ACKNOWLEDGEMENTSWe would firstlylike to thank Allah (SWT) for His guidance and bestowing His utmost blessingsin the most difficult of times during this research. Furthermore, we are thankfulto ‘Sir Saif Ullah Shakir’ for his support and supervision. We would alsolike to thank; our respondents whose provide us the Valuable response /Knowledge and precious time. We also appreciate all the students thatco-operated with us, especially; • Ansa Khalid• Azra Abdul Qadir• Fatima Aslam• Shumaila Rehaman • Waqar Ahmed• Mohammad Zain• Joshila Stephen• Bushra Yousuf Zai• Imran Jillani This has been aone of a kind experience where we feel that we’ve learnt a lot and have enjoyedcarrying out this research. After reading this research we hope you will feelthe same way too.? ABSTRACTThe aim of this research is tofind out the factors that influenced on the consumer buying behavior towardsthe branded products.
This research isan empirical study of consumer buying behavior towards branded products in FMCGsector of Pakistan. This research also highlights the factors which influencethe purchasing behavior. This study was undertaken in order to determine and beable to prove the hypothesis created. There are certain variables which we haveto determine the impact of them on consumer buying intentions towards brands.Primary data was collected from a sample of 100 from different consumers inKarachi which includes all students, house wife, working ladies and men etc. Byconducted survey we came up with the result which was calculated through asoftware SPSS through Regression Analysis. This research reveals thatthere is a significant relationship of consumer buying behavior with thequality and other associated services of branded products.
Keywords: Consumer buying behavior, Branded products of FMCGin Pakistan, Purchasing time periodINTRODUCTION1.1 OverviewFMCG (Fast moving consumer goods) refer toproducts of everyday use which are used directly by the consumer. Pakistan FMCGsector has a market size around Rs: 450 Billion in 2016. Consumer buyingdecision is determine by the pre purchase behavior.
Customerloyalty is more difficult in Fast Moving Consumer Goods (FMCG) companiesbecause consumers move rapidly from one product to another. This is thechallenging task for the companies to make customers loyal for long-termsurvival and profitability of the firm. Usually brand Managers of these companies’efforts and find the ways to attract the new customers and to retain theexisting customers also. Customer loyalty remains an important as discussingtopic in this literature with lot of proposed moderating, mediating, andindependent variables. Wehave selected following FMCG products for this study: · Milk· Cooking Oil· Bread 1.2 Problem Statement· What are thefactors considered by consumers while purchasing FMCG Goods?· Why have tospend more money for branded product? 1.
3 Background, Objectives and Significance of the StudyObjective· To know thefactors which are influencing the decision of consumer regarding branded ornon-branded products. · Toanalyze factors or variables, which contributemore in loyalty of consumer in FMCG sector.· To determine theage, gender and income level of consumers affecting their purchasing decision.Significance of the Study· Can be helpful forcompanies to launched new product into the market· Can be helpfulin creating awareness in people about branded or non-branded products of FMCG.1.4 Outline of the Study· The project hasa very wide scope, because it contains important information which is requiredby Branded companies.
· Recognizing theimportance of consumer preferences, companies must first explore and understandwhat these preferences give categories.· This leads to atargeted approach to guarantee the approval of the target market and eventuallylead to their success of the brand and the company is working out each request. Limitations of the Study· Research isrestricted to Karachi only.· Less time wasavailable. Key Terms· Quality· Taste· Healthy / Hygiene· Price· Packaging· Accessibility /Availability· BrandConsciousness· LITERATUREREVIEW Adelina &Morgan (2007) conclude that Packaging could be treated as one of the mostvaluable tools in today’s marketing communications; Packaging has an importantimpact on consumers buying behavior. The impact of packaging and its elementscan impact the consumer’s purchase decision.Packaging actsmultidimensional functions. It offers knowledge about the product andorganization, a technique to communicate with consumers and safeguard to thequality of product (Silayoi & Speece, 2007).
Consumers preferthe product quality after they purchased their desirable packaged product.Placed on those facts, it cannot be stated that there is a 100% equalconnection amongst good packaging and good product quality, still there is apositive opinion and trend about well-designed package presents high productquality. (Stravinskien?, Jurgita, R?telion?, Aušra, Butkevi?ien?, &Vitalija, 2008) According toRita Kuvykaite1 (2009) the study reveals the self-service and changingconsumers’ lifestyle having the ultimate effect on consumer choice. Bashir and Malik(2009) have opinion that consumers are price conscious that’s common now daysin our society. People are almost behaving rationally due to the benefits ofcost, Ahmetoglu et al.
(2010) concludes that advertisement have a convincingpower and having a motivating tool to persuade the audience includinglisteners, readers and viewers so that they buy products or services Abideen andSaleem (2011) say that advertisement has positive effects on the consumer’s behavior;Flow of advertisement change the consumer’s buying decision. Rasool, et al(2012) emphasized that brands advertisement play a vital role to stimulate theconsumers to buy the same brands, it enhances the performance of any businessand its image among the rival market. Promotion of the product is very effective onthose consumers who are traveling via tangential route and this can stimulateand guide the consumer’s for switching one brand to another brand Chakrabortty,et al. (2013)The consumerspurchase more quantity of the products, after looking a well-labeled product.Therefore labeling influences the consumer buying behavior, but there are someother factors also, which influence the consumer buying behavior (Saeed, Lodhi,Rauf, Rana, Mahmood & Ahmed, 2013).
Chitra R (2014) anempirical study on Customers Purchase Intention towards Branded Apparels, thispaper aims to study factors affecting customers purchase intention towardsbranded apparel. Purchase intention is explained in terms of general consumervariables (normative influence, consumer confidence) and brand specificvariables (perceived quality, emotional value). Rajasekaran, Band Saravanan, P.
A. (2014) Consumer Satisfaction on Fast Moving Consumer Goods.The study throws on the attitudes, values, beliefs and perception of theconsumers with regards to the consumption of fast moving consumer goods. Tostudy the brand preference of fast moving consumer goods, the preference andopinion of consumer towards popular brands have been taken into consideration. Awan and Arif(2015) stated that the use of celebrity endorsement in media advertisementattracts the customers. Awan and Hassan (2015) say that SMS marketing is a newtool of introducing products and services and attracting new customers.
Misbah Ehsan,Samreenlodhi (2015) stated that attractive packaging and right tone of colorsthat delivers clearly the message of product then it will influence consumerbuying behavior and consumer will purchase that product. Packaging material canchange the overall perception of consumer regarding to the product quality.ResearchGap filled by this researchThe gap whichwill be filled by this research will be all about the Empirical study of consumerbuying behavior towards national brands in FMCG segment of Pakistan. And alsofulfilling all the objectives related to this study which is to know thefactors that influences consumer preference while selecting”brand to determine theage, gender and income level of consumers affecting their purchasing decision. RESEARCHMETHODOLOGY In our researchwe have collected data from primary sources through self-structuredquestionnaire which is used to collect data from our respondents. Our samplesize is 100.
For the analysis of data we have used SPSS software to see the consumerbuying behavior towards branded products in FMCG sector of Pakistan.ConceptualFramework This research aims to observeconsumer buying behavior towards branded products in FMCG segment of Pakistan. FINDINGS Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a.
List wise deletion based on all variables in the procedure. Case processing summary simple show the any missingdata of any respondent input in SPSS.100 % means all respondent fill all therequired fields.
Reliability Statistics Cronbach’s Alpha N of Items .720 8 According to thereliability shown in the above table the analysis performed is consistent,accurate and reliable. It shows that the respondents have answered all thequestions correctly and the respondents are fair and unbiased in providingtheir response to the questions asked in the questionnaire.Reliability ofQuestionnaire = 0.
72 or 72% The Cronbach’s alphashows the internal consistency of all 8 items. The rule of thumb of Cronbach’salpha is minimum 0.6 and maximum is 0.9. In this research the Cronbach’s alphafigure is 0.720 which is acceptable. Correlations HOW MANY TIMES DO YOU PURCHASE IN A WEEK DUE TO QUALITY DUE TO TASTE DUE TO HEALTHY/ HYGIENE FOOD DUE TO PRICE DUE TO PACKAGING DUE TO ACCESSIBILITY/ AVAILABILITY DUE TO BRAND CONSCIOUSNESS HOW MANY TIMES DO YOU PURCHASE IN A WEEK Pearson Correlation 1 Sig. (2-tailed) N 100 DUE TO QUALITY Pearson Correlation .
082 1 Sig. (2-tailed) .415 N 100 100 DUE TO TASTE Pearson Correlation .137 .403** 1 Sig. (2-tailed) .
174 .000 N 100 100 100 DUE TO HEALTHY/ HYGIENE FOOD Pearson Correlation .233* .
369** .268** 1 Sig. (2-tailed) .020 .000 .
007 N 100 100 100 100 DUE TO PRICE Pearson Correlation .123 .046 .299** .
127 1 Sig. (2-tailed) .224 .649 .002 .
208 N 100 100 100 100 100 DUE TO PACKAGING Pearson Correlation .169 .275** .378** .487** .
161 1 Sig. (2-tailed) .092 .006 .000 .000 .109 N 100 100 100 100 100 100 DUE TO ACCESSIBILITY/ AVAILABILITY Pearson Correlation .005 .
276** .331** .160 .460** .363** 1 Sig.
(2-tailed) .957 .006 .001 .
113 .000 .000 N 100 100 100 100 100 100 100 DUE TO BRAND CONSCIOUSNESS Pearson Correlation .310** .246* .293** .331** .
284** .395** .143 1 Sig. (2-tailed) .
002 .013 .003 .001 .004 .000 .155 N 100 100 100 100 100 100 100 100 *.
Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.
01 level (2-tailed). Variables Entered/Removed Model Variables Entered Variables Removed Method 1 DUE TO BRAND CONSCIOUSNESS, DUE TO ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE TO HEALTHY/ HYGIENE FOOD, DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGINGb . Enter a. Dependent Variable: HOW MANY TIMES DO YOU PURCHASE IN A WEEK b.
All requested variables entered. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .353a .125 .058 .98637 a.
Predictors: (Constant), DUE TO BRANDCONSCIOUSNESS, DUE TO ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE TOHEALTHY/ HYGIENE FOOD, DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGING InterpretationR is equal to 0.353 and R Square is12.5% where Std. Error of the estimate is 0.98637.In this model the value of r 0.
353 showsthe weak (positive) linear relationship between variables. Analysis12.5% of all variables has an impact onconsumer buying behavior towards FMCG products. ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 12.731 7 1.819 1.
869 .084b Residual 89.509 92 .973 Total 102.
240 99 a. Dependent Variable: HOW MANY TIMES DO YOU PURCHASE IN A WEEK b. Predictors: (Constant), DUE TO BRAND CONSCIOUSNESS, DUE TO ACCESSIBILITY/ AVAILABILITY, DUE TO QUALITY, DUE TO HEALTHY/ HYGIENE FOOD, DUE TO TASTE, DUE TO PRICE, DUE TO PACKAGING InterpretationThe RSS is 89.
5%, degrees of freedom is 7, Meansquare is 1.819,F calculated is 1.869.
Coefficientsa Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1 (Constant) 1.817 .954 1.904 .060 DUE TO QUALITY -.
063 .217 -.033 -.
289 .773 DUE TO TASTE .069 .178 .045 .385 .701 DUE TO HEALTHY/ HYGIENE FOOD .176 .
136 .152 1.292 .200 DUE TO PRICE .079 .148 .063 .
532 .596 DUE TO PACKAGING .016 .
138 .015 .118 .906 DUE TO ACCESSIBILITY/ AVAILABILITY -.130 .169 -.
094 -.772 .442 DUE TO BRAND CONSCIOUSNESS .226 .105 .245 2.158 .034 a.
Dependent Variable: HOW MANY TIMES DO YOU PURCHASE IN A WEEK CONCLUSIONVariable 1:Quality has a positive impact on consumer purchasingdecisions towards branded products of FMCG.Variable 2:Taste has positive impact on consumer purchasingdecision towards FMCG branded products.Variable 3:Healthy and hygiene, it has a high positive impact on consumerpurchasing intentions towards branded products of FMCG.Variable 4:Price has no positive impact on consumer purchasingbehavior towards FMCG branded products.
Variable 5:Packaging has a slightly high impact on consumerbuying decisions towards branded product of FMCGVariable 6:Availability has also a slightly high impact onconsumer purchasing behavior towards branded product of FMCG Variable 7:Brand consciousness, it has a very high impact on consumerbuying behavior towards branded products of FMCG.ORThrough our study on empirical study on consumerbuying behavior towards branded products in FMCG sector of Pakistan nit isproved that consumer buying behavior towards branded products in FMCG sectorit’s on priority due to quality and other associated services that is belongingwith that like taste, healthy and hygiene availability of that product. Pricesare little bit high of branded products but consumer still buying that becausethey believe that it is pure, healthy and hygienic stuff and they will notcompromise on quality. Consumers are more brands conscious they also provideextensive support to brands to increase their market shares. We can say thatnow day consumers are more brands conscious they will pay high price but theywill not compromise on quality, taste and other belonging services with that.RECOMMENDATIONIn branded products of FMCG sector in PakistanQuality is a key component it plays a very important role in consumer buyingbehavior so brands should focus on their quality and increase quality in theirproducts through high quality brands can get more loyalty of the customers.Consumer is pay for high prices but if the prices little bit reduce so thenumbers of customers are increases.
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