Abstract:

Downturn in Rupee and its affect on Indian consumer behaviour

Money is not organic creature but its value keeps changing with the society and its economic

condition. One rupee in 1947 is not the same as one rupee today, both in terms of appearance

and purchasing power.

The source of income for any middle & Lower class people are depend on their monthly

Salary, Small Business, or their daily earning but due to economic crisis middle class

people’s requirement are rapidly declining and lower class people are now come to the stage

of starvation.

In this paper we want to show what are the strategies adopted by marketers against the

downturn in rupees and how consumer are affected by this crisis and what will be future

trend in their behaviour.

As we know that there is the large segment of middle and lower class people so according to

current status of the economy the main objective of marketers is to measure the impact of

consumer behaviour in business. The Indian middle class, target consumer for many

companies, is expected to swell up to 267 million people in the next five years, up 67% from

the current levels, thus providing a great market opportunity for firms. But this situation

creates a dilemma among marketers that either they have to focus on price of product and

services so that customers remain constant with their brand or to find out any substitute for it.

This situation evolves demand of the optional product and a businessman must think to take

the advantage of the opportunities in the market place.

Now the market has rapidly decline due to inflation so the future trends of consumer will to

buy less with a given amount of money. For example when there is any sale in any retail

store, customers prefer to buy more than actually required means a middle or lower income

people want to grab the opportunity of it and keep it as a stock. This arise the relationship

between price and purchasing power. Therefore, these changes require proper solution, which

for consumer needs and public interest while achieving the business aim of profit-making.

Keywords: downturn in Rupee, Indian Consumer Behaviour, marketing strategies, future

trends.

Reference:

http://businesstoday.intoday.in/story/rupee-dollar-value-drop-factors-for-fall/1/21881.html.

http://custom.cengage.com/static_content/OLC/0324833326/data/transcripts/8492.pdf

http://articles.economictimes.indiatimes.com/2011-02-06/news/28424975_1_middle-class-

households-applied-economic-research

Students Name:

RAHUL DEV

ANJU KUMARI

XAVIER INSTITUTE OF MANAGEMENT, JABALPUR