A study on Rural consumer behavior

with specific reference to rural areas

in Erode district Tamilnadu


A study by
Mrs Booma Halpeth
Lecturer, Ramniranjan Jhunjhunwala College, Ghatkopar (w), Mumbai -- 400086
Mrs Nandini Jagannarayan
Lecturer, Ramniranjan Jhunjhunwala College, Ghatkopar (w), Mumbai -- 400086
Rural consumer behavior with specific reference to rural areas in Erode district
Tamilnadu
OBJECTIVES OF THE STUDY
Investigating whether or not retail outlet
patronage is explained or influenced by outlet
related factors.
2a. Studying the relationship between
consumer related factors and choice of outlet.
b. The relationship between the frequency
of shopping trips and consumer perception of
the various attributes of retail outlets.

OBJECTIVES OF THE STUDY
3. Investigating the existence or otherwise of
store loyalty among patrons of Modern Retail
Outlets.
4. The relationship between consumer
satisfaction and attitudes towards shopping.
5. The spending habits of Consumers in rural
areas.

METHODOLOGY
Primary data source - Interview schedule and
observation method of data collection
Secondary data source

Erode District
Villages studied
Gobichettipalayam, Chennimalai

PROFILE OF THE MARKET
Chennimalai had a population of 15,526.
Males constitute 51% of the population and
females 49%. Chennimalai has an average
literacy rate of 75%, higher than the national
average of 59.5%; with male literacy of 83%
and female literacy of 67%. 8% of the
population is under 6 years of age.

PROFILE OF THE MARKET
Chennimalai stands No.1 Rank in Hand made
Bed sheets, Handicrafts, Lungies, Hand Made
Curtains, Hand Looms & Print Designs.
Garments from here travels to all parts of
Tamil Nadu & even North India. Many people
here are running their Business in HandLooms
& Power Looms.

PROFILE OF THE MARKET
The city is developing quickly and has been
described by the government as "Bi-
functional", with 31% of the work force
engaged in agriculture, 56% in trading and
other activities and 13% in industry.
Age group Male Female Total
Under 18 16 18 34 (17)
18-29 28 34 62(31)
30-40 22 12 34(17)
40-54 35 23 58 (29)
55-65 7 5 12 (6)
Total 108 92 200
Age-wise and genderwise distribution of respondents
Age-wise and genderwise distribution
of respondents




Age-wise and genderwise distribution of respondents

Monthly family income No of families
Less than 2000 0
2000- 5000 0
5000-7500 10 (5)
7500-10000 22 (11)
Above 10000 168 (84)
Total 200
Monthly income of the family members

Monthly income of the family members
Average
spending
on
Less than
2000
2000-5000 5000-
10000
Above
10000
Total no of
respondents
Food 13 (6.5) 32 (16) 131 (65.5) 24 (12) 200
Clothing 2 (1) 46 (23) 78 (39) 74 (37) 200
Education 0 15 (7.5) 4 (2) 181 (90.5) 200
Entertainme
nt
2 (1) 165(82.5) 30 (15) 3 (1.5) 200
Others,
specify
0 0 0 0 200
Total 200
Average Spending pattern

Average Spending pattern

Monthly spending on retail
products
No of families
Less than 2000 0
2000- 5000 0
5000-7500 46 (23)
7500-10000 32 (16)
Above 10000 122 (61)
Total 200
Monthly retail consumption

Monthly retail consumption

Groceries purchased from No of respondents
Local kirana shops 122 (61)
Wholesale mandis 16 (8)
Supermarkets 62 (31)
Others, specify
Total 200
Place of purchase of groceries

0
20
40
60
80
100
120
140
No of respondents
Local kirana
shops
Wholesale
mandis
Supermarkets
Place of purchase of groceries
Particular about any brand? No of respondents
Yes 181 (90.5)
No 19 (9.5)
Total 200
Brand particularity/ awareness

Prefer going to the kirana shop/
supermarket
No of respondents
Yes/ No
Availability of all products 89 (45)
Friendliness of the employees/ shopkeeper 144 (72)
Nearness to place of work 12/(6)
Nearness to place of residence 137(68.5)
Credit facility 1(0.5)
Any others, specify 0
Free home delivery 182(91)
Total 200
Shopping location

Have you ever purchased any products on
seeing advertisements?
No of respondents
Yes (always) 72 (36)
No (never) 85 (43)
Sometimes 43 (21)
Quite often 0
Total 200
Impact and influence of Advertisement
Impact and influence of Advertisement

What would you say about advertisements of
the products you use?
No of respondents
Is consistent with company image
23 (12.5)
Is creative/interesting
48 (24)
Is informative
42(21)
Is memorable
56(28)
Is original
12 (6)
Is influential
5 (2.5)
Is believable
10 (5)
Is relevant to the product advertised
4 (2)
Total 200
Influence of Advertisement
What is your perception about mall? Respondents
Will have a place for entertainment 36 (18)
Will hamper the villages culture 92 (46)
children Will get spoilt 72(36)
we Will not favour a mall gowns area 146(73)
we are happy with our existing shopping habit 186(93)
Total 200
Respondents Perception about malls

Conclusion
There have been studies conducted in rural areas where there was no
scope for malls due to problems like
Physical Distance,
Language/Culture,
Accessibility,
Money/Expensive,
Lack of Human Resource,
Competition,
Technology,
Rules & Regulation,
Lack of Information,
Size of the Market,
Buying Power,
Image etc.
Conclusion
But, this rural area has proved to have a
certain unique features like increased
affordability of the consumers but their
consumption pattern was found to be
different.
They spend a major portion of their income
on education and entertainment.

Conclusion
In spite of a well developed infrastructure and
increased affordability, consumers prefer to
stick to their regular shopping habits/ outlets.
They value the relationship with the shop
keepers more than anything.


Conclusion
To them, a customer has to be treated by shopkeeper
CUSTOMERS
C - Care for the customers
U - Understand the customers
S - Study the customers
T - Trust the customers
O - Oblige the customers
M - Meet the customers
E - Evaluate the customers
R - Response the customers
S - Sell and win the customers