RURAL MARKETING

(RURAL CONSUMER BEHAVIOUR)

SUBMITTED BY –

GROUP-13

JAI YUVRAAJ MALIK (19021021563)

AASTIK DIWAN (19021021018)

PARVAAN VOHRA (19021021549)

PARAS PANWAR ( 19021021305 )

SUBMITTED TO-

DR. SUNITA DWIVEDI

INTRODUCTION

Consumer behaviour is the study of individuals, groups, or organizations and all the actions related with the
purchase, use and disposal of goods and services, including the consumer's emotional, mental and
behavioural answers that lead or these keep an eye on activities. The consumer is the focus of all the selling
activities.

Consumer behaviour does not continue the same or constant in every state it changes from time to time.
There are many factors which influence consumer behaviour like -

Demographic Factors -
1. Gender: We can categorise gender into two categories—male and female. Women in our society have
started purchasing more of the goods items and other household goods, they can take independent decisions
now. But men make most purchasing choices relating to automobiles, TVs, refrigerators, cameras, and other
consumer durables. Thus, who will purchase, the product, affect the study of consumer behaviour.

2. Age: different stages of life are Infant, child, adolescent, young adults, mature adults, senior citizens, etc.
Our wants, needs, desires, and aspirations all change with age.

3. Marital Status: when a person is Single, engaged, married, separated, divorced, widow, etc. Married
people always create a stronger market for homes, life insurance, consumer durables and children’s clothing
than unmarried people. Thus, it is significant to study marital status of a consumer before finding out his
shopping behaviour.

4. Ethnic Factor: Low class, middle class, upper class etc. Minority group all over the world have
traditionally received less education, fewer cultural opportunities and earned lower incomes than others. The
condition of such people is no doubt changing but still the consumption pattern of minority group people
with respect to both ‘type and quality’ of goods they purchase differ from others.

5. Income factor: income of level which are Low, low middle, middle, upper middle, upper etc. An
individual’s monetary gain determines to a well nice extent the kind and quality of merchandise him going
to buy. People with low income are enforced to spend most of their money on food, rent, clothing, and other
essentials. As they become more well-to-do, they tend to purchase higher quality items and buy more
luxuries. Of course, people making the same amount of money may spend it in different ways depending on
other personal factors.

6. Education: Illiterate, primary education, high school education, college education, university education,
professional education, etc. researches have shown that preferences in music, art, entertainment, food,
clothing, automobiles etc. are influenced by the extent, kind and quality of one’s education. Generally
speaking, the more educated a person is, the more discriminating a shopper he is.

7. Occupation: some of the occupations are unskilled, semiskilled, skilled people, agriculturist, govt.
employees, bureaucrats, professional, businessmen etc. The product preferences of white-collar employees
tend to be very different from that of blue-collar employees. Thus, the study and forecast of the behaviour of
a shopper is possible if we know his occupation.
8. Family Size: different family sizes small family, big family, and joint family etc. If the size of the family
small it will purchase essentials in small quantity but if the size of the family is large it will buy more
essential products like food, clothes, etc. in large quantity to fulfil the necessity of every member of the
house.

Geographic Factors -
For some good or services, geographical differences may be very important. In the United States, for
example, clearly different taste partialities for food exist when comparing the North and the South or the
East-West and the West coast, ranging from what to eat for breakfast to what to drink with dinner.

These geographic differences are even greater around the world. For example, in the United Kingdom,
northerners choose white pickled onions, whereas southerners choose brown ones. Few people drink orange
juice for breakfast in Iran, but many do so during the day as refreshment. In Japan, soup is consumed mainly
for breakfast. If the geographic environment of the area where the consumer is living in hot, naturally the
demand for refrigerators will be high if the area is cold the demand for heater will be more. To better
understand existing consumer differences based on geography, marketers go to great lengths to research and
analyse behavioural patterns. The availability of such geographic information can help the marketer target
mailings, advertisement, or personal sales pitches that will be most effective and efficient.

Psychological Factors -

A number of psychological factors also effect buyer behaviour. In the context of marketing, perhaps the
most extensively quoted psychological approach is that of Abraham Maslow. He developed a hierarchy of
needs, shaped like a pyramid, which scales from the most essential immediate physical needs such as
hunger, thirst, and shelter to the most luxurious none-essentials. It was Maslow’s argument that individual
focuses on the most urgent need first, starting with the physiological. But as each need is satisfied and
lower-level physical needs are satisfied, attention changes to the next higher level, resulting finally in the
level of self-actualization or fulfilment.

LITERATURE REVIEW

 In this project, based on interviews with 198 shoppers in the Muncie, Indiana, metropolitan area,
Joseph D. Brown (1972) looked at both the degree of loyalty and the factors that appeared to
influence it. Both methods are used.

The report went over all of the steps and procedures in detail. One-third of the food was discovered
to be contaminated. 81 percent of customers bought at least one item from a single store. Private
brand; one-third of the customers were private level loyalists; Store loyalty appeared to be only a
small element in explaining private-label loyalty. Price tended to win out over quality as the most
important loyalty factor.

 Carl E. Block (1972) attempted to study low-income households' search behaviour. A survey of 350
households in a ghetto in St. Louis was conducted to determine the sources and types of information
used in purchasing decisions. The patterns of store consumption in the purchasing of grocery
products were also investigated. Information about dealers was significantly less relevant than
information about products. Because so many had to shop within walking distance of their houses,
just a small percentage researched comparable prices and other people's experiences. 84 percent had
radios and television sets, and nearly two-thirds read the newspaper every day, although their reading
time was limited.
 The newspaper was regarded as the most reliable source of product details. A supermarket was
visited by two-thirds of the group, whereas a corner store was visited by one-fourth. Prices were
important to those who read a lot, but convenience and service were important to those who didn't
read much.

 Richard W., Olashavsky and Donald H. Granbois (1979) analysed consumers' pre-purchase
behaviour and found that a significant portion of purchases did not need decision-making, even in the
first transaction. The current research's excessive emphasis on decision making may inhibit
researchers from looking into other essential types of consumer behaviour.

 Anderson, Paul F. (1986), provided a critical rationalist approach on consumer buying behaviour in
his article. It was argued that a relativistic explanation of the field was superior to a positivistic one
because:

1. It provided a more accurate description of how knowledge was actually generated in the field,
2. It suggested a framework for dealing with the various problems that arise in day-to-day
research.

 The study of Palan, Kay M. and, Robert E. Wilkes in 1997, represents a grouping of both young
adult impact methodologies and parental reaction techniques, created from inside and out interviews
with adolescents, mothers, and fathers. Furthermore, the apparent viability of juvenile impact
methodologies is inspected, uncovering that adolescent are best in their impact endeavours when
they imitate grown-up procedures. Indications of these discoveries for future investigation region
unit referenced.

 A review analysis in the year 2000 was to energize research on the social parts of shopper conduct,
especially as found in gatherings of customers and showed through bunch activity by Bagozzi,
Richard
P. In view of work by paving the way to date logicians, another idea of social realities is introduced
that is grounded in the manner individuals from a gathering see themselves and the ramifications of
this for bunch activity. Gathering activity, thus, is displayed to require unexpected theoretical plans
in comparison to usually utilized for individual activity or relational and large-scale social points of
view. Among different thoughts, the idea of how it affects a gathering part to expect that the
gathering exercises.

 In 2005, Battolio, Raymond C., Edwin B. Fisher came up with an analysis that depicts the overall
design of the controlled economic environment and reports the consequences of a progression of
tentatively instigated value changes on consumer behaviour is one such environment. The test results
exhibit the reasonableness of controlled economic environments as labs for the trial examination of
consumer behaviour and add to our comprehension of consumer behaviour, especially with report to
the proceeded with impacts of brief worth change on the synthesis of utilization.

 Adval, Rashmi in 2012, came up with a review that uncovers, that member encountering positive or
negative influence passed judgment on items depicted by brand and trait data. Four investigations
 utilizing boundary assessment and response not set in stone whether the effect of impact on brand
name was the consequence of its impact on-

(a) member's impression of its evaluative Implications at the hour of coding or

(b) the significance they associated with that while bunch activity it with various information to
work out a judgment.

Results showed that positive influence expanded the limit of the brand's evaluative ramifications
instead of the significance that members joined to it. A fifth examination incontestable the
ramifications of those discoveries for item choices made 24 hours while affecting was inspired.

 A study analysis in 2017 by Kumar Rakesh has been directed on consumer behaviour and the job of
consumer research in advertising. The reason for this examination paper was to features the job of
consumer research in promoting. The information has been gathered from the optional assets. The
exploration uncovered that consumer is the focal point of all the advertising exercises. Information
on his exercises and behaviour is one among the chief fundamental parts of the advancing. Consumer
behaviour research is led for each period of the utilization interaction: from before the buy happen
(when the consumer initially becomes mindful of a need), to the inquiry and assessment of item
choices (going from easy to broad data search), to the real buy choice (counting such factors as item
and brand decision, store decision, and technique for instalment), to after the buy occur (through any
times of vulnerability, fulfilment, disappointment, repurchase, or further pursuit in the commercial
centre).

RESEARCH GAP

After the detail study of review literature, we have discovered that loads of research work have been done in
the field of consumer behavior research. But at the same time, it is actually the case that no research work
has been at this point accomplished for expensive products in rural India. Therefore, there was an
extraordinary need of doing research in this market moreover. That is the fundamental purpose for
determination of this specific subject and region.

Need of Study
In India more than 80% population lives in the rural area, income of people has increased manifold. Yet this
is a neglected market. In this research we tried to know the behavior of rural consumers towards expensive
products. In this way, that producers can expand their deals and catch the vast majority of the piece of the
pie.

Objectives of The Study

1. To analyze the impact of demographic factors on consumer behavior in durable products like
expensive products in Rural Area.
2. To highlight the need and importance of Consumer Behavior.

Research Design
1. Methodology of Data Collection
The present study has been conducted with the assistance of primary and secondary information to
understand the consumer behavior towards expensive products in rural India.

 Primary Data
The primary information for the review has been gathered with individual perception, pilot overview,
and survey.

 Secondary Data
The secondary information has been collected from the subsequent sources:
1. Books and journals. 2. Research reports. 3. Magazines, articles from newspapers. 4. Websites.

2. Sample Size and Sample Design

Planning a sample, due care has been taken to cover all segment factors like age, sex, income, education,
consumers background, and so forth to make the sample more delegate.

3. Limitations of the Study

The main limitations of the study are:

1. The time and cost factor didn't permit/license the researcher to cover all the parts of consumer
behavior.
2. Deficient and wrong data and poor reactions to certain inquiries couldn't be kept away from. In
certain cases, the reactions of respondents were discovered unimportant, the affirmation was given to
keep up with mystery of information, yet the ideal achievement couldn't be accomplished.
3. As the domain of expensive products is so huge, so it was impractical to give thought on a wide
range of expensive products accessible on the lookout.

4. Finding from the Study

• Taking opinion from peers before purchasing

(It is common for human to seek other advice before doing anything, and people often gets confused from
buying and tends to seeks opinions from other about their purchase decision)

o Education
It is known less educated consumers strongly agreed on the opinion of taking advice while
others were moderately agreed on this. If the combined opinion was observed then it is clear
that rural consumers opined that they needed opinion of others before purchasing expensive
product or any expensive product.

o Occupation
Here is significant relationship between different occupation groups and consumer decision
to take opinion of others before purchasing of expensive product. Mostly consumers in all
occupation groups, consumers replied that opinion of others should be taken before
purchasing the product.

o Gender
It has been observed that the customers take opinion of others like friends, Neighbours and
relatives before purchasing expensive product. Majority of males and females strongly agreed
 while some of the males and females were moderately agreed on this. It accepted an alternate
interpretation which concluded that there is significant relationship between different gender
groups and consumer decision to take opinion of others before purchasing of expensive
product. It was found that more than 90% of total consumers agreed that opinion should be
taken, while others disagreed on the opinion.

o Age
It was discovered that there is a link between different age groups and customers' desire to
seek the advice of others before purchasing an expensive gadget. It was clear that the
majority of consumers in all groups agreed to seek out the advice of others before making a
purchase. Only a few customers made their own decisions and did not want to consult.
Moreover, kids were depended on their parent for the same.

o Marital status
It was discovered that there is no substantial link between marital status and the decision of
consumers to seek the advice of others before acquiring an expensive gadget. Consumers of
any marital status were observed to wish to seek assistance from others. Consumers in remote
areas were unaware of websites and other feedback methods, thus their only alternative was
to seek information from others who were using the same products

• Time and occasion affecting the buying decisions

(As we all know, during different time of years, around festivals and different seasons, the dealer and
sellers offers variety of offer and deals which affects the purchase decisions by preponing or
postponing the decision to get maximum value)

o Education
It has been found that educated consumers were much aware of festival season and discount
season offers. They were mostly found active rather than low educated consumers.

o Occupation
There is no significant relationship between different occupation groups and time/occasion
to purchase expensive product. However, it is concluded that consumers waited for festival
and discount season to purchase the product.

o Gender
It is depicted from the research that majority of the males purchased the product in normal
days while others in festival season, more of the females purchased expensive products in
normal days and less in festival season. With the analysis, it means there is no significant
relationship between different gender groups and time/occasion to purchase expensive
product.

o Age
It was discovered that there is a link between different age groups and the time/opportunity to
purchase technological products. Consumers aged 25 and above, as well as those aged 45 and
over, liked to buy on regular days, whereas those aged 25 and up preferred to buy during
festivals.

o Marital status
 It was discovered that there is no link between marital status and the time/opportunity to
purchase an expensive product. Their approach towards purchasing was normal.

• Rural consumers loyalty towards brands

(Brand loyalty is the positive association consumers attach to a particular product or brand.
Customers who exhibit brand loyalty are devoted to a product or service, which is demonstrated by
their repeat purchases despite competitors' efforts to lure them away.)

o Education
All consumers in almost all education groups were found brand loyal
as they agreed to purchase same brand in their next purchase.

o Gender
It is revealed that majority of males and females were brand loyal. It is evident that there is no
significant relationship between different gender groups and brand loyalty of consumers.

o Occupation
There was no significant relation between occupation and brand loyalty. The persons would
stick to the same brand despite his or her occupation
It was discovered that there is no substantial relationship between customer brand loyalty and
age groupings. In all age categories, it appeared to be obvious that consumers who were
content with one brand would rarely switch brands

o Marital status
It was shown that there is no substantial link between marital status and consumer brand
loyalty. The majority of consumers, regardless of marital status, were found to be brand
loyal, while some were not and tried new brands

• Third person influence on purchasing decision of rural customers

(Peer influence is what often compels us to copy, comply, and try to impress the people around us, in
turn affecting what brands we buy, wear, or use.)

o Education
All educational groups, majority of consumers were independent in taking decision. But it
was also observed that different influencer also exists who affect their purchasing
decision like friends, Neighbour and even children also.

o Gender
It is evident that there is a significant relationship between different gender groups and person
influence the purchasing decision. It was observed that males mostly took decision
independently and mostly female were found to be dependent on their spouse. It was also
evident that children also played influential role in decision making process now yet it was a
small percentage.

o Occupation
 The person seeks advice from his colleagues and partner in business before purchasing or
make a decision of purchase, so there is no direct relation but the other people in the same
occupation do affect the purchase decision.
It was found that there is significant relationship between different age groups and person
influence the purchasing decision. The majority of consumers in all age categories made their
own decisions, however spouses, friends, and relatives were seen to have an influence on
their product selection.

o Marital status
It was discovered that varied marital statuses and people have a substantial influence on
purchase decisions. It appeared that married consumers were more autonomous and relied on
their spouses and friends for advice, whereas unmarried consumers were mostly independent
and relied on their friends for advice.

• Price competition among different brands

(The situation in which companies try to sell their products or services at lower prices than similar
products or services sold by other companies)

o Education
There is no significant relationship between different education groups and effect of price of
competitive brand of expensive product on purchasing decision of rural consumers. Price of
the competitive brand no doubt had affected mostly consumers in all education groups.

o Gender
It has been depicted from the research that there is a significant relationship between different
gender groups and effect in price of competitive brand of expensive product on purchasing
decision of rural consumers. It was apparent that both the gender groups compared the price
of competitive products, their feature and the price competitive product changed their mind.

o Occupation
As we all know the purchase decisions are made according to the income of the person, so the
maximize his value for money, the person tends to buy from the product from the seller
which offers best value for money.

It was found that there is a link between different age groups and the effect of pricing of a
competitive brand of expensive device on rural consumers' purchase decisions. Majority of
consumers across all age groups believe that the price of a competing brand influences their
purchasing decision. But some of consumers disagreed with the statement above.

o Marital Status
The price of a competitive product was found to influence mostly married consumers. The
cause for this could be a lack of financial resources, causing them to compromise on brand
preference. It is clear that there is a link between varied marital status and the effect of the
price of a competitive brand of expensive device on rural consumers' purchasing decisions
CONCLUSION
It has been concluded from the review that demographic factors essentially affect consumer behaviour.it is
uncovered from the review that there is critical connection between various gender orientation and consumer
decision to take assessment of others prior to buying of expensive item. It has been additionally found that
larger part of the consumers concurred that assessment of others ought to be taken prior to buying of
expensive item. It has been seen that consumers are extremely energetic and profit the chances of discounts
in celebration reasons. It is obvious that there is no critical connection between various gender groups and
brand faithfulness of consumers. It was tracked down that one-fourth of complete consumers were not brand
steadfast as they needed to switch over to next brand.

It is apparent from the exploration that males for the most part took decision freely and female were viewed
as reliant upon their companion. It is tracked down that both the genders looked at the cost of competitive
products, their component and cost competitive item before conclusive buy. It can likewise be presumed that
there is huge connection between various age gatherings and time/event to buy expensive item. It is obvious
that there is no critical connection between various age gatherings and brand dedication of consumers. It has
been obvious from the exploration that consumers once fulfilled from one brand would infrequently change
their image choice.it has been found that companion, friends and family members have likewise impacted
the buy decision of purchasers in rustic region. The concentrate likewise uncovered that there is no critical
connection between marital status and consumer decision to take assessment of others prior to buying of
expensive item. It is additionally inferred that there is no critical connection between various marital status
and time/event to buy expensive item. It is likewise reasoned that there is no huge connection between
various marital status and time/event to buy expensive item.

It is clear that married customers accepted guidance of spouses and companions while out of unmarried
buyers generally were free in settling on purchasing decision. It has been seen that less educated purchasers
emphatically conceded to the assessment of taking guidance while others were tolerably concurred on this. It
was tracked down those informed buyers were much mindful of celebration season and rebate season offers.
Brand devotion in all educational groups was same as there is no effect of schooling on brand dependability.
It was seen as that among every single educational gathering, larger part of shoppers thought that they took
purchasing decision autonomously. It has been likewise found that Price of the result of serious brand
altogether impacted the purchasing decision of shoppers. It is additionally uncovered that larger part of
shoppers in all occupation groups take the assessment of others prior to buying the expensive item. It has
been uncovered from the review that greater part of purchasers regardless of their occupation were found
brand faithful.

Consumer is the focal point of all the marketing exercises. Information on his activities and behaviour is one
of the main parts of the marketing. The purchasers purchase the merchandise to fulfil various requirements
and drives. The investigation of consumers behaviour holds incredible interest for us as customers, as
understudies and researchers, and as advertisers. Customer's research has arisen as an expansion and an
indispensable piece of marketing research. In this examination we attempted to know the behaviouri of
country buyers towards expensive products. It is vital for the makers to concentrate on the behaviour of
purchaser, with the goal that they can build their deals and catch the majority of the market share.

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