This document discusses consumer behavior in rural Indian markets. It begins by defining consumer behavior and noting that it blends elements from psychology, sociology, anthropology, and economics to understand decision making. It then discusses some myths about rural consumers, including that they don't buy brands or seek value. The document also notes that rural markets account for a large portion of India's population and economy. It aims to develop a framework to study rural consumer behavior and provide recommendations for marketing to rural consumers. Key aspects of changing rural consumer behavior discussed include a better quality of life, brand awareness, a desire for new products, less desire to save, influence through demonstration, the role of retailers, and pricing and distribution strategies.

1. Consumer Behaviour In Rural
Market
(An Indian Scenario)
SUBMITTED BY :-
VIVEK KUMAR SINGH
&
MOHIT TRIPATHI
MBA(BE) III SEM
SESSION 2011-2013
INSTITUTE OF BUSINESS MANAGEMENT,
CSJM UNIVERSITY, KANPUR

2. Consumer Behavior In Rural Market
 Consumer behaviour is the study of individuals, groups, or
organizations and the processes they use to select, secure, and dispose
of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society.
 It blends elements from
 Psychology,
 Sociology
 Social anthropology and
 Economics
 It attempts to understand the decision-making processes of
buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral variables in
an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as
family, friends, reference groups, and society in general.

3. Several Myth About The Rural Sector
 Cast play a key role in behavior of community. In rural
India, the upper cast and lower cast differences still
continue and are considered an important facet of everyday
life.
 There is a clear demarcation in the villages for house
making, two areas , including natural resources such as
drinking water and grazing land for cattle.
 In urban limited physical space and pressure on limited
available natural resources , interaction based on economic
status and vocations rather than on basis of caste leads to
an absence of such division

4. Several Myth About The Rural Sector
 The belief that rural people do not buy brands.
 The belief that the rural consumer buy cheap products. In
reality they seek value for money.
 The belief that the rural market is homogenous mass. In
fact it is fascinatingly heterogeneous.
 An urban individual is free to take independent purchase
decision. In a village, because of strong social structure,
including caste consideration and low literacy level,
community decision making is quite common.

5. Asian Journal of Technology & Management Research
[ISSN: 2249 –0892] Vol. 01 – Issue: 01 (Jan - Jun 2011)
 The rural market account for market worth of 27$ billion.
 About 285 millions live in urban India whereas 792 million
resides in rural areas.
 72% of India’s population resides in its 600000 villages.
 Many companies like Colgate-Palmolive, HCL & Godrej etc.
have already furrows into rural households but still capturing the
market is a different dream

6.  For quite sometime now, the life of the rural India has been the subject
of animated discussions in the corporate suites, with the urban markets
getting saturated for several categories of consumer goods and with
rising rural income. For example,
 Tata chemicals ran a chain called Tata Kisan Kendra which
offered services ranging from agriculture input to financing to advisory
services.
 Hindustan Levers is offering deals to farmers to cover operation
from the pre harvest to post harvest stage.
 Mahindra & Mahindra limited, India’s largest farm equipment
company & its subsidiary Mahindra Shubhlabh services has
operated in eleven states with 7 lacs strong Mahindra tractor customer
base& 400+ dealers provide a complete range of products and services
to improve farm productivity and establish market linkages to the
commodity market chain.

7. The objective of this article is therefore threefold.
 The first objective is to develop a framework used to study consumer
behavior in rural market.
 The second objective is to apply this frame work to examine and
understand consumer behavior in rural areas.
 The last objective is to prefer generalization and recommendation to
those wishing to market their productservices in the rural market.
CONSUMER BEHAVIOR IN RURAL MARKETING-A NEW PARADIGM
Dr.Satya Prakash Srivastava1
Manish Kumar2

9. Changing Behaviour Of Rural Consumer
 Better Quality Of Life
 Brand Awareness
 Desire for New Products & Fashion Consciousness
 No Desire To Save
 Influence Through Demonstration
 Role Of The Retailers
 Pricing Strategies
 Distribution Strategies

10. Change Of Consumer Behaviour At Glance
1. Radio Source Of Information
2. Source If Information
3. Role Of Retailers
4. Role Of Friends
5. Role of Advertisement
6. Brand Loyalty
7. Income Group
8. Role of Price
9. Quality Product
10. Place of Buying

11. THANK YOU