The Indian rural market has immense potential, which needs to be tapped. This potential of the rural markets evolves primarily due to the colossal size of varied demands of rural masses. The growth rates in rural markets have been remarkable in the recent years when compared to those of urban markets. The second most important contributing factor for the growing attraction towards rural markets is the increasing complexities and competitiveness of urban markets. This paper is an attempt to explore the motivational factors for durables purchase (especially, refrigerator) in view of the emergence of vast opportunities for rural markets. For this purpose, a sample of total 596 refrigerator buyers—of which, 229 are rural and 297 urban buyers—of Punjab were surveyed to assess the similarities and differences with regard to the durables purchase displayed by them. The results were analyzed and interpreted using Z test. Finally, some useful implications for effective penetration of both these markets have been suggested for the durables marketers.

Rural markets are increasing in India in both size and volume, precisely for which MNCs marketing durables will be missing a great opportunity if they do not explore the rural markets. Further, urban markets have become congested with too many competitors and have reached a near-saturation point. Rural markets have become the main stay with the potential for consumption of variety of products and services. For many products, rural markets provide a promise owing to lag in adaptation (Manchandani, 2003).

It has been found that the electronic and auto industries have now started concentrating on a huge rural Indian population, after observing a steady increasing demand for their goods. It is the market that once lagged behind in terms of technology development and could hardly afford expensive durables. The companies like Hyundai and Philips have started making use of the rural culture to promote their products. Economic studies show that the middle- and high-income households in rural India will grow to 111 million in the next five years from 80 million last year. According to a survey in 2003, the National Council of Applied Economic Research (NCAER) estimated that, on an average, a rural Indian household will have five major consumer appliances by 2006, almost double of what it had five years ago (The Tribune, 2003).

Management Research Magazine, Indian Rural Market, Urban Markets, Multinational Companies, MNCs, National Council of Applied Economic Research, NCAER, Economic Studies, Rural Education Levels, Communication Strategy, Social Negotiation Skills, Rural Market Growth Rates, Indian Marketing Environment, Marketing Strategies, Decision-making Skills, Socioeconomic Characteristics.