marketing effect on rural consumers.pdf

7/29/2019 marketing effect on rural consumers.pdf

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The Icfai Journal of Brand Management, Vol. IV, No. 4, 200728 2007 The Icfai University Press. All Rights Reserved.

Influence of Marketers Efforts on Rural

Consumers and Their Mindset:

A Case Study of Haryana

Sanjeev Kumar* and V K Bishnoi**

The impact of marketing goes beyond mere selling the products to intended consumers. We see a huge

thrust by marketers into rural markets triggered by saturating urban markets and huge rural potential very

much refle cted in growing demand. This upsur ge in rural demand has its genes is in peopl es recogni tion

of their otherwise latent needs brought to their consciousness largely by the marketers efforts, and their

own increased interaction riding on the growing reach of media, of course apart from increased purchasingpower. Ma rketers are seeking fresh cha llenges and coming in a big way to attr act this large and relat ively

untapped market. Newer variety of products specially designed for these markets, price cuts, lucrative

schemes, appealing advertisements and logistical support by way of e-choupals and rural malls have

affected rural consumers in ways difficult to measure. The present study aims at finding how marketers

efforts have influenced the rural mindset regarding the products, their own self and society. Influenced

by Sir Theodore Levitts dictum that marketing is a creation and delivery of standard of living no student

of marketing would feel satisfied unless and until s/he got a feel whether the efforts of marketers in terms

of products they manufacture are having a positive impact on society in general and consumer in

part icul ar. With this in mind the researchers tried to gauge the soc ial impac t of marke ting, with the

objective of studying the perception of rural consumers regarding the impact of consumer durable on their

life; impact of the advertisements on consumers attitude and brand choice; impact of marketers efforts

in building aspirations regarding future products and brands; and rural consumers perception regarding

the impact of marketing on society.

* Senior Lecturer, Haryana School of Business, Guru Jambheshwar University, Hisar, India.E-mail: [email protected]

** Reader, Haryana School of Business, Guru Jambheshwar University, Hisar, India.E-mail: [email protected]

Introduction

Marketing by a lay person is often seen as profit making gimmick and truly so if seenoutwardly, as it is the only managerial activity that brings revenue by translatingpotentialities into demand. Marketing has transformed the nature and dynamics ofbusiness so much that it has taken precedence over the process of production.Yet in the process, the economic value it adds, social change it brings, and psychologicalsatisfaction it creates is often overlooked. While converting peoples needs and desiresinto viable physical products and services and designing the strategy to sell them, it creates

a great impact on the mindset of its targeted consumers in terms of their perceptionregarding products and their own self.

The recent thrust of marketers into rural markets, triggered by saturating urbanmarkets and huge rural potential very much reflected in growing demand, has created anuproar into these markets. Rural market has been growing steadily over the years and is


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29Influence of Marketers Efforts on Rural Consumers and Their Mindset:


now bigger than the urban market for fast moving consumer goods (53% share of the total

market) (Balakrishna and Sidharth, 2004). The same can be noticed from the simple factthat the money available to spend on Fast Moving Consumer Goods (FMCG) products

by urban India is Rs. 49,500 cr as against is Rs. 63,500 cr in rural India (Prahalad, 2000;

and Kannan, 2001).

As literacy rate has improved rural consumers they have become more aware of productofferings, and the demand for products as well as the discriminatory nature of purchasers

have increased. Today they are equipped with the potent tool of information and seekmore knowledge about the product, its features and its uses.

Media exposure, education levels and many other factors come into play when wedescribe the reasons behind it. The rural consumers have matured enough to understand

the communication developed for the urban markets, especially with reference to FMCG

products. These people may not be literate in the true sense but they know what ishappening around the world because of communication explosion.

Marketers are forever seeking fresh challenges and exploring for more and more

clientele to be drawn into their sphere of influence. They are coming in a big way to attractthis large and relatively untapped market. Newer variety of products specially designed for

these markets, price cuts, lucrative schemes, appealing advertisements and logisticalsupport by way of e-choupals and rural malls have affected rural consumers in ways

difficult to measure. For example, An Indian farmer in jeans while going through dailychores is no more a surprise now. The recent upsurge in rural demand has its genesis in

peoples recognition of their otherwise latent needs brought to their consciousness largely

by the marketers efforts, and their own increased interaction riding on the growing reach

of media, of course apart from increased purchasing power.

So, rural India is not so rural now. At least, many of the clichs one associates with

rural like largely poor, illiterate, gullible, agrariandont hold good anymore. There arethe developed rural areas, the developing rural areas and the underdeveloped rural areas.

Same is true for Haryana. A new prosperity is sprouting in Haryana, with millions enteringthe pressure cooker and television-owning class and thousands becoming owners of

premium tractors and multiple sedans. According to the National Council for AppliedEconomic Research (Jain, 2004), rural dwellers in Haryana are nearly twice as likely to be

millionaires as city dwellers in Bangalore, the high technology hub. Multinationalcorporations, from Coca-Cola to Nokia, appear to be increasingly keen to enter in

Haryana Villages.

The present study aims at finding how marketers efforts have influenced rural mindset

regarding the products, their own self and society. Reminded of Sir Theodore Levitt onmarketing as its being a creation and delivery of standard of living, the researchers tried

to gauge into the social impact of marketing, with specific objectives in mind.

Literature Review

Due to globalization, economic liberalization, IT revolution, and improving infrastructure,middle class rural India today has more disposable income than urban India (Bhatia, 2000).

Prosperity has come to villages by way of shifts from agriculture to horticulture andfloriculture, culminating in exports, which in turn have influenced literacy rates, social


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The Icfai Journal of Brand Management, Vol. IV, No. 4, 200730

interaction patterns, mobility and exposure. Many companies would like to penetrate rural

India, for the simple reasons population (around 630 million live in semi-urban and ruralIndia) and loyalty, which become scarce phenomena in urban India as many substitutes

available at the disposal of end users. A rural consumer is brand loyal and understands

symbols better. The rural audience has matured enough to understand the communicationdeveloped for the urban markets, especially with reference to FMCG products

(Kannan, 2001). Apart from that villagers today are also very open to change, to try newthings, especially when they hold a promise. Today, the ultra bright shine of Colgate or

some other international brand of toothpaste holds more appeal than the traditionalmethods of cleaning teeth (Bhatia, 2000). The rural market is quite different in terms of

the price-value equation, product usage pattern and service coordinates because themeaning of convenience differs with market segments (Sivakumar, 2002).

Many companies take different routes to reach rural consumers, FMCG used the

weapon of sachets to modify and motivate rural consumers to try their products and it isreaping, as the recent survey clearly indicates that 80% of the companies revenue comesfrom small stock keeping units (Kannan, 2001). Sachets and miniature packs, like

shampoo sachets priced at Re. 1 and Rs. 2 or toothpaste at Rs. 10, have become the orderof the day in hinterland India needs of rural consumers who cannot buy larger sizes and

help improve market penetration (www.business-standard.com 2003), and provide anaffordable price for rural consumers who want to try new products. Various promotional

activities, which Philips plans to initiate include a series of on-ground activities such aspoint of sale material at retailers counters, road-shows, mobile vans with Philips products

on display and games, innovative tactics like advertising on inland letter forms or

postcards (a popular form of communication in rural areas) and sponsorship of localevents, among other things (Kaushik, 2002). Events like different festivals and different

games and sports competitions actually have a high participation level in the rural Indiaas other sources of entertainment have a very less in those areas. Different brands sponsor

different events and shows in villages, which are actually a cost-effective way to advertisewith the participatory strategy (Kanjilal et al., 2005). Advertisements touching the

emotions of the rural folks could drive a quantum jump in sales. Marketers would do wellto first understand this and then design and launch products accordingly (Thakker and

Bhagag, 2000).

While rural markets present a great opportunity to companies, they also impose majorchallenges. The unique features of rural India call for special attention and thus,

subsequent changes in the application of marketing concepts. If the Indian advertising

industry is to tap rural India, it has to be firmly grounded in rural perception, values and

traditions. It has to draw itself in local colors and modes of communication to make itrelevant to the rural masses. It has to gain the trust of the masses by undercutting existingdependency on conventional advertisement on the one hand and deceptive and

manipulative claims on the other hand (Kanjilal et al., 2005).

Another significant challenge for companies that market and sell products in rural

areas is to be aware of (and respond accordingly to) various social and cultural variationsthat exist throughout the many regions of India (Gupta, 2003). There is a need to

understand what appeals to urban customers may not be appropriate for their ruralcounterparts owing to their different lifestyle so one has to be sensitive to the customers


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cultural and socioeconomic environment. Buying decisions are highly influenced by social

customs, traditions and beliefs in the rural markets. Due to the increase in literacy rateand the penetration of conventional media, the perception and attitude of the rural

consumer is changing, moving towards proper consumerism. Not only this, attitude and

consumption habits of rural consumers are also changing and becoming more modern in

an urban sense (Kanjilal et al., 2005). Marketers need to understand the psyche of the rural

consumers and then act accordingly. The companies should not treat rural markets as a

dumping ground for lower end products designed for an urban audience. Instead they

should use their technological expertise to create specific products for the rural economy

(Thakker and Bhagag, 2000). The companies that have done this (e.g., Hindustan Levers

and Nestle) have benefited tremendously. With this background the present paper aims

at tracing as to how marketing has touched the lives of rural people, which specifically

have been touched very little by academia.

Objectives of the Study

Here are the objectives of the study.

Perception of rural consumers regarding the impact of consumer durable on

their life;

Impact of the advertisements on consumers attitude and brand choice.;

Impact of marketers efforts in building aspirations regarding future products and

brands; and

Rural consumers perception regarding the impact of marketing on society.

Methodology

The present research being exploratory-cum-descriptive in nature mainly depends upon

the primary sources of information, which have been collected, with the help of structured

questionnaire, and unstructured interview to uncover the deeper psyche wherever

required. For this purpose, the universe comprised the entire rural Haryana i.e., all the

villagers. Since, it was not feasible to study the entire Haryana; the researcher drew a

sample. To make the sample representative, researcher divided the entire Haryana into

four zones as divided by the Government of Haryana on the administrative basis.

Two districts from each zone were chosen at random and further two blocks were randomly

chosen from each district, which were divided into two categories i.e., near to the city and

far away-on the basis of distance where nearness is defined as less than 20 km. Thereafter

from each block two villages were selected at random, and from each village from 5 to 10%

households were surveyed. This totaled 500 respondents in all, which was collected during

the period ranging from March, 2003 to August, 2005. In the entire survey, 32 villages were

covered out of 16 blocks from 8 districts. Then the data have been analyzed with the help

of simple percentage techniques, ranking methods and, coefficient of correlation.

Since the present paper has been designed out of Doctoral Thesis and a research project which is still continuing,

so the information has been drawn out of questionnaire designed for the purpose.(the questions used in this paper

is given in Annexure 1).


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Discussion

Impact of Modern Consumer Durables on Life of People and Society

No student of marketing would have felt satisfied unless and until he or she gets a feel

whether the efforts of marketers in terms of products they manufacture are having a

positive impact on society in general and consumer in particular. The following analysis

brings out the clear picture.

Table 1 brings forth an interesting finding that respondents were almost unanimous

in their opinion regarding these products having a positive impact as 89.7% agreed that

these products have made life easy. 90.1% respondents believed that they have improved

the standard of living. About 79.4% believed that people have become happier and felt

important having bought these products. And 70% agreed that these products add social

status to their life. Where as 65.6% agreed for these products having an impact on

efficiency, 72.9% were having an opinion that these products have become a necessity in

modern time, and 84% respondents were of the view that these products have become

instrumental in the happiness of the family members. About 61.7% believed that theseproducts have brought positivity in life. For 56.6% respondents, buying these products

were like a dream coming true. And 59.8% respondents held the opinion that these

products are purchased out of requirement. However, there was sizeable percentage of

respondents believing (51.4%) that people purchase these products out of fashion, though

very little percentage of respondents agreed for it being a waste of money (11.6%) and only

18.5% agreed that they are being show-off. In totality it is very easy to draw out an

inference that these products have had a very high degree of positive impact on the lives

of respondents with a very little exception.

Table 1: Impact of Consumer Durables on the Life of People and Society

Impact of Consumer Durables Disagree Agree

Products made life easy 15 (3.2) 417 (89.7)

Improved standard of living 16 (3.4) 419 (90.1)

Required 53 (11.4) 278 (59.8)

Products have become a fashion 118 (25.4) 239 (51.4)

Made people feel important and happy 20 (4.3) 369 (79.4)

Add to social status 54 (11.6) 326 (70.0)

Improve efficiency 25 (5.4) 305 (65.6)

Necessity in modern time 19 (4.1) 339 (72.9)

Family members happiness 07 (1.5) 391 (84.0)

Dream come true 93 (20.0) 263 (56.6)

Brought positivism in life 37 (8.0) 287 (61.7)

Waste of money 343 (73.7) 54 (11.6)

Show-off 233 (50.1) 86 (18.5)

Note: Figures in parentheses denote percentages.

Source: Primary Survey.


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Table 2: Willingness to Purchase Products

on Lowered PriceProducts Frequency Percent

Air-conditioner 05 01.10

Car 80 17.20

CD player 01 00.22

Computer 23 04.95

Color TV 53 11.40

DVD player 01 00.22

Fan 01 00.22

Invertors 01 00.22

Laptop 02 00.43

LPG 03 00.65

Mobile phone 08 01.72

Refrigerator 56 12.00

Tractor 01 00.22

Truck 01 00.22

Two-wheeler 63 13.55

VCD player 01 00.22

Washing machine 35 07.53

Cant say 130 28.00

Total 465 100.00

Source: Primary Data.

To look into the future, respondents

were asked about the products and brandsthey were looking forward to buy in near

future if the prices were lowered.

Furthermore, they were asked what other

products they were planning to buy and

what brands are under consideration in

near future. Looking at the Tables 2 and 3

it can be inferred out as to how rural

consumers were looking forward to future

and what types of products they were

aspiring for and what brands were in their

good books.

Looking at Tables 2 and 3, it can besaid that rural consumers were aspiring for

and looking forward to buy variety of

products and brands if somehow they can

get them on lowered prices. The list

included a variety of products from high

end sophisticated products like laptops,

cars, air-conditioners, computers, and

DVD players to family utility productslike washing machines, two-wheelers, and

refrigerators.

Leading the list of products aspired forwas car with 17.2% of respondents looking forward to buy it. And among the brands of

cars, Maruti was the leading with 57 respondents (12% in all), followed by Tata Indica with

11 respondents (2.4%) and Santro with 4 respondents (0.9%). Next in the wish list was

two-wheeler with 13.5% respondents and Hero Honda lead among the brands with 36

respondents (8% of all respondents) followed by TVS and Bajaj with 9 and 8 respondents

respectively. Refrigerator was third on the list with 12% respondents and then Color TV

(11.4%), and washing machine (7.5%). Among the brands for these goods, LG was the

most favorite with 83 respondents (18%), followed by Godrej with 11 respondents,

Samsung with 10, Onida with 4, Kelvinator with 3, Akai with 2 and Electrolux, Panasonic

and Philips with 1 respondent each.

A sizeable number of respondents (5%) were aspiring to buy computers of brands likeHP Compaq, IBM and Wipro in near future and a few more were looking for Mobile Phone

of Nokia, Air-Conditioner, laptop, DVD and CD player, etc. High utility products like

truck, tractor, and invertors were also in reckoning of rural consumers.

In total, there were 28% respondents who didnt respond to this query, remaining 72%

were looking forward to buy one or the other product in near future. This quiteconclusively speaks that rural consumers were not only aware of multiple sophisticated

products and brands but were also looking forward to buy these products if prices werelowered.


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Table 3: Brands Consumer Willing to Purchase on Lowered Price

Product Category Brands Models of Brand Frequency PercentCell Phones Nokia (07) Nokia 6600 1 0.22

Nokia 6 1.30

Color TV Akai 2 0.43

Any brand 18 3.90

BPL 6 1.30

Onida 4 0.90

Panasonic 1 0.22

Philips 1 0.22

Sansui 1 0.22

Sony 2 0.43

T-series 1 0.22

Two-Wheeler Bajaj (08) Bajaj CT 100 1 0.22

Bajaj Boxer 3 0.65Bajaj Pulsar 4 0.90

Bullet Bullet Electra 4 0.90

Hero-Honda (36) CD 100 23 4.95

Ambition 1 0.22

CBZ 1 0.22

Splendor 11 2.36

LML Freedom 2 0.43

TVS (09) TVS 4 0.90

Victor 5 1.10

Refrigerator Electrolux 1 0.22

Godrej 11 2.36

Kelvinator 3 0.65

Any brand refrigerator 4 0.90LG* 83 17.84

Samsung* 10 2.10

Videocon* 24 5.20

Computer HP compaq 7 1.50

IBM computer 2 0.43

Computer with Intel 3 0.64

Wipro 1 0.22

Car Tata Indica 11 2.40

Maruti Suzuki (57) Maruti 800 46 9.90

Alto 7 1.50

Omani Van 1 0.22

Zen 3 0.65

Hyundai Santro 4 0.90

Su-cam 1 0.22

Farm Track 1 0.22

Titan 1 0.22

Cant Say** 139 29.90

Total 465 100.00

Note: * Includes refrigerators, color TVs and washing machines;** The difference in frequency of products and brands preferred is due to no preference for brands in

few cases.Source: Primary Survey.


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Table 4 tells that in all 69.5% respondents were

planning to buy consumer durable products in nearfuture. This speaks of level of aspiration among

rural consumers and existence of a huge market

which is unfolding itself with each passing day. It

indicates good days in store for marketers and

economy.

If anything to go by the studies of the Center for

Monitoring Indian Economy (CMIE) significant

rise can be noticed in sales of urban kitchen gadgets

such as refrigerators, mixer-grinders and pressure

cookers in rural market. The rural market accounts

for half of the total market for TV, fan, pressurecooker, bicycle, washing soap, blades, tea, salt

and toothpowder. Television is the most sought

after consumer item in rural India followed

by two-wheelers. Gradually, they are moving to

small cars like Maruti and thats what Maruti is

trying to exploit (Kaura and Choudhury, 2003).

Table 5 studies the future plans of respondents

regarding products they were planning to buy. In all

70% respondents were planning to buy some

consumer durables in near future, speaking big on

aspirations of rural peoples. The results are not

much different from our earlier analysis of Tables 2

and 3 regarding respondents willingness to buy on

lowered price. Car was the most aspired for product

that rural consumers were found planning to buy in

near future (16.34% respondents) followed

by refrigerator (11.4%). Color TV (10.3%),

Two-wheeler (9.9%) and Washing Machine (9.0%).

Computers (4.5% respondents) and Mobile Phones

(2.1%) were other important products that rural

consumers were looking forward to in a big way.

Apart from them Tractors, Invertors and VCD

players were other utility products that rural consumers are planning for. So, rural marketsare likely to unfold in a big way.

It can be ascertained from the Table 6 that rural consumers were going to buy well

established brands of durable products. In case of car, Maruti was their first preference followed

by Hero-Honda as far as bikes were concerned. Regarding mobile phones, it seems to be the

Nokias monopoly. LG and Samsung are going to enjoy in the TV market in the days to come,

whereas, Godrej and Videocon were likely to be the choice for refrigerators. So, overall it can

be inferred that besides well-established brands rural consumers will not be hesitating in

acquiring some newly emerging brands, like LG, Samsung, and Electrolux.

Table 5: Product Planningto Buy in Near Future*

Products Frequency Percent

Car 76 16.34

CD player 3 0.64

Computer 21 4.52

CTV 48 10.32

Diesel engine 1 0.22

Jeep 1 0.22

Invertors 5 1.10

Laptop 1 0.22

LPG 3 0.64

Mobile phone 10 2.10

Refrigerator 53 11.40

Tractor 13 2.80

Truck 1 0.22

Two-wheeler 46 9.90

VCD player 1 0.22


Cant say 140 30.00

Total 465 100.00

Note: * Near future here refers to as within

six months.


Table 4: Plans to Purchase

Consumer Durables in Near Future*Response Frequency Percent

Yes 323 69.5

No 142 30.5

Total 465 100.0

Note: * Near future here refers to as within

six months.



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Table 6: Brand Planning to Buy in Near Future

Products Brands Models of Brand Frequency PercentCar** (72) Maruti Suzuki (48) Maruti 800 40 8.60

Alto 6 1.30

Zen 2 0.43

Tata Indica 16 3.40

Hyundai Santro 6 1.30

Two-Wheeler** Bajaj (04) Bajaj CT 100 2 0.43

(41) Boxer 1 0.22

Pulsar 1 0.22

Bullet Electra 4 0.90

LML Freedom 1 0.22

TVS (06) TVS 1 0.22

Victor 5 1.10

Hero-Honda (26) CD 100 16 3.50Splendor 10 2.10

Color TVs** BPL 5 1.10

Onida 1 0.22

Panasonic 1 0.22

Sony 4 0.90

Refrigerator** Electrolux 1 0.22

Godrej 10 2.10

Kelvinator 4 0.90

Whirlpool 5 1.10

LG* 76 16.30

Samsung* 12 2.60

Videocon* 22 4.70

Computer HP Compaq 7 1.50IBM 2 0.43

Computer with Intel 1 0.22

Utility Vehicle Mahendra (07) Tractor 1 0.22

Mahendra 265 4 0.90

Scorpio 2 0.43

Cell Phone Nokia (09) Any model 7 1.50

6100 1 0.22

6600 1 0.22

Eicher Tractor 1 0.22

Farm Track 9 1.94

Senko 1 0.22

Su-cam 1 0.22

Cant Say 175 37.63

Total 465 100.00

Note: * Includes refrigerators, color TVs and washing machines;

** The difference in frequency of products and brands preferred is due to no preference for brands in

few cases.


Impact of the Advertisements on Consumers Attitude and Brand Choice

Various researchers (Bansal and Easwaran, 2004) have discovered that the rural audience

identifies more with colors, numbers, and visuals of animals all woven together in loud


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colorful messages. These findings appear to be supported by the high recall levels enjoyed

by brands like Lifebuoy (popularly known as the lal sabun), 555, and Monkey brand toothpowder. A red soap cake represents Hindustan Levers Lifebuoy soap, an image of

lightening on boxes of Rin detergent suggests a certain level of quality and value to

illiterate rural customers. Asian Paints famous mascot Gattu is one of the most famous

mascots in the Indian Marketing history.

Table 7 tries to find out how advertisements have influenced the attitude and thinking

of ruralities as regard to their purchasing behavior. A huge proportion of respondents

agreed that advertisements add to the knowledge about new products and brands. Yet

another large proportion (88.4%) agreed to advertisement being a motivational force in

trying new products; 77% respondents believed that advertisement induces them into

buying the products; 72.3% respondents had the view that advertisements affect their

attitude towards the product, its importance and usage; and 69.9% agreed that

advertisement increase their aspiration. It is quite clear that impact of advertisement goes

much beyond creating awareness about brands and products and converting it into sales.

It is a vehicle of change and also a source of motivation. Ads affect the way consumer

thinks about the product, brand, and his/her relationship with them.

Table 8 describes about the brands recalled by the rural respondents on the basis of

advertisements. It can be seen from the Table 8 that Fair & Lovely was the most recalled

advertisement (specially the ad-campaign, Gora Banaye Kuchh Hee Hafton Mein) as 28

respondents recalled the advertisement of the brand, Fair & Lovely. The other highly

recalled ads were of the brands like Colgate, Lux, Nirma, Ponds, Coca-Cola, Lifebuoy,

Bajaj, Hero Honda, LG, LML Freedom, Nokia, Fevicol, Maruti, Reliance Infocom and Liril.

Apart from it, there were a variety of advertisements recalled for varied reasons

advertisement of Pulse-Polio was recalled by four respondents for its social concern and

beautiful presentation, Maruti (six respondents) was recalled for their aspiration to buy

it, and Fevicol because of its funny and entertaining presentation.

When any information regarding new product is presented in a creative and effective

manner, it creates an everlasting impression on the consumers mind and may even alter

Table7: Impact of Advertisement on Rural Consumers

Impact of Advertisement Agree Neutral Disagree

Advertisement induces to buy products 358(77) 46(9.9) 61(13.1)

Motivates to try new products 411(88.4) 33(7.1) 21(4.5)

Advertisement increases the aspiration 325(69.9) 105(22.6) 35(7.5)

Affects the attitude towards the products 336(72.3) 82(17.6) 47(10.1)

and their importance

Adds to the knowledge about new products 452(97.2) 11(2.4) 02(0.4)

and brands



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Table 8: Recall of Advertisement

Ads Frequency Percent Ads Frequency PercentFair & Lovely 28 6.0 Good Knight 2 0.4

Colgate 20 4.3 Nycil 2 0.4

Lux 18 3.9 Sony 2 0.4

Ponds 16 3.5 Sunsilk 2 0.4

Coca-Cola 16 3.4 Tata Indica 2 0.4

Nirma 16 3.6 TVS Victor 2 0.4

Hero Honda 13 2.7 Vatika 2 0.4

Lifebuoy 12 2.5 Babool 1 0.2

Bajaj 10 2.1 Aiwa 1 0.2

LG 9 1.9 Alpenlebie 1 0.2

Fevicol 8 1.7 Bonds-ICICI 1 0.2

LML Freedom 8 1.7 Cibaca 1 0.2

Nokia 8 1.7 Denim 1 0.2

Pepsi 7 1.5 Dove Soap 1 0.2

Bullet 6 1.3 Elle 18 1 0.2

Close-Up 6 1.3 Garnier 1 0.2

Maruti 6 1.2 Harpic 1 0.2

Reliance Mobile 6 1.3 Hazmola 1 0.2

Rexona Deo 6 1.3 Head & Shoulders 1 0.2

Dabar Chyawanprash 5 1.1 Hero Cycle 1 0.2

Liril 5 1.1 Intel Pentium 1 0.2

Ayur Shampoo 4 0.9 Kotak Mahendra

Life Insurance 1 0.2

Dettol 4 0.8 Lakme 1 0.2

Hair Care 4 0.9 LIC 1 0.2

Kurkure 4 0.9 Mak-lubricant 1 0.2

Pulse Polio 4 0.9 Mint-O fresh 1 0.2

Rajdoot 4 0.9 Navratan Hair Oil 1 0.2

Texla 4 0.9 Pears soap 1 0.2

Boro Plus 3 0.6 Raymonds 1 0.2

Dermicool 3 0.6 Surf excel 1 0.2

Electrolux 3 0.6 Thums Up 1 0.2

Idea Mobile 3 0.6 Tide 1 0.2

Pepsodent 3 0.6 Ujjala 1 0.2

Samsung 3 0.6 Vico Turmeric 1 0.2

Santro 3 0.6 Videocon TV 1 0.2

Britannia 50-50 2 0.4 Vim Bar 1 0.2

Clinic All Clear 2 0.4 VIP Suitcase 1 0.2

Cant say 139 30.0 Total 465 100.0



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his/her perception of what he needs. Table 9 tells that 10.1% respondents remembered the

ad because it was appealing for them to purchase. The second next important reason toremember was the satisfaction they got from the product they had purchased. Good

presentation (7.5%) came out to be the third reason for remembering the ads followed by

punch line (7.3% respondents), Brand ambassador (6.7%), entertainment (5.8%),

repetition (5.6%) and product usefulness (4.7%) were other important reasons. If we

reassess the entire table it could very well be said that product related reason most vital

factor that made rural people recall the advertisements. So product and its usefulness

related aspects are more likely to be remembered, because they are new users and product

usefulness is more likely to be a reason for going for it rather than brand ambassador or

anything else.

Table 9: Reason of Advertisement Recall

Opinion Frequency Percent

Entertainment 27 5.8

Brand ambassador 31 6.7

Product satisfaction 44 9.5

Repetition 26 5.6

Appealing to purchase 47 10.1

Want to purchase 29 6.2

Good presentations and models 35 7.5

Punch line 34 7.3

Informative 6 1.3

Product usefulness 22 4.7

Related to cricket 3 0.6

Total 304 65.4System 161 34.6

Total 465 100.0


Impact of Marketers Efforts on Building Aspirations

Advertisers have attempted to improve the sales of products by changing purchasing

behavior, which involves changing traditional values and creating desires for new

products.

Table 10 brings out the products that respondents thought of purchasing after gettinginfluenced from the advertisements. In total 202 respondents gave their opinion onhaving thought of purchasing a product. It included a variety of products exhibiting the

influence of advertisement on their desire and decision to purchase. Motor cycle tops thelist with 17.37% respondents, followed by soaps (14.85%), Color TV (13.36%), Face cream(10.89%), Mobile phone (6.93%), Shampoo (5.94%) and Car (4.45%). Apart from themthere were other products like deodorants, computer, hair conditioner, washing machineand tractor.

Impact of advertisements of products like face-cream, soaps, shampoo, talcum powder,hair conditioner, deodorants indicates an appeal on emotions of the consumer sads.Ads of motorcycle, cars, color TV, computer, etc. exhibit the utility impact of those

products to encash the rising aspirations of the consumers.


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Table 10: Products thought to be Purchased After Watching Ad

Products Frequency PercentMotorcycle 35 17.33

Soap 30 14.85

Color TV 27 13.37

Cream 23 11.39

Powder 15 7.43

Mobile 14 6.93

Shampoo 12 5.94

Car 10 4.95

Hair conditioner 4 1.98

Watch 3 1.49

Hair oil 3 1.49

Computer 3 1.49

Deo 3 1.49

Air conditioner 2 0.99

Cold drink 2 0.99

Toothpaste 2 0.99

Tractor 2 0.99


Body lotion 1 0.50

Chyawanprash 1 0.50

Jeans 1 0.50Lip guard 1 0.50

Mint 1 0.50

Mosquito mat 1 0.50

Pain reliever cream 1 0.50

Scooter 1 0.50

Shoe polish 1 0.50

Utility vehicle 1 0.50

Total 202 100.00


As per Table 11 the advertisements of LG have been able to make maximum impact

as 20 respondents thought of buying LG products after watching its advertisementfollowed by Fair & Lovely with 19 respondents. Hero Honda (15 respondents),

Ponds (14 respondents), Lux (12), Dettol (nine respondents), Bullet and Reliance Mobile

Services (seven respondents each), and Nokia (six respondents) were other major brands

where advertisement made viewer think of buying these products. Apart from them, there

were a variety of other brands where advertisement casta a spell on respondents.

They included Clinic All Clear, Levon, Maruti, Rajdoot, Nycil powder, Samsung, Santro,

Sony, Titan and TVS Victor. There were also a few sophisticated, high end and relatively

newer brands in rural areas which influenced rural consumers. The brands were Dove,


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Table 12: Product Purchased or Not

Opinion Frequency Percent

Yes 142 70.3

No 60 29.7

Total 202 100.0


Garnier, Johnson & Johnson, Alpenlebie and Fa,etc. This clearly indicates that rural consumerswere aware of a variety of brands inclusive of newerand high end products, and clearly speaks of risingaspirations and awareness level. It is for the

marketers to make a success out of it.

Table 12 gives a very clear picture as regards to

the impact of advertisement on rural consumers. Out of 202 respondents who admitted

Table 11: Brands of the Product thought to be Purchased After Watching Ad

Brand Frequency Percent Brand Frequency Percent

Babool 1 0.5 Alpenlebie 1 0.5

BSNL Mobile Services 1 0.5 Bajaj 2 1.0

Cherry Shoe Polish 1 0.5 Dermicool 2 1.0

Close-Up 1 0.5 Dove 2 1.0

Coca-Cola 1 0.5 LML Freedom 2 1.0

Colgate 1 0.5 Mahendra 2 1.0

Electrolux 1 0.5 Micro Tech 2 1.0

Fa 1 0.5 Pears 2 1.0

Farm Track 1 0.5 Sony 2 1.0

Head & Shoulders 1 0.5 Lifebuoy 3 1.5

Garnier 1 0.5 Santro 3 1.5

Godrej No. 1 1 0.5 Titan 3 1.5

Good Knight 1 0.5 Ayur 4 2.0

IBM 1 0.5 Clinic All Clear 4 2.0

J&J 1 0.5 Levon Silk 4 2.0

Liril 1 0.5 Nycil Powder 4 2.0

Mint-O Fresh 1 0.5 TVS 4 2.0

Moov 1 0.5 Maruti 5 2.5

Navrattan tel 1 0.5 Nokia 6 3.0

Nirma 1 0.5 Rajdoot 6 3.0

Onida 1 0.5 Samsung 6 3.0

Panteen 1 0.5 Bullet Electra 7 3.5

Rexona 1 0.5 Reliance Mob Services 7 3.5

Rough &Toughs 1 0.5 Dettol 9 4.5

Sona Chandi 1 0.5 Lux 12 6.0

Sunsilk 1 0.5 Ponds 14 7.0

Tata Indica 1 0.5 Hero Honda 15 7.5

Thums Up 1 0.5 Fair & Lovely 19 9.0

Vatica 1 0.5 LG 20 10.0

Videocon 1 0.5 Total 202 100.0



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having got influenced from advertisements, 142 (70.3%) actually purchased the product.

This speaks very high on success ratio of advertisement in rural markets of Haryana.The Table 13 reveals that higher recalled ads were those ads which got converted into

purchase decision. As Fair & Lovely ad was recalled by 28 respondents (maximum) its

consumption frequency was the highest. Similarly, Colgate ad was recalled by 20respondents which had 252 respondents consuming this brand. Lux was recalled by 18

respondents against 201 actually using it. And Nirma 17 against 79, Ponds 15 against 112,Lifebuoy 13 against 79, Bajaj 11 against 130. Hero Honda nine against 60 and Close-Up

6 and 68 recalled the concerned products. So, it seems that ads which got into memory

of respondents are more likely to get converted into purchase decisions. This is also

indicated by the coefficient of correlation value (r = 0.819).

Table 13: Ads Recalled and Brand Consumption

Brand of Products Consumed Frequency Ad Recalled of that Brand

Fair & lovely 260 28

Colgate 252 20

Lux 201 18

Nirma 79 17

Ponds 112 15

Lifebuoy 79 13

Bajaj 130 11

Hero Honda 124 10

LG 60 09

Close-Up 68 06Note: r = 0.819.


Impact of Advertisements on Consumers Psyche

Body image and self expression are the major areas targeted by advertisers.

For example, Hindustan Lever Limited (HLL) promoted Fair & Lovely skin whiteningcream by linking dark skin color and career prospects. This advertising blends the old and

new, promotion of careers for women, but also the association of success with pale skin.Due to the increase in literacy rates and the penetration of conventional media, the

perception and attitude of the rural consumer is changing, moving towards newconsumerism. Attitude and consumption habits of rural consumers are also changing and

becoming more modern in an urban sense.Table 14 tries to find out as to how advertisements have influenced the attitude and

thinking of rural consumers regarding to their purchasing behavior also tries to go deeperinto finding the types of influence and impact marketing has had on rural consumers.

A large number of respondents (19.8%) admitted marketing having made them to realizethe importance of products and 18.5% admitted marketing influencing them to decide the

products to buy. Another important impact on rural consumers was that 13.1% respondents

started using branded products got influenced by marketing and marketers efforts. A sizeable

proportion of respondents quite interestingly presented their views that using newer


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Table 14: Impact of Marketing and Ads on Respondents

Thinking Regarding Products and their ImportanceOpinion Frequency Percent

Couldnt answere 26 8.3

Importance of product 62 19.8

Want to buy that product 58 18.5

Self-consciousness 17 5.4

Consider these products as necessary 19 6.1

Becoming part of society 40 12.8

Use branded products now 41 13.1

Started using these products 35 11.2

Change in thoughts regarding women

and girls working out 15 4.8Total 313 67.3

Cant say 152 32.7

Grand Total 465 100.0


products and enjoying the benefits of modern gadgets had given them a feel of being a part

of wider set of society. On the same lines 11.2% of respondents agreed to having started using

these products. And 5.4% talked of increased self-consciousness owing to the marketing and

advertising. Quite surprisingly 4.8% even stated a change in their attitude towards working

women and college going girls. Social thinkers, look into please!

So, a large proportion (67.3%) of respondents agreed to have been influenced by

marketing on one aspect or other which by any means is a healthy and appreciable

scenario for marketers. And seeing the positivism of impacts is a pleasant surprise for

social thinkers as well.

Though a big part of the respondents was not able to comment but this neverthelesscannot be taken against marketing and markets efforts.

Almost all respondents agreed that advertisement add knowledge about new products

and brands (97.2%). A large proportion (88.4%) assessed advertisement as a motivationalforce in trying new products; 77% respondents believed that advertisement induces them

into buying the products. And 72.3% respondents had the view that advertisement affectstheir attitude towards the product, its importance, and usage. 69.9% agreed that

advertisement increases their aspiration.It is quite clear that impact of advertisement goes much beyond creating awareness

about brands and products and it converts into sales. It is a vehicle of change and also

source of inspiration. Ads affect the way the consumer think about the product, brand and

change his/her relationship with the products and brands.

Rural Consumers Perception Regarding the Impact of Marketing on Society

An attempt has been made here to study how entire marketing efforts of a marketer affect

the individual and society. The effect is not confined to mere sale of products and it goes


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beyond that. It inspires the people and changes their way through which they see

themselves and others. Though it would be an enormous task to study each in detail, anover view has been attempted in Table 16.

In Table 16 an attempt has been made to summarize the positive impact that modern

marketing has had on society in view of respondents. It shows that 39.4 % respondents

believed that modern marketing has been able to create awareness in society about various

products, brands, their usage and also about the world around them in terms of modern

products, new fashion, changing lifestyle, etc. About 19.4% held the opinion that it has

increased the level of aspiration in society. People are wishing to own more products and

ready to make efforts for that. 8% believed that it has made available better products and

more choices to rural people, which earlier was missing. 6% believed that it has increased

the competition among the marketers thereby making quality products available atcheaper price. 5.8% said that marketing has increased the reach of various products to

rural area which were not available earlier.

Table 16: Perception of the Rural Consumers Regarding Positive Impactof Marketing on Society

Types of Impact Frequency Percent

No Impact 26 5.6

Increased aspirations 90 19.4

Awareness 183 39.4

Self-consciousness 10 2.2

Gap reduced between urban and rural 13 2.8

Competition among marketers 28 6.0

Reach of products in rural area 27 5.8

Increased standard of living 23 4.9

Better quality products and more choice 37 8.0

Gives the confidence to buy the product 8 1.7

Openness in thoughts and attitude 20 4.3

Total 465 100.0


Table 15: Positive Impact of Advertisement on Consumers

Opinion Agree Neutral DisagreeAds motivate to buy 411 (88.4) 33 (7.1) 21 (4.5)

Ads induce to buy 358 (77.0) 46 (9.9) 61 (13.1)

Ads increase the aspiration 325 (69.9) 105 (22.6) 35 (7.5)

Ads affect the attitude towards the importance

of the product 336 (72.3) 82 (17.6) 47 (10.1)

Ads add knowledge about new products

and brands 452 (97.2) 11 (2.4) 2 (0.4)

Note: Figures in Parantheses Denote Percentage.



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Apart from them a few very good impacts have been observed by the respondents. It really

it helped to enhance the standard of living by providing utility products and comforts(4.9% respondents); and reduce the gap between urban and rural areas as same type of

brands and products are now available in rural area also (2.8%). 4.3% respondents creditedthe marketing for bringing openness in thoughts and attitudes whereas 2.2% attributed

marketing for a general rise in self-consciousness among people and the confidence to trybuying out these products.

Table 17 attempts to figure out how respondents see the harmful impact of marketers

efforts on people and society, specially with reference to rural society. It shows that 15.1%

respondents were not able to figure out the negative impact conclusively and were of theview that it had no negative impact as such. Highest number of respondents (32.3%)

feared that marketers efforts are contributing to sexual exposure and sexually explicitbehavior among people, specially youngsters. This according to them was leading to

unnecessary increase in sexual desires and unwanted behavior. And 15.1% respondentssaid that marketers are adding to the confusion in the mind of consumer as regard to

which product of which brand should they buy; which is a quality product and whetherthey do really require the product or are just being lured of it. 7.7% had the view that it

is leading people to unwanted purchase and unnecessary spending which they can avoid.

Table 17: Perception of the Rural Consumers Regarding Negative Impactof Modern Marketing

Types of Impact Frequency Percent

Sexual exposure 150 32.3

Creating confusion 70 15.1

Increase spending unnecessarily 36 7.7

Leads to competitive purchasing 26 5.6

Increased fashion 15 3.2

Wastage of time 15 3.2

Inferiority complex among non-users 27 5.8

Creates false image of products 26 5.6

Negative impact of liquor and cigarettes 10 2.2

No impact 70 15.1

Couldnt answer 20 4.2

Total 465 100.0


About 5.8% respondents putforth that marketers are somehow creating a feeling ofinferiority complex among those who were not able to buy these products. This inability

to purchase the products is making people especially youngsters, voking them toundesirable reactions and behaviors. 5.6% believed that it is creating a false image of

products and thereby inducing people into its purchase and same number of respondentsblame modern marketing for unnecessary and competitive purchase. 3.2% respondents

blamed it for increasing fashion and of wastage of time in watching ads, whereas 2.8%

respondents raised their apprehension of the influence of advertisements of liquor,

cigarettes and tobacco, etc. on youngsters.


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Conclusion

Concluding the writeup it can be inferred that marketers efforts have gone well beyondselling the products and services. They have been able to change the way how consumers

look upon the products and brands thereby building an association which goes to an

extent of giving rural consumers an expression. Majority respondents believe that

marketers efforts made them understand the importance of the product, prepared to buy

the branded products and making these products a part of society and turning these

products into a necessity. Rural consumers believe that modern marketing has been able

to create awareness in society about various products, brands, and their usage and the

world around them in terms of the modern products, new fashion, changing lifestyle, etc.

It is nice to observe that rural consumers are aspiring for and looking forward to buy

a variety of products and brands in near future. The list includes from high end

sophisticated products like laptops, cars, air-conditioners, computers and DVD players tomiddle level products such as washing machines, two-wheelers, refrigerators, etc. Any

student of marketing following rural markets of India would be enthused to know that a

sizeable number of respondents (5%) were even aspiring to buy Computers of brands like

HP Compaq, IBM and Wipro in near future. This speaks of level of aspiration among rural

consumers and existence of a huge market which is unfolding itself with each passing day.

Good days for marketers and economy are ahead.

This would involve more intensive personal selling efforts compared to urban markets.

Marketers must refrain from seeing rural market as a mere extension of urban market and

designing goods for the urban markets and subsequently pushing them in the rural areas.

What marketers need to understand is that since the dynamics of rural markets are

somewhat different from urban markets, so the marketing strategies should also be

specifically aimed and well targeted. Marketers need to understand the psyche of the rural

consumers and then act accordingly. Along with the cultural dynamics, the needs and

latent feelings of the rural people also need to be well understood. To effectively tap the

rural market a brand must associate it with the same things the rural folks do, yet giving

them a feel of modern outlook and expression. The study has clearly brought out the

quantum of impact advertisement makes on rural consumers. So the attempt was likely

to succeed; only the right approach was required.

It has been noticed that below-the-line communication like alternative and

innovative ways of communication plays a key role in building reassurance and trust, and

so it is vital. Rural consumers have a very high level of ethos so all the care should be

taken not to hurt them in any form of advertising. The brand has to be made relevant

by understanding local needs.

Thus, looking at the challenges and the opportunities which rural market in Haryana

offer to the marketers it can be said that the future is very promising for those who can

understand the dynamics of rural markets and exploit them to the mutual advantage.

A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets

is required, so they can successfully impress on the rural consumers of Haryana. Well said

Sir Theodore Levitt, Marketing is creation and delivery of standard of living.


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Reference # 25J-2007-12-03-01

(Contd...)

Annexure 1Questionnaire

1. Is there any consumer durable which you would like to buy if its price is lowered?

Products Brands

i)

ii)

iii)

2. Are you planning to buy any consumer durable in near future?

i) Yes ii) No

If yes please give details regarding products and brands

Product planning to buy Brands under consideration

i)

ii)

iii)


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Annexure 1

3. What do you think about the following statements? (please tick) :

Agree Neutral Disagree

i) These products have made life easy.

ii) These products have improved the standard

of living

iii) People are purchasing these products because

these are really required

iv) People are buying because it has become a

fashion to buy themv) Having these products have made/feel people

important and happy

vi) These products really adds to the social status

of people

vii) These products helps in improving efficiency

viii) These products have becomes necessity

in modern times

ix) These products are a waste of money

x) These products are mere items of show off

xi) Your family members are happy/likely

to become happier having these products

xii) Buying these products is a dream/dreams

come true

xiii) Have brought positivism life

xiv) Your image and status in society improved/

will improve after buying these products

4. Mention few of the advertisements that you rememberAdvertisements Reasons (if any)

i) ____________________ ____________________

ii) ____________________ ____________________

iii)____________________ ____________________

(Contd...)

(...contd)


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5. Has it ever happened that after watching an advertisement you thought of buyingthe product? If yes, mention the products and advertisements

Product Advertisements

i)____________________ ____________________

ii)____________________ ____________________

6. Did you buy that product?

Yes No

7. What do think about the impact of advertisements?

Agree Neutral Disagree

i) Advertisements induces you to buy products

ii) Advertisements motivates you to try

new products

iii) Advertisements increases the aspirations

iv) Advertisements affects attitude regarding

products and their importance etc.

v) Advertisements adds to the knowledge about

new products and brands

8. Have advertisements had any impact on your thinking regarding social issues?

___________________________________________________________________

___________________________________________________________________

9. Have the advertisement and marketing effects of marketing changed your thoughtsregarding products and their importance to you

Yes No

If yes could you mention some of the changed thoughts?

___________________________________________________________________

10. What do you think is the impact of modern marketing on you and society?

Positive Impact

___________________________________________________________________

___________________________________________________________________

Negative Impact

___________________________________________________________________

___________________________________________________________________

(...contd)


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marketing effect on rural consumers.pdf

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