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RURAL CONSUMER BEHAVIOUR
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Rural Marketing – Course Plan Details
Issues, Opportunities & Challenges Rural Marketing Environment The Rural Economic Scenario Consumer Behaviour
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Consumer Behaviour Demographically homogenous groups behave quite differently Influences are caste, religion, undercurrents of power and politics Role of opinion leaders, influencers in reference groups much higher Factors are there but weightages change market to market.
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CULTURE SYSTEM– LEVELS OF INFLUENCE
MACRO EXO MESO PEER GROUP MICRO FAMILY ATTITUDES, BEHAVIOUR, VALUES, IDEOLOGIES CUSTOMS CULTURE WORK NEIGHBOURS POINT OF PURCHASE EXPERTS SOCIAL NORMS
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RURAL SECs – BEHAVIOUR/LIFESTYLES
BEHAVIOUR, ASPIRATIONS & LIFESTYLE R 1 Landlord Farmers, educated, exposed to urban environment, children in schools/colleges in nearby towns. Aspiring to match urban lifestyle. Technology adaptors, modern farming methods. Eager for additional income sources. Socially & Politically well connected. Own durables like Tractor, 2 wheeler, Colour TV, Music system, LPG, refrigerator, mixer grinders. R 2 Rich farmers with about 5 acres land, may not be educated, but will educate children. Consults Friends/relatives in urban for technology. Status conscious, aspiring to be well known in social/political circles. Owns durables like tractor, 2 wheeler, colour TV and LPG. R 3 Avg land 2-5 acres; manages small savings. Children in village school. Low risk taker – opts for time ested echnology. Owns durables like tractor (self & rental) and any TV. R 4 Has little or no land, agric. Labour, living below poverty line. A major purchaser from the Public Distribution System
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Changing Behaviour Word of Mouth Social Movements
Anganwadi – grass roots agents for Child Development Self-Help Groups (SHGs) – get microfinance at low interest rates for starting income generaing activities/micro ents. Primary Agricultural Cooperative Societies (PACS) NGOs – working in agriculture, dairy, non-timber forest produce, health, education, drinking water, sanitation etc.
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Roles and Status CASTE is a major definer of social status
Other individuals enjoying status :- Sarpanch Medical Practitioners Retired Military personnel Priests Of late, a progressive farmer is respected
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Status Symbols RURAL URBAN Social/Political status Educational Degree
Tractor(50 HP+)/Jeep/Car Car Large Pucca House with Courtyard House locality Children city edu./jobs Childrens’ school/college Land Airconditioning Telephone Club membership Pilgrimage Holiday abroad
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Social Interaction More time with family/friends Daily visits to homes
Women inetract with each other during daily chores Neighbour is extension of family and often part of family decision making process. Every new purchase is discussed with neighbours/family, deliberated on, evaluated. This determines acceptability,repeat purchase and adoption by oher families
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Characteristics AGE STAGE URBAN RURAL < 12 Child 13 - 19 Teenager
Video games, chocolates, health drinks Toys, Ice Candy, daliya Teenager Cell Phones, motorcycles, internet Bicycle, TV, Cinema Young Car, PC, branded clothing, alcohol, stores/malls Motorcycle, telephone, LPG, tailored and unbranded clothes, country liquor, haat Middle Aged Luxury Car, Credit Cards, house, health insurance, holiday trips Tractor, Kissan Credit Card, Postal savings, Mela > 60 Old Clubs, theatres, parks Chaupal, playing cards, pilgrimage
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Lifestyles Urban Rural Dimensions Demographics
Convent educated, salary, small nuclear family, large dense population, apartments Govt. School, self-employed, large family, scattered popn., ordinary spacious house Activities Office jobs, internet surfing, health club, shopping, clubs, parties Agriculture, physical sports, gossip, playing cards, cinema, religious meetings Interests Chinese, continental foods, designer clothes, beauty saloons, holiday trips “Desi” food, milk, bright coloured clothes, jewellery, visiting towns, markets/mela
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Rural Consumer Classification
Classn. Description ’95-’96 ’05-’07 The Affluent Households owning personal car/jeep with other products 1.6 5.6 The Well-Off HHs owning any/all of these : A/C, scooter/motorcycle, washing machine, fridge, colour TV etc. but no car/jeep 2.7 5.8 The Climbers HHs owning any of these: moped/VCR/ mixer grinder, sewing machine, audio equipment, B/W TV, geyser etc but not those in 2 cats. above 8.3 22.4 The Aspirants HHs owning any of these : bicycle, electric fan, electric iron etc but not those mentioned in 3 cats. above 26.0 44.6 The Destitutes HHs other than those classified in Cats 1-4 above, but own any of : wrist watch, pressure cooker, transistor radio etc. 61.4 20.2
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DECISION PROCESS - DEWEY
PROBLEM IDENTIFICATION POST PURCHASE EXPERIENCE SEARCH ALTERNATIVE EVALUATION CHOICE
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Consumer Buying Process - Car and tractor
STAGE URBAN (CAR) RURAL (TRACTOR) PROBLEM RECOGNITION High Involvement; comfort, status, drive experience. High involvement; productivity INFORMATION SEARCH TV, Internet, Newspaper Ads. Consult fellow owner; dealer Fellow owner, dealer at nearby town. ALTERNATIVE EVALUATION Aware of tech specs; mostly test drives for own experience Lot of to & fro involving progressive farmer. Live field demonstration crucial. PURCHASE DECISION Buyer decides. Family influences colour, looks. Drives home with family Collective decision by buyer, adult son, mechanic, PVF. Drives home – no women involved POST-PURCHASE BEHAVIOUR Higher risk taking ability, and therefore higher post purchase satisfaction/dissonance Lower risk taking, therefore lower expectations, therefore lower dissonance
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Role of Rural Women TILL FEW DECADES AGO :– Ghunghat or purdah.
Rarely left home (except fairs/festivals) & accompanied by males. Few girls sent to school No involvement in family decisions NOW :- More educated, aware & hence more empowered Growing presence of media improves influence Step out of home alone for education, health services, social services, functions, festivals. Involvement in family buying decisions on the increase
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Buying Roles INITIATOR – One who suggests the idea of buying
INFLUENCER – One whose views influence the decision DECIDER – One who decides to buy or not BUYER – One who makes the actual purchase USER – One who ultimately uses/consumes the product
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Buying Roles BUYING ROLE URBAN ENTITY RURAL ENTITY INITIATOR
YOUNG MAN – Feels need of commuting to college/office and initiates process SON (Mostly) FATHER (sometimes) Son studying in nearby town; father needing mobility. INFLUENCER FRIENDS/COLLEAGUES – Evaluates models on TV, asks friends/colleagues who influence FRIENDS, URBAN RELATIVES – Asks friends and esp urban relatives who have sizable influence DECIDER YOUNG MAN – Sometimes he pays, sometimes father does. But he arranges financing FATHER – because he pays BUYER YOUNG MAN – who goes to dealer (sometimes with friends) and makes the purchase SON, RELATIVES, FRIENDS – who accompany him and make it into an occasion USER YOUNG MAN SON AND FATHER – but mostly son where bought for him. In Joint families others too
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Opinion Leadership Opinion leader is one whose word, acts and/or behaviour informally influence the action and/or attitude of others Opinion leadership comes from social status, power or success in public life Key opinion leaders are :- Gram Pradhan/Sarpanch Schoolteachers Retired Forces personnel Young villager returning after city education
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Place of Purchase - Durables
PRODUCT TYPE URBAN RURAL Crockery, gas stoves, pressure cookers Crockery shops Haats, Melas, nearby town shop Electronics eg. Transistor, 2-in-1, walkman, CD/DVD player Consumer Electronics shops in commercial areas Consumer Electronics shops in nearby towns Electrical HH items eg. Fans, light fittings Electrical shops Electrical/Electronic shops in nearby towns Bicycles Company specific shops or combined dealer shops Bicycle/spare parts shops in nearby town. Mopeds Company authorised dealer Company authorised dealer in nearby towns. Motorcycles/Car/MUV Tractors Not used Company authorised dealer in nearby town
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Place of Purchase – Non-Durables
PRODUCT TYPE URBAN RURAL Toiletries. Personal care, beverages & snacks General Merchant, Grocer, Kirana Shop All in one stores at village Liquor Liquor shops, Bootleggers Desi/IMFL shops in nearby town/country liquor bars/village bhatti Clothings Apparel shops – company stores or mixed stock shops Ordinary wear – haats Special wear – nearby town shops Footwear Footwear shops – company stores or mixed shops Chappals – haats Shoes – nearby town shops Cereal, pulses & edibles Grocery shops All in one stores Vegetables Shops, subzimandis or thelas. Also weekly mkts. Haats/village shops Meat/Chicken/Fish Meat/fish shops Haats
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Place of Purchase – Non-Durables
PRODUCT TYPE URBAN RURAL LPG Home Delivery, informal purchases Collection from nearby towns Stationery items Stationery shops All in one stores Gift Items Gift shops Melas, nearby towns Medicines (OTC) Pharmacies, selected general stores (medicines not needing drug licence) Medicines (Prescribed) Pharmacies Nearby town pharmacy
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Place of Purchase – Services
PRODUCT TYPE URBAN RURAL Medical services Hospitals, Clinics, Nursing Homes Village RMP, PHC sub centre, CHCs Banking Services Scheduled Banks Rural , Scheduled or Coop banks Schools, tuitions Schools , coaching centres Village schools, private tutors in village Watching movies Homes, stand alone theatres, mutiplexes Theatres in nearby town, video parlours Transport Services Transport Depots Bus through village, Hitching, Depot in nearby town
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The Adoption Profiles CONSUMER TYPE URBAN RURAL iNNOVATOR
Young, affluent, public school educated, in business, credit card holder, party goer and fun loving Young, progressive farmer, urban exposure, kissan credit card, additional income EARLY ADOPTER Young, educated, affluent, employed in MNC/leading Indian Co, exposed to media and credit card holder Rich farmer, high disposable income, urban exposure, conscious evaluator, kissan credit card. EARLY MAJORITY Young, educated, married, disposable income, self employed/in service Mediocre farmer, member of coop., ready for KCC and willing to look at technology LATE MAJORITY Middle aged, self employed/in service. Looks for consumer schemes Member of coop society, hesitates to take agri loan, adopts time tested technology/product after approval of opinion leader LAGGARD Middle Aged/older. In service and shops mainly in neighbourhood stores. Marginal farmer using traditional forms of cultivation. Low wage earner and lazy.
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Brand Loyalty vs Brand Stickiness
In Rural India the propensity to change brands is very low Often marketeers think this is Brand Loyalty But the reason is not “undying love” for the brand but a fear that the replacement may be worse. The reasons for stickiness is the lower risk taking attitude so “a known devil is better than an unknown devil”.
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Examples of Rural Consumer Behaviour
When Asian Paints launched Tractor Enamel Paint, they first decorated the horns of the cattle – Why ? Henko detergent failed in Maharashtra because of the name “Henko” . Why ? Dabur’s Herbal toothpowder containing Tulsi (which is good as a herb) failed. Why ? Mahindra with it’s MaXX model offered metallic colours, aluminium footstep and an elegant spare wheel cover for rural market. Why ? In Rural West U.P., we have seen strong sales of MP3 players among the farmers, esp cheaper Chinese models. Why ? At the Allahabad Kumbh mela, shops located after the “dupki” and “darshan” areas had to pay 30% higher rentals than those located before the areas. Why ? Dabur traditionally paints walls on the way to the village temple and/or mosque. Why ? In part of U.P. there is a popular brand of gripe water called “daee ji ki 112 saal purani ghutti”. What’s special ? A young rural person near Karnal saw an ad for Liberty shoes on T.V. When he was at a Haat, there was a retailer selling the brand. But he did not buy it, preferring to go to the company outlet near Chakravarty lake. Why ? To cater to the large population of lower caste consumers, a “Harijan” brand beedi was launched in Bihar. No one wanted to touch it. Why ? In some parts of rural India there is a belief that after washing hair, they should not be left loose because: It gives an opportunity for evil spirits to enter Loose hair reflects loose character If you were a shampoo marketeer, how would you handle the communication ?
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Examples of Rural Consumer Behaviour
In a small village retail outlet the retailer displayed only local brands. Only when a cash paying consumer came and asked for an HLL brand by name, the retailer pulled it out of a drawer and gave it. What does this behaviour show ? Cadbury’s has launched ChocoBix, a chocolate flavoured biscuit in rural markets. What do they believe rural mother’s are thinking A North Indian tractor manufacturer went to South. He featured a Sikh sitting on a tractor as a symbol of “agricultural success”. But the communication was seen as irrelevant. Why ? A guest visited a Marwari household. As he was having his lunch with them (rice, daal and aalu ki sabzi) he asked for a Papad. The host was scandalised. Why ? Rajdoot motorcycles used Dharmendra in a commercial (Cinema/TV/video parlours) saying “Jaandaar logon ki shandaar sawari ? Did it work ? Why ? Although black is not a “lively” colour, the black colour of Chik shampoo was loved. Why ?
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