Research Paper On Rural Consumer Behaviour

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Understanding Rural Buying Behaviour: A Study with Special Reference to FMCG Products

Gyan Prakash 1*, Pramod Pathak 2

Affiliations

  • Junior Research Fellow, Department of Management Studies, Indian School of Mines, Dhanbad, Jharkhand - 826 004, India
  • Professor, Department of Management Studies, Indian School of Mines, Dhanbad Jharkhand - 826 004, India


DOI: 10.17010/ijom/2014/v44/i8/80132

Abstract


Rural India has become a massive consumer goods market with more than six hundred thousand villages and more than 70% of the population living in villages. In these rural markets, FMCG products have emerged as a major product category. Various researchers have found that rural and urban Indian consumers have different needs and wants. These differences have revealed a huge marketing potential for MNCs and other foreign investors, who try to explore rural regions for marketing opportunities. Thus, understanding rural consumer behaviour is very important for the marketers. This paper focused on the important factors that affect the rural purchase behaviour of FMCG products. The findings of this study indicate that price, brand name, quality, availability, packaging, and so forth were the important factors influencing the rural consumers' purchase decisions. The study also focused on the important aspects such as the effective modes of communication, reasons for switching brands, billing patterns, and satisfaction level among the rural consumers.


Keywords

Rural Consumers, FMCG Products, Consumer Behaviour

Paper Submission Date: February 5, 2014; Paper sent back for Revision: March 18, 2014 ; Paper Acceptance Date : April 4 , 2014.


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DOI: http://dx.doi.org/10.17010/ijom%2F2014%2Fv44%2Fi8%2F80132

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This study aims to establish whether the residential background of consumers has a varying influence on their buying decisions. A survey of 400 urban and rural respondents was carried out, of which 200 were rural and 200 urban. The data were analyzed by applying counts, percentages, means, and Z-test. It is found that there is no significant difference of price and style consciousness for purchase of mobile phone between rural and urban consumers but there is a significant difference of quality, functions and brand consciousness of consumers for purchase of mobile phone between rural and urban consumers. Study indicates that rural consumers are less quality, functions and brand conscious compared to urban consumers. The study indicates that rural consumer mostly use friends, TV. and mobile phone retailer as the source of information, the purchase decision is taken by self-decision with the help of family, friends and most of rural consumers are satisfied in Sagar District, Madhya Pradesh.

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