A Comparative Study of Consumer Behavior with Regards to FMCG Products

Abstract

Executive Summary:

Understanding customer preference is important for any organization before launching a product. If any given organization fails to analyze how a customer will respond to any particular product of company, the company will face huge losses. Consumer behavior is very complex because each consumer has a different mindset and attitude towards a product purchase, use and disposal of a product (Solomon, 2009). Understanding the ideas and concepts of consumer behavior helps to market a product or service effectively. In addition, studying consumer behavior helps in many aspects. As there is a continuous change in living standards, trends, fashion and technological changes; The consumer's attitude towards product purchase varies (Kumar, 2004). Understanding these things is very important because product marketing is highly dependent on these things. Therefore, consumer performance serves as an effective tool and the ultimate guide for advertisers to meet their marketing goals.

Consumer Conduct or Consumer Conduct refers to the behavior that a person displays while buying, consuming or disposing of any particular product or service. This behavior they show can be affected by many factors. In addition, it includes product search, product testing where the consumer examines various features, purchases and product usage. Later they learn the nature of the product purchase which also shows consumer satisfaction or dissatisfaction when it also involves the disposal of the product.

Any person while buying any product goes through many steps. Studying the consumer behavior also helps to understand how to make a purchase decision and how they want the product. In addition, following a consumer-oriented behavior helps advertisers to know what, where, when, how and why to use a product (Kumar, 2004). This helps retailers or organizations to understand the reason for buying a product by customers and how it satisfies them. Among other things, basic needs such as housing and hunger and the desire for psychological satisfaction often lead customers to purchase certain products or services.Also the kind of society they live in also plays a huge part in a person choosing one product over another. Customers in rural areas typically purchase goods from nearby towns and villages. Recently, there has been a shift in consumer purchase behavior toward purchasing locally that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCGs play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCGs to a rural community can help provide employment opportunities and drive down the cost of such products in those rural areas. For instance, FMCGs represent the fourth-largest sector in the Indian economy and generate employment for more than three million people in downstream activities