Why Do Consumers make Purchase Decisions? Exploring Fast Moving Consumer Goods as an Emerging Market

Abstract

The Fast-Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG), are goods that have a high shelf turnover, relatively low cost, and don't take much thought, time, or financial investment to purchase. Any product that is widely used; often moves relatively quickly and regularly. The FMCG sector is India's fourth-largest sector that affects daily life for everyone. The FMCG goods sector contributes vitally to the gross domestic products of India. The present study is an attempt to examine various factors that influence the consumers’ purchase decision of FMCG products with the sample size of 195 consumers by surveying through a structured questionnaire in the state of Kerala and analyzed using correlational analysis and factor analysis. To accomplish the objective of the study, both primary and secondary data were used. The result of the study showed that promotional factors, product factors, price factors, brand image, social influence, convenience, and information availability have a positive and significant relationship with purchase decisions. The study also reveals that the promotional factor variable has a great impact and a better level of significance compared with the other variables in influencing the decision of the consumer to buy FMCGs. Overall, the findings of the research paper provide empirical support for theories-based knowledge of the different variables influencing consumer purchase decisions, as well as experimentally testing and supporting hypothesized effects among the relationships of the aforementioned factors. As a result, it contributes significantly to a better understanding of consumer behaviour in context of purchase of FMCG.