Module – 2 The Rural Consumer Classification of Rural Consumers, Classification and Characteristics of Rural Consumers, Rural consumer Behaviour, Decision Process, Brand Loyalty, Innovation Adoption, Factors Influencing Rural consumer Behaviour, Consumer Buying Process, Opinion Leadership Process, Rural Shopping Habits, Growing Consumerism, Concepts and Process of Rural Market Segmentation, Bases, Targeting, Positioning

Factors Influencing Rural consumer Behaviour 1. Environmental Factors a. Economic b. Political c. Technology d. Legal 2. Cultural Factors a. Culture and Subculture b. Social Class

3. Social Factors a. Reference Groups b. Family c. Roles and Status 4 3. Social Factors a. Reference Groups b. Family c. Roles and Status 4. Personal Factors a. Age and Life Cycle b. Occupation c. Economic Circumstances d. Life Syle e. Personality and Self-concept

5. Psychological Factors a. Motivation b. Perception c. Learning d 5. Psychological Factors a. Motivation b. Perception c. Learning d. Belief and Attitude

Consumer Buying Process Buying roles consist of the following: a. Initiator: A person who first suggests the idea of purchasing anything. b. Influencer: A person who influences the purchase decisions c. Decider: One who takes final purchase decision d. Buyer: One who actually makes purchase e. User: Person who uses the product

Purchase Decision Making Process for New Product A rural consumer passes through the following stages while adoption of a product a. Awareness: The consumer becomes aware of the new product/service, but does not have information b. Interest: He seeks information c. Evaluation: He evaluates the new products, compares with existing products

d. Trial: He tries the new product on a small scale e d. Trial: He tries the new product on a small scale e. Adoption: He decides to use it regularly

ADOPTER GROUPS Innovation adoption depends on the willingness to try out new products/services/ideas The adopter groups are as follows: a. Innovators – venturesome and opinion leaders b. Early adopters – are opinion leaders but carefully adopts

Early majority – adopts new idea before an average person Late majority – adopts only after majority has tried Laggards – Adopts only when it becomes tradition

Opinion Leaders Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Opinion leaders are effective in influencing the buying behaviour due to following reasons: a. Credibility b. Positive and Negative Product Information c. Information and Advice d. Opinion leadership is category specific:

BRAND LOYALTY A rural consumer is price sensitive due to low purchasing power and lack of awareness about the quality of the products available in the market. They continue to patronise a brand once they are satisfied with the product.

Rural Shopping Habits A rural consumer visits different markets for buying products which are as follows: a. Village Markets - Panshops in small villages - Grocery shops in large villages b. Weekly Markets c. Towns, taluk and district head quarters

Growing Consumerism Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts. Consumerism has altered rural buying behavior in recent years. With empowerment of rural people with education, employment, higher purchasing power, better media exposure, better connectivity with outside world, they provide a massive unexplored pool of consumers.

Concepts and Process of Rural Market Segmentation Market Segmentation The process of dividing the market into meaningful, relatively similar identifiable segments and groups.

People Oriented Approach (Customer Personal Characteristics) Classifying customers by customer dimension such as Geographic Location Demographic Characteristics Socio-Economic Characteristics Psychographic Characteristics

Product Oriented Approach Use pattern Benefits pattern Brand Loyalty pattern Store patronage Use of buyers’ attitude

Targeting Targeting is grouping of persons for whom a firm creates and maintains a product mix that specifically fits the needs and preferences of that group.

Targeting Strategies A firm should identify the most potential and convenient segment of the total market and make effective use of the marketing mix i.e., product, price, place (distribution) and promotion to achieve marketing objectives.

Undifferentiated Marketing / Mass Market Strategy Marketers may not prefer the idea of market segmentation and follow one marketing mix for many market segments. Ex: Coca-Cola, Medimix

Differentiated Marketing / Market Segmentation Strategy A firm under differentiated marketing strategy enters many market segments but has a unique marketing mix appropriate for each segment. Ex: - Mahindra & Mahindra, HUL

Concentrated Marketing / Niche Marketing A firm may decide to concentrate on one chosen segment of the total market. It may select an area where there is no strong competition.

Positioning Product Positioning refers to the position or image which a product enjoys in the present or potential customers. Positioning is based on Unique Selling Proposition (USP). It may be unique feature of the product or brand, market or competition which becomes the core idea that the product is placed in the market.