Rural Ürban Differences in Consumer de

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Rural-Urban differences in consumer decision making in South Africa

By

Mzimkulu Christopher Landu

Submitted in partial fulfilment of the requirements for the degree: Master of Commerce (Research proposal)

In the

Department of Industrial Psychology
Faculty of Economic and Management Sciences
University of Fort Hare

16 August 2012

Supervisor: Professor Dr .N. Dodd

ABSTRACT:
The study examines Rural and Urban differences in consumer decision making in Makana Municipality in the Eastern Cape Province, South Africa. There are factors which impact upon What,When,Where, and Which Brand will purchased by the consumer. The participants in this study will be family units in Grahamstown and the Albany district i.e. (Seven Fountain, Alicedale, Salem) in South Africa. The independent variable for the study is Urban and Rural residence, and the dependent variable is consumer decision making. The measuring instrument will comprise a self-designed questionnaire to measure biographical information, with a questionnaire developed by Spores and Kendall (1986) to measure consumer decision making. This is a 22 item instrument which was used to measure consumer decision making. The scale reliability is (α= 0.87)

KEYWORDS: Rural and Urban differences, Consumer decision making

Definitions of Terms:
Rural: - Land used for commercial farming is classified as rural and also villages in tribal areas are regarded as rural.

The rural development framework (RDF) of 1997 defines rural areas as "sparsely populated areas in which people farm or depend on natural resources, including villages and small towns, that are dispersed through these areas. In addition they include the large settlements in former homelands, created by the apartheid removals, which depend for their survival on migratory labour and remittances" (RDF, 1997)

Urban: - An urban area is generally a very populated area. Most urban areas are considered to be cities within different states and countries. Urban areas have large buildings that are lit up and seen from the skyline.

Consumer Decision Making:- A process by which (1) consumers identify their needs, (2) collect information, (3) evaluate alternatives, and (4) make a purchase decision. These actions are determined by Psychological and economic factors and are influenced by environment factors such as cultures, groups and social values.

1. BACKGROUND TO THE STUDY
In order to deal with the marketing environment and make purchasing decisions, all consumers regardless of age, gender, nationality or religion, engage in a decision-making process. The focus of this process, which forms an integral part of consumer behaviour (Lamb, Hair, & McDaniel 2004: 142) is how consumers spend their available resources (such as time and money) on personal and household products and services so as to satisfy their needs (Schiffman&Kanuk 2000: 7)

The influence of children in family decision-making has been a much too neglected subject of inquiry. Practically all research has centered upon the husband and wife. Family decision-making research was initially directed to spouses, however the role of children in decision-making and negotiation strategies has become an important issue of study (Kaur& Singh, 2006). Children not only enjoy making regular consumption decisions with their parents but they also insist on their parents buying the products they desire (Kaur& Singh, 2006).

Previous researchers have identified that, as children mature from childhood to adolescence, their knowledge of consumer behaviour, values and skills increases. (John, 1999).Caruana and Vassallo (2003) identified that, ever since the early 1990s, marketers have targeted children as they are not only the consumers but they also influence family purchasing patterns.

What prompted researcher in this topic is that people from rural areas differ from people leaving in urban areas...
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