Financial Culture affects consumer purchase decisions: Wunderman Thompson report

Wuderman Thompson has released a report highlighting some key findings in their study 'Cuylture Muscle'. Titled 'WT Culture Muscle Finance Study', the report looks at several shifts in financial matters in consumers culture. The study has several strategic pointers for clients and brands in the financial category.

The study was initiated with hypothesis on financial shifts on banking, savings insuring, investing identified by Wunderman thompson planners tracking the financial sector across India and the head office in new York. The study was conducted across genders in the 25-54 year age group, among ten cities in India – Mumbai, Delhi, Hyderabad, Ahmedabad, Chennai, kokata, Surat, Jaipur, Kochi, and Amritsar.

According to the report, financial culture impacts not just financial categories such as banking, insurance, and investments, but also purchase decisions across categories which has relevance for clients and brands. The study also highlights the culture shifts in modern Indian homes that include joint responsibility in the household on financial aspects, reliance on technology, and importance of financial education for girls.

According to the report, though India is traditionally a 'saving' nation, people are waking up the power of investing and insuring, realising that saving is not enough. The report also suggests that customers aren't just saving up for retirement, education and marriage anymore – they are also saving for foreign holidays, bigger cars, second homes and club memberships.

The report highlights that there is a growing concern among Indians about what financial companies do with individual personal data. Women are becoming financially savvy when it comes to the intricacies of financial planning. Moreover, India has seen shift in joint financial responsibilities within families.

On technology, the report suggests internet will change the way we deal with money and finances because it will connect all our appliances and devices. There days, as the report highlights, consumers are demanding more ease, speed and technology with banks, insurers, and other financial services companies.

Commenting on the report, Shaziya Khan, national planning director, Wunderman Thompson India, who commissioned the study, says, “Financial thinking is undergoing several fascinating shifts and it is important that brands understand and address them. One of them that intrigued me the most was that when the Indian family was more of a joint family, financial decision making was concentrated or nuclear, now when the Indian family is more of a nuclear family, financial decision making is joint.”

Tarun Rai, chairman and group chief executive officer, Wunderman Thompson, South Asia, said in a press release, “The Culture Muscle study is unique as its approach is to find out shifts in the collective psychology and attitude of people towards a pareticular category, in this case money. We have many clients in the financial services space and to be able to spot in advance cultural shifts in India towards money and investing is of huge importance to them. But cultural shifts in outlook to money are important to other categories too as it affects how India spends. The study, therefore, will be of use to a lot of our clients besides helping us understand the Indian consumer better. This is the second Culture Muscle study that we have done. The first on Foods and Beverages was very well received.”

Here's the summary from the report: