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Impact of Rural Marketing Strategies on Consumer Behaviour: A Study

of FMCG Sector in Prayagraj
Mamta Yadav

Research Scholar, Department of Commerce Iswar Saran Degree College

DOI: https://doi.org/10.51244/IJRSI.2025.1210000067

Received: 20 October 2025; Accepted: 27 October 2025; Published: 03 November 2025

ABSTRACT

Fast-Moving Consumer Goods (FMCG) industry is the major element of the Indian economy, particularly in the
rural regions where a large concentration of population is counted. The research paper comments on the rural
marketing process by the FMCG companies particularly focusing on the Prayagraj district in Uttar Pradesh. The
study is quantitative in nature in which the researcher uses primary data that is distributed in 200 questionnaires,
in the form of structured questioners, to the consumers in the rural area. The fundamental aspect is the assessment
of the marketing strategies of pricing, promoting, distribution, and adaptation of products on the behaviour of
consumers. The hypothesis on which the study is being tested is as follows: (a) relates to the existence of a
significant difference between the rural marketing strategies and consumer buying behaviour in the Prayagraj
district. To analyse, statistical tools ANOVA, Chi-square test, Regression analysis and Pearson Correlation have
been used. The ANOVA test also indicated significant difference across groups of income respondents, meaning
that income sensitive trends of marketing strategies indeed emerged in the results. The results demonstrated
through the Chi-square test indicated that the relationship between the promotional schemes and the purchase
decisions was strong. Regression analysis indicated that availability of products and their pricing are the main
predictors of consumer preference whereas correlation analysis indicated that there exists high correlation
between advertisement and brand recall indicating a positive relationship with high levels of correlation. The
discoveries emphasise the role of localised marketing, community dimension, and value pricing to reach deeper
in the rural market. The paper provides some practical advice to set FMCG firms on their strategies and fit with
the rural demand and attract better market share in the districts such as Prayagraj.

Keywords: Rural Marketing, FMCG Sector, Consumer Behaviour, Prayagraj, Statistical Analysis

Prologue

There has been a growing focus on the rural consumer market in India in the last ten years over the consumers
size and untapped opportunity. Fast-Moving Consumer Goods (FMCG) industry has especially targeted this
population whose consumer needs have changed and companies have tailored their marketing needs to suit the
rural customers. The rural marketing strategies should not be seen as an extension of urban marketing strategies,
but need more insight about socio-economic, cultural and behavioural aspects which drive purchases amongst
the rural populations. Research has revealed that factors like product availability, pricing policy, advertising, on-
promotion schemes and distribution channels, influence the tendencies of rural consumer preference and
attachment considerably.

In rural areas, the approaches regarding price orientation such as affordability, as well as value-based price
package features, prove to be more effective. Advertising in local romantic languages and the use of the known
faces or local influencers can increase brand recall in rural denizens. Promotional offers like free gifts, value
packs, and acquisition of discounts during certain seasons have been noted to stimulate consumer buying
behaviour more vigorously as compared to the urban markets.

Allocation is one of the key elements in implementing rural marketing strategies. The reach is enhanced by the
presence of products in local Kirana shops and village markets and rural distribution systems thus making the
brand more dependable. The impact of technology and mobile penetration has also started to find its way in rural
marketing where organizations increase their reach through the utilization of digital platforms by brands.

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Nevertheless, the use of the traditional method of marketing e.g. door-to-door calls, direct demonstrations, and
community fairs etc weighs heavily in rural engagement strategies.

The next major point of literature existing can be seen in the focus on the need to align marketing acts in the
rural areas with the local culture, language, and traditions. Emotional appeal, packaging simplicity, and brand
belief makes much more difference than luxury or brand prestige. Research has also pointed at the importance
played by the level of income and education in determining consumer awareness and loyalty.

Although the research along this line is increasing, region-specific analysis is lacking particularly at district level.
There are very rare studies that critically examine the effect of targeted marketing approaches to the human
behaviour in the rural areas such as Prayagraj. This paper will fill this gap and add to the body of knowledge
with some actionable information to the marketers.

Statement of the problem

The consumers of the rural areas in the districts such as the Prayagraj do not resemble that of urban consumers
in their preferences, income levels, awareness, and buying behaviours. As firms engage in efforts in marketing
options like pricing offer, promotions and rural distribution mechanism, their effectiveness is still under-
investigated about affecting rural consumer behaviour at district level. Furthermore, poor marketing strategies
of no tailor-made approach and inability to learn consumer psychology in the rural setting often results in the
inability to reach the consumer and overall poor brand loyalty.Owing to this, the research intends to examine
how rural marketing strategies affect consumer buying behaviour of FMCG markets in Prayagraj in order to fill
the gap that exists between the adoption of strategies and the consumer behaviour on the ground.

Significance of the study

This research work is of great significance to FMCG marketers, policymakers, researchers and even rural
development strategists. Considering Prayagraj, a typical rural district, it provides the localised information on
the effects of marketing strategies on consumer behaviour therefore providing fresh leads on rural consumer
behaviour. The results will assist the FMCG companies in devising superior rural marketing strategies,
modifying product distribution channels, and building brand awareness in the countryside. It also adds value to
the scholarly literature since it also fills the gap in the district-level analysis of rural marketing. Finally, the study
aims at contributing to the wider vision of including the rural markets into the economic growth curve of India.

REVIEW OF RELATED LITERATURE

Researchers have highlighted the existence of a vast gap between rural and urban markets in the psychological
aspects of consumers, accessibility, and sensitivity to prices (Kashyap & Raut, 2018; Balaji & Kumar, 2020).
There are particular issues such as erratic income level, reduced communication via channels, and conservative
purchasing behaviour that need to be considered in rural areas-specific marketing (Patel & Shah, 2019; Duhan
& Singh, 2022).

It has been stated that one should take into account such variables as product availability and pricing that are,
supposedly, essential elements affecting the purchase decision in rural areas. Kumar and Rani (2021) found that
efficient distribution of FMCG brand and competitive pricing functions in Tier 3 and rural sectors respectively.
The same role is fulfilled by advertising; it is also seen that localised advertising based on vernacular languages
enhances brand recall and consumer trust (Verma & Gupta, 2020; Srivastava, 2023). Other strategies in
promotion like value packs or festival-related plans also have effectiveness in the consumer decision-making
process (Joshi & Mehta, 2021; Shukla, 2024).

Saxena and Jain (2022) and Yadav and Mishra (2018) indicates the positive effect of the promotional schema on
purchase behaviour in the country. Gupta and Choudhury (2020) explain that in rural India, brand loyalty is
heavily reliant on stable quality and availability and emotional appeal. Sharma and Tripathi (2019) also analysed
the sensitivity of income and determined that the answers to pricing and discounts were varied between the
income groups though significant.

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The focus on distribution, in particular, utilizing local kiranas stores as well as haats, plays an important role in
reaching FMCG in rural India (Singh & Kumar, 2021). In addition, Sharma and Rathore (2022) also revealed
that online marketing and mobile advertising have started to gain some momentum in even the distant rural
locations, particularly younger audiences.

Models of consumer behaviour in the rural setting have been known to yield in the use of bio-cultural aspects,
community sway and group-decision making (Prasad & Reddy, 2020; Bansal & Tiwari, 2023). Literature,
therefore, posits that success in rural marketing requires localized strategies, value-based and community-
sensitive ones.

Baisakhi Mitra Mustaphi(2025 in their research article discussed the various rural marketing strategies being
adopted by the various organization s like HUL,ITC ,Dabur, Coca Cola and Hyundai .The authors discussed the
4A ‘s of rural marketing strategy which imbibed Affordability, Availability, Acceptability and Awareness in
context of rural markets. The authors were of the opinion that Rural marketing is a strategic plan of gauging the
demands of the rural market base and supplying them with the goods and services that are of their use. It is a 2
way marketing process with inflow of products in rural market for production or consumption and outflow to
urban areas. Rural markets hold a lot of potential and opportunities for industries due to reasons like emerging
rural populations, Rural Consuming Rate and Uncaptured Market The rural market is uncaptured, and there are
so many options that can be explored and experimented with. Thus, most of the companies are turning towards
this vast pool of opportunities

Research Gap

Despite the several studies that have already been carried out to analyse consumer behaviour in the urbanised
rather than rural markets and the collective effect of marketing strategies in the FMCG industry, not much
research has been conducted to single out the rural consumer behaviour in the districts level domain of regions
like Prayagraj. The prevailing literature tends to homogenize marketing in the rural areas without taking into
account local aspects such as socio-economic dimensions and differences in income, and regional responsiveness
to the marketing programs. In this regard, one may also notice the gaps of perception of the impact of the
following marketing components (when added exclusionary and inclusionary) on the purchasing decisions made
by rural consumers: pricing, distribution, promotion, and product adaptation. This research fills this gap by
undertaking empirical research on the effects of the rural marketing strategies by FMCG companies on consumer
behaviour on the grassroots level in Prayagraj.

Objectives of the Study:

1. To assess the effectiveness of rural marketing strategies adopted by FMCG companies in Prayagraj.
2. To evaluate the influence of product availability, pricing, and promotion on rural consumer buying

behaviour.
3. To examine the role of advertisement and brand recall in fostering consumer loyalty.
4. To analyse whether demographic variables (e.g., income, gender) affect consumer responses to FMCG

marketing in rural areas.

Hypotheses of the Study:

 H₁: There is a significant relationship between rural marketing strategies and consumer buying behaviour
in Prayagraj.

 H₂: Product availability and pricing have a significant impact on rural consumer preference.
 H₃: There is a significant correlation between advertisement and brand recall among rural consumers.
 H₄: Promotional schemes significantly influence purchase decisions in rural areas.
 H₅: There is a significant difference in consumer buying behaviour across different income groups in

rural Prayagraj.

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Area of Study:

Prayagraj District with its semi urban and its rural areas, offer another good place to conduct a study to see how
well the FMCG rural marketing programs work in stimulating consumer preference and purchases

Designing of Questionnaire:

The present research work is based on survey method in the sample region where a well designed ,structured
questionnaire was drafted with the assistance of experts in the field of marketing, statistics and psychology .The
same was pretested among 20 sample respondents in order to check its reliability and validity. The questionnaire
was based on 5 Point Likert scale ranging from 1-5 from strongly agree to strongly disagree. The reliability and
validity values were 0.76 and 0.82 indicating that the same were adequate for collection of data

Sample Size:

It has been done with a sample of 200 respondents within different rural regions of the district of Prayagraj in
the state of Uttar Pradesh..

Sampling Technique:

Data collection was done through stratified random sampling technique. The stratified random sampling is
effective in representing the heterogeneous rural groups better, particularly by taking into consideration the
influence of factors such as income, education, and location of the people on consumer behaviour.

Data Analysis and Interpretation

Pearson Correlation –

Variable 1 Variable 2
Correlation
Coefficient (r)

Significance
Level (p-
value)

Interpretation

Advertisement Brand Recall 0.782 0.000
High positive correlation;
significant

Product
Availability

Consumer
Satisfaction

0.691 0.001
Moderate positive correlation;
significant

Pricing Strategy
Purchase
Decision

0.745 0.000
Strong positive correlation;
significant

Interpretation:

Pearson analysis shows that the correlations between the most important marketing variables is significantly
positive related to consumer responses. The highest correlation is achieved between advertisement and brand
recall (r = 0.782, p < 0.01), which ascertains usefulness of promotional communication in fortifying brand in the
memories of the rural consumers. In the same turn, the correlation between the availability of the products and
consumer satisfaction (r = 0.691) implies that the availability of the products at the expected time is a critical
determinant of the level of consumer satisfaction. Also, the pricing strategy was found to have a high positive
correlation with choices of purchase (r = 0.745), implying that the components of pricing policy significantly
influence purchase choices of the rural consumers and they make decisions to buy based on the perception of
value of a product or service. All the three correlations are significant statistically, which proves that marketing
components affect the phenomenon of rural consumer behaviour in Prayagraj.

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Independent Samples t-test –

Group
Sample Size
(n)

Mean
Loyalty
Score

Standard
Deviation
(SD)

t-value p-value Interpretation

Male 100 3.88 0.74 1.82 0.071 Not significant

Female 100 3.72 0.68

Interpretation:

The independent samples t-test was deployed to determine whether there exists a difference in the consumer
loyalty levels possessed between male and female respondents in rural regions. Loyalty scores were a bit higher
in males (3.88) than they did in females (3.72) although this was not significant (t = 1.82, p = 0.071). Given that
the value of p-value is greater than 0.05, we would say that no significant gender-based difference in the group
of consumers who the sample represents exist when it comes to levels of consumer loyalty. This means that there
is no significant difference between the levels of loyalty of the male and female customers in rural Prayagraj to
the FMCG brands. Therefore, the issue of gender does not seem to be a rather important distinguishing factor in
the loyalty-oriented marketing strategy when it comes to the idea behind this research.

Multiple Linear Regression –

Predictor Variable
Standardized Beta
(β)

p-value Significance Status

Product Availability 0.462 0.000 Significant

Pricing Strategy 0.398 0.001 Significant

Promotional Schemes 0.234 0.037 Significant

Distribution Efficiency 0.112 0.082 Not significant

Interpretation:

The data were analyzed using multiple linear regression which was used to determine what marketing variable
plays a significant role in the determination of consumer preference in the rural FMCG sector. Of the predictors,
the most significant influences were observed; product availability (beta = 0.462, p < 0.001), and prices strategy
(beta = 0.398, p = 0.001). Promotional schemes also contributed but on a lower scale contributing with a
statistically significant effect ( 8216elCO moves p=0.037). Intriguingly, the lack of correlation comes in when it
comes to distribution efficiency (β = 0.112, p = 0.082) as even though availability cannot be ignored, it appears
that there can be no prevailing mode of distribution. The model bears implication on the significance of
establishing the presence of the products and price elasticity as key priorities in influencing consumer choice in
rural Prayagraj.

One-Way ANOVA –

Source SS Df MS F p-value

Between Groups 18.24 3 6.08 4.91 0.003

Within Groups 245.36 196 1.25

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Total 263.60 199

Interpretation:

One way ANOVA test was used to test the difference in consumer buying behaviour due to the different levels
of income. The findings indicated statistically significant differing scores (F = 4.91, p = 0.003), which meant
that the level of income guides rural consumers in their reaction to the FMCG marketing efforts. The difference
between the group variation, 18.24, and within-group variation, 245.36, points to the fact that consumers at
varying income levels exhibit different perception and behaviors regarding the product choices, price sensitivity
and brand choices. The finding implies that income is an important demographic indicator and to enhance the
efficiency of campaigns and their engagement, marketers must develop differentiated approaches to the low-,
middle-, and rich income consumers in the rural population.

Chi-square Test –

Variable χ² Value df p-value Interpretation

Promotional Schemes × Purchase Decision 24.72 4 0.000 Significant

Interpretation:

To determine the relationship between promotional schemes and consumer buying behaviour Chi-square test
was carried out. The test produced a significant result (24.72 24.72 6 6 0, 001), and hence there is a strong
relationship between these two variables. This signifies that promotional campaigns like a slash in prices,
packaged gift items, or offers during a particular season would have a huge impact on the purchase behavior of
the rural consumers. The statistically significant relation speculates that consumers can respond to the value-
based incentives and incline to buy more when a promotion offer is offered. Consequently, the use of engaging
and frequent marketing promotions can constitute a highly effective instrument to carry out marketing in order
to stimulate the sales and the adoption of a brand in another country such as rural Prayagraj.

Logistic Regression – Predicting High Loyalty (Binary Outcome)

Predictor
B (Log
Odds)

SE Wald p-value
Odds Ratio
(Exp(B))

Interpretation

Advertisement
Recall

1.26 0.38 11.02 0.001 3.52
Consumers
recalling ads are
3.5x more loyal

Product
Availability

0.84 0.29 8.39 0.004 2.31
Availability doubles
odds of high loyalty

Pricing Strategy 0.55 0.27 4.15 0.042 1.73
Significant positive
influence

Interpretation:

Logistic regression evaluated the possibility of having a high consumer loyalty relative to marketing predictors.
The largest impact was the advertisement recall (Odds Ratio = 3.52, p = 0.001), which indicates that those
consumers who recall advertisements are more likely (3.5 times) to be loyal. The availability of products was
also instrumental (Odds Ratio = 2.31, p = 0.004) as there was the doubling of likelihood to be highly loyal.
Pricing strategy demonstrated a moderately high impact that was statistically significant (Odds Ratio = 1.73, p
= 0.042). The results suggest that closer communication, stable access to the product and justifiable pricing are
key in the production of brand-loyal customers. The model validates that the rural consumer behaviour of loyalty
depends on emotional and functional triggers such as memory and convenience.

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FINDINGS

Based on the comprehensive analysis using statistical tools such as Pearson Correlation, Independent Samples
t-Test, Multiple Linear Regression, One-Way ANOVA, Chi-Square Test, and Logistic Regression, the following
key findings emerged:

1. Close Relationship between Advertisement and Brand Recall: A positive relationship (r = 0.782), which
was considered very high, was established between advertisement and brand recall, meaning that
promotional activities play a great role in increasing brand remembrance to rural consumers.

2. Availability and Pricing of Products Substantially Correlate with Houston Preference: In addition,
regression analysis indicates that availability (beta = 0.462) and pricing strategy (beta = 0.398) are the
most significant predictors of consumer preference in rural market with respect to FMCG products.

3. Value-based promotional schemes and their effect on purchase decision appeared influential: Chi-square
test revealed a vigorous and significant intersection between promotional schemes and purchase decision
confirming the usefulness of value-based promotions in affecting the rural purchase behaviour.

4. The level of income affects consumer buying behaviour: One-way ANOVA showed that consumer
buying behaviour across income groups differs extremely (p = 0.003). This implies that in rural
marketing, strategies implemented should be sensitive to the income product positioning and prices.

5. Gender has little to do with loyalty: The independent samples t-test indicated that there was no significant
mean result with regards to gender and consumer loyalty between the males and females respondent (p
= 0.071). This demonstrated that differentiation based on gender may not be needed in loyalty-based
campaigns.

6. Advertisement Recall Leads to Greater Consumer Loyalty: In logistic regression, consumer loyalty in
response to advertisement recall showed results that demonstrated the importance of recurrent and
familiar advertisement in rural locations increased the loyalty of the consumer by 3.5 times.

7. Community-Based and Localised Marketing are most effective: The results of the study show that
localised marketing strategies based on consumer characteristics, presence of community values,
economic conditions and availability patterns appeal to the consumers in rural Prayagraj.

8. Little Influence as Compared to the Other Variables: The distribution strategy had less influence as
compared to the rest variables because out of the four variables selected to examine in the study of
determining the marketing strategy a consumer prefers, the one aspect of the strategy which had not been
found to be a prominent predictor of the type of consumer preference, the distribution strategy.

Suggestions

1. Emphasis on Low Prices: Set up pricing plans that are convenient to the rural earners to ensure frequent
buying.

2. Improve Access: Providing timely and regular supply of products even in remote rural by strengthening
the logistics and local distributors.

3. Employ Localized Advertising: Create promotion materials in the in local languages with culturally
relateable messages so that there is more brand recall.

4. Introduction of Attractive Promotional Schemes: Introduce value pack, discount, loyalty programs that
suits the requirements of rural buyers that would influence purchase decisions.

5. Connect with the Community: Use events in the area, fairs, markets and other gatherings to display the
items and have one-on-one interaction with the consumers.

6. Simplify Packaging and Labelling: The simplification and use of simple (clear and pictorial) pack should
be possible to give semi literate / illiterate consumers a chance to make intelligent decisions.

7. Conduct Consumer Awareness Campaigns: Raise awareness among the rural consumers spread the
message on product usage, benefits and brand name by visiting them door-to door or holding village
meetings.

8. Use Rural Influencers: join up with local well-known members (e.g. teachers or village heads) to
promote items and impact credibility.

9. Income-Based Segment Marketing: Differentiate products and offers, as also promotions, based on the
segmentation of the income groups.

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CONCLUSION

In a similar situation, as revealed in the present study on Impact of Rural Marketing Strategies on Consumer
Behaviour: A Study of FMCG Sector in Prayagraj, the localisation and consumer- conscious type of marketing
are extremely important in deciding the pattern of the consumption in those areas that are rural in nature. The
evidence reaffirms that out of the numerous components of marketing mix, availability of products, price policy
and marketing programs can largely determine the choice of goods and purchases among consumers. It was also
revealed that the advertisement recall exhibited a high correlation with brand loyalty, which proved the
usefulness of specific promotional activities in rural markets. Also, there was a finding that income levels play
a major role in consumer response which means that rural marketing strategies should appeal to the economic
sensibilities of the target audience. On the other hand, gender, efficiency of distribution etc. were discovered to
play an insignificant role in influencing consumer loyalty or preference. Generally, the research findings can be
concluded that the rural marketing strategy that focuses on affordability and accessibility, and the locally centric
approach, is critical to the success of FMCG firms in places such as Prayagraj. Mixing cultural relevancy and
constant communication also contributes to brand visibility and consumer confidence. The study can be used in
influencing marketers, policymakers, and FMCG companies that wish to increase their penetration in the rural
areas and adopt strategies that are appealing to the dynamic consumer demands in the rural setting.

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