Factors influencing Rural Consumer purchase decision
Factors Influencing Rural Consumer Purchase Decision
Understanding the factors that influence rural consumer purchase decisions is critical for effective rural marketing. These factors include socio-cultural influences, population demographics, occupation patterns, expenditure habits, and infrastructure facilities.
Socio-Cultural Factors
1. Culture: Culture comprises religion, language, education, and upbringing, shaping consumption habits and buying behavior. Marketers must survey the socio-cultural environment to gather accurate information on rural people's lifestyles and consumption patterns. Cultural shifts can present both opportunities and threats, and understanding cultural dynamics is essential for addressing rural consumers' needs and feelings.
2. Social Class: Social class, determined by income, occupation, and literacy levels, influences consumption patterns and purchasing behavior. Each social class has distinct values that affect lifestyle and buying decisions. Marketers must understand these class values to tailor their marketing strategies effectively.
3. Social and Cultural Environment: Social practices, influenced by religion, caste, and linguistic groups, affect consumer preferences for product features, sizes, shapes, and colors. For example, Cadbury’s launched Chocobix, a chocolate-flavored biscuit, based on the understanding that rural mothers prefer biscuits over chocolates for their children.
4. Caste System: The caste system, with its hierarchical structure, influences social behavior and preferences. Marketers must be sensitive to caste dynamics when developing advertisements, brand communication, and promotion plans to ensure relevance and avoid offending any caste group.
Population
India's rural population constitutes a significant market segment, with more than 72% of the total population residing in rural areas. The table below highlights the growth of rural and urban populations in India from 1981 to 2001:
| Year | Rural Population (in crore) | Urban Population (in crore) | Total Population (in crore) | Increase over Previous Decade (Rural) | Increase over Previous Decade (Urban) |
|---|---|---|---|---|---|
| 1981 | 50.20 | 15.62 | 65.28 | +10.01 | +8.56 |
| 1991 | 60.21 | 24.18 | 84.39 | +5.79 | +8.42 |
| 2001 | 66.0 | 32.6 | 98.6 |
The table illustrates the substantial size and growth of India's rural population, making it a vital market for marketers.
Occupation
Occupation patterns in rural areas impact income generation and expenditure behavior. The table below shows the proportion of rural population engaged in various occupations:
| Occupation | Proportion of Rural Population (%) |
|---|---|
| Agriculture | 50 |
| Agriculture Labor | 27 |
| Business | 10 |
| Non-Agricultural Labor | 9 |
| Salary Earners | 2 |
| Not Gainfully Employed | 2 |
| Total | 100 |
A significant portion of the rural population relies on agriculture and related activities, making their income dependent on agricultural success.
Literacy Level
The literacy level in rural areas influences marketing strategies, especially in communication. Higher literacy rates facilitate easier market penetration. The table below shows the literacy rates in rural and urban areas from 1971 to 2001:
Year
Male Rural (%)
Male Urban (%)
Female Rural (%)
Female Urban (%)
Total Rural (%)
Total Urban (%)
1971
34
61
13
42
24
52
1981
41
66
18
48
30
57
1991
58
81
31
64
45
73
2001
57.9
81.1
30.6
64
44.7
73
Although literacy rates have improved, only about 45% of rural people are literate, posing challenges for marketers.
Land Distribution & Use
Rural markets are extensive, covering vast areas, making it challenging to divide and target. The table below shows the distribution of villages in India based on population size:
| Population | Number of Villages | Percentage of Total (%) |
|---|---|---|
| Less than 200 | 114,207 | 17.29 |
| 200-499 | 155,123 | 24.3 |
| 500-999 | 159,400 | 25.0 |
| 1000-1999 | 125,758 | 19.7 |
| 2000-4999 | 69,135 | 10.8 |
| 5000-9999 | 11,618 | 1.80 |
| 10,000 and above | 3,061 | 0.5 |
| Total | 638,365 | 100.0 |
The widespread and varying sizes of villages make rural marketing a complex task.
Understanding these factors is essential for marketers to develop strategies that cater to the unique characteristics and needs of rural consumers. This approach ensures that products and marketing efforts resonate with rural buyers, leading to successful market penetration and growth.