A STUDY ON BUYING PATTERN OF RURAL CONSUMERS WITH REFERENCE TO SELECTED CONSUMER DURABLE GOODS IN NAMAKKAL DISTRICT Thesis submitted to the BHARATHIDASAN UNIVERSITY in partial fulfilment of the requirement for the award of the degree of DOCTOR OF PHILOSOPHY IN MANAGEMENT By R. VIJAYAKUMAR Under the Guidance of Dr. N. ABDUL JALEEL MBA., M.Com., M.Phil., PGDBA., FMSPI., Ph.D. Associate Professor and Research Supervisor Research Department of Business Administration Khadir Mohideen College Adirampattinam 614 701 BHARATHIDASAN UNIVERSITY TIRUCHIRAPPALLI - 620 024 Tamil Nadu MARCH - 2012
Dr. N. ABDUL JALEEL MBA., M.Com., M.Phil., PGDBA., FMSPI., Ph.D. Associate Professor and Research Supervisor, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam 614 701. CERTIFICATE This is to certify that the thesis entitled, A Study on Buying Pattern of Rural Consumers with Reference to Selected Consumer Durable Goods in Namakkal District submitted to Bharathidasan University, Tiruchirappalli is a bonafide record of the research work done by R. Vijayakumar under my guidance. Further it is certified that this record has not previously formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or any other similar title and that the thesis is an independent work by the candidate. Place: Adirampattinam Date : Dr. N. ABDUL JALEEL Research Supervisor
R. VIJAYAKUMAR Research Scholar, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam 614 701. DECLARATION I hereby declare that the thesis entitled, A Study on Buying Pattern of Rural Consumers with Reference to Selected Consumer Durable Goods in Namakkal District has been originally carried out by me under the guidance and supervision of Dr. N. ABDUL JALEEL, Associate Professor and Research Supervisor, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam. This work has not been submitted previously either in whole or in a part for any other degree or diploma to any other university. Place: Adirampattinam Date : R. VIJAYAKUMAR Research Scholar
ACKNOWLEDGEMENT On this occasion, I would like to thank the almighty who stood by my side in all my situations to overcome the difficulties throughout the work. I am thankful to Dr. S. Mohamed Aslam, Secretary, Khadir Mohideen College, Adirampattinam and Dr. A. Mohamed Abdul Khader, Principal, Khadir Mohideen College, Adirampattinam for enabling me to do my research in the college. My heartfelt thanks and gratitude to my beloved and respected guide Dr. N. Abdul Jaleel, Associate Professor and Research Supervisor, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam who has been lucid in his approach and intellectually enough to guide and advice to carry out this research venture successfully showing a lot of patience during the period of study. I am grateful to Doctoral committee member Dr. A. Chandrasekaran, Associate Professor in Commerce, Raja Sarfoji Govt. College (Autonomous), Thanjavur for his valuable suggestion. And I am also very thankful to Dr. O. M. Haja Mohideen, HOD, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam for enlightening me with his valuable words and suggestions to complete the research successfully on time. I am thankful to Dr. S. Shahul Hameed, Associate Professor, Dr. A. Mohamed Siddique, Associate Professor and Dr. A. Mohamed Nazar, Associate Professor, Research Department of Business Administration, Khadir Mohideen College, Adirampattinam for their moral support throughout this work. I thank Dr. S. Gunasekaran, Secretary and Managing Trustee, Dr. T. O. Singaravel, Correspondent and Managing Trustee, Dr. S. Ramalingam, Managing Trustee, Dr. M. Muthusamy, Managing Trustee, Dr. K. S. Palaniappan,
P.R.O, Prof. T. P. Gnanasekaran, Trust Member of Vidyaa Vikas Group of Educational Institutions, Tiruchengode who have inspired me in the successful completion of the research work. And I also thank to Dr. S. Sundaram, Principal, Vidyaa Vikas College of Engineering and Technology, Tiruchengode for the continuous support to carry out this work. I am also thankful to the Librarians of the Bharthidasan University - Tiruchirappalli, Bharathiyar University - Coimbatore, Madurai Kamaraj University - Madurai, Alaggappa University - Karaigudi, Pondicherry University - Pondicherry and PSG Institute of Management (Learning Resource Centre), Coimbatore for permitting me to refer the research articles, books, journals and magazines and also I am thankful to Dr. K. Hari, my friend and statistical analyst for providing me with the results of my work by applying appropriate statistical tools and moral support for the completion of this work. I am thankful to my father Mr. S. Rangasamy, who instilled in me the spirit of curiosity and reflective thinking and also my mother Mrs. R. Pappathi, who sowed the seeds of confidence in me. I record my sincere thanks with a deep love to my beloved wife Mrs. S. Rajeswari and my chellam Master V. R. Manooj who have sacrificed their pleasures for the sake of accomplishing my endeavour by proof reading and extending constant support to accomplish this venture within the stipulated time. And I am very thankful to my faculty members for their valuable ideas and giving guidelines for effective work. Last but not least I thank my friends for giving their valuable suggestions which helped me to complete this work. R. VIJAYAKUMAR
CONTENTS Chapter No. Particulars CERTIFICATE DECLARATION ACKNOWLEDGEMENT LIST OF TABLES LIST OF DIAGRAMS ABBREVIATIONS INTRODUCTION AND RESEARCH DESIGN Page No. 1.1 Introduction about Rural Market 1 4 1.2 Significance of the Rural Market 4 15 1.3 Factors Determining Consumer Behaviour 15 20 1.4 Understanding the Rural Consumers 20 30 I 1.5 Statement of the Problem 30 33 1.6 Scope of the Study 33 34 1.7 Objectives of the Study 34 1.8 Hypothesis 34-35 1.9 Methodology 35 37 1.10 Limitations of the Study 38 1.11 Chapter Scheme 38-39 II REVIEW OF LITERATURE 40 74 3.1 Market Scenario of Consumer Durable Goods in 75 96 India III 3.2 Profile of the Research Area 97 103 3.3 Profile of the Product 104 106
ANALYSIS AND INTERPRETATIONS OF DATA IV Demographic Profile and Buying Pattern of the Respondents V Influence of Demographic Factors on Buying Pattern of Respondents Factors Responsible for Selecting the Consumer VI Durable Goods and problems faced by the Rural Consumers 107 159 160 216 217 228 FINDINGS, SUGGESTIONS AND CONCLUSION 229 244 VII 7.1 Findings 229 240 7.2 Suggestions 241 242 7.3 Conclusion 243 244 7.4 Scope for Further Research 244 Bibliography i - x Appendix 1. Questionnaire xi - xviii Sample Selection xix xx Articles Published in the Journals
LIST OF TABLES Table No. Table Page No. 1.1 Rural and Urban Population of India 8 1.2 Distribution of Employment 9 1.3 Distribution of Villages In India 9 1.4 Source of Income in India 10 1.5 Classification of Population on the basis of Literacy Levels in Rural and Urban 11 1.6 Rural-Urban Income Comparison 15 3.1 Size of Durable Goods Industry 84 3.2 Sales Trend in Consumer Electronics Market 86 3.3 Rural Demand for Consumer Durables 89 3.4 Sales of CTV 89 3.5 Sales of Refrigerator 90 3.6 Sales of Washing Machines 91 3.7 Sales of DVD Player 91-92 3.8 Rural Demand for Consumer Durable Goods 92 3.9 Sales of Microwave Oven 93 3.10 Sales of Water Heater 94 3.11 Percentage of Shares of Consumer Goods in Rural and Urban 95
3.12 Classification of Population as per 2001 Census 99 3.13 Taluk Wise Population in Namakkal District 100 4.1 Gender of the Respondents 107 4.2 Age Group of the Respondents 108 4.3 Educational Qualification of the Respondents 109 4.4 Marital Status of the Respondents 110 4.5 Family Life Cycle of the Respondents 111 4.6 Members in the Respondents Family 112 4.7 Dependents in the Respondents Family 112 4.8 Earning Members in the Respondents Family 113 4.9 Occupation of the Respondents 114 4.10 Family Income of the Respondents 115 4.11 Henry Garret Method for Ranking the Factors Influencing The Need Recognition 117 4.12 Decision Making Before Purchase 118 4.13 4.14 4.15 4.16 4.17 Factor Analysis Model for Identifying the Sources Consulted by the Respondents for CTV Factor Analysis Model for Identifying the Sources Consulted by the Respondents for Refrigerator Factor Analysis Model for Identifying the Sources Consulted by the Respondents for Fan Factor Analysis Model for Identifying the Sources Consulted by the Respondents for Mixie Factor Analysis Model for Identifying the Sources Consulted for Grinder 119 121 123 126 128
4.18 4.19 4.20 4.21 4.22 Factor Analysis Model for Attributes Consider Before Purchase Decision of CTV Factor Analysis Model for Attributes Consider Purchase Decision of Refrigerator Before Factor Analysis Model for Attributes Consider Before Purchase Decision of Fan Factor Analysis Model for Attributes Consider Before Purchase Decision of Mixie Factor Analysis Model for Attributes Consider Before Purchase Decision of Grinder 131 133 136 139 141 4.23 Number of Brands Considered 144 4.24 Purchase of Desired Brand 145 4.25 Brand Name of the CTV Using by the Respondents 146 4.26 Brand Name of the Refrigerator Using by the Respondents 147 4.27 Brand Name of the Fan Using by the Respondents 148 4.28 Brand Name of the Mixie Using by the Respondents 149 4.29 Brand Name of the Grinder Using by the Respondents 150 4.30 Source of Purchase 151 4.31 Mode of Purchase 152 4.32 Time of Purchase 153 4.33 Number of Years Using the Goods 154 4.34 Weighted Average Score for Ranking the Satisfaction Factors of Consumer Durable Goods 156 4.35 Disposal of the Goods 157 4.36 Switch over from the Present Brand 158
4.37 Recommendation of the Brand to others 159 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 and their Need Recognition for CTV and their Need Recognition for Refrigerator and their Need Recognition for Fan and their Need Recognition for Mixie and their Need Recognition for Grinder and their Information Search for CTV and their Information Search for Refrigerator and their Information Search for Fan and their Information Search for Mixie and their Information Search for Grinder and evaluation of alternatives for CTV and evaluation of alternatives for Refrigerator and evaluation of alternatives for Fan and evaluation of alternatives for Mixie and evaluation of alternatives for Grinder and their Time of Purchase for CTV and their Time of Purchase for Refrigerator and their Time of Purchase for Fan 161 162 163 164 165-166 167 169 170-171 172 173 174 175 176 177 178 179 180 181-182 183 185-186 187 188 189 190
5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 and their Time of Purchase for Mixie and their Time of Purchase for Grinder and their Mode of Purchase for CTV and their Mode of Purchase for Refrigerator and their Mode of Purchase for Mixie and their Mode of Purchase for Grinder and their Satisfaction Level for CTV and their Satisfaction Level for Refrigerator and their Satisfaction Level for Fan and their Satisfaction Level for Mixie and their Satisfaction Level for Grinder Friedman and Kendall s Co-efficient Concordance Test Result Regarding the Ranking of Decision made by the Family Members for CTV Friedman and Kendall s Co-efficient Concordance Test Result Regarding the Ranking of Decision made by the Family Members for Refrigerator Friedman and Kendall s Co-efficient Concordance Test Result Regarding the Ranking of Decision made by the Family Members for Fan Friedman and Kendall s Co-efficient Concordance Test Result Regarding the Ranking of Decision made by the Family Members for Mixie Friedman and Kendall s Co-efficient Concordance Test Result Regarding the Ranking of Decision made by the Family Members for Grinder Factors Responsible for Buying Decision of CTV using Multiple Regression Factors Responsible for Buying Decision of Refrigerator using Multiple Regression 191-192 193-194 196 197 198-199 200 201 202-203 204-205 206 207 208 209 210 211 212 213 214 215 216 217 219
6.3 6.4 6.5 6.6 Factors Responsible for Buying Decision of Fan using Multiple Regression Factors Responsible for Buying Decision of Mixie using Multiple Regression Factors Responsible for Buying Decision of Grinder using Multiple Regression Factor Analysis Model for Problems faced by the Rural Consumers 220 222 224 226
LIST OF DIAGRAMS Diagram No. 3.1 Sales of Refrigerator 3.2 Namakkal District Map PARTICULARS 3.3 Taluks of Namakkal District 3.4 Blocks in Namakkal District 4.1 Age Group of the Respondents 4.2 Educational Qualification of the Respondents 4.3 Occupation of the Respondents 4.4 Family Income of the Respondents Page No. 90 102 103 103 108 109 114 115
ABBREVIATIONS S.No. Abbreviations Expansions 1 AD Anno Domini 2 AIO Activities, Interest and Opinions 3 ASSOCHAM Associated Chamber of Commerce and Industry 4 AVV Audio Visual Van 5 AVP Van Audio Visual Promotional Van 6 B & W Black and White 7 BoP Bill of Payment 8 BIMTECH Birla Institute of Management and Technology 9 BPL Below Poverty Line 10 C & FA Cost and Freight Agent 11 CAGR Compound Annual Growth Rate 12 CEAMA Consumer Electronics and Appliances Manufacturers Association 13 CETMA Consumer Electronic and Television Manufacturers Association 14 CII Confederation of Indian Industry 15 CTV Colour Television 16 DVD Digital Video Disc
17 FICCI Federation of Indian Chambers of Commerce and Industry 18 FMCG Fast Moving Consumer Goods 19 FY Financial Year 20 HH House Hold 21 Ho Null Hypothesis 22 IBEF India Brand Equity Foundation 23 ICFAI 24 IFFCO Institute of Charted Financial Analyst of India Indian Farmers Fertilizer Co-operative Limited 25 IIMB Indian Institute of Management Bangalore 26 IIRM Institute of Insurance and Risk Management 27 IMRB Indian Market Research Bureau 28 IRMA Institute of Rural Management Anand 29 IRS Indian Readership Survey 30 KVIC Khadi and Village Industries Commission 31 LCD Liquid Crystal Display 32 LED Lighting Emitting Diode 33 LPG Liquefied Petroleum Gas 34 MART Market Assessment of Research and Technology 35 MDP Markov Decision Process
36 MIMAP Master in Innovative Management and Administration Public 37 MNC Multi National Corporation 38 MOC Ministry of Commerce 39 MSP Minimum Support Prices 40 NABARD National Bank for Agricultural and Rural Development 41 NCAER National Council for Applied Economic Research 42 NSSO National Sample Survey Organization 43 PCO Public Call Offices 44 POP Point of Purchase 45 PPP Purchasing Power Parity 46 PTI Press Trust of India 47 PQ Price and Quality 48 PRA Participatory Rural Appraisal 49 RMAI Rural Marketing Association of India 50 SHG Self Help Group 51 STD Subscriber Trunk Dialing System 52 USD United States Dollar 53 UN United Nation
54 VCD Voice Compact Disc 55 WOMA Word of Mouth Advertising 56 XIM Xavier Institute of Management