A STUDY ON CONSUMER BEHAVIOUR TOWARDS

FMCG GOODS AN EMPIRICAL STUDY WITH

SPECIAL REFERENCE TO SPSR NELLORE
DISTRICT OF ANDHRA PRADESH.
A.M.Mahaboob Basha

Business Management Vikrama Simhapuri University

SPSR Nellore, Andhra Pradesh, (India)

ABSTRACT

The FMCGs sector is a very dynamic sector in India. A major goal is to satisfy the needs and wants of
consumers.This article highlights the consumer behavior towards fast moving consumer goods in SPSR Nellore
District of Andhra Pradesh. Creating awareness regarding products is essential to grab the market in the
competitive world. As we know that when customer satisfied the purchasing level of the customer would
gradually increase by that the sales of the company will increase. Here in this research work researcher is
trying to find out differences in the opinion of consumers on the basis of Age, educational qualification, location
and gender regarding consumer behavior towards fast moving consumer goods in SPSR Nellore District of
Andhra Pradesh.

Key Words: Customer Satisfaction, Customer Awareness, Customer Intension Towards fast
Moving Consumer Goods.

I. 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 India’s Gross Domestic Product (GDP) and is also the fourth largest sector
in the Indian economy, responsible for providing 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.

289 | P a g e
II. 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 life‟s in every day.
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 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
Consumer’s 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.

III. OBJECTIVES OF THE STUDY

1. To study the consumer behavior towards purchase decision regarding fast moving consumer goods in SPSR
Nellore District of Andhra Pradesh

290 | P a g e
2. To examine the consumer behavior at the time of purchase towards fast moving consumer goods in SPSR
Nellore District of Andhra Pradesh
3. To analyze the factors that influence towards consumer behavior regarding fast moving consumer goods in
SPSR Nellore District of Andhra Pradesh.

IV. SCOPE OF THE STUDY

The Scope of the study in terms of geographical location is restricted to SPSR Nellore District only. The scope
of the study in terms of objectives restricted to consumer behavior towards fast moving consumer goods in
SPSR Nellore District of Andhra Pradesh.

V. NEED FOR THE STUDY

There is a much need to understand consumer behavior towards fast moving consumer goods in SPSR Nellore
District of Andhra Pradesh. The development of business is depends on consumer satisfaction when consumer
satisfies the growth of the business in terms of sales would gradually increase.

VI. HYPOTHESIS FOR THE STUDY

1. H0 (1): There is no Significant difference between consumer behavior and age group of respondents.
2. H0 (2): There is no Significant difference between consumer behavior and educational qualification of
respondents.
3. H0 (3): There is no Significant difference between consumer behavior and location of respondents.
4. H0 (4): There is There is no Significant difference between consumer behavior and gender of respondents.

VII. LIMITATIONS OF THE STUDY

The research is restricted to only SPSR Nellore Districted. The opinion of respondents might vary from area to
area. The sample size is less and time factor to collected data from respondents need to be considered.

VIII. RESEARCH METHODOLOGY

1. Area of Study: The survey was conducted in Nellore city in Andhra Pradesh state. Nellore is upcoming
smart city in Andhra Pradesh. Nellore is a right area for conducting research.
2. Sources of Data:The study has used both the primary data and secondary data. Field survey method was
employed to collect primary data from 50 respondents in three areas from Nellore (DT). Framed
questionnaire is used for data collection. Secondary data were collected through various journals,
magazines, reports and newspapers.
3. Sampling Design: For the purpose of the study 50 respondents have been chosen in Nellore city by using
stratified random sampling technique. The questionnaire was prepared and administered in person to all the

291 | P a g e
 respondents. The information collected have been edited for reliability and consistency and presented in a
master table for analysis.
4. Tools for Analysis:In this study the raw data collected are classified, edited and tabulated for analysis. The
following were the some of the tools used. They are: Analysis of Variance ( ANOVA)

IX. DATA ANALYSIS AND INTERPRETATION

1. Consumer Behaviors (Vs) Gender

Here researcher want to test the opinion of consumer on the basis of gender, educational qualification, age group
and location of the business unit. The table 1(a) to 1(d) describes about consumer behavior on the basis of
gender, age group, location and educational qualification.

Table 1(a) Consumer Behavior (Vs) Gender of Respondents

Standard Null
Gender Mean F-value Sig
Deviation Hypothesis
Consumer
Male 3.6189 .97616
Behavior
Female 3.7619 .89361 2.088 .125 Accepted
Total 3.7068 .96331

Sources: Field Survey *In Significant at 5%

H0 (1): There is no Significant difference between consumer behavior and Gender of respondents.
From the above table it is observed that consumer behavior is slightly differ with the gender of respondents
However, the respondents from female group got highest mean 3.7619 followed by male group at 3.6189 .At
the same time the table also reveals that the significant value is .125. It is greater than the standard significant
value at 0.05. Therefore, the null hypothesis is accepted. That means there is no Significant difference between
consumer behavior and Gender of respondents.
Table 1(b) Consumer Behavior (Vs) Location of Business Unit
Location of Standard Null
Mean F-value Sig
Business Unit Deviation Hypothesis
Consumer
Urban 3.6827 1.01699
Behavior
Rural 3.7132 .94988 .082 .774 Accepted
Total 3.7068 .96331
Sources: Field Survey *In Significant at 5%
H0 (3): There is no Significant difference between consumer behavior and Location of respondents.
From the above table it is observed that the respondents from Rural area got highest mean that is 3.7132
followed by Urban area at 3.6827. At the same time the table also reveals that the significant value is 0.774. It is

292 | P a g e
greater than the standard significant value at 0.05. Therefore, the null hypothesis is accepted. That means there
is no significant difference between consumer behavior and location of business unit.
Table 1(C) Consumer Behavior (Vs) Age Group Of Respondents

Standard Null
Age Group Mean F-value Sig
Deviation Hypothesis
Consumer <25 years 2.5908 1.26941
Behavior 26- 40 years 2.6010 1.11985 Accepted
.303 0.582
41- above 2.2690 1.10458
Total 2.2651 1.20780
Sources: Field Survey *In Significant
at 5%
H0(4):There is no Significant difference between consumer behavior and Age Group of respondents.
From the above table it is observed that consumer behavior is slightly differ with the age group of respondents.
However, the respondents age group between 26- 40 years got highest mean that is 2.6010 followed by <25
years at 2.5908. At the same time the table also reveals that the significant value is 0.582. It is greater than the
standard significant value at 0.05. Therefore, the null hypothesis is accepted. Hence, it can be conclude that
means there is no significant difference between respondents behavior and age group.

Table 1(D) Consumer Behaviour (Vs) Educational Qualification

Educational Standard Null

Mean F-value Sig
Qualification Deviation Hypothesis
Illiterates 3.7083 .94437
th
Consumer 1-5 Standard 3.7886 .86827
Behaviour 6-12th Standard 3.6986 .98060
.972 .422 Accepted
Graduates 3.5135 1.26099
Post Graduates 3.5172 .98636
Total 3.7068 .96331
Sources: Field Survey *In Significant at 5%

H0(4):There is no Significant difference between consumer behavior and educational qualification of

respondents.
From the above table it is observed that the respondent educational qualifications Illiterates, 1-5th standard, 6-
12th standard, Graduates and Post graduates and mean values are 2.7297, 2.3257, 2.2153, 2.1667 and 1.8276
respectively. The respondents Illiterates got highest mean value at 2.7297. At the same time the table also
reveals that the significant value is 0.422 it is more than the standard significant value at 0.05. Therefore, the

293 | P a g e
null hypothesis is accepted. That means there is no significant difference between educational qualification and
consumer behavior of respondents.

X. FINDINGS OF THE STUDY

1. There is no Significant difference between consumer behavior and Gender of respondents.

2. There is no Significant difference between consumer behavior and Location of respondents.
3. There is no Significant difference between consumer behavior and Age Group of respondents.

XI. SUGGESTINS OF THE STUDY

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.

XII. 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.

XIII. SCOPE OF FUTURE RESEARCH

The scope of the further research can be conducted in even other districts of the Andhra Pradesh also. Even the
research can be extended to other parts of the country also.

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.

294 | P a g e
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 Consumer‟s
Goods - A Study Carried out on Rural Masses”, GALAXY International Interdisciplinary Research Journal,
Vol.2 (4), ISSN 2347-6915, April 2014, pp. 43-52.

295 | P a g e