Purchase Intention Of Fast Moving Consumer Goods Products And Factors Impacting It In Rural India

Authors

  • Priya A Saxena

Abstract

In India, more than 65% of the population resides in rural areas. Rural Market contributes to 36% of overall Fast moving consumer goods spending while fast moving consumer goods products account for 50% of total rural spending (IBEF). Rural and semi urban segments are growing at a fast pace .By offering the rural India’s purchasing behaviour analysis, this study will be helpful for FMCG sector companies to know their customers well and hence plan the products accordingly. According to Miller and Kim (1999), consumer’s intention to shop depends to a large extent on income levels and age of consumers. Despite a large literature available on consumer behaviour, research pertaining to rural behaviour for snacks and chocolates segment remains ambiguous. Hence, this paper aims to understand the purchasing intension of customers residing in rural areas, with the focus on the Snacks & Chocolates segment from fast moving consumer goods (FMCG). Ten focus group discussions were held with consumers having a broad range of demographics and socio economic backgrounds to get an in-depth understanding of research topic with focus on buying frequency, brand preference and willingness to pay. The study highlights that the buying behaviour in rural India depends on the product type and the socio economic status. Consequently, the research concludes that emphasis should be given on relation between the company and retailers & distributors as villagers have less information of products in market and retailers are the ultimate sellers, proposing a third factor to Miller & Kim theory of impact on consumer’s intent to shop.

Originality/value: Rural Market contributes to 36% of overall FMCG spending. By offering the rural India’s purchasing behaviour analysis, this study will be helpful for FMCG sector companies to know their customers well and hence plan the products accordingly.

Published

2020-11-01

Issue

Section

Articles