract of Dissertation, Kansas State University Manhattan, Kansas. Azevedo, Antonio (2005). 'Clothing Branding Strategies : Influence of Brand Personality on Advertising Response'. Journal of Textile and Apparel, Technology and Management, Volume 4, Issue 3, Spring 2005. Back Ki-Joon (2005). "The Effects of Image Congruence on Customers' Brand Loyalty in the Upper Middle-Class Hotel Industry". Journal of Hospitality & Tourism Research 2005; 29; 448. Batra, R., Lehmann, D. and Singh, D. (1993). "The Brand Personality Component of Brand Goodwill: Some Antecedents and Consequences," in D. Aaker and B.L. Alexander (Editors), Brand Equity and Advertising: Advertising's Role in Building Strong Brands. Hillsdale: Lawrence Erlbaum Associate Publishers, pp. 83-95. Beckman, S. (2002), "Managing consumer-brand relationship: an introduction in the lovemark concept", 31st EMAC 2002 Conference Proceedings, Minho Universitty, Braga, Portugal. Bhatia, Tej K. and Mukesh Bhargava (2008). "Reaching the Unreachable: Resolving Globalization vs. Localization Paradox". Journal of Creative Communications. Biel, A. L. (1997), "Discovering brand magic: The hardness of the softer side of branding", International Journal of Advertising, Vol.16 No.3, pp.199-210. Bilkey, W.J. and Nes, E. 1982: Country-of-origin effects on product evaluations. Journal of International Business Studies 8, 89-99. Blackston, M. (1993), "Beyond brand personality: building brand relationships", in: Aaker, D.A. and Biel, A. (Eds.), Brand equity & advertising: advertising's role in building strong brands, Lawrence Erlbaum

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A Segmentation Analysis of the New Indian Tourist Gaurangi Gandhi and Rajendra Mulye

*

Abstract The Indian outbound tourist market has evolved considerably in recent years. Rising incomes, multiple income households, exposure to international lifestyles, easier financial credits and an upbeat economy have enhanced the travel aspirations and consumption of the Indian consumer. With 15% growth recorded in this market over the last few years, many tourism boards have opened up offices in India to capture a share of this lucrative market. Inspite of the increased interest in this market, the nature of the Indian tourist and their travel motivations remains poorly researched. This paper tries to fill this gap by attempting to understand the general profile, perceptions and travel preferences of Indian tourists. A sample of 127 tourists in the process of pre-purchase search for an overseas vacation was contacted through a travel agent in the city of Mumbai. A structured questionnaire focusing on reasons to travel, preference for destinations, perception of Australia as a vacation destination, travel activities and demographics of the population was administered through an online survey. Cluster analysis of the data identified four distinct segments within the Indian outbound tourist market, viz. Aspirants, Enthusiasts, Explorer and Traditionalists. These segments were found to defer systematically in their perceptions of Australia as a tourist destination and the activities they sought while on vacation. Introduction As a consequence of globalisation and liberalisation of the Indian economy an increasing number of Indians are now able to travel overseas on vacation (Mckinsey, 2007; Nagraj, 2006; Scrase, 2006). This group of new tourists constitute the vibrant group of people that have evolved within middle class Indian society as a result of the neo-liberal reforms implemented over the last two decades (Economist, 2009). McKinsey (2007) notes that this ascendant middle class with its matching purchasing power has developed tastes indistinguishable from those of the prosperous westerners and refers to them as the world's "Next Big Spenders". Luxury cars, designer clothes, full time maids, and overseas vacations are the major application avenues of their disposable incomes. An ever expanding mass of fifty million middle class, which is expected to constitute 41% of India's total population by 2025 has been and will remain most attractive feature of the Indian outbound tourism market. An evident and quantifiable outcome of this prosperity is seen in the outbound tourism market from India which has increased steadily by 15% in last few years and projected to grow annual by 9% (Tourism New Zealand, 2008). The potential of this emerging market is the focus of tourism boards worldwide who have established active presence in India to compete for a share of this attractive market. Although these tourism boards have conducted market studies to understand the general quantum of the market, there is little or no systematic academic research on the travel attitudes, motivations and behaviour of this market. The objective of this research is to explore the nature of these upwardly mobile middle class tourist(s) and attempt to segment them on demographic and behavioural variables. The extent to which these segments differ in their travel motivations and perceptions of Australia as a tourist destination is also investigated.

*

Faculty in RMIT University, Australia

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Literature review Indian Outbound tourism market Although there is lack of understanding of the socio-pscyhological dimensions of the outbound Indian tourist, market research studies carried out by tourism boards have estimated the size and market potential of this market and commented on the rise of the Indian middle class and their aspirations. India's economic growth and the spending power of its citizens have accelerated significantly over the last two decades, with real household disposable incomes doubling in this period (Beinhocker et.al, 2007). With rising incomes, household consumption have also increased, and led to the emergence of a new Indian middle class who have a third of their income available for discretionary spending (Felman, 2007). As people emerge into middle class, they merely don't create a market, they behave and think differently. They are more open-minded, influenced by abstract values than traditional ones, and aspire to travel to exotic places to broaden their horizon (Parker, 2009, Gopal and Srinivasan, 2006). These changing consumption patterns were confirmed in a report by Euromonitor and Singapore Tourism board, which showed a 15%- 20% increase in outbound tourism from India to Singapore in recent years (Euromonitor, 2008; Yahya, 2003). Interestingly, the report also observed that the Indians were spendthrift travellers. When the average daily spend of an Indian tourist was compared to its US counterparts, it showed that Indian travellers spent twice as much as the Americans, spending US$832 per trip compared to US$ 447 spent by an American travellers. Similarly, Singapore Tourism board reported that out of the US$10 billion earned from tourism in 2001, US$5.45 billion were contributed by Indian travellers alone although they made up just 4.5% of the total inbound tourist population (Yahya, 2003). According to Travel Agents Association of India the new trend in travel amongst the Indian tourists is to visit exotic and unconventional destinations. Egypt, Europe, Australia, New Zealand, South East Asia, Turkey and South Africa are the most preferred destinations (Economictimes, 2008). This is driven largely by India's openness to the world, aggressive promotion campaigns by exotic destinations, and growth of low fare carriers. The PATA, 2007 report describes the outbound Indian tourism market as being largely family oriented with a steady increase in 'Free Individual Travellers' and 'Meetings and Conventions' travellers. The Western and Northern part of the country constitute about 60% of outbound tourists followed by South with 25% and other areas with 10%. The report describes Indian travellers as cash rich-time poor, high maintenance and demanding consumers. They have a short lead time for bookings and choose preplanned all inclusive tours (Tourism Australia, India, 2008). India is one of the major sources of outbound tourists from Asia next only to China and Japan (PATA, 2007). India is Australia's 12th largest inbound market with a 14% growth recorded in 2007 representing a total inbound economic value (TIEV) of AU$551 million to the Australian economy (Tourism Australia, May, 2008). The Australian tourism board has opened 15 new offices in the country since 2003 with many more in pipeline to promote Australia (Economic times, 4th May, 2008). The board has launched several promotion campaign in recent years, the most notable being the 'Uniquely Aussie' campaign and the somewhat controversial 'so where the bloody hell are you,' in the Indian market. These campaigns were also launched in other parts of the world with mixed results in terms of their effectiveness. The board seems to have taken the one size fits all approach to its marketing, using the same appeal in all its markets with little effort to understand and segment its markets. Segmentation in Tourism In the tourism industry an individually customized tourism experience can be developed, but the market for such high-end tourism products is small. This does not, however, mean that the only alternative is to appeal to the mass market. The intermediate solution is to understand which groups of tourists have similar needs and develop tourism products that match group needs. This approach is referred to as

29

market segmentation. Segmentation of tourists is useful in terms of marketing to needs of particular group, lowering the costs, and increasing effective penetration of appropriate promotional tool (Dodd and Bigotte, 1997). Market segments can be defined using different segmentation bases, such as sociodemographic variables which are frequently used in tourism as many destinations specialize in family vacations that cater to people with specific socio-demographic characteristics. Behavioural and psychographic segmentation criteria are also being increasingly used. Behavioural variables of interest include ways in which different tourists organize their vacation (e.g. travel agent versus online) or partake in vacation activities which have direct impact on the tourism product design. Psychographic bases include benefits sought, travel motivations and destination preferences. (Dolnier and Kemp, 2008). Regrettably, these 'next big spenders' are poorly researched and little is known about the unique needs of the different segments within the Indian outbound tourist market. Observations of marketing campaigns by tourism boards suggest that the Indian tourist is regarded as a homogenous group that seek similar benefits from visiting a foreign destination. There is a lacuna to be fulfilled by academic researchers in this area to gain a better understanding of these fast-paced tourists and develop relevant products and services. An investigation into the motives, perceptions and segmentation pertaining to travel of the Indian middle class tourists is hoped to be a reasonable contribution to the knowledge in this field. Methodology A database of customers who had travelled overseas or were contemplating to do so was sourced from a travel agent in Mumbai. The respondents were selected by random sampling from the list and were invited to participate in an on-line survey in the October 2008. Of the 400 respondents contacted, 171 participated in the survey resulting in 127 useable surveys and a net response rate of 38%. Analysis A non-hierarchical K-means cluster analysis method was chosen over hierarchical cluster after vigorous trials with the latter on the order of cases in the data set till a stable solution was achieved to determine the number of clusters the data would support. A four-cluster solution appeared to be most appropriate. The clustering base included demographic and behavioural variables. (see Table 1). The solution showed reasonable separation among the groups which allowed for an understandable and consistent interpretation. Cluster group difference was compared using one-way ANOVA. Tuckey's test was used to affirm significant difference between the groups by exploring all pairwise comparison and adjusting the error rate to minimise type I error. The four clusters are described below: Cluster 1: The Aspirants Cluster 1 is the largest cluster made up of young, single, professionals employed in the booming IT industry sector. Although they are not as well travelled or wealthy as the other groups, they have a relatively high discretionary income due to their single status. This group can be best described as young aspirational travellers who are well educated, well informed and well connected to the outside world through technology. This group epitomises the rising middle class and the beneficiary of the economic reforms put into place over the last two decades. This group is a very attractive segment for the Australian tourism market not only because they show the second highest interest in travelling to Australia, but also because their preference for activities show a good fit with what Australia has to offer as a destination. They prefer experiential activities such as snorkelling, shopping, seeing native animals and visiting wineries; over art, heritage and museums.

30

Table 1: Summation table based on the demographic variables constituting four cluster solution. Variables N (%)

Gender (% male) (x² = 1.347, df = 3) Age (years) 20 – 25 years 25 – 35 years 35 – 45 years 50 – 65 years 65 and above Education (%tertiary) (x² = 9.385 , df = 3) Lifecycle stage (x² = 1.353, df = 18) Single Young couple/no child Young couple/child Mature couple/no child Mature couple/child Old couple/child Old couple/no child Occupation (x² = 1.08, df = 12) Self employed Professional IT Other professional (Doctor, teacher, lawyers etc) Managerial/Govt employees Retiree Gross income (INR) (x² = 84.995 , df = 12 ) Less than 5 Lakhs Between 5Lakhs – 10Lakhs Between 10 Lakhs – 15 Lakhs Between 15 Lakhs- 20Lakhs Between 15 Lakhs-20Lakhs More than 20 Lakhs Ever travelled outside India (x² = 21.60, df = 6) (% yes)

Overall Sample 127(100%)

Cluster 1

Cluster 2

Cluster 3

Cluster 4

59(39%)

15(9.9%)

15(9.9%)

38(25.16%)

67.71

64.40%

66.70%

80%

68.40%

10.2 48.8 19.6 13.3 9.4

13 44 2 0 0

0 14 2 0 0

0 0 11 1 3

0 0 12 18 9

48.03

59.30%

56.20%

33.30%

30.80%

28.3 23.6 9.4 3.1 30.7 0.7 5.5

33 19 7 0 0 0 0

11 5 0 0 0 0

0 0 0 1 12 0 2

0 0 0 0 27 4 5

11.8 23.62

5 24

0 2

10 4

0 0

30.7 24.4 11.02

19 11 0

8 6 0

1 0 0

11 14 14

18 35 6 0 0 0

0 0 5 4 7 0

3 3 6 2 1 0

15 18 4 2 0 0

50.80%

68.80%

86.70%

87.20%

69.29

31

Cluster 2: The Enthusiasts Cluster 2 is slightly older than the enthusiasts with an average age in the 25-35 year range. This is a cluster where majority of individuals are from mixed occupational backgrounds, other professionals (doctors, lawyers etc), managerial/working in public sector and IT professionals. Young married couples with children or couples without children are a distinctive feature of this cluster. They are relatively well settled in their careers and have more combined disposable incomes than The Aspirants. This often permits a pleasure-seeking lifestyle, and the pursuit of status goals. The economical and lucrative honeymoon packages tailor-made for Indian travellers have made it easier for average Indian couples to go for honeymoon to exotic destinations outside India. Unlike the older generation, the new average Indian couple starting a family is well entrenched in their careers and tend to make sure they have a relatively secure and stable environment. These new parents are older, better educated, have higher disposable incomes and pursue an upmarket lifestyle that they are able to support with their high incomes. This cluster (68.80%) of population has already travelled overseas and is aware of what they seek in a vacation. These individuals show the highest intentions to travel to Australia. They perceive Australia to be a country of rich flora and fauna, an interesting destination and a good place for young honeymooners. They seem to be very interested in doing as many activities as possible as compared to all of the other clusters. They are enthusiastic in nature and keen to participate in various travel activities, including a desire to experience the local culture. This indicates that they are evolved travellers keen on enriching themselves. This cluster also has the highest combined disposable income which enables them to spend more money on leisure activities. Cluster 3: The Explorers The Explorers segment make up 15% of the sample and is the same size as the Enthusiasts. They consists of slightly older demographic within the 35-45 age range. Only 33% of the respondents in this cluster are tertiary educated, with majority being self employed with a gross income range of 5- 20 Lakhs (INR). This cluster consists of mature couples with children, usually referred to as full nesters. These couples have less discretionary income as compare to the Aspirants and the Enthusiasts as they have more family responsibilities and other financial commitments. They have stable careers, good savings plans and annual vacation plans as part of their budget. These individuals travel mainly during the school holiday season and children play a very important role in influencing their travel decisions. They are more experienced travellers than the Enthusiasts and Explorers segment and seek a more enriching cultural experience, such as interacting with the locals and experiencing ancient cultures. In this respect, they show only moderate interest in travelling to Australia. Cluster 4: The Traditionalists This is the second largest cluster in the sample with the highest average age of all clusters. A majority of them do not have formal qualifications although they have done well in their profession from which they have or are about to retire. The gross annual income is modest and comparable to that of the Enthusiasts. They are older couples with or without children. They may not be classified as 'empty nesters' as many of them may be living with their children in a joint family system. This cluster represents the most experienced travellers of all segments who are least likely to visit Australia. They do not consider Australia to be a very good family destination as they prefer activities which are more relaxed rather than adventure based. They would like to see exotic animals, go to beaches, visit museums and aboriginal sites but are not keen on watching sport events, going snorkelling or doing shopping. This cluster is more rustic and would prefer more reposed vacations. Since these are mature travellers in terms of experience and life stage they tend to seek more quality time with their families or partners or themselves.

32

Perceptions of Australia The preceding analysis demonstrates that the Indian tourists are a heterogenous group and differ substantially in their inherent characteristics and outbound travel expectations. The clusters derived were well defined and segregated, however in order to quantify the actual differences in their perception of Australia and responses regarding their intention to get involved in specific leisure activities during their visit to Australia, a one-way ANOVA was employed on the cluster centres. Tables 2 and 3 illustrate the results. Table 2 clearly indicates the distinctive differences that exist between clusters in reference to their overall perception of Australia as a vacation destination. Overall Australia is perceived to be a pristine country with open and free lifestyle. The most disagreement seems to be between the traditionalist and other clusters on the question of whether Australia is an interesting destination and whether it is an urbanised nation. The traditionalists who make up the mature age, well-travelled group of tourist do not see Australia as an interesting place from the perspective of cultural tourism and are not too enthused about travelling there. They also perceive the country to be somewhat backward. There are minor differences in perception between the Enthusiasts and other clusters on whether Australia has the best serviced apartments and is a good family holiday destination. The Enthusiasts who make up the family segment score low on these attributes than the other segments. Table 2. Overall perception of Australia amongst the four clusters overall perception of Australia

Aspirants (1)

Enthusiasts (2)

Explorers (3)

very free and open lifestyle

3.81

4.06

4.07

3.67

4?3

exotic forests, lakes beaches native animal life

4.19

4.56

4

3.9

4?2

best serviced accommodation of all sorts

3.63

3.56

3.86

3.64

2?3

3.79

4?2 4?1 4?3

very interesting destination for overseas visitors who carry good memories

4

4.19

4

Traditionalist Differences (4)

country with modern cities good for young honeymooners

3.86

4.12

3.79

3.31

4?2 4?3 4?1 3?2

good climate to visit in all seasons

3.65

3.69

4.14

3.69

3?4

a family holiday destination

3.93

4.12

4.36

3.95

3?2

A second ANOVA was employed on the travel/leisure activities Indian tourists would like to do when in Australia to measure the differences in the clusters. Table (3) illustrate the result. The activities the youngest Aspirants are most interested in seem to be shopping followed by a visit to a farm or winery. This is out of character for this young group of travellers, but it could also be that as this there first overseas trip, they may be unsure of what to expect. The Enthusiasts group which include young families are most interested in activities that their children would enjoy. They score high on most activities, but

33

particularly seek out going to the beach, visiting farms/wineries, followed by shopping. They prefer to live in a self contained resort style accommodation. The Explorers group is more into experience seeking and is the only group that is interested in cultural aspects of tourism. They stand out from the other clusters in terms of their interest in Aboriginal culture and in trying out exotic Australia food. They also have moderate interest in visiting museums and art galleries. Finally, the Traditionalist, who represent the most mature travelling segment, do not seem to be interested in any particular activity and appear to be not too enthused about Australia. They show moderate interest in cultural activities such as visiting museums and art galleries. Table 3 Travel activities Indian tourist intend to do Travel & Leisure Activities

Aspirants Enthusiasts Explorers Traditionalist (1) (2) (3) (4)

differences

Go to beach/Go on a river cruise

4.35

4.75

4.71

4.66

4 3, 1 2, 1 4, 2 3

Try exotic Australian food (Kangaroo meat)

3.33

3.38

3.69

3.19

4 3, 3 2,3 1

Visit a wildlife park

4.33

4.69

4.43

4.38

2 1, 2 4, 2 3

Visit amusement parks

3.65

4.06

4

3.56

4 2, 4 3

Visit an ancient aboriginal site

3.73

4.21

4.56

4.03

1 3, 1 2, 3 4

Visit farms/wineries

3.86

4.62

4

3.34

4 2, 2 1

Visit museums/gallery/art centers

3.8

4.25

4

4

1 2

Watch a sport event

3.33

3.75

3.36

2.94

4 2

Do some shopping

4.47

3.94

3.5

2.81

4 2, 4 1, 4 3, 1 3

Staying at a resort

3.73

4.45

3.93

3.62

2 1, 2 4, 2 3

Discussion The emerging Indian middle class with their tendency for conspicuous consumption and travel aspirations is increasingly becoming the focal point of various tourism boards. The aim of this research was to gain a better insight into this market by profiling it on demographic and behavioural terms. The activities that these segments are interested in participating during their vacation and their perception of Australia as a tourist destination were also studied. In essence, the findings indicate that Indian tourists are a composite group of travellers, with each group having well defined behaviours and expectations from a travel product. The four segments of Indian middle class tourists identified in this study were the Aspirants, the Enthusiasts, the Explorers and the Traditionalists. These were further related to their overall perception of Australia and to the travel activities they intend to participate when in Australia. These clusters differ not only in terms of their demographic characteristics but also in their perception of Australia and their choice of travel/leisure activities. While looking into the configuration of the cluster groupings, it is necessary to identify suitable tourist products and services to suit each cluster profile. To be a successful tourist destination in the Indian markets it is important to develop or build on a unique image that matches the travel aspirations of a particular target segment, without alienating other secondary segments. This can be achieved through astute advertising of the unique and diverse tourism facilities of the given area. In case of the Indian

34

markets this becomes extremely important as the country is culturally diverse and multilingual. In this study we observed that the Aspirants and the Enthusiasts are the most likely population to visit Australia because of their favourable perception of the destination, enthusiasm towards gaining travel experience, fast changing and adapting attitudes and high disposable incomes. India has a very young population with an average age of 24.5 years and this study has shown that the Aspirants and the Enthusiasts both perceive Australia as a good honeymoon destination. Based on the findings designing economical and attractive honeymoon packages for these segments would be a viable option for enhancing Australia's competitiveness in this market. Improving Australia's image as a family destination would also help in attracting the Explorers and the Traditionalists markets. Further research needs to be carried out on a larger scale for an in-depth analysis of these clusters using other bases of segmentation, such as psychographics, geographic and cultural dimensions. Also the stability of the segments and their perceptions need to be investigated in light of the recent negative publicity generated through the alleged racial attacks on Indian students studying in Australia. A replication of this study that investigates which particular image dimensions were affected by this negative event would be a valuable addition to the knowledge on how destinations cope with negative events in their macroenvironment. REFERENCES : Beinhocker Eric and Diana Farrell (May 2007), 'Next Big Spender: India's Middle Class', Newsweek International, Mckinsey Global Institute. Dodd, T And Bigotte, V. (1997) 'Perceptual Differences Among Visitor Groups To Wineries Journal Of Travel Research, 35, 46 - 51. Dolnicer S and Kemp B (2008) Handbook of Tourists Theory and Practice: Chapter Tourism segmentation by consumer variables, In Kozak and Decorp (Eds) Published by Routledge. Economic times, (May 2008), Awasthi Raja 'Outbound Travel picks up in India' Euromonitor (June 2007), Oliver Hoffman, 'Number of Indians holidaying abroad is set to double', Published : Euromonitor International, www.euromonitor.com. Felman Joshua, (February 2007) 'Why is India Booming?' International Monetary Fund (IMF) A presentation at Wellesley College USA. Gopal Ashok and Srinivasan Rajesh (2006) 'The new Indian consumer' Harvard Business Review October 2006. Mckinsey Quarterly October, 2007, "Tracking the growth of India's Middle Class ", www.mckinseyquartely.com Nagraj, R. (2006), Aspects of India's economic growth and reforms, Published : Academic foundation, New Delhi. PATA, Travel Mart workshop, Bali Indonesia, (September 2007), Presentation 'Current state of play' by Strategic Intelligence Centre - Koldowski J , Martin O, Hongprapat P , Kongsiripipat P Parker John (February 2009), Special Report 'The new middle classes in emerging markets, Burgeoning Bourgeoisie'. Edn : Economists. Scrase Tim,(2006) 'The 'new' Indian middle class in India : A Reassessment, paper presented at the 16th Biennial Conference of the Asian Studies Association of Australia in Wollongong 26-29 June 2006, Australia. Tourism Australia (May 2008), 'India Visitor Profile 2007', www.tra.australia.com Tourism New Zealand, (2008) India market overview. www.tourismnewzealand.com Yahya Faizal (2003) "Tourism flow between India and Singapore", International Journal of tourism research, Vol 5, pp 347 - 367.

35

Ageism in Service Encounters : A Cross-Cultural Study Jason Scharf, Raj Devasagayam*, R. K. Srivastava **

Abstract There is change occurring in the ageing process we were all once so familiar with, life spans are growing and the overall health of individuals provides opportunities for continued employment beyond conventional retirement ages. The Baby Boomer generation is retiring to a life of activity that involves vacationing, taking care of both their parents and their children, focusing on improving their health, and being consumers with high levels of discretionary income. The findings of this study become especially important when you take into consideration the volume of Baby Boomers who are returning to the work force rather than stepping out of it, unlike the traditional elderly who simply retire. Key Words Baby Boomer, Service Encounters, Ageism Introduction There is change occurring in the ageing process we were all once so familiar with, life spans are growing and the overall health of individuals provides opportunities for continued employment beyond conventional retirement ages. The Baby Boomer generation is retiring to a life of activity that involves vacationing, taking care of both their parents and their children, focusing on improving their health, and being consumers with high levels of discretionary income. There is one important trend that should be of interest to marketers - Baby Boomers are returning to the work force. While much research has been done on how to react to this new generation and their consumption habits, little is being done to see how the younger generations are reacting to the Baby Boomers who are returning to the work force to serve younger consumers. Baby Boomers are here and are ready to work; it is now a matter of whether or not younger generations are ready to engage in transactions for their goods and services from salespeople that might well be of their grandparent's age! The reality of the situation is that both teenagers and people sixty five years and older are waiting tables in the same restaurants, working the same cash registers in the same grocery stores, and working in your favorite fast food restaurants; the question now becomes, how will younger consumers react to this age gap? The problem is further compounded in international marketing as different cultures react differently to the elderly. This research intends to find a starting point to better understand how the Baby Boomers will be perceived as service providers by Generations X and Y. Will they be perceived as effective and efficient or discriminated against? Such perceptions may determine whether Baby Boomers will be accepted back into the workforce as service providers or if they will be discarded from service jobs because of the lack of tolerance from younger generations. We attempt to determine how younger generations perceive the elderly and if ageism plays a role in these perceptions across two different cultures, that of the US and India. The findings of this study become especially important when you take into consideration the volume of Baby Boomers who are returning to the work force rather than stepping out of it, unlike the traditional *

Professors of Marketing and Management Siena College Loundonville, New York Emeritus Professor and Head--PhD, University of Bombay. Somaiya Institute of Management Studies & Research (SIMSR)

**

36

elderly who simply retire. How our generation X and Y consumers react to Baby Boomers as service providers will dramatically change the way companies hire, the way marketers strategize, the way consumers shop for their goods, and may guide public policy and laws about age discrimination in the workplace. Rationale For The Study Feagin and McKinney (2003) define discrimination as follows: "Discrimination can be defined as the actions arising from institutions and individuals that disproportionately and systematically harm members of socially marginalized groups." In other words, discrimination is a behavior that is influenced by the society one belongs to and by the experiences an individual has with any particular group of people; that behavior becomes a tool, a reference point, an influencer, and an inhibitor. Discriminating a person based on age is considered Ageism. Ageism is no different than discrimination based on sex, race, or disabilities, although little has been done to educate people about the implications of age discrimination. Building on sociological conception of discrimination, several decades ago Butler (1975) defined ageism as the "systematic stereotyping of and discrimination against older people because they are old, just as racism or sexism accomplished this with skin color and gender." Ageism can destroy productivity in the workplace and can have a negative "snowball effect" in the fight against age discrimination. Simple things that are ordinarily considered comical such as an "over the hill" birthday card, or even things not comical such as not giving someone a chance at the new computer training course being offered because you assume they wouldn't take on as quickly as the younger generations, all have very negative implications. In Europe, laws are being passed to proscribe acts of ageism with the European Union's Equal Treatment in Employment and Occupation Directive, which was enacted in December of 2003, and in the UK, anti-ageist legislation has been passed as recently as October of 2006. The problem Ageism causes is the association of old age with incompetence, and making that association is no better then assuming that a woman couldn't work on a construction site, or an African American wouldn't be as educated as a Caucasian. Even reading the analogy of the woman and the African American probably makes you feel uncomfortable, because we've been conditioned to know that discrimination based on sex or race is wrong. Age discrimination is a more socially acceptable form of discrimination; it is just not considered as taboo as some of the other forms of discrimination we've been exposed to. Kruse and Schmitt (2006) cites Butler and builds upon his notion of ageism by stating that: "Butler coined the term ageism to refer to a global phenomenon that had three distinguishable but interrelated prejudicial components: negative attitudes about older people; negative views about one's own old age and the ageing process; and 'age discrimination', including the institutional practices and policies that (even without malice) perpetuate stereotypical beliefs about older people." Kruse and Schmitt (2006) provide a multidimensional scale on ageism that displays psychometric properties that lend to generalization across empirical settings. The reason why this scale is so valuable is because it measures perceptions of old age from old age being extremely beneficial to society to being an extreme burden on society. It is also important to note that Ageism is not limited to old age and that age discrimination against younger generations also exists outside of legal constraints as pointed out by Marshall (2007). The research conducted in this paper, however, will remain focused on the Generation X and Y perceptions of the Baby Boomer Generation. In many court cases of age discrimination we find that there is alleged discrimination, focused on old age, from an employer towards and employee. There are two lawsuits: Gallo v. Second Taxing District, City of Norwalk, 2007 WL 2428623 (D. Conn. 2007) and Berquist v. Washington Mutual Bank, 2007 WL 2460350, which are excellent examples of what constitutes age discrimination in the workplace. These two cases work remarkably well with one another because one provides an example of clear cut age

37

discrimination and the other shows an example of what is not considered age discrimination. In the opinion of the courts, the word choice, the person from whom the words come from, and the time frame and setting of where the transaction of words occurs are the determining factors as to whether age discrimination has occurred or not. From the cases we learn that "old geezer" would probably be considered a term that would constitute age discrimination but the term "senior employee" would not, for instance. In both of those cases, the discrimination occurred because an employee felt their employment was terminated because of their age. In some other cases, Baby Boomers are finding it tough to find jobs in the first place. In an article published May 27, 2007 in the New York Times, Kelly Holland found that In 2006 the average person over age 55 looking for work took 22 weeks, a heavy increase from the 16 weeks it took the average person under age 55 to find work. Also in the same article, "a study by the Center for Retirement Research at Boston College, sampling employers in Massachusetts and Florida, found that younger workers were about 40 percent more likely to be called in for job interviews than were candidates 50 or older." This statistic would clearly indicate that there is a preference for younger workers. This problem, however, will only intensify as the number of workers age 55 and older in the USA is expected to increase by 11 million from 2004 to 2014! In international markets the notion of ageism and perception of the elderly and their role might be completely different in two cultures. For instance, cultures that are high context versus low context could view the elderly completely differently. Hofstede (2001) in his seminal work on the impact of cultures on international business strategies studied over 90,000 people in 66 countries to propound his theory of cultural values. He proposed several dimensions on which cultures could be measured and indexed. Hofstede and his successors have empirically established that cultures that rate high on Power Distance Index and Individualism versus Collectivism demonstrate significant differences in culture to merit examination in terms of their perceptions of the elderly. It is with this in mind that we examine our research question in two significantly different cultures, that of the United States and India. Survey Design and Data Collection The survey itself was designed with ease in mind. The survey is formatted in a way that was both easy to administer and attractive enough for respondents to be willing to participate in the survey. The internet was the mode of media used to design, host, and analyze the survey, the internet was also used to recruit the participants in our sample. Through the use of a survey hosting website, the nine multiple part question survey was sent via email and social networking websites to members of Generation X born between the years 1976 and 1990. After the survey questions, participants were asked to answer a few additional questions about themselves pertaining to age, race, level of education, gender, undergrad major, income level, and family size. These questions proved to be helpful in further dissecting the Generation X perspective of Baby Boomers as service providers and figuring out which demographics within the Generation X demographic responded favorably and unfavorably to a variety of situations involving people in the Baby Boomer Generation. Additionally, a better understanding of which Generation X members responded was attained. A convenience based random sample of 216 individuals born in the USA and 46 individuals born in India, between the years 1976-1990 was used for this study. Within that age demographic just over eighty five percent of respondents were born between 1986 and 1990 (86%), nine percent born between the years 1981-1985, and the remaining five percent between 1976 and 1980. Over half of the respondents' highest level of completed education was sophomore, junior, or senior year of college (56.2%). Seven and a half percent of respondents had completed Masters or PhD program and just over twelve percent had only completed a high school level of education; this gives the survey a healthy variety of level of education. Of those respondents still in college, thirty three percent are business majors, nearly twenty three percent major in natural sciences, just over twenty one percent are social science majors, just fewer

38

than eighteen percent are humanities majors, and just about five percent are double majors. Eleven states of the US are represented in this survey, but nearly ninety percent of respondents answered that they were originally from New York. Similarly, the India sample consisted mostly of students from Mumbai University. Findings And Discussion For the purposes of this study, two primary questions were chosen for analysis. Both questions contain a series of sub-questions pertaining to two different purchasing decisions, one with a high level of customer involvement and one with low customer involvement service encounters. The participants were asked to imagine themselves in a shopping situation where they were checking out at a grocery store (low-involvement) and a situation where they were purchasing a new computer (high-involvement). The questions were designed to gain an understanding of the participants feeling about engaging in these two different purchasing decisions when the person providing the service was from the Baby Boomer Generation. For the purposes of this study, several questions were carefully selected and the answers of respondents from the USA and India were compared. Nearly all questions analyzed were statistically significant at the 0.1 level; many questions were even statistically significant at the 0.01 level. When our survey participants were asked if they enjoyed working with coworkers who were 55 years of age and older more respondents from the USA, than from India, sample agreed that working with coworkers 55 and older is enjoyable. This was found to be significant at the 0.0001 level (p value: 0.00001). When participants were asked if they felt they had a lot in common with coworkers 55 years and older, the USA sample seemed to feel they had more in common than the India sample. Again, this was found to be significant at the 0.0001 level (p value: 0.0000). The USA sample also greed slightly more than the India sample in feeling that coworkers 55 years and older served as a good example in the workplace. This result was found to be significant at the 0.01 level (p value: 0.0080). The USA sample also agreed slightly more than the India sample that people 55 years and older were effective as service providers, this is also statistically significant at the 0.01 level (p value: 0.0620). The participants of the survey were then put on the consumer end of the interaction with a service provider 55 years and older. Two purchase situations were used: one where the customer was purchasing a computer at an electronics retailer, and the other where the customer was purchasing everyday items at a local convenience store. These two situations are intended to fulfill a purchase situation with high customer involvement and a purchase situation with low customer involvement. In the high customer involvement purchase situation the India sample seemed to be more comfortable and less hesitant to purchase a computer from a salesman 55 years and older than the USA sample. The India sample also seemed to feel they were getting a good deal and getting the right computer from a service provider 55 years and older than the USA sample. None of these results, however, were statistically significant. As far as the low customer involvement purchase situation, the USA sample felt more comfortable purchasing everyday items from a service provider 55 years and older (p value: 0.0020), the USA sample also agreed more that they feel they would be properly helped by the service provider 55 years and older (p value: 0.0350), and the USA sample also felt they would receive adequate service from a service provider 55 years and older in this purchase situation more so than the India sample (p value: 0.0030). Lastly, the USA sample agreed that the age of the service provider in the low customer involvement situation had no impact on their purchase decision more so than the India sample (p value: 0.0400). The last section of questions in the survey deals with the level of ageism the participant feels towards those that are 55 years and older. Going along with what was found in the high customer involvement purchase situation, the USA sample felt that people of their own age are more efficient with technology than those 55 years and older (p value: 0.0060). The India sample felt more comfortable than the USA

39

sample purchasing a computer from a service provider 55 years and the USA sample feels that people their own age are more efficient with technology. In regard to the survey participants view on old age and ageing, the India sample seemed to feel that old age is a time free from external obligations (p value: 0.0210). The USA felt that old age is a time of life where those 55 years and older may be more vulnerable to dependency (p value: 0.0070) and a time of life where people 55 years and older are discriminated against (p value: 0.0090). The India sample agrees that people 55 years and older are more respected than the USA sample did (p value: 0.0010) as well as disagreed more that old people are disrespected than the USA sample (p value: 0.0000). The USA sample agreed slightly more that old people do not receive the recognition they deserve for their earlier achievements (p value: 0.0100), but the India sample felt that old people sometimes have unreasonable needs (p value: 0.0310). The USA sample, however, agrees that old people become burdens on their loved ones and on society more so than the India sample, both of these findings were found to be significant at the 0.0001 level (p value: 0.0000).

Country Comparisons: Means of Key Questions Mean I enjoy working with coworkers that are 55 years and older.

USA INDIA

3.45 2.79

I find I have a lot in common with coworkers 55 years and older.

USA INDIA

2.83 1.90

I feel that coworkers 55 years and older serve as a good example in the workplace.

USA INDIA

3.82 3.40

I feel that people 55 years and older are effective as service providers.

USA INDIA

3.71 3.41

If I were buying a new computer from a salesman who was 55 years and older, I would feel comfortable

USA INDIA

3.06 3.00

If I were buying a new computer from a salesman who was 55 years and older, I would feel like I was getting the right computer

USA INDIA

2.76 3.03

If I were buying a new computer from a salesman who was 55 years and older, I would feel like I was getting a good deal

USA INDIA

3.08 3.18

If I were buying a new computer from a salesman who was 55 years and older, I would feel more comfortable purchasing it from someone in my own generation

USA INDIA

3.62 3.38

If I were buying a new computer from a salesman who was 55 years and older, I would feel hesitant

USA INDIA

3.16 2.94

If I were buying a new computer from a salesman who was 55 years and older, I would feel that age of the salesman has no effect on my purchase decision

USA INDIA

3.15 3.29

Computers: High Involvement

40

Groceries : Low Involvement If approaching a cashier at a grocery store who is 55 and older, I would feel comfortable

USA INDIA

4.20 3.71

If approaching a cashier at a grocery store who is 55 and older, I would feel like I was being properly helped

USA INDIA

4.08 3.74

If approaching a cashier at a grocery store who is 55 and older, I would feel like I was receiving good service

USA INDIA

4.01 3.53

If approaching a cashier at a grocery store who is 55 and older, I would feel more comfortable purchasing it from someone in my own generation

USA INDIA

2.67 2.97

If approaching a cashier at a grocery store who is 55 and older, I would feel hesitant

USA INDIA

2.12 2.32

If approaching a cashier at a grocery store who is 55 and older, I would feel that age of the cashier has no effect on my purchase decisions

USA INDIA

4.20 3.79

I feel that other people of my age would feel they are more efficient with new technology than those 55 years and older.

USA INDIA

4.26 3.73

Old age is a phase of life free from external obligations.

USA INDIA

2.83 3.33

Old age is a time where one may be more vulnerable to dependency.

USA INDIA

3.59 3.09

Older people are discriminated against.

USA INDIA

3.69 3.22

Older people are respected.

USA INDIA

3.72 4.24

Older people are disrespected.

USA INDIA

3.38 2.24

Older people do not receive the recognition they deserve for earlier achievements.

USA INDIA

3.72 3.27

Older people sometimes have unreasonable needs.

USA INDIA

2.96 3.33

Older people sometimes become burdens on their loved ones.

USA INDIA

3.40 2.30

Older people can be burdens on society.

USA INDIA

2.99 2.00

Ageism

41

ANOVA Results Country Comparisons df

F

Sig.

I enjoy working with coworkers that are 55 years and older.

Between Groups 1 Within Groups 254 Total 255

14.2900 0.0000

I find I have a lot in common with coworkers 55 years and older.

Between Groups 1 Within Groups 253 Total 254

28.6760 0.0000

I feel that coworkers 55 years and older serve as a good example in the workplace.

Between Groups 1 Within Groups 253 Total 254

7.1800

0.0080

Between Groups 1 Within Groups 234 Total 235

3.5160

0.0620

If I were buying a new computer from a salesman who was 55 years and older, I would feel comfortable

Between Groups 1 Within Groups 234 Total 235

0.1100

0.7400

If I were buying a new computer from a salesman who was 55 years and older, I would feel like I was getting the right computer

Between Groups 1 Within Groups 234 Total 235

2.3310

0.1280

If I were buying a new computer from a salesman who was 55 years and older, I would feel like I was getting a good deal

Between Groups 1 Within Groups 233 Total 234

0.4310

0.5120

If I were buying a new computer from a salesman who was 55 years and older, I would feel more comfortable purchasing it from someone in my own generation

Between Groups 1 Within Groups 231 Total 232

1.3270

0.2510

If I were buying a new computer from a salesman who was 55 years and older, I would feel hesitant

Between Groups 1 Within Groups 232 Total 233

1.2950

0.2560

If I were buying a new computer from a salesman who was 55 years and older, I would feel that age of the salesman has no effect on my purchase decision

Between Groups 1 Within Groups 234 Total 235

0.3410

0.5600

If approaching a cashier at a grocery store who is 55 and older, I would feel comfortable

Between Groups 1 Within Groups 234 Total 235

10.0320 0.0020

If approaching a cashier at a grocery store who is 55 and older, I would feel like I was being properly helped

Between Groups 1 Within Groups 233 Total 234

4.4880

I feel that people 55 years and older are effective as service providers.

Computers: High Involvement

Groceries : Low Involvement

42

0.0350

If approaching a cashier at a grocery store who is 55 and older, I would feel like I was receiving good service

Between Groups 1 Within Groups 232 Total 233

9.2440

0.0030

If approaching a cashier at a grocery store who is 55 and older, I would feel more comfortable purchasing it from someone in my own generation

Between Groups 1 Within Groups 234 Total 235

2.4520

0.1190

If approaching a cashier at a grocery store who is 55 and older, I would feel hesitant

Between Groups 1 Within Groups 232 Total 233

1.3140

0.2530

If approaching a cashier at a grocery store who is 55 and older, I would feel that age of the cashier has no effect on my purchase decisions

Between Groups 1 Within Groups 233 Total 234

4.2790

0.0400

I feel that other people of my age would feel they are more efficient with new technology than those 55 years and older.

Between Groups 1 Within Groups 225 Total 226

7.8430

0.0060

Old age is a phase of life free from external obligations.

Between Groups 1 Within Groups 227 Total 228

5.4380

0.0210

Old age is a time where one may be more vulnerable to dependency.

Between Groups 1 Within Groups 226 Total 227

7.2840

0.0070

Older people are discriminated against.

Between Groups 1 Within Groups 225 Total 226

6.9000

0.0090

Older people are respected.

Between Groups 1 Within Groups 226 Total 227

11.3860 0.0010

Older people are disrespected.

Between Groups 1 Within Groups 225 Total 226

38.9240 0.0000

Older people do not receive the recognition they deserve for earlier achievements.

Between Groups 1 Within Groups 226 Total 227

6.7520

0.0100

Older people sometimes have unreasonable needs.

Between Groups 1 Within Groups 226 Total 227

4.7240

0.0310

Older people sometimes become burdens on their loved ones.

Between Groups 1 Within Groups 224 Total 225

33.3640 0.0000

Older people can be burdens on society.

Between Groups 1 Within Groups 225 Total 226

23.1750 0.0000

Ageism

43

Concluding Remarks Participants in this study, overall, seemed to be relatively comfortable with the idea of purchasing their computers and groceries from members of the Baby Boomer generation. However, a more detailed analysis of responses across two different cultures yields interesting results both in terms of conformance and divergence of views. Further analysis of data and continued enquiry in this stream of research could yield useful insights for marketers interested in multiple international markets with diverse cultures. While the limitations of this preliminary survey bound the research to a small sample from India, our findings could very possibly be representative of a much larger Generation X sample. Further research with larger samples is suggested. Future waves of survey administration might have to be more mindful of better representation and sufficient variance in the samples. This study only began to scratch the surface of an area of market research that has many possibilities for further exploration. Our efforts to further understand exactly how members of Generation X are reacting to Baby Boomers as service providers are continuing. These preliminary findings are in no way conclusive, but rather are a beginning and are intended to act as a starting point and a motivator for further, broader research to be done. REFERENCES : Anonymous (2007), "Senior Employee" vs. "Old Geezer": Which Proves Age Discrimination? Fair Employment Practices Guidelines, 1-2. Butler, R. N. (1975), Why Survive?: Being Old in America. San Francisco: Harper & Row. Feagin, Joe R., and Karyn D. McKinne (2003), The Many Costs of Racism. Rowman and Littlefield Publishers. Hofstede, Geert, (2001), Culture's Consequences, 2nd. Ed., Thousand Oaks, CA, SAGE). Holland, K. (2007), Out of Retirement And Into Uncertainty. New York Times, , May 27, p. 3.17. Marshall, V. W. (2007), Advancing the Sociology of Ageism: A Special Section (Vol. 1, 86th ed.), University at North Carolina . Schmitt, E. (2006, May). A multidimensional scale for the measurement of agreement with age stereotypes and the salience of age in social interaction, ageing and Society, 26(3), 393-411, Cambridge University Press.

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Efficient Marketing Strategies under Global Financial Crisis 2008 - 2009 : The Cases of Mexico, Canada and India Hyun Sook Lee*, Raymond G. Ilson**, R. K. Srivastava***, R. Ganesan****

Abstract For this paper, we intend to describe the trends of global financial crisis during 2008 - 2009; compare the impact of financial crisis in Mexico, Canada and India during the same period; and offer efficient marketing strategies for the survival strategy under global financial crisis. Under global financial crisis (2008 - 2009), most countries of the world have been affected negatively. In terms of Mexico, it is expected to have one of the lowest growth rates during 2010, in the Latin American region. Influenza A(H1N1) has impacted its economic recovery, particularly its tourism industry and auto sector which are important for its economy in terms of national income. The economic downturn also affected Canada by virtue of the Automotive Products Trade Agreement. However, car companies have implemented creative marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sale. Indian economy would be less adversely affected by the global economic crisis because of limited integration and other inherent strengths has proved to be wrong. During economic downturns, it is reported that the choice of marketing tactics is influenced by the company´s external environment, to entice reluctant consumers. It is recommended that care be increased for brand positioning and for low-cost/price strategies. However, it is important not to alienate customers who still want to buy luxury items, a broad range of product offerings must be provided. Also, creative marketing strategies, maintaining good public relations and effective channels of distribution, and providing after-sales support and encouraging productivity, as well as focusing on those segments that are growing despite the recession are recommended. Key Words Marketing strategies, financial crisis 2008 - 2009, Mexico, Canada, India Introduction Over the past few decades, financial crises have become a recurrent phenomenon. A number of them have taken place in Latin America, including those originating in Argentina, Brazil and Mexico. The midto late-1990s saw the Japanese, East Asian and Russian financial crises. We are now experiencing a global financial crisis. This crisis is the latest phase of the evolution of financial markets under the radical financial deregulation process that began in the late 1970s. This evolution has taken the form of cycles in which deregulation accompanied by rapid financial innovation stimulates powerful financial booms that end in crises. Governments respond to crises with bailouts that allow new expansions to begin. As a result, financial markets have become ever larger and financial crises have become more threatening to society, which forces governments to enact ever larger bailouts (Crotty, 2009; Ebook …, 2009). Some, such as the Asian economies, appear to be pulling out strongly, boosted by national economic stimulus plans. Others are still plainly in the doldrums. In Central and Eastern Europe and Russia, economic growth has yet to rebound. Latin America was hit badly, though there are signs this region may *

Professor and Researcher, National Autonomous University of Mexico, **Director Environmental Health and Safety Office Dalhousie University, Canada, *** Emeritus Professor and head-PhD cell K.J. Somaiya Institute of Management Studies & Research, India, ****Director PAI International Centre for Management Excellence, Pune, India

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be among the first to start the long haul back to healthy growth (Beacham, 2009). In the meanwhile, the 18th session of the UN World Tourism Organization (UNWTO) General Assembly convened in Astana, Kazakhstan, from October 5-8, 2009. The session aimed to determine how the tourism industry can surmount the decline brought on by the economic crisis while responding to the twin challenges of climate change and poverty alleviation. One of key issues to be addressed included the facilitation of tourist travel, pandemic preparedness in the framework of influenza (H1N1), and technical cooperation to promote sustainable development through travel (UNWTO …, 2009). Given the current economic crisis, it will take a lot of creativity and hard work for restauranteurs to survive. The good news is that by nature, restauranteurs already are some of the most hard-working and creative business owners. Operators will need to remind patrons why they should frequent their locations. Doing so will require an ongoing creative mind-set in order to look for new methods. Creativity, hard work and familiarity all are ingredients that operators will need to draw upon in order to navigate this economic crisis (DeLeon, 2009). On the other hand, in a recent industry survey, the majority of affiliates see the economic crisis as an opportunity, compared to less than a third regarding it as a threat. Such confidence is born from a deep understanding of how the strengths of the business model become a safe haven for advertisers in difficult times, as well as a recognition that affiliate marketers are nimble entrepreneurs, ready to adapt to fast-changing circumstances. Because affiliates only get paid when they help make a sale, no advertiser budget is wasted. Affiliate marketers have been early adopters of new tools and techniques, able to shift their strategies and tactics when circumstances change (Glasgow, 2009). For this paper, we intend to describe the trends of the global financial crisis during 2008 - 2009; compare the impact of financial crisis in Mexico, Canada and India during the same period; and offer efficient marketing strategies for survival under a global financial crisis. This paper is supported by references to current secondary sources, principally journal publications, website publication, news papers, etc. I. Trends of global financial crisis during 2008 - 2009 1.1 World The world economy crashed in 2008 because important players, especially bankers in the USA, acted like sorcerers' apprentices in pursuing their business goals. They unleashed forces they could not control, which in a matter of months upset virtually the entire global economy. Out of the ruins of the existing economic order, a new and different global order will undoubtedly arise, with a different balance of power between the main players. Most important for this new world order is that it should prevent business leaders from striving for personal financial goals that bring disaster to the greater society (Hofstede, 2009). It is noted that the current financial crisis appears to be concentrated mainly in North America and Europe. The spillovers from the banking system crises to investment do not appear to be large, but the same probably cannot be said of the effects on consumption, at least in the UK and the US and perhaps in Spain (Barrell and Hurst, 2008). 1.2 North America U.S.A. The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005-2006. High default rates on "subprime" and adjustable rate mortgages (ARM), began to increase quickly thereafter. However, once interest rates began to rise and housing prices started to drop moderately in 2006-2007 in many parts of the U.S., refinancing became more difficult. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home

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prices failed to go up as anticipated, and ARM interest rates reset higher (Financial crisis of 2007-2009, 2009). Since 2008, the U.S.A. has experienced a high level of unemployment, homelessness, increasing deficits at state universities including California State University and other unexpected examples. It is hoped that the current administration, under President Barack Obama´s efficient leadership, may enable the country to recover from the current economic recession. Canada Canada was one of the last economies to succumb to the pressure exerted by market forces but the impact has not, so far, been quite as severe as that experienced in other parts of the world. A quick and sudden downturn in global commodity prices, which have been at record levels in the past few years, and a slowdown in the manufacturing sector have contributed to the recent decline. In addition, the economic malaise in the U.S.A., Canada´s largest trading partner, has had a depressive effect on the Canadian economy. However, economists and market analysts point to a number of mitigating factors, including Canada´s strong banking system, that may be softening the blow that Canada and its real estate market have had to absorb from forces that have crippled economies and once venerable and robust financial institutions worldwide (Hutmacher, 2009). 1.3 Latin America Much of Latin America depends on trade with the United States, which absorbs half of Latin America's exports, alone, for example. As such, Latin America will also feel the effect of the US financial crisis and slower growth in Latin America is expected (Shah, 2009). A number of countries in the region have come together in the form of the Latin American Pacific Arc and are hoping to improve trade and investment with Asia. Diversifying in this way might be good for the region and help provide some stability against future crises. For the moment, the integration is going ahead, despite concerns about the financial crisis (ibid.). 1.4 Europe Some think the European Union and the Euro zone may not survive the tremors. European Commission President Jose Manuel Barroso has stated "The European Union is facing an unprecedented situation due to the economic crisis and needs to work at different levels to restore credit flows.". He said the bloc's economy is expected to contract by 2 percent in 2009 (Schechter, 2009). France is heading towards a permanently higher deficit, and Europe's stability and growth pact is now effectively suspended (Munchau, 2009). The crisis has led to deep recessions in most of the CentralEastern Europe (CEE) countries and had a dramatic impact on public finances in all. Although CEE is likely to begin to recover in 2010, there will be no return to rapid pre-2008 growth rates (PROSPECTS 2010: CEE economies, 2009). 1.5 Asia Asia Pacific markets are closely tied to those of the USA, particularly those of the more industrialised countries, and therefore suffered similar losses. However, since Asia's financial systems are relatively resilient, the greater effect will be felt on the real economy, particularly since the negative impact of the crisis will exacerbate existing trends of worsening fiscal deficits and currency weakness. Economic growth will slow across the region, although India and China will retain relatively higher rates of growth (Eghbal, 2009). 1.6 Oceania and Africa Australia became the first Group of 20 country to raise interest rates since the start of the financial crisis, setting the stage for a market-rattling divergence among the world's central banks. Australia avoided

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recession thanks to a relatively strong banking system, a quick fiscal stimulus and strong Chinese demand for its commodities (Frangos and Hilsenrath, 2009). On a more negative note, in May 2009, the International Monetary Fund (IMF) warned that Africa's economic growth will plummet because of the world economic downturn, predicting growth in subSaharan Africa will slow to 1.5% in 2009, below the rate of population growth. This revised downward a March 2009 prediction of 3.25% growth due to the slump in commodity prices and the credit squeeze. South Africa, Africa's largest economy, has entered into recession for the first time since 1992, due to a sharp decline in the key manufacturing and mining sectors (Shah, 2009). II. Impact of global financial crisis in selected countries:Mexico, Canada and India 2.1 Mexico Economic Trends: Due to its proximity to the US and its close relationship via the NAFTA and other agreements, Mexico is expected to have one of the lowest growth rates for the region during 2010 at 1.9%, compared to a downgraded forecast of 3% for the rest of the region (Shah, 2009). Mexico is one of the very few leading emergent economies where there has been little evidence of recovery coming through in "hard" economic data; even desperately hard-hit Russia has seen some improvement in its June and July data. With the swine flu crisis of end-April/early-May, 2009, depressing activity during Q2, preliminary data for Q2 show that Mexican GDP contracted by 1.1% on the quarter. This follows on from Q1's disastrous plunge of 5.8% and the earlier declines of 2.4% in Q4 and 0.7% in Q3. The key factor behind the severity of Mexico's recession has been the collapse of its exports to the US, and the domino impact to the rest of the economy via falling employment and wages (Mexico still …, 2009). Influenza A(H1N1) virus: On April 27, 2009, the Mexican government announced that schools of all levels throughout the nation would be suspended until May 6 in order to prevent the spread of the flu. As of May 27, the Mexican Health Ministry confirmed 4,910 cases of influenza A(H1N1) in Mexico, including 89 deaths (Informative Bulletin …, 2009). By November 7 of the same year, they confirmed 61,633 cases of influenza A(H1N1) and 482 deaths. Among them, 50.6% were men and 49.4% women, whereas 70.1% were registered among 20 and 54 years of age (Confirma SSA…, 2009). Some specific sectors: a) Automobile sector: Most automobile companies in Mexico have suffered significant sales declines during 2008 - 2009. This should have resulted in partial suspension of production with temporary layoffs without pay. Instead, these companies terminated their Mexican employees, an action that could negatively affect the Mexican economy even more with the creation of increased unemployment. To support this situation, the Mexican Federal Government has offered the automotive industry a bailout package to enable them to stay afloat in these trying conditions. "Approximately 60 big companies bonded to the automotive industry are looking to benefit from the Technical Stops Program developed by the Mexican Federal Government. This program is "designed to help companies by paying a third of the total payroll to avoid dismissals" (Research and Markets …., 2009). b) Tourism: Mexico is trying to give a boost to its tourism industry, which has suffered as a result of the A(H1N1) flu outbreak. The national campaign is called "Vive Mexico" (Experience Mexico). This advertising campaign will have a federally-funded investment of 90 million pesos, and the goal is to enlist Mexicans in revitalizing the tourism industry and counteracting the negative publicity from the epidemic (Informative bulletin …, 2009; .Mexico marks $90m …, 2009). 2.2 Canada Economic Trends: While the United States reels from the global financial crisis, with credit markets still frozen and stock prices careening from highs to lows, Canada has remained relatively insulated (Richburg,

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2008). However, there is no doubt that the crisis has raised significant concerns with Canada's economy: the TSX has declined considerably since it peaked in June 2008, and thousands of jobs have been lost since last October - 387,000 in Canada alone. But as 2009 draws to a close, there may be reason to be cautiously optimistic. Stock markets are once again rising and, as our analysts note in this issue of Fraser Forum, many economists are now predicting growth in Canada's economic output (GDP) for the third and fourth quarters of 2009 (Fryer, 2009). The conventional wisdom is that Canada managed to avoid the worst of the financial crisis and resulting recession because of its innate conservatism and aversion to risk. While that certainly fits the widespread stereotype of Canadians, the reality is a little different. Canada owes at least as much to its traditional focus on the fundamentals of business. Moreover, recent developments in Canadian corporate law demonstrate that rapid change and innovation, and not conservatism, are the real driving forces in Canadian business today (CANADA …, 2009). Influenza A(H1N1) virus: For the week ending October 31, 2009, a total of 7,970 specimens tested positive for influenza. Overall, 99.7 per cent of these have been confirmed as pandemic H1N1. Infections and hospitalizations have been increasing, and most provinces and territories have delayed all or parts of their regular seasonal influenza programs until after the H1N1 vaccination campaign is complete (Kirkey, 2009). The travel, restaurant and hotel industries, as well as retailers in shopping malls, in Canada have been affected as well by the H1N1 pandemic. The initial outbreak of H1N1 earlier year 2009 in Mexico very quickly resulted in the infection of a number of Canadian student visitors from Windsor, Nova Scotia, Canada. As was the case with SARS in 2003, tourism declined significantly, resulting in job losses in the air transportation, travel services and accommodation industries (H1N1 could hamper …, 2009). Some specific sectors: a) Auto sector: The automotive industry crisis of 2008-2009 was a part of a global financial downturn. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement (Automotive industry crisis of 2008-2009, 2009). Most car companies from Asia, Europe, North America and elsewhere experienced double-digit percentage declines in sales. In response to this challenge, these companies have implemented creative marketing strategies to entice reluctant consumers. Major manufacturers, including the Big Three and Toyota offered substantial discounts across their product lineups. The Big Three faced some criticism for their recent product lineups, which were seen to be irresponsible in light of rising fuel prices. North American consumers turned to higher-quality and more fuel-efficient products of Japanese and European automakers. However, many of the vehicles perceived to be foreign were actually "transplants," foreign cars manufactured or assembled in the United States, at lower cost than true imports (ibid.) b) Tourism: Tourism has declined for a number of reasons, including the strength of the Canadian dollar largely due to the strength of Canadian financial institutions and the richness and demand for Canadian natural resources. A number of concerns have arisen with increased border documentation requirements as well, and more recently these concerns have included H1N1 concerns (Tourism spending …, 2009). 2.3 India Economic Trends: The view that the Indian economy would be less adversely affected by the global economic crisis because of limited integration and other inherent strengths has proved to be mistaken. The economic boom in India that preceded the current downturn was dependent upon greater global integration in three ways: greater reliance on exports particularly of services; increased dependence on capital inflows, especially of the short-term variety; and the role these played in underpinning a domestic creditfuelled consumption and investment boom. These in turn made the growth process more vulnerable to

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internally and externally generated crises, as is now becoming clear (Ghosh and Chandrasekhar, 2009). It is noteworthy that the 5.3% increase of India's gross domestic product (GDP) in the third quarter of the fiscal year 2008 and 2009 reflects the country's weakest economic performance in five and a half years (Slowing down, 2009). However due to investment and a strong marketing push, it likely to have better GDP growth in the future. The most recent report on industrial growth was predicting 11.3%, as reported in Government reports (ToI, 2009). Influenza A(H1N1) virus: With 66 fresh cases of H1N1 virus, the total number of people affected with the deadly flu in India has gone up to 14,406 (Swine flu science update, 2009). Fortunately, there have been very few deaths. Such small numbers are not alarming compared to the population of India. In fact, Influenza has killed or injured far fewer people than die due to road accidents and heart attacks. There is no impact on the industrial growth. Some specific sectors: a) Auto sectors: Tata Motors is the car- and truck-making arm of the Tata Group, an Indian industrial conglomerate. Tata has fallen into the red after eight years of profit. A number of factors are responsible, including erratic buying trends in Tata's home market, launch problems of the Nano small car, and plummeting global exports for the Tata brand. For the fiscal year 2008/2009 (MarchApril) Tata Motors posted a net loss of Rs25.05 billion. In an effort to adjust Jaguar Land Rover's operations given the current economic climate, Tata has already implemented what it describes as a number of urgent and long-term measures. These include cutting costs drastically, aligning production with demand and exerting tight control over cashflow (The English Patient, 2009). The current strategy of increasing production of low cost cars has resulted in increasing numbers of customers. General Motors and Suzuki have done well due to this focused strategy. This strategy has also helped other supporting industries to grow b) Tourism: India's air traffic- domestic and international - is anticipated to fall sharply in the coming months, exacerbating the woes caused by the economic downturn. With increasing numbers of cases of swine flu having flared up in the past weeks, the Travel Agents Association of India is expecting a 25% drop in international traffic and a 15% fall in domestic travel in the next three months, India's peak visitor season. They are already seeing declines in air travel, and the situation has been worsened by Mumbai's closure of movie theaters, schools and malls for a week (Mathews, 2009). III. Efficient marketing strategies under global financial crisis: Theory and Practical cases The economic downturn is causing marketers to streamline their vertical marketing strategies, focusing on those segments that are growing despite the recession and being more efficient in marketing to all vertical segments. For some marketers, the economy has created new opportunities in vertical segments. The economy has caused them to increase their focus on certain verticals, such as health care, education and energy, said Marie Hattar, VP-network systems and security marketing at Cisco Systems. Kathy Button Bell, CMO of manufacturing company Emerson, said the economy has impacted the company's overall marketing strategy as well as its vertical marketing strategies (Maddox, 2009). During a recession, however, companies are obligated to evaluate costs more closely. More often than not, executives make across-the-board cuts that adversely impact any company's two core concerns: Who represents the target market you're serving? What is the value proposition you're delivering? Consumers themselves are cutting budgets, opting instead to increase savings and reduce spending. Therefore, it is incumbent on companies to address consumer needs in a way that perhaps even consumers have not yet recognized. This is where experimentation can shine. Another critical low-cost path involves maintaining open lines of support and communication with your existing employees -- especially as you experience a decrease in demand and find it difficult to continue supporting the same level of

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resources. Downsizing, though perhaps unavoidable, should be executed tactfully to avoid disengaging existing employees and creating a decline in corporate morale (Tsai, 2009). According to Mason and Staude´s study (2009), the choice of marketing tactics is influenced by the company's external environment. Their results tentatively confirmed that the more successful company used a destabilizing marketing mix, and suggest that using complexity theory to develop marketing tactics could be helpful in turbulent environments. Firms need to develop a crisis strategy to deal with inflation and recession. The establishment of a crisis strategy involves: 1. knowledge of your market, and establishment of a tracking system to uncover sudden trends and changes, 2. contingency plans for changes in the market, and identification of opportunities to counter short-term threats and identify future opportunities, 3. development of as distinctive a product mix as possible by innovations, creativity, uniqueness, and effective product positioning, 4. increased product testing to establish the most effective product mix, and utilize the Marketing Path, consisting of market analysis, product planning, product development, merchandizing, and sales and distribution, 5. maintenance of or increase in market share by cost efficiencies and marketing effectiveness, 6. expansion of the product mix by adding value, and 7. the institution of value analysis procedures. Application of these steps is good in any situation, but it is especially important as part of a crisis management strategy (Freiman, 1980). 3.1 Product strategy The primary mission of top management is to build powerful brands, which is what marketing is all about (Crain, 2009). However, it is clear that brands are facing a serious collapse in consumer confidence, which is having an effect on the trust that people place in brands (Clark, 2009). Brands that fail to earn or maintain that trust will inevitably find themselves out of favor (ibid.) 3.2 Price strategy While price has been the cornerstone of many marketing strategies since the economic downturn took hold, maintaining trust is also vital (Clark, 2009). On the other hand, it's important not to alienate customers who still want to buy luxury items. Since the goal is to broaden the customer base rather than change it entirely, it is suggested that high-priced and value-priced items continue to be offered (Ransom, 2009). The fourth quarter of 2008 and certainly the first half of 2009 brought with them an economic crisis and the tumbling of metal prices that will be long remembered as one of the more turbulent periods in mining history. As a result, mining firms have been forced to adapt to these market variations and change their focus from production to cost reduction, which has led to a growing list of postponed projects and shrinking investment budgets. What is surprising, however, is that in spite of the sharp recession in the US, and the decline in commodity prices, the economies in Latin America are going to be able to grow. Focusing on Canada, there are some signs of life as well as commodity prices for minerals and energy sources have begun to rebound. Current times also impose a new set of uncertainties, so mining companies operating in South America have their anti-crisis strategies. Certainly, Latin America offers a new set of business opportunities for the Canadian mining sector as well as Canadian equipment suppliers for mining projects for example (Jimena, 2009). Terex and Manitowoc have released second quarter figures that continue to show the speed and severity of the global economic crisis, and highlight the steps they have taken to cut costs and position themselves for the future (Cost cutting …, 2009). L'Oreal SA, the world's largest cosmetics company reported only a slight decline for the third quarter but was optimistic that a new low-price strategy was bearing fruit (Passariello, 2009).

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While the economic crisis worsens, the hotel industry is in for hard times, as occupancy rates and investment drop. However, there are a variety of levers at hoteliers' disposal to stem revenue decreases per available room (RevPAR). Most of these are to be found through better use of pricing mechanisms, as untapped opportunities remain in rate optimisation, customer loyalty schemes and bundling (Butscher et al, 2009). 3.3 Promotion strategy Advisors whose businesses flourished in 2008, despite the economic crisis, had implemented marketing, public relations and practiced management techniques that helped them and their clients through the recent tough times. Success will come from a combination of tried-and-true strategies combined with innovative ways of improving client contact and services (Swift, 2009). Sales and marketing professionals, who must now do battle in an economic environment where all types of buyer are bedeviled by financial pressures, can benefit from words to work by. Here's a checklist of eight words that send the right message to today's customers: 1. security, 2. agility, 3. productivity, 4. convenience, 5. leadership, 6. savings, 7. reliability, and 8. Value (Graham, 2009). The 21 Ogilvy Solutions are all customizable based on specific client needs and offer strategies that focus on topics including: extracting more value from customer databases, further leveraging social media and free media, email and mobile optimization, reengineering loyalty programs, and stringent channel planning, as well as a myriad of fast and highly actionable strategies all focused on rapid assessment and quick delivery of solutions to the current economic crisis (Ogilvy …, 2009). 3.4 Channel of Distribution strategy When the economy is weak, it is necessary to identify and focus on activities that determine success - the key success factors. In the real estate development industry, the two key success factors are selecting land and maintaining financial liquidity. In the computer software business, the key success factors are establishing efficient channels of distribution and providing after-sales support. In strategy consulting, the key success factors are communicating with executive decision makers and helping management teams think deeply about the enterprise (Birnbaum, 2009). 3.5 Market segmentation The key goal in segmentation is identifying and reaching profitable segments with products and services that meet the common needs of these customers. However, a fundamental issue needing rigorous attention is that customers' needs are dynamic and can induce segment instability (Blocker and Flint, 2007). 3.6 Production strategy According to Crutsinger and S. Rugaber´s report (2009), companies across the economy are finding ways to do more with fewer workers, dimming hopes that hiring will take off anytime soon. The result is that productivity - output per hour of work - jumped at the fastest pace in six years. The good news for companies, though, may be bad news for the jobless. As long as companies can get their workers to produce more, they have little reason to hire - at least until consumer spending picks up. And the squeeze on incomes could depress consumer spending, putting the economic recovery at further risk. IV. Conclusions And Recommendations Under the current global financial crisis, most countries of the world have been affected negatively during 2008 - 2009. Mexico, for example, is expected to have one of the lowest growth rates during 2010, in the Latin American region. Influenza A(H1N1) has impacted its economic recovery, particularly its tourism industry and auto sector which are important for its economy in terms of national income.

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Canada, perhaps because of its innate conservatism and aversion to risk, managed to avoid the worst of the financial crisis and resulting recession. Many economists were predicting growth in Canada´s economy out into the third and fourth quarters of 2009. As was the case with SARS in 2003, tourism declined significantly, resulting in job losses in the air transportation, travel, restaurant and hotel industries because of the Influenza A/H1N1 pandemic. The economic downturn also affected Canada by virtue of the Automotive Products Trade Agreement. However, car companies have implemented creative marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sale. The hope that the Indian economy would be less adversely affected by the global economic crisis because of limited integration and other inherent strengths has proved to be mistaken. There have been relatively few deaths caused by the Influenza A(H1N1). Of note is the fact that Tata Motors has fallen into the red after eight years of profitability because of a number of factors such as erratic buying trends in Tata´s home market, launch problems of the Nano small car, and plummeting global export for the Tata brand. In other areas of the economies of these countries, the economic downturn and A(H1N1) have caused decreased revenues and profits in the air and other travel-related industries. Based on some theories and practical cases during economic downturns, it is reported that the choice of marketing tactics is influenced by the company´s external environment, to entice reluctant consumers. It is recommended that care be increased for brand positioning and for low-cost/price strategies. However, it´s important not to alienate customers who still want to buy luxury items, a broad/wide range of product offerings must be provided. Also, creative marketing strategies, maintaining good public relations and effective channels of distribution, and providing after-sales support and encouraging productivity, as well as focusing on those segments that are growing despite the recession are recommended. REFERENCES : Automotive industry crisis of 2008-2009 (2009). Wikipedia. Available at: http://en.wikipedia.org/wiki/ Automotive_industry_crisis_of_2008%E2%80%932009. Accessed on November 12, 2009. Barrell, Ray and Hurst, Ian (2008). FINANCIAL CRISES AND THE PROSPECTS FOR RECESSION. National Institute Economic Review, 204, London, April, p. 33. Beacham, Will (2009). Global impact. Top 100 regional focus, ICIS Chemical Business; September 2127, 276 (10), ABI/INFORM Trade & Industry, p. 18. Birnbaum, Bill (2009). Tough Times. Leadership Excellence, 26(1), Provo, January, p. 17. Blocker, Christopher P. and Flint, Daniel J. (2007). Customer segments as moving targets: Integrating customer value dynamism into segment instability logic. Industrial Marketing Management, 36 (6), New York: August, p. 810. Butscher, Stephan A.; Vidal, David and Dimier, Charles (2009). Managing hotels in the downturn: Smart revenue growth through pricing optimisation. Journal of Revenue and Pricing Management, 8 (5), London, November, p. 405. CANADA: Ahead of the game (2009, September 7). The Lawyer. London, p. 24. Clark, Nicola (2009, August 5). The trust crisis. Marketing, London, August, p. 24. Confirma SSA más de 61 mil casos de influenza y 482 muertes (2009, November 12). Yahoo! Noticias. Available at: http://mx.news.yahoo.com/s/12112009/7/mexico-confirma-ssa-mas-61-mil.html. Accessed on November 12, 2009. Cost cutting continues (2009). Cranes Today, 416, Foots Cray, August, p. 9.

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Crain, Rance (2009, June 29). Marketing must take its share of blame for the economic crisis. Advertising Age (Midwest region edition). 80 (24), Chicago, p. 11. Crotty, James (2009). Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'. Cambridge Journal of Economics, 33(4), Oxford, July, p. 563. Crutsinger, Martin and S. Rugaber, Christopher (2009). Productivity gains may be bad news for job seekers. Excite New. Available at: seekershttp://apnews.excite.com/article/20091105/ D9BPHCS00.html. Accessed on November 5, 2009. DeLeon, Adrian (2009, March 2). Dedicated operators with fresh ideas will win over customers in stressful economic times. Nation's Restaurant News, 43 (8), New York, p. 20. Ebook Global Financial Crisis Discussion Series (2009). Free PDF Ebooks Files @AcrobatPlanet.Com. Business & Economics, October 31. Available at: http://www.acrobatplanet.com/non-fictions-ebook/ ebook-global-financial-crisis-discussion-series.html. Accessed on November 11, 2009. Eghbal, Media (2009, January 8).The global financial crisis: Asia Pacific not immune,Euromonitor Archive. Available at: http://www.euromonitor.com/The_global_financial_crisis_Asia_Pacific_not_immune. Accessed on November 12, 2009. Financial crisis of 2007-2009 (2009). Wikipedia. Available at. http://en.wikipedia.org/wiki/ Financial_crisis_of_2007%E2%80%932009. Accessed on November 11, 2009. Frangos, Alex and Hilsenrath, Jon (2009, October 7). World News: Australia Rate Rise Poses a Global Policy Challenge. Wall Street Journal (Eastern edition), New York, N.Y., p. A.14. Freiman, David J.. (1980). Smart Marketing in a Time of Economic Crisis. Advanced Management Journal, 45 (4), Cincinnati, Autumn, p. 21. Fryer, Kristin (2009). From market meltdown to recovery. Fraser Forum, October, p. 1. Ghosh, Jayati Ghosh and Chandrasekhar, C. P. (2009). The costs of 'coupling': the global crisis and the Indian economy, Cambridge Journal of Economics, 33 (4), Oxford, July, p. 725. Glasgow, Robert (2009, March 5). AFFILIATE MARKETING: A ray of light in dark times, New Media Age. London, p. 25. Graham, John (2009). Strategies for Tighter Times: The Right Marketing & Sales Messages for Today's Customers. The American Salesman, 54 (2), Burlington, February, p. 24. H1N1 could hamper Canada's economic recovery (2009, November 9). Report on Business. Available at: http://www.theglobeandmail.com/report-on-business/h1n1-could-hamper-canadas-economic-recovery/article1348843/ Hofstede, Geert (2009). Business goals for a new world order: beyond growth, greed and quarterly results. Asia Pacific Business Review, 15 (4), October, p. 481. Hutmacher, John D. (2009). The Impact o the Global Financial Crisis on Investments in Commercial Real Estate: A Canadian Perspective. Available at www.abanet.org/.../John%20 Hutmacher%208_30_theimpactoftheglobalfinancialcrisisoninvestmentsincommercialrealestate.pdf. Accessed on November 11, 2009. Informative bulletin on the influenza A(H1N1) Emergency (2009). Secretary of external Relations, Mexico, May 23-27. Available at: http://portal.sre.gob.mx/tucson/pdf/090527I.pdf. Kirkey, Sharon (2009, November 8). Canada should have abandoned seasonal flu shot to focus on H1N1: critics. Swine flu, Canada.com. Available at: http://www.canada.com/health/swine-f lu/

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Canada+should+have+abandoned+seasonal+shot+focus+H1N1+critics/2199483/story.html. Accessed on November 11, 2009. Jimena, Jaquelina (2009). GOING 'SOUTH' is good business, Canadian Mining Journal, 130 (6), Don Mills, August, p. 20. Maddox, Kate (2009, June 22). Economy forces marketers to refocus vertical strategies. B to B, 94 (9), Chicago p. 3. Mason, Roger B. and Staude, Gavin (2009). An exploration of marketing tactics for turbulent environments. Industrial Management + Data Systems, 109 (2), Wembley, p. 173. Mathews, Neelam (2009, August 13). India Expects Air Travel To Drop On Rise Of Swine Flu Cases. Aviation Daily, 377 (31), Washington, August 13, p. 6. Mexico marks $90m for new ad campaign (2009). 4 hoteliers.com, June 2. Available at: http:// www.4hoteliers.com/4hots_nshw.php?mwi=5925. Mexico still in deep recession in Q2 but hopes of solid recovery in 2010 provided US economy stabilises and imports start to pick up (2009, September 1). Emerging Markets Weekly, Oxford, p. 1. Munchau, Wolfgang (2009, November 2). We must not be too late with starting the Big Exit. Financial Times. London (UK), p. 11. Ogilvy North America; Recession Marketing Practice Launched by Ogilvy (2009, March 21). Marketing Weekly News, Atlanta, p. 38. Passariello, Christina (2009, November 6). Earnings: L'Oreal Sales Outlook Brightens --- Cosmetics Firm's Third Quarter Improved From First Half; Pricing Strategy Bears Fruit. Wall Street Journal (Eastern edition), New York, N.Y., p. B.5. PROSPECTS 2010: CEE economies (2009, November 4). Oxford Analytica Daily Brief Service, p. 1. Ransom, Diana (2009, April 23). Weathering The Storm (A Special Report) --- Smart Ways to Cut Prices: Consumers want value these days; Here's how some companies give it to them -- without gutting their brands. Wall Street Journal (Eastern edition), New York, N.Y., p. R.5. Research and Markets Offers Report: How the Economic Crisis is Affecting the Passenger and Light Commercial Vehicle Market in Mexico (2009). Wireless News, Coventry, September 14. Richburg, Keith B. (2008). Worldwide Financial Crisis Largely Bypasses Canada, Washington Post, October 16. Available at: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/15/ AR2008101503321.html. Accessed on November 5, 2009. Schechter, Danny (2009, March 10). Financial Crisis Goes Global, Slams into Europe. The HuffPost Social News, KREMS, Austria. Available at: http://www.huffingtonpost.com/danny-schechter/financial-crisis-goes-glo_b_172912.html. Accesses on November 11, 2009. Shah, Anup (2009). Global Financial Crisis, Global issues, updated on July 25, 2009. Available at: http:/ /www.globalissues.org/article/768/global-financial-crisis. Accessed on November 11, 2009. Slowing down (2009, March 9). Business Asia, 41 (5), New York, p. 3. Swift, Marie (2009). What's Next; As the economy stabilizes (we hope), the best advisors are priming their practices for growth. here's what they're doing. Financial Planning, 39 (9), New York, September, p. 50. Swine flu science update (2009, November 7). The Times of India; http://timesofindia.indiatimes.com/

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Influence of Socio Economic Classes on the Sources of Brand Recognition Among Children S. Sundar * Ram Chakravarthy S Aarthee S Abstract This paper empirically examines the influence of Socio economic classes on the three identified sources of consumer socialization leading to brand recognition and preference among children viz. parental influence, peer influence and TV influence. The study proposed that there will be a significant change in the level of brand recognition of children with that of their socio economic classes. Data were collected from 250 children in the age groups of 10 to 15 in four schools at Trichy. Participants were asked to identify brand logos as a measure of brand recognition. An analysis of the responses to our self administered questionnaire from 190 children who recognized the brands used, was done. Based on the single cross sectional survey, this study found that brand recognition of children is not influenced by their socio economic class. Key words Brand recognition, children, Socio Economic Class, sources of consumer socialization Introduction India has the world's largest child population. As per UNICEF demographic data, in 2007 the population of India stood at 1.16 billion with 446 millions of them, children. With this child population and another 26 million being added every year, India is the youngest country in the world. Traditionally, children are the main focus of Indian families and parents try their best to fulfil their aspirations. There has been an increasing attention and importance given to children in the decision making process of products purchased by Indian families. It's not just clothes or toys, children are reportedly having a say in everything that the family buys -- from toothpastes to SUVs. Children wield substantial influence over family purchases. It is evident that marketers must target and engage children as they target their parents and other 'gatekeepers'. For young children, brands are 'kid accepted and parent approved'. As they grow older, they gain more influence and approve the products and then seek parent's acceptance. Industry statistics in the United States indicate that 67% of family car purchases are influenced by children and 65% of ready-to-wear brands are purchased by parents in the same fashion. These statistics are now found not only applying to children in the United States. Their peers across the globe are wielding the same level of influence. (Mininni, 2005) It is therefore marketers' compulsion today to recognize children as consumers who have influence over a wide range of brand purchases and it is necessary to understand how they recognize brands and what factors contribute to brand recognition and choice among children. Theoretical Background and Hypothesis Children today represent an important demographic to marketers because they present three distinct market opportunities: they have their own purchasing power, they influence their parents' buying decisions and they are the adult consumers of the future (consumers (primary market), influencers and the future market (McNeal, 1998)). The 'future market' segment was suggested to provide greater marketing potential than a combination of both the primary and influential markets (McNeal, 1998). As a result, *

Asst. Professor, BIM, Tiruchirappalli. [email protected] , PGP II BIM, Tiruchirappalli [email protected], PGP II BIM, Tiruchirappalli, [email protected]

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many marketers are aiming to gain a head start on branding themselves to the children segment, in the hope of creating a future loyal band of customers (Ji, 2002). Researchers have indicated that brand awareness (recognition and recall) plays a pivotal role in this strategy. Ross and Harredine (2004) suggest the earlier a child establishes awareness of a brand, the stronger brand associations are likely to be when the child becomes an independent consumer. McNeal (1992) provides four main reasons for an increase in the children's influence on family purchase that can now find broad global application: First, parents have fewer children thereby increasing the influence of each child. Second, a general increase in single-parent families has resulted in children doing their own shopping. Third working women who delay their childbearing have more money to spend on their children and fourthly out of necessity working parents tend to encourage more household participation and self-reliance amongst their children. From research, we know that children recognize brand names at an early age, as young as 3 or 4 years of age, and that brand recognition and recall increases as children grow older (Achenreiner & John, 2003). By the time children reach middle childhood, approximately 7 to 8 years of age, they can name multiple brands in many product categories such as cereals, snacks, and toys (McNeal, 1992; Ward, Wackman, & Wartella, 1977); mention brand names as an important type of product information (Ward et al., 1977); and often request products by brand name (Otnes, Kim,&Kim,1994). These findings lend support to the contention that brands are important to children and suggest that brands become more important cues as children grow older. Patti Valkenburg and Moniek Buijzen (2005) have examined brand recognition and recall in a younger age group than previous studies. Infants as young as two were able to recognize 8 out of 12 brands they were shown, and the more TV they had been exposed to, the more brands they recognized. Children acquire skills and attitude towards the market place in a process of consumer socialisation. A search of the literature has identified that there are three main socialising agents which directly impact on child development and specifically upon their consumer socialisation. These being, parents who mainly impact on their educational development, and in the context of society, peers and television whose main area of impact is through social interaction. (Cowell,2001). We can now try to understand how these three thus become influential sources of brand recognition among children and lead them to make their choices of brands. Parental influence: Parents assume that they are more knowledgeable and rational than their children and therefore see their duty to protect them, in particular from other sources of influence. This suggests that they consider themselves to be the `authoritative' influence on their lives. In many purchase situations children play the dominant role in the influence relationship and are often the major source of product information (Dholakia. 1984). In modern parlance this is what marketers might refer to as `pester power'. McNeal (1999) found that the term `pester power' is somewhat misleading and negative and that, in reality, children are taught to request certain items to satisfy their needs and that changing family structures which evolved in the late 1980's have led to children actively participating in the family decision making process. Children now have so much power in the family that their families are now becoming child-led. Isler et al., (1987) found that children express their desires to parents but parents see their responsibility to mediate and thus parental influence does lead to children understanding how to function in the market place as consumers. The response of parents to children's attempts at influencing family purchases acts as a reinforcement to children's future behaviour as consumers. (Caruana and Vassallo, 2003). Peer influence: It is assumed that children learn `goal orientated' or `rational' aspects of consumption from their parents and that television and peer interaction provide non-rational sources of consumer socialisation (Dholakia 1984). Guber and Berry (1993) state that, children relate to peers for "informa-

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tion on what's in and what's out in activities, entertainment, styles and language." This is highlighted by Robinson (1997), who states that due to peer group pressure, children adjust the way they act and perceive the world surrounding them. Smith et al., (1999) suggest that children's social development progresses through a transitional process from 'parent orientation' to 'peer-orientation'. In a discussion with children they found that parents remained influential over educational and future life goals, compared to peers being influential in every- day life. Consequently, it could be inferred that their consumption habits and choices are dictated by the need to conform to peers. TV influence: Many researchers have identified television as a potential medium, as an informative, educational transmitter to allow the expansion of people's knowledge base, or their view of the world beyond their immediate environment. Given the reach that television now has, most in modern and many developing societies are exposed to it almost from the time they are born. According to The Popcorn Report (in Kotler 1997): "Today's weaned on television kids have been imprinted at an early age, They're the latch key kids who come home from school to an empty house and have to do the shopping: for detergents, dog foods, and frozen dinners." Television viewing has increased and due to this growing sophistication "children are very clear about their preferences. From an early age they show themselves to be knowledgeable, accurate about what is offered on television and consistent in their tastes." (Cullingford 1984) Research has consistently identified that children's interaction with television advertisements aids the development of their consumer skills. Further, it is a combination of their learning from advertisements and social interaction with peers that contributes to their consumer development. Television has thus become a powerful entrant in the field of influences. It has entered family life and it plays an important role in children's lives. ( Unnikrishnan and Bajpai 1996) Socio-economic Classification: Mody-Kamdar et al (2009) have concluded in their empirical research study using the three influences discussed above as contributing to brand image and have found that television influence is significant to brand image formation. This study has extended beyond the research done previously by others to use socio economic classification of the children's families and discover if it has any significant difference in the influence of parents, peers and television on brand recognition and choice. The socioeconomic classification (SEC) groups urban Indian households on the basis of education and occupation of the chief wage earner (CWE: the person who contributes the most to the household expenses) of the household into five segments (SEC A, SEC B, SEC C, SEC D and SEC E households in that order). This classification is more stable than one based on income alone and being reflective of lifestyle is more relevant to the examination of consumption behavior. Here, 'high' socioeconomic classes refers to SEC A&B, 'mid' socioeconomic class refers to SEC C and 'low' socioeconomic classes refers to SEC D&E. This SEC classification, created in 1988, was ratified by Market Research Society of India (MRSI), and is used by most media researchers and brand managers to understand the Indian consuming class. It was expected by the researchers that there will be significant difference in the sources of brand recognition ( parent, peer and TV influence) across the Socio economic groups. It was expected that TV/peer influence will be high on SECA and parental influence low since children of high classes are raised with more freedom and independence with more pocket money being available with the child to take more decisions on his/her own. Parental influence on brand recognition and choice was expected to be high on C and D classes as the children in these classes will be more closely supervised by their parents and do not have the money to buy products on their own. Hence the hypothesis was framed as given below: H1 : There is a significant difference between the sources of brand recognition and the socio economic groups of children

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Research Methodology To first determine the extent of brand recognition among children a two stage research design was implemented. First, brand selection commenced with twelve child-appropriate brand logos chosen. Selected brand logos represented brands in categories that were used by children or familiar to children due to varying degrees of exposure via child directed advertising (television, newspapers, magazines, Internet) during the research survey period. Logos featuring brand signatures were disregarded as names presented in full would cue brand recall. Three broad product categories were represented: personal care products, foods and beverages, stationeries and durables. Next the school survey was done in two stages. Show cards of the twelve brands of products were shown to 250 children across four schools in Tiruchirappalli town. The children were in the age group ranging from 10-15 years studying in Class V to Class VIII in High school, of which 92 were boys and 98 were girls. The children were individually asked to recognize and name the brands. 190 children across the four schools recognized all the twelve brands. This test was taken as a measure of brand recognition. These children were then administered a simple questionnaire that identified the dominant influence ( parent, peer and TV) for their preferred choice of brand across the twelve branded products recognized by them. Data on the occupation and education levels of their parents were collected from the children with the assistance of the class teachers to help in arriving at the socio - economic classification of their parents. Hypothesis Testing And Results In order to examine the influence of socio economic groups on the sources of brand recognition and choice, we conducted the One-way analysis of variance (ANOVA) i.e. whether socio economic groups exhibit different levels of brand recognition and choice across the influences. Table 2 shows that the homogeneity of variances assumption has not been violated (p > o.05) which means the population variances for each groups are approximately equal. The results revealed that the brand recognition among the children belongs to different socio economic groups did not show any significant difference in terms of sources of brand recognition and preference. F(4,185) = 0.415, p ? 0.05. Hence, our hypotheses that there will be significant difference among the sources of brand recognition and preference across the socio economic groups, has been rejected. Table1: Descriptive statistics of socio economic groups Socio Economic Groups

Mean

Std. Deviation

A

13.8776

4.91864

B1

12.8485

4.07064

B2

13.8065

5.27522

C

13.1404

3.20401

D

13.4000

3.66204

Total

13.4158

4.23275

Table2: Test of Homogeneity of Variances Levene’s Statistics

Df1

Df2

Sig.

1.128

4

185

0.344

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Table 3: Results of one way ANOVA Source of Variations

Sum of Squares

df

Mean Square

Between Groups Within Groups

30.129 3356.024

4 185

7.532 18.141

Total

3386.153

189

F

Sig.

0.415

0.798

Discussion and Conclusion This study shows that there is no significant difference among the children in the various socio-economic groups in terms of the sources of brand recognition and choice (viz. Parent, Peer and TV influence.) The marketers of products for children may find this study to be significant and revise their strategies if they have been working on the assumptions held originally by the researchers. Irrespective of their SEC background, parent, peer and TV influences show no significant changes in contributing to brand recognition and choice leads marketers to a situation where peer/TV influence could be high in case of C,D and E households too where there is a huge market size in India. This study was done predominantly on products in the FMCG category used by children. Research can be done in other categories and the sources of brand recognition and choice can be similarly identified for other product categories also. Comparisons can be made and such research may give marketers more insights into the dominant influences which will assist in fashioning more focused marketing efforts at children as consumers. REFERENCES: Achenreiner Gwen Bachmann & John Roedder Deborah (2003) The meaning of brand names to children: a developmental investigation Journal of Consumer Psychology, 13(3), 205-219 Caruana Albert, Vassallo Rosella (2003) Children's perception of their influence over purchase: the role of parental communication patterns. Journal of Consumer Marketing 20 (1) 55-66 Cowell Paul (2001). Marketing to children. The Marketing Review, 2, 71-87. Cullingford, C. (1984), Children and Television. Gower Publishing. Dholakia, R. R. (1984), "Intergeneration Differences in Consumer Behaviour: Some Evidence from a Developing Country", Journal of Business Research, Vol. 12, pp. 19-34 Guber, S. S. and Berry, J. (1993) Marketing To And Through Kids. McGraw- Hill Inc. Isler, L., Popper, E. T. and Ward, S. (1987), "Children's Purchase Requests and Parental Responses: Results From a Diary Study". Journal of Advertising Research. October/November, pp. 28-39 Ji, M. F., 2002. Children's relationships with brands: "true love" or "one night stand"? Psychology and Marketing, 19 (4), 369 - 387. Kotler, P. (1997), Marketing Management: Analysis, Planning, Implementation and Control 9th Ed. Prentice Hall International. McNeal, J.U., 1998. Tapping into three kids' markets. American Demographics, April, 36 - 42. McNeal, J. U. (1999), The Kids Market: Myths and Realities. Paramount Market Publishing. Mininni, 2005. Maintaining brand relevance with kids Young Consumers Quarter 2 23-25.

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Mody-Kamdar Rutu, Naik Vidya, Srivastava Mala (2009) Children and brands: the influence of television advertising, product involvement and parental influence. 3rd IIMA Conference on Marketing Paradigms for Emerging economies. Otnes, Cele, Kim, Young Chan, & Kim, Kyungseung. (1994). All I want for Christmas: An analysis of children's brand requests to Santa Claus. Journal of Popular Culture, 27, 183-194. Robinson, M. (1997), Children Reading Print and Television. Falmer Press. Ross, J., Harradine, R., 2004. I'm not wearing that! Branding and young children. Journal of Fashion Marketing and Management, 8 (1), 11 - 26. Smith, P. K. Cowie, H. and Blades, M. (1999), Understanding Children's Development 3rd Ed. Blackwell. Unnikrishnan, N. Bajpai, S. (1996), The Impact of Television Advertising on Children. Sage. Valkenburg, Patti M., Buijzen, Moniek (2005) Identifying determinants of young children's brand awareness: Television, parents, and peers Journal: Journal of Applied Developmental Psychology Vol 26 (4) 456-468. Ward, Scott, Wackman, Daniel B., & Wartella, Ellen. (1977). How children learn to buy. Beverly Hills, CA: Sage.

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Brand Identity Confusion in Emerging Market Case Study of Cinthol Soap Marketing Communication R. K. Srivastava

Abstract The main aim of this research was to unveil the consumer perception about Cinthol and to understand the importance of brand identity of a product and the factors influencing it. A descriptive study was conducted in the age group of 21 to 55 years to ascertain the perception change in the brand identity of Cinthol, its brand personality, its awareness levels, its usage pattern, its promotional campaigns and the factors influencing the buying behavior of the consumers. We also observed that most of the respondents identified Cinthol as a family soap closely followed by male soap, though the difference between the two was not significant. Company is projecting this brand as male's soap overall satisfaction and loyalty, hence the ultimate outcomes. Keywords Brand, Soap, Godrej, Cinthol, Brand Personality, Brand Identity, Perception, Positioning. Introduction In an age of increasing product commoditization and choice, the branding is an easy way for people to break through the clutter. Brands are increasingly fulfilling people's needs for affiliation and identification - needs that traditional institutions are struggling to meet. As branding can make or break a product, the marketer should handle it with the same concern as the artisans show in their work. Every brand carries with it an image and possesses an identity, which should be communicated effectively to the Target Group. Issue of branding, identity and communication have generated much interest among scholars and business leaders in the recent years (Editorial, 2006) A Brand is promise that the company can keep. Brand, that consumer trust, will also serve to reduce perceived risk and post purchase cognitive dissonance (Shiva Nandan 2005). It is due to creation of brand identity and image in the customer's mind. An organization, therefore, through promotion seek to convey certain identity and image for a brand. Brand Identity is the unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers for the organization. Communication between company consumer is in terms of brand identity and brand image often been used inter changeably (Ind, 1990). Brand identity originates from the company as company is responsible for creating a differentiated product with unique features company seeks to identify it self by differentiation (Gehani, 2001). Therefore, brand strategist tends to create brand position identity and image through communication process (www.domain_b.com). The differentiation could be as under: =

Brand Image : How the brand is now perceived

=

Brand Identity : How strategists want the brand to be perceived

=

Brand Position : The part of the brand identity and value proposition to be actively communicated to a target audience

Emeritus Professor and Head-PhD cell,SIMSR, Mumbai

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Brand Management Brand Identity

Results

Strategy Brand Strategist

Brand Image Brand Position

Customers & Po tential customers

Messaging

Marketing, PR, Product

Source: www.domain-b.com Brand strategists strive to ensure that the brand image of their product is the same as the brand identity. In the sense, the consumers' perception about the brand image is just what the strategists want the brand to be perceived as. Marketing mix strategy plays an important role in establishing a brand identity (Shiva Nandan, 2005). Through brand identity, a company seeks to convey its individuality and distinctiveness to all. Kapferer (1997) has emphasized that the brand be focused in view of identity. According to Harris and de Charlnatony (2001), brand identity is made of brand vision, brand culture, positioning, personality, relationship and presentation. At the same time, Brand image is the sum total of impression that consumer perceive from many sources all of which combine to form brand personality. It is the total impression of a product in consumer's mind. Aaker (1991), states that a brand image is a set of association usually organized in some way to feel good about it. Brand identity and brand image are essential for strong brand (Shiva Nandan, 2005). Brand identity is the creation of managerial activity and image is creation by perception of the consumer. But, very few brands succeed to strike that balance. The others fall in what they call the 'Brand Identity Trap'. An example to this would be Godrej Consumer Product's 'Cinthol' - the premium soap. This paper studies the same by taking Cinthol as case study. Cinthol is a leading soap No.2 in India in the premium segment (www.Indiainfoline.com/commodities) Literature Review Recent global scandals resulted in the demise of Enron, World com. This has triggered interest in corporate branding, identity (Editorial, 2006). Brand identity as per Gylling and Lindberg -Repo (2006) is defined as a set of brand association the marketers is aiming to create and obtain. Brand identity and brand image are related but distinct concept as both are essential ingredients of strong brand (Shiva Nandan 2005). In fact, identity represents the firm's reality while image represents consumer. People will use their own international and will respond differently to brands (Gordon, 1999) This subjective evaluation results in the formation of brand image in the mind of consumer. Therefore, brand identity and brand image are the product of communication. Madhavaram et. al. (2005) and Gioia et. al (2000) have highlighted that identity as essentially a social construct drawn from repeated interaction with others where identity is partly based on how others see us. A communication gap exists if there is a discrepancy between the coding (company) and decoding (consumer) process (Shiva Nandan 2005). Brand Identity and brand image have often been used inter changeably (Ind. 1990) Kapferer (1997) has emphasized the brand-focused view if identity. According to Harris and dechernatony (2001) and

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Chernatony (1999) brand identity is made of different components like brand vision, brand culture, positioning, personality, relationship and presentation. According to Herzog (1963), brand image is the sum total impression that consumers receive from many sources. Ditcher (1985) regarded brand image as total impression in the minds of consumer. Therefore, brand image is the understanding of consumer derived from brand related activities engaged by the firm (Park et. al. 1986). Brand identity and Brand image are related concept and is essential ingredient of strong brands. The development of brand image while attempting to present brand identity to consumers, enhances the position of a company (Vytautas et. al. 2007). Aaker (2003) notes that brand identity is a set of brand association which need to be developed and retained for a brand strategy. Identify should help in development of the relationship too between a brand and consumer. Brand should reflect consumer's benefit and expectations (Grundy' 2002) Identity has originated from earlier action of a brand (Vytautas et. al 2007). Therefore, understanding of brand identity signifies that attitude towards brand is being changed. Importance of brand in the market is influenced by company's ability to evaluate the fact how consumer interpret the image of brand and company's ability to manage the brand strategy. Positive image is build through conveying brand identity to consumer efficiently (Vytautas et. al 2007). Brand loyalty can be created and maintained by strong identity - Image linkage. Brand identity should influence communication in creating and maintaining synergy. Pepsi had dented coke identity with its choice of new generation. Brand identity can play role when under attack from threatening forces within a hostile market place (Upshaw 2007). Gaps in the Existing Studies on Brand Identity The various literature reviews presented above talk about how the positioning was changed and how the brand identity was affected. Though many studies have been conducted on brand identity of products, there hasn't been any such study that has been conducted in India. Also no study has addressed the concept of soap grades and its influence (if any) on the buying behavior of the consumer as per our literature research. No research aimed to find out if companies can use this as a strategy to attract consumers. We took Cinthol soap to study the gap in FMCG segment Cinthol Soap: Cinthol toilet soap is no2 most liked product in Indian Market in premium soap category. It used to be advertised as a freshness soap that the family used, as well as for healthy skin. Now, the company has come out with new advertisements which focus on the working woman in her 20s who cares for her skin and complexion. The change in positioning aims to revitalize the brand in the minds of young consumers. Cinthol not performing to the best of its potential and hence it was essential to boost the sales and it's the market share. Cinthol had come a long way since its Vinod Khanna days in the 1980s when the actor used to endorse the product, and subsequently, Shahrukh Khan and Pakistani cricket star Imran Khan. But with the fast changing times and the growing power of today's women, Cinthol was repositioned to appeal to the women. It is now for women who want to look fresh, confident and attractive. (Business India, 2001). For consumer of Thirty plus Cinthol is a bulky, brick-shaped green soap in a no-frills, white-and-red packaging, best known for its distinct fragrance and value-for-money association. For younger consumers, however, Cinthol has, at various points, signified lime soap, cologne soap, spice soap, an international soap, a fresh soap, a skin soap, and even a deodorant soap. Add to this the fact that in its advertising over the years, Cinthol has flip-flopped between the macho male, the bubbly-fresh family and the confident woman-about-town, and it comes as no surprise that the 52-year old brand - and Godrej Consumer Product's - Cinthol - is still working to establish a clear identity in the mind of the consumer. (Cinthol Report, 2001) Identity of brand Cinthol has changed. Identity, image and culture are linked to one another. How this change could affect brand identity? Hence, understanding of it is of greater importance (Shultz et. al

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2007). How this change in positioning has affected Cinthol identity? This paper aims to study the same. Problem Defination The gap between company reality and consumer perception has to be minimized or eliminated. (Shiva Nandan 2005). Therefore, it is very essential for a marketer that the USP (Unique Selling Proposition) of its product should match the UCP (Unique Consumer Perception) of its consumer. (Srivastava, 2006) .This may enhance identity and image fit .Hence it is very important for a marketer to not let the identity of his brand go berserk. He has to take due care to protect the brand identity of his product and not let it get influenced by the many external factors existing in the market including the competitive forces. Synchronization of brand identity and image can be a problem .Cinthol was taken for the study on this subject. Cinthol is a contemporary brand and was launched by positioning itself as a masculine soap with USP of protection from body odor. But soon it realized that it had to experiment by trying out new things and coming out with different variants to be in tune with the changing consumer trends. With the fast changing times and the growing power of today's women, Cinthol was repositioned to appeal to the women. Cinthol has flip-flopped between the macho male, the bubbly-fresh family and the confident "womanabout-town," resulting in a confused brand identity of the soap. (Cinthol report, 2006) This research paper aims to gain an insight into the perception of Cinthol amongst various people, the influence of the soap grades (if any) in the buying behavior and the brand identity of the soap, the effect of sales promotions and the pricing issues, and the overall brand identity of the soap Cinthol. Therefore following theoretical construct is considered for this study Brand Identity (Bi)

=

Created by the company

Brand image (BI)

=

Perceived by the consumer

Brand Personality (BP)

=

Total impression of the brand by consumer

Brand Equity (BE)

=

Value of Brand

CE

=

Celebrity endorser

Thus, Brand Identity is directly proportion to Celebrity endorser (H1) and brand equity. Brand personality is affected by celebrity endorser.(H2) Therefore, Identity concept should be investigated as corner stone of the brand concept (Gylling et. al 2006)

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Research Objective The main objective of this paper is to study the brand identity of Cinthol. It aims to understand the perception of people towards Cinthol Soap Brand. This research tries to gain an insight into how the consumers find Cinthol as a soap, what do they think is its brand identity, whether soap grades matter to them while buying Cinthol, the reason behind their purchase, whether they are willing to pay more for Cinthol if its price increases and what according to them does Cinthol stand for. This information would help us to ascertain if the USP of Cinthol matches its UCP (R K Srivastava, 2006). It will also help us to give recommendations as to what makes the consumers buy Cinthol and accordingly what should the company focus on, whether Cinthol should advertise its Grade I for better sales and better brand perception or whether it should advertise more using some celebrities to endorse itself. Role of celebrity change on its effect on brand identity is also researched. Brand identity strives to support the relationship between customer and brand by generating a value proposition that can include functional, emotional and self expressive benefits (Gylling and Lindberg Repo, 2006). Company may have unique vision, superior product, and strong management but yet is not able to convey the core benefits of the brand to target audience. This paper seeks to enhance the understanding of concept of identity. Brand identity created by firm may not be perceived the same way by consumer (Srivastava 2005, 2006). Methodology The research addresses the main issues affecting Cinthol's brand identity, the markets it has entered, the positioning strategies it has adopted, the celebrities used in endorsing the product, the pricing techniques used. How such activities have affected the brand identifies and Image? Primary Research A descriptive research was conducted to ascertain the brand identity and the brand personality of Cinthol. The main aim of the research was to gain an insight into the perception of Cinthol amongst various people, the influence of the soap grades (if any) on the buying behavior, the brand identity of the soap, the effect of sales promotions and the related pricing issues. This research was conducted amongst the age group of 21 to 55 years. The research method was the survey method wherein the research tool used was a structured questionnaire. Most of the questions were close ended. The sample size of the respondents was 1000 and the data collection method was face to face interview with the respondents. Brand identity survey is not restricted to Cinthol users only and hence the sampling units were both Cinthol Consumers as well as Cinthol Non-consumers. Non Cinthol users were added basically together more information on Cinthol and their willingness to use Cinthol. Secondary Research The main aim of the secondary research was to gather as much information on Cinthol as possible with respect to its positioning, pricing issues, new launcher campaign, soap grading, brand identity etc. Secondary data was also used to look for any kind of existing research on Cinthol. The secondary data collection method used was desk research. Most of the Secondary data was collected through Internet. Extensive search was made through search engine Google and EBSCO. Sampling

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Target Population The target population was essentially someone who makes the soap buying decision. So we did not restrict it to males or females as such but juts tried getting information from someone who makes the buying decision of soap in the household. But more often than not, it's the females who make these decisions at the home (Raajpoot et. al. 2008). Hence they were targeted. Males residing away from homes were also targeted as they themselves decide which brand of soap to buy. (Hill and Herman, 2007). The sampling technique adopted was simple random sampling wherein each sample had a known and an equal opportunity of being selected. The study was conducted in Mumbai. Mumbai represents mini India as people from different states lives together Sample Size The sample size chosen was 1000. This was done keeping in mind that the sample should not be very small so as to not derive a wrong conclusion and not very large so as to be difficult to study and analyze. 52% were female compared to 48% male. This is inline with Indian population gender ratio. Finding and Analysis: The research undertaken is to study the brand identity of Cinthol and the various other factors like pricing issues, grading, recall value, brand personality etc. Brand Recall and awareness The very first question asked to the respondents was to recall the top three soap brands that came to their mind. This was mainly to check the different brands that they recall and to see if Cinthol was one of them or not. The results were that 470 (47%) people named Cinthol as one of the top three brands that they could recall. More so, we discovered that some of the other brands that they recalled the most were Lux, Dove and Pears but even among them, the clear winner was Lux with a majority of 780 (78%) people recalling. Lux, thus, displayed the better recall value as compared to Cinthol. But Cinthol was the second most recalled soap, closely followed by Dove and Pears. This could be due to strong marketing activities initiated by the company. Brand identity, thus created, helps the brand to achieve high equity which is reflected in brand recall (Madhavaram et. al. 2005, Srivastava 2008) The respondents who didn't recall Cinthol 530 (53%) as one of the top three soaps, were asked if they were aware of Cinthol and the result was that each one of them was very well aware of Cinthol displaying 100% awareness levels. This brought to our notice that though the awareness levels of Cinthol as soap brand was very high; its recall value as compared to Lux was lower. Company should deliver coherence and clear consistence message as consumer recall depends upon the number of contact that they have with various aspect of product, brand & company (Gylling and Lyndberg Repo, 2006). Out of the 1000 respondents, only 380 (38%) were current Cinthol users and the rest 620 (62%) were non-users. Each user did mention Cinthol as one of their top soap brand recall. This pointed out that the Cinthol users definitely mentioned Cinthol as one of the top 3 soap brands that they could recall. Buying Motives When these 380 (38%) users were asked about the main reason for buying Cinthol out of the various options given (price, quality / features, celebrity endorsements, promotional offers / any other), almost 90 % mentioned 'quality / features' (t=0.233)as the major reason for buying Cinthol followed by 'price' and 'schemes', as given in Table-I

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Table I: Reasons for Buying the Soap (Numbers) N=380

None of them bought Cinthol due to celebrity endorsements. This showed that Cinthol consumers preferred Cinthol mainly due to its good quality. This does not endorse the hypothesis that celebrity endorser will increase purchase intention for a quality products(H2) Impact of sales promotion scheme Another question that was asked to the users was that would they continue buying Cinthol if it discontinue its' schemes and promotional offers. Out of a total of 380 users, 340 replied affirmatively (90%). That means almost 90 % of the users admitted that they would still continue to buy Cinthol even if they could no longer avail the various promotional and offers, thus, displaying high brand loyalty(t=0.233). This could be due to strengthening of identity -Image linkage (Shiva Nandan, 2005). This also explains how brand identity can enhance brand loyalty as rightly also mentioned by editorial article (2006). Repeated scheme lowers the brand equity (Srivastava 2008) but 90% Cinthol users do not feel so. This means that Brand equity and image can help to develop more loyal customers. Thus, Brand Image can be attributed to Identity and brand personality (H1) Customer defection We wanted to know from the many current non users, how many had actually used Cinthol at some point of time in their lives and how many of them had never used Cinthol till now. We found that out of the 620 non users, 370 (60%) had used Cinthol in past and only 250 (40%) of them were the ones who had never tried Cinthol till date. That means more than 60 % of the current non users, had used Cinthol in past and the main reason for discontinuing was that they felt better soap brands were available in the market. Also another problem they had experienced was that Cinthol was not good for dry skin as it made it even drier making it best fit for oily skin and that's why most of them switched to other brands. The rest 40 % of the current non - users had never tried Cinthol before. They felt Cinthol was restricted to body odor / dislike lemon flavor / preference for brands like Dettol / price etc Impact of pricing Then, the respondents were asked on what was their perception about the pricing of the Cinthol soap bar; whether it was high priced, moderately priced or low priced. Most of the respondents (81%) felt that Cinthol was moderately priced, followed by 14 % thinking that it is high priced and only 5 % thinking that it was low priced Even while checking the pricing perception of the individual groups of users, non users, both rated Cinthol as moderately priced.(t=0174).

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Awareness on Quality We also wanted to check the awareness of the soap consumers regarding the grades given to soaps as per their Total Fatty Matter (TFM). More than half of the total respondents (57 %) were unaware of the grading concept among users. Only 43 % were aware that soaps were actually graded and only 6% of the respondents were aware about Cinthol as Grade 1 Soap. The research wanted to check that after knowing Cinthol was a Grade I soap, how many users would be willing to pay more for it (one rupee / two rupee) and how many non users would switch to Cinthol, now that they knew it was Grade I soap. Out of the 380 users, almost 78 % (300 in number) were ready to pay more price for it and out of the 620 non - users, only 24 % said that they would actually start buying Cinthol and switch from their current brand consumption. This revealed that if Cinthol were to use this Grade I concept to attract non users, it wouldn't benefit much as it will not be able to convert non users to users, though it can use this strategy for increasing its price by a rupee or so (after advertising that it's a Grade I soap) as most of its users will still continue to buy Cinthol and were willing to pay a little more for it. This again pointed out the high brand loyalty enjoyed by Cinthol. This could be due to high image perceived by consumer who is user of Cinthol. This could be congruency between brand identity and image as mentioned earlier by Shiva Nandan (2005). Brand identity helps the brand to achieve high equity (Madhavaram 2005) Impact on Price Reduction We wanted to see if they would start buying Cinthol if the price decreases. It was found that only 56 % non users (350 in number) out of 620 would actually buy Cinthol in the event of price reduction(t=0.02357). The rest 44 % would still not buy Cinthol even if its price decreases. Then to check at what price reduction level, would these 56 % people shift, we gave them 4 hypothetical situations; one - where the price of the soap bar decreases by a rupee, two - price decreases by two rupees, three - price decreases by three rupees and fourth - price decreases by more than 3 rupees. 31 % went for one rupee reduction, 42 % went for two rupee reduction, 20 % went for three rupee reduction and only 7 % opted for price reduction by more than three rupees. As given in Table -II TABLE II: Price reduction and its impact on brand shift among non users who are willing buy. Price Reduction & their willingness to purchase Rs.1

Rs.2

Rs.3

>3

Total

%

31

42

20

7

100

No.

109

147

70

34

350

It was disheartening to know that out of a total of 1000 respondents only 24% remembered Cinthol advertisements. The rest 76 % didn't remember any of the advertisements showing extremely poor advertisement recall value of Cinthol. This is also attributed to the fact that Cinthol doesn't advertise much these days. Image of Soap: The respondents were also asked to choose what they felt Cinthol represented - a male soap, a female soap or a family soap due to Flip-flop brand identity activity by the company. There was a close competition between male soap and family soap wherein 54 % said that it was soap for the entire family and 43 % said that it was soap for males only. Currently in 2008 Cinthol soap is targeted for male by taking Rithik Roshan as Macho actor to endorse the brand. Company is trying to create an identity and personality using male actor as celebrity endorser. Earlier female actor used to be celebrity endorser. The image

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of the soap is for the family though 43% mentioned for the male. Only 3% said that it is meant for females. There is the stark difference between the identity and image. Identity created by the company is as male soap but majority feels that it a family soap image. Brand Image of Cinthol is of family soap in contrast to Male soap identity effort by the company (Godrej Soap). F test for equality variance indicated that (F=1.01) Cinthol is considered both as male and Family soap as given Table-III Table-III Cinthol: Male soap or a Family soap? - Hypothesis testing for finding the Brand identity (i.e. Cinthol being considered as a Male soap or a Family soap) Test used: Comparing two independent groups ( Z-test) 1. Null Hypothesis: Cinthol is considered both as a male soap as well as a family soap. (µ male = µ family) 2. Alternate Hypothesis: Cinthol is considered more as a family soap. (µ male < µ family) 3. Computation of Test Statistic: Hypothesis Test: Independent Groups (z-test) Male Soap 0.43 0.50 1000

Family Soap 0.54 0.50 1000

mean std. dev. n

-0.110 0.071 0 -1.65 -1.56 .0596

difference (Group 1 - Group 2) standard error of difference hypothesized difference Z critical Z calculated p-value (one-tailed, lower)

-0.248 0.028 0.138 F-test for equality of variance 0.25 0.25 1.01 .9471

confidence interval 95.% lower confidence interval 95.% upper half-width variance: Group 2 variance: Group 1 F p-value

Decision: At 95% confidence level, Z critical> Z Calculated, so we fail to reject the Null Hypothesis. So we can conclude that Cinthol is considered both as a Male soap and a Family Soap. Thus, managing, identity is of great importance of company's success (Podnar 2005), Still Cinthol is No. 2 brand and could not overtake Lux. Difference between two market shares is large. Management plays a key role in development and maintenance of Identity (Gylling & Lindber Repo 2006). Company should deliver clear and consistence message as consumer formation of image is dependent on the number of contacts

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they have with various aspect of product, brand and company. Cinthol is considered as family soap (p value 0.9471) Respondents were asked to describe the attributes based personality of Cinthol from the various attributes listed in the questionnaire. The maximum people voted for 'Full of freshness' (78%) attribute followed by 'Good Smell' (58%) and 'Clean' attribute (48%). The parameters were significant in determining the brand personality (Chi test = 135.54 at df8). So we derived that the brand personality of Cinthol was that it was soap full of freshness and good smell to obtain clean body". Though various other factors like Well dressed (packaged), hygienic, attractive looking and reliable were also considerably considered important, the first attributes of freshness, clean and good smell were rated very highly as given Fig. I Figure 1: Brand Personality of Cinthol based on attributes (%)

Note: Above parameters are significant in determining the brand personality of Cinthol Table Value X2 = 15.51Computed value X2 = 135.54 (DF8) Z test of comparing good body smell or soap full of freshness indicated that Cinthol is considered as full of freshness soap (Z test = -3.09) Lastly we wanted to find out, if the respondents were given a choice, which celebrity would they choose for endorsing Cinthol. Almost 64 % of the respondents chose a Male celebrity and the rest 36 % chose a female celebrity to endorse Cinthol. Thus, selecting a male star by the company is right. However, it is interesting to not that many people do like to see female celebrity endorser too. However, celebrity does not influence the purchase behavior for Cinthol as reported earlier in this study. This could be the reason for majority of them favoring Cinthol as a family soap. The attributes based personality appeals to all family members as the perceived benefit from soap matches with delivery promise of Cinthol. Thus, UCP (Unique Customer Perception) matches with USP. This helps in better brand recall & equity (Srivastava 2006) Conclusion We also observed that most of the respondents identified Cinthol as a family soap closely followed by male soap, though the difference between the two was not significantly. So, there could be a scope for some kind of confusion still prevailing in the minds of its respondents. Nevertheless, the current research claims that most of them regard it as soap for the entire family. Therefore, impact of male actor as celebrity needs to study further. Also the respondents identified attributes like freshness, good smell and cleanliness with Cinthol the

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most and hence Cinthol could exploit this perception to the fullest to its advantage. Cinthol is bought mainly due to its good quality rather than the extra promotional offers and advertisements. So here, we have a classic example of the product selling due to its own features and customer's experience. It was also found that the brand enjoyed significant brand loyalty wherein the users are willing to pay even a rupee or two extra for it after knowing that it is a Grade I soap. But this concept did not attract the non users much into tempting them to switch over from their current brand to Cinthol. Also, the users were willing to buy Cinthol even if it stopped its promotional campaigns and came in single bars instead of Buy three Get one free offer thus displaying another example of brand loyalty. Brand Identity and brand image, study should help the brand to assess the brand to assess the impact of change in brand personality. (H1) Frequent changes may affect the brand Image due to Identity crisis. Managerial Implications The view presented in this paper is drawn from the marketing research prospective but question raised should be of great interest to practitioner as well. The workout lined should provide a marketing manager with should provide a marketing manager with a clear view an understanding of brand identity and image. Marketers need a more through understanding of consumer behavior as a basis for making better strategic decision. Brand manager should strengthen identity and image linkage. Hence utmost care has to be taken to ensure that the brand only conveys what the marketer wants it to convey. Also the brand has to be adjusted to the growing and changing needs of the consumers either by bringing in changes in the features of the product itself or by bringing in new variants of the product. While experiencing through all this, great care has to be taken to protect the core brand identity of the product and not let it get hampered in the process. There should not be any room for confusion in the consumer's mind regarding the product features or positioning. The more clearly the message is conveyed, the more acceptances it gets. Limitation / Future Scope Of The Study The major limitation of this research was that the sample population belonged to Mumbai and hence this research cannot be generalized to people residing in other cities and towns. However, Mumbai represent India due to hetero group population. Also although we made an attempt to select the sample from various age groups and background most of the prospects interviewed were randomly chosen Future research could investigate brand identity factors, that might lead to synergistic and effectiveness of communication campaign. It could also be good to research on brand equity and brand identity relationship. REFERENCE Aaker D. (2003), Brand leadership, New York The Free Press. Aaker, D.A (1991), Managing brand equity, Capitalizing on the value of the brand name, The Free Press, Newyork NY.pp365-375 Cinthol case (2001), Business India, August, 21-27 Cinthol Report, (2006) ,Brand Reporter, November, 22-32 de Charlatony L (1999), Brand Management through narrowing the gap between brand identity and brand reputation, Journal of Marketing Management, Vol.15, No.1-3, pp.157-179. Ditcher E (1985), what in an image, Journal of Consumer Marketing Vol.2, No.1, winter pp.75-81 Editorial (2006), Brand Management, Nov, vol. 14, no. 1/2 ,pp 1

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Gehani, R. R . (2001), Enhancing brand equity and reputation capital with enterprise wide complimentary innovation, The Marketing Management Journal, vol. 1, no. 1, 35-48 Gioia DA, Shultz M, Corley KG (2000), organized identity, image and adoptive instability. The Academy of management Review, vol. 125, no. 1, 63-81 Grundy D (2002), Prekes Zenkio. Formavimas ir prekes, económica pp. 30-52 Gylline C and Lindberg-Repo (2006), investigating the link between a corporate brand and customer, Brand Management, vol. 13, no.49, 257-267. Harris F and de Charlatony L (2001), Corporate brand performance, Europe Journal of Marketing, vol. 35, no. 3-4, 441-456 Herzog H (163) Behavioral science concept for anglicizing consumer, Marketing and the behavior sciences, Blis P (Ed) Allyn & Bacon, Boston MA pp.76-86 Hill C. J. and Harmon S. K., (2007), Male gender role belief on coupon use and bargaining hunting, Academy of Marketing studies Journal Vol. 11, No.2, pp. 107-121. Ind N (1990), Corporate Image, Kogan Page, London, UK, 101-137 Kapferer J. N. (1997) Strategic brand management: Creating and sustaining brand equity long term and Edition, Kogan Page, London, UK, 33-37 Madhavaram S, Badrinarayana V., McDonald , RE (2005), Journal of Advertising,Vol.11, 69-80 Park C W, Jaworski B J and Mac Innies D J (1986), strategic brand concept - image management, Journal of Marketing vol.50, pp.135-145 Podnar K (2005) Corporate identity, corporate communication, vol. 10, no. 1, 69-82 Raajpoot N. A., Sharma A, Chebat J. C. (2008), The role of gender - and work status in shopping patronage, Journal of Business Research, Vol. 61, No. 8, pp. 8-25 Shiva Nandan (2005), An exploration of the brand identity - brand image linkage : A communication perspective, Brand Management, vol. 12, no. 4, 264-278 Shultz M, Hatch M J, Larsen M H (2007), The expressive organization on: Linking identity reputation and corporate brand, Oxford publication, 19 Srivastava R. K. (2006), How UCP pull the customers to increase sales? INFORMS, Hong Kong, June, 25-2 Srivastava R K (2005) using UCP for creating successful brands, Hawai International Conf. on Business, Honolulu, Hawaii, USA 26-29th May Srivastava R K (2008) Brand equity how realistic is it? Int. J. Indian Culture & Business Management Vol.3,33-45 Upshaw Lyn B (2007), Building brand identity a strategy wiley.com publication NY., 156-172 Vytautas J, Aiste D, Regina V (2007), Relationship of brand identify and image, Engineering Economics, Vol.5, No. 1, pp.69-79. Web reference www.domain.b.com (2003)as seen in 2008 www.indiainfoline.com/commodities as seen in 2008

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Retail Store Choice Criteria amongst Senior Citizens Neha Srivastava

Abstract Purpose: To find out the store choice criteria of senior citizens through a theoretical framework proposing relationship between elderly lifestyle characteristics and store attributes. Design/approach: A theoretical framework on the basis of extensive literature review is proposed to associate relationship between elderly lifestyle characteristics and store attributes to find out what are the store selection criteria of senior citizens. Findings: Identified five lifestyle characteristics of elderly customers (family oriented, active retiree, introvert, financially independent and economical) and five store attributes (location, ambience, friendly personnel, merchandise convenience and discount / sale) through extensive literature review. On the basis of this, seven Propositions are placed to indicate the store selection criteria of senior citizens. Originality/value: This exploratory study uses elderly lifestyle characteristics and store attributes as a framework for profiling consumers by their ultimate retail format choice. The paper is unique because there are few similar conceptual studies done focused on the Indian retail stores. Practical implications: This research provides retailers the specific knowledge of the attributes that elderly consumers consider to be most important when making retail format choices (e.g. location, ambience, merchandise, friendly personnel) and identifies the lifestyle characteristics of these consumers. The results suggest marketing strategy implications for retailers that how to attract elderly customers. As competition in the sector continues to evolve, understanding the consumer-format choice linkage will be critical to retailer performance in the industry. Keywords: Senior citizens, lifestyle characteristics, store attributes, consumer behavior, India. 1.0 Introduction Retail choice is the result of a specific purchase task and refers to purchase from a given store, usually after some information search and evaluation of alternative stores. If the customer turns out to be satisfied with the retail store, then he patronizes it and become loyal, otherwise switch to another store. Similarly, like any other customer, elderly customers do look for some attributes and make store selection accordingly. However, this customer segment has not been considered seriously by the marketers. They have been considered as homogenous segment similar to other customer segments. Bartos (1980) has found that this segment has the money and the opportunity to indulge in luxury travel, restaurants, and theater because they do not have much responsibility of bringing up children and other family matters. Elderly customer's shopping pattern has been researched (Sciglimpaglia and Schaninger 1981; Shoemaker 1978) to some extent in western countries but such research is not done in the Indian context. In India, customers are taken as homogenous and are not studied according to the age group. Though, studies have been undertaken in the western context, researches except few (Oates et al., 1996) still lacks in identifying sub segment among the senior citizens and relating it with the store attributes desired FPM scholar, Indian Institute of Management, Lucknow

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by the elderly to know which segment of senior citizen customer desires which store attribute, while making a store selection. Thus, this paper has attempted to propose a theoretical framework to identify: =

Lifestyle characteristics of senior citizen customers.

=

Store attributes desired by the elderly customers.

Relationship between the lifestyle characteristics and store attributes to know the store selection criteria of senior citizens. =

Thus, this paper aims to propose a theoretical framework and derive propositions out of literatures to know the store selection criteria of senior citizens. 2.0 Literature Survey Senior citizens customers are the least researched topic in the Indian marketing context. However, in the western countries, few researches (Greco, 1986; Lumpkin, 1984, 1985; Moschis, 1993; Sorce et al., 1989) have focused on finding about their satisfaction and dissatisfaction regarding selection of stores. Senior citizen customers are those which are above 60 years of age. However, even defining senior citizen has not gained similar consent among the researchers. Different ages of 60, 62 and 65 have been taken to define elderly customers (Axelson and Penfeild, 1983; Moehrle, 1990; Schwenk, 1995). Two to four age grouping has been employed to define senior citizens (Harrison, 1986; Tauber, 1983). AbdelGhany and Sharpe (1997) has segregated elders as young-old of 65-74 and old-old of 75 and older. Many researchers (Shoemaker, 2000) have taken lower limit of 55 years to define elderly customers. However, for the purpose of this study, senior citizen is defined as customers of above 60 years of age. Burt and Gabbott (1993) have expressed their concern that this group has been greatly neglected by retailers. They have also cited the reason for this that elderly customers are negatively stereotyped as having lack of spending power; the negative attitudes and people in physical and psychological decline (Tynan and Drayton, 1988). Researches in the past has termed senior citizen customers as homogenous and didn't pay much effort in finding out the difference between them and the younger customers in the store choice attributes. However, Towle and Martin (1975) suggested that the elderly might not be homogeneous. Hence, segmenting of the elderly is required to fully understand the elderly and their behavior in the marketplace. Stone (1954) did recommendable work in advancing and refining the notion of shopping orientations. Since then, various works has been done on analyzing shopping orientation, but none focused on the senior citizens. Hence, the purpose of this paper is to find out the store selection criteria of senior citizens. Effort is made to connect lifestyle or psychographic attributes of senior citizens with the store selection criteria in the Indian context. Elderly customers make patronage decision based on several store attributes. Findings (Martin, 1975) say that elderly persons enjoy shopping. They like to shop where they are aware of the store personnel (Lumpkin and Greenberg, 1982). Retail store choice in general is the result of specific purchase task and is done only after extensive information search through various sources and evaluation of alternatives (Spiggle and Sewall, 1987). Patronage or loyalty for the store develops only when it fits in the criteria of the customers which he is looking for. Selection of store is done on the basis of various attributes such as location, merchandise, personnel, promotional schemes, brand and many other criteria. Store choice phenomenon study has gained greater significance in the Indian market, with the introduction of larger and more diverse retail formats by organized retailers (Sinha and Banerjee, 2004). Recently, various retail formats have been introduced in India, providing customers to choose from variety according to their convenience. The newly established stores in India are able to attract shoppers into stores due to its ambience, but finding it difficult to convert visit into purchases and hence lower profitability for retailers.

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Sinha and Banerjee (2004) have termed store choice as a cognitive process similar to information processing behavior. They have compared store choice with the brand choice. Difference between the two is of location, as brand choice is free of location constraint but store has to be chosen after taking location into the consideration (Fotheringham, 1988; Meyer and Eagle, 1982). Shopping task has also been found to influence store selection. Kenhove et al. (1999) has studied the store choice decision across numerous tasks as described by the respondents, such as urgent purchase, large quantities, difficult job, regular purchase and get ideas. The chosen stores varied in their salience rating depending on the task the shopper intended to perform. Mattson (1982) has found that situational attributes, such as time pressure and gift-versus self-shopping, can also influence store choice and attribute salience. Store choice has also been found dependent on socio-economic background of consumers, their personality and past purchase experience (Dodge and Summer, 1969). Atmosphere and ambience has been found to attract customers to large extent to the stores (Kotler, 1973). Recreation is also one of the important attributes considered by the customers while selecting a store. Proper availability of merchandise is also one of the choice criteria (Zeithaml, 1988; Baker et al., 1992). Elderly customers however do not have similar store choice criteria as the younger customers. It has been assumed that old customers have limited money and hence do not attract much to the retailers as a profitable target segment. However, researches have indicated that the transfer benefits and retirement plans provide more discretionary income to the elderly, which provides more purchasing power than that enjoyed by younger customers because of fewer obligations (Hopper and Buskin, 1995; Lazer, 1985; Moehrle, 1990). They usually don't have dependents such as children to educate, clothe or support. Medical insurance takes care of their medical expenses and most of the old people own houses (French and Fox, 1985; Lazer and Shaw, 1987; Moehrle, 1990). Thus, they have enough money to spend and can be targeted as valuable customer segments by storekeepers. Hence, assuming that price is the key determinant can be misleading. For them, price and price related aspects are of lesser importance, which could explain the preference for department store shopping by the mature patron as opposed to discount store shopping (Lambert, 1979; Lumpkin and Greenberg, 1982; Lumpkin et al., 1985; Mason and Bearden, 1978). Another group of attributes which affects the store choice of the elderly consumer is the availability of advertised products and the ease in locating these advertised products within the store. In research, the elderly did cite problems with package size and labels with small print (Sciglimpaglia and Schaninger 1981; Shoemaker 1978). Elderly customer has been said to shop more than the reason of buying goods (Mason and Bearden, 1978). They are said to be more interested in purchasing experiences than things (Dychtwald and Flower, 1990). Lumpkin et al. (1985) found that elderly do not consider benefits such as parking, carry out and location as an important criteria for store selection. They do not consider comfort as the main criteria and also do not pay great deal of emphasis placed on uncrowded stores or package carry-out (Oates et al, 1996). Elderly customers like special warm treatment from the retailers and like to shop in the stores where they are familiar with the store personnel. Advantage comes to those stores which have personnel of the elderly customer's age and have positive attitude towards them (Gelb, 1978). They want to feel valued as customers (Lumpkin, 1985). Mason and Bearden (1978) found that physical problems, such as store temperature and lack of rest facilities is of due concern to the elderly. As opposite to what is assumed, elderly customers have been found to be active and engaged in several social activities outside the home such as travel, hobbies, sports, physical fitness and volunteer work (Shim and Bickle, 1993). Elderly customers have been found facing difficulty in accessing complex buying procedures than the younger customers (Ross, 1981). They depend more on salesperson for help than the younger consumers (Martin, 1976). Elderly people have been averse towards the technology. Study by Gillett and Schneider (1978) found many senior citizens card holders not using the program at all. They even avoid the use of

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mail or phone for ordering the goods (Mason and Bearden, 1978). However, some studies have diverse view with respect to independence and power of elderly customers. Moane (1993) found that 80 per cent of older people surveyed were dependent on others for activities such as food shopping. They are dependent on others to drive them to supermarkets and have identified barriers to food and store choice. They hold preferences but these cannot always be exercised owing to being dependent on others or simply because there is no alternative for them (Leighton and Seaman, 1997; Hare et al., 1999). This indicates a lack of power and again is evidence that some older people are not strong enough to signal their needs in the marketplace (Hare et al., 1999). Various researches have been done in the past, but majority of them focused on studying demographic variables (Stitt et al., 1995; Carpenter and Moore, 2006). Few of the studies either in western context or in Indian context has attempted to connect psychographics variables of elderly customers with their store choice criteria. Study by Oates et al (1996) has talked about psychographic characteristics of elderly customers in the store choice but has not attempted to find the connection between the two. Majority of the studies conducted has concentrated only on the demographic features of the elderly customers. Hence, attempt has been made in this study to find out psychographic related lifestyle features of the senior citizens and to associate them with the store attributes. 3.0 Theoretical Framework This study proposes a theoretical and conceptual relationship between elderly consumer lifestyle parameters, store attributes and from that resulting store choice criterion. Theoretical framework is arrived at after studying various research papers related to elderly customers shopping behavior, store choice attributes, store selection parameters. In particular, it is proposed that lifestyle parameters of elderly customers can be used to associate their store selection criteria. Figure 1 depicts the theoretical framework indicating how the lifestyle can be used to relate the elderly store choice behavior in the Indian context. Theoretical framework indicates various parameters of the elderly lifestyle and its effect on the store selection.

Fig 1: Theoretical Framework proposing relationship between Senior citizen Lifestyle characteristics and Store attributes for identifying store choice criteria of elderly customers

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Elderly Lifestyle: Lifestyle has been defined as the self-consistency and uniqueness of the individual; and the subjective determination of his actions (Anderson, 1984). Ansbacher (1967) has mentioned three important common properties of lifestyle: unifying aspect, unique and creative aspect and Operational, functional and constancy aspects. Unifying aspect bridges cognitive style and response style. Unique and creative aspect implies an original and idiographic property and third aspect explains consistent operations and actions or behavior over time. Lifestyle concept was first used by Bell (1958), Rainwater, Coleman and Handel (1959) in consumer behavior literature for understanding, explaining and predicting consumer behavior and hence its use in formulating marketing strategy. Elderly lifestyle segmentation has been done (Lumpkin, 1984) from a sample of 375 over 65s: the uninvolved/inactive shopper; the economic shopper; and the active apparel shopper. Similarly, Gabriel (1990) reports eight lifestyle groups in a study of the over 55s, and suggests that three personal influences - health, financial status and marital status - are important factors in determining how individuals view life. Even, Sorceet al. (1989) has suggested that firms that wish to market their products and services to the older American market should use lifestyle variables in segmenting the market. Hence on the basis of various psychographics studies following lifestyle parameters have been proposed. Family Oriented: Family oriented lifestyle of elderly customers can be related to the desire by them of the warm treatment by the store personnel. According to Gelb (1978), elderly consumers would welcome special treatment from retailers with respect to store personnel such as clerks who are of their own age and ones who have a positive attitude toward older consumers. They can also be attracted by introducing and innovating offers such as opening the store only to senior citizens i.e. on some particular day such as Sunday (Lumpkin, 1985). This would provide the convenience of unhurried, personalized shopping to elderly and give them a sense of homely, family environment. Thus, on the basis of this following proposition can be placed: P1 (a): Family orientation is the lifestyle characteristic of senior citizens. Active Retiree: It has been researched that elderly persons do not get affected much with the old age. They remain socially active in the community (Lumpkin, 1985). These consumers remain more involved and interested in sports and artistic activities. They are fashion innovators and have the shopping self confidence. They enjoy shopping, probably due to their interest in fashion and active life style, as well as for the social interaction, and have a propensity to shop around. They engage themselves in several hobbies such as travel, physical fitness, voluntary work (Shim and Bickle, 1993). Hence, it can be proposed that: P1 (b): Active retiree is the lifestyle characteristic of senior citizens Financial Independence: Senior citizens are researched to have more discretionary income due to the improved transfer benefits and retirement plans provided to them (Oates et al., 1996). They are also free from the obligation of educating and supporting children (French and Fox, 1985; Lazer and Shaw, 1987). Many studies have indicated that price and price related aspects are of lesser importance to them, which could explain the preference for department store shopping by the mature patron as opposed to discount store shopping (Lambert, 1979; Lumpkin and Greenberg, 1982; Lumpkin et al., 1985; Mason and Bearden, 1978). They are financially independent and thus it can be proposed that: P1 (c): Financial independence is the lifestyle characteristics of senior citizens. Introvert: Senior citizens are mainly introvert and conservative. They do not easily get personal with everybody. They do not enjoy interpersonal exchanges with the store personnel (Gelb, 1982; Lambert, 1979; Mason and Bearden, 1978). They do not like to try new things. Mason and Bearden (1978) have found that the elderly are not frequent users of catalogs. They even do not like to change their store patronage just to try something different (Lambert, 1979; Lazer, 1985). Phillips and Sternthal (1977)

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have noted that the elderly, upon retirement, undergo a "constriction of life space" or a reduction in the variety of interpersonal sources and do not like to interact with several people. They are researched to shop at retail outlets less frequently for a variety of product categories, and also utilized telephone shopping the least (Barnes and Peters, 1982). Thus, on the basis of this, it can be proposed that: P1 (d): Introvert is the lifestyle characteristics of senior citizens. Economical: Elderly people relate positively to the use of moneysaving sales promotion offers, such as cents off and/or coupons (Smith and Moschis, 1985). Relationship of the quality to the price is most important for them. They prefer quality product yet wants attractive prices. They like to get value for money. They also prefer to shop where they have ability to return unsatisfactory goods (Greco, 1986; Lumpkin et al., 1985). They also get attracted to reduced prices or offers such as sale (Lambert, 1979). Thus, the following proposition is placed: P1 (e): Economical is the lifestyle characteristics of senior citizens. Store Attributes: Researchers have studied multitude of attributes that can contribute to a positive store image and serves as a reason for the success of a store. Variables are identified as the variety and quality of products, services, and brands sold; the physical store appearance; the appearance, behavior and service quality of employees; the price levels, depth and frequency of promotions (Ailawadi, Keller, 2004). Researchers such as Lindquist (1974) and Mazursky and Jacoby (1986) had categorized these attributes into a smaller set of location, merchandise, service, and store atmosphere related dimensions. Merchandise presentation technique also attracts customer to shop from a particular store. Hot buttons such as most convenient or lowest price also helps in choosing among stores (Sinha & Banerjee, 2004). Store staff is another criterion for store selection. There are various store attributes hence which can be proposed to attract senior citizens. Location: Elderly customers evaluate stores while planning a shopping trip and evaluate whether the particular store is based on their shopping orientation or preference (Stone, 1954). Elderly considers those stores more favorable from which transportation facility is available (Moschis, 1992). They also desire resting place near or in the store so that when tired they can rest there. They also like to shop at places which are near to their home and have good parking facility. Store entrance accessibility is also considered as an important feature by elderly (Wallis, 1994). They also like to shop at stores which are near to market place and have good transportation facility available. Location plays important role, as elderly likes to shops at less crowdy places (Burt and Gabbott, 1993). Thus, it can be proposed that: P2 (a): Senior citizens consider location as important store choice criteria. Ambience: Store ambience plays important role in store choice criteria of senior citizens. They prefer stores with good and healthy environment and surroundings. Mason and Bearden (1978b) have found physical problems, such as store temperature and lack of rest facilities to be of concern to the elderly. Elderly shop for recreation and exercise (Mason and Smith 1974) and hence likes to shop at stores with healthy and clean atmosphere. They also prefer good lightning at stores so that they can easily read the details of merchandise. Signage indicating which merchandise segment is where also is preferred by elderly customers. They also need rest rooms and toilets at the stores. Faster checkout services and queues are preferred by elderly citizens (Mason and Bearden, 1979). Thus, it can be proposed that: P2 (b): Senior citizens consider ambience as important store choice criteria Store Personnel: Elderly customers welcome special treatment from retailers and store personnel, such as clerks of their own age and positive attitude towards old customers (Gelb, 1978). They want to feel valued as customers (Lumpkin and Greenberg, 1982). Churchill, Collins and Strang (1975) find this need is special for elderly customers as other customer segments did not indicate a great deal of special treatment on the part of store personnel. Store personnel who can read instructions on the product

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packets are preferred by senior citizens. They prefer help on the part of the personnel to carry product trolleys for them and help them in locating merchandise. Moschis (1992) has found that elderly likes patience treatment on the part of store personnel and assistance in locating products. Thus, it can be proposed that: P2(c): Senior citizens consider friendly store personnel as important store choice criteria Merchandise Convenience: Elderly consumer prefers quality products at economical prices. They wants to get value for money for the merchandise they purchase (Lambert, 1979). They also prefer stores which has the policy of returning unsatisfactory goods. Another important consideration is the availability of advertised products and the ease in locating these advertised products within the store. Older consumers also search for convenience, including convenient use of the product or service, as well as convenient procurement of the product. This includes the purchase arrangements and delivery, setup, and instructions for use if required (Oates et al., 1996). Elderly people are found to have problems with package size and labels with small print (Sciglimpaglia and Schaninger 1981; Shoemaker 1978). Leighton et al. (1996) and Leighton and Seaman (1997) found that reaching high and low shelves, carrying baskets and reading price displays were the areas that caused most difficulty while shopping to senior citizens. Thus, on the basis of this, it can be proposed that: P2 (d): Senior citizens consider merchandise convenience as important store choice criteria Discount / Sale: Stores offering senior discounts are viewed more favorably by the senior citizens (Oates et al., 1996). Bone (1991) has also suggested that the mature market can be attracted by offering special discounts based on age. Smith and Moschis (1985) suggested that age relates positively to the use of moneysaving sales promotion offers, such as cents off and/or coupons. However, price is not only the main consideration for elderly customers. They look for value for money. Stores should promote special discount and sale schemes for the elderly persons; this would make them attracted towards the store. Thus, it can be proposed that: P2 (e): Senior citizens consider discount / sales as important store choice criteria Relationship between elderly lifestyle characteristics and store attributes Lifestyle characteristics and store attributes can be related to find out which cluster of elderly customer likes which store attribute. In the following paragraphs, propositions are placed that particular lifestyle characteristics prefer given attributes, which can later be Family oriented elderly prefers store attributes Family oriented elderly customers are supposed to be close to their family members. They are mainly good and happy natured. Hence, while shopping if they get the same friendly and protected treatment, then they adore the store and like to visit it more and more. They are mostly happy and satisfied people. Thus, like any other consumer they can also be attracted to different store attributes. Hence, the following propositions are proposed: P3 (a): Family oriented senior citizens consider location as an important store choice criterion. P3 (b): Family oriented senior citizens consider ambience as an important store choice criterion. P3 (c): Family oriented senior citizens consider friendly personnel as an important store choice criterion. P3 (d): Family oriented senior citizens consider merchandise convenience as an important store choice criterion. P3 (e): Family oriented senior citizens consider discount / sale as an important store choice criterion.

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Active retiree elderly prefers store attributes Active retiree elderly customers are the most active older customer segment. They shop for social reasons rather than to make purchases (Mason and Smith, 1974). They like to participate in various activities such as hobby, travel, and voluntary works. They like to spend life full of happiness and are fun loving. Age does not come as a hindrance for them. They live life to the most. Hence, these customers when go for shopping might consider different attributes before selecting a store. Thus, it can be proposed that: P4 (a): Active retiree senior citizens consider location as an important store choice criterion. P4 (b): Active retiree senior citizens consider ambience as an important store choice criterion. P4 (c): Active retiree senior citizens consider friendly personnel as an important store choice criterion. P4 (d): Active retiree senior citizens consider merchandise convenience as an important store choice criterion. P4 (e): Active retiree senior citizens consider discount / sale as an important store choice criterion. Introvert elderly prefers store attributes Senior citizens who are introvert do not like to get personal with everybody. They remain restricted to their own small world. For them shopping is mere purchase of goods and do not considers it as entertaining. They even avoid using technology to make purchases such as use of credit cards, internet shopping, etc. They do not like new stores and are not very self confident while shopping (Martin, 1975). They do not check advertised specials nor are very energy conscious while shopping (Lumpkin and Greenberg, 1982). Hence, it can be proposed that they consider different store attributes while making a store selection. P5 (a): Introvert senior citizens consider location as an important store choice criterion. P5 (b): Introvert senior citizens consider ambience as an important store choice criterion. P5 (c): Introvert senior citizens consider friendly personnel as an important store choice criterion. P5 (d): Introvert senior citizens consider merchandise convenience as an important store choice criterion. P5 (e): Introvert senior citizens consider discount / sale as an important store choice criterion. Financial independent elderly prefers store attributes Senior citizens are mainly from the worries of educating children running homes. Most of them own houses (French and Fox, 1985). They get adequate retirement benefits and pensions. They like to purchase quality products. They are found to prefer departmental stores more than the discount stores (Bernhardt and Kinnear, 1975). They have money to spend and thus consider various store attributes before making selection of a store. P6 (a): Financially independent senior citizens consider location as an important store choice criterion. P6 (b): Financially independent senior citizens consider ambience as an important store choice criterion. P6 (c): Financially independent senior citizens consider friendly personnel as an important store choice criterion P6 (d): Financially independent senior citizens consider merchandise convenience as an important store choice criterion

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P6 (e): Financially independent senior citizens consider discount / sale as an important store choice criterion Economical elderly prefers store attributes Elderly customers though do not consider price as the most important factor in store selection, but considers purchasing value for money products. They like to shop at stores providing special discount or sale to elderly customers. They like to purchase quality products at best economical price (Gelb, 1978). Thus, while shopping, they might consider different store attributes for selecting stores. P7 (a): Economical senior citizens consider location as an important store choice criterion. P7 (b): Economical senior citizens consider ambience as an important store choice criterion. P7 (c): Economical senior citizens consider friendly personnel as an important store choice criterion. P7 (d): Economical senior citizens consider merchandise convenience as an important store choice criterion. P7 (e): Economical senior citizens consider discount / sale as an important store choice criterion. Thus, from the above theoretical framework, it can be proposed that senior citizens have different lifestyle characteristics and based on these characteristics they considers different store attributes while making store selection. 4.0 Discussion and Implication for Marketing Practices Managers can be benefited by the theoretical framework by studying and testing different lifestyle features of elderly customers. This study does not focus on the general customer but on the elderly customers who are normally considered as an unimportant customer segment. Considering the above theoretical framework, marketers can identify the various clusters of elderly and design their stores accordingly fitting to the needs of elderly. Understanding of various factors guiding store choice can help the store owner to project the image of store suiting to the needs and likeness of senior citizen customers. 5.0 Conclusion and recommendation for future work Proposed Theoretical framework helps in understanding how the elderly lifestyle characteristics can be related to find out the store attributes liked by them the most. It helps in clustering the senior citizen market into various segments. Future work demands testing of the above proposed hypothesis through adequate data collection and analysis. Convenient and snow ball data collection technique can be adopted. Data analysis technique of factor and cluster analysis can be adopted for testing the above propositions. Theoretical framework is useful for managers since it is one of the few studies done in Indian context and aims to correlate lifestyle characteristics of elderly customers with the store attributes, while making a store selection. REFERENCES: =

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Creating the Futuristic Retail Experience Through Experiential Marketing - is it Possible? An exploratory study R. Srinivasan * R. K. Srivastava **

Abstract The rapid pace of globalization, increased competition and excessive brand clutter is changing the market landscape in retail and posing new challenges for marketers and customers alike. Coupled with economic slowdown, environmental crises and more discerning consumers, marketers are employing innovative strategies to address the changing consumer profiles. Marketers are building brands based on inputs and aim at creating experiences that shall be cherished forever. In today's global marketplace, it is all about feel relate and act, which is driving the consumption and choice of brands. The human interface is becoming a critical component and is providing the necessary touch-points for generating memorable experiences. This research paper examines and analyses the aspects of experiential marketing, both from the marketer's as well as the consumer's point of view, The paper further addresses the issue of how to create and implement experiences in retail segment. This research paper explains a model that proposes a new way of looking at experiential marketing. Keywords Experiential Marketing, Feel, Think, Act, Brand Identity 1. Introduction An experiential approach is the logical stage in consumer demands, beyond commodities, goods or services. The experiences provided to consumers may be similar as those provided to other consumers. However, the assimilation of the same is deeply personal. For example, one person may wear a luxury chronometer to boost his social acceptance, another, as an aspect of self-actualization, yet another because of a passion for chronology. Experiential marketing creates memorable experiences. The consumer fondly reminiscences them, and even shares them with peers and family, generating increasing sales through PWOM (power of world of mouth) and consumer loyalty. The experience deepens with each successive interaction. Experiential marketing necessarily involves consumer participation. Experiential marketing goes beyond the consumer's stated needs (addressed by the consumption categories) and takes the socio-cultural context into account. Thus, experiential marketing addresses not simply the wants and needs, but the self-image, social goals, dormant emotions, values, and deeply ingrained desires of the consumer. A necessary factor for the creation of an experience is a sense of brand identity. The product or service should be known not by its individual properties, but by its brand. Providing consumers with experiences allows the business to charge a higher price, and thus earn higher revenues. This is because the consumer is paying not for the product, or service, but for the experience, which is unique. The price point is a function of the value of remembering the experience. Hence, businesses must strive to create memorable experiences. Experiential marketing is entertaining to the consumer. The experiential model is based on providing good experiences and ensuring consumer delight. It stresses Sr. Lecturer, Emeritus Prof and Head-PhD cell, SIMSR

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on creating an emotional bond and a relationship with the customer. A drawback is that these traits are difficult to measure. While customer turnover and even satisfaction in the traditional approaches can be measured, parameters such as delight are difficult to measure. Challenges in measuring these parameters may lead to some difficulties while implementing the experiential model, and determining its effectiveness. 1.1.Ishanya Mall Ishanya is a Specialty Mall focused on the interior and exterior needs of a home or office owner, builder/ developer or an architect and facilitates shopping that is destination based. It is targeted at those who have an interest in interior design - either as consumers, or the real estate industry, such as architect, an interior designer, a builder or a developer. Ishanya is designed as a venue for the latest in world-class design inspiration ideas, expertise and solutions. To its customers, Ishanya offers choices between a multitude of design possibilities. It offers the support through its services that help lay consumers in resolving dilemmas, helping find solutions, helping create dreams and bringing them to fruition. Mall design Ishanya's architecture has a theme of concrete, glass and steel, housed in a 10-acre green, Zen-themed campus. Glass and water bodies and carefully designed lighting are used to enhance the aesthetic beauty of the architecture. Ishanya has also implemented intelligent building systems that will result in functional safety as well as energy conservation and efficiency through rain water harvesting and waste management. The centre is equipped with a sophisticated fire detection system, fire fighting systems/sprinklers, CCTV and access control. The roofing is designed with special insulation keeping in mind the energy consumption for air conditioning. With over 52 Product and Service Categories, spread over 5,50,000 sq. ft. provides ample exhibition space for hosting product launches, exhibitions and art shows, perfect for builders, developers, architects, designers, students & sculpture dealers etc. This paper attempts to study the role of experiential marketing in Mall. There are as per available resource no such study have been conducted. This paper makes an attempt to gain insight on role of experiential marketing with respect to speciality Mall. 2. Literature Review The current trend in the business world reveals new solutions developed to offer customised products. This does not simply apply to product solutions. For example, relationship marketing emphasises the role of the relationship between a vendor and its customer, with particular importance to personal involvement and trust. This suggests an enhanced opportunity for applying the experiential view of consumer behaviour and to implement consumption experience. (Addis et al., 2001) Hedonic consumption has been defined as those facets of consumer behavior that relate to the multisensory, fantasy and emotive aspects of product usage experience (E.C. Hirschman, 1982). Traditional and hedonic views on consumer behaviour differ significantly. Traditional school of thought emphasizes on mass consumption, widening the consumer base, and gaining new customers. This view is significantly different from the methodological implications of the latter approach. As further supplemented, (Hirschman, 1992) the application of the experiential view depends on the product classes, product usage and individual differences. It has been proposed (James, 1984) that emotions experienced are an outcome of the bodily sensations experienced by the person. This is applied in generating experiences, wherein sensory inputs, emotions

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and relational recalls create an imprint on the consumers' minds. Also, it has been suggested that generating experiences does not necessarily require new tools, (Holbrook et al, 1982) but better application of existing technology that intensifies the experience that the consumers gain. The difference between a poor and a good use of these tools is that of relating to the consumer, instead of simply bombarding the senses (Holbrook, 1993). The competition has intensified considerably in every sector, including retail. This has happened because the majority of players are doing the same things, more intensively. Forming a relationship with the consumer creates an exponentially profitable business model that is sustainable in the long term, across many business domains and customer types. (Hirschman, 1992). Schmitt (1999) advocates a nation of experience as individual response to certain stimuli induced by event. Holbrook (2000) believes when we enter the era of experiential, marketing focus will shift from product performance and benefit to experiences entertainment. Consumer expenditure demand gradually includes more fantasy feeling and fun. Feel experience is the consumer intrinsic emotion and mood. The same experience may take diverse forms and ranges from temperate to intense mood. At the same time think experience stimulates focuses and utilises the intelligence of the consumer to create cognition of experience (Lee, 2006). According to (Schmitt, 1999), the think experience stimulates curiosity and appeal to the consumers creative thinking sesory marketing provides joy, excitement and satisfied mood (Lee et. al 2006). The retail sector in India is at a nascent stage and is expected to grow considerably. The competition in the sector at this stage is very intense because of the large number of players and the large investments in this sector. This competitive atmosphere has set the stage for low profit margins, structural upheavals, and rapid change for many players. Through resulting long-term loyalty, Positive Word Of Mouth (PWOM), and consumer delight, experiential marketing takes relationships, and profits to a level that traditional approaches such as CRM systems, and an emphasis on customer turnover can never hope to attain. This paper explores more on the same. Experience could provide consumers with sensory, illusion, touch/feeling in order to leave unforgettable value (Li 2008), Infact, all personal psychological senses belief motivation, learning and attitude influence customer's purchasing behaviour (Kotler, 1994). When they shop for them and receive service e, experiences occur (Brakus et. al. 2008, Holbrook, 2000). Brand experience is conceptualisation of five senses (Brakus et. al.2008). Brand experience does not presume a motivational state. Experience can happen even when consumer do not show interest. Futuristic retail experiential approach can creat a niche for it self. 3. Research Methodology 3.1

Research design: It was basically research study aimed at young respondents below 36 year. The generation Y has different personality and at the same time how this segment behaves in the mall could be different. They are independent due to good income at early age and are willing to spend more get value for money. Malls are increasingly witnessing younger crowd visiting than middle age personnel. More over, India was highest younger population.

3.2. Research tool: Questionnaire was administered to young people visiting the mall in the study. Any respondent whose age was above 30 years were rejected for further study. They were studied because as per survey 35% of the age group between 18-25 years. 3.3. Sample Design: It was random convenient sampling. Respondent has to below 30 years. There fore, fore getting the form filled up, question was asked about his age and objective of the study was disclosed. Total sample size was 200 in numbers who were in age group of 20-30 years. 40% were female compared to 60% which was male. The ratio is not in lie with the gender ratio of the nation but is in conformity with earlier study (Srivastava 2008, 2009)

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4. Results/ Findings Marketing practioners will be expected to create experiences as one of the means in the competitive market place (Poulsson and Kale, 2004). They need an understanding of what is involved in an experience and an outline that identifies the elements of an effective experience The younger people are the frequent visitors of malls. Malls to great extend is dependent on these young people (Srivastava 2008). As per the research, the youth are interested in all activities with no bias toward any one activity. The survey sample of the primary research was biased toward youth in this mall as they are the biggest spender. There are some differences between the tastes and preferences of the youth and the previous generations. Hence, rather than taking the average statistic, we have considered preferences for those above and below 25 separately. This is given in fig 1a & 1b respectively Fig 1 a: Attraction to visit Mall (below 25 years) Fig 1b: Attraction to visit Mall above 25 years-30 years (Fig I1a)

(Fig. 1b)

Young girls are more interested in shopping outlets (34%), whereas young males are slightly more interested in entertainment zones than females are. It was because of the environment to give better consumer experience. Experiential marketing attempts to evoke a strong emotional (cognitive) response by the use of sensory technique (Shukla, 2007). The same question to respondent below 25 years has different notion. This is give in fig. 1b A majority of people (98%) interviewed have no idea what an experience is. People considered good shopping bargains to be an experience(82%). Entertainment while shopping is a total different experience (79%) and consumer enjoy coming to the mall due to this experience. It is becoming a family outing (67%).Variety of food courts and entertainment complexes were perceived as being provided with experiences. Businesses worldwide are realizing that consumer decisions are much more influenced by emotionally generated feeling rather than by rationally derived thought (Shukla 2007).Experiential marketing approach may add push to this concept. Experiential marketing allows customers to have a personal touch according to Bashford (2004). Experience, due to experiential marketing could lead to just overall liking (Brakus et al. 2008). The next study was to elucidate the important factors which could affect experience in stores. This is given fig. 2 Fig 2: Important attributes affecting experience

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Highly skilled staff goes a long way in providing an experience to shoppers. However, the interaction of customers with staff is limited and varies from outlet to outlet in the present mall. The earlier study confirm the anomalies too (srivastava, 2008) Experiential marketing improves touch points & connect to consumer. This was also reported by Meyer (2006) as his study mentioned that experiential retailing means making connection with consumer who comes to interactive stores for more than merchandising. In fact Mayer Ann (2006) reported that experiential retailing means making connection with consumer more than merchandising. Therefore, designing experiential curve can attract the customer's attention & imagination. Research carried out by Tsaur & Wang (2006) mentioned that experiential environment is an essential source of competitive advantage which is difficult to be imitated and substituted. There is a high awareness regarding a mall's loyalty program, or card among consumers. 82% said they were aware about a loyalty program of the mall. This is due to aggressive push by the retail chain, and the customer's preference for better bargains. However, these cards are not perceived as an experience. They do not provide customers with better experiences, only better offers. Based on Ishanya Mall the following factors could be used for developing an experiential model for retail store. Figure 3 Proposed Model

Experience stimulus focuses and utilises the intelligence of the consumer to create cognition of experience (Lee et al. Experience stimulus further increases curiosity and appeal 2006) to the customer Schmitt (1999). The retail industry in India is still in a nascent stage and still has a way to go before it is in a position to skilfully apply its business model, whatever it may be. Shopping mall has to give total experience. Entertaiment cum shopping along with food court provides a better experience to consumer. Conclusion: Ishanya Mall a speciality Mall has done well in creating a total customer experience through experiential marketing. Males are more interested in entrainment zone compared to females. Shopping out lets and food courts are the biggest attraction centre at mall. Ishanya mall has done well though Niche and experiential approach. Spending quality time with more variety at good prices are equally important. Experiential Marketing improves touch points of customers. KEY REFERENCES: Addis M, MB Holbrook, (2001) - On the conceptual link between mass customisation and experiential consumption: an explosion of subjectivity - Journal Of Consumer Behaviour, Volume 1, Number 1, 1 June 2001, pp. 50-66(17) Bashford, Suzy, (2004) The exposure effect, Marketing (UK); June, pp.40-41 Brakus J J., BH Schmitt and L. Zarantonello (2008), Brand Experience what is it? Journal of Marketing, Vol. 73, pp. 52-68

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Chetan Bajaj(2009), Retail Management, Oxford University Press Hirschman EC and Morris B. Holbrook, (1982) - Hedonic Consumption: Emerging Concepts, Methods and Propositions, Journal of Marketing, Vol.5, No.1, pp.72-85 Hirschman EC, (1992) - The Consciousness of Addiction: Toward a General Theory of Compulsive Consumption, Journal of Consumer Research, Vol.7, No.2, pp.35-37. Holbrook M B (2000), The millennial consumer in the text of our times, Journal of Consumer Research, vol.2 no.2 pp.178-192 Holbrook MB, (1993) - Nostalgia and Consumption Preferences: Some Emerging Patterns of Consumer Tastes,Journal of Consumer Research, Vol. 73, pp.136-141. Holbrook MD, EC Hirschman, (1982), The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun,Journal of Consumer Research, Vol. 17, No.5, pp.63-70 James W, (1984) - What is emotion?, Mind, Vol. 9, pp.189 Kotler, P (1994), Marketing Management Analysis, Planning 8th Ed. Engle wood cliffs Prentice-Hall Lee Su-Hsin,Shu-chenChang, Jing Shoung Hou, (2006), Night market experience and image, International Journal of culture, Tourism and Hospitality Research, Vol.2, No.3, pp.217-233. Mark Whelan (2008), Experiential marketing is an opportunity for consumer to touch and feel , brand marketing week, Nov. 13,. pg.31 Meyer Ann (2006), Are you experiential, Multi channel Merchant, Vol. 12, Issue 8, pp10-55. Schmitt BH., Schmitt, (1999), Experiential Marketing, Journal of Marketing, Vol. 15, No.1, pp. 53-54. Shukla T. (2007) Experiential Marketing. The new paradigm, Indian Journal of Marketing, April, Vol.12.pp10-12 Srivastava R K (2009) , Luxury Brands.A Mirage or Reaity in Indian Retail, Synergy, Vol. VII, No.1: pp21-27 Srivastava R. K. (2008) How experiential marketing be used to builds-A case study of two specialty stores Innovative Marketing. vol. 4, No 2, 2008. pp.31-33 Swapna Pradhan(2008), Retailing Management- Text And Cases, Tata McGraw-Hill, pp 331-332 Ye-chuen Li, (2008),Retail scenario, Journal of American academy of Business, Cambridge vol. 13, No.1, pp.98. Yu Y. T. & A Dean (2001), The contribution of emotional satisfaction to consumer loyalty, The International Journal Service Industry Management Vol.12, No.(3-4), pp234-40

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Marketing of Luxury Brands Monica Khanna * Avipsha Banerjee **

Abstract The Oxford dictionary defines " Luxury " as a condition of great comfort provided without any consideration of cost. It is derived from the Latin word luxus, which means indulgence of the senses, regardless of cost. The Luxury Marketing Council defines luxury as " great experiences so rare and sensually orchestrated, the experience and memories of them so precious, that they are luxury products, packaged and sold in exactly the same way." Phau and Prendergast ( 2000 ) pointed out that while " luxury " is a subjective concept, " luxury brands compete on the ability to evoke exclusivity, a well known brand identity,.... brand awareness and perceived quality". Luxury products can be classified into two types - the material luxury which includes cars, apparel, accessories, diamonds and electronic devices and the experiential type which comprises of travel, stay at an exotic hotel or a dining experience. According to Neuno and Quelch ( 1998 ), luxury brands are those whose ratio of functional utility to price is low while that of intangible situational utility to price is high. These brands are known for their consistent premium quality, exclusivity and uniqueness, very innovative design and style that keeps changing with the changing trends in fashion. Is the marketing of luxury brands different from that of regular product / service brands ? This research paper focuses on the various marketing challenges and aspects of luxury brands and how they are different from regular products. It aims to understand the consumer perception and buying behavior relating to luxury and based on that suggests a model of the marketing mix for marketers in this fields. The paper also looks at the international and Indian trends in the luxury market and the impact of the counterfeit products on originals. This research paper is based on research papers and secondary data available for luxury brands on an international and Indian level. An exploratory research to understand consumer behavior regarding luxury brands in India has also been carried out, among a small group of 22 respondents using questionnaire and in-depth interviews. Key Words : Brand Management, Luxury Brands, Marketing of Luxury Brands in India Introduction The market today is highly complex. It is flooded with different products, having almost similar features; what differentiates one from the other is the brand of the product. The stronger brands stand out and definitely carve a place for themselves in the market. Managing brands is highly challenging and a number of aspects need to be taken into consideration to remain at the top. To stay competitive, it is important to integrate all the elements the brand stands for and create a consistent message to reach out to the target customer [1]. The responsibility of driving the business does not lie with the retailer. So, the * **

Associate Professor (Marketing Management), [email protected] PGDM Batch 2007-09, [email protected]

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companies need to focus on brand management. Luxury brands have always been an interesting topic of study because of the exclusivity and differences in the marketing aspects compared to that of normal products. The global luxury industry attracts a lot of companies, marketers, as well as the glitzy upper crust. The Oxford dictionary defines "Luxury" as a condition of great comfort provided without any consideration of cost. It is derived from the Latin word luxus, which means indulgence of the senses, regardless of cost. The Luxury Marketing Council defines luxury as "great experiences so rare and sensually orchestrated, the experience and memories of them so precious, that they are luxury products, packaged and sold in exactly the same way."[2] Phau and Prendergast (2000) pointed out that while "luxury" is a subjective concept, "luxury brands compete on the ability to evoke exclusivity, a well known brand identity,...brand awareness and perceived quality" [3]. Luxury products can be classified into two types - the material luxury which includes cars, apparel, accessories, diamonds and electronic devices and the experiential type which comprises of travel, stay at an exotic hotel or a dining experience. Another way of classifying luxury could be as follows : =

True Luxury : for the ultra rich - fast cars, jets, haute couture, - exclusivity is more important than money.

=

Traditional Luxury : fragrances, fashion, jewellery, premium spirits and champagne

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Modern Luxury : travel, luxury technology, time as the ultimate luxury with convenience and outsourcing of services like home / personal care rising in importance.

=

Life's Little Luxuries : small treats where luxury ranges have been developed for the mass market in products like cosmetics, chocolates, food products, pet care, food service etc.

Thus it can be said that luxury is a way of living at great ease, without the consideration of cost. According to Neuno and Quelch (1998), luxury brands are those whose ratio of functional utility to price is low while that of intangible situational utility to price is high.[4] These brands are known for their consistent premium quality, exclusivity and uniqueness, very innovative design and style that keeps changing with the changing trends in fashion[5]. The luxury products aim at a niche market segment and are normally associated with the affluent. It is known that the wealthier allocate higher proportions of their expenditures to luxuries compared to the poorer people. Since it can be said that the pursuit of luxury causes more propensity to spend and lower savings, it harms the capital formation and/or affects the balance of payments. So, some countries, mostly the developing ones, levy high taxes on luxuries or high import duties. [6] The recent trend is changing; Britain has seen over 50% growth in the luxury consumption in the last decade because of luxuries becoming more affordable by the middle-market consumers. The global apparel, accessories and luxury goods market has reached a value of $ 1.2 trillion in 2007, which is a 4.3 % rise compared to the previous year and is expected to grow by to $ 1.5 trillion by 2012, which is an increase of 24.7% over 2007 [7]. But in the face of recession, a challenge lies before the luxury brands to keep up these growth figures. Moet Hennessey Louis Vuitton (LVMH), a French Holding company, is the world's largest luxury conglomerate and has over 50 luxury brands. It has been ranked the No.1 luxury brand in the Millward Brown BrandZ ranking of the Top 100 Most Powerful Brands, a list that covers 50,000 brands worldwide. [8] List of top luxury companies is attached as Annexure - I. Presence of luxury companies in various product categories is given in Annexure - II.

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Understanding the Consumer A lot of study has been done on the luxury brands, especially to understand the conspicuous consumption and the personal orientation that goes behind buying such high-prices items. Some people attribute it to the "snob and bandwagon effects" [9]. The "snob" effect refers to the decrease in preference for a good relative to the number of persons buying it and the "bandwagon effect" refers to the increased preference of a good relative to the number of buyers of that good. In case of luxury purchase, the snob factor becomes quite evident. The consumer perception of luxury brands needs to be looked at in details. Though most people perceive luxury brands and prestige brands to be the same, there is an underlying difference between the two. Consumers form a positive image for prestige brands, whereas the same might not be true for luxury brands. Luxury brands have more to do with beauty, comfort and a sumptuous lifestyle. [10] Yeoman and Beattie (2006) have discussed about the drivers of luxury in their study. Normally, luxury is always associated with the affluent, but the trend is changing now with more and more people having a higher disposable income [11]. Luxury goods are no longer just under the safeguard of the elite. Luxury has undergone a transformation from status symbol to that of experience and indulgence, but yet the old world of consumption and elitism still exists. Today it can be seen that consumers are buying more of aspirational luxury products and trading down the products and services that are of lesser importance to them. For example, people drive a Mercedes but shop from Wal-Mart. The major drivers of luxury products are: =

Increase in the discretionary income due the low interest rates and inexpensive credit availability, which has caused consumers to spend more on leisure for themselves.

=

The number of educated people is increasing and with education a more liberal mindset develops. A study shows that education is a major driver of consumption of luxury goods.

=

With increased affluence and education, consumers are more experienced and travelled. The society has become more liberal and cosmopolitan in its outlook. This has helped in new product development and people's greater tolerance towards the same.

=

Consumers are becoming more aspirational and focusing more on personal development. This is leading to more expenditure on enriching activities and lifestyle.

=

The cultural shift towards individualism in another reason which has led people to try new things and spend more on a variety of products rather than conformity to one product.

=

Consumers today, with the extended working hours feel a crunch of time, so leisure becomes very important. They enjoy their leisure time and at the same time indulge in lot of personal services.

=

Wanting to Trade Up rather than Trade Down.

From the above, it can be inferred that understanding the trends of the consumers' purchase behavior is one of the most important aspect for being successful as a marketer. Vigneron and Johnson (2004) [12] tried to understand what luxury brands are to consumers and identified the dimensions of measuring a luxury brand. The authors say that a particular object which may be a luxury for a person can be necessity for another at the same time. Also, for an individual the same product may be a luxury under a particular situation and necessity under some other. Also, there is a concept of upper and lower range of luxury. Cartier has a greater luxury image in the jewelry market compared to that in the apparel and fragrance market. The authors proposed a framework for brand luxury index (shown in Figure: 1). Personal and non-personal perceptions affect the consumption of luxuries. The non-personal perceptions are in turn influ-

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enced by conspicuousness, uniqueness and quality. Conspicuousness is a result of reference group influences while publicly consuming the products. Social status is an important factor in conspicuous consumption. Uniqueness refers to the scarcity or limited supply of products, which enhances the consumers' preference of a brand. Superior brand quality and reassurance is assumed to be an attribute of luxury products. The personal perceptions are influenced by hedonism and extended self. Hedonism refers to the sensory gratification and sensory pleasure of an individual obtained through consumption of luxury. Extended self suggests that people regard their possessions as a part of their identity. Figure 1 : Framework of Brand Luxury Index [12]

It is normally believed that customers buy luxury brands to impress others. The social orientation can be attributed to two immediate effects of managing impression, one being social salience (it serves as a symbol of prominence and tastefulness for the consumer) and the other being social identification (it is deemed as a common icon for certain social groups). Social orientation, though an important factor, is not the only orientation that influences purchase of luxury goods. Most marketers mistake that their exists only socially oriented (non-personal) class of people buying luxury products and so try to reduce the utility of the products and concentrate more on enhancing the sociality. [13] There exist consumers for whom self-expression through ownership of luxury goods is an important rationale for purchasing such products. The personal orientation of a consumer refers to the condition when the consumer buys products for self and not for creating any impression before others. The personal orientation can be further studied from the research done by Tsai Shu-pei (2005). It is said, consumers who are more personal oriented buy luxury products because of the following: =

The product gives a hedonic pleasure and serves the self-gifting purpose ( referred to as personally affective benefits)

=

The product helps expressing the consumer's internal self (referred to as personally symbolic benefit)

=

The product matches with the consumer's attitudes and taste for quality (referred to as personally utilitarian benefit)

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The author has developed a conceptual model of personal orientation towards luxury brand consumption and repurchases. Figure: 2 shows how the four types of consumption goals of an individual having personal orientation which drive the individual's luxury consumption and in turn the repurchase decision. The first stage to the model is identifying the independent self-construal, which refers to the individual's inclination of perceiving a clear boundary between the self and others. Based on this the four consumption goals of the individual have been enumerated as: =

Self-directed pleasure - is the hedonic experience of using the product

=

Self-gifting - is using the product for enhancing the emotional aspects of the self

=

Congruity with self - is perceiving the product's brand image to be in line with what the individual perceives of himself/ herself, even though others may perceive differently about him/her

=

Quality assurance - superior quality is a taken-for-granted attribute of luxury products and consumers look at the prestige and premium prices of luxuries to infer that they have better quality than that of non-luxuries

Any of the four goals could determine the personal orientation of an individual towards luxury purchase. The repurchase decision of luxury is also dependent on these. Figure 2 : Personal Orientation towards Luxury Brand Consumption (PO-LBC) Model [13]

An exploratory study was conducted in Mumbai order to understand the consumer behavior with respect to luxury brands, with a small sample of 22 respondents, using a questionnaire and in-depth interviews. Some of the key findings of the survey are given below :

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Exploratory Survey Results (sample size 22 respondents) 1.

Top 5 words that define luxury :

Ø

Status Symbol ( 68 % respondents )

Ø

Superior Quality ( 64 % respondents )

Ø

Expensive ( 64 % respondents )

Ø

Exclusivity ( 55 % respondents )

Ø

Branded ( 45 % respondents )

Ø

Glamorous ( 41 % respondents )

2.

Top 5 motivations to buy a luxury product :

Ø

Sense of Achievement ( 71 % respondents )

Ø

Status Symbol ( 64 % respondents )

Ø

Pleasure ( 59 % respondents )

Ø

Pure Self Indulgence ( 45 % respondents )

Ø

Reward for Self ( 41 % respondents )

Ø

Long Standing Dream ( 41 % respondents )

3.

What triggers the need for luxury product purchase ?

Ø

Special Occasions /Events ( 52 % respondents )

Ø

Professional Success ( 48 % respondents )

Ø

Personal Sense of Achievement ( 43 % respondents )

4.

Information sources for luxury products ?

Ø

Magazines ( 90 % respondents )

Ø

Newspapers ( 52 % )

Ø

Billboards / outdoor ads ( 43 % respondents )

Ø

TV ads ( 38 % respondents )

Ø

Company websites ( 33 % )

5.

From where would you prefer to buy luxury products ?

Ø

Exclusive brand outlets ( 95 % )

Ø

Malls ( 43 % )

Ø

Multi brand outlet ( 33 % )

Ø

While on travel abroad ( 14 % )

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Table - 1 Luxury brand awareness

The survey results are in line with the research paper findings of various articles quoted as part of the discussion on luxury brands and also reveal the extent of various luxury brands awareness of the Indian consumer in the various product categories. In the article, "Choosing to conceal: An investigation of the impact of social influence on luxury consumption"[14], Bennett and Elbert (2007) talk about some consumers who prefer to conceal their luxury product purchase. This occurs in some cases where the consumers conceal the purchase from few friends, but not all. This is done due to the fact that not all would think that the purchase justified the price paid for. Also sometimes, luxury purchases are concealed from friends who are seen less often compared to those seen almost regularly. This is because, friends who are seen regularly are more aware to the consumer's past purchasing behavior and therefore the consumer shares more information with him/her compared to that with a friend seen only seldom. Another important aspect is that consumers buying luxuries justify the indulgence as a result of effort or excellent performance. People who obtain luxuries through effort and other people know about this effort (public), almost never conceal the luxury purchase. If there is effort which is not known by all (private), then concealment is more. The maximum concealment occurs if there is no effort and this is public, that is, known to all. Within consumers, the buying pattern differs based on the user and non-user [15]. This has been highlighted in the article "Luxury good expenditures of husband and wife dyads incorporating user attitudes". The authors point out a difference in the purchasing behavior of the husband (non-user) and the wife (user), when the purchase is being done for the wife. There are exogenous and endogenous variables that affect the buying behavior. The exogenous variables are: the wife's attitude towards the product and product category, the purchasing behavior of the other member of the dyad and the individual and household characteristics. The endogenous variables are the expenditures of each spouse and these are the dependent variables. Based on their findings, the authors have classified the users as "Guilty Con-

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sumer", "Romantic Consumer", "Enthusiastic Purchaser", "Involved Recipient" and "Infrequent User" and identified household income to be an important parameter in determining the purchasing behavior for the dyad, though behavior of both is different. Marketers should keep this in mind during promotion of their products. Another study by Vickers Jonathan and Renand Franck (2003) on the three conceptual dimensions of the marketing of luxury goods [16] emphasizes on the difference between luxury and normal goods. The three dimensions are functionalism, experientialism and symbolic interactionism. The functional aspect refers to those needs that motivate the consumer to search for a product that resolves the problem faced by the consumer or better his/her current consumption process. The experiential symbolism refers to consumer needs pertaining to certain sensory pleasure or cognitive stimulation. While functional symbolism refers to externally generated consumption needs, experiential symbolism refers to internally generated needs. Symbolic interactionism refers to desire for products that fulfill internally generated needs for self-enhancement, role position, group membership. The exploratory study by the authors further substantiate the fact that for companies to enhance consumer purchase a good marketing communication mix is essential. Counterfeit Brands It is also essential to understand the perception of people towards counterfeit luxury goods and imitations compared to the original ones. In case of regular goods, the effect may not be to that extent as the customer may not be so involved with the product. In the article, "An exploratory study on attitude toward luxury products, counterfeits and imitations" [17], the authors define counterfeits as "strict copies of genuine products" and imitations as "designed as to look like and make consumers think of the original brand". Attitude towards counterfeits though is assumed to be same as that of originals, was proved wrong as social factors like prestige, esteem, and popularity brings about conformity towards originals. Through a survey conducted Muller and Kocher (2007) proved that attitude towards originals is more positive compared to that towards imitations. Attitude towards a product is dependent on the conformity. When conformity is high, attitude towards original products is more positive than that towards counterfeits and imitations. Also, when conformity is high, counterfeits are looked at more positively compared to imitations. The factors that were identified to hinder purchase of counterfeits and imitations are: perceived level of quality, legal issues, image perceived by others during product usage and purchase, external aspect, price, ethical aspects and made in of the product. Of these, the most important criteria are external aspect of the product and quality. Legal and ethical issues are not much taken into consideration while purchasing counterfeits and imitation. Perez, Castano and Quantinilla (2006) studied that women have stronger brand involvement and there is a strong association between feminity and fashion. Due to this, women of upper socio-economic class do not buy copies [17]. So, women do not prefer to own counterfeits and have lot more involvement with the original brand compared to men. The growing counterfeit in the marketplace was studied by Nia and Zaichkowsky (2000) [18] and they delve into consumer insights on the same. Research show that consumers associate original luxury brands with quality, value and prestige and this does not change even with the increase in counterfeits. While the consumers using counterfeits do not believe that their products are inferior and associate it with fun, they do feel that it is more prestigious to own original luxury brands. An important outcome of the research was that counterfeits do not devalue the ownership of luxury goods International Trends In The Luxury Market Danziger Pam (2005) in an article, "Eight things that every marketer should know about the new luxury market" [20] mentioned a few dimensions of the luxury market. She discussed eight concepts that are essential for marketers of luxury products, which have been stated hereafter:

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=

Earlier consumers bought luxuries for the appeal, status and prestige, which is the concept of 'old luxury' and is not prevalent today. The 'new luxury' is consumer-centric and focused on the experience of luxury from the consumer's perspective rather than just the ownership or possession of the luxury.

=

Luxury lifestyle is about the experience and not money. Luxury consumers are involved experientially with the product and so the product necessarily does not have to be the most expensive one.

=

Consumers prefer the exclusivity not in terms of distribution of the product but the exclusivity derived from the ability to express oneself and the uniqueness of the product.

=

Luxury products are synonymous with high quality and this is an essential requirement of all luxury consumers.

=

Luxury consumers look for the best price for their deals and therefore enjoy bargaining, buying on sale; they are savvy shoppers.

=

Once a consumer buys a luxury and gets used to it, he/she looks for something new, something extraordinary. Luxury consumers invest in lifestyle heavily.

=

Consumers do not buy for the brand, the brand justifies their purchase. It is for the brand that the consumers are assured of the quality and they do not mind paying a premium for the product.

=

The difference between luxury consumers is purely behavioral, that is, the extent to which they buy luxuries. The motivational differences are very minor.

These key insights will definitely prove essential for marketers as the dynamics of the luxury market are not the same as regular goods and therefore requires to be dealt with differently. In an article "Understanding the world of international luxury brands: The dream formula", the authors Dubois Bernard and Paternault Claire (1995) [21] dealt with a major dilemma that the marketers of luxury brands encounter - they want a certain level of diffusion for their brands to do well in the market place but at the same time overdiffusion of the brands kills its luxury image. The authors indicate that developing a relationship between a brand and the customer starts with brand awareness. There is a "dream factor" associated with the luxury brands and purchasing them is like a dream come true. Awareness is a prerequisite to dreaming and purchasing a brand. But the question here is whether purchasing a luxury brand in actual takes away it inaccessibility and luxury characteristics. For this, the study done showed that there is a high correlation between the awareness and purchase of a brand. Consumers hardly buy luxury brands whose name they do not know. Awareness and dream also shared a high correlation. But the same does not occur for dream and purchase. A regression equation to express the relationship is: DREAM = 0.58* AWARENESS - 0.59 * PURCHASE - 8.6 This equation helps marketers to calculate the "expected dream" or the dream level their brands deserve at a given awareness and purchase level. It is roughly equal to half the value of the difference between the awareness and purchase levels. It gives a feel that awareness feeds dreams whereas purchase destroys it as the dream comes true. Some of the implications for marketers based on this are discussed below: =

The desire for a brand is sometimes low because of the low awareness level. In this case celebrity endorsements, event management, sponsoring activities are helpful for building awareness.

=

Another case may be that the desire is low despite the high awareness because the purchase is high. In this case it is important to cut down on excessive licensing and maintain selective channels of distribution.

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=

It may also be that the purchase level is low to cause fascination but the awareness is pretty low. In that case a well thought expansion strategy is needed.

=

The best situation is when the awareness is high and purchase is low and these brands are the "star brands". Maintaining the same and building on the present strategy is important for these brands as they are on the right track.

The authors thus suggest that for brands to do well it is important for them to position themselves at the intersection of two segments- one is that of authenticity and quest for good quality and the other is role models and social codes. The path is really narrow and thus requires special attention for survival and prosperity. Most luxury brands today follow the retailing format and this is proving beneficial for them, primarily due to the "retail therapy" that consumers undergo. "Retail therapy" is the act of buying things to feel better. The sensory experience within a retail environment is very crucial. LVMH [22] opened a 4-storey, 22000 square feet boutique with grand interiors as the customer's first experience is very important. The "wow" factor may not always translate into sales but it is important for marketers to create such an impression and for luxury brands this is quintessential. What companies today are doing to sustain in the luxury segment is consolidation, internationalization and looking for new communication channels. Nyeck Simon (2004) in his article "Luxury brands online and offline: The case of French brands" talks about the changing luxury clientele- the young, less loyal, more internet friendly category [23]. The luxury clientele can also be divided into two segments - the loyal, wealthy customers and the group of less-loyal, affluent people who are more price-sensitive. The author determines the various types of consumers based on the situation of consumption and the vision of luxury. This has been shown in the figure below: Figure 3 : Situations of Consumption and Vision of Luxury

Today it becomes unavoidable for the marketers to consider internet as a communication tool. There are various views of marketers- some prefer the traditional ways, some are skeptical while others are openminded and ready to accept the change. Cartier is the first luxury brand to setup a community on MySpace for its Love brand in June, 2008[24]; this just reflects the changing communication strategies of luxury brands to keep up with the changing clientele preferences.

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Though internet may not be able to provide the necessary attention and individual customer personalization, it is a very important medium for increasing brand awareness and desirability. In some cases by communicating about the brand and its stores on Internet, footfalls can be increased. Research shows that the website should be luxurious and should have the perfect aesthetics [25]. The interactivity of the Internet enables a two-way communication between the brand and the consumer - instead of being a forced communication mode, consumers today actively choose their communication. There are again converse views about promoting luxury brands using the internet- organizations are sacred of the threat of "commoditization" [25] from being referenced by other portals and pirated by those who procure merchandise from grey markets. Thus, most marketers feel that internet can prove to be more of a communication tool than a selling tool or developing relationship with customers. Diversifying and Stretching the Brand Brand extensions are quite common these days and much research have been done related to this. The brand extension can be in terms of new product development or stretchability of the brand into new markets [26]. According to Alhuwalia (2008), the success of brand extension depends on its fit with the parent brand in terms of product category and attributes. In case of luxury brands, a question that arises quite often is how far should the brand diffuse but still maintain its exclusivity. Studies show that the profitability of luxury brands increase in direct proportion to the premium degree (when consumers perceive that these brands offer more value compared to similar products) the brands offer [27]. Luxury brands have gone in for diversification and have forgotten their core products and are focusing on a number of items. But, it is said that what made Gucci successful was leather goods and watches and not apparel. So, the brands need to identify the reason for their success in the past (in terms of few core categories) and innovate in that DNA [28], rather than confuse consumers with a varied portfolio. Understanding the brand's DNA is necessary. Facing the Recession The growth of this market has been really good so far, but the biggest challenge is to survive the present recession. Marketers have a tough time ahead. It is said that in countries like Dubai, the recession has not been able to deter the sales of luxury products, but the challenge lies in developing countries. So marketers need to strategize and come up with innovative ideas to keep up the sales of luxury goods. The luxury spending trends in the U.S. market[29] studied by Unity Marketing shows that in the last quarter of 2007, 37% of the people spent less on luxury as compared to only 18% who had increased their purchases. Figure 4 : Luxury Spending Trends - 2007 *Source: Unity Marketing's Luxury consumption index and predictions for the luxury market 2008

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The analysis also looked at the expected spending on luxury in 2008, which showed that 39% of the consumers surveyed indicated that they would spend less on luxury, while only 16% would be spending more. This has been shown in Figure: 5. Figure 5 : Expected Luxury Spending - 2008 *Source: Unity Marketing's Luxury consumption index and predictions for the luxury market 2008

Past data shows that after the 9/11 incident of U.S, the market suffered a major setback. But nothing has been able to deter the growth after a few years thereafter. In the same manner, though the market is showing a drop in sales, this will not last long. This is one market, which is to some extent recessionproof for bigger companies, especially due to the large presence of traditionally affluent consumers (HNIs) in their clientele. But for companies whose major focus were on customers willing to "trade-up", they will face difficulties as these customers will try and spend less. They being used to luxury may not stop buying but might surely buy "little luxuries" compared to their earlier "big-ticket" purchases. It can be predicted that consumers will be focusing more on domestic travels compared to that of overseas. In the U.S, with housing market on a decline, consumers will be looking for investing in real estate and also within the house on household appliances. Compared to America, markets like Dubai can be expected to be more attractive. Even developing nations are expected to be attractive destinations for the big brands. Luxury Market in Asia Asia is the fastest growing market for many luxury products and services. Rising affluence in the region is leading to the rising demand for high end products in Asia. Asia's affluent young and elderly are expected to account for 83 % of the region's spending on luxury goods and services by the year 2016. The emergence of affluent and middle class in South Korea, China, Taiwan, India is driving sales across Asia. According to a Euromonitor report, the demand for luxury goods and services in Asia could grow by 12 % to reach US $ 258.7 billion by the year 2016, reflecting the region's growing affluence. A report by Merrill Lynch predicts that the Chinese share of the global luxury market would be around 25 % by the year 2014. Rise of the rich and " affluentials " in 12 Asian Countries and their wealth is estimated to reach US $ 610 billion by the year 2015. Leather goods, cars and jewellery remain the most in demand, followed by luxury homes. Another reason for the rise in purchase of luxury goods by Asian's is the collapse of the old social order with luxury brand's indicating one's social status. Luxury goods of high value flatter both the receiver and the giver - especially during the festivals and marriage season.

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Opportunities & Challenges for Luxury Brands In India According to an A T Kearney Survey for Economic Times in the year 2007, the size of the luxury market in India could be up to US $ 30 billion by the year 2015. Indians splurge US $ 2.9 billion on luxury assets ( essentially private jets and luxury homes, cars or yachts and art ), spend another US $ 953 million on luxury services and top it by buying luxury goods worth US $ 377 million. " I have arrived and I want it " is what resurgent India's creamy layer feels. Samsonite has announced a Rs 100 crore retail expansion and marketing plan for India for the year 2010, including opening 200 retail outlets across the country. Over Rs 67 crore will be spent by Samsonite in the year 2010 for brand building and promotional activities while the rest will go to augment distribution network to 400 outlets. Another recent study by the GQ Magazine has revealed the emergence of a new consumer segment called " Xoomers " in India. The XOOMERS are men between the age of 25-39 years, brand aware shoppers, heavily inclined towards luxury products, outspend the baby boomers ( those born between the 1940's and 1960's ), and typically spend on men's luxury jewellery, cars and watches. However, there are huge challenges for luxury marketing in India and some of them are lack of quality retail space, high import duties on luxury goods, piracy and availability of spurious goods. Also, a corner shop in a five star hotel is not sufficient to build a luxury brand, and Indians who can afford luxury goods prefer to buy their products in either Dubai or Singapore. " For luxury goods in India, the path is bumpy and long ", according to Mr Mohan Murjani, Chairman of the Murjani Group which launched Gloria Vanderbilt jeans and Tommy Hilfiger globally, and have partner stakes in brads like Gucci, Calvin Klein and Jimmy Choo in India. Some of the new emerging luxury categories in India are Spa's and skin treatment clinics, memberships of elite clubs, designer clothes and exclusive travel and tour packages. Marketing Mix For Regular And Luxury Brands The above literature review suggests that there are a lot of aspects in which the marketing of regular goods and luxury goods differ. A model has been developed based on these in terms of the 7Ps of marketing (considering services to be an integral part of the luxury offerings). This has been shown in Table: 2. Table 2: Marketing Mix of Regular vs. Luxury Brands The marketing mix clearly indicates the differences in the

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marketing mix of regular and luxury brands and so this indicates the need for different marketing strategies for both. Management Implications The literature studied and the exploratory survey conducted to understand consumer behavior gives a good insight to consumer behavior related to luxury brand purchase. For companies and marketers it is very essential to know what the consumer is looking for as these are not daily utility items, and for consumers, luxuries are not dire necessities. In this era where imitation and counterfeit is very predominant and sometimes responsible for eating up revenues of the original luxury brands, differentiation is a must. Superior quality is an important attribute associated with luxury products and so companies should in no way compromise on this. Since there are customers who are personally oriented towards luxury consumption, marketers should not try to reduce the utility of the product to concentrate more on the sociality. Innovation is the buzz word in this field. Marketers should constantly come up with variety of products which are high on aesthetics and are exclusive. A customer should be able to associate with the product and feel that the product has been designed exclusively for him/her. Though massification of luxury products is taking place these days, with more number of consumers being able to afford them, the exclusivity and scarcity of the product should not be lost. Making these products available at most retails outlets brings down the exclusivity and consumers do not consider them as luxurious anymore. The attitude of the user and non-user purchasing a luxury product should also be kept in mind. Consumers are willing to trade-up if they get what they are looking for, so marketers should identify and associate with the wants of the consumers. The marketers, other than understanding the consumer behavior, also need to focus a lot promoting the luxury brands. Various retailing formats, both store and non-store, are used for promotions. The most important aspect is that these brands cannot indulge in sales promotions for improving their performance as customers perceive this otherwise. So, the promotional aspect is very challenging and needs intricate analysis of consumer behavior. Online advertising of luxury products, which is a very recent trend, is also used for differentiation these days. The luxury brand's communication should be consistent and congruent with its image and needs of the consumer. It is important for marketers to understand how effectively the communication conveys the benefits to the consumer so as to enable the consumer to differentiate the product compared to other offerings in the market. With the changing times, the marketers need to change and use the Internet to their advantage rather than focusing on the same traditional methods of communication. Tracking changes in consumer behavior and analysis of competition should be done on the three dimensions (functional, experiential and symbolic interactionsim) and these inferences should be incorporated in the new or enhanced product offering. Thus, in this hyper-competitive environment, market research is a necessity. Marketers should be able to anticipate the next major luxury business opportunity or branding challenge and prepare themselves according. Innovation is a must. As Deoborah Scarpa, Founder and President of DJS Advertising & Marketing, puts it, aggressive branding strategies are essential for surviving in this new economy [30]. The marketers should continue marketing the physical and psychological advantages of their products despite the increasing counterfeits. It is important for them to build a positive image of the brand and communicate the brand DNA to its consumers. At the end of the day, consumers look for high quality and workmanship which only original products can deliver. At present luxury brands are targeting the Gen X and Y consumers through non-traditional ways. For example, at Fashion Island, Traditional jewelers[31] have appointed a young Vice-President who would

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be able to understand the needs and wants of the younger generation and help in combining fun and luxe for the consumers. Over and above all this, the luxury brands should carefully analyze the market, industry and consumer trends. A four-step analysis[32] for strategic planning is as follows: =

Analyze the current and future operating environment

=

Evaluate current market conditions

=

Determine industry trends

=

Identify consumer needs

Conclusion The luxury market is the highly profitable if the company knows what they are doing and doing it right. The gross margin conundrum is resolved in this market [33]. The study indicates that marketing of luxury brands is far more challenging and requires more strategic thinking compared to regular goods. The complexity arises as because a balance is required between maintaining exclusivity and at the same time generating profits and recouping costs. In case of regular goods, making the product available readily to the consumer is the major challenge. The earlier belief that recession does not affect this market does not hold true. The market is much more diverse and stratified today and therefore, luxury marketers need to stay tuned to the changing consumer preferences and track the shifts and turns in the affluent consumers needs. They need to understand the segments within their target markets and develop strategies accordingly. The marketing mix model highlighting the differences between the luxury and regular brands should be helpful in strategy formulation. The future scope of research would be to analyze the potential of the luxury brands in the Indian market for various product categories, analyze the consumer behavior and propose marketing strategies that would be the most effective in a developing country like India. Annexure - I - Top Luxury Brand Companies

Based on Euro exchange rate in May 2007 ( Source : Euromonitor )

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Annexure - Ii - Presence Of Luxury Companies In Various Product Categories

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14. Bennett Christine M. and Elbert Jane E J(2007), "Choosing to conceal: An investigation of the impact of social influence on luxury consumption", Advances in Consumer Research, Vol.34,Pg361-362 15. Heilman Carrie, Kaefer Frederick, Ramenofsky Samuel (2007),"Luxury good expenditures of husband and wife dyads incorporating user attitudes", Advances in Consumer Research, Vol.34,Pg-410411 16. Vickers Jonathan and Renand Franck (2003),"The marketing of luxury goods: An exploratory studythree conceptual dimensions", The Marketing Review, No.3 , Pg- 459-478 17. Muller Brigitte, Kocher Bruno (2007), "An exploratory study on attitude toward luxury products, counterfeits and imitations", Advances in Consumer Research, Vol.34, Pg-363-365 18. Perez Maria, Castano Raquel, Quintanilla Claudia (2006), " Consumption of counterfeit luxury goods: How and why?", ACR North American Film Festival, Pg-10 19. Nia Arghavan, Zaichkowsky Judith Lynne (2000),"Do counterfeits devalue the ownership of luxury brands?", Journal of Product and Brand Management, Vol.9, No.7, Pg-485-497 20. Danziger Pam (2005), "Eight things that every marketer should know about the new luxury market", Unity Marketing 21. Dubois Bernard and Paternault Claire (1995), "Understanding the world of international luxury brands: The dream formula", Journal of Advertising Research, July/August 1995, Pg-69-76 22. Hanna Julia (2004), "Luxury isn't what it used to be", Harward Working Knowledge (http:// hbswk.hbs.edu ) 23. Nyeck Simon (2004), "Luxury brands online and offline: The case of French brands", European Retail Digest , Spring 2004, Issue 31, Pg-5-11 24. "Cartier becomes first luxury brand to set up community on MySpace", 5th June,2008,New Media Age, Centaur communications ( www.nma.co.uk ) 25. Riley Fransesca and Lacroix Caroline (2003), "Luxury branding on the internet: lost opportunity or impossibility?", Market Intelligence and Planning, Vol.21, No.2, Pg-96 - 104 26. Ahluwalia Rohini (2008), "How far can a brand stretch? Understanding the role of self-construal", Journal of Market Research, Vol.XLV, Pg-337-350 27. How not to extend your luxury brand - Mergen Reddy and Nic Terblanche, Harvard Business Review 28. Hirshlag Jennifer (2005), "Core strength key for luxury brands", Women's Wear Daily, Vol.190, Issue 120 29. Danziger Pam (2008), "Luxury consumption index and predictions for the luxury market 2008", Unity Marketing 30. "Saving the luxury brand", May 2004, Reed Business Information, JCK 31. Asman Judy (March,2008), "The Luxe Flux", OC Metro Business, Pg-82 32. Maresco Peter and Lyons Bridget (2005), "Achieving growth in the luxury market", Strategic Finance, Vol.86, No.11, Pg- 46-52 33. Davies Hannah (2008), "In the lap of luxury", Bookseller, Issue 5336

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OTHER REFERENCES 34. Luxury Consumption : http://www.wikiinvest.com/concept/Luxury_Consumption 35. Aiello Gaetano et all, " Luxury brand and country of origin effect : results of an international empirical study ". 36. India's Lust for Luxe : http://www.time.com/time/printout/0,8816,1179415,00.html 37. Luxury in Asia - 28th Nov 2007, Euromonitor Database 38. Indian Consumers 2020 - the rich get richer - Euromonitor Database 39. These are a few of my favorite things - consumers and luxury brands, 9th Feb 2007 - Euromonitor Database 40. Consumer happiness factors : Lifestyle, income, ageing, 24th Sept 2007 - Euromonitor Database 41. New Global Report : How Vulnerable is Luxury to a Cold Climate ? 19th Dec 2008, Euromonitor Database

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