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what are the factors influencing rural consumer behavior?

ANS:- The various factors that affect buying behaviour of in rural India are: 1) Environment of the consumer:- the environment or the surroundings in which the consumer leaves has a very strong influence on the buyer behavior. E.g.:electrification, water supply effects demand for durables. 2) Geographic influence:- the geographic location in which the rural consumer is located also speaks about the thought process of the consumer. For instance, villages in south India accept technology quicker than in other parts of india.Thus, HMT sells more winding watches in the north while they sell more quartz watches in the south. 3) Influence of occupation:- The land owners and service can buy more of category2 & category3 durables than agricultural laborers. 4) Place of purchase:Companys need to access the influence of retailer on both

consumers at village shops. 5) Creative use of product:- The study of product and provides indicators to the company on the need for education and also for new product ideas. E.g.:- godrej hair dye being used as a pain to the color horns of ox. Washing machine being used for making lassie. 6) Brand preference and loyalty:- the people in rural market will not give preference for brand products but they give importance for loyalty of the product. 80% of the sale is branded items in 16 product category.
Earlier, Mirc Electronics has entered into a venture with Prasar Bharati to promote DD Direct Plus services through Igo, its television brand for the rural markets. DD Direct Plus boasts of over 2.3 million subscribers as opposed to 2 million subscribers for Dish TV and 0.5 million subscribers for Tata Sky. At present, DTH players provide promotional offers with the purchase of colour televisions. A direct-to-home service provider said, Consumers prefer a separate television and a box at present. But future decisions will depend on the customer and market requirement. Currently, the feedback indicates that instead of buying new television consumers prefer a DTH service. But they subscribe to DTH service while buying a new television.

The differing marketing strategies According to Sanjay Kumar, the marketing strategies of Onida and Igo are very different. The right product is a big part of a successful marketing strategy. The products should be suitable for the market you are targeting. Igo products have been developed keeping the rural markets in mind, where out of 7 lakh villages, around 4 lakh villages either don't have electricity or don't have proper electrical suppliants. So, we cannot sell them products that require electricity.

Onida is developing LED streetlights and other lighting fixtures which will replace normal electrical light fittings like tube lights, bulbs, etc, that are used in homes and commercial areas. Igo, on the other hand, is developing LED lanterns and flashlights, which are back-up lighting products; they will run on stored electricity in batteries (dry cells, rechargeable cells and solar rechargeable cells). In other words, they are the inverters of rural areas. Igo products, predominantly sold in rural areas, aim to replace kerosene lamps. Another major difference between urban and rural marketing is the price factor. In rural areas, an expensive product will not move, no matter how good your marketing is. The prices of the Onida products are more than Rs 1,000 but Igo's products start from Rs 70, informs Sanjay Kumar. The promotion of products for urban and rural areas is another differentiating factor. For Igo products we use wall paintings, the vernacular press and Doordarshan. We have already started distributing leaflets and have participated in rural melas, he adds. While Igo is aiming to have a pan-India presence through its 33 branches and half a million retail shops, it is strong in north and east India. Starting with nine products which have been launched in five states, Igo will increase its product range to 30 in the coming months.
The makers of the Onida brand had introduced a lesser priced brand under Igo to target the rural markets nearly seven years ago to sell low end television sets pegged at Rs 5,000. It has now decided to go beyond televisions and enter the washing machine category with a similar price point of Rs 5,000.

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