Consumer Consumer BehaviourBehaviour

An IntroductionAn Introduction

What is What is Consumer Consumer Behaviour?Behaviour?Those activities directly Those activities directly involved in obtaining , involved in obtaining ,

consuming and disposing of consuming and disposing of products and services, products and services, including the decision including the decision

processes that precede and processes that precede and follow these actionsfollow these actions

Possibly the most challenging concept in the marketing is to deal with Possibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. The attitude of Indian consumers has understanding the buyer behaviour. The attitude of Indian consumers has undergone a major transformation over the last few years.undergone a major transformation over the last few years.

The Indian consumer today wants to lead a life full of luxury and comfort. He The Indian consumer today wants to lead a life full of luxury and comfort. He wants to live in present and does not believe in savings for the future. An important wants to live in present and does not believe in savings for the future. An important and recent development in India‟s consumerism is the emergence of the rural and recent development in India‟s consumerism is the emergence of the rural market for several basic consumer goods .market for several basic consumer goods .

The Indian middle class has provided a big boost to the consumer culture during The Indian middle class has provided a big boost to the consumer culture during the recent past and it is hoped that their buying behaviour will continue to change the recent past and it is hoped that their buying behaviour will continue to change in the coming future. Due to fast growth of the services sector per capita income of in the coming future. Due to fast growth of the services sector per capita income of people of India is alsopeople of India is also increasing.increasing.

The Indian consumer today is highly aware about the product, price, quality and The Indian consumer today is highly aware about the product, price, quality and the options available with him. The purchasing is done by keeping all these factors the options available with him. The purchasing is done by keeping all these factors in mind. Today, price is not the only consideration as it was a few years back when in mind. Today, price is not the only consideration as it was a few years back when prices played a major role in purchasing. Marketers are trying hard to capture this prices played a major role in purchasing. Marketers are trying hard to capture this ever increasing Indian middle class as they form the bulk of Indian consumersever increasing Indian middle class as they form the bulk of Indian consumers..

This study draws on This study draws on concepts from various concepts from various

other disciplinesother disciplines PsychologyPsychology SociologySociology AnthropologyAnthropology EconomicsEconomics MarketingMarketing

rural consumer behaviour\qweqwe.JPG

CONSUMER BEHAVIOURCONSUMER BEHAVIOUR

Variables involved in Variables involved in understanding consumer understanding consumer

behaviourbehaviour

Stimulus – ads, products, Stimulus – ads, products, hungerpangshungerpangs

Response – physical/mental reaction Response – physical/mental reaction to the stimulusto the stimulus

Intervening variables – mood, Intervening variables – mood, knowledge, attitude, values, knowledge, attitude, values, situations, etc.situations, etc.

Rural Consumer Rural Consumer Behaviour Behaviour

RURAL CONSUMER RURAL CONSUMER BEHAVIOURBEHAVIOUR

Consumer Buyer Behaviour refers to the buying behaviour of final consumers - Consumer Buyer Behaviour refers to the buying behaviour of final consumers - individuals and households who buy goods and services for personal consumption. individuals and households who buy goods and services for personal consumption. All of these final consumers combined make up the consumer marketAll of these final consumers combined make up the consumer market..

The consumer market in this case is Rural India. About 70% of India's population The consumer market in this case is Rural India. About 70% of India's population

lives in rural areas. There are more than 600,000 villages in the country as against lives in rural areas. There are more than 600,000 villages in the country as against about 300 cities and 4600 towns. Consumers in this huge segment have displayed about 300 cities and 4600 towns. Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use. Villagers react vast differences in their purchase decisions and the product use. Villagers react differently to different products, colours, sizes, etc. in different parts of India. Thus differently to different products, colours, sizes, etc. in different parts of India. Thus utmost care in terms of understanding consumer psyche needs to be taken while utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India.marketing products to rural India.

Thus, it is important to study the thought process that goes into making a Thus, it is important to study the thought process that goes into making a

purchase decision, so that marketers can reach this huge untapped segmentpurchase decision, so that marketers can reach this huge untapped segment..

Factors which influence Factors which influence Rural Rural ConsumersConsumers during purchase of during purchase of

a producta product Socio cultural factors Socio cultural factors GroupGroup FamilyFamily Role and status Role and status Economic factors Economic factors Political factors Political factors

Consumer Buying Decision Consumer Buying Decision ProcessProcess

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-PurchaseEvaluation

Types of Buying Types of Buying BehaviorBehavior

Routine ResponseRoutine Response Limited Decision Limited Decision Extension DecisionExtension Decision Impulse BuyingImpulse Buying

Lifestyle of a Rural Lifestyle of a Rural ConsumerConsumer

Rural consumer is very religiousRural consumer is very religious Rural consumers prefer to work Rural consumers prefer to work

hard themselveshard themselves Strong family ties and respect for Strong family ties and respect for

family valuesfamily values Likes to play cards and hang out at Likes to play cards and hang out at

choupalchoupal

Rural shopping habbits: Rural shopping habbits: Consumer insightsConsumer insights

Prefernce for small or medium Prefernce for small or medium packagepackage

Role of retailerRole of retailer Role of opinion leaders for durables Role of opinion leaders for durables

FACTORS INFLUENCING BUYING FACTORS INFLUENCING BUYING BEHAVIOURBEHAVIOUR

  The various factors that effect buying behaviour of in rural India are:-The various factors that effect buying behaviour of in rural India are:-

   Environmental of the consumerEnvironmental of the consumer - The environment or the surroundings, within - The environment or the surroundings, within

which the consumer lives, has a very strong influence on the buyer behaviour, egs. which the consumer lives, has a very strong influence on the buyer behaviour, egs. Electrification, water supply affects demand for durables. Electrification, water supply affects demand for durables.

Geographic influencesGeographic influences - The geographic location in which the rural consumer is - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer. For instance, 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, 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 HMT sells more winding watches in the north while they sell more quartz watches

down southdown south..

Influence of cultureInfluence of culture: Culture and tradition influence perception and : Culture and tradition influence perception and buying behavior. For example, the preference in respect of color, size and buying behavior. For example, the preference in respect of color, size and shape is often the result of cultural factors. Rural consumers’ shape is often the result of cultural factors. Rural consumers’ perception of products is strongly influenced by cultural factors.perception of products is strongly influenced by cultural factors.

Exposure to urban lifestylesExposure to urban lifestyles: Extent of exposure of rural consumers to : Extent of exposure of rural consumers to urban lifestyles also influences their buying behavior. An increased urban lifestyles also influences their buying behavior. An increased exposure and interaction with urban communities has been the trend in exposure and interaction with urban communities has been the trend in recent years.recent years.

The way the consumer uses the products: The way the consumer uses the products: The situation in which the The situation in which the consumers utilize the product also influences their buying. The example consumers utilize the product also influences their buying. The example of lack of electricity affecting buying behavior illustrates this point as of lack of electricity affecting buying behavior illustrates this point as well. Lack of electricity automatically increases the purchase of batteries well. Lack of electricity automatically increases the purchase of batteries by rural consumers. Similarly, since rural consumers cannot use washing by rural consumers. Similarly, since rural consumers cannot use washing powders/detergent powders that much, as they wash their clothes in powders/detergent powders that much, as they wash their clothes in streams or ponds, they go in more for washing bars and detergent cakesstreams or ponds, they go in more for washing bars and detergent cakes..

Places of purchasePlaces of purchase: Buying behavior of rural consumer also varies depending : Buying behavior of rural consumer also varies depending on the place of purchase. Different segments of rural buyers buy their on the place of purchase. Different segments of rural buyers buy their requirements from different places/outlets. Some buy from the village requirements from different places/outlets. Some buy from the village shopkeepers; some from village markets/fairs; others buy from the town that shopkeepers; some from village markets/fairs; others buy from the town that serves as the feeder to the rural area. It is also seen that the same buyer buys serves as the feeder to the rural area. It is also seen that the same buyer buys different requirements from different laces. For understanding the buying different requirements from different laces. For understanding the buying behavior of the rural consumer correctly, the marketer must ask the question: behavior of the rural consumer correctly, the marketer must ask the question: Where from do they buy the products and why?Where from do they buy the products and why?

Involvement of others in the purchaseInvolvement of others in the purchase: Involvement of others in the : Involvement of others in the purchase in the purchase decision is yet another relevant factor in this purchase in the purchase decision is yet another relevant factor in this regard. There has been a change here in recent years. In the past, the head regard. There has been a change here in recent years. In the past, the head of the family used to make the purchase decision all by himself. In contrast, of the family used to make the purchase decision all by himself. In contrast, the involvement of the other members of the family in the purchase decision the involvement of the other members of the family in the purchase decision has been growing in recent years. An increase in literacy coupled with has been growing in recent years. An increase in literacy coupled with greater access to information has resulted in this development. The marketer greater access to information has resulted in this development. The marketer has to reckon the role of the influencers while sizing up the buying behavior has to reckon the role of the influencers while sizing up the buying behavior of rural consumersof rural consumers..