Rural-Urban differences in consumer decision making in South Africa Sample Essay

Abstractions:
The survey examines Rural and Urban differences in consumer determination devising in Makana Municipality in the Eastern Cape Province. South Africa. There are factors which impact upon What. When. Where. and Which Brand will purchased by the consumer. The participants in this survey will be household units in Grahamstown and the Albany territory i. e. ( Seven Fountain. Alicedale. Salem ) in South Africa. The independent variable for the survey is Urban and Rural abode. and the dependant variable is consumer determination devising. The mensurating instrument will consist a self-designed questionnaire to mensurate biographical information. with a questionnaire developed by Spores and Kendall ( 1986 ) to mensurate consumer determination devising. This is a 22 point instrument which was used to mensurate consumer determination devising. The scale dependability is ( ?= 0. 87 )

KEYWORDS: Rural and Urban differences. Consumer determination devising

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Definitions of Footings:
Rural: – Land used for commercial agriculture is classified as rural and besides small towns in tribal countries are regarded as rural.

The rural development model ( RDF ) of 1997 defines rural countries as “sparsely populated countries in which people farm or depend on natural resources. including small towns and little towns. that are dispersed through these countries. In add-on they include the big colonies in former fatherlands. created by the apartheid remotions. which depend for their endurance on migratory labor and remittances” ( RDF. 1997 )

Urban: – An urban country is by and large a really populated country. Most urban countries are considered to be metropoliss within different provinces and states. Urban countries have big edifices that are lit up and seen from the skyline.

Consumer Decision Making: – A procedure by which ( 1 ) consumers identify their demands. ( 2 ) collect information. ( 3 ) evaluate options. and ( 4 ) make a purchase determination. These actions are determined by Psychological and economic factors and are influenced by environment factors such as civilizations. groups and societal values.

1. BACKGROUND TO THE STUDY
In order to cover with the selling environment and do buying determinations. all consumers irrespective of age. gender. nationality or faith. engage in a decision-making procedure. The focal point of this procedure. which forms an built-in portion of consumer behavior ( Lamb. Hair. & A ; McDaniel 2004: 142 ) is how consumers spend their available resources ( such as clip and money ) on personal and family merchandises and services so as to fulfill their demands ( Schiffman & A ; Kanuk 2000: 7 )

The influence of kids in household decision-making has been a much excessively ignored topic of enquiry. Practically all research has centered upon the hubby and married woman. Family decision-making research was ab initio directed to partners. nevertheless the function of kids in decision-making and dialogue schemes has become an of import issue of survey ( Kaur & A ; Singh. 2006 ) . Children non merely bask doing regular ingestion determinations with their parents but they besides insist on their parents purchasing the merchandises they desire ( Kaur & A ; Singh. 2006 ) .

Previous research workers have identified that. as kids mature from childhood to adolescence. their cognition of consumer behavior. values and accomplishments additions. ( John. 1999 ) . Caruana and Vassallo ( 2003 ) identified that. of all time since the early 1990s. sellers have targeted kids as they are non merely the consumers but they besides influence household buying forms.

What prompted research worker in this subject is that people from rural countries differ from people go forthing in urban countries in footings of consumer decision-making.

Rural consumer determination doing tends to be autocratic that is the. the caputs of the household are the 1s who decide what. when and which trade name will be purchased while urban consumer determination is participatory. that is most of the household members including kids take part in what to be purchased.

The survey of consumers aids houses and organisations to better their selling schemes by understanding issues such as how: – •Consumers think. feels. ground. and select between different trade names. merchandises •The consumer is influenced by his or her environment ( e. g. . civilization. household. marks. media ) ; * Consumers behave while shopping or doing other selling determinations ; •Limitations in consumer cognition or information processing abilities influence determinations and selling result ; •Consumer motive and determination schemes differ between merchandises that differ in their degree of importance or involvement that they entail for the consumer ; and •Marketers can accommodate and better their selling runs and selling schemes to more efficaciously make the consumer.

It has been proven that kids have an impact on their parent’s determinations and household determination devising. Recent research indicates that children’s influence extends far beyond what is traditionally thought. to include countries where kids were primary merchandise users. Meyers and Roy ( 2004 ) claim that kids have been found to hold a strong influence on non-traditional countries such as place decor. cars. and place electronics. Husbands have traditionally dominated in purchase determinations for such merchandise classs as insurance cars and telecastings. On the other manus. married womans have dominated in purchase determinations for merchandises associated with the housewife function. such as contraptions and washers.

2. Statement OF THE PROBLEM
Rural and Urban consumers are faced with different challenges when doing consumer determinations. The consumer determination procedure may besides differ because of traditional functions adopted by household members. The survey examines whether rural consumer determination devising is Authoritarian i. e. Centralised while Urban consumer determination devising is Participatory. within the Grahamstown and Albany Districts ( i. eAlicedale. Salem and Shaw Park ) in the Eastern Cape. South Africa. The independent variable for this survey is as follows: –

Location of the consumer. be it rural or urban

The dependant variable for this survey is as follows:
Consumer determination devising

3. RESEARCH OBJECTIVES
The aims of this research are to:
* Examine whether rural consumer determination devising is autocratic and urban consumer determination is participatory. * To aids houses and organisations to better their selling schemes by understanding issues such as how: – * Consumers think. feel. ground. and select between different trade names. merchandises * The consumer is influenced by his or her environment ( e. g. . civilization. household. marks. media ) ; * Consumers behave while shopping or doing other selling determinations ; * Much there are restrictions in consumer cognition or information processing abilities

influence determinations and selling result ;
* Consumer motive and determination schemes differ between merchandises that differ in their degree of importance or involvement that they entail for the consumer ; and * Sellers can accommodate and better their selling runs and selling schemes to more efficaciously make the consumer.

4. Hypothesis
H1: There is significance difference between Rural and Urban consumers determination devising processes H0: There is no significance difference between Rural and Urban consumer determination devising procedures. H1: Rural consumer determination devising is autocratic or centralized while urban determination doing tends to be participatory H0: Rural and Urban consumers adopt every bit autocratic and participatory consumer determination devising manners

5. Significance OF THE STUDY
The survey will help in clear uping whether there is a relationship between certain demographic variables such as ( matrimonial position. age. figure of kids. figure of hours. degree of instruction. household members ) and how these variables influence Rural and Urban consumers in determination devising. To better the selling schemes by understanding the Psychology of how consumers think. experience ground and select between different trade names. Besides the restrictions in consumer cognition or information processing abilities that influence determination devising result.

6. LITERATURE REVIEW
A survey conducted by Grant and Waite. 2003 stated that immature consumers provide an interesting subject for treatment for consumer research for four grounds: First. at the period of clip during adolescence to maturity. immature people acquired ain single personalities and established ain behavior forms. attitudes and values. therefore ingestion forms. ( Holbrook and Schindler. 1989 ) province that immature people make purchases to show themselves and to make an individuality of their ain devising. Second. in a survey by Grant and Waite. ( 2003 ) it was found that immature people are acute to act upon purchase determination of others Third. ( Leslie. 2001 ) province that immature people act as alteration agent by act uponing the society and civilization.

Last. ( Grant and Waite. 2003 ) mentioned that immature people are a alone market section that from a selling perspective point of position form a powerful disbursement group in their ain manner. Harmonizing to the survey conducted by ( Belch 2005 ) stated that immature people as high cyberspace users and have a much greater entree to market information. could impact their influence in household consumer determination doing Latest researchstudies conducted proposed that there is a set of factors that influence rural consumer behavior. In rural countries societal norms. traditions and societal imposts have a greater impact on consumer behavior than in urban countries.

Harmonizing to the survey conducted by ( JhaMithileshwa. 2007 ) rural consumer demand is impactlyinfluenced by the seasonality of agricultural production. hence the landlesworkers and day-to-day pay earners receive their income in episodes. accordingly their buying determination is restricted to little measures of merchandises on day-to-day footing.

Research to day of the month by ( Kashyap Pradeep. 2005 ) has established that Urban household units i. e hubby and married woman frequently kids are participatory in consumer determination devising. while in Rural household units because of deficiency of conveyance and small contact with the market consumer determination devising is autocratic. In contrast to this focal point an urban country family member is free to do an independent buying determination without a audience with household member while in rural country because of the strong societal degree of community determination devising is rather common. Theoretical work by Belch et Al ( 2005 ) suggest that immature people who are internet utilizations which gives them entree to information creates an impact on household purchase determination in one manner or the other.

The survey at manus attempts to analyze the comparative buying behavior of Urban and Rural household units towards the purchase of merchandises. Consequently it will help sellers to better their selling schemes by understanding issues such as How: * Consumers families ground. feel. believe and choose between different trade names and merchandises * Consumers’ family is influenced by his or her immediate environment such as civilization. household size and media. Prior research by ( Ahuja and Stinson 1993 ) has found that kids have a batch of influence in purchase determinations for kids merchandises such as bites ; every bit good as playthings ( Burns and Harrison 1985 ) . Harmonizing to ( Dunne 1999 ) immature people has been identified as holding a much influence in determination such as vacation or holidaies ; and the pick in which eating house or a determination devising for household families to eat or dine out ( Williams and Veeck. 1998 ) .

Theoretical work by Mangleburg et Al ( 1999 ) suggest that in some household families immature people are perceived to be more as equal by parents. while in other household families are viewed as subsidiary to parents’ authorization. In contrast to this focal point on the other manus household unit plays a critical function in act uponing our buying behavior. as immature people the picks are set by parents based on safety and demand of the teenager’s considerations. Last the determination doing procedure in coloring material of the household auto is besides influenced by kids.

Family units purchasing determinations can examined through four theoretical positions:
* Decision devising phase
* Family civilization
* Power construction
* Role construction

Decision devising phase
Each and every household member at one phase or another do hold an impact on buying behavior. For illustration when a household decides to purchase a computing machine. the adult female stipulate the demands consequently. adult male decides upon the trade name of the computing machine either Compaq. HP. Sony or LG based on technological competency while children’s function will be on the coloring material of the computing machine.

Family Culture
Each and every household family has different internal civilization which has an impact in its buying determination. These could be due to cultural backgrounds and societal upbringing and household values. Theoretical work by ( Kaur and Singh. 2006 ) suggest that children‘sinfluence differs by the phase of determination devising procedure he identified amongst others Problem acknowledgment. information hunt. pick and merchandise class.

Harmonizing to ( Kaur and Singh. 2006 ) kids are information searchers. instigators and buyers for other classs of merchandises and these purchases are influenced by their parents. Prior research by ( Moschis and Moore 1979 ) has found that as the age of adolescent increases the competency of the adolescent as a consumer besides increases.

Research to day of the month by ( Shoham and Dalakas. 2005 ) has established that the sum adolescents spend in household family purchase determination has risen over period of 40 old ages. Theoretical work by ( Hawkins et Al. 2001:207 ) suggest that adolescents alsoexert a major influence on their parent’s consumer determination devising and disbursement.

Power Structure
Different power construction within the household do hold an impact on determination devising procedures. for illustration a Man as the caput of the household makes the most determinations while a adult female who is the caput of the household besides will do the most determination for her household but in equalitarian society both portion equal determination devising powers.

Role Structure
Family members in a household has function to play in footings of determination devising. gender function penchants is concentrating on the function played by hubby and married woman as male parent and female parent in the family and the perceptual experience is that their functions based on gender have an impact on the determination devising procedure and family determination procedure.

Prior research by Blackwell et Al. ( 2001:748 ) has found that teenager’s influence on household family disbursement differs by merchandise user and by grade. hence they have a significance influence in purchase determinations in merchandises of their ain. In contrast to this sentiment on teenager’s influence on household disbursement Blackwell et Al. ( 2001:387 ) suggest that adolescents learn these consumer accomplishments from shopping with their parents. Harmonizing to ( Mulrooney. 1999 ) there is plus minus 12. 9 million immature people in the Republic of South Africa of which 35 per centum are in junior and senior secondary schools who command a disposable income of R4 billion per annum.

Theoretical work by Koenderman ( 2001 ) suggest that adolescents spend about R4. 5 billion per twelvemonth in the Republic of South Africa and they besides influence another R20 billion per annum disbursement on points such as telecasting sets motor autos.

McNeal ( 1993 ) identified five-stage shopping larning procedure that adolescents gothrough in consumer development. * Phase 1: Observing
This is the first clip that the adolescent interacts with the market place ; it could be sing a shopping promenade or shops with a parent. * Phase 2: Devising petitions
At this phase teenagers holding seen something they like in the shopping promenade they ask their Parents about a merchandise they want. even when at place watching Television they can remind their parents about a merchandise they have seen at the promenade on the advert on Television * Stage 3: Devising choices

As adolescents grows they start sing a physical contact with the merchandise by taking it off the shelves * Stage 4: Assisted purchases
Having experienced parents interchanging money for goods purchased in shops during their shopping fling. they do it themselves with the money received from household members when they purchase their ain merchandises accordingly they understand that money is the medium of exchange. * Phase 5: Making independent purchases

Last. in the development of consumer behavior is making their buying without the aid of their parents. This is apparent in the survey conducted by ( McNeal & A ; Yeh. 1993 ) which suggests that there is s important period between a teenager’s first purchase with parents and an independent purchase. Prior research by Acuff ( 1997:109 ) found that 92 % of the instances adolescents don’t consult their parents when buying soft drinks and Sweets while 70 % of the instances apparels are bought independently and 20 % of the instances they don’t consult parents’ computing machine package is bought.

6. 1 THEORIES SUPPORTING THE STUDY
CONSUMER DECISION-MAKING
Consumer decision- devising is the procedure by which a consumer ( 1 ) place their demands and ( 2 ) collects information ( 3 ) evaluate options and ( 4 ) makes the purchase determinations ( 5 ) post-purchase rating. These actions are determined by Psychological and Economical factors. and are influenced by Environmental factors such as Cultural groups and Social values

Theoretical work by Sproles and Kendal ( 1986 ) states that consumer determination – devising manners is the manner consumer me ntally approaches the market topographic point picks Prior research by Sproles & A ; Kendal ( 1986 ) has identified eight determination – devising manners. a. Perfectionist. High – Quality Conscious: The focal point of the consumer is looking at quality merchandises. B. Brand Conscious. Price Equal Quality: The consumer correlates high monetary value with high quality merchandises specifically with mention to national trade names. c. Novelty-Fashion Conscious: The consumer gets satisfaction the most when looking out at the latest. most modern and exciting merchandise. d. Recreation/Hodonistic Shopping Conscious: The consumer gets the satisfaction from the shopping experience. e. Price Conscious. Value-for-Money: The consumer ever looks for publicities like gross revenues deals. and decreased – priced merchandises. f. Impulsive. Careless: The consumer’s shopping trips is non planned before manus and doesn’t attention about money spent in those trips. g. Confused by over pick: The consumer is perplexed about scope of merchandise picks and excessively much merchandise information. h. Habitual. Brand-Loyal: The consumer is ever purchasing the same merchandise.

Research to day of the month by Nancy and Philip Kohler ( 2007:167 ) identified factors that affect consumer purchasing behavior. a. Cultural factors impacting consumer purchasing behavior: Culture has a direct influence on consumer behavior and is the basic cause of person’ behavior and wants. Adolescents learn these basic values. the manner they see things and wants from household member and of import group in the society accordingly sellers try really difficult to descry the cultural displacements that will give them an thought of coming up with new merchandises or to bring on market demand.

B. Social factors: Social factors such as the group in which the client belongs and the position do hold an influence in customer’ purchasing
behavior. either is the group that portion same geographical location. faith. racial bash hold an impact in consumer purchasing behavior.

c. Age and Life rhythm phase: The series of phases in which the consumer’s attitude and behavioral inclinations evolve and occur because of developing adulthood. experiences. degree of income and position do hold an influence on consumer behavior. Sellers address their mark markets in footings of consumer lifecycle phase.

d. Occupation and Income: Degree of income and the profession a individual is in the society determines what merchandises people consume accordingly impact on consumer behavior.

e. Life Style: The manner of life and manner of life that reflect attitudes and values of the consumer do hold an impact on consumer behavior.

6. 2 RESEARCH LITERATURE
Research to day of the month by Belch et Al ( 2005 ) established that immature people who are internet utilizations which gives them entree to information creates an impact on household purchase determination in one manner or the other.

Prior research by ( Abramovay & A ; Sachs. 196 ; Bhooshan. 1986 ; Bryceson & A ; Jamal 1997 ; Misra 1986 ; Saint & A ; Goldsmith. 1980 ) has found that a figure of urban families prosecuting in agribusiness and that of rural families whose income is derived from non-farm activities is much higher than normally foresee.

Research to day of the month by ( Schiffma & A ; Kanuk. 2004:550-553 ) proposed four distinguishable positions of consumer determination devising: * Economic position: The consumer is characterised for non doing reasoned determinations. but are besides optimum for accomplishing a end or work outing jobs. * Passive position: Here consumers are perceived as unprompted and irrational buyers. * Cognitive position: The consumer buzzword make right determinations but actively hunt for information that will do them taking satisfactory determinations. * Emotional or unprompted position: The consumer realise that they have made careless determinations

which regret at a ulterior phase.

Theoretical work by ( Halan. 2002 ; Singh. 1998 ) suggest that adolescents make up a major consumer market which have a buying power for their merchandises such as bites and Sweets and have an indirect purchasing influence when shopping for bigger points.

7. RESEARCH METHODOLOGY
RESEARCH DESIGN
A non-experimental study design. following the quantitative tradition will be used in chase of the research objectives. Quantitative information analysis is a technique that the research worker uses to change over informations to numerical signifiers and is capable to statistical analyses.

Sample
Respondents of the survey will be household units of parent and a kid from the Grahamstown and Albany territory ( i. e. Alicedale. Salem Alexandria and Shawpark ) . A random sample of n = 300.

Measurement Instruments
The measurement instruments are self-designed questionnaire to mensurate rural-urban differences while a questionnaire developed by Sproles and Kendall ( 1986 ) will be used to mensurate consumer determination devising. This is a 22 point instrument which was used to mensurate consumer determination devising. The scale dependability is ?= 0. 87. ( See Appendix A – Copy of Questionnaire Attached )

METHOD OF DATA COLLECTION
First. permission will be requested to make the survey at each of the families identified. Each family will so be asked for permission to turn to them at their trim clip. A systematic random sample ( n=300 ) will be taken from selected twosomes. The research worker will choose every kth family depending on the figure of families available. In audience with their employer. participants will be invited to take portion instantly. where they will be gathered in the refreshments halls and invited to take portion voluntarily in the survey anonymously.

The intent of the survey will be explained to the participants prior to engagement. Instruction manuals will be given verbally and no clip bounds will be applied. Questionnaires will be handed out to persons in a brochure format. The research worker will roll up completed signifiers instantly after completion. After the information aggregation stage. the research worker will look into the questionnaires for losing informations. Those with losing informations will be omitted.

Data analysis process:
The statistical analysis will be carried out with the SPSS programme ( 1998 ) . Descriptive statistics and illative statistics will be used to analyze the information. Where applicable Cronbach alpha coefficient will be used to measure the dependability of the measurement instruments.

8. Boundary line OF THE STUDY
The researchers’ subject will concentrate household units with income runing from R0 000 to R2 000 per month. with standard ten up to degree degree of instruction. The sample that the research worker is be aftering to utilize will be drawn from the EASTERN CAPE PROVINCE ; Grahamstown will be used for Urban consumers while the environing farms/villages will be for rural consumers. ( Alicedale. Shawpark. Alexandria an Salem )

9. ETHICAL Consideration
In carry oning this research the research worker has taken note of the psychological moralss codification of behavior. The research worker will avoid unethical behavior and guarantee: Informed consent – Before carry oning this survey. the research worker will guarantee that all participants voluntary agree to take portion in the research. Confidentiality – The research worker will esteem the privateness of the participants and others involved in the research undertaking. Deception – The research worker will non give participants erroneous information or withhold information as to lead on them. Plagiarism – If the research worker uses the work of others. proper recognition of their part will be made

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