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Journal of Indian Institute of Management Bangalore

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Understanding Rural Buyer Behaviour

Volume 15, Number 3 Article by Mithileshwar Jha September, 2003

Understanding Rural Buyer Behaviour :

Rural markets have long been the last resort of the beleaguered Indian marketer. Are rural buyers really different? M Jha attempts to provide a framework for understanding rural buyer behaviour and to dispel some myths.

Customers in India can be divided into the Urban, Rural and Rurban groups in terms of geography and sociological characteristics. Further, we may also consider behaviours in specific interaction contexts of these three markets. M Jha suggests developing a framework along these two dimensions, and mapping out individual participant behaviour and interactive behaviour to explore and understand rural buyer behaviour. Further he stresses the need to tap into associated disciplines like rural sociology, agricultural economics and psychology which have developed considerable insights in the field, an interaction which Marketing has woefully neglected without developing sufficient rigour of its own.

M Jha also revisits some common myths such as rural markets being uneconomical to serve on account of their wide dispersion, wealth being concentrated in the metros, the role of elders and women in decision making, the low aspiration levels, non-rationality, price sensitivity, lack of brand awareness and quality consciousness of the rural consumer.

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