LITERATURE REVIEW

Anisimova Tatiana Anatolevena (2007), has examined the effects of corporate brand
creation and its impact on consumer behavior for consumer durables. An absolute indepth analysis with 80 pages questionnaire has been executed with the help of seven
point likerts scale. Various variables like corporate activities, corporate associations,
corporate values, corporate personality, technology, advancement and technology
sophistication has been into consideration. An attempt of establishing co-relation
between corporate marketing with consumer perception has been made and to certain
extent it has been established. The study clearly reflects that corporate activities and
practices play a very vital role in creating corporate brand which ultimately convert
into consumer brand loyalty. The result shows that there is direct relationship between
corporate activities and corporate image association in the consumers memory and
consumer loyalty. Furthermore, attitudinal and behavioral loyalty can be increased
through enhancing consumer personal representation, in the brand communication and
consumer experience. Core values which are reflected in the mission and vision of the
organization also having impact in consumer image about the corporate as well as
brand. An important implication therefore is that beyond conventional marketing mix
consumer durable manufacturers should raise consumer awareness of their core values
an organizational culture. Lastly, it shows the result in the form of clear cut
relationship between brand functionality and consumer evaluation of durable
products.
Bhagaban Das, Mohanty Sangeeta, Sahil Nikhil (2008) reveals that television brand
selection is very complex process, which is highly depending upon word of mouth
publicity and additional information available for brand or product. On the basis of
survey of 80 respondents it was found that sound quality and brand image are the
leading factors taken into account by consumers. Surprisingly, there is no impact of
sales promotion to in the form of discount or gift or any other scheme. Durability of
the product, in-built stabilizer for protecting television from voltage change and
nearby dealer are secondary factors in selecting television brands. The conclusion has
been

obtained with factor analysis. Good brand image is the ultimate criteria across all the
sections. It is suggested by them that offering free direct to home connection might be
most effective sales promotion tool.
Bijapurkar Rama (2007) has nicely explained the concept of bottom of pyramid with
reference to Indian consumers. The size of bottom of pyramid market in India is very
large and one cant afford to ignore them in any cases it makes one third of the total
consumption expenses and one fifth of the savings. The purchasing power of the rural
consumer of India is low but its size makes it. Still in India a dollar per day is to be
considered as sufficient amount for the average family of India. The affordability of
the chief wage earner of the family may be extended to second hand mobile and
television set and small dwelling in shot time of six months. Hence the affordability is
not the prime issue for rural consumers. Marketers are required to go for sensible
investment in the appropriate brand building and in creation of brand loyalty by
finding right business models for urban and rural poor or bottom of the pyramid
customers. The rural consumers are showing very positive and favorable changes in
their attitude after liberalization which responsible due to enhancement of educational
level. The rural consumers are poor but not backward. As the rural consumers are
becoming struggling and aspiring for better life and stretch themselves for better
environment. The most important and disturbing fact has been brought in the notice
about scattered ness of the rural population which affects the government as well as to
the marketer adversely in development of marketing infrastructure. More than two
lacks villages are without shops and seventeen percentages of villages coving more
than half of rural population which indicates the inability of the marketers to serve the
consumers of hinterland. Creating perceived value advantage for consumers and
customers who have modest incomes but are not backward in their thinking and their
aspirations, especially in an environment where innovative direct competition exist
and offers low costs and high benefits offerings.

Broadbridge Adelina and Marshall Julie (1995), conducted a study of consumer

complaint behaviour with 124 respondents reveals that just 4% respondents are
satisfied with the complaint resolution system of consumer durable companies. Nearly
1/3rdare satisfied with the efforts made by marketers, but 44% are of the opinion that
marketers are not taking appropriate action for resolving complaints of consumer.
Consumer complaint behaviour having direct impact on store patronage and affects
stores loyalty. Surprisingly, an organization can get back 75 consumers to their store
after hearing and solving their complaint once again. Consumer complaint behaviour
is supposed to be a part of consumer relationship management and retailer is also to
be treated as most important mediator for managing consumer complaint issues
tactfully. Consumer complaint behaviour is basically a hidden cost in the form of
negative word of mouth in case of dissatisfied work, which leads to alternate store as
to the present point of purchase. The study suggests that there should be proper
complaint management system which should give data about total number of
complaints, nature of complaint, timing of resolving, resolving ratio and repetition of
complaint. Marketing is based on exchange of mutually beneficial values. Companies
must strive to ensure that consumer perceives that he has been fairly treated. Hence,
firm must communicate, deliver and share added value by way of excellent services.

Majority of respondents believes that electrical goods were essential rather than
luxury item. Hence, after sales service and complaints, should be resolved at the
earliest.
Chatterjee (2000) suggests the basic and unique segmentation of rural market based
on source of employment which is more sensible and affects directly to purchasing
power of consumer. There should be two segment of market viz consumers who
depend upon land and those who are salary earners. Further consumer classification
on the basis of agricultural aspects like landholding patterns, quality and crop mix
followed by land holders, quality of land, irrigation facilities, product. For other class
of rural population urban segmentation logic is sufficient.

Chavala (2001) depicts the rural consumers relation towards promotion mix and
brand building aspects. The marketing communication should be utilized for the brand
awareness rather than the sales promotion. The complete different use of integrated
marketing communication has been sought by him which ultimately leads to brand
loyalty. Marketing communication for the rural market will be effective in short run as
tactic but cant be treated as strategy for creating better brand image in the mind of
rural consumers. Consumers perception of alternative brands in the market place is
depending upon the amount of available information about the brand. Brand
information is highly depending upon three sources viz. Marketer dominated
communication channels, Consumer Dominated communication channels and Neutral
channel of communication. His study showed that there is great impact of marketers
dominated communication channel and it plays very vital role in creating brand
preference. Consumers past information is playing very vital role in brand perception
for durable products.
Dr. Agrawal Manish (2006), has conducted the consumer buying behaviour process in
rural market of Bareli District of U.P. which reveals that lack of electricity in many
rural areas of Bareli District act as barrier to consumer durables and marketers
alteration in the product cannot play any significant role in adopting household.
Decision for the consumer durable brands is dominated by the male member of the
family as well as retailers opinion plays very important role in such. Television is
proved as most influencer for creating awareness amongst rural consumer.
Surprisingly, local newspapers and magazines play very important role in making
consumer aware about the product. Price and the size of the product are most
influencing variable affecting purchase decision of consumers. District level town
where more assortment and variety is available for consumer durables is least
preferred for point of purchase.
Ganguly, Parthsarathy, Kapse Sampada (2006) has depicted the most important issue
of brand awareness in the rural market. Rural communication is different task requires
deep understanding and insight of rural consumer mind set. Hence, rural
communication should be done after selecting very precise and familiar word, colour,
sign, logo for brand. They emphasized on integrated marketing communication
approach rather than making a personal presentation. One should take care in
recruitment of sales person in the rural area and should prefer local educated youth
familiar with rural geographic culture, tabus, etc. Influence of opinion leader cannot
be ignored in any case. Hence, it is a advisable to go for exposing the new product

amongst such influensive person. For making effective communication to rural

market one should contain local idioms, lingo and dialect as well as it should be
simple, clear and memorable.
Harish R (2007), depicted that consumer durable markets in India is highly depending
upon various organised and unorganized retailers. Hence, marketer should develop
systematic push strategy along with product development, product innovation, which
converts into brand loyalty through better customer relationship management. An
attempt of creating win-win situation for retailer and marketer, should be created for
long term survival in the present cut-throat competition market of consumer durables.
In the present scenario different retailing formats are established with a view to
capturing more market share and enhance the penetration level which may be
unsuccessful due to high cost of distribution, poor trader-marketer relationship, high
rentals, and lack of trained staffs and development of very low priced Chinese brands,
absence of insight towards actually what consumer wants and other aspects. Both
manufacturers and trader should make an attempt to explore more conceivable
method to improve operational efficiency in order to achieve substantial and
profitable business group.
Hundal B S. (2001) attempted to study the rural buying behavior in Ludhiana,
Jalandhar and Amritsar districts of the Punjab region. The main objectives of the
study were to assess the general attitude of rural consumers for consumer durables; to
find out the durable brand ownership of rural consumers; to examine factors
considered by them in making product brand choice; to investigate the role of family
members, different groups and media in influencing purchase decision of rural
consumers; to analyze the post purchase behavior and satisfaction and to ascertain the
intensity of brand loyalty, and the appeal of promotional schemes. A sample of 325
respondents (households) was selected on the basis of stratified sampling, random
sampling and judgement sampling. Finally, he concluded that the rural consumer
considers consumer durables as a necessity as he perceives them to be a source of
entertainment, education, information and comfort. He suggested increase in the
number of distribution channels, introduction of low-cost products with more focus on
quality, brand image, family preference, and after-sales service.
Hundal B.S. and Anand (2008), examines the perception of the consumer towards
promotional schemes for consumer durables with the help of primary data from 299
respondents of rural and 297 from urban areas, whose monthly earnings exceeds
Rs.10,000/- with F-Test and Z-Test. The study reveals that replacement is the key
factor for converting potential consumer into actual consumer in case of rural
respondents. But, rural consumers are more concerned about repair and maintenance
of the consumer durables. Hence, after sales service in case of rural area emerges
significant promotional measure but could not be entertained by marketers due to poor
infrastructure. In case of urban consumers, off seasonal benefits is also proved to be
impactive as to their counterpart in the rural area. Festive offer is highly waited sales
promotion tool in the rural area as the harvesting activity in the farm provides
liquidity to the farmers and other rural population. Perhaps, installment purchase and
O% scheme seems very promising tool in urban, which indirectly suggests that
affordability is not the constraint of rural areas, but, it is constraint of entire market.
Customer relationship management practice is extremely difficult in rural areas. Both
the groups like free gift scheme alongwith consumer durables, but it is assumed to be
a routine one alongwith other sales promotion tools.

Jeyakumar S. (2010), examining the consumer durable market in the rural India
revealing that availability of financing scheme, rise in the share of organised retail,
innovative advertising and appropriate brand promotion and availability of new
variants makes durable market boom in the rural India. Study reveals that aircondition, microwave woven as well as colour TV having potential growth of 20%,
but still Indian market is highly dominated by foreign players like LG, Samsung,
Philips, Whirlpool, and of course Videocon. Marketer should leverage its rural market
opportunity by increasing the penetration level various white goods. Present
penetration level of refrigerator in rural market is just 2%. In washing machine just
0.5% which is sign of great potentiality in the market. Rural market at present
growing faster than urban market. More than 2/3rd population of the country is below
the age of 35% and nearly half is below 25% is sufficient indicator for future growth
rate of durable markets.
Jiwarjka (2004), Chairman, Federation of Indian Chamber of Commerce and
Industry (FICCI) states that the rural markets have been a vital source of growth for
most companies. For a number of FMCG companies in the country, more than half of
their annual sales come from the rural market. There is a need to generate superior
data on rural marketing system, the haats, melas, mandis, village and small town
income levels and consumption patterns. They need to learn how to use existing
market placeshaats, melas, mandis to arrange live demonstrations of products.
The ingredients for successful penetration into the hearts and wallets of village
consumers include long-term commitment, cost re-engineering and sustained
innovation and specialized strategies. He reveals that despite the hurdles that rural
economy presents, corporate-rural partnership can overcome these and bring about
positive results for both the entities. Partnership needs to extend beyond agribusiness.
Kar Sudhanshu Sekar and Shaoo Sarat Kumar (2010) have explained the importance
of the rural communication in building a brand in rural area. Conventional
communication channel and tool s are not effective in the rural areas. An emphasis on
the separate communication mix for rural area has been recommended. Due to high
level of illiteracy in India the communication for new product should be done with
great care and each and every communication channel and tool has to be evaluated on
three criteria like cost, frequency, reaches and effectiveness. Communication can be
more effective through non-conventional mediums like melas, Nautanki, shows, wall
paintings etc. Melas are to be treated as best opportunities for launching new product
in the market as it has very high accessibility to the rural consumers.
One should take great care for selecting logo, punch line, even packing and other
aspects for easy recognisation to consumer. Through non-conventional
communication tool one should develop liking and preference towards newly
launched product which ultimately converted into desired customers and final punch
in the form of point of sale advertisement and presentation which converts desired one
to actual buyers. As a matter of fact now the penetration of televisions is very high
even in the rural areas of India and which the most powerful and impactive media in
last ten years so these no-conventional methods of communication cant be effective
in the remote areas at all.
Kashyap Pradeep and Raut Siddharth (2008) are of the opinion that the rural market is
absolute different as to urban counterpart in terms of dynamics to marketing mix and
also from the view point of the consumer behaviour and mindset. Decision of rural
consumer for consumer durables requires great involvement and highly influenced by

the opinion leaders, reference group, and others. Having consumer durable is believed
to be a status in the society rather than utility and vale addition. Rural consumers
taste for the product esthetics and other out part is very basic and bold. Rural
consumers expectations are to be studied at regular interval of time which makes the
precision of various marketing mix. No of variables are affecting to rural consumer
behaviour which includes culture, subculture, locality, social class, custom, role and
status and type family, sociability and influence of the technology etc. These entire
factors make the rural consumer behaviour complex. More surprisingly the study
shows that there is difference in the behaviour of rural consumers of two nearby
villages as well as two different talukas of same district. There is requirement of
development of separate model for rural consumer behaviour.Rural retailers are
playing important role but ignoring Customer Relationship Management
Kazmi S.H.H. (2007) is of the opinion that the rural consumers are more tradition
bound as to urban one. As well as level of education, exposure to various media and
free modern city environment affects the life style of rural consumers. The impact of
various government programmes can be seen in the purchasing power and literacy
level for rural mass which makes rural market lucrative for various marketers.
Segmentation and Targeting, Product planning, pricing and personal selling are most
important aspects of rural marketing Socio-cultural issues and Language and literacy
level are proved to beimportant and successful segmentation basis. Less modification
is needed for the consumer durables. After sales service is more important for the
creation of customer satisfaction and make customer stick to your company. The
biggest disadvantage to the marketers in the rural marketing is on the front of the
distribution system. Rural area is lack of marketing infrastructure as well as it is very
costly and sometime not even viable for development met of distribution system.
Personal selling in the rural area is highly effective and can be useful for shop
patronage.
Krishnamurthy (2011)had suggested that one should keep brand name of product
which are easy to pronounce, easy to recognise amongst other brands and easy to
remember (colour combination) for success in the rural market One should resembles
the brand name with numbers or famous animal or symbol to make brand famous. It
was argued that it is very very useful for creating brand awareness amongst less
literate people of hinterland which in turn into Brand Loyalty in long run.
Krishnan (2002) presents details about the panel discussion organized by strategic
marketing where the issues like the changing profile of the rural consumer, reach and
effectiveness of media and distribution problems were discussed. It was stated that
according to one study, if the rural income in India goes up by 1%, there would be a
corresponding increase of about Rs.10,000 cr in the buying power. On the other hand,
the urban sector has shown little signs of growth in the last 12 months. It is a fact that
unlike a few years ago, the rural youth today is playing a far more significant role in
influencing the purchase of radios, television sets (black and white as well as color).
Penetration level of consumer durables in the rural sector have risen dramatically in
the last decade or so. Even the rural woman is coming out of the closet. The youth
have certainly begun to play a role in selecting a brand in certain product categories.
Studies suggest that the rural youth is playing an important role in purchase decisions.
They are the real drivers of the rural market. The B&W television industry is
shrinking. If color television is termed as a luxury item, rural people are migrating
towards color televisions. But when other high-end electronic goods such as the CD
player market are considered, these really have not yet found entry into the rural
market. It is still an analogue industry. Amazing quantity of radios are sold in the rural

market.
Krishnan Omkumar, Panigrahi Baroda (2006) concluded that corporates do not put
their best efforts to tap high potential rural consumer.
The reason behind is non-availability of concrete data about rural areas of India.
Emphasizing on precise segmentation the author reveals that segmenting the rural and
urban areas on the same basis does not work perfectly. Further he reveals that there is
a misconception about developing market that consumers of rural areas and
specifically BOP consumers prefers very cheap and basic offerings. But the study
reveals that this is not the case in every rural area. There is substantial association
between demographic, socioeconomic and cultural ethical group, hence segmentation
of the market should be made on this basis, which might be much more fruitful. The
complex sub-societies and sub-cultures of the rural India demanding separate and
specific segmentation, though it is very difficult. One should develop proper
understanding towards consumption behaviour and market structure in rural India
from sociological point of view.
Kumar Babita, Banga Gagandeep, Goyal Pratiba, Kumar Abhinit (2007), has
conducted detailed study about preference of consumer durable by rural consumer,
with the help of 450 respondents reveals that company is targeting rural market has
adopted a principle of bottom of pyramid and hence developed special product for
rural consumer in case of durables. An attempt of examining impact of four As of
rural marketing has been made, which reveals that affordability is the main constraint
rather than other three As of rural marketing. Price of the product and the advertising
strategy are the highly affecting factors for purchase of durables. High price of agrocommodities enhances purchasing power of rural consumer. Most surprisingly nonconventional media convey the message of marketer nicely and effectively rather than
conventional medium. Mobile cinema demonstration, puppet show are very useful for
the communication in the rural area. Wall painting and hoarding places number two
for such. Dealers advice for selection of brand and model is playing very vital role in
consumer decision which can be useful for increasing penetration in the rural market.
Very surprisingly brand name, exchange offer and features of the product received
very less importance amongst the rural people as their education level as well as
attention towards these parameters are very low. Inspite of complexity in terms of
economy, cash flow, literacy level, poor infrastructure and low level of education,
there is a boom in the rural market for consumer durables which shifts the various
companys focus from urban to rural.
Lily J. (2010), has evaluated consumers perception about the promotional factors of
purchase of branded television sets with the help of primary data from 200 customers
of various retail electronic outlets of Coimbatore District of Tamil Nadu with the help
of ANOVA and Chi-square analysis. An attempt has been made to establish
relationship between demographic variables of the respondents and customer
perception which reflects that there is clear cut relationship between age group,
gender, educational qualifications, occupation and perception towards the brand.
Income level having direct impact on perception towards the branded products. Price
and perceived quality are the most influencing factors in determining brand of
television. Role of the family members is information search about the brand
possesses plays very important role as spouse is the most prominent information
seeker in television brand followed by parents.
Lokade Pradeep (2006) has revealed that the rural market is not an extension of the

urban market. Rural market is operating in different environment as to urban and

widely based on seasonal income from agriculture sector. Marketer has to go for deep
insight towards the values, attitude motivation and perceived image of the rural
consumer to become successful. Rural consumers are seeking value for money and
cant be attracted by the inferior quality.
Mirchandani and Rahul (2001) had emphasizes the product planning which suggest
the proper understanding of rural consumer requirements in terms of specifications of
products in terms of color, functions, taste, size and it ultimately determines the other
marketing mix .
Mishra Arvindkumar, Pallavi (2010), while studying the opportunities and challenges
in rural marketing in India, concludes that government initiatives are contributing
greatly in creating boom in rural market. As connectivity in the rural area was just
40% in 2004, which has been enhanced to 70% at the end of 2008. The impact of
Bharat Nirman Programme is outlay of Rs.1,80,000 crores for improving rural
infrastructure and increasing crop-prices has enhanced the affordability of rural
consumer to a greater extent, which resulted into increase in middle to high income
households in rural India to 17% of rural population and increasing at annual rate of
7%. These efforts compels marketers of consumer durables in rural areas to develop
customized product as well as changes their pricing approach from scheming pricing
to penetration pricing. The impact of programmes in the form of 750 million rural
subscribers for telephones, which are increasing at the rate of 13%, in which Bharati
is market leader with 40%. Impact is also shown in the lifestyle of the consumers and
hence auto giants, Maruti and Hundai obtained sales from rural India to the extent of
16% and 29% respectively in 2009 as well as 59% durable sales comes from rural
areas. In case of Refrigerator market with a view to concur the adaptability of the
product Samsung has launched stabilizer free Refrigerator. But, limitations of rural
marketing are large illiterate population, lack of supportive services to the consumer
products, conventional way of life, inadequate warehousing facilities, low per capita
income Indians restricts new players to enter into the market.
Modi Pratik (2009), has rightly raised the question towards the various governing
bodies and amongst the researcher about disparity definition of rural market. In India,
rural marketing has been defined by more than 5 different agencies including RBI,
NABARD and Planning Commission but such definition is full of difference of
opinions. Independent researcher Jha has used urban rural dichotomy
conceptualization of rural as well as other criteria like occupation, environment,
density of population, heterogeneity, and homogeneity of population, mobility, etc.
while NABARD and RBI has taken into account simply population size, which is
absolutely unfair in terms of implementation of various schemes in the various rural
areas. Not only this, but in conceptualizing rural marketing there is a disparity
amongst government agency as well as independent researcher. Famous marketing
strategist Vijapurkar and Krishnamacharyulu treat rural marketing as extension of
main stream marketing in the rural areas. Hence, one can implement all the principles
of main stream marketing in the rural marketing, but, result is absolutely different.
Hence, it is suggested that there should be clear cut definition of rural marketing
rather than different sets of definitions which are inadequate and inconsistent with
reference to present scenario.
The global academic community does not know rural marketing as a field of scholar
investigation because it does not have its own unique perspective and domain. Hence,
the Central Government or its agencies should make an effort in clarifying the

domains and perspective of rural marketing which can lead to separate theory building
work in the area of rural marketing.
Mohanty Dakshi (2003), has examined the LGs rural marketing strategy with
reference to Indian subcontinent under the guidance of K.R.Kim. To establish LGs
presence in rural market company has started operations in the form of back-office
support by opening offices in semi-urban and rural areas which are known as central
area offices and remote area offices. Not only that, depending upon types of town in
which it has been situated, its classification has been made. This is to be treated as
very important move for increasing infrastructure, distribution and after sales function
to the rural consumers. With a view to penetrate the television in the rural area, LG
has successfully launched television under the brand Sampoorna in 1998 with specific
feature of regional language screen display which is turned to be a boom product in
the rural market. Even though, its prices higher by Rs.2,000/-as to competitors
product. Kwang-Ro-Kim has focussed on the rural market of India by launching
series of ruralised product (product with specific features seek by rural consumers)
and successful brand extension in the form of Cine plus (which was extension of
Sampoorna) which contribute more than quarter of the companies turnover. Same
strategy has been adopted in the category of frost free refrigerators, air-condition and
microwave oven. The most influensive practice is the launching all these products
with very low price which cracked the one of the most important A-affordability of
the rural market. A unique strategy in the form of different models, different channels
has been launched by the company, which meets the local requirement with the help
of companys own distribution network.
Muray Alex J (1971), evaluates model towards optimizing advertising efforts on
durable goods purchase. His study clearly indicates that advertisement expenditure for
consumer durable and sales having no relationship at all. Allocation of advertising
effort is not as effective if past trends cannot be projected because of highly
fluctuating nature of the products involved. Generally, consumers take into account
recently published an readily available expectational survey while determining
household purchasing decision. One should construct optimal strategy index by
integrating purchase decision making variables and future potential market segment
with a view to optimizing advertising budget. The study depicts that by giving an
advertisement one cannot predict the future sales. One should deeply study an
measure two major aspects on which entire decision making process for durable
goods is based at regular interval of time viz. willingness to buy and ability to buy
before constructing optimal strategy index.
Narang R. (2001) conducted a study on rural markets and buying behavior of rural
consumers of UP. The items included in the study were consumables: toilet soap,
washing soap, tooth paste/powder, face powder, face cream, edible oil, tea, razor
blade and durables: electric fan, wrist watches and television sets. The hypotheses
framed were: A significant proportion of buyers were not satisfied with the available
brands and there was latent demand for additional brands; there was non-availability
of desired brands in local shops; rural buyers made substantial purchase from the
cities; the proportion of city and local purchases varied from product to product and a
nominal amount of purchase was made from hawkers. The sample size of 200
respondents was distributed to three regionsto the rural population of Northern UP,
Central UP and Eastern UP. The results indicated that majority of the rural population
was not satisfied with the locally available brands.
Narang, Shivani, Gautam V. Annigeri, Singh Nirmal and Ananl Vishal (200) is of the

opinion that the rural communication is to be done with due care and diligence.
Message selection is to be executed after considering the rural psych. Unconventional
media is very effective in the rural communication like folk culture, rural sports,
melas which are integral part of rural life. Message should be relating to consumer
behaviour as well as marketers have to take into account the accessibility of media
type which they have selected for rural communication.
Paninchukunnath Ajith (2010), has developed a unique model for rural marketing for
sales promotion. Marketers should come out of urban marketing myopia. Urban
myopia is so high that inspite of facing acute problem in urban markets, like low
market share, brand poly game by consumers, competition from private labels,
declining margins due to heavy competition and so on companies with urban myopia
still refuse to look beyond urban markets as well as many of these marketers are using
the same segmentation for rural counterpart, who faces failure. Rural marketing
requires unique approach towards retailers as well as consumers. He has suggested
pull approach to rural marketing with modified communication and customization
focus, which should create right perception in the mind of consumer. But his unique
model pull up marketing focusing on product development and market development
as well as building relationship with consumers through local touch retailers.
The three P frame works pull, push and pull-up should be adopted in totality for
achieving sustainable success in rural marketing. Many marketing firms are adopting
first two components of three P frame works and face the problems. Instead of that,
one should develop proper focus on consumer as well as retailer and create unique
integrated marketing communication mix, separately for both of them can bring them
for smiling exchange and satisfaction which can be converted into repetitive purchase.
The three P frame work emphasizes on creating new markets, developing innovative
products, green products and align corporate social responsibility activities of the
firms to its value change. Holistic approach towards rural consumer through pull-up
can give co-creation, empowerment to channel, as well as one should try to maximize
dialogue, access and fixing responsibility to retailers and marketers through
transparent policies.
Pareek (1999), explained that the Indian rural market has immense untapped potential.
The rural markets importance arises out of the fact that
India lives in her villages, both literally and metaphorically. According to National
Council for Applied Economic Research (NCAER) surveys, the income of the
average villager is rising. Recession is hardly possible in rural India. Also, rural
education levels are rising because of the efforts of the states. The rural markets
remain untapped because of three Ds: distance, diversity and dispersion. Due to
scattered rural markets, it is difficult for a brand to be available all over the county.
But with the new means of transportation, it may be possible to overcome this
obstacle. He has observed that it is very hard to design a communication strategy as
the marketers have little understanding of folk media. Mass media reaches only the
upper end. Genuine efforts should be made to exploit the rest of the market potential.
Pickering J.F. (2007), has developed a unique durable purchasing behaviour model.
According to the model, factors like higher social economic status, age group,
ownership of present consumer durable, likely to move house in following year, larger
resources to spend, very low importance of saving for purchasing any other thing
other than consumer durable and strong expectations from durables. Basically
speaking, he has developed three sets affecting durable purchasing decision of
individual household. Set-I consists of occupation, age and existing durable
ownership, which determines his socio-economic status in the society. Set-II is the

most important and influencing one in decision making process, which generates
consumer confidence, resulted from personal financial circumstances, price,
employment position and expectation from durables. Set-III is mainly deals with the
perception of product characteristics requires specific triggers in the form of sales
promotion tool, which converts into demand of consumer durables. The investigation
suggests that demand of consumer durables is a function of consumers ability and
willingness to buy. The model ignores behavioural cross sectionality. Model is
applicable only for individual households having less impact of personal factors.
Rajgopal (2003) had examined the impact of various government initiatives through
five year planning for rural development as well as its impact in terms of rural
development. Survey for rural development by government agencies always show
very rosy and impactive picture of rural
India but several micro level study shows different result. Emphasis on the
development of rural marketing infrastructure and allied services had been given.
Though the concept of rural marketing is taken very conservatively and restricted to
products produced in rural India.
Reddy (1999) had trace out one of the most influensive factor of consumer behaviour
which is after sales service. Rural consumers too expect timely and efficient after
sales service. Rural consumer takes into account this factor while selecting brand of
consumer durables. This factor ultimately restricts the rural consumers to go for the
advanced technological products even though there is affordability. Onsite warranty
may play very important role in differentiating policy towards the product in the rural
market.
Ruchika Ramakrishna(2006) observed that there is differential development of
infrastructure, divergent geoclimatic conditions and variations in locational density of
villages indirectly compel to go for different distribution system for different areas.
Areas with similar situation and type of population density and geometric climatic
conditions are to segmentised and accordingly distribution strategy is to be developed.
Marketers have to depend upon multi-channel distribution system but in long run
should go for direct marketing though own outlets or in joint venture with agro
product companys distributors or others.
Sarangapani A and Mamatha T. (2008) examines the post purchase behaviour of rural
consumer ad role of retailer in the efforts of consumer satisfaction with the help of
studying 500 respondents in west bangal. The consumers reaction towards post
purchase experience of various products may of three categories viz. Accumulating
experience towards the product and retailers which in turn becomes memory, putting
check on the selection of the product in the and make an appropriate adjustment in the
future purchase decisions. The post purchase behaviour of the consumer is highly
depending upon the educational level and awareness. A bed experience of the
particular retailer may create problem for the marketers for long period of time and
converts it in the negative publicity. Rural consumers are very price conscious which
result into usage of lower brand or private label. Rural buyer is not ready to pay for
value additions and satisfied with basic offerings. Demand of consumer durables and
consumables are very high only during the harvesting season. At the marketers end at
regular interval of time it require to conduct research to know the consumers insight
in the form of liking, disliking, buying motives and buying practices. Effective
communication and transparent policy can reduce the dissatisfaction and use full for
the development of positive perception towards the brand or marketers. Efforts are
required to be made on the ground of the retailers service to its customers as they are

playing very important and pivotal role of brand bundling in the remote areas.
Consumers are to educated through them regarding use of the product.
Seshamohan V.V., Narayana N.S., Babu Ramesh S. (2008), have examined consumer
decision making process for consumer durables in potential rural India with the help
of 150 respondents. The buying process in rural market as usual starts from problem
recognization, but in case of information search, it gives more emphasize to the
retailer, present user and previous experience and of course the friends. Family
members are playing very vital role in influencing purchase decision followed by
friends and relatives, but, the most significant aspect is need recognization is done by
the chief wage earner of the family. Surprisingly, nearly half of the respondents are
accompanied by friends and relatives while purchasing consumer durables rather than
family members and nearly one third are purchasing alone. The most critical factors
influencing purchase decision are price, design, quality, service availability, etc. but in
case of complaint or post-purchase problem is concerned, just one fifth are facing
complaint from the product, which has been resolved by the marketer by and large.
The non-availability of factual and comparative information to prospective consumers
is very limited. Finance facility is the key influencing factor for buying consumer
durables, but, there is a lack of proper consumer relationship management on the part
of marketers.
Sharma Urvashi, Agrawal Nupoor has focused on brand building practices in rural
areas. The study reveals that integrated marketing communication which is followed
in urban area cannot be successfully rural area. Hence, brand awareness can be done
slightly different in rural area. It is myth that rural consumer are not aware about
brand awareness of various FMCG products are ranging from 55% to 88% in various
categories. The said research paper suggests different rural brand building process
which is quite different as to its counterpart. It reveals 4Bs as the most suitable way
for brand building which starts from build product as per the need of the rural
consumers, build price after taking into account small disposable income group,
which should affects reasonably to the pockets of rural consumers, build messages
with the help of suitable language, dialogue, habits, customs and values, which creates
clear, easy and more impactive brand positioning and good recollecting alongwith an
attempt of building higher satisfaction level of consumers.
Shivakumar and Arun (2002) in a study of buying behavior of rural Pondicherry
people noted that they considered only one brand and visited only one shop before
making a purchase decision. The survey focused on two products: wristwatches and
footwear. Unlike urban areas, where watches had become gift items, in rural areas,
watches were bought as and when necessary. They found that rural customers
considered brand name and price as important elements in buying wristwatches. Rural
customers preferred to shop only at one place. An interesting finding was that they
seemed to buy wristwatches and footwear as and when they required them without
waiting for any offer or festive season. For wristwatches, about 45% of the surveyed
respondents reported that they themselves took the buying decision while about 20%
of their counterparts were of the view that retailers, advertisements, etc.,
influenced their purchase decisions. For footwear, about 75% of surveyed respondents
reported that they themselves took the buying decision regarding the footwear they
used. They suggested in their study that manufacturers should make available quality
products at affordable prices in towns that were accessible to the maximum number of
villages.
Shivkumar K, Rajamohan A. (2007) has conducted a study of 426 (university

teachers) respondents with the help of chi-square and other statically tool which
revealed that price of the television is found to have high positive correlation with
performance, brand recommendation and negative correlation with short term service.
Purchase decisions are highly influenced by age and gender followed by monthly
income which decided affordability, social status which provided motive for
possession of branded television set and education level which is helpful in the
obtaining information about product and allied augmented aspects. The suggest the
alteration in the first P of the marketing i.e. product in terms of variety and specialized
features may help marketers to maintain the market share.
Shrotriya Vikas (2008), examines the perspective of rural marketing. Technological
and infrastructural developments have increased the literacy and brand awareness,
which resulted into new players in the rural market.Rural marketing is not emerging
over nightly, but, it is result of many factors like large population, saturation in urban
market, risk taking ability of local entrepreneurs, technological development,
availability of financial facilities, increase in literacy rate, impact of LPG and of
course its result consumerism. There is vast difference between urban market and
rural market in terms of communication, awareness, available offerings and consumer
behaviour patterns. With a view to be a successful marketer in the rural market,
customized products has to be developed after proper understanding of rural situation
and expectations of rural consumers. Otherwise, manufacturers who have adopted
selling concept will be failed. Segmentation is challenging task in rural market. As it
is full of too many groups, sub-groups. Scattered villages in Indian subcontinent and
hinter land increases cost of distribution.Advertisement and sales promotion schemes
evaluation is extremely difficult in the rural market because getting feedback from the
consumer is not an easy task. One should concentrate on unique 360o communication
for rural market.
Shukla Kedar, Raut Amol (2010), has presented recent trends and factors for growth
of Indian air-condition industry with specific reference to consumer expectation and
marketers movement. The study reveals that there is tremendous growth of
commercial air-conditioning market and consumer air-conditioning market which is in
double digit. Marketers have made tremendous change in offerings by making
appropriate alteration in the product like adding electro-mechanical device for cut-off
which shifts AC from cooling to fan as per room temperature as well as inverter
running AC are developed after taking into account short supply of electricity in
Indian cities.
Star rating electricity saving AC and programmable air condition is the demand of
the time. In case of high-income class family, architect and interior designers view
point is also taken into account for selecting brand, colour and size of air-condition
from the view point of room decoration. At present consumers are also taking into
account esthetic aspect of air-condition. It also reflects limitations for threats to the
air-conditioning industry in terms of dumping of goods from foreign market like
China and Korea, globally changing in technology and change in environmental laws
and dependency of compressor technology with foreign companies.
Sinha Piyush Kumar, Banerjee Arindam, Uniyal Dwarika Prasad (2002), have studied
store-choice behaviour of Indian shoppers with the help of 43 statements measured on
Likert type-scale from 247 respondents with the help of convenience sampling
method. The result shows convenience and merchandise are the primary reasons for
selecting particular store. Store selection is based on many factors. But, highest
emphasize has been given in case of inside the store element are inside store comfort,

large assortment area, availability of various brands and space for moving around. As
the study has been conducted with wide variety of retail stores, including grocery,
durables, chemists, lifestyle, books and music, apparels, accessories, etc. conclusion is
applicable to all contemporary organized retailers in the urban area. More than 1/3rd
respondents are considering merchandise and ambient of the store for primary driving
force in selection of store. Consumers of consumer durables prefer to visit those stores
that have depth and width and look for variety. Stores that offer good prices and
discounts are of number 2 preferability. Shoppers are also concerned about quality on
the one hand and try to maximize value for money on the other. Ambient reflected in
terms of lighting, setting and comfort treated at pivotal factors in selecting stores. A
good display of products can create temptation in terms of look around, touch and feel
to the products. Consumer durable buyers agreed that their perceived risk associated
with buying goods from present store was minimal as well as services provided by the
stores is of high quality results into positive experience towards stores which convert
into store patronage and positive recommendation to the others.
Soma Sen Gupta(2005) had observed that there is direct relationship between income
group and involvement level of the consumer for buying television. Person from
higher income group give more importance to brand reputation, price, features and
promotional tools as compared to lower income group. Buyer perceives that the
television with higher price carrying higher quality. Urban Consumers prefer higher or
reasonably priced brand while selecting colour television brand. Brand reputation is
most influential feature for determining perceived quality of television. The value for
money constraint is restricting the consumers to take risk for lower brands.
Srivatsava Arpita (2008), has explained various examples of effective product and
positioning strategy for rural market in her research article. Rural market is in a very
boom situation because of various reasons like shifting of rural agriculture
employment to non-agriculture employment, rising disposable income mainly due to
continuous good monsoon, diversified higher value added farm activities, etc. Product
standardization is in the heart of rural marketing. As many organisations have
modified their product rightly as per need of rural consumers in case of durable goods
by changing in product design, an additional features addition. Offerings
ruralification should be accompanied with right rural positioning through product
differentiation. Rural consumer should be highly tickled by the offerings offered by
marketer, otherwise, it will not be successful. One should develop suitable product
and should create temptation in the mind of consumer with brand positioning, in
vernacular way. One should start thinking for four Ps of marketing from scratch for
being successful in the rural areas.
Sultan Fareena (1999), focuses on consumer preferences for forthcoming innovations
with specific reference to high definition televisions. The study of 320 well educated
effluent urban respondents reveals that consumers are ready to pay more for future
upgrading technology as well as new features in terms of sound quality and extra
ordinary picture quality. HDTV consumers are willing to pay more to receive this
future technology earlier than they would for existing an intermediate technologies.
HDTV holds its value in the mind of consumer better than interim TV technologists or
existing one, which is result of extra ordinary efforts of technology positioning by
multinational companies across the globe. Intermediary technologies (which is
prevailing in the market) is considered as loss as to high definition television
technology by all the respondents. At present, consumers are prefers sharp picture as
compared to big screen. Consumers are not very tolerant of present technologies
which might result into switch over to HDTV in near future. Marketers should grab an

advantage of being pioneer in this field.

Understanding consumer response to different levels of technology over time is
critical to the successful introduction of different levels of technology. Marketers
should leverage increased use of internet for exposing consumer towards the emerging
technology.

Sumedhan K.P. (2008) depicts the most important motive of the Keralian consumer
behind ownership of the consumer durables. The study of consumer behaviour for
consumer durables revels that the important motive behind having consumer durables
is feeling of high status in the society. The result is very strange form he Indians most
educated state whose literacy level is more than 91%. This ultimately indicates that
there is no relation between the education level, income level and status seeking
situation in the rural areas. As the study has compared the buying behaviour of the
urban and rural consumer the hypothesis result shows different behaviour towards the
consumer durables and urban consumers are more keen to purchase consumer
durables of new version or with additional features. More surprisingly the said trend is
also observed amongst lower to middle income group also. Affordability is not the
constraint and proved to be under power to sensitivity to status in the society.
Sun Tao and Wu Guohua (2004) compares the Chinese rural and urban consumer
behaviour and attempted to know the reasons for difference between them. Chinese
rural and urban consumers who are generally situated at two different environment
and living standards having different terms of attitude towards whole marketing mix
like price, place, promotion and presentation of product, product innovation, brand
building (brand name recalls etc. The study reveals that there is extreme difference in
the environment of both the class of consumer which is the most responsive factor for
difference in the attitude. The study also focus on the impact and influences of various
development programmes of Chinese government (in terms of various demographic
changes like literacy, occupation etc.)for the welfare of general public at large in
urban areas. To certain extent the product consumption pattern in the rural areas
shows improvement in the life style but at very slow speed. The multinational
companies have understood this pattern of behaviour in both market and modified
their marketing mix and dominate the market. But the urban investors have to help
rural areas in the form of development of various infrastructure facilities, health care
facilities and set-up for marketing requirement which enhance the market share of
various products.

The Hindu (2004) quotes that present need is to understand the psyche of the rural
consumer in terms of needs, to tailor the products to meet such needs and to deliver
them effectively. Effective communication and setting up of appropriate distribution
channels are necessary for a successful foray into rural markets.
Tiwari Dharmendrakumar (2007), conducted a study on residential status of the
respondents has no effect on medium used to see/heard advertisement, initiation of
purchase, finalization of purchase decision, and also in respect of influence of various
factors on purchase process. Acceptability of medium of advertisement, purchase
initiative taken by different members, influence of different factors on purchase
process, and finalization of purchase decision are significantly affected by level of

education, occupation and family income. Elder member of the family seems to be
more effective for initiating the idea of purchase. Relatives role is also considerable.
Family members and friend who own the brand have major influence on the purchase
process. Brand image, personal experience and guarantee are three important factors
motivating towards the purchase of a particular brand. Whereas, shop image and after
sale service are negligent. Residential status has significant effect on various
motivating factors.
Velayudhan Sanal Kumar (2007) Social and cultural practices have an important
influence on rural consumer behavior. A marketer cannot ignore the influence of
community on purchase and use behavior as this can affect the product and the
advertising message used. The presence of a various durables in the house is to be
treated as status symbol community even it is not used. Again, television viewing is
still largely community viewing and hence rural audiences are not comfortable with
sensuality or sexuality. Culture influences perceptions and behavior. The preference
for color, size, shapes and taste are all influenced by culture. The perceptions of
products vary because of these influences. An example of this is the perception of
value Rural Marketing: Opportunities and Challenges according to size. The influence
of culture on communication is an important factor in promotion decisions. The
importance and respect for elders influence the message source. The meaning that
symbols carry needs to be taken into account in promotional decisions. The nature of
occupation also influences the marketers strategy. Agricultural workers prefer to pay
a smaller purchase price because of the prevalence of a daily wage system. The
popularity of small packs is a result of this. Rural institutions are different from those
in urban areas. The social, political and economic institutions are significant for
marketers. An important rural institution that influences marketing is the weekly
village market. Recognising the importance of this institution marketers use them to
reach the rural consumer.
Wood D (1972), reveals that the process of product differentiation is one that involves
optimizing across a large number of dimensions. It is impossible to suggest definite
formula for differentiation strategies. Due to typical nature of product (consumer
durable) marketers feel that there is risk in launching new consumer durable, as its
frequency is irregular. The consumers risk perception process is playing very vital
role in consumer buying decision. The approach proposed by conventional consumer
behaviour model is inconsistent with the findings of research paper. The products that
are clearly differentiated from the existing products may in ex-post evaluation,
appearing to have substantial price protection from the existing products. Consumers
will perceive not only the buyers attribute contents, but also wide spread in the
possible attribute range. The paper suggests that marketer who would like to launch
new product should introduce it with surrogate variables for creating better
positioning.