FACTORS INFLUENCING ON PURCHASE DECISION OF FAST MOVING

CONSUMER GOODS IN KATHMANDU

BY:
MR. JENIJ TANDUKAR
LUC Registration No: LC00015000705

A Graduate Research Report submitted in partial fulfillment of the requirements for

the degree of

MASTER OF BUSINESS ADMINISTRATION

At the
Lincoln International College of Management and IT
Lincoln University College
Faculty of Business and Accountancy

Kathmandu, Nepal
March, 2022
 RECOMMENDATION

This is to certify that the Graduation Research Project Report

Submitted by:
MR. JENIJ TANDUKAR

Entitled:

FACTORS INFLUENCING ON PURCHASE DECISION OF FAST MOVING

CONSUMER GOODS IN KATHMANDU

Has been prepared as approved by this program in the prescribed format of the Faculty of
Business and Accountancy, Lincoln University College. This Graduation Research Project is
forwarded for examination.

Graduate Research Project Supervisor

Mr. Brihat Singh Boswa

………………………..
Date:

i
 CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for acceptance by the
LINCOLN INTERNATIONAL COLLEGE OF MANAGEMENT AND IT, Lincoln University
College, a Graduation Research Project (GRP) report submitted by SABA FIRDOUS
KHATUN entitled “FACTORS INFLUENCING ON PURCHASE DECISION OF FAST
MOVING CONSUMER GOODS IN KATHMANDU”, in partial fulfillment of the
requirements for the award of the degree of Master in Business Administration of Lincoln
University College.

……………………..

GRP SUPERVISOR

BRIHAT SINGH BOSWA

……………………..

EXTERNAL EXAMINER

NAME:

……………………….

GRADUATE RESEARCH COMMITTEE CHAIRMAN

NAME:

…………………….

DIRECTOR, LINCOLN INTERNATIONAL COLLEGE OF MANAGEMENT & IT

NAME:

ii
 DECLARATION OF AUTHENTICITY

I, JENIJ TANDUKAR, declare that this GRP is my own original work and that it has fully
and specifically acknowledged wherever adapted from other sources. I also understand that if
at any time it is shown that I have significantly misrepresented material presented to Faculty
of Business and Accountancy, Lincoln University College, any credits awarded to me on the
basis of that material may be revoked.

SIGNATURE:…………….

NAME: JENIJ TANDUKAR

DATE:

iii
 ACKNOWLEDGEMENTS

The Gradate Research Project entitled “FACTORS INFLUENCING ON PURCHASE

DECISION OF FAST MOVING CONSUMER GOODS IN KATHMANDU” has been
submitted to Lincoln University College for the partial fulfillment of the requirements for the
degree of Master of Business Administration.

I express my sincere gratitude to Mr. Brihat Singh Boswa for his kind guidance, instructions
and cooperation. I further extend my thanks to Lincoln University College for encouraging
the students on research-based activities. Also, I would like to express my thanks to my aunt
Manisha Maharjan for her support and guidance to complete this research project.

I would also like to express my gratitude towards all the respondents who cooperated in
filling up my questionnaire and responding to my queries without any hesitation.

I am also very thankful and grateful towards my family, colleagues and authorities of school
of management for their support, encouragement, and valuable suggestions as well as for the
generosity and co-operation for the completion of this research.

Thank you,

Jenij Tandukar

iv
 TABLE OF CONTENTS

ACKNOWLEDGEMENT............................................................................................................i

LIST OF TABLES.......................................................................................................................v

LIST OF FIGURES....................................................................................................................vi

LIST OF APPENDIX................................................................................................................vii

ABBREBIATION.....................................................................................................................viii

ABSTRACT...............................................................................................................................ix

CHAPTER I.................................................................................................................................1

INTRODUCTION.......................................................................................................................1

1.1 Background........................................................................................................................1

1.2 Statement of Problem.........................................................................................................2

1.3 Objectives...........................................................................................................................3

1.4 Significance of the study....................................................................................................3

1.5 Research Hypothesis..........................................................................................................4

1.6 Limitations of the study.....................................................................................................5

CHAPTER II................................................................................................................................6

Review of LITERATURE............................................................................................................6

2.1 Review of Thematic Literature..........................................................................................6

2.2 Review of Empirical Literature..........................................................................................8

2.3 Research Gap....................................................................................................................20

2.4Theoretical Framework.....................................................................................................21

CHAPTER III............................................................................................................................25

RESEARCH METHODOLOGY..............................................................................................25

v
 3. 1 Data Need Assessment....................................................................................................25

3.2 Data Sources.....................................................................................................................25

3.3 Data Collection Technique...............................................................................................25

3.3.1 Secondary Data..........................................................................................................25

3.3.2 Primary Data..............................................................................................................25

3.4 Data Collection Tools.......................................................................................................26

3.4.1 Secondary Data Collection........................................................................................26

3.4.2 Primary Data Collection............................................................................................26

3.5 Processing and Analysis of Data......................................................................................26

3.5.1 Processing Operation.................................................................................................26

3.5.2 Analysis of Data........................................................................................................26

CHAPTER IV............................................................................................................................27

RESULTS AND DISCUSSION.................................................................................................27

4.1 Demographic profile of respondents................................................................................27

4.1.1 Gender of the respondents.........................................................................................27

4.1.2 Age group of respondents..........................................................................................28

4.1.3 Education level of respondents..................................................................................28

4.1.4 Income Level of respondents.....................................................................................29

4.2 Descriptive Statistics........................................................................................................29

4.2.1 Factors considered by respondents while buying FMCG goods...............................30

4.2.2. Spending while buying FMCG products..................................................................32

4.2.3 Factors for switching brand.......................................................................................32

4.3 Descriptive Analysis.........................................................................................................33

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 4.3.1 Relationship between gender and overall factors influencing purchase decision of
FMCG products..................................................................................................................33

4.3.2 Relationship between age and overall factors influencing purchase decision of
FMCG products..................................................................................................................34

4.3.3 Relatinship between income level and overall factors influencing purchase decision
of FMCG products..............................................................................................................34

4.3.4 Relatinship between education level and overall factors influencing purchase
decision of FMCG products...............................................................................................35

4.3.5 Relationship between product factor and purchase decision of FMCG products.....35

4.3.6 Relationship between promotion factor and purchase decision of FMCG products.36

4.3.7 Relationship between value factor and purchase decision of FMCG products.........37

4.3.8 Relationship between Attitude factor and purchase decision of FMCG products.....38

4.3.9 Relationship between interest factor and purchase decision of FMCG products......39

4.3.10Average of factors for influence of FMCG purchase decision.................................40

4.3.11 Hypothesis Result Summary....................................................................................42

CHAPTER V.............................................................................................................................43

SUMMARY AND CONCLUSION...........................................................................................43

5.1 Summary of findings........................................................................................................43

5.2 Conclusion........................................................................................................................44

5.3 Recommendations............................................................................................................46

References..................................................................................................................................47

APPENDIX................................................................................................................................50

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 LIST OF TABLES

Table 4.1: Factors that are consider while buying FMCG goods..............................................31

Table 4.2: T-test between gender and overall factors................................................................34

Table 4.3: Anova test between age and overall factors..............................................................35

Table 4.4: Anova between income level and overall factors.....................................................35

Table 4.5: Anova between education level and overall factors..................................................36

Table 4.6: T-test of product factor for influence of FMCG purchase decision..........................36

Table 4.7: T-test of promotion factor for influence of FMCG purchase decision......................37

Table 4.8: T-test of Value factor for influence of FMCG purchase decision.............................38

Table 4.9: T-test of Attitude factor for influence of FMCG purchase decision.........................39

Table 4.10: T-test of Interest factor for influence of FMCG purchase decision........................40

Table 4.11: Average of factors for influence of FMCG purchase decision................................41

Table 4.12: Relationship among factors in purchase decision of FMCG products...................41

Table 4.13: Hypothesis Result Summary...................................................................................43

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 LIST OF FIGURES

Figure 2.1: Conceptual framework of the Study........................................................................22

Figure 4.1: Frequency of respondents by gender.......................................................................28

Figure 4.2: Frequency of respondents by age group..................................................................29

Figure 4.3: Frequency of respondents by education..................................................................29

Figure 4.4: Frequency of respondents by Income......................................................................30

Figure 4.5: Frequency of considering factors for purchasing the FMCG..................................31

Figure 4.6: Frequency of spending while buying FMCG products...........................................33

Figure 4.7: Frequency for factors for switching brand..............................................................34

ix
 LIST OF APPENDIX

Appendix 1: Questionnaire …………………………………..……………………………….51

x
 ABBREBIATION

CPG Consumer Packaged Goods

FMCG Fast Moving Consumer Goods

SPSS Statistical Package for the Social Sciences

xi
 ABSTRACT

The market is very competitive today and consumers have many alternatives or choices while
selecting a particular product, hence manufacturers are facing very tough competition to sell
their products. Consumers purchase decision is affected by various factors and it is necessary
for any brand to understand the factors that affect the decision. Thus this research is conducted
to identify the dominant factors for the purchase decision of FMCG and to examine the
relationship between the influencing factors and purchase decision of FMCG.

Data were collected both from primary as well as secondary sources. 125 sample sizes were
taken using google form survey which wads distributed through facebook and email. Different
published materials, articles and research reports prepared and published are used as the
secondary source for this research. The conceptual framework developed for this study
includes influencing factors or the independent variables i.e. product as package, quality,
product variety, promotions, brand endorsement, product demonstration, sales promotion,
relationship marketing, price, need, affordability, extra benefits, availability, packaging,
dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand loyalty,
brand and brand awareness. The dependent variable is the purchase decision.

The collected data shows the number of male responents to be higher than that of female
respondents. Among the respondents, 22 respondents i.e. 17.6% were of age group below 18
years, 29 respondents i.e. 23.2% of age group 18-25 years, 52 respondents i.e. 41.6% of age
group 26-35 years and another 22 i.e. 17.6% of respondent were of the age group of 36 years
and above. The total number of respondents having education S.L.C and were 20 in number
which makes 16.0% of total respondents, 21 respondents i.e. 16.8% had the intermediate level
education, 49 respondents i.e. 39.2% had bachelors level education, 35 respondents i.e. 28.0%
had masters degree and above education. Similarly, 44 respondents i.e. 35.2% of total sample
size had the income of below than 15000 monthly, 25 respondents i.e. 20.0 % had income
between 15000 to 25000, 19 respondents i.e. 15.2% were earning between 25001 to 35000
rupees, and 37 respondents i.e. 29.6% have income between 35001 and above per month.
Interestingly, this research has shown that the demographic factors such as age, education and
income of the consumer have no impact on purchase decision of FMCG goods. Only factor

xii
that seem to be having impact was gender of the respondent. The result showed that better
quality and price offs are the most important factor for consumer to switch from one brand to
another. Similarly, the results show that there correlation between variables product as
package, quality, product variety, promotions, brand endorsement, product demonstration,
sales promotion, relationship marketing, price, need, affordability, extra benefits, availability,
packaging, dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand
loyalty, brand and brand awareness and have significant relationship with the purchase
decision of FMCG .

This study concludes that before marketers decide on whom to target their product to, they
should learn the behavior of each consumer goods to see what is most important to the
customers. They need to consider the factors like product as package, quality, product variety,
promotions, brand endorsement, product demonstration, sales promotion, relationship
marketing, price, need, affordability, extra benefits, availability, packaging, dignity, lifestyle,
retailer’s recommendation, friend/family recommendation, brand loyalty, brand and brand
awareness in order to induce the consumers to make purchase decision of FMCG goods.
Finally, it is suggested to consider the sample from whole of Nepal for the further study.

xiii
 CHAPTER I

INTRODUCTION

1.1 General Background

With the increase of industries, competition among them has also increased significantly. This
has resulted marketing to become more competitive and important since it is the only tool to
sell the product they produce and remain competitive in the market. Production is the prime
activity of every industry and successful marketing of the product is the ultimate goal. Today's
marketing environment is characterized by globalization, technological changes and strong
competition. Successful marketers are those who deliver what customers are willing to
purchase as well as according to their ability to purchase. For this reason, marketers today
conduct many researches to study consumer decisions. Once it is understood, marketers
become able to predict and shape their marketing strategies accordingly. Without doubt,
marketers who understand markets and consumer behavior have great competitive advantage
over other competitors. Therefore, it is obvious that a producing organization or manufacturer
must determine the needs, wants of their customer first, and then brings the product in the
market accordingly.

According to Kotler (2011), "Marketing is a social and managerial process by which

individuals and groups obtain what they need and what through creating offering and
exchanging products of value with others.”Similarly, the American Marketing Association
(2012) defines marketing as "the process of planning and executing this conception, pricing,
promotion and distribution of ideas, goods and services to create exchange that satisfy
individuals and organizational goals."

Hence, above definitions of marketing suggest that it consists of some activities consisting of
study of consumer needs, products, price, and place, promotion to facilitate the exchange that
satisfies individual as well as organizational objectives within the social and marketing
environment prevailing today.` The consumer or customer gets the product he/she wants and
the manufacturer or marketer gets the profit with satisfaction. This highlights the importance
of product as the whole process of marketing. Product is always an important element of
marketing mix. It is more than goods and services as people think it to be.
1
There is nobody in the world that is left out of the class of consumers. The consumer hood
continues till one’s last breath in the world. The consumer purchases a variety of goods and
services to satisfy his wants and he is always influenced in his purchasing activities by some
considerations which lead him to select a particular commodity or a particular retail store in
preference to others. So, consumer buying is more complex. Consumer purchases are likely to
be influenced by physiological, psychological and sociological, factors. Consumer behavior is
defined as activities people undertake when obtaining, consuming, and disposing of products
and services (et al Blackwell, 2001). The study of consumer behavior does not only include
reasons for buying but also the consumption process of the consumer at large. In the entire
process of buying, consumers get driven by influences such as feelings, motivation, income,
lifestyle, opinions, culture, personality etc.

1.2 Statement of Problem

The market is very competitive today and consumers have many alternatives or choices while
selecting a particular product, hence manufacturers are facing very tough competition to sell
their products. People have different needs and wants, which usually determine by their
current state of life. Usually for FMCG goods, people switch from one brand to another
influenced by various factors. Fast Moving consumer goods are those goods that are consumed
every day by the average consumer and are replaced or fully used up over a short period of
days, weeks, or months, and within one year.

Marketers separate people into different groups based on similar attitudes, lifestyles or
characteristics. It helps marketers to know exactly where and who to target their products to.
People from different social class status or at different age will most likely have different
purchasing behavior. Higher social class status with wider available choices, because price is
not a constraint to them, will focus on different product attributes than students with limited
income. Marketers must learn how to differentiate each consumer profile with their buying
behavior. If marketers can fully understand the connection between age, gender, income, etc
with their buying behavior, then they can exactly know who to target and how to promote their
brand to achieve market share. Today, one can use any product that is produced in another
corner of the world. Now, consumers are not compelled to buy any particular product; rather,
they are quite free to choose anything they think best.
2
Therefore, the basic problem statement of this study is to identify the influencing factors for
the purchase decision of FMCG products. For the study purpose, five different types of low
involvement products (i.e soap, mineral water, toothpaste, shampoo and hair oil) have been
selected. To reach the target market, it’s crucial to know as to what is the most important factor
in a product that consumers look for. As different consumers are leaning towards different
product attributes, it is needed to determine “who wants what”, and “what is important to
whom”.

Based on that reason, the problem can be formulated into these questions:
i. Does consumer profile (age, gender, income, education and occupation) have impact
on purchase decision for FMCG?
ii. What are the major factors that influence the purchase decision of FMCG?

1.3 Objectives

General Objective

The general objective of this study is to understand the buying behavior of customer for
FMCG goods.

Specific Obectives

The specific purposes of the study are as follows:

i. To identify the dominant factors for the purchase decision of FMCG products
ii. To examine the relationship between the influencing factors and purchase decision of
FMCG products

1.4 Significance of the study

For successful marketing of products, demand on understanding of consumer's taste,

preferences and loyalty. The marketers will be highly benefited by this study. They can use the
findings of the study as the guideline for making marketing strategies for their products so that
they can achieve success. This study will help to know the consumer behavior on their
products. Hence, manufacturers and marketers can decide the advertisement policy,
consumers' response to the price and consumers' perception about their product. This study can
help in the segmentation of their market into loyal consumer market and non-loyal consumer

3
market. This study can give manufacturers and marketers protection from competition and can
be helpful in planning marketing mix. Future researchers can take this research as a guideline
or literature that could help in their research.

1.5 Research Hypothesis

To identify the factors affecting the consumer buying behavior of customers, based on the
purpose and research questions mentioned above, the following set of a research hypothesis
has been formulated:

Null Hypothesis = Hoi, where i = 1, 2, 3,…………………..,n

Ho1: There is no significant relationship between age group and purchase decision of FMCG
products.
Ho2: There is no significant relationship between gender and purchase decision of FMCG
products.
Ho3: There is no significant relationship between income and purchase decision of FMCG
products.
Ho4: There is no significant relationship between education level and purchase decision of
FMCG products.
Ho5: There is no significant relationship between product factor and purchase decision of
FMCG products.
Ho6: There is no significant relationship between promotion factor and purchase decision of
FMCG products.
Ho7: There is no significant relationship between value factor and purchase decision of
FMCG products.
Ho8: There is no significant relationship between attitude factor and purchase decision of
FMCG products.
Ho9: There is no significant relationship between interest factor and purchase decision of
FMCG products.

4
1.6 Limitations of the study

The limitations of the study are as follows:

i. This study is only for the partial fulfillment of bachelor degree and prepared within
time constraints and the aspects of the topic were many but the attempt to narrow down
was made which have weakened the adequacy of the study.
ii. The data collection was done through google form survey survey which was targetd for
the people using social media, therefore this study cannot be generalized for the whole
population of the country.

5
 CHAPTER II

REVIEW OF LITERATURE

2.1 Review of Thematic Literature

Fast Moving Consumer Goods (FMCG):

Fast Moving consumer goods are those goods that are consumed every day by the average
consumer and are replaced or fully used up over a short period of days, weeks, or months, and
within one year. The Fast Moving Consumer Goods (FMCG), also known as Consumer
Packaged Goods (CPG), is products that have a quick turnover and relatively low cost. Though
the absolute profit made on FMCG products is relatively small, they generally sell in large
numbers and so the cumulative profit on such products can be large. Nowadays, billions of
rupees are spent on creating effective advertising for fast moving consumer goods (FMCG),
which are considered as low involvement products. These products are relatively low-priced
and are generally replaced or fully used up in a period of days, weeks and maybe months.
These low involvement products are products that we use on a daily basis to meet our basic
needs as a human being. We have the need to clean ourselves by bathing as well as feeding
ourselves with food and drinks. To do the job, we need to buy products, such as shampoo,
soap, toothpaste, water, juice, etc to meet and satisfy our needs.

These products fall into the category of low-involvement goods because we often do not take
the time to research upon choosing on which brand to buy. Some of the best-known examples
of Fast Moving Consumer Goods companies include Proctor & Gamble, Colgate-Palmolive,
Nestle, Unilever, Coca-Cola, and many more. FMCG are those products that are inexpensive
or maybe moderately priced; they are low in value and risk; and, are frequently purchased.
Often, they are purchased as a matter of routine. Example, toothpaste, soap etc. For such
products, the consumer gives little thought, and feelings may not be formed for the product
until after the purchase has been made. So the tri-component, cognition, attitude and behavior
are arranged in a manner such that cognition leads to behavior that finally leads finally to
attitude.

6
The products selected for the study are as follows:

i. Soap: Soap is a very common product packed in plastic or paper packages, which is
used by almost anybody. This has become one of the necessities for everyday living.
This is used for the purpose of bathing and personal hygiene.
ii. Mineral water: Mineral water is packaged drinking water sold in plastic bottles. Few
years ago, common people used to perceive this as the product used or consumed by
rich people and tourists only; but now, this concept has changed. Common people are
using mineral water more frequently. This is the reason for the increase in demand of
this product in Nepal.
iii. Toothpaste: Toothpaste is the product used for cleaning teeth. This is also one of the
necessities for everyday living.
iv. Shampoo: Shampoo is the soapy liquid, cream, etc. used for washing hair.
v. Hair oil: Hair oil is the product applied on hair for making it healthier as well as
stylish.

Consumer Buying Behavior

Consumer behavior is defined as activities people undertake when obtaining, consuming, and
disposing of products and services (et al Blackwell, 2001). The study of consumer behavior
does not only include reasons for buying but also the consumption process of the consumer at
large. In the entire process of buying, consumers get driven by influences such as feelings,
motivation, income, lifestyle, opinions, culture, personality etc.

As a customer, we each have our own preferences when buying for a product to satisfy our
needs. When deciding on which brand to choose, we often have a standard value that we look
for and which product will give us the maximum satisfaction. We often take different product
attributes into consideration before making the choice. With or without our consciousness,
there are factors that determine our buying behavior. Most of the time, those factors are price,
brand, or quality.

Types of consumer buying behavior are determined by the following:

7
  Level of involvement in purchase decision, importance and intensity of interest in a
product in a particular situation.
 Buyer’s level of involvement determines why he/she is motivated to seek information
about a certain product and brand but virtually ignores other brands.

The four type of consumer buying behavior are:

i. Routine Response/Programmed Behavior – buying low involvement goods

frequently purchased low cost items; need very little search and decision effort;
purchased almost automatically. Examples include soft drinks, snack foods, milk etc.
ii. Limited Decision Making – buying product occasionally. When you need to obtain
information about an unfamiliar brand in a familiar product category it requires a
moderate amount of time for information gathering. Examples include clothes – know
product class but not the brand.
iii. Extensive Decision Making/Complex – high involvement, unfamiliar, expensive and/
or infrequently bought products, high degree of economic/ performance/ psychological
risks. Examples include cars, homes, computers, and education. Spend a lot of time
seeking information and deciding.
iv. Impulse buying – no conscious planning.

2.2 Review of Empirical Literature

Under this segment, previous research in similar topics has been reviewed. The published
literatures found in different journals have been very useful to get insight upon the research
being conducted.

Watkins (1984) conducted a research on Consumer Purchasing of Low-involvement Goods:

Routine or Impulse. This article investigates the pre-planning of consumer purchasing for a
low-involvement product group. Evidence is presented from the field of chocolate
confectionery on consumer intentions to purchase two new brands and on their actual reported
purchases. Previously a very high level of impulse purchasing had been assumed to occur in
this market but this evidence suggests more routinized behaviour which implies pre-planning.
Suggestions are made for forecasting the sales of new brands from consumer intention to

8
purchase data on the basis of the relationships presented here. Implications for management
decision making are summarized and the need for further research investigation is stressed.

Ndubisi (2006) conducted a research on Awareness and usage of promotional tools by

Malaysian consumers: the case of low involvement products. The main objective of the study
was to evaluate the awareness and behaviors of Malaysian consumers towards sales
promotional tools such as, coupons, price discount, free samples, bonus packs, and in-store
display in the purchase of low involvement products. The paper also recognizes that certain
demographic factors such as education and income of consumers could potentially confound
the observed relationships hence, these factors were controlled. A total of 312 consumers in
Kota Kinabalu, Malaysia were surveyed using a structured questionnaire. The results show
that price discounts, free samples, bonus packs, and in-store display are associated with
product trial. Coupons do not have any significant effect on product trial. Greater
understanding of how Malaysian customers respond to the various sales promotions therefore
increased ability to pinch the appropriate promotional tools. The research also concluded that
the level of education appears to have no bearing on consumers’ preferences.

Leahy (2008) prepared a research paper on brand loyalty in FMCG market. This paper
examines the concept of brand loyalty in Fast Moving Consumer Good (FMCG) markets. The
primary objective of the study was to explore why loyalty develops in FMCG markets from
the consumers’ perspective. In addition, this study explored the consumers’ perspective on the
types of bonds that exist in FMCG markets and the role of bonds in the development of brand
loyalty. The dominant conclusion arising from this study is that brand loyalty exists in FMCG
markets for both cognitive and emotional reasons. Essentially this research determined that
the development of brand loyalty is predicated on the development of customer-brand bonds.
This research concludes that the challenge for marketers is to develop and nurture the bonds
that lead to and that can strengthen brand loyalty. The research also concludes that brand
loyalty studies in the future should focus on both cognitive and emotional reasons for brand
loyalty and the role of bonds therein. Exploring brand loyalty in this way should assist in the
analysis of and understanding of brand loyalty in FMCG markets and should consequently
result in the development of effective marketing strategies designed to build brand loyalty.

9
Ahmad (2011) conducted a research on the impulse buying behavior of consumer for the
FMCG products in Jodhpur. The main objective of the study wass to investigate impulsive
buying behavior amongst people living at Jodhpur. It tends to discover whether personality
traits (lack of control, stress reaction, and absorption) trigger impulse buying behavior, to
identify what impulse products are in terms of expected price and product location and to
discover the differences between male and female consumers in Impulsive buying behaviour.
The researcher contacted the respondents personally with well-prepared sequentially arranged
questionnaire. The questionnaire prepared, was divided into two parts, of which part one was
used to gather demographic details of the respondents doing impulsive buying and the second
was related to customer preferences for the various attributes of the product available. After
the through analysis of the available data it has been found out that since income of individual
is increasing and more and more people are moving towards western culture in dressing
sense, in eating etc so the purchasing power of the people has really gone up and thus the
impulse buying of the commodities is on a great increment mainly due to pricing strategies of
retail players and full of festivals throughout the year.

Nayyab (2011) conducted a research on the impact of consumer behavior on FMCG. In this
report author has put an effort to see the impact of consumer behavior on fast moving
consumer goods. The consumer behavior was studied through different dimension by
understanding demands patterns of the people regarding quality, price, brand loyalty and
demographics. These are the independents variables through which the behavior of consumer
in terms of purchase were gathered regarding different FMCG's. Different FMCG's company's
like Unilever, P&G, Continental biscuits, Coca-cola and others products were taken to obtain
the behavior regarding consumers’ purchase. Specific target market was Okara. The data was
collected by the primary source through questionnaire. Researcher used stratified random
sampling in the report. The population of Okara was 27, 915 and the sample of 100
respondents were selected from different income classes. It was seen that people in Okara
mostly used Unilever products as they were easily available at near stores. It was also seen that
they considered quality when they made purchase decision. There were no big retail stores for
the people. It was also seen that the market share was mostly obtain by multinational
companies in Pakistan.

10
Mahalingam (2012) conducted a study titled A Study on Consumer Behaviour towards
Selected Fast Moving Consumer Goods in Coimbatore City. The major objective of the study
was to analyse the socio-economic profile of the sample respondents and their shopping
pattern and to assess the factors influencing the consumer to purchase the selected FMCG
products. The researcher has assessed the socio-economic profile, shopping pattern consumer
and found out the factors influencing the consumer to purchase the selected FMCG products.
The primary data required for the study for collected through questionaire which was
distributed to 400 samples choosen 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 rasearcher has suggested to improve the quality in FMCG product through product
development and external monitoring. It clears from the study that FMCG acquire a major
share in the consumer goods market the manufacture as to provide quality goods at reasonable
price.

Muthuvelayutham (2012) conducted a study on consumer brand loyalty on FMCG with

special reference to South India. This study analyzes the relationship between demographic
variables on the brand loyalty of the consumers and tries to identify the consumer’s switching
factors in respected selected product category. The study is essentially a correlation study. A
randomly selected sample of 600 from Tamil Nadu State, South India, particularly Madurai,
Tuticorin, Kanyakumari districts were selected to analyze. To indicate the amount of
correlation between the variables, Chi-square test was used. Results show that among the
variables age, education level and gender have the most significant impact on consumer’s
brand loyalty. As per the study, most of the customer were not brand loyal. The consumers’
habits may be changed through use of effective marketing strategy particularly in
advertisements. This study identifies how effectively demographics factors like gender,
education, age had an impact on consumer brand loyalty.

Najeeb (2012) conducted a research on impact of advertisement on consumer behavior of

FMCG. The study was conducted to find out the effects of advertisements on user behavior in
Lahore city. The objectives of the study was to examine the modes of advertisement effect the
user behavior, to examine whether the Income influences the user behavior or not and to

11
examine if consumer behavior changes with with respect to gender. It was a community-based
analytical study, undertaken from September 2011 to January 2012 with the sample size of
150. A questionnaire was used to measure the effects of advertisements for which every age
group was targeted. For analysis Chi-Square, Z test and descriptive analysis were used. The
results proposed that people change their brand to try the new brand. Results also proposed
that consumer behavior changed according to the income and male are more likely to be
influenced by the advertisement than female.

Faghani (2012) conducted a study of Consumer Buying Behavior and Its Influence on
Consumer Preference in context of Iranian FMCG market. The main objective of this research
was to evaluate the attributes which influence the consumer buying behavior and their
preference in Iranian FMCG market. In this study 700 questionnaires were distributed and 374
questionnaires were returned providing a 53.4% response rate. The questionnaire used five
point Likert scale. To achieve diverse response from a expand scope of ideas, age, education,
income and type of occupation used; different places such as shopping center, club and
university were covered during data collection. The respondents were asked to reflect the
range of the amount of impact of variables on measured variable (shampoo attributes) from
very high to very low. Researcher discovered that reinforcement, antidandruff, attractive
packaging, and shiny are most important attributes to influence on consumer buying attitude in
Iranian market. However the sustainability, price and quality are considered as the main reason
to buy branded shampoo and it should consider as main competitive advantage strategy for
branded shampoo. It is also interesting to know that the association between gender and
education is the main factor that influence the buying behavior of domestic and international
brand in Iranian FMCG market.

Hasan (2012) conducted a study on consumers’ versatile buying behavior irrespective to high
and low involvement products. This study basically comprehends the concept of non-linearity
towards the consumer purchase behavior for either high or low involvement of products. The
research was interesting to note the consumption patterns of different product classes. The
peculiarity of this study found the same non-linearity wavelengths between the high and low
involvement products’ that was shaped by the consumers buying intention and actions. ADF

12
unit root test has justified this result with the mall intercept survey of 1700 respondents buying
variety of high and low involvement products. According the many/various marketing
principle of high and low involvement grid, consumers have different behavior towards
purchasing high and low involvement but this result signifies that the consumers’ purchase
intention has become more cautious towards buying both kinds of products, which is due to
the economic crises and recession. As the prices have hiked of all kinds of products,
consumers while maintaining their lifestyle are attentive towards their expenses and
convenience and specialty products. An alert for marketers to divest the old kind of consumer
behavior and should focus on consumers’ vigilant behavior. Real-life marketing strategy is a
sound strategy, which uses common-sense to analyze the environment. This helps the
marketers to comprehend the similar non-linearity of high and low involvement products by
‘gut-reaction’, experience, rational and irrational processes to understand the consumer
purchase and consumption to attain their satisfaction, retain them and also to keep the products
revenue generation streamlined.

Rajendran (2012) conducted a research on determining the imperative variables in variety

seeking behavior in low involvement products. The purpose of the research was to find out the
determinants that influence variety seeking behavior in low-involvement product category in
Indian context. Questionnaire survey was conducted to collect data from variety seeking
consumers for two product categories – biscuits and detergents. Multiple Linear Regression
(MLR), ANOVA and Independent t-test techniques were used to analyze the data. The results
of the MLR analysis showed that the determinant, need for variety was the key influencing
variable for both the product categories. In the case of biscuits, deal proneness and perceived
risk also played an important role. Similarly, in the case of detergents, purchase frequency and
utilitarian motive were the key determinants. The managerial implication and direction for
future research had been discussed.

Zaman, Samina, Arshad & Shahzad (2012) stated in their study that to find an empirical
relationship of proposed variables and to find the impact of customer satisfaction, trust, and
corporate reputation on customer loyalty. This study attempts to contribute to the knowledge
how FMCG companies of Pakistan can retain their customers by making them loyal through
satisfaction, trust, and corporate reputation. A theoretical framework is proposed to suggest

13
links among variables. The sample size selected for research constitutes 200 respondents, and
these respondents belong to the cities of Rawalpindi and Islamabad, Pakistan. Multiple
regression and correlation coefficient was used to examine hypothesized relationship.
Regression analysis reveals that customer satisfaction, trust, and corporate reputation bring
79.0% change in customer loyalty. The results indicate that FMCG companies in Pakistan
should pay more attention toward the reputation of their company, satisfaction of their
customers, and trust in order to build loyalty of customers.

Ullah & Prince (2012) conducted study to find the factors influencing the Bangladeshi
Consumers’ Purchase decision Regarding Fast Moving Consumer Goods. The study has
identified eight primary factors that influence consumers’ purchase decision of FMCG
products in Bangladesh. These factors are sales promotion, unavailability of brand, time
constraint, in-store TVC, variety-seeking behavior, product features, end of aisle display and
product convenience. 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.

ChandraSekhar (2012) conducted study about Consumer Buying Behavior and Brand Loyalty
in Rural Markets: FMCG with purpose to study on brand loyalty of various brands in rural
markets, to study does the brand play a role in the purchase behavior of rural customers, to
study on which categories/products does brand play a and to identify the presence and the
importance of local brands. It was concluded that product planning is very important to
marketer to enter into rural market, non-availability of brands is another reason which affects
purchasing decision, packaging should be strong enough to stand rough handling because of
poor infrastructure facilities and pack should be small and brand names should be simple,
small and easy to remember and pronounce.

Abbas, Thumiki & Khan (2012) conducted an empirical study to find the factors Influencing
Purchase of FMCG by Rural Consumers in South India. Promotions and advertisements
emerged as key influencing and it is suggested that highest preference has to be given to
promotional activities. Research also proved that the rural customers link purchase and
consumption of FMCG to the improvements in their lifestyles. It is proven that rural customers
respect and follow the recommendations of their friends and relatives to try or buy an FMCG.

14
It is found that the rural consumers seek value in their purchase of FMCG. According to them,
the FMCG that are affordable, low priced and fulfill their intended benefits are value products.
It is also proved that the rural consumers buy FMCG only when needed. It can be interpreted
that the rural customers seek multiple features in a product and at the same time look for
bigger sized FMCG and also proven that rural people seek quality.

Srivastava (2013) conducted a study to understand the factors that affect the buying behavior
of FMCG products for lower income group as such category of products touches everyone’s
life beyond income groups. An authorized colony, Khora was identified for the purpose. The
findings suggest that variables under factors like reliability and product attributes plays a very
important role for this low income and price conscious set of respondents. The consumers
largely remain brand loyal. A considerable portion of monthly income is spent on buying
grocery (including FMCG products). Promotions and offers have considerable impact on
larger household and young adults. At the same time where they are buying generic products,
they nourish aspiration value for branded products which remains restricted due to lack of
money.

Singh (2013) study about the factors which affects on the success of Fast Moving Consumer
Goods. The major objective of this study is to determine the factors which affect the success of
FMCG. Factor analysis is employed on data of 24 items that have main effect on the
individual consumer. Overall the analysis provides an understanding the consumer differ
significantly by age, education and income level as consumer wise on intrinsic motivation.
The results are important for the group of the consumers in making their purchase decision,
companies selling their products and the various parties involve advertiser, investors etc. The
study shows that gender is the most effective demographic variable which affects the success
of FMCG. If the proper education is provided regarding the factors then it can be easily solved
and it helps in increasing the area of success of FMCG.

Joghee & Pillai (2013) conducted an empirical study of Brand Influence on Buying FMCG
Products in UAE. The objective of the study was to find out the significant factors influence
on buying FMCG products, understand the level of satisfaction perceived by the respondents
using FMCG goods, to what extent the brand name influences consumer purchase decision on

15
FMCG goods and suggest ways and means to improve the marketers in UAE. For this purpose
a field survey method was employed to collect first hand information from 300 sample
respondents from the study area i.e. UAE. It was found from the correlation analysis that the
variables Gender, Educational Qualification, Occupation,Annual Income, Family size and
Frequency of purchase are having positive correlation with impact on buying of selected
respondents towards FMCG products and the variable mode of purchase is having negative
correlation with impact on buying FMCG products. It is noted from the regression analysis
that the impact on buying towards FMCG products is positively associated with their Age,
Educational Qualification, Occupation, Annual Income, Family size and Frequency of
purchase in the study area. The Henry Garrett Ranking analysis noted that maximum of the
customers opined that Malls and Exclusive Shops were their preferable place to purchase their
selective branded products. It is inferred from the Henry Garrett Ranking technique that
maximum of the customers opined that Price of the products and Quality were the important
factors that influenced to buy FMCG products.

Sulekha & Kiran (2013) conducted an Empirical Study of Rural Haryana for Consumer
Buying Behavior for FMCG. The main objective of the study was to identify the factors
responsible for buying behavior of rural consumers for FMCG in Haryana and data has been
collected through primary survey. Price, need, promotions, brand endorsement, gender, sales
promotion, packaging, brand loyalty, product variety, product as whole package, value in sense
of dignity, brand awareness, attitude and life style, affordability, quality, retailer’s
recommendation, age, income, relationship marketing, extra benefits, education and product
demonstration variables were found which affect the purchase decision of rural consumers for
FMCG. Rural customers buy the FMCG through retailers in their villages. It is proved that the
retailers are aware of the fact that their customers listen to them; they are the one who can
create their interest in product. It necessitate that companies must educate rural retailers about
modern marketing principles for a better performance. As price influences rural purchase of
FMCG, it is recommended to pursue the low-price strategy in rural marketing. Attaining low
price not only requires low-cost manufacturing but also performing various marketing
activities such as promotion and distribution in a cost effective manner. It is also
recommended to promote goods on price plank. For rural customers, value for money is very

16
important when they purchased FMCG. The study revealed that the rural customers are not
only price strategies for rural markets that can express messages in an easy way to the
villagers and compatible with their education and understanding levels. Companies should
offer FMCG in different varieties. Rural consumers are highly affected by their lifestyle and
attitude. Rural marketing is highly influenced by celebrity endorsement and companies should
take care of this and take that celebrity who is popular in rural areas

Vibhuti, Tyagi & Pandey (2014) conducted a case study on Consumer Buying Behavior
towards selected FMCG Products. The objective of the study is to understand the concept of
FMCG products, to know and understand the scope of marketing FMCG products in India, to
identify the factors affecting consumer buying behavior and consumer decision making
process and to conclude and suggest strategies for effective marketing of FMCG products.
They had used nine factors like price, availability, quality, taste, and attractiveness of the
packages, quantity, ingredients brand and influence by media are taken for analyzing the
buying decisions of the respondents in respect of select FMCG products viz. chocolate bar,
milk, edible oil, bath soap & shampoo. The result showed for buying chocolate bar & milk,
people prefer small shops while for edible oil, bath soap and shampoo.It is seen the customers
spending on milk is maximum while edible oil is next in the list and chocolate bar is the last in
the list. Also regarding frequency of buying, people buy chocolate bar and milk on daily basis,
while items like edible oil, bath soap and shampoo is purchased on weekly or monthly basis. It
was found that cash discount, free gifts, gift vouchers and hampers were highly influential
tools. However the contest/coupons were the least influencing factor . Regarding media
influence on the buying decisions, Television was found to be highly influencing media the
next were newspapers and magazines, surprisingly internet and hoardings were considered to
be least influencing medias.

Rajasekaran, B & Saravanan, P. A. (2014) conducted a study on Consumer Satisfaction on Fast

Moving Consumer Goods. The objective was to study the level of satisfaction among the
consumers about the various brands of fast moving consumer goods, the factors those are
influencing the consumer to buy the fast moving consumer goods, brand preference of fast
moving consumer goods and to offer suggestions to get more satisfaction on buying fast
moving consumer goods. It was found that age of the respondents does not influence the level

17
of the satisfaction of consumers. There is no significant relationship between the educational
qualification, occupation, family size and monthly income and the level of satisfaction about
brand preference of the consumer goods. In all the age group, the respondent does not prefer
the same brand of consumer goods. Hence, it is suggested to manufacture the consumer goods
according to the different age group of consumers and the companies can adopt customization
of the product marketing strategies on the basis of education. They could also manufacture the
consumer goods by considering the occupation with changing life style of the consumers, in
different sizes with same quality.

Srinivasu (2014) has studied the retail market of FMCG, growth prospect, market overview
and food inflation in Indian market. It was concluded that prices across retail formats differ
substantially for a market operating on a very thin profit margin. However, these differences
are likely to stem from cost differences. These trends are likely to have a positive impact on
product diversity and the quality of products/services offered by retail stores. Single product
leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have also witnessed
strength in their respective categories, aided by innovations and strong distribution. Strong
players in the economy segment like Godrej Consumer Products Ltd in soaps and Dabur in
toothpastes have also posted market share improvement, with revived growth in semi-urban
and rural markets. Indian buyers were a bit conservative partly due to lesser disposable income
and partly due to fewer competitive and more variety of products. It was found that t from
2000 onwards a there has been a negative growth of this industry. But since December 2004,
the sales of various brands belonging to key players and the overall FMCG industry
performance have picked up and the intense sales promotional efforts, cut throat competitive
strategies, stronger distributional efforts have helped various brands penetrate deeper into the
markets and increased sales.

Thanigachalam S. (2014) conducted research on Consumer behavior towards Fast Moving

Consumer Goods in Puducherry. The result of research proved that the consumer behaviors
are positively and significantly correlated with product, price, place, promotion, need for
recognition, brand awareness, brand knowledge, brand loyalty, at the time of purchase and
Post-purchase behavior. The importance promotional offers, availability of brands are

18
important that companies must give it sufficient consideration before they plan and implement
their marketing strategies.

Anbarasan & Kumar (2014) carried study on aspects influencing purchase of fast moving
consumer goods by rural consumers in Tamil. The main objective of the current study was to
identify the aspects influencing the purchase of FMCG by rural consumers in Tamilnadu.
From the result, it is suggested that highest preference has to be given to promotional
activities. Relationship marketing by companies, promotions,brand endoresmenet and
advertisements does influence the purchase decisions by the rural consumers.The research also
proved that the rural customers link purchase and consumption of FMCG to the improvements
in their lifestyles and to buy FMCG that make them feel dignified while buying/possessing/
using them. Brand awareness is the key as creating awareness is more important in rural
marketing. Since, in the current research, packaging has emerged as one of the important
variables influencing rural lifestyle (with 18% Aspect loading), it can be interpreted that the
rural consumers attach their lifestyle or standard of living to the better/attractively packed
goods. It is proven that rural customers respect and follow the recommendations of their
friends and relatives to try or buy an FMCG. Brand loyalty is noticed in rural markets as it is
proven that the rural customers prefer to buy brands of FMCG that they have been using.
Government is one of the trusted sources for rural people. Rural customers trust and buy
brands/products that are promoted by Government. According to respondents the FMCG that
are affordable, low priced and fulfill their intended benefits (21.8%) are ‘value products’ and
buy FMCG only when needed. The product factor influencing the rural purchase is loaded
with four important variables, more features, and size of the FMCG, better quality and long
lasting FMCG .Thus it can be interpreted that the rural customers seek multiple features in a
product and at the same time look for bigger sized FMCG.

Qasim (2015) conducted study about analysis of the Influencing Factors for Brand Preferences
towards FMCG in Delhi NCR. The objective of the study was to assess the factors which
improve the selection or preferences of FMCG brand products than others and to study the
factors impacting on consumer behavior for brands preferences among FMCG sector.
Significant positive correlations were found between consumer behaviors with personal life
and promoting FMCG products factors interfering with personal life (0.641), followed by

19
promoting FMCG products with personal life and factors impacting consumer behavior
(0.597). The relationships between these variables were moderate. Level of risk to advertising
play major role for purchase decision (0.229), consumer behavior with personal life and level
of risk to medium influenced purchase decision (0.222), Factors impacting consumer behavior
and Level of risk to advertisement influenced you most for brand switch (0.197) and consumer
behavior related factors interfering with personal life with brand of instant drink, milk, juice
and health drink do you prefer (0.090). The relationships between these variables were low.
The findings recommend that variables under components like dependability and item
properties assumes a critical part at low monthly income and price cognizant set of
respondents. A significant share of monthly income is spent on purchasing basic need
(counting FMCG items). Advertisements and offers have significant effect on bigger family
unit and youths.

2.3 Research Gap

Many researchers have been conducted to identify the factors affecting consumer buying
behavior for FMCG goods and understand its impact on purchase decision in countries like
South Africa, United states of America, India, China (Blackweel,1977) analyzed that there are
various factors which influence the behavior of consumer. The previous done research in the
consumer behavior with respect to decision making process of FMCG or low involvement goods
conducted in Nepal and outside Nepal is not enough to know the various factors that affect the
purchase decision of FMCG. The previous done research were conducted mostly in India and the
research done in Nepal are not published mostly and are not enough to know the factors affecting
the buying decision of FMCG. However, studies as such have not been conducted in Nepal
where the market is still raw and the factors that affect the Nepalese consumers have been
accounted for also will show the relationship between the influencing factors and the
demographic factors of the consumers. This research aims at filling the gap done by previous
research. Academically, the finding of this research adds new understanding to the literature
particularly in the factors affecting the purchase decision of FMCG.

The researches mostly conducted were specified on few of the factors that influence the
buying behavior. It is necessary to know all the factors that influence the purchase decision.
This study aims to identify the factors that are responsible for consumer buying behavior in the

20
Nepalese consumers and to identify demographic and influencing factors that affect the
consumer buying behavior for FMCG products. This research aims at filling the gap done by
previous research. This study determines the relationship between the influencing factors and
the demographic factors of the consumers. Academically, the finding of this research adds new
understanding to the literature particularly in the factors affecting the purchase decision of
motorbike.

2.4Theoretical Framework

This section includes the general concept of consumer buying behavior for FMCG,
demographic sectors and their relationship. Based on the literature, this study considers six
factors including 24 variables that can affect the consumer buying behavior. This study is more
closely related to Sulekha & Kiran (2013). The following figure 2.1 shows the theoretical
framework of the study.

Dependent variables

The dependent variable is the factor that is influenced by variety of factors. In the shown
diagram below, the dependent variable is “purchase decision”. The framework shows the
relationship that the independent factors have on the purchase decision of FMCG products by
consumers.

Independent variables

The independent variables are the factors that are not influenced by any other factors. In this
case they are product factor, Promotion factor, Value factor, Attitude factor, interest factor and
demographic factors are independent variables.

21
 Product (factor 1)
Product as package
Quality
Product variety

Promotion (factor 2)
Promotions
Brand endorsement
Product Demonstration
Sales promotion
Purchase decision for
Relationship marketing FMCG products

Value (factor 3)
Price
Need
Affordability
Extra Benefits Demographics (factor 6)
Availability Age
Gender
Attitude (factor 4) Income
Packaging Education
Dignity
Lifestyle

Interest (factor 5)
Retailer’s Recommendation
Friends/ relative’s Recommendation
Brand and brand awareness
Brand Loyalty

Figure 2.1: Conceptual framework of the Study

22
A Brief description of independent variables is as follows:

Product (factor 1): This factor includes three variables product as package, quality and product
factor. Rural consumers want to have a product as a whole package whatever they want it must
contain in a FMCG. As (Prahalad, 2005) and Sulekha & Kiran (2013) proved quality as most
influencing variable for the purchase. Rural consumers also seek different variety in FMCG
that may affect their product choice for FMCG.

Promotion (factor 2): This factor includes five variables promotions, brand endorsement,
product demonstration, sales promotions and relationship marketing. The more the number of
price-discount led sales promotions, promotion or advertising the lesser the likelihood of brand
loyalty in the category/segment that is the focus of such efforts. This is because the consumers
are inducted into the price war mind set. Consumers relate the product with the celebrity who
endorses the product and it influences the product purchase in case of FMCG. FMCG
marketers’ tries to educate the rural population about their brand and product and it affect the
sale as a result.

Value (factor 3): This factor includes five variables price, need, affordability, availability and
extra benefits. Price plays an important role in the decision-making of a low involved
consumer. A buyer of toothpaste might look after a familiar brand but will then choose the
cheapest product. In Sulekha & Kiran (2013) study, it is shown that rural consumers are price
sensitive and relates the purchase with need satisfaction. They give value to that product which
is low priced, satisfy their need, have extra benefits, availability and affordable for their
pockets. The product which has maximum of these attributes is treated as most valuable
product by rural consumers.

Attitude (factor 4): This factor includes three variables packaging, attitude and lifestyle.
Consumer links their purchase with the attitude and lifestyle. Packaging is the first impression
of a product and it affects the purchase of rural consumers. Consumers want to have those
products which make them to feel dignified while purchasing and using the product. Rural
consumers try to purchase the FMCG which improve the lifestyle and make them to feel in
superior class.

23
Interest (factor 5): This factor includes four variables retailer’s recommendation,
friend/relative’ recommendation, brand and brand awareness and brand loyalty. A premium
brand, which gets into frequent sales promotion, has the risk of losing its premium—a
permanent damage to a brand, which has spent years creating the premium aura. It is common
that a consumer will purchase that product in which he/she interested. Retailer’s
recommendation in case of FMCG makes the rural consumers interested to buy a product
(Factor loading = 0.891) in Sulekha & Kiran (2013)study. Brand awareness makes a consumer
ready to purchase if it create the interest of consumer in that product. Brand loyalty is also
affecting the purchase of FMCG because it is noticed that rural consumers repeat their
purchase for same brand. Friends and relatives’ recommendation also plays important role in
buying FMCG products.

Demographics (factor 6): A large literature is available which proves that demographics affect
the purchase of FMCG. The characteristic of buying products and services of today’s young
adults differs from those of their childhood. The need to purchase food, clothes, furniture and
recreation is frequently related to age. A person who has higher disposable income tends to do
more buying than that of people with lower disposable income. If the individual does not have
enough money, he or she will avoid the shopping environment altogether. Occupation most
likely will influence consumer’s lifestyle, the pleasure activities he pursues and his shopping
behavior. People within the same occupation tend to live in a clustered neighborhood and they
also tend to have similar prestige based on their job skills and level of salary. Occupational
differences have important implication for marketing strategy. The process of consumption has
long been associated with sex and gender; thus, it comes as no surprise that consumer
researchers often examine the effects of these variables on consumer behaviors. Females are
more likely to engage in a detailed, through examination of an ad message and then make
extended decisions based on product attributes, whereas males are selective information
processors, driven more by overall themes and simplifying heuristics.

24
 CHAPTER III

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It facilities the
research work and provides reliability and validity to it. Research methodology employed in
this study is presented below.

3.1 Data Sources

Both primary and secondary source of data were collected to throw light on the sphere of
enquiry. Primary data was collected through Google form survey which was carried out on
email, social media. The secondary data was obtained from the different books, articles,
reports, websites, journals, and previous national and international research conducted in this
topic.

32. Sample Size

Google form survey was carried out on social media mainly facebook without any geographic
barrier. The sample of respondents used in this study constitutes 125 people who provided their
inforamtion.

3.3 Data Collection Technique

3.3.1 Secondary Data

Secondary sources are data that already exists like Previous research, Official statistics, Mass
media, Diaries, Letters, Government reports, Web information, Historical data and
information. For the collection of secondary data, extensive desk study wase done. Articles,
journal, papers and books related to the issue were collected at the internet, library and the
concerned offices.

3.3.2 Primary Data

Primary data are always collected from the source. The primary data was collected from online
survey. The questionnaire was sent online in Goggle Forms for survey on email and facebook
with necessary briefings and instructions. All the known people on email and facebook wre

25
requested to help by forwarding it to their friends, family and acquaintances over email and
facebook.

3.4 Data Collection Tools

Researcher must have clear idea on the tools to be used for data collection. Data collections
tools to be used depend on data collection method to be engaged in the study.

3.4.1 Secondary Data Collection

The data collection tool for secondary data in research were mainly books, research journals,
publication, unpublished academic papers and on line resources and their findings of
researches.

3.4.2 Primary Data Collection

A structured questionnaire with close ended questions was used for the purpose of primary
data collection consisting of question to collect data regarding the knowledge and perception
of respondents. Likert scale questions, multiple choice multiple response, multiple choice
single response and rank data are the basic data type.

3.5 Processing and Analysis of Data

3.5.1 Processing Operation

The collected data from google forms were extracted in Microsoft Excel sheet. The data were
then imported into SPSS. Both descriptive and inferential statistical tools were used as per the
requirement of the test and their suitability.

3.5.2 Analysis of Data

The collected information/ data were further edited, coded, summarized, organized and
accordingly tabulated for clear demonstration. Analysis was done using various statistical tools
such as frequency, mean, standard deviation, cross tabs and were presented in tables, pie chart
and bar chart. Frequency and percentage computation describe the number and proportion of
the sample respondents. Central tendency depict the average satisfaction rate of respondents
and standard deviation indicates the deviation in satisfaction of the respondents obtained from
the analysis. Cross-tabulation describe the relationship between respondents’ demographic

26
variables and their priority for. Similarly, T-test and F- test were computed to test the required
hypothesis.

27
 CHAPTER IV

RESULTS AND DISCUSSION

The previous chapters incorporated introduction of study, review of the literature and research
methodology employed in the study respectively. This chapter incorporates data presentation
and analysis. The data and information collected from the respondents are presented,
interpreted, and analyzed according to response of respondents. This chapter analyzes
consumer buying behaviors in terms of their demographic profile. Frequency charts, bar
diagrams, pie charts, cross tabulation are used and relationship analysis through chi-square and
ANOVA have been done through SPSS and have been presented and interpreted below.

4.1 Demographic profile of respondents

This section represents the graphical representation of different demographic components i.e.
gender, age, education background and Income.

4.1.1 Gender of the respondents

Distribution by Gender
61.6 %

38.4 %

Male Female

Figure 4.1: Frequency of respondents by gender

The collected data shows the number of male responents to be higher than that of female
respondents. Among 125 responents, number of male respondents was 77 making it 61.6% of
total valid responses. On the other hand, the total number of female respondents was 48
making it 38.4% of the total valid responses.

28
4.1.2 Age group of respondents

Distribution by Age
41.6%

23.2%
17.6% 17.6%

Below 18 18-25 Years 26-35 Years 36 Years and Above

Figure 4.2: Frequency of respondents by age group

Peoples' age may be one of the factors that affect their choices. The choice of young people
may not be preferred by the ageing people. Among the 125 respondents, 22 respondents i.e.
17.6% were of age group below 18 years, 29 respondents i.e. 23.2% of age group 18-25 years,
52 respondents i.e. 41.6% of age group 26-35 years and another 22 i.e. 17.6% of respondent
were of the age group of 36 years and above. The distribution suggests that the people of age
group 26 – 35 years are most active in purchase behavior who occupied 41.6% of the total
consumers as per the research.

4.1.3 Education level of respondents

Distribution by Education level 39.2%

28.0%

16.0% 16.8%

S.L.C and below Intermediate Bachelors Masters and above

Figure 4.3: Frequency of respondents by education

29
In this survey, the total number of respondents having education S.L.C and below were 20 in
number which makes 16.0% of total respondents. Similarly, 21 respondents i.e. 16.8% had the
intermediate level education, 49 respondents i.e. 39.2% had bachelors level education, 35
respondents i.e. 28.0% had masters degree and above education.

4.1.4 Income Level of respondents

Distribution by Income level

35.2%
29.6%

20.0%
15.2%

Below 15000 15000-25000 25001-35000 35001 and above

Figure 4.4: Frequency of respondents by Income

In the questionnaire, income group was divided into 4 sub-groups. 44 respondents i.e. 35.2%
of total sample size had the income of below than 15000 monthly. Similarly, 25 respondents
i.e. 20.0 % had income between 15000 to 25000, 19 respondents i.e. 15.2% were earning
between 25001 to 35000 rupees, and 37 respondents i.e. 29.6% have income between 35001
and above per month.

4.2 Descriptive Statistics

This section includes the graphical representation of factors consideration factors for
purchasing the FMCG product, spending on buying FMCG product and factors for switching
brand.

Whenever a consumer recognizes his/her need for a FMCG product, there might be various
factors which have direct impact on the selection of a certain brand. To know the customer
perception for considering any factor for buying FMCG products, they were asked question to
know their views. As hown in below figure 4.5, out of 125 respondents, 76.0% of the
respondents answered that they would consider factors for purchasing the FMCG products.

30
 Factors Consideration

Yes No

24.0%

76.0%

Figure 4.5: Frequency of considering factors for purchasing the FMCG

4.2.1 Factors considered by respondents while buying FMCG goods

Respondents were asked what factors di they consider when they buy FMCG goods.
Respondents with given 21 options of factors. The response is as shown in table below:

Table 4.1: Factors that are consider while buying FMCG goods
Factors/Variables consideration Frequency Percent
Product as package Yes 38 30.4
No 87 69.6
Quality Yes 75 60.0
No 50 40.0
Product variety Yes 44 35.2
No 81 64.8
Promotions Yes 32 25.6
No 93 74.4
Brand endorsement Yes 48 38.4
No 77 61.6
Product Demonstration Yes 17 13.6
No 108 86.4
Sales promotion Yes 41 32.8
No 84 67.2

31
 Factors/Variables consideration Frequency Percent
Relationship marketing Yes 19 15.2
No 106 84.8
Price Yes 82 65.6
No 43 34.4
Need Yes 63 50.4
No 62 49.6
Affordability Yes 65 52.0
No 60 48.0
Extra Benefits Yes 42 33.6
No 83 66.4
Availability Yes 35 28.0
No 90 72.0
Packaging Yes 54 43.2
No 71 56.8
Dignity Yes 22 17.6
No 103 82.4
Lifestyle Yes 36 28.8
No 89 71.2
Retailer’s Recommendation Yes 19 15.2
No 106 84.8
Friends/ relative’s Recommendation Yes 30 24.0
No 95 76.0
Brand and brand awareness Yes 25 20.0
No 100 80.0
Brand Loyalty Yes 41 32.8
No 84 67.2

Also from the table 4.1, we can find that out of 125 respondents, 30.4%, 60.0%, 35.2%,
25.6%, 38.4%, 13.6%, 32.8%, 15.2%, 65.6%, 50.4%,52.0%,33.6%, 28.0%, 43.2%,17.6%,

32
28.8%, 15.2%, 24.0%, 20.0%, 32.8% product as package, quality, product variety, promotions,
brand endorsement, product demonstration, sales promotion, relationship marketing, price,
need, affordability, extra benefits, availability, packaging, dignity, lifestyle, retailer’s
recommendation, friends/ relative’s Recommendation, brand and brand awareness and brand
loyalty while buying FMCG product. Among 20 factors, price and quality factor is taken as
the most important factor for the purchase of FMCG products whereas relationship marketing,
product demonstration and retailer recommendation is taken as least important factor.

4.2.2. Spending while buying FMCG products

Spending on buying FMCG

36.8%

27.2%
24.8%

11.2%

Less than 500 500-1000 1001-2001 2001 and above

Figure 4.6: Frequency of spending while buying FMCG products

In this survey, out of the total number of respondents 36.8% respondents spend less than
Rs.500, 24.8 % spend between Rs.500-1000, 11.2% spend between Rs. 1001-2001 and 27.2%
spend Rs 2001 and above for the purchase FMCG products after while purchasing FMCG
products. This indicates that respondents usually don’t buy the FMCG products in stock and
spend less.

4.2.3 Factors for switching brand

The switching cost of the consumer is generally negligible in terms of low involvement goods.
But what are the factors those motivate a consumer to switch the brand? To find out the same,
respondents were asked on what conditions would they consider switching a particular brand.

33
 24.0% 22.4% Factors for switching brand

15.2% 16.0%
12.0%
7.2%
3.2%

Figure 4.7: Frequency for factors for switching brand

Out of the total number of respondents, 24.0% respondents consider better quality, 22.4%
respondents consider price offs, 16.0% consider dissatisfaction from current brand, 15.2%
consider dissatisfaction from current brand, 12.0% consider additional benefits, 7.2% consider
advertisement and 3.2% consider advertisement for switching brand. Among 7 factors better
quality is taken as the most important factor for the switching the brand of FMCG products
whereas promotional scheme is taken as least important factor.

4.3 Descriptive Analysis

The following tables and graphs illustrate the descriptive statistics of our sample. Basically,
this section offers the study of the variables with mean, variance, one sample t-test & one way
ANOVA.

4.3.1 Relationship between gender and overall factors influencing purchase decision of
FMCG products

Table 4.2: T-test between gender and overall factors

n Mean Std. Deviation Minimum Maximum T-Value P- Value
Male 77 3.5712 .71245 1.16 5.00
Female 48 3.5335 .40287 2.63 4.57 32.445 .000
Total 125 3.5575 .61657 1.16 5.00
Table 4.2 shows the relationship gender and overall factors influencing purchase decision of
FMCG products. Mean above 3 states most of the respondents agree for the influencing factors
while making purchase decision of FMCG products. Also the P-value is obtained 0.000 which

34
is less than alpha, i.e. P < α, where α=0.05. Hence, we reject Ho1. Therefore, it is concluded
that there is a significant relationship between gender and FMCG purchase decision.

4.3.2 Relationship between age and overall factors influencing purchase decision of
FMCG products

Table 4.3: Anova test between age and overall factors

N Mean Std. Deviation Minimum Maximum F-Value P- Value
Below 18 22 3.627 0.517 3.000 5.000
18-25 Years 29 3.483 0.438 2.113 4.550
26-35 Years 52 3.541 0.749 1.160 5.000
0.352 0.788
36 Years and
22 3.627 0.583 2.960 5.000
Above
Total 125 3.557 0.617 1.160 5.000
Table 4.3 shows the relationship age group and overall factors influencing purchase decision
of FMCG products. Mean above 3 states most of the respondents agree for the influencing
factors while making purchase decision of FMCG products. Also the P-value is 0.788 which is
greater than alpha, i.e. P > α, where α=0.05. Hence, we do not reject Ho2. Therefore, there is
no significant relationship between age group and FMCG purchase decision.

4.3.3 Relatinship between income level and overall factors influencing purchase decision
of FMCG products

Table 4.4: Anova between income level and overall factors

Income level n Mean Std. Deviation Minimum Maximum F-Value P- Value

Below 15000 44 3.510 0.411 3.000 5.000
15000-25000 25 3.626 0.468 2.630 4.920
25001-35000 19 3.571 0.524 2.113 4.287
0.204 0.894
35001 and
37 3.561 0.905 1.160 5.000
above
Total 125 3.557 0.617 1.160 5.000
Table 4.4 shows the relationship income level and overall factors influencing purchase
decision of FMCG products. Mean above 3 states most of the respondents agree for the

35
influencing factors while making purchase decision of FMCG products. Also the P-value is
obtained 0.894which is greater than alpha, i.e. P > α, where α=0.05. Hence, we do not reject
Ho3. Therefore, it is concluded that there is no significant relationship between income level
and FMCG purchase decision.

4.3.4 Relatinship between education level and overall factors influencing purchase
decision of FMCG products

Table 4.5: Anova between education level and overall factors

Eduaction n Mean Std. Deviation Minimum Maximum F-Value P- Value

S.L.C and 21 3.556 0.451 3.000 4.723
below
Intermediate 23 3.508 0.436 3.000 5.000
Bachelors 51 3.538 0.706 1.160 4.920
0.176 0.912
Masters and
37 3.616 0.675 1.633 5.000
above
Total 13
3.557 0.617 1.160 5.000
2
Table 4.5 shows the relationship education level and overall factors influencing purchase
decision of FMCG products. Mean above 3 states most of the respondents agree for the
influencing factors while making purchase decision of FMCG products. Also the P-value is
obtained 0.912 which is greater than alpha, i.e. P > α, where α=0.05. Hence, we do not reject
Ho4. Therefore, it is concluded that there is no significant relationship between education level
and FMCG purchase decision.

4.3.5 Relationship between product factor and purchase decision of FMCG products

Table 4.6: T-test of product factor for influence of FMCG purchase decision
Factors n Mean Std. Deviation T-Value P-Value

Average product 125 3.78 0.72 11.98 0.00

Product as package is important for the

purchase of FMCG product 125 3.70 0.92 8.59 0.00

125 4.02 0.84 13.67 0.00

Quality consistency is the major factor for

36
 Factors n Mean Std. Deviation T-Value P-Value

me to continue using a particular brand

I would prefer to buy product that has

variety 125 3.62 0.84 8.20 0.00

Table 4.6 shows the relationship between product factor and purchase decision of FMCG
products. Mean above 3 states that product factor is taken as important factor while making
purchase decision of FMCG products. As the mean of product is greater than 3, it shows that
while purchasing FMCG, respondents consider the product factor. The highest mean is for
quality and the lowest mean is for product variety.

Also the P-value is obtained 0.000 which is less than alpha, i.e. P < α, where α=0.05. Hence,
we reject Ho. Therefore, it is concluded that there is a significant relationship between product
factor and FMCG purchase decision. This in turn lets the decision to reject H04 hypothesis.

The product factor influencing the purchase is loaded with three important variables, product
as package, quality and product variety. Consumers want to have a product as a whole package
whatever they want it must contain in a FMCG. The survey proved quality as most influencing
variable. They also seek different variety in FMCG that may affect their product.

4.3.6 Relationship between promotion factor and purchase decision of FMCG products

Table 4.7: T-test of promotion factor for influence of FMCG purchase decision
Factors n Mean Std. Deviation T-Value P-Value
12
Average promotion 5 3.45 0.68 7.39 0.00
If it is advertising intensively, I 12
would buy that product 5 3.30 0.94 3.51 0.00
Brand endorsement influences the 12
product purchase in case of FMCG 5 3.42 0.95 4.98 0.00
Educating population about their
brand and product is influencing 12
factor for the purchase of product 5 3.58 0.82 7.89 0.00

37
 Factors n Mean Std. Deviation T-Value P-Value
Sales promotions plays important
role in influencing purchase of 12
FMCG 5 3.55 0.87 7.05 0.00
Relationship marketing plays
important role in influencing the 12
purchase of FMCG 5 3.38 0.93 4.52 0.00

Table 4.7 shows the relationship between promotion factor and purchase decision of FMCG
products. Mean above 3 states that promotion factor is taken as important factor while making
purchase decision of FMCG products. As the mean of promotion factor is greater than 3, it
shows while purchasing FMCG, respondents consider the promotion factor. The highest mean
is for educating population about their brand and lowest mean is for advertising intensively.

Also the P-value is obtained 0.000 which is less than alpha, i.e. P < α, where α=0.05. Hence,
we reject Ho. Therefore, it is concluded that there is a significant relationship between
promotion factor and FMCG purchase decision. This in turn lets the decision to reject H05
hypothesis. Educating the population about their brand and product and sales promotion
variables emerged as key influencing variables in Promotion factor. Marketers’ have to attempt
to educate customers regarding various aspects of the product/brand do influence the purchase
decisions. Sales promotions can play an important as the customers can get attracted by
various sales promotion techniques like, free offers, discounts. Product demonstration is least
prioritized among other variable.

4.3.7 Relationship between value factor and purchase decision of FMCG products

Table 4.8: T-test of Value factor for influence of FMCG purchase decision
Factors n Mean Std. Deviation T-Value P-Value
Average value 125 3.72 0.78 10.27 0.00
Price is important factor for the 125 3.85 1.06 8.92 0.00
purchase of product
I would buy product as per my need 125 3.74 0.94 8.84 0.00
I would buy product which is 125 3.68 0.96 7.96 0.00

38
 Factors n Mean Std. Deviation T-Value P-Value
affordable
I would buy product which has extra 125 3.70 0.97 8.03 0.00
benefits
I generally buy daily use products that 125 3.62 0.90 7.69 0.00
are easily available
Table 4.8 shows the relationship between value factor and purchase decision of FMCG
products. Mean above 3 states that value factor is taken as important factor while making
purchase decision of FMCG products. The highest mean is for price and the lowest mean is for
product availability.

Also the P-value is obtained 0.000 which is less than alpha, i.e. P < α, where α=0.05. Hence,
we reject Ho. Therefore, it is concluded that there is a significant relationship between value
factor and FMCG purchase decision. This in turn lets the decision to reject H06 hypothesis. In
the present study it is shown that consumers are price sensitive and relates the purchase with
need satisfaction. They give value to that product which is low priced, satisfy their need, have
extra benefits and affordable for their pockets. The product which has maximum of these
attributes is treated as most valuable product by consumers.

4.3.8 Relationship between Attitude factor and purchase decision of FMCG products

Table 4.9: T-test of Attitude factor for influence of FMCG purchase decision
Factors n Mean Std. Deviation T-Value P-Value
Average attitude 125 3.38 0.75 5.73 0.00
Packaging provides impression of a
125 3.45 0.95 5.30 0.00
product and it affects the purchase
I want to have those products which
make me feel dignified while 125 3.30 0.85 3.98 0.00
purchasing and using the product
I link the purchase of FMCG with
125 3.40 0.85 5.25 0.00
the attitude and lifestyle

39
Table 4.9 shows the relationship between attitude factor and purchase decision of FMCG
products. Mean above 3 states that attitude factor is taken as important factor while making
purchase decision of FMCG products. The highest mean is for packaging and the lowest mean
is for dignity.

Also the P-value is obtained 0.000 which is less than alpha, i.e. P < α, where α=0.05. Hence,
we reject Ho. Therefore, it is concluded that there is a significant relationship between interest
factor and FMCG purchase decision. This in turn lets the decision to reject H07 hypothesis.
The present study proved that consumer links their purchase with the attitude and lifestyle.
Packaging is the first impression of a product and it affects the purchase of decision of
consumers. Consumers usually relate the FMCG to feel dignified while purchasing and using
the product.

4.3.9 Relationship between interest factor and purchase decision of FMCG products

Table 4.10: T-test of Interest factor for influence of FMCG purchase decision
Factors n Mean Std. Deviation T-Value P-Value
Average interest 125 3.45 0.71 7.02 0.00
Retailer's recommendation make me
interested to buy a product 125 3.29 0.81 3.97 0.00
Brand and brand awareness makes a
consumer ready to purchase of
FMCG 125 3.52 0.86 6.78 0.00
Brand loyalty is influencing for
purchase of FMCG 125 3.50 0.92 6.02 0.00
Friend's and family suggestion plays
a vital role in deciding which
product to purchase. 125 3.49 0.96 5.71 0.00
Table 4.10 shows the relationship between interest factor and purchase decision of FMCG
products. Mean above 3 states that interest factor is taken as important factor while making
purchase decision of FMCG products. The highest mean is for brand awareness and Friends
and family’s suggestion for purchase and the lowest mean is for retailer’s recommendation.

40
Also the P-value is obtained 0.000 which is less than alpha, i.e. P < α, where α=0.05. Hence,
we reject Ho. Therefore, it is concluded that there is a significant relationship between interest
factor and FMCG purchase decision. This in turn lets the decision to reject H08 hypothesis.

4.3.10Average of factors for influence of FMCG purchase decision

Table 4.11: Average of factors for influence of FMCG purchase decision

Factors Average Value
Average product 3.78
Average promotion 3.45
Average value 3.72
Average attitude 3.38
Average interest 3.45
Table 4.11 shows average of factors for influence of FMCG purchase decision. Mean above 3
states that all factors is taken as important factor while making purchase decision of FMCG
products. The highest mean is for average of product followed by average of values and the
lowest mean is for average of attitude.

As the highest mean is for product factor, it is concluded product factor is taken as the most
influencing factor for the FMCG purchase decision. This in turn suggests that variables
product as package, quality and product variety are to be taken into consideration.

Table 4.12: Relationship among factors in purchase decision of FMCG products

Average Average Average Average Average
product promotion value attitude interest
Pearson Correlation
Average Sig. (2-tailed)
product N
Average Pearson Correlation 0.647
promotio Sig. (2-tailed) 0.000
n N 125 125
Average Pearson Correlation 0.448 0.563
value Sig. (2-tailed) 0.000 0.000

41
 Average Average Average Average Average
product promotion value attitude interest
N 125 125 125
Pearson Correlation 0.503 0.467 0.527
Average Sig. (2-tailed) 0.000 0.000 0.000
attitude N 125 125 125 125
Pearson Correlation 0.478 0.514 0.573 0.693
Average Sig. (2-tailed) 0.000 0.000 0.000 0.000
interest N 125 125 125 125 125
Pearson Correlation 0.769 0.794 0.790 0.806 0.819
Average Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000
overall N 125 125 125 125 125

Table 4.12 shows the relationship various factors in purchase decision of FMCG products. The
two variables product factor and promotion factor are positively correlated (r= 0.647, p=
0.000) and has significant relationship between them. The two variables product factor and
value factor are positively correlated (r= 0.448, p= 0.000) and has significant relationship
between them. The two variables product factor and attitude factor are positively correlated (r=
0.503, p= 0.000) and has significant relationship between them. The two variables product
factor and interest factor are positively correlated (r= 0.478, p= 0.000) and has significant
relationship between them. The two variables product factor and overall factor are positively
correlated (r= 0.769, p= 0.000) and has significant relationship between them. The two
variables promotion factor and overall factor are positively correlated (r= 0.794, p= 0.000) and
has significant relationship between them. The two variables value factor and overall factor are
positively correlated (r= 0.790, p= 0.000) and has significant relationship between them. The
two variables attitude factor and overall factor are positively correlated (r= 0.806, p= 0.000)
and has significant relationship between them. The two variables interest factor and overall
factor are positively correlated (r= 0.819, p= 0.000) and has significant relationship between
them.

42
4.3.11 Hypothesis Result Summary

Table 4.13: Hypothesis Result Summary

Hypothesis No. Statement Result
Ho1 There is significant relationship between gender Rejected
and purchase decision of FMCG products.
Ho2 There is no significant relationship between age Accepted
group and purchase decision of FMCG products.
Ho3 There is no significant relationship between Accepted
income and purchase decision of FMCG products.
Ho4 There is no significant relationship between Accepted
education level and purchase decision of FMCG
products.
Ho5 There is significant relationship between product Rejected
factor and purchase decision of FMCG products.
Ho6 There is significant relationship between Rejected
promotion factor and purchase decision of FMCG
products.
Ho7 There is significant relationship between value Rejected
factor and purchase decision of FMCG products.
Ho8 There is significant relationship between attitude Rejected
factor and purchase decision of FMCG products.
Ho9 There is significant relationship between interest Rejected
factor and purchase decision of FMCG products.

43
 CHAPTER V

SUMMARY AND CONCLUSION

5.1 Summary of findings

This study was conducted to find out the factors that affect the FMCG purchase decision.
Furthermore, the study shows the relationship of demographic factors like gender, age,
education level, and income level with the purchase decision of FMCG products.

Based on the literature review, in the study, the researcher identified variables like, product as
package, quality, product variety, promotions, brand endorsement, product demonstration,
sales promotion, relationship marketing, price, need, affordability, extra benefits, availability,
packaging, dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand
loyalty, brand and brand awareness. A theoretical model was then developed taking into
account these identified variables and perceived relation among them.

The study shows that every consumer in the market has his/her own preferences for purchase
of FMCG products. Consumers will be looking for certain attributes before purchasing the
products. The analysis and interpretation shows the collected information from sample
respondents, which provide the clear understanding of the respondents‟ attitudes regarding
various aspect/factors for purchase of Fast Moving Consumer Goods (FMCGs) or non-durable
goods - purchase and their consumption. Analysis of data has done through continuation of the
statistical tools which test the hypotheses.

Interestingly, this research has shown that the demographic factors such as age, education and
income of the consumer have no impact on purchase decision of FMCG goods. Only factor
that seem to be having impact was gender of the respondent. The consumers spend less for the
purchase of FMCG . Price offs and better quality are major factors to influence consumers to
switch the brands.

Consumers want to have a product as a whole package whatever they want it must contain in a
FMCG. The result showed that there is significant relationship between product factor and
FMCG purchase decision.Educating the population about their brand and product and sales
promotion variables emerged as key influencing variables in Promotion factor. The result

44
showed that there is significant relationship between promotion factor and FMCG purchase
decision.In the present study it is shown that consumers are price sensitive and relates the
purchase with need satisfaction. They give value to that product which is low priced, satisfy
their need, have extra benefits and affordable for their pockets. The result showed that there is
significant relationship between value factor and FMCG purchase decision.The present study
proved that consumer links their purchase with the attitude and lifestyle. Packaging is the first
impression of a product and it affects the purchase of decision of consumers. Consumers
usually relate the FMCG to feel dignified while purchasing and using the product. The result
showed that there is significant relationship between attitude factor and FMCG purchase
decision.It is common that a consumer will purchase that product in which he/she interested.
Current study proved that Brand and brand awareness and friend’s/ family recommendation in
case of FMCG make the consumers interested to buy a product. Brand loyalty is also affecting
the purchase of FMCG because it is noticed that consumers repeat their purchase for same
brand. The result showed that there is significant relationship between interest factor and
FMCG purchase decision.

Similarly, the results show that there is significant relationship between product as package,
quality, product variety, promotions, brand endorsement, product demonstration, sales
promotion, relationship marketing, price, need, affordability, extra benefits, availability,
packaging, dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand
loyalty, brand and brand awareness with the purchase decision of FMCG. The significance
value of product factor, promotion factor, value factor, attitude factor and interest factor
influence towards purchase decision of FMCG is 0.000, 0.000, 0.000, 0.000, 0.000 and 0.000
respectively. Also the five factors are positively correlated and have significant relation with
each other.

5.2 Conclusion

This research provides useful knowledge on the relationship of gender, age, education level,
and income level with the FMCG purchase decision. Furthermore the relationship between 20
important factors and purchase decision of FMCG is ascertain which are product as package,
quality, product variety, promotions, brand endorsement, product demonstration, sales
promotion, relationship marketing, price, need, affordability, extra benefits, availability,

45
packaging, dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand
loyalty, brand and brand awareness.

The research shows no any significant relationship of age, education, and income level with
the purchase decision of FMCG products. The findings of the study also shows that there is
significant relationship of product factor, promotion factor, value factor, attitude factor and
interest factor with the purchase decision of FMCG. As price influences purchase of FMCG, it
is recommended to pursue the low-price strategy in marketing. Attaining low price not only
requires low-cost manufacturing but also performing various marketing activities such as
promotion and distribution in a cost effective manner. It is also recommended to promote
goods on price plank. Value for money is very important when they purchased FMCG. As the
study revealed that the consumers (along with price) also think about product as package,
quality, product variety, promotions, brand endorsement, product demonstration, sales
promotion, relationship marketing, price, need, affordability, extra benefits, availability,
packaging, dignity, lifestyle, retailer’s recommendation, friend/family recommendation, brand
loyalty, brand and brand awareness, it is recommended to promote FMCG in lines of
rationality rather than just making low price appeals. Quality is important in the context of
purchase and consumption of FMCG as consumers prefer quality FMCG. Hence, it is
recommended not to compromise on the quality of FMCG. Low prices have to be charged
while maintaining the quality. Consumers are affected by their lifestyle and attitude. Marketing
is also influenced by celebrity endorsement and companies should take care of this and take
that celebrity who is popular in that particular areas.

In the end it is concluded that FMCG companies make such marketing strategies which create
a favorable environment for consumers and help to understand them which product suit best to
them. Special kind of marketing mix strategies are required for marketing which emphasize on
low price along with low cost phenomena.

46
5.3 Recommendations

The findings of this study have significant implications for brand managers, marketing
managers, sales managers, as well as concerned stakeholders of different FMCG brands. They
need to consider the factors like product as package, quality, product variety, promotions,
brand endorsement, product demonstration, sales promotion, relationship marketing, price,
need, affordability, extra benefits, availability, packaging, dignity, lifestyle, retailer’s
recommendation, friend/family recommendation, brand loyalty, brand and brand awareness
because these factors affect the purchase decision.

Finally, the research was limited only to social media users for the future researcher it is
suggested to consider the sample from whole of Nepal to accurately find the relationship of
different factors that affect the purchase decision of FMCG goods.

This study concludes that before marketers decide on whom to target their product to, they
should learn the behavior of each consumer goods to see what is most important to the
customers. In doing so, marketers can have a clear view and understanding on how to reach
their designated target market and what is the best way to reach them.

Studies on consumer behavior should be made frequently. Most of the consumers showing
brand loyalty indicate towards hidden assets of the manufactures or sellers. They should have
knowledge of these valuable assets. It will give them effective guideline for developing
successful marketing strategy.

47
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 APPENDIX

Appendix 1: Questionnaire

Survey on “A STUDY OF FACTORS INFLUENCING ON PURCHASE DECISION OF

FAST MOVING CONSUMER GOODS (FMCG)”.

I am Jenij Tandukar, an MBA Student of IIMS College, Lincoln University. This research is an
important part of the Research Project for the completion of my masters degree. This
Questionnaire is presented for your valuable information about the influencing factors on
Purchase behavior for FMCG. Hence, kindly fill up the answers carefully following the
instructions. I assure that the data and information provided by you will be kept confidential
and only aggregate figures will be reported.

Kindly tick ( ) your answer accordingly.

Part A: Basic Information

Q1. Gender Q2. Age (years) Q3. Education background Q4. Income per month

1.Male  1.Below 18  1. SLC and below  1. Below 15000 

2.Female  2.18-25  2. Intermediate  2. 15000-25000 

3.26-35  3. Bachelors  3.25001-35000 

4.36 and above  4. Masters and above  4. 35001 and above 

Part B: Consumer preference

Q1. Do you consider any factors while purchasing the FMCG products?

1. Yes 

2. No 

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Q2. What are the factors that you consider while buying FMCG goods? (Multiple choice)

1. Product as package  2. Quality 

3. Product variety  4. Promotions 

5. Brand endorsement  6. Product Demonstration 

7. Sales promotion  8. Relationship marketing 

9. Price  10. Need 

11. Affordability  12. Extra Benefits 

13. Availability  14. Packaging 

15. Dignity  16. Lifestyle 

17. Retailer’s Recommendation  18. Friends/ relative’Recommendation 

19. Brand and brand awareness  20. Brand Loyalty 

21. Other: ………….. (please specify)

Q3. How much do you spend while buying FMCG products? (at a time)

1. Less than 500  3. 500-1000 

2. 1001-2000  4. 2001 and above 

Q4. You use Brand ‘A’ regularly. On what condition(s) will you consider trying Brand ‘B’?

1. Better Quality Assurance  5. Additional Benefits 

2. Price-offs  6. Dissatisfaction from current Brand 

3. Advertisement  7. Promotional Schemes 

4. Desire for new taste  8. Other: …………(please specify) 

52
Q5. As per your preference, please rate the following for Product (factor 1)

S.N. Factors Involved with the Strongly Disagree Neutral Agree Strongly
Purchase behavior Disagree Agree

1 Product as package is
important for the purchase of
FMCG product

2 Quality consistency is the

major factor for me to
continue using a particular
brand.

3 I would prefer to buy product

that has variety

Q6. As per your preference, please rate the following for Promotion (factor 2)

S.N. Factors Involved with the Strongly Disagree Neutral Agree Strongly
Purchase behavior Disagree Agree

1 If it is advertising intensively, I
would buy that product

2 Brand endorsement influences

the product
purchase in case of FMCG

3 Educating the population

about their brand and
product is influencing factor
for the purchase of product

4 Sales promotions plays

important role in influencing
purchase of FMCG

5 Relationship marketing plays

important role in influencing
the purchase of FMCG

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Q7. As per your preference, please rate the following for Value (factor 3)

S.N. Factors Involved with the Strongly Disagree Neutral Agree Strongly
Purchase behavior Disagree Agree

1 Price is important factor for

the purchase of product

2 I would buy product as per

my need.

3 I would buy product which is

affordable.

4 I would buy product which

has extra benefits.

5 I generally buy daily use

products that are easily
available

Q8. As per your preference, please rate the following for Attitude (factor 4)

S.N. Factors Involved with the Strongly Disagree Neutra Agree Strongly
Purchase behavior Disagree l Agree

1 Packaging provides
impression of a product and it
affects the purchase

2 I want to have those products

which make
me feel dignified while
purchasing and using the
product

3 I link the purchase of FMCG

with the attitude and lifestyle

54
Q9. As per your preference, please rate the following for Interest (factor 5)

S.N. Factors Involved with the Strongly Disagree Neutra Agree Strongly
Purchase behavior Disagree l Agree

1 Retailer’s recommendation
make me interested to buy a
product

2 Brand and brand awareness

makes a consumer
ready to purchase of FMCG

3 Brand loyalty is influencing

for purchase
of FMCG

4 Friends’ and family’s

suggestion plays a vital role in
deciding which product to
purchase.

XXX THANK YOU XXX

55