Consumer Behavior during High Inflation and New Branding in Pakistan

摘要

Domestic and international inyestors are interestedin introducing their brands in Pakistan, the question iswhether period of high inflation is suitable for introducingnew brand in Pakistan. This study learned the consumerbehavior during extremely high inflation period in Pakistan.The study conducted in Karachi, financial hub of the country.As population of Pakistan consisted of mainly three incomeclasses, that are upper, middle and lower, the study selectedrandomly 100 consumers from each class of consumers. Thedescriptive statistics discovered that inflation caused acompromising change in behavior of consumers from thelower class, the study found a considerable change in terms ofthe buying capacity as well as selection of the brand amongconsumers from lower income class. The study further foundlittle change in both these dimensions among the consumersfrom the middle class. However, the study did not find anylarge change in the behavior of the consumers from the upperclass. It concludes that income level is the real determinant ofconsumer behavior while inflation is merely a catalyst. Basedon such findings, the study contributed that period of highinflation in Pakistan is suitable for promoting new localbrands providing economy in the markets where majority ofthe consumers come from middle and lower classes of income.