Influence of Social Groups on the Buying Behaviour of Rural Consumers
SAUMYA SINGH
REGISTRATION No. 12315619
SATYAM KUMAR
REGISTRATION NO 12315297
SUPERVISED BY
Dr. Nand Gopal
Assistant Professor
MASTER OF BUSINESS ADMINISTRATION
IN
MARKETING
MITTAL SCHOOL OF BUSINESS
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA-144411, PUNJAB (INDIA)
MARCH, 2025
ABSTRACT
Marketers study the impact of social groups on consumer buying habits in marketing fields due to prevailing collective decision-making practices in rural markets. Researchers analyze social groups including family members and peers together with community leaders to determine their strong effect on rural consumer purchasing choices specifically through their influence on product knowledge development and brand attachment and eventual purchase selection.
Social identity theory together with reference group theory function as analytical research tools to understand how rural consumers interact with social cohesion effects and normative expectations and information asymmetry. The study adopted both quantitative survey methods (207 participants) and qualitative interview approaches (20 participants) within Maharashtra Uttar Pradesh and Bihar to study rural markets through their socio-cultural dimensions.
The survey shows family members make 68% of purchases for FMCG products but the leaders of the community steer 58% of high-cost agricultural transactions. Users in peer groups substantially impact brand loyalty by passing along recommendations about products. The study demonstrates the use of digital platforms started showing promising results as they support traditional social influences regarding young rural consumers.
Research data presents business executives with useful guidance to enter rural customer segments by building marketing plans compatible with rural social structures. The study suggests policy reforms which improve rural markets' accessibility while teaching consumers since these measures lead to sustainable economic progress.
The study demonstrates why businesses need to understand the way rural consumers interact with their social environment because this knowledge bridges urban marketing strategies with rural market specifics. The essential areas requiring future study include advanced governance frameworks in digital marketing combined with ethical aspects and data protection issues.
Keywords: Rural consumer behaviour, Social groups, Buying behaviour, Social identity theory, Reference group theory, Information asymmetry, Normative pressures, Collective decision-making.