35399667 Consumer Behaviour Rural Marketing

7/28/2019 35399667 Consumer Behaviour Rural Marketing

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CHAPTER 4 & 5

Consumer Behaviour

Rural market Research


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CONSUMER BEHAVIOUR


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Introduction

Factors affecting consumer behaviour

Consumer buying process

Opinion leadership process Diffusion of innovation

Brand loyalty


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Factors affecting CB

Culture

Subculture

Social factors Technological factors

Economic factors

Political factors


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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.


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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.


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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, twoareas , 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 andvocations rather than on basis of caste leads to an absence of such

division.


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Funeral in rural India


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SOCIAL CLASS

Socio Economic Classification (Urban)

Unskilled/Skilled workers

Shop owners/IndustrialistsSelf-employed professionals

Clerical/salesman

Supervisory levelJunior level Officers/Executives

Senior level Officers/Executives


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Socio Economic Classification (Rural) Landlord farmers, educated, exposed to urban

environment, aspiring to match urban lifestyle,technology adapters, owns tractors, two wheelers, musicsystem.

Rich farmers with about 5 acres of land, may not beeducated, with friends and relatives in urban and consultthem for technology adaptation, status conscious, ownstractors, 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 .


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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


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PRODUCTS AND STATUS SYMBOL

Urban- Features

Rural- Ease of operationSOCIABILITY

TECHNOLOGICAL FACTORS

ECONOMIC FACTOR


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Characteristics of

Rural Consumer

Characteristics of rural consumer


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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.


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Characteristics of

Rural Consumer

Perception

&

Brand belief

Age &

Stages ofLifestyle

Economic

Circumstances

Personality

&

Self-concept

Occupation

&

Income

Lifestyle

Personality &

Psychological

Factors


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AGELIFE-CYCLE

STAGERURAL URBAN

Below 12 Child Toys, ice candy, daliya

Video games,

chocolates,beverages/health

drinks

13-19 TeenageBicycle, television,

cinema

Cell phones,

motorcycle, internet

20-40 Young

Motorcycle, telephone,LPG,

Tailored/unbranded

clothes, local liquor,

haat

Car, PC, branded

clothing, alcohol,

stores/malls

40-60 Middle Aged

Tractor, kisan-credit

card, postal savings,

mela

Luxury car, credit

cards, house, health

insurance, holiday trips

Above 60 OldChaupal, playing

cards, pilgrimageClubs, theatre, parks

CONSUMPTION BY AGE & STAGES OF LIFE CYCLE


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BELOW 12 YRS URBANRURAL


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13-19 Yrs URBANRURAL


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20-40 YrsURBANRURAL


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40-60 Yrs URBANRURAL


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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


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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.


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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


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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


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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


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Consumer Buying Process

Level of involvement depends on factors

like

Price

Availability

Variety

Knowledge

Purpose

Eg. Wristwatch, Cereals and Pulses, Medical

Services


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Stages in Buying Process

Problem Recognition NA for rural

consumers

Information Search NA for rural

consumers

Evaluation of Alternatives

Purchase Decision

Post Purchase Behaviour


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Buying Roles

URBAN RURAL

Young Man INITIATOR Son

Colleagues INFLUENCER

UrbanRelatives

The Young Man DECIDER

FatherThe Young Man BUYERRelatives,

Friends


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OPINION LEADER PROCESS Power to influence other

Can be non verbal

Urban OL having specialized knowledge

Gram Pradhan or Sarpanch, Ex. Alwar (John Dheere)

School teacher restricted among school going student


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Influenced college going student by urban life style

Increasing exposer to education, the media, awarenessof technology has given new power to youth.

Mainly in rural area OL influence about product whichhave direct impact their occupations and sources oflivelihood


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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 centers-

Influence in family and neighborhood, on purchase of durables

like refrigerators, TVs, motorcycles


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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


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Younger generation prefer trouser, shirts & t-shirts instead of

traditionalDhotti & 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 ofcold drinks & bubble

gum is more


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Cold drinks is taking place instead ofNimbu 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


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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


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Urban profile Type of consumer Rural profile

Young, public-school educated,

in business, fun loving, credit

card holder

Innovator Young progressive farmers, urban

exposure, additional income (part

time service, agent

Young, educated, employed in

MNC, exposure to media

Early adopter Rich farmer, high disposable

income, urban exposure, high socialstatus

Young, married, disposable

income, self employment/in

service

Early majority Mediocre farmer, member of

cooperative society, willing to adopt

technology products

Middle aged, in service/self

employed, opts for consumerschemes

Late majority Hesitates to take agri-loan, member

of cooperative society, adopt onlytime tested technology

Middle aged, in service, shops in

neighborhood

Laggard Marginal farmer using traditional

forms of cultivation


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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


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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


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CHAPTER 5

CHAPTER 5


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Rural Market ResearchRural Market Research


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Planning Research

Research objectives includes the perfectroadmap 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


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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


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PRA FGDLarge and

heterogeneous

Small and

homogeneous

Expression is verbal and

nonverbal

Only verbal expression

Information flow is more

natural

Moderators role is high

Attitude and behavioralchange oriented

Action oriented

On the spot analysis Analysis by moderators


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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


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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


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Wheel with different colours

The colours are selected on the basis oftheir association with certain valuesamong rural people

Dark green represents HARYALI with arating of 5

Extreme black represents death or doom

which is considered to be worst The remaining colors are orange yellow

and red


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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


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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


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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


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Field Procedures & Rural Market Realities

D & d 't i l k t


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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


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Make purpose of study clear and gain their trust andcooperation

Make respondent a part of research project and tell

him that his responses are really important

Give importance to interviewee by actively listeningto his concerns

Rural people can handle only limited information attime


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Make him feel that he is leading the interview

Interviewer should talk a good deal about generaltopics

Interviewers should avoid being overfriendly

Issues sensitive to respondents should be carefullyhandled


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Attributes of Rural researchers

Mindset

Effective Communication

Discerning abilities

Patience


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Location for conducting research

Caste neutral

Easy to locate

Easy to find people


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Location for conducting research

Retail shop/ STD booth

Tea stall

Play ground

Chaupal

Haat


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Interviewee & Interviewer

Who is to be interviewed?

When?

By whom?

Urban researchers sensitized to rural realities

NGOs

Researchers should not be Government officials


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Limitations of Rural Research

Low literacy level

Poor media exposure, low product and brand

awareness

Local language communication


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Scattered and remote village, inaccessible road

Social taboos; difficulty in interacting with women

Interview timing

Revalidation of data


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Major Research Organizations

National Council for Applied Economic

Research (NCAER)

Social and Rural Research Institute

AC Nielsen ORG-MARG

MART


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Thank You

35399667 Consumer Behaviour Rural Marketing

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