Understanding The Rural Consumer
Tuesday, March 2nd, 2010It is uneconomical to access a large number of small villages with a very low population density spread over a large geographic area. Social norms, traditions, castes, and social customs have greater influence on the consumer behavior in rural areas than in urban areas. Factors such as limited physical access, low density of shops, limited storage facilities, need for a large number of intermediaries in the distribution channel to reach the end customers, and low capacity of intermediaries to invest in business make the tasks of reaching rural consumers very complex
Characteristics of the rural consumer
-Rural areas generally have less pollution, less crime, and less stress than urban areas.
-People in rural areas have poor job opportunities than urban.
- Rural life is generally less exciting than urban life.
-The rural consumer is very conscious about getting value for money.
-He understands symbols and colours better, and looks for endorsement by local leaders or icons.
-He doesn’t like to pay extra for frills he cannot use.
-He has his daily routine, and there is no sense of urgency in his lifestyle.
-He has a very high involvement in any product purchased.
-Divisions based on caste, community and other hierarchical factors exist in rural areas.
-The rural market of India is a geographically scattered market.
-Rural consumers continue to be marked by low purchasing power.
-Rural market is culturally a diverse and Heterogeneous
-There is also a great deal of difference between different states in extent of development.
-The rural consumers are marked by a conservative and tradition-bound lifestyle.
-The lifestyle of a sizeable segment of rural is currently going through the process of change.
Characteristics of Rural Markets The households belonging to the middle-income and above categories that constitute the bulk of the consuming class had been increasingly steadily over the years. The urban consumers have to incur a higher cost of living while the rural population has higher levels of disposable income for the same levels of income. While incomes as well as expenditure in rural areas have increased, their spending on non- food items has also increased. However, the rural income is seasonal in nature and to a great extent influenced by non-controllable factors such as draughts and floods, crop failures due to pests, and similar factors. For the working class in rural areas, wages are distributed daily, weekly, or fortnightly and come in small installments.
Social hierarchy, traditions, social norms and customs play significant roles in determining individual and collective behavior in rural India. The Caste system determines the social status of the individuals and families, and this has important implications for individual and social behavior. However, within the caste system itself, there are sub-castes, religious groups and sub-groups, making the social hierarchy more complex. While in the urban areas, household settlements are often referred to as low-income group (LIG), middle-income group (MIG), or high-income groups (HIG), in many parts of rural India, geographic demarcation of household settlements is based on caste affiliations. In some rural areas, even the common facilities like well water or grazing land is demarcated based on caste. People belonging to some castes are prohibited from accessing common facilities demarcated for other caste groups. Any violation of these norms can lead to social tensions. Unlike in urban areas, these behavioral norms are strictly implemented in rural areas.
Consumer Behavior in Rural Areas Purchase-decision processes and preferences also show certain characteristics that implication for marketers. Exhibitions and road shows act as some of the key triggers for information-search behavior. Opinion leaders and people who are perceived to be knowledgeable play an important role as information providers and advisors. Word of mouth has more significance in purchase decisions of rural consumers. Family members, relatives, and friends are consulted before making purchase decisions of higher-value products. Compared to the urban counterparts, rural consumers have different interpretations of colors, symbols, and social activities. Rural consumers show a preference for bold, primary colors; red color connotes happiness and auspiciousness, and green color prosperity. Ownership of a large tractor, large house, telephone and other higher-value consumer durables, and education of children in cities are considered as status symbols. However, as the exposure to mass media and information technology is increasing, rural consumers are becoming more informed about products and services, and their dependence on traditional reference groups is gradually waning. Rural consumers also tend to be more loyal as brand switching has greater perceived risk.
Marketing Infrastructure in Rural Areas It is uneconomical to access a large number of small villages with a very low population density spread over a large geographic area. Factors such as limited physical access, low density of shops, limited storage facilities, need for a large number of intermediaries in the distribution channel to reach the end customers, and low capacity of intermediaries to invest in business make the tasks of reaching rural consumers very complex.
The importance of alternative means of reaching rural consumers through periodic village markets (or haats), agricultural markets (mandis), and rural fairs (melas).Haats are a “public gathering of buyers and sellers of commodities, meeting at an appointed or customary location at regular intervals. Most of these periodic markets are held once a week. Haats function as physical markets for selling agricultural surplus as well as retail points for buying daily-use items and supplies for farming activities. Mandis or agricultural markets are set up by the state governments for facilitating exchange of agricultural produce and for procurement of food grains by the government agencies. Companies use mandis to promote their brands by setting up “stalls” for carrying out sales promotion activities and for gathering market-research information.
Melas or fairs are an integral part of human life. There are different types of fairs: commodity fairs, cattle fairs, and fairs in connection with religious festivals. Most of the fairs are held in connection with religious festivals and, have limited marketing value. But the remaining fairs are used by companies to promote their products and brands.
How to communicate with the rural?
The first step in the development of any communication package is the in-depth study of the mindset of consumers of each region for each product category.
A rural consumer is not in a hurry and you can take your time to communicate a message.
- The importance of simple analogies that can help in understanding the brand promise better.
-The communication must address the specific problems, needs, aspirations and hopes of rural folks in each region.
- The total understanding of the main message was only 30-60 per cent among the rural audience.
- Rural folks do not understand clever, gimmicky, quick, suggestive and hi-tech films.
-Use of unrelated symbols, characters and icons confuse and distance them.