Module - 2

Rural Consumer’s Behavior

Behavior of rural consumer and farmers
The understanding of consumers has to invariably come
from the consumer. The information relating to consumer
behavior has to be necessarily based on an enquire into
their purchase process.
The purchase act by a consumer is governed by various
factors such as economic, social and psychological.
Behavior of rural consumer and farmers
Consumer behavior refers to the acts of individual directly
involved in obtaining and using goods and services and includes
the decision process that provide a purchase. Consumer
behavior is not only the study of what people consume but also
‘where’, ‘how often’ and ‘under what conditions’ the product is
consumed.
Behavior of rural consumer and farmers
The understanding of consumers has to invariably come
from the consumer. The information relating to consumer
behavior has to be necessarily based on an enquire into
their purchase process.
The purchase act by a consumer is governed by various
factors such as economic, social and psychological.
Behavior of rural consumer and farmers

The understanding of consumers has to invariably come from the

consumer. The information relating to consumer behavior has to be
necessarily based on an enquire into their purchase process.

The purchase act by a consumer is governed by various factors

such as economic, social and psychological.
Behavior of rural consumer and farmers
Rural consumer behavior influenced by:

a) Environmental factors:
• Economic
• Political
• Technological
• legal
.
Behavior of rural consumer and farmers
2 Socio – cultural
• Cultural and sub cultural
• Socio classes
3 Personal factor
• Age and life cycle
• Occupation
• Life style
• Self-concept
Behavior of rural consumer and farmers

A majority of rural consumers draw information from friends and

neighbors
More rural consumers gather information from retailers, compared
to those in urban areas.
About 70% of the rural consumers were advised by the retailer to
buy a specific brand.

* Refer the PDF File shared

Behavior of rural consumer and farmers
A majority of rural consumers draw information from friends and
neighbors
More rural consumers gather information from retailers, compared to
those in urban areas.
About 70% of the rural consumers were advised by the retailer to buy
a specific brand.
 Buyer characteristic and buying behavior
1. Literacy level: literacy is one f the important factor in developing awareness and
.
knowledge about technological changes.

2. Income level: low purchasing power, standard of living, per capita income, economic and
social positions are the traits of rural consumer.

3. Reference group: typically, in rural area the reference groups are primary health workers,
doctors, teachers and panchayat members, the village trader or the grocer, commonly
called Baniya or Mahajan are an important influencer in the decision making of rural
customer. A marketer needs to be aware of these influences that can effect changes in the
rural customer’s consumption patterns.
 Buyer characteristic and buying behavior
4. Occupation: consumption patterns differ according to income levels.
.
Typically, in a rural area the principal occupation is farming, trading, crafting,
pluming, electric works, primary health workers and teachers.

5. Media habits: rural people are found of music and folklore. In rural areas a
popular from entertainment is the tamasha and nautanki. And then there
are television radio, and video films.

6. Rural electrification: the main objective is to provide electricity for

agricultural operations and small industries in rural areas. About 5 lakh
villages 77% have electricity supply and this has increased the demand for
electricity supply and this has increased the demand for electricity motor,
pumps and agricultural machinery.
 Rural v/s urban markets
.

 Rural Market : Rural market

Village is a human settlement with a small administrative unit. It comprises few hundred
households and the population growth due to immigration is insignificant. Migration from
village to city/ town is to get better education and employment.

 Urban Market : City has a large population size growing at a fast growth rate due to
immigration from rural areas for education and employment. The population density is
high. Towns are smaller urban units.
 Rural v/s urban markets
.
• Rural Market : Village has land for human settlement and for cultivation. The settlement are
predetermined clustered but in some areas households settle on respective cultivable land
holdings.

• Urban Market: In rural market minimum infrastructure availability are provided. The city
settlement is compact through spread over a large area. Land use is residential commercial,
industrial roads and streets, institutional and community facilities etc.
• In urban market maximum infrastructure are provided.
 Rural v/s urban markets
.
• Rural Market : Village has land for human settlement and for cultivation. The settlement are
predetermined clustered but in some areas households settle on respective cultivable land holdings.

• Urban Market: In rural market minimum infrastructure availability are provided. The city settlement
is compact through spread over a large area. Land use is residential commercial, industrial roads and
streets, institutional and community facilities etc.

• In urban market maximum infrastructure are provided.

Customer relationship management (CRM)
.

Customer relationship management includes various strategies and techniques to

maintain healthy relationship with the organization’s existing as well as potential
customers. Organizations must ensure customers are satisfied with their products and
service for higher customer retention.

CRM softwares are used to organise & manage relationships

Goal: improve business relationships
Used by startups, real -estates,legal,insurance,healthcare etc
Need for customer relationship management
.

• Customer relationship management leads to satisfied customer and eventually higher

business every time.

• Customer relationship management goes a long way in retaining existing customer

• Customer relationship management ensure customers return back home with a smile.

• Customer relationship management improves the relationship between the organization and
customer strengthen the bond between the sales representatives and customers.
 Rural markets research

The systematic design, collection, analysis & reporting of data and finding relevant
solution to a specific marketing situation faced by a company in Rural Market.

Significance of Information:
a) Strategic Decision making
b) Management Decision control
c) Operational Control Decisions

Sources of info: Gathering intelligence, internal reporting, marketing research

 Rural markets research Process & players
.
Step-1 Defining a research problem
Step-2 Finalizing a research design
Step-3 Developing a research hypothesis
Step-4 Planning the research methodology
Step-5 Data collection
Step-6 Conclusion and recommendations

Major players: NCAER-Delhi , AC Neilson, Sampark-Hyderabad , Indian Agribusness

Systems etc
 Types of rural studies
.
Quantitative studies
Since penetration and consumption of most products are low the markets is
under development hence studies cannot be done for most products.

Qualitative studies
4’As of rural marketing
Availability & Acceptability
Affordability & Awareness
 SOURCES OF DATA COLLECTION METHODS
.
Secondary sources

• Census of India, NCAER, DRDA, Panchayat office, media organs, World wide orgn.etc

• Primary sources
• In-depth interview
• Focus group discussion
• Social research
• Questionnaire
• sampling
www.paruluniversity.ac.in