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| SESSION | FEBRUARY-MARCH, 2025 |
| PROGRAM | BACHELOR OF BUSINESS ADMINISTRATION (BBA) |
| SEMESTER | IV |
| COURSE CODE & NAME | DBB2206 RURAL MARKETING |
Assignment Set – 1
- List the five key components of the rural marketing environment as per the STEP model and briefly describe each. 10
Ans 1.
Five Key Components of the Rural Marketing Environment – STEP Model
Socio-Cultural Environment
The socio-cultural environment in rural marketing refers to the beliefs, traditions, customs, values, and social norms that define the lifestyle and behavior of people living in rural areas. In rural India, joint family systems, religious faith, caste structure, and community-driven behavior play a major role in influencing purchasing decisions. Marketers must understand these social dynamics to design products, services, and communication strategies that resonate with the rural audience
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- Explain why rural consumers rely more on opinion leaders than urban consumers, for purchase decisions. 10
Ans 2.
Rural Consumers and the Role of Opinion Leaders in Purchase Decisions
Limited Exposure to Media and Advertising
Rural consumers often have restricted access to mass media such as newspapers, the internet, and television due to factors like low literacy levels, inconsistent electricity supply, and lack of infrastructure. As a result, their awareness about brands, products, and promotional campaigns is limited compared to urban consumers. In such an environment, personal communication becomes more trusted
- Summarize the role of advertising in rural markets and discuss two unique challenges faced by advertisers in these areas. 5+5
Ans 3.
Role of Advertising in Rural Markets and Challenges Faced
Role of Advertising in Rural Markets
Advertising plays a significant role in connecting brands with rural consumers by creating awareness, building trust, and influencing buying behavior. In rural markets, where access to modern media is limited and literacy levels are low, advertising serves as an essential tool for educating consumers about products, their usage, pricing, and availability. It bridges the communication gap between
Assignment Set – 2
- A rural agro-business faces frequent price fluctuations and post-harvest losses. Suggest three risk-minimization strategies from the text and justify how each would address these challenges. 10
Ans 4.
Risk-Minimization Strategies for Agro-Business in Rural Areas
Contract Farming Agreements
One effective strategy for minimizing price fluctuations and post-harvest losses in rural agro-business is adopting contract farming. This involves entering into agreements with large agribusiness companies or food processing units, where farmers agree to grow crops under predefined terms regarding price, quantity, and quality. This strategy ensures that farmers receive a guaranteed price for their produce, irrespective of market fluctuations, thereby protecting them from unexpected
- Analyze the key characteristics of rural consumer behavior in India and discuss how they differ from urban consumer behavior. Support your answer with relevant example
Ans 5.
Characteristics of Rural Consumer Behavior in India and Differences from Urban Consumers
Key Characteristics of Rural Consumer Behavior in India
Rural consumer behavior in India is shaped by a unique combination of economic, social, and cultural factors.
Value-Consciousness.
One of the most prominent characteristics is value-consciousness. Rural consumers prioritize price and durability over brand image or product features. They seek products that offer maximum utility at an affordable price. As most rural incomes are seasonal and depend on agriculture, spending is cautious
- Identify and describe the key bases used for segmenting the rural market. How can marketers effectively use these segmentation bases to target different consumer groups in rural India?
Ans 6.
Segmentation Bases in Rural Markets and Their Marketing Application
Key Bases for Segmenting the Rural Market
Segmentation in rural marketing involves dividing the vast and diverse rural population into smaller, manageable consumer groups with similar needs or characteristics. One key base is
Geographic Segmentation
Geographic


