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 incomemonsoon ,seasonal, agro. impact, h) festivals and functionsonam, 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 demandboth 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 1increasing 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 incomeShort 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.