FMCG Placed on those facts, it cannot

FMCG (Fast moving consumer goods) refer to
products of everyday use which are used directly by the consumer. Pakistan FMCG
sector has a market size around Rs: 450 Billion in 2016. Consumer buying
decision is determine by the pre purchase behavior.

Customer
loyalty is more difficult in Fast Moving Consumer Goods (FMCG) companies
because consumers move rapidly from one product to another. This is the
challenging task for the companies to make customers loyal for long-term
survival and profitability of the firm. Usually brand Managers of these companies’
efforts and find the ways to attract the new customers and to retain the
existing customers also. Customer loyalty remains an important as discussing
topic in this literature with lot of proposed moderating, mediating, and
independent variables.

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We
have selected following FMCG products for this study:

·        
Milk

·        
Cooking Oil

·        
Bread

 

1.1             
Problem Statement

·        
What are the
factors considered by consumers while purchasing FMCG Goods?

·        
Why have to
spend more money for branded product?

 

1.2             
Background, Objectives and Significance of the Study

Objective

·        
To know the
factors which are influencing the decision of consumer regarding branded or
non-branded products.  

·        
To
analyze factors or variables, which contribute
more in loyalty of consumer in FMCG sector.

·        
To determine the
age, gender and income level of consumers affecting their purchasing decision.

Significance of the Study

·        
Can be helpful for
entrepreneur to launched product into the market

·        
Can be helpful
in creating awareness in people about branded or non-branded products of FMCG.

1.3             
Outline of the Study

·        
The project has
a very wide scope, because it contains important information which is required
by Branded companies.

·        
Recognizing the
importance of consumer preferences, companies must first explore and understand
what these preferences give categories.

·        
This leads to a
targeted approach to guarantee the approval of the target market and eventually
lead to their success of the brand and the company is working out each request.

 

Limitations of the Study

·        
Research is
restricted to Karachi only.

·        
Less time was
available.

 

Key Terms

·        
Quality

·        
Taste

·        
Healthy / Hygiene

·        
Price

·        
Packaging

·        
Accessibility /
Availability

·        
Brand
Consciousness

·        
 

LITERATURE
REVIEW

Adelina &
Morgan (2007) conclude that Packaging could be treated as one of the most
valuable tools in today’s marketing communications; Packaging has an important
impact on consumers buying behavior. The impact of packaging and its elements
can impact the consumer’s purchase decision.

Packaging acts
multidimensional functions. It offers knowledge about the product and
organization, a technique to communicate with consumers and safeguard to the
quality of product (Silayoi & Speece, 2007).

Consumers prefer
the product quality after they purchased their desirable packaged product.
Placed on those facts, it cannot be stated that there is a 100% equal
connection amongst good packaging and good product quality, still there is a
positive opinion and trend about well-designed package presents high product
quality. (Stravinskien?, Jurgita, R?telion?, Aušra, Butkevi?ien?, &
Vitalija, 2008) 

According to
Rita Kuvykaite1 (2009) the study reveals the self-service and changing
consumers’ lifestyle having the ultimate effect on consumer choice.

Bashir and Malik
(2009) have opinion that consumers are price conscious that’s common now days
in our society. People are almost behaving rationally due to the benefits of
cost, Ahmetoglu et al. (2010) concludes that advertisement have a convincing
power and having a motivating tool to persuade the audience including
listeners, readers and viewers so that they buy products or services

Abideen and
Saleem (2011) say that advertisement has positive effects on the consumer’s behavior;
Flow of advertisement change the consumer’s buying decision.

Rasool, et al
(2012) emphasized that brands advertisement play a vital role to stimulate the
consumers to buy the same brands, it enhances the performance of any business
and its image among the rival market.

 Promotion of the product is very effective on
those consumers who are traveling via tangential route and this can stimulate
and guide the consumer’s for switching one brand to another brand Chakrabortty,
et al. (2013)

The consumers
purchase more quantity of the products, after looking a well-labeled product.
Therefore labeling influences the consumer buying behavior, but there are some
other factors also, which influence the consumer buying behavior (Saeed, Lodhi,
Rauf, Rana, Mahmood & Ahmed, 2013).

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). 
 

Rajasekaran, B
and Saravanan, P. A. (2014) 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.

Awan and Arif
(2015) stated that the use of celebrity endorsement in media advertisement
attracts the customers. Awan and Hassan (2015) say that SMS marketing is a new
tool of introducing products and services and attracting new customers.

Misbah Ehsan,
Samreenlodhi (2015) stated that attractive packaging and right tone of colors
that delivers clearly the message of product then it will influence consumer
buying behavior and consumer will purchase that product. Packaging material can
change the overall perception of consumer regarding to the product quality.

Research
Gap filled by this research

The gap which
will be filled by this research will be all about the Empirical study of consumer
buying behavior towards international brands in FMCG segment of Pakistan. And also
fulfilling all the objectives related to this study which is to know the
factors that influences consumer preference while selecting”brand to determine the
age, gender and income level of consumers affecting their purchasing decision.

 

 

RESEARCH
METHODOLOGY

In our research
we have collected data from primary sources through self-structured
questionnaire which is used to collect data from our respondents. Our sample
size is 100. For the analysis of data we have used SPSS software to see the consumer
buying behavior towards branded products in FMCG sector of Pakistan.

 

FINDINGS

 

Case
Processing Summary

 

N

%

Cases

Valid

100

100.0

Excludeda

0

.0

Total

100

100.0

a.
List wise deletion based on all variables in the procedure.

 

Case processing summary simple show the any missing
data of any respondent input in SPSS.100 % means all respondent fill all the
required fields.

 

Reliability
Statistics

Cronbach’s
Alpha

N of
Items

.720

8

 

According to the
reliability shown in the above table the analysis performed is consistent,
accurate and reliable. It shows that the respondents have answered all the
questions correctly and the respondents are fair and unbiased in providing
their response to the questions asked in the questionnaire.

Reliability of
Questionnaire = 0.72 or 72%

 

The cronbach’s
alpha show the internal consistency of all 8 items. The rule of thumb of
cronbach’s alpha is minimum 0.6 and maximum is 0.9. In this research the
cronbach’s alpha figure is 0.720 which is acceptable.  

 

Correlations

HOW MANY TIMES DO YOU PURCHASE IN A WEEK

DUE TO QUALITY

DUE TO TASTE

DUE TO HEALTHY/ HYGIENE FOOD

DUE TO PRICE

DUE TO PACKAGING

DUE TO ACCESSIBILITY/ AVAILABILITY

DUE TO BRAND CONSCIOUSNESS

HOW MANY TIMES DO YOU PURCHASE IN A WEEK

Pearson Correlation

1

Sig. (2-tailed)

N

100

DUE TO QUALITY

Pearson Correlation

.082

1

Sig. (2-tailed)

.415

N

100

100

DUE TO TASTE

Pearson Correlation

.137

.403**

1

Sig. (2-tailed)

.174

.000

N

100

100

100

DUE TO HEALTHY/ HYGIENE FOOD

Pearson Correlation

.233*

.369**

.268**

1

Sig. (2-tailed)

.020

.000

.007

N

100

100

100

100

DUE TO PRICE

Pearson Correlation

.123

.046

.299**

.127

1

Sig. (2-tailed)

.224

.649

.002

.208

N

100

100

100

100

100

DUE TO PACKAGING

Pearson Correlation

.169

.275**

.378**

.487**

.161

1

Sig. (2-tailed)

.092

.006

.000

.000

.109

N

100

100

100

100

100

100

DUE TO ACCESSIBILITY/ AVAILABILITY

Pearson Correlation

.005

.276**

.331**

.160

.460**

.363**

1

Sig. (2-tailed)

.957

.006

.001

.113

.000

.000

N

100

100

100

100

100

100

100

DUE TO BRAND CONSCIOUSNESS

Pearson Correlation

.310**

.246*

.293**

.331**

.284**

.395**

.143

1

Sig. (2-tailed)

.002

.013

.003

.001

.004

.000

.155

N

100

100

100

100

100

100

100

100

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

 

Variables
Entered/Removeda

Model

Variables Entered

Variables Removed

Method

1

DUE TO BRAND CONSCIOUSNESS, DUE TO
ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE TO HEALTHY/ HYGIENE FOOD,
DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGINGb

.

Enter

 

a. Dependent Variable: HOW MANY TIMES DO
YOU PURCHASE IN A WEEK

b. All requested variables entered.

 

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the
Estimate

1

.353a

.125

.058

.98637

 

a. Predictors: (Constant), DUE TO BRAND
CONSCIOUSNESS, DUE TO ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE TO
HEALTHY/ HYGIENE FOOD, DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGING

 

Interpretation

R is equal to 0.353 and R Square is
12.5% where Std. Error of the estimate is 0.98637.

In this model the value of r 0.353 shows
the weak (positive) linear relationship between variables.

 

Analysis

12.5% of all variables has an impact on
consumer buying behavior towards FMCG products.

 

 

ANOVAa

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

12.731

7

1.819

1.869

.084b

Residual

89.509

92

.973

 

 

Total

102.240

99

 

 

 

 

a. Dependent Variable: HOW MANY TIMES
DO YOU PURCHASE IN A WEEK

b. Predictors: (Constant), DUE TO
BRAND CONSCIOUSNESS, DUE TO ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE
TO HEALTHY/ HYGIENE FOOD, DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGING

Interpretation

The RSS is 89.5%, degrees of freedom is 7, Mean
square is 1.819,F calculated is 1.869.

 

Coefficientsa

Model

Unstandardized
Coefficients

Standardized
Coefficients

T

Sig.

B

Std. Error

Beta

1

(Constant)

1.817

.954

 

1.904

.060

DUE TO QUALITY

-.063

.217

-.033

-.289

.773

DUE TO TASTE

.069

.178

.045

.385

.701

DUE TO HEALTHY/ HYGIENE FOOD

.176

.136

.152

1.292

.200

DUE TO PRICE

.079

.148

.063

.532

.596

DUE TO PACKAGING

.016

.138

.015

.118

.906

DUE TO ACCESSIBILITY/ AVAILABILITY

-.130

.169

-.094

-.772

.442

DUE TO BRAND CONSCIOUSNESS

.226

.105

.245

2.158

.034

 

a. Dependent Variable: HOW MANY TIMES
DO YOU PURCHASE IN A WEEK

 

x

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