Socio Economic Profile of Househohold Consumers in Mizoram: India

The Socio frugalal Characteristics of Household Customers in Mizoram 2. 1 Introduction Consumer Behaviour, existence the mental dimension of merchandising management, is based on discordant fixingss. Since tot on the wholey of us atomic count 18 consumers, what we buy, how we buy, where and when we buy, in how oftentimes quantity we buy depends on our perception, self-importance concept, social and cultural background and our age and family cycle, our attitudes, beliefs, observes, motivation, in the flesh(predicate)ity, social class and many other accompanimentors that ar both internal and external to us (Mark ES and Armen T, 1985).This is really evident in India, the second most populous community in the world and the number iodine contributor to the worlds cosmos growth of potential customers (Population Reference Bureau, 2000). Traditionally, marketers fork out often relied on intuition and demographic information such as age, sex, income level and teleph angio tensin converting enzyme circuit for identifying potential argonas (Dash PK and Sarangi M, 2008). jibe to Sproles and Kendall (1986, p. 67), identification of these characteristics among the consumers helps to profile (individual) consumer style, educate consumers about their proper( extendnominal) decision- devising characteristics, and counsel families on financial management. Again, many research studies show that consumer profiles be crucial as it deals with the mental orientation of consumers in making decisions (Wells, 1975 Lastovicka, 1982 Westbrook and Black, 1985 Sproles and Sproles, 1990 Stone, 1954 Darden and Moschis, 1976).The consequential effects of demographic, socioeconomic and regional instrument pass on been demonst set upd by various studies in consumers choice of foreign and domestic harvests, or preferably ethnocentrism too (Sharma, 1995 Klien, 1998 and Elliot 2003). In the present chapter, it is intended to naughtylight who the Mizoram syndicate consu mers ar on the founding of their demographic and socioeconomic profile. 2. 2 Profile of the place customers Taking menage customers as test units, the syndicates argon sampled from urban and hobnailed areas. All the eight (8) functioning regularizes are taken into comity for the study.For the research, all the district home plate, namely, Aizawl, Champhai, Kolasib, Lawngtlai, Lunglei, Mamit, Saiha and Serchhip are taken as urban samples. The awkward samples are taken from the following villages/towns Saitual and Aibawk from Aizawl district, Khawbung and Khawzawl from Champhai district, Bilkhawthlir and Vairengte from Kolasib district, Chawngte and Diltlang from Lawngtlai district, Hnahthial and Zobawk from Lunglei district, Rawpuichhip and Kawrthah from Mamit district, Tuipang and Sangau from Saiha district and N. Vanlaiphai and Thenzawl from Serchhip District. 0 home bases are sampled from the district headquarters for the urban sample and 20 places from each of the villages/towns mentioned for the campestral population sample, making it 40 coarse households for every district. In all, 640 households i. e. 80 households from each districts, 40 from urban areas and 40 from country areas are sampled to cover the full-page bow. The pen of households is done, with suitable modifications and necessary adjustments in accordance to Splores and Kendalls Consumer Styles Inventory stupefy (Splores and Kendall, 1986).Following Leon GS and Leslie LKs demographic subdivisionation, the sample is studied on the basis of the education level, briny occupation, family coat, root word of the households in foothold of number of adults, nestlingren, potent and female fragments, say of income, number of earning members in a household and lastly, the part of perdurable products own by household customers. Analysis is done employ F-Test and Pearson Correlation to keep an eye on out the kin in the midst of plain and urban population for each of the demographic variables. F-Test analysis tests to see whether dickens population variances equal each other.Essentially, the analysis compares the ratio of two variances. The assumption is that if the variance is equal, the ratio of the variances should be equal to 1. Variance may be delimitate as the square of standard deflexion, standard deviation being the public motion-picture show about the information sets mean (Stephen L. Nelson, 2007). Standard deviation is calculated using the formula ? = v? fd2x/N ? fdx/N2 and variance go out be ? 2 (Mohan Singhal, 1999) Pearson Correlation is used to determine the kindred amidst the two set of data x and y viz. rban and countryfied population. The formula for finding out the correlativity r preserve be noted using the formula rxy = N? fxy-? fx.? fy/vN? fx2-(? fx)2N? fy2-(? fy)2 The output will be amidst -1 to +1. Positive look on signifies positivistic correlation coefficient i. e. both the data sets move in similar d irection plot negative value signifies negative correlation i. e. the two data sets move in disparate direction (Lokesh Koul, 2009). The purpose of using F Test is to determine the homogeneity of the two sets i. e. countrified and urban household customers. Correlation Analysis is sed to find out the nature and stratum of relationship in the midst of the farming(prenominal) and urban household customers for each of the socio economic variables. 2. 2. 1Education agree to Harold H. Kassarjian (1971), education, comparable other ad hominem qualities including sex, income, family cycle and so on, play an important role in influencing the buying behavior. The respondents who represented their households were broadly classified into illiterates, literates, Below Class 10, Class 10, college drop-outs, graduates and post graduates on the basis of their education level and are represented in divulge 1. break 1 Educational profile of household respondents hold over 1 Education lev el of unsophisticated and urban respondents come in of household customers Education LevelRuralUrban Illiterates5 (1. 56)4 (1. 25) Literates70 (21. 88)21 (6. 56) Below class 1071 (22. 19)41 (12. 81) Class 1080 (25. 00)61 (19. 06) College drop outs30 (9. 38)32 (10. 00) Graduates51 (15. 94)105 (32. 81) Post graduates13 (4. 06)56 (17. 50) Total320320 note Figures in deviation are dowers. Taking into account the responses of agricultural and urban respondents as shown in give in 1, the outcome F-test value tallied to 0. 840913.This shows a gamey tier of similarity in the variances of the two sets, indicating homogeneity in composition between the two sets of respondents. The Pearsonian Correlation gave an output of 0. 287853, a positive relationship between campestral and urban. unconstipated though there is a high degree of homogeneity between the two sets of samples, the relationship between the same set is not very strong when introducing Correlation Analysis. According t o nosecount India 2001, Mizoram stood as one of the leaders in the field of literacy. With 88. 48% rate of literacy, Mizoram came in second next to Kerala.This rationale is reflected in the study as Table 1 indicated that totally 1. 41% of the household respondents are illiterates. Even though there is not much difference between coarse and urban respondents in respect of illiterates, the cracker-barrel sample shows that volume of the awkward households impart passed class 10 i. e. 25% of the 320 outlandish households, tour the majority of the urban households are graduates with 32. 81% of the 320 urban households. Although there is a preferably hearty gap in the level of education between rural and urban samples, it is evoke to note that rural households do substantiate gate to higher(prenominal)(prenominal) education. . 38% are college drop outs, 15. 94% are graduates and 4. 06% of the rural households hold post graduate degrees. That makes 29. 38% of the rural house holds have exposure to collegiate environment and thus, to urban lifestyle as all of the 22 colleges including Law Colleges are established in urban areas i. e. district headquarters (Statistical Handbook, 2008). 2. 2. 2 Occupation According to the Statistical Handbook (2008) published by the Government of Mizoram, factory farm and its allied sectors have a declining figures in terms of Gross State Domestic Product (GSDP) for the past years from 2005-06 savings bank 2007-08.Further decline is expected from the quick estimate made by the Department. One factor so stated in the Handbook being the mautam famine. This may also result in change of occupation from agriculture to other sectors to ensure livelihood. On the other hand, the State saw the pensiveness of undercover corporates in the form of restitution companies, banking companies and other nonpublic societies. confused private banking companies like Axis Bank, Syndicate, Central Bank of India, Bank of Baroda, Punjab st udy Bank, IDBI, have started their branch offices in Mizoram bringing about spending opportunities for better youths (see Table 7. , Statistical Handbook 2008). At the same time, private insurance companies mushroomed in Mizoram from the past five years. According to the Taxation Department , companies like Birla Sunlife, Tata-AIG, Bajaj-Alliance, Reliance etc. have started their ventures in Mizoram, once more than than opening employment for the sons-of-the-soil. With the fast advent of wandering(a)-telecom industry in Mizoram since mid-2003, companies like Airtel, Reliance, Aircel, Tata-Indicom, Vodafone began employing mizo youths as their practi air staffs. Even then, the largest employing organization is the State Government.According to the 5th Economic census 2005 , the State Government accounted for 85% of employment in the State with 40,603 posts infra its umbrella. In fact, the up-gradation data as on 2006 showed 51,070 employees including muster-rolls and work-cha rges. Purchase involvement and consumer behaviour is greatly square upd by the occupation of the household consumers (Harold H. Kassarjian, 1971). Therefore, the study categorise the sample households as Agriculture, carpentry and Skilled Workers, Daily Wage Earner, Government Employed, occult Company Employed and Business or Own Enterprise.Exhibit 2 shows the profile of occupations of the respondents. Exhibit 2 Occupation profile of household respondents Table 2 Occupation of rural and urban respondents good turn of household customers OccupationRuralUrban Agriculture81 (25. 31)3 (0. 94) Carpentry and Skilled Workers31 (9. 69)9 (2. 81) Daily wage earner40 (12. 50)32 (10) Government Employed99 (30. 94)223 (69. 69) Private Company employed3 (0. 94)19 (5. 94) Business66 (20. 63)34 (10. 63) Total320320 neb Figures in parenthesis are percentages Applying F-test, the relationship of rural and urban sample variances is calculated as 0. 79742, a low degree of homogeneity in terms of t heir variance ratio. Table 2 shows that rural households are more than than evenly distributed in terms of different occupations than their urban counterparts. But then, the correlation degree gave a instead high positive correlation of 0. 69526. This may be due to the fact that the highest frequencies of both rural and urban households are government employed. Agriculture is still an important occupation for the rural households, claiming more than 1/4th of the whole rural households while agriculture is quite negligible for the urban population as an occupation.One indication that private companies are yet to penetrate the rural areas is the negligible employment by private companies in rural areas. Rural savings and insurance heap yet still be tapped by private company players. Since 2005, subject area Rural Employment Guarantee Act/ Scheme began enhancing the purchasing originator of the rural households. Moreover, this particular wage employment scheme encourages savings and personal insurance for the rural households . Rs. 39,500 crores will be pumped into the rural areas nation-wide in the year 2009-10 under this scheme.This can be an opportunity as the rural consumers constitute more than 75% of the Indian population and out of the 1. 61 lakhs household in Mizoram, rural areas account for almost half of the whole population of the State (The Marketing Whitebook, 2005). Own enterprise or ancestry constitute a significant proportion of households in the rural sample, again an indication of good business opportunity for rural banking. The overall tabulation shows that 50% of the whole sample population are government employed, signifying a large business pool with secured incomes for marketers. . 2. 3 Family size As the original consumer decision making unit, the family has been the subject of intense examination for a number of years (Lakshmi PV and Murugan MS, 2008). Family may be regarded as one of the strongest source of influence on consume r behaviour, its size being the significant determinant (Matin Khan, 2006). As the hollow out unit of defining culture, family has a very prominent effect on attitude formation in various facets of marketing (Burke, 2002 Wood, 2002). It may be held true that the family size matters in household consumer behaviour.The larger the family, the larger its consumption needs and wants. Product preferences also depend a lot on the household size (Srivastava KK and Sujata K, 2008). Exhibit 3 gives the overview family size of the household respondents. Exhibit 3 Family size profile of the household respondents Table 3 Family size of the rural and urban respondents offspring of household customers Number of family membersRuralUrban Upto 211 (3. 44)22 (6. 88) 3 5152 (47. 50)154 (48. 13) 6 8133 (41. 56)138 (43. 13) 9 and above24 (7. 50)6 (1. 88) Total320320 note Figures in parenthesis are percentagesExhibit 3 shows that about 47% of households are bigger families with 6 or more members and Table 3 indicated that the number of families with membership of 9 and above is quadruple times more in rural areas than in urban areas. According to the 2001 nose count, the average size of scheduled tribe households in the rural areas was 5. 2 members while in urban areas it was 4. 9 members. It should be noted that the two family sizes viz. 3 to 5 members and 6 to 8 members together accounted for 89. 06% of the rural respondents and 91. 26% of their urban counterparts.Taking the family sizes 3 to 5 and 6 to 8, the median value size lies between 5 and 6 member-households. This indicates the similarity of the households studied with that of the Census 2001 figures . The F-Test shows a very high degree of 0. 932141, indicating high homogeneity between the rural and urban respondents. Further application of Correlation Analysis gave the value of 0. 987285, demonstrating a very high level of relationship between the rural and urban customer households. Hence, both the tests show th at there is not much difference between the rural and urban households in respect to family size.India, for some(prenominal) decades, have been involved in defining family size, in fact, one of the earliest nation to be concerned with the issue . Decadal studies show that there has been a marginal decrease in family size from 5. 5 in mid-eighties to 5. 3 in 2001 even though there is a very significant increase in population during 1980 and 2001 from 493,757 to 888,573 . This is an indication of growing nuclearization of families in the Indian society as stated in Census India accounting and an indication of mass education and media awareness of the general population present in the decrease of family size, an after-effect of family planning. . 2. 4 Age Product needs and interests metamorphose with the age of the customers (Srivastava KK and Sujata K, 2008). Obviously then, different age groups present different marketing challenges and opportunities. Marketers thus have found age to be a in particular useful demographic variable for distinguishing segments (Elliot et al, 2003). Table 4 shows the number of adults in both rural and urban households. Table 4 Number of adults Number of household customers Number of adultsRuralUrbanTotal Upto 2102 (31. 88)104 (32. 50)206 (32. 19) 3 5146 (45. 63)171 (53. 44)317 (49. 53) 6 871 (22. 19)41 (12. 81)112 (17. 50) 9 and above1 0. 31)4 (1. 25)5 0. 78) Total320320640 Note Figures in parenthesis are percentages The output value of F Test gave a significantly high 0. 768617 masking the similarity between the rural and urban household customers in respect of the adult population. A correlation degree of positive . 959861 also indicates that there is a very high positive relationship between the two samples. Almost 50% of the households have 3 to 5 adult members. About 22% of the households in rural Mizoram have the adult population of 6 to 8 members, whereas only 13% of the households in urban Mizoram have the same nu mber of adult population.It is already show in Table 3 that the median household size of the samples is between 5 to 6 members. Therefore, it can be stated that the majority of households are adult-dominated. As for the children population, the rural and urban households are studied of its child members, categorizing them in 2 subsets, below 14 years of age and between 14 to 18 years of age. Table 5 Number of children below 14 years Number of household customers Number of children below 14 yearsRuralUrbanTotal Upto 2112 (35)94 (29. 38)206 (32. 19) 3 566 (20. 63)78 (24. 38)144 (22. ) 6 820 (6. 25)16 (5)36 (5. 63) 9 and above01 (0. 31)1 (0. 16) Total198189387 Note Figures in parenthesis are percentages Of the 320 rural households, 198 households have family members below 14 years and out of 320 urban households, 189 households have family members between 14 to 18 years of age. Table 6 Number of children between 14 to 18 years Number of household consumers Number of children between 14 to 18 yearsRuralUrbanTotal Less than 255 (10. 94)76 (23. 75)131 (20. 47) 3 559 (18. 44)42 (13. 13)101 (15. 78) 6 88 (2. 5)12 (3. 75)20 (3. 13) More than 90 (0. 31)1 (0. 16) Total122131253 Note Figures in parenthesis are percentages come forward of the 320 rural households, 122 households have family members between 14 to 18 years of age. proscribed of the 320 urban households, 131 households have family members between 14 to 18 years of age. The peculiarity of the children population into the 2 subsets is to segment the consumption needs and wants (Srivastava KK and Sujata K, 2008) Analysis of the rural and urban respondents with children below 14 years gave F-test value of 0. 884167 and a correlation coefficient of . 970224.These results showed the close relationship between the two samples. Again, rural households and urban households with children between 14 to 18 years gave an F-test output of 0. 888851 and a correlation coefficient of . 886998, demo a positive relation ship between the samples. This again shows that there is not much difference between the rural and urban household customers. A significant finding from the two subset tables is that most of the households in both rural and urban areas have the highest frequency in the least number of children in its family members i. . not more than 2 in the household, followed by 3 to 5 children in a household. While most of the households have 3 to 5 adults, most of the households have less than 2 members classified as children. This intelligibly demonstrated that most of the households are in the family stages known as bountiful Nest II and III . 2. 2. 5 Income Income is, perhaps the single factor which significantly define the consumer behaviour of households. In fact, much of the other demographic characteristics like education, family size, and culture depend largely on the income of the households.Even the economic environment depends on the households income and as Philip Kotler (2006) st ated, In the economic arena, marketers need to focus on income diffusion. Income is one of the important determinants which have a strong positive influence on the ownership of consumer durables (Bijaya KP and Siba PP, 2008) and even preference pattern of consumable products largely depend upon the income distribution of the households (Prashanta KD and Minaketan S, 2008).Several studies show that income, as a demographic factor, has a significant effect on purchasing styles even on the internet (Marakas GM, Yi MY and Johnson RD, 2002 Ratchford et al, 2001 Wood, 2002). The income range of the household respondents is illustrated in Exhibit 4. Exhibit 4 Income profile of household respondents Table 7 Income range of the rural and urban respondents Number of household customers Income RangeRuralUrban 2000019 (5. 94)87 (27. 19) Total320320 Note Figures in parenthesis are percentages Taking the values inclined in Table 7, F-Test Analysis for the rural and urban households gave an outp ut 0. 5093 while the Correlation Analysis gave a low positive relation degree of 0. 06. This shows that the income range distribution between rural and urban are or else loosely related, compared to other socio-economic factors already studied. In the rural sample, households with monthly income of Rs. 10,001 to 15,000 has the largest percentage, while the urban sample showed that households with more than 20,000 has the highest percentage. This may be due to the fact that the main occupation of the urban households is government jobs.Even though the largest percentage of the rural households is government employed, a very significant portion of the rural households are engaging in agriculture (see Table 2). Another factor may be the fact that higher paying government jobs are mostly within the urban areas. According to Lalit Kumar Jha (1997), the overall average household income of Mizoram State is Rs. 10,026 per month. This income range is reflected in the total household sample s with 21. 09% as the highest percentage, showing the whole household sample is the sub-set of the State population. 2. 2. 6 Earning MembersThe phenomenon of double income has been identify as a sociologically relevant variable which may tinge lifestyles of households (Srivastava KK and Sujata K, 2008). Michman R (1980) identified the multiplicity of income sources of households as an important market sub-segmentation as the purchasing capacity and involvement is much more dynamic. Recently, new segment has been identified and targeted as DINK or Double Income No Kids. An interest survey by the Associated Chamber of Commerce & Industry of India (2008) on changing Consumption Patterns of Delhi shows that DINKs are high spenders .The survey states that households DINKS spend more of their resources on luxurious lifestyles while their counterparts, double income-with kids households spend most of their incomes on child education, healthcare, insurance and home making, making the stud y of income source pattern a crucial issue for marketers. The number of earning members per households is presented in Exhibit 5 Exhibit 5 Earning members profile of household respondents Table 8 Number of earning members in rural and urban households Number of household consumers No. of Earning Member(s)RuralUrban 1248 (77. 5)141 (44. 06) 263 (19. 69)137 (42. 81) 39 2. 81)42 (13. 13) Total320320 Note Figures in parenthesis are percentages Table 9 depicts a rather unrelated distribution of number of households for rural and urban areas. Even though F-test Analysis gave a rather low homogeneity between rural and urban households with a degree of 0. 33318, Correlation Analysis gave a significant positive relationship of 0. 700723. This shows that even though there is a rather large disparity between the means of rural and urban households, their relationship cannot be ignored. The study shows that most of the rural households have only one earning member in its households, claiming 77 . 0% of the whole sample while the urban households have a very prominent proportion of two earning member households claiming 42. 81% of the urban sample, a close second to households with only one earning member. The number of earning members of rural and urban households can be co-related with the income ranges of rural and urban households. Table 7 showed that the average income range of urban households is relatively higher than rural households and Table 8 indicated that households with two earning members are quite higher in urban samples. . 2. 7 Durable products have ORG-Gfk Year-End Reviews (2004) states that the Indian consumer durable industry is estimated at around Rs. 200 billion and growing. The healthful growth of durables market can be an offset of various factors like fragmentation of households into double-income nuclear families to the presence of easier finance options expansion of principal sum networks and after-sales services (Marketer Whitebook, 2005). In fact, durable products account for 6. 6% of yearly purchases of Indian households (Arvind Singhal, 2001).According to the information given in The Marketer Whitebook (2005) 42% of all households owned radios, 20. 4% owned video recording, 14. 1% owned telephone, 3. 1% owned bicycle, 6. 2% owned motorized 2-wheelers, 3. 4% owned cars and 50. 9% owned unspecified durables in Mizoram. The profile of durable products owned by the households determine various dimensions of consumer behaviour, namely, purchase preference, product penetration, support purchase for already owned durables, marketing opportunities and so on. Exhibit 6 gives an overview to the ownership of durable products by the household respondents.Exhibit 6 Durable products profile of the household respondents Number of households Table 10 Durable products owned by rural and respondents Number of household customers RuralUrban Radio205 (64. 06)182 (56. 87) LPG209 (65. 31)315 (98. 43) Music system107 (33. 43)179 (55. 93) T elevision218 (68. 13)308 (96. 25) Fridge189 (59. 06)306 (95. 63) Oven15 (4. 68)65 (20. 31) Washing machine125 (39. 06)210 (65. 62) Telephone135 (42. 18)289 (90. 31) Mobile233 (72. 81)300 (93. 75) Computer48 (15)187 (58. 43) Scooter42 (13. 12)18 (5. 62) Bike31 (9. 68)112 (35) Car19 (5. 93)119 (37. 18)Note Figures in parenthesis are percentages From Table 9, the most owned durables by rural and urban household respondents can be ranked and represented in Table 10. Table 10 Ranking of most owned durable products Ranks 12345 RuralMobileTelevisionLPGRadioFridge UrbanLPGTelevisionFridgeMobileTelephone OverallLPGMobileTelevisionFridgeTelephone Durable products are independent to factors like access to electricity, availability of LPG suppliers and flatulence pumps. According to the Statistical Handbook (2008), there are 24 LPG appoint dealers, each district having at least one dealer.There are 18 gaseous state pumps all over the State and every district except Mamit district has at leas t one recognised petrol pump. As for electrification, 570 villages have already been electrified, accounting for around 70% of the State accessing to electricity, 44. 1% of the rural households and 94. 4% of the urban households reported as electrified. According to the Taxation Department Report, mobile phone came in use only from 2003 that too started only with BSNL giving out 500 subscriptions. Till October 2008, there is a total of 2,85,287 subscribers with BSNL, Airtel, Reliance and Aircel.This information does not take into consideration the entry of Tata-Indicom and Vodaphone service providers. Out of the 320 respondents from rural households, 233 households (i. e. 72. 81%) own mobile phones. Various factors can come into play here, the competitive and aggressive federation of mobile service providers in the rapid and widespread penetration of both rural and urban areas being one of the major factors, competing and overtaking at some places in the once monopoly of the state- owned BSNL. About 29 recognised cable TV operators operating in urban and semi-urban areas gave monthly subscription to consumers since 1991 .Apart from these operators, private dish antennas are made available by Zee pigeonholing (Dish Tv) at affordable prices below Rs. 2,000 . This may be one of the main reasons that television is very popular in both the rural and urban areas, claiming 68. 13% of rural households and 96. 25% of urban households owned television set. It is interesting to see that even some unelectrified villages have solar powered television with dish antennas besides the thatched huts . LPG is considered household necessity for the urban households with 98. 43% of urban samples having access to LPG.Yet, it came as the third most owned durable product in the rural areas. A prominent factor may be the easy accessibility to the LPG dealers. Aizawl has 11 LPG agents within its district, Lunglei with 4 agencies, Kolasib with 3 agencies, Champhai with 2 agencies and L awngtlai, Mamit, Serchhip and Saiha with 1 agency each. Other factors may be the price of LPG cylinders and hesitation of supply even at the agencies. Even though radio continues to be the most extensive network covering the entire State , its popularity is confine mostly to the rural areas, accounting for 64. 06% of rural households and 56. 7% of urban households of the sample. aver of other electronic media, like cable television network and Doordarshan, peradventure one of the main reasons. Fridge ownership accounted for 59. 06% of rural households and 95. 63% of urban households. As large number of rural households are agrarian based, they can be assumed to have easy access to fresh vegetables as compared to the urban households. The main utility of fridge being storing of food, thus is more popular in the urban areas. As for telephone, 90. 31% of the urban households have telephone connection while 42. 18% of rural households accounted for telephone connection.