Rural Consumer

By Sundari Divakarla

CONSUMER BEHAVIOUR

Introduction
Factors affecting consumer behaviour
Consumer buying process Opinion leadership process

Diffusion of innovation
Brand loyalty

Factors affecting CB
Culture
Subculture Social factors

Technological factors
Economic factors Political factors

Culture
Collective social sanction:

Societies are bound by definitive norms being followed by set of the people . This norms dictate the ways and means of behaving ,working addressing and conducting ourselves in society.

In rural India these norms are strong and rigorously followed too.

Violation of these norms can even lead to cast out of the society.

Influence of social customs

Social custom
Customs are socially accepted norms that have been in practice over a long time .In urban India due to due to course of time customs are fading away . Eg; touching feet of elders

Traditions
Traditions are the long standing beliefs that are believed to be true in nature and often practiced in a ritualistic manner, without knowing the origin or questioning the need to do so. Rural people are staunch believers in traditions. Eg; washing hair and leaving open calls evil spirits.

Influence of caste
Cast play a key role in behaviors of community . In rural India ,the upper caste and lower cast differences still continue and are considered an important facet of everyday life.

There is a clear demarcation in the villages for house making, two areas , including natural resources such as drinking water and grazing land for cattle.

In urban limited physical space and pressure on limited available natural resources , interaction based on economic status and vocations rather than on basis of caste leads to an absence of such division.

Funeral in rural India

SOCIAL CLASS
Socio Economic Classification (Urban)

Unskilled/Skilled workers
Shop owners/Industrialists Self-employed professionals Clerical/salesman Supervisory level

Junior level Officers/Executives

Senior level Officers/Executives

Socio Economic Classification (Rural) Landlord farmers, educated, exposed to urban environment, aspiring to match urban lifestyle, technology adapters, owns tractors, two wheelers, music system. Rich farmers with about 5 acres of land, may not be educated, with friends and relatives in urban and consult them for technology adaptation, status conscious, owns tractors, two wheelers, TV. 2-5 acres land, manage small savings, opt for time tested technology, owns TV, tractors. Little or no land, agricultural labour, living below poverty line .

CHANGING BEHAVIOUR

Return of people from urban

Information technology Communication Explosion of Media

FAMILY Individualized Joint Family

ROLES and STATUS Urban- Social standing or Material wealth Rural- Occupation, Caste

PRODUCTS AND STATUS SYMBOL

Urban- Features
Rural- Ease of operation SOCIABILITY TECHNOLOGICAL FACTORS ECONOMIC FACTOR

Characteristics of Rural Consumer

CHARACTERISTICS OF RURAL CONSUMER

 Consumer behaviour is a complex phenomenon that is influenced by various factors such as income, occupation, education, lifestyle and geographical location.

Using a single factor would be misleading.

Personality & Psychological Factors Perception & Brand belief Characteristics of Rural Consumer Age & Stages of Lifestyle Economic Circumstances Personality & Self-concept Lifestyle

Occupation & Income

Personality
Sum total of unique individual characteristics that determine how a person responds to the environment. Tendency to buy the products which suit our personality.

Self image is the way we perceive ourselves in a society.

In the rural market, purchase depends on situation and

person.eg. Pan Masala in rural, Popcorn in urban

 The rural customer is content to satisfy basic needs.

Persuasion necessary to convince a customer.

Peer pressure not very relevant High esteem but content with everyday life.

Perception and Brands

Perception plays a major role in purchase behavior for the rural consumer. Quality and price influence the perception of the consumer. Barrier to level of trial and acceptance of products Rural customer trusts government services

Information Search and Pre Purchase Evaluation

Prefers getting information from opinion leaders rather than media. For high involvement products, information may be obtained

by visits to company outlets

Touch and Feel experience is very important in the current scenario

Rise of Consumerism
Rural people working in urban India increasing

Gifts from urban people

Migrated village folk New Class of Opinion Leaders Rural Consumer Ready to buy products that are not basic necessities

Consumer Buying Process

Level of involvement depends on factors like
Price
Availability Variety

Knowledge
Purpose Eg. Wristwatch, Cereals and Pulses, Medical Services

Stages in Buying Process

Problem Recognition NA for rural consumers

Information Search NA for rural consumers

Evaluation of Alternatives Purchase Decision Post Purchase Behaviour

Buying Roles
URBAN RURAL

Young Man
Colleagues

INITIATOR

Son

INFLUENCER Urban Relatives

The Young Man

The Young Man

DECIDER
BUYER

Father
Relatives, Friends

The Young Man

USER

Father,Son

 Power to influence other Can be non verbal

OPINION LEADER PROCESS

Urban OL having specialized knowledge Gram Pradhan or Sarpanch, Ex. Alwar (John Dheere) School teacher restricted among school going student

 Influenced college going student by urban life style Increasing exposer to education, the media, awareness of technology has given new power to youth. Mainly in rural area OL influence about product which have direct impact their occupations and sources of livelihood

Rural Opinion Leader

Sarpanch/Gram Pradhan-Village administration, resolving social & family conflicts, introducing new idea of farming, purchase of new products on farming.

College educated youth/villagers working in urban centersInfluence in family and neighborhood, on purchase of durables like refrigerators, TVs, motorcycles

Understanding rural youth

Literacy level rising
Education not considered to be a learning process but a gateway to a job or livelihood Government job is a dream Job security, power, less work responsibility, higher social status & post retirement benefits

Migrated person from his own community and made it big is a role model for rural youth

 Younger generation prefer trouser, shirts & t-shirts instead of traditional Dhotti & Kurta Youth prefer simple sober colours, branded clothes now taking place

Action movies, cricket match, serials & music programme are most watched
During playing cricket consumption of cold drinks & bubble gum is more

 Cold drinks is taking place instead of Nimbu Pani & Lassi

Easily recall action involve & personality driven commercials

Home made wafers & sevaiah are preffered as snacks

High awareness of FMCG product, like toothpaste, (Colgate,

pepsodent) soaps (Lux, Lifebuoy) In vehicle category motorcycle commonly used because of macho style

Diffusion of innovation
Due to a long chain rural consumer are less exposed to
product & services evolving regularly in the market Due to low level literacy consumer is also limited in his or desire to adopt innovations The concept of adoption of innovation is same in urban

& rural, but the role played by different consumers in

different stages varies

Urban profile Young, public-school educated, in business, fun loving, credit card holder Young, educated, employed in MNC, exposure to media Young, married, disposable income, self employment/in service Middle aged, in service/self employed, opts for consumer schemes

Type of consumer Innovator

Rural profile Young progressive farmers, urban exposure, additional income (part time service, agent Rich farmer, high disposable income, urban exposure, high social status Mediocre farmer, member of cooperative society, willing to adopt technology products Hesitates to take agri-loan, member of cooperative society, adopt only time tested technology

Early adopter

Early majority

Late majority

Middle aged, in service, shops in Laggard neighborhood

Marginal farmer using traditional forms of cultivation

Brand loyalty (Stickiness)

Due availability of more choice now evaluation parameters increasing for making choice
80% of FMCG sold in rural markets are branded either national or regional (less than 50% availability)

Ex. Ghari, Parle-G, Lux, Fair & Lovely, Colgate

Ghari gives customer satisfaction and solve primary objective of the consumer

Mahindra village, Escort village

Relation building concept lacking in rural market

 Brands like Kala Ghora in Rajasthan & Lamsa in

Maharashtra convince their regional customer Ex. Veldanda village in Andra Pradesh Customer relationship maintained by social interaction & extension of credit

Ex. In small town shopkeepers gives freebies

Thank You