Change in Consumer Behaviour

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Paper Title- Changing consumer behavior for mobile phones in rural India Author Name- Rot And Affiliation- Student, Counterpart Institute of Management Patina 1 . Introduction Rural India is known for its vivid diversity. With 6, 38,000 villages; India houses world’s largest rural population. India has 711. 6 million rural population and 132. 4 million rural households which comprise of 70% of total Indian population. The peculiar thing about this population is that their consumption pattern is evolving day by day.

Many of the urban products are making their ways to rural market. Mobile phone is en such product. As urban market is getting saturated, marketers are looking at rural market as an option to grow their market share. 2. Literature review According to study done by researchers in this area so far, rural consumers emphasis on price and the features available in the mobile while making a choice for mobile phone. Despite of low income and lack of knowledge of technology, they are fascinated by the advanced features of mobile phones. They look for optimum utilization of money.

There is a shift in the consumption pattern during the mid-sass in both the rural and the urban sectors. For the lowest expenditure class in the rural sector, the shift is away from food items. Nowadays, rural youth are expending on lifestyle products. The expenditure on entertainment has increased considerably. Researches show that consumption pattern of a household, in general, is affected by several factors, which may be of economic and non-economic in nature. Economical factors like income and occupation and non economical factors like gender age; determine the consumption pattern of an individual. . Research methodology Based on the findings from existing literature, the impact of demographic variables, ay age, personal income, family income, family size and occupation; on the consumer behavior for mobile phones was studied. Apart from this, effect of price of the mobile phone and its features on the purchase decision taken by the consumers was studied as well. The research is of descriptive type. The data for study have been collected through personal interview from “Manual” village in Patina Rural Block in Patina district of Briar. Judgmental sampling method has been used.

The data for study has been collected through semi structured personal interview. The data has been collected primarily from males because males were found to be he prime purchaser and influencer for mobile handset. Sample size is hundred. The sample contains respondents of 14 to 56 years of age (Fig. 1). 4. Village demography Manual is one of the villages in Patina Rural Block in Patina district of Briar. The total population of the village is 5,063(Census 2001). The total number of households in Manual is 682. The literacy rate is 42. 44%. The female literacy rate is 25. 3%. The male literacy rate is 56. 59%. Female to male ratio of Manual is 83. 77% as compared to female to male ratio of Briar as 91. 93%. The literacy rate of the village is 42. 4% compared to the literacy rate of state 47 (Census 2001). All this data has Change in Consumer Behavior By Squalliest improved ill a e w n the ongoing development tot Bi 5. Consumer Behavior The usage of mobile handset has increased drastically in past few years. Before 5 years, only 24% of the respondents had mobile phones. The number increased to 48% in following two years.

Two year before, 72% of the respondents were using mobile handsets. We can see the high growth rate in the number of consumers. Multimedia mobile handsets are popular in the village. Table 2 shows the use of efferent mobile handsets by the respondents. It was found that usage of Chinese and MicroVAX mobile handsets are more (Fig. 3). This is so because they are cheap and they offer multimedia features. People appreciate these mobile handsets for its long battery back-up as well. 69% of the respondents use mobile handsets with multimedia features.

Black and white mobile phones are used by of the respondents that too mainly by people of more than 40 years of age (Fig. 4). 40% of the total respondents use mobile handsets for call purpose only (Fig. 5). Rest 60% use other features as well. % of the multimedia handset owners were not using the multimedia features of their mobile handset but it was being used by the young members in their family. A peculiar thing was found that youth use mobile handsets not only to watch movies. They get movie loaded in the mobile phones in RSI. 5 from market and watch it in mobile.

Retailer and television proved to be the major source of information for mobile handsets (Fig. 6). 37% of the respondents were influenced by retailers while 33% of the respondents were influenced by television. 16% of the respondents were influenced by their friends and family. 6. Quantitative Analysis The affect of age, personal income, and price of mobile handset, family income, occupation and family size was studied on the number of mobile handsets owned by an individual. 7. 1. Factor Analysis The SPAS output of factor analysis has been shown in figure 2.

The above mentioned 6 variables were loaded on two factors. One factor comprises of variables like price of mobile handset and family size and annual family income . Another factor comprises of age, income of an individual and occupation. The first factor has been named as “economic factor”. Second factor has been named as “income factor”. . 2. Correlation Analysis The correlation output shows that there is significant relationship between the number of mobile owned by an individual with age, price of handset, annual family income and family size.

Changes in these variables significantly change the number of mobile owned by an individual. 7. 3. Regression Analysis The selected six variables determine 83. 4% of variation in the number of mobile handset owned by an individual (dependent variable). The regression equation is as follows:- Number of mobile owned by an individual =1. 29 -0. 93*Age-O. 65*Price Family Size -. 00*Occupation code + 0. 17*Annual family income This shows that youth are fond of keeping more number of handsets. Low priced mobile phones are owned more. Students own more mobile phones as compares to farmers and business personnel in rural India. . Market for mobile handsets It was found that the number of mobile phone users is increasing day by day. The average family size of the village is 7 and average number of mobile handsets per household lies between 2 to 3. Families having more youth were having more mobile handsets. In India, about 11,600 villages are of same population (Census 2001). Therefore, there seems a huge market tort companies to penetrate. Of the study for marketer Implications The study shows the consumer behavior and the factors determining the usage of mobile handsets in rural India.

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