MINOR RESEARCH PROJECTmeskvmcollege.org/upload/research/f85c2865a11dd017cb9c... · 2018-04-21 ·...

MINOR RESEARCH PROJECT

An Empirical Study of Consumer Buying Behavior and Its Influence on

Consumer Preference in FMCG Market in Malappuram District

Final Report

Submitted To The Joint secretary and Head

South Western Regional Office (SWRO)

University grants commission

P.K. Block, Gandhinagar, Palace Road

Bangalore – 560 009

Submitted by

Principal Investigator :

Nisab.T

Assistant Professor

Department of Commerce

M.E.S. Keveeyam College

Valanchery - Malappuram

Kerala 676552

MES KEVEEYAM College

Affiliated to University of Calicut Reaccredited by NAAC with ‘A’ Grade

College has been ranked 51 in the NIRF of MHRD, Govt. of India

Valanchery -Kerala676552, – India

Ph:0494 – 2644380 Fax:0494 - 2641347 E-Mail:[email protected]

Website:www.meskvmcollege.org

DECLARATION AND CERTIFICATE

I hereby declare and certify that, the Minor Research Project entitled “An

Empirical Study of Consumer Buying Behavior and Its Influence on Consumer

Preference in FMCG Market in Malappuram District” is a bonafide record of

research work carried out by me. Further certify that the work is original, the data

incorporated in the project work are obtained during the investigation and carried out

according to the plan in the proposal and guidelines of the University Grants

Commission.

Principal Investigator : Nisab.T

Assistant Professor



Valanchery- Malappuram

Kerala 676552

Valanchey

18/4/2018

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to University Grants

Commission, for providing me financial assistance, in the form of Minor Research

Project to complete the present work successfully

I am grateful to Dr. Husain Randathani (Former Principal) and Dr.

Mohamedali, Principal, MES Keveeyam College, Valanchery, Prof. C.K. Hassan,

HOD, Dept. of Commerce, Dr. Santhosh. PC , Dr. C. Rajesh, IQAC coordinator of

the college, Smt. Anitha, superintendent and other colleagues of my college for their

encouragement and help for completing my work.

I would like to express my gratitude to my better half Smt. RASHEEDA. M , my loving

Son AHEN. T for their sacrifice and support given to me during the period of the project and my

Family members and those are helping directly and indirectly to me for completion of this project.

Above all, I sincerely thank the ALMIGHTY for his blessings.

Principal Investigator : Nisab.T

Assistant Professor



Valanchery-Malappuram

Kerala- 676552

Valanchey

18/4/2018

CONTENTS

Chapter No.

Title

Page No.

1 Introduction 1-3

2 Theoretical Frame Work 4-20

3 Review of Literature 21-27

4 Design of the Study 28-32

5 Data Analysis and Interpretation 33-43

6 Findings, Suggestions and Conclusion 44

LIST OF TABLES

Sl No.

List of Table

Page No.

1 Third Stage Evaluation of Alternative criteria 16

2 Respondents’ Profiles 33

3 Gender * Age Cross Tabulation of respondents 33

4 Main Reason of Buying FMCG Products 34

5 Base of Purchase decision 34

6 Reason for Switching Brand (Descriptive statistics) 35

7 Main Reason for Switching Brand 35

8 How Often Switching to Other Brands (Descriptive statistics) 37

9 How Often Switching to Other Brands 37

10 Association between Gender and Income on Consumer Buying

Behavior

39


Behavior Cross tabulation 39


Behavior Chi-Square Tests result

40

13 Association between Gender and Education on Consumer Buying

Behaviour

42

1

CHAPTER 1

INTRODUCTION

The consumer bahaviour plays an important role in marketing. This is influenced by various

factors. It is seen that consumer’s needs and wants to buy a product changes with the changing

global scenario. Consumer behaviour can be defined as the decision-making process and physical

activity involved in acquiring, evaluating, using and disposing of goods and services. Dr. S.

Mahalingam & P. Nandha Kumar (2012) 1 .This definition clearly brings out that it is not just the

buying of goods/services that receives attention in consumer behaviour but, the process starts much

before the goods have been acquired or bought.

The study of consumer behaviour is the study of how individuals make decisions to spend

their available resources (time, effort, money) on consumption related item. It includes the study of

what they buy it, where they buy it, how often they buy it and how often they use it. It is important

to know how consumer reacts towards different product features, price, and advertisement, in order

to ensure strong competitive advantage. All of us are consumers. We consume things of daily use.

We also consume and buy these products according to our needs, preferences and buying power. In

some societies, there is a lot of affluence and these societies can afford to buy in greater quantities

and at shorter intervals. In poor societies, the consumer can barely meet his barest needs.

FMCG in marketing is defined as convenient and low involvement products like salt,

flours, peers, chocolates etc. Prince, Rozario, Panuel and Shafayet Ullah (2012) 2 Fast Moving

Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this

category include all consumables (other than groceries/pulses) that people buy at regular intervals.

The most common in this list are toilet soaps, detergents, shampoos, toothpaste, shaving products,

shoe polish, packaged food stuff, and household accessories and extends to certain electronic goods.

These items are meant for daily use of frequent consumption and have a high return. The sector is

divided into two distinct segments - the premium segment catering mostly to the urban upper

middle class and the popular segment with prices as low as 40% of the premium segment.

1 . Dr. S. MAHALINGAM & P. NANDHA KUMAR(2012) “A study on consumer behaviour towards selected fast moving consumer goods in Coimbatore city”, Indian Journal of Education and Information Management, Vol:1, Issue:11, November2012 2. Prince, Rozario, Panuel&Ullah, Shafayet, G.M.(2012).Factors influencing the Bangladeshi

consumers’ purchase decision regarding Fast Moving Consumer Goods: An exploratory study.

The IUP Journal of brand management, Vol.9, No.1, 7- 27

2

The consumer response and reaction of retailer and competitor are the two factors

responsible for the long-term success of manufacturer marketing action. The previous study

conveys the reaction of retailers to wholesale price promotions with price changes for competing

brands. In spite of the effect of different elements, factors like location of store, design and physical

facilities, merchandise assortment, advertising and sale promotion, store staff, customer services

and client (social-class membership) impart huge influences on choice of store. So the highly

competitive market place and fatly changing consumer trend in fast moving consumer goods

(FMCG) encourage me to obtain more information about consumer preferences and their attitudes

in Indian markets. The products, which have a quick turnover, and relatively low cost or

inexpensive and frequently purchase and rapidly consume, which purchaser exert only minimal

purchasing effort are known as Fast Moving Consumer Goods (FMCG). Retail recently has been

one of the developing regions in the global economy. It has testified a high growth rate in the

developed countries and is balanced for an exponential growth, in the revealed economies.

Marketing is all around us. A wide range of activities continuously affects our entire

life, our life style and our existence. The food we eat, the medicine we take, the clothes we

wear, we read and write, the comforts, luxuries, and amenities, we enjoy all these are affected

each day by the marketing system. The activity of marketing is of the people, for the people and

by the people. Marketing plays an important role in society by helping us satisfy our needs and

by helping organization determines what to produce.

The Indian economy is surging ahead by leaps and bounds, keeping pace with

urbanization, increased literacy levels, and rising per capita income. The big firms are growing

bigger and small-time companies are catching up well. On account of green revolution, the rural

areas are consuming a large quantity of industrial and urban manufactured products. In this

context, a special marketing strategy, namely rural market was emerged. A large number of

gigantic MNCs have changed their destination from urban to rural markets which have

displayed an impressive growth over last few years.

The overall objective of this research work is to investigate significant features based on

consumer perspective in FMCG products in our country. The purpose of this study is to find

consumer buying behavior of FMCG product in Indian market, special reference to Malappuram

district. The study is mainly focused on finding main attributes that have an impact on consumer

buying attitude in Indian FMCG market, attributes which influence in making the FMCG customers

more satisfied and association between gender with income and education of FMCG customers.

The researcher decided to select 2 products, ie. hair care products and house hold cleaners from

personal care and house hold segment. Vitamin & Minaral suppliment products have been selected

3

from health care segment, biscuit and softdrink from food & beverage segment. This empirical

work will be useful for all the stakeholders in the market especially dealing with FMCG.

The study is confined to Malappuram district only. Malappuram district comprises 11

Muncipalities and 95 Panchayaths. Multistage sampling method was adopted for the study. At the

first stage the entire district is divided in to 2 strata, ie Municipalities and Villages (Panchayath).

From there, on the basis of lottery method, researcher selected 5 Muncipalities and 5 Villages. Then

convenient sample techniques is applied to select a sample size of 500 respondent consumers, ie. 50

from each selected Muncipalities and Panchayaths. Since the size of universe is infinite, the

researcher decided to select a sample size of 500 respondent consumers. Though the assumed

sample size is 500, some questionnaires which were sent through e-mails were not returned,

limiting the actual sample size in to 493

All 493 respondents are chosen from different age groups, classifying them on the basis of

literacy with the help of unstructured interviews and discussions with these respondents, the

information for this survey is gathered. To achieve diverse responses from an expanded scope of

ideas, age, education, income and type of occupation used and the samples were also collected from

different places such as shopping center, club, colleges and university. The research is expected to

start by conducting an exploratory research on Indian consumer behavior to determine the most

important attribute adopted by them. The research gradually shifts from exploratory research to

quantitative research.

The main reasons for purchase, switching of brand and witching to other FMCG brands are

understood by taking in to considering the descriptive statistics. Association between gender and

income on consumer buying behavior, association between gender and education on consumer

buying behavior are studied by applying chi –square test.

CHAPTERISATION

� Chapter 1 deals with Introduction of the project work

� Chapter 2 tell us the theoretical back ground of the study

� Chapter 3 describe the review of literature

� Chapter 4 deals with methodology and frame work of the study

� Chapter 5 describe data analysis and interpretation

� Chapter 6 give us the findings and suggestions

“An Empirical Study of Consumer Buying Behavior and Its Influence on Consumer Preference in FMCG Market in Malappuram District”

4

CHAPTER 2

THEORETICAL FRAME WORK

The proper knowledge of the topic is essential for the smooth conduct of the research work.

Here this chapter explains the theoretical base for the study. This session includes the basic,

historical, theoretical nature, and background of this topic.

Indian FMCG Industry

FMCG products are those products, which popularly known as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people

buy at regular intervals. The most common list are toilet soaps, detergents, shampoos,

toothpaste, shaving products, shoe polish, packaged food stuff, and household accessories

and extends to certain electronic goods. These items are meant for daily of frequent

consumption and have a high return.

The Fast Moving Consumer Goods (FMCG) segment is the fourth largest sector in the

Indian economy. The market size of FMCG in India is estimated to grow from US$30 billion

in 2011 to US$74 billion in 2018. Food products are the leading segment, accounting for 43

percent of the overall market. Personal care (22 percent) and fabric care(12 percent) come

next in terms of market share. Growing awareness, easier access, and changing lifestyles have

been the key growth drivers for the sector.

The Indian FMCG sector is the fourth largest in the economy and has a market size of

US$13.1 billion. Well-established distribution networks, as well as intense competition

between the organized and unorganized segments are the characteristics of this sector. FMCG

in India has a strong and competitive MNC presence across the entire value chain. It has been

predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion

11.6 in 2003.The middle class and the rural segments of the Indian population are the most

promising market for FMCG, and give brand makers the opportunity to convert them to

branded products. Most of the product categories like jams, toothpaste, skin care, shampoos,

etc., in India, have low per capita consumption as well as low penetration level, but the

potential for growth ishuge.

“An Empirical Study of Consumer Buying Behavior and Its Influence on

Consumer Preference in FMCG Market in Malappuram District”

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1.

Sources: Indian Brand Equity Foundation report January 2015




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FMCG PRODUCT CATEGORIES

COLDDRINKS

India is the world’s fastest growing major economy and has already made it to the list

of 10 biggest economies of the world. According to the International Monetary Fund (IMF),

India is the ninth largest economy with a nominal GDP estimated at around US$2.04 trillion.

With US$7.96 trillion PPP in terms of the Purchasing Power Parity (PPP), India is the third

largest economy with US$7.96 trillion, and that is what makes it one of the biggest markets in

the world. India is a major manufacturer and importer of soft drink beverages. The Indian soft

drink industry is vast and is has been rapidly growing by the day. No matter what time of the

year it is, soft drink beverages are consumed in great volume.

According to official reports, the volume of soft drinks consumed in India stood at a

whopping 11,755 million liters in 2013. These numbers suggest that there was an increase of

about 170 percent in the consumption of soft drinks in comparison to 2008. It is further

expected that the sale of soft drinks may go up by an annual 19 percent till until 2018.

Major and most popular soft drinks in India are coca cola, Pepsi, Frooti, Miranda,

slice, Fanta, seven up etc.

TOOTHPASTE

The concept of tooth paste in India is relatively new. In ancient and medieval India

oral hygiene was taken care of by homemade and Ayurvedic products. However in the last

few decades the tooth paste industry in India has shown impressive growth. The tooth paste

market in India can be categorized into the powder and gel market. However the gel

toothpaste market has beaten the latter hollow.

Currently the toothpaste market in India stands at 2,000 –crores. Toothpaste usage in

India is very low as compared to other countries. The potential for growth is immense in the

urban toothpaste market. The usage of toothpaste in the Indian cities is about 190 Gms

whereas in developed countries like USA and England the toothpaste usage is 375 Gms per

person annually.The top toothpaste brands in India include Colgate Palmolive, Hindustan

Lever Limited and Dabur India. The level of penetration of toothpaste in India is 50 percent.

However the major toothpaste players in India are trying their best to increase penetration

levels in the rural parts of the country which is still by far untapped. At present Colgate holds



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a market share of 52% and HUL 23%.14.5% of the market share is shared by brands such as

Pepsodent, Babool, Sensofoam, Cibaca, Neem, Vicco etc.

DETERGENTPOWDER

The detergent market is one of the segments of the FMCG market in India that has

high growth potential. The detergent based segment is divided into two broad categories- oil

based laundry soaps and synthetic detergents, including bars powder, and liquids. The

detergent market is mainly concentrated in the urban areas but the level of penetration in the

rural for the past few years has been good.

Detergent market in India can be further divided into four sub categories;

Concentrates and compact segment for washing machines such as Surf, Excel, Henko, and

Ariel. Premium segment such as Surf Excel, Henko, Ariel.Mass premium and mid-price

segment such as Rin, Mr. White, Tide and other regional brands.Popular segment such as

Nirma, Wheel, Chek,501.

a. Detergentmarket-Consumption

The detergent consumption in India is less in comparison to other Asian countries.

The per capita detergent consumption in India is around 2.7 kg per year, whereas places like

Philippines and Malaysia, the per capita consumption is 3.7 kg, and in USA it is around 10

kgs. The detergent market in India is expected to have a growth rate of 7% to 9% per year in

terms of volume. The major players in the detergent market are the Unilever and Nirma. The

Unilever dominates the premium and mid-priced segment, and the Nirma dominates the low

priced segment.

b. Detergent market- Growthpotentials

The penetration level should be enhanced to enable the market to grow at the rate of 8

to 10% per year .The consumer awareness programs should be launched in the rural areas in

order to increase the per capita consumption in such areas.

SKIN CAREPRODUCTS

The Indian women has always been conscious about her looks. Beauty is relative and

varies from person to person. Make up is something that accentuates or highlights the beauty

of a woman. With the increasing levels of fashion in and around the world the need to look

good is increasing day by day. Indian women have become extremely beauty conscious and

do not think twice before investing in a good cosmetic product. One of the most essential

beauty products in India today is skin cream. More than a beauty product skin creams can be

termed as basic necessities considering the harms caused to the skin due to pollution levels



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and ultra violet rays. India is home to some of the finest cosmetic and herbal cosmetic

companies that have made a mark in the global forefront. The major players in the skin cream

segment in India include Lakme, L’Oreal, Garnier, Revlon, Maybelline, Godrej group, and

Dabur.

The Indian cosmetic industry is one of the most flourishing industries. Currently the

industry is valued at ‘712 crore and is expected to further grow up to ‘1,514 crore by 2012

India. The beauty segment in India really gained momentum since the early 1990’s. India and

China are said to be the largest cosmetic markets in Asia. Initially the Indian skin cream

market was categorized into organized and unorganized sector. But with the increasing

demand for reputed products saw a decline in the unorganized skin cream segment in India.

The top skin cream brands in India include Faire and Lovely, Garnier Light, Lakme and

Ponds. Today even creams by companies like Loreal and body shop are very much in

demand.

However one has to be extremely careful since the cosmetics market in India is full of

fake products that are available at much lower prices than the original ones. These limited

products are often made out of cheap substitutes and can cause great harm to the skin. These

imitations could be made out of cheap materials which can be at times harmful for the skin.

The growing need to look good, along with the above mentioned reasons, has led

people to purchase more of the branded products, leading to a shift from an unorganized

sector to an organized one. The increasing availability of domestic and international brands

and greater product availability at affordable prices has led consumers to move away from

using products from the unorganized channels. The top skin cream brands in India have their

own respective dedicated customers since people do not like to experiment too much with

their skins.

a. Top skin care brands in India;

• Cavinkare

• Nivea India Pvt.Ltd

• AmwayIndia

• Hindustan UniLever

• BalsaraHomeProducts\

HAIR CAREPRODUCTS

a. Hairoil



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Hair care industry within the FMCG personal care segment continues to do well over

some time now. Of the estimated Rs.1, 611 billion FMCG market in India, hair care products

make up approximately 8% of the total according to Nielsen Retail Audit Report.

Out of the above hair care industry hair oils commands close to 50% of the hair care

market in India. As per industry estimates hair oil market size in India is pegged at around

Rs.8, 000 crore with coconut based oils accounting for 46 percent. Non- coconut or perfumed

oil segment has a market size of Rs.4, 283crore. Major companies such as Hindustan

Unilever, Marico, Dabur, Emami, P&G, and Bajaj compete fiercely in the Indian market.

With hair oil having one of the highest penetrations at 90%, most companies had been

playing to their strengths so far. While coconut based oils were dominated by Marico’s

Parachute, Bajaj, and Dabur are traditionally focused on almond and amla, respectively. Now

MNC’s are also foraying into this segment, example beingL’Oreal.

As far as pricing is concerned average prices for hair oil products have risen from

RS.22.25 Per 100 ml in 2008 to Rs 40per 100ml in 2013 according to the IMRB trade report.

Hair oiling is a traditional habit of Indians Hair oil is primarily used as pre-wash

nourishment. Some people also use hair oil after bath as aconditioner.

Hair oil is perceived to provide benefits of nourishment, strengthening hair, faster and

better growth and reducing the problem of falling hair. Some consumers perceive that

massaging hair oil has a cooling impact on the head. Cosmetically, hair –oil is perceived to

aid hair styling, hair remain straight, soft and shining after applyingoil.

b. Shampoo

Shampoo in India was derived from the Hindi word champi meaning hair massage.

The introduction of shampoo in India dates back to the British reign in the country. Recent

penetration levels of shampoo in India has been commendable. The shampoo market in India

is estimated to be Rs.2, 500-3,000 crore. The shampoo market in India is categorized

according to the benefits they provide. Mostly consisting of three kinds of shampoos;

cosmetic, herbal, and anti-dandruff, the shampoo market in India has managed to tap users of

the various segments according to their requirements and preferences.

Due to continuous efforts of the top shampoo brands in India penetration of shampoos

in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is

concerned it has risen by almost 18% in the current scenario.



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The top shampoo brands in India include Sunsilk, Clinic plus, dove and Pantene. The

company that leads the shampoo market in India is Hindustan Unilever Limited. The top

three most sought after brands Sunsilk, Dove, and Clinic plus are produced by HUL. The

company holds a 44% market share in the Indian shampoo industry. It is said that HUL earns

almost 8% of its revenue from the sale of these products. The other recent brand that has

taken the Indian personal care product industry by storm is Pantene. Since its very inception

the brand was a best seller. A product of FMCG giants Proctor and Gamble, Pantene has

slowly and steadily managed to capture quite a large amount of the Indian market. Proctor

and Gamble the second top shampoo brand in India holds a market share of around 25% in

the Indian shampoo industry. The revenue earned from the sale of shampoos from Proctor

and Gamble is almost17%.

Together these two major players constitute a major part of the Indian shampoo

industry. Both these players with their numerous brands dominating the Indian shampoo

market are continuously trying to outdo one another by introducing different marketing

schemes. Be it in the form of price cuts, discounts or increasing the size of the shampoo

sachets without any extra costs these two shampoo producing companies are at a continuous

price war.

TOILETSOAP

Soap was introduced in India by the Lever Brothers during the British reign in the country.

Thereafter soaps were imported from England and marketed in India. However the first local

soap manufacturing unit was set up by Mr. Jamshedji Tata in Cochin, Kerala around the

period 1918.

Since then soaps have become an important part of the lives of the people of the

country. Today India has one of the most developed soap markets and is dominated by

numerous multinational and also quite a few major domestic companies. Some of the most

popular soap brands in India include Lux, Cinthol, Lifebuoy, Liril, Shikakai, Rexona, Nirma,

Dettol etc.

The soap market in India which was once only restricted to the urban regions has now

covered practically the remotest corners of the country. The ever increasing demand for

personal care products in India is mostly due to the sizable population, greater hygiene

concerns and the rising income levels of the people of the nation.



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The Indian soap market is ruled by three major giants; Hindustan Unilever Limited,

Godrej and Nirma. These three companies alone account for 88% of the total market share in

India. H.U.L with its brands like Lux and Lifebuoy have dominated the Indian lather

industry since the last few decades Nirma another top soap brand in India is one of the

major competitors of HUL and hold a 15% market share in the Indian soapmarket.

The primary aim of the top soap brands in India today is to expand the number of

rural consumers since the rural consumers consist of 70% of the total population of the

country. The overall soap penetration in Indian households is 98%. The top soap brands in

India are ranked according to the usage and popularity since people belonging to different

strara’s of societies use different brands of soap. Rural consumers in India constitute 70% of

the population. The top soap companies re specially producing soaps under the discount

segment meant exclusively for the rural areas targeting the absolute lower income

consumers.

FOODPRODUCTS

This segment consists of the food processing industry, health beverage industry, bread

and biscuits, chocolates and confectionary, mineral water and ice creams. The three largest

consumed categories of packaged foods are packed tea, biscuits and soft drinks. Indian hot

beverage market is a tea dominant market. The major share of tea market is dominated by

unorganized players. Leading branded tea players are HLL and Tata Tea. Major players in

food segment are HLL, ITC, Godrej, Nestle, and Amul.

ITC’s branded packaged food business is one of the fastest growing food businesses

in India, driven by market standing and consumer franchise of its popular brands-

Aashirvaad, Sunfeast, Bingo, yippee, Kitchens of India, B Natural, Mint-o, Candyman and

GumOn. The food business is today represented in multiple categories in the market- staples,

spices, ready – to- eat, snack foods, bakery &confectionary and the newly introduced juices

&beverages.

3BUYING DECISIONPROCESS

A buying decision process is the process a customer goes through when buying a

product. It can be seen as a particular form of a cost-benefit analysis. The buying decision

model has gone through lots of interpretation by scholars. Although the models vary, there is

a common theme of five stages in the decisionprocess.



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These stages were first introduced by Engel, Blackwell and Kollat in 1968. The stagesare;

1. Problem/Needrecognition

2. Informationsearch

3. Evaluation ofalternatives

4. Purchasedecision

5. Post-purchasebehaviour

These five stages are a framework to evaluate customers’ buying decision process.

However, it is not necessary that customers get through every stage, nor is it necessary that

they proceed in any particular order. For example, if a customer feels the urge to buy

chocolate, he or she might go straight to the purchase decision stage, skipping information

search and evaluation.

1stStage: Problem /Need –recognition

Problem /need-recognition are the first and most important step in the buying decision.

Without the recognition of the need, a purchase cannot take place. The need can be triggered by

internal stimuli (e g .hunger, thirst) or external stimuli (e g. advertising). Maslow held that needs

are arranged in a hierarchy. According to Maslow’s hierarchy, only when a person has fulfilled

the needs at a certain stage, can he or she move to the next stage. The problem must be

addressed through the products or services available. It’s how the problem must berecognized

2ndStage: Information Search

Once the need recognition occurs, consumers begin searching for information and

solutions to satisfy their unmet needs. Search may be internal, retrieving knowledge from

memory or perhaps genetic tendencies or it may be external, collecting information from

peers, family and the market place. Increasingly, information search is occurring on the

internet. Although some searches on the internet may take a fairly long time, others are much

speedier, depending on how the website is designed. Sometimes consumers search passively

by simply becoming more receptive to information around them, whereas at other times they

engage in active search behaviour, such as researching consumer publications, paying

attention to ads, searching the internet, or venturing to shopping malls and other retail outlets.



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3rdStage: Evaluation of alternatives

At this stage, consumers evaluate different products/brands on the basis of varying

product attributes, and whether these can deliver the benefits that the customers are seeking.

This stage is heavily influenced by one’s attitude, as “attitude puts one in a frame of mind:

liking or disliking an object, moving towards or away from it”. Another factor that influences

the evaluation process is the degree of involvement. For example, if the customer

involvement is high, then he/she will evaluate a number of brands; whereas if it is low, only

one brand will beevaluated.

Table-2:1: Third Stage Evaluation of Alternative criteria

Customer involvement High Medium Low

Characteristics High Medium Low

Number of brands examined Many Several One

Number sellers considered Many Several Few

Number of product attributes evaluated Many Moderate One

Number of external information sources used Many Few None

Time spent searching Considerable Little Minimal

4thStage: Purchase decision

The next stage of the consumer decision process is purchase decision. The core of marketing is

exchange. It is the actualization of a transaction between the seller and the seeker of value. In

this process the customer must make a choice or decisions with regard to

selection of a value provider. A brand success reflects choice or a decision in its favor. A

decision involves a choice between two or more alternative actions or behaviour. The

customers essentially make two types of decision in the context of marketing. The first type

of decisions is directed at the choice of product or service. These decisions are called

assortment decisions. The second type of decision concerns the choice of specific brands and

how to obtain them, these are called as market related decisions. Since most customers do not

have unlimited resources, judicious allocation of resources among given alternatives is

required. The concept of assortment implies the basic combination or group. Assortment

decisions tend to be guided by central values held by the individual and socio-psychological

variables. Sometimes, assortment decision tend to be conscious ones, based on systematic

analysis. The perception of each type of consumers should be duly recognized with respect to

the related attributes and benefits of the product while getting involved with purchase

decisions. Regardless of the type of customers the process of purchase decision are uniform



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viz., need recognition, choice of involvement level, identification of alternatives. Evaluation

of alternatives, decision to buy and post purchase behaviour consumer decision process does

not consist of discrete acts, but is a processes. It is not just the decision but a whole series of

decisions.

The customer moves to market related decisions in order to operationalize the assortment

strategy. After searching and evaluating the alternatives, the consumer must decide whether

to buy or not. Thus, the first outcome is the decision to purchase or not to purchase. If the

decision is to buy, various decisions are to be taken regarding where and when to make the

actual transition, how to take delivery or possession, the method of payment, and other issues.

The buying decision also highly influenced withcultural, social, personal and

psychologicalfactors.

5thStage: Post purchase behaviour

These stages are critical to retain customers. In short, customers compare products with their

expectations and are either satisfied or dissatisfied. This can then greatly affect the decision

process for a similar purchase from the same company in the future, mainly at the information

search stage and evaluation of alternatives stage. If customers are satisfied, this result in brand

loyalty, and the information search and evaluation of alternative stages are often fast-tracked or

skipped completely. As a result, brand loyalty is the main aim of many companies.

On the basis of either being satisfied or dissatisfied, a customer will spread either positive

negative feedback about the product. At this stage, companies should carefully create positive

post-purchase communication to engage the customers.

Also, cognitive dissonance (consumer confusion in marketing terms) is common at

this stage; customers often go through the feelings of post-purchase psychological tension or

anxiety. Questions includes:“have I made the right decision? Is it a good choice?”etc.



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TYPES OF BUYINGBEHAVIOURS

Complex BuyingBehaviour

Consumers undertake complex buying behaviour when they are highly involved in

a purchase and perceive significant differences among brands. Consumers may be

highly involved when the product is expensive, risky, purchased frequently, and highly

self- expensive. Typically, the consumer has much to learn about the product category.

For example, a personal computer buyer may not know what attributes to consider.

Many product features carry no real meaning: a “Pentium Pro Chip”, “super VGA

resolution,” or “megs of RAM”. This buyer will pass through a learning process, first

developing beliefs about the product, then attitudes and then making a thoughtful

purchase choice. Marketers of high –involvement products must understand the

information gathering and evaluation behaviorofhigh-

involvementconsumers.Theyneedtohelpbuyerslearnaboutproduct class attributes and

their relative importance, and about what the company’s brand offers on the importance

attributes. Marketers need to differentiate their brand’s features, perhaps by describing

the brand’s benefits using print media with long copy. They must motivate store

salespeople and the buyer’s acquaintances to influence the final brand choice.

Dissonance-Reducing Buying Behavior

Dissonance reducing buying behavior occurs when consumers are highly

involved with an expensive, infrequent or risky purchase, but see little difference

among brands. For example consumers buying carpeting may face a high-involvement

decision purchase because carpeting is expensive and self-expressive. Yet buyers may

consider most carpet brands in a given price range to be the same. In this case, because

perceived brand differences are not large, buyers may shop around to learn what is

available, but buy relatively quickly. They may respond primarily to a good price or to

purchase convenience. After the purchase, consumers might experience post purchase

dissonance (after sale comfort) when they notice certain disadvantages of the purchased

carpet brand or hear favorable things about brands not purchased. To counter such

dissonance, the marketer’s after- sale communications should provide evidence and

support to help consumers feel good about their brand choices.



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Habitual buyingbehavior

Habitual buying behavior occurs under conditions of low consumer

involvement and little significant brand difference. For example, take salt. Consumers

have little involvement in this product category-they simply go to the store and reach

for a brand. If they keep reaching for the same brand, it is out of habit rather than brand

loyalty. Consumers appear to have low involvement with most low –cost, frequently

purchased products.

In such cases, consumer behavior does not pass through the usual belief-

attitude- behavior sequence. Consumers do not search extensively for information about

the brands, evaluate brand characteristics, and make weighty decisions about which brands

to buy. Instead, they passively receive information as they watch television or read

magazines. Ad repetition creates brand familiarity rather than brand conviction. Consumers

do not form strong attitude toward a brand; they select the brand because it is familiar.

Because they are not highly involved with the product, consumers may not evaluate the

choice even after purchase.

Thus, the buying process involves brand beliefs formed by passive learning,

followed by purchase behavior, which may or may not be followed by evaluation.

Because buyers are not highly committed to any brands, marketers of low-involvement

products with few brands differences often use price and sales promotions to stimulate

product trial. In advertising for a low-involvement product, ad copy should stress only

a few key points. Visual symbols and imagery are important because they can be

remembered easily and associated with the brand. Ad campaigns should include high

repetition of short- duration messages. Television is usually more effective than print

media because it is a low-involvement medium suitable for passive learning

.Advertising planning should be based on classical conditioning theory, in which

buyers learn to identify a certain product by a symbol repeatedly attached to it.

Marketers can try to convert low-involvement products into higher-involvement

ones by linking them to some involving issue. Procter & Gamble does this when it

links Crest toothpaste to avoiding cavities. At best, these strategies can raise consumer



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involvement from a low to a moderate level. However, they are not likely to propel the

consumer into highly involved buying behavior



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CHAPTER 3

REVIEW OF LITERATURE Introduction

A new research cannot be taken seriously without first reviewing the previous

research done on the topic. In this chapter, the concepts relevant to the present study

are compiled and presented in a logical order. It covers some of the previous research

done on the topic and sets the platform for my study .To support and enrich the

theoretical orientation of the present study, an attempt was made to review similar and

relevant past studies and literature available in books, scholarly journals, magazines,

and other resources. Let us go through the valuable contribution of the previous

researchers. Some of them are from India and others are from different nations. It is

essential to explore more idea regarding the topic. This chapter deals with the review of

the earlier works done in the relevant area.

Mr. S.THANIGACHALAM & Dr. K. VIJAYARANI (2014) 3 conducted a study to

understand the consumer buying behaviour towards FMCG Products in Puduchery. Purposive

sampling method was adopted for the study. The study is confined to puducherry district

only. Since the size of universe is infinite, the researcher selected a sample size of 500

respondent consumers. The processing, classification, tabulation, analysis and interpretation

of data are done with the help of SPSS package. The statistical tools used in the study were

percentage analysis, descriptive analysis (mean and standard deviation), Independent samples

t-test, one way ANOVA, correlation analysis and factor analysis.

Dr. S. MAHALINGAM & P. NANDHA KUMAR (2012) 4 studied the

consumer behaviour towards selected fast moving consumer goods in Coimbatore City. Here

the researcher has assessed the socio-economic profile ,shopping pattern consumer and found

3. Mr. S.THANIGACHALAM & Dr. K. VIJAYARANI(2014) CONSUMER BEHAVIOUR

TOWARDS FAST MOVING CONSUMER GOODS IN PUDUCHERRY, Asia Pacific

Journal of Research Vol: I Issue XVIII, October 2014

4. Dr. S. MAHALINGAM & P. NANDHA KUMAR(2012) “A study on consumer behaviour towards selected fast moving consumer goods in Coimbatore city”, Indian Journal of Education and Information Management, Vol:1, Issue:11, November2012



22 | P a g e

out the factors influencing the consumer to purchase the selected FMCG products. The

primary data required for the study for collected through questionnaire which was distributed

to 400samples chosen from Coimbatore city .The tools used for analysis are percentage

analysis, garrett ranking and chi-square. From this study it was found that most of the

consumers are influenced by brand and quality in purchase of FMCG products. There by the

researcher has suggested improving the quality in FMCG product through product

development and external monitoring.

C.MUTHUVELAYUTHAM (2012)5 studied the relationship between demographic

variables on the brand loyalty of the consumer’s switching factors in respected selected

FMCG product category .This study is essentially a correlation study between the two

variables listed above. The sample size of the study was 600 peoples from 3 districts from

Thamilnadu. Here the researcher applied random sample selection method .To find out the

amount of correlation between the variables. Chi-square test was used in this study results

show the among the variables age, education level, and gender have the most significant

impact on consumer’s brand loyalty.

PRINCE, ROZARIO, PANUEL and SHAFAYET ULLAH (2012)6 discussed in

their study that Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors in

the economy of Bangladesh. They explained the word FMCG products as convenient and low

involvement products like salt, flours, peers, chocolates etc. This study recommends focusing

on three important factors i.e. sales promotion, time constraints and unavailability of brand to

smoothen the progress of the FMCG industry in Bangladesh. The FMCG industry will find

better development opportunities, if the findings of this study are used as an input in its

strategic decision making.

5. Muthuvelayutham, C. (2012). The study of consumer brand loyalty on FMCG – cosmetic

products with special reference to Madurai. European Journal of Scientific Research ISSN

1450-216X, Vol.71, No.1,127-143.

6. Prince, Rozario, Panuel&Ullah, Shafayet, G.M.(2012).Factors influencing the Bangladeshi

consumers’ purchase decision regarding Fast Moving Consumer Goods: An exploratory study.

The IUP Journal of brand management, Vol.9, No.1, 7- 27



23 | P a g e

YADAV, KSHITIZ, Prof. SHOSH, RAJKUMAR, Dr. S.H. KULKARNI (2013)7

have studied the consumer behaviour towards FMCG products in rural areas of Ramnagar,

Nainital. The main objective of the study was to identify the various factors which

influencing on the behavior of FMCG consumer. The study was descriptive in nature. The

sample size of the study was 50 respondents and the researchers found these by simple

random sampling. The study result clearly indicates that most of respondents are attracted by

brand of product, by quality of product, promotional schemes also attract the respondents.

KULDEEP SINGH & VARSHNEY (2003)8 conducted a study on consumer

behavior and marketing trend of toilet soaps in Ghariabad District. – The main objective was

to determine individual purchase behaviour of toilet soaps. He has been analysed various

ingredients of consumer behaviour like motivation, learning, perception, personality, social

and psychological factors in depth. He recommended various techniques to enhance their

sales of toilet soaps. He found that changing pattern of demand and supply are the main

reason for stagnation of toilet soap market

SUKAT NUNTASAREE (2009) 9 made a study in male consumer’s behavior in

buying skincare products in Thailand .The study made a attempt to evaluated in some depth

the phenomena of male consumer behavior in buying skin care products in Thailand .In the

work 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 belief in product attribute, self-image ,normative influences and

attitudes toward applying skin care products, affect Thai male consumer’s purchase intention

and purchase behavior in buying skin care products. The researcher confirms that beliefs,

7. Yadav, Kshitiz, Prof. Shosh, Rajkumar, &Kulkarni, S.H (2013). A study of the

consumer behaviour towards FMCG products in rural areas of Ramnagar,

Nainital. ASM’S International E-Journal of ongoing research in management

and IT.

8. Singh, Kuldeep & Varshney (2003). Consumer behaviour and marketing trend of

Toilet soaps in Ghariabad District- A survey. Indian journal of marketing, Vol.33,

No.2,14-17.

9. Sukat, Nuntasaree (2009) .A model of male consumer behaviour in buying skin care

products in Thailand. ABAC Journal, Vol.29, No.1,39-52.



24 | P a g e

self-image, normative influences and attitudes have impacts on purchase behavior in buying

skin care products among male consumers. The modified theory of reasoned action is

appropriate to explain male consumer behavior in the purchase of specific cosmetic products

in Thailand.

GIHAN,WIJESUNDERA(2010) 10 studied the various factors which

influencing the demand of beauty soap among female consumers in 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 female

consumers in the greater Colombo region. The results indicated that there were

statistical relationship between price, product, education, occupation, and brand

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 Colomboregion.

B.V.N.G. CHANDRASEKHAR (2012) 11 studied the consumer buying behaviour and

brand loyalty in rural market FMCG. He also made an attempt to identify the presence

and the importance of local brands .The primary data was collected through a

questionnaire. The study was conducted on a Sattenapalli, Tadipattri and Mallappur in

Andra Pradesh.

Dr. KIRANMOR & SULEKHA (2013) 12 conducted a study to identify the factors

responsible for buying behaviour of rural consumers of FMCG in Haryana. A questionnaire

10. Gihan Wjesundera, (2010). Factors influencing the demand of beauty soap among

female consumers in the greater Colombo region. University of Kelaniya, SreeLanka.

11. B.V.N.G Chandrasekhar(2012). Consumer buying behaviour and brand loyalty

in rural market: FMCG. IOSR Journal of business and management, Vol.3, Issue.

2, 50- 67.

12. Kiran Mor &Sulekha (2013). An investigation of consumer buying behaviour for

FMCG: An empirical study of rural Haryana. Global Journal of management and

business research marketing, Vol.13, Issue.3, Version1.0.



25 | P a g e

structure for 500 respondents and factor analysis was used to find out the factors. The study

revealed that the rural consumers are not only price sensitive but also –think about quality,

performance, reliability; brand and other critical aspects, and they are highly affected by their

life style and attitude.

ANKIT KATIYAR AND NIKHA KATIYAR (2014) 13 conducted a study to identify the

factors that influence consumer behaviour at the time of purchasing of bathing soap.A

questionnaire was structure for 150 respondents. The study revealed that the demographic

background of rural consumers plays a vital role in determining the behavioural aspect as

well as the royalty of brand and they prefer purchasing of bath soaps mostly from

convenience store or neighbor retail store.

Dr. B, NAGARAJU AND THEJASWINI.H.D (2014) 14 studied consumer’s

perception and analysed market awareness towards eco-friendly FMCG products. The work

conducted in Mysore district”. The study was empirical in nature. The study is carried out

with a face to face interview with 60 respondents. The sampling technique used was

convenient sampling. Likert scale also used. Hypothesis was constructed for the study, and

for this purpose Chi-square test is applied. The main objective of the study was to find out the

consumer willingness to pay more eco- friendly FMCG product. The result of hypothesis was

there is no significant relationship between price and consumer perception towards eco-

friendly FMCG products. The study indicates that the consumers of Mysore District of

Karnataka are aware about the eco-friendly FMCG products and they have more concern for

eco-friendly products.

13. ANKIT KATIYAR AND NIKHA KATIYAR (2014)

14. Dr. Nagaraju, B., & H.D, Thejaswini (2014). Consumers’ perception analysis market

awareness towards eco-friendly FMCG products- a case study of Mysore district. IOSR

Journal of business and management, Vol.16,Issue.4,Version.v,64-71.



26 | P a g e

Anupam Jain and Meenakshi Sharma (2012) 15 examined the brand awareness

in rural area and to study the interest of consumers in branded products of Fast Moving

Consumer Goods (FMCG). The study conducted at Garhwal Region of Uttarakhand State. T

test, Anova and Correlation test were applied by the researcher in this study. Testing the

hypothesis, it is found that male and female attitude towards the brand differs significantly. In

other words, both gender categories have different attitude towards brand. Consumers of

different age groups have different attitude towards the brand. Educational Qualification as

one of the Categorical Independent variable also has a significant difference in terms of

attitude towards the brand. While, it is found that there is no significant difference among

different income categories towards the brand of various FMCG products.



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CHAPTER 4

DESIGN OF THE STUDY



28 | P a g e

CHAPTER 4

DESIGN OF THE STUDY

Introduction

In the previous chapter the researcher found some research gap in

consumers buying behaviour and their preference in FNCG market. So here we have to frame

the proper methodology which can address our research problems. The methodology was

developed to find out the consumer buying behavior and its influence on consumer

preference in FMCG market in Malappuram district. The researcher decided to select 2

products, ie. hair care products and house hold cleaners from personal care and house hold

segment. Vitamin & Minaral suppliment products have been selected from health care

segment. Biscuit and softdrink from food & beverage segment. This empirical work will be

useful for all the stakeholders in the market especially dealing with FMCG.

Statement of problem

A major portion of the monthly budget of each household is spent on FMCG products

(Anupam Jain and Meenakshi Sharma, 2012) 16 The brand awareness is showing increasing

tendency everywhere and as the result of growing economy people taste and preference also

changing in a speedy manner. The retail sector in India is emerging as one of the largest

sector in the economy. By 2015, the total market size is expected to be around USD 600

billion and the retail industry expected to grow to USD 1.3 trillion by 2020 (Indian Brand

Equity Foundation report 2015) 17 FMCG sector is the fourth largest sector in India touching

everybody life’s in everyday. The FMCG goods sector is a vital contributor to India’s gross

domestic products.

Being the low involvement products, consumers are less likely to be engaged in

extensive pre purchase search and mainly exhibit routinised decision making behavior. On

the other hand, it becomes challenging for the marketers to make the consumers switch the

brands. Attracting and retaining the customers is not an easy job for FMCGs in particular. So

it is very important for the marketing firms to understand what the customers’ expectations,

1. Anupam Jain and Meenakshi Sharma, (2012) “Brand Awareness and Customer

Preferences for FMCG Products in Rural Market : An Empirical Study on the

Rural Market of Garhwal Region” VSRD International Journal of Business &

Management Research Vol. 2 (8), 2012

2. Annual Indian Brand Equity Foundation report January (2015)



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preferences and tastes which they consider while they purchase products especially FMCG

products.

Scope of the Study

The study is confined to Malappuram district only. Malappuram district

comprises of 11 Muncipalities and 95 Panchayaths. The purpose of this study is to find

consumer buying behavior of FMCG product in Indian market, special reference to

Malappuram district. The study is mainly focused on finding main attributes that impact on

consumer buying attitude in Indian FMCG market, attributes which influence in making the

FMCG customers more satisfied and association between gender with income and education

of FMCG customers.

This study gives a scientific answer to the following questions.

Research questions:

� Which are the significant attributes that impact on consumer buying attitude in

Indian FMCG market?

� Which are the most important attributes that provides the customer satisfaction in

consumer buying behavior in FMCG product in Indian market?

� What is the reason for brand switching in FMCG products?

� Is there any significant association between gender and income in choosing the

domestic or foreign FMCG products?

� Is there any significant association between gender and education in choosing the

FMCG products?

Data and Sampling Methods

The study is confined to Malappuram district only. Malappuram district comprises of

11 Muncipalities and 95 Panchayaths. Multistage sampling method was adopted for the

study. At the first stage the entire district divided in to 2 strata, ie Municipalities and Villages

(Panchayath). From there, on the basis of lottery method, researcher selected 5 Muncipalities

and 5 Villages. Then convenient sample technique is applied to select a sample size of 500

respondent consumers, ie. 50 from each selected Muncipalities and Panchayaths. Since the

size of universe is infinite, the researcher decided to select a sample size of 500 respondent



30 | P a g e

consumers. Though the assumed sample size is 500, some questionnaires which were sent

through e-mails were not returned, limiting the actual sample size in to 493

All 500 respondents are chosen from different age groups classifying them on the basis of

literacy with the help of unstructured interviews and discussions with these respondents the

information for this survey is gathered, According to Fisher (2007) 18 the number of

distributed questionnaires will have to be larger than the minimum required and the response

rate of 30% is considered very good. In this study 500 questionnaires were distributed and

493 were returned providing a 98.6 % response rate. A well structured questionnaire is

proposed to implement for the collection of relevant data

To achieve diverse responses from an expanded scope of ideas, age, education, income

and type of occupation used and the samples were also collected from different places such as

shopping center, club, colleges and university. The amount of impact of variables from the

respondents reflects the range of measured variable from very high to very low. The research

is expected to start by conducting an exploratory research on Indian consumer behavior to

determine the most important attribute adopted by them. The research gradually shifts from

exploratory research to quantitative research.

Product profile

Indian Brand Equity Foundation report January 2015 states that personal care and

house hold 50% health care products 32% and food & beverage products 18% of total FMCG

market. So the researcher decided to select 2 products, ie. hair care products and house hold

cleaners from personal care and house hold segment. Vitamin & Minaral suppliment products

have been selected from health care segment. Biscuit and softdrink from food & beverage

segment.

1. Fisher, C.M. (2007). Researching and Writing a Dissertation: A Guidebook for Business

Students (Second ed.). Edinburgh Gate: Financial Times Prentice Hall.



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Objective:

The overall objective of this research work is to investigate significant features based on

consumer perspective in FMCG products in our country. The purpose of this study is to find

consumer buying behavior of FMCG product in Indian market, special reference to

Malappuram district.

1. To identify significant attributes that impact on consumer buying attitude in Indian

FMCG market.

2. To identify the most important attributes that provides the customer satisfaction in

consumer buying behavior in FMCG product in Indian market.

3. To identify the reason for brand switching in FMCG products

4. To identify significant association between gender and income in choosing the

domestic or foreign FMCG products

5. To identify significant association between gender and education in choosing the

FMCG products

Hypothesis of the Study

Hypothesis I

H0: There is a no significant association between gender and income about the choosing

the FMCG products

H1: There is a significant association between gender and income about the choosing the

FMCG products

Hypothesis II

H0: There is a no significant association between gender and education about the choosing

the FMCG products

H1: There is a significant association between gender and education about the choosing the

FMCG products

Tools for the Analysis

1. The main reasons for purchase, switching of brand and witching to other FMCG

brands are understood by taking in to considering the descriptive statistics.



32 | P a g e

2. Association between gender and income on consumer buying behavior, association

between gender and education on consumer buying behavior are studied by applying

chi –square test.

LIMITATIONS OF THE STUDY

The study has been based on only 5 FMCG products. The study is confined to

Malappuram district only. Here the analytical techniques applied by the researcher were more

of basic ones. There are some advanced techniques like the usage of which may lead to better

result. Hence, the results are to be taken with a bit of caution.. Still there is a scope for further

research.



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CHAPTER 5

Data Analysis and Interpretation

Table 5.1: Respondents’ Profiles

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender *

Age 493 100.0% 0 .0% 493 100.0%

Table 5.2: Gender * Age Cross Tabulation

Age

Total 20< 20-30 30-40 40-50 50>

Gender MALE Count 36 108 45 53 45 287

% within

Gender 12.5% 37.6% 15.7% 18.5% 15.7% 100.0%

% within Age 57.1% 67.9% 46.4% 54.6% 58.4% 58.2%

% of Total 7.3% 21.9% 9.1% 10.8% 9.1% 58.2%

FEMALE Count 27 51 52 44 32 206

% within

Gender 13.1% 24.8% 25.2% 21.4% 15.5% 100.0%

% within Age 42.9% 32.1% 53.6% 45.4% 41.6% 41.8%

% of Total 5.5% 10.3% 10.5% 8.9% 6.5% 41.8%

Total Count 63 159 97 97 77 493

% within

Gender 12.8% 32.3% 19.7% 19.7% 15.6% 100.0%

% within Age 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 12.8% 32.3% 19.7% 19.7% 15.6% 100.0%

Above table No. 1 represent the total number of respondents. Table No. 2 presents the

characteristic reference to personal profile from. It shows that 58.2. % of respondent was

male and 41.8% of respondent are female. Out of 493, 159 respondents were belongings to

age group 20-30. (ie. 32%) There are only 63 respondents were belonging to first age group,

ie. below 20 years.



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Table 5.3: Main Reason of Buying FMCG Products

Base of Purchase decision

N Valid 493

Missing 0

Mean 2.42

Median 2.00

Mode 1

Std. Deviation 1.191

Variance 1.419

Range 3

Table 5.4: Base of Purchase decision

Frequency Percent Valid % Cumulative %

Product 155 31.4 31.4 31.4

Price 110 22.3 22.3 53.8

Place 94 19.1 19.1 72.8

Promotion 134 27.2 27.2 100.0

Total 493 100.0 100.0

Table 5.3 represents descriptive statistics of the data. Our research also reveal that the

most vital attributes which provides better customer satisfaction in consumer buying behavior

for FMCG product is product. It reveals that people always looking to the product features

other than promotion and other variables. There for the manufactures of FMCG products

shoud be given more focus on quality of the products. Only 19% of respondents are

considering place as the important feature while making FMCG products.



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Table 5.5: Reason for Switching Brand (Descriptive statistics)

N Valid 493

Missing 0

Mean 3.69

Median 4.00

Mode 4

Std. Deviation 1.786

Variance 3.191

Skewness -.152

Std. Error of Skewness .110

Kurtosis -.917

Std. Error of Kurtosis .220

Range 6

Percentiles 25 2.00

50 4.00

75 5.00

Table 5.6: Main Reason for Switching Brand


Brand fatigue (Experience) 103 20.9 20.9 20.9

Value for Money 30 6.1 6.1 27.0

Word of mouth 57 11.6 11.6 38.5

Advertisement 124 25.2 25.2 63.7

Promotion 114 23.1 23.1 86.8

Dissatisfation 37 7.5 7.5 94.3

Never Change(Loyalty) 28 5.7 5.7 100.0

Total 493 100.0 100.0



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Chart 5.1:

Table No. 5.5: represent descriptive statistics of the reason for brand switching in

FMCG products. This study found that that the reason of brand switching is advertisement.

The result also shows that promotional activities also influence the people in brand switching

and 20.9 % respondents say that they want to get the new experiences with new products



37 | P a g e

Table 5.7: How Often Switching to Other Brands

N Valid 493

Missing 0

Mean 2.3124

Mode 2.00

Std. Deviation .77812

Skewness .198

Std. Error of Skewness .110

Kurtosis -.315

Std. Error of Kurtosis .220

Range 3.00

Percentiles 25 2.0000

50 2.0000

75 3.0000

Table 5.8: How Often Switching to Other Brands


Less than One Month 65 13.2 13.2 13.2

2-6 Months 240 48.7 48.7 61.9

More than 1 year 157 31.8 31.8 93.7

Never Change 31 6.3 6.3 100.0

Total 493 100.0 100.0



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Chart 5.2

Table 5.7 shows descriptive statistics of the data. Table 5.8 reveals that most of the

customers switch to other brands during 2 to 6 months from them started to use an existing

product. It is clear that tats and preference of the customers are changing in a very speedy

manner. 6.3% of respondents are not ready to change their existing products which are using

by them.



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Table 5.9: Association between Gender and Income on Consumer Buying Behavior

Cases

Valid Missing Total


Gender * Monthly

Income 493 100.0% 0 .0% 493 100.0%


Cross tabulation

Monthly Income

Total

10000 <

10000-

20000

20000-

30000

30000-

40000 40000 >


Expected

Count 76.3 113.5 47.2 19.2 30.9 287.0

Residual -13.3 21.5 -2.2 -2.2 -3.9

FEMALE Count 68 60 36 16 26 206

Expected

Count 54.7 81.5 33.8 13.8 22.1 206.0

Residual 13.3 -21.5 2.2 2.2 3.9

Total Count 131 195 81 33 53 493

Expected

Count 131.0 195.0 81.0 33.0 53.0 493.0



40 | P a g e


Chi-Square Tests result

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 17.243a 4 .002

Likelihood Ratio 17.476 4 .002

Linear-by-Linear Association .129 1 .720

N of Valid Cases 493

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is

13.79.

Symmetric Measures

Value

Approx. Sig.

Nominal by Nominal Phi .187 .002

Cramer's V .187 .002

Contingency Coefficient .184 .002




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The study made an attempt to study the association between gender and income as

well as gender and education in selecting FMCG products. Pearson Chi- Square statistic =

17.243 and p < 0.005: ie a very small probability of the observed data under the null

hypothesis of no relationship. The null hypothesis is rejected, since p < 0.05 (in fact p <

0.005). The value of Pearson’s chi –square test clearly states that there exists a significant

inter-relationship between the dependent and independent variables. The contingency

coefficient give s us the measure of strength of output, if value close to 0, there is no strong

correlation between the two variables, however, if the value ranges between 0.5 and 1, there

exists a strong correlation. .Above table shows that contingency coefficient is 0 .184. So we

can therefore conclude that the there exists a very strong correlation between the independent

variables (income) and the dependent variable (gender).



42 | P a g e

Association between Gender and Education on Consumer Buying Behaviour

Case Processing Summary

Cases

Valid Missing Total


Gender * Educational

Level 493 100.0% 0 .0% 493 100.0%

Gender * Educational Level Cross tabulation

Educational Level

Total

No formal

Education

School

Education UG PG Above PG


Expected Count 19.8 102.5 99.0 36.1 29.7 287.0

Residual -1.8 -12.5 9.0 25.9 -20.7

FEMALE Count 16 86 62 0 42 206

Expected Count 14.2 73.5 71.0 25.9 21.3 206.0

Residual 1.8 12.5 -9.0 -25.9 20.7

Total Count 34 176 170 62 51 493

Expected Count 34.0 176.0 170.0 62.0 51.0 493.0

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 84.995a 4 .000

Likelihood Ratio 108.563 4 .000

Linear-by-Linear

Association .002 1 .961


a. 0 cells (.0%) have expected count less than 5. The minimum expected

count is 14.21.



43 | P a g e

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .415 .000

Cramer's V .415 .000

Contingency

Coefficient .383 .000


Above tables shows the statistical values related with the association between gender

and education in selecting FMCG products. Pearson Chi- Square statistic = 84.995a and p <

0.005: ie a very small probability of the observed data under the null hypothesis of no

relationship. The null hypothesis is rejected, since p < 0.05 (in fact p < 0.005). The value of

Pearson’s chi –square test clearly states that there exists a significant inter-relationship

between the dependent and independent variables. The contingency coefficient give s us the

measure of strength of output, if value close to 0, there is no strong correlation between the

two variables, however, if the value ranges between 0.5 and 1, there exists a strong

correlation. .Above table shows that contingency coefficient is 0 .383. So we can therefore

conclude that the there exists a very weak correlation between the independent variables

(education) and the dependent variable (gender).



44 | P a g e

Findings and Suggestions

� Our research found that the most vital attributes which provides better customer

satisfaction in consumer buying behavior for FMCG product is product. It reveals that

people always looking to the product features other than promotion and other variables.

There for the manufactures of FMCG products should be given more focus on quality of

the products.

� This study found that that the reason of brand switching is advertisement. The result also

shows that promotional activities also influence the people in brand switching and 20.9

% respondents say that they want to get the new experiences with new products. So

marketers this should take into consideration in next marketing strategy plan or

marketing campaign to increase customer

�� Study reveals that most of the customers switch to other brands during 2 to 6 months

from them started to use an existing product. It is clear that tats and preference of the

customers are changing in a very speedy manner. 6.3% of respondents are not ready to

change their existing products which are using by them. It is very deficult to retain the

existing customers. So marketers have to change their existing products in package,

shape. colour etc. Customers should feel a positive deference with the products

frequently.

�� The study found that there exists a significant inter-relationship between gender and

income in selecting FMCG products. Pearson Chi- Square statistic = 17.243 and p <

0.005 The contingency coefficient is 0 .184. So we can therefore conclude that the there

exists a very strong correlation between the income and the gender.

�� The study found that there exists a significant inter-relationship between gender and

education in selecting FMCG products. Pearson Chi- Square statistic = 84.995 and p <

0.005 Contingency coefficient is 0 .383. So we can therefore conclude that the there

exists a very weak correlation between the independent variables (education) and the

dependent variable (gender).

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