An expanded price/brand effect model - A demonstration of heterogeneity inglobal consumption

In this study, the homogeneity versus heterogeneity of global consumption i s tested in a cross-cultural price/brand effect model. Middle-class consume rs in two countries are compared: the USA, an established consumer society, and India, a recently developing consumer society. Focus groups demonstrat e the tremendous importance of brands in India, but survey data suggest tha t, compared to Americans, Indians actually have a lower perception of brand quality. They need to be convinced of standardized quality. Indians are, i n addition, more positive than Americans about economizing. This implies th at they feel guilty about consumption. These differences between Americans and Indians influence how price and brand affect their different purchase d ecisions: the Indian is a much tougher consumer to whom to sell. The result s suggest that consumption, while it is becoming global, is still heterogen eous. It is being interpreted and implemented differently in different cult ures.