Academic journal article IUP Journal of Brand Management

Factors Influencing the Bangladeshi Consumers' Purchase Decision regarding Fast Moving Consumer Goods: An Exploratory Study

Academic journal article IUP Journal of Brand Management

Factors Influencing the Bangladeshi Consumers' Purchase Decision regarding Fast Moving Consumer Goods: An Exploratory Study

Article excerpt

Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors in the economy of Bangladesh. In the last few years, the FMCG industry in Bangladesh has experienced a dramatic growth; both qualitative and quantitative improvements have taken place in the consumer durables segment. FMCG in marketing means convenient and low involvement products like, salt, flours, pens, chocolates, etc. In recent years, the FMCG industry worldwide has 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. The study has identified eight primary factors that influence consumers' purchase decision of FMCG products in Bangladesh. These factors are sales promotion, unavailability of brand, time constraint, in-store TVC, variety-seekingbehavior, product features, end of aisle display andproduct 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 industry in Bangladesh. The FMCG industry will find better development opportunities, if the findings of this study are used as an input in its strategic decision making.

Introduction

The Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors in the economy of Bangladesh, characterized by a strong multinational companies' presence 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 FMCG. In the last few years, the FMCG industry in Bangladesh has experienced a dramatic growth; both qualitative and quantitative improvements have occurred in the consumer durable items (Hamid et al., 2008). While purchasing 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 et al., 1996). These convenient and low involvement products are also known as FMCG in marketing. For the marketers, it is very difficult and sometimes impossible to track consumers' brand preference. Marketers may help form a consumer's intention to buy and facilitate his purchasing process by providing essential information. According to Perner (n.d.), the final decision as to which brand to buy from the 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 group of consumers to acquire what the marketers are offering in the marketplace in exchange for 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 wallet share of their consumers through fierce marketing strategies. Every marketer dreams that only his products will be stocked in the shelves of his consumer's homes. However, in marketing, it is always said, 'In the end, the consumer is king! (Gee, n.d.). This study focuses on identifying the factors influencing the consumers' preferences for the FMCG products during the actual purchase. The goal of this research is to identify the factors that significantly affect the consumer's decision to purchase FMCG products from the retail outlets.

Literature Review

According to Wikipedia, FMCG are the products that are sold quickly at relatively low prices. …

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