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CONSUMPTION PATTERN AND BUYING BEHAVIOUR OF RURAL CONSUMER IN UTTARANCHAL -

A STUDY OF DEHRADUN DISTRICT

SUMMARY SUBMITTED TO

H.N.B. GARHWAL UNIVERSITY, SRINAGAR (GARHWAL), UTTARANCHAL

FOR THE DEGREE OF DOCTOR OF PHILOSOPHY

IN COMMERCE

SUPERVISOR SUBMITTED BY DR. ATUL DHYANI YOGENDRA SINGH RAUTHAN Reader in Commerce Enroll. No. – G 9443193

FACULTY OF COMMERCE AND MANAGEMENT STUDIES H.N.B. GARHWAL UNIVERSITY,

SRINAGAR (GARHWAL) 2007

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SUMMARY

Introduction

Formulating rural marketing strategy requires an understanding of the

rural markets and the significant rural-urban differences and similarities.

Rural marketing philosophy should embody marketing concept and societal

concept. Relationship marketing and development marketing take

precedence over transactional marketing. New approaches to marketing

research and understanding consumer behaviour are needed. A marketing-

mix targeted to lower and middle income groups may be suitable, in case of

some products. In other cases, altogether a different strategy becomes

necessary. Rural marketing relies mostly on low priced, small unit packs and

quality durables without frills, distribution by outlets like cooperatives, non-

government organisation (NGOs), self-help groups, haats and melas and

promotion through interactive media using local idiom and region-specific

dialect.

Rural consumer is totally a different consumer in the rural market

scenario, being influenced by rationality, personal experience, and the level

of utility that is derived from the consumption, which are being influenced

by the changing tastes and preferences of the younger generation. The clever

and gimmicky advertisements do not work out with rural consumers. Their

buying behaviour is very much influenced by ‘experience’ of their own and

of neighbour – consumers and his own family and involvement of his own

members are exerting maximum influence on his purchases. Above all,

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quality of the product and its easy availability are the primary and vital

determinants of his buying behaviour. The technique of bombarding with

messages has a limited influence. He is very much attached to and

influenced by ‘touch and feel’ aspect of any promotional activity. It is

imperative that the marketing experts should understand the mindset of the

rural consumers for every product in a particular region.

Rural marketing has changed in concept and scope over the years.

Earlier it was used to designate marketing of agricultural produce and artisan

products by rural to urban. Today, it is considered as a function concerned

with the flow of goods and services that satisfy the needs and wants of

households and occupational activities in rural areas. We view rural markets,

as a periodic concourse of people for the purposes of buying and selling, i.e.,

exchanging goods, services and even ideas. Tangibles as well as intangibles

are exchanged. For example, marriage selection finalization may take place

in a market situation. When we say a periodic concourse of people, there are

two important implications; one of time and space that is a natural corollary

of periodic concourse and the second a combination of individuals- units of

consciousness, to make any market.

The rural India offers a tremendous market potential. A mere one

percent increase in India’s rural income translates to a mind-boggling Rs.

10,000 crore of buying power. Nearly two-thirds of all middle-income

households in the country are in Rural India and close to half of India’s

buying potential lies in its villages. Therefore, rural markets are the new

markets, which are opening up for both durable and non-durable products.

Companies that have expanded in these areas found that, they are able

toward off competition, generate a new demand and in turn, increase their

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sales or profits. Long-term perspective of marketing planning with modern

approach is essential for their future growth.

Therefore, keeping in view the above scenario, the following

hypothesis has been formed for the present study:

Hypothesis

The rural market offers a vast market for consumer goods, and all

persons or families above the poverty line form the market for some branded

consumer goods. It is also assumed that the rural psyche is different from the

urban one, hence different marketing strategies to be employed in the rural

areas.

Objectives of the Study

The main objectives of the proposed study are:

i) To assess the consumption pattern as well as expectations of the

rural consumer.

ii) To ascertain the buying habits and the factors affecting viz. a. viz.

brand choice of the rural consumers.

iii) To analyse the post purchase behaviour and satisfaction of the rural

consumer.

iv) To bring out the suggestions and implications for rural marketing

strategy.

Research Design and Methodology

The proposed study is an exploratory in nature. A different method of

data collection was implied in order to complete the survey work. Data

regarding consumption pattern, brand preferences, buying behaviour,

awareness and attitude of rural consumers towards marketing were collected

from the primary sources, for which different questionnaires were

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administered. Informal discussions were also carried out with the marketing

intermediaries (Distributors) in and around the area to know their marketing

practices for the rural sector.

The universe of the study consists of consumers residing in the rural

areas of Dehradun district. Total 300 respondents have been selected out of

25 villages (12 respondents from each village), which were identified on the

basis of their accessibility, population and convenience. The respondents

were selected with the help of multistage systematic sampling methods. The

district is located in the south-west of the State, and having an advantage of

overcoming regional differences in natural and geographic endowments.

Further, there are equalities in the consumer’s exposure to different

promotional, influences, availability of brands and price differentials.

To obtain the information from the respondents (rural masses) a

detailed structured questionnaire containing eight different sections was

prepared. The first and second sections were regarding village and

respondent profile respectively followed by consumption pattern of durable

and non-durable products and purchasing behaviour. The sixth section was

related to Haats and Melas followed by consumer awareness. At the last in

section eight, questions were related to the consumer attitude towards the

promotional activities adopted by the marketers. As the masses are

uneducated, the questionnaire (in Hindi) is filled by personal interview. The

collected data was coded, classified, tabulated and analysised systematically.

The association between variables has been tested using cross (contingency)

tables and for data analysis, statistical techniques such as Chi-square test,

ANNOVA, Average weighted score and T-test are made use of.

Limitations

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Due to lack of relevant studies in the region, no comparative

data/information is available, so it was difficult to compare the study.

Secondly, due to financial constraint and time limitation, this study is

confined only to Dehradun district of Garhwal region. The study is based

mainly on individual informations, which would be subjective, thus the

results could not be the ultimate fact.

Profile of the Study Area

Dehradun district is situated all most entirely with in the Shivalik

ranges of the Himalaya’s in the West of the Uttarakhand State. The total area

of the district is 3088 sq km of which 2939.60 sq km is rural area. The total

population of the district is 1025.68 thousands out of which 510.20

thousands is rural population (Census 2001). Administratively, the district

has been divided in to four tehasils viz., Dehradun, Rishikesh, Chakrata and

Vikasnagar and there are six-development blocks viz., Chakrata, Kalsi,

Vikasnagar, Sahaspur, Raipur and Doiwala.

Village Profile

Out of the selected villages for the study, the population of Khadri

(Doiwala block) was found highest with the population of 17000 people,

while the least populated village was Lahari (Chakrata block) with the

population of 645 people. It was appreciated that every village taken into

study, have primary school, eight villages have intermediate and in seven

villages high school. Further, it was found that Ramnagar Dadu and Khushal

pur villages were the distant (3.5 Km) from road head while Kalsi and

Bhogpur were the nearest (0.5 Km). In case of electrification, all the villages

were electrified.

Respondents Profile

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Majority of the sample dominated by the male (62%) while about one

third (38%) were female. As far as martial status is concerned, majorities of

respondents were married (75%) and remaining (25%) were unmarried. The

distributions with regard to age a majority (45%) were from the age group of

20-35 followed by 36-50 (35%) whereas remaining (20%) in the above 50

age group. With respect to the distribution of the occupation, it was found

that the mainstays of the people are agriculture (58%) followed by service

(22%), whereas remaining (20%) were engaged in business for their

livelihood. The distribution with regard to per month income of the

respondents, a large number (79%) were from the income group Rs. 2501 to

Rs. 5000. A quite less number (14%) of the respondents earn between Rs.

5001 to Rs. 10000 and very few (07%) were in the earning group of more

than Rs. 10000. With respect to the distribution of the education, it is

interesting to note that none of the respondents was illiterate as a good

number (31%) were 10th passed followed by fifth passed (30%) graduate

(21%) and remaining (18%) were intermediate.

Consumption Pattern and Brand Preferences of Durables

Regarding the consumption, pattern and brand preferences in the

study area for the selected products the following observations have been

made:

In case of durables, Television and Radio/Tape recorder are being

used by most of the people in the study area. Out of the total TV owners

(84%), it was interesting to note that an equal number of the respondents

(50% each) are using colour and black & white television. Regarding the

brand choice most of the people (52%) had national brand (Onida, BPL,

Texela, Uptron, Salora, Oscar etc), while remaining (48%) had multinational

brands (Samsung, LG, Phillips etc).

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Further in case of radio, it still maintained its dominancy in rural

areas, it was found that a large number of the people (76%) using radio, out

of which a good majority of respondents (49%) had multi-national brand

(Phillips and Sony), followed by national brand (27%) such as BPL Oscar

and rest of them (24%) had owned local brand.

It was also observed that the total number of bicycle owners were also

very high (93%) followed by fan owners (88%). Hero was the most

preferred brand (51%) of bicycle followed by Atlas (42%) and Avon (07%).

Out of the total fan owners, majority of people (67%) had national brand

such as Usha, Orient Khaitan, Ganesh and remaining (23%) owned local

brands.

Further regarding wristwatches it was found that a high majority of

respondents (94%) owned wristwatches out of which a majority (62%) using

national brand such as Titan and HMT followed by multi-national brand

(33%) such as Timex, Citizen and very few (05%) had local brands.

In case of sewing machine more than half (63%) of the respondents

are owning sewing machine out of which majority (71%) were owned

national brands such as Singer, Usha. and remaining (29%) had owned local

brand.

It was also observed that the more than one fourth of the respondents

had bike (27%) followed by scooter (25%). Hero-Honda was the most

preferred brand (45%) of bike followed by Bajaj (31%) and TVS (16%). Out

of the total scooter owners, Bajaj was the leading brand (65%) followed by

LML (35%).

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Brand Preference

It is evident that the rural consumers preferred branded products

where he perceived that the technology and quality is superior. Though

regarding the products like radio, sewing machine and fan people shown

their interest on local brands. The possible reasons could be low price, easy

availability, known manufacturer, easy to complain and low risk.

Consumption Pattern and Brand Preference of Non-Durable

Findings reveals that both national and multinational brands are being

used by all the respondents in their daily needs, such as Toothpaste

(Pepsodent, Colgate and Cibaca), Hair Oil (Bajaj, Hair Care, Vatica, Nihar

and Parachute), Shampoo (Rejoice, Sunsilk, Vatica and Clinic plus) and

Bathing Soap (Lifebuoy, Nima, Lux and Hamam). It was also noted that a

high majority of the respondents are using national brands for Salt (98%)

Tata, Annapurna, Surya and Captain Cook; for Detterzent Cake (93%) Rin,

Wheel, Ghadi, Moore and Doctor; for Detterzent Powder (89%) Rin, Nirma

and Wheel and for Tea (66%) Tata, Sargam and Lipton.

Product Selection, Source of Information and Buying Decision

To know the criteria of product selection, brand preferences, source of

information and buying decision about durables following observations have

been made:

Product Selection

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It was found that brand is the main deciding factor of purchasing as

the majority of respondents (44%) claimed for, followed by cost (32%),

while remaining considerations are credit facility (10%), gift, discount &

offer (08%), design and colour (06%) of the product.

Source of Information

When asked about how do they come to know about different

products, majority of the respondents (55%) stated that personal sources like

shopkeeper (29%) and friends /neighbour (26%) are the major sources of

their information while a good number (45%) of respondents were

influenced by the mass media (television, newspaper and radio).

Buying Decision

It was observed that the selection of brand is primarily decided within

the family, as the majority (47%) of the respondents considered the opinion

of their family member before purchasing the product whereas about one

third (29%) respondents purchase themselves and remaining (24%) were

influenced by their friends and neighbour.

Post-Purchase Behaviour

It was asked to the respondents whether they are satisfied with the

quality and performance of the product, which they possessed, a majority of

respondents (84%) were satisfied. Out of the dissatisfied respondents (16%),

a high majority (95%) did not complain anywhere while few of them (05%)

have complained to the dealer. It was notable that all of them said there

complained was heard properly and redressed accordingly. It was

appreciating to note from the quality end that a good number of the

respondents (62%) preferred to buy same brand in future, which they already

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have, while remaining (28%) prefer to switch over to another brand just for

the sake of change.

Buying Behaviour (Non Durables)

It was observed that the retailer or shopkeeper in the selected villages

provides information about the new products, offers and gifts to the

consumer. More than three-fourth of the respondents (76%) spent Rs. 750 to

Rs. 1000 monthly for their daily needs in the local market, followed by Rs.

500 to Rs. 750 (10%), more than Rs. 1000 (09%) and remaining (05%) spent

less than Rs. 500. Majority of the respondents (60%) always purchase in

cash while rest of them (40%) purchase either in cash or credit according to

the situation. In case of credit facility given by shopkeeper, the majority of

respondents (58%) said that shopkeeper allowed them one-month time to

repay, while few (27%) said that the repayment time is more than one-month

and remaining (15%) said that they themselves pay their debt within 15

days. It was observed that in case of satisfaction with respect to quality and

brand of the product available in the village market, a high majority of

respondents (88%) were dissatisfied while very few (12%) were satisfied.

Regarding the frequency of purchase of various non-durable products

by rural consumers it was observed that a high number of respondents

purchase some products like Shampoo (70%), Detergent Cake (60%) and

Bathing Soap (57%) on weekly basis whereas in case of monthly purchasing

the majority of respondents revealed for Toothpaste (72%), Tea (70%) Hair

Oil (63%), Salt (60%) and Detergent Powder (51%).

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Regarding the quantity, purchased by rural consumers with reference

to various non-durable products it was observed that the majority of

respondents prefer to buy Shampoo (60%) in sachet or small size, Bathing

Soap (37%) and Detergent Powder (35%) in medium size, whereas in case

of Salt (100%), Toothpaste (72%), Tea (70%), Hair Oil (67%) and Detergent

Cake (40%) they prefer to buy in large packs.

Haats and Melas

The distinct features of the rural markets are the presence of Haats.

These periodic markets are held once on a week and on an average, more

than 500 people visits in the haats of the selected villages. Generally, haats

are held with in 5 km radius from adjoining villages, which cover at least ten

villages and consists of approximately 50 shops. In haats every type of daily

needs products such as salt, spices, grain, wheat, rice, pulses, cereals, tea,

toothpaste and powder, detergent cake and powder, edible oil, hair oil,

vegetables etc are available. In spite of this, cloths, shoes, cosmetics are also

found in the haats. Majority of respondents (60%) said that they visit haats

for purchasing daily needs products because of cheapness and variety and

further they were satisfied with the quality and price of the products

available in the haats.

Melas and Fairs are a part of India’s rural culture and history, where

people converge for occasions, festivals and to commemorate other

important events. These fairs take place around the time when farmers sell

their crops which means they have surplus money to spend in the melas.

Atleast twenty melas and fairs are held every year all over the district and an

average more than 1,500 people visits in these fairs. Unlike the haats, melas

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cater to a much larger population with more sophisticated manufacturing

products and almost half of the outlets in the melas sell factory made goods.

Almost all the respondents visit melas and purchased products from there

because of cheapness and variety. They are satisfied with the quality and

price of the products available in the melas.

Distribution Network in the Study Area

The following observations have been made regarding the distribution

network in the study area:

In total ten distributors in which four dealers and six sub-dealers have

been interviewed for durables. It was found that for automobile (Car, Bike

and Scooter) almost all the manufacturers deputed the authorized dealer at

semi urban and urban areas as an effective after-sale-services system is

required for such products and simultaneously a tough competition could

also be one of the reason. It was observed that majority of the dealers (80%)

are involved into this business since last fifteen years, the entire sampled

dealer were well educated. It was found that dealers buy the stock in large

quantities (often several products) with the maximum payment of 80% and

forward the goods to other intermediaries and some times direct to

consumers also. Stock holding and sub-distribution are the main functions of

the dealers. They also perform promotional functions like establishment and

promotion of the brand; complete the sales target allotted by the company,

financial support in form of credit facilities, collection of accounts

receivables and also facilitated their market intelligences to the producers.

Further, it was noted that sub-dealers are intermediaries who generally

get the stock either directly from the producers or from dealers. They operate

in a relatively smaller territory or at a specific location. The stocks they keep

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are operational stocks necessary for immediate sale. It was noticed that for

acquiring dealership, they have to fulfill two primary conditions i.e. physical

(desired space in good location and market link) and financial (minimum-

security deposits 5-20 lakhs) depends on the size and nature of the products.

It was found that regarding any sort of consumer complaint dealers have the

direct links with their producers whereas sub-dealers resolved the complaint

with the help of dealers and the producers. Generally every company’s have

their own engineers (technical expert) who look after such complaints.

The distributor (wholesaler) is the person who real interfaces between

the firm and its customers and his interaction with consumers gives rise to

sale. In total ten distributors in which four distributors and six semi-

distributors (big retailers) have been interviewed for non-durables.

The entire sampled distributors were well educated and most of them

(60%) were involved into this business about more than twenty years. These

wholesalers directly sell the goods to retailers (kirana shops) in their

assigned territory. To obtain the dealership they have to fulfill two primary

conditions i.e. physical as well as financial. They should have sufficient

space in good locations and should have the minimum-security deposit,

which depends on the quantity of the stock they desired. It was noticed that

the companies take 80% advance payment of the goods from the distributors

and allowed fifteen to thirty days credit facility to them. The distributors also

exercise the same practice with retailers by taking an advance for the goods

forwarded to them and the credit facilities. The wholesaler may get product

directly from the company or the sales representatives deputed by the

companies who keep on visiting to them. These sales representatives also

gives feedback to the producers regarding sales intensity, inventory holding

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support, services provided to customer, complaint from retailers or

consumers, payment of invoices, and maintenances of business records. In

case of wear & tear, damage in transit the company affords the losses if

occurred. Regarding the complaints, almost every company has its own

procedure to resolve the said complaints.

Consumer Awareness and Complaint Behaviour

To assess the awareness level of the respondents it was noticeable that

the majority of the respondents (66%) were aware about the consumer rights

therefore, whenever they come a cross with any defect in the product about

two third of the respondents (61%) return the product to the shopkeeper

followed by change the shop (21%) and remaining (18%) prefer to change

the brand. In case of complaining about the defective products to any

government organization more than half of the respondents (55%) did not

know where to complain whereas a good number of the respondents (45%)

despite of knowing this never exercised their right. Further, in case of taking

cash memo majority of respondents (60%) said that they never asked for bill

while remaining (40%) use to get bill from the shopkeeper. While

purchasing a product about one-third of the respondents (34%) check the

price of the product followed by date of manufacturing (25%), name of the

producer (24%) and remaining (17%) concerned for quantity/weight of the

product.

Consumer Attitude Towards Advertisement and Sales Promotion

Regarding the opinion of the respondents towards advertisement, it

was observed that the people enjoy seeing the advertisements (64.27) but do

not like advertisements in between the programmes (63.53). It was

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interesting to note that the people were agreed with the statement that the

advertisement made the decision making process easy (61.87). However,

people do not rely on advertisements as the majority of the people gave top

rank (weighted average score) to the statements that advertisements

increases the cost of the products (61.27) followed by mislead the consumers

(59.53), and it also increase undue competition in the market (59.47).

Further the findings also revealed that people do not appreciate the

advertisements endorsed by the celebrities as they ranked low to the

statement that advertisement by celebrities are more authentic (51.00).

Regarding, the sales promotion practices generally adopted by the marketers

the opinion of the people is also found unfavourable as they ranked high to

the statement that companies dispose off their old stock in sale (65.13)

followed by quality in discount sale is generally low (63.73), gifts along

with the products increase the cost of the products (61.67), credit purchasing

is always costlier (60.67), and companies whose sale is low, offer the gifts

(52.47).

Summary of the Findings

� All the products are being used by the people in the study area.

� Majority of people are using national and multinational brands in both

categories (durables & non durables).

� People preferred branded products where they perceived that the

technology and price is superior.

� TV and Radio/Tape recorder are being used by the maximum people.

� An equal number of the people are using coloured and black & white TV.

� A particular brand is being used by the people in case of TV, Sewing

Machine, Fan, Tea, Detergent Powder and Cake.

� Brand is the main consideration for product selection by the majority.

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� Age and occupation are the significant variables for product selection.

� Personal factors (Shopkeeper, friends,& neighbour) are the main source of

information.

� Education and occupation are the significant variables which influence the

source of information.

� According to majority of the people, the selection of product is primarily

decided within the family.

� Education, occupation and income are the variables which have significant

influence in buying decision.

� People are satisfied with the products being used by them.

� Most of the people want to make their future purchase for the same brands.

� People are dissatisfied with the quality and price of the products available

in the villages.

� Majority of the people prefer to buy their personal care products from near

by town/city.

� Majority of the people visit haats and melas and satisfied with the quality

and price of the products.

� The distribution network is well organised in the area. Dealers operate in a

relatively smaller territory or at specific locations.

� Most of the companies have their own technical experts who look after

consumer complaints.

� Majority of the people were aware to consumer rights, but do not

complaint.

� More than half of the people do not know where to complaint.

� Education found relevant in case of knowledge of consumer forums.

� Majority of the people enjoy seeing the advertisement and feels that it make

the decision making process easy.

� Majority also considered that advertisement increased the cost of the

product.

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� People do not appreciate advertisement endorsed by the celebrities.

� Most of the people were in disfavour of sales promotion activities and hold

the view that the companies whose sale is low offer the gifts.

� There is no significant attitudinal difference on the basis of gender, age and

occupation regarding advertisement whereas it was significant in case of

education and income.

� Similarly, in case of sales promotion there was no significant attitudinal

difference on the basis of gender, age, education and occupation, except

income.

Discussions

With all round economic growth and the consequent rise in disposable

incomes, it was notices that expenditures on shopping by the rural class are

high like all the other urban affluent classes. They have shifted to a

consumer-oriented culture having enough disposable income to spend on

consumer durables. Further, the study revealed that in case of durables

quality and price plays an important role in the purchase decision. Today

they enjoy almost all the basic comforts of life with the branded products, as

more than half of the respondents are using multinational brands. It is

appreciating to note that a vast majority of the consumers were satisfied with

the quality of the products, which shows the realization of the importance of

rural market from the marketers end who wants to have a competitive edge

in the arena. Further, it was found that the brand retention was also very high

among the rural consumers, though they take a long time to decide on a

particular brand but once they are convinced they are more brand loyal than

their urban counterparts. It was also noticed that their buying behaviour is

very much influenced by experience of their own and their own families.

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In case of non durables it was observed that people do not

compromise with quality, as a very high majority of the rural consumers buy

salt and spices of national brands whereas, for mustered oil they prefer local

brands being prepared in nearby mills and chakkis. It was also interesting to

note that generally, the rural consumer prefers to shop at the local market as

there is a variety to choose from and is competitive pricing structure and

moreover he is confident about the shopkeeper, whereas they prefer to go

town and cities for personal care products, this could be because of the high

risk (reliability, quality and price), involved with these products.

Shopkeeper either in local market or in city is the main source of

information's regarding offer & gifts, discounts and new products etc, and

they have great trust on them as the high majority of consumers make

repeated purchasing from the same shopkeeper. It was found that merely less

than ten percent of the consumer makes credit purchasing; this change could

be because of rising income of the rural masses. With the increased transport

facilities people use to make five to ten visits to the town and city in a month

where they prefer to buy comparatively costly items, overthere.

Haats and melas are still distinct features of the rural markets.

Majority of the people still enjoy visiting and buying from these periodic

markets due to variety and cheapness. It is appreciable to note that people

are satisfied with the quality and the price of the products available in the

haats and melas.

It was notices that though rural consumers are not much aware of their

rights, as consumers but the complaint regarding durable products were very

high as a considerable amount in involved into. It is encouraging to note that

a high majority of them were satisfied with the way their complaint has been

redressed which shows the realisation of accountability from the marketers

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end. In case of awareness regarding consumer forum, more than fifty percent

were ignorant about, while rest of them were aware through television and

newspapers but they never made any complaint over there. In case of non-

durables the complaint was reported very low, it was merely less than ten

percent, made to shopkeeper only. Whereas most of the people prefer to

switchover another brand or prefer to change the shop.

The study concluded that study of behavioural patterns is an essential

prerequisite of deciding upon the marketing strategy regarding a particular

product. What price is to be fixed, what quality is to be sold, which media of

advertisement is selected, what offers are to be made, all such questions are

to be answered only by reference to behavioural pattern. Nothing can be sold

without knowing how the prospective buyers behave. Understanding the

buyer psychology thus becomes the key factor that can decide the success or

failure of a marketing strategy. It is revealed from the present study, that this

function depends upon a number of variables such as literacy, income,

attitudes, awareness, price, quality, prestige, ego etc. Therefore, proper

formulation of marketing strategy needs an overall understanding of this

behavioral pattern.

The Marketer should see that consumer durables are made available at

various outlets for the consumers. Marketers should also try to establish

suitable channels of distribution to help consumers to purchase products

with least efforts. The present study has attempted an in-depth study of this

behavioural pattern and the same can be used as a workable guideline for

formulation of effective marketing strategy by the company’s desire of

selling their products in the urban and rural areas. It is hoped that this study

will stimulate further research in the field of consumer behaviour and the

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findings of the study would be useful for the marketers, policy makers,

students of marketing and consumers themselves.

Policy Implications, Suggestions and Conclusion

The present Study has highlighted various aspects, which the rural

consumer considers while making decision. An analysis of consumption

pattern, decision making, awareness and attitude have revealed a very

optimistic state of affair as far as rural consumers are concerned. Even that

this study, advised to marketers to include customer centric orientation in

their work culture through mechanise their operations, promote their

services and product vigorously, in order to keep their market share intact in

the long run. Not only this would, they also have to go for devising customer

relationship marketing strategies in order to retain the customers.

Further the marketers should also keep in mind that the rural

consumer has also come up in the main stream as of his urban counterpart

his interest therefore should receive first priority. He is ready to buy

whatever being offered to him provided the product should be fit into his

expectations. Quality has become prime concern for him and no more he

wants remain victim and wants to be taken care of for his needs, his

problems, and his mistakes. Since no study has been conducted as such, to

make a comprehensive analysis on consumption pattern, buying behaviour,

awareness and attitude towards rural consumers, the present study is a

contribution to the existing literature

Suggestions

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From the above scenario, the following suggestions can be made:

� As the consumption pattern of the rural people has changed drastically hence,

to serve it properly it is needed to improve the efficiency and scope of

distribution network so that they can get required commodities at right time in

right place with in affordable prices.

� As one of the observation of the study is that the rural consumers are equally

quality conscious as their urban counterparts, therefore, due attention should

be paid to maintain quality of the products being served to them to fulfill their

aspirations.

� It was also found that the brand retention is also considerably high among the

rural consumers, so marketers should concentrate on brand value i.e. the

quality, utility and reliability of their products.

� It was observed that big companies face stiff competition from smaller

companies on price and margins. Therefore, the companies should developed

products with low prices and in sachets to meet competition. The strategic

responses in such situations are to strengthen their exisiting access (promotion

and distribution channel), offer a value for money and retention of dealer

margin.

� It is very common features in rural markets that the leading brands find

themselves confronted with duplicates and imitation. In this context, the

marketers need to take additional steps such as to focus on brand building,

availability of products, unique packaging, educate consumers on quality,

legal methods and persuasive measures involving association with other firms

in order to prevent duplicates and fakes.

� Further, it is very critical aspect in rural markets that the leading brands

compete with substitute also. While competing with substitute, the marketers

should educate consumer using demonstration and trial and also designing a

product with relative superiority which could be easily perceived by the rural

consumers.

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� As it was also observed that electronic messages have a limited influence on

decision making of the rural consumer, for the decision, apart from his own

rationality he relied upon his own families too. Therefore, it is imperative that

the marketers should understand the mindset of the rural consumers and make

their distributors and outlets more reliable and consumer oriented.

� As the study reveal that the haat and melas are the routine features in the study

areas therefore, marketers should focus on haats and melas held in the villages

to introduce new products and brands through demonstration and sampling. It

not only increased the penetration of existing products but also create

awareness and preference for products and brands as they provide platform to

get the attention and interest of the rural consumers.

� Marketers should also understand the need of consistency in sales promotion

to be maintained but the repetitive use of the same type of promotion reduces

the incentive value and excess promotion will reduce the novelty value of the

offer.

� As the study reveal that the rural people have also good interest on local

products hence, the local manufacturers should increase quality and durability

if they want to remain in competition with the branded products in the area.

Conclusion

It is encouraging to note that there is a remarkable improvement in

buying behaviour and consumption pattern of rural consumers, which will

create more demand to companies in future as well. But the companies also

has to accept this fact that rural buyers look for value for money from their

purchase, and do not buy any thing for the sake of buying it. As also

reported in the study that brand and price play an important role in their

choice, hence the marketers should think only of rural variations of their

products with desired innovations to meet the need and the context of the

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rural consumers, leaving the product features essentially the same as those

offered to urban consumers.

Tapping the ocean of rural market in India demands creative

marketing and many developmental efforts to be made in order to exploit the

immense marketing opportunities. In the rural areas, demand has to be

created and for this personal selling is supreme means of promotion because

rural sales force have familiarity with rural culture, traditions and habits. The

sales person has a plus point that he can communicate in the local rural

languages.

Further, the marketers should also use non-conventional

communication media such as haats, melas, folk media, puppet shows and

mobile audio-visual van having portable exhibition kit for village-to-village

sales campaigns. These A.V. vans are now popular in rural markets and they

can act as effective tools of promotion, therefore, the spirit of creativity and

all marketers in rural marketing should evince innovations in promotion as

these media is more effective and have greater impact on rural psyche.