Consumer Behaviour towards FMCG Products: A Study with Special Reference to Rajapalayam
Dr. M. Rifaya Meera1*, R. Mahalakshmi2, R. Padmaja2
1Assistant Professor, Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi – 626 124, Tamil Nadu, India.
2Research Scholar, Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi – 626 124, Tamil Nadu, India.
ABSTRACT:
The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD 30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural and semi-urban India by 2010. Indian consumer goods market is expected to reach $400 billion by 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. The growing incline of rural and semi-urban folks for FMCG products will be mainly responsible for the growth in this sector, as manufacturers will have to deepen their concentration for higher sales volumes. Moreover, FMCG products are that sold quickly are relatively low cost. Fast Moving Consumer Goods have a short shelf life. Hence the researcher has made an attempt to study the consumer behaviour towards FMCG in the market of Rajapalayam Town only.
KEY WORDS: FMCG, Rajapalayam, Indian consumer goods market, Rural and Urban areas, Market strategies.
INTRODUCTION:
Fast Moving consumer goods are those goods that are consumed every day by the average consumer and are replaced or fully used up over a short period of days, weeks, or months, and within one year. The Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), is products that have a quick turnover and relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Fast moving consumer goods have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly.
Some Fast moving consumer goods – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates. Fast moving consumer goods are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase. The margin of profit on every individual Fast moving consumer goods product is less. However the huge number of goods sold is what makes the difference. Hence profit in Fast moving consumer goods always translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other nondurables such as glassware, bulbs, batteries, paper products and plastic goods.
FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. Three of the largest and best known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter and Gamble. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe Toiletries, Beauty Products, Home Cosmetics, Packaged Food, Soft Drinks Household accessories are some of the best known examples of Fast Moving Consumer Goods A subset of FMCGs are Fast Moving Consumer Electronics which contain innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems, cell phones and Laptops which are replaced more frequently than other electronic products mainly due to technology changes. White goods in FMCG refer to large household electronic items such as refrigerators. Smaller items, TV sets, stereo systems etc. are sometimes termed Brown goods. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental - as opposed to luxurious - needs. Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco Company), and Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury India, Britannia Industries, Procter and Gamble Hygiene and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi and others. As per the analysis by ASSOCHAM, Companies Hindustan Unilever Ltd, Dabur India originates half of their sales from rural India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively, however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from rural India. A rapid urbanization, increase in demands, presence of large number of young population, a large number of opportunities is available in the FMCG sector. The Finance Minister has proposed to introduce an integrated Goods and Service Tax by April 2010.This is an exceptionally good move because the growth of consumption, production, and employment is directly proportionate to reduction in indirect taxes which constitute no less than 35% of the total cost of consumer products - the highest in Asia. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity.
REVIEW OF LITERATURE:
Ankit Katiyar, and Nikha Katiyar, (2014) “An Empirical Study of Indian Consumer Buying Behavior of FMCG Products (With Special Reference of Bathing Soap)”, bathing soap are fast moving consumer goods that have seen a surge in their sales in the past few decades in India more and more people are opening up to the idea of experimenting and trying out newer bath soap. This study is attempt to cover the various factors that influence the buying decision of consumers who plan to purchase and or used bath soap. FMCG sector is the fourth largest sector in India touching everybody life’s in every day. The FMCG goods sector is vital contributor to India’s gross domestic products. Chitra. R (2014) “An empirical study on Customers Purchase Intention towards Branded Apparels”, this paper aims to study factors affecting customers‟ purchase intention towards branded apparel. Purchase intention is explained in terms of general consumer variables (normative influence, consumer confidence) and brand specific variables (perceived quality, emotional value). Nasrudeen .R and Mohamed, (2014) “Level of Consumption of Fast Moving Consumer Goods by Rural Consumers – An Analytical Study”, ever since independence of India, because of some obvious reasons, marketing acquired a largely urban bias. It was the green revolution in the seventies which provided a much-needed boost to agriculture-based rural economy in the country. Subsequently, many firms started showing interest in the rural markets and extend their penetration to reach smaller village and towns. Further, now-a-days rural consumers are behaving like urban consumers towards the urban lifestyle, fashion, taste, preferences, etc. Rajasekaran, B and Saravanan, P. A. (2014) highlighted, “Consumer Satisfaction on Fast Moving Consumer Goods”. The study throws on the attitudes, values, beliefs and perception of the consumers with regards to the consumption of fast moving consumer goods. To study the brand preference of fast moving consumer goods, the preference and opinion of consumer towards popular brands have been taken into consideration. Shanmugapriya .G and Sethuraman .R, (2014) “Consumers Satisfaction towards Hamam Soap in Thanjavur Town”, the marketing scenario in India has undergone vast change since 1991 due to the economic reforms. Post-liberalization, competition intensified in every product line and market, which forced brands to redefine their norms of existence in all industries. In the FMCG industry, especially in toilet soap sector there has been severe competition among the MNCs, national and local players. Brand loyalty is determined by several distinct psychological processes of the consumers and entails multivariate measurements. Sonia and Garima Dalal, (2014) “To Study the Satisfaction Level of Customers towards the Brand of Consumer’s Goods - A Study Carried out on Rural Masses”, The Indian Fast Moving Consumer Goods (FMCG) industry began to shape during the last fifty odd years. The FMCG sector is a corner stone of the Indian economy. This sector touches every aspect of human life. Indian FMCG market has been divided for a long time between the organized sector and the unorganized sector.
Muthuvelayutham (2012) in his study titled “The Study of Consumer Brand Loyalty on FMCG- Cosmetic Products with Special Reference to Madurai” analyzes the relationship between demographic variables on the brand loyalty of the consumers and tries to identify the consumer’s switching factors in respected selected product category. This study is essentially a correlation study. A randomly selected sample of 600 from Tamil Nadu State, South India, particularly Madurai, Tuticorin, Kanyakumari districts were selected to analyze. To indicate the amount of correlation between the variables, Chi-square test was used in this study. Results show that among the variables age, education level and gender have the most significant impact on consumer’s brand loyalty. Chandrasekhar (2012) in his study “Consumer Buying Behaviour and Brand Loyalty in Rural Markets: FMCG”, aims to study brand loyalty of various brands in rural markets and identify the presence and the importance of local brands. The primary data was collected through a questionnaire. This study was conducted on a sample of 60 respondents in the village’s satanapalli, tadipattri and mallapur. Suresh Bhagwat (2011) in his e article “FMCG Markets to contribute in Indian rural Economy perspective in global era” This study focuses their efforts on empowering the rural consumer with the latest trends and technology and teaches them ways to improve their standard of living. Gihan Wijesundera (2010) in this article “Factors influencing the demand of beauty soap among female consumers in the greater Colombo region” Purpose of this study is to explore how the marketing mix and demographical factors influence the brand preference and purchasing behavior of beauty soap among the female consumers in the greater Colombo region. The results indicated that there were statistical relationships between price, product, education, occupation and band preference and there was no statistical relationship between place, promotion, age, income level, marital status, skin type, social factors, and substitute product with the brand preference. Thus the research concludes that the price, product, education and occupation are only having a statistical relationship with the brand preference of female consumers in the greater Colombo region. Nuntasaree Sukat (2009) in this article “A model of male consumer behaviour in buying skin care products in Thailand” The study purpose of the research was evaluated in some depth the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzen’s theory of reasoned action model is employed as a theoretical framework and modified by adding the self-image construct. The research objective was find out the “To what extent do beliefs in product attribute, self-image, Normative influences, and attitudes toward applying skin care products, affect Thai male consumers’ purchase intention and purchase behaviour in buying skin care products. The researcher was find out the result or confirm that beliefs, self-image, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers. The modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting.
STATEMENT OF THE PROBLEM:
Fast Moving Goods sector touches every aspect of human life. This is the biggest potential market in the entire world, which increases income level of the market, is going to expand in near future. There are various brand of FMCG available in the market. So the consumer is not able to identify which one is good. They are finding it difficult to select a particular brand. While at the same time, they are not ready to change their behavior and also brand preference of FMCG. The exact logic for the purchase of a particular brand of FMCG is highly an uncertain factor. The users of the FMCG know the product feature and other. Certain Consumer is ready to accept any brand while certain others are insisting on a particular brand of FMCG. These kinds of Consumers with brand loyalty are ready to wait for their brand, if it is not available in the market. This present a wonderful opportunity for makers of branded products who can convent consumers to buy branded products. Hence the researcher has made an attempt to study the consumer behaviour towards FMCG in the market.
OBJECTIVES OF THE STUDY:
The following are major objectives of the research study:
Ř To Study the buyer behavior towards FMCG brand in the study area.
Ř To ascertain the factors, which influence the consumers to purchase a FMCG product?
Ř To offer suitable suggestions based on the findings of the study.
HYPOTHESES:
A hypothesis refers to a proposed explanation for a phenomenon. It is declarative statement combining concepts. In order to achieve the objective of the study the researcher has formulated the following hypotheses.
§ There is no relationship between the gender of the respondents and Factors influence to purchase of the respondents.
§ There is no relationship between the age of the respondents and Factors influence to purchase of the respondents.
§ There is no relationship between the educational status of the respondents and Factors influence to purchase of the respondents.
§ There is no relationship between the age of the respondents and purchase decision of the respondents.
§ There is no relationship between the gender of the respondents and purchase decision of the respondents.
METHODOLOGY:
The researcher has used both primary data and secondary data for the study.
Primary data:
The primary data has been directly collected by Questionnaire.
Secondary data:
The secondary data for this study has been collected from various publications, Journals, Magazines and Books.
SAMPLING DESIGN:
The researcher is interested to study the consumer attitude towards FMCG products in Rajapalayam. Since the consumers are large number, in the study area, the researcher has selected 80 customers used Convenience Sampling Method.
ANALYSIS AND INTERPRETATION OF THE STUDY:
The buying behaviour of the consumers is influenced by several factor, such as socio – economic conditions, cultural environment, literacy level, occupation, geographical location, effort on the part of sellers, exposure to the media, etc., The researcher analyses the age, gender, marital status, education, occupation and Monthly income of the consumer. The results are presented in the Following pages:
Age Wise Classification of Respondents:
The researcher gathered the information about age wise classification of the respondents is presented in the table 1.
Table 1 Age Wise Classification of Respondents
Age |
No. of Respondents |
Percentage |
Below 20 |
10 |
12.50 |
21-30 |
40 |
50.00 |
31-40 |
17 |
21.25 |
above 40 |
13 |
16.25 |
Total |
80 |
100.00 |
Source: Primary Data
It is Obvious from the table 1, among 80 respondents, 10 (12.5%) respondents fall within the age group of below 20 years, 40 (50%) respondents are in the age group of 21 to 30 years, 17 (21.25%) respondents are in the age group of 31 to 40 years, and 13 (16.25%) respondents are in the age group of above 40 years.
It is inferred that most of the respondents (50%) are in the age group of 21 to 30 years.
Gender Wise Classification of the Respondents:
The gender wise classification of the respondents is given in the following table 2.
Table 2 Gender Wise Classification of the Respondents
Gender |
No. of. Respondents |
Percentage |
Male |
34 |
42.50 |
Female |
46 |
57.50 |
Total |
80 |
100.00 |
Source: Primary Data
The Gender Wise Classification of Respondents represents that out of 80 respondents, 34 (42.5%) respondents are male and 46 (57.5%) respondents are female. It is inferred that majority of the respondents are female.
Marital Status of the Respondents:
The researcher also enquires the marital status of the respondents; It is presented in the following table 3.
Table 3 Marital Status of the Respondents
Marital Status |
No. of respondents |
Percentage |
Unmarried |
45 |
56.25 |
Married |
35 |
43.75 |
Total |
80 |
100.00 |
Source: Primary Data:
The table 3 shows that out of 80 respondents, 35 (43.75%) respondents are married and the remaining 45 (56.25%) are unmarried. It is clear that majority of the respondents are unmarried.
Educational Status of the Respondents:
The Following Table 4 displays that Educational Status of the Respondents.
Table 4 Educational Status of the Respondents
Educational level |
No. of respondents |
Percentage |
School level |
13 |
16.25 |
Graduation |
28 |
35.00 |
Post Graduation |
21 |
26.25 |
Diploma |
11 |
13.75 |
Professional |
7 |
8.75 |
Total |
80 |
100.0 |
Source: Primary Data
The above Table 4 reveals that out of 80 respondents, 13 (16.25%) respondents have their educational status up to school level, 28 (35%) respondents are under graduates, 21 (26.25%) respondents are post graduates, 11 (13.75%) respondents are diploma holders and the remaining 7 (8.75%) respondents are professionals. Hence, it is clear that most of the respondents are up to the under graduation.
Occupational Pattern of the Respondents:
Further the investigator is interested in identifying the nature of occupation of the respondents. The details are listed in Table 5.
Table 5 Occupational Pattern of the Respondents
Occupation |
No. of. respondents |
Percentage |
Government Employee |
12 |
15.00 |
Private Employee |
9 |
11.25 |
Business |
13 |
16.25 |
Home Maker |
11 |
13.75 |
Student |
35 |
43.75 |
Total |
80 |
100.00 |
Source: Primary Data
It is clear from the above table 5 that 12 Percent of the respondents are Government Employee, 11.25 percent of the respondents are private employee, 16.25 percent of the respondents are businessmen, 13.75 percent of the respondents are Home maker, and 43.75 percent of the respondents are students. It is clear that most of the samples are students.
Monthly Income of the Family:
Finance is an important factor in making decisions. The purchase decision depends upon their income level of the respondents. Therefore the researcher has analysed the Monthly income of the respondents in the study area. The details are given in the table 6.
Table 6 Monthly Income of Family
Income level |
No. of Respondents |
Percentage |
Below - Rs. 5000 |
19 |
23.75 |
Rs. 5001 - 10000 |
24 |
30.00 |
Rs. 10001 - 20000 |
23 |
28.75 |
Above - Rs. 20000 |
14 |
17.50 |
Total |
80 |
100.00 |
Source: Primary Data
Table 6 exhibits that out of 80 respondents, 23.75 percent of them have the income less than Rs.5000 per month, another 30 percent of the respondents have the income between Rs. 5001 and Rs.10001, and 28.75 percent of the respondents have the income range between Rs.10001 and Rs.20000 and the remaining 17.5 percent of the respondents belongs to the range of more than Rs.20000. It is inferred that most of the respondents have the income level of Rs.5001 and Rs.10000.
OPINION ABOUT PURCHASE DECISION
Consumers are faced a lot of problem with purchase decision every day. The researcher analysed the purchase decision in the following ways:
Factors Influencing Purchase Decision
The following Table shows the factors influencing the respondents in taking the purchase decision.
Table 7 Factors Influencing Purchase Decision
Purchase decision |
No. of respondents |
Percentage |
Self |
36 |
45.00 |
Friend |
13 |
16.25 |
Family member |
20 |
25.00 |
Adverting |
11 |
13.75 |
Total |
80 |
100.00 |
Source: Primary Data
From the Table 7, it is understood that out of 80 respondents, 45 percent of the respondents said that the purchase decision is taken by self, 16.25 percent of the respondents said that friends helped taking in purchase decision and 25 percent of the said that the family member, 13.75 percent of the respondents said that advertisement helped in purchase decision. It is inferred that most of the respondents said that they are taken purchase decision
Expectations of Respondents:
The researcher analysed the expectation of respondents of the facilities. The details are presented in the following table 8.
Table 8 Expectations of Respondents
Facility |
No. of. Respondents |
Percentage |
Availability Brand |
21 |
26.25 |
New arrival |
20 |
25.00 |
Reasonable price |
28 |
35.00 |
Neat Display |
11 |
13.75 |
Total |
80 |
100.00 |
Source: Primary Data
The above table 8 reveals that 21(26.25%) respondents expect the availability of all brand in the shop, 20(25%) respondents expect the new arrival should be in the shop 28(35%) respondents are expect the price of product should be reasonable, 11(13.75%) respondents expect the net display of the product.
It is known from the above table that majority of the respondents are expecting the price of the product is reasonable.
Sources of information influenced to purchase:
A manufacturer communicates the product information through different media. The researcher analysed which media influenced them to purchase. They are presented in the following table 9.
Table 9 Sources of information influenced to purchase
Factor |
No. of. Respondents |
Percentage |
T.V |
31 |
38.75 |
News |
18 |
22.50 |
Radio |
10 |
12.50 |
Friends |
15 |
18.75 |
Online |
6 |
7.50 |
Total |
80 |
100.00 |
Source: Primary Data
The Table 9 clearly explains that, out of 80 respondents, 38.75 percent of the respondents are influenced by T.V, 22.5 of the respondents are influenced by newspaper, 12.5 of the respondents are influenced by Radio, 18.75percent of the respondents are influenced by Friends, and 7.5 percent of the respondents are influenced by Online. Table 9 fined that most of the respondents are influenced by T.V.
Mode of the Purchase:
The following Table 10 gathered the details about the purchasing place of the respondents. The collected data are given below:
Table 10 Mode of the Purchase
Place of Purchase |
No. of. Respondents |
Percentage |
Retail shop |
25 |
31.25 |
Super Market |
30 |
37.50 |
Co-operative society |
14 |
17.50 |
Online-purchasing |
11 |
13.75 |
Total |
80 |
100.00 |
Source: Primary Data
It is clear from the table 10 place of purchase FMCG Product, that out of 80 respondents, 31.25 percent of the respondents prefer the Retail shop, 37.5 percent of the respondents are prefer Super Market, 17.5 percent of the respondents prefer co-operative socity,13.75 percent of the respondents are like Online purchasing. In that table 10, majority of the respondents are like supermarket.
OPINION ABOUT BRAND DECISION:
The researcher analysed the opinion of the respondents regarding with brand decision.
Consumer Preferred of FMCG Products:
The study the identified the favorite brand of the respondents. They are presented in the following Table 11.
Table 11 Consumer Preferred of FMCG Products
Favourite Brand |
No. of Respondents |
Percentage |
Kit Kat |
17 |
21.25 |
Nescafe coffee |
24 |
30.00 |
Milk bar |
10 |
12.50 |
Nestea |
15 |
18.75 |
Milk maid |
14 |
17.50 |
Total |
80 |
100.00 |
Source: Primary Data
Table 11 represents that out of 80 respondents, 17(21.25%) respondents choose that Kit Kat is a favorite brand in the study area, 24(30%) respondents choose that Nescafe coffee is their favourite brand, 10 (12.5%) respondents choose that favourite brand, 15(18.75%) respondents choose that Nestea is a favorite brand, 14 (17.5%) respondents choose that favorite brand. In that table majority of the respondents are choosing that Nescafe coffee is a favourite brand.
Decision at the time of Non – availability of brand:
The researcher has analysed that the customer attitude towards availability brand is available or not available in the market. It is given in the following Table 12.
Table 12 Decision at the time of Non – availability of brand
Decision of Consumer |
No. of Respondents |
Percentage |
Wait for their brand |
22 |
27.50 |
Go for alter Brand |
30 |
37.50 |
Go for alter shop |
28 |
35.00 |
Total |
80 |
100.00 |
Source: Primary Data
Table 12 reveals that out of 80 respondents, 22 respondents has waited for their favourite brand if the brand is not available in the market, 30 respondents has go for alter brand that if the brand is not available in the market. 28 respondents has go for alter shop that if the favourite brand is not available in the market. It is inferred that most of the respondents (37.5) are go for the alter brand is not available in the market.
Recommendation of Brand to Other:
The researcher has enquired the interviewees whether they recommend their brand of FMCG to other. The collected information is brought out in the Table 13.
Table 13 Recommendation of Brand to Other
Habit |
No. of Respondents |
Percentage |
Recommend |
60 |
75.00 |
Not Recommend |
20 |
25.00 |
Total |
80 |
100.00 |
Source: Primary Data
It is apparent from the table 13 that out of 80 respondents, 60 (75%) respondents have recommended their brand to other and 20 (25%) respondents are not recommended their brand to others. It is clear that most respondent are recommended their own brand to others.
Expecting Modification:
The consumers are expecting some other modification in FMCG product. The details comes under the table 14
Table 14 Expecting Modification
Expecting modification |
No. of Respondents |
Percentage |
Quality |
27 |
33.75 |
Price |
13 |
16.25 |
Taste |
28 |
35.00 |
Package |
12 |
15.00 |
Total |
80 |
100.00 |
Source: Primary Data
It is represented from the table 14 that out of 80 respondents, 33.75 percent respondents are expecting the modification regarding with quality of the Brand, 16.25 percent respondents are expecting the modification is regarding with price Brand, 35 percent of the respondents are expecting modification regarding with Taste of the Brand, and remaining 15 percent of respondents are expecting modification recording with package of the Brand. It is inferred that majority of the respondents are expecting the modification recording with Taste of the Brand.
Opinion About Quality Decision:
ISO standard defines quality as the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs. Therefore quality is important one in studying consumer behaviour and attitude. Here the researcher also analyses the attitude of consumers about quality.
Opinion of Customer Towards the Quality:
The quality is important, the researcher has analysed attitude of consumer, towards the quality if the FMCG product is Quality one or not the details are given in the following Table 15.
Table 15 Opinion of Customer towards the quality
Consumer Opinion |
No. of Respondents |
Percentage |
Quality one |
61 |
76.25 |
Not Quality one |
19 |
23.75 |
Total |
80 |
100.00 |
Source: Primary Data
It is revealed from the table 15 that out of 80 respondents, 61(76.25%) respondents felt decide the FMCG product having is Quality one, 19(23.75%) of respondents felt decide the FMCG Product is having Not Quality. It clear that Most of the respondents felt decide the FMCG Product is Quality one.
Mode of Identification about Quality:
The researcher has future analysed customer’s attitude towards the identification of quality. They are in the table 16.
Table 16 Mode of Identification of Quality
Identification |
No. of Respondents |
Percentage |
Brand name |
36 |
45.00 |
Date |
17 |
21.25 |
Package |
10 |
12.50 |
By Experience |
17 |
21.25 |
Total |
80 |
100.00 |
Source: Primary Data
Table 16 Depicts that among 80 respondents, 36(45%) respondents are identifying the quality by brand name, 17(21.2%) of respondents are identifying the quality of the product, 10(12.5%) respondents by package and 17 (21.2%) of respondents are identifying the quality of FMCG product by Experience. It is understood that Most of respondents are identifying the quality by brand name.
Mode of Complaints:
The researcher further analysed the mode of complaints. The results are presented in the following table 17.
Table 17 Mode of Complaints
To Whom |
No. of Respondents |
Percentage |
Shop Keeper |
53 |
66.25 |
Dealer |
24 |
30.00 |
Producer |
3 |
3.75 |
Total |
80 |
100.00 |
Source: Primary Data
From the table 17 discloses that 66.2 per cent of the respondents has made complains to the shop Keeper, 30 percent of the respondents has made complaints to dealers and remaining 3.8 percent of the respondents has made complaints to producers. It is inferred that Most of respondents (66.2%) have made complaints to Shop Keeper.
Opinon about Packaging Decision:
Packaging is an important part of marketing a product. It catches the customers’ attention. It also provides information about the product to the customer on the other hand it protects the products. The study analysed the customer attitude towards packaging.
Preference of Pack:
The researcher analysed the preference of pack. The results are presented in the table 18.
Table 18 Preference of Pack
Pack |
No. of Respondents |
Percentage |
Home pack |
47 |
58.75 |
Sachet |
33 |
41.25 |
Total |
80 |
100.00 |
Source: Primary Data
Table 18 shows that among 80 respondents, 58.75 percent of the respondents liked home pack, and remaining 41.25 percent of the respondents liked sachet pack. It is clear 58.8 percent respondents prefer the home pack, and 41.25 percent respondents prefer the sachet.
Reasons for Preferring Home Pack:
The researcher further analysed the reason for preferring home pack. The details are presentation in the table 19.
Table 19 Reasons for Preferring Home Pack
Reason |
No. of Respondents |
Percentage |
Quality |
16 |
34.04 |
Economical |
10 |
21.28 |
Long use |
8 |
17.02 |
Convenient |
13 |
27.66 |
Total |
47 |
100.00 |
Source: Primary Data
Table 19 shows that among 47 respondents, 34.04 per cent of the respondents prefer the home pack for the reason ‘quality’, 21.28 per cent of the respondents prefer the home pack due to the reason of Economic one, 17.02 per cent of the respondents are preferred the home pack due to their Long use, 27.66 per cent of the respondents prefer the home pack due to their Convenient use. It clear that majority of the respondents are preferred the home pack for the reason of quality.
Reason for Preferring Sachet:
The researcher has studied the reasons for preferring the sachet. The results are given in the table 20.
Table 20 Reason for Preferring Sachet
Reason |
No. of Respondents |
Percentage |
Get fresh Product |
14 |
42.42 |
Less price |
7 |
21.21 |
Easy handle |
12 |
36.37 |
Total |
33 |
100.00 |
Source: Primary Data
It is understood that among 33 respondents, 14 (42.4%) respondents prefer sachet for getting fresh product every time, 7 (21%) respondents prefer sachet for less price, and remaining 12 (36.6 %) of the respondents prefer that sachet to Easy handle. It is contingent that most of the respondents prefer sachet for its get fresh product.
Opinion about Advertising and its Influence:
Information shown in the advertisement of FMCG product is moderately reliable. Television is the fastest and more convincing mode of communication in advertising world. Price and quality are the major factors considered while purchasing FMCG products rather than mere influence of advertising.
Influence of Advertisement:
In business world, advertising is considered not only inevitable but also essential. The researcher analysed the customer whom influenced by these are presented in the table 21.
Table 21 Influence of Advertisement
Influenced |
No. of Respondents |
Percentage |
Influenced |
42 |
52.50 |
Not Influenced |
38 |
47.50 |
Total |
80 |
100.00 |
Source: Primary Data
From the following table 21, among 80 respondents, 42 (52.2%) of respondent are Influenced by adverting, and remaining 38(47.5%) of the respondents are Not Influenced by the advertisement. Table 21 inferred that Most of the respondents are influenced by the advertising.
Degree of Communication:
Further the researcher has analysed the level of communication nature of advertisement, the details are shown in the table 22.
Table 22 Degree of Communication
Degree |
No. of Respondents |
Percentage |
Very Good |
19 |
23.75 |
Good |
35 |
43.75 |
Moderate |
14 |
17.50 |
Very Bad |
12 |
15.00 |
Total |
80 |
100.00 |
Source: Primary Data
The table 22 analysed that out of 80 respondents, 19 respondents are chose Very Good, 35 respondents are chose Good, 14 respondents are chose Moderate, 12 respondents are chose very Bad. The clear reference to analysed the table maximum respondents are chose good.
Opinion about Media:
The media is the vital role in the process of advertising communication. The following table 23 displays that Opinion about media of the Respondents.
Table 23 Opinion about Media
Media |
No. of Respondents |
Percentage |
Television |
33 |
41.25 |
Radio |
13 |
16.25 |
Film Advertisement |
20 |
25.00 |
News paper |
14 |
17.50 |
Total |
80 |
100.00 |
Source: Primary Data
From the following table 23, it reveals that out of 80 respondents, 33 respondents are influencing as Television 13 respondents are influenced by Radio, 20 respondents are influenced by Film Advertisement, and remaining 14 respondents are influenced by News paper. It is understood that majority of the respondents 33 (41.25%) are Influenced the media for Television.
Application of Chi-Square Test:
Chi-square test is applied to know the influences of socio-economic condition of respondents on the factors of Gender and the Factor influence to purchase the following formula has been used.
H 1:
There is no relationship between the Gender of the respondents and Factors influence to purchase of the respondents.
Table 24 Gender and Sources of information influenced to purchase Chi-Square Tests - Result
|
Value |
Df |
Asymp. Sig. (2-sided) |
Pearson Chi-Square |
9.718a |
4 |
.045 |
Likelihood Ratio |
10.303 |
4 |
.036 |
Linear-by-Linear Association |
.846 |
1 |
.358 |
N of Valid Cases |
80 |
|
|
Source: SPSS Result
The significance value of chi – square test 0.045 is less than the 0.05. Hence, the Hypothesis is Not Accepted. Therefore it is concluded that there is a relationship between the Gender and Sources of information influenced to purchase.
H2:
There is no relationship between the age of the respondents and Factors influence to purchase of the respondents.
Table 25 Age and Sources of information influenced to purchase Chi-Square Tests - Result
|
Value |
Df |
Asymp. Sig. (2-sided) |
Pearson Chi-Square |
1.834a |
6 |
.934 |
Likelihood Ratio |
1.875 |
6 |
.931 |
Linear-by-Linear Association |
.625 |
1 |
.429 |
N of Valid Cases |
80 |
|
|
Source: SPSS Result
The significance value of chi – square test 0.934 is more than the 0.05. Hence, the Hypothesis is accepted. Hence, it is concluded that there is no relationship between the age of the respondents and Factors influence to purchase of the respondents.
H 3:
There is no relationship between the educational status of the respondents and Factors influence to purchase of the respondents.
Table 26 Educational Status and Sources of information influenced to purchase Chi-Square Tests - Result
|
Value |
Df |
Asymp. Sig. (2-sided) |
Pearson Chi-Square |
15.429a |
18 |
.632 |
Likelihood Ratio |
17.625 |
18 |
.481 |
Linear-by-Linear ssociation |
2.485 |
1 |
.115 |
N of Valid Cases |
80 |
|
|
Source: SPSS Result
The significance value of chi – square test 0.632 is more than the 0.05. Hence, the Hypothesis is accepted. Hence, it is concluded that there is no relationship between the educational status of the respondents and Factors influence to purchase of the respondents.
H 4:
There is no relationship between the age of the respondents and purchase decision of the respondents.
Table 27 Age and Taken of purchase Decision Chi-Square Tests - Result
|
Value |
Df |
Asymp. Sig. (2-sided) |
Pearson Chi-Square |
22.990a |
24 |
.520 |
Likelihood Ratio |
27.027 |
24 |
.303 |
Linear-by-Linear Association |
.027 |
1 |
.868 |
N of Valid Cases |
80 |
|
|
Source: SPSS Result
The significance value of chi – square test 0.520 is more than the 0.05. Hence, the Hypothesis is accepted. Hence, it is concluded that there is no relationship between the age of the respondents and taken of purchase decision of the respondents.
H 5:
There is no relationship between the gender of the respondents and purchase decision of the respondents.
Table 28 Gender and Taken of purchase Decision Chi-Square Tests - Result
|
Value |
Df |
Asymp. Sig. (2-sided) |
Pearson Chi-Square |
24.705a |
6 |
.000 |
Likelihood Ratio |
29.631 |
6 |
.000 |
Linear-by-Linear Association |
14.420 |
1 |
.000 |
N of Valid Cases |
80 |
|
|
Source: SPSS Result
The significance value of chi – square test 0.000 is more than the 0.05. Hence, the Hypothesis is Not Accepted. Hence, it is concluded that there is a relationship between the gender of the respondents and taken of purchase decision of the respondents.
FINDINGS OF THE STUDY:
The finding of the study area is given below.
§ It is inferred that most of the respondents (50%) are in the age group of 21 to 30 years.
§ It is inferred that majority of the respondents are female.
§ It is clear that majority of the respondents are unmarried.
§ Hence, it is clear that most of the respondents are up to the under graduation.
§ It is clear that most of the respondents are students.
§ It is inferred that most of the respondents have the income level of Rs.5001 and Rs.10000.
§ It is inferred that most of the respondents said that they are taken purchase decision
§ It is known from that majority of the respondents are expecting the price of the product is reasonable.
§ It is found that most of the respondents are influenced by T.V.
§ Majority of the respondents are like supermarket.
§ Majority of the respondents are choose that Nescafe coffee is a favourite brand.
§ It is inferred that most of the respondents (37.5) are go for the alter brand is not available in the market.
§ It is clear that most respondent are recommended their own brand to others.
§ It is inferred that majority of the respondents are expecting the modification recording with Taste of the Brand.
§ It clear that Most of the respondents felt decide the FMCG Product is Quality one.
§ It is understood that Most of respondents are identifying the quality by brand name.
§ It is inferred that Most of respondents (66.2%) have made complaints to Shop Keeper.
§ It is clear 58.8 percent respondents prefer the home pack, and 41.25 percent respondents prefer the sachet.
§ It clear that majority of the respondents are preferred the home pack for the reason of quality.
§ It is contingent that most of the respondents prefer sachet for its get fresh product.
§ It is inferred that Most of the respondents are influenced by the advertising.
§ The clear reference to analysed the table maximum respondents are chose good.
§ It is understood that majority of the respondents 33 (41.25%) are Influenced the media for Television.
RECOMMENDATIONS:
The researcher would like to suggest the following points, so the company can easily sell their product to their Consumer.
· Brand can ensure participation from all member of the family thereby increasing brand recall by any one of the members of the family. This is essential as purchase decision often involve all the member of the family.
· Product redesign from the beginning can be done. Marginal changes to existing product will not work effectively. Product must work in hostile conditions in noise, dust and electricity blackouts etc.
· News paper /Magazines advertisement may be increased.
· It is suggested that introduce exclusive show rooms for particular FMCG brand.
· It is right that the profit margin is very low in the FMCG product but at the same time the market size is much large in the area, the Companies can reduce their prices by cutting the cost on the advertisement in radio because the radio hearing people less in the number today.
· It is suggested that the guarantee/warrantee periods for FMCG brand may be revised.
· In the study area most of the respondents has not purchased FMCG brand through online, because of more formalities. Hence, it is suggested that the company should concentrate on user friendly online shopping procedure to their customer.
· In order to increase the sales, more gifts vouchers and offers may be introduced.
CONCLUSION:
Fast Moving Consumer Goods are vital for the people in their day to day life. Their importance is giving the personality oriented benefits to the people. From the above analysis, it is denote that the FMCG Brands are able to provide good services to the satisfaction of the consumer in the way of goods quality, easy availability. More than that, it also observed that the consumer face some problems. It is also concluded that the company may try to implement the above suggestion in the study area.
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Received on 06.12.2016
Modified on 22.01.2017
Accepted on 21.03.2017
© A&V Publications all right reserved
Research J. Humanities and Social Sciences. 8(1): January - March, 2017, 69-80.
DOI: 10.5958/2321-5828.2017.00011.0