Given below are two statements:

Statement I : Only low priced products will sell in rural India.

Statement II : Rural consumers are a homogenous lot.

In the light of the above statements, choose the most appropriate answer from the options given below:

The correct answer is Both Statement I and Statement II are incorrect.

Key Points Statement I : Only low priced products will sell in rural India.

This statement is incorrect because the statement assumes that the all people residing in rural India have low per capita income and cannot afford high priced products. This is an unrealistic assumption.

Statement II : Rural consumers are a homogenous lot.

This statement is also incorrect as most firms assume that rural markets are homogenous. It is unwise on the part of these firms to assume that the rural market can be served with the same product, price and promotion combination.