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4. LITERATURE REVIEW

Anisimova Tatiana Anatolevena (2007), has examined the effects of

corporate brand creation and it’s impact on consumer behaviour for consumer

durables. An absolute in-depth analysis with 80 pages questionnaire has been

executed with the help of seven point likerts scale. Various variables like

corporate activities, corporate associations, corporate values, corporate

personality, technology, advancement and technology sophistication has been

into consideration. An attempt of establishing co-relation between corporate

marketing with consumer perception has been made and to certain extent it

has been established. The study clearly reflects that corporate activities and

practices play a very vital role in creating corporate brand which ultimately

convert into consumer brand loyalty. The result shows that there is direct

relationship between corporate activities and corporate image association in

the consumer’s memory and consumer loyalty. Furthermore, attitudinal and

behavioural loyalty can be increased through enhancing consumer personal

representation, in the brand communication and consumer experience. Core

values which are reflected in the mission and vision of the organisation also

having impact in consumer image about the corporate as well as brand. An

important implication therefore is that beyond conventional marketing mix

consumer durable manufacturers should raise consumer awareness of their

core values an organizational culture. Lastly, it shows the result in the form of

clear cut relationship between brand functionality and consumer evaluation of

durable products.

Bhagaban Das, Mohanty Sangeeta, Sahil Nikhil (2008) reveals that

television brand selection is very complex process, which is highly depending

upon word of mouth publicity and additional information available for brand or

product. On the basis of survey of 80 respondents it was found that sound

quality and brand image are the leading factors taken into account by

consumers. Surprisingly, there is no impact of sales promotion to in the form

of discount or gift or any other scheme. Durability of the product, in-built

stabilizer for protecting television from voltage change and nearby dealer are

secondary factors in selecting television brands. The conclusion has been

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obtained with factor analysis. Good brand image is the ultimate criteria across

all the sections. It is suggested by them that offering free direct to home

connection might be most effective sales promotion tool.

Bijapurkar Rama (2007) has nicely explained the concept of bottom of

pyramid with reference to Indian consumers. The size of bottom of pyramid

market in India is very large and one can’t afford to ignore them in any cases

it makes one third of the total consumption expenses and one fifth of the

savings. The purchasing power of the rural consumer of India is low but its

size makes it. Still in India a dollar per day is to be considered as sufficient

amount for the average family of India. The affordability of the chief wage

earner of the family may be extended to second hand mobile and television

set and small dwelling in shot time of six months. Hence the affordability is not

the prime issue for rural consumers. Marketers are required to go for sensible

investment in the appropriate brand building and in creation of brand loyalty

by finding right business models for urban and rural poor or bottom of the

pyramid customers. The rural consumers are showing very positive and

favorable changes in their attitude after liberalization which responsible due to

enhancement of educational level. The rural consumers are poor but not

backward. As the rural consumers are becoming struggling and aspiring for

better life and stretch themselves for better environment. The most important

and disturbing fact has been brought in the notice about scattered ness of the

rural population which affects the government as well as to the marketer

adversely in development of marketing infrastructure. More than two lacks

villages are without shops and seventeen percentages of villages coving more

than half of rural population which indicates the inability of the marketers to

serve the consumers of hinterland. Creating perceived value advantage for

consumers and customers who have modest incomes but are not backward in

their thinking and their aspirations, especially in an environment where

innovative direct competition exist and offers low costs and high benefits

offerings.

Broadbridge Adelina and Marshall Julie (1995), conducted a study of

consumer complaint behaviour with 124 respondents reveals that just 4%

respondents are satisfied with the complaint resolution system of consumer

durable companies. Nearly 1/3rdare satisfied with the efforts made by

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marketers, but 44% are of the opinion that marketers are not taking

appropriate action for resolving complaints of consumer. Consumer complaint

behaviour having direct impact on store patronage and affects store’s loyalty.

Surprisingly, an organization can get back 75 consumers to their store after

hearing and solving their complaint once again. Consumer complaint

behaviour is supposed to be a part of consumer relationship management and

retailer is also to be treated as most important mediator for managing

consumer complaint issues tactfully. Consumer complaint behaviour is

basically a hidden cost in the form of negative word of mouth in case of

dissatisfied work, which leads to alternate store as to the present point of

purchase. The study suggests that there should be proper complaint

management system which should give data about total number of

complaints, nature of complaint, timing of resolving, resolving ratio and

repetition of complaint. Marketing is based on exchange of mutually beneficial

values. Companies must strive to ensure that consumer perceives that he has

been fairly treated. Hence, firm must communicate, deliver and share added

value by way of excellent services. Majority of respondents believes that

electrical goods were essential rather than luxury item. Hence, after sales

service and complaints, should be resolved at the earliest.

Chatterjee (2000) suggests the basic and unique segmentation of rural

market based on source of employment which is more sensible and affects

directly to purchasing power of consumer. There should be two segment of

market viz consumers who depend upon land and those who are salary

earners. Further consumer classification on the basis of agricultural aspects

like landholding patterns, quality and crop mix followed by land holders,

quality of land, irrigation facilities, product. For other class of rural population

urban segmentation logic is sufficient.

Chavala (2001) depicts the rural consumer’s relation towards

promotion mix and brand building aspects. The marketing communication

should be utilized for the brand awareness rather than the sales promotion.

The complete different use of integrated marketing communication has been

sought by him which ultimately leads to brand loyalty. Marketing

communication for the rural market will be effective in short run as tactic but

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can’t be treated as strategy for creating better brand image in the mind of rural

consumers.

Consumer’s perception of alternative brands in the market place is

depending upon the amount of available information about the brand. Brand

information is highly depending upon three sources viz. Marketer dominated

communication channels, Consumer Dominated communication channels and

Neutral channel of communication. His study showed that there is great

impact of marketer’s dominated communication channel and it plays very vital

role in creating brand preference. Consumer’s past information is playing very

vital role in brand perception for durable products.

Dr. Agrawal Manish (2006), has conducted the consumer buying

behaviour process in rural market of Bareli District of U.P. which reveals that

lack of electricity in many rural areas of Bareli District act as barrier to

consumer durables and marketers alteration in the product cannot play any

significant role in adopting household. Decision for the consumer durable

brands is dominated by the male member of the family as well as retailer’s

opinion plays very important role in such. Television is proved as most

influencer for creating awareness amongst rural consumer. Surprisingly, local

newspapers and magazines play very important role in making consumer

aware about the product. Price and the size of the product are most

influencing variable affecting purchase decision of consumers. District level

town where more assortment and variety is available for consumer durables is

least preferred for point of purchase.

Ganguly, Parthsarathy, Kapse Sampada (2006) has depicted the most

important issue of brand awareness in the rural market. Rural communication

is different task requires deep understanding and insight of rural consumer

mind set. Hence, rural communication should be done after selecting very

precise and familiar word, colour, sign, logo for brand. They emphasized on

integrated marketing communication approach rather than making a personal

presentation. One should take care in recruitment of sales person in the rural

area and should prefer local educated youth familiar with rural geographic

culture, tabus, etc. Influence of opinion leader cannot be ignored in any case.

Hence, it is a advisable to go for exposing the new product amongst such

influensive person. For making effective communication to rural market one

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should contain local idioms, lingo and dialect as well as it should be simple,

clear and memorable.

Harish R (2007), depicted that consumer durable markets in India is

highly depending upon various organised and unorganized retailers. Hence,

marketer should develop systematic push strategy along with product

development, product innovation, which converts into brand loyalty through

better customer relationship management. An attempt of creating win-win

situation for retailer and marketer, should be created for long term survival in

the present cut-throat competition market of consumer durables. In the

present scenario different retailing formats are established with a view to

capturing more market share and enhance the penetration level which may be

unsuccessful due to high cost of distribution, poor trader-marketer

relationship, high rentals, and lack of trained staffs and development of very

low priced Chinese brands, absence of insight towards actually what

consumer wants and other aspects. Both manufacturers and trader should

make an attempt to explore more conceivable method to improve operational

efficiency in order to achieve substantial and profitable business group.

Hundal B S. (2001) attempted to study the rural buying behavior in

Ludhiana, Jalandhar and Amritsar districts of the Punjab region. The main

objectives of the study were to assess the general attitude of rural consumers

for consumer durables; to find out the durable brand ownership of rural

consumers; to examine factors considered by them in making product brand

choice; to investigate the role of family members, different groups and media

in influencing purchase decision of rural consumers; to analyze the post

purchase behavior and satisfaction and to ascertain the intensity of brand

loyalty, and the appeal of promotional schemes. A sample of 325 respondents

(households) was selected on the basis of stratified sampling, random

sampling and judgement sampling. Finally, he concluded that the rural

consumer considers consumer durables as a necessity as he perceives them

to be a source of entertainment, education, information and comfort. He

suggested increase in the number of distribution channels, introduction of low-

cost products with more focus on quality, brand image, family preference, and

after-sales service.

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Hundal B.S. and Anand (2008), examines the perception of the

consumer towards promotional schemes for consumer durables with the help

of primary data from 299 respondents of rural and 297 from urban areas,

whose monthly earnings exceeds Rs.10,000/- with F-Test and Z-Test. The

study reveals that replacement is the key factor for converting potential

consumer into actual consumer in case of rural respondents. But, rural

consumers are more concerned about repair and maintenance of the

consumer durables. Hence, after sales service in case of rural area emerges

significant promotional measure but could not be entertained by marketers

due to poor infrastructure. In case of urban consumers, off seasonal benefits

is also proved to be impactive as to their counterpart in the rural area. Festive

offer is highly waited sales promotion tool in the rural area as the harvesting

activity in the farm provides liquidity to the farmers and other rural population.

Perhaps, installment purchase and O% scheme seems very promising tool in

urban, which indirectly suggests that affordability is not the constraint of rural

areas, but, it is constraint of entire market. Customer relationship

management practice is extremely difficult in rural areas. Both the groups like

free gift scheme alongwith consumer durables, but it is assumed to be a

routine one alongwith other sales promotion tools.

Jeyakumar S. (2010), examining the consumer durable market in the

rural India revealing that availability of financing scheme, rise in the share of

organised retail, innovative advertising and appropriate brand promotion and

availability of new variants makes durable market boom in the rural India.

Study reveals that air-condition, microwave woven as well as colour TV

having potential growth of 20%, but still Indian market is highly dominated by

foreign players like LG, Samsung, Philips, Whirlpool, and of course Videocon.

Marketer should leverage its rural market opportunity by increasing the

penetration level various white goods. Present penetration level of refrigerator

in rural market is just 2%. In washing machine just 0.5% which is sign of great

potentiality in the market. Rural market at present growing faster than urban

market. More than 2/3rd population of the country is below the age of 35% and

nearly half is below 25% is sufficient indicator for future growth rate of durable

markets.

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Jiwarjka (2004), Chairman, Federation of Indian Chamber of

Commerce and Industry (FICCI) states that the rural markets have been a

vital source of growth for most companies. For a number of FMCG companies

in the country, more than half of their annual sales come from the rural

market. There is a need to generate superior data on rural marketing £

system, the haats, melas, mandis, village and small town income levels and

consumption patterns. They need to learn how to use existing market

places—haats, melas, mandis— to arrange live demonstrations of products.

The ingredients for successful penetration into the hearts and wallets of

village consumers include long-term commitment, cost re-engineering and

sustained innovation and specialized strategies. He reveals that despite the

hurdles that rural economy presents, corporate-rural partnership can

overcome these and bring about positive results for both the entities.

Partnership needs to extend beyond agribusiness.

Kar Sudhanshu Sekar and Shaoo Sarat Kumar (2010) have explained

the importance of the rural communication in building a brand in rural area.

Conventional communication channel and tool s are not effective in the rural

areas. An emphasis on the separate communication mix for rural area has

been recommended. Due to high level of illiteracy in India the communication

for new product should be done with great care and each and every

communication channel and tool has to be evaluated on three criteria like

cost, frequency, reaches and effectiveness. Communication can be more

effective through non-conventional mediums like melas, Nautanki, shows, wall

paintings etc. Melas are to be treated as best opportunities for launching new

product in the market as it has very high accessibility to the rural consumers.

One should take great care for selecting logo, punch line, even packing and

other aspects for easy recognisation to consumer. Through non-conventional

communication tool one should develop liking and preference towards newly

launched product which ultimately converted into desired customers and final

punch in the form of point of sale advertisement and presentation which

converts desired one to actual buyers. As a matter of fact now the penetration

of televisions is very high even in the rural areas of India and which the most

powerful and impactive media in last ten years so these no-conventional

methods of communication can’t be effective in the remote areas at all.

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Kashyap Pradeep and Raut Siddharth (2008) are of the opinion that

the rural market is absolute different as to urban counterpart in terms of

dynamics to marketing mix and also from the view point of the consumer

behaviour and mindset. Decision of rural consumer for consumer durables

requires great involvement and highly influenced by the opinion leaders,

reference group, and others. Having consumer durable is believed to be a

status in the society rather than utility and vale addition. Rural consumer’s

taste for the product esthetics and other out part is very basic and bold. Rural

consumer’s expectations are to be studied at regular interval of time which

makes the precision of various marketing mix. No of variables are affecting to

rural consumer behaviour which includes culture, subculture, locality, social

class, custom, role and status and type family, sociability and influence of the

technology etc. These entire factors make the rural consumer behaviour

complex. More surprisingly the study shows that there is difference in the

behaviour of rural consumers of two nearby villages as well as two different

talukas of same district. There is requirement of development of separate

model for rural consumer behaviour.Rural retailers are playing important role

but ignoring “Customer Relationship Management”.

Kazmi S.H.H. (2007) is of the opinion that the rural consumers are

more tradition bound as to urban one. As well as level of education, exposure

to various media and free modern city environment affects the life style of

rural consumers. The impact of various government programmes can be seen

in the purchasing power and literacy level for rural mass which makes rural

market lucrative for various marketers. Segmentation and Targeting, Product

planning, pricing and personal selling are most important aspects of rural

marketing Socio-cultural issues and Language and literacy level are proved to

beimportant and successful segmentation basis. Less modification is needed

for the consumer durables. After sales service is more important for the

creation of customer satisfaction and make customer stick to your company.

The biggest disadvantage to the marketers in the rural marketing is on the

front of the distribution system. Rural area is lack of marketing infrastructure

as well as it is very costly and sometime not even viable for development met

of distribution system. Personal selling in the rural area is highly effective and

can be useful for shop patronage.

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Krishnamurthy (2011)had suggested that one should keep brand name

of product which are easy to pronounce, easy to recognise amongst other

brands and easy to remember (colour combination) for success in the rural

market One should resembles the brand name with numbers or famous

animal or symbol to make brand famous. It was argued that it is very very

useful for creating brand awareness amongst less literate people of hinterland

which in turn into Brand Loyalty in long run.

Krishnan (2002) presents details about the panel discussion organized

by strategic marketing where the issues like the changing profile of the rural

consumer, reach and effectiveness of media and distribution problems were

discussed. It was stated that according to one study, if the rural income in

India goes up by 1%, there would be a corresponding increase of about Rs.

10,000 cr in the buying power. On the other hand, the urban sector has shown

little signs of growth in the last 12 months. It is a fact that unlike a few years

ago, the rural youth today is playing a far more significant role in influencing

the purchase of radios, television sets (black and white as well as color).

Penetration level of consumer durables in the rural sector have risen

dramatically in the last decade or so. Even the rural woman is coming out of

the closet. The youth have certainly begun to play a role in selecting a brand

in certain product categories. Studies suggest that the rural youth is playing

an important role in purchase decisions. They are the real drivers of the rural

market. The B&W television industry is shrinking. If color television is termed

as a luxury item, rural people are migrating towards color televisions. But

when other high-end electronic goods such as the CD player market are

considered, these really have not yet found entry into the rural market. It is still

an analogue industry. Amazing quantity of radios are sold in the rural market.

Krishnan Omkumar, Panigrahi Baroda (2006) concluded that

corporates do not put their best efforts to tap high potential rural consumer.

The reason behind is non-availability of concrete data about rural areas of

India. Emphasizing on precise segmentation the author reveals that

segmenting the rural and urban areas on the same basis does not work

perfectly. Further he reveals that there is a misconception about developing

market that consumers of rural areas and specifically BOP consumers prefers

very cheap and basic offerings. But the study reveals that this is not the case

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in every rural area. There is substantial association between demographic,

socioeconomic and cultural ethical group, hence segmentation of the market

should be made on this basis, which might be much more fruitful. The

complex sub-societies and sub-cultures of the rural India demanding separate

and specific segmentation, though it is very difficult. One should develop

proper understanding towards consumption behaviour and market structure in

rural India from sociological point of view.

Kumar Babita, Banga Gagandeep, Goyal Pratiba, Kumar Abhinit

(2007), has conducted detailed study about preference of consumer durable

by rural consumer, with the help of 450 respondents reveals that company is

targeting rural market has adopted a principle of bottom of pyramid and hence

developed special product for rural consumer in case of durables. An attempt

of examining impact of four A’s of rural marketing has been made, which

reveals that affordability is the main constraint rather than other three A’s of

rural marketing. Price of the product and the advertising strategy are the

highly affecting factors for purchase of durables. High price of agro-

commodities enhances purchasing power of rural consumer. Most surprisingly

non-conventional media convey the message of marketer nicely and

effectively rather than conventional medium. Mobile cinema demonstration,

puppet show are very useful for the communication in the rural area. Wall

painting and hoarding places number two for such. Dealer’s advice for

selection of brand and model is playing very vital role in consumer decision

which can be useful for increasing penetration in the rural market. Very

surprisingly brand name, exchange offer and features of the product received

very less importance amongst the rural people as their education level as well

as attention towards these parameters are very low. Inspite of complexity in

terms of economy, cash flow, literacy level, poor infrastructure and low level of

education, there is a boom in the rural market for consumer durables which

shifts the various company’s focus from urban to rural.

Lily J. (2010), has evaluated consumer’s perception about the

promotional factors of purchase of branded television sets with the help of

primary data from 200 customers of various retail electronic outlets of

Coimbatore District of Tamil Nadu with the help of ANOVA and Chi-square

analysis. An attempt has been made to establish relationship between

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demographic variables of the respondents and customer perception which

reflects that there is clear cut relationship between age group, gender,

educational qualifications, occupation and perception towards the brand.

Income level having direct impact on perception towards the branded

products. Price and perceived quality are the most influencing factors in

determining brand of television. Role of the family members is information

search about the brand possesses plays very important role as spouse is the

most prominent information seeker in television brand followed by parents.

Lokade Pradeep (2006) has revealed that the rural market is not an

extension of the urban market. Rural market is operating in different

environment as to urban and widely based on seasonal income from

agriculture sector. Marketer has to go for deep insight towards the values,

attitude motivation and perceived image of the rural consumer to become

successful. Rural consumers are seeking value for money and can’t be

attracted by the inferior quality.

Mirchandani and Rahul (2001) had emphasizes the product planning

which suggest the proper understanding of rural consumer requirements in

terms of specifications of products in terms of color, functions, taste, size and

it ultimately determines the other marketing mix .

Mishra Arvindkumar, Pallavi (2010), while studying the opportunities

and challenges in rural marketing in India, concludes that government

initiatives are contributing greatly in creating boom in rural market. As

connectivity in the rural area was just 40% in 2004, which has been enhanced

to 70% at the end of 2008. The impact of Bharat Nirman Programme is outlay

of Rs.1,80,000 crores for improving rural infrastructure and increasing crop-

prices has enhanced the affordability of rural consumer to a greater extent,

which resulted into increase in middle to high income households in rural India

to 17% of rural population and increasing at annual rate of 7%. These efforts

compels marketers of consumer durables in rural areas to develop

customized product as well as changes their pricing approach from scheming

pricing to penetration pricing. The impact of programmes in the form of 750

million rural subscribers for telephones, which are increasing at the rate of

13%, in which Bharati is market leader with 40%. Impact is also shown in the

lifestyle of the consumers and hence auto giants, Maruti and Hundai obtained

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sales from rural India to the extent of 16% and 29% respectively in 2009 as

well as 59% durable sales comes from rural areas. In case of Refrigerator

market with a view to concur the adaptability of the product Samsung has

launched stabilizer free Refrigerator. But, limitations of rural marketing are

large illiterate population, lack of supportive services to the consumer

products, conventional way of life, inadequate warehousing facilities, low per

capita income Indians restricts new players to enter into the market.

Modi Pratik (2009), has rightly raised the question towards the various

governing bodies and amongst the researcher about disparity definition of

rural market. In India, rural marketing has been defined by more than 5

different agencies including RBI, NABARD and Planning Commission but

such definition is full of difference of opinions. Independent researcher Jha

has used urban rural dichotomy conceptualization of rural as well as other

criteria like occupation, environment, density of population, heterogeneity, and

homogeneity of population, mobility, etc. while NABARD and RBI has taken

into account simply population size, which is absolutely unfair in terms of

implementation of various schemes in the various rural areas. Not only this,

but in conceptualizing rural marketing there is a disparity amongst

government agency as well as independent researcher. Famous marketing

strategist Vijapurkar and Krishnamacharyulu treat rural marketing as

extension of main stream marketing in the rural areas. Hence, one can

implement all the principles of main stream marketing in the rural marketing,

but, result is absolutely different. Hence, it is suggested that there should be

clear cut definition of rural marketing rather than different sets of definitions

which are inadequate and inconsistent with reference to present scenario.

The global academic community does not know rural marketing as a field of

scholar investigation because it does not have its own unique perspective and

domain. Hence, the Central Government or its agencies should make an effort

in clarifying the domains and perspective of rural marketing which can lead to

separate theory building work in the area of rural marketing.

Mohanty Dakshi (2003), has examined the LG’s rural marketing

strategy with reference to Indian subcontinent under the guidance of K.R.Kim.

To establish LG’s presence in rural market company has started operations in

the form of back-office support by opening offices in semi-urban and rural

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areas which are known as central area offices and remote area offices. Not

only that, depending upon types of town in which it has been situated, its

classification has been made. This is to be treated as very important move for

increasing infrastructure, distribution and after sales function to the rural

consumers. With a view to penetrate the television in the rural area, LG has

successfully launched television under the brand Sampoorna in 1998 with

specific feature of regional language screen display which is turned to be a

boom product in the rural market. Even though, its prices higher by Rs.2,000/-

as to competitor’s product. Kwang-Ro-Kim has focussed on the rural market

of India by launching series of ruralised product (product with specific features

seek by rural consumers) and successful brand extension in the form of “Cine

plus” (which was extension of Sampoorna) which contribute more than quarter

of the companies turnover. Same strategy has been adopted in the category

of frost free refrigerators, air-condition and microwave oven. The most

influensive practice is the launching all these products with very low price

which cracked the one of the most important A-affordability of the rural

market. A unique strategy in the form of different models, different channels

has been launched by the company, which meets the local requirement with

the help of company’s own distribution network.

Muray Alex J (1971), evaluates model towards optimizing advertising

efforts on durable goods purchase. His study clearly indicates that

advertisement expenditure for consumer durable and sales having no

relationship at all. Allocation of advertising effort is not as effective if past

trends cannot be projected because of highly fluctuating nature of the

products involved. Generally, consumers take into account recently published

an readily available expectational survey while determining household

purchasing decision. One should construct optimal strategy index by

integrating purchase decision making variables and future potential market

segment with a view to optimizing advertising budget. The study depicts that

by giving an advertisement one cannot predict the future sales. One should

deeply study an measure two major aspects on which entire decision making

process for durable goods is based at regular interval of time viz. willingness

to buy and ability to buy before constructing optimal strategy index.

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Narang R. (2001) conducted a study on rural markets and buying

behavior of rural consumers of UP. The items included in the study were

consumables: toilet soap, washing soap, tooth paste/powder, face powder,

face cream, edible oil, tea, razor blade and durables: electric fan, wrist

watches and television sets. The hypotheses framed were: A significant

proportion of buyers were not satisfied with the available brands and there

was latent demand for additional brands; there was non-availability of desired

brands in local shops; rural buyers made substantial purchase from the cities;

the proportion of city and local purchases varied from product to product and

a nominal amount of purchase was made from hawkers. The sample size of

200 respondents was distributed to three regions—to the rural population of

Northern UP, Central UP and Eastern UP. The results indicated that majority

of the rural population was not satisfied with the locally available brands.

Narang, Shivani, Gautam V. Annigeri, Singh Nirmal and Ananl Vishal

(200) is of the opinion that the rural communication is to be done with due

care and diligence. Message selection is to be executed after considering the

rural psych. Unconventional media is very effective in the rural communication

like folk culture, rural sports, melas which are integral part of rural life.

Message should be relating to consumer behaviour as well as marketers have

to take into account the accessibility of media type which they have selected

for rural communication.

Paninchukunnath Ajith (2010), has developed a unique model for rural

marketing for sales promotion. Marketers should come out of urban marketing

myopia. Urban myopia is so high that inspite of facing acute problem in urban

markets, like low market share, brand poly game by consumers, competition

from private labels, declining margins due to heavy competition and so on

companies with urban myopia still refuse to look beyond urban markets as

well as many of these marketers are using the same segmentation for rural

counterpart, who faces failure. Rural marketing requires unique approach

towards retailers as well as consumers. He has suggested pull approach to

rural marketing with modified communication and customization focus, which

should create right perception in the mind of consumer. But his unique model

pull up marketing focusing on product development and market development

as well as building relationship with consumers through local touch retailers.

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The three P frame works – pull, push and pull-up should be adopted in totality

for achieving sustainable success in rural marketing. Many marketing firms

are adopting first two components of three P frame works and face the

problems. Instead of that, one should develop proper focus on consumer as

well as retailer and create unique integrated marketing communication mix,

separately for both of them can bring them for smiling exchange and

satisfaction which can be converted into repetitive purchase. The three P

frame work emphasizes on creating new markets, developing innovative

products, green products and align corporate social responsibility activities of

the firms to its value change. Holistic approach towards rural consumer

through pull-up can give co-creation, empowerment to channel, as well as one

should try to maximize dialogue, access and fixing responsibility to retailers

and marketers through transparent policies.

Pareek (1999), explained that the Indian rural market has immense

untapped potential. The rural market’s importance arises out of the fact that

India lives in her villages, both literally and metaphorically. According to

National Council for Applied Economic Research (NCAER) surveys, the

income of the average villager is rising. Recession is hardly possible in rural

India. Also, rural education levels are rising because of the efforts of the

states. The rural markets remain untapped because of three D’s: distance,

diversity and dispersion. Due to scattered rural markets, it is difficult for a

brand to be available all over the county. But with the new means of

transportation, it may be possible to overcome this obstacle. He has observed

that it is very hard to design a communication strategy as the marketers have

little understanding of folk media. Mass media reaches only the upper end.

Genuine efforts should be made to exploit the rest of the market potential.

Pickering J.F. (2007), has developed a unique durable purchasing

behaviour model. According to the model, factors like higher social economic

status, age group, ownership of present consumer durable, likely to move

house in following year, larger resources to spend, very low importance of

saving for purchasing any other thing other than consumer durable and strong

expectations from durables. Basically speaking, he has developed three sets

affecting durable purchasing decision of individual household. Set-I consists

of occupation, age and existing durable ownership, which determines his

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socio-economic status in the society. Set-II is the most important and

influencing one in decision making process, which generates consumer

confidence, resulted from personal financial circumstances, price,

employment position and expectation from durables. Set-III is mainly deals

with the perception of product characteristics requires specific triggers in the

form of sales promotion tool, which converts into demand of consumer

durables. The investigation suggests that demand of consumer durables is a

function of consumer’s ability and willingness to buy. The model ignores

behavioural cross sectionality. Model is applicable only for individual

households having less impact of personal factors.

Rajgopal (2003) had examined the impact of various government

initiatives through five year planning for rural development as well as its

impact in terms of rural development. Survey for rural development by

government agencies always show very rosy and impactive picture of rural

India but several micro level study shows different result. Emphasis on the

development of rural marketing infrastructure and allied services had been

given. Though the concept of rural marketing is taken very conservatively and

restricted to products produced in rural India.

Reddy (1999) had trace out one of the most influensive factor of

consumer behaviour which is after sales service. Rural consumers too expect

timely and efficient after sales service. Rural consumer takes into account this

factor while selecting brand of consumer durables. This factor ultimately

restricts the rural consumers to go for the advanced technological products

even though there is affordability. Onsite warranty may play very important

role in differentiating policy towards the product in the rural market.

Ruchika Ramakrishna(2006) observed that there is differential

development of infrastructure, divergent geoclimatic conditions and variations

in locational density of villages indirectly compel to go for different distribution

system for different areas. Areas with similar situation and type of population

density and geometric climatic conditions are to segmentised and accordingly

distribution strategy is to be developed. Marketers have to depend upon multi-

channel distribution system but in long run should go for direct marketing

though own outlets or in joint venture with agro product company’s distributors

or others.

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Sarangapani A and Mamatha T. (2008) examines the post purchase

behaviour of rural consumer ad role of retailer in the efforts of consumer

satisfaction with the help of studying 500 respondents in west bangal. The

consumer’s reaction towards post purchase experience of various products

may of three categories viz. Accumulating experience towards the product

and retailers which in turn becomes memory, putting check on the selection of

the product in the and make an appropriate adjustment in the future purchase

decisions. The post purchase behaviour of the consumer is highly depending

upon the educational level and awareness. A bed experience of the particular

retailer may create problem for the marketers for long period of time and

converts it in the negative publicity. Rural consumers are very price conscious

which result into usage of lower brand or private label. Rural buyer is not

ready to pay for value additions and satisfied with basic offerings. Demand of

consumer durables and consumables are very high only during the harvesting

season. At the marketer’s end at regular interval of time it require to conduct

research to know the consumer’s insight in the form of liking, disliking, buying

motives and buying practices. Effective communication and transparent policy

can reduce the dissatisfaction and use full for the development of positive

perception towards the brand or marketers. Efforts are required to be made

on the ground of the retailer’s service to its customers as they are playing very

important and pivotal role of brand bundling in the remote areas. Consumers

are to educated through them regarding use of the product.

Seshamohan V.V., Narayana N.S., Babu Ramesh S. (2008), have

examined consumer decision making process for consumer durables in

potential rural India with the help of 150 respondents. The buying process in

rural market as usual starts from problem recognization, but in case of

information search, it gives more emphasize to the retailer, present user and

previous experience and of course the friends. Family members are playing

very vital role in influencing purchase decision followed by friends and

relatives, but, the most significant aspect is need recognization is done by the

chief wage earner of the family. Surprisingly, nearly half of the respondents

are accompanied by friends and relatives while purchasing consumer

durables rather than family members and nearly one third are purchasing

alone. The most critical factors influencing purchase decision are price,

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design, quality, service availability, etc. but in case of complaint or post-

purchase problem is concerned, just one fifth are facing complaint from the

product, which has been resolved by the marketer by and large. The non-

availability of factual and comparative information to prospective consumers is

very limited. Finance facility is the key influencing factor for buying consumer

durables, but, there is a lack of proper consumer relationship management on

the part of marketers.

Sharma Urvashi, Agrawal Nupoor has focused on brand building

practices in rural areas. The study reveals that integrated marketing

communication which is followed in urban area cannot be successfully rural

area. Hence, brand awareness can be done slightly different in rural area. It is

myth that rural consumer are not aware about brand awareness of various

FMCG products are ranging from 55% to 88% in various categories. The said

research paper suggests different rural brand building process which is quite

different as to its counterpart. It reveals 4Bs as the most suitable way for

brand building which starts from build product as per the need of the rural

consumers, build price after taking into account small disposable income

group, which should affects reasonably to the pockets of rural consumers,

build messages with the help of suitable language, dialogue, habits, customs

and values, which creates clear, easy and more impactive brand positioning

and good recollecting alongwith an attempt of building higher satisfaction level

of consumers.

Shivakumar and Arun (2002) in a study of buying behavior of rural

Pondicherry people noted that they considered only one brand and visited

only one shop before making a purchase decision. The survey focused on two

products: wristwatches and footwear. Unlike urban areas, where watches had

become gift items, in rural areas, watches were bought as and when

necessary. They found that rural customers considered brand name and price

as important elements in buying wristwatches. Rural customers preferred to

shop only at one place. An interesting finding was that they seemed to buy

wristwatches and footwear as and when they required them without waiting

for any offer or festive season. For wristwatches, about 45% of the surveyed

respondents reported that they themselves took the buying decision while

about 20% of their counterparts were of the view that ‘retailers’,

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‘advertisements’, etc., influenced their purchase decisions. For footwear,

about 75% of surveyed respondents reported that they themselves took the

buying decision regarding the footwear they used. They suggested in their

study that manufacturers should make available quality products at affordable

prices in towns that were accessible to the maximum number of villages.

Shivkumar K, Rajamohan A. (2007) has conducted a study of 426

(university teachers) respondents with the help of chi-square and other

statically tool which revealed that price of the television is found to have high

positive correlation with performance, brand recommendation and negative

correlation with short term service. Purchase decisions are highly influenced

by age and gender followed by monthly income which decided affordability,

social status which provided motive for possession of branded television set

and education level which is helpful in the obtaining information about product

and allied augmented aspects. The suggest the alteration in the first P of the

marketing i.e. product in terms of variety and specialized features may help

marketers to maintain the market share.

Shrotriya Vikas (2008), examines the perspective of rural marketing.

Technological and infrastructural developments have increased the literacy

and brand awareness, which resulted into new players in the rural market.

Rural marketing is not emerging over nightly, but, it is result of many factors

like large population, saturation in urban market, risk taking ability of local

entrepreneurs, technological development, availability of financial facilities,

increase in literacy rate, impact of LPG and of course it’s result consumerism.

There is vast difference between urban market and rural market in terms of

communication, awareness, available offerings and consumer behaviour

patterns. With a view to be a successful marketer in the rural market,

customized products has to be developed after proper understanding of rural

situation and expectations of rural consumers. Otherwise, manufacturers who

have adopted selling concept will be failed. Segmentation is challenging task

in rural market. As it is full of too many groups, sub-groups. Scattered villages

in Indian subcontinent and hinter land increases cost of distribution.

Advertisement and sales promotion schemes evaluation is extremely difficult

in the rural market because getting feedback from the consumer is not an

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easy task. One should concentrate on unique 360o communication for rural

market.

Shukla Kedar, Raut Amol (2010), has presented recent trends and

factors for growth of Indian air-condition industry with specific reference to

consumer expectation and marketer’s movement. The study reveals that there

is tremendous growth of commercial air-conditioning market and consumer

air-conditioning market which is in double digit. Marketers have made

tremendous change in offerings by making appropriate alteration in the

product like adding electro-mechanical device for cut-off which shifts AC from

cooling to fan as per room temperature as well as inverter running AC are

developed after taking into account short supply of electricity in Indian cities.

Star rating – electricity saving AC and programmable air condition is the

demand of the time. In case of high-income class family, architect and interior

designer’s view point is also taken into account for selecting brand, colour and

size of air-condition from the view point of room decoration. At present

consumer’s are also taking into account esthetic aspect of air-condition. It also

reflects limitations for threats to the air-conditioning industry in terms of

dumping of goods from foreign market like China and Korea, globally

changing in technology and change in environmental laws and dependency of

compressor technology with foreign companies.

Sinha Piyush Kumar, Banerjee Arindam, Uniyal Dwarika Prasad

(2002), have studied store-choice behaviour of Indian shoppers with the help

of 43 statements measured on Likert type-scale from 247 respondents with

the help of convenience sampling method. The result shows convenience and

merchandise are the primary reasons for selecting particular store. Store

selection is based on many factors. But, highest emphasize has been given in

case of inside the store element are inside store comfort, large assortment

area, availability of various brands and space for moving around. As the study

has been conducted with wide variety of retail stores, including grocery,

durables, chemists, lifestyle, books and music, apparels, accessories, etc.

conclusion is applicable to all contemporary organised retailers in the urban

area. More than 1/3rd respondents are considering merchandise and ambient

of the store for primary driving force in selection of store. Consumers of

consumer durables prefer to visit those stores that have depth and width and

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look for variety. Stores that offer good prices and discounts are of number 2

preferability. Shoppers are also concerned about quality on the one hand and

try to maximize value for money on the other. Ambient reflected in terms of

lighting, setting and comfort treated at pivotal factors in selecting stores. A

good display of products can create temptation in terms of look around, touch

and feel to the products. Consumer durable buyers agreed that their

perceived risk associated with buying goods from present store was minimal

as well as services provided by the stores is of high quality results into

positive experience towards stores which convert into store patronage and

positive recommendation to the others.

Soma Sen Gupta(2005) had observed that there is direct relationship

between income group and involvement level of the consumer for buying

television. Person from higher income group give more importance to brand

reputation, price, features and promotional tools as compared to lower income

group. Buyer perceives that the television with higher price carrying higher

quality. Urban Consumers prefer higher or reasonably priced brand while

selecting colour television brand. Brand reputation is most influential feature

for determining perceived quality of television. The value for money constraint

is restricting the consumers to take risk for lower brands.

Srivatsava Arpita (2008), has explained various examples of effective

product and positioning strategy for rural market in her research article. Rural

market is in a very boom situation because of various reasons like shifting of

rural agriculture employment to non-agriculture employment, rising disposable

income mainly due to continuous good monsoon, diversified higher value

added farm activities, etc. Product standardization is in the heart of rural

marketing. As many organisations have modified their product rightly as per

need of rural consumers in case of durable goods by changing in product

design, an additional features addition. Offering’s ruralification should be

accompanied with right rural positioning through product differentiation. Rural

consumer should be highly tickled by the offerings offered by marketer,

otherwise, it will not be successful. One should develop suitable product and

should create temptation in the mind of consumer with brand positioning, in

vernacular way. One should start thinking for four P’s of marketing from

scratch for being successful in the rural areas.

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Sultan Fareena (1999), focuses on consumer preferences for

forthcoming innovations with specific reference to high definition televisions.

The study of 320 well educated effluent urban respondents reveals that

consumers are ready to pay more for future upgrading technology as well as

new features in terms of sound quality and extra ordinary picture quality.

HDTV consumers are willing to pay more to receive this future technology

earlier than they would for existing an intermediate technologies. HDTV holds

its value in the mind of consumer better than interim TV technologists or

existing one, which is result of extra ordinary efforts of technology positioning

by multinational companies across the globe. Intermediary technologies

(which is prevailing in the market) is considered as loss as to high definition

television technology by all the respondents. At present, consumers are

prefers sharp picture as compared to big screen. Consumers are not very

tolerant of present technologies which might result into switch over to HDTV in

near future. Marketers should grab an advantage of being pioneer in this field.

Understanding consumer response to different levels of technology over time

is critical to the successful introduction of different levels of technology.

Marketers should leverage increased use of internet for exposing consumer

towards the emerging technology.

Sumedhan K.P. (2008) depicts the most important motive of the

Keralian consumer behind ownership of the consumer durables. The study of

consumer behaviour for consumer durables revels that the important motive

behind having consumer durables is feeling of high status in the society. The

result is very strange form he Indian’s most educated state whose literacy

level is more than 91%. This ultimately indicates that there is no relation

between the education level, income level and status seeking situation in the

rural areas. As the study has compared the buying behaviour of the urban and

rural consumer the hypothesis result shows different behaviour towards the

consumer durables and urban consumers are more keen to purchase

consumer durables of new version or with additional features. More

surprisingly the said trend is also observed amongst lower to middle income

group also. “Affordability’ is not the constraint and proved to be under power

to sensitivity to “status” in the society.

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Sun Tao and Wu Guohua (2004) compares the Chinese rural and

urban consumer behaviour and attempted to know the reasons for difference

between them. Chinese rural and urban consumers who are generally

situated at two different environment and living standards having different

terms of attitude towards whole marketing mix like price, place, promotion and

presentation of product, product innovation, brand building (brand name

recalls etc. The study reveals that there is extreme difference in the

environment of both the class of consumer which is the most responsive

factor for difference in the attitude. The study also focus on the impact and

influences of various development programmes of Chinese government (in

terms of various demographic changes like literacy, occupation etc.)for the

welfare of general public at large in urban areas. To certain extent the product

consumption pattern in the rural areas shows improvement in the life style but

at very slow speed. The multinational companies have understood this pattern

of behaviour in both market and modified their marketing mix and dominate

the market. But the urban investors have to help rural areas in the form of

development of various infrastructure facilities, health care facilities and set-

up for marketing requirement which enhance the market share of various

products.

The Hindu (2004) quotes that present need is to understand the

psyche of the rural consumer in terms of needs, to tailor the products to meet

such needs and to deliver them effectively. Effective communication and

setting up of appropriate distribution channels are necessary for a successful

foray into rural markets.

Tiwari Dharmendrakumar (2007), conducted a study on residential

status of the respondents has no effect on medium used to see/heard

advertisement, initiation of purchase, finalization of purchase decision, and

also in respect of influence of various factors on purchase process.

Acceptability of medium of advertisement, purchase initiative taken by

different members, influence of different factors on purchase process, and

finalization of purchase decision are significantly affected by level of

education, occupation and family income. Elder member of the family seems

to be more effective for initiating the idea of purchase. Relative’s role is also

considerable. Family members and friend who own the brand have major

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influence on the purchase process. Brand image, personal experience and

guarantee are three important factors motivating towards the purchase of a

particular brand. Whereas, shop image and after sale service are negligent.

Residential status has significant effect on various motivating factors.

Velayudhan Sanal Kumar (2007) Social and cultural practices have an

important influence on rural consumer behaviour. A marketer cannot ignore

the influence of community on purchase and use behaviour as this can affect

the product and the advertising message used. The presence of a various

durables in the house is to be treated as status symbol community even it is

not used.Again, television viewing is still largely community viewing and

hence rural audiences are not comfortable with sensuality or sexuality.

Culture influences perceptions and behaviour. The preference for color, size,

shapes and taste are all influenced by culture. The perceptions of products

vary because of these influences. An example of this is the perception of

value Rural Marketing: Opportunities and Challenges according to size. The

influence of culture on communication is an important factor in promotion

decisions. The importance and respect for elders influence the message

source. The meaning that symbols carry needs to be taken into account in

promotional decisions. The nature of occupation also influences the

marketers’ strategy. Agricultural workers prefer to pay a smaller purchase

price because of the prevalence of a daily wage system. The popularity of

small packs is a result of this.Rural institutions are different from those in

urban areas. The social, political and economic institutions are significant for

marketers. An important rural institution that influences marketing is the

weekly village market. Recognising the importance of this institution

marketers use them to reach the rural consumer.

Wood D (1972), reveals that the process of product differentiation is

one that involves optimizing across a large number of dimensions. It is

impossible to suggest definite formula for differentiation strategies. Due to

typical nature of product (consumer durable) marketers feel that there is risk

in launching new consumer durable, as its frequency is irregular. The

consumer’s risk perception process is playing very vital role in consumer

buying decision. The approach proposed by conventional consumer

behaviour model is inconsistent with the findings of research paper. The

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products that are clearly differentiated from the existing products may in ex-

post evaluation, appearing to have substantial price protection from the

existing products. Consumers will perceive not only the buyer’s attribute

contents, but also wide spread in the possible attribute range. The paper

suggests that marketer who would like to launch new product should

introduce it with surrogate variables for creating better positioning.