AN EMPIRICAL STUDY ON RURAL CONSUMERS PERCEPTION TOWARDS CONSUMER DURABLES
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1 AN EMPIRICAL STUDY ON RURAL CONSUMERS PERCEPTION TOWARDS CONSUMER DURABLES RAMANATH H R Associate Professor, Institute of Management, Christ University, Bangalore horizon @yahoo.com Dr. DINAKAR G Director-MBA Bangalore Institute of Management Studies, Bangalore dinakargrao@rediffmail.com Abstract The world is changing at a rapid speed. India is not an exception to this. In India nearly seventy percent of the population lives in villages 1. It is assumed that economic reforms and green revolution have brought out several changes in the lives of village population. Purchasing power of rural people has substantially increased over the years. The Indian consumer durables industry has witnessed a considerable change in the past couple of years. 2 Rural people started using large quantities of industrial and durable products. Though gap in the social, economical and cultural systems have changed over a period of time, still there is a wide difference between the rural consumers and urban consumers. The present study focuses on how rural consumers think, feel and select different alternative products. The study also aims at knowing the influence of limited consumer knowledge or information processing in their decision making. The focal point of the study is to know the impact of rural consumer interest and priorities in the process of buying. The study of rural consumers helps marketing companies to improve their strategies to reach them, serve them and expand their market share. Key Words: Consumer durables, Disposable income, Rural Consumers, Buying behaviour 100
2 INTRODUCTION Realising the potentiality of rural markets, most of the leading companies are trying to capitalise this opportunity. Greatest challenge to these companies is the social, economical, cultural and psychological set of rural markets. Liberalisation has brought about dynamism in Indian economy. This change impacted the standard of living of local people and in small rural societies. Because of the liberalisation, Indian economy witnessed drastic transformation from agriculture to industry. With the increase in purchasing power of consumers, consumer durable sector is growing at a faster rate. Consumer s sensibility and information exploration have disturbed the market enormously. No doubt the consumer able durable products have made their impact on rural consumers. Manufactures and marketers are finding it difficult to market their product in rural markets because many rural people earn low income, have low literacy, have low level of brand awareness, have different communication system and poor transportation facilities. Therefore, as though we talk about the increase in purchasing power of rural consumers, rural infrastructure is still a challenge to create better platform in the rural market for consumer durables. Due to the potentiality of rural market and its complexities, the study of rural market has become debatable topic in today s context. General Idea about Durables Consumer durables are the products that do not have to be purchased more frequently. These products are made to last for an extended peiod of time. Indian durable makret can be clasified into three categories as shown in the following table. Table 1: Categoreis of Indian Consumer Durables Consumer Durables White Gods Brown Goods Consumer Electronics Air Conditioners Microwave Ovens Televisions Refregitors Cooking Range Audio and Vedio Systems Electronic Acessories Washing Chimynies Machines Sweing Machies Mixers Personal Computers Watches and Grienders Mobile Clocks Phones Cleaning Electronic Digital Equipments Fans Cameras Other Domesitc Irons DVDs Appliances OBJECTIVES OF THE STUDY Following are the main objectives of the study 1. To know the popular durable products in rural market 2. To understand the level of awareness about the durables 3. To ascertain factors influencing purchasing decision 4. To understand priorities and preferences of rural consumers 5. To analyse the expectations of rural consumers about the durables METHODOLOGY The study is based on primary data. The data was collected with the help of structured schedule. To study the 101
3 perception of rural consumers, 120 sample consumers were selected from a place called Bidare Gudi village of Tiptur Taluk, Tumkur District in Karnataka State. The sample consists of housewives and traders. A GENERAL SCENARIO OF RURAL MARKETING IN INDIA Marketing is the process of identifying and anticipating the needs of consumers to focus company s resources to satisfy them. An understanding of motives and perceptions of consumers will benefit companies to develop strategies to serve its customers more effectively. Reader should be careful enough in differentiating rural marketing from agricultural marketing. Green revolution transformed many poor villages into prospective business centers. As a result of Green Revolution, agriculturists started accepting modern farming methods and aspired for new life style. Many agricultural families realised the value of education and hence started sending their children to cities and towns. Well groomed and educated children of these agricultural families started earning and sending money to their parents. This also led to the additional purchasing power of rural agricultural families. Tough most of the things changed in rural areas, the basic infrastructure facilities like transport, electricity, education and the like are still in infant stage. Deciding factor is not just the purchasing power of consumers, it is the infrastructure and product match that matters a lot in rural market. Frequency of income, nature of job, aspiration in life, and possible uncertainty in future income are also deciding factors in rural market. RURAL CONSUMERS IN INDIA There are many fundamental differences between urban and rural consumers. Rural consumers usually buy inexpensive products. In most of the cases male makes purchase decision, as women have little access to market. They will have little or no awareness about the various brands available for selection. The degree of brand loyalty varies depending upon the product category. It is also realised by the marketer that if a rural customer is loyal for one brand, it is very difficult to change it. Community decision making is quite common in rural areas. Major source of income comes from agricultural activates. Therefore quantum of agriculture income is a major decider in rural areas. Low literacy level still continues in many rural villages. In many cases, buying decision of a rural consumer is influenced by external factors like friends, relatives, monsoon, and so on. All said and done, rural areas are economically less developed and less exposed to marketing efforts. Rural consumers give importance to functionality than any other factors. Rural consumers are low adopters of innovation. Therefore, the slogan required for the rural market is Go rural and be rural. RESULTS AND DISCUSSION The study is divided into five parts that tries to answer which durable product is more common in rural market, whether they have awareness about the various brands available, which factor influences the most in buying process, what are their priorities in life and about the product, what do they expect from companies in regarding durables. The analysis is based 102
4 on the data randomly collected from hundred respondents. Selected ten durable items are taken for analysis. These products are Mixer, TV, Mobile phones, Fans, Sewing Machine, Washing Machine, Digital Camera, Iron, and Vacuum Cleaner. 1. Popular durable products in rural market When asked about the product they have, most of them said they have mobile phones, TVs and Fans. The details of observation regarding this aspect is displayed in Table 2 Table 2: Popular Durable products in rural market Number Washing of Respondents Mixer TV Mobile Phones Fans Sewing Machine Machine Digital Camera Iron Vacuum Cleaner % 42 No Yes Yes Yes No No No Yes No No No Yes No No No No No No No No No No No No No No No No No No Yes No No No No No Yes Yes Yes Yes No No No Yes No No No No Yes Yes No No No No It is evident from Table 2 that 35 percent of the respondents said that they have TV, Mobile Phone, Fans and Iron with them. Approximately 33 percent of the respondents said that they have Mobile phones only. Around 14 percent of the respondents said that they have none of the products mentioned in the study. Roughly about 8 percent of the respondents said they have electronic fans. Roughly around 7 percent of the respondents said they have mixer, TV, Mobile phones, and Iron. Approximately about 3 percent of the respondents said they have fans and Electronic fans with them. 2. Awareness about the durables The following set of options was place before the respondents to test whether they will have information prior to buy any durable product. Only negligible percentage of respondents said they will evaluate the alternatives and make their buying decisions. The details of observation regarding this aspect is displayed in Table 3 Table 3: Awareness about the durables Approach of respondents decision I prefer to choose durable from the choices available I will always seek advice from shop owner I will seek advice from my children My wards will buy products for me I make decisions in consultation with family members Number of Respondents % Total
5 It is evident from Table 3 that 35 percent of the respondents said their children will buy products for them. About 25 percent of the respondents said that they go by the advice of the shop owner. Nearly 17 of the respondents said that they seek advice from their children. About 18 percent of the respondents said they consult their family members in making purchase decision about durables. Only 5 percent of the respondents said they will evaluate the available alternatives before they buy any durable products. 3. Factors influencing purchasing decision When asked about the factors that influence them in making a buying decision, majority of them said functionality of a product plays a significant role in their decision making process. The details of observation regarding this aspect is displayed in Table 4 Table 4: Factors Influencing Purchasing Decision Number of Factors Respondents % Quality Functionality Affordability Total It is evident from Table 4 that nearly 54 percent of the respondents said functionality of a product will play a major role in their decision making process. About 31 percent of the respondents said they consider affordability as most influencing factor while buying durables. Remaining 15 percent of the respondents said that they consider quality while buying durable products. 4. Priorities and preferences of rural consumers When asked about the priorities they place while making decisions on buying durables, most of them said their priority is day-to-day maintenance. The details of observation regarding this aspect is displayed in Table 5 Table 5: Priorities and preferences of rural consumers Number of Factors Respondents % Day- to-day maintenance Social Ceremony Savings Comfort Total It is evident from Table 5 that nearly 77 percent of the respondents said that they prefer using their income for maintaining their daily living. About 10 percent of the respondents said they also give priority for social ceremonies. Roughly about 8 percent of the respondents said that they use part of their earnings to save for their future. The remaining 5 percent of the respondents said they pay equal importance for comfort in life. 5. Expectations of rural consumers about the durables When asked about the expectations relating to durable products, majority of the respondents said that it should have all the four qualities in it. The details of observation regarding this aspect is displayed in Table 6 104
6 Table 6: Expectations of rural consumers about the durables Number of Respondents Product Affordability Product Suitability Product Durability Product Efficiency % 112 Yes Yes Yes Yes Yes Yes Yes - Yes Yes - Yes It is evident from Table 6 that nearly 93 percent of the respondents said that they prefer to buy a durable product with all the four qualities mentioned in the study. Very negligible percent said product efficiency, product suitability and affordability are solely important. CONCLUSION Balanced economic growth has been the dream of our country. It is also known that one size fits for all principle will not work in this direction. Urban and rural areas co exists in our country. These to have different characteristic features and commonalities are hard to find. The following observations were made during the study. 1. Very negligible percentage (5%) of rural population has awareness about the durables and its choices available to them. 2. Nearly 35 percent of respondents said they got their durable products from their children. This clearly shows that their purchase is supported by their family members earning outside. 3. In the course of discussion, with the respondents, it was revealed that their priority is the maintenance of family and daily life. Purchasing of these durables is nowhere in their portfolio. 4. Some of the respondents said they are more comfortable with the current lifestyle because they believe in handwork and not comforts. 5. Most of the respondents said they give more importance to functionality and not features of a product. They are least bothered about appearance, or brand of the product. 6. Rural consumers prefer to buy products which are affordable and suited for rural conditions. 7. In the course of discussion, some of the respondents said it is not the buying which matters, but the maintenance of these products that matters a lot to them. According to them quality of power is a serious concern. The Sophistication should match the rural condition, they responded. 8. There were also discussions in regarding the need for products with a different features altogether to meet rural context. 9. An overall finding from the study is that the rural consumers are self contended and, therefore, they have limited aspiration and demand in their life. 10. Increase in literacy, provision of proper infrastructure, designing of a product to fit into the rural context, increasing the aspirations of rural consumers, 105
7 connecting rural space with the urban texture are the need of an hour. 11. Increasing the earning power to withstand seasonal fluctuation in income would certainly help rural consumers to reap the benefits of various products available in the market. REFERENCES 1. Mithileshwar Jha, Rural Marketing: Some Conceptual Issues Economic and Political Weekly, Vol. 23, No. 9, Feb 22, Dr. Kartik Dave, Problems and Prospects for Marketing of Rural Products: An Empirical Study of Tribal Region of Rajasthan (India), Oxford Business and Economics Conference Programme, Dr. Venkat Ram Raj Thumiki and Dr.Mohhammed Abdul Azeem, Marketing of FMCG to Rural Consumers in Andhra Pradesh, Asia Pacific Institute of Management, New Delhi, Volume 2, July December Md. Abbas Ali, Venkat Ram Raj Thumiki2 and Naseer Khan, Factors Influencing Purchase of FMCG by Rural Consumers in South India: An Empirical Study, International Journal of Business Research and Development, ISSN Vol. 1 No. 1, pp , Syeda Quratulain Kazmi, Consumer Perception and Buying Decisions(The Pasta Study), International Journal of Advancements in Research & Technology, Volume 1, Issue 6, November Nancy Gulati, Strategies of Rural Marketing in India, International Journal of Management and Social Sciences Research (IJMSSR), Volume 2, No. 10, October Syeda Shazia Bukhari, Companies Move towards Rural Marketing - A Special Emphasis on Rural Markets of Jammu Region, International Center for Business Research, Issue: Volume 2 Apr K. Manimozhian, India- Innovation in Rural Marketing, Indian Journal of Research, Volume 2, Issue 8, Aug Dr. Hawa Singh, Consumer Perception toward s the Quality Marks of Products, International Journal of Management and Social Sciences Research, Volume 2, No. 9, September Sulekha An Investigation of Consumer Buying Behavior for FMCG: An Empirical Study of Rural Haryana, Global Journal of Management and Business Research Marketing, Volume 13 Issue 3 Version 1.0 Year K. Marichami, A study on consumer behaviour of women with special reference to durable goods in Madurai city Tactful Management Research Journal, Vol. 2, Issue. 2, Nov Poonam Kumari, A Case Study on: The Critical Inhibitions in Successful Rural Marketing in India International Journal of Emerging Research in Management &Technology, Volume 3, Issue 2, February Kakati, Rural Market Dynamics and Product Penetration, IUP Journal of Marketing Management, Vol. 13, No. 1, February Vikram Shende, Analysis of Research in Consumer Behavior of Automobile Passenger Car Customer, 106
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