Download Consumer Behaviour

Consumer
Behaviour
Learning Objectives
Comprehend rural consumer’s buying behaviour
Know the factors that affect rural consumer’s
purchase decision
Examine the rural consumer’s lifestyle
Develop a generic profile of rural consumer
Know the rural consumer’s shopping habits
Analyze the rural consumer’s increasing trend
towards consumption
Consumer behaviour
Is a dynamic interaction of affection and
cognition, behaviour and the environment by which
human beings conduct exchanges during their lives.
According to Schiffman and Kanuck “ it’s the
behaviour that consumers display in searching for,
purchasing, using, evaluating and disposing of products
and services that they expect will satisfy their needs.
It is a study of how individuals make
decisions to spend their available resources like time,
money, effort – on consumption related items
Who is the rural
consumer?
Demographics
Largely working as farmers or agricultural workers
Have limited education, may well be illiterate

This leads to linear and simple thinking, abstract
logic tends to go over their heads
Either live in joint (extended) families or have only
recently formed nuclear families
Need and Product Hierarchy
5.
Self actuali
zation needs
4.
Esteem needs
3.
Social needs
2.
productivity needs
1.
Basic needs
Products and services are basic for living functions.
Agricultural implements, pumps, tube wells, bullock cart,
fertilizers, house, marriage
Products, which improve productivity and minimize
disturbances: tractors, harvesters, cycles
Products and services that give leisure and pleasure
Entertainments, kitchen appliances
Products and services which enhance the standard of
life and boost: refrigerators, coolers
Products and services which help realize life’s dreams
(awards)
Buyer Behaviour Models
Consumer
4Ps
Marketing
Environment
Buyer
Buyer
Characteristics Decision Process
Buyer
Decision
Marketing Stimuli
4 Ps
Product
Price
Place
Promotion
Other Stimuli
Marketing
Environment
Economic
Technological
Political
Cultural
Buyer characteristics
Cultural
Social - Reference Groups, Family, Roles and Status
Personal - Family Life Cycle, Occupation and Economic
circumstances, Lifestyle, Personality and self - concept
Psychological - Motivation, Perception, Learning, Beliefs and
Attitudes
Cultural
Personal
Age
Life style
Social
•Reference Groups,
•Family,
•Roles
•and Status
Psychological
•
•
•
•
•
Motivation,
Perception,
Learning,
Beliefs and
Attitudes
Shopping behaviour
Buy small quantities - more frequently
 Unit price is critical, particularly as many of them
are daily-wage earners
Look for ‘acceptable performance’/ functional
benefits / paisa vasool paradigm (good in relation to
current product) at a reasonable price
“Transcreation” of packaging critical
Flash price of pack wherever feasible
In their own way, good at arriving at a cost per dose
(or cost per month) equation: even if not expressed
mathematically
 More sensitive and alert to ‘value’
Make high-volume purchases at weekly village
markets
 Haats
Build personal acquaintance with neighborhood
retailer
 Often trust the retailer who does influence brand
choice
 Frequently get ‘credit’ from the retailer
Word-of-mouth, very important and credible
Mass driven
 Buy products that are perceived to be popular:
the ‘bandwagon’ effect
Try to minimise their risk: tend to be stronger
creatures of habit
High awareness of range of consumer brands
Still influenced by popular idols/role models such as
movie stars, famous sportsmen, etc
Profile of Rural Consumer
Traditional Outlook
Different Perception and its
influence from urban consumer
Less Exposure to Marketing Stimuli
Conscious for Value for Money
Realistic Aspirations
Different Concept of Quality
Attitude towards prestige products
Suspects hype and fear of being
cheated
Rural consumer’s buying behaviour
Rural consumer’s buying behaviour
Based on buyer involvement and brands
1.Complex buying behaviour
Buying behaviour is complex when products to be
bought are expensive and with different brands available
in market (like computers, automobiles)
2.Dissonance Reducing Behaviour
In case of products like furniture which are
expensive but with difference, the consumer is involved
because these are more social products. Their style,
appearance will be talked.
Rural consumer’s buying behaviour
3.Habitual buying behaviour
Products like salt and soaps are low cost. The consumer is
not really much bothered about which brand he buys. He
will ask for the product not the brand. There is a lack of
brand consciousness. But there are some exceptions
like cigarettes where brand preference is very strong.
4.Variety seeing
Consumer prefers to buy different items of same brand or
different brands to smell and taste the items. E.g. ice
creams, chocolates
Rural consumer’s buying behaviour
Based on amount of time spent
1. Planned Purchase Behaviour
The purchase is budgeted and scheduled in advance
2. Emergency Purchase Behaviour
The purchase is made in a hurry to avoid stock-out
situations
3. Impulse Purchase Behaviour
The purchase is spontaneously, by taking a decision on
the spot, without verifying the rationality of the purchase
Buying Roles
Initiator – one who suggests the idea of buying
Influencer – one whose views influence the
decision
Decider – one who decides to buy or not
Buyer –one who makes the actual purchase
User – one who consumes or uses the product
Eg: Purchasing of Motor cycle:
Usually in urban young man initiates, and decides with the influence
of friends and colleagues
In rural Son –initiator, friends, relatives –influencer, father-decider,
son, friends- buyer son and father- user
Buying behaviour patterns
Urban
Rural
High
Involvement
Low
Involvement
High
Involvement
Low
Involvement
High
brand
differentiation
Complex
buying
Variety
seeking
(Economy
watch)
Complex
buying
Variety
seeking
Low Brand
differentiation
Reducing
buying
behaviour
Habitual
buying
Reducing
buying
behaviour
Habitual
buying
behaviour
Cereals&
pulses
Medicines
Pressure
cooker
Foot wear
Pressure
cooker
Foot wear
Cereals and
pulses
Medicines
Lifestyle of Rural Consumer
Rural consumer is very religious
Rural consumers prefer to work hard
Strong family ties and respect for family values
Likes to play cards and hangs out at copal
Factors that Influence Rural Consumers
while Purchase of a Product
Socio-cultural factors
Group
Family
Role and status
Sociability
Economic Factors
Political factors
Consumer
Decision
Process
THE CONSUMER DECISION PROCESS
Problem
Opportunity
Recognition
•Consumers complete a step-by-step
process when making purchase
decisions
•
Search
•
Alternative
Evaluation
Purchase
Decision
Purchase
Act
Postpurchase
Evaluation
THE CONSUMER DECISION PROCESS
Problem
Opportunity
Recognition
•Consumer becomes aware of a
significant discrepancy between the
existing situation and the
desired situation
•Common Causes of Discrepancy:
•
•
•
•
•What is the marketer’s job?
THE CONSUMER DECISION PROCESS
•Consumer gathers information
Problem
related to their attainment of the
Opportunity
desired state of affairs
Recognition
•Identifies alternative means of
problem solution
Search
•
•Brands that a consumer
actually considers buying
before making a purchase
decision are known as the
evoked set
•Evoked set evolves constantly
THE CONSUMER DECISION PROCESS
Problem
Opportunity
Recognition
Search
Alternative
Evaluation
•Consumer evaluates the evoked set
•
•Outcome of the evaluation stage is the
choice of a brand or product (or possibly
a decision to renew the search)
•Evaluative criteria:
•Understanding and influencing
consumers evaluative criteria is important
in this stage
THE CONSUMER DECISION PROCESS
Problem
Opportunity
Recognition
•Selection of What and Where
•
Search
Alternative
Evaluation
Purchase
Decision
Purchase
Act
THE CONSUMER DECISION PROCESS
•After the purchase, consumers
Problem
are
either
satisfied
or
experience
Opportunity
post-purchase anxiety
Recognition
•Post-purchase anxiety that
results from an imbalance among
Search
an individual’s knowledge,
beliefs, and attitudes is called
cognitive dissonance
Alternative
•Marketers must try to reduce
Evaluation
this anxiety
Purchase
Decision
Purchase
Act
Postpurchase
Evaluation
Unchanged
characteristics of rural
consumers
Continued existence of an oppressive and rigid caste
system, particularly in rural areas
 The rural consumer normally hails from the lower
castes, and therefore any depiction of him/her on an
equal footing with the higher castes would be seen as
asp rational
High illiteracy levels: often incapable of reading or
pronouncing a brand name
 E.g. Lifebuoy is referred to as ‘the red soap’
Key considerations while
targeting rural
consumers?
Targeting rural consumers…
Highlight multiple uses from the same product
 Dettol liquid for cuts, gargle for bad throat, washing
clothes as a disinfectant , dandruff etc
 Jet mosquito coil for mosquito repellent and room
freshener
Advertise small packs with a low unit price
 Tiger biscuits tikki pack
 Cavin Kare - Chik shampoo
 Chota Pepsi 5 rupiya mein
Why pay more?
 Nirma Super “Jab vohi manghe damo vali quality kam
dam mein mile to koi vo kuye le”
A little (of the product) goes a long way
 Rin detergent bar claims that with just a little Rin, you
can get a whole lot of wash
Using price itself as an indicator of value has some
risks attached to it; if used indiscriminately, it can:
 Down-grade the perceived quality of the product
 Permanently position the product at that price point
making it difficult to effect price increases in the future
The rural consumer is sensitive about being
portrayed as poor
 Don’t do it!
 Play on their aspirations instead
Fantasy, Song & Dance, Idiom of the cinema
 Nirma detergent powder employs song and dance,
up-market models and a vibrant jingle
Use catch-phrases accompanied by matching
signature visuals
 Surf Ultra detergent powder used the hugely evocative
phrase - “Dhoondte reh jaoge” along with the
characteristic twirl of the finger
 Rin detergent bar used the phrase “Zara sa Rin” along
with the characteristic flick of the finger
Use opinion leaders
 If they are credible, they work
 Sunlight detergent powder employs a doctor to
endorse the brand
 Colgate dental cream endorsed by a doctor
 Sarpanch - Anti Leprosy
Leverage the rural consumer’s belief in folklore and
natural ingredients
 Ganga soap claims that it contains milk and is made
from the water of Ganga, a river revered as holy by the
majority of India’s Hindu population.
 Dabur Amla hair oil with “Anvla”, Lal Dant Manjan with
“lavng”
Depict characters and families that are aspirational
yet real
 avoid being too freaky or too Westernised i.e. jeans
are OK but torn ones may not be
Exploit the warmth of emotion among family
members
 VIP Alpha luggage - man wants to take back the wife
when he goes to town to work again
Consider leveraging the appeal of mass sports
 Lifebuoy soap has consistently used mass sports like
football
Understand and leverage your local culture, beliefs
and customs
 Fair and Lovely skin lightening lotion makes use of
people’s belief in palmist
 Bajaj scooters uses typical vignettes from Indian life to
establish an emotional bond with the consumer
Brand recognition signals
 Distinctive colors: use lively, bright colors
 For toothpaste, avoid using pack colors that have
negative connotations - like yellow which connotes dirty
teeth
Pack
 Pack is sometimes the only communication medium
(logo and visual pack properties)
 changes in packaging design and/or pack colours
while re-launching the brand
As the rural consumer tend to come to the shop
frequently, POS material should be
Durable: tinplates, plastic, sun-resistant inks
Functional and reusable: calendars, mirrors, stands
Space-efficient
Decorative
How to select rural
media…
Rural Communication
Planning
Framework for selection and evaluation of
relevant rural advertising options for a given
communication task
The framework
Outline media possibilities for various
marketing situations
Construct an evaluation system for various
rural options
Modify it for relevant state as per regional
variations
Outline execution pointers
Outline costs
Marketing Situations
Build penetration
 launch in newer poster
Test market
 Test acceptability of new product/mix
Pressure Test
 vary advertising weights to gauge response
Promotion
Maintenance
But
..budgets are limited.
Increase penetration
Van Based Advertising
Melas
Direct to Home
Folklore groups
Exhibitions/Created
events
High
Reach
Low
Reach
High Frequency
Low Frequency
Test marketing
High
Reach
Jeep based advertising
Wall Painting
Bus Stand
Bus Panels
Haats
Hoardings
Postal branding
Low
Reach
High Frequency
Low Frequency
Pressure Test
High
Reach
Low
Reach
Co-operative Notice
Board
Shop Front Painting
Tin Plating – House
Dealer Boards
Village Boards
Well Tiles
Calendars/Labels
High Frequency
Low Frequency
Maintenance
High
Reach
Tin Plating –
Trees/Shops
Leaflets
Posters
Banners
Streamers/Danglers
Low
Reach
High Frequency
Low Frequency
Rural media usage grid
High
Reach
Low
Reach
Jeep based advertising
Wall Painting
Bus Stand
Bus Panels
Haats
Hoardings
Postal branding
Van Based Advertising
Melas
Direct to Home
Folklore groups
Exhibitions/Created events
Co-operative Notice Board
Shop Front Painting
Tin Plating – House
Dealer Boards
Village Boards
Well Tiles
Calendars/Lables
Tin Plating – Trees/Shops
Leaflets
Posters
Banners
Streamers/Danglers
High Frequency
Low Frequency
Thank you!