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24 QRCA VIEWS WINTER 2 014 www.qrca.org "SNAKES AND LADDERS" C O N T I N U E D Figure 4 – Macro Context/Economic Context: Transition from Frugality to Indulgence It's important to consider the economic context in which consumers have been raised, which affects their openness to spending. The time around Indian inde- pendence was defined by Gandhian prin- ciples of simplicity, low indulgence, and negativity towards foreign goods. As one moves away from this event towards con- temporary globalized India, there is a transition from frugality to indulgence. The housewives we are talking about belong to two segments, Midway Children and older Liberalization Children. These people make up the "ruling cohorts" who are between 25 and 45 years of age and open to upgradations, unlike Midnight's Children (those born during India's transi- tion from British colonialism to indepen- dence) and Pre-Independence Children, who are affected by restricted resources. Hence, they are important from the point of view of FMCGs (Fast Moving Consumer Goods). These ruling cohorts want to leverage the opportunities of a globalized India by investing in a greater quality of life, but still need a social reason to justify their decisions. Generation Z, who are the children of the ruling cohorts, are important influencers in categories like personal care, packaged food, technology, and home care. A lot of their demands make upgradations socially acceptable. Implications for researchers If we can identify the values that exist within an age cohort, we can uncover upgradation motivators that can be lever- aged in innovation, positioning, and com- munication. These values affect the acceptability of a product. Thus, upgrada- tion decisions are not made within the purview of a particular category, but in terms of trade-offs across categories. Researchers can use context-rich meth- ods like budgeting exercises and shop- alongs to evaluate purchase decisions in the complex network of trade-offs across categories. There are also upgradation focus group discussions meant exclusively for understanding these trade-offs. Second, we can re-create scenarios where social influences take place through storytelling, e.g., using dolls rep- resenting mother-in-law/husband to ask what they might say about a brand. This helps uncover the social barriers that might prevent purchase, even within the context of a superior product. Contrasting examples include buying an expensive tab- let for a child because it's a social given to invest in kids' futures, buying an expensive shampoo because it's the duty of the housewife to look "presentable," but buy- ing a cheap coil format for pest control because it's "foolish" to buy an expensive liquid vaporizer. Macro Context – Collectivism: We>Me The family, not the individual, and, by extension, the social circle, which forms the social rules, is the functioning unit in India. Unlike developed markets, the rules overcome individual needs. Despite transition from joint families to nuclear families, there is community- mindedness, i.e., a desire for constant con- nectedness. This community-mindedness, even without others' physical presence, leads to a sense of stability in the face of rapid change. For instance, a housewife may be living in a different state from her mum or mother-in-law, but might be call- ing every other day to ask for her advice. This makes the housewife's self-worth dependent on what significant others think of her. She constantly feels that her decisions are closely scrutinized – the spotlight effect – and fears making choices that are different from her significant oth- ers. For example, she might use a danger- ous acid to clean the toilets because it's a socially sanctioned practice, while using a specialized toilet cleaner is not. Implications for researchers We have found that the most powerful/ relevant payoffs relate to how the house- wife looks to others were she to buy the product. Thus, beyond the functionality, the brand needs to be able to answer important social questions, such as "Do others talk about it?" or "Will my husband and children appreciate my decision?" and so forth. Micro-social Quotient & Individual Quotient - Enculturation: Presence of Implicit Boundaries that Define an "Ideal" Housewife The second and third biggest forces – interactions in a collectivistic culture involving enculturation – are certain social rules about rituals, "good" behavior, per- 4) Upgradations in India

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