The Indian rural consumer has been seen as traditional and reluctant to change. METRIC's conceptual framework sees the rural consumer as a judicious investor who prefers options where returns are more certain. This behaviour is referred to as risk aversion..
RIRA analyses functional, physical, financial, social and psychological risks to the rural consumer towards a product/ service to develop a strategy to reduce the risks..
RIRA uses a 4 step approach :
1. Identify the problem area
Farmer's risk perceptions differ according to the product and the farmer's own situation. It analyses your products in the context of different market segments
2. Understand and quantify the farmer's specific risk perception
Depending on his own situation
and the product, farmer's risk perception differ. RIRA identifies
-> What risks are more crucial from farmer's view point ?
-> How does he arrive at his present risk perception ?
-> How much is the risk ? (as he sees it)
-> What strategies does he adapt to avert perceived risks ?
-> What is the profile of those who have low risk perception ?
-> How much is the real risk? (study and quantify it)
3. Design a marketing mix to reduce the real and the perceived risk
If the real risk is high then the first task is to reduce the real risk through product development and or developing the services offered along with the product.
4. Put in action the marketing mix strategies to reduce risk perception
Work out the resources requirements, define new responsibilities and train people to handle the new responsibilities.
RIRA - to develop your
rural market
