Consumer buying behaviour through Online shopping application in fast moving Consumer goods

 

R. Vijayalakshmi1, Dr. T. R. Gurumoorthy2, G. Lingavel3, K. Praveenkumar4

1Ph. D. Research Scholar, Department of Commerce, Alagappa University, Karaikudi - 630004.

2Professor and Head, Department of Commerce, Alagappa University, Karaikudi - 630004.

3Research Assistant, Department of Commerce, Alagappa University, Karaikudi - 630004.

4Ph. D. Research Scholar, Department of Commerce, Alagappa University, Karaikudi - 630004.

*Corresponding Author E-mail: vijayalakshmi16594@gmail.com, kirthigurum@yahoo.co.in, lingam326334@gmail.com

 

ABSTRACT:

Fast Moving Consumer Goods are product purchased for consumption by the average consumption. The purpose of the study was to identify the consumer’s through online shopping application in FMCGs. The study adopted- sectional create to accomplish the set objectives. The sample of total 320 respondents was selected from Karaikudi using convenience sampling method. Data were collected using a structured questionnaire which was prepared extensive literature review. Data were analyzed using statistical techniques such as explotary factor analysis, Correlation, Descriptive statistics test in SPSS. The results indicated that exploratory factor analysis produced a total of four factors. Which are identified as brand name, Product details, Price consciousness, General awareness. Moreover, demographic variables were also create inducing factors sustaining the consumer’s in FMCGs. The study contributed through identify and explore the consumer’s through online shopping application in Fast Moving Consumer Goods. The findings of the study may be useful online shopping is valuable resources to the important consumer purchasing the products. Online shopping is more valuable to consumers. The consumer behaviour purchasing time saving and more benefited to the online applications. However, consumer’s influencing purchasing the online application in FMCG products. The inducing factors sustaining the online application in Fast Moving Consumer Goods.

 

KEYWORDS: Brand loyalty, Quick Development, Service Quality, Retailing, Challenge, Innovation, Time Savings, Brand Attraction.

 

 


INTRODUCTION:

Consumer cost for online grocery purchases and to propose the notion of “integrated service solution” packages as a approach for growing and successfully satisfying the channel to guide both marketing strategy and policy (Ronan De Kervenoael et., al 2006). Consumers' product evaluations are definitely affected by tangible interaction.

 

However, it is not known if it is related to goods that people usually touch for brief periods of time. Consumers' concrete perception of FMCGs by altering the surface texture. (Nigel Marlow et.,al 2011). Consumers are discussed how the motives to purchasing the product to online shoppers, as a means of explaining how the motives apply in the Internet setting. Non‐functional motives can be adapted to the twenty‐first century mode of online shopping (Andrew G. Parsons 2002). Fast Moving Consumer Goods (FMCG) move towards to branding needs to be used to for the services sector. The emphasis is placed on the elusive nature of services and corporate branding and how problems linked to offerings can be overcome the products (Malcolm H.B. McDonald et., al 2001). The apparent usefulness and perceived of use of SMS advertising messages, predicted the intention to use them. In addition, trust in SMS promotion and subjective norms also contributed to the intention to use (Jing Zhang and En Mao 2008). Online deal can lower the environmental online shopping under specific circumstances. Consumer’s behaviour in terms of travel, choice of e-fulfilment method and basket size are critical factors in influential the environmental sustainability of e-commerce. (Patriciavan Loon et., al 2015). The approach e-commerce business and second, to evaluate whether consumer returns are a central aspect of the creation of productivity and, if so, to discuss the role of returns management in the supply chain strategy (Klas Hjort and Björn Lantz et., al 2013). Consumers' in sequence to search and decision‐making processes for recent purchases of five categories of goods/services: fast moving consumer, white goods, small electrical products, green energy tariffs and tourism (McDonald, S 2009). Consumers' online group buying planned by institutional initiators. The initial one to specially focus on how perceived benefits and professed risks influence consumers' attitudes toward online group buying (Matthew Tingchi Liu 2013). The products and services selling over the Internet channel are becoming more dynamic. The part this is due to the increasing use of auction models in business and consumer markets to selling the commodities, excess inventories, used merchandise, rare items collectibles, and other items (P.K. Kannan, Praveen K. Kopalle 2014).

 

REVIEW OF LITERATURE:

Based on an wide literature review, the subsequent factors have been recognized the factors inducing the consumer buying behavior through online shopping in application in Fast Moving Consumer Goods.

 

Brand Awarness:

The physically powerful Indian brand have strong product equity, consumer demand-pull and able and dedicated dealer network which have been created over a period of time. The brand has to be made relevant by perceptive local needs. The offering the same product in different regions with different brand names could be adopt as a strategy (B Chandrasekhar 2012). Brand equity has posed a immense challenge to the companies in the Indian fast moving consumer goods (FMCG) industry (Bijuna C.Mohan and A.H. Sequeira 2016). Consumer respect to sales promotion and use of conjoint design in the study of brand preferences (Vyas, Preeta H. 2010). The consumers prefer some of the popular brands but they also prefer to use local brands also in any products (Gupta, S.L; Mittal, Arun 2008). Brand name salience, or the importance of a brand in remembrance, has been simultaneous to brand choice and buying the consumers. The brand salience for fast-moving consumer goods, which incorporate knowledge, media consumption, and brand image as experience (Julian Vieceli and Robin N. Shaw 2010).

 

Product Details:

The product and packaging improvement process within the fast-moving consumer goods (FMCG) industry. While often taking on the status of apocryphical folklore, labelled FMCG invention development appeared in the popular and consultancy press (Mark FrancisandPeter Dorrington 2008). Consumer diversity seeking behavior in various contexts in the past. This influence of determinants on fast moving consumer goods (FMCG) (Jayanthi, K.; Rajendran, G. 2014). The FMCG analysed from the perspective of processes, components and typology. The typical issues faced by the FMCG are also explored (Bala, Madhu; Kumar, Dinesh 2011). Retailer and competitor decisions supply to long-term promotional value, their part impact has yet to be evaluated (Koen Pauwels 2007). The association marketing and the reality of relationships in mass buyer markets from the regulars perception, with the focus on the fast moving consumer goods (FMCG) sector. It is found that from the consumers' perspective relationships do not and cannot exist in these markets and that the nature of exchange in such markets is not relationship based (Rose Leahy 2011).

 

Price Consciousness:

Consumers in India verify important control of brand functional benefits, brand trust, price consciousness, and genetic influence on brand loyalty. The marketers would have to balance the usual clear views of brand price with the emerging dimensions of brand migration in a aggressive context (Ramesh Kumar, S. Advani et., al 2005). Consumers make natural decisions connecting real brand in a required choice context. The segmented analysis indicates extensive differences, importance that the compromise effect is strong and considerable among quality seeking consumers, whereas the concession effect is weak and insignificant among price aware subjects (Holger Müller and Eike B. Kroll 2012). Consumer price segment can be general across product categories (Hans H. Stamerand Hermann Diller 2006). The product price knowledge and to expand dimension variables that succeed a people product price knowledge. The product price knowledge is a multidimensional build, the relationship between its dimensions is to be investigate and consumer kind are to be analyzed to influence these dimensions (Hans Pechtl 2008). Consumer produce company have followed a exacting construction in how they brand their products (Zahra Ladha 2007).

 

General Awarness:

Purchase a product or service of same or different brands or producers. charge in view the frame of references the present paper is an attempt to study the factors moving the purchase decision of consumers towards purchase of the Fast-Moving Consumer Goods (FMCGs) (SS Kundu 2013). Consumers control brands when they do not find the brand they wanted (Daniel Corsten and Thomas Gruen 2003). Fast -moving consumer goods (FMCG) purchases are made at the point-of sale, and creation packaging has been found to play a intentional role in purchase decision criteria. Packaging is, therefore, an important basis through which companies can discriminate products from the competing brands (Variawa and Ebrahim 2011). The contribute of high-quality printed packaging to the fast-moving, consumer-goods industry (FMCG) of two companies that manufacture consumer-packaged goods for retail customers (Pauline Found and Nick Rich 2007). Packaging material and knowledge employed in the food, beverage and other fast-moving consumer goods industries (T.A. Cooper 2013).

 

OBJECTIVES OF THE STUDY:

The main intention of the present study is to identify and explore the consumer’s buying behaviour through online shopping application in FMCGs. This study analyze the FMCGs consumer’s buying behaviour through online shopping application. The study aims to find the inducing factors sustaining the consumer’s in FMCGs.

 

METHODOLOGY:

The present study is both descriptive and analytical in nature, mainly based on primary data. This study carried out of the observation and survey questionnaire methods. The sampling technique involved in convenient sampling. The population of the present study consider of the consumer in Karaikudi. A sample size of total 320 respondents was selected using convenience sampling. Data were collected through a structured questionnaire which was prepared through extensive review of literature. The questionnaire consisted of 14 items related to various factors inducing the consumer behaviour. Statistical technique such as Percentage analysis, Correlation, Reliability analysis, exploratory analysis, and weighted average rank was on the data using SPSS20.0.

 

DATA ANALYSIS AND RESULTS:

1.     Demographical Profile of Respondents:

Of the total respondents 320, 232 (72.5%) were male; whereas, the 88 (27.5%) were female, which shows that the sample was tilted towards male respondents. Majority of the respondents were in the age category of 21-23 years (44.7 %), 24-27 years (70 %), and above 27 years (69%), 17-20 years (11.9 %). Majority of the respondents were in the degree (45%). 17.5 % of the respondents in PG, upto 10th std 16.9 % of the respondents, 10.6% of the respondents in 12th std, 10% of the respondents were professional.

 

Table.1 Demographic profile of the respondents

Variable Name

Categories

Frequency

(%)

Age

17-20 years

38

11.9

21-23 years

143

44.7

24-27 years

70

21.9

Above 27

69

21.6

Gender

Male

232

72.5

Female

88

27.5

Education

Upto 10th Std

54

16.9

12th Std

34

10.6

Degree

144

45

PG

56

17.5

Professional

32

10

Ocupation

Farmer

34

10.6

Businessman

82

25.6

Govt.Employee

123

38.4

Private Employee

81

25.3

Annual Income

Upto to Rs. 1,00,000

34

10.6

2,00,000 to 3,00,000

82

25.6

4,00,000 to 5,00,000

123

38.4

Above Rs. 5,00,000

81

25.3

 (Source: Primary data)

 

Occupation of the respondents were 38.4% of the respondents government employee, 25.6% of the respondents businessman, 25.3% of the respondents private employee, 10.6% of the respondents farmer. Moreover, respondents having income Rs.4,00,000- 5,00,000 were 38.4%, 2,00,000-3,00,000 were 25.6%, above Rs.5,00,000 were 25.3% of the respondents, upto Rs.1,00,000 were 10.6% of the respondents in annual income.

 

2.     Weighted Average:

The factors are available in the study online application to purchasing the fast moving consumer goods. The Weightage of 8th for 1st rank, 7th for 2nd rank, 6th for 3rd rank, 5th for 4th rank, 4th for 5th rank, 3rd for 6th rank, 2nd for 7th rank, 1st for 8th rank.


 

 

 

 

 

 

 

Table.2 Weighted Average Rank

S. No

Factors

Weight

Total

Weigthted Average Rank

Rank

8

7

6

5

4

3

2

1

Weighted Score

1.

Bigbasket

424

315

96

100

204

132

112

35

1418

4.43

V

2.

Malligakai.com

328

273

234

190

88

159

78

49

1399

4.37

VI

3.

Amazon

280

392

264

255

80

48

90

53

1462

4.56

IV

4.

Mandi

552

504

270

175

152

75

44

14

1786

5.58

I

5.

Reliance

464

315

300

200

120

159

48

20

1626

5.08

II

6.

Bigbazaar

392

273

318

110

152

117

78

41

1481

4.62

III

7.

Paytmmall

112

154

150

190

140

135

144

69

1094

3.41

VIII

8.

Snapdeal

160

168

318

150

160

150

90

58

1254

3.91

VII

Weight score= weight* No. of respondents Weighted average rank= Total/ sum of weight


The table 2 shows that it is found mandi application has got first rank in inducing application and factor in FMCG. Reliance has got second rank, Bigbazzar has got third rank, Amazon has got fourth rank, Bigbasket has got fiveth rank, malligai.com has got seventh rank, snapdeal has got seventh rank and finally paytmmall has got eigth rank.

 

3.     Factor Analysis:

The factor analysis, it is desirable to check the underlying assumptions of factor analysis. KMO value is more than 0.7 indicates that the sample is adequate to apply factor analysis.

 

Table 3. KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.847

Bartlett's Test of Sphericity

Approx. Chi-Square

1412.283

df

91

Sig.

.000

 

The table.3 gives KMO value as 0.847, which more than the recommened value (0.7). The table 3 indicates that Bartelett’s test of sphericity (chi-square= 1412.283, df= 91) is significant (p- value < 0.05, which confirms that the variables are significantly correlated to each other, which is a pre-requisite for factor analysis.

 

The table 4 provides values of communalities for all the observed variables which shows that communalities for all the variables are more than the threshold value of 0.5. Moreover, the factor solution resulting form from prinicipal component analysis is rotated and eigen value criterion is used to extract the factors. The rotated factor solution results is four factors which together explain 62.133 % of the total variance (table 4), which is more than 60%.

 

Naming of the Extracted Factors:

Rotated component matrix results into four factors, the four factor contains variables. Whereas, the factors have either four or five variables.

 

Factor 1(Brand):

The first factor explains 33.015% of the total variance and contains a total of four variables: “Brand name” (Loading=0.741), “Brand loyalty” (Loading=0.667), “Brand logo” (Loading=0.749), “Brand visibility” (Loading= 0.885).

 

Factor 2 (Product):

The second factor explains 11.658% of the total variance and its four variables- “Product experience” (Loading=0.836), “Product color” (Loading= 0.744), “Product quality” (Loading= 0.661), “Product quantity” (Loading=0.754).

 

Factor 3 (Price):

The third factor explains 9.735% of the total variance and its three variable- “Special offer” (Loading=0.769), “Easy Availability” (Loading= 0.691), “Price content” (Loading= 0.740).

 

Facotr 4 (General awareness):

The three factor explains 7.725% of the total variance and its explain three variable- “Availabilty” (Loading= 0.683), “Packaging” (Loading=0.804), “Dignity” (Loading =0.673).


 

Table.4 Extracted factors: Loading, Eigen value, Communality, Variance Explained, Cronbach’s Alpha

S.No

Variable

Factor Loading

Communality

Eigen Value

Variance Explained

Cronbach’s Alpha

Factor 1

Brand

Brand name

0.741

.580

 

 

4.622

 

 

33.015%

 

 

 

 

 

 

 

.913

Brand Loyalty

0.667

.597

Brand Logo

0.749

.667

Brand visibility

0.885

.790

Factor 2

Product

Product experience

0.836

.730

 

 

1.632

 

 

11.658%

Product color

0.744

.642

Quality

0.661

.570

Quantity

0.754

.617

Factor 3

Price

Special offer

0.796

.648

 

1.363

 

9.735%

Easy Availability

0.691

.521

Price content

0.740

.621

Factor4

General

Availability

0.683

.538

 

1.081

 

7.725%

Packaging

0.804

.653

Dignity

0.673

.525

 


Reliability and Validity:

Reliability coefficients for all four factors is more than the recommened value 0.7 (table 4).

 

4.     Descriptive Statistic:

The table 5 gives the mean and standard deviation of the factors from the exploratory analysis. The table 5 shows that brand name ( Mean= 2.11, S.D= 1.142), Product experience (Mean= 2.13, S.D= 1.230), Special offer (Mean= 2.18, S.D= 1.062), Brand loyalty (Mean= 2.28, S.D= 1.166), Product color (Mean= 2.20, S.D=1.193), Brand logo (Mean= 2.12, S.D=1.146), Easy availability (Mean= 2.30, S.D= 1.112), Quality of product (Mean=2.43, S.D= 1.227), Price content (Mean= 2.29, S.D= 1.269), Quantity of product (Mean=2.56, S.D=1.248), Availabilty (Mean= 2.28, S.D= 1.166), Packaging (Mean=2.20, S.D=1.193), Brand visibility (Mean=2.12, S.D= 1.146), Dignity (Mean=2.30, S.D=1.112).

 

Table.5 Descriptive Statistics

S. No

Variable

Mean

S.D

1

Brand name

2.11

1.142

2

Product experience

2.13

1.230

3

Special offer

2.18

1.062

4

Brand loyalty

2.28

1.166

5

Product color

2.20

1.193

6

Brand logo

2.12

1.146

7

Easy availability

2.30

1.112

8

Quality of product

2.43

1.227

9

Price content

2.29

1.269

10

Quantity of product

2.56

1.248

11

Availabilty

2.28

1.166

12

Packaging

2.20

1.193

13

Brand visibility

2.12

1.146

14

Dignity

2.30

1.112

 

5.     Correlation:

Measure the relationship among the dependent and independent variables with pearson test. The table.6 shows that correlation (r) of brand name is 1, Product experience is 0.588, Special offer 0.436, Brand loyalty 0.398, Product color 0.471, brand logo 0.464, Easy availability 0.206, Quality of product 0.301, Price of content 0.241, Quantity of product 0.136, Availability 0.398, Packaging 0.471, Brand visibility 0.464, Dignity 0.206. This indicate a significant positive relationship between the dependent variables and the independent variables, consumer purchasing inducing the FMCG products. The table shows that for all entire variables, the p-value is 0.000, which is less than 0.01. Therefore, the null hypothesis in this research can be rejected and concluded that there is a positive relationship between the independent variables and dependent variables of the consumer inducing the FMCG products.

 

Table 6. Correlation

S. No

Variables

Pearson Correlation

Sig

1.                     

Brand name

1.000

.000

2.                     

Product experience

0.588

.000

3.                     

Special offer

0.436

.000

4.                     

Brand loyalty

0.398

.000

5.                     

Product color

0.471

.000

6.                     

Brand logo

0.464

.000

7.                     

Easy availability

0.206

.000

8.                     

Quality of product

0.301

.000

9.                     

Price content

0.241

.000

10.                  

Quantity of product

0.136

.000

11.                  

Availabilty

0.398

.000

12.                  

Packaging

0.471

.000

13.                  

Brand visibility

0.464

.000

14.                  

Dignity

0.206

.000

 

DISCUSSION:

The objective of the study is to classified and explore the behaviour of consumer’s buying behaviour through online shopping application in FMCGs. This study analyse the behaviour of consumer purchasing the online shopping application. The study aims to find the inducing factors sustaining the consumer’s in FMCGs. The results of factor analysis extracted four factors Brand name,Product details, Price consciousness, General awareness. The consumer perceived excellent quality into greater within the services than FMCG and durables (Kavita Srivastava, NarendraK. Sharma 2013). The shopping orientation is one the various factors influencing the online shopping for behaviour to FMCG.The study suggests that with increased shopping orientationare much more likely to purchase FMCG online (S Sambargiand RK Gopal 2016). Consumer buying conduct is understood also as customer selection making is the procedure via which individuals seek for select, purchase, use, and goods and services to satisfy require needs. This study has been designed to answer predominant question about the function of social media advertising and marketing on purchaser buying conduct in very lively field which is style retail industry,then determine the variations if existed on this relation concerning to the call of the brands anconsumer demographics factors (Adnan Veysel Ertemel et.,al 2016). Online gambling experiment handy 24/7 to check the drivers of behavioural retention. It observed that habit, no longer patron satisfaction, had a strong effect on a variety of responses tied to retention (BillJolley 2006). The internet shopping and the connection between the frame of mind and the impact factors were investigated (ShwuIng Wu 2003). The impact of level of IIT on customer view of online retail condition, shopping satisfaction, shopping contribution, a longing to remain, and support aim. Noteworthy auxiliary connections between these exploration factors were discovered, supporting a delight arranged reasonable model of shopper support conduct in the web based retailing condition (JihyunKim 2007). Shoppers worldwide can shop online 24 hours per day, seven days per week, 365 days per year. The market parts, including protection, budgetary administrations, PC equipment and programming, travel, books, music are encountering quick development in online deals (Steven Bellman et., al 2009).

 

CONCLUSION:

The present study explore four important factors brand name, product details, price consciousness, general awareness which are the major factor of consumer through online shopping. Online shopping is valuable resources to the important consumer purchasing the products. Online shopping is more valuable to consumers. consumer behaviour purchasing time saving and more benefited to the online applications. However, consumer’s influencing purchasing the online application in FMCG products. The inducing factors sustaining the online application in Fast Moving Consumer Goods.

 

ACKWOLEDGEMENT:

This article has been written with the financial support of RUSA 2.0 Grant vide letter no. F24-51/2014-U Policy (TN-Multi-Gen), Department of Education, Government of India, dated 09.10.2018.

 

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Received on 26.03.2020          Modified on 18.04.2020

Accepted on 27.04.2020           ©AandV Publications All right reserved

Asian Journal of Management. 2020;11(3):315-320.

DOI: 10.5958/2321-5763.2020.00049.9