Abstract
Purpose: This paper aims to identify the factors that influence the FMCGs purchase decision in the rural areas of Bangladesh. In addition the study measures the impact of each factor on FMCGs purchase decision. Design/Methodology/Approach: The study sample consisted of 150 rural consumers selected based on convenient sampling method. Data was collected using self administered questionnaire via personal visit to the consumers. Factor analysis was applied to identify the factors and later multiple regression analysis was done to measure the impact of each factor on FMCGs purchase decision. Findings: Factor analysis revealed that 24 variables loaded on 9 factors. Among 9 factors Retailers Recommendations, Sales Promotion, Product Attribute, Life Style and Product Quality were found statistically significant in explaining 58.1% variation in the FMCGs purchase decision in rural areas of Bangladesh. Practical Implications: The study findings bring some suggestions for the marketers who want to develop product and execute marketing plan for rural consumers. Originality/Value: This study contributes to the body of empirical research on rural consumers because scholars of FMCG products regularly explore the urban consumer behaviors whereas the rural consumer behaviors are understudied.
Highlights
Fast Moving Consumer Goods are frequently purchased products like soap, shampoo, toothpaste, detergents, packaged foodstuff, dairy products, cooking oil, bread, butter, cereals, beverages like tea & coffee, pharmaceuticals, confectionery, biscuits, glassware, stationary items, soft drinks and grocery items which touches every aspect of our human life (Narayana & Mathew, 2015)
From the table 1 it can be seen that the value of Kaiser-Meyer- Olkin (KMO) statistic is .659 which is more than 0.5 supporting the application of Factor analysis and Bartlett’s test of sphericity with significance (.000) means that the relationship among the variables was strong
The study has put a great stride to find out the factors that influence or affect the rural consumers in Bangladesh while purchasing the Fast Moving Consumer Goods
Summary
Fast Moving Consumer Goods (popularly known as FMCG) are frequently purchased products like soap, shampoo, toothpaste, detergents, packaged foodstuff, dairy products, cooking oil, bread, butter, cereals, beverages like tea & coffee, pharmaceuticals, confectionery, biscuits, glassware, stationary items, soft drinks and grocery items which touches every aspect of our human life (Narayana & Mathew, 2015). On the other hand the rural economy directly or indirectly dependent on agriculture is characterized by relatively low level of penetration, low level of income, low level of literacy, low level of brand awareness, asymmetric information, inadequate communication and transportation facilities (Kumar & Joseph, 2014). As a result penetration in the rural market has become an inevitable business policy for sustainable business growth Besides this the purchasing power of the rural consumers has increased and consumption pattern is changing day by day. The Companies offering FMCGs can’t be successful in the rural market with their general marketing strategies Instead, they need to devise rural specific strategies due to the rural people’s low level of incomes, low levels of literacy, low levels of brand awareness, communication and inadequate transportation facilities (Yuvarani, 2013; Kumar & Joseph, 2014). In order to be successful the companies need to know the rural consumers’ buying behavior, the factors they consider while buying FMCG, the factors influence them and their brand awareness (Sumathi & Saravanave, 2003)
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