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 ‘P’s) (b) environmental factors (economic, technological, political and cultural) - internal stimuli (cultural, social, personal and psychographic)

4. 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

6. 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

7. 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

10. 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

11. 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

12. 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

13. 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