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European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
www.BellPress.org
1
A Study on Factors Influencing the Purchase Decision of
FMCG among Bangladeshi Consumers
G. M. Shafayet Ullah
Lecturer, School of Business Studies
Department of Business Administration
Southeast University
House# 64, Road# 18, Block # B, Banani,
Dhaka-1213, Bangladesh
Panuel Rozario Prince
Lecturer, Department of Business Administration
Victoria University of Bangladesh
58/11/A, Panthapath, Dhaka-1205, Bangladesh
Abstract
Fast Moving Consumer Goods (FMCG) is one of the largest sectors in the economy of Bangladesh. In the last
few years the FMCG industry in Bangladesh has experienced dramatic growth; both qualitative and quantitative
improvements have occurred in the consumer durable items. Fast Moving Consumer Goods or FMCG in
marketing means convenient and low involvement products like- salt, flours, pens, chocolates etc. But in recent
years, the FMCG industries worldwide have experienced a difficult market condition. In some categories,
formerly popular brands have either been deleted or squeezed between the category leaders and low-cost
competitors. This study has identified eight primary factors that influence consumer’s purchase decision of
FMCG products in Bangladesh. These factors are Sales Promotion, Unavailability of Brand, Time Constraints,
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 industries in Bangladesh. The FMCG industries will find better
development opportunities if the findings of this study are used as input in their strategic decision making.
Keywords: FMCG, Consumer Preference, Actual Purchase, Sales Promotion, Unavailability of Brand, Time
Constraints, In-Store TVC, Variety Seeking Behavior, End of Aisle Display, Product Convenience.
1. Statement of the Problem
The Bangladeshi FMCG sector is one of the largest sectors in the country’s economy. It has strong Multi
National Company (MNC) presence and is characterized by well established distribution networks, intense
competition between the organized and unorganized segments and low operational costs (PPFAS, n.d.). Being a
developing economy, Bangladesh is gradually becoming a large market especially for the Fast Moving
Consumer Goods or FMCG. In the last few years the FMCG industry in Bangladesh has experienced dramatic
growth; both qualitative and quantitative improvements have occurred in the consumer durable items (Hamid et
al. 2008). While purchasing the high involvement products like- electronic goods, luxury items or lifestyle
products, the prior in-home decisions of purchase are not usually altered in the store environment. On the
contrary, for the convenient and low involvement products like- salt, flours, pens, chocolates etc., a significant
level of distortion from the prior decision of brand choice is frequently observed (Russo, Medvec & Meloy,
1996). These convenient and low involvement products are also known as Fast Moving Consumer Goods
(FMCG) in marketing. For the marketers, it is very difficult and sometimes impossible to track consumers’ brand
preference. Marketers may form any consumer’s intention to buy and help him to facilitate his purchasing
process by providing essential information. According to Perner (n.d.) the final decision of which brand to buy
from available brands comes from an internal information processing that marketers can never fully influence
from outside. Sometimes after deciding which brand to buy, consumers change their decision at the time of
actual purchase from the retail outlet. The end result of any marketing activity is to persuade the prospective
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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group of consumers to acquire what the marketers are offering in the marketplace in exchange of consumers’
money. To accomplish this goal, marketers are constantly applying diversified marketing tools to influence the
consumers to buy their offerings. Companies are striving to attain the higher portion of their consumer’s wallet
through fierce marketing strategies. Every marketer dreams to have his products stocked exclusively in the
shelves of his consumer’s homes. However, in marketing, it is always said that, “In the end, the consumer is
king!” (Richard P. Gee, n.d.). This study focuses around identifying the factors significantly influencing the
consumers’ preferences for the FMCG products during actual purchase from the retail outlets.
2. Literature Review
Fast Moving Consumer Goods (FMCG) are the products that are sold quickly at relatively low prices. Though
the profit made on FMCG products are relatively small in terms of retail sales, they are generally sold in large
quantities in wholesale. So, the cumulative profit on such products can be large. Brand Careers Glossary (n.d.)
states that FMCG is an expression used to describe frequently purchased, low cost, low involvement, convenient
consumer items, i.e., snack foods, cleaning products, stationeries, and toiletries etc. The main characteristics of
FMCG’s from the consumers' perspective are- frequent purchase, low involvement (little or no effort to choose
the item - products with strong brand loyalty are exceptions to this rule) and low price. Additionally, from the
marketers' angle, the main characteristics of FMCGs are- high volumes, low contribution margins, extensive
distribution networks and high stock turnover (Majumdar, 2004).
There are other definitions regarding FMCG from various viewpoints. Fast Moving Consumer Goods are usually
low priced and low risk products that require very little thought when purchasing on a daily basis (Food &
Safety Promotion Board, 2005). Examples of FMCG generally include a wide range of frequently purchased
consumer products such as toiletries, cosmetics, oral hygiene products, shaving products and detergents, as well
as other non-durables such as glassware, light bulbs, batteries, stationary products and plastic goods. FMCG may
also include pharmaceuticals, consumer electronics, packaged food products and soft drinks, although these are
often categorized separately.
Some of the best known examples of multinational FMCG companies in Bangladesh include Colgate-Palmolive,
Reckitt Benckiser, Nestlé, Unilever, Procter & Gamble, Coca-Cola, Kraft, PepsiCo etc. Some national FMCG
companies are Square, PRAN and ACI etc. One of the thrust areas of interest could be FMCG segments given
Bangladesh's large population with progressive increase in purchasing capacity (Rashid, 2010). Bangladesh saw
a growth of over 8% for the year 2003-04. These findings on growth trends around the fast emerging south Asian
sub-regional consumer market were released by research firm AC Nielsen. Bangladesh has discovered the
catalytic effect of lower unit packs as an evolutionary path. In Bangladesh, changes in consumers’ buying
behavior and aggressive distribution by marketers have helped the branded packaged goods to hold the sector’s
growth. Categories such as hair oil, detergents, milk powder and toothpaste recorded double digit growth rates
(Business Standard, 2004). US giants like Proctor & Gamble and Johnson & Johnson have already recorded
encouraging surge in sales of their products in Bangladesh. The FMCG market watchers say good performance
of Unilever, having around $500 million dollar annual turnover in Bangladesh, might have opened the eyes of
$80 billion plus P&G and $60 billion plus Johnson & Johnson on Bangladesh’s fast growing market of middle-
class consumers (Positive Bangladesh, 2011).
This is consistent with previous industry studies and with research conducted by marketing academics which
found that approximately 50% of grocery purchases can be classified as ‘unplanned’ (POPAI Special Report
1978; Kollat and Willet 1967; Park et al. 1989). Consumer promotions constitute a significant part of the
marketing effort of consumer nondurable (Neslin et al. 1985). For products sold in supermarkets, point-of-
purchase promotion is particularly attractive, because the large proportion of grocery purchase decisions are
made after entering the store. A recent study by the Point-of-Purchase Advertising Institute (POPAI) found that
two-thirds of supermarket purchases are the result of an in-store decision (Agnew 1987).
Brand choice probabilities is an opportunistic state as a function of prevailing marketing activity (e.g., feature,
display, and price) and the consumer's established preferences for the brands in the category. It is well known
that the mechanism governing the purchase decisions of consumers is influenced by marketing mix variables
(‘non-stationary’) and that it varies over the population (‘heterogeneous’) (Wagner & Taudes 1986).
Findings from the study of Morrison in 1966 argued that consumers can be characterized based on their brand
purchasing patterns within a product class (cited in Kahn & Raju 1991). For example, some consumers' purchase
behavior can be characterized as reinforcing, i.e., a tendency to repurchase the last brand bought (Morrison 1966;
Jeuland 1979, cited in Kahn & Raju 1991), while other consumers' purchase behavior can be characterized as
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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variety-seeking, i.e., a tendency to shift away from the last brand purchased (Givon 1984; Kahn et al. 1986;
Lattin & McAlister 1985; Lattin 1987, Kahn & Raju 1991).
Advertising is the vehicle used by producers to inform consumers of the existence and attributes of their brands.
The effect of advertising on sales or market share of a firm is probably the most researched relationship in
marketing. Advertising encourages consumers to try a new brand or a brand they have not bought for a long time
(Givon & Horsky 1990). One potential consequence of these promotions is their tendency to accelerate
consumer purchases. That is, in response to a promotion, consumers may buy more quantity of the product
category, or buy at an earlier time (Blattberg et al. 1981, Shoemaker 1979, Wilson et al. 1979). A number of
marketing researchers suggested that dealing patterns might influence purchase behavior (Krishna 1991, Winer
1986).
Previous research on state dependence indicates that a brand's purchase probabilities vary over time and depend
on the levels of inertia and variety seeking and on the identity of the previously purchased brand (Chintagunta
1998). Study of Kahn and Raju (1991) indicates that, for a minor brand, price discounts have a relatively larger
effect for the reinforcement segment than for the variety-seeking segment. Conversely, for a major brand, price
discounts have a relatively larger effect for the variety-seeking consumers than for the reinforcement consumers.
Lee and Labroo (2004) suggest that consumers prefer brands that are easy to recognize and brands whose
information is easy to understand. Earlier research has shown that ease of processing may be perceptual or
conceptual in nature. Perceptual processing is feature-based, and has more to do with ease of recognition.
Perceptual processing ease benefits brand choice in situations where all the brand choices are present in the
environment as in a supermarket.
2. Conceptual Framework
Depending on the findings of the previous studies and exploratory research, twenty variables are primarily being
considered for analysis. It is assumed that these twenty variables generally affect consumers’ brand preference
for FMCG in store environment. Variables are Sales Promotion, Point of Purchase Advertising, Product Feature,
Product Display, Competitive Pricing, Dealing Pattern, Ease of Recognition, End of Aisle Display, In-Store
TVC, Salesperson Influence, Unavailability of Preferred Brand, Attractive Packaging, Convenience, Variety
Seeking Tendency of Consumer, Influence of Other Customers, Store Environment, Time Constrain, Cash
Constrain, Delightful Mind of Consumer and Level of Involvement of Consumer. The framework is clarified in
figure 1.
3. Methodology
3.1 Data Collection
The research is descriptive in nature, as it tends to portray what actually works as the motive for changing the
predetermined brand while purchasing the FMCG products from the store. Secondary data was used to construct
the basic framework of the study before proceeding with primary data. Primary data was collected from a group
of respondents through structured questionnaires by personal in-home interview procedure.
3.2 Samples
Primary data was collected from a group of 143 respondents from Dhaka City, Bangladesh. The respondents
were selected through the convenience sampling technique, since the procedure is less time consuming and more
convenient.
3.3 Analysis Techniques
In the first step of the study, some variables were identified which may have effect on consumer decision
making at store environment through exploratory study on previous research works and focus group discussion
with small group of respondents. In the second phase, a statistical analysis was conducted on those previously
identified influential variables on the basis of primary data collected through survey. The questionnaire consisted
of two parts; first part elicited the basic demographic information of the respondents through some close ended
questions and the second part drew out the respondent’s attitude toward twenty statements through the five point
Likert scale. Each statement represented a variable that is being studied in this research. Likert scale is one of the
most prominent scales to researchers that are used to find the level of agreement or disagreement of the
respondent toward any statement of interest.
Two statistical techniques had been used to analyze the data. These were descriptive statistical analysis
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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techniques (i.e. mean, standard deviation, frequency etc.) and multivariate statistical analysis technique (i.e.
Factor Analysis). Factor Analysis is a class of procedure primarily used for data reduction and summarization. In
marketing research, there may be a large number of variables, most of which are correlated and which must be
reduced to a manageable level. Relationships among sets of many interrelated variables are examined and
represented in terms of few underlying factors. It is an Interdependence Technique, in which an entire set of
interdependent relationship is examined (Malhotra 2008). The marketing and social science literature is abundant
with applications of factor analysis (Churchill 1987; Timm 1975; Urban and Hauser 1980). This widely used
statistical technique is frequently employed by researchers who wish to identify a relatively small number of
factors or underlying dimensions that can be used to represent relationships within a large variable set (Stewart
1981).
4. Findings and Discussions
The demographic profile of the sample respondents are presented in Table 1 & 2. From Table 3 it is evident that
44% people still buy the FMCG products from the small local stores. Another 37% people like to buy those
products from the groceries in the local markets. Only 17.5% of the people prefer the super/mega shops as their
choice for purchasing FMCG products. Table 4 also shows that, 58% of the people go for purchasing FMCG
products more than twice in a month. On the other hand, 22.4% of the people go for shopping those products
twice in a month. Another 19.6% people keep only one day in a month for shopping FMCG products.
Cronbach's α is a coefficient of consistency and measures how well a set of variables or items measures a single,
one-dimensional latent construct. Some professionals, as a rule of thumb, require a reliability of 0.70 or higher
(obtained on a substantial sample) before they will use a scale (Maccallum et al., 1996). Obviously, this rule
should be applied with caution when α has been computed from items that systematically violate its assumptions.
In our study the Cronbach's α value is found 0.761 (see Table 5) which is more than the standard value of 0.70.
Therefore, it is assumed that the variables are very reliable for the study.
Result in Table 6 shows that the KMO value is more than .60 (actual is .684) which authenticates the adequacy
level of sample as tested by the KMO and Bartlett's Test. So obviously the data support the use of factor analysis
and suggest that the data may be grouped into a smaller set of underlying factors.
Moreover the significance value of Bartlett's Test of Sphericity is less than .05 (actual 0.00). Clearly the Bartlett
value has to be significant as for expecting relationships between the variables and if a factor analysis is going to
be appropriate.
5. Analysis
From the study, it was found that eight factors are responsible for altering consumers’ preference from the
predetermined FMCG brands while they perform the actual shopping at the retail store. Those factors are Sales
Promotion, Unavailability of Brand, Time Constrain, In-Store TVC, Variety Seeking Behavior, Product Features,
End of Aisle Display and Product Convenience (see Table 7).
Those eight factors explain almost 64.065% variance in the data. Among them the leading factor, Sales
Promotion influence mostly in altering consumer brand choice with an Eigenvalue of 3.885 and able to explain
19.426% variance. Other leading factors are Unavailability of Brand (Eigenvalue 1.773), Time Constraints
(Eigenvalue 1.455) and In-Store TVC (Eigenvalue 1.298). Unavailability of Brand means the out of stock
situation of any particular brand. Time Constraints implies the allocation of limited time by consumer for
shopping particular product. These three factors can explain 8.867%, 7.277% and 6.490% variance in data
respectively. Rest four factors are presented in a descending order in Table 7 based on respective Eigenvalues.
The study has selected the factors which are being extracted for having Eigenvalues over 1. Several more
accurate methods for retaining factors are often grouped under the rubric of ‘rules of thumb’ (Gorsuch 1983;
Zwick & Velicer 1986), among which the scree test is readily available, frequently used, and usually provides
satisfactory results. The Cattell-Nelson-Gorsuch (CNG) scree test (Gorsuch, 1983) gives a statistical test for this
point and contended that with principal components analysis the scree test usually produces cutoffs near
Eigenvalue = 1.00. Here, the cumulative variance of the study is 64.065%. The rotated factor loadings matrix
summarizes the structure by indicating which variables associate primarily with which factors. Based on the
notion of ‘simple structure’ (Thurstone, 1947), here the word ‘structure’ is to denote the identification for each
variable of the factor with which it is primarily associated, these variables have been classified with specific
factor loadings into 8 specific factors. The cumulative variance confirms that the study result is quite acceptable
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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as the extracted factors should account for at least 60 percent of the variances. DeVellis (2003) claimed that a
value of .70 as the lowest acceptable bound for Cronbach's alpha, although some claim it may decrease to .60 in
exploratory research (Hair et al., 1998).
Therefore, considering the evidence, the revised model of factors influencing the purchase decision of FMCG
products in Bangladesh is presented in figure 2.
6. Recommendations
Some recommendations are prescribed below based on the findings of this study. These recommendations will
be worthy if aligned with FMCG Company’s marketing decision making.
FMCG companies should focus more on the small local stores and groceries for their promotional activity,
combining both the push and pull strategies. Consumers of Bangladesh still prefer those shops over super/mega
shops for FMCG product purchasing as it is evident from this research finding (see Table 3). Since most of the
consumers purchase FMCG products more than twice in a month, FMCG companies can generate a stream of
sale throughout the year. But to do so, those companies need to establish a strong market position by creating
positive image among the prospective customer groups through various innovative and strategic marketing tools
like promotional events, sponsorship, viral marketing etc.
Sales Promotions are found to be the most effective tools for generating sale of FMCG’s. Companies may
develop well defined, objective based, short term sales promotion strategies to gain market advantage over their
competitors. Focus has to be given both on sales promotion and trade promotion. Sales person should be well
chosen and trained, since they play a vital role in facilitating consumer choice decision at the time of actual
purchase of FMCG products from the shop.
An effective distribution system is the most significant issue in product marketing. Since it was proved through
the factor Unavailability of Brand that the consumer generally switches to another brand if their preferred brand
is not available at the time of purchase, the FMCG companies have to ensure the distribution of their products
along with other promotional activities to the door step of the consumer. A perfect synchronization between
promotional activities and distribution is very crucial in this regard.
Another important factor that influences the FMCG consumers is Time Constrain. FMCG products are low
involvement in nature, so consumers want to spend the least amount of time possible for purchasing them.
Consumers want to spend the majority of their time and effort to high involvement products. Point of purchase
advertisements like buntings, cutups, posters, stickers is very much applicable in these cases for gathering
consumer attention at the last moment. And in case of low involvement products, grabbing the attention may
sometime increase the chance of sales. Some innovations have to be come out from the FMCG companies to
make this marketing tool more attractive to the consumer.
Besides these factors, there are other factors i.e. In-Store TVC, Variety Seeking Behavior of the Consumers,
Product Features, End of Aisle Display and Product Convenience which merit the FMCG companies’ attention.
For last few years, markets of FMCG products are experiencing different reformations. The increasing threat
posed by generic products, pricing pressure through initiatives such as Everyday Low Pricing, and the ever-
growing options for consumers have made the marketers’ task tough. In some categories, formerly popular
brands have been deleted, squeezed between the category leader and lower cost competitors. Therefore, the
FMCG industry will find a better development opportunity if it uses the findings of this study as the input of
their decision making strategies.
7. Limitations and Directions for Further Research
Like all research, there were some constraints that were faced during this study. Respondents do not actually
know what they really feel about the area of the study. It was difficult to extract the answer required without
actually experiencing it. Respondents were busy enough with their own lives and jobs. They do not have a lot of
time for analyzing the real experience of that specific situation of this study. This study can provide an insight
into the future either by asking people what they plan to do or extrapolating from past or present trends. There
are problems with this approach however. People often do not know what they will do in the future and what
they think they will do is often very different from what they actually do. Also, in a fast-changing environment,
extrapolation from the past is highly unreliable (Makridakis, 1996).
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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The majority of the samples in this study were students. Many arguments exist, both in favor and against the
convenience samples containing students. Several authors, including Beltramini (1983), Oakes (1972) have
specified the dangers of using student samples in research. They have commonly mentioned threats to external
validity as their prime concern, arguing that students are atypical of the general population; therefore any
findings based on student samples may not be generalizable to other populations (Cunningham, Anderson Jr. and
Murphy 1974). Still, some scholars diverge on this concern. Oakes (1972) argue that such arguments are
unfounded because regardless of what population is sampled; generalization can be made only with caution to
other populations. As generalization of the finding with student subjects is limited; this research, having majority
of the samples as students, may experience the same consequences. Thus, future research should consider better
samples, combining more people with occupations other than students in an attempt to replicate the model
developed in this study that would allow for greater external validity.
Only generic FMCG product class was considered for evaluation in this study. Bur there are many types of
FMCG products within this class, each with their own different characteristics. For example, there are highly
perishable FMCG products i.e. meat, fruits and vegetables, dairy products, baked goods etc. There are also
FMCG products having high turnover rates i.e. alcohol, toiletries, pre-packaged foods, soft drinks, cleaning
products etc. Future studies must explore how the proposed model in the present research works for a wider
range of FMCG product types, situations, settings, and populations. A finding’s failure to replicate its results is
evidence of its limit to the generalizability of the relation. However, when a finding does replicate its results, the
scope of the relation is extended.
According to a recent study by the Nielsen Company, ‘aspirational’ products i.e. breakfast cereals, cold cream,
fragrances and chocolates will drive the future of the consumer products industry in the neighboring country
India. As the present research took place in Bangladesh, this future trend will certainly be of an impact in here.
To capture the business opportunities and lead in these markets, marketers must make decisions based on an in-
depth understanding of the competitive environment and consumer demands in their own sector (Moodi, 2005).
Moreover, key impulse products such as biscuits, chocolates, salty snacks and confectionery, which are
essentially unplanned purchases for instant gratification, are clocking high double-digit growth rates and rapid
increase in retail presence (Mukherjee, 2011). Further research should offer enough variety in terms of FMCG
product types in addition to the generic FMCG product class used here. Especially, certain FMCG product types
i.e. aspirational FMCG products, key impulse FMCG products, highly perishable FMCG products, high turnover
FMCG products etc. deserve more focused, extensive empirical future studies on Bangladeshi context.
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survey/199287/
Food and safety promotion board (2005), Business 2000, viewed on 12 December 2010
http://www.business2000.ie/pdf/pdf_8/fspb_8th_ed.pdf
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Table 1: Respondents’ Demographic Profile (I)
Gender Frequency (%) Age Frequency (%)
Education
Level Frequency (%)
Male 74 51.7 < 15 Years 3 2.1 Below SSC 6 4.2
Female 69 48.3 16 - 25 Years 82 57.3 SSC 6 4.2
26 - 35 Years 33 23.1 HSC 52 36.4
36 - 45 Years 15 10.5 Graduate 58 40.6
> 45 Years 10 7.0 Masters 16 11.2
Above Masters 5 3.5
Total 143 100 Total 143 100 Total 143 100
Table 2: Respondents’ Demographic Profile (II)
Profession Frequency (%) Income Range Frequency (%)
Govt. Service 4 2.8 < 5,000 TK 81 56.6
Service to Local Private Company 26 18.2 5,001 - 10,000 TK 22 15.4
Service to MNC 5 3.5 10,001 - 15,000 TK 5 3.5
Professionals 4 2.8 15,001 - 20,000 TK 15 10.5
Teacher 6 4.2 20,001 - 25,000 TK 6 4.2
Business 4 2.8 25,001 - 30,000 TK 8 5.6
Student 83 58.0 Above 30,000 TK 6 4.2
Others 11 7.7
Total 143 100 Total 143 100
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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Table 3: Respondent's Store Preference
Store Choice Frequency Percent (%)
Small Local Store 64 44.8
Grocery in Local Market 54 37.8
Super Store 25 17.5
Total 143 100.0
Table 4: Respondent's Purchase Frequency
Occurrence Frequency Percent (%)
Once in a Month 28 19.6
Twice in a Month 32 22.4
More than Twice in a Month 83 58.0
Total 143 100.0
Table 5: Reliability Statistics
Cronbach's Alpha N of Items
0.761 20
Table 6: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.684
Bartlett's Test of Sphericity
Approx. Chi-Square 522.265
Df 190
Sig. 0.000
Table 7: Factors Affecting the Consumers to Switch from the Predetermined Brands While Actually Shopping
FMCG in the Retail Outlet
Factor
Number Factor’s Name Eigenvalues
Variance
(%)
Cumulative
Variance (%)
1 Sales Promotion 3.885 19.426 19.426
2 Unavailability of Brand 1.773 8.867 28.293
3 Time Constrain 1.455 7.277 35.570
4 In-store TVC 1.298 6.490 42.060
5 Variety Seeking Behavior 1.185 5.926 47.986
6 Product Features 1.109 5.545 53.532
7 End of Aisle Display 1.089 5.447 58.978
8 Product Convenience 1.017 5.086 64.065
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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Figure-1: Conceptual Framework of Factors Influencing the Purchase Decision of FMCG Products
Influential Variables
1. Sales Promotion 2. Point of Purchase Advertising 3. Product Feature 4. Product Display 5. Competitive Pricing 6. Dealing Pattern 7. Ease of Recognition 8. End of Aisle Display 9. In-Store TVC
10. Salesperson Influence
Purchase Intention (for FMCG) Purchase Decision
Influential Variables
11. Unavailability of Preferred Brand 12. Attractive Packaging 13. Convenience 14. Variety Seeking Tendency of Consumer 15. Influence of Other Customers 16. Store Environment 17. Time Constrain 18. Cash Constrain 19. Delightful Mind of Consumer
20. Level of Involvement of Consumer
European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687
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Figure-2: Revised Framework of Factors Influencing the Purchase Decision of FMCG Products
Factor-1: Sales Promotion
Variance Explained 19.426%
Factor-3: Time Constrain
Variance Explained: 7.277%
Factor-2: Unavailability of Brand
Variance Explained: 8.867%
Factor-4: In-store TVC
Variance Explained: 6.490%
Factor-5: Variety Seeking Behavior
Variance Explained: 5.926%
Factor-6: Product Features
Variance Explained: 5.545%
Factor-7: End of Aisle Display
Variance Explained: 5.447%
Factor-8: Product Convenience
Variance Explained: 5.086%
Purchase Intention
(for FMCG)
(Total Variance
Explained: 64.065%)
Purchase Decision