RURAL CONSUMER BEHAVIOUR

Definition of consumer behaviour

• Schiffman and Kanuck, 2000 define consumer
behaviour as “the behaviour that consumers
display in searching for, purchasing, using,
evaluating and disposing of products and
services that they expect will satisfy their
needs. It is thus a study of how individuals
make decisions to spend their available
resources like time, money, effort – on
consumption related items”.
 Why do consumers show different
patterns of behaviours?
• Perceived risk – buyer involvement is high
when the perceived risk is high and vice –
versa.
 Types of consumer behaviour
High involvement Low involvement
Significant differences Complex buying behaviour Variety seeking buying
among brands behaviour
Few differences among Dissonance reducing Habitual buying behaviour
brands behaviour
 1. Complex buying behaviour
• Product – expensive, many difference
between different brands.
• Methods – demonstrations, targeting opinion
leaders, employing trained sales persons.
• Example – computer, automobiles
 2. Dissonance reducing behaviour
• Products – expensive, few differences
between brands, social products
• Methods –style, appearance and performance
will be talked about and may result in delight
or dissonance.
• Example - furniture
 3. Habitual buying behaviour
• Products –frequently purchased, low
involvement items, low cost, not bothered
about which brand he buys, , do not postpone
the purchase and take the trouble of going to
another shop, buy whatever is available.
There is a lack of strong brand consciousness.
• Example –salt and soap
 4. Variety seeking
• Product –less expensive and frequently
purchased, significant brand differences,
prefers to buy different items of same brand
or different brands to experience a different
sight, smell sound, touch and taste, brand
switching occurs.
• Example – ice creams and tourist places.
 On the basis of amount of time spent
purchase behaviour is classified into
• Planned purchase behaviour – purchase is
budgeted and scheduled in advance.
• Emergency purchase behaviour –purchase is
made in a hurry to avoid stock-out situations
• Impulse purchase behaviour – purchase is
made spontaneously by taking a decision on
the spot.
 Consumer’s decision making process
1. Need identification/problem awareness
2. Information gathering
3. Evaluation of alternative solutions
4. Selection of appropriate solution
5. Post purchase evaluation of decision
 Roles played by consumers in decision
making process
Role Description
Initiator The individual who determines that some need or want is not being
met and authorises purchase to rectify the situation.
influencer Persons by some intentional or unintentional word or action, influences
the purchase decisions.
Buyer Individual who actually makes the purchase transaction.
User Person most directly involved in consumption or use of purchase
 How to tackle the different consumer
behaviour roles?
• Family dynamics in decision making process -
the marketer can identify the members who play
the roles of initiator and influencer for particular
products and then develop an appropriate
communication strategy targeted at them to
evoke the desired response.
• Customer orientation – marketers have to probe
and explore the customers for what really
matters to them and then build a strategy around
delivering those expectations
 Factors affecting rural consumers
during purchase of the product
1. Socio-cultural factors
2. Group
3. Family
4. Role and status
5. Sociability
6. Economic factors
7. Political factors
8. Factors which influence the final choice
 Cultural factors
• Acquires a set of values, perceptions,
preferences and behaviours through family
members or other key institutions.
• The time tested true behaviour be exhibited
by collective group is determined by culture.
 Social factors
• The environment which he lives and work in.
• Reference groups, family, friends and opinion
leaders.
• New reference points and influence in the
form of professional factors like Anganwadi
workers, midwife, self-help groups and
members of the community development
programme.
 Technological factors
• Occupations like poultry, dairy, animal
husbandry and farming have become more
productive.
• Boost the rural income and reduce the
drudger of workers.
• Save time and energy.
 Economic factors
• Below poverty Line – 2.8%
• Per-capita income – Rs.1200 per month
• Less income occupation
• 70% agriculture and 21% in services.
 Political factors
• Government at the center and state
• Ruling party and non ruling party
• Development plans
• Developmental programmes
 Lifestyle of rural consumer
1. Rural consumer is very religious
2. Rural consumers prefer to work hard
themselves.
3. Strong family ties and respect for family
values.
4. Likes to play cards and hangs out at Choupal
 Profile of rural consumer
1. Traditional outlook
2. Perception and its influence
3. Less exposure to marketing stimuli
4. Conscious of value for money
5. Realistic aspirations
6. Concept of quality
7. Attitude towards prestige products
8. Suspects hype and fear of being cheated
 Rural shopping habits
1. Preference for small or medium package
2. Role of retailer
3. Role of opinion leaders for durables
 Rural consumer Vs Urban consumer
Factors Rural consumer Urban consumer
Need based buyer -Is driven by his needs first. -is turning towards
behaviour consumerism.
Conscious decision making -is more discerning Impulse buyer
Value for money -more price sensitiveness Less price sensitiveness
Consensus decision making Collective process Individual or at the most
family driven
Innate resistance to change -is happy with his Likes to try new things and
conformance appear different
Different perceptions with Rural consumers gores for Urban consumer looks for
regard to marketing stimuli bold and primary colours. light colours
Brand consciousness -are not brand conscious. More brand conscious
Brand loyalty More brand loyal Less brand loyal
Quality consciousness Wants good product with Wants good product with
consistent quality quality