Customers’ perception, and purchase intention towards FMCG products

produced in Nepal

BY
SakshiKhemka
14030933

A Project work Report Submitted to Pokhara University in partial fulfillment of

the requirements for the degree of
Bachelor of Business Administration-BBA

At the
Apex College
Pokhara University

Kathmandu
August/2016

DECLERATION
I hereby declare that the project work report entitled “customer perception and purchase
intention towards FMCG products produced in Nepal” submitted for the BBA is my original
work and the Project Work Report has not formed the basis for the award of any degree,
diploma, or other similar titles.

Signature

Sakshi Khemka

Date
 CERTIFICATE

This is to certify that the Project Work titled “Consumers perception and purchase intention towards
FMCG product produced in Nepal“ submitted by Sakshi Khemka (41030933) for the partial fulfillment
of the requirements of BBA embodies the bonafide work done by him/her under my supervision.

______________________

Signature of the Supervisor

Name

Date

Name and Signature

In-Charge of Research or PW

Date
 ACKNOWLEDGEMENTS

This report has been prepared for the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA). This report would have not been completed
without precious help from a few people to whom I must extend my sincere gratitude. First
and foremost, I would like to thank my supervisor, Mr. Surendra Mahatho for providing
necessary guidelines for completing this report. I am thankful to him for his continuous
reinforcement and motivation for completing the project successfully. I thank him for his
regular feedback and suggestion to improve the report further.

I would like to thank all the respondents who filled the questionnaire and helped me with the
continuation of the project.

Finally, I would like to thank my family members and friends for uplifting my spirit to
complete the report on time
 Chapter I
INTRODUCTION

1.1 Background

Consumer perception applies the concept of sensory perception to marketing and advertising
.just as sensory perception relates to how human perceive and process sensory stimuli through
their five senses, consumer perception pertained to how individual forms opinions about
companies and the merchandise they offer through the purchases they make. Merchants apply
consumer perception theory to determine how their customers perceive them.

Consumer behavior is the study of individual, group or organization and the processes they
used to select, secure, use, and dispose of products ,services ,experience or ideas to satisfy
needs and the impacts that these processes have on the consumer and society.

Fast-moving consumer’s goods (FMCG) products that are sold quickly and at relatively low
cost. Example: includes non –durable goods such as soft drink, toiletries, over the counter
drugs, processed foods and many other consumables.

FMCG have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs, 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, chocolates candies and cleaning products.

Nepal with the population of around 30 million possesses a huge FMCG industry, which
amounts to more than a billion dollar. This industry is believed to be growing at a very
remarkable pace. while the overall economy of Nepal is growing at the rate of 3% to 4%, the
FMCG sector in the country is growing at a highly yearly rate of over 20%.Inspite of Nepal
being an under-developed, and attributed with almost all the traits of an under-developed
nation like corruption, bribery, scams, political incompetency and many more, has got many
international companies doing business from the region.
Though the profit margin made on FMCG products is relatively small (more so for retailers
than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative
profit on such products can be substantial. FMCG is a classic case of low margin and high
volume business.

Nearly everyone in the developed and developing world uses fast-moving consumer
goods (FMCC) every day. They are the small-scale consumer purchases we make at
the produce stand, grocery store, supermarket and warehouse outlet. FMCG have short
shelf lives, so, while the profit margin on individual FMGG sales is low, the volume of
sales makes up for it. The market for $3.99 orange juice is a lot larger than the market
for $399 juicing machines.

The FMCG marketplace is huge and includes some of the largest companies in the
world – Dole Foods Co., The Coca-Cola Co. (KO) Unilever (UL), General Mills, Inc.
(GIS). As investments, FMCG stocks are a generally low-growth, but safe bets with
predictable margins, stable returns and regular dividends.

FMCG accounts for more than half of all consumer spending, but they tend to be low-
involvement purchases. Consumers are more likely to show off a durable good such as
a new car or beautifully designed smartphone, than wax poetic about a new energy
drink they picked up for $2.50 at the convenience store.

The willingness of a customer to buy a certain product or a certain service is

known as purchase intention. Purchase intentionis a dependent variable that
depends on several external and internal factors. Some of the factors are as
follows: Purchase Decision.

Customer perception refers to the process by which a customer selects,

organizes, and interprets information/stimuli inputs to create a meaningful picture
of the brand or the product. It is a three stage process that translates raw stimuli
into meaningful information.

Consumer perception applies the concept of sensory perception to marketing and advertising.
Just as sensory perception relates to how humans perceive and process sensory stimuli through
their five senses, consumer perception pertains to how individuals form opinions about
companies and the merchandise they offer through the purchases they make. Merchants apply
consumer perception theory to determine how their customers perceive them. They also use
consumer perception theory to develop marketing and advertising strategies intended to retain
current customers -- and attract new ones.

Problem of Statement

The statement of problem is a brief description of the issues that need to be addressed by a
problem solving team and should be presented to them before they try to solve the problem. A
research problem is the main organizing principle guiding the analysis. A research question is
a statement that identifies the phenomenon to be studied. As the customer are not satisfied
with the quality and package of the product and prefer international product over Nepali
product. The major problem of Nepali product is lack of proper marketing of the concern
products. And lack of trust between the companies and customers. We try to answer
following question

What is the consumer perception and purchase intention toward FMCG product produce in
Nepal?

What elements of the FMCG product are more important for consumers in the consumer
purchasing intention?

What is the effect of consumer attitude toward FMCG PRODUCT?

1.3 Research Question

Research question must be based on objectives and theoretical framework. The following will
be the research question.

1What is the relationship between consumer’s attitude and purchase intention?

2 What is the relationship between consumer’s behavior and purchase intention?

 3What is the relationship between packing of product and purchase intention?

4What is the relationship between consumer’s motive and purchase intention?

1.4 Research Objective

Objective is to find out the most important elements of consumer perception and purchase

intention towards FMCG Nepali product. Thus, they are as follow:

 To know the relationship between consumers attitude and purchase intention.

 To know the relationship between consumers behavior and purchase intention.

 To know the relationship between packaging of product and purchase intention.

 To know the relationship between consumers motive and purchase intention.

1.5 Literature Review

Consumer motive
Consumer motive relates to a wide spectrum of wants and needs. Consumer motivation is an internal
state that drives people to identify and buy products or services that fulfill conscious and unconscious
needs or desires. The fulfillment of those needs can then motivate them to make a repeat purchase
or to find different goods and services to better fulfill those needs. Needs could be positive, negative,
utilitarian or hedonic, conscious or unconscious, and accordingly goals are formulated.

Jensen (2011) explains brand loyalty as the way to measure the current number of customers of the

particular brand. It can be measured by two approaches, behavioral and attitudinal. First approach

shows the customer purchase behavior toward brand and the second approach shows their relative

preference for particular brand on others.

Ou, Shih, Chen and Wang (2011)explain brand loyalty as implied promise to repurchase the

meticulous merchandise. It increases the motivation of consumers towards purchasing behavior. They

mentioned that brand loyalty can be increased by building strong customer relationship and

consumer loyalty programs.

Moraga, Parraga and Gonzalez (2008) explain brand loyalty as continual purchasing manners. Brand

loyalty is not a onetime stroke but a continual process. It helps the company in order to get customer

preference, purchase intention and secured profitability. Brand loyalty is the interpreter of company’s

economic performance.

Chi, Yeh and Yang, (2008) collected the data from 267 respondents through questionnaire to find out
the effect of brand loyalty on purchase intention. They proved that there is a positive relationship
between brand loyalty and purchase intention.

Jalilvand, Samiei and Mahdavania (2011) studied the effect of brand loyalty on purchase intention.
Based on 242observations from multiple respondents they verified that brand loyalty has a positive
effect on purchase intention. So we can formulate our hypothesis
Consumer attitude

Consumer attitude towards a product is learned, either directly through self - experience with the
consumption of a product or its service, or indirectly through receiving external information about the
product or its service. The second is that attitude is an antecedent to behavior. Therefore, it becomes
essential to know about the way information is received and the manner in which it is processed, and
the nature of the messages obtained.

Meenaghan (1995) explains brand image in terms of the attitudes of the consumers about the
particular brand which helps to point it and thinking of the buyers in the significant way to make the
product different from others.

Bian and Moutinho (2011) described the phenomenon by using marketing sense to explain it as the
set of statements given to the target market to capture the purchase intentions of the targeted
consumers.

Lee, Lee and Wu (2011) explain the brand image as the overall mind reflection and beliefs about the
particular brand by keeping in mind its unique qualities which make it different from the others

Consumer behavior

The decision making of the consumer is determined by the pre purchase behavior, which is preceded
by the intention to buy/consume and a host of other antecedent factors. Some of these factors are
intrinsic to the consumer like the personal aspects –beliefs/evaluation based attitude towards the
act(purchase),while the extrinsic variables like social aspects- subjective norms and the perceived
/actual behavioral control etc., conditioned within the situational construct, influence the consumer’s
behavioral intention.

This study will show the purchase behavior of the customers that how general public attract to make
purchase of the branded product and also reveal the important aspects which are quite necessary to
capture the purchase intention of the customers. This research helps to categorize that among these
aspects which factors have significant effect on the purchase intention of the patrons. In this
wondrous world where penetration in the market in the presence of competitors is very problematic
and challenging, it is very much important to determine the exact features which the consumer
wants. It will help the marketers to focus on the features of the product that are significant and are
positively correlated with purchase intentions of the customers. The customer driven approach is
applied to find out the perception of users to have an exact idea about preference and desires.

PACKAGING OF PRODUCTS:

Ulrich R. Orth (2009) worked on Packaging Design as resource for the construction of Brand Identity.
A thorough review of the literature on packaging design reveals that there are no meaningful
guidelines for developing holistic packaging design, Shapes, Finishes, Sizes, Images, Typography,
Colors, Impressions, Purchase Intention, and Brand. This research was conducted by collecting
information and data in four stages. First, a review of the branding literature determined a list of
strategically relevant brand impressions for wine. Second, appropriate wine packaging design
elements were identified and a sample of real and representative designs was selected. Third,
professionals in the design and advertising industry rated wine packaging designs on the previously
identified design elements. This research aimed at generating guidelines for managing strategic brand
impressions, namely brand identity created by the wine packaging design.

Wickliffe and Pysarchik (2001)elaborate product attributes as those important features which has
intensive influence on the behavior of the consumers i.e. brand and price. These are the two factors
which cover major areas of the product attributes but there are some other elements of the
attributes like structure, look, colour, weight and quality etc.

Abbott et al, (2009) explain product attributes as the sensory processes of the product its cognitive
features and casual properties it includes the design, technology engineering processes of the
product which form the overall rating of product on the part of consumer. So it shows that product
attributes are those features of brand which make its position in the market which may be strong or
weak and a consumer satisfaction is totally based on the product attributes.

Bian and Moutinho (2011) explained the phenomenon as the expressive features that distinguish the
product from others. Intrinsic and extrinsic are two types of attributes, intrinsic are those information
bundles which influence the product directly and extrinsic are those information bundles which
influence the product indirectly. Attributes of the product is actually the reflection of the company’s
image it consist of the features of the product. It is the features which distinguish from other
products. Attributes play vital role in achieving brand equity. Satisfaction level of the consumers
firmly depends on the attributes. If the consumers are more satisfied they will show interest in the
particular product and make purchases repeatedly.

Bianand Moutinho (2011) studied the purchase behavior of customers that in what way product
attributes influence the customer purchase behavior. They conducted their study in Glasgow and
collected the data from randomly selected supermarkets (n=20) and prove that the positive product
attributes are the significant predictor of purchase intention.

Jung & Bonn (n.d) studied the effect of product attributes on the consumer purchase intention for
that purpose they collected data from the respondents having age 21 or above through
questionnaire. Their study found a significant effect of product attributes on consumer purchase
intention.

1.6 Theoretical Framework

INDEPENDENT VARIABLES DEPENDENT VARIABLE

Consumer’s attitude

Purchase Intention of
FMCG products made
in Nepal

Consumer’s behavior
 Consumer’s motive

Packaging of
product

1.7Hypothesis
Based on the review of literature some variables have been identified as determinant factors
influencing purchase intention .This research tests the null hypothesis to determine the
relationship between the various variables:

HO1: There is no significant relationship between consumer’s attitude and purchase intention
of Nepal made goods

HO2: There is no significant relationship between consumer’s behavior and purchase intention
of Nepal made goods

HO3: There is no significant relationship between consumer’s motive and purchase intention
Nepal made goods

HO4 There is no significant relationship between packaging of product and purchase intention
of Nepal made goods
1.8 Significance of study

Each and every company has to make effective decision to attract the consumer's .The
decision made by the domestic companies should be effective in order to enhance and expand
the product.

The study of consumer behavior helps in understanding how individuals make decision to
spend their available resource like time, money, and effort while purchasing goods and
services. It is a subject that explains the basic question that a normal customer faces –what to
buy, why to buy, when to buy, where to buy, how often to buy, and how they use it.

Consumer behavior is a complex and multidimensional process that reflects the totality of
consumer decision with respect to acquisition, consumption, and disposal of goods and
services. Consumers purchase intention and their behavior reviews the relevant literature on
purchase intention in marketing, and more generally on the intention s-behavior relationship in
social psychology , since purchase intentions are a particular form of the moral general
construct intentions.

In today’s consumer play very important role in the purchase intention of FMCG product
produced in Nepal. The Globalization and MNCS have grown rapidly in the last few years.
This has led to the birth of new generation promotion and competition. The study was
basically focused towards the observation of the operation and performance of local product.
The study with in its scope was tried to find out the new trends promoted by the Nepalese
companies to attract consumers purchase intention. This study has attempted at understanding
the level of customer perception and purchase intention towards FMCG product produced in
Nepal.
1.8.1Research Methodology and procedures
It was presents step by step process about how the study was conducted and how the research
problem was addressed. The research followed simplified procedure with the commonly used
statistical tools for analysis .It provided information about research strategy, research design,
population and sampling and methods of data collection and analysis

1.8.2Research plan and design

This study was conducted with objectives of consumer factors influencing purchase intention
of Nepal made product .Therefore the findings of the study gave information regarding the
determination of purchase decision of FMCG product produce in Nepal.

This study was conducted using survey method. hence, following was the requirement and
nature of the assessment of the study, the survey was conducted by taking response from
different individuals who were involved in purchase intention of Nepal made goods through
questionnaire method .Related secondary data was collected analyzed from literature review
and previous research to verify hypothesis .Self-administered questionnaire was distributed to
the respondents to obtain primary data. The questionnaire was handed face to face. The
research study was quantitative survey research study. Thus the goal of this study was to
examine the relationship between purchase intention behavior of the consumer attitude and
perception towards Nepal made products .The research was completed after the analysis of the
analysis of the collected, result of the analysis of the followed by conclusion and appropriate
recommendations.

1.8.3Population and sampling

Population

All the consumer who was involved in consuming the FMCG product produced in Nepal was
consider as the total population .The research studies the factors influencing the purchase
intention and how the selected factors affect the consumer perception and purchase intention
of FMCG product made in Nepal .
Sample Size

The total sample size is 50 respondents. The sample includes consumer, who are working in
different organization, business person, students, teachers are also included. For data
collection, one of non-probabilistic sampling techniques i.e., convenience sampling was used.
Convenience sampling was appropriate for this research because this technique is the best way
to reach the respondents; similarly due to the resource constraints .The sampling technique
generally assume a homogeneous population that means the members of the population have
similar characteristics.

1.8.4Methods of the data collection and analysis

Primary data was collected through a self-administered questionnaire. Relevant questionnaire
will be prepared and distributed among the respondents .The respondents was the local
consumers consuming FMCG product made in Nepal and local consumer consuming
international product. In order to collect reliable and valid information, relevant questionnaire
will be prepared and distributed among the respondents who are the consumer of the FMCG
product.

Research design is a master plan specifying the methods and procedures for collecting and
analyzing the needed information. In order to conduct this research certain model and design
is used. Since the primary objective of this research was to analyze the relationship between
customer’s perception and purchase intention towards FMCG product produced in Nepal, the
research study specifically used correlation research design. To measure the level of purchase
intention, variables such as consumer attitude, consumer behavior consumer motive and
packaging of product were used.

To start with the study, first concept was built. Then relevant literatures on the topic were
reviewed and theoretical framework was constructed with the help of literature review. After
that data were collected from the respondents who are using internet banking services.
Collected data were analyzed and finally presented and interpreted. The research model is
presented below

Concept Building

Literature Review

Data Gathering

Data Analysis
and Presentation

Interpretation
Conclusion and
Recommendation

Nature of data

Data used in the research study were primary in nature. Data were collected by providing them
questionnaire through hardcopy.

Data collection procedure

A primary method of data collection with the help of structured close ended questionnaire was
used for this study. Entire questionnaire consisted of six parts namely, personal information,
consumer attitude, consumer behavior, consumer motive packaging of product and purchase
intention. All the parts used Likert scale which is more common in present and past.

After finalizing the questionnaire, word processor was used to develop the questionnaire to get
it in printed form and distributed among the respondents for data collection.

Analysis plan

Analysis plan is a critical component for research study. Data analysis plan clearly identifies
the specific statistical tools used to examine the research questions and test hypothesis. Data
collected from the respondent were categorized and summarized. Data were mainly arranged
in spreadsheet and SPS. Tables, charts and figures were used for presenting data. In order to
draw tables, charts and figures, spreadsheet and MS-word were used.

Descriptive statistics like percentage and mean were used mainly as necessary. The major
objective of the research was to test the relationship between customer’s satisfaction and
Internet Banking services in Nepalese private commercial banks. SPSS software was used for
descriptive analysis, correlation analysis, reliability test, and regression analysis and test
hypothesis.

1.9 Limitation of the study

This study is not free from limitation which is listed below:

1. This study was conducted with specific sample size and cannot represent the
preference of whole population.
 2. The primary data collected through questionnaire was assumed to represent the
population.
3. Theoretical part of the research was based on available literature only.
4. Study was dependent upon the response given by the consumer.
5. Limited scholarly works on the subject available to the researcher.
6. There might be chance of response error because of factors such as unawareness of the
respondents, hesitation of respondents, misinterpretations etc.

10. References
Porter ME, Vanderlinde C. toward a new concept of the environment competitive relationship.
Journal of Economic Perspectives.1995; 9:97-118.

Underwood, R. L. (2003). The communicative power of product packaging: creating brand identity via
lived and mediated experience. Journal of Marketing Theory and Practice, Winter, 62-76.

Solomon et al., 2010, p 276).

. Wells, L. E., Farley, H., & Armstrong, G. A. (2007).The importance of packaging design for own-label
food brands. International Journal of Retail & Distribution Management, 35 (9), 677-690.

Kumar NA, Joseph J (2014) A Study on Consumer Behavior towards Fmcg Products among the Rural-
Suburban Hhs of Ernakulam. J Glob Econ 2: 127. doi:10.4172/2375-4389.1000127

Jensen, J, M., (2011). Consumer loyalty on the grocery product market: an empirical application of
Dick and Basu’s framework, journal of consumer marketing, 28(5), 333-343.

Moraga, E, T., Parraga, A, Z, v., Gonzalez, J, Z., (2008). Customer satisfaction and loyalty: start with the
product, culminate with with the brand, jornal of consumer marketing, 25(5), 302-313.

Ou, W, M., Shih, C, M., Chen, C, Y., Wang, K,C., (2011). Relationship among customer loyalty
programs, service quality, relationship quality and loyalty an emerical study, chinease management
studies, 5(2), 194-206

Chi, H, K., Yeh, H, R., Yang, T, Y., (2009). The impact of brand awareness on consumer purchase
intention: The mediating effect of perceived quality and brand loyalty, The journal of international
management studies, 4(1), 135-144.
Jalilvand, M, R., Samiei, N., Mahdavinia, S, H., (2011). The effect of brand equity components on
purchase intention, International business and management, 2(2), 149-158.

Wickliffe, V, P., Pysarchik, D, T., (2001). A look at product attributes as enhancers of group integration
among US and Korean consumers, International Journal of Retail & Distribution Management, 29(2),
99-109.

Abbott, M., Holland, R., Giacomin, J., Shackleton, J., (2009). Changing affective content in brand and
product attributes, Journal of Product & Brand Management, 18(1), 17-26

Bian, X., Moutinho, L., (2011). The role brand image, product involvement, and knowledge in
explaining consumer purchase behavior of counterfeits, European Journal of Marketing, 45(1/2), 191-
216.

Meenaghan, T., (1995) The role of advertising in brand image development, Journal of Product &
Brand Management, 4(4), 23-34.

Lee, H, M., Lee, C, C., Wu, C, C., (2011). Brand image strategy affects brand equity after M&A,
European Journal of Marketing, 45(7/8), 1091-1111.
Contents
1 INTRODUCTION........................................................................................................................................2
2Problem of Statement...............................................................................................................................3
3Research Question.....................................................................................................................................3
4Research Objective....................................................................................................................................4
5Literature Review......................................................................................................................................4
6Theoretical Framework.............................................................................................................................6
7Hypothesis.................................................................................................................................................6
8Significance of study..................................................................................................................................7
8.1Research Methodology and procedures.................................................................................................7
8.2Research plan and design.......................................................................................................................8
8.3Population and sampling........................................................................................................................8
8.4Methods of the data collection and analysis..........................................................................................9
9Limitation of the study..............................................................................................................................9
10References.............................................................................................................................................10
 CHAPTER II
Data Analysis
2.1 Demographic Analysis
This section has presented the demographic characteristics of the respondents of the survey
questionnaire. Results of participants’ gender, age, marital status and education have been
discussed in this section.

2.1.1 Gender

Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 24 48.0 48.0 48.0

FEMALE 26 52.0 52.0 100.0

Total 50 100.0 100.0

Figure 2.1. Explains the percentage of male and female. Out of 50 respondents, 24 were male
and 26 were female. 48% of the respondents were male while 52% were female. The result
shows that there were more males than females respondents
 2.1.2 Age

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid Below 20 years 6 12.0 12.0 12.0

20-40 Years 29 58.0 58.0 70.0

41-60 Years 13 26.0 26.0 96.0

Others 2 4.0 4.0 100.0

Total 50 100.0 100.0

ty

sFigure 2.2 explains the portion of different age group of respondents. Out of 50 respondents,
6 were between age group below which represents 12%, 29 were between the age group 20-40
which represents 58%, 13 were between the age group 41-60 which represents 26%, 2 were
above than 60 which represents 4% .The result showed the majority of the respondents were
from 20-40 age groups.
2.1.3 Marital Status

Martial_status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 18 36.0 36.0 36.0

Married 32 64.0 64.0 100.0

Total 50 100.0 100.0

Figure 2.3 shows the percentage of respondents categorized on the basis of marital status. Out
of 50 respondents 36% of the respondents were single, 64% were married.
2.1.4 Education

AQ

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduation 29 58.0 58.0 58.0

Post Graduation 10 20.0 20.0 78.0

+2 Level 8 16.0 16.0 94.0

Others 3 6.0 6.0 100.0

Total 50 100.0 100.0

Education had been categorized into four different group’s i.e., Graduation and Post
Graduation ,+2 Level and others . Figure 2.4 represents the proposition of respondents
 according to education level. 58% were Graduated, 20% were Post Graduated, 16% were+2
level and 6% were others

2.2 Descriptive Statistics

This section represents descriptive statistics of all the variables taken into consideration in this
study. It gives an idea about the level of satisfaction of all independent variables included to
measure the overall Consumers perception and purchase intention towards FMCG product
produced in Nepal. To find out the overall ‘Consumers perception and purchase intention
towards FMCG product produced in Nepal’ four different variables were used on the basis of
literature reviewed.

2.2.1 Descriptive Statistics of Reliability

Table:2.2.1 Descriptive Statistics of reliability

Opinion statements N Mean Std. Deviation

I prefer buying of the FMCG product
produced in Nepal 50 3.84 1.11

I like FMCG Product Produced in

Nepal 50 3.82 1.024

I prefer repeatedly purchase of FMCG

product
50 4.14 .969

I prefer FMCG product on regular

basis
50 4.48 .973

I prefer FMCG product to fulfill regular

50 4.5 1.092
requirement
CA 50
 Table 2.1 describes the variable reliability which includes five attributes to explain the
consumer’s perception and purchase intention towards FMCG product produce in Nepal.
Among the five attributes consumer like FMCG product produced in Nepal has the lowest
mean of 3.82 with standard deviation 1.024. I prefer FMCG product to fulfill my regular
requirement has the highest mean of 4.5 with standard deviation 1.092 .This indicates that
majority of respondents are neutral towards FMCG product produced in Nepal.

Table:2.2.2 Descriptive Statistics of reliability

Opinion statements N Mean Std. Deviation

I normally buy FMCG product
produced in Nepal because of taste 50 3.38 1.027

I normally buy FMCG Product

Produced in Nepal because of price 50 3.40 1.106

I normally purchase FMCG product

Produced in Nepal because of income
50 3.16 1.184

I normally purchase FMCG product

Produced in Nepal because of easy
50 4.28 1.195
availability

I normally purchase FMCG product

Produced in Nepal because of favorite 50 3.72 1.178
product
CB 50
 Table 2.2 describes the variable reliability which includes five attributes to explain the
consumer’s perception and purchase intention towards FMCG product produce in Nepal.
Among the five attributes Consumer normally prefer FMCG product produced in Nepal
because of income has the lowest mean of 3.16 with standard deviation 1.184. I prefer FMCG
product produced in Nepal because of easy availability has the highest mean of 4.28 with
standard deviation 1.195 .This indicates that majority of respondents are neutral towards
FMCG product produced in Nepal.

Table:2.2.3 Descriptive Statistics of reliability

Opinion statements N Mean Std. Deviation

I prefer FMCG product to fulfill my
wants and desire 50 4.6 1.14

I prefer branded FMCG Product

50 4.36 1.425

The durability of the product

influences the purchase of FMCG
50 4.62 1.193
Produced

I Prefer Multinational FMCG product

more than Nepal made products
50 4.32 1.34

CM
50
 Table 2.3 describes the variable reliability which includes four attributes to explain the
consumer’s perception and purchase intention towards FMCG product produce in Nepal.
Among the four attributes Consumer normally prefer Multinational FMCG product more than
Nepal made product has the lowest mean of 4.32 with standard deviation 1.34. The durability
of the product influences the purchase of FMCG product has the highest mean of 4.62 with
standard deviation 1.193 .This indicates that majority of respondents are neutral towards
FMCG product produced in Nepal.

Table:2.2.4 Descriptive Statistics of reliability

Opinion statements N Mean Std. Deviation

The color of the product influence the
purchase of FMCG product 50 3.74 1.208

The texture of the product influence

the purchase of FMCG product 50 4.02 1.151

The shape of the product influence the

purchase of FMCG product
50 3.9 1.129

The design of the product influence

the purchase of FMCG product
50 4.32 1.185

The attractive packaging influence

50 4.64 1.208
the purchase of FMCG product
Pp 50
 Table 2.4 describes the variable reliability which includes five attributes to explain the
consumer’s perception and purchase intention towards FMCG product produce in Nepal.
Among the five attributes Consumer normally prefer color of product has the lowest mean of
3.74 with standard deviation 1.208. The attractive packaging influences the purchase of
FMCG product has the highest mean of 4.64 with standard deviation 1.208 .This indicates that
majority of respondents are neutral towards FMCG product produced in Nepal.

Table:2.2.5 Descriptive Statistics of reliability

Opinion statements N Mean Std. Deviation

The price of the product influence the
purchase of FMCG product 50 4.34 1.080

The quality of the product influence

the purchase of FMCG product 50 5.14 .7827

The packaging of the product

influence the purchase of FMCG
50 4.64 1.120
product

The promotion of the product

influence the purchase of FMCG
50 4.76 1.001
product

The branding of product influence

50 4.68 1.185
the purchase of FMCG product
PI 50
Table 2.25 describes the variable reliability which includes five attributes to explain the
consumer’s perception and purchase intention towards FMCG product produce in Nepal.
Among the five attributes The quality of product influences the purchase intention of FMCG
product has the highest mean of 5.14 with standard deviation 0.7827 The price of the product
influences the purchase of FMCG product has the lowest mean of 4.34 with standard deviation
1.080 .This indicates that majority of respondents are neutral towards FMCG product
produced in Nepal.

2.3 Validity and Reliability

Cronbach’s alpha was developed by Lee Cronbach in 1951 to provide a measure of the
internal consistency of a test or scale; it is expressed as a number between 0 and 1. Internal
consistency describes the extent to which all the items in a test measure the same concept of
construct and hence it is connected to the inter-relatedness of the items within the test. Internal
consistency should be determined before a test can be employed for research or examination
purpose to ensure validity.

Table 2.6: Cronbach’s Alpha Reliability Index

SN Variables Cronbach's Alpha No. of Items

1 Consumer attitude .701 5

2 Consumer behavior .821 5

3 Consumer motive .654 4

4 Packaging of product .905 5

5 Purchase intention .772 5

The alpha coefficient for the 5 items of Reliability is 0.701. The score on the test suggest that
the items in the items of Reliability have high degree of internal consistency and they are
correlated to each other.
 Correlations

CA CB CM PP PI
*
CA Pearson Correlation 1 .290 .042 -.063 .090

Sig. (2-tailed) .041 .772 .663 .534

N 50 50 50 50 50
CB Pearson Correlation .290* 1 .074 .084 .078
Sig. (2-tailed) .041 .610 .562 .591
N 50 50 50 50 50
**
CM Pearson Correlation .042 .074 1 .547 .641**
Sig. (2-tailed) .772 .610 .000 .000
N 50 50 50 50 50
**
PP Pearson Correlation -.063 .084 .547 1 .600**
Sig. (2-tailed) .663 .562 .000 .000
N 50 50 50 50 50
PI Pearson Correlation .090 .078 .641** .600** 1

Sig. (2-tailed) .534 .591 .000 .000

N 50 50 50 50 50

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

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

Table 2.7: Correlation table.

Hypothesis testing result

H1: There is a significant relationship between consumer attitude and purchase intention.
The Pearson correlation test indicates a moderate relationship between consumer attitude and
purchase intention with R= p=, that signifies the correlation at 1% significant level. So, the H1
is accepted.

H2: There is a significant relationship between consumer behavior and purchase intention

The Pearson correlation test indicates a moderately strong relationship between consumer
behavior and purchase intention with R=, p, that signifies the correlation at 1% significant
level. So, the H2 is accepted.

H3: There is a significant relationship between consumer motive and purchase intention.

The Pearson correlation test indicates a weak relationship between consumer motive and
purchase intention with R= p=, that signifies the correlation at 5% significant level. So, the H3
is accepted.

H4: There is a significant relationship between packaging of product and purchase intention.

The Pearson correlation test indicates a moderately strong relationship between packaging of
product with R=, p=, that signifies the correlation at 1% significant level. So, the H4is
accepted.

2.5 Regression analysis

 Model Summary

Model Change Statistics

Adjusted R Std. Error of the R Square F

R R Square Square Estimate Change Change df1 df2 Sig. F Change
a
1 .713 .508 .465 .55238 .508 11.636 4 45 .000
Dimension 0

a. Predictors: (Constant), PP, CA, CB, CM

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 14.202 4 3.550 11.636 .000a

Residual 13.731 45 .305

Total 27.933 49

a. Predictors: (Constant), PP, CA, CB, CM

b. Dependent Variable: PI
Table 2.8: Anova Table

Model Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics

B Std. Error Beta t Sig. Tolerance VIF

1 (Constant) 1.527 .650 2.348 .023

CA .107 .119 .099 .900 .373 .901 1.109

CB -.012 .095 -.014 -.129 .898 .905 1.105

CM .366 .105 .435 3.472 .001 .695 1.440

PP .278 .095 .369 2.930 .005 .688 1.454

a. Dependent Variable: PI

Table 2.9:coefficient Table

The model summary shows that R= 0.713 which shows a positive strong relationship between
dependent and independent variable. Likewise the ANOVA table shows Frequency=11.36and
P-value=0.000. From the coefficient table we know that there is 10.7% effect of consumer
attitude, 12% effect of consumer behavior,36.6% of consumer motive and 27.8% packaging
of product towards FMCG product produced in Nepal

2.6 Main Findings and Discussion

Demographic of respondents

 After taking the survey of 50 respondents we observe that there are48 % of male and
52% of female which shows high involvement of female
.
 As per the age group, age group below 20 represents 12%, 20-40 years represents 58%,
40-60years represents 26%, and others represents 4% . The result showed that the
majority of respondents were from 20-40 age groups.

 The respondents were also categorized in accordance to marital status which showed
that 36% were single, 64% were married. The result showed that the majority of
respondents were married.
 Education level was also a category. 58% were graduated, 20% were post graduation,
16% were +2 level and 6% were others. The result showed that the majority of
respondents were graduated.
Result of Hypothesis testing

Hypothesi Statement Result

s
H1 There is a significant relationship between Accepted
consumer attitude and purchase intention
towards FMCG product produced in Nepal.

H2 There is a significant relationship between Accepted

consumer behavior and purchase intention
towards FMCG product produced in Nepal.

H3 There is a significant relationship between Accepted

consumer motive and purchase intention
towards FMCG product produced in Nepal.

H4 There is a significant relationship between Accepted

packaging of product and purchase intention
towards FMCG product produced in Nepal.
 Chapter III
Summary and Conclusion

3.1 Summary of the Findings

Qualitative and quantitative methods were used to measure the consumer perception and
purchase intention towards FMCG product produce in Nepal. The findings are listed below:

 On the basis of literature review various independent variables has been identified to
measure the purchase intention towards FMCG product produced in Nepal. The
independent variables identified for measuring purchase intention are consumer’s
attitude, consumer behavior, consumer motive, packaging of product.

 All the five attributes of Reliability calculates its value above 1 in 6point Likert scale
indicating that customers attitude affects the purchase intention of FMCG product
produced in Nepal.

 All the five attributes of customers behavior affects the purchase intention of FMCG
product produced in Nepal. calculates its value above 1in 6point Likert scale indicating
that customers behavior with purchase intention
.

 All the four attributes of consumer motive calculates its value above 1 in 6 point Likert
scale indicating that customers motive effects the purchase intention of FMCG product
produced in Nepal.

 All the five attributes of packaging of product calculates its value above 1 in 6 point
Likert scale indicating that packaging of product influence the purchase intention
towards FMCG product produced in Nepal.
 There are 19items under purchase intention towards FMCG product produce in Nepal,
it measures 0.701 alpha coefficients. The test score suggest that items have high degree
of internal consistency and they are correlated.

 The Cronbach’s Alpha consumer attitude Index satisfies the reliability and validity test.
Literature review of previous studies also indicated that these variables played
significant role in measuring purchase intention towards FMCG product produced in
Nepal.

 From the hypothesis testing done between consumer perception and purchase intention
of FMCG product produced in Nepal the considered independent variables it was
found that all the considered independent variables had significant relationship with
dependent variable.
3.2 Conclusion
Internet adoption among Nepalese has been rapidly increasing over the last one decade.
Nepalese product have also risen to the occasion by offering new channels of delivery to its
customers. But proportionately Nepalese customers of FMCG product are less than the
Multinational product. It has been observed that dissatisfaction is one of the important reasons
for the low purchase of Nepal made product. So this study made an attempt to measure the
customer perception and purchase intention towards FMCG product produced in Nepal.

It has been tried to identify the important factor that will affect the purchase intention of
FMCG product produced in Nepal. The qualitative analysis of the model confirmed that the
factors identified by the researcher namely consumer attitude, consumer behavior, consumer
motive, and packaging of product

Literature review of the previous studies indicated that these variables played significant role
in measuring customer satisfaction of internet banking users. Therefore, it concluded that the
first objective of the study has been successfully achieved.

From the finding of this study, it can be concluded that the purchase intention are directly
affected by the four independent variables namely consumer attitude ,consumer behavior
,consumer motive, packaging of product