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Good value for money influences Indians: Survey

Posted by retailigence on January 2, 2009

New Delhi, January :: Most of the Indian consumers look for good value for money with price and promotions influencing the choice of a grocery shop, says a new survey.

In an online survey conducted by global information and media firm Nielsen Company, about 91 per cent of Indians voted for Good Value for Money as the important factor, while selecting a grocery shop. Price, promotions and perceptions worked as the most decisive factor in helping consumers arrive at a perception of value.

To a certain extent, environmental concerns also played a role in influencing a consumers’ decision in choosing a grocery shop. Among those surveyed, 39 per cent Indians rated a store higher if it offered recyclable bags and packaging for their products. While, 79 per cent of Indians associated a store that offered products at a cheaper rate than competitors and a store, which has regular promotions and price discounts, as good value for money.

India is a price sensitive country and quiet likely good bargains and promotions catch their fancy. This trend is seen across all classes of consumers. Here prices drive sales the report said. For Indians getting valued brands for a lesser price enhances their shopping experience and is a motivating factor for them to be more loyal to the stores, Rajshree Dave, Director, Client Solutions, The Nielsen Company, India said in a statement.

The other important attributes which guides an Indian consumers, while choosing a grocery store, is better selection of high quality brands and products (79 per cent) followed by location (54 per cent) and available parking space (54 per cent), said the report. In comparison, about 85 per cent of global consumers rank good value for money as the most important consideration while choosing a grocery store. It outperformed other considerations like product range, location and environmental friendliness, among others.

Interestingly, about 64 per cent Indians are found to research and compare prices to decide which store offers value for money and around 58 per cent of the people surveyed were influenced by word of mouth in deciding the shop.

Coming from a closely-knit family Indian consumers value opinions of their friends and family, hence word-of-mouth information remains an important factor while deciding on a store, Dave added.

Nielsen surveyed 26,486 Internet users in 47 markets including Europe, Asia Pacific and the Middle East in mid 2007, on the factors that influenced their choice of grocery store.

Sources:- The Financial Express


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