Unit 2

Rural Consumer Behaviour

Q1) What is Consumer decision making?

A1) Consumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumers buying behaviour based on the degree of buyer involvement and the degree of differences among brands.

Q2) What is Complex buying behaviour model?

A2) Consumers engage in complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand ‘s features, use print media to describe the brand ‘s benefits and motivate store sales personnel and the buyer ‘s acquaintances to influence the final brand choice.

For e.g., Automobile, two-wheeler, consumer durable.

Q3) What is Dissonance-reducing buying behaviour model?

A3) Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying.

After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favourable things about other carpets. Thus, marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice.

Q4) What is Habitual buying behaviour model?

A4) Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt. Consumers have little involvement in the product category. They go to the store and reach for the brand. If they keep reaching for the same brand, it is out of habit, not strong brand loyalty. It happens with most low-cost, frequently purchased products. Marketers find it effective to use ad repetition, price and sales promotion to stimulate product trial.

Q5) What is Variety-seeking buying behaviour

A5) Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behaviour by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples.

Q6) What are the factors affecting consumer behaviour?

A6) The different factors that have an effect on shopping for behaviour of in rural India are:

Environment of the client: The environment or the environment wherein the consumer leaves have a totally robust impact at the consumer conduct. E.g., electrification, water deliver results call for durables.

Geographic impact: The geographic place wherein the agricultural client is placed additionally speaks approximately the idea system of the client. For instance, villages in south India take delivery of era faster than in different elements of India. Thus, HMT sells extra winding watches in the north even as they promote extra quartz watches in the south.

Influence of career: The land proprietors and provider should buy extra of category2 &category3 durables than agricultural laborers.

Place of buy: Company ‘s wants to get right of entry to the impact of store on both consumers at village shops.

Creative use of product: The look at of product and affords signs to the organization on the want for schooling and additionally for brand new product ideas. E.g., Godrej hair dye is getting used as an ache to the colour horns of ox.  

Social Factor 

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Cultural Factor

There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Technological Factor

The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace  

Lifestyle

Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Personality

Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes
3. Competitive Positioning.

Q7) What are the characteristics of rural consumer according to age and stages of life cycle?

A7) Large and scattered marketplace: According to 2011 census rural populace is 68.4% (2001 – 72%) of overall populace and its miles scattered over an extensive variety of geographical region. With regard to length, nevertheless extra than 2/3 of the populace lives in rural India and a hundred and seventy million family purchasers. The sheer length is identical to US, UK, Germany, France, Japan and Italy together. To reach 600000+ villages is honestly a challenge. A few new rural distribution and procurement fashions were innovated with the aid of using ITC e-chaupal and HUL Project Shakti.

Diverse socio-economic background: This is different in different element of the United States and brings variety in rural markets.

Changing demand pattern: Demand sample of rural consumer is speedy converting because of boom in earnings and credit score centres supplied with the aid of using the banks like ‘kisan credit score card’. In phrases of India’s GDP, fifty-four%, identical to that of Switzerland, is contributed with the aid of using rural India. In India’s month-to-month expenditure, approximately 55% comes from rural India. Non-meals spending is identical to that of city India. Consumerism is really on an upward thrust and the spending on life-style merchandise is emerging. Consumer durables marketplace is developing at 10% in line with annum in city regions, however the increase fee in rural India is 25%. Of the 40% of the sale in automobile enterprise comes from rural India.

Major earnings come from agriculture: About 60% of the agricultural earnings are from agriculture and as a result the call for client items is excessive throughout harvesting season.

Saving conduct: Rural client is now having saving conduct because of the efforts of co­operative and industrial banks. Presently extra than 33% of India’s financial savings comes from rural India.

Traditional outlook: Rural consumer values vintage customs and traditions and are inquisitive about deriving centre enjoy the product. They consider in price-overall performance paradigm. It is due to this purpose that ‘Ghari’ detergent has replaced ‘Wheel’ because the no. 1 laundry logo.

Low standard of living: Rural client have low standard of living due to low literacy, low in line with capita earnings and social backwardness. However, more or less 34% of FMCG manufacturers’ overall income comes from rural regions.

Infrastructure centres’: Facilities like roads, warehouses, communication machine, and so on are insufficient in rural regions. Hence, bodily distribution turns into steeply-priced affair. Electrification is but now no longer entire in all of the villages. The Literacy fee in rural regions has long passed up from 58.7% in 2001 to 68.9% in 2011. During this era the development in literacy fee in rural region is two times that of city regions (rural: 10.2% and concrete: 5.1%). Improvement in woman literacy is extra.

Q8) How occupation influence the buying behaviour of a person?

A8) Agricultural and allied activities are the principal career for the agricultural human beings. An allied interest consists of Horticulture, Forestry, Fishery, Animal Husbandry (dairy, poultry, and goat), and Floriculture and so on, the regular wishes of the villagers also are met with the aid of using many different sorts of occupations. In rural quarter, Agri-primarily based totally career may be different types.

The occupations which may be commonly visible in the villages are:

1. Farm laborer, Milkman, Washer man, Pot maker, Barber, Carpenter, and Priest
2. Other rural career which might be non-agricultural and aid agricultural necessities and the agricultural human beings of their everyday existence are:
3. Village medical doctor, Policemen, Traditional village nurse, Anganwadi people, Teacher, Peon, Grocer, Mechanic, Cyber Cafe owner, Venders, Agricultural specialists, Electricians and so on.

Q9) What is consumer buying process?

A9) The consumer buying process in retail and ecommerce comes down to a single decision to add an item to their cart–but that’s just the tip of the iceberg. Plenty of things are going on behind the scenes. Usually, a lot of thought and actions beneath that decision are in place to encourage customers to complete a purchase.

With the exception of impulse buys, consumers do a considerable amount of research before deciding to buy. And in today’s marketplace, the brands that thrive are the ones that get in front of shoppers long before they decide to make the purchase.

1. Problem Recognition

The consumer buying process starts off with the customer having a problem that can be solved by a product or service. This manifests itself in a number of ways.

In some cases, the shopper starts off feeling the symptoms of an issue. For example, an office worker might find their computer is slowing down, but they’re not sure of the exact problem or how to solve it.

In other cases, the problem is straighter cut. Say a woman develops blisters after wearing a pair of high heels for a full day. She immediately recognizes the problem and knows she needs something (e.g., anti-blister products or new shoes) to fix it.

There are times when consumers discover a problem they didn’t know existed. This might occur in a situation like when a driver sees an auto insurance ad and realizes they’re overpaying. As a brand marketer, you need to understand when and how the need for your product or service arises.

2.Information Gathering:

It might sound simple, but once the consumer recognizes they have a problem (or symptom of it), they proceed to research to solve the issue. So, the office worker who has a slow computer might start looking for software improvements to speed things up. And the driver who’s overpaying for insurance, they’ll start searching for a way to lower their payments.

3.Optimize Your Product Descriptions:

Write unique and compelling product descriptions that accurately describe your merchandise while enticing people to buy. See to it that your descriptions contain the right keywords and write your copy in a tone and style that’s relatable to your audience.

In terms of formatting, make the text scannable by using shorter paragraphs, headers and bullet points.

4.Evaluation of Alternatives:

Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice, then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by “framing” alternatives.

5.Purchase decision:

Choose buying alternative, includes product, package, store, method of purchase etc.

6.Purchase:

May differ from decision, time lapse between 4 & 5, product availability.

7.Post-Purchase Evaluation – outcome:

Satisfaction or dissatisfaction. Cognitive Dissonance, have you made the right decision? This can be reduced by warranties, after sales communication etc.

After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

Q10) Explain Brand personality and Brand belief.

A10) Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes

3.   Competitive Positioning

A. Brand Personality as a Vehicle to Express Functional Benefits of a Brand - The functional benefits of a brand can be promoted through brand personality. Therefore, brand personality serves as a vehicle for representing and indicating product-related utilitarian benefits and brand attributes. The functional benefits of a brand become much more persuasive when they are expressed by the brand’s personality. It is easier to create a personality which implies the functional benefits than to communicate these benefits directly. Additionally, a brand personality is not easy to copy. Representing brand’s functional benefits by its personality is also called information chunking. Information chunks compile information such as brand, price and quality and play a vital role in the consumer’s purchase decision. Hence brand’s personality serves as an information chunk for the functional benefits of the product. However, the representation of functional benefits by brand’s personality is indirectly associated to the consumer’s behaviour by strengthening the product’s attributes.

B. Brand Personality as a Reflective Symbol of the Self of the Consumer- Consumers use brands as medium to express their self-identity. This identity can be either their actual identity or a preferred or ideal self which they desire. Another important way, in which people express their personality, is their consumption behaviour and the selection of certain brands. Brands thereby function as a reflective symbol of the self of the consumer.

C. The Meaning of Brands and Consumer Decision Making-   According to Tucker , consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

D. The Role of Consumer’s Self-Concept in Consumer Behaviour-  If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al.defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

E. Congruence of Consumer’s Personality and Brand’s Personality-  According to Sirgy , consumer desire for a congruence of his personality and the brand’s personality with three motives viz. The self-esteem motive, the self-consistency motive and the self-knowledge motive. Self-esteem refers to an individual’s feelings and thinking about him and it is related to self-evaluation. Various factors like the interaction with others, personal experiences of success or failure or heredity influence self-esteem. Self-esteem is connected to the reflected appraisal of others and can be defined as a prism through which an individual views the world. Self-esteem is an important aspect of personality as it affects our goal setting, the selection of preferred environments and the stress, anxiety and depression one experiences in various situations. Moreover, self-esteem also affects people’s self-efficacy which refers to people’s beliefs about their ability to manage events that affect their lives. People with a higher self-esteem are likely to have a higher self-efficacy than people with a low self-esteem. In the similar manner, the self-esteem motive can be defined as the individual’s motivational tendency to involve in information processing that may direct one to perceive oneself in a positive light. This implies that in order to enhance their self-concepts or self-esteem people approach their desired images they have for themselves. These desired images are expressed by the consumer’s ideal self, which serves as a standard image. Therefore, self-esteem is a motivational component to recognize our ideal self-concept. According to Sirgy, self-esteem is a conscious opinion about the relationship of one’s actual self to the ideal self or social self. This relationship between real and ideal self and self-esteem as evaluative component can be elucidated by the self-discrepancy theory which states that a high discrepancy between real and ideal generates low self-esteem. The need for social approval is another motive which is strongly associated with the self-esteem motive. This is linked to the individual’s social or ideal social self. With a view to create a particular image in the minds of others, people thus persistently try to maintain and modify their public self in a way congruent to their ideal self-image.

F. Brand Personality as a Medium to Establish Consumer-   Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q11) What is self-image?

A11) Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q12) What do you mean by Lifestyle? Give examples.

A12) Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Lifestyle is an important aspect when looking at consumer choices. Just because there may be two women with similar age and income, does not mean they’re likely to purchase the same products (Hickey, M Nader, T Williams, T 2012). Below will be some examples of why lifestyle is an important aspect to consider.

Social status

Social status is one of the key elements to how and why people buy certain products and services. It affects the quality and quantity of what people buy (boundless.com n.d.). The rich have more money to spend on higher quality products. They may aim for brand names like Carla Zampatti and Valentino. (Tanner, J Raymond, M 2012) Though the lower class will focus more on necessities and focus on buying one nice outfit, but then spend more on food and their home (Boundless.com, n.d.).

E.g.: If we compare the higher class and lower class in buying cars. The higher class have more money to spend, they think about style, brand, comfort, safety and anything that heightens their status. This might make them choose an Audi. But the lower class have less money to spend so need to focus on what’s most important. They’ll focus greater on safety and reliability, so they may end up buying an older Toyota Camry.

Product involvement

People’s lifestyle comes into play especially when they come to high involvement products. These products carry high risk, are complex or have high price tags. (Friesner, T 2014) They may be a car, home or insurance policy (Tanner, J Raymond, M 2012) lifestyle comes into play here. Take for example buying a home. Some people might be outdoorsy, love gardening and want quiet. Whereas another couple may love fresh air, need a medium sized home and love the beach. Each will go through an extensive problem-solving process in order to find their home. The first person might find a farm, and the other a beach shack. Everything a consumer buys will reflect their lifestyle in some shape or form.

Activities

The activities people undertake vitally determines how their money will be spent. For example: if a person is dedicated to the gym and works in a gym, then they’re likely to spend most of their money on gym clothes, weights, exercise machines and healthy food.

For me I go to the gym a couple of times a week and work at David Jones. So, part of my wardrobe consists of gym clothes, then the rest is black clothes for working, or clothes that I’ve purchased from work. Which I think a lot of people who work in retail could relate to.

Self-image

Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q13) Explain the economic circumstances of consumer buying behaviour.

A13) The economic environment comprises of outside elements in a business market and the more extensive economy that can impact a business. You can separate the economic environment into the microeconomic environment, which influences business dynamic -, for example, singular activities of firms and shoppers - and the macroeconomic environment, which influences a whole economy and the entirety of its members. Numerous economic elements go about as outside limitations on your business, which implies that you have nearly nothing, assuming any, and power over them. We will see both of these wide factors in more detail.

Macroeconomic impacts are wide economic components that either straightforwardly or in a roundabout way influence the whole economy and the entirety of its members, including your business. These variables incorporate such things as:

1. Interest rate
2. Taxes 
3. Inflation 
4. Currency exchange rate
5. Saving rates
6. Buyer confidence levels
7. Unemployment rate
8. Recession 
9. Depression

Microeconomic elements impact how your business will decide. In contrast to macroeconomic variables, these elements are undeniably less expansive in extension and don't really influence the whole economy all in all. Microeconomic variables affecting a business include:

• Market size
• Demand 
• Supply
• Competitors 
• Supplier 

Distribution chain, for example retail stores

Economic environment includes economic forces that have an effect on organization’s costs, revenues, and earnings on one hand, and clients’ buying powers and willingness to spend on the alternative hand.

Economic forces encompass a huge quantity of variables, which include:

• Economic increase                                                                                                                                
• Fee Interest rates                                                                                                                                            
• Inflation fee                                                                                                                                                       
• Functioning of inventory markets and commodity markets                                                                         
• Industrial and agricultural regulations                                                                                                
• Fiscal and economic regulations                                                                                                            
• Export-import regulations                                                                                                                   
• Liberalization, globalization and privatization processes                                                                   
• Government’s long-time period making plans and funding in infrastructural centers

Income generation:   The sample of earnings era in rural regions primarily based totally on agriculture is seasonal and notably unreliable in contrast to the constant month-to-month earnings in the city regions. This created a intake sample this is pretty different from the city.  

1. By sale of agricultural produce.                                                                                                                        
2. By sale of animal produce.                                                                                                                     
3. By provider –Rendered with the aid of using teacher, medical doctor or nurse.                                     
4. By hobby on funding Government subsidies and presents.                                                                
5. By loan of residences and gold.                                                                                                                                
6. By charities and donations.                                                                                                                                               

By labour and wages –Laborers do jobs in creation of roads, bridges and homes.   Income of Rural Sector is growing at a extensive fee. Percentage of Very Rich, Consuming Class, and Climbers are growing while Aspirants and Destitute are   declining.

The shape of Rural Income depicts the subsequent trends:  

• On the earnings ladder, the pinnacle slots are occupied with the aid of using the non-farm quarter, while the farmer is on the third place and salary earner is at the lowest.
• The maximum in line with capita earnings in rural comes from the formal section of the non-farm quarter at Rs. 19514 that's better than the city in line with capita earnings at Rs. 19407.  

Expenditure pattern: Per capita intake expenditure in rural has extended 4 instances over closing 20 years. Rural spending in non-meals items is growing; out of a complete in line with capita spending of Rs.486, about 40% is spent on non-meals items. This indicates an encouraging fashion for client durables and non-durables (non -meals item). Analysing the intake styles of non-meals items of rural purchasers, we discover that the principal percentage of spending is going to clothing, clinical offerings and gasoline wishes, while city purchasers spend tons extra on rentals, schooling and conveyance.

Rural demand and consumption: Lower degree of schooling in rural quarter (about 60% of the populace lies beneath the centre schooling bracket) result in little or low call for more than a few merchandises which include literacy books, magazines, notebooks, pen/pencils, drawing instruments, calculators, virtual diaries, computers, and so on. But change is taking location due to the fact the literacy maintains the agricultural quarter has risen 23% over the past 20 years. This has contributed significantly to a development in the socio-economic popularity of the human beings. With this increase, the call for academic merchandise has extended. Overall, merchandise and logo consciousness have extended and rural purchasers have emerged as extra mature in buy selection.  

Rural market Index: Rural market index Thomson Rural Market Index Market Research is finished with the aid of using marketplace studies agencies and specialists in the discipline to offer information approximately intake styles, buy possibilities and rural marketplace ability. Hindustan Thompson Associates Limited, a marketplace studies and marketing and marketing organization in India studied the agricultural regions in India in year 1972. HTAL made its record in 1972 and advanced normal signs of rural marketplace ability in India. These are referred to as Thompson Rural Market Index. HTAL compiled information of 335 districts primarily based totally on 26 measurable scale variables. HTAL collated information concerning agricultural info of output in every district. Indicators taken into consideration in growing TRMI are: Agricultural Laborers, Gross Cropped Area Gross Irrigated Area, and Area beneath non meals crops, Pump sets, Fertilizer intake Tractors, Rural Credit, Rural Deposits, Villages electrified.

Land use pattern: Land Management is gaining significance due to growing needs on land and increase of the populace.   Forest region and cultivable land probabilities have extended. Forest has extended from a   degree of 14% to 22%. Area sown has extended from 20% to 43%. Area now no longer to be had for cultivation has decreased. Change of mind-set of common guy in the direction of ecology, growing greenery and that each rectangular meter of land is used gainfully. Multi-storied homes shape a part of the city ‘s landscape.  

Q14) What are the social factors affecting consumer behaviour?

A14) The social factors affecting consumer behaviour are-

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Q15) What are the cultural factors affecting consumer behaviour?

A15) There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Q16) What are the technological factors affecting consumer behaviour?

A16) The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace.

Q17) How income influence the buying behaviour of a person?

A17) Income has the ability to influence the buying behaviour of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes.

Income is a very important factor that affects the buying decisions and consumer behaviour of people. 

Across different income levels, the difference in product choices and buying patterns can easily be marked. A person in the middle class makes his buying decisions based on utility. However, someone from the upper class would want style, design and special features while making a purchase.

The channels for the marketing of luxury items are different from those for the ordinary ones. Luxury items are mostly marketed through luxury magazines.

The level of income determines what kind of products someone regularly purchases. A buyer with higher disposable income will spend more on luxury or lifestyle items. People with higher disposable income also spend more on vacations and tours. Customer service and after sales support also become important factors when it comes to big ticket purchases.

Q18) Explain the Role of Consumer’s Self-Concept in Consumer Behaviour?

A18) If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al. Defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

Q19) Explain Brand Personality as a Medium to Establish Consumer.

A19) Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q20) Explain the Meaning of Brands and Consumer Decision Making.

A20) According to Tucker, consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

Unit 2

Rural Consumer Behaviour

Q1) What is Consumer decision making?

A1) Consumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumers buying behaviour based on the degree of buyer involvement and the degree of differences among brands.

Q2) What is Complex buying behaviour model?

A2) Consumers engage in complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand ‘s features, use print media to describe the brand ‘s benefits and motivate store sales personnel and the buyer ‘s acquaintances to influence the final brand choice.

For e.g., Automobile, two-wheeler, consumer durable.

Q3) What is Dissonance-reducing buying behaviour model?

A3) Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying.

After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favourable things about other carpets. Thus, marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice.

Q4) What is Habitual buying behaviour model?

A4) Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt. Consumers have little involvement in the product category. They go to the store and reach for the brand. If they keep reaching for the same brand, it is out of habit, not strong brand loyalty. It happens with most low-cost, frequently purchased products. Marketers find it effective to use ad repetition, price and sales promotion to stimulate product trial.

Q5) What is Variety-seeking buying behaviour

A5) Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behaviour by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples.

Q6) What are the factors affecting consumer behaviour?

A6) The different factors that have an effect on shopping for behaviour of in rural India are:

Environment of the client: The environment or the environment wherein the consumer leaves have a totally robust impact at the consumer conduct. E.g., electrification, water deliver results call for durables.

Geographic impact: The geographic place wherein the agricultural client is placed additionally speaks approximately the idea system of the client. For instance, villages in south India take delivery of era faster than in different elements of India. Thus, HMT sells extra winding watches in the north even as they promote extra quartz watches in the south.

Influence of career: The land proprietors and provider should buy extra of category2 &category3 durables than agricultural laborers.

Place of buy: Company ‘s wants to get right of entry to the impact of store on both consumers at village shops.

Creative use of product: The look at of product and affords signs to the organization on the want for schooling and additionally for brand new product ideas. E.g., Godrej hair dye is getting used as an ache to the colour horns of ox.  

Social Factor 

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Cultural Factor

There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Technological Factor

The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace  

Lifestyle

Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Personality

Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes
3. Competitive Positioning.

Q7) What are the characteristics of rural consumer according to age and stages of life cycle?

A7) Large and scattered marketplace: According to 2011 census rural populace is 68.4% (2001 – 72%) of overall populace and its miles scattered over an extensive variety of geographical region. With regard to length, nevertheless extra than 2/3 of the populace lives in rural India and a hundred and seventy million family purchasers. The sheer length is identical to US, UK, Germany, France, Japan and Italy together. To reach 600000+ villages is honestly a challenge. A few new rural distribution and procurement fashions were innovated with the aid of using ITC e-chaupal and HUL Project Shakti.

Diverse socio-economic background: This is different in different element of the United States and brings variety in rural markets.

Changing demand pattern: Demand sample of rural consumer is speedy converting because of boom in earnings and credit score centres supplied with the aid of using the banks like ‘kisan credit score card’. In phrases of India’s GDP, fifty-four%, identical to that of Switzerland, is contributed with the aid of using rural India. In India’s month-to-month expenditure, approximately 55% comes from rural India. Non-meals spending is identical to that of city India. Consumerism is really on an upward thrust and the spending on life-style merchandise is emerging. Consumer durables marketplace is developing at 10% in line with annum in city regions, however the increase fee in rural India is 25%. Of the 40% of the sale in automobile enterprise comes from rural India.

Major earnings come from agriculture: About 60% of the agricultural earnings are from agriculture and as a result the call for client items is excessive throughout harvesting season.

Saving conduct: Rural client is now having saving conduct because of the efforts of co­operative and industrial banks. Presently extra than 33% of India’s financial savings comes from rural India.

Traditional outlook: Rural consumer values vintage customs and traditions and are inquisitive about deriving centre enjoy the product. They consider in price-overall performance paradigm. It is due to this purpose that ‘Ghari’ detergent has replaced ‘Wheel’ because the no. 1 laundry logo.

Low standard of living: Rural client have low standard of living due to low literacy, low in line with capita earnings and social backwardness. However, more or less 34% of FMCG manufacturers’ overall income comes from rural regions.

Infrastructure centres’: Facilities like roads, warehouses, communication machine, and so on are insufficient in rural regions. Hence, bodily distribution turns into steeply-priced affair. Electrification is but now no longer entire in all of the villages. The Literacy fee in rural regions has long passed up from 58.7% in 2001 to 68.9% in 2011. During this era the development in literacy fee in rural region is two times that of city regions (rural: 10.2% and concrete: 5.1%). Improvement in woman literacy is extra.

Q8) How occupation influence the buying behaviour of a person?

A8) Agricultural and allied activities are the principal career for the agricultural human beings. An allied interest consists of Horticulture, Forestry, Fishery, Animal Husbandry (dairy, poultry, and goat), and Floriculture and so on, the regular wishes of the villagers also are met with the aid of using many different sorts of occupations. In rural quarter, Agri-primarily based totally career may be different types.

The occupations which may be commonly visible in the villages are:

1. Farm laborer, Milkman, Washer man, Pot maker, Barber, Carpenter, and Priest
2. Other rural career which might be non-agricultural and aid agricultural necessities and the agricultural human beings of their everyday existence are:
3. Village medical doctor, Policemen, Traditional village nurse, Anganwadi people, Teacher, Peon, Grocer, Mechanic, Cyber Cafe owner, Venders, Agricultural specialists, Electricians and so on.

Q9) What is consumer buying process?

A9) The consumer buying process in retail and ecommerce comes down to a single decision to add an item to their cart–but that’s just the tip of the iceberg. Plenty of things are going on behind the scenes. Usually, a lot of thought and actions beneath that decision are in place to encourage customers to complete a purchase.

With the exception of impulse buys, consumers do a considerable amount of research before deciding to buy. And in today’s marketplace, the brands that thrive are the ones that get in front of shoppers long before they decide to make the purchase.

1. Problem Recognition

The consumer buying process starts off with the customer having a problem that can be solved by a product or service. This manifests itself in a number of ways.

In some cases, the shopper starts off feeling the symptoms of an issue. For example, an office worker might find their computer is slowing down, but they’re not sure of the exact problem or how to solve it.

In other cases, the problem is straighter cut. Say a woman develops blisters after wearing a pair of high heels for a full day. She immediately recognizes the problem and knows she needs something (e.g., anti-blister products or new shoes) to fix it.

There are times when consumers discover a problem they didn’t know existed. This might occur in a situation like when a driver sees an auto insurance ad and realizes they’re overpaying. As a brand marketer, you need to understand when and how the need for your product or service arises.

2.Information Gathering:

It might sound simple, but once the consumer recognizes they have a problem (or symptom of it), they proceed to research to solve the issue. So, the office worker who has a slow computer might start looking for software improvements to speed things up. And the driver who’s overpaying for insurance, they’ll start searching for a way to lower their payments.

3.Optimize Your Product Descriptions:

Write unique and compelling product descriptions that accurately describe your merchandise while enticing people to buy. See to it that your descriptions contain the right keywords and write your copy in a tone and style that’s relatable to your audience.

In terms of formatting, make the text scannable by using shorter paragraphs, headers and bullet points.

4.Evaluation of Alternatives:

Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice, then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by “framing” alternatives.

5.Purchase decision:

Choose buying alternative, includes product, package, store, method of purchase etc.

6.Purchase:

May differ from decision, time lapse between 4 & 5, product availability.

7.Post-Purchase Evaluation – outcome:

Satisfaction or dissatisfaction. Cognitive Dissonance, have you made the right decision? This can be reduced by warranties, after sales communication etc.

After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

Q10) Explain Brand personality and Brand belief.

A10) Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes

3.   Competitive Positioning

A. Brand Personality as a Vehicle to Express Functional Benefits of a Brand - The functional benefits of a brand can be promoted through brand personality. Therefore, brand personality serves as a vehicle for representing and indicating product-related utilitarian benefits and brand attributes. The functional benefits of a brand become much more persuasive when they are expressed by the brand’s personality. It is easier to create a personality which implies the functional benefits than to communicate these benefits directly. Additionally, a brand personality is not easy to copy. Representing brand’s functional benefits by its personality is also called information chunking. Information chunks compile information such as brand, price and quality and play a vital role in the consumer’s purchase decision. Hence brand’s personality serves as an information chunk for the functional benefits of the product. However, the representation of functional benefits by brand’s personality is indirectly associated to the consumer’s behaviour by strengthening the product’s attributes.

B. Brand Personality as a Reflective Symbol of the Self of the Consumer- Consumers use brands as medium to express their self-identity. This identity can be either their actual identity or a preferred or ideal self which they desire. Another important way, in which people express their personality, is their consumption behaviour and the selection of certain brands. Brands thereby function as a reflective symbol of the self of the consumer.

C. The Meaning of Brands and Consumer Decision Making-   According to Tucker , consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

D. The Role of Consumer’s Self-Concept in Consumer Behaviour-  If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al.defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

E. Congruence of Consumer’s Personality and Brand’s Personality-  According to Sirgy , consumer desire for a congruence of his personality and the brand’s personality with three motives viz. The self-esteem motive, the self-consistency motive and the self-knowledge motive. Self-esteem refers to an individual’s feelings and thinking about him and it is related to self-evaluation. Various factors like the interaction with others, personal experiences of success or failure or heredity influence self-esteem. Self-esteem is connected to the reflected appraisal of others and can be defined as a prism through which an individual views the world. Self-esteem is an important aspect of personality as it affects our goal setting, the selection of preferred environments and the stress, anxiety and depression one experiences in various situations. Moreover, self-esteem also affects people’s self-efficacy which refers to people’s beliefs about their ability to manage events that affect their lives. People with a higher self-esteem are likely to have a higher self-efficacy than people with a low self-esteem. In the similar manner, the self-esteem motive can be defined as the individual’s motivational tendency to involve in information processing that may direct one to perceive oneself in a positive light. This implies that in order to enhance their self-concepts or self-esteem people approach their desired images they have for themselves. These desired images are expressed by the consumer’s ideal self, which serves as a standard image. Therefore, self-esteem is a motivational component to recognize our ideal self-concept. According to Sirgy, self-esteem is a conscious opinion about the relationship of one’s actual self to the ideal self or social self. This relationship between real and ideal self and self-esteem as evaluative component can be elucidated by the self-discrepancy theory which states that a high discrepancy between real and ideal generates low self-esteem. The need for social approval is another motive which is strongly associated with the self-esteem motive. This is linked to the individual’s social or ideal social self. With a view to create a particular image in the minds of others, people thus persistently try to maintain and modify their public self in a way congruent to their ideal self-image.

F. Brand Personality as a Medium to Establish Consumer-   Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q11) What is self-image?

A11) Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q12) What do you mean by Lifestyle? Give examples.

A12) Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Lifestyle is an important aspect when looking at consumer choices. Just because there may be two women with similar age and income, does not mean they’re likely to purchase the same products (Hickey, M Nader, T Williams, T 2012). Below will be some examples of why lifestyle is an important aspect to consider.

Social status

Social status is one of the key elements to how and why people buy certain products and services. It affects the quality and quantity of what people buy (boundless.com n.d.). The rich have more money to spend on higher quality products. They may aim for brand names like Carla Zampatti and Valentino. (Tanner, J Raymond, M 2012) Though the lower class will focus more on necessities and focus on buying one nice outfit, but then spend more on food and their home (Boundless.com, n.d.).

E.g.: If we compare the higher class and lower class in buying cars. The higher class have more money to spend, they think about style, brand, comfort, safety and anything that heightens their status. This might make them choose an Audi. But the lower class have less money to spend so need to focus on what’s most important. They’ll focus greater on safety and reliability, so they may end up buying an older Toyota Camry.

Product involvement

People’s lifestyle comes into play especially when they come to high involvement products. These products carry high risk, are complex or have high price tags. (Friesner, T 2014) They may be a car, home or insurance policy (Tanner, J Raymond, M 2012) lifestyle comes into play here. Take for example buying a home. Some people might be outdoorsy, love gardening and want quiet. Whereas another couple may love fresh air, need a medium sized home and love the beach. Each will go through an extensive problem-solving process in order to find their home. The first person might find a farm, and the other a beach shack. Everything a consumer buys will reflect their lifestyle in some shape or form.

Activities

The activities people undertake vitally determines how their money will be spent. For example: if a person is dedicated to the gym and works in a gym, then they’re likely to spend most of their money on gym clothes, weights, exercise machines and healthy food.

For me I go to the gym a couple of times a week and work at David Jones. So, part of my wardrobe consists of gym clothes, then the rest is black clothes for working, or clothes that I’ve purchased from work. Which I think a lot of people who work in retail could relate to.

Self-image

Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q13) Explain the economic circumstances of consumer buying behaviour.

A13) The economic environment comprises of outside elements in a business market and the more extensive economy that can impact a business. You can separate the economic environment into the microeconomic environment, which influences business dynamic -, for example, singular activities of firms and shoppers - and the macroeconomic environment, which influences a whole economy and the entirety of its members. Numerous economic elements go about as outside limitations on your business, which implies that you have nearly nothing, assuming any, and power over them. We will see both of these wide factors in more detail.

Macroeconomic impacts are wide economic components that either straightforwardly or in a roundabout way influence the whole economy and the entirety of its members, including your business. These variables incorporate such things as:

1. Interest rate
2. Taxes 
3. Inflation 
4. Currency exchange rate
5. Saving rates
6. Buyer confidence levels
7. Unemployment rate
8. Recession 
9. Depression

Microeconomic elements impact how your business will decide. In contrast to macroeconomic variables, these elements are undeniably less expansive in extension and don't really influence the whole economy all in all. Microeconomic variables affecting a business include:

• Market size
• Demand 
• Supply
• Competitors 
• Supplier 

Distribution chain, for example retail stores

Economic environment includes economic forces that have an effect on organization’s costs, revenues, and earnings on one hand, and clients’ buying powers and willingness to spend on the alternative hand.

Economic forces encompass a huge quantity of variables, which include:

• Economic increase                                                                                                                                
• Fee Interest rates                                                                                                                                            
• Inflation fee                                                                                                                                                       
• Functioning of inventory markets and commodity markets                                                                         
• Industrial and agricultural regulations                                                                                                
• Fiscal and economic regulations                                                                                                            
• Export-import regulations                                                                                                                   
• Liberalization, globalization and privatization processes                                                                   
• Government’s long-time period making plans and funding in infrastructural centers

Income generation:   The sample of earnings era in rural regions primarily based totally on agriculture is seasonal and notably unreliable in contrast to the constant month-to-month earnings in the city regions. This created a intake sample this is pretty different from the city.  

1. By sale of agricultural produce.                                                                                                                        
2. By sale of animal produce.                                                                                                                     
3. By provider –Rendered with the aid of using teacher, medical doctor or nurse.                                     
4. By hobby on funding Government subsidies and presents.                                                                
5. By loan of residences and gold.                                                                                                                                
6. By charities and donations.                                                                                                                                               

By labour and wages –Laborers do jobs in creation of roads, bridges and homes.   Income of Rural Sector is growing at a extensive fee. Percentage of Very Rich, Consuming Class, and Climbers are growing while Aspirants and Destitute are   declining.

The shape of Rural Income depicts the subsequent trends:  

• On the earnings ladder, the pinnacle slots are occupied with the aid of using the non-farm quarter, while the farmer is on the third place and salary earner is at the lowest.
• The maximum in line with capita earnings in rural comes from the formal section of the non-farm quarter at Rs. 19514 that's better than the city in line with capita earnings at Rs. 19407.  

Expenditure pattern: Per capita intake expenditure in rural has extended 4 instances over closing 20 years. Rural spending in non-meals items is growing; out of a complete in line with capita spending of Rs.486, about 40% is spent on non-meals items. This indicates an encouraging fashion for client durables and non-durables (non -meals item). Analysing the intake styles of non-meals items of rural purchasers, we discover that the principal percentage of spending is going to clothing, clinical offerings and gasoline wishes, while city purchasers spend tons extra on rentals, schooling and conveyance.

Rural demand and consumption: Lower degree of schooling in rural quarter (about 60% of the populace lies beneath the centre schooling bracket) result in little or low call for more than a few merchandises which include literacy books, magazines, notebooks, pen/pencils, drawing instruments, calculators, virtual diaries, computers, and so on. But change is taking location due to the fact the literacy maintains the agricultural quarter has risen 23% over the past 20 years. This has contributed significantly to a development in the socio-economic popularity of the human beings. With this increase, the call for academic merchandise has extended. Overall, merchandise and logo consciousness have extended and rural purchasers have emerged as extra mature in buy selection.  

Rural market Index: Rural market index Thomson Rural Market Index Market Research is finished with the aid of using marketplace studies agencies and specialists in the discipline to offer information approximately intake styles, buy possibilities and rural marketplace ability. Hindustan Thompson Associates Limited, a marketplace studies and marketing and marketing organization in India studied the agricultural regions in India in year 1972. HTAL made its record in 1972 and advanced normal signs of rural marketplace ability in India. These are referred to as Thompson Rural Market Index. HTAL compiled information of 335 districts primarily based totally on 26 measurable scale variables. HTAL collated information concerning agricultural info of output in every district. Indicators taken into consideration in growing TRMI are: Agricultural Laborers, Gross Cropped Area Gross Irrigated Area, and Area beneath non meals crops, Pump sets, Fertilizer intake Tractors, Rural Credit, Rural Deposits, Villages electrified.

Land use pattern: Land Management is gaining significance due to growing needs on land and increase of the populace.   Forest region and cultivable land probabilities have extended. Forest has extended from a   degree of 14% to 22%. Area sown has extended from 20% to 43%. Area now no longer to be had for cultivation has decreased. Change of mind-set of common guy in the direction of ecology, growing greenery and that each rectangular meter of land is used gainfully. Multi-storied homes shape a part of the city ‘s landscape.  

Q14) What are the social factors affecting consumer behaviour?

A14) The social factors affecting consumer behaviour are-

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Q15) What are the cultural factors affecting consumer behaviour?

A15) There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Q16) What are the technological factors affecting consumer behaviour?

A16) The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace.

Q17) How income influence the buying behaviour of a person?

A17) Income has the ability to influence the buying behaviour of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes.

Income is a very important factor that affects the buying decisions and consumer behaviour of people. 

Across different income levels, the difference in product choices and buying patterns can easily be marked. A person in the middle class makes his buying decisions based on utility. However, someone from the upper class would want style, design and special features while making a purchase.

The channels for the marketing of luxury items are different from those for the ordinary ones. Luxury items are mostly marketed through luxury magazines.

The level of income determines what kind of products someone regularly purchases. A buyer with higher disposable income will spend more on luxury or lifestyle items. People with higher disposable income also spend more on vacations and tours. Customer service and after sales support also become important factors when it comes to big ticket purchases.

Q18) Explain the Role of Consumer’s Self-Concept in Consumer Behaviour?

A18) If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al. Defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

Q19) Explain Brand Personality as a Medium to Establish Consumer.

A19) Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q20) Explain the Meaning of Brands and Consumer Decision Making.

A20) According to Tucker, consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

Unit 2

Rural Consumer Behaviour

Q1) What is Consumer decision making?

A1) Consumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumers buying behaviour based on the degree of buyer involvement and the degree of differences among brands.

Q2) What is Complex buying behaviour model?

A2) Consumers engage in complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand ‘s features, use print media to describe the brand ‘s benefits and motivate store sales personnel and the buyer ‘s acquaintances to influence the final brand choice.

For e.g., Automobile, two-wheeler, consumer durable.

Q3) What is Dissonance-reducing buying behaviour model?

A3) Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying.

After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favourable things about other carpets. Thus, marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice.

Q4) What is Habitual buying behaviour model?

A4) Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt. Consumers have little involvement in the product category. They go to the store and reach for the brand. If they keep reaching for the same brand, it is out of habit, not strong brand loyalty. It happens with most low-cost, frequently purchased products. Marketers find it effective to use ad repetition, price and sales promotion to stimulate product trial.

Q5) What is Variety-seeking buying behaviour

A5) Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behaviour by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples.

Q6) What are the factors affecting consumer behaviour?

A6) The different factors that have an effect on shopping for behaviour of in rural India are:

Environment of the client: The environment or the environment wherein the consumer leaves have a totally robust impact at the consumer conduct. E.g., electrification, water deliver results call for durables.

Geographic impact: The geographic place wherein the agricultural client is placed additionally speaks approximately the idea system of the client. For instance, villages in south India take delivery of era faster than in different elements of India. Thus, HMT sells extra winding watches in the north even as they promote extra quartz watches in the south.

Influence of career: The land proprietors and provider should buy extra of category2 &category3 durables than agricultural laborers.

Place of buy: Company ‘s wants to get right of entry to the impact of store on both consumers at village shops.

Creative use of product: The look at of product and affords signs to the organization on the want for schooling and additionally for brand new product ideas. E.g., Godrej hair dye is getting used as an ache to the colour horns of ox.  

Social Factor 

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Cultural Factor

There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Technological Factor

The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace  

Lifestyle

Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Personality

Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes
3. Competitive Positioning.

Q7) What are the characteristics of rural consumer according to age and stages of life cycle?

A7) Large and scattered marketplace: According to 2011 census rural populace is 68.4% (2001 – 72%) of overall populace and its miles scattered over an extensive variety of geographical region. With regard to length, nevertheless extra than 2/3 of the populace lives in rural India and a hundred and seventy million family purchasers. The sheer length is identical to US, UK, Germany, France, Japan and Italy together. To reach 600000+ villages is honestly a challenge. A few new rural distribution and procurement fashions were innovated with the aid of using ITC e-chaupal and HUL Project Shakti.

Diverse socio-economic background: This is different in different element of the United States and brings variety in rural markets.

Changing demand pattern: Demand sample of rural consumer is speedy converting because of boom in earnings and credit score centres supplied with the aid of using the banks like ‘kisan credit score card’. In phrases of India’s GDP, fifty-four%, identical to that of Switzerland, is contributed with the aid of using rural India. In India’s month-to-month expenditure, approximately 55% comes from rural India. Non-meals spending is identical to that of city India. Consumerism is really on an upward thrust and the spending on life-style merchandise is emerging. Consumer durables marketplace is developing at 10% in line with annum in city regions, however the increase fee in rural India is 25%. Of the 40% of the sale in automobile enterprise comes from rural India.

Major earnings come from agriculture: About 60% of the agricultural earnings are from agriculture and as a result the call for client items is excessive throughout harvesting season.

Saving conduct: Rural client is now having saving conduct because of the efforts of co­operative and industrial banks. Presently extra than 33% of India’s financial savings comes from rural India.

Traditional outlook: Rural consumer values vintage customs and traditions and are inquisitive about deriving centre enjoy the product. They consider in price-overall performance paradigm. It is due to this purpose that ‘Ghari’ detergent has replaced ‘Wheel’ because the no. 1 laundry logo.

Low standard of living: Rural client have low standard of living due to low literacy, low in line with capita earnings and social backwardness. However, more or less 34% of FMCG manufacturers’ overall income comes from rural regions.

Infrastructure centres’: Facilities like roads, warehouses, communication machine, and so on are insufficient in rural regions. Hence, bodily distribution turns into steeply-priced affair. Electrification is but now no longer entire in all of the villages. The Literacy fee in rural regions has long passed up from 58.7% in 2001 to 68.9% in 2011. During this era the development in literacy fee in rural region is two times that of city regions (rural: 10.2% and concrete: 5.1%). Improvement in woman literacy is extra.

Q8) How occupation influence the buying behaviour of a person?

A8) Agricultural and allied activities are the principal career for the agricultural human beings. An allied interest consists of Horticulture, Forestry, Fishery, Animal Husbandry (dairy, poultry, and goat), and Floriculture and so on, the regular wishes of the villagers also are met with the aid of using many different sorts of occupations. In rural quarter, Agri-primarily based totally career may be different types.

The occupations which may be commonly visible in the villages are:

1. Farm laborer, Milkman, Washer man, Pot maker, Barber, Carpenter, and Priest
2. Other rural career which might be non-agricultural and aid agricultural necessities and the agricultural human beings of their everyday existence are:
3. Village medical doctor, Policemen, Traditional village nurse, Anganwadi people, Teacher, Peon, Grocer, Mechanic, Cyber Cafe owner, Venders, Agricultural specialists, Electricians and so on.

Q9) What is consumer buying process?

A9) The consumer buying process in retail and ecommerce comes down to a single decision to add an item to their cart–but that’s just the tip of the iceberg. Plenty of things are going on behind the scenes. Usually, a lot of thought and actions beneath that decision are in place to encourage customers to complete a purchase.

With the exception of impulse buys, consumers do a considerable amount of research before deciding to buy. And in today’s marketplace, the brands that thrive are the ones that get in front of shoppers long before they decide to make the purchase.

1. Problem Recognition

The consumer buying process starts off with the customer having a problem that can be solved by a product or service. This manifests itself in a number of ways.

In some cases, the shopper starts off feeling the symptoms of an issue. For example, an office worker might find their computer is slowing down, but they’re not sure of the exact problem or how to solve it.

In other cases, the problem is straighter cut. Say a woman develops blisters after wearing a pair of high heels for a full day. She immediately recognizes the problem and knows she needs something (e.g., anti-blister products or new shoes) to fix it.

There are times when consumers discover a problem they didn’t know existed. This might occur in a situation like when a driver sees an auto insurance ad and realizes they’re overpaying. As a brand marketer, you need to understand when and how the need for your product or service arises.

2.Information Gathering:

It might sound simple, but once the consumer recognizes they have a problem (or symptom of it), they proceed to research to solve the issue. So, the office worker who has a slow computer might start looking for software improvements to speed things up. And the driver who’s overpaying for insurance, they’ll start searching for a way to lower their payments.

3.Optimize Your Product Descriptions:

Write unique and compelling product descriptions that accurately describe your merchandise while enticing people to buy. See to it that your descriptions contain the right keywords and write your copy in a tone and style that’s relatable to your audience.

In terms of formatting, make the text scannable by using shorter paragraphs, headers and bullet points.

4.Evaluation of Alternatives:

Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice, then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by “framing” alternatives.

5.Purchase decision:

Choose buying alternative, includes product, package, store, method of purchase etc.

6.Purchase:

May differ from decision, time lapse between 4 & 5, product availability.

7.Post-Purchase Evaluation – outcome:

Satisfaction or dissatisfaction. Cognitive Dissonance, have you made the right decision? This can be reduced by warranties, after sales communication etc.

After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

Q10) Explain Brand personality and Brand belief.

A10) Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes

3.   Competitive Positioning

A. Brand Personality as a Vehicle to Express Functional Benefits of a Brand - The functional benefits of a brand can be promoted through brand personality. Therefore, brand personality serves as a vehicle for representing and indicating product-related utilitarian benefits and brand attributes. The functional benefits of a brand become much more persuasive when they are expressed by the brand’s personality. It is easier to create a personality which implies the functional benefits than to communicate these benefits directly. Additionally, a brand personality is not easy to copy. Representing brand’s functional benefits by its personality is also called information chunking. Information chunks compile information such as brand, price and quality and play a vital role in the consumer’s purchase decision. Hence brand’s personality serves as an information chunk for the functional benefits of the product. However, the representation of functional benefits by brand’s personality is indirectly associated to the consumer’s behaviour by strengthening the product’s attributes.

B. Brand Personality as a Reflective Symbol of the Self of the Consumer- Consumers use brands as medium to express their self-identity. This identity can be either their actual identity or a preferred or ideal self which they desire. Another important way, in which people express their personality, is their consumption behaviour and the selection of certain brands. Brands thereby function as a reflective symbol of the self of the consumer.

C. The Meaning of Brands and Consumer Decision Making-   According to Tucker , consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

D. The Role of Consumer’s Self-Concept in Consumer Behaviour-  If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al.defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

E. Congruence of Consumer’s Personality and Brand’s Personality-  According to Sirgy , consumer desire for a congruence of his personality and the brand’s personality with three motives viz. The self-esteem motive, the self-consistency motive and the self-knowledge motive. Self-esteem refers to an individual’s feelings and thinking about him and it is related to self-evaluation. Various factors like the interaction with others, personal experiences of success or failure or heredity influence self-esteem. Self-esteem is connected to the reflected appraisal of others and can be defined as a prism through which an individual views the world. Self-esteem is an important aspect of personality as it affects our goal setting, the selection of preferred environments and the stress, anxiety and depression one experiences in various situations. Moreover, self-esteem also affects people’s self-efficacy which refers to people’s beliefs about their ability to manage events that affect their lives. People with a higher self-esteem are likely to have a higher self-efficacy than people with a low self-esteem. In the similar manner, the self-esteem motive can be defined as the individual’s motivational tendency to involve in information processing that may direct one to perceive oneself in a positive light. This implies that in order to enhance their self-concepts or self-esteem people approach their desired images they have for themselves. These desired images are expressed by the consumer’s ideal self, which serves as a standard image. Therefore, self-esteem is a motivational component to recognize our ideal self-concept. According to Sirgy, self-esteem is a conscious opinion about the relationship of one’s actual self to the ideal self or social self. This relationship between real and ideal self and self-esteem as evaluative component can be elucidated by the self-discrepancy theory which states that a high discrepancy between real and ideal generates low self-esteem. The need for social approval is another motive which is strongly associated with the self-esteem motive. This is linked to the individual’s social or ideal social self. With a view to create a particular image in the minds of others, people thus persistently try to maintain and modify their public self in a way congruent to their ideal self-image.

F. Brand Personality as a Medium to Establish Consumer-   Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q11) What is self-image?

A11) Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q12) What do you mean by Lifestyle? Give examples.

A12) Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Lifestyle is an important aspect when looking at consumer choices. Just because there may be two women with similar age and income, does not mean they’re likely to purchase the same products (Hickey, M Nader, T Williams, T 2012). Below will be some examples of why lifestyle is an important aspect to consider.

Social status

Social status is one of the key elements to how and why people buy certain products and services. It affects the quality and quantity of what people buy (boundless.com n.d.). The rich have more money to spend on higher quality products. They may aim for brand names like Carla Zampatti and Valentino. (Tanner, J Raymond, M 2012) Though the lower class will focus more on necessities and focus on buying one nice outfit, but then spend more on food and their home (Boundless.com, n.d.).

E.g.: If we compare the higher class and lower class in buying cars. The higher class have more money to spend, they think about style, brand, comfort, safety and anything that heightens their status. This might make them choose an Audi. But the lower class have less money to spend so need to focus on what’s most important. They’ll focus greater on safety and reliability, so they may end up buying an older Toyota Camry.

Product involvement

People’s lifestyle comes into play especially when they come to high involvement products. These products carry high risk, are complex or have high price tags. (Friesner, T 2014) They may be a car, home or insurance policy (Tanner, J Raymond, M 2012) lifestyle comes into play here. Take for example buying a home. Some people might be outdoorsy, love gardening and want quiet. Whereas another couple may love fresh air, need a medium sized home and love the beach. Each will go through an extensive problem-solving process in order to find their home. The first person might find a farm, and the other a beach shack. Everything a consumer buys will reflect their lifestyle in some shape or form.

Activities

The activities people undertake vitally determines how their money will be spent. For example: if a person is dedicated to the gym and works in a gym, then they’re likely to spend most of their money on gym clothes, weights, exercise machines and healthy food.

For me I go to the gym a couple of times a week and work at David Jones. So, part of my wardrobe consists of gym clothes, then the rest is black clothes for working, or clothes that I’ve purchased from work. Which I think a lot of people who work in retail could relate to.

Self-image

Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q13) Explain the economic circumstances of consumer buying behaviour.

A13) The economic environment comprises of outside elements in a business market and the more extensive economy that can impact a business. You can separate the economic environment into the microeconomic environment, which influences business dynamic -, for example, singular activities of firms and shoppers - and the macroeconomic environment, which influences a whole economy and the entirety of its members. Numerous economic elements go about as outside limitations on your business, which implies that you have nearly nothing, assuming any, and power over them. We will see both of these wide factors in more detail.

Macroeconomic impacts are wide economic components that either straightforwardly or in a roundabout way influence the whole economy and the entirety of its members, including your business. These variables incorporate such things as:

1. Interest rate
2. Taxes 
3. Inflation 
4. Currency exchange rate
5. Saving rates
6. Buyer confidence levels
7. Unemployment rate
8. Recession 
9. Depression

Microeconomic elements impact how your business will decide. In contrast to macroeconomic variables, these elements are undeniably less expansive in extension and don't really influence the whole economy all in all. Microeconomic variables affecting a business include:

• Market size
• Demand 
• Supply
• Competitors 
• Supplier 

Distribution chain, for example retail stores

Economic environment includes economic forces that have an effect on organization’s costs, revenues, and earnings on one hand, and clients’ buying powers and willingness to spend on the alternative hand.

Economic forces encompass a huge quantity of variables, which include:

• Economic increase                                                                                                                                
• Fee Interest rates                                                                                                                                            
• Inflation fee                                                                                                                                                       
• Functioning of inventory markets and commodity markets                                                                         
• Industrial and agricultural regulations                                                                                                
• Fiscal and economic regulations                                                                                                            
• Export-import regulations                                                                                                                   
• Liberalization, globalization and privatization processes                                                                   
• Government’s long-time period making plans and funding in infrastructural centers

Income generation:   The sample of earnings era in rural regions primarily based totally on agriculture is seasonal and notably unreliable in contrast to the constant month-to-month earnings in the city regions. This created a intake sample this is pretty different from the city.  

1. By sale of agricultural produce.                                                                                                                        
2. By sale of animal produce.                                                                                                                     
3. By provider –Rendered with the aid of using teacher, medical doctor or nurse.                                     
4. By hobby on funding Government subsidies and presents.                                                                
5. By loan of residences and gold.                                                                                                                                
6. By charities and donations.                                                                                                                                               

By labour and wages –Laborers do jobs in creation of roads, bridges and homes.   Income of Rural Sector is growing at a extensive fee. Percentage of Very Rich, Consuming Class, and Climbers are growing while Aspirants and Destitute are   declining.

The shape of Rural Income depicts the subsequent trends:  

• On the earnings ladder, the pinnacle slots are occupied with the aid of using the non-farm quarter, while the farmer is on the third place and salary earner is at the lowest.
• The maximum in line with capita earnings in rural comes from the formal section of the non-farm quarter at Rs. 19514 that's better than the city in line with capita earnings at Rs. 19407.  

Expenditure pattern: Per capita intake expenditure in rural has extended 4 instances over closing 20 years. Rural spending in non-meals items is growing; out of a complete in line with capita spending of Rs.486, about 40% is spent on non-meals items. This indicates an encouraging fashion for client durables and non-durables (non -meals item). Analysing the intake styles of non-meals items of rural purchasers, we discover that the principal percentage of spending is going to clothing, clinical offerings and gasoline wishes, while city purchasers spend tons extra on rentals, schooling and conveyance.

Rural demand and consumption: Lower degree of schooling in rural quarter (about 60% of the populace lies beneath the centre schooling bracket) result in little or low call for more than a few merchandises which include literacy books, magazines, notebooks, pen/pencils, drawing instruments, calculators, virtual diaries, computers, and so on. But change is taking location due to the fact the literacy maintains the agricultural quarter has risen 23% over the past 20 years. This has contributed significantly to a development in the socio-economic popularity of the human beings. With this increase, the call for academic merchandise has extended. Overall, merchandise and logo consciousness have extended and rural purchasers have emerged as extra mature in buy selection.  

Rural market Index: Rural market index Thomson Rural Market Index Market Research is finished with the aid of using marketplace studies agencies and specialists in the discipline to offer information approximately intake styles, buy possibilities and rural marketplace ability. Hindustan Thompson Associates Limited, a marketplace studies and marketing and marketing organization in India studied the agricultural regions in India in year 1972. HTAL made its record in 1972 and advanced normal signs of rural marketplace ability in India. These are referred to as Thompson Rural Market Index. HTAL compiled information of 335 districts primarily based totally on 26 measurable scale variables. HTAL collated information concerning agricultural info of output in every district. Indicators taken into consideration in growing TRMI are: Agricultural Laborers, Gross Cropped Area Gross Irrigated Area, and Area beneath non meals crops, Pump sets, Fertilizer intake Tractors, Rural Credit, Rural Deposits, Villages electrified.

Land use pattern: Land Management is gaining significance due to growing needs on land and increase of the populace.   Forest region and cultivable land probabilities have extended. Forest has extended from a   degree of 14% to 22%. Area sown has extended from 20% to 43%. Area now no longer to be had for cultivation has decreased. Change of mind-set of common guy in the direction of ecology, growing greenery and that each rectangular meter of land is used gainfully. Multi-storied homes shape a part of the city ‘s landscape.  

Q14) What are the social factors affecting consumer behaviour?

A14) The social factors affecting consumer behaviour are-

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Q15) What are the cultural factors affecting consumer behaviour?

A15) There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Q16) What are the technological factors affecting consumer behaviour?

A16) The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace.

Q17) How income influence the buying behaviour of a person?

A17) Income has the ability to influence the buying behaviour of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes.

Income is a very important factor that affects the buying decisions and consumer behaviour of people. 

Across different income levels, the difference in product choices and buying patterns can easily be marked. A person in the middle class makes his buying decisions based on utility. However, someone from the upper class would want style, design and special features while making a purchase.

The channels for the marketing of luxury items are different from those for the ordinary ones. Luxury items are mostly marketed through luxury magazines.

The level of income determines what kind of products someone regularly purchases. A buyer with higher disposable income will spend more on luxury or lifestyle items. People with higher disposable income also spend more on vacations and tours. Customer service and after sales support also become important factors when it comes to big ticket purchases.

Q18) Explain the Role of Consumer’s Self-Concept in Consumer Behaviour?

A18) If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al. Defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

Q19) Explain Brand Personality as a Medium to Establish Consumer.

A19) Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q20) Explain the Meaning of Brands and Consumer Decision Making.

A20) According to Tucker, consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

Unit 2

Rural Consumer Behaviour

Q1) What is Consumer decision making?

A1) Consumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumers buying behaviour based on the degree of buyer involvement and the degree of differences among brands.

Q2) What is Complex buying behaviour model?

A2) Consumers engage in complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand ‘s features, use print media to describe the brand ‘s benefits and motivate store sales personnel and the buyer ‘s acquaintances to influence the final brand choice.

For e.g., Automobile, two-wheeler, consumer durable.

Q3) What is Dissonance-reducing buying behaviour model?

A3) Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying.

After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favourable things about other carpets. Thus, marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice.

Q4) What is Habitual buying behaviour model?

A4) Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt. Consumers have little involvement in the product category. They go to the store and reach for the brand. If they keep reaching for the same brand, it is out of habit, not strong brand loyalty. It happens with most low-cost, frequently purchased products. Marketers find it effective to use ad repetition, price and sales promotion to stimulate product trial.

Q5) What is Variety-seeking buying behaviour

A5) Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behaviour by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples.

Q6) What are the factors affecting consumer behaviour?

A6) The different factors that have an effect on shopping for behaviour of in rural India are:

Environment of the client: The environment or the environment wherein the consumer leaves have a totally robust impact at the consumer conduct. E.g., electrification, water deliver results call for durables.

Geographic impact: The geographic place wherein the agricultural client is placed additionally speaks approximately the idea system of the client. For instance, villages in south India take delivery of era faster than in different elements of India. Thus, HMT sells extra winding watches in the north even as they promote extra quartz watches in the south.

Influence of career: The land proprietors and provider should buy extra of category2 &category3 durables than agricultural laborers.

Place of buy: Company ‘s wants to get right of entry to the impact of store on both consumers at village shops.

Creative use of product: The look at of product and affords signs to the organization on the want for schooling and additionally for brand new product ideas. E.g., Godrej hair dye is getting used as an ache to the colour horns of ox.  

Social Factor 

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Cultural Factor

There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Technological Factor

The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace  

Lifestyle

Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Personality

Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes
3. Competitive Positioning.

Q7) What are the characteristics of rural consumer according to age and stages of life cycle?

A7) Large and scattered marketplace: According to 2011 census rural populace is 68.4% (2001 – 72%) of overall populace and its miles scattered over an extensive variety of geographical region. With regard to length, nevertheless extra than 2/3 of the populace lives in rural India and a hundred and seventy million family purchasers. The sheer length is identical to US, UK, Germany, France, Japan and Italy together. To reach 600000+ villages is honestly a challenge. A few new rural distribution and procurement fashions were innovated with the aid of using ITC e-chaupal and HUL Project Shakti.

Diverse socio-economic background: This is different in different element of the United States and brings variety in rural markets.

Changing demand pattern: Demand sample of rural consumer is speedy converting because of boom in earnings and credit score centres supplied with the aid of using the banks like ‘kisan credit score card’. In phrases of India’s GDP, fifty-four%, identical to that of Switzerland, is contributed with the aid of using rural India. In India’s month-to-month expenditure, approximately 55% comes from rural India. Non-meals spending is identical to that of city India. Consumerism is really on an upward thrust and the spending on life-style merchandise is emerging. Consumer durables marketplace is developing at 10% in line with annum in city regions, however the increase fee in rural India is 25%. Of the 40% of the sale in automobile enterprise comes from rural India.

Major earnings come from agriculture: About 60% of the agricultural earnings are from agriculture and as a result the call for client items is excessive throughout harvesting season.

Saving conduct: Rural client is now having saving conduct because of the efforts of co­operative and industrial banks. Presently extra than 33% of India’s financial savings comes from rural India.

Traditional outlook: Rural consumer values vintage customs and traditions and are inquisitive about deriving centre enjoy the product. They consider in price-overall performance paradigm. It is due to this purpose that ‘Ghari’ detergent has replaced ‘Wheel’ because the no. 1 laundry logo.

Low standard of living: Rural client have low standard of living due to low literacy, low in line with capita earnings and social backwardness. However, more or less 34% of FMCG manufacturers’ overall income comes from rural regions.

Infrastructure centres’: Facilities like roads, warehouses, communication machine, and so on are insufficient in rural regions. Hence, bodily distribution turns into steeply-priced affair. Electrification is but now no longer entire in all of the villages. The Literacy fee in rural regions has long passed up from 58.7% in 2001 to 68.9% in 2011. During this era the development in literacy fee in rural region is two times that of city regions (rural: 10.2% and concrete: 5.1%). Improvement in woman literacy is extra.

Q8) How occupation influence the buying behaviour of a person?

A8) Agricultural and allied activities are the principal career for the agricultural human beings. An allied interest consists of Horticulture, Forestry, Fishery, Animal Husbandry (dairy, poultry, and goat), and Floriculture and so on, the regular wishes of the villagers also are met with the aid of using many different sorts of occupations. In rural quarter, Agri-primarily based totally career may be different types.

The occupations which may be commonly visible in the villages are:

1. Farm laborer, Milkman, Washer man, Pot maker, Barber, Carpenter, and Priest
2. Other rural career which might be non-agricultural and aid agricultural necessities and the agricultural human beings of their everyday existence are:
3. Village medical doctor, Policemen, Traditional village nurse, Anganwadi people, Teacher, Peon, Grocer, Mechanic, Cyber Cafe owner, Venders, Agricultural specialists, Electricians and so on.

Q9) What is consumer buying process?

A9) The consumer buying process in retail and ecommerce comes down to a single decision to add an item to their cart–but that’s just the tip of the iceberg. Plenty of things are going on behind the scenes. Usually, a lot of thought and actions beneath that decision are in place to encourage customers to complete a purchase.

With the exception of impulse buys, consumers do a considerable amount of research before deciding to buy. And in today’s marketplace, the brands that thrive are the ones that get in front of shoppers long before they decide to make the purchase.

1. Problem Recognition

The consumer buying process starts off with the customer having a problem that can be solved by a product or service. This manifests itself in a number of ways.

In some cases, the shopper starts off feeling the symptoms of an issue. For example, an office worker might find their computer is slowing down, but they’re not sure of the exact problem or how to solve it.

In other cases, the problem is straighter cut. Say a woman develops blisters after wearing a pair of high heels for a full day. She immediately recognizes the problem and knows she needs something (e.g., anti-blister products or new shoes) to fix it.

There are times when consumers discover a problem they didn’t know existed. This might occur in a situation like when a driver sees an auto insurance ad and realizes they’re overpaying. As a brand marketer, you need to understand when and how the need for your product or service arises.

2.Information Gathering:

It might sound simple, but once the consumer recognizes they have a problem (or symptom of it), they proceed to research to solve the issue. So, the office worker who has a slow computer might start looking for software improvements to speed things up. And the driver who’s overpaying for insurance, they’ll start searching for a way to lower their payments.

3.Optimize Your Product Descriptions:

Write unique and compelling product descriptions that accurately describe your merchandise while enticing people to buy. See to it that your descriptions contain the right keywords and write your copy in a tone and style that’s relatable to your audience.

In terms of formatting, make the text scannable by using shorter paragraphs, headers and bullet points.

4.Evaluation of Alternatives:

Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice, then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by “framing” alternatives.

5.Purchase decision:

Choose buying alternative, includes product, package, store, method of purchase etc.

6.Purchase:

May differ from decision, time lapse between 4 & 5, product availability.

7.Post-Purchase Evaluation – outcome:

Satisfaction or dissatisfaction. Cognitive Dissonance, have you made the right decision? This can be reduced by warranties, after sales communication etc.

After eating an Indian meal, you may think that really you wanted a Chinese meal instead.

Q10) Explain Brand personality and Brand belief.

A10) Expression of the centre values & traits of a logo with emphasis on human persona developments e.g., friendly, sensible, innovative Process of remodelling logo into someone or humanizing the logo. Acts as logo differentiator &gives sustainable aggressive gain. Demonstrates a Brand ‘s Passion, Expertise & remaining purpose Touches & energies the incentive of the focused Customer Segments, Projects the Brand ‘s Core Values and Beliefs, describes how consumers can count on to be treated. Brand Personality is the voice at the back of brand ‘s:

1. Values
2. Functional Attributes

3.   Competitive Positioning

A. Brand Personality as a Vehicle to Express Functional Benefits of a Brand - The functional benefits of a brand can be promoted through brand personality. Therefore, brand personality serves as a vehicle for representing and indicating product-related utilitarian benefits and brand attributes. The functional benefits of a brand become much more persuasive when they are expressed by the brand’s personality. It is easier to create a personality which implies the functional benefits than to communicate these benefits directly. Additionally, a brand personality is not easy to copy. Representing brand’s functional benefits by its personality is also called information chunking. Information chunks compile information such as brand, price and quality and play a vital role in the consumer’s purchase decision. Hence brand’s personality serves as an information chunk for the functional benefits of the product. However, the representation of functional benefits by brand’s personality is indirectly associated to the consumer’s behaviour by strengthening the product’s attributes.

B. Brand Personality as a Reflective Symbol of the Self of the Consumer- Consumers use brands as medium to express their self-identity. This identity can be either their actual identity or a preferred or ideal self which they desire. Another important way, in which people express their personality, is their consumption behaviour and the selection of certain brands. Brands thereby function as a reflective symbol of the self of the consumer.

C. The Meaning of Brands and Consumer Decision Making-   According to Tucker , consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.

D. The Role of Consumer’s Self-Concept in Consumer Behaviour-  If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al.defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

E. Congruence of Consumer’s Personality and Brand’s Personality-  According to Sirgy , consumer desire for a congruence of his personality and the brand’s personality with three motives viz. The self-esteem motive, the self-consistency motive and the self-knowledge motive. Self-esteem refers to an individual’s feelings and thinking about him and it is related to self-evaluation. Various factors like the interaction with others, personal experiences of success or failure or heredity influence self-esteem. Self-esteem is connected to the reflected appraisal of others and can be defined as a prism through which an individual views the world. Self-esteem is an important aspect of personality as it affects our goal setting, the selection of preferred environments and the stress, anxiety and depression one experiences in various situations. Moreover, self-esteem also affects people’s self-efficacy which refers to people’s beliefs about their ability to manage events that affect their lives. People with a higher self-esteem are likely to have a higher self-efficacy than people with a low self-esteem. In the similar manner, the self-esteem motive can be defined as the individual’s motivational tendency to involve in information processing that may direct one to perceive oneself in a positive light. This implies that in order to enhance their self-concepts or self-esteem people approach their desired images they have for themselves. These desired images are expressed by the consumer’s ideal self, which serves as a standard image. Therefore, self-esteem is a motivational component to recognize our ideal self-concept. According to Sirgy, self-esteem is a conscious opinion about the relationship of one’s actual self to the ideal self or social self. This relationship between real and ideal self and self-esteem as evaluative component can be elucidated by the self-discrepancy theory which states that a high discrepancy between real and ideal generates low self-esteem. The need for social approval is another motive which is strongly associated with the self-esteem motive. This is linked to the individual’s social or ideal social self. With a view to create a particular image in the minds of others, people thus persistently try to maintain and modify their public self in a way congruent to their ideal self-image.

F. Brand Personality as a Medium to Establish Consumer-   Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q11) What is self-image?

A11) Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q12) What do you mean by Lifestyle? Give examples.

A12) Rural Consumers choose to paintings Hard themselves –Machines to be bought on the premise of blessings supplied and now no longer on the premise of consolation and comfort. Strong Family ties and recognizes for Family Values Likes to play Cards and Hangs out at Choupal. Lifestyle of rural client Rural Consumer could be very spiritual –Dabur advanced spiritual calendars and gave Hanuman Chalisa alongside their merchandise. Ganga fabricated from milk and holy water of Ganga. Govinda as a brand ambassador.  

Lifestyle is an important aspect when looking at consumer choices. Just because there may be two women with similar age and income, does not mean they’re likely to purchase the same products (Hickey, M Nader, T Williams, T 2012). Below will be some examples of why lifestyle is an important aspect to consider.

Social status

Social status is one of the key elements to how and why people buy certain products and services. It affects the quality and quantity of what people buy (boundless.com n.d.). The rich have more money to spend on higher quality products. They may aim for brand names like Carla Zampatti and Valentino. (Tanner, J Raymond, M 2012) Though the lower class will focus more on necessities and focus on buying one nice outfit, but then spend more on food and their home (Boundless.com, n.d.).

E.g.: If we compare the higher class and lower class in buying cars. The higher class have more money to spend, they think about style, brand, comfort, safety and anything that heightens their status. This might make them choose an Audi. But the lower class have less money to spend so need to focus on what’s most important. They’ll focus greater on safety and reliability, so they may end up buying an older Toyota Camry.

Product involvement

People’s lifestyle comes into play especially when they come to high involvement products. These products carry high risk, are complex or have high price tags. (Friesner, T 2014) They may be a car, home or insurance policy (Tanner, J Raymond, M 2012) lifestyle comes into play here. Take for example buying a home. Some people might be outdoorsy, love gardening and want quiet. Whereas another couple may love fresh air, need a medium sized home and love the beach. Each will go through an extensive problem-solving process in order to find their home. The first person might find a farm, and the other a beach shack. Everything a consumer buys will reflect their lifestyle in some shape or form.

Activities

The activities people undertake vitally determines how their money will be spent. For example: if a person is dedicated to the gym and works in a gym, then they’re likely to spend most of their money on gym clothes, weights, exercise machines and healthy food.

For me I go to the gym a couple of times a week and work at David Jones. So, part of my wardrobe consists of gym clothes, then the rest is black clothes for working, or clothes that I’ve purchased from work. Which I think a lot of people who work in retail could relate to.

Self-image

Self-image is a strong aspect when thinking about how lifestyle affects purchases (Schiffman, L et al., 2014, pp.133). The way someone feels they should look will strongly affect what they buy. Take for example a mum who may not always eat the best but feels that they’re healthy and fit and enjoys coffee with the girls. This mums more likely to wear Lorna Jane. She can go from the gym or just home and go out, while feeling good about herself and staying stylish.

There are so many factors which can influence peoples buying habits, and lifestyle is definitely a strong one. How people want to look mixed with the amount of income they earn, defines how their spending habit form.

Q13) Explain the economic circumstances of consumer buying behaviour.

A13) The economic environment comprises of outside elements in a business market and the more extensive economy that can impact a business. You can separate the economic environment into the microeconomic environment, which influences business dynamic -, for example, singular activities of firms and shoppers - and the macroeconomic environment, which influences a whole economy and the entirety of its members. Numerous economic elements go about as outside limitations on your business, which implies that you have nearly nothing, assuming any, and power over them. We will see both of these wide factors in more detail.

Macroeconomic impacts are wide economic components that either straightforwardly or in a roundabout way influence the whole economy and the entirety of its members, including your business. These variables incorporate such things as:

1. Interest rate
2. Taxes 
3. Inflation 
4. Currency exchange rate
5. Saving rates
6. Buyer confidence levels
7. Unemployment rate
8. Recession 
9. Depression

Microeconomic elements impact how your business will decide. In contrast to macroeconomic variables, these elements are undeniably less expansive in extension and don't really influence the whole economy all in all. Microeconomic variables affecting a business include:

• Market size
• Demand 
• Supply
• Competitors 
• Supplier 

Distribution chain, for example retail stores

Economic environment includes economic forces that have an effect on organization’s costs, revenues, and earnings on one hand, and clients’ buying powers and willingness to spend on the alternative hand.

Economic forces encompass a huge quantity of variables, which include:

• Economic increase                                                                                                                                
• Fee Interest rates                                                                                                                                            
• Inflation fee                                                                                                                                                       
• Functioning of inventory markets and commodity markets                                                                         
• Industrial and agricultural regulations                                                                                                
• Fiscal and economic regulations                                                                                                            
• Export-import regulations                                                                                                                   
• Liberalization, globalization and privatization processes                                                                   
• Government’s long-time period making plans and funding in infrastructural centers

Income generation:   The sample of earnings era in rural regions primarily based totally on agriculture is seasonal and notably unreliable in contrast to the constant month-to-month earnings in the city regions. This created a intake sample this is pretty different from the city.  

1. By sale of agricultural produce.                                                                                                                        
2. By sale of animal produce.                                                                                                                     
3. By provider –Rendered with the aid of using teacher, medical doctor or nurse.                                     
4. By hobby on funding Government subsidies and presents.                                                                
5. By loan of residences and gold.                                                                                                                                
6. By charities and donations.                                                                                                                                               

By labour and wages –Laborers do jobs in creation of roads, bridges and homes.   Income of Rural Sector is growing at a extensive fee. Percentage of Very Rich, Consuming Class, and Climbers are growing while Aspirants and Destitute are   declining.

The shape of Rural Income depicts the subsequent trends:  

• On the earnings ladder, the pinnacle slots are occupied with the aid of using the non-farm quarter, while the farmer is on the third place and salary earner is at the lowest.
• The maximum in line with capita earnings in rural comes from the formal section of the non-farm quarter at Rs. 19514 that's better than the city in line with capita earnings at Rs. 19407.  

Expenditure pattern: Per capita intake expenditure in rural has extended 4 instances over closing 20 years. Rural spending in non-meals items is growing; out of a complete in line with capita spending of Rs.486, about 40% is spent on non-meals items. This indicates an encouraging fashion for client durables and non-durables (non -meals item). Analysing the intake styles of non-meals items of rural purchasers, we discover that the principal percentage of spending is going to clothing, clinical offerings and gasoline wishes, while city purchasers spend tons extra on rentals, schooling and conveyance.

Rural demand and consumption: Lower degree of schooling in rural quarter (about 60% of the populace lies beneath the centre schooling bracket) result in little or low call for more than a few merchandises which include literacy books, magazines, notebooks, pen/pencils, drawing instruments, calculators, virtual diaries, computers, and so on. But change is taking location due to the fact the literacy maintains the agricultural quarter has risen 23% over the past 20 years. This has contributed significantly to a development in the socio-economic popularity of the human beings. With this increase, the call for academic merchandise has extended. Overall, merchandise and logo consciousness have extended and rural purchasers have emerged as extra mature in buy selection.  

Rural market Index: Rural market index Thomson Rural Market Index Market Research is finished with the aid of using marketplace studies agencies and specialists in the discipline to offer information approximately intake styles, buy possibilities and rural marketplace ability. Hindustan Thompson Associates Limited, a marketplace studies and marketing and marketing organization in India studied the agricultural regions in India in year 1972. HTAL made its record in 1972 and advanced normal signs of rural marketplace ability in India. These are referred to as Thompson Rural Market Index. HTAL compiled information of 335 districts primarily based totally on 26 measurable scale variables. HTAL collated information concerning agricultural info of output in every district. Indicators taken into consideration in growing TRMI are: Agricultural Laborers, Gross Cropped Area Gross Irrigated Area, and Area beneath non meals crops, Pump sets, Fertilizer intake Tractors, Rural Credit, Rural Deposits, Villages electrified.

Land use pattern: Land Management is gaining significance due to growing needs on land and increase of the populace.   Forest region and cultivable land probabilities have extended. Forest has extended from a   degree of 14% to 22%. Area sown has extended from 20% to 43%. Area now no longer to be had for cultivation has decreased. Change of mind-set of common guy in the direction of ecology, growing greenery and that each rectangular meter of land is used gainfully. Multi-storied homes shape a part of the city ‘s landscape.  

Q14) What are the social factors affecting consumer behaviour?

A14) The social factors affecting consumer behaviour are-

• Sociological element: Consumer society or the network is vital. The client existence fashion is stimulated with the aid of using the social setup. The social charter and modifications impact consumer conduct, taste, and lifestyles.
• Anthropological elements: The affordable cultures and subcultures and living styles impact marketing and marketing income promotion, promoting techniques and packing. The purchasers in east India have different taste.
• Psychological elements: Consumer conduct attitudes persona and intellectual make ups are unique. The look at of conduct is critical to adapt advertising and marketing mix.  

Q15) What are the cultural factors affecting consumer behaviour?

A15) There is a diffused impact of cultural elements on a client’s selection system. Consumers stay in a complicated social and cultural environment. The sorts of services and products they purchase may be stimulated with the aid of using the standard cultural context wherein they develop as much as emerge as individuals. Cultural elements consist of race and religion, tradition, caste and ethical values. Culture additionally consists of subcultures, sub-castes, spiritual sects and languages. It affects client behaviour to an extremely good extent. Cultural values and factors are surpassed from one era to every other via family, academic groups, spiritual our bodies and social environment. The cultural variety affects meals conduct, clothing, customs and traditions. For example, ingesting alcohol and meat in sure spiritual groups aren’t restricted, however ensure groups, intake of alcohol and meat is prohibited.   

Q16) What are the technological factors affecting consumer behaviour?

A16) The speedy growth of telecommunication centres and cell smart phone has furnished possibilities for rural human beings to preserve in contact with guys and markets. Development of TV networks and affordable channels has enabled the entrepreneurs to by skip on message approximately product and offerings to rural human beings. In rural regions mainly in huge villagers and villagers close to cities and cities, youngsters and teens have accused to records which include activity possibilities, countrywide news, environment conditions, and financial group loans and so on. IT and net are positive to unfold up alternate of records in rural India though at a slower fee evaluate to city marketplace.

Q17) How income influence the buying behaviour of a person?

A17) Income has the ability to influence the buying behaviour of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes.

Income is a very important factor that affects the buying decisions and consumer behaviour of people. 

Across different income levels, the difference in product choices and buying patterns can easily be marked. A person in the middle class makes his buying decisions based on utility. However, someone from the upper class would want style, design and special features while making a purchase.

The channels for the marketing of luxury items are different from those for the ordinary ones. Luxury items are mostly marketed through luxury magazines.

The level of income determines what kind of products someone regularly purchases. A buyer with higher disposable income will spend more on luxury or lifestyle items. People with higher disposable income also spend more on vacations and tours. Customer service and after sales support also become important factors when it comes to big ticket purchases.

Q18) Explain the Role of Consumer’s Self-Concept in Consumer Behaviour?

A18) If a consumer perceives a fit between his own self-concept and the brand’s personality, that brand becomes the symbol of the consumer’s personality. A person’s self or self-concept refers to his/her thoughts and feelings as a whole having reference to himself as an object. In the similar manner, Arnould et al. Defines the self-concept as perceptions people have about themselves. Although the general definition of the term ‘self-concept’ is almost the same, the operationalisations of the self-concept construct led to disagreement within the consumer behaviour literature. This disagreement is regarding whether the self-concept is a one-dimensional or multidimensional construct. Even though some scientists consider self-concept as consisting of only one single variable, the actual self, others identify it as having two components, the actual and the ideal self. In contrast to one-dimensionality and two-dimensionality of self-concept, other scientists define the self-concept as a truly multidimensional construct. For example, Sirgy identifies four dimensions of the self-concept viz. Actual self-concept, ideal self-concept, social self-concept and ideal social self-concept. The actual self represents a person’s real self while the ideal self reflects how a person would like to be perceived. In the similar manner, the social self stands for the image that one thinks others hold of oneself. Finally, the ideal social self-expresses the image that one would like others to hold.

Q19) Explain Brand Personality as a Medium to Establish Consumer.

A19) Brand Relationship In contrast to the desire of finding a fit between their personality and brand’s personality, consumers may also tend to develop a relationship with the brand. Consumers do not always strive for brands with personalities similar to their own but also seek brands with differing, sometimes opposing, identities. Concerning the relationship between the consumer and a brand, brand personality plays a vital role since it provides depth, feelings and liking to the relationship. On the other hand, a consumer-brand relationship can also be based upon purely functional benefits. Moreover; different consumers can have different kinds of relationships with one brand based on their perception of the brand.

Q20) Explain the Meaning of Brands and Consumer Decision Making.

A20) According to Tucker, consumers can be defined in terms of either the product they purchase or use or in terms of the meaning’s products have for them. Therefore, the meaning of brand is also an important factor of consumer decision making. McCracken postulates that people are looking for brands whose cultural meanings match with the person they are or they aspire to become. Hence, they are looking for products that fit to their own or ideal self-concept. Indeed, the meaning that exist in brands or the consumption act itself act as a trigger or stimulus for consumers’ purchase or consumption of certain brands.