Understanding Farmers Buying

Behavior
Issues to be considered for understanding consumers:

- Who constitutes the market? Occupants

- What does the market buy? Objects
- Why does the market buy? Objectives
- Who participates in the market? Organizations
- How does the market buy? Operations
- When does the market buy? Occasion
- Where does the market buy? Outlets
Understanding Farmers Buying
Behavior
What is consumer behavior?

It is defined as the acts of individuals

directly involved in obtaining and using
economic goods and services, including
decision processes that precede and
determine these acts.
Understanding Farmers Buying
Behavior
Black Box Approach
- buying decisions are influenced by external
and internal stimuli.

- external stimuli are

(a) marketing mix elements (four Ps)
(b) environmental factors (economic,
technological, political and cultural)

- internal stimuli (cultural, social, personal and

psychographic)
Understanding Farmers Buying
Behavior
The outcome of the interaction of these
variables are decision set:
- product choice
- brand choice
- dealer choice
- purchase time
- purchasing amount
Understanding Farmers Buying
Behavior
Economic factors
- disposable income, savings, cash flows,
assets holdings
- government interventions through
taxes, loans, pricing
Life Style
- personal activities, personality, self
confidence, autonomy, dominance
Understanding Farmers Buying
Behavior
Motivation
- food security, status, compulsion
(resource scarcity)
Perception
- the process by which an individual
selects, organizes and interprets
information inputs to create a meaningful
picture of a work
Understanding Farmers Buying
Behavior
Belief and attitude
- belief is a descriptive thought that a
person holds about something
- attitude refers to favorable or
unfavorable cognitive evaluation,
emotional feeling and action towards
some products
- belief vis--vis established system of
values and patterns
Understanding Farmers Buying
Behavior
Social factors
- norms and values define the structure
of the relationship of the member in the
society
- various interest groups like family,
neighbors and community and any
reference group
Understanding Farmers Buying
Behavior
Investment
Operating cost
Information
Agents, Friends Search Increase in Profits

Awareness Social
Evaluation of
Alternatives
Culture
Evaluation Purchase decision

Benefits Satisfaction

Reliability
Dissatisfaction
Performance
Understanding Farmers Buying
Behavior
Awareness
- at this stage farmer recognize the problem
- comes to know about a number of products
which can be used to solve the problem
- but lacks any detailed information or
knowledge
- this process needs effective extension work
given low literacy level of farmers in India
Understanding Farmers Buying
Behavior
Information search
- at this stage a farmer develops enough
interest about an innovation
- seek information about its nature,
function, operations and usefulness
- behavior of the farmer is purposive
Understanding Farmers Buying
Behavior
Evaluation
- farmer evaluates the information to
determine the applicability of the product to
his personal circumstances and farming
situations
- evaluates the utility and relative
advantages of the product in relation to
available alternatives and to his personal
aims and goal
- does the cost benefit analysis of the
product
Understanding Farmers Buying
Behavior
Adoption
- farmer makes actual purchase
- integrates the product into his system of
farming operations
Post purchase evaluation
- satisfaction or dissatisfaction based on
the performance of the product
- guiding force for future decisions and
recommendation to fellow farmers
- create brand loyalty