Factors Affecting Consumer Purchase Decisions in Fmcg Industry

Prologue

As evidenced in the recently concluded Board Meeting, concluding the reported statements by the Marketing Director in compliance with improving sales volumes, whilst focusing on brand loyalty would eventually lead to improved profitability, along with the Chairman stating that there are many other factors, besides brand loyalty which decided upon the ulterior development of a successful market, has led to the following critical analysis of the consumer behavior decision making process in the FMCG arena.

Basic Model used in assessing Consumer Decision making.

In everyday transactions every consumer undergoes the following process, when deciding upon a purchase irrespective of the type of goods/services procured,

1. Need Recognition and Problem Awareness
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post Purchase Evaluation

With reference to the FMCG industry; which is the most demanding profile of goods, with reference to the frequency of purchase respectively. Nevertheless what needs to be highlighted is the fact that FMCG requires little or low involvement by the consumers when deciding upon alternatives, with the exception being clearly seen with products that have a high brand loyalty attributed accordingly. Therefore brand loyalty is certainly a key factor in respect to the purchase decision. However it is not the sole deciding factor in the FMCG arena.

Upon critical analysis of the framework of consumer decision and evaluation of consumer behavioral pattern affecting factors, making the following points could be evidenced,

CRITICAL FACTOR CONSIDERATIONS-All the factors disclosed in bold are critical for efficate FMCG sustenance and influence positive buyer behavior.

1. NEED IDENTIFICATION AND PROBLEM AWARENESS

1. HEIGHTENING DESIRED STATUS AND PRODUCT CONCEPTUALITY IN UTILITY DRIVEN BEHAVIOR

In the Need Identification and Problem Awareness phase, the consumer would contemplate upon a certain addressable problem and would seek to satisfy the issue. With regards to FMCG this need wouldn’t cause much dissonance due to the fact of the perceived value would tend to be less for a FMCG due to the frequency of purchase which leads to lesser lead times between the need arousal and end satisfaction accordingly Also it is due to the fact that FMCG’s are procured to satisfy a functional need rather than a social or a need for change. This problem could simply be viewed according to the equation as follows;