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htm Research article

Indian Journal of Education and Information Management
500
Vol:1 Issue:11 November2012 ISSN:2277-5374
A study on consumer behaviour towards selected fast moving consumer goods in
Coimbatore city
Dr. S. Mahalingam
1
, P. Nandha Kumar
2
1
Associate Professor, Bharathiar School of Management and Entrepreneur Development,
2
Research Scholar, Bharathiar School of Management and Entrepreneur Development, Bharathiar University, Coimbatore.
E-Mail:
1
yesemlingam@rediffmail.com,
2
nandhook@gmail.com
ABSTRACT
The consumer bahaviour plays an important role in marketing. This infuenced by various factors. In the changing global
scenario we fnd that consumers needs and wants to buy a product also changes with it. In this study titled A Study on Consumer
Behaviour towards Selected Fast Moving Consumer Goods in Coimbatore City the researcher has assessed the socio-economic pro-
fle ,shopping pattern consumer and found out the factors infuencing the consumer to purchase the selected FMCG products. The
primary data required for the study for collected through questionaire which was distributed to 400samples 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 infuenced by brand and quality in purchase of FMCGproducts. There by the rasearcher has suggested to improve
the quality in FMCG product through product development and external monitoring.
Keywords:Consumerbehaviour,FMCGproduct,Socio-economicprofleofconsumer,Factorsinfuencing.
1. Introduction
Consumer behaviour can be defned as the decision-making process and physical activity involved in acquiring, evaluat-
ing, using and disposing of goods and services. This defnition clearly brings out that it is not just the buying of goods/services that
receives attention in consumer behaviour but, the process starts much before the goods have been acquired or bought. The study of
consumer behaviour is the study of how individuals make decisions to spend their available resources (time, effort, money) on con-
sumption related item. It includes the study of what they buy it, where they buy it, how often they buy it and how often they use it.
It is important to know how consumer reacts towards different product features, price, and advertisement, in order to ensure strong
competitive advantage. All of us are consumers. We consume things of daily use. We also consume and buy these products accord-
ing to our needs, preferences and buying power. In some societies there is a lot of affuence and, these societies can afford to buy in
greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest needs.
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category in-
clude all consumables (other than groceries/pulses) that people buy at regular intervals. The most common in this list are toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to cer-
tain electronic goods. These items are meant for daily use of frequent consumption and have a high return. The sector is divided into
two distinct segments - the premium segment catering mostly to the urban upper middle class and the popular segment with prices as
low as 40% of the premium segment. The rapidly growing economy, increasing per-capita incomes, and rising trend of urbanization,
the FMCG market in India is expected to further expand to Rs 1,80,000 crore by 2015. The Indian FMCG sector with a market size
of USD 14.8 billion is the fourth largest sector in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09
to USD 30 billion in 2012.
1.1 Objectives of the study
To analyse the socio-economic profle of the sample respondents and their shopping pattern.
To assess the factors infuencing the consumer to purchase the selected FMCG products.
1.2 Need of the study
The FMCG sector shows tremendous growth last few years. Compare to other sectors investors prefer to make their investment in this
sector only. However there is high growth tendency for FMCG sector it faces some diffculties in achieving their destination. Hence
the purpose of this study is to identify the force that infuence on consumer shopping pattern particularly in Coimbatore. Because Co-
imbatore referred as the south Indian man sitter where most of the industry people living that why selected the FMCG product study.
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Indian Journal of Education and Information Management Vol:1 Issue:11 November2012 ISSN:2277-5374
1.3 Scope of the study
The present study target of Coimbatore city consumers, understanding their behaviour helps to identify the preference infu-
ence of brand in their purchase decision etc on the purchase of particular FMCG product. The insight will help the manufactures to
adopt new strategies which would help not only to attract new customer but also the maintain the loyalty of the existing customer, as
in the present competitive scenario the consumer are prepared to choose their right product not only based on their needs but also on
the basic of personal interest shown by the manufactures on them.
1.4 Limitations of the study
1. The research concentrates with only few FMCG like a paste, soap and shampoo.
2. 400 respondents are taken for the study.with the income in sample size the result may vary.
2. Review of Literature
C. Muthuvelayutham (2012) in his study titled The Study of Consumer Brand Loyalty on FMCG- Cosmetic Products
with Special Reference to Madurai analyzes the relationship between demographic variables on the brand loyalty of the consumers
and tries to identify the consumers switching factors in respected selected product category. This 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 in this study. Results
show that among the variables age, education level and gender have the most signifcant impact on consumers brand loyalty.
B.V.N.G. Chandrasekhar (2012) in his study Consumer Buying Behaviour and Brand Loyalty in Rural Markets: FMCG,
aims to study brand loyalty of various brands in rural markets and identify the presence and the importance of local brands. The pri-
mary data was collected through a questionnaire. This study was conducted on a sample of 60 respondents in the villages satanapalli,
tadipattri and mallapur.
SURESH BHAGWAT (2011) in his e article FMCG Markets to contribute in Indian rural Economy perspective in global
era This study focuses their efforts on empowering the rural consumer with the latest trends and technology and teaches them ways
to improve their standard of living.
GIHAN WIJESUNDERA (2010) in this article Factors infuencing the demand of beauty soap among female consumers
in the greater Colombo region Purpose of this study is to explore how the marketing mix & demographical factors infuence the
brand preference & purchasing behavior of beauty soap among the female consumers in the greater Colombo region. The results
indicated that there were statistical relationships between price, product, education, occupation and band preference and there was no
statistical relationship between place, promotion, age, income level, marital status, skin type, social factors, and substitute product
with the brand preference.
Thus the research concludes that the price, product, education & occupation are only having a statistical relationship with
the brand preference of female consumers in the greater Colombo region.
NUNTASAREE SUKAT (2009) in this article A model of male consumer behaviour in buying skin care products in Thai-
land The study purpose of the research was evaluated in some depth the phenomena of male consumer behaviour in buying skin care
products in Thailand. In order to cope with the research purpose, Fishbein and Ajzens theory of reasoned action model is employed
as a theoretical framework and modifed by adding the self-image construct. The research objective was fnd out the To what extent
do beliefs in product attribute, self-image, Normative infuences, and attitudes toward applying skin care products, affect Thai male
consumers purchase intention and purchase behaviour in buying skin care products. The researcher was fnd out the result or confrm
that beliefs, self-image, normative infuences, and attitudes have impacts on purchase intention and purchase behaviour in buying
skin care products among Bangkok male consumers. The modifed theory of reasoned action is appropriate to explain male consumer
behaviour in the purchase of specifc cosmetic product in the Thai setting.
3. Research Methodology
3.1 Research Design
This research is descriptive in nature as the study aims to fnd out the consumer behaviour about FMCG product. The study is carried
out the naturalistic observation and survey questioning, which are attributes of descriptive research.
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Vol:1 Issue:11 November2012 ISSN:2277-5374
3.2 Data Collection technique
Collection of data for the purpose of the research study is in the form of primary data and secondary data, as the study being
empirical in nature. Primary data includes experts suggestions, executives opinion, face-to-face interviews, and survey question-
naires. Questionnaires were collected based on the sampling technique from consumer behaviour about the FMCGs product.
The interviews that took take place with the consumer. Further, secondary data sources include focus group transcripts,
observation records, research related documents, published books, article, newspapers, published, and unpublished research work of
various institutions.
3.3 Designing the Questionnaire
Questionnaire is designed by the researcher in such a way that there are several questions designed on the basis of scaling
namely Likert Scales which have fve scales like strongly agree, agree, neutral, disagree, strongly disagree. This enables the respond-
ent to answer the questions in a structured manner by choosing one option among the fve options. It provides a sense of comfort by
choosing the precise answers. Each construct has minimum fve sub constructs related to the key factor of the main construct
3.4 Sampling Design
The sampling technique involved is Convenient Sampling. This study conducted in various place in Coimbatore city and as
the population is very high the researcher couldnt conduct a census study. Due to time constraint convenient sample was followed.
3.5 Sample size of the study
3.5.1 Sample size identifcation
Here are the formulas used in our Sample Size Calculator:
*
Sample Size Ss = Z
2
* (P) * (1-P)
C 2
Where:
Z = Z value (e.g. 1.96 for 95% confdence level)
p = percentage picking a choice, expressed as decimal
(.5 used for sample size needed)
c = confdence interval, expressed as decimal (e.g., .04 = 4)
Determine Sample Size Confdence Level: 95% 99%
Confdence Interval: 0.5%
#
Population: 2633170 Sample size needed 384
*
Sources: (Research methodology methods and techniques by C.R.Kothari)
#
Sources: The census 2011 is the 15th national census survey conducted by the census organization of India.
Mr. C. Chandramouli is the commissioner & registrar general of the Indian 2011 census.
3.6 Statistical tool applied
Questionnaires were distributed and 400 samples were collected from the consumer. The verbal data in these questionnaires were
transformed into numerical data using a software application called PASW statistics 18. Further, all the questionnaires were entered
as values and different statistical tools like Percentage Analysis, Mean Score, Garrett Score, Pearson Chi-Square (Table 1).
Table 1.1General Profle of the Respondent
S.No Particulars Classifcation Frequency Percentage
1 Gender
Male
Female
212
188
53
47
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S.No Particulars Classifcation Frequency Percentage
2 Age
18-28
29-38
39-48
49-58
132
124
90
54
33
31
22
14
3
Educational
Level
No formal
Education
School
Education
UG
PG
Above PG
5
112
162
95
26
2
28
40
23
7
4
Monthly
Income
Below Rs.5000
Rs.5000 -
Rs.15000
Rs.15001 -
Rs.25000
Above Rs.25000
10
100
104
186
3
25
26
46
Total
400
100
Source: Primary Data
4. Analysis, Interpretation and Conclusion.
From the above table1.1 it is inferred that majority of respondents are male (53%) and belong to the age group 18-28(33%).
Majority of respondents have completed their higher education(40.5%) and earn monthly income Above Rs.25,000(46.5%) .
4.1 Present Brand of tooth paste of Respondents
Table 1.2 Present brand of paste of respondents Chart 1.2 Present brand of Toothpaste of respondents
The above table 1.2 show the FMCG products which was used by the respondents. It can be concluded from the table that
majority of the respondents used the Colgate brand.
S.No
Name of the
Product
Frequency Percentage
1 Close-up 62 15.5
2 Colgate 216 54.0
3 Dabur 39 9.8
4 Himalaya 17 4.3
5 Pepsodent 54 13.5
6 Vicco 12 3.0
Total 400 100.0
Source: Primary Data
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Vol:1 Issue:11 November2012 ISSN:2277-5374
4.2 Present Brand of toilet soap of Respondents
Table 1.3 Present brand of soap of respondents Chart 1.3 Present brand of Toilet Soap of respondents
The above table 1.3 show the FMCG products which was used by the respondents. It can be concluded from the table that
majority of the respondents used the hamman brand (Fig 1.3).
4.3 Present Brand of Shampoo of Respondents
Table 1.4 Present brand of shampoo of respondents Chart 1.4 Present brand of shampoo of respondents
The above table 1.4 show the FMCG products which was used by the respondents. It can be concluded from the table
1.5showsthat the buying decisions the FMCG products. It can be observed form the table that majority of the respondents are opined
that brand name which ranked as frst by them with Garrett score as 62.36. The company more concentrates the FMCG products brand
name, quality and price to the consumer. It can be concluded from the above table that majority of the respondents are opined that
brand name was the frst rank of buying decision.
4.4 Age of respondents and their agreeability that vital role played by FMCG brand adverstiment infuences
the consumers to buy the brand
4.4.1 Toothpaste
Null hypothesis:There is no signifcance relationship between age and Advertisements Infuencing on consumer behavior.
Alternative hypothesis: There is signifcance relationship between age and Advertisements Infuencing on consumer
behavior.
S.No
Name of the
Product
Frequency Percentage
1 Cinthol 56 14.0
2 Dettol 46 11.5
3 Dove 57 14.3
4 Hammam 105 26.3
5 lifebuoy 46 11.6
6 Lux 39 9.8
7 Pears 40 10.0
8 vivel 11 2.8
Total 400 100
Source: Primary Data
S.No
Name of the
Product
Frequency Percentage
1 All clear 25 6.3
2 Clinic + 77 19.3
3 Dove 93 23.3
4 Head&Shoulder 71 17.8
5 Himalaya 26 6.5
6 Pantene 47 11.8
7 Sun Silk 61 15.3
Total 400 100
Source: Primary Data
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Table 1.5 FACTORS INFLUENCING BUYING DECISION OF RESPONDENT IN REGARD TO TOOTHPASTE AND TOILET SOAP AND
SHAMPOO
4.4.2 Toilet soap
Null hypothesis:There is no signifcance relationship between age and Advertisements Infuencing on consumer behavior.
Alternative hypothesis: There is signifcance relationship between age and Advertisements Infuencing on consumer behavior
4.4.3 Shampoo
Null hypothesis: There is no signifcance relationship between age and Advertisements Infuencing on consumer behavior.
Alternative hypothesis: There is signifcance relationship between age and Advertisements Infuencing on consumer behavior
Table 1.6 Showing the relationship between age of respondents and their agreeability that adverstiment infuences the consumers to
buy the brand
S.No
Name of the
product
Factors
infuencing
Toothpaste Toilet soap Shampoo
Garrett
Score
Rank Garrett Score Rank
Garrett
Score
Rank
1 Brand name 62.36 1 62.67 1 62.83 1
2 Quality 57.02 2 57.07 2 56.50 3
3 Price 54.79 4 55.01 4 57.21 2
4 Easy Availability 53.37 5 53.27 5 52.18 5
5 Quantity 55.13 3 55.04 3 55.27 4
6 Package 49.88 6 50.33 6 49.02 6
7 Trade Name 45.60 7 46.02 7 47.42 7
8
Date of
manufacturing
43.42 8 42.28 8 43.62 8
9 Transparent 40.57 9 39.39 9 39.46 9
10 Afordabilirty 36.43 10 36.68 10 36.86 10
Source: Primary Data
Products
Name of the
analyses
Value df
Asymp. Sig.
(2-sided)
Toothpaste Pearson Chi-Square 23.598 16 .099
Soap Pearson Chi-Square 22.774 16 .120
Shampoo Pearson Chi-Square 24.701 16 .075
Source: Primary Data
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From the table 1.6 it is noted that P-value (0.099) is great then 0.05, hence the null hypothesis is accepted. It is inferred the
age of respondent and advertisements watching have no relation with their perception about the tooth paste, soap table it is noted that
P-value (0.120) is great then 0.05, hence the null hypothesis is accepted. It is inferred the age of respondent and watching advertise-
ments have no relation with their perception about the soap and shampoo table it is noted that P-value (0.075) is great then 0.05, hence
the null hypothesis is accepted. It is inferred the age of respondent and advertisements watching have no relation with their perception
about the shampoo.
5. Summary of fndings, Suggestions and Conclusion
Though the study is relating to bahaviour of consumers, most of the consumers are infuenced by brand and quality in pur-
chase of FMCG. If the companies adopt the following suggestions, they can perform well in the market with the high market share.
Quality in FMCG products may be achieved through acquiring training in business development, quality product
development, and marketing external monitoring of quality
For improving effectiveness of the scheme the management should focus on proper timing of launching scheme,
communication and transparency regarding sales promotion schemes.
Glance at a wide variety of direct and indirect competitors to gauge where your price falls.
Use life cycle analysis to select the best pricing policy for satisfying anticipated customer trends and winning market
approval and market share growth.
Use scientifc product classifcation analysis to determine the optimal pricing strategy according to buyer behavioural
constants observed in specifc product category types.
Increase the number of layers between the company and the customer.
Increase the number of partners in the layer
FMCGs should create impression of being premium for a given price
Introduce different package design and size to attract the customers.
Adopt Unusual Sales Point Marketing Strategy.
5.4.1 Conclusion
It is concluded from this study that FMCG sector is growing and will continues to grow very fast. The futures for the
FMCG sector look extremely encouraging. The sector having under gone a structural change is all set to emerge stronger in future.
The FMCG market remains highly fragmented with almost half of the market representing brand up package homemade product.
This presents a tremendous opportunity for the markets of branded product. The study on the consumer behaviour towards the
products of FMCG has received a pivotal position in the market for paste, soap, shampoo although there are many competitors in the
market .FMCG was able to maintain hold its top rank providing quality product at reasonable price to consumer. Quality is the main
motivating factor for the consumer to buy the product of FMCG. Introduction of new products in the market to satisfy the consumer
is also an importance reason for FMCGs to hold the top in the consumer market. 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.
6. References
1 Muthuvelayutham(2012) The Study of Consumer Brand Loyalty on FMCG- Cosmetic Products with Special Reference to
Madurai. European Journal of Scientifc Research ISSN 1450-216X Vol.71 No.1 (2012), pp. 127-143.
2 Chandrasekhar (2012) Consumer Buying Behaviour and Brand Loyalty in Rural Markets: FMCG. IOSR Journal of Business
and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 2 (July-Aug. 2012), PP 50-67.
3 SureshBhagwat (2011) FMCG Markets to contribute in Indian rural Economy perspective in global era. Half yearly Vision
507 Research article www.iseeadyar.org/ijid.htm
Indian Journal of Education and Information Management Vol:1 Issue:11 November2012 ISSN:2277-5374
research review research journal vol. I, issue. I, June 2011 to Nov. 2011, ISSN 2250-169.
4 Gihan Wijesundera (2010) Factors infuencing the demand of beauty soap among female consumers in the greater Colombo
region. ICBI 2010 - University of Kelaniya, Sri Lanka.
5 Nuntasaree Sukat (April 2009) in this article A model of male consumer behaviour in buying skin care products in Thailand.
ABAC Journal Vol. 29, No. 1 (January-April 2009, pp.39-52).
WEBSITES
www.springerlink.com
BOOKS
Consumer Behaviour & Marketing Research, Suja R Nair, Himalay Publishing House, 1st. Edition, 2004.
Consumer Behaviour, ICFAI University, May - 2005.
Consumer Behaviour, Leon G. Schiffman & Leslie Lazar Kanuk, PHI - EEE, 9th. Edition, 2006.