A COMPARATIVE ANALYSIS OF RURAL AND URBAN CONSUMER BEHAVIOR

Presented By: Siddhant Kamdar Roll No: A - 19

INTRODUCTION

Consumer Behavior Implies the study of the attitude of all consumers in disposing of their resources.

Determinants of Consumer Behavior:

Cultural Factors Social Factors (Reference Groups, Family, etc) Personal Factors Psychological Factors (Perception, Learning, Beliefs, Attitude)

RURAL URBAN DIVISIONS IN SPENDING (%)

Category Entertainment Consumer Services Durables Misc. Consumer goods Clothing and Footwear Food Rural 33 44 50 57 61 64 Urban 67 56 50 43 39 36

Source: KPMG Research (2013)

RURAL CONSUMERS
Features of Rural Markets Major Problems of Rural Markets

Large and Scattered Markets. Heterogeneous Market. Demand, Seasonal and Agriculture dependant. Great Diversity. Steady Growth.

Transportation Warehousing Problems Communication Problems

Cost Service Dilemma

FACTORS INFLUENCING RURAL CONSUMER BEHAVIOR

Environment of the Consumer.

Geographic Influences.
Influence of Occupation. Brand Preference and Loyalty. Product. Social Practices.

Investment and Saving Patterns.

MARKETING MIX OF RURAL MARKETS

Product: o Small Units and Low Priced. o Sturdy Products. o Branding. o Habits of Usage and Purchase. Pricing: o Low Price. o Refills. o Credit facilities. o Discounts and Promotions

Place: o Hub System. o Try to beat to the Distribution Constraints.

Promotion: o Newspapers. o Radio. o Jeep Campaigns. o Information Centers.

PROFILE OF AN URBAN MARKET

Concentrated Markets

Diversified Consumer Base

Media Exposure

Transportation Facilities
Communication Facilities Warehousing Facilities

MARKETING MIX OF URBAN MARKETS

Product: o Service Consumer Goods. o Superior Technology. o Attractive Packaging o Established Brand Pricing: o Cost Plus Pricing o Distributive Pricing o Competitive Pricing

Place: o In-store Placement Strategy o Developed Distribution Channel

Promotion: o Hoardings o Consumer Promotion o Websites o Sponsorship Programs

URBAN VS RURAL CONSUMER

Features Consumer attitude Cultural factors Urban Innovative Follow new trends Rural Conservative Values, beliefs, traditions

Buying decision

Varies

Buying decision by elderly people

Occupation

Non agricultural activities

Agricultural or Agricultural related activities More

Price sensitive

Less Impersonal casual relations,

System of interaction

superficial, standardized formality of relations

Fewer contacts with outside world. Simplicity in relation. Speaks through the heart

FINDINGS

Fulfillment of Needs necessity products V/S consumer durables Participant in Buying Process Preferred mode of payments Place of Purchase Price Sensitivity The frequency of Purchase of Urban Consumers

CONCLUSION
There will be always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

- Peter Druker