Do Agro-Inputs’ Brands Affect the Buying Decision Process of Farmers: A Comprehensive Study

Over the years many studies and theories have been developed to understand the buying decision process of consumers. Indeed, buying behaviour is an individual and/or household process in the purchase of industrial goods. It refers to the decision process of obtaining and using products/services. The buying decision process involves a set of decisions including the product’s brand, quality of agro-inputs, dealers, time and price (Dodds et al., 1991). The buying behaviour of a consumer explains why, when, how and what product or brand consumers choose. Especially farmers’ buying behavior vis-à-vis purchase of agro-inputs is different from other industrial goods. In a state like Bihar, more than 90 per cent of farmers belong to marginal or small landholding category. This is the reason behind their low purchasing power. In industrial goods, an individual plays a pivotal role in buying decision whereas most of the farmers take advice from their family members and neighbouring farmers. Therefore, the agro-inputs related buying decision process is comparatively complex. Farmers’ buying behaviour is mostly influenced by those agro-inputs which have the potential to increase the productivity at field level in comparison to available alternatives. According to Kool (1994), the farmers’ buying behaviour is considered to have three dimensions - first is Buying Process, which is based on problem-solving. Under certain buying situation where the financial resource is limited, farmers tend to prefer products which can maximize their farm productivity. However, farmers’ buying patterns are also influenced by situational, social and emotional factors. Second is Buying structure. Farming is not an individual effort so the consequence of purchase decision by one is always experienced by the others. A small group of people including family members and fellow farmers influence the decision process. The third is a relationship with suppliers and loyalty to choice alternatives. Farmers’ tend to stick to a particular brand or stay loyal to a brand because of its proven quality over the years. Brand loyalty is customer’s preference to a particular product brand or service over the other. If a farmer is committed to a particular brand of agro-inputs, he is less likely to switch to other similar alternatives (Harbor et al., 2008). Different attributes of a product such as brand, quality and its packaging affect the consumer buying behavior (Shukla et al., 2014). It is required that one product is different from the similar ones and it is also necessary that the marketer succeeds in creating a positive perception among the consumers about the uniqueness of the product/brand (Peter and Donnelly, 2011). The packaging size, product’s trait and quality influence the farmers’ buying decision process (Kole, 2014).  Price of a product also plays an important role in determining its perceived quality in the mind of consumers (Aaker, 1991). Products with a high price tag sometimes tend to influence the consumers about its assured higher quality and may influence the purchase decision but in contrary, due to higher price of agro-inputs farmers may leave the idea of buying a particular brand (Peter and Donnelly, 2011). According to (Lantos, 2011) a classy image or satisfaction of being superior is also associated with a great purchase amount while a bearable price may predicate a common man image.
 
Persuading the target market through different marketing tools like advertising, public relations, sales promotion and personal selling about the competitive benefits of the product over the others also helps in influencing their purchase decisions (Lamb et al., 2012). To influence the farmers’ purchasing behaviour a good promotion strategy is of utmost importance. A good image of a company greatly influences the consumers to buy its products. Companies dealing with Agro input use promotion stimuli by increasing their visibility such as participating in agriculture-based shows and fairs to gain farmers’ attention. As promotional tools, fertilizer companies mostly offer special discounts or free technical services to attract the farming community (Gitman and McDaniel, 2009). Advertising is the most commonly used promotional function. It is the paid form of communication about a particular brand or product or service sent out by any business or source. Among its various forms such as television advertising, radio advertising, online advertising, outdoor advertising and social media advertising, fertilizer companies use radio advertising however outdoor forms of advertising like billboards and signs are also commonly used to reach the target customers (Green, 2008). Under this study, we tried to explore how the brand value and other product attributes along with communication channels affect the buying decision process of farmers concerning agro-inputs including pesticides, seeds and fertilizers.

This study explored specifically influence of two parameters including product attributes and communication channel in the buying process of agro-inputs like pesticides, seeds and fertilizers. There are many studies found in the literature in which the determinants of buying behaviour are reported many of them are related to the price of a product and its affect on purchase decision (Dodds et al., 1991). Indeed, there are few studies which say product brands and the quality of a product affect the buying decision process significantly.
 
The buying decision process for pesticides 
 
It was clearly found in Table 1 during the purchase of pesticides majority of farmers 63.75 per cent perceived pesticide effectiveness is extremely important whereas many 57.50 per cent respondents reported price as second extremely important factor. 48.75 per cent of farmers opined that brand is third extremely important parameter which affects the buying decision process during the purchase of pesticides. Interestingly, less number of farmers found that product attributes like the size of the packaging, ease of application, effects on the human body, packaging material and colour of a product are extremely important, 21.25 per cent, 6.25 per cent, 8.75 per cent and 13.75 per cent respondents, respectively.
 

 
In Table 1 it was found that the majority of farmers 68.75 per cent reported that their buying decision process of buying pesticides is affected by the fellow farmers. Agro-input dealers are other important agents which affect pesticide buying decision process of farmers and very large majority of farmers 57.50 per cent and 65.00 per cent have reported the influence of salesperson and scientists is not important during pesticide purchase.
 
The buying process of seeds
 
Table 2 indicates the majority of the farmers 70 per cent reported that brand is an extremely important factor which determines the buying decision process of seeds. Another important parameter is high productivity which 63.75 per cent farmers stated as extremely important during the buying decision process. 42.50 respondents said that available varieties of a crop are also extremely important during the purchase of seeds. Interestingly, most of the studies reported price as an important parameter during the purchase of agro-input but here 48.75 per cent of farmers reported price is not an important parameter. They can spend any amount of money for purchasing quality seeds. Other parameters like Germination percentage, disease resistance, size of packing and packaging material and colour are found less important which affect buying decision process of seeds.
 

 
Similar as the buying process of pesticides, the majority of respondents (70 per cent) reported that the role of fellow farmers is extremely important. Talking about Agro-Input dealers, 37.50 per cent of respondents noted their role as extremely important. Influence of salesperson in the purchase process is extremely important as reported by 13.75 per cent and 43.75 per cent farmers respectively. Majority of farmers 88.75 per cent perceived role of scientists is not as important.
 
The buying process of chemical fertilizers
 
Table 3 clearly shows that brand is the most dominating factor which affects the buying decision of farmers as 42.50 per cent of respondents perceived the brand as extremely important. Interestingly, 40 per cent of the respondents marked price as an extremely important factor in purchasing chemical fertilizers. High productivity marked as a third important parameter where 35 per cent of farmers considered it as extremely important. Majority of the farmers 72.50 per cent perceived packaging material and the colour as not to be important. Similarly, the majority of farmers 56.25 per cent opined that the size of packing is not important. 
 

 
Interestingly, Table 3 indicates that agro-input dealers are having a maximum influence on buying decisions. Majority of farmers 55 per cent reported that the influence of fellow farmers on buying decision of fertilizer is not important. Similarly, salespersons and scientists are also not reported to have much influence on the same.
 
Factors affecting the buying decision of farmers also differ from commodity to commodity, like in pesticides the effectiveness is considered as a prime factor which affects buying decision process of farmers whereas, the brand is an important factor in purchasing of seeds and fertilizers. In a similar context, McEwen (2005) also reported that the brand of the product greatly influences the purchase decision of the farmers while buying fertilizers. Due to brand loyalty repurchase occurs and trusted brand is likely to be recommended to others. Kole (2014) in his study found that farmers generally don’t prefer to try new brands of fertilizers. His study further showed that the farmers maintain brand loyalty especially while buying fertilizers. According to Homburg et al., (2009) consumers tend to buy a product mainly based on its brand value. He further adds that image associated with a particular brand is what gives it a competitive edge in the market and consumers also stay loyal to the specific brand. Hawkins et al., (2010) have also found that consumers generally don’t compare every feature of two brands, their overall perception about the brand and especially their emotional connection with a particular brand influences their purchase decision.
 
In our findings we found that low price is not always the major determinant of the purchase decision, interestingly brand, quality of the product and high productivity came out to be the prime important factors. In the same line, Peter and Donnelly (2011) and Aaker (1991) also reported that the product of high price creates a perception of high quality. Lantos (2011) stated that the low price of the product connotes the feeling of inferiority. So, from this study, it is quite evident that farmers are willing to pay even high price if they are assured of getting the best quality inputs to increase their farm productivity. Sharma et al., (2009) reported that there are two factors economic price and brand image which influence the product purchase decision. In this study, we found that fellow farmers followed by agro-input dealers are having a great influence on buying decision of seeds and pesticides. In comparison to the purchase decision of seeds and pesticides, buying decision of fertilizers is less affected by the fellow farmers and input dealers because there are few already established brands in the market which are well proven in terms of quality by the farming community. Du Plessis et al., (2007) reported that the reference group also influences the purchase decision of consumers. Any group which helps individuals set standard for themselves and acting as a source of goals and personal values is called a reference group. Kole (2014) further adds that a group of people act as a source of reference in terms of shaping beliefs, behaviour and attitude, with the influence of reference group consumers start comparing and evaluating their attitudes towards a particular brand and reference group creates the base for their purchase decisions. Kotler and Armstrong (2012) explain that people within the reference group are more informed and they have more access to mass media as compared to those who get influenced by them. In relation to this study Chisnall (1995) also reported that group of fellow farmers, agricultural organisation, farmer association promoting the use of particular fertilizer or seeds also influence the purchase decision of the farmers. Funk (1980) stated that input dealers are the main source of information for the purchase of pesticides and they influence the purchase decision of farmers. Awareness of customers related to a brand is influenced by printed or electronic advertisements however family members and friends have stronger influence on farmers’ purchase decision Sekhar and Rao (2013).