Rural Mktg Module v - 601 EM

8/12/2019 Rural Mktg Module v - 601 EM

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Rural MarketingModule V


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Consumer decision making varies with the type of buying decision.

Complex and expensive purchases are likely to involve more buyer

deliberations and more participants. Henry Assael distinguished four

types of consumer buying behavior based on the degree of buyer

involvement and the degree of differences things among brands.

Complex buying behaviorConsumers engage in complex buyingbehavior when they are highly involved in a purchase and aware of

significant differences among brands. This is usually the case when

the product is expensive, bought infrequently, risky and highly self-

expressive. The marketer needs to differentiate the brands features,use print media to describe the brands benefits and motivate store

sales personnel and the buyers acquaintances to influence the final

brand choice.

For eg. Automobile, two-wheeler, consumer durable.

CONSUMER BUYING BEHAVIOR MODELS


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Dissonance-reducing buying behaviorSometimes the

consumer is highly involved in a purchase but sees little

difference in the brands. The high involvement is based on the

fact that the purchase is expensive, infrequent and risky. Forexample, carpet buying. After the purchase, the consumer might

experience dissonance that stems from noticing certain

disquieting features of the carpet or hearing favorable things

about other carpets. Thus marketing communication should aim

at supplying beliefs and evaluations that help the consumer feel

good about his or her brand choice.

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Habitual Buying Behavior Many products are bought under conditions

of low consumer involvement and the absence of significant brand

differences. Consider salt. Consumers have little involvement in theproduct category . They go to the store and reach for the brand. If they

keep reaching for the same brand, it is out of habit, not strong brand

loyalty. It happens with most low-cost, frequently purchased products.

Marketers find it effective to things use ad repetition, price and sales

promotion to stimulate product trial.

Variety-seeking buying behaviorSome buying situations are

characterized by low consumer involvement but significant brand

differences. Here consumers often do a lot of brand switching. Thinkabout cookies. The consumer may reach for another brand out of boredom

or a wish for a different taste. The marketer will try to encourage habitual

buying behavior by dominating the shelf space, avoiding out of stock

conditions, sponsoring frequent reminder advertising, offering lower

prices, deals, coupons and free samples.

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CULTURAL FACTORS in practice over a long period of time.

Rural India, being until now largely isolated from new practices

and things https://www.facebook.com/ialwaysthinkpretty

customs, tends to follow the customs of its traditional society. In

urban India, however, in the due course of time, many of thecustoms have changed and continue to change, a change that is

accelerated when a new generation adopts new value systems and

practices in order to fit into perceived modernity.

Regional influences can be defined as a set ofattributes

exhibited in clothing, preference for certain types of cereals, food

preparations etc. For eg. Tamilians prefer to cook their native

idli with sambhar.

FACTORS AFFECTING CONSUMER BEHAVIOR


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Traditions are long standing beliefs that are believed to be true

in nature and are often practised in a ritualistic manner, without

knowing the origin or questioning the need to do so.

For eg. A tradition that after washing / shampooing the hair, it

should not be left open is based on a things belief in some parts

of rural India that this gives an opportunity for evil spirits to

enter. Shampoo ads showing the bounce in the womans hairafter a wash may communicate a message quite different from

what was intended.


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Rural Taste

-Bold and Primary Colors-Cinema, Nautanki, , Dangals, Melas

- Synthetics, Colourful

-RedHappiness Auspicious. Green Prosperity

Subject

-Colors Liked-Entertainment

-Clothes

-Color Relevance

Urban Taste

-Shades of Colors, Light Hues things-Theme Parks,

-Internet Travel

-Denim, Cottons, Designer,

-RedDanger - Green - Safety

FACTORS AFFECTING CONSUMER BEHAVIOR


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-Touching feet

-Hair should not be left open after washing.

-Housing in rural areas based on caste and in urbanareas based on

Socio economic class.

- Influenced by NGOs, Opinion Leaders, Aanganwadi workers,

SHG members.

-Joint Family in rural areas and Nuclear Family in urban areas.

-Role and Status of Sarpanch, retired military personnel, priests,

teachers, medical practioners.- Product choice features

-Very Social in Rural Areas

SOCIAL FACTORS


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Rural Urban

Social/Political status Educational Degree

Tractor/Jeep/Car Car

Large Pucca House with courtyard House Locality

Childrens city education / jobs Childrens school /

college

Land Airconditioning

Telephone Club membershipPilgrimage Holiday Abroad

PRODUCTS AND STATUS SYMBOLS


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TECHNOLOGICAL FACTORS

Rural India is beginning to experience the impact of technology,

leading to major changes that are transforming the countryside.

Opportunities, products, things services, knowledge, information

are all exploding.

Introduced with the purpose and need to create an instant network

for good governance, telecommunications has transformed rural

India in so many other ways that is of interest to marketers. STD

booths and PCOs have emerged as the new community centre inthe villages for the exchange of news and views for every age

group and therefore an important place fro marketers to display

brand communication messages.


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The entire economic environment of rural India shows a much

improved prosperity due to repeated benevolent monsoons, new

and improved techniques, higher quality of inputs and increasingawareness and education on agriculture.

Banking is reaching out to the doorstep of more and more

farmers. Finance is now more readily available and so is credit.

ECONOMIC FACTORS


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POLITICAL FACTORS

Schemes launched by Government has led to thedevelopment of rural areas.

The Government of India is empowering the

Panchayati Raj and other village institutions by making

available developmental funds. This has resulted in

major purchases of equipment and materials needed for

infrastructure development.

30% compulsory representation of women in localbodies is leading to their empowerment, encouraging

women in rural India to explore income generation and

entrepreneurial activities.


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FUNDAMENTALS OF RURAL CONSUMER

BEHAVIOR

Demonstrations, Targeting Opinion Leaders,

Employing Trained Sales Persons

Lack of Strong Brand Consciousness

Generally ask for the product and not the brand.

Indian consumers, on an average, try about six brands

of same package goods product in one year, compared

to two for Americans.


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LIFESTYLE OF RURAL CONSUMER

Rural Consumer is very religiousDabur developed areligious calendars and gave Hanuman Chalisa along with

their products. Ganga made of milk and holy water of

Ganga. Govinda as a Brand Ambassador.

Rural Consumers prefer to work Hard themselves

Machines to be sold on the basis of benefits offered and not

on the basis of comfort and convenience.

Strong Family ties and respect for Family Values

Likes to play Cards and Hangs out at Choupal.


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RURAL SHOPPING HABITS : CONSUMER

INSIGHTS

Preference for small or medium Package - Britannias

Tiger Biscuits, Cavinkares Chik Shampoo, and small

Coke for Rs. 5.

Role of Retailer

Role of Opinion Leaders for durablesOpinion

Leaders like Sarpanch, village elders and educatedYouth of the village.


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OCCUPATION AND INCOME

In the rural sector, a range of goods and services beyond

the very basic ones are bought by a consumer, influenced

by the occupation and income of the individual.

Fishermen buy a boat and large nets, whereas a farmeropts first for a tractor and pump set.


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INFORMATION SEARCH AND

PRE-PURCHASEEVALUATION

The rural consumer primary seeks and gets his information fromopinion leaders and influencers, rather than the media. However,

this information search is fuelled by exhibitions and road

shows, because of the opportunity of personal interaction and

leisurely pace of absorbing and understanding the information

and its relevance.

In the case of high involvement products, this information search

needs to be supplemented by an out of village visit to a company

outlet with an opportunity for personal interaction. The need to

demonstrate individual accessories of the product and their

performance also becomes critical.

The ultimate clincher is always the touch and feel experience.

Anything less will not lead to a purchase.


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STAGES IN BUYING DECISION PROCESS

Problem Recognition The buying process starts when the

buyer recognizes a problem or need. The need can b triggered

by internal or external stimuli. In the former case, one of the

persons normal needs hunger, thirst rises to a threshold level

and becomes a drive. In the latter case, a need is aroused by

external stimulus. A person passing through a bakery and sees afreshly baked cake which stimulates her hunger. Marketer

needs to identify the circumstances that trigger a particular

need.

Information search - Two levels of involvement with search.

The milder search state is called heightened attention. At thislevel person simply becomes more receptive to information

about product. At the next level is active information search.

The person looks for reading material, phones friends and

engages in other activities to learn more about the product.


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DIFFUSION OF INNOVATION

Diffusion of Innovations is a theory of how, why, and at

what rate new ideas and technology spread through

cultures.

Elements of diffusion of innovations

-Innovation- Rogers defines an innovation as "an idea,

practice, or object that is perceived as new by an individual

or other unit of adoption" .-Communication channels - A communication channel is

"the means by which messages get from one individual to

another.


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-Time - The innovation-decision period is the length of

time required to pass through the innovation-decision

process" . Rate of adoption is the relative speed with

which an innovation is adopted by members of a social

system.

-Social system - A social system is defined as a set of

interrelated units that are engaged in joint problem

solving to accomplish a common goal.

Documents

Rural Mktg Module v - 601 EM