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Rural Marketing, 2e

Chapter 4Rural Marketing Research

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Learning Objectives

• Understand the marketing research process and its application in rural areas

• Identify special tools required for rural marketing research

• Examine field procedures and rural realities

• Understand the rural research business

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The Rural Marketing Process1. Defining the Business and Research Objectives

2. Determining the Research Budget

3. Designing the Research

4. Sampling Method and Size

5. Designing the Research Instrument

6. Fieldwork

7. Data collation and analysis

8. Reporting the findings for decision making

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1.Setting the Objectives

Business Objectives state the use the

findings will be put to

•To design a new product for rural consumers

Research Objectives state the expected

research output•To map the buying behaviour of rural consumers for sub-35 hp tractors

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2. Determining the Research Budget

• Specifying the approximate value of the information to be collected

• Determining the maximum amount that can be spent on the study

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3. Designing the ResearchPurpose• Exploratory for a basic understanding• Descriptive for a thorough and analytical view• Causal by undertaking experimental research

Nature of data• Quantitative: Numbers driven using structured questionnaires• Qualitative: A free flowing interview or discussion• Normally researchers start with qualitative and validate through

quantitative

Sources of data • Primary • Secondary

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Qualitative Research• Participatory rural appraisal using pictures drawn by the

community members themselves

• Focus group discussions involving 6 to 10 targeted respondents with a moderator

• In-depth interviews on a face to face basis

• Dyads: Paired in-depth interviews

• Slice of life observation at the place of residence or work

• Photo ethnography: Sketching the story through pictures

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Differences Between PRA and FGD

PRA FGDLarge and heterogeneous in nature, ensuring participation from all walks of life

Typically small and homogenous groups

As expression is both verbal and non-verbal, even the less assertive people can express their views

A verbal channel – outspoken individuals often dominate the discussion

Moderator’s role is limited, hence the flow of information flow is natural

Moderator’s intervention can be high in evolving a response from all sectors

Attitude and behaviour change oriented Action oriented

On-the spot analysis by participants Analysis done by moderators

Cross-checking and validation of data can be done on site by involving the members of the group

Findings need to be validated with more FGD till a consensus is reached

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Secondary Rural DataOrganization Data Available

Census of India Largest compilation of rural demographic data

NCAER (National Council for Applied Economic Research)

Largest sample surveyor in the country; complete data on demographics, durables and non-durables

NSSO (National Sample Survey Organization)

Consumption and expenditure related data on major products and services

CSO (Central Statistical Organization)

State wise compilation of demographics, economic indicators, infrastructure and welfare related data up to the district level

State Statistical Abstracts Contains statistical records on demographics, welfare, economic indicators and infrastructure of the state

District Statistical Handbooks

Contains statistical records on demographics, welfare, economic indicators and infrastructure of the district

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4. Sampling

•Population elements chosen by lottery methodSimple random sampling

•Selection of sample from a random starting point and a fixed periodic interval

Systematic random sampling

•Mini-reproduction of the populationStratified sampling

•Sample based on specific purpose. Example – marginal farmersPurposive sampling

•Using one sample to identify others for researchSnowball sampling•Two or more levels with selection of samples at each level

Multi-stage area sampling

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Multi-stage Area SamplingFirst step is selecting different zones followed by states, districts, blocks and then villages.• Villages selection - Probability Probability Proportion to Size

Method through calculation of sampling interval and using random numbers

An Example of the Probability Proportion to Size Method

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Multi-stage Area Sampling

• Household selection – Listing Exercise and Right Hand Rule using stratified random sampling

• Respondent selection - Kish Grid The Kish Grid

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Sample Size

Sample size in rural is dynamic and not staticIn case of quantitative research formula used is

where, n = sample sizeN = Size of universeZ = the Z-score associated with the degree of confidence

selectedp = frequency of occurrenceq = (1 – p) and e = the tolerable error

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In case of infinite universe formula used is:

Where,p = probability of occurrence q = (1-p)e = standard value at a specified margin of errorZ = standard value at a specified confidence level

Sample Size

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5. Designing the Research Instrument

Discussion guide for qualitative – an unstructured measurement form that permits many responsesQuestionnaire for quantitative – mostly includes close ended questions seeking definitive responses

Listing down information areas

Converting each information into one or more questions

Arranging them in a coherent sequence

Adding options to each of the questions to make it close ended

Using relevant scales for each kind of question to measure

Pilot testing the questionnaire before finalization

Steps for preparing questionnaire

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6. Organizing the Field and Collecting the Data

• In qualitative research, interviews and discussions are held in natural settings

• Focus groups are conducted at caste neutral and common village points

• In-depth interviews are conducted at respondent’s house or isolated place

• In quantitative research field investigation team needs to be briefed properly and mock sessions conducted

• Regular monitoring and surprise checks have to be conducted

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7. Collating and Analysing the Data

• In qualitative research, data collected is transcribed and collated in a set format

• In quantitative research data input frames are prepared in Excel or SPSS format

• Analysis can be done through univariate, bivariate or multivariate analysis

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8. Reporting the Findings

•Snapshot and key highlightsExecutive Summary

•Business and researchObjectives•Methodology usedResearch Methodology

•Detailed findings of researchFindings•Sum up the findingsConclusions and

recommendations

•Additional and detailed information used in the analysisAppendices

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Special Tools Used in Rural Marketing Research

Participatory Rural Appraisal•Market Access or Mobility Map•Daily Activity Clock•Chapati Diagram•Process Map•Wealth Map

Scaling tools for Quantitative

Research•Satisfaction Scale•Agreement Scale•Ranking Ladder

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Special Tools Used in Rural Marketing Research

The MART Satisfaction Scale

A resource and mobility map drawn with the help of a group of consumers during a PRA conducted in a village in Uttar Pradesh

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Some Dos and Don’ts in Rural Research

Wear simple clothes and greet in the local language

Be familiar with the local dialect

Explain the purpose and benefits of the research at the outset

Let the respondent lead the interview

Minimal physical contact with no contact with the opposite genderBe ready for crowds and slowly guide respondent to secluded placeAlways carry food, water and first aid kit to avoid health problems

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Limitations of Rural Research

Low literacy levels

Local language communication

Scattered and remote villages; inaccessible roads

Social taboos; difficulty in interacting with women respondentsInterview timings due to long working hours of menfolk and housework by womenfolk

Revalidation of data is impossible

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The Rural Research Business

• The National Council for Applied Economic Research (NCAER)

• MART, a leading consultancy in the rural domain, involved in promoting social development and rural research

• The Social and Rural Research Institute – the social wing of IMRB (Indian Market Research Bureau)

• The social research wing of the Nielsen company

• The Rural Marketing Association of India (RMAI)

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Rural Marketing Case Participatory Rural Appraisals

Refer to video case and answer the following questions:

1. What advantage do PRA tools have over other research tools used in consumer research?

2. Explore new PRA tools that can be applied for understanding the brand adoption process?

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Understand the rural mindset through research which involves

the respondent

Successful Mantra in Rural Market Research