CONSUMER BEHAVIOR

Consumer Behavior is a study of the actual consumer purchases that reveals what consumers
buy, where they buy, how they buy and how much they buy. The term consumer behavior is
defined as the behavior that consumer display in searching for, purchasing using, evaluating and
disposing of products and services that they expect will satisfy their needs. A whole variety of
factors, both internal and external influence the whys of consumer behavior. The central question
for marketers is:
HOW DO CONSUMERS RESPOND TO VARIOUS MARKETING EFFORTS THE
COMPANY MIGHT USE??
The buying behavior of final consumers is of interest to all marketers. Consumer Behavior is a
net result of interplaying of a number of factors: Cultural, Social, Personal & Psychological.
Consumers today are very different from those in the past - they have more information, higher
expectation, more choices and better products at lower prices available due to globalization,
deregulation of markets and quality movements.
Before we embark on our journey to understand the dynamics of the Pakistani market, a typical
Pakistani consumer and the challenges faced by Pakistani marketers, lets understand the Asian
Consumer.
The Asian Consumer:
Asia's emerging economies are leading the world out of recession, and the region's consumers
are taking the baton from their overextended counterparts in developed countries. Asia won't
replace the United States as the lead engine of global growth--at least not for five to ten years. At
the end of 2008, the GDP of the whole of Asia was just under $14 trillion, roughly the same as
the GDP of the United States alone. Private consumption accounted for only about half of Asia's
GDP, compared with 72 percent in the United States. Asia's three billion people spent less than
$7 trillion; America's 300 million, upward of $10 trillion. Yet some observers think private
consumption in the region's emerging economies could grow enough, as early as this year, to
offset falling consumption in the United States and the European Union. Even under dour
assumptions about the prospects for Asian economies, the region is likely to contribute more than
half of all growth in global consumption by 2020. Optimists even argue that China's share of
global GDP -- 40 percent -- will dwarf that of the United States (14 percent) and the European
Union (5 percent) in 20401.

1 Robert Fogel. (2010). $123,000,000,000,000* - *Chinas estimated economy by the year 2040. Be warned.
Foreign Policy Feature. Retrieved from http://www.foreignpolicy.com/articles/2010/01/04/123000000000000.

To be effective in Asia, consumer companies must think regionally but sell locally: they do better
by focusing on urban clusters than by conceiving of an entire country as one market. In
developed and emerging Asia alike, cities are by far the dominant nodes of mass consumption,
and their importance will surely grow. A great shift is also being continuously made from the
rural to the urban localities. After pouring into the cities, the migrants will assume new social
identities. They will be open to new foods, fashions, forms of entertainment, and ways of living,
but they will be fickle customers unfamiliar with established brands. As they prosper, their
choices will become more diverse.
Long gone are the days when global companies could charge Asians a premium to buy products
designed for consumers in developed markets. It's not enough even to tweak existing product
lines for Asian sensibilities. Success now requires the ability not only to understand regional and
local tastes and preferences but also to design products and services in Asia.
South Korea's LG Electronics struggled when it came to India in the 1990s until a change in
foreign-investment rules enabled the company to invest in local design and manufacturing
facilities. Noting, for example, that many Indians use their TVs to listen to music, LG introduced
new models with better speakers and, to keep prices competitive, less costly displays. The
company marketed many other original products, including appliances with programming menus
in local languages, refrigerators with brighter colors and smaller freezers, large washing
machines for India's big families, and microwaves with one-touch "Indian menu" functions.
Those innovations were possible because LG invested heavily in local R&D and staffed its
operations with thousands of top-notch Indian designers and engineers. LG's product innovation
center in Bangalore is the company's largest outside South Korea. The company is India's market
leader in TVs, refrigerators, air conditioners, and washing machines.
The wants of the Asian consumers are as complex as any other developed economy. According to
a survey conducted by Nielsen during the second quarter of 2010, 47% of Vietnamese consumers
want to spend their discretionary income on new technology. Apple's latest iPhone completely
sold out when it was officially launched in Vietnam. According to some local observers, the
popularity of Apple products is partly due to the fact that the logo is recognizable from a
distance, immediately setting its possessor apart as a member of the country's elite.2
Penetration rate for traditional and online media are lower in developing Asia than in developed
markets, so efforts to influence purchase decisions are more complex. Consumer companies must
be adept at shaping the consumers view of brands across a number of channels and through a
variety of media not only TV, Radio, Print and the Internet, but also events, outdoor ads,
mobile messaging, in-store promotions, and educational campaigns. This shift to multichannel

2 Euromonitor Article: Not settling for second best: Emerging market consumers going gaga for the
latest gadgets. Published in 2010.

retailing and sales management is creating a demand for new approaches to Marketing and Brand
Building.3

3 Guild, Todd. Think Regionally, Act Locally: Four Steps to Reaching the Asian Consumer. McKinsey
Quarterly, 00475394, 2009, Issue 4.

The Pakistani Population Dynamics:

Consumer Behavior is affected by many socio-cultural factors like social class, demographics,
personality and beliefs.
Pakistan ranks 6th in the worlds most populated countries, with a population growth rate of
approx. 1.56%. According to July 2013 estimates, the current population of Pakistan is equal to
193,238,8684. The projection results show that the population of Pakistan will be growing
significantly in the next five decades i.e. from 174 million in 2010 to 281 million in 2060.
Specific details of the population are shown below:

36%
Rural

Urban
64%

Rural-Urban Split:

4 CIA World Fact book

Karachi; 21%
Rest of urban; 43%
Lahore; 12%
Rwp-isb; 7%
Top 7 other than metros; 17%

More than one third of

Pakistans population resides in urban areas. The rate of urbanization is 3.1% according to 201015 estimates.

Metros which include Karachi, Lahore and Islamabad (KLI) are the largest cities and are easier
to target both in terms of advertising and distribution.

Age structure (2013 est.)

40%
30%
20%

22%

10%
0%

35%

34%

0 to 14

Socio-Economic Classes:

15 to 24

25 to 54

5%

55 to 64

4%

65 and above

The class division in Pakistan is dynamically changing, with more numbers of the population
having access to education and thus better incomes, yet there still exists a majority of the
population that belongs to the aspiring class5.

5 Durr-e-Nayab. (2011). Estimating the Middle Class in Pakistan. Pakistan Institute of Development
Economics, Working Papers.

Population break-up by gender is as follows:

Population

51%

49%

Female
Male

Literacy level:

People aged 15 and over who can read and write are said to be literate. Literacy rate of Pakistan
is growing at a relatively slow pace; however, it has now reached 57%. Male and female literacy
rate is 69% and 45% respectively. According to a 2010 Economic Survey, only 2.1% of the GDP
is spent on education6.
Pakistan has a remarkably young age structure. The young age structure has been persistent in
Pakistan for the last five decades. The share of school age population (0-14 years old) was on the
average 40 per cent from 1950s to 2000 and estimated at 36 per cent (61 million) in 20107.

6 Pakistan education spending & global rankings, 2010, Retrieved from

http://www.interface.edu.pk/students/June-10/Pakistan-education-spending-global-rankings.asp

The share of working-age population (15-64 years old) has been growing from 54 per cent in the
1950s to 61 per cent in 2010. Currently, the South Asian region along with Sub-Saharan Africa is
the only region in the world with a young age structure and significant population growth. Within
South Asia, Pakistan stands out with the highest population growth rate and very young age
structure.
In summary, a large chunk of the population in Pakistan is youth, with a median age of 22.2
years (according to 2013 estimates) a great opportunity for marketers.

Divided we Stand: Challenges faced by Marketers

Pakistan is a strong market with sizeable opportunities. (Consumers Behavior Toward
Marketing, By Faraz Siddiqui, May 22 28, 2000). Nationally Pakistan comprises of a very
diverse set of individuals hailing from different religious, social, cultural, lingual and regional
backgrounds. While nationally they represent one culture but at a micro level they have their
own sub-cultures with very unique and distinctive characteristics. Following is a description of
the various ethnic groups present in Pakistan.

Ethnic Groups

%age of population

Punjabi

44.68

Pashtun (Pathan)

15.42%

Sindhi

14.1%

Siraiki

8.38%

Muhajir

7.57%

Balochi

3.57%

7 Muhammad Asif Wazir. 2013. Population Dynamics in Pakistan: Past, Present and Future. Sustainable
Development Policy Institute (SDPI).

Others

6.28%

The following table gives details of the various regional languages spoken in Pakistan.

Regional Languages

%age of population

Punjabi

48%

Sindhi

12%

Siraiki (a Punjabi variant)

10%

Urdu

8%

Pashtu

8%

Balochi

3%

Hindko

2%

Brahui

1%

Others

8%

It is interesting to note that Urdu the official language of the country is spoken by a mere 8%
whereas English the language of the Pakistani elite and most government ministries is spoken
by very few. It shares the 8% under the others category mentioned in the table above.
These realities of Pakistan pose a great challenge for the marketers of mass brands. Audiences
stand fragmented, making mass appeal products and mass communications less viable.
Following are some of the dimensions along which the Pakistani population stands divided:

Rural-Urban divide

Big Town - Small Town divide

Rich Poor divide

Male Female divide

Realities across these groups are contrasting, interesting and challenging to gauge and respond
to. (Process of Socio- Economic Change in Pakistan, By: Arif Hasan, October 2004, Paper for a
conference at John Hopkins University at the School of Advanced International Studies (SAIS),
Washington DC, USA.)
Big Towns vs. Small Towns
Some of the big towns/cities of the country include Karachi, Lahore, Hyderabad, Multan,
Faisalabad and Rawalpindi. These cities not only show higher levels of literacy but also a rapidly
decreasing gap between male and female literacy. Educated women are visible in work places
and more recently in politics too. Satellite and cable television is common and entertainment is
finding a new meaning. Fast food international chain outlets exist in all middle and lower middle
income areas.
Cyber cafes and beauty parlours for women have sprung up both in middle and lower income
areas. ISO 9,000 requirement for exporting industrially produced items has improved working
conditions in formal sector factories, encouraging further employment.
Nuclear families have increased in contrast to the traditional joint family system. As the female
population is joining the workforce, families today have more time compressed lifestyles. This
gets translated into demand for solutions that deliver value alongside convenience; hence, ready
to cook meals, recipe masalas such as Shan, National, Habib, Knorr, etc. are finding space in
kitchens of the urban households. Furthermore, home delivery services are increasingly being
added by not just the foreign and local food chains but also by grocery retailers and car
maintenance services.
As the disposable income increases, more boutiques for both women and men are increasing in
number. Not only are the international brands like Nike, Levis, Benetton, etc., are in demand but
a number of local brands such as StoneAge, Outfitters, Le Sac, Khaadi, Bonanza, etc.; are
emerging in the marketplace.
As the number of individuals stepping out of home increases, there is also increased demand of
cars, leading to the government feeling the need to upgrade the infrastructure in terms of better
and wider roads to accommodate the influx.

Time compressed lifestyles means there are multiple claims on each individuals time. Hence
shopping that was previously seen as a highly rated and much liked indulgence is also changing.
This however is more true for the higher income households where convenience of shopping is
rated high in deciding where to buy essentials from. All of this has given rise to increased
commercial activity in all major cities of the country. Posh localities are now housing a number
of modern format stores and malls that provide ultimate convenience of shopping. Middle to low
income localities are however, still following the conventional forms of shopping areas where
price is an important factor while making purchase decisions. This is where consumers like to
compare the various options available before they make up their mind about any brand.
Keeping these urban developments in mind, a number of organizations are revisiting their
business model. The effort is to empower customers by explaining the offering to them, to
personalize offerings (Nippon Paints co-creating value) and to abandon artificial boundaries
and offer convenience based solutions. Examples include Habib Bank Car
Lease+trakker+insurance+EVAC road side assistance, PSO+Dunkin+ATM+Shop stop.
In times of intense competition, marketers not only need to provide convenient solutions that fit
the customers needs and deliver higher value but also innovate each time they design solutions.
Imitating a successful business model has been the practice of a number of Pakistani
manufacturers; such practices only produce short term results and long term losses.
While the consumers in big towns of Pakistan are at par with those in the developed nations,
those present in the small towns cannot be ignored, however, their reality is very different from
the all glamorous top ten towns. Little investment in industry and human resource development
is made and most planning is unregulated. There is social fragmentation and religious extremism
has replaced traditional tolerance of diversity.
There is essentially a lack of city ownership. Women from small towns receive education and
pursue their professions as doctors, teachers, employees in government and the corporate sector,
but in the larger cities and not in their own towns. There is an increasing number of young
individuals migrating from the small to the big cities, as a result the towns become politically
weak and socially backward.
Rich-poor divide in urban areas
Like anywhere in the world, there is physical divide between the rich and the poor. Poor live in
un-serviced high density settlements increasingly on the outskirts of the city while the affluent
class lives in well-developed and serviced localities. The poor localities are sometimes deprived
of even clean drinking water and basic sanitation. Such areas lack all the basic amenities of life
and hence the inhabitants suffer from a number of health problems. The family size of such
households is large with more children. Very basic durables are owned such as 14 inch TV sets,

bicycles, sewing machines, etc. Consumption of basic packaged items, such as ghee, soap, and
tea is prevalent. Bicycle is a means of transport used by 3 out of 10 households. Public transport
is the means of commuting for members of the remaining households.
The two classes are also socially divided. Most of the major investments in recreation and
entertainment have been made through the private sector for the higher income groups and are
therefore unaffordable to lower income groups, cinemas being an exception. In the recent past,
the City District Government of Karachi has done substantial work to develop the city. As a
result, a number of parks have come up, the up-keep and maintenance of which is a challenge for
the government.
The chief earner in a poor family is barely educated (5-7 years of education) and most
housewives are illiterate. Those who are interested in getting their children educated heavily rely
on the Urdu medium government schools. The average time spent in school is approximately 7
years. In contrast, children from the affluent families not only go to private English medium
schools but also pursue their higher education in renowned universities of the world. Such
difference in exposure and knowledge directly gets translated into personal characteristics which
in turn get translated into loyalty status. It is interesting to note that education and social class
has a role to play in an individuals loyalty towards a brand and a store/retail outlet .
Consumers with lower education are more loyal to stores whereas consumers with higher
education are more loyal to brands. (Brand Loyalty, Store Loyalty and Demographic Variables: A
relational Study, By Dr Zeenat Ismail, Business Review Vol.3, No. 2, July-Dec 2008)
Male - Female Divide
Pakistan is a fairly male dominated society whereby females play a limited role in decision
making. Most important decisions involving large sums of money are made by the man of the
house. Men being the principal bread earners rarely consult women. This is truer for the orthodox
Pakistani households; in the urban setting however, females are increasingly sharing the decision
making role with their male counterparts. Irrespective of the rural-urban difference, most
decisions concerning the household consumption are made by the housewife. She is the primary
care taker of her family and therefore looks after its health, likes and dislikes given her economic
limitations.
Since women are mostly involved with the household chores, they have limited time available
for leisure activities. Men enjoy greater social freedom and therefore have more options available
to recreation. The cultural norms of the society do not approve of a female staying out of the
house with her friends late at night. However, family outings are a norm with females.
However, the trend is changing especially in the urban localities where women step out to dine
with their friends in restaurants, go for cinema shows, concerts, etc. Majority of the women in
Pakistan are still confined to their homes and spend a lot of their free time watching soaps on TV,
listening to music, or talking on the phone. (Jazz Ladies First)

Implication for the marketer

Pakistan is a heterogeneous market where consumers have different needs, wants and demand
patterns. There is variable consumer behavior and one aspect of this variance is the difference in
public and private opinions and behavior. One of the reasons why a TV program Begum
Nawazish Ali became very popular was because it highlighted a number of issues that are
considered inappropriate for public discussions. Pakistan is a collectivist society where norms
are strictly upheld. Hence, a number of people maintain digital personalities that allow them to
be what they like with anonymity.
Not only do these trends need to be carefully studied and monitored but also kept in mind while
designing and implementing marketing strategies vis-a-vis product positioning, communication
strategy, media strategy, brand activation strategy, etc. Since there are multiple regional
languages it is critical to decide which would be the best bet if one is marketing a mass brand.
Certain communication may have one meaning for one SEC and totally different for another; low
price of a premium brand may be perceived as a drop in quality by higher income groups
whereas as an incentive to try out by the lower income groups.
Extended family system is a norm with most households in Pakistan, allowing limited personal
space to individuals. Most activities are taken up in groups. As previously mentioned societal and
family traditions are strictly upheld. Youngsters have limited freedom to question the family
traditions and if done so then their education is majorly questioned.

The Modern/Urban Pakistani Consumer:

There are major advancements underway in the communication sector of Pakistan. According to
a 2013 estimate, there are 129.6 million mobile users, up from a mere 300,000 in 2000. At the
same time, there has been an increase in the number of radio and TV channels serving the
population. There are now 30 million internet users in Pakistan, 15 million of whom browse the
web using their mobile phone, states a report by mobile survey company Ansr.io.

Internet user statistics

Tribune, 2013)

(source: Express

Terming
Pakistan
the fifth largest
mobile
phone
market in Asia, the
report cited 10%
smartphone
penetration,
although 80% of
phones were found
to be costing less
than $100 (2013
estimates)8.
Reportedly, there are three million bloggers in Pakistan. With over eight million Pakistani users
on Facebook and 1.4 million on YouTube, Pakistan has an average social media growth rate of
7% annually (2013 estimates). The internet and mobile penetration rates in the country are
23.42% and 60.4% respectively. Considering these statistics, technology and ultimately, social
media can shape the future of the country.

8 30mn internet users in Pakistan, half on mobile: Report, published in The Express Tribune on June
24, 2013. Retrieved from http://tribune.com.pk/story/567649/30m-internet-users-in-pakistan-half-onmobile-report/

Facebook
has particularly
captured the interest of young Pakistanis. However, it should be noticed that Facebooks
influence and popularity is not limited to Pakistan. The website allows young Pakistanis to
connect with young people from all across the world as it is the worlds most popular social
networking website.
Given all the changes occurring in the environment, a Pakistani consumer from the urban setting
may be described as young, educated, informed and tech savvy. He is quality conscious but with
fickle loyalties. This modern customer is concerned about the environment and therefore
demands greener products and better social responsibility from the corporates.
The rise in the number of cinema houses, clubs, restaurants etc. prove that the new Pakistani
consumer is looking for recreational activities and prefers quality of life. He is becoming
increasingly health and appearance conscious and hence we see a number of cooking oils
claiming that they deliver better/higher health value in comparison to competitors. Similarly
gyms, diet food, beauty salons, designer wear, hair transplanting services, dermatologists, etc. are
increasingly becoming popular.
While all of the above is true, it is interesting to note that the behavior of consumers is an
evolving process. A typical 15 year old would be more care-free, self-indulgent and adventurous.
When this same individual grows up, gets married and makes a parent himself, his outlook
completely changes. He is now more responsible, value-conscious and socially accountable. He
is also more risk averse. As an individual progresses from one phase of life to the next, there is
change observed in his personality and hence behavior; his likes and dislikes change and his
reasons for preferring A over B also changes. This change is of interest to the marketers.
Consumer Behavior

Consumer Multimedia Index (CMi), a study carried out by MEMRB Pakistan profiles the urban
Pakistani population into seven psychographic segments. These are:

Fantasist

Star Plused

Traditionalists

Off road travelers

Sci-Fis

Shopping at odds and ends

Uncertainty, confirmation through external
attributes
High salary a measurement of success
Fashion and prestige
Conventionalists, collectors
Enjoyment and convenience
Stay at home moms
Love Indian dramas

Celebrate events
Shopaholics
Attention seekers in gatherings
Non technology savvy/conventionalists
Satisfied and safe
Religion and spiritual issues
Want to change life as little as possible
Non-urban
Digitally cautious
Order and planning
Social out cast
Indecisive
Dont like to celebrate events
Dont mingle with people
Hard to convince or influence
Un-opinionated
Young and agile
High end of society
Curiosity, knowledge driven, forthcoming
Ready to brave challenge
Fast moving night birds
Heavy media consumers

Necessitous

Householders

Have nots, yet contented

Mostly illiterate and less educated
Low tier of society
Less exposed to media
Impartial to information
Deeply domestic
Gossipers, fashion critique
Interested in commercials
Fond of ready to cook meals and recipes
Positives towards direct marketing means

According to CMi, popular food and non-food categories in Pakistan, are as follows:
Food:

Tea has the highest penetration with 92% followed by carbonated soft drinks.
Ghee is among top 5 categories with highest penetration leaving cooking oil behind.
Urban Pakistanis are really fond of munching as ice cream, salty snacks and packed
juices enjoy almost 60% penetration.

Non-food:

Personal cleansing soaps top the list with 99% penetration in urban Pakistan followed
by laundry detergents with 98% penetration.
7 out of 10 Pakistanis use pain killers regularly.
Only 1 out of 10 people have a basic bank account.

Factors affecting Purchase Intention in Pakistan

Some of the common factors influencing purchase decision of Pakistani consumers are as
follows:
1. Size of the retail outlet
Merchandising, self-service, point of purchase displays, placement of product on shelves,
discount offers and product assortment are all variable across different types of outlets.
(Factors influencing customers impulse buying behavior in Pakistan by Syed Muntazir
Mehdi and Amir Feroz Shamsi, MAJU Karachi)
Those that follow the modern format provide a complete shopping experience whereby
the customer moves around, registers communication made at the POP, compares options
and makes a decision. As against this, over-the-counter stores have the retailer play a

major influencing role on the consumers purchase intention. He is likely to push a

product that gives him higher margins. It is important for marketers to recognize retail as
a major touch point, understand how customers make brand decisions and accordingly
market their products at the POP. According to a global estimate 40% of the customers
change their mind at the retail outlet. Supermarkets are being increasingly recognized as
an emerging medium where a brand must be reinforced/reminded to the target customers.
2. Country of origin image (COO)
A second factor affecting consumers perception toward a brand is its country of origin of
the product, which is typically operationalized or communicated through the phrase
made in ________ is an extrinsic product cue an intangible product attribute that is
distinct from a physical product characteristic or intrinsic attribute. A country-of-origin
cue is similar to price, brand name, or warranty in that none of these directly bear on
product performance.
It may be argued that with globalization taking effect, COO has limited impact on
consumer behavior. While it may be true, realizing that Pakistan is still a developing
market, consumers base a number of their decisions on perceptions rather than reality.
That being a fact, one is likely to hear a Pakistani customer complain about the locally
assembled Honda Civic or Toyota Corolla while comparing with those found in Dubai.
Although strict quality measures are implemented, the perception is nonetheless deeprooted. Most people are likely to evoke differing impressions of mens suit made in Italy
and Spain or of VCRs made in Japan and Malaysia. If the stereotype is negative, it can
impose formidable barriers for marketers attempting to enter a market or position
products in an existing market.
In the last 15 to 20 years of Pakistans history, there has been a sharp increase in the
number of locally produced product and services coming into the market, ranging from
electronic goods like TV and computers to durable products and services like automobile,
cosmetic goods and companies dealing in all form of services including financing, IT and
advertising. Although most of these goods and services are of commendable quality, both
technologically and in terms of appeal, consumer demand was very slow initially.
(Pakistan Review Magazine 2001). Today a number of Pakistani brands are very well
received, some of which are more popular with the lower SECs while others are equally
popular with all. Sohrab Motorcycles, Super Asia Washing Machines, Dawlance
Electrical Appliances, etc. have found a stable place in both the consumers minds and
hearts.
By closely studying the COO effect on Consumer Behavior, managers can benefit by
having a better understanding of when promoting a products country of origin is
beneficial and when it is not, as well as identifying the dimensions along which country

image should be improved (COO and Brand names effect on consumer behavior and
purchase intention in Pakistan by Dr. M. Shahbaz Shabbir, Shabana Kirmani, Dr. Javed
Iqbal, Dr. Bashir Khan, IIUI)

3. Brand name
Another factor worth noting here is the corporate brand name. New brands coming from
established companies with proven track records are likely to be tried and adopted by the
target market far more quickly as against a new company launching a new product.
This information is essential for marketers to make informed decisions concerning
product positioning, re-positioning and differential advantage.
4. Situational factors
There is dissimilarity of consumer behavior both between and within individual markets.
This is a result of specific combinations of collective and personal parameters. Time,
money, mood state are all individual factors that affect purchase intentions of a typical
customer.
Imagine a customer who enters a shopping mall to buy X. while moving toward the
targeted retail to get what he is looking for, he is likely to register other outlets that are on
the way. If he is not pressed for time and is economically stable, chances are that he
might just stop in front of a shop and take a better look at what is displayed in the
window. If further tempted, he is likely to enter and investigate further. Likelihood of this
customer becoming a buyer is very high.
Reaching the average Pakistani Consumers via Traditional Media
Research findings from a sample of 10,000 respondents from 50 cities (15 key, 35 rest of urban)
aged 12+, both male and female, covering all SECs and socio-geographic representation within
cities (conducted in Oct 2010) indicate that:

Male and younger audience dominantly gets more exposure of every media.
There is higher reach of every vehicle amongst men.
Magazine is the only exception to reach out to women
The younger the age, the higher the reach of every media.

Newspapers:

Higher reach of newspapers amongst the elderly

Sports, science, showbiz and education pages are more relevant for advertisers and media
planners to reach out to younger audiences.
Local new pages draw maximum attention of newspaper readers belonging to elder age
brackets.

TV:

Food, religion and drama interest women while the rest of the genres are all male
dominated.
News, religious programs and talk shows are the preferred genres by elderly people
Youngsters are highly inclined towards movies, music and sports.

Changing Paradigms of Consumers

Consumer Behavior is never constant. It changes over time and these changes are clues to the
future. Consumers in Pakistan are also changing their responses because of globalization, and
technology advancement. If marketing has one goal, it is to reach consumers at the moments
that most influence their decisions. Marketing has always sought those moments, or touch points
(such as advertisements, news reports, conversations with family and friends, retail environment,
and product experiences), when consumers are open to influence. For years, touch points have
been understood through the metaphor of a funnelconsumers start with a number of
potential brands in mind (the wide end of the funnel), marketing is then directed at them as they
methodically reduce that number and move through the funnel, and at the end they emerge with
the one brand they chose to purchase.
Awareness
Familiarity
Considerati
on
Purchase
Loyalty

But today funnel concept fails to capture all the touch points and key buying factors resulting
from the explosion of product choices and digital channels, coupled with the emergence of an
increasingly discerning, well-informed consumer. A more sophisticated approach is required to
help marketers navigate this environment, which is less linear and more complicated than the
funnel suggests. This new approach is called The Consumer Decision Journey and is more
circular in nature. It constitutes four primary phases representing potential battlegrounds where
marketers may win or lose: initial consideration; active evaluation, or the process of researching
potential purchases; closure, when consumers buy brands; and post-purchase, when consumers
experience them. Unlike the funnel approach, the number of brands under consideration during
the active-evaluation phase may now actually expand rather than narrow as consumers seek
information and shop a category. Brands may interrupt the decision making process by
entering into consideration and even force the exit of rivals.
Two thirds of the touch points during the active-evaluation stage involve consumer-driven
marketing activities, such as internet reviews and word of mouth recommendations from family

and friends, as well as in store interactions and recollections from past experiences. Proliferation
of media and products requires marketers to find new and more engaging ways to get their
brands registered with the end consumers. Word of mouth plays a very important role in
influencing a consumers decision towards a brand; managing this word of mouth is becoming
increasingly important and challenging.
When consumers reach a decision at the moment of purchase, the marketers work has just
begun: the post-purchase experience shapes their opinion for every subsequent decision in the
category, so the journey is an ongoing cycle. A large percentage of the target market of facial
products goes online to conduct further research after the purchase a touch point unimaginable
with the funnel approach. (The Consumer Decision Journey, By: David Court, Dave Elzinga,
Susan Mulder, Ole Jorgen Vetvik, McKinsey Quarterly, 2009, Issue 3)
How companies market themselves and/or how they design their products has significantly
changed. One of the forces behind this change is the changing behavior of typical consumers.
Today, consumers across all demographics are better informed than ever before; not only about
the products they buy but about the company they buy from. Typical examples are the telecoms.
Someone with usage patterns in the lower quadrants of average revenue (less than Rs.
300/month) knows about on and off peak times, special deals and ongoing competitions. This
means that a product has to be strong enough to make an impression on the mind of the
customer. This not only modifies customers pre and post purchase behavior, it increases their
expectations about the product and about the product information they receive. It is a sign of
highly developed competitive market.
Shifting purchasing power patterns is another reason behind this change is consumer behavior
in Pakistan. Compared to ten years ago, more money is being spent on wants (rather than needs).
Take for example mobile phones and top-up cards. The convenience of the prepaid option has
increased the usage and shifted a great amount of the familys income towards this expense
within the household budget. Secondly, the purchasing decision is no longer with a single
decision maker; all members of the family, especially kids have an opinion and their own
preferences. (Engaging with Change, By K. Yousuf)
Children aged between 0 14 years make up approximately 40% of the Pakistani population.
While most of these children live in villages and towns, almost all have a window to the world
by virtue of their TV sets. They have a 20/20 vision coupled with an unparalleled hindsight. An
IQ level that beats most MBAs and a knowing of truth that seems to come as a given with these
new-age children. They may be impressionable but not gullible, therefore they question.
Whatever communication is designed for them must be current, honest and no-nonsense. These
are kids growing up in an age where the value of brand is an all-time-high.
Hence, we see these children being recognized as significant influencers and targeted through
advertisements for various brands. Not only do brands that specifically target children as

consumers (such as Cheetos, Energy candy, Ding Dong Bubble, Prince Biscuits, etc.) have
messages designed for them marketing to children; but also brands like Surf Excel, Lifebuoy
and Safeguard have clearly chosen children as the central theme in their message design.
Although the decision maker/consumer may be the mother/housewife/home-maker, the choice is
influenced by the children hence marketing through children; for example Surf Excel and State
Life. Realizing that children are a great emotional hook for their parents, it makes sense to target
mothers/fathers through children. (The Pester Power by Marylou Andrew, Aurora, July-Aug
2008).
Safeguards campaign is an example of both marketing to and through the children. Commander
Safeguard today is established as an icon in the minds of the young customers - the story is
embedded in their little minds, the concluding jingle has become an anthem that they stand and
sing along to, and the difference between Safeguard and Lifebuoy is clear to them. (Ads, Brands
& Children; By: Oswaid Lucas, Aurora).
Understanding the reason behind this sudden rise in Pester Power unfolds a whole new
phenomenon that is a result of dual income families today in the urban localities of Pakistan.
More women are getting educated and entering the workforce. The size of a typical Pakistani
household is reported to be six; urban families have an average of 2-3 kids. With two earning
members and smaller family sizes, its obvious that the disposable income is rising. Parents give
in more to the demands of the children as a trade-off for spending less time with them.
Recognizing that these children today have access to PKR 10 billion/year through direct means
such as allowances, gifts, daily spending, etc. and indirect means such as their parents wallet,
advertisers in Pakistan are spending approximately PKR 400 million/year. on Cartoon Network,
Nickelodeon and Wikkid Plus.
A Legal Aspect
Marketers may be playing on this pester power to make a lot of money but is marketing to
children really ethical? Critics say that most of the advertisements are for food products and
children just dont have the maturity to make healthy decisions and take responsibility for the
consequences. Not surprisingly, Pakistan had insufficient laws when it comes to marketing or
advertising to children. The only body that could pull the plug on unethical advertising was the
Pakistan Advertisers Society (PAS) and most advertisers admit that the body rarely exercised the
privilege. In such a scenario, most companies (and MNCs in particular) follow their own
guidelines. In Unilevers case, this means ensuring that the advertising does not mislead about
the potential benefits of a product, that emotions are portrayed realistically, that no direct appeals
are made to children or to parents to buy the product, and no sense of urgency is created by using
words such as now or only. Unfortunately such stringent guidelines are rare, especially in the
case of national companies9. However, a progress was made on the situation and a Competition
9 The Rise and Rise of Pester Power, by Marylou Andrew, Aurora, July-Aug 2008.

Commission of Pakistan (CCP) was established on 2nd October, 2007 under the Competition
Ordinance, 2007. Major aim of this Ordinance is to provide for a legal framework to create a
business environment based on healthy competition towards improving economic efficiency,
developing competitiveness and protecting consumers from anti-competitive practices.
Briefly, the law prohibits situations which tend to lessen competition such as actions constituting
an abuse of market dominance, competition restricting agreements and deceptive market
practices. Although essentially an enabling law, it briefly sets out procedures relating to review
of mergers and acquisitions, enquiries, imposition of penalties, grant of leniency and other
essential aspects of law enforcement.
Prior to Competition Ordinance, 2007, Pakistan had an anti-monopoly law namely Monopolies
and Restrictive Trade Practices (Control and Prevention) Ordinance (MRTPO) 1970. The
Monopoly Control Authority (MCA) was the organization to administer this Law. In the fast
changing global and national economic environment, the MRTPO, 1970 was inadequate to
address competition issues effectively.
Major parts of the Competition Ordinance are:

Part I. Jurisdiction

Part II. Definitions

Part III. Prohibition of abuse of dominant position

Part IV. Prohibition of certain agreements, exemptions and procedures

Part V. Deceptive marketing practices

Part VI. Approval of mergers

Part VII. Penalty, Leniency and Appeals

For the first time Pakistani consumers and businesses are protected from deceptive marketing
practices as per Section 10 of the Competition Ordinance, as follows:
(1) No undertaking shall enter into deceptive marketing practices.
(2) The deceptive marketing practices shall be deemed to have been resorted to or continued if an
undertaking resorts to__

(a) the distribution of false or misleading information that is capable of harming the
business interests of another undertaking;
(b) the distribution of false or misleading information to consumers, including the
distribution of information lacking a reasonable basis, related to the price, character,
method or place of production, properties, suitability for use, or quality of goods;
(c) false or misleading comparison of goods in the process of advertising; or
(d) fraudulent use of anothers trademark, firm name, or product labeling or packaging.
On February 2010: In a rare case encompassing violations of Section 3 (Abuse of Dominant
Position), Section 4 (Prohibited Agreements) and Section 10 (Deceptive Marketing Practices) of
the Competition Ordinance, 2009, the Competition Commission of Pakistan (CCP) has passed an
Order against Takaful Pakistan Limited (TPL), an Islamic Insurance provider, and the Travel
Agents Association of Pakistan (TAAP). A penalty of PKR twenty million has been imposed on
TPL for tying passengers travel insurance with the default insurance guarantee.
TPL and TAAP both have been penalized for fixing price of travel and medical insurance for
passengers and each shall pay a penalty of PKR ten million whereas for deceiving passengers,
TAAP shall collect from its members and pay a penalty of PKR ten million.
(http://www.cc.gov.pk/Ordinance.htm)
Very recently, however, the demand for developing and enforcing a junk food marketing code
was also articulated by The Network for Consumer Protection on the occasion of World
Consumer Rights Day, observed in March 2009 in Pakistan. (The Daily News)

References:

Process of Socio- Economic Change in Pakistan, By: Arif Hasan, October 2004, Paper for a
conference at John Hopkins University at the School of Advanced International Studies
(SAIS), Washington DC, USA.

The Changing Face of the Pakistani Consumer by Sarmad Ali, Marketing Review Magazine,
April June 2001

World Consumers Rights day by Fawad Ali Shah, Daily Times March 2009

The Rise and Rise of Pester Power by Marylou Andrew, Aurora 2008

Engaging with Change, By K. Yousuf

Ads, Brands and Children by Oswald Lucas, Aurora 2009

Misunderstanding Pakistani Youth by Amir Pasha, Marketing Review, April 2004

Brand Loyalty, Store Loyalty and Demographic Variables: A Relational Study, By Dr Zeenat
Ismail, Business Review Vol.3, No. 2, July-Dec 2008

Factors Influencing Customers Impulse Buying Behavior in Pakistan by Muntazir Mehdi

and Amir Feroz Shamsi, MAJU

An Empirical Analysis of Impulse Buying Behavior in Pakistan by Tariq Jalees, PF Keat

Consumer Preferences for Imported Products over Domestically Produced Products in

Pakistan by Noor-ul-Islam, Pareeza Raza Khan, Umara Noreen and Dr. Kashif-ur-Rehman,
Foundation University Islamabad and Iqra University Karachi

COO and Brand Names Affect on Consumer Behavior and Purchase Intention in Pakistan by
Dr. M. Shahbaz Shabbir, Shabana Kirmani, Dr. Javed Iqbal, Dr. Bashir Khan, Faculty of
Management Sciences, IIUI

Consumers Behavior Towards Marketing, Seminar at Bahria College by Faraz Siddiqui,

May 2000

The Consumer Decision Journey, By: David Court, Dave Elzinga, Susan Mulder, Ole Jorgen
Vetvik, McKinsey Quarterly, 2009, Issue 3

Think Regionally, Act Locally: Four Steps to Reaching the Asian Consumer, By: Guild,
Todd, McKinsey Quarterly, 00475394, 2009, Issue 4

Competition in Pakistan: The New Regime By: Khalid A mirza and Faisal K Daudpota

CIA Fact Book:

Competition Ordinance: (http://www.cc.gov.pk/Ordinance.htm)

Consumer Multimedia Index by Yasir Masood Afaq, Business Unit Head, MEMRB
Pakistan, Slogan, October 2010

https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

Shift to cities more demand will emerge new tastes

Localization is required build locally LG in india good example of localization
Shift to more marketing mediums imc