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A study on Rural consumer behavior with specific reference to rural areas in Erode district Tamilnadu

A study by Mrs Booma HalpethLecturer, Ramniranjan Jhunjhunwala College, Ghatkopar (w), Mumbai -- 400086Mrs Nandini JagannarayanLecturer, Ramniranjan Jhunjhunwala College, Ghatkopar (w), Mumbai -- 400086Rural consumer behavior with specific reference to rural areas in Erode district TamilnaduOBJECTIVES OF THE STUDYInvestigating whether or not retail outlet patronage is explained or influenced by outlet related factors.2a. Studying the relationship between consumer related factors and choice of outlet. b. The relationship between the frequency of shopping trips and consumer perception of the various attributes of retail outlets.

OBJECTIVES OF THE STUDY3. Investigating the existence or otherwise of store loyalty among patrons of Modern Retail Outlets. 4. The relationship between consumer satisfaction and attitudes towards shopping.5. The spending habits of Consumers in rural areas.

METHODOLOGYPrimary data source - Interview schedule and observation method of data collectionSecondary data source

Erode DistrictVillages studied Gobichettipalayam, Chennimalai

PROFILE OF THE MARKETChennimalai had a population of 15,526. Males constitute 51% of the population and females 49%. Chennimalai has an average literacy rate of 75%, higher than the national average of 59.5%; with male literacy of 83% and female literacy of 67%. 8% of the population is under 6 years of age.

PROFILE OF THE MARKETChennimalai stands No.1 Rank in Hand made Bed sheets, Handicrafts, Lungies, Hand Made Curtains, Hand Looms & Print Designs. Garments from here travels to all parts of Tamil Nadu & even North India. Many people here are running their Business in HandLooms & Power Looms.

PROFILE OF THE MARKETThe city is developing quickly and has been described by the government as "Bi-functional", with 31% of the work force engaged in agriculture, 56% in trading and other activities and 13% in industry. Age groupMale Female Total Under 1816 18 34 (17)18-29283462(31)30-40221234(17)40-54352358 (29)55-657512 (6)Total 10892200Age-wise and genderwise distribution of respondentsAge-wise and genderwise distribution of respondents

Age-wise and genderwise distribution of respondents

Monthly family incomeNo of families Less than 200002000- 500005000-750010 (5)7500-1000022 (11)Above 10000168 (84)Total 200 Monthly income of the family members

Monthly income of the family membersAverage spending on Less than 20002000-50005000-10000Above 10000Total no of respondentsFood 13 (6.5)32 (16)131 (65.5)24 (12)200Clothing 2 (1)46 (23)78 (39)74 (37)200Education 015 (7.5)4 (2)181 (90.5)200Entertainment 2 (1)165(82.5)30 (15)3 (1.5)200Others, specify 0000200Total 200Average Spending pattern

Average Spending pattern

Monthly spending on retail productsNo of families Less than 200002000- 500005000-750046 (23)7500-1000032 (16)Above 10000122 (61)Total 200Monthly retail consumption

Monthly retail consumption

Groceries purchased fromNo of respondentsLocal kirana shops122 (61)Wholesale mandis16 (8)Supermarkets62 (31)Others, specifyTotal 200Place of purchase of groceries

Place of purchase of groceriesParticular about any brand?No of respondentsYes 181 (90.5)No19 (9.5)Total 200Brand particularity/ awareness

Prefer going to the kirana shop/ supermarket No of respondentsYes/ NoAvailability of all products 89 (45)Friendliness of the employees/ shopkeeper144 (72)Nearness to place of work12/(6)Nearness to place of residence137(68.5)Credit facility 1(0.5)Any others, specify0Free home delivery182(91)Total 200Shopping location

Have you ever purchased any products on seeing advertisements? No of respondentsYes (always)72 (36)No (never)85 (43)Sometimes 43 (21)Quite often0Total 200Impact and influence of Advertisement Impact and influence of Advertisement

What would you say about advertisements of the products you use?No of respondentsIs consistent with company image23 (12.5)Is creative/interesting48 (24)Is informative42(21)Is memorable56(28)Is original12 (6)Is influential5 (2.5)Is believable10 (5)Is relevant to the product advertised 4 (2)Total 200Influence of Advertisement

What is your perception about mall?Respondents Will have a place for entertainment36 (18)Will hamper the villages culture92 (46)children Will get spoilt72(36)we Will not favour a mall gowns area146(73)we are happy with our existing shopping habit186(93)Total 200 Respondents Perception about malls

ConclusionThere have been studies conducted in rural areas where there was no scope for malls due to problems like Physical Distance, Language/Culture, Accessibility, Money/Expensive, Lack of Human Resource, Competition, Technology, Rules & Regulation, Lack of Information, Size of the Market, Buying Power, Image etc. ConclusionBut, this rural area has proved to have a certain unique features like increased affordability of the consumers but their consumption pattern was found to be different. They spend a major portion of their income on education and entertainment.

ConclusionIn spite of a well developed infrastructure and increased affordability, consumers prefer to stick to their regular shopping habits/ outlets. They value the relationship with the shop keepers more than anything.

ConclusionTo them, a customer has to be treated by shopkeeperCUSTOMERSC - Care for the customersU - Understand the customersS - Study the customersT - Trust the customersO - Oblige the customersM - Meet the customersE - Evaluate the customersR - Response the customersS - Sell and win the customers