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 FactorsGroupFamilyRole and StatusEconomic Factor

Durable purchases by and large are group decisions

1. It involves the considerable outlay of the family2. The user of the person may not necessarily be the one who

actually pays for it3. 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

Television Washing Machine

Refrigerator Air Cooler0

20

40

60

80

100

120

140

160

AlwaysMostlySometimesNever

Time of Purchase

After Harv

esting S

easo

n

Marriag

es/Other

Occasio

ns

Near F

estiva

ls:

Diwali

, Lohri;

etc.

Good Promotional

Offer

Start

of Summer

Start

of Winter

0

50

100

150

200

250

TelevisionWashing MachineRefrigeratorAir Cooler

Choice of Point of Purchase

SI. No. StatementsMost

Important ImportantNeither

Important Unimportant Most Mean MedianStd.

Deviation1 Received Best 135 120 26 6 13 1.81 2 0.99

Deal

2 Installment 46 111 98 35 10 2.51 2 1

Availability 3 Knew Dealer 85 71 113 24 7 2.32 2 1.04

before Hand

4 Conveniently 49 130 87 29 5 2.37 2 0.93

Located

5 Friend / 75 132 61 20 12 2.21 2 1.02

Relatives

Bought from

there and Recommended

6 Dealer Gives 29 212 32 21 6 2.21 2 0.79

Good after

Sale Service 7 Variety of 95 112 67 13 13 2.12 2 1.04

Brands with

the Dealer

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

Component

Communality1 2 3

Q234 0.726 6.79E-02 4.67E-02 0.532

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. Name of Dimension Label Statement (Factor Loading)

Factor 1 Location Convenience and Dealer Relationship

Q234 Conveniently located (0.726)

Q233 Knew dealer before hand (0.715)

Q235 Friends/relatives recommendation (0.635)

Factor 2. After Sale Service and Variety

Q236Q237

Dealer's good after sale service (0.775)Variety of brands with dealer (0.757)

Factor 3 Installment Facility

Q232 Installment availability (0.824)

Q231 Received best deal (0.610)

Intensity of Brand LoyaltySI. No. Alternatives Television

Washing Machine Refrigerator Air Cooler

1. Buy Any Other Brand 50

(16.7)

44

(14.6)

39

(13.0)

129

(43.0)

2. Look for it in Other Market or Area

163

(54.3)

177

(59.0)

158

(52.7)

103

(34.3)

3. Wait for Stock to Come 84

(28.0)

74

(24.7)

99

(33.0)

54

(18)

4. Do Not Purchase at all 3

(1.0)

5

(1.7)

4

(1.3)

14

(4.7)

Total 300

(100)

300

(100)

300

(100)

300

(100)

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.