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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.
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.
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
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
LIFE-CYCLE STAGE
RURAL
URBAN Video games, chocolates, beverages/health drinks Cell phones, motorcycle, internet Car, PC, branded clothing, alcohol, stores/malls
Below 12
Child
13-19
Teenage
Bicycle, television, cinema Motorcycle, telephone, LPG, Tailored/unbranded clothes, local liquor, haat Tractor, kisan-credit card, postal savings, mela
20-40
Young
40-60
Middle Aged
Above 60
Old
RURAL
BELOW 12 YRS
URBAN
RURAL
13-19 Yrs
URBAN
RURAL
20-40 Yrs
URBAN
RURAL
40-60 Yrs
URBAN
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.
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.
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
Buying Roles
URBAN Young Man Colleagues Urban Relatives The Young Man Father The Young Man Relatives, RURAL INITIATOR Son INFLUENCER
DECIDER
BUYER
Friends
Urban OL having specialized knowledge Gram Pradhan or Sarpanch, Ex. Alwar (John Dheere)
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
College educated youth/villagers working in urban centersInfluence in family and neighborhood, on purchase of durables like refrigerators, TVs, motorcycles
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
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
Urban profile Young, public-school educated, in business, fun loving, credit card holder
Rural profile Young progressive farmers, urban exposure, additional income (part time service, agent
Early adopter
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 Marginal farmer using traditional forms of cultivation
Early majority
Late majority
Brands like Kala Ghora in Rajasthan & Lamsa in Maharashtra convince their regional customer Ex. Veldanda village in Andra Pradesh
CHAPTER 5
CHAPTER 5
Planning Research
Research objectives includes the perfect roadmap to entry in rural markets Investigative and exploratory in nature Requires a small sample size Types of rural studies includes 4 As U&A or KAP Feasibility Promotion distribution channel
PRA Large and heterogeneous Expression is verbal and nonverbal Information flow is more natural Attitude and behavioral change oriented On the spot analysis
FGD Small and homogeneous Only verbal expression Moderators role is high Action oriented Analysis by moderators
PRA Tools
Social mapping used to capture house location and caste distribution Resource mapping used to capture availability of resources Seasonality diagram is used to get infotmation on basis of seasons Venn diagram deals with various issues with their importance
Ladder
A small bamboo ladder with a number of rungs corresponding to number of items to be compared is constructed A high rung implies a higher rank But it is not a good rating tool
Questionnaire design
GIGO principle is applied Questions should be simple and direct Should be self explanatory Should not be ambiguous Should have a logical flow Should be in local language
Sampling
Population spread Scattered and remote village Heterogeneity Sampling process is complicated Includes village sampling that covers population occupation religion tribal population Respondent sampling Sample size determination
Make purpose of study clear and gain their trust and cooperation Make respondent a part of research project and tell him that his responses are really important Give importance to interviewee by actively listening to his concerns Rural people can handle only limited information at time
Scattered and remote village, inaccessible road Social taboos; difficulty in interacting with women Interview timing Revalidation of data
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