New research shows Indian consumers prioritise experience over price, with 62% willing to pay more for better service
India has emerged as one of the most experience-driven consumer markets globally, with 71 per cent of customers choosing brands based on expected experience rather than price, according to an Ipsos study released on Tuesday.
The study found 62 per cent of Indian consumers are willing to pay higher prices for better experiences, a level well above the 34–52 per cent range reported in major developed markets.
India also showed a rare optimism toward artificial intelligence. While 47 per cent of US consumers, 45 per cent in the UK and 43 per cent in Germany believe companies will benefit most from AI adoption, 31 per cent of Indian customers said they expect to be the primary beneficiaries. The comparable figure in those markets ranged between 6 and 8 per cent.
Emotional engagement remains a key factor in India’s consumer market. Customers who report emotional attachment to brands recorded a Net Promoter Score of 59, compared with 38 among consumers who were only functionally satisfied. Retention rates were also higher at 70 per cent compared with 52 per cent, the report said.
Word-of-mouth continues to exert a strong influence, with 84 per cent of respondents saying recommendations shaped their brand choices. Customers acquired through recommendations went on to recommend brands 9.79 times annually, compared with 10 times among emotionally attached consumers and 8.24 times among functionally satisfied customers.
The research uses a “Forces of CX” framework that identifies six functional and emotional drivers shaping customer relationships. It found that certainty and fair treatment acted as core hygiene factors for Indian consumers, while enjoyment and status were key differentiators.
Sectors such as mobile networks and insurance reported the highest emotional attachment levels at 54 per cent. Banking and supermarkets trailed at 49 and 48 per cent, indicating scope for improvement in basic service categories.
