The Rural Consumer Characteristics

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Rural Consumer Characteristics

Understanding the rural consumer is essential for effective marketing strategies in rural areas. Here, we break down the characteristics and categories of rural consumers:

Consumer Groups

  • The Affluent Group
    • Description: This group comprises cash-rich farmers, such as wheat farmers in Punjab and rice merchants in Andhra Pradesh.
    • Characteristics: Despite their affluence, their numbers are too few to form a substantial demand base for large-scale marketing efforts.
  • The Middle Class
    • Description: This is one of the largest and fastest-growing segments for manufactured goods. Farmers cultivating sugar cane in UP and Karnataka fall into this category.
    • Characteristics: They have significant purchasing power and represent a crucial target for marketers.
  • The Poor
    • Description: This segment has low purchasing power but is large in number. Farmers in Bihar and Orissa typically belong to this group.
    • Characteristics: They benefit from various government grants and schemes, which can potentially elevate them to the middle class over time.

Characteristics of Rural Consumers

  • Nature
    • Social Status: Rural regions generally have lower income levels and literacy rates. Traditional values and superstitious beliefs often hinder progress.
  • Occupation
    • Diversity: Principal occupations include farming, trading, crafts, plumbing, electrical work, primary health care, and teaching.
    • Agricultural Dominance: Agriculture and related activities are the main occupations for the majority, with land being a major income source for about 77% of the rural population.
  • Market Size
    • Vast and Scattered: The rural market covers the majority of the Indian population (about 74%), making it a significant area of opportunity.
  • Response to Price
    • Price Sensitivity: Rural consumers are highly price-sensitive and often opt for low-cost, medium-quality products.
    • Attraction to Discounts: They are easily attracted by price discounts, rebates, and credit facilities.
    • Payment Preferences: There is a strong preference for credit and installment plans.
  • Media Habits
    • Entertainment Preferences: Popular forms of entertainment include traditional performances like ‘Tamasha’ and ‘Nautanki,’ along with television, radio, and video films.
  • Response to Products
    • Utility Over Prestige: Rural buyers prioritize product utility over status and prestige but appreciate novel products with unique features.
    • Preference for Simple Products: They favor simple, long-lasting products that offer immediate benefits.
    • Cultural Sensitivity: Products must align with their religious beliefs, social norms, and traditional occupations.
    • Focus on Family Use: There is a preference for family-use products rather than individual-use items.
    • Service Expectations: They have minimal concern for after-sales services, guarantees, warranties, and home delivery. Branding and packaging are less influential compared to urban consumers.
  • Reference Groups
    • Influencers: Key influencers in rural areas include primary health workers, doctors, teachers, panchayat members, village traders, and grocers (commonly called ‘Baniya’ or ‘Mahajan’).
    • Marketing Impact: Marketers must be aware of these influencers as they play a significant role in shaping rural consumers' purchasing decisions.

Additional Insights

  • Technological Influence: The increasing penetration of technology and media in rural areas is gradually changing consumer behavior and preferences.
  • Government Initiatives: Various government programs aimed at improving rural infrastructure, education, and economic opportunities are slowly elevating the living standards and purchasing power of rural consumers.
  • E-commerce Growth: The rise of e-commerce platforms is also opening new avenues for rural consumers to access a wider range of products and services.