Globalization does lead to change in consumer behavior

Abstract

PurposeThe purpose of this paper is to empirically substantiate if the forces of globalization are impacting consumer culture and behavioral traits in a developing country (India).Design/methodology/approachFive hypotheses had been constructed to address the gaps in the literature with respect to the influence of globalization on prevalent consumer culture of a developing nation. Predisposition towards foreign brand among Indian consumers was taken as a proxy for global flows and its influence was studied on the existing materialistic values among the Indian consumers. The study covered a sample size of 557 respondents from five major cities in India. The raw data were collected with the help of structured questionnaire and analysis was done by using various relevant statistical techniques.FindingsThe results showed that predisposition towards foreign brands had a significant impact on materialistic values among the Indian consumers. The younger Indian consumers had significantly higher materialistic values than the older age groups. Lower income groups have showed significantly greater materialistic values than the higher income groups. Significant positive relationships were shown between materialistic values and the buyer behavior traits studied.Practical implicationsThe managers should concentrate on the younger consumers, as they are the ones who are showing a definitive change in their buying behavior and increasing materialistic values. Alternatively, managers could modify their products to suit the requirements of older consumers.Originality/valueThe study empirically showed that Indian consumers' predisposition towards foreign brands and their materialistic values had significant positive correlation among them. Also, predisposition towards foreign brands along with demographical variables like age and gender significantly impact the materialistic values prevalent among Indian consumers.

Market Sustainability: A Globalization and Consumer Culture Perspective in the Chinese Retail Market

“…An increase in living standard has modernized the traditional business processes, and attention has been diverted to retailing [8,9]. Culture is a crucial topic, since the emergence of globalization in the 21st century [10]. Adhering to individual cultural values (ICVs) profoundly influences the preferences and choices of a person when responding to marketing efforts [11].…”

“…A consumer's local culture generally resists foreign products in many societies. In the 21st century, despite an increase in urbanization, and decomposition of the traditional joint family system, the forces of globalization are influencing people's spending power [10].…”

“…Gupta [10] empirically investigated the impact of globalization on changing MVs in Indian consumers. In that study, consumers' predisposition toward foreign brands and their MVs were found to be significantly positively correlated.…”

Assessing the Relationship Between Materialism and Conspicuous Consumption: Validation in the Indian Context

“…They found the strong significant correlation between regional cultural adherence and desire for purchasing materialistic goods. Another study was conducted to analyse the inclination of materialistic values among Indian consumers and the study posits that materialistic values were highest for lower-middle-class income segment visà-vis the middle class and upper-middle-class segments (Gupta, 2011).…”

“…Women in India have evolved both professionally and as new decision makers owing to their financial independence (ASSOCHAM, 2016). Studies also indicate the increasing influence of materialism in India (Chaudhuri & Haldar, 2005;Gupta, 2011;Manchanda, Abidi, & Mishra, 2015;Chacko & Ramanathan, 2015). In this context, the present study attempts to measure the relationship between materialism and conspicuousness among women with regard to their newly found financial independence.…”