Consumer Buying Process, Opinion Leadership, Rural Shopping Habits, Growing Consumerism

Buyer Behaviour Model

Rural Consumer Buying Process

Initiator Influencer Decider Buyer Decision maker / Idea giver Recommender Purchase decision maker Person who physically makes the purchase Actually uses the product

User -

Opinion Leadership Process

The process by which one person (the opinion leader) informally influences the consumption action or attitudes of others who may be opinion seekers or opinion recipients

What is Opinion Leadership?

Opinion Leader

Opinion Seeker

Opinion Receiver

Opinion Leader needs

Self involvement Social involvement Product involvement Message involvement

Reasons for Effective Opinion Leadership

Credibility Positive and negative product information Information and advice Category specific Two-way street

Opinion Receiver needs.

New product or new usage information Reduction of perceived risk Reduction of search time Receiving the approval of the opinion leader

Rural Shopping Habits

Role of Retailers / Opinion leaders Preference for small/medium package Mandi Towns Haats/Weekly Markets Village Markets-Paan Shops; Grocery Shops

Growing Rural Markets & Consumerism

Nielson rural markets USD 100 Bill (2025) Present USD 12 Bill Pop growth USD 3 Bill (@ 0.8%) Pricing / Inflation USD 39 Bill (@ 7%) Consumption USD 46 Bill (@ 7.8%)

Four Key Trends Driving Increased Consumption

1. Premiumization Indian consumers are upgrading their shopping baskets with indulgent items that cost more. In fact, premium products are contributing the most (+21%) to FMCG growth than other price tiers. 2. Commodity to Brands As rural consumers experiment and adopt, they are switching out everyday commodity products like loose oil for the refined variety, which increased 44 percent every year in two years. 3. Indulgence to Regular What once may have been considered an occasional treat is now becoming routine. The salty snack category is a good example, which grew at a compound annual growth rate of 55 percent from 2009 to 2011 in rural India. 4. Acceptability Increased exposure to the benefits of new products is leading to acceptance and a higher rate of return purchasing patterns.

BOP