Download - Rural Mktg Module v - 601 EM
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Rural MarketingModule V
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Consumer decision making varies with the type of buying decision.
Complex and expensive purchases are likely to involve more buyer
deliberations and more participants. Henry Assael distinguished four
types of consumer buying behavior based on the degree of buyer
involvement and the degree of differences things among brands.
Complex buying behaviorConsumers engage in complex buyingbehavior when they are highly involved in a purchase and aware of
significant differences among brands. This is usually the case when
the product is expensive, bought infrequently, risky and highly self-
expressive. The marketer needs to differentiate the brands features,use print media to describe the brands benefits and motivate store
sales personnel and the buyers acquaintances to influence the final
brand choice.
For eg. Automobile, two-wheeler, consumer durable.
CONSUMER BUYING BEHAVIOR MODELS
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Dissonance-reducing buying behaviorSometimes the
consumer is highly involved in a purchase but sees little
difference in the brands. The high involvement is based on the
fact that the purchase is expensive, infrequent and risky. Forexample, carpet buying. After the purchase, the consumer might
experience dissonance that stems from noticing certain
disquieting features of the carpet or hearing favorable things
about other carpets. Thus marketing communication should aim
at supplying beliefs and evaluations that help the consumer feel
good about his or her brand choice.
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Habitual Buying Behavior Many products are bought under conditions
of low consumer involvement and the absence of significant brand
differences. Consider salt. Consumers have little involvement in theproduct category . They go to the store and reach for the brand. If they
keep reaching for the same brand, it is out of habit, not strong brand
loyalty. It happens with most low-cost, frequently purchased products.
Marketers find it effective to things use ad repetition, price and sales
promotion to stimulate product trial.
Variety-seeking buying behaviorSome buying situations are
characterized by low consumer involvement but significant brand
differences. Here consumers often do a lot of brand switching. Thinkabout cookies. The consumer may reach for another brand out of boredom
or a wish for a different taste. The marketer will try to encourage habitual
buying behavior by dominating the shelf space, avoiding out of stock
conditions, sponsoring frequent reminder advertising, offering lower
prices, deals, coupons and free samples.
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CULTURAL FACTORS in practice over a long period of time.
Rural India, being until now largely isolated from new practices
and things https://www.facebook.com/ialwaysthinkpretty
customs, tends to follow the customs of its traditional society. In
urban India, however, in the due course of time, many of thecustoms have changed and continue to change, a change that is
accelerated when a new generation adopts new value systems and
practices in order to fit into perceived modernity.
Regional influences can be defined as a set ofattributes
exhibited in clothing, preference for certain types of cereals, food
preparations etc. For eg. Tamilians prefer to cook their native
idli with sambhar.
FACTORS AFFECTING CONSUMER BEHAVIOR
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Traditions are long standing beliefs that are believed to be true
in nature and are often practised in a ritualistic manner, without
knowing the origin or questioning the need to do so.
For eg. A tradition that after washing / shampooing the hair, it
should not be left open is based on a things belief in some parts
of rural India that this gives an opportunity for evil spirits to
enter. Shampoo ads showing the bounce in the womans hairafter a wash may communicate a message quite different from
what was intended.
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Rural Taste
-Bold and Primary Colors-Cinema, Nautanki, , Dangals, Melas
- Synthetics, Colourful
-RedHappiness Auspicious. Green Prosperity
Subject
-Colors Liked-Entertainment
-Clothes
-Color Relevance
Urban Taste
-Shades of Colors, Light Hues things-Theme Parks,
-Internet Travel
-Denim, Cottons, Designer,
-RedDanger - Green - Safety
FACTORS AFFECTING CONSUMER BEHAVIOR
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-Touching feet
-Hair should not be left open after washing.
-Housing in rural areas based on caste and in urbanareas based on
Socio economic class.
- Influenced by NGOs, Opinion Leaders, Aanganwadi workers,
SHG members.
-Joint Family in rural areas and Nuclear Family in urban areas.
-Role and Status of Sarpanch, retired military personnel, priests,
teachers, medical practioners.- Product choice features
-Very Social in Rural Areas
SOCIAL FACTORS
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Rural Urban
Social/Political status Educational Degree
Tractor/Jeep/Car Car
Large Pucca House with courtyard House Locality
Childrens city education / jobs Childrens school /
college
Land Airconditioning
Telephone Club membershipPilgrimage Holiday Abroad
PRODUCTS AND STATUS SYMBOLS
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TECHNOLOGICAL FACTORS
Rural India is beginning to experience the impact of technology,
leading to major changes that are transforming the countryside.
Opportunities, products, things services, knowledge, information
are all exploding.
Introduced with the purpose and need to create an instant network
for good governance, telecommunications has transformed rural
India in so many other ways that is of interest to marketers. STD
booths and PCOs have emerged as the new community centre inthe villages for the exchange of news and views for every age
group and therefore an important place fro marketers to display
brand communication messages.
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The entire economic environment of rural India shows a much
improved prosperity due to repeated benevolent monsoons, new
and improved techniques, higher quality of inputs and increasingawareness and education on agriculture.
Banking is reaching out to the doorstep of more and more
farmers. Finance is now more readily available and so is credit.
ECONOMIC FACTORS
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POLITICAL FACTORS
Schemes launched by Government has led to thedevelopment of rural areas.
The Government of India is empowering the
Panchayati Raj and other village institutions by making
available developmental funds. This has resulted in
major purchases of equipment and materials needed for
infrastructure development.
30% compulsory representation of women in localbodies is leading to their empowerment, encouraging
women in rural India to explore income generation and
entrepreneurial activities.
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FUNDAMENTALS OF RURAL CONSUMER
BEHAVIOR
Demonstrations, Targeting Opinion Leaders,
Employing Trained Sales Persons
Lack of Strong Brand Consciousness
Generally ask for the product and not the brand.
Indian consumers, on an average, try about six brands
of same package goods product in one year, compared
to two for Americans.
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LIFESTYLE OF RURAL CONSUMER
Rural Consumer is very religiousDabur developed areligious calendars and gave Hanuman Chalisa along with
their products. Ganga made of milk and holy water of
Ganga. Govinda as a Brand Ambassador.
Rural Consumers prefer to work Hard themselves
Machines to be sold on the basis of benefits offered and not
on the basis of comfort and convenience.
Strong Family ties and respect for Family Values
Likes to play Cards and Hangs out at Choupal.
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RURAL SHOPPING HABITS : CONSUMER
INSIGHTS
Preference for small or medium Package - Britannias
Tiger Biscuits, Cavinkares Chik Shampoo, and small
Coke for Rs. 5.
Role of Retailer
Role of Opinion Leaders for durablesOpinion
Leaders like Sarpanch, village elders and educatedYouth of the village.
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OCCUPATION AND INCOME
In the rural sector, a range of goods and services beyond
the very basic ones are bought by a consumer, influenced
by the occupation and income of the individual.
Fishermen buy a boat and large nets, whereas a farmeropts first for a tractor and pump set.
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INFORMATION SEARCH AND
PRE-PURCHASEEVALUATION
The rural consumer primary seeks and gets his information fromopinion leaders and influencers, rather than the media. However,
this information search is fuelled by exhibitions and road
shows, because of the opportunity of personal interaction and
leisurely pace of absorbing and understanding the information
and its relevance.
In the case of high involvement products, this information search
needs to be supplemented by an out of village visit to a company
outlet with an opportunity for personal interaction. The need to
demonstrate individual accessories of the product and their
performance also becomes critical.
The ultimate clincher is always the touch and feel experience.
Anything less will not lead to a purchase.
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STAGES IN BUYING DECISION PROCESS
Problem Recognition The buying process starts when the
buyer recognizes a problem or need. The need can b triggered
by internal or external stimuli. In the former case, one of the
persons normal needs hunger, thirst rises to a threshold level
and becomes a drive. In the latter case, a need is aroused by
external stimulus. A person passing through a bakery and sees afreshly baked cake which stimulates her hunger. Marketer
needs to identify the circumstances that trigger a particular
need.
Information search - Two levels of involvement with search.
The milder search state is called heightened attention. At thislevel person simply becomes more receptive to information
about product. At the next level is active information search.
The person looks for reading material, phones friends and
engages in other activities to learn more about the product.
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DIFFUSION OF INNOVATION
Diffusion of Innovations is a theory of how, why, and at
what rate new ideas and technology spread through
cultures.
Elements of diffusion of innovations
-Innovation- Rogers defines an innovation as "an idea,
practice, or object that is perceived as new by an individual
or other unit of adoption" .-Communication channels - A communication channel is
"the means by which messages get from one individual to
another.
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-Time - The innovation-decision period is the length of
time required to pass through the innovation-decision
process" . Rate of adoption is the relative speed with
which an innovation is adopted by members of a social
system.
-Social system - A social system is defined as a set of
interrelated units that are engaged in joint problem
solving to accomplish a common goal.