A Study of Indian High-Income and Low-Income Consumers Behavior Regarding Local Brand Building, Differentiation, and Revenue Management

Abstract

This study examines the distinct consumer behavior patterns among India's affluent and low-income segments, focusing on implications for local brand building, differentiation strategies, and revenue management. Using a mixed-methods approach involving surveys, in-depth interviews, and secondary data analysis, the research reveals fundamental differences in brand perceptions, price sensitivity, information processing, and purchase decision-making between these segments. The findings indicate that affluent Indian consumers demonstrate greater brand consciousness, preference for international labels, and willingness to pay premium prices for personalized experiences and status symbolism. In contrast, low-income segments prioritize functional benefits, price-value relationships, and exhibit higher price sensitivity, though they show remarkable brand loyalty when trust is established. The study contributes to marketing theory by developing a segmented approach to brand architecture and revenue management strategies for the complex Indian market, offering practical insights for marketers aiming to leverage local cultural capital while implementing differential pricing, distribution, and communication strategies. These findings address a significant gap in literature regarding systematic analysis of cross-segmental consumer behavior in emerging economies like India.