Marketing Research In Rural Markets

Table of Content

1 Rural Market Research Process
2 Special Tools Used in Rural Marketing Research
3 Field Procedures and Rural Realities
4 Limitations of Rural Market Research

Rural Market Research Process

Research is required in rural markets as it is still relatively new in comparison to its urban equivalents. It is necessary to gain a better understanding of rural India, its beliefs and traditions to properly employ marketing strategies in the rural markets. The design and execution of rural market research is fraught with difficulties. There is a scarcity of real-time data, data on rural markets, literacy and so on.

Defining the Objectives

Just understanding the symptoms of the difficulties faced that are typically visible at that point, might not be helpful. Therefore, to begin with, even a clear definition of the exact research problem may not be attainable at the start of the Research process.

Hence, initial exploratory research for the precise characterisation of the problem is critical as marketing research is quite a time, energy and money-intensive procedure. It requires in-depth knowledge of the market based on the purpose of the research, to help in identifying the problem.

A clear characterisation of the problem aids the researcher in all subsequent research activities such as the establishment of appropriate study objectives, the selection of appropriate procedures and the scope of data to be collected. Hence, the organisation will not waste time, money or human resources chasing the wrong data and coming up with the wrong answers if the specific nature of the problem is clearly defined.

Let us understand this with the help of an example of a stationary store in a rural area.

A core business problem to solve: “How to get more people to spend more money at the store?”

Research objectives

To identify promising target audience for the store
To identify strategies for rapidly increasing revenue from these target audience

Initial research questions

Who are the current customers of the store?
How much do they spend? Why do they come to the store?
What do they wish to be offered by the store?
Who isn’t coming to store, and why?

Research Budget

Most marketing research projects cost quite a significant amount of money to gather information and analyse the data. Budget decisions are typically based on the research approach used for a specific study. There are two main stages in budget decision-making:

Specifying the estimated value of the information to be collected
Determining the maximum amount that can be spent for the study

Once the budget is finalised, research is designed accordingly.

Research Design

A research design is a master plan that lays out the steps for gathering and analysing the data. It serves as a framework for the research strategy. The research design depends completely on the research objective. The researcher should also determine the sort of information sources required, the data collection method (e.g., survey or interview), the sampling, the research methodology and the research’s timing and potential expenditures at this point.

The following research methods are chosen based on the objective of the research:

Research design: Exploratory, Descriptive and Casual
Nature of data: Quantitative and Qualitative
Source of data: Primary and Secondary Let us understand these in detail.

Generally, there are three types of research design used by organisations:

Exploratory Research: It is a research design that is used to investigate a research problem that is not clearly defined or understood. It provides researchers deep insight into a research problem and its context before further research can be carried out. Thus, exploratory research acts as groundwork to further research. A key feature of the exploratory research design is that it is unstructured and therefore very flexible in nature.

Example: Suppose a researcher wants to study the impact of social media on a teenagers’ attention span in rural areas. Before moving forward, the researcher may conduct surveys or interviews using open-ended questions. The responses will be collected from the target audience which, in this case, comprises those who fall between the ages of 13 to 19. The data collected will provide the researcher with meaningful insights for framing specific and realistic research questions that can be investigated effectively.
Descriptive Research: It describes a phenomenon and its different characteristics for gaining a deeper understanding of what the phenomenon is rather than why or how it takes place.

Example: A bag manufacturing company that is trying to conduct market research to understand the bag purchasing trends in a rural area. Before delving into the investigation itself, the company may want to first conduct descriptive research to understand which variables and statistics are relevant to their company. These variables can be demographics, income levels, cultural and social factors and so on. Causal Research: It is a type of conclusive research which establishes a cause-and-effect relationship between two or more variables.

Example: A researcher is trying to study the effects of tobacco consumption on health. He selects a sample group consisting of people who consume different amounts of tobacco, and then also observe different metrics that are indicators of health. This is an example of a causal research design as the researcher is investigating the cause-and-effect relationship between tobacco consumption and a person’s health.

Quantitative and Qualitative Research Methods

Depending on the nature of the data, rural research generally uses two broad research methods — quantitative and qualitative. Quantitative research methods are used when the data to be collected is in the form of numbers. This research method involves the use of structured interview questionnaires or other tools for data collection and the data collected is analysed statistically. The using various statistical methods such as frequency and cross-tabulations.

On the other hand, in qualitative research methods, the data to be collected is in the form of words, phrases, emotions, etc., and NOT in the form of numbers. Because the data is subjective, there is no fixed format or set of questions that the respondent must answer. Instead a free-flowing interview or discussion is preferred to assist in an in-depth exploration of various issues or problems. For example, ‘any issues do you encounter in the paddy cropping, please explain, ‘Who should you consult when deciding ‘which seed to buy’?

Semi-structured interviews in which some questions are preset and additional questions emerge throughout the interview as a result of responses from people being questioned. Individual farmers or households may be interviewed, as well as important informants, in group interviews, community gatherings and interview chains.

Another technique is Observation. It is a non-questioning method which focuses on observing the respondents rather than asking them questions. The research team visits rural areas and collects data using a combination of iterative procedures using one or more of the strategies listed below:

Secondary data sources include books, files, reports, news stories and maps, including aerial pictures, are all reviewed.
Direct and participant observation, brief aerial observation and do-it-yourself (DIY) exercises are all examples of observation.
Maps, aerial pictures, seasonal calendars, historical profiles and other diagrams.
Biographies, local histories, case studies and trend analyses are all examples of stories and portraits.

In rural research, both qualitative and quantitative approaches can be used individually or in combination with each other. Information is not available in many product categories. Therefore, most research begins with a qualitative approach and goes to a quantitative approach to verify the results of qualitative research and capture differences between respondents.

Rural research in areas such as energy, health, insurance and banking, where much advance information or knowledge does not exist, requires an exploratory or qualitative approach to undertake.

On the other hand, research in more mature areas, such as FMCG, where a lot of rural research has already taken place, can begin with quantitative research without the need for an exploratory approach. Over the past five to six years, the rural research market has grown significantly.

Earlier, only qualitative research studies were conducted in rural markets, as these markets were just opening up and companies wanted to understand the parameters that set them apart from their urban rivals.

Gradually, as rural markets matured and rural consumers become more conscious and literate, companies started adopting quantitative research tools applicable to their product category/brand, thereby increasing the scope of survey work conducted by rural marketers in India. Some examples of quantitative studies conducted in rural areas are customer satisfaction, brand tracking, market share measurement, valuation and segmentation studies.

Secondary and Primary Research

While secondary research is based on data previously collected, published and contained in specific repositories, primary research is the first-hand data collection for specific research purposes. There are many secondary sources for rural data, but most of them revolve around demographic information and do not provide much information on products or consumers.

Sampling

A target population is the set of people relevant to the researchers/ decision makers from the perspective of their research. Typically, to make conclusions about the ‘target population,’ it may not be possible to go to each and every person in the target population, hence the researcher may need to choose a limited number of people or a subset of the ‘target population’.

The researcher must decide three things when collecting primary data:

Procedure for sampling
Methods of sampling
The size of the sample

Sampling Methods

Sampling refers to selecting a particular group or sample to represent the whole population. It is of two types, i.e., probability and non-probability sampling.

Probability sampling refers to the sampling method in which researcher makes the random selection of the sample from the population. In non-probability sampling involves non-random selection. It means in this sampling method, it is not known that which individual from the population will be selected as a sample.

Following are the non-probability sampling methods:

Purposive sampling: Researchers select a sample based on a cer- tain goal or who they believe will be suitable for the study. In this case, the respondent must be a very well-known person so that correct information can be achieved from the chosen respondents. Where there is scope for variation in information between different types of respondents, some samples should be selected from each respondent type to prevent potential information from being lost.
Convenience sampling: This is a type of non-probability sampling in which the sample being drawn from that part of the population that is close to hand. It is useful for pilot testing. This sampling is also called grab sampling/accidental sampling/opportunity sampling.
Snowball sampling: A researcher selects one member of a target community, speaks with him or her and then asks that individual to identify others in the group with whom the researcher could speak. In this case, the researcher usually takes the first instruction of a properly qualified respondent from the panchayat or through the head of the panchayat, who also grants social permission to roam freely in the village.

Then he goes to the referred person and talks and then asks the researcher to identify others in the population who he can speak and choose for the interview. This ensures that the respondent devotes quality time to information sharing.

Typically, non-probability sampling is used in qualitative research since it does not attempt to establish a statistically representative sample or draw statistical inferences. In quantitative research, sample size is only necessary if you want to get all of the information you need on the topic. As a result, once information redundancy is established, a researcher can stop gathering data.

Determining suitable sample size in qualitative research is essentially a question of discretion and experience, writes Sandelowski.

Following are the probability-sampling methods:

Simple random sampling: This sampling method is the easiest probability sampling method. In this technique, every item in the population has an equal chance of being selected in the sample.
Stratified random sampling: This sampling method is also known as proportional random sampling wherein the subjects are initially grouped into various classifications (gender, level of education or socioeconomic status). Then, researcher randomly selects the final list of subjects from those categories. Researcher classifies the population into sub-populations, called strata and extracts a simple random sample.
Systematic random sampling: This method is often compared to an arithmetic progression because in this method the researcher selects every “nth” individual to be a part of the sample.
Cluster random sampling: This method is adopted by the researcher when the size of a population is too large for performing simple random sampling. Researcher recognises the boundaries and assumes that the population can be constituted by subsets of elementary units, called clusters which are similar among them- selves and each cluster contains elements with different characteristics.

Designing the Research Instrument

Research instrument are the tools used by the scientists or researcher to obtain, measure and analyse data. There are two types of research tools or instruments discussion guide in the case of qualitative research and questionnaire in the case of quantitative research.

The discussion guide is a structured measurement tool that allows for a range of possible responses. It consists of open-ended questions with many points to explore a specific area. On the other hand, the questionnaire is a more structured research tool. It mostly consists of close-end questions and demands precise responses in a specific format.

For example, how satisfied are you with using a new tractor? Please rate your satisfaction on the following scale: Totally satisfied, some satisfied, satisfied or dissatisfied, some dissatisfied, completely dissatisfied.

There are a few things to keep in mind when preparing a questionnaire or discussion guide for rural research:

The questions in the discussion guide should include inquiry topics.
The questions in the survey questionnaire should be close-ended.
The questions should have a logical flow and should change from casual to specific and from gross to subtle.
Questions should be simple and straightforward.

Translations should be checked by people in the same field to make sure there is no change in meaning or nuance.
Write clear instructions for each question asked.
If a technical term or new concept is mentioned in a question, its meaning should be clearly explained through the visuals in the questionnaire. It serves as a support for both the researcher and the respondent.
For rating/ranking questions designed for rural respondents, visual criteria should be used in the questionnaire (see ‘Scaling Tools for Rural Quantitative Research’ section). The ‘showcard’ indicating the visual level of the defendant must be used.
For a rating scale, a three-point or five-point scale should be used.

Organising the Field and Collecting the Data

A focus group is held at a common location in the village. Audio and sometimes even video is recorded during interactions with responders. Interviews are usually conducted in the village’s natural surroundings.

Focus groups and in-depth interviews are all conducted using discussion guides. For organising the fieldwork and gathering data, the investigator should have prior research expertise in rural settings. The importance of proper quality control measures cannot be overstated. An organised questionnaire is used to collect data.

Unless the massive amount of data gathered is correctly analysed, it makes little sense. Researchers can use statistical methods to analyse data manually or with the aid of a computer. The last phase of the research is creating the report. The report should be organised around the management issue that has to be addressed and for which the research is being conducted.

Collecting and Analysing the Data

In qualitative research, the researcher uses discussion guides to con- duct focus groups and in-depth interviews. In the case of qualitative research, the data collected in the form of notes, audio recordings or charts are transcribed and then integrated into the set format. Analysis is done using filters and specific colour codes to find similarities and differences in the data.

In quantitative research, data input frames are made in Excel or SPSS (Statistical Package for the Social Sciences) software, where the data extracted in the questionnaire is transferred for analysis.

Broadly speaking, three types of quantitative analysis can be per- formed depending on the number of variables involved:

Univariate: The analysis is done using a single variable. For example, frequency calculations for nominal variables in terms of percentages.
Bivariate: The analysis is done using two variables. For example, cross-tabulation as well as binomial regression can be performed to find the correlation between two variables.
Multivariate: The analysis is performed using more than two variables. For example, factor analysis and cluster analysis can be performed with multiple variables to measure the level of interdependence.

Reporting the Findings

As a final step in the marketing research process, the researcher demonstrates the results of the marketing decision for the rural market. The research report was prepared around the research objective of the study:

The executive summary provides research results and a snapshot of the highlights. Research methodology describes the method used to conduct research studies.
The findings provide detailed conclusions of the research.

Special Tools Used in Rural Marketing Research

As traditional research tools were not effective in rural markets due to the low level of exposure and literacy of rural residents, rural researchers brought in new solutions and specialised tools to capture responses more accurately and effectively. Some of the rural market research tools are:

Audio-visual aids: Voice is essential in human communication, not only because it expresses meaning, but also conveys an individual’s inner state, such as emotions, uncertainty and personality. Due to technological advancements, audio and visual data, both static (i.e., photo) and dynamic (i.e. video), are now widely available.

Audio-video data may take the form of PowerPoint presentations, video clips, television, photographs in support of verbal language, graphic charts, etc. The adoption of audio-visual data in marketing practices help researchers to get better insights into marketing problems and thus make better decisions.
Product demos: A product demo refers to a presentation of product or service value to a current or prospective customer. It typically involves a demonstration of core features and capabilities of a product. The primary purpose of the demo is to close a deal. Generally, product demos are given for electronic appliances such as refrigerators, mobile phones, televisions, etc.
In-depth interviews: These interviews are qualitative data collection methods that allow the researcher to gather a large amount of information about the behaviour, attitude and perception of consumers.

Generally, in these interviews questions are open-ended and can be customised as per the particular situation. The researcher gets an opportunity to develop a rapport with the consumers, thereby making them feel comfortable. Thus, these interviews can bring out honest feedback from the consumers and enable the researcher note their expressions and body language. Such cues can amount to rich qualitative data.

Field Procedures and Rural Realities

MART is pioneer in rural domain, expertise lies in knowing the base of the pyramid, promotes social development and innovations. It has developed a set of guidelines for conducting research in rural areas based on its experience. These guidelines facilitate the researcher’s job and help ensure a high level of accuracy and consistency in managing access to different areas. ‘Rural Marketing Snapshot: Data Collection in Rural India’ shows how basic data is collected in rural India.

Do’s and Do Nots in Rural Marketing Research

Villagers are historically exploited, which is why they usually display suspicion Therefore, the biggest challenge for a rural researcher/ researcher is to break down the barriers of rural respondents and establish relationships with them. ‘Rural Marketing Memorandum: Qualities of a Good Researcher’ provides insight into the important skills of successful researchers in rural areas.

Rural people are very flexible in their lifestyle and communication.

Therefore, it is important to wear simple clothes so that the villagers are comfortable sharing and discussing.
The villagers should greet their fellow villagers very simply: ‘Ram- Ram’ in the north, ‘Namaste Bhayyaji/Behenji’ and in the local languages of other regions.

The rural researcher should keep in mind the following:

The researcher should be familiar with the local dialect or request the educator in the area to accompany the respondent to explain the problems/questions to the respondent so that linguistic problems do not arise due to misunderstanding and misunderstanding. Problems can be avoided.
It is advisable to take the time to establish a relationship with the respondent by discussing topics that are not directly related to the survey but are of interest to them. This will comfort the villagers about the researcher and allay any doubts they may have.
The conversation should be built gradually until the interview. view in order to gain their support.
If the purpose of the study is not clear, the villagers will not share the correct information. The purpose of the research and its benefits should be explained each time at the beginning of the interview in order to gain their support.
As far as possible, the respondent should be part of the research project. For example, the respondent may say that his/her responses are very important to the company and will help the company to bring better product.
Although not relevant to the study, the respondent should make an important impression by actively listening to her concerns.
Observing that the villagers prefer to keep the situation under control, the respondent should be made to feel that he is the person leading the interview.
The researcher/researcher must talk well about general topics, to some extent show that he understands the rules and partly that he is interested in gaining new knowledge.
Sometimes physical contact, such as touching the hand of a young male defendant, can form a kinship, but only after some intimacy has been established. However, a male researcher should never try to do this to a woman or an elderly person, because the latter is highly esteemed and may suggest trying to equalise them in status by touching them.
Sensitive issues related to society should be handled with care. For example, when asked about literacy levels, ‘Are you educated?’ Instead of asking, the researcher should ask, ‘How much did you study?’
Male investigators should always contact the female respondent through her husband or another male member of her family or through men she knows.
Rural people can only handle limited information at a time. Therefore, even if the respondent is willing to speak, one series of direct questions after another should be avoided. Therefore, it is advisable to combine topic specific questions with some general questions to provide a mental break.
Researchers/researchers may find it difficult to communicate with villagers in person, as villagers usually gather in groups rather than strangers. Furthermore, a strong desire for social acceptance in rural areas leads to group interactions. Therefore, it is very dif- ficult to get personal opinion. The researcher should request the person accompanying the defendant to remain silent and allow the respondent to express his or her views and experiences. Defen- dant may request to choose a secluded location.
Researchers should not be too friendly.
Give a biased response.
Researchers/inventors should always carry food, water and first aid with them and take necessary precautions to prevent health problems.

Limitations of Rural Market Research

Rural market research is now more involved in the examination of demographic data. Psychographic data for rural markets is still scarce, thus marketers must rely on commissioned studies, which are usually region-specific, to solve their present marketing difficulties.

Following are the limitations of rural market:

Interview schedule: Usually, men go to work in the fields or other places in the morning and return only in the evening. The women were busy with morning and evening meals and other household chores. Researchers should plan their day according to the availability of respondents.
Availability of efficient and experienced market researchers: Effective marketing research necessitates the requirement of efficient and experienced market researchers. In their absence, a marketer may encounter a variety of challenges, as each researcher employs distinct research approaches and concepts. As a result, the conclusions drawn from them may differ, creating an optical illusion for the marketer.
Removing the concept of considering as wasteful: In India, the marketing research is seen as wasteful activity due to which a firm does not dedicate its resources for the purpose of research. As a result, market research discourages the researcher from putting up his best effort. Therefore, it should be acknowledged in India as a vital activity for success of market research.
Social prohibitions: Difficulty in communicating with female defendants. In some parts of the country like Rajasthan and some parts of Uttar Pradesh, women live behind the scenes. If the respondents were women, it would make the task even more difficult for male researchers.
Canceling data revalidation: It is difficult to verify data by telephone in rural areas due to poor network coverage in remote villages in India. Also, physical verification is not possible as traveling back to remote and scattered villages is costly.