rural marketing consumer behavior

7/26/2019 Rural Marketing Consumer Behavior

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UNDERSTANDING THE RURAL CONSUMERUNDERSTANDING THE RURAL CONSUMER

MEANING OF CONSUMER BEHAVIOR:

All business operations revolve around understanding the

consumer needs, desires, likes, dislikes and preferences andoffering products and services that will give the desired

satisfaction to the consumers


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Rural Consumer beha!orRural Consumer beha!or

" More complex #Some$ha% s!m!lar &emo'ra(h!)s bu%

)om(le* &ue %o rel!'!on +)as% an& (ol!%!)al!n,luen)es+ !n)ome &!s(ar!%-+ .ro*!m!%- %o%o$ns e%)

" So .lann!n' ,or all S%ra%e'!) mar/e%!n' s%e(s

be)omes &!,,!)ul%0" For high involvement products1

role o, o(!n!on lea&ers+ re,eren)e 'rou(se%) relean% as a )re&!ble sour)e o,

!n,orma%!on also as a s%a%us a&&!%!on" Low involvement products- more homo'ene!%- !n bu-!n' beha!or as

&emo'ra(h!)s an& (s-)ho'ra(h!)s r broa&l-

s!m!lar# $an%s an& nee&s more )ommon0


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" lo%s o, !n,luen)!n' ar!ables %o be s%ru)%ure&0 As(er )us%oms+ %ra&!%!ons+ bel!e,s+ !m(a)%!n'&e)!s!on ma/!n'

" Likings#,or #bol& an& (r!mar- )olors+ # ,ol/en%er%a!nmen%s+ )lo%hes + # s-n%he%!)+ (ros(er!%- 1'reen an& ha((!ness -ello$

Cultural factors- bas!) &e%erm!nan% o, beha!or o,

an- !n&!!&ual0 bu% rural )onsumer more boun&$!%h ,rame$or/ o, %ra&!%!ons 2alues

" Collective social sanctions-,allo$!n' &e,!n!%e +norms ,or )on&u)%!n' !n so)!e%-

" Influence of social customs-)us%oms r so)!all-

a))e(%able norms0 Tra&!%!onal so)!e%-# %ou)h!n',ee%+ As!an (a!n%s # bun%!n's

" Traditions- lon' las%!n' bel!e,s0 &ress!n's+)ommun!%- !n!%a%!ons0


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" Influence of casts- u((er an& lo$er )as%s &!,,eren)es s%!ll )on%!nue0 )lear

&emar)a%!on !n hous!n' $ar&s2)lus%ers on e)onom!)s%a%us0

" Sub culture-re'!onal (re,eren)es rema!n &a!l- a,,a!r !n rural unl!/eurban

" Social classification-Urban 'r!& base& on o))u(a%!on an& e&u)a%!on s%!ll no%

ha((en!n's !n rural" SC classifications# rural 'r! e* bas!s# house %-(es an& e&u)a%!on(eo(le $!%h (u))a houses ma/e bul/ (ur)hases an&

/u))ha house normall- bu- ,rom haa%s0

R#3# r#4 bu- l!,es%-le (ro&u)%s as %he- r more e*(ose& %ourban0

" Ne$ SEC bas!s eole& on e&u)a%!on an& asse%so$ne e*

" Consumer!sm !s also !n)reas!n' !n rural" Mone- or&er e)onom- s%!ll e*!s%s !n )oas%al an& h!lls


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Social factors-

" !eference groups- bes!&es %ra&!%!onal re,eren)esour)es 1 o(!n!on lea&ers 1 !n,orma%!onal2 norma%!e+ne$ one r emer'!n' %hru sh'+ n'o5+ )o#o(s"

" Famil#- hea& +(aren% ,am!l- s%!ll a &e)!&er0

" !oles and status- )as%e an& so)!e%- s%a%us r l!n/e& +re%!re& arm- (ersons+ &o)%ors e%) (la- a role as!n,luen)er0

" $roducts and status- %ra)%or o$ners+ (u))a houses +lan&lor&s an& )bb0

" Sociabilit#- unl!/e urbanno so)!al !s!%s unless someur'en% $or/

Technological factors-ICT e*(ans!ons )han'!n' )bb !n rural

conomic factors-

" !n)reas!n' )ons)!ousness o, su((lemen%!n' a'ro!n)omes $!%h o%her sour)es0

" In)reas!n' ban/ a))oun%s+ /!san )re&!% )ar&s0


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" Characteristics of rural consumers %" &ge-Teena'ers# b!)-)les+ )!nema+ 467 4 $heelers e%)+" 'ccupation and income- )bb )han'es

" E)onom!) )!r)ums%an)es#" Lan&lor&s+ $a'e earners &!,,er !n )bb0" L!,es%-les# $ell#o,,+ b(l e%)0 &!,,er !n )bb" $ersonalit# and self concept-" Aloo,ness ,or rural $omen

" Nee&s )han'es# Maslo$" .er)e(%!on an& bran& bel!e,# l!) + sb! r more %rus%e&0" Bu-!n' beha!or (a%%erns# e*" Bu-!n' roles

" Role o, a o(!n!on lea&er 1 e*" Un&ers%an&!n' rural -ou%hs# 'a%e$a- %o 8ob orl!el!hoo&+ %he!r role mo&els

" Bran& lo-al%-0 e0'0+ s%!)/ %o l!,ebuo-" CRM 1 !s alrea&- bu!l% !n as !n%e'rals+ s-s%em e*!s%s0


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" rural consumer- features-a9 )au%!ous bu-!n' + )he)/s re)he)/s (r!)es o, ne$(ro&u)%s+ lo% ,ree %!me so &ela-e& &e)!s!ons

b9 )ul%ural ,a)%ors#share& alues+ bel!e,s an& (er)e(%!ons

unl!/e more !n&!!&ual!e& !n urban+ &!,,eren% 'rou(srela%e& %o rel!'!on+ )as%e +o))u(a%!on)9 Tra&!%!onal l!,e# )us%oms an& %ra&!%!ons &e)!&es9 Tra&!%!onal l!,e# )us%oms an& %ra&!%!ons &e)!&es(ra)%!)es+ s%!%)he& sh!r%s r s%!ll )ommon0(ra)%!)es+ s%!%)he& sh!r%s r s%!ll )ommon0

&9 %ra&!%!onal o))u(a%!on# )h!l&ren %a/e u( ,arm!n' an&&9 %ra&!%!onal o))u(a%!on# )h!l&ren %a/e u( ,arm!n' an&

also ,allo$ same me%ho&salso ,allo$ same me%ho&se9 %ra&!%!onal bel!e,#&e(en& on ,a%e+ (as% e*(er!en)ese9 %ra&!%!onal bel!e,#&e(en& on ,a%e+ (as% e*(er!en)es%han ne$ ,!n&!n's+ man%ras an& %an%ra r use&0%han ne$ ,!n&!n's+ man%ras an& %an%ra r use&0

,9 Fam!l- alues#obl!'a%!ons ,ul,!llmen%s+ Sas#bahu+ 8o!n%,9 Fam!l- alues#obl!'a%!ons ,ul,!llmen%s+ Sas#bahu+ 8o!n%,am!l!es+,am!l!es+

'9 rural !n)ome#monsoon +seasonal+ a'ro0 !m(a)%+'9 rural !n)ome#monsoon +seasonal+ a'ro0 !m(a)%+h9 ,es%!als an& ,un)%!ons# onam+ (on'al+ &!$al!h9 ,es%!als an& ,un)%!ons# onam+ (on'al+ &!$al!)am(a!'ns +)am(a!'ns +

!9 Lo$ e&u)a%eme&!a )ho!)e+ &emos bes%#resul% or!9 Lo$ e&u)a%eme&!a )ho!)e+ &emos bes%#resul% orme%ho&+me%ho&+

;9 ban/ !n,luen)e# sa!n' hab!%s %hru )oo( ban/s e%)0;9 ban/ !n,luen)e# sa!n' hab!%s %hru )oo( ban/s e%)0


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India-Population Distribution


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Population Distribution

RURAL POUPLATION IN

STATES


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Landscape & Income distribution


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Consumption


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Rural India


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About 70% of Indias population Continue living in therural areas

There are more than 600,000 villages in India Consumers in this huge market segment displa a vast

differentiation in their pur!hase de!ision and produ!t use


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Increase in te literac! and media e"posure # te ruralconsumers are becomin$ more conscious# a%are#

coosier and more demandin$ tan eer be'ore(

It as become increasin$l! important 'or te mar)eters tounderstand rural consumers* beaior


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Changing" #$#A C&'($)*#

+#A' A-A#*'*((. There has been an in!rease in

brand a/areness $pgrading of produ!ts is been seen from

toothpo/der to toothpaste, traditional inse!t repellent to

mats and !oils

+$1 &-*# 2#IC* 3&&(. The look value for mone,

not !heap produ!ts

+$1 -4AT T4* )A#5*T*# (*(+ *tremel strong

brand loalt is seen"Colgate

A#I*TA(T*(. The rural !onsumers preferen!es differ

a!ross the nation

I''&ATI* $(* &8 2#&$CT(. The rural market is

etremel innovative in the uses of a produ!t" -ashing

ma!hine to make assi" Iode for animals


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C&'($)*# *92*'IT$#*

&n an average spend about #s:;0:


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C4A'3*( I' #$#A C&'($)*#

+*4AI

In!reasing rate of litera!

3reater a/areness

1ounger generation appears to seek variet

The are more dis!riminative in their buing behavior


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I8*(T1* &8 #$#A C&'($)*#

imited edu!ational ba!kground

imited eposure to produ!t as /ell as brands

#ural !onsumers prefer to /ork hard themselves

Choosing pri!e over produ!t >ualit

Influen!ed b -&) !ommuni!ation

#ural !onsumer is ver religious

(trong famil ties and respe!t for famil values


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5*1 C4A*'3*( T& )A#5*T*#


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$'*#(TA'I'3 T4* #$#A C&'($)*#

? The fa!tors affe!ting the buing behavior

; The fa!tors !ausing flu!tuations in the buing behavior

*nvironment

3eographi!al Influen!es

&!!upational Influen!es

Creative $tilit of produ!ts

2la!e of pur!hase


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8ACT( A88*CTI'3 #$#A C&'($)*#

iffi!ult to

as!ertain

As the have

!hanging

o!!upations indifferent seasons

2rimar @

se!ondar opinion

leaders$pper and lo/er !lass#egional influen!e"eample !lothes

#ole" behavior epe!tedof individuals in a group

In rural India,

status is linked

to !lass

8amil

stru!turedetermines

The de!ision

maker


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8ACT( A88*CTI'3 #$#A C&'($)*#(

Tele!omm and T"!hanged

lifestle In!reased !ommuni!ation Allo/s marketers to easil

rea!h their T3

2hilosoph and de!isions

of rural 2art"influen!es the

fortunes of #ural people

In!reasing prosperit 'on"agri!ultural in!ome -omen self help groups


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(TA3*( I' +$1I'3 2#&C*((

+roadl !lassified into five stages

2ur!hase of high involvement produ!ts rural !onsumer displas different

motives

STA,ES IN U.IN, PROCESS


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STA,ES IN U.IN, PROCESS


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#&* &8 #$#A -&)*'

Earl! .ears

'o signifi!ant role 'ot a/are of /hat /as happening in the outside /orld

The hardl left their homes e!ept for so!ial o!!asions

Current scenario

(tatus of /omen !hanging

+etter edu!ation< gro/ing presen!e of media influen!e role @

behavior

)ore empo/ered toda

Therefore their role in famil buing de!ision pro!ess " In!reasing


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+$1I'3 +*4AI

+uing #oles similar in $rban @ #ural markets

a)en usuall de!ide on personal !are produ!ts and !apital investment et!b-omen de!ide on utensils and other things of use in the home

!2ur!hasing a higher involvement produ!t is a !olle!tive de!ision


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/ACTORS T0AT IN/LUENCE RURAL E0A1IOR

STI2ULI

Inputs to an senses2rodu!ts2a!kageCommer!ials+rand image#eferen!e

ATTITUDEConsumer beliefConsumer feeling

PERCEPTION

epends on

E3POSURE*g I8+ had not ade>uatel edu!ated farmers

about the -ashing ma!hine

The thought it /as a !hurn for making

large >uantities of assi

INTERPRETATION

*g Iode " mus!ular pain reliever

used on animals

3odre= hair de on buffaloes )2


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8ACT( A88*CTI'3 C&'($)*#

+*4AI "2*#(&'A

2s!hologi!al fa!tors

A!tivities &pinionsInterests

ifestle identifi!ation


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Age @ life !!le stage.

/ACTS ON RURAL INDIAB% of population belo/ age group D 1oung adults belo/ age of ;ears E th of !onsumption baseAge group ; D tremendous potential gro/th


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Occupation+3oods and servi!es Fbeond the basi! onesG are influen!ed b o!!upation @

in!ome of !onsumer

+ut rural !onsumer has more than one sour!e of in!omeTherefore in!ome is not a parameter to base buing behavior'on agri!ulture o!!upation groups high !onsumption segment @ rapid gro/th

Economic Circumstances+i!tated b disposable in!omes, savings, debt8armers in!ome depends on monsoonail /age earners varing in!omes everda(avings @ small deposits +anks @ 2ost offi!es#ural !onsumer has more buing po/er than urban !ounterpart


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Li'e st!le+

The Affluent Class

The )iddle Class

The 2oor

2oor

Aspirant

Climbers

-ell off

er ri!h

Personalit! & Sel' concept


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Personalit! & Sel' concept'atural tenden! to bu produ!ts that mat!h our personalit)arketers provide distin!t image to their produ!t

Co!a Cola (mart, 1outhful, Colorful

)ahindra Tra!tor #ugged, #elaed, ominating

Personalit! & Ps!colo$ical 'actors(atisf basi! needs

Averse to taking risks&pinion leaders pla signifi!ant role2eer group pressure not ver signifi!ant

Personalit! & rand belie'2er!eption dire!tl related to level of a!!eptan!e and satisfa!tion*isting produ!ts pla a ma=or role#epetition, Consisten! of pa!kaging, Colors, +rand image, 2ri!e #einfor!e +rand

belief


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#$#A C&'($)2TI&' 2ATT*#'

2e!uliar !hara!teristi!s features of rural markets have !ompelled the marketers

to develop different marketing strategies for rural markets as !ompared to

that of urban market

(ome of these fa!tors are dis!ussed as follo/s.

2rodu!t

)essage

)edia

Channel

2ri!e

*amples /hi!h refle!t different marketing strategies for rural and urban

markets" !astrol, velvette shampoo,et!


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$#+A' v


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+ehavior of #ural Consumer

2roblem< &pportunitH

eaioral bases 'or se$mentation+

'ot a problem

#ather an opportunit

Rural India u!s+

2rodu!ts more often(maller pa!ks, o/ unit pri!e

istribution @ 2ri!ing Important mantra+rand !ompetition ess advertisements

Availabilit ke area8e/er brand !hoi!es+u value for mone, not !heap produ!ts

C&'C$(I&'


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C&'C$(I&'

#ural India huge opportunit

#ural !onsumers buing de!ision influen!ed b man fa!tors

In rural !ontet. A/areness, Availabilit, A!!eptabilit, Affordabilit" pla a !ru!ial role

The pur!hase depends upon in!ome @ earning stle

Therefore, )arketer must in!orporate these fa!tors in his de!isions and strategies

rural marketing consumer behavior

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