Executive Summary Understandingthe Rural Psychehas always been a challenge for marketers. In India where majority of its population resides in rural area, marketers need to pay their attention in understanding their behaviour. Many of researches have been carried out in rural areas. Companies like HUL, ITC, Coca Cola have successfully flourished in rural areas as these were aware of insights of rural India or they were close to their customers. In other words these companies had better understanding of their customers. Mobile Market in urban area has reached saturation according to many telecom players in India. So they are heading towards rural India now. Even some companies like TATA Indicom is already generating huge revenue through value added services provided by them from rural consumer. So time has come, when Mobile phone handset companies need to enter rural markets. For this these companies need to be very clear about their strategies. These should know how rural purchase behaviour is different from the urban purchase behaviour for mobile phones