A Study of Rural Consumer in Punjab

About Case
This case is about the significant considerations in the purchase of consumer durables (Refrigerator, Washing Machine, TV and Air Cooler) for rural consumers in Punjab with the help of advanced statistical approach 'Factor Analysis'. Finally, it presents a brief picture on intensity of brand loyalty of rural consumer.

Differences in consumer behavior in rural and urban market

Need-based buyer Behavior Value for money Different lifestyle and product usage environment Brand consciousness Brand loyalty

Factor Which Influence Purchase Decision Of Rural Consumers

Socio-cultural Factors Group Family Role and Status Economic Factor

Durable purchases by and large are group decisions

1. It involves the considerable outlay of the family 2. The user of the person may not necessarily be the one who actually pays for it 3. It is bought for the use of several members of the family

Objectives of the Study

To analyze the planning of brand choice, time of purchase, and choice of point of purchase. To ascertain intensity of brand loyalty and offer useful implications for marketer

Data Analysis
Planning of Brand Choice
160 140

120

100 Always 80 Mostly Sometimes 60 Never

40

20

0 Television Washing Machine Refrigerator Air Cooler

Time of Purchase
250 200

150

100

Television Washing Machine Refrigerator

50

Air Cooler

Choice of Point of Purchase

Unimportan t Statements Important Most Important Neither Important 1 Received Best Deal 2
3

135

120

26

13

1.81

0.99

Installment Availability Knew Dealer before Hand

46

111

98

35

10

2.51

85

71

113

24

7
5

2.32
2.37

1.04

Conveniently Located

49
75

130

87

29

0.93

Friend / Relatives Bought from there and Recommended Dealer Gives

Good after Sale Service

132

61

20

12

2.21

1.02

29

212

32

21

2.21

0.79

Variety of Brands with the Dealer

95

112

67

13

13

2.12

1.04

Std. Deviation

Median

SI. No.

Most

Mean

Choice of Point of Purchase A Factor Analytic Approach

Five point Likert scale. Factor analysis Rotation Method (Varimax)

Principal Component Analysis with Varimax

Statement / Factors
Q234

Component
1 2 3

Communality
0.532

0.726

6.79E-02

4.67E-02

Q233

0.715

-7.42E-02

0.341

0.633

Q235

0.635

0.259

-0.284

0.552

Q236

0.139

0.775

-1.81E-03

0.62

Q237

2.04E-02

0.757

5.80E-02

0.577

Q232

6.17E-02

-0.155

0.824

0.707

Q23I

-5.97E-03

0.275

0.61

0.448

Eigen Value

1.704

1.286

1.079

4.06

Percent of Variance

24.337

18.366

15.411

Cumulative Variance

24.337

42.703

58.114

Naming of Factors (Point of Purchase Choice)

Factor No.
Factor 1

Name of Dimension
Location Convenience Q234 and Dealer Relationship Q233 Q235

Label

Statement (Factor Loading)

Conveniently located (0.726) Knew dealer before hand (0.715) Friends/relatives recommendation (0.635) Dealer's good after sale service (0.775) Variety of brands with dealer (0.757)

Factor 2.

After Sale Service and Q236 Variety Q237

Factor 3

Installment Facility Q232 Q231 Installment availability (0.824) Received best deal (0.610)

Intensity of Brand Loyalty

SI. No. 1. Alternatives Buy Any Other Brand Look for it in Other Market or Area Television 50 (16.7) 163 (54.3) 84 (28.0) 3 (1.0) 300 (100) Washing Machine 44 (14.6) 177 (59.0) 74 (24.7) 5 (1.7) 300 (100) Refrigerator 39 (13.0) 158 (52.7) 99 (33.0) 4 (1.3) 300 (100) Air Cooler 129 (43.0) 103 (34.3) 54 (18) 14 (4.7) 300 (100)

2.

3.

Wait for Stock to Come

4.

Do Not Purchase at all

Total 

Types of consumer behavior

HIGH INVOLVEMENT LOW INVOLVEMENT

SIGNIFICANT DIFFERENCES AMONG BRANDS

Complex buying behavior

Variety seeking buying behavior

FEW DIFFERENCES AMONG BRANDS

Dissonance reducing behavior

Habitual buying behavior

Conclusion
The consumers have a preference/loyalty towards particular brand of consumer durables Consumers are not ready to buy any other type of brand available in the market in the circumstances when their most preferred brand for which they have already decided is not available or out of stock with the dealer preference will not change with the non-availability of the brand which the consumer has decided to purchase.