A Study on Consumers and Place of Purchase for Select Fast Moving Consumer Goods

 

Dr. Trinankur Dey¹, Dr. L S. Sharma²

¹Assistant Professor, Faculty of Management, ICFAI University, Tripura, India

²Professor, Department of Management, Mizoram University, Aizawl, India

 

ABSTRACT:

Consumer behavior can be defined as the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs (Schiffman and Kanuk, 2004). The beliefs, views, attitudes, mental state, specific needs, characteristics etc. work behind the rostrum as a motivating factor to make any purchase decision. The factors that are responsible for making a purchase decision from a particular store or place or outlet are diverse. Consumers exert his/her buying motives for buying depending on several factors whereby place also plays an important role. Every customer is behaves differently in terms of making purchase decisions. This paper attempts to study the consumer behaviour and place patronage for select FMCG products in Agartala city by looking into the socio-economic profile of the consumers. The study finds that quality attribute plays the primary role while purchasing the FMCG products.

 

 

 

1. INTRODUCTION:

Consumer behavior can be explained as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (Schiffman and Kanuk, 2004). Early researches on consumer behavior verbalized that a consumer is led by his personal attributes that facilitate him/her to form a concept which guides him/her in the decision making process. The beliefs, views, attitudes, mental state, specific needs, characteristics etc. work behind the rostrum as motivating determinants to make any purchase decision. Every customer is different in terms of making purchase decisions.

 

Consumer behavior includes all of the activities of buyers, ex-buyers and potential buyers from pre-purchase deliberation to post-purchase evaluation, and from continued consumption to discontinuance. It extends from the awareness of a want, through the search for and evaluation of possible means of satisfying it, and the act of purchase itself, to the evaluation of the purchased item in use, which directly impacts upon the probability of repurchase (Alba et al., 1991).

 

Products which have a quick turnover and low cost by nature are termed as fast moving consumer goods (FMCG) products. These products are frequently purchased and consumed in a fast pace. Customers spent fewer amounts of time and effort to take a purchase decision of these FMCG products. Generally consumers get a wide range of variety in such consumable goods and can have different choice. These goods are so essential as well as available in our life that these are sold in every ‘kirana shop’. Product life cycle for these goods is very short. Starting from the morning till going to bed at night to sleep, these FMCG products are required and used. These products have immense influence in the life of the consumers. These goods are sold every day. They individually seem to be of small value but altogether they form a momentous part in consumers’ total expenditure. India’s FMCG industry is the 4^th largest sector in its economy and has been playing a significant role with near about 8 million stores selling FMCG engaging 25 million people as whole seller, distributor, retailer and others (Siji, 2015).  FMCG consists of personal care products, oral care, hair care, fast foods, skin care, grocery, house care educational materials dry foods, drinks, or even vegetables also.  It is noted by Siji (2015) that the size of the personal care products is estimated at $537 million, the skin care and cosmetic market is valued at $274 million in recent years.

 

Consumers can purchase FMCG goods from, neighbor store, department stores, market, and home delivery or from a fixed vendor shop. These stores can be of unfamiliar or filmier or new stores to the consumers.  Prior experiences from a particular store may lead to repeat purchase from it and it may bring store loyalty.

 

A rich body of knowledge exists regarding the factors that influence store patronage. Studies of store patronage behaviour (Lindquist 1974; Mazursky and Jacoby 1986) stated that consumers are influenced by a variety of factors that may be summarised into, for example, location, merchandise, service, and store atmosphere.

 

This study has been undertaken in Agartala city, the state capital of Tripura, India. Agartala is a small city, going under the changing phases of marketing where consumers has been encountering new and dynamic dimension of fast moving consumer goods.

 

2. OBJECTIVES OF THE STUDY:

·         To analyse the socio-economic characteristics of the consumers in Agartala city

·         To understand the place patronage   for select FMCG products

 

3. NEED FOR THE STUDY:

Consumers are the pivot of any business activity. All the retail activities hinge on consumers and their consumption related behavior. The purchasing process of a consumer is the consequence of interplay of social, cultural, economic as well as psychological faculties of the consumers. Retailing is a growing industry and small states like Tripura are also experiencing this change. Retail business is getting new formats having infused up with changing consumers’ behavior. Understanding the consumers is valuable for business community as it provides pertinent information about who is buying, what is being bought, from where a consumer is buying, when he is buying and if not buying, why he is not buying etc.

Tripura is a small state in the North East India sharing an international boundary with Bangladesh from three sides and having a population of about 37 lakhs. Agartala is the state capital having a population of more than 4,38,408 (Economic Review of Tripura, 2014-2015) the state has undertaken initiatives of industrialization long ago and a special industrial estate have been established. Rapid urbanization, urban poverty alleviation projects, urban infrastructural developments, Tripura Urban Employment Programme (TUEP) etc., is found to be implemented in Agartala city. Innumerable number of unorganized retail stores along with organized retail shops, grocery shops, regulated and non-regulated markets, catering the daily needs of the consumers. Selecting a store or shop for purchasing fast moving consumer goods is an interesting area of study as human psychology is unpredictable and consumers’ decision making is a process which is influenced by conscious and unconscious factors. It is thus imperative to study the store patronage buying behaviour and decision making of the consumers.

 

4. REVIEW OF LITERATURE:

Jere et al. (2014) investigated the relationship amongst the factors that influence store patronage among low-income consumers. The factors which influence the store patronage are discussed as store image, product (merchandise), price, promotion, and location (place). Manifest satisfaction is a result of an explicit evaluation of performance against expectations; hence the consumer will be aware of it and may develop commitment to a store. An assessment of the importance of the predictors of store loyalty shows that three of the six independent variables; store image, promotion, and location; are significant predictors.

 

In a study, Kasnaeny (2013) mentioned that motifs refer to the place of purchase or the dealer who sold the product (patronage motives). This motive is a consideration of why a consumer buying at a certain place. Based on previous studies, patronage buying motives into retail stores, malls and other shopping centers are very diverse. When shopping, customers are driven by the behavior that leads to choose a place that according to his/her wishes. The choice was based on the stimulation they get from corporate image that will produce the form of patronage behavior. Patronage intention is likely a customer to shop at a store / shop, willingness to recommend to others and a tendency to spend time in the shop / stall.

 

In the concept of preference and decision making, for each commodity the attributes are called as ‘primitive’ that can be regarded as a collection of characteristics; such primitive characteristics are size weight color, quantity etc. Quandt (1956) stated that when the consumer is about to make a choice, consumers evaluates and compares various primitive characteristics. It is the utility function which starts working in his cognitive faculty and directs him to comprehend the utility he derives from consuming a particular commodity with a certain amount of a particular primitive characteristic. It also tells how the utilities derived from the various primitive characteristics have to be prejudiced. The researcher also pointed out that in a particular (randomly selected) choices situation the consumer prefers to consider primitive characteristic at times. Similarly there is a certain probability that the consumer considers the compound characteristic consisting of the primitive characteristics.

 

The researcher stated two concepts, i.e. committing an error in decision making and past knowledge. Consumers often commit decision error and this may happen in two factors like Judgmental error in case of estimating attributes in a commodity and attaching ranking characteristics correctly. Past decisions and choices influence the frequency of the consumers with which particular characteristics are preferred in the present and future. The consumers gain knowledge from past successful and unsuccessful choice. Thus if the consumer makes a particular choice on the basis of a particular set of characteristics that  results positive, that is supposed to base the next decision concerning the same commodity on the same characteristics and knowledge. Buying can be repeated from a particular store or place as the consumer is having a prior satisfaction experienced from his past buying bahaviour.

 

Consumers’ decision process structurally categorizes the procedures of decision making mechanism as stated by O'Brien (1971) which contains several variables viz. advertising as commercial media, awareness, attitude, and confidence, keenness to word-of-mouth as non commercial media, intention, knowledge, purchase and use; with a  casual relationship among these variables by the application of cross-lagged correlations. In his study, the cross-lagged and multiple correlation differences indicated that word-of-mouth influences consumers’ intention to purchase.  According to the author, confidence and knowledge and awareness characterize cognition; attitude produces affect; intention, purchase, and are used to represent the cognitive state of mind. Commercial communication as advertisements as well as other information pertains to product or brand render consumer an impetus of thinking. Though the researcher has concluded by stating that commercial information does not directly influence purchase decision or having a meager influence on purchase decision and mentioned that such decision only begins with personal sources but this statement seemed to be detrimental because now a days it is the commercial advertisements is responsible for attitude formation of the consumers to a particular brand take a lead to an evoked set of the customers’ mind.

 

In consumers’ psychology, the behaviour as well as experiences can be described in terms of decisions pertain to products and use, perceptions and feelings about those products. The internal characteristics of a consumer affect the expressions and feelings towards a particular product. Consumer preferences are explained from three perspectives viz., the external factors, the internal directive factors and the internal dynamic factors (McGuire, 1976). The internal psychological faculty of the consumer is subdivided into directive aspect and the dynamic aspect of personality. The author explained directive aspect by stating that it is the characteristic features of the personality of the consumer that channelize information through perception, comprehension, exposure etc. The dynamic aspect of personality is the motivational force that triggers and upholds that information processing. The researcher further concluded by mentioning several steps that lead a consumer towards decision making; viz. exposure, perception, comprehension, agreement, retention, retrieval, decision making etc., and finally taking action to carry out the decision that means purchasing a product or service.

 

Olshavsky and Granbois (1979) did not agree with the conventional mode of pre-purchase processes of decision making where behaviour is contrary to the predicted models of choice and decision processes. They are of the view that purchases are headed by a decision process that provide an adequate account of only certain types of consumer purchasing behaviours and a significant proportion of purchases may not be preceded by a decision process. But this kind of proposition does not completely rebuff the familiar and established observation on consumer decision making process with little or no repurchase processes occurring after the first few purchases. The researchers identified a few issues related to purchase decision that can be occurred differently and by not following established norms of decision making set by other researchers. Purchases can occur out of necessity, curiosity;   experiences acquired in early childhood, following the group norms or from imitation of others; on recommendations of peers, friends or sometimes those surrogates forms or purchases may be done randomly.

 

Prior experience or knowledge about a product or service can be of good help for consumers in taking their right decisions. In new purchase or repurchase, to many extents these prior experiences can make a purchaser wise. There may be product information available or else consumer may have prior experience about the products. In both the environment, existence of knowledge structure affect information processing by the consumers while making a purchase decision making. There has been research on how prior choices affect present choices. Consumers use different types of information at different stages of a choice as explained by Bettman and Park (1980). While using products consumers, develop a kind of comparison standard such standard help them to get a wise choice in re purchase. It has been found that consumers with prior knowledge and experience tend to use such standards in the choice process. In case of new consumers or inexperienced consumers time is required in developing such standards for a particular product. The researchers concluded by stating that during the choice process consumers are likely to begin with comparisons by attribute-based valuations. Consumers are inclined towards assessment in standard and eliminating alternatives during choice process.

 

5. RESEARCH METHODOLOGY:

This research is descriptive in nature as the study aims to find out the consumer buying behaviour and decision making with respect to place patronage for select fast moving consumer goods in Agartala city. The study is carried out through survey method through a structured questionnaire.

 

Respondents are selected for the purpose of the study to represent the entire population of Agartala. For the purpose of collecting data, samples are chosen. Data were collected through structured questionnaire and interview method. Further, secondary data from research related documents, published books, article, newspapers, published, and unpublished research work of various institutions were used extensively

 

A well structure set of questionnaires were distributed 300 respondents and they were collected, out of which 256 were found to be suitable for enumeration. The questionnaires were coded and transformed into numerical data using a software application SPSS ver. 20. Further, all the questionnaires were entered as values and different statistical tools like Percentage Analysis, Mean Score, Kendall’s W, Pearson Chi-Square were used to draw inferences from the data.

 

5.1 Socio-economic profile

The capital city, Agartala having a population of more than 4,38,408 approx. is an amalgamation of diversified people in terms of age, occupation, qualification, income etc. The sample respondents of the population will represent the socio-economic profile of the people of Agartala.

 

Table 1 Profile of the Respondents

Sl. No.	Particulars	Classification	Frequency	Percentage
1	Marital Status	Single	111	43.4
		Married	145	56.6
		Total	256	100
2	Age Group	18-25	15	5.86
		26-35	153	59.77
		36-45	63	24.61
		46-55	20	7.81
		56-65	5	1.95
		Total	256	100
3	Educational Qualification	Non-matriculate	12	4.7
		Matriculate	15	5.9
		Undergraduate	29	11.3
		Graduate	126	49.2
		Post graduate	67	26.2
		Above Post graduate	7	2.7
		Total	256	100
4	Occupation	Unemployed / House-wife / Retired	26	10.2
		Agriculture	2	0.8
		Own-self business	41	16
		Clerical	20	7.8
		Officer	26	10.2
		Skilled Worker	11	4.3
		Private sector employee	25	9.8
		Unskilled worker	2	0.8
		Student	10	3.9
		Teaching	50	19.5
		Professional service	25	9.8
		Others	18	7
		Total	256	100

Source: Primary Data

 

The above table 1 shows the profile of the respondents in terms of marital status, age-group, educational qualification and their occupation. It was found that 56.6% were married while the remaining 43.4% were single. It also finds that the majority of the respondents were from young age group of 26-35 representing 59.77% followed by 24.61%. In terms of educational qualifications, highest category belongs to having a graduate degree represented by 49.2% followed by post graduation by 26.2%. The occupations of the respondents shows that teachers are the largest among the respondents representing 19.5%, followed by 16% who owns business and followed equally by unemployed/house-wife /retired and officers at10.20% each. So it can be inferred that the respondents are from a varied cross section of the society and represents the different social sections.

 

Table 2 Income level of the Respondents

Income per month	Total	Percentage
Below Rs. 10,000	49	19.22
Rs. 10,000-20,000	97	38.04
Rs. 20,000-30,000	49	19.22
Rs. 30,000-40,000	32	12.55
Rs. 40,000-60,000	24	9.41
Above Rs. 60,000	4	1.57
Total	256	100

Source: Primary Data

The above table 2 shows the income pattern of the respondents. The highest group is in the income group of Rs. 10,000-20,000 represented by 97 respondents (38.04%). The second group belongs equally to Below Rs. 10,000 group and Rs. 20,000-30,000 group represented 19.22% respectively. The data shows that the respondents are widely distributed and represents the wider sections of the state in terms of income.

 

5.2 Place Patronage and Consumer Decision for FMCG Products:

Purchase decision is very crucial and consumer considers place as an important factor while making a buying decision. FMCG products are more or less available almost in every store. So, consumers can have a wide array of store to choice or place patronage. The following analysis describes the place patronage of the consumers while making a buying decision for FMCG goods.

 

5.2.1 Influence of Place of Purchase in terms of Grocery Items:

For capturing the consumers’ mind and understanding their consumption related behaviour, it is pertain to be acquainted with the centre or place and process of purchase of products. For such endeavor, consumers are presented an array of question set and asked them to rank according to their choice and habitual process and centre of purchasing goods for their consumption. The following tables will present a detailed picture of their ranking.

 

Table 3 Ranking of Place of Purchase in terms of Grocery Items

Source: Field survey.

 

The above table 3 shows the ranking in terms of grocery items where the highest priority is given to purchase from neighbor stores (34%) where most of the consumers prefer to purchase grocery items for their consumption followed by market (27%) with rank 2 and small departmental or organized stores (66.4%) with rank 3.There are several small organized retail stores from where consumers purchase. Fixed vendor shop and any vendor shop are also considered along with home delivery and sales men visiting home are found with least priority.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing grocery items.

 

Table 4 Descriptive and Test Statistics of Place of Purchase in terms of Grocery Items

Source: Field survey.

 

From the above table 4, it can be can be observed that most of the consumers preferred to purchase form neighbor store followed by market, any vendor shop and fixed vendor shop. There are small organized retail stores all over the state and consumers are found preferring these retail stores. However, home delivery and salesmen visiting home is least considered.

 

In the above table 7.53, Kendall’s W (0.666) indicates that there is a high degree of concordance (agreement among the consumers of grocery products in terms of place of purchase). Moreover, the calculated χ² (1023.006) is found to be more than the critical value (12.59), for 6 degrees of freedom at 5% level of significance. The P value (0.000) is resulted less than 0.05; hence the null hypothesis is rejected. Therefore, it indicates that there is significant difference in the choices expressed by the respondents in terms of place of purchase in buying grocery items. Thus the association between these two variables is significant.

 

5.2.2 Influence of Place of Purchase in terms of Vegetables

Vegetables as essential commodity sold everywhere; in rural open markets, in urban sheds or retail stores. It is consumed in a huge quantity. Consumers treat place of purchase regarding vegetables and it is displayed below.

 

Table 5 Ranking of Place of Purchase in terms of Vegetables

Source: Field survey.

 

The above table 5 shows the preferences of consumers in terms of place of purchase of vegetables where highest choice is given to market (87.1%) from where most of the consumers purchase vegetables followed by any vendor shop (28.5%) and neighbor store (73.4%) (Although 53.9% prefers any vendor shop which has been considered in rank 2). In urban areas, a number of vendors move with vegetables and sell by visiting house to house. It’s evident that vegetables are sold mostly in the markets; separate stores so called organized stores are found least significant here.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing vegetables.

 

Table 6 Descriptive and Test Statistics: Place of Purchase in terms of Vegetables

Source: Field survey

 

The descriptive statistics table 6 shows that most emphasis is given on neighbor stores followed by market, any shop and then fixed shop. Departmental stores, home delivery and salesmen visiting home are also found considered.

 

In the above table 6, Kendall’s W (0.666) suggests that there is a high degree of concordance (agreement among the vegetables consumers regarding the place of purchase). The χ² value (1023.006) is found to be more than the critical value i.e. 12.59 for 6 degrees of freedom at 5% level of significance. As the P value (0.000) is found less than 0.05 thus the null hypothesis is rejected and therefore, it can be inferred that significant difference is can be found in ranks provided by the respondents in terms of place of purchase regarding vegetables.

 

5.2.3 Influence of Place of Purchase in terms of Hair-Care

Hair-care products are not that much costly and consumers are found to purchase these often. The following tables display the priority in terms of place of purchase.

 

Table 7 Ranking of Place of Purchase in terms of Hair-Care

Source: Field survey.

 

The above table 7 states that the highest rank is given to neighbor store (31.6%) from where most of the consumers prefer to purchase followed by purchase from small retail departmental stationery stores (69.5%) and rank 3 is given to any shop (31.6%). Rank 4 is given to fixed vendor shop from where consumer may buy on credit or on regular basis. Least consideration is found in case of market, home delivery and sales men visiting home with hair-care products.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing hair-care products.

 

Table 8 Descriptive and Test Statistics of Place of Purchase in terms of Hair-Care

Source: Field survey.

 

The table 8 suggests that highest preference is given on nearby stores followed by market, any shop, fixed regular shop and small departmental stores. However, home delivery as well as salesmen visiting houses with hair-care products is found less significant.

 

Kendall's W (0.666) in the last row, denotes that there lies a high degree of concordance that means an agreement among the hair-care purchasers with respect to place of purchase. The χ² = 0.666 is found to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. Since P value is found to be less than 0.05 hence, the null hypothesis is rejected. Thus, significant differences can be observed in the ranks expressed by the respondents in terms of place of purchase while purchasing hair-care products.

5.2.4 Influence of Place of Purchase in terms of Oral-Care Products:

Oral-care products fall under FMCG goods and consumers are found purchasing these from several sources or places. The following tables will exhibit their preferences regarding the place of purchase.

 

If the  table 9 is carefully noticed, it can be observed that most of the respondents gave neighbor stores (32.8%) as their highest choice with respect to place of purchase followed by small departmental stores (70.7%) and any shop (33.6%) with rank 2 and 3. There are some fixed vendor shops from where consumers are found buying oral-care goods. Market, home delivery and salesmen visiting houses are found with least choice and ranks.

 

 

Table 9 Ranking of Place of Purchase in terms of Oral-Care Products

Source: Field survey

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing oral-care products.

 

Table 10 Descriptive and Test Statistics of Place of Purchase in terms of Oral-Care

Source: Field survey

 

The table 10 shows that the highest preference is on neighbor stores, followed by market and the buying from any shop. Consumers also prefer to buy from fixed vendor shop and from small departmental stores. Home delivery and salesmen visiting houses is ignored.

 

Kendall's W (0.666) shown in the above table states that there is a high degree of concordance, meaning an agreement among the purchasers of oral-care products concerning the place of purchase. The calculated χ² (1023.006) value is found to be greater than the critical value (12.59) for 6 degrees of freedom and at 5% level of significance. Since the P value (0.000) is emerged as less than 0.05, hence the null hypothesis is rejected. There it can be interpreted that there is significant difference in the ranks specified by the respondents in terms of place of purchase while purchasing oral-care products. So the association among the choices of the consumers responding to place of purchase regarding oral-care goods is found significant.

 

Table 11 Ranking of Place of Purchase in terms of Skin-Care Products

Source: Field survey

5.2.5 Influence of Place of Purchase in terms of Skin-Care

Skin-care products are having a great demand always. Though these products are available everywhere, even consumers do consider the place of purchase while making a purchase decision of skin-care goods. The following tables will display the picture.

 

The ranking table 11 states that highest emphasis is provided on the purchase from neighbor store (30.1%) with rank 1 and small retail departmental stores (68.8%) with rank 2 and any shop (33.6%) with rank 3. Consumers also fond of buying skin-care goods from a fixed vendor stores and gave it rank 4. Market is ranked averagely but could not come in the frontier list. Home delivery is hit by large number of responses but considers with least preferences or choices.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing skin-care products.

 

Table 12 Descriptive and Test Statistics of Place of Purchase in terms of Skin-Care

Source: Field survey

 

The above table 12 shows the highest choice in case of purchasing skin-care goods is given on neighbor stores followed by market and any vendor shop. It means that consumers prefer to buy these goods maximally from neighbor store and then prefer market and any other shops. This is followed by selecting a particular store from where they buy goods regularly and small departmental stationery stores. Home delivery and salesmen visiting home is least considered.

 

Kendall's W (0.666) shows that there is a high degree of concordance or agreement among the purchaser of skin-care products. The calculated χ² value (1023.006) is observed more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. Seeing that the P value (0.000) is found to be less than 0.05, consequently the null hypothesis is rejected. So, it can be stated that there is significant difference in ranks provided by the respondents regarding the place of purchase in purchasing skin-care products.

 

5.2.6 Influence of Place of Purchase in terms of House-Care Products

There is a great deal of variety in case of house-care goods. These products are seen and sold almost everywhere. The preferences are found in the following tables.

 

Table 13 Ranking of Place of Purchase in terms of House-Care Products

Source: Field survey

 

The above table 13 shows the ranking and preferences of the consumers in terms of house-care goods where highest priority is found in market (33.6%) followed by small departmental stationery stores (70.7%) with rank 2 and any shop (35.5%) with rank 3. In such case, consumers prefer to purchase house-care products from a particular shop of their choice with rank 4. Neighbor stores are also considered. But home delivery and salesmen visiting home received least ranks signifying least ranks.

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing house-care products.

 

 

Table 14 Descriptive and Test Statistics: Place of Purchase in terms of House-Care Products

Source: Field survey

 

From the above table 14, it can be seen that highest preference for purchasing house-care materials is found in the case of neighbor stores followed by any shop and market from where most of the consumers prefer to buy house-care goods for them. There are fixed vendor shops and small retail departmental stores from where they are also found to buy. But least preference is observed in the case of home delivery and salesmen selling house-care goods from house to house.

 

In the above table 7.63, Kendall's W (0.666) suggests that there a high degree of concordance (agreement among the consumers of house-care products related to place of purchase). Moreover, the calculated χ² (1023.006) is found to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. As the P value (0.000) is found to be less than 0.05, hence the null hypothesis is rejected. Therefore, there is significant difference in ranks given by the respondents in terms of place of purchase while purchasing house-care products.

 

5.2.7 Influence of Place of Purchase in terms of Educational Materials

Almost in every retail stores, educational stationery goods are available. Even consumers knowingly or unknowingly consider the places of purchase and their preferences are ranked as evident from the following tables.

 

Table 15 Ranking of Place of Purchase in terms of Educational Materials

Source: Field survey.

 

The above table 15 expresses the ranking of priority of consumers in terms of purchasing educational materials where highest ranking is given to neighbor stores (37.9%) followed by any shop (38.3%) with rank 2, fixed vendor shop (31.6%) with rank 3. But home delivery is given rank 4 and departmental stores with rank 5. Market and salesmen visiting home are marginally ranked.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing educational materials.

Table 16 Descriptive and Test Statistics of Place of Purchase in terms of Educational Materials

Source: Field survey

 

If the mean values and assigned ranks in the above table 16 are analyzed, it can be observed that the highest priority is given to neighbor stores, followed by market, it means consumer do shop from market mostly and it is followed by any shop and from a particular shop. Departmental retail stores are also considered but home delivery and salesmen visiting home are least considered by the consumers.

 

Kendall's W (0.666) in the last row of the above table 7.65 indicates that there is a high degree of concordance (agreement among the consumers of educational materials regarding place of purchase). The calculated chi-square (1023.006) value is found to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. While the P value (0.000) is found to be less than 0.05, therefore, the null hypothesis is rejected and it can be stated that there is significant difference in ranks given by the respondents in terms of place of purchase while purchasing educational materials and the association is found significant.

 

5.2.8 Influence of Place of Purchase in terms of Dry food/Packet food

There is huge market of dry and packet food products all over the state. Almost in every shop (stationery, food and beverages stalls, kirana stores, paan-bidi stalls, grocery stores) dry and packet foods items are available. Almost in every stall these products are available and sold. The following tables will depict the preferences of the consumers in terms of place p purchase.

 

Table 17 Ranking of Place of Purchase in terms of Dry Food/Packet Food

Source: Field survey

 

 

 

The table 17 shows that the highest ranking is given to neighbor stores (50%) followed by any shop (46.1%) with rank 2 and small retail departmental shops (74.2%) with rank 3. Consumers are also fond of shopping form a fixed shop of their own choice. Market is considered along with home delivery. But least consideration is found in the case of sales men visiting home.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing dry and packet food.

From the table 18, it can be viewed that highest preference is found in the case of neighbor stores followed by market and any shop. That means consumers do maximum of their shopping from neighbor stores and then market or from any shop. This is followed by fixed vendor shop, small retail departmental stores. However, home delivery and salesmen visiting home does not look preferred by the consumers at large.

 

Table 18 Descriptive and Test Statistics of Place of Purchase in terms of Dry Food/Packet Food

Source: Field survey

 

The last row in the above table 17 showed Kendall's W (0.666) which suggests that there a high degree of concordance (agreement among the consumers of dry and packet food items in terms of place of purchase). The calculated chi-square (1023.006) value is found to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. Moreover, the P value is observed more than 0.000, hence the null hypothesis is rejected. Therefore, significant differences are prevailed in the ranks given by the respondents in terms of place of purchase in buying dry and packet food.

 

5.2.9 Influence of Place of Purchase in terms of Non Alcoholic Drinks:

Except alcoholic drinks, almost all seasonal or non seasonal drinks are sold at most of the retail stores. These are of easy available products. The following tables will depict the preferences of consumers in terms of place of purchase of drinks.

 

Table 19 Ranking of Place of Purchase in terms of Non Alcoholic Drinks

Source: Field survey

 

The above table 19 shows the highest ranking is given to neighbor stores (44.9%) followed by any shop (44.1%), small retail departmental stores (79.3%) and fixed retail outlets with rank 2, 3 and 4. Though home delivery is marked by heavy respondents but home delivery of drinks is least considered. Market is averagely preferred but salesmen visiting home are also least considered and put lower rank.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing non alcoholic drinks.

 

Table 20 Descriptive and Test Statistics of Place of Purchase in terms of Non Alcoholic Drinks

Source: Field survey

 

The above table 20 indicates that it is the neighbor store from which consumers showed highest preference followed by any shop and market. In the previous table of ranking 7.68, market is not that much emphasized but here market holds a good position in terms of buying drinks. It is followed by fixed vendor shops and small retail organized departmental stores. Home delivery and salesmen visiting home with drinks are proved to be least significant.

 

Kendall's W (0.666) in the last row of the above table 19 states that there is a high degree of concordance (agreement among the consumers of drinks regarding the purchase of place of purchase). The calculated χ² value (1023.006) is found to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. As the P value is observed more than 0.000, thus the null hypothesis is rejected. So, it can be inferred that there is significant difference in ranks shown by the respondents in terms of place of purchase in purchasing non alcoholic drinks.

 

5.2.10 Influence of Place of Purchase in terms of Fast-Food

Fast-food items are of great demand throughout. Consumers are fond of buying these fast-food items with ease. As these are available everywhere, consumers’ preferences in terms of place of purchase is important to apprehend. The following tables will exhibit them.

 

Table 21 Ranking of Place of Purchase in terms of Fast-Food

Source: Field survey      

 

From the above table of ranking 21, it can be found that the highest preference is found in neighbor stores (34.4%), followed by any shop (42.6%)  and small retail organized stores (82.4%) with rank 2 and 3. Though market is averagely preferred and ranked accordingly but home delivery is marked with heavy responses but lower ranks. Same in the case of salesmen visiting home deemed less significant.

 

Hypothesis:

H_o: There is no significant difference in ranks given by the respondents in terms of place of purchase while purchasing fast-food.

 

Table 22 Descriptive and Test Statistics of Place of Purchase in terms of Fast-Food

Source: Field survey

 

The above table 22 states that highest emphasis is on neighbor stores followed by market and from any vendor shops from those consumers prefer to buy fast-food items. As these food items are delicious so consumers are fond of buying them from a particular shop also from there they buy them regularly. Small departmental stores, home delivery and salesmen visiting home with fast-food items are found least significant.

 

 

Kendall's W (0.666) suggest that there a high degree of concordance (agreement among the consumers of fast-food items in terms of place of purchase). The calculated χ² value (1023.006) is observed to be more than the critical value (12.59) for 6 degrees of freedom at 5% level of significance. The P value (0.000) is found to be more than0.05, thus the null hypothesis is rejected. Thus, there is significant difference in ranks given by the respondents in terms of place of purchase while purchasing fast-food.

 

6. FINDINGS AND CONCLUSION:

In buying decision, place of purchase is very important. Consumers are found preferring neighboring stores and market to purchase grocery items for them. Vegetables are purchased from market mostly and from salesmen visiting home. Hair-care, oral-care, skin-care, dry food items, educational materials, non-alcoholic drinks and fast-food items are seen purchased mostly from neighboring stores or from market and any shop. There is significant difference in the choices expressed by the respondents in terms of place of purchase of buying these FMCG goods.

 

The overall analysis of the socio economic profile of the respondents finds that the majority of the respondents are married educated and are from the middle income group who have the major amenities for comfort and recreation.

 

While purchasing grocery items, consumers are found preferring neighbor stores for their consumption and it is followed by market and small departmental stores. It means that most of the consumers like to purchase their grocery items from nearby retail stores.

 

For buying vegetables, consumers are found to shop from market followed by any vendor shop and neighboring shops. Even, for hair-care goods, it is the nearby stores at which consumers prefer to purchase most of the time.

 

In the matter of hair care products, consumers of Agartala city are found more eager to shop from neighboring stores followed by departmental stores and any shops. Hair-care items are easily available goods so these can be found any nearby stores of the consumers.

 

Even for the oral care and skin-care goods, consumers showed their preferences for nearby retail stores followed by small departmental stores and any vendor stores.

 

But while purchasing house-care materials, consumers expressed their highest preferences for market followed by small departmental stores and any vendor shops. But in the case of educational materials, dry or packet food items and non-alcoholic and fast food items etc., it is neighbor store which has been highly prioritized followed by any or fixed vendor shops.

The study concluded gives an insight about consumer behaviour regarding place patronage for the select FMCG products. From the study, it has been found that neighbor stores or nearby stores still remains as one of the preferring places for purchasing FMCG goods followed by any vendor shop and departmental stores. It is also concluded that the retail industry and FMCG sector is growing and will continues to grow. But consumers are found still depending mostly on nearby unorganized stores. Though recent mall culture is growing but the pace is comparatively slow. In the forth coming days, there is a wide opportunity to convert traditional unorganized retailing to modern formats of organized retailing by attracting more number of consumers and by satisfying their daily needs. As the place of purchase is very important from the perspective of retail business, retailers can improve their service quality as well as the shopping environment so that consumers can be repeat purchasers.

 

7. ACKNOWLEDGEMENT:

Author thanks to Prof. L. S. Sharma, Department of Management, Mizoram University for his generous support, constant encouragement and continuous guidance.

 

8. REFERENCES:

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