Asia Pacific Journal of Research Vol: I Issue XVIII, October 2014

ISSN: 2320-5504, E-ISSN-2347-4793

CONSUMER BEHAVIOUR TOWARDS FAST MOVING CONSUMER GOODS

IN PUDUCHERRY

Mr. S.THANIGACHALAM
Ph.D., Research Scholar and Associate Professor,
Department Commerce, Bharathidasan Government College for Women,
Puducherry
Dr. K. VIJAYARANI
Professor and Head,
Commerce Wing, DDE, Annamalai University,
Annamalainagar -608 002

ABSTRACT

The importance promotional offers, availability of brands are important that companies must give it
sufficient consideration before they plan and implement their marketing strategies. The FMCGs sector is a
very dynamic sector in India. A major goal is to satisfy the needs and wants of consumer and their target
markets more effectively and efficiently. This article highlights the consumer behaviour towards fast
moving consumer goods in puducherry.

KEY WORDS
Consumer, Marketing Strategies, Fast Moving Consumer Goods (FMCGs), Consumer Packaged
Goods (CPG), Pre-Purchase Behavior and Post- Purchase Behavior.

INTRODUCTION
The Fast Moving Consumer Goods (FMCG) sector is one of the booming sectors of the Indian
economy which has experienced outstanding growth in the past decade. This sector comprises of three
main segments, which include personal care, household care, food and beverages. Personal care comprises
of oral care, hair care, toiletries, soaps and cosmetics; household care comprises of fabric wash and
household cleaners; and food and beverages include health beverages, soft drinks, cereals, dairy products,
bakery products, chocolates etc., FMCG sector is an important contributor to Indias Gross Domestic
Product (GDP) and is also the fourth largest sector in the Indian economy, responsible for providing

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employment. This sector also creates employment for around three million people in downstream activities,
which are generally carried out in smaller towns and rural India.

CONSUMER BEHAVIOUR
Consumer behavior is the study of how individuals, groups and organizations. Select, buy and
dispose of goods, services, ideas or experiences to satisfy their needs and wants. Consumer behaviour may
be defined as the decision process and physical activity individuals engage in when evaluating, acquiring,
using or disposing of goods and services. Several aspects of this statement need emphasis and elaboration
so that their meaning can be more fully appreciated.

FAST MOVING CONSUMER GOODS

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer
Goods (FMCG). FMCG products are those that get replaced within a year. FMCG generally includes wide
range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning
products, shaving products and detergents, as well as other non-durables such as glassware, bulbs,
batteries, paper products, and plastic goods. FMCG also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars. Fast moving consumer goods are also
known as Consumer Packaged Goods (CPG).

REVIEW OF LITERATURE
Ankit Katiyar, and Nikha Katiyar, (2014) An Empirical Study of Indian Consumer Buying
Behavior of FMCG Products (With Special Reference Of Bathing Soap), bathing soap are fast moving
consumer goods that have seen a surge in their sales in the past few decades in India more and more people
are opening up to the idea of experimenting and trying out newer bath soap. This study is attempt to cover
the various factors that influence the buying decision of consumers who plan to purchase and or used bath
soap. FMCG sector is the fourth largest sector in India touching everybody lifes in every day. The FMCG
goods sector is vital contributor to Indias gross domestic products.
Chitra. R (2014) An empirical study on Customers Purchase Intention towards Branded
Apparels, this paper aims to study factors affecting customers purchase intention towards branded
apparel. Purchase intention is explained in terms of general consumer variables (normative influence,
consumer confidence) and brand specific variables (perceived quality, emotional value).
Nasrudeen .R and Mohamed, (2014) Level of Consumption of Fast Moving Consumer Goods
by Rural Consumers An Analytical Study, ever since independence of India, because of some obvious
reasons, marketing acquired a largely urban bias. It was the green revolution in the seventies which
provided a much-needed boost to agriculture-based rural economy in the country. Subsequently, many
firms started showing interest in the rural markets and extend their penetration to reach smaller village and
towns. Further, now-a-days rural consumers are behaving like urban consumers towards the urban
lifestyle, fashion, taste, preferences, etc.
Rajasekaran, B and Saravanan, P. A. (2014) highlighted, Consumer Satisfaction on Fast
Moving Consumer Goods. The study throws on the attitudes, values, beliefs and perception of the
consumers with regards to the consumption of fast moving consumer goods. To study the brand preference
of fast moving consumer goods, the preference and opinion of consumer towards popular brands have
been taken into consideration.
Shanmugapriya .G and Sethuraman .R, (2014) Consumers Satisfaction towards Hamam Soap
in Thanjavur Town, the marketing scenario in India has undergone vast change since 1991 due to the
economic reforms. Post-liberalization, competition intensified in every product line and market, which

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forced brands to redefine their norms of existence in all industries. In the FMCG industry, especially in
toilet soap sector there has been severe competition among the MNCs, national and local players. Brand
loyalty is determined by several distinct psychological processes of the consumers and entails multivariate
measurements.
Sonia and Garima Dalal, (2014) To Study the Satisfaction Level of Customers towards the
Brand of Consumers Goods - A Study Carried out on Rural Masses, The Indian Fast Moving Consumer
Goods (FMCG) industry began to shape during the last fifty odd years. The FMCG sector is a corner stone
of the Indian economy. This sector touches every aspect of human life. Indian FMCG market has been
divided for a long time between the organized sector and the unorganized sector.

IMPORTANCE OF THE STUDY

The study focuses mainly on the consumer behaviour towards select Fast Moving Consumer Goods
in Puducherry, but with the prevailing trend, it is necessary to focus on the essence and emergence of
vibrant in marketing efforts from the FMCG companies. Thus with more number of companies entering
into the rural and urban market, with a variety of products, it is a must for the companies to study the rural
and urban consumer behaviour, on FMCG. This study will highlight the consumer behaviour before
purchase, at the time of purchase, post- purchase and factors influences the consumer behavior towards
purchase of FMCG products.

STATEMENT OF THE PROBLEM

Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost.
The profit from these products is relatively very small and the selling is in large quantities, so the
cumulative profit on such products can be large. The productions of Fast Moving Consumer Goods
companies have massive competition and they are forced to find new ways of making money. They did this
by learning the consumer common needs and buying motives, and to developing the solution. This is very
difficult because of the consumers has different needs, different expectations and also a sea changes in the
standard of living and life styles. At present the consumers are more dynamic, their taste, preferences are
also changing. The consumers are also looking product differentiation and the convenience offered. The
consumer has certain expectation from branded items in terms of its quality, price and packaging. The
money spent on advertisement makes the consumer aware of the latest brands in the market. The markets
conditions in do not assume an organized functioning pattern. The status of marketing needs to be
understood in view of social dynamics and various economic and operational gap theories. Thus,
appropriate planning for market in terms of trade for channel infrastructure, technology and behavioral
dimensions needs greater emphasis for achieving better economic efficiency. The consumers are finding
various problems in selecting their fast moving consumer goods. In order fulfill their expectation to know
the consumer behavior in the purchase decision in the FMCGs products. In this backdrop it is identified
that there is a need for research work in the field of consumer behavior of FMCG in the Puducherry.
The research deals with questions like.
1. What are the factors that are highly influences the consumer behavior in the purchase decision of
FMCGs products?
2. What are factors for the level of awareness, knowledge and loyalty of consumer regarding FMCGs?
3. What are factors highly influences the consumer pre-purchase behavior and post- purchase
behavior?

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SCOPE OF THE STUDY
Fast moving consumer goods are substantially used to enhance and protect the health and physical
appearance and also the dignity of the people among their counterparts. The spending on these products is
showing an increasing tendency. This is due to increase in income levels, fascination towards culture,
improvement in sanitary conditions, beauty awareness among teenagers is increased the usage of FMCG
products. Hence the researcher has chosen four FMCG for the present research. The commodities chosen
for the research are health care products, household care products, food and beverages, with this backdrop
the consumer behaviour towards fast moving consumer goods in Puducherry. The study is confined only to
Puducherry.

OBJECTIVES OF THE STUDY

The objective of the study is to understand the consumer buying behaviour towards FMCG Products.
For this, the objectives of the research work are as under:
1. To study the consumer behavior towards purchase decision towards fast moving consumer goods in
Puducherry.
2. To study the consumer pre- purchase behaviour towards fast moving consumer goods in
Puducherry.
3. To examine the consumer behavior at the time of purchase towards fast moving consumer goods in
Puducherry.
4. To analyze the factors influencing post- purchase behaviour and brand loyalty among the
population.

TESTING OF HYPOTHESES
Ho 1: There is no significant difference between consumers purchase decision and demographic variables.
Ho 2: There is no significant difference between demographic variables with respect to pre- purchase
behaviour of select fast moving consumer goods.
Ho 3: There is no significant difference between demographic variables with respect to at the time of
purchase behaviour of select fast moving consumer goods.
Ho 4: There is no significant difference between demographic variables with respect to post- purchase
behaviour of select fast moving consumer goods.

METHODOLOGY
The study is based on both primary secondary data. The primary data were collected directly from
the sample consumers through a well-devised interview schedule. Incomplete and inaccurate responses
were dropped out, upon the respondents having select three fast moving consumer goods viz., personal care
products, food products and household products as samples for the purpose of the study. For data collection
the researcher visited the respondents at their respondents more than once, at their leisure are conveniences.
The secondary data relating to the study were collected from books, journals, research articles, magazines,
reports, newspapers and websites. The researcher also visited the library of Indian Institute of Management,
Bangalore for the collection of some source materials.

SAMPLING DESIGN
Purposive sampling method was adopted for the study. The study is confined to puducherry district
only. Since the size of universe is infinite, the researcher decided to select a sample size of 500 respondent
consumers. Puducherry district comprises of four taluks namely, Bahour, Ozhukarai, Puducherry and
Villianur, from each taluk 125 respondents were selected for the study. In all 500 respondents are chosen

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from different age groups classifying them on the basis of literacy with the help of structured and
unstructured interviews and discussions with these respondents the information for this survey is gathered,
the classified as shown in the following Table1.
Table 1
Selection of Sample Distribution
S. No. Taluks No. of Respondents Percentage
1. Bahour 125 25
2. Ozhukarai, 125 25
3. Puducherry 125 25
4. Villianur 125 25
Total 500 100
Source. Office Records and Censes in 2011

STATISTICAL TOOLS USED

The processing, classification, tabulation, analysis and interpretation of data are done with the help
of SPSS package. The following statistical techniques have been applied depending on the nature of data
collected from the respondents, Percentage analysis, descriptive analysis (mean and standard deviation),
Independent samples t-test, one way ANOVA, correlation analysis and factor analysis. The reliability and
validity analysis of the data in this study was analysed using Statistical Package for Social Sciences
(SPSS v 16.0).

ANALYSIS AND INTERPRETATION OF FMCGS

This research finds out which consumer behaviour in select fast moving consumer goods. The
following statistical tools were applied T test, ANOVA and Correlation Analysis.

Table 1T- test for Purchase decision on the basis of Gender

Variables Gender N Mean SD SEM t-value P Value
Male 265 31.53 2.846 0.175
Purchase decision on the basis of product 8.550 0.001
Female 235 29.03 3.608 0.235
Male 265 19.15 2.430 0.149
Purchase decision on the basis of Price 9.421 0.001
Female 235 17.20 2.191 0.143
Male 265 11.81 3.627 0.223
Purchase decision on the basis of Place 12.145 0.001
Female 235 15.02 2.170 0.142
Male 265 29.17 3.901 0.240
Purchase decision on the basis of Promotion 12.262 0.001
Female 235 33.01 3.104 0.203
Source: Computed from the primary data * significant at 1 % level
Ho 1: There is no significant difference between consumers purchase decision on the basis of
gender.
The calculated t value of the consumer purchase decision on the basis of product 8.550 and it is
significant at 1 per cent level. The value indicates there is significant difference between consumers
purchase decision in product with respect to gender is rejected. The calculated t value of the consumer
purchase decision on the basis of product 9.421 and it is significant at 1 per cent level. The value indicates
there is significant difference between consumers purchase decision in price with respect to gender is
rejected. The calculated t value of the consumer purchase decision on the basis of product 12.145 and it is
significant at 1 per cent level. The value indicates there is significant difference between consumers
purchase decision in place with respect to gender is rejected. The calculated t value of the consumer
purchase decision on the basis of product 12.262 and it is significant at 1 per cent level. The value indicates
there is significant difference between consumers purchase decision in promotion with respect to gender is

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rejected. T test was applied to ascertain if there were any significant differences between consumer marital
status with respect to purchase decision in FMCGs and the following null hypotheses were framed:

Table 2 T-test for Purchase decision on the basis of marital status

Marital SEM t- P
Variables N Mean SD
status value Value
Purchase decision on the basis of Married 284 29.92 3.546 0.210
3.321 0.001
product Unmarried 216 30.93 3.258 0.222
Married 284 18.76 2.690 0.160
Purchase decision on the basis of Price 5.703 0.001
Unmarried 216 17.54 2.075 0.141
Married 284 11.32 2.901 0.172
Purchase decision on the basis of Place 21.042 0.001
Unmarried 216 15.94 1.998 0.136
Purchase decision on the basis of Married 284 28.99 2.937 0.174
14.766 0.001
Promotion Unmarried 216 33.58 3.788 0.258
Source: Computed from the primary data * significant at 1 % level
Ho 2: There is no significant difference between consumers purchase decision on the basis of marital
status.
The calculated t value of the consumer purchase decision on the basis of marital status 3.321 and it
is significant at 1 per cent level. The value indicates there is significant difference between consumers
purchase decision in product with respect to marital status is rejected. The calculated t value of the
consumer purchase decision on the basis of marital status 5.703 and it is significant at 1 per cent level. The
value indicates there is significant difference between consumers purchase decision in price with respect to
marital status is rejected. The calculated t value of the consumer purchase decision on the basis of marital
status 21.042 and it is significant at 1 per cent level. The value indicates there is significant difference
between consumers purchase decision in place with respect to marital status is rejected. The calculated t
value of the consumer purchase decision on the basis of marital status 14.766 and it is significant at 1 per
cent level. The value indicates there is significant difference between consumers purchase decision in
promotion with respect to marital status is rejected. T test was applied to ascertain if there were any
significant differences between consumer residential status with respect to purchase decision in FMCGs
and the following null hypotheses were framed:

Table 3, T - test for Purchase decision on the basis of Residential Status

SEM t- P
Residential N Mean SD value Value
Rural 192 31.73 2.722 0.196
Purchase decision on the basis of product 7.791 0.001
Urban 308 29.49 3.590 0.205
Rural 192 19.43 2.236 0.161
Purchase decision on the basis of Price 9.230 0.001
Urban 308 17.48 2.388 0.136
Rural 192 11.15 3.319 0.240
Purchase decision on the basis of Place 12.353 0.001
Urban 308 14.67 2.725 0.155
Purchase decision on the basis of Rural 192 28.67 3.698 0.267
11.169 0.001
Promotion Urban 308 32.41 3.541 0.202
Source: Computed from the primary data * significant at 1 % level
Ho 3: There is no significant difference between consumers purchase decision on the basis of residential
status.

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The calculated t value of the consumer purchase decision on the basis of residential status 7.791 and
it is significant at 1 per cent level. The value indicates there is significant difference between consumers
purchase decision in product with respect to residential status is rejected. The calculated t value of the
consumer purchase decision on the basis of residential status 9.230 and it is significant at 1 per cent level.
The value indicates there is significant difference between consumers purchase decision in price with
respect to residential status is rejected. The calculated t value of the consumer purchase decision on the
basis of residential status 12.353 and it is significant at 1 per cent level. The value indicates there is
significant difference between consumers purchase decision in place with respect to residential status is
rejected. The calculated t value of the consumer purchase decision on the basis of residential status 11.169
and it is significant at 1 per cent level. The value indicates there is significant difference between
consumers purchase decision in promotion with respect to residential status is rejected.
Testing the significant difference between consumers educational qualification with respect to
purchase decision of select fast moving consumer goods in Puducherry
One way ANOVA was applied to ascertain if there were any significant difference between
consumer educational groups with respect consumer purchase decision in select fast moving consumer
goods and the following null hypotheses has been framed:
Ho 4: There is no significant difference between consumers purchase decision on the basis of educational
qualification.

Table 4 ANOVA for Purchase Decision on the basis of Educational Qualification

P
Variables Educational qualification N Mean SD SE F-value
Value
Purchase decision Up to school level 116 30.96 3.285 0.305
on the basis of Graduate/ Diploma 30 32.50 0.820 0.150
10.022 0.001
product Post graduate/ Professional 354 29.97 3.560 0.189
Total 500 30.35 3.458 0.155
Purchase decision Up to school level 116 17.66 1.924 0.179
on the basis of Graduate/ Diploma 30 18.23 1.591 0.290
3.978 0.019
Price Post graduate/ Professional 354 18.42 2.717 0.144
Total 500 18.23 2.515 0.112
Purchase decision Up to school level 116 16.51 1.436 0.133
on the basis of Graduate/ Diploma 30 15.33 2.426 0.443
112.679 0.001
Place Post graduate/ Professional 354 12.10 3.202 0.170
Total 500 13.32 3.425 0.153
Up to school level 116 35.05 2.257 0.210
Purchase decision Graduate/ Diploma 30 33.13 4.710 0.860
on the basis of 137.141 0.001
Post graduate/ Professional 354 29.45 3.366 0.179
Promotion
Total 500 30.97 4.033 0.180
Source: Computed from the primary data * significant at 1 % level
The calculated t value of the consumer purchase decision on the basis of educational qualification
10.022 and it is significant at 1 per cent level. The value indicates there is significant difference between
consumers purchase decision in product with respect to educational qualification is rejected. The
calculated t value of the consumer purchase decision on the basis of educational qualification 3.978 and it
is significant at 1 per cent level. The value indicates there is significant difference between consumers
purchase decision in price with respect to educational qualification is rejected. The calculated t value of the

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consumer purchase decision on the basis of educational qualification 112.679 and it is significant at 1 per
cent level. The value indicates there is significant difference between consumers purchase decision in place
with respect to educational qualification is rejected. The calculated t value of the consumer purchase
decision on the basis of educational qualification 137.141 and it is significant at 1 per cent level. The value
indicates there is significant difference between consumers purchase decision in promotion with respect to
educational qualification is rejected.
Table 5 Correlation Analysis
S. No. Variables Consumer Behaviour
1 Product 0.621**
2 Price 0.589**
3 Place 0.682**
4 Promotion 0.611**
5 Before Purchase 0.593**
6 At the Time of Purchase 0.559**
7 Post-Purchase 0.663**
8 Brand Awareness 0.241*
9 Brand Knowledge 0.218*
10 Brand Loyalty 0.721**
* Correlation at 5% level, ** Correlation at 1% level,
Table 5 shows that the correlation results among the consumer behaviour towards select fast
moving consumer goods in Puducherry. 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 behaviour.

SUGGESTIONS
Stores/shops person has to provide the benefit of the product to the customers regarding sales
promotion schemes and also should be motivated by way of good relationships.
1. Indian domestic companies should enhance their product standard and more effort to increase sales
through sales promotion methods. These companies have to create awareness to purchase the
domestic products.
2. Price off, discount, extra quantity with same price, mobile recharge, and premium are more
important tools in the sales promotion.
3. Stores/shops are to encourage the regular buyers by way of promotional offers.
4. Information relating to promotion methods needed to communicate to all customers to increase
more awareness regarding the sales promotional methods.
5. Brand loyalty is an important factor in FMCGs. It is very difficult to induce the consumers for
brand switching. Any firm should study these things very critically. The quality aspects coupled
with competitive price may lead to change of brands.
6. Consumer buys their products only if it catches his eye at the outlet. So producers and sellers need
to stress on attractive packaging and sales promotion. Further, study also indicated that the
advertisement through mass media, particularly television is the important source of product
information. This shows the attention of firms in the business to improve their sales promotion
activities by making use of such mass media to improve their business.

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7. Company should design their distribution system in such a way that, the product remains available
all time in to the rural areas. Because of the rural customer prefers the products which are easily
available.
8. Product Quality is the most important factor that influences the purchase of FMCGs. Companies
which design products of above-average quality and continuously improve them is able to withhold
their existing Loyal Customer base.
9. The manufacturers try to reduce the health impact of using mosquito repellent and also suggested
to express the health impact of mosquito repellants transparently.

CONCLUSION
The present study concluded that, successes of many businesses depend on their ability to create
and retaining the customers. Companies to sell their products in standard price with good quality,
availability of brands in all stores and is less costly to attracting new customers. Brand Loyalty provides
companies strong and competitive weapons to fight with competitors in the market place. The importance
promotional offers, availability of brands are important that companies must give it sufficient consideration
before they plan and implement their marketing strategies. The FMCGs sector is a very dynamic sector in
India. A major goal is to satisfy the needs and wants of consumer and their target markets more effectively
and efficiently. Hence the researcher hopes that the information provided in this study will assist
companies in shaping their marketing strategies and better serving their customers.

REFERENCES
1. Ankit Katiyar, and Nikha Katiyar, An Empirical Study of Indian Consumer Buying Behavior
of FMCG Products (With Special Reference Of Bathing Soap), International Journal of
Management and Commerce Innovations, Vol. 2, ISSN 2348-7585, Issue 1, 2014, pp.211-217.
2. Chitra .R An empirical study on Customers Purchase Intention towards Branded Apparels,
Indian Journal of Research in Management, Business and Social Sciences (IJRMBSS), Vol. 2 ,
ISSN No. : 2319-6998, Issue 1, Jan. 2014, pp.46-49.
3. Nasrudeen .R and Mohamed, Level of Consumption of Fast Moving Consumer Goods by Rural
Consumers An Analytical Study, International Journal of Economics, Commerce and
Management United Kingdom, Vol. II, Issue 1, ISSN 2348 0386, 2014, pp.1-21.
4. Rajasekaran, B and Saravanan, P. A. (2014), Consumer Satisfaction on Fast Moving Consumer
Goods, GJRA - Global Journal for Research Analysis, V Vol. 2, Issue 8, ISSN No. : 2277-8160,
August 2014, pp.38-41.lume-3, Issue
5. Shanmugapriya .G and Sethuraman .R, Consumers Satisfaction towards Hamam Soap in
Thanjavur Town, International Journal of Engineering and Management Science, Vol.5 (2), ISSN
2229, 2014, pp.122-127
6. Sonia and Garima Dalal, to Study the Satisfaction Level of Customers towards the Brand Of
Consumers Goods - A Study Carried out on Rural Masses, GALAXY International
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