Sector Rotation with Leading Macroeconomic Indicators

In this study, an attempt has been made to examine whether the theory of sector rotation has been empirically valid in the Indian equity market, during the period April, 2000 to March, 2020. The time period has been divided into many sub-periods according to the real GDP growth rate and the annualized returns of eleven stock market indices have been analyzed in different periods. Going forward, leading macroeconomic indicators, which coincide with overall economy, have been taken and their association with stock market indices have been analyzed through statistical measures to assess any possible forecasting. In the first part of the study, cyclical and non-cyclical sectors have been found to beat the benchmark index during periods of growth and stagnancy, respectively, but no particular ordinality was observed. Amongst the leading economic variables, M3 Money Supply was found to have high degree of association with some indices, namely Sensex, Healthcare, CDGS, Consumer Durables and IT, but no linear relation was observed.

A Study On Impact Of White Goods Towards consumers Preference

The market’s level of competition has risen as a result of the advent of the overseas white goods industry. With rising earnings, dual-income families, changing lifestyles, credit availability, greater consumer knowledge, and the introduction of new models by Indian and multinational companies, India’s consumer durable sector is riding the crest of the country’s economic boom. As the Durable market is growing rapidly, an understanding of the consumer behavior regarding the characteristic of consumers in influencing their buying behavior is crucial. Consumer requirements of Air-condition, Washing machine and Refrigerator are at present not limited to its basic function but also on other values like – efficiency, ease of use and comfort. The consumer durables industry is marked by the growth of multinational corporations (MNCs), exchange offers, discounts, and fierce competition. MNCs have a 65 percent market share in the consumer durables industry. The expanding Indian middle class is a major focus for multinational corporations. They compete on the basis of a firm grasp on the local market, well-known brands, and a large distribution network, whereas Indian companies compete on the basis of a firm grasp on the local market, well-known brands, and a large distribution network. Consumer durables penetration, on the other hand, is still low in India. At this juncture, this study has been undertaken for to find out the impact and reality of white goods market in India.

A Study of Buyer Motivations at the Bottom of Pyramid in Urban India

The Indian bottom of pyramid (BoP) segment contributes around 85% of the total national household market. This study attempts to ascertain the purchase behaviour of customers at the Indian urban BoP. It endeavours to appreciate the viewpoint of the urban BoP consumers in the purchase process with reference to their purchase basket comprising of products mainly across categories such as grocery, perishables and basic consumer durables. The study starts with qualitative grounded theory followed by quantitative survey-based approach. It presents and validates emergent themes to give insights about purchase behaviour of consumers at urban BoP. The empirical findings of the study discovered five consumer motivations through factor analysis. The subsequent result of the cluster analysis showed that the urban BOP market is heterogeneous. Since the size of cluster is substantial, companies must make marketing efforts to target them on a priority basis. The study proposes a conceptual model of consumer motivation supported by the self-determination Theory for the urban BoP market in India.

Antecedents of Customer Loyalty and Word of Mouth: A Study on Consumer Durables in Emerging Economies

In the era of Marketing 4.0, where customers and companies interact online as well as offline, an immense need to understand the actions and reactions of a potential customer is generated. The expectation of the customer is sure to rise in the time ahead. There are challenges for organizations to prove their sustainability with all this. Among all challenges, developing loyalty among customers remains foremost, keeping into consideration the supremacy of customer loyalty (CL) in influencing other customers by using word of mouth (WOM). Organizations strategically use many tools to maintain a positive WOM and its image, that is, corporate image (CI) and brand image (BI) lead the confrontation. This article reveals that people are very rational while buying durables. The customer evaluates the CI and BI differently to buy high-priced and low-priced electronic products, which is a price-sensitive industry. The finding indicates that CI and BI have a significant impact on CL and WOM in the case of both high-priced and low-priced products, with a strong distinction in their intensity. Organizations must understand the presence of variation, as a loyal customer is the right source of positive WOM. Furthermore, the contribution of gender towards CL, BI and WOM is not seen, but is present in CI. Thus, the study provides new phenomena for using CI and BI as marketing tools to improve CL and WOM.

RELATION BETWEEN NEGATIVE TONE IN NEWS RELEASES OF WHO AND INDUSTRY RETURNS DURING THE COVID-19 PANDEMIC

We analyze the relationship between the negative tone in news releases issued by the WHO and industry returns during the Covid-19 pandemic. We construct our news tone measure as the ratio of negative words to the total number of words present in news releases of WHO. The news tone shows to be significantly associated with returns for the majority of industries. Bad news announced by the WHO translates into good news for consumer nondurables, telecommunications, and healthcare sectors. Negative tone in news releases of WHO is on average bad news for consumer durables, manufacturing, energy, and other industries. Our findings suggest that the news tone-return relation varies significantly throughout our Covid-19 sample.

Impact of personality factors on purchase and adoption of consumer durables with advanced technology

Purpose The purpose of this paper is to identify critical personality traits affecting and influencing buying behaviour in high involvement consumer durables. It also intends to guide practitioners in selecting appropriate marketing frameworks, consumer segments and processes considering the characteristics of consumer behaviour in developing economies. Design/methodology/approach It systematically reviews the literature on consumer personality traits, its measurement and related consumer buying behaviour. It uses data collected from potential car buyers at various car showrooms across the Indian subcontinent. The authors have worked with the online survey firm Qualtrics, to gather a data set of 328 car purchase intenders’ responses to their validated survey. The model was tested using the SmartPLS. Findings The personality traits of imagination, agreeableness and social factors positively influenced attitude towards automobiles with advanced technology. Further, in line with the theory of planned behaviour, it is seen that a positive attitude towards advanced technology and design for automobiles makes a person more willing to pay for the same. Research limitations/implications The study is confined to consumers intending to purchase a car, who are Indian residents. Originality/value It adds to the comparatively lesser body of study on the impact of personality traits on intentions and attitudes in high involvement consumer durable purchases. Further, it serves as an empirical examination of the adoption of new technologies, in the context of high involvement consumer durables. For practicing managers, it provides a reference for deciding future development directions and approaches related to the effective market launch strategies and commercialization of advanced technology automobiles in India.

IPO Underpricing across Different Sectors in India from 2010-2020

In this paper, underpricing of Initial Public Offerings across thirteen different sectors in the Indian stock market have been analyzed, during the period 2010–2020 (Data available till 31st October 2020). A sample of 129 companies, having an issue size greater than INR 100 crores, was examined and analyzed through IPO listing gains, weighted mean, standard deviation and coefficient of variation. The study shows that Retail, FMCG and Consumer Durables industry was underpriced the most while Engineering, Construction and Infrastructure industry issues were underpriced the least or overpriced. It was also found that Initial Public Offerings (IPOs) could be a window to make immediate gains in a very short period of time if thorough analysis of the issues and the market conditions is performed. Furthermore, it was observed that the first day return of the companies varies highly and cannot be fairly predicted by the weighted average first day return of the respective sector.

The Expansion of Consumer Credit in Italy and the Main Euro Area Countries

Since 2015, consumer loans have been rising fast in France, Germany, Spain and Italy. This article aims to provide broad evidence of the differences across countries in light of the recent consumer credit growth, exploring demand and supply factors typically related to this type of loan, and assessing the building up of financial risks. The expansion was connected in all countries with the increasing credit demand, specifically for consumer durables, and – for Italy and Spain, which experienced stronger credit tightening during the past crises – also with the easing of supply conditions. Risks stemming from the growth of consumer credit are mitigated by its lower incidence, compared with mortgages, on households’ total debt and income; exposure to interest rate risk is also decreasing owing to the high share of fixed-rate contracts. There is wide risk heterogeneity across countries, with Italy and Spain having the highest share of delinquent households (even for fewer than 90 days). In Italy, however, debt is increasingly concentrated among more affluent households, which are better able to withstand negative economic shocks. This trend is sustaining the drop in the ratio of new non-performing consumer loans.