Notice of Retraction: Consumer behavior during high inflation and new branding in Pakistan

Abstract

Domestic and international investors are interested in introducing their brands in Pakistan, the question is whether period of high inflation is suitable for introducing new brand in Pakistan. This study learned the consumer behavior 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 income classes, that are upper, middle and lower, the study selected randomly 100 consumers from each class of consumers. The descriptive statistics discovered that inflation caused a compromising change in behavior of consumers from the lower class, the study found a considerable change in terms of the buying capacity as well as selection of the brand among consumers from lower income class. The study further found little change in both these dimensions among the consumers from the middle class. However, the study did not find any large change in the behavior of the consumers from the upper class. It concludes that income level is the real determinant of consumer behavior while inflation is merely a catalyst. Based on such findings, the study contributed that period of high inflation in Pakistan is suitable for promoting new local brands providing economy in the markets where majority of the consumers come from middle and lower classes of income.