Rural consumer and buying behavior

• Rural consumer- a) cautious in buying goods and services,

check recheck prices of new products, lot free time so delayed
decisions b) cultural factors-shared values, beliefs and
perceptions influence r. c .against more individualized in urban,
different groups related to religion, caste ,occupation. c)
Traditional life- customs and traditions decides practices,
stitched shirts r still common. d) traditional occupation- children
take up farming and also fallow same methods e) traditional
belief-depend on fate, past experiences than new findings,
mantras and tantra r used. f) Family values-obligations
fulfillments ,Sas - bahu, joint families, g) rural c”s income-
monsoon ,seasonal, agro. impact, h) festivals and functions-
onam, pongal, diwali campaigns ,i) Low educated-media
choice, demos best-result or method, J) bank influence- saving
habits thru coop banks etc.
• Demand patterns- a) Size of market- recent story of corporate
initiatives based on fast growth - b) composition of demand-
both services and products-agro inputs, two wheelers, cycles,
radios, cooking utensils, cosmetics,, fmcg, durables. C) More
than urban- watches, bicycles, tailoring machines,, d) growth
more than urban- Tea, washing, etc.
• Changing Life style of r. c - popular image of r. c. as limited- literate,
exposure to products and brands limited, choosing price over quality,
and wom influence. some also feels now that no difference in U.C. and
R. C. Changing consumption patterns reflect the evolving lifestyle of r.c.
The influence on the cbb of r.c. also changing a influence by 1-
increasing incomes and its distribution, (report) 2-mktr’s efforts to reach
and educate potential c.3-situatuion in which r. c. utilize products. as the
environment is fast changing like electrification in villages limits use of
electricity durables, piped running water limits use of washing machines,
washing powders as washed in streams, roads limits use of mobikes,
however >50% own bicycles and mechanical wrist watches, abt 40 %
have radios and or transistors, so penetration levels r increasing for
durables.
• Distribution of

households by income-
Short sighted to look that r.m. as extension of u.m. Issue is not
affordability of r.c. but reach them with variation as per their ability to
purchase. Households income levels < 25000/annum more than 50%
r.c. but abt 14 -15% households exceeding 50000 in rural India. western
region -45% < 25000, but in south more than 60%.North is abt 57%.
• Lack of electricity in many rural households acts as a barrier to
consumer durables. If only electrified villages r considered then
durable consumption rate is comparable to urban mkts.
• Expenditure on consumer non-durables- study shows that rural
consumers buy basic products like tea, soaps, edible oils,
washing powders, etc. shampoos r still less, tooth powders r
common but toothpastes have overtaken.
• Elusive –stereotype of rural cbb is absent posing problems for
mktr. In terms of segmentations
• Geographic –demographic influences and related rural cbb
variations- influences of place of purchase and occupation.
• Environment of r. mkt. is critical influence in shaping the needs
of r.c. Products of um r impractical, as rc do not mind paying
more for durable which can withstand power fluctuations.
• R.Mkt is not homogenous and so geographic locations reflect
in cbb. .south r. c is more conscious/educated and so more
receptive. south prefers quartz watches over mechanical that to
from show rooms.
• Occupation ad consumption patterns- non-agro occupants r
high consumers compared to land owners and labors.
• Place and purchase variations- almost 60 % villages visit hats
to buy because of better prices, quality and variety. some
categories buy from towns.
• Social and behavioral influences- status etc.
• Cultural ad social influences on cbb- wide disperse of villages
and limited communications helped preserve traditions in rural
areas. However traditions giving way to modernity. like
collective thought to individual, perceptions , attitudes , beliefs
as media taught them e.g. lux, but cultural influences persists
like religious prints etc with product promotions.
• Perceptions and product usages. e.g. color, shapes due to
lower literacy, brand identification thru visual patterns, red soap
–lifebuoy.
• Attitudes to quality and price- its influence-Not true that only
cheap brand sells in rural.
• Brand preference and loyalty-branded products of some
categories like soaps , oils etc of national or local brand r
popular. ere r r.c who can afford high priced brands.
• Brand loyalty-Multi brand and entry for new
brands in r. mkts is possible. As now willing to
consider alternatives. loyal for some brands like
health related .
• Regular monitoring of consumer purchase is
necessary as conditions changing fast and it
calls for specific research and sophisticated
approaches. color dye of godrej was used for
color of cattle.
• Decision implications- develop product variants
and position cording to social and geographic
grouping. Product offerings –resistant to power
fluctuations etc, promotional efforts as per color
etc, distribution thru hats and melas etc.