Fast Moving Consumer Goods in Rural Market free essay sample

Keeping in view the frame of references the present paper is an attempt to study the factors affecting the purchase decision of consumers towards purchase of the Fast Moving Consumer Goods (FMCGs) and to recommend the policies which may be adopted by the advertisers to enhance awareness among the rural buyers. The study used primary data collected from a sample of 1000 rural consumers from the 40 villages of 04 districts of Haryana state with the help of a well-structured questionnaire by following „Foot-in-Door Strategy? (FIDS). And found that rural buyers perceived that TV commercials followed by print advertisements and word of mouth plays a significant role for taking the decision to purchase these FMCGs. We will write a custom essay sample on Fast Moving Consumer Goods in Rural Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Further, they consider their own experience, display at shops; incentive schemes for the purchase of these FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards the purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are no so strong that those may influence their decision to purchase these FMCGs. Hence, it may be recommended that the producers or marketers should frame ethical advertising strategies keeping in mind that rural people are fond of electronic and print media advertisements. Key Words: Frame of References, Foot-in-Door Strategy, FMCGs. Introduction As we know, consumers have different frame of references formed out of the information gathered from their experience. They try to fit the goods and services in these frames of references. If they do not fit they reject the  things. Many of these reference points are subconscious because they are deeply imbedded in the subconscious mind. It is important to have knowledge of assumptions and beliefs held by consumers. Some consumers may use price as an index of quality. They may declare a product or service as cheap if it sells at a price substantially below the level at which competitive brands are selling. Consumers make a number of assumptions regarding products, services and producers often without fact, e. g.  the beer in pastel colour bottles is thought to be lighter and beer in the coloured bottles is considered stronger. Similarly, natural fabrics e. g. wool are considered better that synthetic; and the products 1 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744 produced in one country are considered superior than p roduced in other country. Attributes and beliefs are closely related to attitude but harder to change than attitudes. Many times, they are obtained from previous generations and are implanted in an early age of person. People above certain group affiliations and their assumptions and beliefs are drawn from affiliations as in the case of a social class (Sumathi, et al. , 2003). REVIEW OF LITERATURE Sukato and Elsey (2009) examined the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzen? s theory of reasoned action model is employed as a theoretical framework and modified by adding the self-image construct. The results of the study confirm that beliefs, self-image, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers and therefore, the modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting. Vani, et al. (2010) examined consumer behaviour in Bangalore city regarding toothpaste bands and found that consumer awareness of toothpaste is less in Bangalore city. Oral care market offers huge potential as penetration and per capita consumption of oral care product is very low in India. Further, the study found that brand image, advertising and offer play an important role in purchasing toothpaste, sometimes based on the offer the consumer compare with competitor product and select the best one. Product attribute also analyzed by the consumer for deciding a brand. Switching of one product to other company product is mainly based on advertisement, brand name, packaging availability and price rise. Sridhar and Mishra (2010) analyzed that the rationale and method for studying product adaptation in rural markets and concluded that the findings of the study are contrary to the general understanding that rural is perceived very differently and hence operationalized differently by different organization. However, the results show that contingency theory holds true in case of product adaptation in rural markets also. With the increase in executives? representation of rurality, product adaptation degree also increased. Gautam and Gangal (2011) analyzed the factors responsible of the boom in rural marketing, consumers? preference for FMCG products based on 4 „A? s (i. e. Awareness, Affordability, Adoptability and Availability) by employing convenient sampling method for administering the questionnaires using Liker Scale to total 200 respondents of HUL ITC in rural areas of Agra district from January 2011 to June 2011. The study also found that the factors influencing the purchase decision of the respondents, consumers buying are influence the most by the product factor due to design, quality, durability, made from safe environment and product range but few respondents are not satisfied with the packaging, image and size of the product. Both the companies are almost on the same platform regarding the factors of competitive price, shape, design, Haats and mandis and message/languages/ presentation of advertisement. The consumers are showing their dissatisfaction for malls and super markets, greater mobility, shop is conveniently situated, and product display is attractive, value for price paid, cash discount and pricing policy. Lastly, the study concluded that in parameters like, image, shape and size, packaging, durability, small size products, low priced sample packets, price scheme, celebrity endorsement and use of transport like autos, camel carts, HUL has an edge over ITC. Vernekar and Wadhwa (2011) examined the consumer attitudes and perceptions towards eco-friendly products in FMCG sector and their willingness to pay on green products. The study revealed that the green products have substantial awareness among urban Indian customers and they are willing to pay something more on green products. The majority of customers considered that package is most important element of such products. Chandrasekhar (2012) analyzed the consumer buying behaviour and brand loyalty in rural markets regarding fast moving consumer goods and found that brand loyalty is more in Badangpet and Nadergul region and less in Chintulla in soaps category. In hair oil category, branded products usage is more in Badangpet and Nadergul villages and consumer prefer to purchase local brands in Chintulla village. It is also found that Vatika and Navratan hair oils dominate in Badangpet, Parachute hair oil in Nadergul and Gograda local brand and Dabur in Chintulla. In case of Biscuits category, consumers mostly buy in loose, which are available in nearby shops like Salt biscuits, Osmania biscuits etc. Parle-G and Tiger are mostly used brands in Badangpet. Tea is purchased in loose, which is available in local shops. The popular brands Red Label, Three Roses and Gemini are used in Badangpet village. Further, the study found that coffee consumption is very less or no consumption in Nadergul and Chintulla villages. In case of washing powder, Nirma dominate all the three selected sample rural markets regions. In remote area like Chintulla, Nirma sell Rs. 1 sachets. In washing soap category, Rin, 501, Nirma, XXX and Extra 3 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744 Local Brand dominates all the three selected rural markets. It is also concluded that Ponds, Chintol and Santoor face powder dominated the market and Pond? s has dominated the market in consumption in Badangpet. In sum, the study also found that male members of the family are alone going to buy consumer products and women are not interested in shopping and do not come out from their houses frequently. Jain and Sharma (2012) analyzed the brand awareness and customer preferences for FMCG products in rural market of Garhwal region. The study found that average awareness of the respondents in the rural market is approximately 75 per cent, 70 per cent, 72 per cent, 64 per cent and 73 per cent in case of shampoo, washing powder, soap, tea, toothpaste respectively, which infers that people in the rural market have on an average awareness about most of the products. In the shampoo category, the study found that the respondents give 1st rank to Pantene and last rank to Chik; in case of washing powder, 1st rank to Surf Excel and last rank to Nirma; to soap category, 1st rank to Dettol and last rank to Rexona; in case of Tea, 1st rank to Tata tea and last rank to Maharani tea and in category of toothpaste, 1st rank to Colgate and last rank to Cibaca which infers that advertising and marketing activities have major influences in choices of people in rural market. The study further found that among various factors like quality, price, easy availability, family liking, advertisement, variety, credit attributes of brand preference; the quality is the first preference in case of brand choices and rural people give least preference to variety and credit attributes. It is also concluded that there is a positive impact of media on brand preference of FMCG products among consumers. Jayswal and Shah (2012) analyzed the effect of some selected FMCG product? s television advertisements with commonly used negative emotional appeals on cognitive message processing style of Indian house wives. The study revealing different effect of different advertisement with negative emotional appeals derived that advertising creative aspect has considered most important and it has been truly said that â€Å"what you say is equally important to how you say. † Through varied hypothesis developed by the researcher, the findings is negative emotional advertising appeal makes the cognitive response positive, helps to form positive attitude and this increases the customer intention to buy the brand. The different advertising themes have difference in their effect on individual perception. When there are special discount and dentist suggest them to purchase the toothpaste they definitely purchase it. Ranu and Rishu (2012) analyzed the scope of Ingredient branding in creating sustainable differentiation advantage for FMCG companies. The results of the study revealed that careful planning must be done before entering into a relationship in order to maximize the benefits of any ingredient branding strategy. Along with the costs involved in forming and maintaining the alliance, and the opportunity cost involved for the partnering firm, the consumer? Perception about the benefits they derive from different types of sales promotion schemes in durable goods and to build a framework showing the valid relationships among all types of multiple consumer benefits of sales promotion in consumer durables. This exploratory study is mainly based on field survey carried out in India. The findings indicate that consumers perceive factors like savings, higher product quality, shopping convenience categorized as utilitarian benefits and value expression, entertainment, exploration categorized as hedonic benefits as primary reasons for taking advantage of various sales promotion schemes. Vaishnani (2012) examined and measured brand equity perception with reference to sales promotion schemes for selected FMCG products and it is concluded that there is no significant difference between of brand equity perception among gender as one of the demographic variables. Apart from it, it is concluded that there is significant difference between brand equity perceptions among various employment status. Adding to it, it is clear that self employed consumers compare to not employed 5 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. This is proven through study of FMCG data and it is shown that price promotions can be optimized to improve return without increased risk. After, reviewing the existing literature it is observed that the above studies have considered different factors a lot. However, these studies not focussed upon the purchase decision behaviour of rural areas. Consequently, the present study entitled â€Å"Customer’ Perception towards the Fast Moving Consumer Goods in Rural Market: An Analysis† may be conducted. Methodology and Objectives The present study is of exploratory, descriptive, pure and empirical in nature.