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The IUP Journal of Marketing Management
Focus

Urban Indian markets have saturated, so for further growth rural India is being tapped by industries like FMCG, consumer durables, automotive, and so on. In the first paper, “Modeling the Barriers to Rural Marketing Using the Interpretive Structural Modeling Approach”, by Poonam Kumari, Nirupma Gupta and Shilpa Sindhu, a number of barriers and their interrelationships have been derived for rural Indian markets using Interpretive Structural Modeling. This paper will enable rural marketers to identify critical points where maximum efforts could be focused for success. The rural markets can be tapped by forward innovation, inclusive marketing, innovative rural distribution, and by having dedicated rural teams, to name a few. In this paper, some barriers to rural marketing have been identified. They are low income, low literacy level, too many languages and dialects, underdeveloped rural infrastructure, seasonal purchase, low purchasing power, sociocultural factors/differences, highly scattered rural villages, distribution, pricing, media selection and promotion problems, resistant-to-change behavior of rural people, fake/spurious products, inadequate fixed income and too much dependence on farming activities. The ISM has been used to interpret the data. Structure Self-Interaction Matrix (SSIM), Reachability Matrix, and Partitioning Reachability Matrix have been constructed for better understanding. Digraph and MICMAC are used to find out the driving power and dependence power of the barriers towards successful rural marketing. The ISM developed in this paper will serve as a tool for the marketers to understand the barriers and their interrelationships to rural marketing in India.

In a developing economy like Sri Lanka, lentils play an important role in diet. They are high in protein, fiber, vitamins and minerals and therefore are referred to as ‘poor man’s meat’. The objective of the second paper, “The Influence of Country-of-Origin Labeling for Lentils on Consumer Preference: A Study with Reference to Sri Lanka”, by Ramu Govindasamy, Surendran Arumugam and Isaac Vellangany, is to identify whether consumers consider country-of-origin as an impotant attribute while purchasing red lentils. The study collected detailed information related to demographic and socioeconomic factors and the grocery purchasing pattern and behavior of consumers. Using a well-structured questionnaire, relevant primary data was collected from 300 respondents from five districts of Sri Lanka. According to the study, consumers considered overall appearance, quality, color, packaging, brand, store, and income as key attributes while purchasing country-of-origin labeled red lentils. The findings of this study will help US farmers and exporters to strategically promote lentils with specific attributes in Sri Lanka.

Scales are most commonly used method of data collection in field research. The third paper, “Consumer Perception Scale in Store Environment (CPS-SE) for Measuring Consumer Buying Behavior”, by Shalini Jha, Bharti Singh and Suresh K P, develops a scale which captures consumer buying behavior in a store environment in three stages, namely, item generation, scale development and scale evolution. In the study, a scale was developed using six factors—perception of merchandise quality, perception of overall environment, perception of ambient music, perception of affability of salesperson, emotion and behavior. Factor analysis was used to check the unidimensionality of scale to assess consumer behavior. The CPS-CE model can be used for other experimental studies to measure consumer perception in the presence of other atmospheric cues like aroma, lighting and colors and other social factors like crowding. The scale is first of its kind to measure consumer perception, emotion and behavior in the Indian retail setting. According to the authors, the scale can be used for similar studies of other emerging economies as well.

Nowadays, cellular phone services have become an integral part of our day-to-day life. The fourth paper, “Segmentation of Users of Cellular Phone Services in Guwahati City: An Exploratory Study”, by Sinmoy Goswami, Suman Sarmah and Swapna Boruah, focuses on segmentation of users of cellular phone services in Guwahati City. The study identifies five clusters of respondents which include—popularity seekers, connectivity seekers, efficient service seekers, optimal service seekers and quality service seekers. The study reveals that quality service seekers are the largest segment. Therefore, this ensures that higher customer loyalty depends on Quality Service. Similar studies can be carried out in other parts of India and world, covering other parameters of cellular phone services.

-- B Shafiulla
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Marketing Management