Marketing and selling in tough economic conditions:

The Sri Lankan consumer mindset

Prasanna Perera- Marketing and Management Consultant, Chartered Marketer, CIM U.K.

Prasanna Perera

Understanding how consumers buy is not easy. Many factors both rational and irrational come into play. I have observed the Sri Lankan consumer buying behaviour over several years and will endeavour to provide some insights for the benefit of marketers.

Q: What does the Sri Lankan consumer look for - price or quality?

A very difficult question to answer directly. In my opinion, Sri Lankans are very price conscious, but will not accept any quality for a lower price. Further, the level of price sensitivity increases when income decreases. In general most Sri Lankans look for 'value-for-money.'

Q: Are Sri Lankans brand conscious when purchasing products and services?

Men are more brand conscious than ladies. This is true for most categories of products. Ladies become brand conscious for products they purchase for the family. (Food, beverages) In general brand consciousness increases with income growth. Upper income and upper middle income Sri Lankans are brand conscious.

Q: What is the level of brand consciousness when selecting retail brands to patronise? (Supermarkets, clothing chains and food chains)

Here brand consciousness is very high amongst both males and females. Store loyalty is probably higher than product/brand loyalty. The reason may be habit and personal relationships built with store staff.

Q: What factors influence Sri Lankan consumer buying behaviour?

Many factors come into mind. Primarily social factors such as family and friends are powerful influences of buying behaviour. (Specially through word-of-mouth).

In addition, age, income and occupation are also influencing factors. Sri Lankans are becoming more and more western oriented in their lifestyle. Hence, lifestyle is also influencing factor across product categories, such as food, beverage, clothing, footwear and entertainment.

Q: Are Sri Lankans habitual by nature and reluctant to change?

Yes, they are very habitual. Once a habit sets in, it is very difficult to change. Hence, brands that capture Sri Lankans attention will be hard to dislodge. In Sri Lanka many pioneering brands are going strong, despite the influx of competitive brands.

By nature, Sri Lankans are change resistant. This in my opinion is due to our culture which is traditional and habit based.

Q: Are Sri Lankan consumers positively influenced by TV Advertising?

Yes they are and the general perception is that products/brands that are advertised on TV are strong and of good standing. This is of course a perception, but an important dimension.

Q: Are traditional retailers (mudalalis and shop owners) influencing consumer product/brand choice?

Yes, they definitely do. In certain instances the brand choice of the consumer is changed by the retailer. The retailer is naturally influenced by the profit margin and endeavours to promote products/brands that offer the highest margins.

Q: Are Sri Lankan consumers willing to pay for greater convenience?

Yes when it comes to the upper and upper middle class. As the income decreases, consumer willingness to pay extra for convenience diminishes. In the Western Province (Colombo, Gampaha and Kalutara), most consumers are time poor and hence, willing to pay for convenience.

Q: Are Sri Lankan consumers becoming more patriotic and supportive of homogenous products/brands?

Yes, a definite trend is observed, since the cessation of hostilities. 'Be Sri Lankan, Buy Sri Lankan' is the motto. In my opinion, this patriotism is observed across income and occupation groups. 'Made in Sri Lanka' is no longer a liability but an asset.

Q: How eco-conscious are Sri Lankan consumers?

Sadly not very, except in upper income circles. This is partly due to lack of awareness and income factors. Eco-friendly products and services are normally priced higher, hence affordability becomes a factor. Many Sri Lankans complain of climatic changes but are not responsive enough to safeguard the environment. Marketers would do well to include environmental awareness into their marketing campaigns.

Q: Do Sri Lankan consumers complain when served with poor quality products and services?

Not to a great extent. Instead of complaining, Sri Lankans simply switch to alternatives. This is the danger for marketers. At least if a consumer complains, the marketer has an opportunity to rectify the situation.

Q: How influential are children and teens in the purchasing behaviour of their parents?

The influence of children and teens is growing. The present younger generation are more independent and make decisions for themselves. (Even against their parents choices). Marketers would do well to appreciate the influencing power of the younger generation.

Q: Why are Sri Lankans reluctant to purchase products and services, on-line?

Firstly, Sri Lankans enjoy the physical interaction with a seller and the resultant relationship.

Secondly, security and privacy related issues also turn away Sri Lankans from on-line transactions. Thirdly, the habit of purchasing from a physical store is difficult to dislodge.

Q: Are Sri Lankan consumers high risk takers?

Definitely not. A moderate level of risk taking is what can be observed. Only a very small segment of the market, can be classified as high risk takers.

Q: Advise to Sri Lankan marketeers?

Invest in market research and intelligence, to keep track of consumer buying trends.

Informal research such as observation can also help. Be courageous to modify product and services according to market trends.