Factors Influencing Buyer Behaviour in FMCG

Abstract

Every market segment for each product has its own purchase motivation. Price may be the important element when the product differences are viewed by that particular segment as being of little consequence. For others brand can be an important motive because they fear the risk involved in buying the untried item. For a great many products the point of distribution may be the most important deciding element. Quite often the final determinant is that of mere habit. Whatever the purpose, it is important to understand the patronage of purchase motives in relation to a specific market segment. This study intends to understand the influence of factors such as loyalty to local retailers, influence of price perception and purchase decision involvement in the buying behavior of FMCG products. Also, this study attempts to find out whether the influence of these variables is same across the different product categories in FMCG. The sample for the study consists of 537 households. The data collected is analyzed with Confirmatory Factor Analysis using SEM is done in order to draw meaningful conclusions.