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Assignment Set – 1



  1. Discuss different features of rural economy.

Ans 1.

Features of the rural economy.

Occupation Pattern

In the rural economy, agriculture is the main occupation. Traditionally, agricultural activities are conducted in villages and its associated activities are also mostly carried out by rural people. Usually, both men and women are engaged in agricultural activities.

Income Generation

In the rural economy, people largely depend on agriculture and its associated activities for their income. However, agricultural income is seasonal and rural people get more income during the harvest season. They spend this income to buy different items. During the nonharvest seasons, rural



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  1. Discuss any five factors that contribute towards growth of the rural markets.

Ans 2.

The growth of rural markets is integral to the overall economic development of a country, particularly for nations where a significant proportion of the population resides in rural areas. The potential of rural markets is vast, but their growth can be attributed to multiple factors. Here are five prominent factors that contribute towards the growth of rural markets:

  1. Improved Infrastructure and Connectivity:

One of the most significant enablers of rural market growth is the development of infrastructure. As roads, transportation, electricity, and telecommunication services improve, rural areas become more



  1. Discuss reasons responsible for change in demand pattern of the rural areas.

Ans 3.

Let us look at the reasons responsible for change in demand pattern of the rural markets:

  • New Employment Opportunities

In earlier times, people in rural areas were only engaged in agriculture, making it their chief occupation. However, because of various development activities in rural areas along with advancements in the agricultural sector, exciting and new careers are emerging. Additionally, self-employment policy has also proved successful in the rural areas. Therefore, due to an increase in employment opportunities, the income of rural people is improving, which in turn




Assignment Set – 2

  1. Explain the significance of market research in rural areas.

Ans 1.

Market research in rural areas is of significant importance for several reasons:

Understanding Unique Consumer Behavior: Rural consumers often have different preferences, needs, and purchasing behavior compared to urban consumers. Market research helps companies understand these unique characteristics, enabling them to tailor their products, services, and marketing strategies to effectively reach and serve rural customers.

Identifying Market Opportunities: Rural areas often present untapped market opportunities


  1. What is the significance of consumer behavior models?

Ans 2.

Consumer behavior models are essential tools for businesses and marketers as they provide a structured framework for understanding and predicting how consumers make decisions about purchasing products or services. The significance of consumer behavior models can be summarized in several key points:

Understanding Consumer Preferences: Models help in understanding what factors influence consumer preferences. This knowledge can be used to tailor products, services, and


  1. What kinds of difficulties do FMCG companies in rural India face?

Ans 3.

Fast Moving Consumer Goods (FMCG) companies in rural India face several challenges and difficulties, many of which are unique to the rural market environment. These challenges can significantly impact their operations, sales, and market penetration. Some of the key difficulties faced by FMCG companies in rural India include:

Infrastructure and Accessibility: Rural areas often lack proper road infrastructure and transportation facilities, making it challenging to reach remote villages and distribute