Determinants of Buying Behaviour of Rural Consumers- with Reference to Food & Beverages

Indian food and beverage market has observed strong growth during the past few years. Economic liberalization and rising income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to manufacturers of branded products to convert consumers to branded products. The study conducted followed both explorative and descriptive research design. Rural area around Coimbatore city is chosen as the sample population. For the study two blocks out of eight were selected and from each block two villages were chosen as the sample regions. And from each sample village thirty sample subjects were chosen for the survey, in total 60 respondents were interviewed. The study concluded that there exist differences between the perceived Thus it suggested to the FMCG manufactures & marketers to frame strategic marketing plans specifically for rural consumers. Introduction. Indian food and beverage market has observed strong growth during the past few years. Economic liberalization and rising income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas.. Food and Beverages segment comprises of the food processing industry, health beverage industry, bread and biscuits, chocolates & confectionery, Mineral Water and ice creams. India represents potential untapped market for FMCG products like tea, snacks biscuits and health drinks. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to manufacturers of branded products to convert consumers to branded products. Conceptual Framework Product differentiation is a business level strategy in which firms attempt to create and exploit differences between their products and those offered by competitors. These differences may lead to competitive advantage if customers perceive the difference and have a preference for the difference. Marketers can differentiate products by making them customized to an individual say conformance quality, durability, reliability reparability, style etc. Many products can be differentiated in form – the size, shape, or physical structure of a product. Mass customization is the ability of the company to meet each customer’s requirement – to prepare on a mass basis individually designed products, services, programs and communications. EXHIBIT: 1 BASIS OF PRODUCT DIFFERENTIATION Objectives of the Study The objectives focused in this article are: • To understand the socio-economic status of consumers, influences of various media/medium on their buying behaviour and their buying attitude in the rural areas of Coimbatore city. • To critically evaluate the determinants of product selection and consumers’ level of satisfaction towards food and beverages products available in the market. Research Methodology The study conducted followed both explorative and descriptive research design. Rural area around Coimbatore city is chosen as the sample population. For this study, the researcher has adopted convenience sampling techniques in collection of primary data. As on 2013 March, this district has seven administrative blocks (Annur, Coimbatore (North), Coimbatore (South), Mettupalayam, Pollachi, Sulur and Valparai) and 295 revenue villages. For the study, two blocks were selected and from each block two villages were chosen as the sample region. And from each sample village, thirty sample subjects were chosen for the survey, in total 60 respondents were interviewed. Results and Discussion Sheth’s (1981) model on merchandise buying behavior explained retail buying through general explanatory factors such as price, quality, company image/brand and delivery reliability. He says consumer interest is centered on the final decision (to buy or not) and factors influencing that specific moment in a buying process. According to Holm-Hansen and Skytte (1997) factors like price quality etc., are obviously important but persistent focus on these types of variables does not seem to be able to catch the complexity of retail buying in the 21st century and also lends a rather static nature to the models. The results and discussion of the empirical survey has been presented in this section of the research article. TABLE: 1 SOCIO-ECONOMIC PROFILE OF THE RESPONDENT Sl. No Variables Source No. of the Respondents Percentage 1. Gender Male 28 46.00 Female 32 54.00 Total 60 100 2. Age Less than 18 2 4.00 18-25 28 46.00 25-35 7 12.00 Greater than 35 23 38.00 Total 60 100


Introduction.
Indian food and beverage market has observed strong growth during the past few years. Economic liberalization and rising income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas.. Food and Beverages segment comprises of the food processing industry, health beverage industry, bread and biscuits, chocolates & confectionery, Mineral Water and ice creams. India represents potential untapped market for FMCG products like tea, snacks biscuits and health drinks. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to manufacturers of branded products to convert consumers to branded products.

Conceptual Framework
Product differentiation is a business level strategy in which firms attempt to create and exploit differences between their products and those offered by competitors. These differences may lead to competitive advantage if customers perceive the difference and have a preference for the difference. Marketers can differentiate products by making them customized to an individual say conformance quality, durability, reliability reparability, style etc. Many products can be differentiated in form -the size, shape, or physical structure of a product. Mass customization is the ability of the company to meet each customer's requirement -to prepare on a mass basis individually designed products, services, programs and communications.

EXHIBIT: 1 BASIS OF PRODUCT DIFFERENTIATION
Objectives of the Study The objectives focused in this article are: • To understand the socio-economic status of consumers, influences of various media/medium on their buying behaviour and their buying attitude in the rural areas of Coimbatore city. • To critically evaluate the determinants of product selection and consumers' level of satisfaction towards food and beverages products available in the market.

Research Methodology
The study conducted followed both explorative and descriptive research design. Rural area around Coimbatore city is chosen as the sample population. For this study, the researcher has adopted convenience sampling techniques in collection of primary data. As on 2013 March, this district has seven administrative blocks (Annur, Coimbatore (North), Coimbatore (South), Mettupalayam, Pollachi, Sulur and Valparai) and 295 revenue villages. For the study, two blocks were selected and from each block two villages were chosen as the sample region. And from each sample village, thirty sample subjects were chosen for the survey, in total 60 respondents were interviewed.

Results and Discussion
Sheth's (1981) model on merchandise buying behavior explained retail buying through general explanatory factors such as price, quality, company image/brand and delivery reliability. He says consumer interest is centered on the final decision (to buy or not) and factors influencing that specific moment in a buying process. According to Holm-Hansen and Skytte (1997) factors like price quality etc., are obviously important but persistent focus on these types of variables does not seem to be able to catch the complexity of retail buying in the 21 st century and also lends a rather static nature to the models. The results and discussion of the empirical survey has been presented in this section of the research article.

Source: Primary Data
In this survey it has been observed that majority of the sample population were able to recognize 4-6 brands of tea/coffee sold in retail markets and they are able to classify both local and national sellers. Similarly the sample subjects have said that they are aware of three or less health drink brands. The table clearly reveals that 82%and 78.33% of the consumers were aware of more than six brands in Snack foods and biscuits respectively. Generally marketers' attempts to educate customers regarding various aspects of the product/brands which do influence the rural purchase decisions. It is found from this study that majority (68%) of the rural consumes are influenced by TV commercial and 60% are influenced by the primary group like family members/ friends. Among the sample subjects, 44 per cent of the consumers' prefer buy new or innovated product of particular brand (i.e., when new products are introduced in the market). On the contrary 22 per cent of rural subjects have said that wait till the products get popularized in the market, 18 per cent exercise buying when offers /discounts re announced and only 16 per cent are observed to be brand loyal consumers. From the survey it is found that majority of rural educated consumers prefer quality product, so they tend to shift from one brand to another. The second rank is assigned to taste as the consumer want to try new/innovative taste, sample consumers are found to be price conscious and is given rank 3 and on the contrary people of rural masses place importance to health benefits criteria. Similarly, consumers also give importance for quantity of the product, brand, promotional offers, product availability and brand reputation, so they incline to shift from one brand to another.
H1: There exist no differences between the adult and young consumers' perception towards tea, coffee, health drinks and snacks products marketed in rural India. The empirical survey results elucidate that adult and young consumers' perception towards tea, coffee, health drinks and snacks products differed significantly. Adult consumers prefer to buy those products that have more nutrient values and of reputed brands i.e., trusted products. Whereas, young prefer more flavored health beverages. In case of tea/coffee the strength and colour of the products determine the buying behaviour among the consumers'. In case of the snack foods and biscuits the young consumers are found ready to compromise on good health for the taste, crispiness, price, brand reputation, quantity and promotional offers. While, the adults do mind these factors while buying the product.

Findings and Suggestion
From the survey, it has been found that family members, shop keepers i.e., local retailers, radio, television commercials greatly influences rural consumers buying decisions. Sample consumers' prefer buying new or innovated product of particular brand (i.e., when new products are introduced in the market). Moreover, the survey results elucidate that adult and young consumers' perception towards tea, coffee, health drinks and snacks products differed significantly.. To unleash the existing and growing market potentials in rural regions the markers have to setup essentially marketing plans that include: • Enhanced nutrient quality as consumer prefer eating / drink health foods, • Offer more quantity at economic price, • Introduction of product variants for different segment of adults and youth buyers, • Introducing product categories based on socio-economic class and their buying preferences, • Marketers are also suggested to strengthen their networks especially in rural areas and maintain a widespread distribution network for effective stock availability for the rural consumers'. At the same marketers' must make effects to know the price points at which the buying behaviour are influenced and the changes in buying size so that the prominent brands can conquer more market share in rural regions.

Conclusion
FMCG business in rural India is showing average annual growth of about 11per cent per annum. To take opportunity and build higher market share the top food & beverages brand Multinational companies and national brand companies have to act local (market/ region specified) as new terminology is emerged as 'Go local'. Those who could map the taste and behavioral pattern of rural consumers and adopted flexibility in their penetration policy, they succeeded in getting the major share of the rural pie. Thus many believe, the country needs 'Credible India' more than 'Incredible India Campaign' which will be oriented more to rural than urban India.