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4.

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

corporate brand creation and its 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 consumers 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 cant 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 stores 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 consumers 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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cant be treated as strategy for creating better brand image in the mind of rural
consumers.
Consumers 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 marketers dominated communication channel and it plays very vital
role in creating brand preference. Consumers 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 retailers
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 lowcost 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
placeshaats, 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 cant 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 consumers
taste for the product esthetics and other out part is very basic and bold. Rural
consumers 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 As of rural marketing has been made, which
reveals that affordability is the main constraint rather than other three As of
rural marketing. Price of the product and the advertising strategy are the
highly affecting factors for purchase of durables. High price of agrocommodities 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. Dealers 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 companys focus from urban to rural.
Lily J. (2010), has evaluated consumers 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 cant 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 cropprices 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 LGs rural marketing
strategy with reference to Indian subcontinent under the guidance of K.R.Kim.
To establish LGs 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 competitors 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 companys 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 regionsto 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 markets 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 Ds: 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 consumers 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 multichannel distribution system but in long run should go for direct marketing
though own outlets or in joint venture with agro product companys 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
consumers 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 marketers end at regular interval of time it require to conduct
research to know the consumers 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 retailers 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 postpurchase problem is concerned, just one fifth are facing complaint from the
product, which has been resolved by the marketer by and large. The nonavailability 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 its 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 marketers 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
designers 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
consumers 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. Offerings 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 Ps 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 Indians 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 setup 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. Relatives 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
consumers 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 expost evaluation, appearing to have substantial price protection from the
existing products. Consumers will perceive not only the buyers 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.

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