Diaspora affluence in rural markets: consumers’ shift from traditional to global products

Abstract

Purpose

The purpose of this paper is to focus on two main aspects: the extent of shift in consumer demand from traditional to global products and the factors that influence this change in consumption behavior. The growing size of the Diaspora and corresponding increase in disposable income form one reason for examining shifts in buying behavior of rural consumers in Kerala. Most of the studies describe a shift in consumption styles, but have not yet explored the extent to which this shift is being influenced by Diaspora culture and, if so, why? Focusing on the extent of the shift in Kerala consumers’ choice from traditional to global products, this paper aims to fill the gaps in past reviews.

Design/methodology/approach

Six villages were randomly selected from three districts ranking top in foreign remittances. Applying a 50-50 combination of Diaspora and non-Diaspora consumers, 300 respondents were included in the survey.

Findings

Two hypotheses were formulated to test salient shifts in consumers’ choice and revealed a significant influence of the Diaspora community in the shift from traditional to global products. An equal number of non-Diaspora consumers preferred traditional products, but the purchase volume of Diaspora consumers and sales of global products by small rural shops reveal the influence of Diaspora affluence. The findings illustrate emerging changes in rural consumers’ choice.

Originality/value

Kerala rural markets and Keralites’ consumption choices are an apt example on which to base research. This paper focuses on two main aspects: the extent of the shift in consumer demand from traditional to global products and the factors that influence this change in consumption behavior. The findings would support global distributors in designing a business platform to penetrate rural markets.

Citation

Vadakepat, V.M. (2015), "Diaspora affluence in rural markets: consumers’ shift from traditional to global products", International Journal of Commerce and Management, Vol. 25 No. 4, pp. 641-653. https://doi.org/10.1108/IJCoMA-06-2013-0059