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22 QRCA VIEWS WINTER 2 014 www.qrca.org "SNAKES AND LADDERS" C O N T I N U E D Figure 2 India is progressing in a different man- ner from this "known" model. Rising dis- posable incomes are leading to a transition in the stereotypical image of the money saving housewife, so rigid frugality is no longer considered a virtue. Housewives believe in investing in a greater quality of life – they are upgrading (moving to pre- mium or branded versions of generic products) across premium personal care, packaged food, and home care. However, in our research, we have found that housewives operate in a collec- tive atmosphere. Upgradations are not about individual good or indulgence for self, but about keeping the family happy or doing what's in congruence with "good behavior," as defined by one's social circle. For instance, we found that the house- wife can easily upgrade to an expensive packaged food if her husband thinks it's healthier and, therefore, endorses it. Or, she may buy a specialized surface cleaner because her friend recommended it, rather than based on a rational evaluation. Thus, upgradations to premium products are aligned more with social dictates. This is quite unlike a consumer in the "SOLO" model, who may be upgrading because of individual choice, based on benefit analy- sis. Consequently, we have called our con- sumer "the contradictory housewife." Figure 3 Based on our work in the Indian market during the last five years for clients look- ing to upgrade consumers or seeking pen- etration in newer categories, we have iden- tified certain patterns in the upgradations and picture them together in the model of an inverted funnel. Adoption is not just about investing in better quality or more convenience. Unlike in the developed markets, in India superior quality does not necessarily place the prod- uct in the consideration set. There are forces at work much larger than the functionality, which we call the social quotient. A house- wife might be fully aware that a product is better for her family, but she might not upgrade because she fears judgment. Thus, barriers do not emerge from the actual cost, but intangible costs arise from the social quotient. We can understand how the social quo- tient affects upgradations through the invert- ed funnel model, which helps us understand the process via three big forces that result in "bounded rationality" in consumption 1 . "The social rules and norms constructed within the culture affect the meanings assigned to products, so it's necessary for researchers to decipher these implicit rules to induce persuasion." Even with increasing affluence, consumers still rely on collective social structures. 2) Upgradations in the Developed Markets: COMMUNAL MODEL 3) The Inverted Funnel of Upgradation: "The Social Quotient"

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