One Day International Conference on Embracing change and Transformation through Innovation and Creativity (ICECTIC-2020)
issue 3

One Day International Conference on Embracing change and Transformation through Innovation and Creativity (ICECTIC-2020)

Name of Author: Dr Manoj Bharatram Pandey

Designation: Assistant Professor

College Name: Central India College of Business Management and Studies

Contact No.: 9096051117

Email Id: manojpandey07@gmail.com

Does the Education and Income influence the buying behavior of Rural Consumer while buying branded personal care product?

Abstract:

The failure or success in any organization is depending on the behavior of the end-user or consumer who finally uses the product or any services. The purpose of the research was to understand the relation of Education and Income of rural consumers while buying branded personal care products. A total 1025 Sample size was selected from various village of Rural Nagpur District. One Way ANOVA and Kruskal-Wallis Test at 5% level of significance was used in the study which shows that there is significant relation between Education and decision making of rural consumer. It is also identified that brand which is endorsed by the celebrity influence the Income group of rural consumers while branded buying personal care product.

Keywords: Rural Consumer, Buying Behaviour, Perosnal Care Products.  

Need of the Study:

It is the behavior of the consumer which takes the decision to purchase or not to purchase the product. Depending on their decision and their usage, an organization decides which products to manufacture and to continue after considering the facts. The positioning of the product is depending on the consumption of the product and behavior of consumers may be related to any kind of products or services. There is a significant gap between the behavior of the urban consumer and the rural consumer.

For understanding behavior of rural consumer first it must understand, what are those factors, characteristics & barriers likes religion, caste, income, language and culture which directly or indirectly influence on rural consumer behavior? And which give clarity to understand the behavior of rural consumers, therefore, there is a need to conduct the study to identify the buying behavior of rural consumer of Nagpur district while preferring branded personal care products.

Changes in Literacy, Accessibility, Income, Occupation, Standard of Living etc. has created an opportunity to rural consumers where they can match their changing need from the desired available products. Such changes/developments in rural area offer an opportunity to people of rural to focus on social belonging and their personal grooming by preferring branded Apparel, Watches, Health Care, and Personal care along with daily needs. As all such branded product was not only an indispensable part of the urban consumers but due to such changes it playing an important role in rural consumer life also.

Personal care products nowadays spread its wing not only in urban but also in rural market where rural consumer grabbed such opportunity by use of both Domestic and Multinational personal care brands like skin moisturizers, perfumes, lipsticks, fingernail polishes, eye and facial makeup preparations, shampoos, hair colors, toothpastes, and deodorants/fragrance which were not possible before for them (rural consumer).

Literature Review:

Rural Consumer often is said to be price sensitive and least brand conscious (Kumar, et.al 2008). While talking about profile of rural consumers it can be observed that, the profile of rural consumers is changing rapidly. They are becoming more aware and buying more luxuries than ever before (Bishnoi, 2001). The rural consumers have gradually been graduating from generic to branded products. In such situations, brand name serves as the efficient mode of communication with rural consumers. Brand serves as the key confidence building source among the rural consumers. The available literature mentions that Awareness (Lokhande, 2004, Bajaj 2018, Godbole 2019), Quality (Mitra, Rashmi & Venu Gopal, Pingah, 2000, C. Madhavi & S. Arul Kumar 2006, Godbole, 2019, Meremadi et al. 2013), Price (Sarangapani and Mamatha, 2008), Promotional Activity (Mishra 2018), Income (Rana et.al. 2012, Lokhande, 2004, Juyal, 2015, Jha 2013), packaging and celebrity endorsements (Godbole 2019, Meremadi et al. 2013), faithful and trustworthy (Bhatnagar, 2011), age and education (Pradhan et.al 2015, Rana et.al. 2012), Opinion leaders (Sayulu and Ramana Reddy, 1996), gender (Sabharwal et al., Meena Siwach & A.S. Dahiya 2009), source of information (Juyal, 2015)  Influence the buying behavior of Rural Consumers. Brand as a motivator for purchase of mobile in rural and urban consumer of Amravati District (Akarte. et.al, 2012).  Even though most of the people were illiterate yet they were aware of brand. (Bhatnagar, 2011). Relatively little research had been carried out to specifically in Demography behavior of Rural Consumer in Nagpur District.

Objectives of the study:

  • To identify the relationship between level of education and purchase decision of rural consumer
  • To identify whether brand endorsed by a celebrity influences the purchase decision of the rural consumer

Hypothesis of the study:

  1. H0: Decision making for purchase is not influenced  by the level of education
    H1: Decision making for purchase is significantly influenced by the level of education
  2. H0: Irrespective of income group respondent think that brands endorsed by celeb influence their purchase decision.
    H1: Different income group respondent differs in decision making over brand endorsed by celeb.

Research Methodology

The research design for the research study is Descriptive. The information is collected with the help of an unbiased, non-disguised and structured questionnaire through personal Survey (Quantitative Method). Out of the 1170 questionnaires, 1030 questionnaires were received back that lies in the age group of 20-40 including consumer engage in Business/ Farming, Service, and housewives.The geographical area for conducting the research work was Rural Nagpur (Include 39 village which covered North, West and South region of Rural Nagpur).

The collected data has been analyzed with the help of SPSS software 21.0 and hypothesis has been framed and it was tested with the help of “One way ANOVA and Kruskal-Wallis Test”.

Data Analysis and Interpretation

Observed values for Hypothesis 1 is as:

ANOVA ( Primary Sources)table no.1

Inference: Since the Observed significance values (0.000) is less than the defined significance value (0.05) we have enough evidence to reject the null hypothesis, hence researcher can conclude that Decision making for purchase is significantly influenced by the level of education.

Observed values for Hypothesis 2 is as:

Kruskal-Wallis Test

(Primary Sources)Table No. 2                    Rank

Test Statisticsa,b

  • Kruskal Wallis Test(Primary Sources)table no.3
  • Grouping Variable: INCOME

Inference:

We will use the exact p value. It is a two-tailed p value (0.561) Since the p value is greater than the specified level (.05), we fail to reject H0. Thus, we have sufficient evidence to conclude that Irrespective of income group respondent think that brands endorsed by celeb influence their purchase decision.

Discussion:

Most of the consumer from rural Nagpur agreed that they mostly prefer those products which are easily available at low cost i.e., 56.79% whereas attractive packaging also played a key role in the purchase decision of rural consumer for personal care product which is 21.84%. Consumers give importance to packing rather than their price or quality while 15.53% considered for those brands which are endorsed by the celebrity. While collecting data it’s identified that Discount offer/Coupons/Free Samples scheme are also indispensable factors which are playing a key role in the purchase decision of rural consumers in Nagpur i.e., 06.79%.

The study revealed that 51.45% are graduates, 33.49% are undergraduates and 15.04% are postgraduates. Analysis of the data also confirmed that 68.44% rural consumers believe that their education help them to select most suitable product and Majority of them also agreed that they read instruction and details about product before taking purchase decision.

It is identified that 39.80% of the rural consumer is from low level family income group whereas 36.40% are from Middle level family income group and 19.41% are from upper level family income group. 15.53% considered for those brands which are endorsed by the celebrity than the other factors like Packaging & Labeling etc, and it’s observed that consumers believe that they attracted towards those brand which is endorsed by the celebrity and they have trust that celebrity will promote those brand which is reliable and acceptable for use.

Analysis of data revealed that brand endorsed by celeb influence 23.78% to low family income group, 15.04% to middle level family income group and 10.67% to Upper level family income group.

Conclusion:

At the end from the collection and analysis of data, discussion and findings following conclusion is drawn for the present research:

Education help consumer to select most suitable product and they read instruction and details about product before taking purchase decision. Consumers believe that they attracted towards those brand which is endorsed by the celebrity and they also believe that celebrity will promote those brand which is reliable and acceptable for use. Therefore, it is suggested that, Marketers should adopt dynamic marketing strategies like use of Social Media so as to target the rest of the rural consumer

Reference:

  • Akarte, A. and Arora, A. (2012),  Indian Telecom Market In Transitive Economy: A Comparative Study On Buying Behaviour Of Rural And Urban Buyers On Mobile Phone, International Journal of Business Economics & Management Research, 2(6), 15-26
  • Bajaj, R. (2018), The study of brand consciousness and brand loyalty of consumers with reference to soaps in Nagpur City, International Journal of Advance Research and Development, 3(4), 68-72
  • Bhatnagar, V. (2011), Brand choice and brand loyalty of rural consumers- A study with special reference to branded toothpastes, Journal of Multi-Disciplinary Research and Studies, 2(2), 3-16.
  • Bishnoi, V. K. (2001), Marketing of Consumer Durables in Rural Hariyana, Doctoral Thesis.
  • Godbole, S. (2019), A Study Of Consumer Preferences Towards Bathing Soap Market In Nagpur City, International Journal Of Research In Commerce & Management, 10(7), 12-20.
  • Juyal, A. (2015), Influence of Media Habits on Buying Behaviour of Urban and Rural Consumers in Uttrakhand, Asian Journal of Marketing, 4(2), 141-150
  • Kumar, S & Singh, M (2008), Brand Aspirations and Brand Switching Behaviour of Rural Consumers A case study of Haryana, Marketing to Rural Consumers- Understanding and tapping the rural market potential, IIMK, 108-128
  • Lokhande, M. (2004), Rural Marketing- A study of Consumer Behaviour, Indian Journal of Marketing, 34(12),  
  • Mishra A. K. (2018), Indian Rural Consumer’s Perception and their Buying Decisions, Journal of Emerging Technologies and Innovative Research, 5(6), 269-277.
  • Rana, S. and Tirthani, J. (2012), Effect of education, income and gender on impulse buying among Indian consumer an Empirical study of readymade garment customer, Indian Journal of Applied Research, 1(12), 145-146.

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