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CHAPTER 4 & 5

Consumer Behaviour Rural market Research

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

CONSUMPTION BY AGE & STAGES OF LIFE CYCLE


AGE

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

Toys, ice candy, daliya

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

Luxury car, credit cards, house, health insurance, holiday trips

Above 60

Old

Chaupal, playing cards, pilgrimage

Clubs, theatre, parks

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.

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 Young Man Colleagues Urban Relatives The Young Man Father The Young Man Relatives, RURAL INITIATOR Son INFLUENCER

DECIDER

BUYER
Friends

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 snakes 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

Type of consumer Innovator

Rural profile Young progressive farmers, urban exposure, additional income (part time service, agent

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

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

Middle aged, in service, shops in Laggard neighborhood

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

CHAPTER 5
CHAPTER 5

Rural Market Research Rural Market Research

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

Primary data collection


Mostly secondary data are available Data collection method includes focused group discussion and in depth interviews PRA (participatory rural appraisal) is the best method by which people share enhance and analyze their knowledge of life and conditions to plan and to act

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

Measurement and scaling methods


Faces for rating includes various faces and respondents give their opinion about the product by indicating the face The rating is from 5 to 1 Most effective tool

Wheel with different colours


The colours are selected on the basis of their association with certain values among rural people Dark green represents HARYALI with a rating of 5 Extreme black represents death or doom which is considered to be worst The remaining colors are orange yellow and red

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

Field Procedures & Rural Market Realities

Dos & don'ts in rural market research


Wear simple clothes Should either be familiar with local dialect or ask an educated resident to accompany you Invest time in establishing rapport with interviewee Conversation should be gradually build up

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

Make him feel that he is leading the interview


Interviewer should talk a good deal about general topics Interviewers should avoid being overfriendly Issues sensitive to respondents should be carefully handled

Attributes of Rural researchers


Mindset Effective Communication Discerning abilities Patience

Location for conducting research


Caste neutral Easy to locate Easy to find people

Location for conducting research


Retail shop/ STD booth Tea stall Play ground Chaupal Haat

Interviewee & Interviewer


Who is to be interviewed? When? By whom?
Urban researchers sensitized to rural realities NGOs Researchers should not be Government officials

Limitations of Rural Research


Low literacy level Poor media exposure, low product and brand awareness Local language communication

Scattered and remote village, inaccessible road Social taboos; difficulty in interacting with women Interview timing Revalidation of data

Major Research Organizations


National Council for Applied Economic Research (NCAER) Social and Rural Research Institute AC Nielsen ORG-MARG MART

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