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The Road into Rural India
Understanding rural marketing
Rural Marketing
•
Understanding the Rural environment - Session 1
•
Rural v/s urban marketing- Session 2
•
Rural marketing v/s marketing of rural products- Session 2
•
Problems/ Challenges in rural marketing- Session 3
•
Rural marketing strategy- Session 4
•
Analysis and presentation of case on issues in rural marketing (group
exercise)- Session 5
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Genesis of Rural India
• India Pre Independence was largely agrarian.
• Pandit Jawaharlal Nehru’s vision of Industrialized India led to creation of
the Public Sector corporations.
• High dependence on agriculture meant that wealth in Rural India was a
subset of crop cycles.
• Poor irrigation facilities leading to over dependence on monsoon.
• Absence of a organized banking system led to rise of Money lenders and
dalals who ensured that the poor stayed poor.
• Agriculture practices were backward and medieval with no access to
knowhow on the same.
• Poor productivity led to poor yields.
• Illiteracy levels were high with no access to schools and colleges.
• Tightly regulated land reforms.
• Division of land among led to smaller holding.
• Poor infrastructure such as roads, electricity.
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ENVIRONMENTAL SCAN
Market Segmentation
Large
Farmers
>20 acres
2%
Medium Farmers
5-20 acres
18%
Marginal & Small Farmers
< 5 acres
80%
Total Land Holding-116 M Ha
Source: CMIE Report
Tractor Penetration
38%
18%
1%
Source: NSSO 05-06
4
ENVIRONMENTAL SCAN
Bottom end of the Pyramid
5
Rural Market Has Arrived
 742 million people
 Rural is bigger than urban
 FMCG's
 Durables
53%
59%
Source: NCAER,2002
 Estimated annual size of the rural market




FMCG
Durables
Agri-inputs (incl. tractors)
2 / 4 wheelers
 Total
Rs
Rs
Rs
Rs
65,000 Crore
5,000 Crore
45,000 Crore
8,000 Crore
Rs 1,23,000 Crore
Source: Francis Kanoi, 20026
Rural Market Has Arrived
 Some impressive facts about the rural
sector.
 In 2001-02, LIC sold 55 % of its policies in
rural India.
 Of two million BSNL mobile connections, 50%
in small towns/villages.
 Of the six lakh villages, 5.22 lakh have a
Village Public Telephone (VPT)
7
Rural Market Has Arrived
 41 million Kisan Credit Cards issued (against 22
million credit-plus-debit cards in urban) with
cumulative credit of Rs 977 billion resulting in
tremendous liquidity.
 Of 20 million Rediffmail signups, 60 % are from
small towns. 50% transactions from these towns
on Rediff online shopping site
 42 million rural HHs availing banking services in
comparison to 27 million urban HHs.
 Investment in formal savings instruments: 6.6
million HHs in rural and and 6.7 million in urban
8
9
Rural Income Dispersal
Projection
Consumer
Class
Annual
Income
1995-96
2006-07
Very Rich
Above Rs 215,000
0.3
0.9
Consuming
Class
Rs 45,001- 215,000
13.5
25.0
Climbers
Rs 22,001- 45,000
31.6
49.0
Aspirants
Rs 16,001 - 22,000
31.2
14.0
Destitutes
Rs 16,000 & Below
23.4
11.1
100.0
100.0
Total
All figures in %
Projections Based on 7.2% GDP Growth
10
Distribution of Towns in India
Town Class
Population
No of towns
% of total
towns
Class I
1 lac and above
423*
8.2
Class II
50,000-99,999
498
9.6
Class III
20,000- 49,999
1386
26.9
Class IV
10,000- 19,999
1560
30.2
Class V
5,000- 9,999
1057
20.5
Class VI
less than 5000
237
4.6
5161
100.0
Total no of
towns
*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354
90 % of
durables
purchased by
rural people
are from
these 1900
towns
11
Source: Census 2001
Rural Consumer Insights
 In rural India, brands rarely fight with each
other, they just have to be present at the right
place.
 Many brands are building strong rural base
without much advertising support.
 Chik shampoo, second largest shampoo brand.
 Ghadi detergent, third largest brand.
 Fewer brand choices in rural : number of FMCG
brand in rural is half that of urban.
 Buy value for money, not cheap products
12
Rural Consumer Insights
 Rural India buys.
 Products more often (mostly weekly).
 Buys small packs, low unit price more
important than economy.
 Distribution and pricing are the mantras to
success in rural India.
Even expensive brands like Close up, Marie biscuits, Clinic shampoo are
doing well because of deep distribution.
13
MYTH 1: Rural Market Is a Homogeneous
Mass
REALITY
 Heterogeneous population
Big
Landlords
Traders,Small Farmers
Marginal Farmers
Laborers, Artisans
 16 languages
 State wise variations in rural demographics
 Literacy (Kerala 90%, Bihar 44%)
 Population below poverty line (Orissa 48%, Punjab
6%)
14
Source: Planning Commission, GoI
MYTH 2: Disposable Income Is Low
REALITY
 Number of middle class HHs (annual income Rs
45,000- 2,15,000)
Rural
Urban
27.4 million
29.5 million
 Per Capita Annual Income
Rural
Urban
Rs 9,481
Rs 19,407
Total
Rs 12,128
Source: NCAER,2002
 Rural incomes CAGR was 10.95% compared to
10.74% in urban between 1970-71 and 1993-94
Source:ETIG,2002-03
15
MYTH 3: Individuals Decide About
Purchases
REALITY
 Decision making process is collective
 Purchase process- influencer, decider, buyer, one
who pays can all be different. So marketers must
address brand message at several levels
 Rural youth brings brand knowledge to HH
16
Distribution of Villages
Population
Less than 200
No of villages
% of total
villages
92,541
15.6
200-500
127,054
21.4
501-1000
144,817
24.4
1001-2000
129,662
21.9
2001-5000
80,313
13.5
5001-1000
18,758
3.2
Total no of villages
593,154*
*Inhabited villages, total number of villages is 638, 691
100.0
Hardly any
shops in these
2.2 lac villages
17% of villages
account for 50%
of rural
population &
60% rural
wealth
17
Source: Census 2001
• There is money at BOP.
• Access to BOP markets.
• The BOP markets are Brand – Conscious.
• The BOP market is connected.
• BOP consumers accept advanced technology
readily
• Create the capacity to consume.
• The need for new goods and services.
• Dignity and choice.
• Trust is a Prerequisite
• A philosophy for developing products & services
for the BOP
- small unit packages
- low margin per unit
- high volume
- high return on capital employed
• Price Performance
• Innovation : Hybrids
• Scale of Operations
• Sustainable Development : Eco-Friendly
• Identifying Functionality : Is the BOP different
from Developed Markets?
• Process Innovation
• Deskilling Of Work
•
•
•
•
•
Education Of Customers
Designing for Hostile Infrastructure
Interfaces
Distribution : Accessing the Customer
BOP markets essentially allow us to challenge the
Conventional Wisdom in Delivery of Products and
Services
Changes in Farmer Lifestyle
Mobile phone
for easy
connectivity
Two-wheeler for
smooth ride
Tiller for physical
comfort
*Source: Shining Emotional Surplus
23
Factors driving change
• Rapid fragmentation of land. Hence sustainenance on land alone is difficult.
Hence multiple revenue options.
• Younger generation looking for easier, better and faster options.
• Labour availability getting increasingly difficult to due more attractive earning
options for all classes of people.
• Shortage of labour driving mechanization.
• Increasing focus of Govt and NGO towards rural India (Banks, Agri Universities,
Farmer Co-ops, SHG etc)
• Rapidly penetrating cell and internet network which opens up window to
information.
• Food Inflation across the world helping in realizing better prices for crops hence
better liquidity.
• Infrastructure projects like Golden quadrilateral, dams driving up land prices and
opening up avenues for usage of locally available farm machinery.
Impact of Corporate in Rural Agri-space
ITC E- choupal, Frito Lays, Essar Non fuel initiatives, Mahindra Shubhlabh, Rallis.
• Improved cultivation through better quality of seeds, fertilizers knowhow.
• Sourcing of crops at higher prices and higher volumes.
• Imparting knowhow of modern Agri-practices like drip irrigation, soil testing, water
testing.
• More honest and transparent dealings as compared to local agents such as
brokers, grain traders.
Infrastructure Improving Rapidly
 In 50 years only 40% villages connected by road,
in next 10 years another 30%.
 More than 90 % villages electrified, though only
44% rural homes have electric connections.
 Rural telephone density has gone up by 300% in
the last 10 years, every 1000+ pop is connected
by STD.
26
Infrastructure Improving Rapidly
 70% of R1,R2, R3 can be reached through mass media.
70
53
41
26
21
14
Satellite
TV
Radio
Press
Cinema
TV
All Media
27
Climbing Social Indicators
Between 1981 to 2001
 Number of pucca houses doubled from 22% to 41%
and kuccha houses halved (41% to 23%)
 Percentage of BPL families declined from 46% to
27%
 Rural Literacy level improved from 36% to 59%
28
Opportunity & Challenges
29
Marketing Opportunities
 Low penetration rates in rural
% of rural HH
Durables
 CTV
 Refrigerator
FMCGs
 Shampoo
 Toothpaste
Urban
30.4
33.5
Urban
66.3
82.2
Rural
Total
4.8
3.5
12.1
12.0
Rural
Total
35.2
44.9
44.2
55.6
Source: NCAER 2002
30
Marketing Opportunities





R1 - 4%
R2 - 11%
R3 - 37%
R4 - 48%
Low rural consumption in FMCGs (rich HHs)
urban
rural
 Annual consumption
Rs 13,000 Rs 9,400
 Rural consumption volumes (R1+R2+R3)
 Toothpaste
88%
 Toothpowder
79%
 Shampoo
88%
So this half of
the population
consumes over
75% of FMCG
31
volumes
Challenges in the Future
 Reaching the product to remote rural locations
and entering more rural homes (penetration)
 Increasing rural incomes (market growth)
32
Challenges in the Future
 Making effective use of the large available
infrastructure
 Post offices
1,38,000
 Haats (periodic markets)
42,000
 Melas (exhibitions)
25,000
 Mandis (Agri markets)
7,000
 Public distribution shops
3,80,000
 Bank branches
32,000
33
Challenges in the Future
Using IT to transform markets
 ITCs e-choupal and other IT initiatives (EID
parry, Amul dairy information system kiosk)
 STD revolution/ mobile connectivity
34
Challenges in the Future
 Proliferation of large format rural retail
stores





DSCL Haryali stores
M & M Shubh Labh stores
TATA/Rallis Kisan Kendras
Escorts rural stores
Warnabazaar, Maharashtra (annual sale Rs
40 crore)
35
Rural v/s urban marketing
• Rural Marketing: The marketing of products and
services in areas designated as Rural is defined as Rural
Marketing.
• Urban Marketing: The marketing of products and
services in urban areas is defined as Urban marketing.
36
Rural v/s urban marketing
• Are the two really different?????
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Rural v/s urban marketing
Areas with a population ranging between 1 to 10,000 where in people will be
predominantly engaged in agriculture can be called a Rural Area.
Areas with a population ranging between 10,000 to a Lac are called Semi
Urban. They can represent characteristics of both a village and a town
depending on their location. E.g. Sangli, Nasik,
LG Electronics defines all areas other than the 7 metros as Rural.
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• Create the capacity to consume.
• There is a latent need for new goods and services.
Hierarchy of Needs
Large
Farmers
>20 acres
2%
Self
Actualization
Esteem Needs
Medium Farmers
5-20 acres
18%
Social Needs
Security Needs
Marginal & Small Farmers
< 5 acres
80%
Basic Needs
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URBAN
M
A
R
K
E
T
R
U
RURAL
Branded Consumables
and durables(Organized)
Farm and Non Farm
goods and services
Handicrafts, handlooms
textiles, leather products,
vegetables, fruits
PRODUCTION
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4 P- The Basics
Promotion
Awareness
Place
Availability
Price
Affordability
Product
Acceptability
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Rural Consumer Classification
1995-96
2006-07
Affluent
Cars, Jeeps, luxury durables
1.6
5.5
Well off
Air conditioners, M/cycle,
fridge, WM, Stereo, TV
2.7
5.8
Climbers
M/cycle TV, Mixer , Sewing M.
8.3
22.4
Aspirants
Cycle, fans, iron,
26
44.6
Destitutes
Cycle, pots, pans
61.4
20.2
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Characteristics of Rural Customer
 Age
and Stage of Life
 Occupation and Income
Economic circumstances
Lifestyle:
 Activities: e.g. farming with kirana shops, LIC agents, teachers, working at local
industries.
 Interests: Cinema, Natak, Nautanki, Kushti, Cricket, football
 Opinions: Political and others
 Demographics: Age, education, locations, community etc.
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Classification of Needs
Needs can be bifurcated into 2 categories:
 Articulated
: Needs which are stated and addressed by
the product or service.
 Unarticulated: Needs which are not stated but are fulfilled
with the purchase of the product or service.
Both Articulated and Unarticulated needs can be:
“REASONS TO BUY”
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4Ps to 4As
Acceptability:
A product or service being offered has to be acceptable to the segment for
which it is being produced.
Levels of the Products/ services being offered:
 Core Benefit
 Basic Product
 Expected Product
Augmented Products
 Potential Products
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Classification of Products in Rural Areas
Products
FMCG
Services
Consumer
Durables
Agri
Goods
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Customizing Products for Rural Areas
 Long
shelf life
 Ability to withstand extreme weather/ harsh conditions
 Safe storage
Choice of quantity in which it is to be used.
Robust and attractive packaging which does not corrode
the features and benefits of product.
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New Product Development
 Adaptation/ Innovation: Existing products being
altered to suit rural usage conditions.
 Creation: building a new product around needs
from ground up.
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4Ps to 4As
Affordability:
Parameters of Affordability:
 Right Price
 Choice of quantity
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• A philosophy for developing products & services for the
BOP
- small unit packages
- low margin per unit
- high volume
PRICING
STRATEGY
 Any Pricing strategy from a marketer’s point of view should:
 Allow for profit maximization.
Minimum returns on sales turnover.
 Allow the intended customer to buy.
 From a customer’s point of view he/she will expect:
 Value for money (which can be interpreted as maximum product at minimum cost)
e.g. “Ek ke saath ek muft”
 Pro-rata cost applied across any quantity that is purchased.
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SOME COMMON STRATEGIES
 OPTIONAL PRODUCT PRICING: Cost of Basic Product is kept
low. Add on are charged higher rates.
 CAPTIVE PRODUCT PRICING: This involves product which exist
in 2 or more parts where the 2nd part is captive without which the product cannot
be used. It is the captive part which is charged.
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ENTRY STRATEGIES (PRICING)
 PENETRATION
PRICING: Introductory prices which are kept low.
ECONOMY PRICING: No frills pricing by cutting down manufacturing
cost.
VALUE PRICING: Offering
customer value e.g fragrance, fortified Atta.
 COINAGE PRICING: Prices are those which can be paid by coins e.g
Rs. 1, 2, 5.
PYSCHOLOGICAL PRICING: Branded goods being charged extra
over local goods.
DISCOUNTS & ALLOWANCES
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4Ps to 4As
Availability:
 Proximity to user
 Core Benefit is delivered
 Available at the right price
At the desired time.
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Distribution of Villages
Population
Less than 200
No of villages
% of total
villages
92,541
15.6
200-500
127,054
21.4
501-1000
144,817
24.4
1001-2000
129,662
21.9
2001-5000
80,313
13.5
5001-1000
18,758
3.2
Total no of villages
593,154*
*Inhabited villages, total number of villages is 638, 691
100.0
Hardly any
shops in these
2.2 lac villages
17% of villages
account for 50%
of rural
population &
60% rural
wealth
56
Source: Census 2001
Distribution
 Identifying the existing prime markets/ Classification of
markets
 high/ medium/ low volume villages.
 high/medium/ low volume tehsils.
 high/ medium/ low volumes districts.
 Ability
to Identify emerging new markets
 Identifying the type of outlets
 Dealers/ Stockist/Franchisees/ village shops
 Identifying costs involved
 Primary/ secondary/ tertiary
in transportation/ logistics
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Common Distribution models
 Hub
and Spoke (Satellite Distribution):
Stock
Yard 1
Stock
Yard 4
Plant
Stock
Yard 2
Stock
Yard 3
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Common Distribution Models
 Syndicated Distribution:
 In this method a company ties up with another company
that has established network in the rural market.
e.g. P&G and Marico, TATA and FIAT.
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Emerging Distribution Models
Corporate SHG Tie up:
 Levers
 TTK
 TVS
 ITC
E-Choupal Initiative
 Essar Non fuel initiatives for distribution of:
 Castrol lubes
 Exide Batteries
 Banks distributing insurance products, gateways for airtel,
vodafone etc.
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Ideal Distribution Model for Rural
Per Capita Sales (PCS)= Annual Sale
Market Population
 Low PCS Distribution models: Shaktimaans, SHG, Pheriwalas.
Average PCS: Retailers, hardware shops,
 High PCS models: Village Haats, Mandis, Rural Malls, Dealers, Stockists ,
Wholesalers,
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Awareness:
4Ps to 4As
Creating Awareness :
 Product/ Benefit
Availability
 Price
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AICDA Model of Communication
A
• Awareness
I
• Interest
C
• Conviction
D
• Desire
A
• Action
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MESSAGE CONTENT
• Rational
• Aspirational
• Emotional
R
E
A
M
• Moral
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MESSAGE CONTENT
 RATIONAL: Value for Money, utility of product
EMOTIONAL: Messages that establish an emotional
connect. E.g Cadbury
ASPIRATIONAL: Messages that induce customer to fulfill
aspirations.
MORAL: Ethical, Rightful e.g “Atithi Devo Bhava”
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MESSAGE SOURCE
 LIKEABLE: Sachin Tendulkar or Shah Rukh Khan
delivering a message.
 TRUSTWORTHY: Tata Namak, LIC “ Zindagi ke Saath
bhi, Zindagi ke Baad bhi”
EXPERT SOURCE: e.g. local mechanics, masons,
doctors, Eureka Forbes “ Paani ka Doctor”
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MEDIA OPTIONS
CONVENTIONAL NON-CONVENTIONAL PERSONALIZED MEDIA
MASS MEDIA
MEDIA
Television
Radio
Press
Cinema
Haat and mela
Direct mailer
Folk media (puppet
Point of sale
show, magic show) (demonstration, test
rides, plant visits)
Video van
Word of mouth
Mandi
Interpersonal
communication
Outdoor: wall
painting,
hoarding
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BRANDS IN RURAL INDIA
Category
Avg No. of Rural
Brands
Avg No of Urban
Brands
Toothpastes
3
7
Toothbrushes
3
6
Biscuits
3
9
Hair Oil
3
7
Tractors
14
Availability of fewer brands leads to fewer choices leading to a
“stickiness” which should not be mistaken for brand loyalty.
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CREATING BRANDING IN RURAL INDIA
Colours: Association with colour “ Dabur ka Lal Danth Manjan”
 Numbers: 555 Detergent, 302 Pataka bidi
 Name: Surf detergent, “Kachchua chchaap “, Dalda
 Visuals: Washing powder Nirma, “Do Boond zindagi ke” with Big B.
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FAKE BRANDS
 Fake
brands gain entry into markets using the:
 Cheaper than original platform
 Lack of awareness/ illiteracy among buyers to differentiate
 CATEGORY
OF FAKES :
o LOOK ALIKES: Packaging is identical, though names are different.
o SPELL ALIKES: Pomes for Pond’s, Colmate for Colgate
o DUPLICATES: Identical in every sense (name and packaging)
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Session 3
 Segmentation
 Targeting
 Positioning
Rural Consumer Behaviour
 Issues and Challenges in Rural Marketing
71
SEGMENTATION & TARGETING
Decision
Actions
Segmenting
• Identifying the bases for segments
• Developing profiles of different markets
Targeting
• Evaluation of segments for their attractiveness
• Deciding the market coverage strategy.
Positioning
• Identifying competitive advantage of brand
• selecting the competitive advantage.
• communicating the competitive advantage.
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SEGMENTATION
The markets can be segmented on the basis of:
 Socio-cultural
 Population and population density
 Stage/ Level of development
 Media exposure
 Literacy levels
 Economic
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PREREQUISITE FOR SEGMENTATION
 MEASURABLE
 ACCESSIBLE
 DIFFERENTIABLE
 SUBSTANTIAL
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DEGREES OF SEGMENTATION
Some of the most common approaches to Segmentation:
 Mass Marketing
 Segment Marketing
 Niche Marketing
 Micro Marketing
• Localized
• Individual
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SEGMENTATION IN RURAL MARKETS
In view of the constraints of the rural markets a more simplified approach to
RURAL MARKET SEGMENTATION is as follows:
 Geographic
Demographic
Psychographic
Behavioural
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GEOGRAPHIC SEGMENTATION
 Regions
 Culture
 Climate
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DEMOGRAPHIC SEGMENTATION
 Age and Life cycle
Income/ Economic/ Occupation
Education
Religion and Caste
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PSYCHOGRAPHIC SEGMENTATION
 Social Class
• Upper
• Middles
• Low
 Lifestyle
• Trendsetters
• Adopters
• Traditionalist
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BEHAVIOURAL SEGMENTATION
 Occasions for buying
 Benefit sought
 Frequency of usage
 Loyalty status
Frequency of purchase.
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TARGETING
The 3 Aspects of Targeting:
 Evaluation
 Selection
Coverage
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Factors for Evaluation
 Size
 Growth Rate
 Accessibility
 Profitability
 Economies of scale
Element of Risk
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SELECTION
Segmentation
Type of
marketing
Examples
None
Mass Marketing
Ghari, Nirma,
Substantial
Segment
Platina, Pulsar,
Selective
Niche
Jain Pav Bhaji,
Hallal Chicken
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COVERAGE
Coverage can be classified into 3 categories:
 Undifferentiated
 Differentiated
Concentrated
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POSITIONING
Positioning involves:
 Identifying the unique features (USP) over competition products
 Selecting the features that lend the brand a distinct competitive advantage.
 Directing all communication around the competitive advantage.
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Consumer Behaviour
An Introduction
What is Consumer Behaviour?
Those decision making processes and activities
directly involved in:
 Obtaining,
 Consuming
 Disposing
of products and services.
Need to study ?
‘You cannot take the consumer for
granted any more’
Therefore a sound understanding of consumer
behaviour is essential for the long run success
of any marketing program
Why is this important?
• Out of 11000 products launched by 77 companies, only
56% are present five years later – Kuczmaski &
Associates
• Only 8% of new product concepts offered by 112
leading companies reached the market. Out of this 83%
failed to reach marketing objectives – Group EFO Ltd.,
Marketing News, Feb 1, 1993, Pg 2
A new product must satisfy consumer needs,
not the needs and expectations of
management.
Consumer sovereignty presents a formidable challenge
but skilful marketing can affect both motivation and
behaviour if the product or service offered is designed
to meet consumer needs and expectations
A sales success occurs because demand
either exists already or is latent and awaiting
activation by the right marketing offering
All managers must become astute
analysts of Consumer motivation and
Behaviour
Three foundations for marketing decisions
 Experience
 Intuition
 Research
Enhancing Consumer Value-Add
 Marketers have to constantly innovate after understanding
their consumers to strip out costs permanently by focusing on
what adds value for the customer and eliminating what
doesn’t.
Variables involved in Consumer
Behaviour
• Stimulus – ads, products, hunger pangs.
• Response – physical/mental reaction to the stimulus.
• Intervening variables – mood, knowledge, attitude,
values, situations, etc.
Overall Model of Consumer Behaviour
External Influences
Culture,
 Marketing,
Family
 Social status
 Reference groups
 Subculture
 Demographics
 Activities
Internal Influences
 Perception
 Learning
 Memory
 Motives
 Personality
 Attitudes
 Emotions
Decision Processes
 Problem Recognition
 Information Search
Self-Concept
&
Learning
 Alternative Evaluation &
Selection
 Outlet select & Purchase
 Post purchase Processes
Rural Consumer Behavior Patterns
• Majority will opt for tried and tested products.
• Inertia is high. Hence rate of change is low.
• Seeking opinion and reinforcing the same through repetitive consultation before
buying high value items.
• Touch and try is preferred mode for taking a decision.
• General feeling is that everybody is out to cheat them, hence relationship
building is critical.
• Price sensitivity is high.
• Willingness to adopt and innovate is high if solution provided is effective.
• Seeks to build a high level of trust.
Consumption, Satisfaction,
Divestment
Consumption
The act of purchase is normally followed by consumption or use.
Evaluation continues into the act of consumption by a
satisfaction/dissatisfaction response. The probability of repurchase
is determined at this point
Options for consumption
•
•
•
•
Usage at the earliest convenient opportunity
Short-term storage in anticipation of a later usage opportunity
Long-term storage with no specific or anticipated use in mind
Abort consumption process
Buyer’s Regret
Post decision doubt (dissonance)
• A certain threshold of dissonance-motivated tension is surpassed
• The action is irrevocable
• There are other un-chosen alternatives with qualitatively dissimilar
but desirable attributes
• The choice is made entirely by free will, without any compulsion
Post-Modern Consumption Research
• Sacred Consumption: e.g Newly purchased Consumer Durables
• Profane Consumption: e.g Public buses, rural passenger vehicles
• Compulsive consumption: e.g Mobile Phones, Gutka, Tobacco
Satisfaction
A post-consumption evaluation that a chosen alternative at least
meets or exceeds expectations
Categories of consumer expectations
• Equitable performance – normative judgement of consumer of
product performance given the costs and efforts taken to purchase
and use
• Ideal performance – the optimum or hoped for performance level
• Expected performance – what the performance probably will be
Expectancy Disconfirmation Model
The CS/D response takes one of 3 forms
• Positive Disconfirmation – Performance is better than expected
• Simple Confirmation – as per expectations
• Negative Disconfirmation – worse than expectations
Divestment
• Outright disposal
• Recycling
• Remarketing