RESEARCH PROJECT REPORT

ON
FACTORS INFLUENCING ON PURCHASE DECISION OF
FAST MOVING CONSUMER GOODS IN KATHMANDU

Presented by:
JENIJ TANDUKAR
 INTRODUCTION

Kathmandu University School of

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Education
 BACKGROUND

• With the increase in no. of industries, competition among

them has also increased significantly
• Production is the prime activity of every industry and
successful marketing of the product is the ultimate goal.
• Successful marketers are those who deliver what
customers are willing to purchase as well as according to
their ability to purchase.
• 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.

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 BACKGROUND

• Consumer purchases are likely to be influenced by

physiological, psychological and sociological, factors.
• 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.

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 STATEMENT OF PROBLEM
• For the Fast Moving Consumer Goods (FMCG) goods,
people switch from one brand to another influenced by
various factors.
• As different consumers are leaning towards different
product attributes, it is needed to determine ―who wants
what, and ―what is important to whom.
• Research questions:
 Does consumer profile (age, gender, income, education
and occupation) have impact on purchase decision for
FMCG?
 What are the major factors that influence the purchase
decision of FMCG?

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 OBJECTIVES OF THE RESEARCH

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:
• To identify the dominant factors for the purchase
decision of FMCG products
• To examine the relationship between the influencing
factors and purchase decision of FMCG products

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 SIGNIFICANCE OF THE RESEARCH

• This study will help to know the consumer behavior on their

products.
• Useful for manufacturers and marketer of FMCGs to make
marketing strategies
• Reference for further researchers

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 THEOREICAL FRAMEWORK
Considers six factors including 24 variables that can
affect the consumer buying behavior.
Dependent variables
 purchase decision
Independent variables
product factor
Promotion factor
Value factor
Attitude factor
interest factor
demographic factors
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 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
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 HYPOTHESIS OF THE STUDY
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. 12
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.
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 METHODOLOGY OF THE STUDY

• Data Sources
– Primary data: Google form survey,
– Secondary data: different books, articles, reports,
websites, journals, and previous national and
international research
• Data Collection techniques
– Primary data: Online survey, questionnaire was sent
online in Goggle Forms for survey on email and
facebook
– Secondary data: desk study (Previous research, Official
statistics, Mass media, Diaries, Letters, Government
reports, Web information, Historical data and
information)

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• Data Collection Tools
– Secondary data: books, research journals,
publication, unpublished academic papers and on line
resources and their findings of researches
– Primary data: A structured questionnaire with close
ended questions
• Processing Operation
– The collected data collected from google forms was
extracted in Microsoft Excel sheet.
– The data was imported into SPSS.
• Analysis of Data
– done using various statistical tools such as frequency,
mean, standard deviation, cross tabs
– T-test and F- test was computed to test the required
hypothesis.
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 ANALYSIS/
RESULTS

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Demographic Profile of Respondents
Consideration of factors
Factors considered in purchase
decision
Spending while buying FMCG
products
Factors taken to Switch Brand
 HYPOTHESIS SUMMARY
Statement

1.There is significant relationship between gender and purchase decision of FMCG products.

2.There is no significant relationship between age group and purchase decision of FMCG products.

3.There is no significant relationship between income and purchase decision of FMCG products.
4.There is no significant relationship between education level and purchase decision of FMCG
products.

5.There is significant relationship between product factor and purchase decision of FMCG products.
6.There is significant relationship between promotion factor and purchase decision of FMCG
products.

7.There is significant relationship between value factor and purchase decision of FMCG products.

8.There is significant relationship between attitude factor and purchase decision of FMCG products.

9.There is significant relationship between interest factor and purchase decision of FMCG products.
 Conclusion
• Purchased by consumers of different gender, age, education and
income level
• Every consumer in the market has his/her own preferences for
purchase of FMCG products
• Product factor, promotion factor, value factor, attitude factor and
interest factor influences purchase decision of FMCG
• Price and quality is taken as the most important factor for the purchase
of FMCG products
• Relationship marketing, product demonstration and retailer
recommendation is taken as least important factor
• To switch brands, consumers are influenced by the quality and price
offs
• Manufactures should make marketing strategies which create a
favorable environment for consumers and help to understand them
which product suit best to them
• Before marketers decide on whom to target their product to, they
should learn the behavior of each consumer goods
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 THANK YOU

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 ANY QUESTIONS

???

Kathmandu University School of

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Education