Purchase of branded agricultural inputs: a study of pesticide buying behaviour

Abstract

The pesticide market in India is becoming highly competitive. The number of options available to a farmer for control of a pest could sometimes include over 140 pesticide brands. Farmers decision making on pesticides therefore becomes of considerable interest. Research on the buying behaviour of branded agricultural input (agri-inputs) has been very limited and confined to the developed country contexts. This study attempts to develop an understanding of the buying behaviour of branded agri-inputs under the Indian context using the case of pesticide use for Heliothis on cotton in three districts of Andhra Pradesh. The framework for analysis was developed using the existing studies or industrial and consumer buying behavior. The main features of the framework are: 1. Brand decision process: a) Routine purchases would follow a habitual decision making approach. b) Non routine purchases would be influenced by the buyers’ knowledge about alternative brands. Knowledgeable buyers would use an extended problem solving approach, while others would opt for a subcontracted decision process. 2. Store choice: The following attributes in order of importance, influence the store choice: Perceived quality of the products sold Retailer's known to all Retailer's knowledge about input usage Retailer stocking a full range of products Retailer extending credit Retailer charging lower prices. 3. In store influences: Additional information received at retail outlet (eg., from retailer, company representatives, fellow farmers), point of purchase advertisements, price discounts, extension of credit, and non availability of preferred brand, influence the brand decisions. Data from field survey of actual agri-business consumers has been used in this study. Responses were obtained for three usage contexts (prophylactic application, curative application under low attack and curative application under high attack). As the criteria for sampling varied for (a) the survey on brand decision process; and (b) the survey on store choice and in—store influences, two samples were drawn. The first sample of 260 buyers was used for studying the brand decision process and the second sample of 1&3 buyers was used for studying store choice and in store influences. Data was collected using recall, rating, ranking techniques, and open ended questions. The findings of the study suggest that: 1. Brand decision process for pesticides, regardless of the nature of purchase (routine/ non-routine), follows an attended problem solving approach rather than a subcontracted' or habitual decision process. 2. A sequential elimination process is used for the formation of the consideration set for pesticide purchases. 3. For pesticide purchases, the buyers generally prefer private retail outlets situated at market towns. 4. Quality of the products sold (as assessed by the buyers) forms the most important criteria for choice of outlet. Knowledge of the retailer in pesticide use was not found to be important for store selection. 5. The in-store information is verified with credible information sources or tested in a small area. Non availability of brand in the preferred store or credit facilities does not greatly influence the purchases. The implications of the study for marketers and researchers have been stated.