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Asia Pacific Journal of Research
Vol: I. Issue XXXVII, March 2016
ISSN: 2320-5504, E-ISSN-2347-4793
CONSUMERS’ EXPECTATION TOWARDS FAST MOVING CONSUMER
GOODS IN VILLUPURAM DISTRICT
Dr. S.ANANDARAJAN
Assistant Professor and Research Supervisor,
PG & Research Department of Commerce,
Sri Vinayaga College for Arts and Science, Nagar, Ulundurpet- 606 107
Mr.A.Manikandan
M.Phil., Research Scholar,
PG & Research Department of Commerce,
Sri Vinayaga College for Arts and Science, Nagar, Ulundurpet- 606 107.
ABSTRACT
The motive of this research work is to study the consumer behavior towards Fast Moving Consumer
Goods (FMCG) in Chennai of Tamilnadu. The data for the study has been collected by performing face-to-face
interview with the respondents with the distribution of questionnaire. This study collects data from 400
consumers at various places in Chennai. This study is started with objectives of examining socio-economic
background of respondents, analyzing the factors influencing consumer behaviour towards selected FMCG
products, checking the level of satisfaction of consumers and knowing expectation of the consumers. This study
reveals that consumer behavior is largely affected by place, product, price, promotional, psychological and
people influences. This article paper highlights the consumers’ expectation towards fast moving consumer goods
in Villupuram district.
Keywords: Consumers Perception and Attitud, Fast Moving Consumer Goods (FMCGs), Marketing Strategies,
Brands Gross Domestic Product (GDP)
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Asia Pacific Journal of Research
Vol: I. Issue XXXVII, March 2016
ISSN: 2320-5504, E-ISSN-2347-4793
Introduction
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with
the production, distribution and marketing of consumer packaged goods. These are products that have a quick
turnover, and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do
for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Some of the prime activities of FMCG
industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain,
production and general management. The Indian FMCG sector is the fourth largest sector in the economy with a
total market size in excess of US$ 44 billion. It has a strong MNC presence and is characterized by a wellestablished distribution network, intense competition between the organized and unorganized segments and low
operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain
gives India competitive advantage. The Indian consumers today are unique in the sense of being value sensitive
and are not much price sensitive, as earlier. If they feel that a particular product offers them more value, they will
buy it even if the price is high. The Indian consumers also follow strictly, their culture, tradition and values, as a
result of which foreign companies are forced to give an Indian touch to their products in order to succeed in
India.
Consumer Perception and Expectation
Consumer perception applies the concept of sensorial to marketing and advertising. Just as sensory
perception relates to how humans perceive and process sensory stimuli through their five senses. Consumer
perception pertains to how individuals form opinions about companies and the merchandise they offer through
the purchases the make.
Fast Moving Consumer Goods
The Indian FMCG sector is the fourth largest sector of the Indian economy. The FMCG industry is more
than 115 years old. Consumable items (other than groceries/pulses) that one needs to buy at regular intervals.
These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can
broadly be categorized into three segments which are Household items as soaps, detergents, household
accessories, etc, Secondly Personal care items as shampoos, toothpaste, shaving products, etc and finally. Thirdly
Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer
Goods (FMCGs). 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.
Review of Literature
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods.
Items in this category include 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 certain electronic goods. These items are meant for
daily use of frequent consumption and have a high return The FMCG sector in India has played a vital role in the
growth and development of the country, from making efforts to reach out to the poorer section of consumers
through distribution of smaller pack sizes, innovations like single use sachets, to developing innovative products
to cater to regional or local taste and the needs of niche consumers. There are many significant contributions –
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Asia Pacific Journal of Research
Vol: I. Issue XXXVII, March 2016
ISSN: 2320-5504, E-ISSN-2347-4793
both direct and indirect that the industry has on the Indian economy The Indian FMCG industry, with an
estimated market size of 2 trillion, accounts for the fourth largest sector in India.
This study presents a review of the literature, in the field of consumer behaviour towards FMCG
products. There is marvellous complication in consumer behaviour. There may be several aspects both rational
and emotional that may act mutually in influencing the purchase decision. Deva prasana (2013 showed)
importance of packaging design as a vehicle for communication and branding is growing in competitive markets
for packaged FMCG products. This research utilized afocus group methodology to understand consumer
behaviour towards such products. C.
Muthuvelayutham (2012) in his study showed that among the variables age, education level and gender
have the most significant impact on consumer’s brand loyalty.
Suresh Bhagwat (2011) in their “focuses on empowering the rural consumer with the latest trends and
technology and teaches them ways to improve their standard of living.. NUNTASAREE SUKAT (2009) in this
article “A model of male consumer behaviour in buying skin care products in Thai- land” showed male consumer
behaviour”.
Kavitha T. C.(2012), revealed in her study, The new phase of rural consumption appears to provide a
great opportunity for the FMCG sectors. Marketers will need to evolve new strategies to connect and
communicate with a more aware and unreserved consumer than ever before, the study found
Importance of the Study
The study focuses mainly on the consumer behaviour towards select fast moving consumer goods in
Villupuram district, 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.
Statement of the Problem
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low price. 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, attitude, 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 expectations 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. 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 consumers’ perception and attitude towards
FMCGs in Villupuram district.
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Asia Pacific Journal of Research
Vol: I. Issue XXXVII, March 2016
ISSN: 2320-5504, E-ISSN-2347-4793
Objectives of the Study
The objectives of the research work are as under:
1. To study the factors influencing purchase decisions of consumer behaviour the criteria of product, price,
place and promotion.
2. To ascertain the consumer behaviour in their pre-purchasing and post-purchase of select fast moving
consumer goods in Villupuram district.
3. To analyze the factors are influencing the consumers’ perception and attitude towards select fast moving
consumer goods in Villupuram district.
Methodology
The present study is descriptive in nature which is based on empirical evidences based on primary data.
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.
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.
Statistical Tools
The processing, classification, tabulation, analysis and interpretation of data would be done with the help
of SPSS package. The following statistical techniques had 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 20.0).
Suggestions of the Study
The following suggestions have been drawn:
 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.
 Price off, discount, extra quantity with same price, mobile recharge, and premium are more important
tools in the sales promotion.
 Stores/shops are to encourage the regular buyers by way of promotional offers.
 Information relating to promotion methods needed to communicate to all customers to increase more
awareness regarding the sales promotional methods.
 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.
 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.
 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.
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Asia Pacific Journal of Research
Vol: I. Issue XXXVII, March 2016
ISSN: 2320-5504, E-ISSN-2347-4793


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.
Product Quality is the most important factor that influences the purchase of products.
Conclusion
The present paper concludes that the successes of many businesses depend on their ability to create and
retaining the customers. The insights gained in this pilot-study give researchers and FMCG marketers’ useful
information about consumers´ behaviour and provide guidance for developing and promoting a group of non
alcoholic beverages products. From our study, it was found that the most important choice is taste motive,
followed by health aspects, so marketers should pay strong attention to this fact in designing their marketing
channels preceded by health aspects, origin, brand and sensory appeal. The results obtained could be useful to
researchers and dairy market sector in developing and promoting a group of non-alcoholic beverages based on
innovations and health.
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