Sensitizing research to rural markets Rural marketing- research is critical. 2 reasonsMarketer has limited understanding of the rural consumerMarketer who is urban oriented- may find it useful to learn consumer response & various decision variablesResearch process used in urban markets- incompatible with rural marketsAlternative methods for research in rural markets- include design, measures & sampling

Research design reference frame2 levels of research designReference frame for understanding the rural consumersSuitable research approach: methods of experiments, survey & case studies are evaluated for suitability to rural marketsReference frame: When researching rural markets- urban markets are taken as reference pointStandard to measure & examine different aspects of relatively unknown phenomenonHelps to understand perceptions, attitudes & preference of rural consumers

Research approach2 types of approach: Experimental, Survey Or Case Study ApproachExperimental approach: Relevant for understanding the causation- limited application in rural markets Case study & survey approach: Understanding consumer behavior- have high cost in terms of time & moneyAbsence of information- difficulty to get rural respondents to articulate their perception, attitude & behavior so in depth survey is preferred optionIn-depth survey:Understand their perception, attitude & behavior- usual questionnaire surveyInvolvement of respondents is higher

Diffusion of InnovationUsed in product development & design. These include:Study of existing productsThe use of extension centres forIn depth interviewsFeedback on prototypeStudy of existing products:Systematic examination of product- used by consumer to meet his/her needUseful insights on usage patterns, skills & habits of usersValuable inputs for design & featuresProvides info about weakness alsoUse of extension counters:Opportunity to gather information from villagersFamiliar person to interview consumerFeedback used for product design

Eg: ASTRA ole:ASTRA (Application of Science & Technology in Rural Areas)- cell in IISC Bangalore, KarnatakaRural households- wood- deforestation- develop fuel efficient wood stoveProblems faced:Shape & overall sizePreferably made by materials available locallyAgri residues (coconut fibres, husks, twigs)Disperse of smokeEasy & light to extinguishCheap & easy to constructNo significant changes in food habits & traditional cooking practices of villagers

Redesigned stove- 50% thermal efficiency- resulted in 3 design features:Grate for entry of primary air to combustion zoneIncreased combustion temperature y controlling & optimizing excess airImproved heat transfer- proper dimension- air to pass- chimney to pass smokeAdvantages:High fuel efficiency & low fuel consumptionLow cooking timeSmokeless operation

Development studiesRelevant approach used in development studies is PRA (Participatory Rural Appraisal)PRA method is applied to study the behavior of the cattle farmers in their purchase of inputs fro cattle rearing & in the sale of milk produceCase study to explain PRA:Cattle owner behavior: Purchase of input & sale of milkStudy uses both intensive interactive approach & structured interviewsIntensive Interactive Approach:First- decide on venue, where interaction was to take place- suitable venue- villagers milk producers societyInformal stroll around the village- type of cattle, kind of shelter for cattleEstablishing rapport & understanding with the villagers

Collection of additional data requires for the studyLater villagers were asked to indicate different aspects like availability & preference for various inputs like forage, health & various servicesEg:

InputsDry fodderGrassCattle feedAvailability throughout the yearAvailability during seasonPrice during seasonYield of cattle

PRA approachThis method- extensively used in development studiesInvolvement of the respondent or rural consumer is very highSteps of PRA approach:

Need for PRAHelps to understand their perception & their needsFocus of PRA involve respondents to share & create a method to record dataCase study: MPMU (Milk Processing & Marketing Unit)Procuring, processing & marketing milk & milk products- southern states in IndiaProvides input to cattle owners like feeds, veterinary support, medicines, procures milk & market milk & milk productsFaced competition from smaller diaries.Lower price to the consumers by smaller diaries because of lower overheads also provided higher price to the suppliersMPMU- losing its market share-coz it was keen on increasing the procurement to maintain supplies- had to increase consumer price

Solution: PRA approach- indicated that cattle owner more concerned about the returns feed of cattle, medicines- MPMU provided those services- cattle owners could notSo the farmer sought high price to MPMU

Sampling Random sampling is used in geographical categories- stratified & quota samplingVillages will be selected- select the entire village or select respondents randomly after listing all the villagersMeasures:In-depth interviews & structured interviewsMeasures of structured interviews- reflect respondents characteristics, should be in local languagePreferred scale is Nominal scale & ordinal scale

Operational aspects of data collectionData collection must be made with utmost care, else it may result in:Distortion of sample characteristicsDistortion in data recordedThe following biases should be avoided:Roadside bias: interior village- difficult to accessBig farmer bias: he is responsive & influences othersLiteracy bias: farmer is educated- understands the concepts better- easier to get info from himGender bias: males- easier to access & get info from themSeasonal bias: better to carry out surveys in cooler months than in summer

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