The hype behind the online and digital advertising options might be misplaced in India, according to an AC Nielsen survey. While the Internet and new media might be grabbing eyeballs across the world, print and television advertising continues to influence the purchase decisions of consumers here.
In contrast, 'searching the internet' was the most popular decision-influence globally. In the US, previous experience with a brand is a major factor, while window shopping is hot in Europe.
The influence of conventional media is even more dominating for Indian consumers in categories such as holidays, jewellery, watches, fashion and for exploring personal finance options.
In the online survey that was conducted in 41 countries, AC Nielsen asked consumers what helped them to arrive at their final decision while purchasing a variety of products.
For Indian consumers, word of mouth is also a big influencer, especially while investing in big-ticket items like cars and choosing financial institutions. And they were more than willing to accept a brand if it is endorsed by their favourite superstar or recommended by their close associates.
"Unlike the west, Indian consumers belong to a very closely-knit society where people get hugely influenced by their peers, relatives and local celebrities. Marketers should ensure that they keep their existing customers fully satisfied who in turn will act as the brand's ambassadors," said Sarang Panchal, executive director, AC Nielsen South Asia.
However, in the case of buying electronic gadgets like mobile phones and MP3 players, conventional advertising does not play a major role in influencing purchase decisions in India. In this case, brand reputation acts as an important influencing factor.
"Once again it reminds marketers that market segmentation is important and one strategy doesn't fit all," added Panchal.
In the US, "previous experience" was the strongest influencer overall, particularly when it came to buying cars, mobile phones, loans and choosing banks. But word-of-mouth was a priority when buying weight loss products and mobile phones.
"This again differentiates American consumers most distinctly from those in the Asia Pacific, where prior experience is not as important for most purchase decisions," said Panchal.
"The purchase influencers reflect the development of markets and the history a consumer may have had with a particular brand or service provider. In less developed markets, there may be little or no previous experience, so previous experience becomes redundant as an influencer," he added.
Window shopping was the most important decision influencer when it came to fashion, in particular for Europeans, with 56 per cent of respondents opting for the good old-fashioned retail therapy compared with a global average of 49 per cent. "People rely strongly on visual presentation when selecting fashion and personal accessories," said Panchal.
