2. Factors Affecting Consumer behaviour
Cultural factors
1)Culture – child acquires a set of values,
perceptions, preferences and behavior,
through the family or other key institution
involved at each stage of life.
2)Collective social sanction – norms in general
by community or of those in authority
3. 3) Influence of social customs – Touching ones
feet
4)Traditions – shampooing the hair – evil spirits
– loose character
5) Influence of caste – harijan basti
4. • Sub culture
Regional influences – idli and sambha,
Model incompatibility – Sikh farmer
represented agricultural success in northern
India. In South the communication was not
relevant
5. Changing Behavior
Ex: Revital pill as energy booster and health
supplement id now being consumed by
farmers in rural Punjab. Bihar workers
returning from Punjab (word of mouth)are
consuming it as improves their productivity.
Each pill cost Rs 6/-
• Money order repatriate
6. Social factors
• Ex: Anganwadi workers – influence villagers
about primary health matters of children, they
are also pre-school teachers and influencers.
• Family – traditional joint family is crumbling;
individuals are branching off, to form nuclear
families ( with separate cooking
arrangements) they continue to live in the
traditional family ground ( under one roof).
7. • The chief wage earner becomes the head of
the nuclear family for all household matters,
except in social matters where the family
elders from the parent family continue to take
decision
8. Role and status
• In rural sector, caste plays a very important
role in defining status
• Individuals such as sarpanchs, caste leaders,
medical practitioners, retired military
personnel and priests enjoy a higher status in
the village.
• Sarpanch is now an elected member. A
progressive farmer is respected more than
him
9. Products and status symbol
Ex: Rural consumer looks for ease of operation
while urban looks for add ons or fancy
features.
Ex: No frills Sampoorna model TV from LG was a
great success
Ex: In Punjab, the horse power of the tractor
and the company name determine the status
10. Sociability
• Rural people spend more time with family and
friends compared to urbanites.
• A man may drop in at the house of another
only to discuss some urgent matter.
11. Technological factors
• STD booths and PCO have emerged as the
new community center in the villages for the
exchange of news.
• DD reach ( urban + rural ) is 97% of the entire
population of India
• AMUL AMCS ( automatic milk collection
system)
12. Economic factors
• Banking is reaching out to the doorstep of
more and more farmers.
• Women too are looking at income generation
even on a small scale. Ex: SHG
13. Characteristics of the rural consumer
• Age and stages of the life cycle
Age
Life cycle stage Rural
Below 12 Child Toys, ice candy, daliya
13-19 Teenage Bicycle, television,
cinema
20-40 Young Motorcycle, telephone,
LPG, tailored/unbranded
clothes, liquor, haat
40-60 Middle aged Tractor, kissan credit
card, postal savings
Above 60 Old Chaupal, playing cards,
pilgrimage
55% of India's population is below 25 years of age.
15. Lifestyle
Dimensions Rural
Demographics Govt school, self-employed, large family,
small/scattered population, ordinary
spacious house
Activities Agriculture, physical sports, gossip,
playing cards, cinema, religious
congregation
Interests Desi food, milk, bright coloured clothes,
jewellery, visiting towns, market/melas
16. Rural consumer classification
The affluent HH owning car/jeep with other products 5.6 %
The well off HH owning any/all of these AC, motor cycle,
scooter, washing machine, refrigerator, color tv
with other durables but not car/jeep
5.8%
The climbers HH owning any/ all of these – mopeds, VCP/VCR,
mixer grinder, sewing machine, audio
equipments, B/W TV, geyser with other durables
but not those mentioned under first two
categories
22.4%
The Aspirants HH owning any/all of these – bicyle, electric fans,
electric iron with other durables but not those
mentioned under first three categories
44.6%
The Destitute HH other than those classified under categories 1
to 4 above ( owning any/all/none of these – wrist
watches, pressure cooker, cassette recorder,
transistor/radio
20.2
Source: NCAER ,
2002
17. Personality and Self-concept
• When in social gatherings, rural youth prefer
to buy pan masala, tea, namkeen.
• While travelling rural people carry food items
from home or buy open food
Brand Name Brand Ambassador Brand personality
Coca cola Aamir Khan Smart colorful, youthful
Mahindra tractor Sunny Deol Rugged and relaxed, dominating
Rajdhoot Dharmendra Rugged, conventional, thrifty
Philips radio Rajnikanth Moder, colorful, social
Navaratna oil Govinda Jovial, youthful
Ruf and tuf jeans Akshay kumar Robust, self confident, go getter
18. Personality and Psychological
factors
• Peer group pressure is not significant in rural
areas. He is not driven by status symbol
acquired by his neighbors.
• Aloofness for rural women
19. Perception and Brand belief
• The role played by additional features as a
differentiation is not significant in influencing choice
• Products that create the perception of providing
comfort or improve quality of every day life, price is
not questioned or compared.
• Trust government services
• Functionality is more important then style and frills
• The difference between local brands and corporate
brands is not worthy of consideration. Any product is
ok
20. Consumerism: The Shift
• The growing number of rural people working
in urban India, but continuing to live in their
village has bought items into the village.
• They have emerged as a new class of opinion.
Loose unbranded tea
Home made sweets
Open vessel wood fire cooking
Cycle
Earthen vessel for cool water
Sharbat, Nimbu pani
Packaged branded tea
Branded biscuits
Pressure cooker cooking on LPG
Motorcycle
Refrigerator for cold water
Aerated drinks
21. Buying decision process
1) Need recognition
2) Information search
3) Evaluation of alternatives
4) Purchase decision
5) Post-purchase behaviour
22. Opinion leadership process
Opinion leaders Areas of influence
Sarpanch/gram pradhan Village administration , resolving social
and family conflicts, introducing new
ideas of farming, purchase of technology
products on farming or artisan work
College- educated youth/village working
in urban centres
Influence in family and neighborhood, on
purchase of durables like refrigerators,
TVS, motorcycles
23. Diffusion of innovation
Type of consumer Percentage Rural profile
Innovator 2.5 Young progressive farmer, urban
exposure, kissan credit card,
additional income
Early adopter 13.5 Rich farmer, high disposable
income, urban exposure, high
social status, conscious evaluator,
kissan credit card
Early majority 34 Mediocre farmer, member of
cooperative society, ready for
kisan credit card, willing to adopt
technology products
Late majority 34 Member of cooperative society,
hesitates to take agri-loan, adopts
only time tested
technology/product after approval
from the opinion leader
Laggard 16 Marginal farmers using traditional
forms of cultivation
24. Brand loyalty
• 80% of all packaged FMCG sold in rural markets are
branded wither national or regional
• Brands like Ghari, parle-G, Lux, Fair and lovely, and
Colgate were early entrants in rural markets and
have gained acceptance over period of time.
• Availability is the prime driver.
• Brand loyalty is in fact ‘brand stickiness’ in rural India
where villager stays with the brand not out of
informed choice but because he does not know any
better
25. • Ex: The detergent is able to clean the white
dhotis/pyjamas at an affordable price which is what
rural consumers expect. Issues such as life span of
clothes and protection of hands from harsh
chemicals in detergents are not important criteria for
the rural consumer
• Ex: Mahindra village – where most tractors in the
village are from one company. This is an example of
brand stickiness
26. • Marketers have focused on creating
awareness and making their brands available
but have made little efforts to build
relationship with their customers.
• Educate – develop interest – trigger desire –
build confidence thru demonstration – and
post engagement with consumers……. Leads
to long term relationship's.
