Consumer perception of product stimuli: an investigation into Indian consumer psychology and its implications for NPD process and strategy

Sun, Q; Sridhar, N; O'Brien, M

Abstract

Consumer perception of product value is central to all stages of the process of bringing products to
markets, from design and manufacture to distribution and retail. As a result, product strategy needs to
respect customer needs in order to achieve or retain competitive advantage in providing innovative and
differentiated products. Increasingly however, markets are becoming saturated with homogenous product
offerings with little differentiation in terms of technology or function. In many mature markets the
process of consumer decision making is no longer governed by intrinsic factors such as pricing or
performance; instead it is extrinsic factors such as brand, service and ethical behaviour that is becoming
increasingly influential to consumer product choices.
As one of the most important emerging markets, India has attracted a large number of international brands.
The Dramatic changes within the economy have resulted in many new opportunities. There has been a
significant rise in consumer disposable income, a development of modern urban lifestyles, and an
increase in consumer awareness. These changes have affected buying behaviour and the consumer
decision making process. However, relatively little is still known about how Indian consumers perceive
products.
This paper examines the visual associations and the correlation between various product stimuli in the
decision making process of Indian consumers from the perspective of consumer cognitive psychology and
psychoanalysis.
Based on an original survey of 128 respondents, the paper postulates that the stimulus of ‘visual
aesthetics’ can have a ‘collective sub-conscious’ psychological association and therefore can be analysed
and considered within the chosen demographic group. The data also suggests that ‘visual aesthetics’ is
now as equally important to the consumer decision making process in India as the traditional elements of
price and functionality. However, the study suggests that intrinsic factors are still far more important than
extrinsic ones in the Indian consumer decision making process
The implications to design strategy and the new product development process in India are addressed. The
study concludes that (i) a psychological approach towards understanding Indian consumer associations is
both possible and can act as an important tool in determining consumer needs. (ii) ‘Visual Aesthetics’ is
one of the key factors in the decision making process of the Indian consumer, however, ‘extrinsic’ factors
are still not as significant a contributor as ‘intrinsic’ factors such as product visuals and features.

Citation

Sun, Q., Sridhar, N., & O'Brien, M. (2009, April). Consumer perception of product stimuli: an investigation into Indian consumer psychology and its implications for NPD process and strategy. Presented at D2B2 - Tsinghua International Design Management Symposium, Beijing

• Presentation Conference Type: Other
• Conference Name: D2B2 - Tsinghua International Design Management Symposium
• Conference Location: Beijing
• Start Date: Apr 23, 2009
• End Date: Apr 26, 2009
• Publication Date: Apr 1, 2009
• Deposit Date: Dec 7, 2010
• Publicly Available Date: Apr 5, 2016
• Additional Information: Event Type : Conference