Analysis of factors affecting consumers' repurchase decision for an FMCG

Abstract

This research study has been conducted to study and analyze how different factors affect a consumer's decision to repurchase FMCGs i.e. fast moving consumer goods. The thesis was supervised by Sir Imran Said and conducted by Miss Shaheena Jan Shenwari over a period of nine months. The thesis was registered with the approved title of "The study of factors affecting consumers' repurchase decision for an FMCG". It was conducted as a requirement for the degree of BBA. Fast moving consumer goods include a wide range of products, which are used and consumed daily. • The perception of the market for FMCG products is one of intense competition, constant switching by disloyal consumers, price-sensitivity and promotional responsiveness. The reality is more complex. Consumers do feel loyal to brands, although they can not always explain why, and they are less likely to switch than might be imagined ... Consumers build up loyalty towards specific brands from this regular usage, the high frequency of use enables marketers to 'exploit the habit-forming behavior of humans to help build brands. Typically, the average consumer rarely changes his brand of FMCG that he has become habituated to using. It is simply not worth the while of an individual customer to re-evaluate every single product every time he goes. shopping. The time and energy spent on this exercise will be far more than any savings or other benefits the consumer may derive. This is not to say that consumers do not ever change brands but that brand usage is linked to habit, making it far more difficult for new competitors. FMCG marketers consumers spend a make the mistake of lot of time making assuming that their shopping decisions. In reality, with the overload of information that a consumer is subjected to consumers need to simplify their lives. Consumer satisfaction is important to the marketer because it is generally assumed to be a significant determinant of repeat sales, positive word-of-mouth, and consumer loyalty. Satisfaction is important to the consumer because it reflects a positive outcome from the outlay of scarce resources and/or the fulfillment of unmet needs. Unsatisfactory purchases, though varying by product class or service category, appear to be prevalent. Consumer satisfaction with a product/service refers to the favorability of the individual's subjective evaluation of the various outcomes and experiences associated with using or consuming the product/service. The evaluation is based on a cognitive process in which consumers compare their prior expectations of product outcomes (e.g., product performance and other important attributes) to those actually obtained from the product. The extent to which expectations are realized is assumed to be directly related to the level of satisfaction experienced. If actual product outcomes meet or exceed those expected, satisfaction results. If, however, product outcomes are judged below expectations, dissatisfaction occurs This research led to the conclusion that consumers prefer low priced products that are easily and readily available and sales promotions offered on the products, has no effect on consumers' preferences. Whatever little effect sales promotion has, time and doesn't do much it's for a short period of in terms of building brand loyalty as consumers' switch to either other products or back to their regular brand, once the promotion has ended. This leads to a very important conclusion, that satisfaction that customers' might get from a product does not guarantee brand or product loyalty.