Chapter 3 (CB)

Chapter 3
Rural Consumer Behaviour - Ramkishan, a

farmer from UP consulted a progressive farmer to replace
tractor tyre
Copyright © 2016 Pearson India Education Services Pvt. Ltd

Rural Marketing, 3/Ed Pradeep Kashyap
Learning Objectives
• Describe the customer buying behaviour model in rural

India in terms of cultural, social, personal and
psychological factors
• List and define the major types of buying decision

behaviour and the stages in the buyer decision process
• Describe the adoption and diffusion process for new

products

The Consumerr Behavior
buying Model
• Marketing Stimulii, Other Stimulii, Buyer's
characteristics, Buyer's decision process, buyer's

decision.
• Because of heterogenious nature of rual markets, the

universally accpeted CB model cannot fit.
• Understanding 'why' rural people purchase is the

diffuculty task.
• Hence, rural CB needs to be viewd from different 4

factors - cultural, social, psychological, personal

Factors Influencing Consumer Behaviour

Cultural Social Personal Psychological
• Culture • Reference • Age and life cycle • Motivation
• Sub-culture groups stage • Perception
• Social Class • Family • Occupation • Learning
• Roles and • Economic situation • Beliefs and
status • Lifestyle Attitudes
• Personality and self
concept
WHY RURAL CONSUMERS BUY? THE CHANGES INFLUENCING CONSUMER

BEHAVIOUR

Cultural Factors
ure
toms (socially accepted
ms) and traditions (long

nding beliefs) more
valent in rural
-culture
te system plays a major
in community thinking
dwelling in rural
al class
io-Economic Classification

Socio-Economic Classification
Based on the education level of the
chief wage earner and the type of
dwelling
R1 prefer to make bulk purchases from

nearby town markets; R2 and R3 buy
from Haats
• Market Research Society of India

• This classification is used by
most media researchers and
brand managers to
understand the Indian
SEC Breakup in Rural consuming class.
• Now, the reelvance of
dwelling type is being
changed & hence SEC is
changing.
New Socio-Economic Classification
Based on:

1) Level of Education of the chief wage earner
2) No. of assets (out of 11)
12 household categoris
Common for both Urban & Rural

Based on Education & Assets.

Reference

• Informational – Trial of products used by
others
Groups • Normative – the need to belong
• Traditional joint family giving way to
Family individualized joint families with separate

kitchens in the same house with bonding on
social occasions
• Caste a major factor

Roles and • Increasing empowerment of women in the
Status decision process

• Progressive farmers gaining in status

Social Factors
Reference

• Informational – Trial of products used by
others
Groups • Normative – the need to belong
• Traditional joint family giving way to
Family individualized joint families with separate

kitchens in the same house with bonding on
social occasions
• Caste a major factor

Roles and • Increasing empowerment of women in the
Status decision process

• Progressive farmers gaining in status

Reference Groups - a group of people
having influence in consumer purchasing
• Anganwadi workers: Grassroots agents working on child

development programmes with focus on nutrition, education

and health
• Auxiliary nurse/midwife: For pre-natal, childbirth and post

natal check-ups
• SHGs: To access low-cost finance
• Agri-cooperative societies: To provide funds for

agricultural purposes through NABARD
• NGOs: Belong to local community and hence sensitive to

Social Reference -Opinion
Leaders
• Traditionally with the gram pradhan or sarpanch

• With growing education, teachers became strong influencers
especially amongst children
• Rural youth have become the strongest influencers due to

education, mobility and access to information
• Head of the family continues to be the decision maker

• An opinion leader can be a village sarpanch, teacher, bank
manager, doctor, school teacher or principal, development
officer, a youth extension officer or even a social worker.
Sociability - typical rural scenario
• Rural people spend more time with family and friends, these

constitute reference points for daily lives
• Male members assemble at the choupal
• Women gossip with other women while completing their

daily chores at common places
• A rural neighbour is an extension of the family
• Every new purchase is discussed with the neighbourhood

Personal Factors - this gives a fair idea of the
products and services consumed by rural in various stages of the life
cycle.
Age and stages of the lifecycle

AGE Lifestyle stage Products/Services consumed
Below 12 Childhood Toys, local snacks, sweets and chocolates
13 to 19 Teenage Mobiles, television, cinema
Motorcycle, LPG, readymade clothes, local

20 to 40 Youth
liquor, haat
Tractor, playing cards, kisan credit cards,

41 to 60 Middle age
postal savings, mela
Choupal, pilgrimage, hukka, social and

Above 60 Old
political function

Personal Factors (Contd.) -
purchasing power of the rural is unpredictable

• People with identical incomes
Occupation may opt for different items based
and on occupation
• Variations in income pre-harvest
income and post-harvest
• Dependent on weather for

Economic farmers
situation • Savings in banks and post offices

Personal Factors (Contd.)
Lifestyles-activities, interests, opinions, demographics .

Products and Staus Symbol is imp factor

Personal Factors (Contd.)
Personality and Self-concept
Personality is the sum total of the human characteristics and
self-concept is the self-image that we perceive ourselves in
the society.

• Different brand ambassadors in urban and rural
• Ideal role ambassadors in rural - natural and homely
• Rural consumers couldn't be hooked to Hema Malini
washing the utensils (Bartan Bar) with a soap - hence need
arisen for diff brand ambassadors).
• Amitabh Bachan for conventional and self confidence
 Mahinder Singh Dhoni for jovial, youthful and cool
 Juhi Chawla for beauty and homely
 Abhishek Bachan - smart, colourful, modern
 Amir Khan - smal & simple.

Motivation
Psychological Factors
• Content to satisfy basic needs relevant to his environment

• Slow in accepting new products
• Not driven by “status symbols” with neighbours

• Here, the role of opinion leaders play an imp role in motivating
the rural consumers.
Perception
• Quality and price/influence the perception of the consumer.
• -products providing comfort/satisfaction /improving life quality,

prices does not matter to rural consumer.
• Familiar and known sources like retailers - strong spokespersons

• for low involvement products. Suresh Raina, Praveen Kumar &
Psychological Factors
Motivation:
Maslow's Model of Motivational Pyramid.

Most rural consumers are mostly quite content to stay in the lower
two sections of the Maslow's model of the motivational pyramid:
*Self Actualisation
Esteem Needs
Social Needs
Saftey Needs
Physiological needs (or Basic needs)
*Refer to realisation of a person's potential, self fulfillment, seeking

personal growth & peak experiences. Thisis a level as the desire to
accomplish everything that one can, to become the most.
The Buyer Decision Process
Need Recognition

Information Search
Evaluation of Alternatives
Purchase decision
Post-purchase behaviour

The buyer deicion making process consists of 5 stges
In need recognition, the consumers recognise the
.
need, which can be fulfilled by acquiring a
product/service.
Marketers can stimulate the need by diff marketing
tactics.

Information search is through family, freinds,
relatives, key persons, village retailers, and depends
less on commercial sources.
The rural consumer is more hooked to experitenal
source (touch & feel, demonstrations & trials).
Evaluation of Alternatives - price & quality before
buying the product.- for consumer products evaluation
is long, for convenience goods it is short. (Marketers to
understand the evaluation process as per the product)
Purchase decision - by opinion leaders, family &
friends.
For household products, females also consulted.
Perceived risk is higher in rural consumers as they find
it difficult to gather the info.
Marketers should address this perceived risk, by
testimonials & door step delivery.
Post purchase behavior: Acceptance / Rejection
• Primarily from personal sources depending less on commercial
sources
• Also depends on experiential sources. Exhibitions and trade
shows help.
• Haats, mandis and melas facilitate informal consumer

interactions.
• In case of “high involvement” products visit to a company outlet is
essential.
• Marketers should induce product trials and reach rural consumers
of their choice.
Information Search - Information search is

through family, freinds, relatives, key persons, village retailers, and
depends less on commercial sources.
The rural consumer is more hooked to experitenal source (touch & feel,
demonstrations & trials).

Evaluation of Alternatives-Evaluation
of Alternatives - price & quality before buying the product.- for
consumer products evaluation is long, for convenience goods it is short
(Marketers to understand the evaluation process as per the product)
• Depends on kind of product

• Major attributes are price and quality
• Shortest cycle is for convenience goods and highest

for tractors/products new to the rural environment
• Consumer durables fall in between
• Marketers need to understand the evaluation process

Post Purchase Behaviour-Post
purchase behavior: Acceptance / Rejection
• Dissatisfaction leads to return of product and negative

publicity about the company and the product
• A satisfied customer leads to brand equity and “word of

mouth” publicity
• See “Rural Marketing Insight: Aircel” Aircel research in TN

in 2009 led to conclusion: COVERAGE is a major issue.

The Purchase Decision-by opinion leaders, family & friends.
Perceived risk is higher in rural consumers as they find it difficult to
gather the info.
Marketers should address this perceived risk, by testimonials & door
step delivery.
• Final choice guided by perceived risks as well as the opinion

leaders, family and friends
• Paucity of information increases the perceived risk
• Collective decision for high ticket items
• Decision makers are now educated, aware of new

technologies and receptive to new concepts and ideas

The Product Adoption Process-The
consumers observe & exercise, trials before buying a new
product. (it is a pshychological prodcess)
• Opinion leaders play an important
Product Awareness
part.- only awareness & no info.

Product Interest
• Rural consumers slower in trying new
brands- interest is aroused.
Product Evaluation
• evaluated on various parameters.

Product Trial
• Trial generation is more important.

Product Adoption
• -Final adoption & regular use of the
product.
Adoption process for
marketers.
• The marketers should understand the rural adotion

process and tap into local opinion leaders to help brand
adoption and diffusion in the rural community.
• Winning over the key opinon leaders by marketers is
crucial. Colgate tapped the school teachers to reach
childern through “Bright Smile, Brigh Future” campaign.
• Marketers should plan for longer lead times.
• Rural consumers are brand loyalists.
• To understand the adoption behavior, MART study -
• RASOI GHAR by HPCL - a community kitchen concept in
2006. There were early adopters & late adopters,

Diffusion of Innovation
•The flow of technology from

international to rural is a long
process gives less exposure to rural
consumers - less ability of rural
consumers to adopt technology.
•Word of Mouth plays a role.
•Some customers adopts quickly,
some take time.
Diffusion of Innovation
Type of
Profile Behaviour

Consumer
Opinion leaders and trend setters, high Explorers, first to adopt, lead by
Innovator
risk takers and high asset ownership example
Rich farmer with large and medium

High on experimentation, willing
Early Adopter holdings, high social status, conscious
to try new products
evaluator
Medium landholding farmers, take

Less open on experimentation,
Early Majority cautious risks, opportunity seekers,
adopts before average person
middle path takers
Small and medium farmers, more

Low on experimentation, adopts
Late Majority knowledge receivers than seekers, less
only time tested technology
efficient with moderate resources
Marginal farmers and labourers, risk Averse to trying new things,

Laggard
averse, conservative and traditional suspicious of change
Scope for marketers.
•Target customers for marketers

•Innovators & Early adopters are
highly demanding in rural markets,
the marketers can groom and project
them to convince the late adopters

Rural Marketing Case
HPCL Rasoi Ghar (To be
discussed in next session)
1.What challenges did HPCL face in getting rural women to
adopt LPG? How were these challenges overcome?

2.What went wrong with the 50Kg. cylinder? Which new
approach was evolved? How were the issues of acceptability
and affordability addressed?
3.What were the key success factors that brought about the
desired behaviour change? How did HPCL benefit from the
model?
4.To which other categories can this model be applied? How?

Rural Marketing Case
HPCL Rasoi Ghar
An initiative of:
HPCL, SHG, Panchayat.

Contributio by Panchayat: Space
Contribution by HPCL: Stove, Cylinder, utenslis
Cost: 800/- installation, 260/- LPG cylinder 5kg.
Benefits:
cooking by women @Rs. 2/-.
Honorarium to caretaker appointed by SHG
Project successful in 1600 villages & then all over.
Shif from traditional cooking to gas cooking.

Successful Mantra in Rural
Consumer Behavior
Observe

•
• Analyse

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Chapter 3

Rural Consumer Behaviour - Ramkishan, a

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Describe the customer buying behaviour model in rural

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• List and define the major types of buying decision

• Describe the adoption and diffusion process for new

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Because of heterogenious nature of rual markets, the

• Understanding 'why' rural people purchase is the

• Hence, rural CB needs to be viewd from different 4

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

WHY RURAL CONSUMERS BUY? THE CHANGES INFLUENCING CONSUMER

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Market Research Society of India

Copyright © 2016 Pearson India Education Services Pvt. Ltd

Common for both Urban & Rural

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Traditional joint family giving way to

Family individualized joint families with separate

• Caste a major factor

Status decision process

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Traditional joint family giving way to

Family individualized joint families with separate

• Caste a major factor

Status decision process

Rural Marketing, 3/Ed Pradeep Kashyap

• Anganwadi workers: Grassroots agents working on child

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Auxiliary nurse/midwife: For pre-natal, childbirth and post

• SHGs: To access low-cost finance

• Agri-cooperative societies: To provide funds for

• NGOs: Belong to local community and hence sensitive to

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Rural youth have become the strongest influencers due to

• Head of the family continues to be the decision maker

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Male members assemble at the choupal

• Women gossip with other women while completing their

• A rural neighbour is an extension of the family

• Every new purchase is discussed with the neighbourhood

Age and stages of the lifecycle

Copyright © 2016 Pearson India Education Services Pvt. Ltd

Below 12 Childhood Toys, local snacks, sweets and chocolates

13 to 19 Teenage Mobiles, television, cinema

Motorcycle, LPG, readymade clothes, local

Tractor, playing cards, kisan credit cards,

Choupal, pilgrimage, hukka, social and

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd

• Dependent on weather for

Rural Marketing, 3/Ed Pradeep Kashyap

Lifestyles-activities, interests, opinions, demographics .

Copyright © 2016 Pearson India Education Services Pvt. Ltd

Rural Marketing, 3/Ed Pradeep Kashyap

Copyright © 2016 Pearson India Education Services Pvt. Ltd