Urban Orientation of Rural Consumers: Implication for Consumer Goods Distribution

Abstract

Demand for consumer goods in rural markets in the emerging economies is increasing, and these markets are being targeted by multinational companies marketing consumer goods. While all companies are designing distribution strategies to reach the existing rural retail outlets and the periodic markets, a few companies are also developing innovative modes of distribution. Despite the availability of a product in the rural retail formats, some rural consumers were found to make their purchases from a nearby town. This article studied the outshopping behaviour of rural consumers and identified that the decision of what and where to purchase consumer goods could be inferred by identifying their urban orientation. A ‘person–situation’ framework is used to segment the rural market based on the rural consumers’ urban orientation. This framework would help marketers plan their distribution for the rural consumers. The article also suggests a good promotional strategy should support the distribution strategies.