Page 73 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 4.1.1 Factors Influencing Buying Behaviour

The various factors that effect buying behaviour of in rural India are:
1. Environmental of the consumer: The environment or the surroundings, within which the
consumer lives, has a very strong influence on the buyer behaviour, e.g.. Electrification,
water supply affects demand for durables.
2. Geographic influences: The geographic location in which the rural consumer is located
also speaks about the thought process of the consumer. For instance, villages in South
India accept technology quicker than in other parts of India. Thus, HMT sells more winding
watches in the north while they sell more quartz watches down south.
3. Influence of occupation: The land owners and service clan buy more of Category II and
Category III durables than agricultural laborers/farmers.

4. Place of purchase (60% prefer HAATS due to better quality, variety & price) Companies
need to assess the influence of retailers on both consumers at village shops and at haats.
5. Creative use of product: For example, Godrej hair dye being used as a paint to colour
horns of oxen, Washing machine being used for churning lassi. The study of product
end provides indicators to the company on the need for education and also for new
product ideas.
6. Brand preference and loyalty (80% of sale is branded items in 16 product categories).

4.1.2 Cultural Factors Influencing Consumer Behaviour

Cultural factors exert the broadest and deepest influence on consumer behaviour. The marketer
needs to understand the role played by the buyer’s culture. Culture is the most basic element
that shapes a person’s wants and behaviour.

In India, there are so many different cultures, which only goes on to make the marketer’s job
tougher. Some of the few cultural factors that influence buyer behaviour are:
1. Product (colour, size, design, shape): There are many examples that support this
point.
For example, the Tata Sumo, which was launched in rural India in a white colour, was not
well accepted. But however, when the same Sumo was relaunched as Spacio (a different
name) and in a bright yellow colour, with a larger seating capacity and ability to transport
good, the acceptance was higher.
Another good example would be Philips audio systems. Urban India looks at technology
with the viewpoint of ‘the smaller the better’. However, in rural India, the viewpoint is
totally opposite. That is the main reason for the large acceptance of big audio systems.
Thus Philips makes audio systems, which are big in size and get accepted in rural India by
their sheer size.
2. Social practices: There are so many different cultures, and each culture exhibits different
social practices. For example, in a few villages they have common bath areas.
Villagers used to buy one Lifebuoy cake and cut it into smaller bars. This helped lifebuoy
to introduce smaller 75-gram soap bars, which could be used individually.

3. Decision-making by male head: The male in Indian culture has always been given the
designation of key decision maker.

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