Understanding Farmers Buying Behavior

1
Understanding Farmers Buying Behavior

• Issues to be considered for understanding
  consumers
• - Who constitutes the market? Occupants
• - What does the market buy? Objects
• - Why does the market buy? Objectives
• - Who participates in the market? Organizations
• - How does the market buy? Operations
• - When does the market buy? Occasion
• - Where does the market buy? Outlets

2
Understanding Farmers Buying Behavior

• What is consumer behavior?
• It is defined as the acts of individuals
  directly involved in obtaining and using economic
  goods and services, including decision processes
  that precede and determine these acts.

3
Understanding Farmers Buying Behavior

• Black Box Approach
• - buying decisions are influenced by external
  and internal stimuli.
• - external stimuli are
• (a) marketing mix elements (four Ps)
• (b) environmental factors (economic,
  technological, political and cultural)
• - internal stimuli (cultural, social, personal
  and psychographic)

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Understanding Farmers Buying Behavior

• The outcome of the interaction of these variables
  are decision set
• - product choice
• - brand choice
• - dealer choice
• - purchase time
• - purchasing amount

5
Understanding Farmers Buying Behavior

• Economic factors
• - disposable income, savings, cash flows, assets
  holdings
• - government interventions through taxes, loans,
  pricing
• Life Style
• - personal activities, personality, self
  confidence, autonomy, dominance

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Understanding Farmers Buying Behavior

• Motivation
• - food security, status, compulsion (resource
  scarcity)
• Perception
• - the process by which an individual selects,
  organizes and interprets information inputs to
  create a meaningful picture of a work

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Understanding Farmers Buying Behavior

• Belief and attitude
• - belief is a descriptive thought that a person
  holds about something
• - attitude refers to favorable or unfavorable
  cognitive evaluation, emotional feeling and
  action towards some products
• - belief vis-à-vis established system of values
  and patterns

8
Understanding Farmers Buying Behavior

• Social factors
• - norms and values define the structure of the
  relationship of the member in the society
• - various interest groups like family, neighbors
  and community and any reference group

9
Understanding Farmers Buying Behavior
Investment Operating cost Increase in Profits
Information Search
Agents, Friends
Awareness
Evaluation of Alternatives
Social Culture
Evaluation Benefits Reliability Performance
Purchase decision
Satisfaction
Dissatisfaction
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Understanding Farmers Buying Behavior

• Awareness
• - at this stage farmer recognize the problem
• - comes to know about a number of products which
  can be used to solve the problem
• - but lacks any detailed information or
  knowledge
• - this process needs effective extension work
  given low literacy level of farmers in India

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Understanding Farmers Buying Behavior

• Information search
• - at this stage a farmer develops enough
  interest about an innovation
• - seek information about its nature, function,
  operations and usefulness
• - behavior of the farmer is purposive

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Understanding Farmers Buying Behavior

• Evaluation
• - farmer evaluates the information to determine
  the applicability of the product to his personal
  circumstances and farming situations
• - evaluates the utility and relative advantages
  of the product in relation to available
  alternatives and to his personal aims and goal
• - does the cost benefit analysis of the product

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Understanding Farmers Buying Behavior

• Adoption
• - farmer makes actual purchase
• - integrates the product into his system of
  farming operations
• Post purchase evaluation
• - satisfaction or dissatisfaction based on the
  performance of the product
• - guiding force for future decisions and
  recommendation to fellow farmers
• - create brand loyalty