BIMS International Journal of Social Science Research ISSN 2455-4839

AN EMPIRICAL STUDY ON RURAL CONSUMERS

PERCEPTION TOWARDS CONSUMER DURABLES

RAMANATH H R
Associate Professor, Institute of Management,
Christ University, Bangalore
horizon19972000@yahoo.com

Dr. DINAKAR G
Director-MBA
Bangalore Institute of Management Studies, Bangalore
dinakargrao@rediffmail.com

Abstract

The world is changing at a rapid speed. India is not an exception to this. In India
nearly seventy percent of the population lives in villages1. It is assumed that economic
reforms and green revolution have brought out several changes in the lives of village
population. Purchasing power of rural people has substantially increased over the
years. “The Indian consumer durables industry has witnessed a considerable change
in the past couple of years”.2 Rural people started using large quantities of industrial
and durable products. Though gap in the social, economical and cultural systems
have changed over a period of time, still there is a wide difference between the rural
consumers and urban consumers. The present study focuses on how rural consumers
think, feel and select different alternative products. The study also aims at knowing
the influence of limited consumer knowledge or information processing in their
decision making. The focal point of the study is to know the impact of rural consumer
interest and priorities in the process of buying. The study of rural consumers helps
marketing companies to improve their strategies to reach them, serve them and
expand their market share.

Key Words: Consumer durables, Disposable income, Rural Consumers, Buying

behaviour

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INTRODUCTION for an extended peiod of time. Indian

durable makret can be clasified into three
Realising the potentiality of rural markets, categories as shown in the following table.
most of the leading companies are trying Table 1: Categoreis of Indian Consumer
to capitalise this opportunity. Greatest Durables
challenge to these companies is the social, Consumer Durables
economical, cultural and psychological set White Gods Brown Consumer
of rural markets. Liberalisation has Goods Electronics
brought about dynamism in Indian Air Conditioners Microwave Televisions
economy. This change impacted the Ovens
standard of living of local people and in Refregitors Cooking Audio and
small rural societies. Because of the Range Vedio
liberalisation, Indian economy witnessed Systems
drastic transformation from agriculture to
Washing Chimynies Electronic
industry.
Machines Acessories
With the increase in purchasing power of Sweing Machies Mixers Personal
consumers, consumer durable sector is Computers
growing at a faster rate. Consumer’s Watches and Grienders Mobile
sensibility and information exploration Clocks Phones
have disturbed the market enormously. No Cleaning Electronic Digital
doubt the consumer able durable products Equipments Fans Cameras
have made their impact on rural Other Domesitc Irons DVDs
consumers. Manufactures and marketers Appliances
are finding it difficult to market their
product in rural markets because many OBJECTIVES OF THE STUDY
rural people earn low income, have low Following are the main objectives of the
literacy, have low level of brand study
awareness, have different communication 1. To know the popular durable products
system and poor transportation facilities. in rural market
2. To understand the level of awareness
Therefore, as though we talk about the about the durables
increase in purchasing power of rural 3. To ascertain factors influencing
consumers, rural infrastructure is still a purchasing decision
challenge to create better platform in the 4. To understand priorities and
rural market for consumer durables. Due to preferences of rural consumers
the potentiality of rural market and its 5. To analyse the expectations of rural
complexities, the study of rural market has consumers about the durables
become debatable topic in today’s context.
METHODOLOGY
General Idea about Durables
The study is based on primary data. The
Consumer durables are the products that data was collected with the help of
do not have to be purchased more structured schedule. To study the
frequently. These products are made to last
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perception of rural consumers, 120 sample
consumers were selected from a place
called Bidare Gudi village of Tiptur Taluk,
Tumkur District in Karnataka State. The
sample consists of housewives and traders.
A GENERAL SCENARIO OF RURAL
MARKETING IN INDIA
Marketing is the process of identifying and
anticipating the needs of consumers to
focus company’s resources to satisfy them.
An understanding of motives and
perceptions of consumers will benefit
companies to develop strategies to serve its
customers more effectively. Reader should
be careful enough in differentiating rural
marketing from agricultural marketing.
Green revolution transformed many poor
villages into prospective business centers.
As a result of Green Revolution,
agriculturists started accepting modern
farming methods and aspired for new life
style.
Many agricultural families realised the
value of education and hence started
sending their children to cities and towns.
Well groomed and educated children of
these agricultural families started earning
and sending money to their parents. This
also led to the additional purchasing power
of rural agricultural families. Tough most
of the things changed in rural areas, the
basic infrastructure facilities like transport,
electricity, education and the like are still
in infant stage. Deciding factor is not just
the purchasing power of consumers, it is
the infrastructure and product match that
matters a lot in rural market. Frequency of
income, nature of job, aspiration in life,
and possible uncertainty in future income
are also deciding factors in rural market.
ISSN 2455-4839
RURAL CONSUMERS IN INDIA
There are many fundamental differences
between urban and rural consumers. Rural
consumers usually buy inexpensive
products. In most of the cases male makes
purchase decision, as women have little
access to market. They will have little or
no awareness about the various brands
available for selection. The degree of
brand loyalty varies depending upon the
product category. It is also realised by the
marketer that if a rural customer is loyal
for one brand, it is very difficult to change
it. Community decision making is quite
common in rural areas. Major source of
income comes from agricultural activates.
Therefore quantum of agriculture income
is a major decider in rural areas. Low
literacy level still continues in many rural
villages. In many cases, buying decision
of a rural consumer is influenced by
external factors like friends, relatives,
monsoon, and so on. All said and done,
rural areas are economically less
developed and less exposed to marketing
efforts. Rural consumers give importance
to functionality than any other factors.
Rural consumers are low adopters of
innovation. Therefore, the slogan required
for the rural market is “Go rural and be
rural”.
RESULTS AND DISCUSSION
The study is divided into five parts that
tries to answer which durable product is
more common in rural market, whether
they have awareness about the various
brands available, which factor influences
the most in buying process, what are their
priorities in life and about the product,
what do they expect from companies in
regarding durables. The analysis is based
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on the data randomly collected from 1. Popular durable products in rural

hundred respondents. Selected ten durable market
items are taken for analysis. These When asked about the product they have,
products are Mixer, TV, Mobile phones, most of them said they have mobile
Fans, Sewing Machine, Washing Machine, phones, TVs and Fans. The details of
Digital Camera, Iron, and Vacuum observation regarding this aspect is
Cleaner. displayed in Table 2
Table 2: Popular Durable products in rural market
Number Washing
of Mobile Sewing Digital Vacuum
Respondents Mixer TV Phones Fans Machine Machine Camera Iron Cleaner %
42 No Yes Yes Yes No No No Yes No 35.00
40 No No Yes No No No No No No 33.33
17 No No No No No No No No No 14.17
10 No No No Yes No No No No No 8.33
8 Yes Yes Yes Yes No No No Yes No 6.67
3 No No No Yes Yes No No No No 2.50
120 100.00

It is evident from Table 2 that 35 percent buying decisions. The details of

of the respondents said that they have TV, observation regarding this aspect is
Mobile Phone, Fans and Iron with them. displayed in Table 3
Approximately 33 percent of the Table 3: Awareness about the durables
respondents said that they have Mobile Approach of
phones only. Around 14 percent of the Number of
respondents %
respondents said that they have none of the Respondents
decision
products mentioned in the study. Roughly
about 8 percent of the respondents said I prefer to choose
they have electronic fans. Roughly around durable from the 6 5.00
7 percent of the respondents said they have choices available
mixer, TV, Mobile phones, and Iron. I will always seek
Approximately about 3 percent of the advice from shop 30 25.00
respondents said they have fans and owner
Electronic fans with them.
I will seek advice 20 16.67
2. Awareness about the durables from my children

The following set of options was place My wards will buy 42 35.00
before the respondents to test whether they products for me
will have information prior to buy any I make decisions in
durable product. Only negligible consultation with 22 18.33
percentage of respondents said they will family members
evaluate the alternatives and make their Total 120 100.00

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It is evident from Table 3 that 35 percent 4. Priorities and preferences of rural

of the respondents said their children will consumers
buy products for them. About 25 percent
of the respondents said that they go by the When asked about the priorities they place
advice of the shop owner. Nearly 17 of the while making decisions on buying
respondents said that they seek advice durables, most of them said their priority is
from their children. About 18 percent of day-to-day maintenance. The details of
the respondents said they consult their observation regarding this aspect is
family members in making purchase displayed in Table 5
decision about durables. Only 5 percent of Table 5: Priorities and preferences of
the respondents said they will evaluate the rural consumers
available alternatives before they buy any Number of
durable products. Factors Respondents %
Day- to-day
3. Factors influencing purchasing maintenance 92 76.7
decision Social
Ceremony 12 10.0
When asked about the factors that Savings 10 8.3
influence them in making a buying
Comfort 6 5.0
decision, majority of them said
Total 120 100
functionality of a product plays a
significant role in their decision making
It is evident from Table 5 that nearly 77
process. The details of observation
percent of the respondents said that they
regarding this aspect is displayed in Table
prefer using their income for maintaining
4
their daily living. About 10 percent of the
Table 4: Factors Influencing Purchasing
respondents said they also give priority for
Decision
social ceremonies. Roughly about 8
Number of
percent of the respondents said that they
Factors Respondents %
use part of their earnings to save for their
Quality 18 15
future. The remaining 5 percent of the
Functionality 65 54 respondents said they pay equal
Affordability 37 31 importance for comfort in life.
Total 120 100
5. Expectations of rural consumers
It is evident from Table 4 that nearly 54 about the durables
percent of the respondents said
functionality of a product will play a major When asked about the expectations
role in their decision making process. relating to durable products, majority of
About 31 percent of the respondents said the respondents said that it should have all
they consider affordability as most the four qualities in it. The details of
influencing factor while buying durables. observation regarding this aspect is
Remaining 15 percent of the respondents displayed in Table 6
said that they consider quality while
buying durable products.

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Table 6: Expectations of rural consumers about the durables

Number of Product Product Product Product
Respondents Affordability Suitability Durability Efficiency %
112 Yes Yes Yes Yes 93.33
4 Yes Yes - - 3.33
2 Yes - Yes - 1.67
2 - Yes - Yes 1.67
120 100.00

It is evident from Table 6 that nearly 93 4. Some of the respondents said they are
percent of the respondents said that they more comfortable with the current
prefer to buy a durable product with all the lifestyle because they believe in
four qualities mentioned in the study. Very handwork and not comforts.
negligible percent said product efficiency, 5. Most of the respondents said they give
product suitability and affordability are more importance to functionality and
solely important. not features of a product. They are
least bothered about appearance, or
CONCLUSION brand of the product.
6. Rural consumers prefer to buy
Balanced economic growth has been the
products which are affordable and
dream of our country. It is also known that
suited for rural conditions.
one size fits for all principle will not work
7. In the course of discussion, some of
in this direction. Urban and rural areas co
the respondents said it is not the
exists in our country. These to have
buying which matters, but the
different characteristic features and
maintenance of these products that
commonalities are hard to find. The
matters a lot to them. According to
following observations were made during
them quality of power is a serious
the study.
concern. The Sophistication should
1. Very negligible percentage (5%) of
match the rural condition, they
rural population has awareness about
responded.
the durables and its choices available
8. There were also discussions in
to them.
regarding the need for products with a
2. Nearly 35 percent of respondents said
different features altogether to meet
they got their durable products from
rural context.
their children. This clearly shows that
9. An overall finding from the study is
their purchase is supported by their
that the rural consumers are self
family members earning outside.
contended and, therefore, they have
3. In the course of discussion, with the
limited aspiration and demand in their
respondents, it was revealed that their
life.
priority is the maintenance of family
10. Increase in literacy, provision of proper
and daily life. Purchasing of these
infrastructure, designing of a product
durables is nowhere in their portfolio.
to fit into the rural context, increasing
the aspirations of rural consumers,

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connecting rural space with the urban
texture are the need of an hour.
11. Increasing the earning power to
withstand seasonal fluctuation in
income would certainly help rural
consumers to reap the benefits of
various products available in the
market.
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