Influences on Rural Purchase of FMCG in Emerging markets – A Study in South Asian Countries

Naseer Ahmed Khan

Abstract


Emerging world lives in villages. Emerging nations have been perceived as agro-based economies mainly depending on traditional technology. With rising income levels and penetration of media, rural markets in emerging economies have become very attractive for a range of goods and services. FMCG market is one of the first to emerge in the transformation of rural areas into huge consumption markets. The current paper emphasizes on the rural consumption of FMCG in South Asian countries, India and Sri Lanka. 1849 fully completed questionnaires were received basing on which analysis was made. Awareness and availability emerged as the most influencing variables emphasizing on effective promotion and distribution of FMCG in rural markets. It was found that rural consumers seek quality and are prepared to buy high priced FMCG. Findings revealed that while product promotions have more influence on female buyers, shop keeper’s recommendation has high influence on less educated consumers. Interesting finding was that influence of low price is highly correlated with influence of attractive packaging and not with quality. It was also found that rural consumers who purchase FMCG only when need arises are not significantly influenced by attractive packaging. The current study has implications in South Asian rural markets which are emerging as massive markets for a variety of goods and services.


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ISSN : 2251-1555