MARKETING SPECIAL...How They Spend: Big vs Small Cities

How They Spend: Big vs Small Cities

It is not just how you are wired that defines your spending habits; where you live has a big impact, too. Small towners and metro dwellers may not buy different things, but they do buy them differently. 

ET on Sunday tracks consumers from both city types to identify the traits that make one a lone shopper and the other set a group shopper

BIG CITY CONSUMERS
1 Plastic Savvy
• Use credit and debit cards often — no need to carry wads of cash
• Credit cards allow deferred payments which helps manage monthly budgets
2 Click to Pay
• Go online to book travel and movie tickets
• Often pay utility bills online. Saved from long queues
• Hooked to buying on e-commerce websites, most of the time relatively inexpensive products like books, CDs, mobile phones and computer accessories
3 Two Play House
• Irrespective of working status, married women share household responsibilities with husbands. Think getting milk and groceries, daily shopping, paying bills and school fees, etc

4 Glutton for Help
• Sign up for home delivery of products or collection of regular payments
• Enlist non-working family members such as elders to help with chores like shopping and paying bills
• Rely on friends and neighbours whenever possible
5 Value-Deal Junkies
• Negotiate on pricing at traditional stores like fruit and vegetable vendors, kirana shops
• Hunt for bargains on the plastic — discounts or offers on cards, card tie-ups with merchants
• Accumulate reward points, for instance, points from swiping credit cards at fuel stations
• Track frequent flyer points to be redeemed later

SMALL CITY SHOPPERS
1 Cash Friendly
• Not aware of all the features and benefits of debit and credit cards
• Comfortable with traditional methods of payment such as cash and cheques
• Markets and retailers not yet evolved enough to adopt new payment modes
2 Nervous about Net
• Don’t buy travel and movie tickets online
• Not kicked about e-commerce due to lack of knowledge and lower access to credit and debit cards (required for online payments)
3 Men Do More
• Women involved in close-to-home and small-value purchases
• Married women, irrespective of working status, depend on men for shopping

4 Do-it-Yourself
• Shopping considered an ‘outing’ for the family as the city offers fewer opportunities or reasons for the family to go out together
• Time and distance are no worry for commuting within the city
• Ensure bargains and “good prices” by personal visit to stores

5 Value-Spend, Only
• Most often used bargain tool: “I have only 100, so I can’t pay 110” to bag a discounted price
• Prefer bargain-friendly shops and markets
• Credit via card payments, reward points, still not in vogue.

 
WHAT CONSUMERS LIKE…
CASH
1. Helps get rid of black money

 2. Payments can be done at a convenience

 3. Deterrent for over spending
DEBIT CARDS
1. Looks stylish

2. Automatic record in bank statements and ATM slips

3. Eliminates need to carry small change
CREDIT CARDS
1. Allows to defer payments

2. Can be given to someone else for shopping

3. Can be blocked if stolen

What’s Common Consumers of both big and small cities want to buy the following products themselves or with a family member’s assistance
• Fresh groceries
• Monthly ration

• Large-value items like durables, especially first purchases

…AND WHAT THEY DON’T CASH
 1. Confusion with currency notes, loose change

2. Problem of counterfeits

3. Unsafe to carry around
DEBIT CARDS
1. Commission pushes up cost

2. Easy misuse deters sharing

3. Money deducted directly from bank account
CREDIT CARDS
1. Temptation to splurge

 2. Heavy penalties

3. All information and features not clear

 Source: Consulting Team at Technopak; www.technopak.com 

:: Kamya Jaiswal ET120212