Understanding consumer behavior is a broad and complicated task, but with the right research mix you can begin to get a detailed understanding of your customers and their motivations.
More than three billion people live in the sprawling rural regions of Asia, Africa and other developing countries.
Companies and governments cannot afford to ignore these consumers if they Understanding rural consumer behaviour tapping the to be successful, writes Vijay Mahajan in his recent book, Rise of Rural Consumers in Developing Countries: Harvesting 3 Billion Aspirations.
Mahajan, a professor of marketing at the University of Texas at Austin, examines the main factors driving growth in rural markets, its major barriers, and how these can be overcome. In a conversation with Knowledge Wharton, Mahajan notes that because of increased information flow thanks to rural migrants and communications technology, rural consumers have similar aspirations as their urban counterparts do.
Still, there is a lot still left to understand about consumer behavior in rural areas, like family relationships and the importance of religious and social events. An edited transcript of the conversation follows.
What inspired you to write this book?
I kept seeing the organizations and the infrastructure. And the moment I got out of the Gulf countries and went to Jordan and then to Egypt and Morocco, it hit me that I had missed a very important component of the developing countries.
This was the fact that apart from the Gulf countries, the rest of the world was predominantly rural. I started talking to companies, especially in Egypt and in Morocco, about what the consequences are of the urban versus rural divide. Although I gained some data I really did not investigate much.
They took me to all the major urban centers because they wanted to showcase what they were doing. When I came back and started looking at some other data, I realized this is a very major issue. And interestingly, more than 3 billion people live in rural regions in Asia, Africa and the developing countries.
What also surprised me was that even the U. I started digging a little bit about the U. But then, I moved back to the developing countries and decided to focus on 10 of them.
I realized that out of the 3 billion who live in Africa and Asia, 1 billion were just in South Asia — in Pakistan, Bangladesh, India and the small neighboring countries.
If you were to look at the 10 major rural markets you have identified in the book, what are the main factors driving their growth?
Three or four factors underlie their growth. One, there is a dedicated movement from the governments. I saw that with China, with Vietnam, with Thailand and also, to some extent, with India. Governments are trying to develop policies to help eradicate poverty. The second most important aspect I noticed was rural migration.
All migrants from rural areas send money back home. Many of them have gone outside the country — from India to the Middle East for example, as cooks, drivers and maids and they talk to their families back home on Skype, on mobile phones.
So rural migrants are becoming major influencers in their villages and towns. Also, as compared to urban centers, rural centers are still very much into religion and culture and the most amazing things happen during the religious and social holidays like the Chinese New Year, Tet [New Year] in Vietnam or during Ramadan.
Technology is also playing a major role in spreading information in farming, in health care, etc. So several factors are creating a lot of excitement, which I probably would not have seen 10 or 15 years ago.
When you talk to companies and chief marketing officers, have they tapped into the rise of rural consumers?
A STUDY ON THE RURAL CONSUMER BUYING BEHAVIOUR IN BIHAR MRIDANISH JHA ASSISTANT PROFESSOR ABSTRACT It is relatively easy to measure what rural consumers buy, where they buy from and how much they buy. Understanding why they buy is the most difficult in rural India and what factors induce them to buy. This study tries to find out the factors. Understanding consumer behavior is a broad and complicated task, but with the right research mix you can begin to get a detailed understanding of your customers and their motivations. What is consumer behavior? Brandwatch Analytics is the world-leading social listening platform. Analysing Rural Consumer Behaviour Essay Sample. Recent changes in national and global business environment have forced companies to re-evaluate their pre-conceived notions about profit opportunities in serving the relatively poor consumer.
Or is this an underserved market? Almost all the companies I met are aware that urban centers are saturated. They also know that urbanization is not going to happen overnight. India is where the U. China is where the U. It took the U.
Knowledge Wharton High School I think companies are aware of the fact that governments would like to have urbanization, sometimes artificially.
But the rural population is not going to go away. Unilever, for instance, simply cannot survive in South Asia if they ignore 1 billion rural people. Out of the 6 billion people in the developing countries, almost one-sixth or one-third are rural consumers.
The companies know that this much population cannot be ignored and they have to find ways to approach them.With an increasingly connected rural population and the cost advantage it offers as compared to traditional media in rural areas, mobile marketing is set to become the future of rural marketing.
Companies need to let go of outdated assumptions about rural consumers and win their trust by understanding what they want by tapping into the right influencers.
CHAPTER4 UNDERSTANDING BUYER BEHAVIOR LEARNING OBJECTIVES Having read this cha~ter,you srould be able to: • Understand t he behavicr of the individual consumers in the marl:e~pl ace.
Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Rural markets are critical for marketers today because of the market size and the growth potential.
The widely dispersed market and limited infrastructure to access the markets as also the diversity within the rural market have posed a serious challenge to marketers and aroused the Format: Paperback.
Title of Research topic: Understanding the rural and urban consumer: By Mr. Sunil V. Chaudhary Faculty SEMCOM V.V. Nagar: Abstract * The Indian rural market with its vast size offers a huge opportunity with million households and the rural population is nearly three times the urban.
Understanding Rural Consumer Behaviour Tapping the Future Market Essay UNDERSTANDING RURAL CONSUMER BEHAVIOUR: TAPPING THE FUTURE MARKET SHWETA Email – [email protected] 1. INTRODUCTION It is widely acclaimed that India is one of the largest consumer market in the world.
Thus, understanding rural consumer behaviour is very important for the marketers. This paper focused on the important factors that affect the rural purchase behaviour of FMCG products.