Measuring The Impact of Marketing Strategy On Consumer Perception (A Study of Consumer of Udaipur)

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MEASURING THE IMPACT OF MARKETING

STRATEGY ON CONSUMER PERCEPTION (A STUDY


OF CONSUMER OF UDAIPUR)

( )

A Thesis
Submitted for the Award of the Ph. D. degree of
PACIFIC ACADEMY OF HIGHER EDUCATION
AND RESEARCH UNIVERSITY
By

Anil Jain

Under the Supervision of

Dr. Anil Kumar Bhatt


Associate Professor
Faculty of Commerce
Pacific University

FACULTY OF MANAGEMENT
PACIFIC ACADEMY OF HIGHER EDUCATION
AND RESEARCH UNIVERSITY, UDAIPUR
DECLARATION

I, Anil Jain hereby declare that the research work incorporated in the
present thesis entitled “Measuring the Impact of Marketing Strategy
on Consumer Perception (A Study of Consumer of Udaipur)” is my
own work and is original. This work (in part or in full) has not been
submitted to any University for the award of a Degree or a Diploma. I
have properly acknowledged the material collected from secondary
sources wherever required. I solely own the responsibility for the
originality of the entire content.

Date: Signature of the Candidate

Signature of the Supervisor/s

i
CERTIFICATE

It gives me immense pleasure in certifying that the thesis entitled

“Measuring the Impact of Marketing Strategy on Consumer


Perception (A Study of Consumer of Udaipur)” and submitted by Mr.

Anil Jain is based on the research work carried out under my guidance.
He has completed all the requirements as per Ph.D. regulations of the

University as follows:-

(i) Course work as per the university rules.

(ii) Residential requirements of the university.

(iii) Regularly submitted Half Yearly Progress Report.

(iv) Published two research papers in referred research journals.

I recommend the submission of thesis.

Date: Name and Designation of Supervisor/s

ii
COPYRIGHT

I, Anil Jain hereby declare that the Pacific Academy of Higher Education

and Research University Udaipur, Rajasthan shall have the rights to

preserve, use and disseminate this Dissertation/thesis entitled

“Measuring the Impact of Marketing Strategy on Consumer

Perception (A Study of Consumer of Udaipur)” in print or electronic

format for academic / research purpose.

Date: Signature of the Candidate

Place:

iii
ACKNOWLEDGEMENT

The present research study has been undertaken and accomplished under the
expert guidance and supervision of Dr. Anil Kumar Bhatt Associate
Professor, Faculty of Commerce, Pacific Academy of Higher Education and
Research University, Udaipur, Rajasthan.
I owe a debt of gratitude to him which cannot be expressed in the mere
acknowledgement of the exceptionally considerate and constant assistance
rendered to me for giving final shape to this report. It is indeed a great honour
and privilege to be guided by him.
I am extremely thankful to Mr. Rahul Agarwal, Secretary, Pacific Group of
Education and Mr. Sharad Kothari, Registrar for their continuous
encouragement for taking and completion of this task. Without their support it
would not have been possible for me to achieve this objective quite
comfortably.
I am very grateful to Prof. B.P. Sharma, President, PAHER University and
Prof. Mahima Birla, Dean, Faculty of Management, PAHER University
Udaipur, Rajasthan, for their suggestions and constructive criticism at every
phase of the study, which contributed to the successful completion of the study.
I am highly obliged to Prof. Hemant Kothari, Dean, P.G. Studies, PAHER
University, Udaipur, Rajasthan, for his valuable help in providing
infrastructure, facilities, encouragement and timely support for conducting the
study.
I appreciate the guidance, encouragement and support extended to me by my
teachers, friends, relatives, colleagues and all other who assisted, guided,
cooperated directly or indirectly for the completion of the project.
I also take this opportunity to place on record for my most sincere and deep
sense of indebtedness to all my family members for their blessing and
encouragement throughout this project.
Above all, I express my deep sense of gratitude to the Almighty Lord for
abiding grace which made it all possible.

Anil Jain

iv
PREFACE

The marketing mix is defined as 4P‘s namely the product, price, promotion and place.
They are often designed to influence consumer decision-making and lead to profitable
exchanges. Each element of the marketing mix can affect consumers in many ways.

The strength of this research lies on its specific focus on the connection between the
customer‘s satisfaction with the international marketing mix model, the four Ps and
benchmarking. This research also underlines the impact of customer buying behaviour
base on the company quality policy.

The research work is presented in 5 chapters. Chapter-1 an introduction presents the


introduction of the term Marketing mix, Criticism on Marketing Mix Model,
Limitations of the Marketing Mix Framework, Customer Satisfaction, Significance of
Study and formation of Research Objectives. The chapter-2 reviews of literature
presents Objectives of the study, need to study, research on marketing mix model,
standardization of Marketing Mix, marketing strategies adopted for FMCG sector,
criticism on Marketing Mix Model and customer satisfaction.

Chapter-3 Research methodology presents the hypotheses, source of information,


research design, data collection tools, data analysis technique, significance and
limitations of the study, development of scale items and variables used in the study,
Chapter-4 Data analysis presents the demographical description of the respondents,
data analysis in brief with the testing of various hypothesis as per the requirement of
the research and research objectives, measuring difference as per demographical
profile of the respondents with the help of statistical software SPSS-19.

v
INDEX

Chapter Title Page No.


No.

DECLARATION i
CERTIFICATE ii
COPYRIGHT iii
ACKNOWLEDGEMENT iv
PREFACE v
INDEX vi
LIST OF TABLES vii
LIST OF FIGURES ix

1. INTRODUCTION 1-21

2. LITERATURE REVIEW 22-56

3. RESEARCH METHODOLOGY 57-71

4. DATA ANALYSIS 72-160

5. CONCLUSION 161-169

APPENDIX-1 BIBLIOGRAPHY i-xvi

APPENDIX-2 QUESTIONNAIRE xv-xxii

APPENDIX-3 ABSTRACT OF PAPERS

vi
LIST OF TABLES
Description Page
No.
Table 1.1: Promotional Mix Methods 9
Table 2.1: Contextual factors and influence on standardization of 4Ps 33
Table 2.2: Review of consumer marketing theory literature 35
Table 2.3 : Review of relationship marketing literature 37
Table 2.4: Review of services marketing literature 39
Table 3.1: Scale item description 69
Table 4.1: Respondent Demographics- summary 74
Table 4.2: Age distribution 74
Table 4.3: Gender distribution 75
Table 4.4: Occupation wise distribution 76
Table 4.5: Location wise distribution 77
Table 4.6: Income wise distribution 78
Table 4.7: Most frequently purchases FMCG 80
Table 4.8: Frequency of purchase of FMCG products 81
Table 4.9 : Person who influence most in Purchase decision 82
Table 4.10: Preferred product line 83
Table 4.11: Source of information 84
Table 4.13: Preferred Location of purchase 85
Table 4.13: Factors influence purchase decision 86
Table 4.14: Influencing Promotion Method 87
Table 4.15: Scale item description 88
Table 4.16: Scale Items-Product 94
Table 4.17: Frequency Distribution-Place 94
Table 4.18: T-test –Product strategies 98
Table-4.19: Multiple regressions for product related factors 100
Table 4.20: Scale Items-Price 103
Table 4.21: Frequency Distribution-Price 103
Table 4.22: T-test –Price strategies 107
Table-4.23: Multiple regressions for price related factors 109

vii
Description Page
No.
Table 4.24: Scale Items-Place 112
Table 4.25: Frequency Distribution-Place 112
Table 4.26: T-test –Place strategies 117
Table 4.27: Multiple regressions for Place related factors 119
Table 4.28: Scale Items- Promotion 121
Table 4.29: Frequency Distribution 122
Table 4.30: T-test – Promotion strategies 128
Table 4.31: Multiple regressions for Promotion related factors 130
Table 4.32: Scale item-promotion 134
Table 4.33: Overall opinion 134
Table 4.34: Scale item-motivation 135
Table 4.35: Overall opinion 135
Table 4.36: Scale item 136
Table 4.37: Overall opinion 136
Table 4.38: ANOVA result-Age 137
Table 4.39: ANOVA result-gender 142
Table 4.40: ANOVA result-occupation 146
Table 4.41: ANOVA result-Income 150
Table 4.42: ANOVA Result-Location 155
Table 4.43: Summary- Hypothesis testing 160

viii
LIST OF Figures
Figure Page No
Figure 1.1: The marketing mix model 3
Figure 1.2 : Product classification 4
Figure 1.3: Zero stage channel of distribution 7
Figure 1.4: One stage channel of distribution 7
Figure 1.5: Two stage channel of distribution 7
Figure 1.6: Three stage channel of distribution 8
Figure 1.7: Promotion through PLC 11
Figure 2.1: Marketing mix – 4Ps and 7Ps 30
Figure 2.2: Marketing mix and motive 35
Figure 2.3: Satisfaction Framework 42
Figure 3.1: Steps of Research Methodology 61
Figure 4.1: Age wise distribution 75
Figure 4.2: Gender distribution 76
Figure 4.3: Occupation wise distribution 77
Figure 4.4: Income wise distribution 78
Figure 4.5: Most frequently purchases FMCG 79
Figure 4.6: Frequency of purchase of FMCG products 80
Figure 4.7: Person who influence most in Purchase decision 81
Figure 4.8: Preferred product line 82
Figure 4.9: Source of Information 83
Figure 4.10: Preferred Location of purchase 84
Figure 4.11: Factors influence purchase decision 85
Figure 4.12: Influencing Promotion Method 86

ix
Chapter -1

Introduction

1.1 Introduction
1.2 Marketing Mix
1.3 Criticism on Marketing Mix Model
1.4 Limitations of the Marketing Mix Framework
1.5 Customer Satisfaction
1.6 Significance of Study
1.7 Research Objectives

1
1.1 Introduction

The decision problem faced by management has been translated into our market
research problem in the form of questions that define the information that is required
to make the decision and how this information obtained. Henig and Buchanan and
Buchanan et al. have argued that good decisions come from good decision process
and suggest that where possible the subjective and objective parts of the decision
process should be separated. This separation enables the decision making process to
move away from being unnecessarily subjective and toward a more objective
orientation. A decision problem can be conceived as comprising two components; a
set of objectively defined alternatives and a set of subjectively defined criteria. The
relationship between the alternatives and the criteria is described using attributes,
which are the objective and measurable features of alternatives, attributes form the
bridge between the alternatives and the criteria.

Let us also remind that, in the framework of decision making, due to the prominent
look-ahead component (Pomerol, 1995), the subjective and contextual data play an
important role. Moreover, due to the incompleteness of the model, especially during
the evaluation phases (Lévine and Pomerol, 1995), among the elements facilitating
the cooperation are explanations and contextual knowledge, and the need to make
them explicit and shared both by the system and the user (Brezillon and Abu-Hakima,
1995) and Brézillon (1996).

For the multinational corporation (MNC), the pursuit of a global marketing strategy
encompassing a standardized marketing mix strategy retains the promise of greater
opportunities in the borderless marketplace (Dunning, 1993; Kustin, 1993; Roth,
1995). These strategies also offer the opportunity to develop higher quality products
by obtaining greater efficiencies of production, through lower costs associated with
economies of scale (Levitt, 1983), outsourcing (Kotabe, 1990; Keegan & Green,
2003), developing priority locations for manufacturing (Dunning, 1998), distribution
(Rosenbloom, Larsen, & Metha, 1997) and economies of scope (Yip, 1989).

2
1.2 Marketing Mix

According to Philip Kotler ―Marketing Mix is the set of controllable variables that the
firm can use to influence the buyer‘s response‖. The controllable variables in this
context refer to the 4 ‗P‘s [product, price, place (distribution) and promotion]. The
term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing manager
as a "mixer of ingredients". The marketing mix is a model of creating and
implementing marketing strategies. It stresses the blending of various factors in such a
way that both organizational and consumer objectives are attained. The elements are
the marketing tactics, also known as the 'four Ps', the marketing mix elements are
price, place, product, and promotion.

Figure 1.1: The marketing mix model

These four P's are the parameters that the marketing manager can control, subject to
the internal and external constraints of the marketing environment.

3
1. Product

Product refers to the goods and services offered by the organisation. A pair of shoes, a
plate of dahi-vada, a lipstick, all are products. All these are purchased because they
satisfy one or more of our needs. The term "product" refers to tangible, physical
products as well as services. Although this typically refers to a physical product, it has
been expanded to include services offered by a service organization.

Figure 1.2 : Product classification

The specification of the product is one of the variables that a marketer has at his/her
control. For example, the product can include certain colors, certain scents, and
certain features. Lastly, in the broadest sense when a consumer purchases a product it
also includes the post-sales relationship with the company. The post-sales relationship
can include customer service and any warranty.

4
Product Decisions

a. Specification

Specification is very important in agricultural products. Some markets will not take
produce unless it is within their specification.

b. Culture

Product packaging, labeling, physical characteristics and marketing have to adapt to


the cultural requirements when necessary.

c. Physical product

The physical product is made up of a variety of elements. These elements include the
physical product and the subjective image of the product.

d. Packaging

Packaging serves many purposes. It protects the product from damage which could be
incurred in handling and transportation and also has a promotional aspect. It can be
very expensive. Costs of packaging have always to be weighed against the advantage
gained by it. This can be both expensive and demanding for many developing
countries.

e. Labelling

Labelling not only serves to express the contents of the product, but may be
promotional (symbols for example Cashel Valley Zimbabwe; HJ Heinz, Africafe,
Tanzania).

2. Price

Price is the amount charged for a product or service. It is the second most important
element in the marketing mix. Fixing the price of the product is a tricky job. Many

5
factors like demand for a product, cost involved, consumer‘s ability to pay, prices
charged by competitors for similar products, government restrictions etc. have to be
kept in mind while fixing the price. In fact, pricing is a very crucial decision area as it
has its effect on demand for the product and also on the profitability of the firm.

Pricing Decisions
Three basic factors determine the boundaries of the pricing decision - the price floor,
or minimum price, bounded by product cost, the price ceiling or maximum price,
bounded by competition and the market and the optimum price, a function of demand
and the cost of supplying the product.

Methods of fixing the price can be broadly divided into the following categories.
a. Cost based pricing
b. Competition based pricing
c. Demand based pricing
d. Objective based pricing

3. Place

A place or distribution channel is a way of transporting the product to the customer


and the level of accessibility of the product to customers. This element of marketing
mix is like the vehicle for the other elements of marketing (product, price, and
promotion). Without place, the customer will not have access to products. Distribution
channels can be defined as ―a path through which goods and services flow in one
direction (from vendor to the consumer) and the payments generated by them that
flow in the opposite direction (from consumer to the vendor)‖.

The various channels used for distribution of consumer goods can be described as
follows:

6
(a) Zero stage channel of distribution

Figure 1.3: Zero stage channel of distribution

Zero stage distribution channel exists where there is direct sale of goods by the
producer to the consumer. This direct contact with the consumer can be made through
door-to door salesmen, own retail outlets or even through direct mail.

(b) One stage channel of distribution

Figure 1.4: One stage channel of distribution

In this case, there is one middleman i.e., the retailer. The manufacturers sell their
goods to retailers who in turn sell it to the consumers.

(c) Two stage channel of distribution

Figure 1.5: Two stage channel of distribution

7
This is the most commonly used channel of distribution for the sale of consumer
goods. In this case, there are two middlemen used, namely, wholesaler and retailer.
This is applicable to products where markets are spread over a large area, value of
individual purchase is small and the frequency of purchase is high.

(d) Three stage channel of distribution

Figure 1.6: Three stage channel of distribution

4. Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Promotion
represents all of the communications that a marketer may insert into the marketplace.
This can include TV, radio, and print advertising, as well as coupons, direct mail,
billboards, and online advertising. One of the less well-defined areas in promotion is
the role of a human sales force. On the other hand, consumers may rather purchase the
product only when sold through the support of a known salesperson. In this case, the
service, perceived or real can be defined as a feature of the product.

Nonetheless, the rules still apply for effective promotion, whether it is of limited or
more extensive nature.

Most basic marketing textbooks cover the "ground" rules for effective advertising and
promotion and so the reader is referred to these rather than repeat these again here. It

8
is usual to distinguish between "advertising " and "promotion". Advertising is defined
as:

"Any form of communication in the paid media".

Promotion, on the other hand, is defined as:

"An incentive, usually at the point of sale, intended to enhance the intrinsic value of a
product or service".

Other expressions in common use are "above the line" and "below the line", the line
being an imaginary one, defining the boundary between promotion from the retailer to
consumer and the other from manufacturer to retailer.

According to the definition of the Chartered Institute of Marketing (2004),


‗promotional mix‘ is ―a term used to describe the set of tools that a business can use
to communicate effectively the benefits of its products or services to its customers‖
(Abdullah & Ahmad, 2010).

Table 1.1: Promotional Mix Methods

Types of
Explanation
Promotion
Communication through mass media, the firm will usually pay for
Advertising
this type of communication.
Developing a positive relationship between the organisation and the
Public media and the public. Good public relationships involves not only
Relations creating favourable publicity through the media but also involves
minimising the impact of negative situations.
Promotions designed to create a short term increase in sales.
Sales
Examples of sales promotion include money off coupons, discount
Promotion
codes and "flash sales".
Personal Sales interaction between the firm's representative and a consumer on
Selling a one to one basis.

9
Types of
Explanation
Promotion
This involves sending marketing to a named individual or
Direct Mail
organisation. Firms often buy lists of names, e-mails and postal
(post and e-
addresses for this purpose. This can be highly effective when the
mail)
direct mail recipients are within the firm's target market.
Internet Placing adverts on internet pages through programmes such as
Marketing Google's AdWords.
Firms place daily messages on social media such as Facebook and
Social Twitter to keep customers interested in their organisation. They may
Media even run promotions, flash sales and discounts just for their social
media readers.
An organisation or event is paid to use your branding and logos.
Sponsorship is commonly used in sporting events; player's clothing
and stadiums will be covered in the firm's branding and even the
Sponsorshi
tournament may be named after the firm. Although effective
p
sponsorship requires a large audience you may get smaller firms
interested in local business sponsoring small events in their area e.g.
school fairs.

As products move through the four stages of the product life cycle different
promotional strategies should be employed at these stages to ensure the healthy
success and life of the product.

10
Figure 1.7: Promotion through PLC

1.3 Criticism on Marketing Mix Model

Peter Doyle (Doyle, 2000) claims that the marketing mix approach leads to
unprofitable decisions because it is not grounded in financial objectives such as
increasing shareholder value. According to Doyle it has never been clear what criteria
to use in determining an optimum marketing mix. Objectives such as providing
solutions for customers at low cost have not generated adequate profit margins. Doyle
claims that developing marketing based objectives while ignoring profitability has
resulted in the dot-com crash and the Japanese economic collapse.

1.4 Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of the
marketing concept when physical products represented a larger portion of the
economy. Today, with marketing more integrated into organizations and with a wider
variety of products and markets, some authors have attempted to extend its usefulness
by proposing a fifth P, such as packaging, people, process, etc.

11
Today however, the marketing mix most commonly remains based on the 4 P's.
Despite its limitations and perhaps because of its simplicity, the use of this framework
remains strong and many marketing textbooks have been organized around it.

1.5 Customer Satisfaction

Customer satisfaction is a perception. It is also a question of degree. Providing quality


products and services is all about meeting customer requirements. Customer
satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation.

Organizations are increasingly interested in retaining existing customers while


targeting non-customers; measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace.

Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the
basis for the measurement of customer satisfaction with a service by using the gap
between the customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is objective
and quantitative in nature.

1.6 Significance of Study

Retailers need to generate a pool of information in order to introduce products and


services that create value in the mind of customer. The value of what the customer
perceived is a subjective one, the attributes that create value cannot simply be
deducted from common knowledge. Rather, data must be collected and analyzed. The
purpose of this marketing research is to provide the facts and direction that managers
need to make their more important marketing decision.

The strength of this research lies on its specific focus on the connection between the
customers satisfaction with the international marketing mix model, the four Ps and

12
benchmarking. This research also underlines the impact of customer buying behavior
base on the company quality policy.

A survey of small business managers in Texas revealed that 84 percent of those who
conducted formal marketing research projects in the past three years felt that the
information obtained was worth the money spent. Overall, 58 percent said that they
were able to incorporate the research findings into their decision-making process.
Only six percent reported that they were not able to implement the results.
Consequently, when small businesses do engage in marketing research the benefits
usually exceed the costs.

As consumers become more cautious with their spending, retailers have had to
become extremely price-competitive. The ongoing price war among major retailers
continues to have an adverse effect on the small retailers, who may not be able to
compete at lower prices. Company has become more aware of their marketing
strategy and started benchmarking to measures and compares all its functions, systems
and practices against strong competitors, identifying quality gaps in the organization,
and striving to achieve competitive advantage locally and globally. However, it is
note that the intense competition posed by foreign players will provide additional
impetus for local retailers to leverage on retail technology to better understand
consumer purchasing behavior, streamline operational procedures and to enhance
efficiency.

This research enable the retail stores to gain insight into future industry trends that
will affect its business, get data and analysis in the most cost-effective and flexible
way and draw on essential information without being overwhelmed by unnecessary
detail.

13
1.7 Research Objectives

It is anticipated that the findings of this research will harvest benefits as follow:

1. Elucidate a clear picture on the connection between the customers satisfaction


with the international marketing mix model, the four Ps.
2. The four Ps are the parameters that the marketing manager can control, subject
to the internal and external constraints of the marketing environment.
3. Develop the awareness on the impact of customer buying behavior base on the
company quality policy.
4. Gain insight into future industry trends that will affect its business.
5. Get data and analysis in the most cost-effective and flexible way and draw on
essential information without being overwhelmed by unnecessary detail.
6. Make value for customer and help managers to look outside of themselves for
solutions.
7. Contribute to the marketing theory (The marketing mix model, 4Ps).

14
Chapter -2
REVIEW OF RELATED
LITERATURE

2.1 Marketing Mix

2.2 Standardization of Marketing Mix

2.3 Marketing Strategies for FMCG sector

2.4 Criticism on Marketing Mix Model

2.5 Customer Satisfaction

15
2.1 Marketing Mix
Dadzie et al. (2017) evaluated the applicability of the 4As marketing mix activities
(i.e., affordability, accessibility, acceptability, and awareness) in emerging market
conditions, using Ghana as the empirical context. Two-thirds of firms in the sample
report medium-to-high use of all the 4As. Only affordability and accessibility
marketing mix activities lead to market share performance (demand aggregation
advantage), while all 4A activities lead to financial performance. Further, the
regulatory environment moderates the relationship between affordability and market
share performance. Thus, the study results suggest that emerging markets firms
emphasize different components of the 4A marketing mix for optimal effectiveness.

Festa et al. (2016) starting from the 4Ps model (product, price, promotion, and place),
this study develops a theoretical framework specifically for wine-marketing mix. This
study draws on a literature review on marketing mix variables—and the role of
knowledge in consumer purchase behavior—to propose the 4Es formula (expertise,
evaluation, education, and experience) based on a certain knowledge of the
consumer/taster. Thus, an experimental marketing action applies the concept of wine
marketing mix, according to the 4Es model, to a panel of consumers. The results,
although with some limitations, support the relevant contribution of knowledge to the
wine-marketing mix.

Adams (2016) has shown that small and medium-sized wineries have become
financially dependent on direct sales linked to wine tasting rooms with an average of
70 percent of winery sales coming from the tasting room. Their findings highlight key
differences in individual wine tasting room marketing mix strategies which emphasize
the need to understand consumer tastes and preferences for the wine tasting
experience. Research shows that investing in the product and promotion of the wine
tasting room has a positive impact on profitability.

Medical and health organizations as well as health care providers face considerable
pressure resulting from costs, quality, and good clinical service delivery in public
health system. These organizations are increasingly concerned with marketing as a
managerial role which provides attractive opportunities to deal with these problems.
Marketing is a highly complicated discussion in service sector (including health
organizations) which is different from manufacturing sector. However, marketing
16
success allows us to think and act systematically in relation to medical health care and
related services. Moreover, it allows us to express our ideas on medical health
services. Attraction of patient satisfaction encourages them to perform their medical
instructions properly and timely, and facilitates treatment and recovery. On the other
hand, organizations which consider customer satisfaction as a priority will succeed in
the competition market. One of the important factors of correct management is to
identify the reasons for patient tendency toward private hospitals. This study measures
these factors based on service marketing mixes. Study used a cross sectional
descriptive methodology. The study was conducted during 6 months in 2015. The
studied population included patients of private hospitals in Tehran. Random sampling
was used (n = 200). Data was collected by an author-made questionnaire for service
marketing factors. Reliability and validity of the questionnaire were confirmed. Data
analysis was done using factor analysis test in SPSS 20. The results showed that
constant attendance of physicians and nurses has the highest effect (0.707%) on
patient tendency toward private hospitals.

Lorenzo (2017) examines the marketing strategies implemented by the two biggest e-
commerce companies in Japan, namely Rakuten and Amazon.co.jp, in order to
address their international customers. Based on the main findings, both companies
propose an efficient and secure global shipping system and accommodate a variety of
international payment methods, although they partially ensure international payment
security. Rakuten is aimed at advertising Japanese products abroad, Amazon.co.jp
provides customers with an international return policy. Finally, the thesis reveals that
the customized nature of Rakuten‘s marketplace and a limited translation into English
of the website content in Amazon.co.jp pose challenges in terms of the
companies‘implementation of international marketing strategies.

Kubacki et al. (2017) drawn evidence from a series of five systematic literature
reviews, this umbrella review aims to understand the extent to which segmentation is
employed in social marketing interventions. Ninety-three unique social marketing
interventions were included in this umbrella review. We identified limited reported
use of segmentation in social marketing interventions, with only a handful of social
marketing interventions (16 %) reporting the use of segmentation. Further, the
majority of social marketing interventions reporting segmentation limited program

17
differences to one P: adaptation of promotional materials. Importantly, interventions
reporting using at least four of the social marketing benchmark criteria, at least two
out of four Ps, and adapting products rather than just promotional materials to cater to
different segments needs and wants were observed to deliver positive behavioural
outcomes.

Jackson, G., & Ahuja (2016) traces the journey of the marketing mix paradigm from
its inception through continuous debate and discussion over the years. It traces the
evolution of marketing mix components and the transformation of the marketing
paradigm as society, technology, media, information and money have changed. A
significant evolution of technology has changed the face of marketing. Sari (2017)
evaluate the implementation of marketing mix in online business company, whether
the online business adopt solely the traditional marketing mix model or the internet
factors is also included, since the business platform itself in on social media.
Descriptive research and content analysis using interview and observation were used
to analyse the marketing mix implementation in Galeristorey online business.
Evidence suggested that Galeristorey implemented few elements of the marketing mix
both the traditional marketing mix and the online marketing mix. The cause of the
limited use of marketing mix elements because of the barriers faced by Galeristorey
as an SME. Further researcher may widen the research sample and creates empirical
study on the marketing mix implementation of online business that used social media
as its main business platform.

Hisrich, R. D., & Ramadani (2017) explore the extent to which traditional marketing
theory and practice can be applied in small- and medium-sized enterprises (SMEs)
and consider how owner-managers perceive their own role in marketing within a
small business setting. A qualitative exploratory approach using semi-structured in-
depth interviews amongst owner-managers of SMEs in the UK. SME marketing is
effective in that it embraces some relevant concepts of traditional marketing, tailors
activities to match its customers and adds its own unique attribute of self-branding as
bestowed by the SME owner-manager.

Sunardi, S., Ibrahim, J. T., & Tain, A. (2016) reported that the changing of consumer
behavior is one of the attractive topic in consumer research. The research aims to
obtain an explanation about the effect of marketing mix (product, price, place and
18
promotion) towards purchase decision of Growing Up Milk (GUM) products on three
socio-economic classes (lower, middle and upper class) and to discover the
differences among those three classes. The study was conducted in Malang using
questionnaire and data processed by using Partial Least Squares as an alternative to
the Structural Equation Modeling. The results showed that one of the marketing mix
whis is product significantly affect purchase decision of GUM across the three
classes. Price had significant effect to the purchase decision only at lower and upper
class. Upper class tends to purchase GUM due to its quality instead of product design
and packaging. Price discount and lower price are not the main factors considered for
the upper class.

Even though many (probably most) people, would think that the music industry is
still/ngrowing, figures show that this sector is shrinking. However, the United States
and South/nKorea reported good trends on their revenues. Paper by Zhao (2016) aims
to provide a better/nunderstanding of the music industry of an emerging country
(South Korea) compared to/nthe leader in the industry (the United States). The four
elements of the marketing mix/nare used to explore their music industry and to
identify the differences and similarities/nbehind their successes. This study shows that
their promotion of the music industry is/nfairly similar, the place is similar, but the
distribution strategy is different, and their/nproduct and price are completely different.
The similarities found are mainly related to/nthe globalization through the internet. By
contrast, the differences are derived from/nhistorical, cultural and economic aspects.

Murshid et al. (2016) explore the mediation effect of physician perceived value (PPV)
on the relationship between marketing mix strategy (MMS) and PHS in the
pharmaceutical industry in Yemen.

Mahmoud (2016) commented that Green marketing concept emerged as a result of


organizations' interest in environment. These originations realized that their survival
and continuity lies in the coordination between its interest and the benefits of
consumer and society. Green marketing includes a broad range of activities such as
product modification, change in the production process, modification in advertising,
and change in packaging. This study aimed to investigate the relationship between
green marketing mix and purchase intention among Sudanese universities students in
Khartoum state in addition to examine the total image as mediator on the relationship
19
between green marketing mix and purchase intention. The study also aimed to
evaluate the moderating variable role represented in psychological variables on the
relationship between green marketing mix and total image. Data was gathered by
using convenience sampling, and 417 questionnaire distributed among a sample of
students in Sudanese universities in Khartoum state. Findings revealed that there are
four components of green marketing mix namely green product green price green
place and green promotion. The findings also provided some empirical support for the
theoretical framework and the results indicated that the components of green
marketing mix influencing purchase intention through the total image. The results of
the study demonstrated support for the effects of the four total image on consumers
purchase intention. This study also provided evidence to support the moderating effect
of the three dimensions of psychological variables namely (environmental knowledge,
environmental concern and environmental believes) on the relationship between green
marketing mix and total image while one dimension of psychological variables
(environmental awareness) was antecedent to corporate image. Based on the study's
findings discussions of the existing finding as well as the theoretical practical
implications and limitations of the study were provided.

Brand equity is the differential preference and response to marketing effort that a
product obtains because of its brand identification. Brand equity can be measured
using either consumer perceptions or sales. Consumer-based brand equity (CBBE)
measures what consumers think and feel about the brand, whereas sales-based brand
equity (SBBE) is the brand intercept in a choice or market share model. Article by
Datta et al. (2017) studies the extent to which CBBE manifests itself in SBBE and
marketing-mix response using ten years of IRI scanner and Brand Asset Valuator data
for 290 brands spanning 25 packaged good categories. The authors uncover a fairly
strong positive association of SBBE with three dimensions of CBBE—relevance,
esteem, and knowledge—but a slight negative correspondence with the fourth
dimension, energized differentiation. They also reveal new insights on the category
characteristics that moderate the CBBE–SBBE relationship and document a more
nuanced association of the CBBE dimensions with response to the major marketing-
mix variables than heretofore assumed. The authors discuss implications for academic
researchers who predict and test the impact of brand equity, for market researchers

20
who measure it, and for marketers who want to translate their brand equity into
marketplace success.
To use a marketing metaphor, the marketing mix and its Four Ps constitute a
production-oriented definition of marketing, and not a market oriented or customer-
oriented one. Moreover, although McCarthy(2006) recognizes the interactive nature
of the Ps, the model itself does not explicitly include any interactive elements.
Furthermore, it does not indicate the nature and scope of such interactions.

The terminology used to describe marketing mix elements and sub-elements varies
significantly between studies. Some of the most commonly referred to elements
include: (1) brand name, (2) advertising and promotion, (3) product, (4) packaging,
(5) pricing, (6) sales & distribution channels, (7) customer service and (8) the use of
the world-wide web. Standardization may also vary by element or sub-element of the
marketing mix. This makes it less meaningful to talk of the entire marketing mix as
either standardized or adapted (Vrontis 2003). A core element of any international
marketing strategy is to decide which marketing mix elements or sub-elements to
standardize and to what degree.

The marketing mix concept is one of the core concepts of marketing theory. However,
in recent years, the popular version of this concept McCarthy‘s (1964) 4Ps (product,
price, promotion and place) has increasingly come under attack with the result that
different marketing mixes have been put forward for different marketing contexts.
While numerous modifications to the 4Ps framework have been proposed (see for
example Kotler, 1986; Mindak and Fine, 1981; Nickels and Jolson, 1976;
Waterschoot and Bulte. 1992) the most concerted criticism has come from the
services marketing area. In particular Booms and Bitner‘s (1981) extension of the 4Ps
framework to include process, physical evidence and participants, has gained
widespread acceptance in the services marketing literature. The proliferation of
numerous ad hoc conceptualizations has undermined the concept of the marketing
mix and what is required is a more coherent approach. It is our contention that Booms
and Bitner‘s (1981) extended marketing mix for services should be extended to other
areas of marketing.

21
Borden claims to be the first to have used the term ―marketing mix‖ and that it was
was suggested to him by Culliton‘s (1948) description of a business executive as
―mixer of ingredients‖. However, Borden did not formally define the marketing mix;
to him it simply consisted of important elements or ingredients that make up a
marketing programme (Borden, 1965, p. 389). McCarthy (1964, p. 35) refined this
further and defined the marketing mix as a combination of all of the factors at a
marketing manger‘s command to satisfy the target market. More recently McCarthy
and Perreault (1987) have defined the marketing mix as the controllable variables that
an organization can co-ordinate to satisfy its target market.This definition (with minor
changes) is widely accepted as can be seen from Kotler and Armstrong‘s definition of
the marketing mix: as the set of controllable marketing variables that the firm blends
to produce the response it wants in the target market (1989, p. 45). The essence of the
marketing mix concept is, therefore, the idea of a set of controllable variables or a
―tool kit‖ (Shapiro, 1985) at the disposal of marketing management which can be used
to influence customers. The disagreement in the literature is over what these
controllable variables or tools are.

Borden, in his original marketing mix, had a set of 12 elements namely:

(1) product planning;


(2) pricing;
(3) branding;
(4) channels of distribution;
(5) personal selling;
(6) advertising;
(7) promotions;
(8) packaging;
(9) display;
(10) servicing;
(11) physical handling; and
(12) fact finding and analysis.

22
Figure 2.1: Marketing mix – 4Ps and 7Ps

Marketing mix is originating from the single P (price) of microeconomic theory


(Chong, 2003). McCarthy (1964) offered the ―marketing mix‖, often referred to as the
―4Ps‖, as a means of translating marketing planning into practice (Bennett, 1997).
Marketing mix is not a scientific theory, but merely a conceptual framework that
identifies thee principal decision making managers make in configuring their
offerings to suit consumers‘ needs. The tools can be used to develop both long-term
strategies and short-term tactical programmes (Palmer, 2004). The idea of the
marketing mix is the same idea as when mixing a cake. A baker will alter the
proportions of ingredients in a cake depending on the type of cake we wishes to bake.
The proportions in the marketing mix can be altered in the same way and differ from
the product to product (Hodder Education, n.d). The marketing mix management
paradigm has dominated marketing thought, research and practice (Grönroos, 1994),
and ―as a creator of differentiation‖ (Van Waterschoot, n.d) since it was introduced in
1940s. Kent (1986) refers to the 4Ps of the marketing mix as ―the holy quadruple…of
the marketing faith…written in tablets of stone‖. Marketing mix has been extremely

23
influential in informing the development of both marketing theory and practise
(Möller, 2006).

The main reasons the marketing mix is a powerful concept are It makes marketing
seem easy to handle, allows the separation of marketing from other activities of the
firm and the delegation of marketing tasks to specialists; and - The components of the
marketing mix can change a firm‘s competitive position (Grönroos, 1994). The
marketing mix concept also has two important benefits. First, it is an important tool
used to enable one to see that the marketing manager‘s job is, in a large part, a matter
of trading off the benefits of one‘s competitive strengths in the marketing mix against
the benefits of others. The second benefit of the marketing mix is that it helps to
reveal another dimension of the marketing manager‘s job. All managers have to
allocate available resources among various demands, and the marketing manager will
in turn allocate these available resources among the various competitive devices of the
marketing mix. In doing so, this will help to instil the marketing philosophy in the
organisation (Low and Tan, 1995). However, Möller (2006) highlighted that the
shortcomings of the 4Ps marketing mix framework, as the pillars of the traditional
marketing management have frequently become the target of intense criticism.

History and Implementation of Marketing Mix

Borden (1965) claims to be the first to have used the term ―marketing mix‖ and that it
was suggested to him by Culliton‘s (1948) description of a business executive as
―mixer of ingredients‖. An executive is ―a mixer of ingredients, who sometimes
follows a recipe as he goes along, sometimes adapts a recipe to the ingredients
immediately available, and sometimes experiments with or invents ingredients no one
else has tried‖ (Culliton, 1948). The early marketing concept in a similar way to the
notion of the marketing mix, based on the idea of action parameters presented in
1930s by Stackelberg (1939). Rasmussen (1955) then developed what became known
as parameter theory. He proposes that the four determinants of competition and sales
are price, quality, service and advertising. Mickwitz (1959) applies this theory to the
Product Life Cycle Concept.

24
2.2 Standardization of Marketing Mix

A wide range of studies have reported on the relative degree of standardization for
different elements of the overall marketing mix. While terminology and level of detail
vary between studies, some patterns are clearly distinguishable.

Pricing. A majority of studies indicate that pricing is the least, or one of the least,
standardized elements of the marketing mix (Boddewyn and Grosse 1995; Zou et al.
1997).

Brand and product. At the other end of the spectrum, brand and product
characteristics appear to be the most standardized marketing mix elements (Özsomer
et al. 1991; Rosenthal 1994;Yip 1997).

Packaging. Packaging tends to show medium to high levels of standardization


(Boddewyn and Grosse 1995; Rosenthal 1994; Sorenson and Wiechmann 1975; Yip
1997).

Advertising. Studies report mixed results regarding advertising, but the tendency is
for advertising to exhibit a medium level of standardization (Grosse and Zinn 1990;
Harris 1994; Özsomer et al. 1991).

Sales, distribution and promotions. The cumulative evidence indicates that sales
and distribution as well as promotions tend to show fairly low levels of
standardization but typically not as low as pricing (Boddewyn and Grosse 1995;
Chhabra 1996; Vrontis and Papasolomou 2005; Zinn and Grosse 1990; Zou et al.
1997).

Customer service. The findings for customer service report mixed results, with some
studies reporting medium levels of standardization (Boddewyn and Grosse 1995;
Özsomer et al. 1991), while other studies report higher (Shoham 1996) as well as
lower (Zou et al. 1997) levels of standardization.

25
Table 2.1: Contextual factors and influence on standardization of 4Ps

Stronger evidence Weaker evidence


• Industrial
• Essential products
products
• High-tech
• Luxury products
products
• Market
• Indirect entry modes
similarities
• Products in same • Parent and subsidiary have similar
More stage in PLC competitive positions
standardization • High degree of communication
between parent and subsidiary
• Foreign operations centralized in an
• Fully owned international division
subsidiaries • Strategy based on either (a) cost-based
competition or (b) product/innovation
oriented
• Centralization in decision-making
• Consumer
• Products used at home
products

Less • Culture bound products


• High local
standardization • Direct entry modes
competitive
• Local in-country production
intensity
• Customer-based strategy
• Size of local market
Inconclusive • Country of origin of parent company
• International experience of parent

26
Supporting Effective Implementation of Marketing Mix Standardization (I)

There is also limited support for a positive impact of a hybrid approach between
adaptation and standardization. In an economic modelling paper, Hadjinicola and
Kumar (2002) argued that performance is maximized by combining a strategy of
standardized and centralized core products, providing economies of scale, together
with customized pricing and product policies. Subramanian and Hewett (2004) found
that performance was optimized for products where a balance had been made between
standardization and adaptation during the design phase. The relationship was stronger
in instances where there was a high degree of co-operation between the parent and the
subsidiary.

Consumers use price as an important extrinsic cue and indicator of product quality or
benefits. High priced brands are often perceived to be of higher quality and less
vulnerable to competitive price cuts than low priced brands (Blattberg and
Winniewski 1989; Dodds, Monroe, and Grewal 1991; Milgrom and Roberts 1986;
Olson 1977). Therefore, price is positively related to perceived quality. Rao and
Monroe (1989) show that a positive relationship between price and perceived quality
has been supported through previous research. By increasing perceived quality, price
is related positively to brand equity.

No directional relationship between price and brand associations, because both low
and high prices can be equally strongly linked to the brand in memory for the benefits
that each brings to consumers. A low-priced product would give transaction utility
(i.e., paying less than the consumer‘s internal reference price), whereas a high-priced
product would give high-quality image or acquisition utility, leading to reduced
consumer risk (Thaler 1985). Either a low- or high-price strategy would help
consumers be equally aware of the product.

Consumers cannot forecast correct pointof- purchase prices, and forecasting errors
due to the gap between expected and observed prices negatively affect brand choice
decisions as well as perceived quality, which leads to a decrease in brand equity.
Also, price promotion campaigns do not last long enough to establish long-term brand
associations, which can be achieved by other efforts such as advertising and sales

27
management (Shimp 1997). Relying on sales promotion and sacrificing advertising
would reduce brand associations, which leads to decreasing brand equity.

Figure 2.2: Marketing mix and motive. Source: Kotler, Philip and Amstrong, Gary
(2006). Principles of Marketing. Pearson International Edition, 11th Edition

Table 2.2: Review of consumer marketing theory literature

Author Arguments Proposition

Kotler (1984) External and The Marketing Mix should


uncontrollable include customers,
environmental factors are environmental variables,
very important elements of and competitive variables.
the marketing strategy Two additional Ps to the 4
Programs. traditional ones: Political
power, and public opinion
formulation.

28
Ohmae (1982) No strategic elements are Three Cs define and shape
to be found in the the marketing strategy:
marketing mix. The Customers, competitors,
marketing strategy is and corporation.
defined by three factors.
Robins (1991) The 4Ps Marketing Mix is Four Cs expressing the
too much internally external orientation of a
oriented. Marketing Mix:
Customers, competitors,
capabilities, and company.
Vignalli and Davies Marketing planning will The MIXMAP technique
(1994) contribute to the allows the exact mapping
organisational success if it of marketing mix elements
is closely related to and variables, allowing the
strategy. The Marketing consistency between
Mix is limited to internal strategy and tactics.
and non-strategic issues.
Schultz 2001 Marketplaces today are End-consumer controls the
customer oriented. The 4Ps market Network systems
have less relevance today, should define the
they made sense the time orientation of a new
they were invented Marketing A new
Marketing mix must be
based on the Marketing
Triad Marketer, Employee
and Customer

29
Table 2.3: Review of relationship marketing literature

Author Arguments Proposition


Lauterborm (1990) The 4PsMarketing Mix is Four Cs replace the 4Ps,
product oriented The indicating the customer
successful marketing plan orientation: Customer
must place the customer in needs, convenience, cost
the centre of the marketing (customer‘s), and
planning communication.
Rozenberg and Czepiel Keeping existing Retention Marketing Mix:
(1992) customers is as important Product extras, reinforcing
as acquiring new ones. The promotions, sales-force
approach towards existing connections, specialised
customers must be active, distribution, and post-
based on a separate purchase communication
marketing mix for
customer retention.
Grönroos (1994) Several arguments Relationship marketing
underlying the limitations offers all the necessary
of the marketing mix as the ingredients to become the
Marketing paradigm: new Marketing Paradigm,
Obsolete, not integrative, while the Marketing Mix is
based on conditions not not suitable to support a
common to all markets, relation-based approach.
production oriented, not
interactive etc.
Goldsmith (1999) The trend towards The personalised
personalisation has Marketing Plan includes 4
resulted in an increasing more P‘s next to the
contribution of services to traditional Ps of the
the marketing of products.. Marketing Mix
Personalisation Personnel
Physical Assets Procedures

30
Patterson and Ward The traditional Marketing Four information-intensive
(2000) Mix therefore has a clearly strategies form the ―new
offensive character Cs‖ of Marketing:
because the strategies Communication
associated to the 4Ps tend Customisation
to be function-oriented and Collaboration Clairvoyance
output oriented. Well-
managed organisations
must shift the emphasis in
managing valued customer
relationships in order to
retain and increase their
customer base.
Healy et al. (2001) The weight of Marketing  The Relationship
Management is clearly Marketing
switching towards addresses the
relationship marketing as elements of
the future marketing Marketing
paradigm Management
identified by the
Marketing
Relationship
trilogy:
Relationships Neo-
Relationship
Marketing
Networks

31
Table 2.4 Review of services marketing literature

Author Arguments Proposition


Booms and Recognising the special character of  The Services
Bitner (1981) the services as products, they Marketing Mix
demonstrated the importance of includes next to the
Environmental factors (Physical 4Ps three more P‘s:
Evidence) influencing the quality Participants
perception. They included the Physical Evidence
Participants (personnel and Process
customers) and the Process of
service delivery as the additional
Marketing Mix factors.
Cowell (1984) Three aspects justifying the revision Adopts the framework
of the original Marketing mix proposed by Booms and
framework: � the original mix was Bitner
developed for manufacturing
companies � empirical evidence
suggesting that marketing
practitioners in the service sector
find the marketing mix not being
inclusive enough for their needs
Brunner (1989) The 4P Marketing mix elements Concept Mix, Cost Mix,
must be extended to include more Channels Mix,
factors affecting the services Communication Mix
marketing thus becoming mixes
themselves
Ruston and The unique characteristics of the New instruments and
Carson (1989) services - intangibility, concepts must be developed
inseparability, perishability and to explain and manage the
variability - make the control of the services intangibility
marketing process, using the
generalised tools of marketing,
inadequate

32
Fryar (1991) Segmentation and differentiation is  The Marketing of
the basis of successful positioning of services requires:
services. Furthermore the personal Differentiation
relationship with the customer and based on
the quality of the service are segmentation and
important elements of the services positioning
Marketing Customer contact
Unique vision on
quality
Heuvel (1993) Interaction between the one The Services Marketing
delivering the service and the Mix: Personnel Product
customer is very important and has Place Price Promotion
direct effect on the service quality
and quality perception. The Product
element can be better demonstrated
as having two components, the
primary and secondary service
elements as well as the process
Doyle (1994) While recognising that the content Service Marketing Mix:
of the 4Ps in the service sector is Product Price
somehow different from that of the Communication
tangibles he does accept the 4Ps as Distribution
the elements of the services
marketing mix. He identifies special
difficulties in Promotion and Place
preferring to replace them by the
terms Communication and
Distribution
Melewar and The Corporate Visual Identity A new P must be added to
Saunders (2000) System (CVIS) is the basis of the the 4Ps of the Marketing
corporate differentiation and the Mix (and the 3Ps of the
core of the company‘s visual Services Mix) namely the
identity. Publications

33
Grove et al. Services Marketing can be compared Four strategic theatrical
(2000) to a theatrical production. How the elements constitute the
service is performed is as important Services Experience:
as what is performed. Critical factor Actors, Audience, Setting,
is therefore the customer experience. and Performance These
The traditional Marketing Mix does elements must be added to
not adequately capture the special the extended services
circumstances that are present when Marketing Mix model of
marketing a service product Booms en Bitner

2.3 Marketing Strategies for FMCG sector

"The world of fast moving consumer goods is possibly the hardest, cruelest and
disciplined industries all them all: The sheer science, and extraordinary thought, the
investment in consumer and competitor analysis for truly focused market orientation,
the value validity and constancy of marketing knowledge determines market share,
profitability and survival.

Belz & Schmidt‐Riediger (2010) paper investigate characteristics and drivers of


sustainability marketing strategies. Based on an empirical study in the food industry,
we identify four sustainability marketing strategy types with distinctive characteristics
(performers, followers, indecisives and passives). Consumers are one of the main
drivers of sustainability marketing strategies.

2.4 Criticism on Marketing Mix Model

Managing the marketing mix makes marketing seem easy to handle and organize.
Marketing is separated from other activities of the firm and delegated to specialists
who take care of the analysis, planning and implementation of various marketing
tasks, such as market analysis, marketing planning, advertising, sales promotion,
sales, pricing, distribution and product packaging. Marketing departments are created
to take responsibility for the marketing function of the firm, sometimes together with

34
outside specialists on, for example, market analysis and advertising. Both in the
marketing literature and in everyday marketing vocabulary the expression ―marketing
department‖, and organization unit, is used as a synonym for marketing function,
which is the process of taking care of the fulfilment of customer needs and desires.
However, the organizational approach inherent in the marketing mix management
paradigm is not very useful either.

2.5 Customer Satisfaction

There is growing managerial interest in customer satisfaction as a means of evaluating


quality. High customer satisfaction ratings are widely believed to be the best indicator
of a company's future profits (Kotler 1991, p. 19). Firms increasingly use customer
satisfaction as a criterion for diagnosing product or service performance and often tie
customer satisfaction ratings to both executive and employee compensation.'
However, providing incentives to maximize customer satisfaction may actually be
detrimental to the firm. To encourage actions which will lead to an optimal level of
satisfaction, it is necessary to understand the link between the antecedents of
satisfaction and satisfaction's behavioral and economic consequences.

Figure 2.3: Satisfaction Framework

35
Satisfaction can be broadly characterized as a postpurchase evaluation of product
quality given prepurchase expectations (Kotler 1991). Yi (1991) provides an excellent
review of customer satisfaction and the main antecedents identified by consumer
research: expectations, perceived quality, and disconfirmation. Beginning with Oliver
(1977, 1980), research concerned with the antecedents of satisfaction focuses
primarily on the expectancy- disconfirmation paradigm illustrated in Figure la. First,
buyers form expectations of the specific product or service prior to purchase. Second,
consumption reveals a perceived quality level which is influenced by expectations if
the difference between actual quality and expectations is perceived as being small.

Customer evaluation measures should reflect the type of exchange that is being
evaluated, i.e. transactional or relational. However, the constructs are highly
correlated and sometimes difficult to separate in transactional interactions (Bitner and
Hubbert, 1994), but even more so from a relationship perspective (Dabholkar, 1995).
In long-term relationships perceived quality and satisfaction are likely to merge into
an overall evaluation of relationship satisfaction.

Customer loyalty is defined as ―a deeply held commitment to rebuy or repatronize a


preferred product/service consistently in the future, thereby causing repetitive same-
brand or same brand-set purchasing, despite situational influences and marketing
efforts having the potential to cause switching behaviour.‖ (Oliver, 1999, p. 34).

As illustrated in the definition above, loyalty has both an attitudinal and behavioural
dimension (Dick and Basu, 1994). Customer satisfaction and loyalty are highly
correlated (Silvestro and Cross, 2000), but form two distinct constructs (Oliver,
1999). Customer satisfaction with a bank relationship is a good basis for loyalty
(Bloemer et al., 1998) although it does not guarantee it, because even satisfied
customers switch banks (Nordman, 2004). One important reason for switching is
pricing (Colgate and Hedge, 2001;). Hence, banks have launched customer loyalty
programmes that provide economic incentives. Although the effectiveness of loyalty
programmes has been questioned, research has shown that they have a significant,
positive impact on customer retention, service usage, and/or share of customer
purchases (e.g. Verhoef, 2003).

36
Chapter -3
RESEARCH METHODOLOGY

3.1. Relevance of Study and Problem Identification

3.2. Research Approach

3.3. Research Design

3.4 Scale Development

3.5 Data Analysis Technique

3.6 Limitation of Study

37
This chapter focuses on the processes, techniques and tools applied to achieve the
defined objectives of the study undertaken. In fact, the research philosophy is also
called scientific ideal.

3.1. Relevance of Study and Problem


Identification
Marketing involves a number of activities. To begin with, an organisation may decide
on its target group of customers to be served. Once the target group is decided, the
product is to be placed in the market by providing the appropriate product, price,
distribution and promotional efforts. These are to be combined or mixed in an
appropriate proportion so as to achieve the marketing goal.

A marketing strategy achieves growth by developing new products for completely


new markets. As such, it is inherently more risky than product development because
by definition the organization has little or no experience of the new market. In
addition, the new skills needed both in terms of marketing and operations often
require substantial investment. This is usually achieved by acquiring an organization
already operating in the new market.

For an organization to adopt such a strategy it must have a clear idea of what it
expects to gain in terms of its growth. It also needs to make an honest assessment of
the risks involved. Marketing often fails because organizations that attempt it are
doing so because they have uncompetitive products in shrinking markets. However,
for those organizations that find the right balance between risk and reward, a
marketing strategy of diversification can be highly rewarding.

The review of literature suggests that most of the studies have examined the benefits
of marketing mix strategies from the company financial statements and secondary
information sources, but there is a lack of studies that are based on primary data or
consumer survey to know consumer perspective on company‘s marketing strategies.
A present research will provide empirical research on the consumer perspective on
marketing strategies. Moreover, very few researchers have studied in Rajasthan. The
study aims to analyse marketing strategies in Indian FMCG companies in Rajasthan

38
state. The present study focuses on the consumer perspective towards company
marketing.

PRIMARY OBJECTIVE: Measuring impact of marketing mix strategy on


consumers- a case study of consumers of Rajasthan state

SECONDARY OBJECTIVE:

 To study current status of business operation of FMCG companies


 To study Influence of Product based Marketing Strategy on Consumer
Behavior
 To study Influence of Price based Marketing Strategy on Consumer Behavior
 To study Influence of Place based Marketing Strategy on Consumer Behavior
 To study Influence of Promotion based Marketing Strategy on Consumer
Behavior
 To analyze the satisfaction with Company marketing strategies of FMCG
products.
 To analyze the difference in consumer opinion across demographic variables
like gender, age, occupation, income etc.

SIGNIFICANCE OF RESEARCH STUDY

1. Analysing Consumer behavior for FMCG


2. Analysing fast moving consumer goods (FMCG) market.
3. Finding out the importance of the consumer relationship and study of
consumer purchase in the industry.

EXPECTED CONTRIBUTION FROM THE STUDY

1. The study contributes to the growing literature on consumer opinion, on marketing


and more specifically on business groups in more ways than one.

2. The study helps us understand the patterns of marketing strategies pursued by


business groups in emerging markets.

39
3. The study is also capable to contribute to future research scholars in the same area
or related area through different views of consumer opinion on marketing mix
strategy.

4. This study will also be helpful for the academicians for the academic interest and
upliftment of their knowledge.

5. This study can definitely contribute to larger studies concerned with the
enhancement of the domestic market for fast moving consumer goods.

3.2. Research Approach

This chapter provides an insight on research methodology used in study. It involves


the objectives behind conducting the research and the importance of study. The scope
of research and the limitations are also mentioned in this chapter. It describes the
basic methodological aspects of the present study, the sources used for the primary
and secondary data collection and the details pertaining to the relevant statistical tools
used for the study

Research methodology is a term that basically means the science of how research is
done scientifically. It is a way to systematically and logically solve a problem, help us
understand the process, not just the product of research and analyzes methods in
addition to the information obtained by them. In Research, we study the various steps
that are generally adopted by a researcher in studying his research problem along with
the logic behind them.

40
Figure 3.1: Steps of Research Methodology

The following research questions are designed to cumulatively answer the larger
question: What is consumer opinion towards company diversification Policies.
Further research questions are as follows:

 To study current status of business operation of FMCG companies


 To study Influence of Product based Marketing Strategy on Consumer
Behavior
 To study Influence of Price based Marketing Strategy on Consumer Behavior
 To study Influence of Place based Marketing Strategy on Consumer Behavior

41

 To study Influence of Promotion based Marketing Strategy on Consumer
Behavior
 To analyze the satisfaction with Company marketing strategies of FMCG
products.
 To analyze the difference in consumer opinion across demographic variables
like gender, age, occupation, income etc.

RQ1: What is the level of awareness among consumers for company marketing
strategy?
RQ2: How consumers perceive towards different factors influencing marketing mix
decision?
RQ3: What is the impact of product, price, place and promotion based Marketing
Strategy on Consumer Behavior
RQ4: What is the difference in consumer‘s opinion on the diversification across
demographic variables like gender, age, occupation, income?

Objective of the study

The prime objective of any research can be summarized as to discover new fact and
ideas; Verify and test important facts; Analyze an event or process or phenomenon to
identify the cause and effect relationship; Develop new scientific tools, concepts,
theories to solve and understand scientific and non-scientific problems. The aim of the
primary research is to conduct a cross-sectional study to examine the governing
factors that determine the consumer opinion regarding diversification strategies.

Information from Consumer

With the above objectives in mind the following information was gathered from
respondents.

Information from Consumers


Demographics

42
- Age
- Gender
- Occupation
- Education
- Location
- Family income

Most frequently purchases Fast Moving Consumer Goods

Frequency of purchase of FMCG products

Person who influence purchase

Product line of prefer the most

Source of information about products/offers

Preferred Location of purchase

Main factors which influence the purchasing of FMCG products

Most influencing Promotion Method to buy Product

Rate the FMCG Companies on Price, Product, Availability and Promotion

Customer perception towards product based marketing strategies

Customer perception towards price based marketing strategies

Customer perception towards place based marketing strategies

Customer perception towards promotion based marketing strategies

Hypothesis development

The present study tested the effects of marketing mix strategies on consumer opinion
and purchase behavior. The following hypotheses have been formulated to fulfill
above mentioned objectives.

43
Null There is a negative perception of customer towards Product
related Marketing Strategy of FMCG companies
H1
Alternate There is a Positive perception of customer towards Product
related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Price related
Marketing Strategy of FMCG companies
H2
Alternate There is a Positive perception of customer towards Price related
Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Place
related Marketing Strategy of FMCG companies
H3
Alternate There is a Positive perception of customer towards Place related
Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Promotion
related Marketing Strategy of FMCG companies
H4
Alternate There is a Positive perception of customer towards Promotion
related Marketing Strategy of FMCG companies

3.3. Research Design

It is necessary for the researcher to know not only the research techniques but also the
methodology. Researchers not only need to know how to develop certain indices or
tests, how to calculate the mean, the median, the mode or the standard deviation or
chi-square, how to apply particular research techniques, but they also need to know
which of these methods or techniques are relevant and which are not.

Researchers also need to understand the assumptions underlying various techniques


and they need to know the criteria by which they can decide that certain techniques
and procedures will be applicable to certain problems and others will not. All this
means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem

44
To the best of researcher knowledge, there are very few other studies in the context of
the India, which attempt to capture consumer perspective on diversified products. The
present study followed both exploratory and descriptive research approach.
Exploratory research is carried out via review of existing literatures in formation of
Hypothesis. Further descriptive research approach is used to test the hypotheses and
present conclusions from data analysis. The present study uses quantitative approach
of problem solving. This includes a quantitative, descriptive, and comparative
research with cross-sectional survey of data from consumers of FMCG. Survey data is
employed to estimate population characteristics and to explore the significance of
predictor variables. The research that will be carried on Consumer Behaviour towards
Products is Descriptive in Nature. It is a fact finding investigation with adequate
interpretation.

Quantitative data analysis used SPSS 19 and consisted of two primary stages. First,
descriptive statistics were calculated on all variables. Means and standard deviations
were calculated for variables on a ratio or interval scale. Frequencies and percentages
were provided for nominal or ordinal scaled variables. The second stage of the
quantitative analyses presented inferential statistics used to test the research
hypotheses.

3.3.1 Data Collection methods

This research work is in the form of empirical and exploratory study for which the
information was gathered from the Primary and Secondary sources.

Primary Data: For primary data, a well fabricated questionnaire has been
prepared. This was filled by the respondents who have purchase any FMCG
product.

1. Questionnaire

The questionnaire is framed on the basis of a pilot study through which initial
fillers and trends will be available. This may enable the researcher to incorporate
worthwhile queries and eliminate the irrelevant.

Finalization of Questionnaire

45
The researcher shall in personal, visit the respondents and persuade them to get
filled in the questionnaire to avoid the drawback of the questionnaire technique.

 Secondary Data: Secondary data will be collected by:


1. Print media
a.) Various studies already being conducted in this area
b.) Books
c.) Magazines
d.) Journals
e.) Newspapers
f.) Periodicals
g.) Reports
2. Electronic media
a.) E-Books
b.) Online journals
c.) Websites

Data Collection period


Surveys were distributed directly to users over a two month period during April 2017
and June 2017.

Questionnaire Design

The questionnaire was structured into four main substantive sections. In the first
section, respondents were asked about their demographic profile, which included
gender, age, occupation, and family income information. The second section includes
questions asking about behavioural opinion towards product purchase, frequency of
purchase, influencer in purchase decision, product line preference, preferred location
of purchase, most influential factors in product purchase. The third section captured
consumer opinion towards product, price, promotion and place related marketing
strategies of FMCG companies.

46
Response Rate

The total number of respondents contacted was 550, but due to incomplete
responses and other faults the final responses subjected to data analysis are 500.
In order to reduce the number of un-returned completed questionnaires, on the
spot completion of questionnaires was demanded. The high response rate of 90
percent was the effect of the constant direct contact and reminders between
respondents and researcher.

3.3.2 Scope of Study

Geographical Scope
The study is based on the data collected from some selected locations in
Rajathan.

Operational scope
The purpose of this research is not to construct a fresh theory, but to investigate
the research questions and fulfill research objectives based on empirical
research and secondary data. Furthermore, in this thesis, we will generate
hypotheses from theories and then, we will use empirical research data to test
the hypotheses. The area of research is the analysis of consumer‘s opinion on
the marketing mix strategies of FMCG companies.

3.3.3 Sampling

A sampling design is a definite plan for obtaining a sample from the sampling frame.
It refers to the technique or the procedure the researcher would adopt in selecting
some sampling units. Sampling design incorporates population and sampling unit,
determining the sampling techniques and sampling size.

47
Universe

The universe in research study is finite. In finite universe, the number of items is
certain. In this research study, the universe is Rajasthan.

Sampling unit

Customer of FMCG products.

Sample size

An optimum sample is one, which is appropriate representative and within the reach
of the researcher. In the present research work, the sample size will be of 500
respondents and will be chosen by utilizing Convenience Sampling.

Sampling Technique:

In present research, the respondents were selected using convenience sampling (using a
cross-sectional design) from different demographics profiles. The sample of the present
study, represented the population with respect to demographic dimensions i.e. gender,
age, occupation and income. Care was taken to make the sample representative of the
actual population.

3.4 Scale Development

In present study, demographic variables like age, gender, occupation, income group
were measured as nominal variables. While one of the objectives of this was to
understand the sample characteristics and other is to conduct analysis in the
demographic context. Other scale items used to measure consumer opinion.

48
Table 3.1: Scale item description

DIMENSIONS SCALE ITEM


Product Attractive Packaging size
Product availability & credibility
Product attributes like Fragrance, healthy, and composition
Personal experience from usage
Overall, I am satisfied with product strategies
Price Pricing policy of FMCG companies focuses on
affordability
Customer perceive quality from price
Companies provide attractive offers
Companies give attractive seasonal and festival discounts
Overall, I am satisfied with product pricing strategies
Place FMCG products are easily available to your near stores
Companies ensure timely delivery of products to
customers.
General Physical Distribution Services are good.
Companies are responsible for their distribution.
Overall, I am satisfied with product placement strategies.
Promotion FMCG advertisements should reach to the audience in time
Advertisements are must for FMCG products and
awareness among consumers
Endorsements with celebrity impact buying
All type of FMCG products advertisements have direct
impact on the cost of the products
FMCG advertiser cheats in their advertising.
The FMCG products advertisement should be easily
understandable.
Overall, I am satisfied with promotion strategies.

A questionnaire was developed on Likert scale on attributes explaining consumers‘


opinion towards diversification.

49
3.5 Data Analysis Technique

Statistical Analysis

In the process of analysis, hypothesis testing will result in either accepting the
hypothesis or in rejecting it. In present study, the hypotheses were tested through the
use of one or more of such tests, depending upon the nature and object of research
inquiry. The criterion that is used for accepting or rejecting a null hypothesis is called
significance of p-value.

3.6 Limitation of Research

Due to lack of time and resources there are some limitations which are given below:
 Small sample size
 Limited Geographical scope
 The researcher will not be able to collect full information regarding the
study due to the lack of time.
 The researcher will not be able to approach all the respondents due to
physical constants.
 Sometimes respondents would not show proper interest while answering
the questions.
 Lack of consumer knowledge and experience in every product that‘s why
it becomes difficult to understand each and everything during discussion.

Despite of all the limitations the researcher has tried its best to collect the data that
sufficient enough to make this study.

50
Chapter -4
DATA ANALYSIS

4.1 Statistical test used

4.2 Sample Profile

4.3 Analysis of Consumer Behaviour

4.4 Perception towards Marketing Strategies

4.5 Impact of demographics

51
The crux of any research exercise is the analysis of the collected data and the
inferences that are drawn on the basis of the interpretation of the analyzed data. This
chapter presents the core of research. This chapter provides the empirical findings
from the collected data. Chapter is very well classified for systematic presentation of
collected data and their statistical analysis.

4.1 Statistical test used

4.1.1 Descriptive Statistics

Descriptive statistics is the term given to the analysis of data that helps describe, show
or summarize data in a meaningful way such that, for example, patterns might emerge
from the data. Descriptive statistics do not, however, allow us to make conclusions
beyond the data we have analysed or reach conclusions regarding any hypotheses we
might have made. They are simply a way to describe our data.

4.1.2 Inferential Statistics

Inferential statistics are techniques that allow us to use these samples to make
generalizations about the populations from which the samples were drawn. It is,
therefore, important that the sample accurately represents the population. Inferential
statistics use a random sample of data taken from a population to describe and make
inferences about the population.

In present research, both descriptive and inferential statistics are used for better
interpretation of data collected.

52
4.2 Sample Profile

Sample Demographics

Table 4.1: Respondent Demographics- summary

Count Percentage
Age 20-30 yrs 80 16%
31-40 yrs 225 45%
41-50 yrs 125 25%
>50 yrs 70 14%
Gender Male 270 54%
Female 230 46%
Occupation Business 235 47%
Employed 265 53%
Location /City Urban 305 61%
Rural 85 17%
Semi-urban 110 22%
Annual Income <1 LPA 90 18%
1-5 LPA 205 41%
5-10 LPA 100 20%
>10 LPA 105 21%

(a) Age

To identify the age wise classification of the respondents, data were tabulated in table
and diagram as under.

Table 4.2: Age distribution

Age Count Percentage


20-30 yrs 80 16%
31-40 yrs 225 45%
41-50 yrs 125 25%
>50 yrs 70 14%

53
50%
45%
45% Age Distribution
40%

35%

30%
25%
25%

20%
16%
14%
15%

10%

5%

0%
20-30 yrs 31-40 yrs 41-50 yrs >50 yrs

Figure 4.1: Age wise distribution

From the above table and graph it can be concluded that majority of respondent are
from 31-40 years of age. 25 percent of consumers are between age of 41-50 years of
age. 16 percent of consumers belong to age bracket of 20-30 year. A small proportion
belongs to higher age group of greater than 50 years. Hence from the above table
depiction, it is clear that our sample constitute of a wider variety and range of diverse
demographic profile of respondents.

(b) Gender

To identify the gender wise classification of the respondents, data were tabulated in
table and diagram as under.

Table 4.3: Gender distribution

Gender Count Percentage


Male 270 54%
Female 230 46%

54
56%

54% Gender Distribution


54%

52%

50%

48%

46%
46%

44%

42%
Male Female

Figure 4.2: Gender distribution

The gender wise analysis revealed that the survey included 500 consumers. Out of the
total respondents, about 54 percent of respondents are male and 46 percent were
female. Since the survey was conducted, this distribution shows a balance in
distribution of males and female. This classification was important since the gender-
wise difference regarding the opinion of were analyzed later.

(c) Occupation

To identify the occupation wise classification of the respondents, data were tabulated
in table and diagram as under.

Table 4.4: Occupation wise distribution

Occupation Count Percentage


Business 235 47%
Employed 265 53%

55
54%
53%
53% Occupation
52%

51%

50%

49%

48%
47%
47%

46%

45%

44%
Business Employed

Figure 4.3: Occupation wise distribution

The occupational level wise analysis were shown in table revealed the occupational
level of the respondents selected for the survey. Out of the total consumers, about 47
percent belong to business class and 53% is related to employed category. It showed
that there is a balance in sample distribution with respect to occupation. This
classification was important since the occupational wise difference regarding the
consumer‘s opinion were analysed.

(d) Location

To identify the location wise classification of the respondents, data were tabulated in
table and diagram as under.

Table 4.4: Location wise distribution

Location Count Percentage


Urban 305 61%
Rural 85 17%
Semi-urban 110 22%

56
70%
61% Location
60%

50%

40%

30%
22%
20% 17%

10%

0%
Urban Rural Semi-urban

Figure 4.3: Location wise distribution

It can be concluded from the above table and graph that majority of respondent belong
to urban location (61 percent). However, sample also includes respondents from
Semi-urban (22 percent) and Rural sector (17 percent). Hence the result of the
consumer opinion includes perspective of all categories of consumers living in
different socio-demographic environment.

(e) Income

To identify the income level wise classification of the respondents, data were
tabulated in table and diagram as under.

Table 4.5: Income wise distribution

Income Count Percentage


<1 LPA 90 18%
1-5 LPA 205 41%
5-10 LPA 100 20%
>10 LPA 105 21%

57
45%

41%
Income distribution
40%

35%

30%

25%

21%
20%
20%
18%

15%

10%

5%

0%
<1 LPA 1-5 LPA 5-10 LPA >10 LPA

Figure 4.4: Income wise distribution

From the above graph and table it can be concluded that there are many lower middle
to low income group of respondents are selected in the sample. About 20 percent of
consumers belong to 5-10 LPA group and only 21 percent are in greater than 10 LPA
class. Hence our results of the study reflect the consumer opinion of all lower to
higher middle class consumers. These groups are the major consumer base of the
brands for FMCG in Rajasthan.

58
4.3 Analysis of Consumer Behavior

(a) Most frequently purchases Fast Moving Consumer Goods (FMCG) product.

Table 4.6: Most frequently purchases FMCG

Product Rank
Tooth paste 3
Bath soap & shampoos 2
Washing soaps & Detergents 1
Food products 4
Beverages 5

Beverages

Food products

Tooth paste

Bath soap & shampoos

Washing soaps & Detergents

0 1 2 3 4 5 6

Figure 4.5: Most frequently purchases FMCG

From the above table and graph, it can be concluded that most frequently purchased
FMCG product include washing soap and detergent and bath soap and shampoos.
Other popular and most purchased items include tooth paste, food product and
beverages.

59
(b) Frequency of purchase of FMCG products

Table 4.7: Frequency of purchase of FMCG products

Frequency Rank
Daily 1
Weekly 2
Monthly 3
Occasionally 4

From the above table and graph, it can be concluded that most of the FMCG products
are purchased on the daily basis. Some respondent agreed to purchase weekly for
these FMGC items. Most of the less frequently products and high value items are
purchased monthly and on occasions.

4.5

3.5

2.5

1.5

0.5

0
Daily Weekly Monthly Occasionally
Series1 1 2 3 4

Figure 4.6: Frequency of purchase of FMCG products

60
(c) Person who influence most in Purchase decision

Table 4.8 : Person who influence most in Purchase decision

Influencer Rank
Friends 2
Family 1
Retailers/Shops 3
Others 4

From the above table and graph, it can be concluded that most influential person in
the making the purchase decision are the family members followed by friends.
Retailers and shop keepers also play an important role in influencing purchase
decisions.

4.5

3.5

2.5

2 Rank

1.5

0.5

0
Friends Family Retailers/Shops Others
Rank 2 1 3 4

Figure 4.7: Person who influence most in Purchase decision

61
(d) Preferred product line

Table 4.9: Preferred product line

Product Rank
Cigarettes 9
Safety Matches & Incense Sticks 8
FMCG 1
Hotels 7
Agri-business 10
Paperboards Papers & Packaging 4
Personal Care 2
Information Technology 6
Life Retailing 5
Education & Stationary 3

From the above table and graph, it can be concluded that most preferred product line
is FMCG for any diversified company. Consumers also like personal care products
and Stationary segment of. Other products include paperboards and packing material.
Life retailing and IT sector in also popular among consumers. Less preferred segment
include Hotel segment, cigarettes and agri-business.

12

10

0
Paperb
Safety
Educati oards Informa
Life Matche Agri-
Persona on & Papers tion Cigarett
FMCG Retailin Hotels s& busines
l Care Stationa & Technol es
g Incense s
ry Packagi ogy
Sticks
ng
Rank 1 2 3 4 5 6 7 8 9 10

Figure 4.8: Preferred product line

62
(e) Source of information about products/offers

Table 4.10: Source of information

Source of information Rank


T.V 1
Radio 3
News paper 2
Others 4

4.5

4
4

3.5

3
3

2.5

2
2

1.5

1
1

0.5

0
T.V Radio News paper Others

Figure 4.9: Source of Information

From the above table it can be concluded that TV and News paper are the most
preferred sources of information about the product for consumers of FMCG product.

63
(f) Preferred Location of purchase

Table 4.11: Preferred Location of purchase

Preferred Location of purchase Rank


Online 3
Shopping Mall 1
Kirana Store 2
Others 4

Rank
4.5

4
4

3.5

3
3

2.5

2 Rank
2

1.5

1
1

0.5

0
Online Shopping Mall Kirana Store Others

Figure 4.10: Preferred Location of purchase

Consumers prefer to buy from shopping mall. Other favorite location includes online
shopping sites.

64
(g) Factors influence purchase decision

Table 4.12: Factors influence purchase decision

Preferred Location of purchase Rank

Price 1
Quality 2
Publicity 3
Sales promotion 4
Attractive packaging 5
Others 6

Rank
7

6
6

5
5

4
4

3
3

2
2

1
1

0
Price Quality Publicity Sales Attractive Others
promotion packaging

Figure 4.11: Factors influence purchase decision

From the above table it can be concluded that for consumers price is most deciding
factor for selection of product whereas, consumer also give importance to quality of

65
product. Other important factors include publicity, and sales promotion schemes by
companies to influence purchase decision along with attractive packaging.

(h) Influencing Promotion Method

Table 4.13: Influencing Promotion Method

Influencing Promotion Method Rank


Advertising 1
Sales promotion 2
Personal selling 5
Publicity 3
Combination of all these 4

5
5

4
4

3
3
Rank
2
2

1
1

0
Advertising Sales Personal selling Publicity Combination of
promotion all these

Figure 4.12: Influencing Promotion Method

From the above table it can be concluded that consumers are most influenced by
company advertising and sales promotion efforts. Many companies implement
combination strategy in marketing products along with public relation activities.

66
4.4 Perception towards Marketing Strategies

Table below describes the reliability analysis of the scale corresponds to each
variable. The Cronbach‘s alpha covering the overall responses exceeded the reliability
estimates (>= 0.70) recommended by Nunnally (1967), which is considered a good
sign of reliability of the questionnaire. This similarity ascertained transferability
scales adopted in the study.

Table 4.15: Scale item description

DIMENSIONS SCALE ITEM VARIALE


NAME
Product Attractive Packaging size Prd_1
Product availability & credibility Prd_2
Product attributes like Fragrance, healthy, Prd_3
and composition
Personal experience from usage Prd_4
Overall, I am satisfied with product Product
strategies
Price Pricing policy of FMCG companies Prc_1
focuses on affordability
Customer perceive quality from price Prc_2
Companies provide attractive offers Prc_3
Companies give attractive seasonal and Prc_4
festival discounts
Overall, I am satisfied with product pricing Price
strategies
Place FMCG products are easily available to Plc_1
your near stores
Companies ensure timely delivery of Plc_2
products to customers.
General Physical Distribution Services are Plc_3
good.

67
Companies are responsible for their Plc_4
distribution.
Overall, I am satisfied with product Place
placement strategies.
Promotion FMCG advertisements should reach to the Prm_1
audience in time
Advertisements are must for FMCG Prm_2
products and awareness among consumers
Endorsements with celebrity impact Prm_3
buying
All type of FMCG products Prm_4
advertisements have direct impact on the
cost of the products
FMCG advertiser cheats in their Prm_5
advertising.
The FMCG products advertisement should Prm_6
be easily understandable.
Overall, I am satisfied with promotion Promotion
strategies.

Scale Reliability Statistics

(a) Overall

Case Processing Summary


N %
Cases Valid 500 100.0
Excludeda 0 .0
Total 500 100.0

68
Case Processing Summary
N %
Cases Valid 500 100.0
Excludeda 0 .0
Total 500 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.931 22
Item-Total Statistics
Corrected Item- Cronbach's
Scale Mean if Scale Variance Total Alpha if Item
Item Deleted if Item Deleted Correlation Deleted
Product 68.2640 305.233 .043 .938
Prd_1 68.3120 303.570 .082 .937
Prd_2 68.0240 307.366 -.010 .939
Prd_3 68.0800 303.489 .076 .937
Prd_4 68.4840 304.222 .052 .938
Price 68.4840 276.403 .800 .925
Prc_1 68.3840 273.764 .852 .924
Prc_2 68.3140 279.126 .717 .926
Prc_3 68.4540 274.405 .848 .924
Prc_4 68.3940 282.043 .709 .927
Place 68.5040 273.818 .849 .924
Plc_1 68.4660 274.334 .799 .925
Plc_2 68.3720 275.392 .739 .926
Plc_3 68.4000 280.072 .687 .927
Plc_4 68.3740 274.804 .840 .924
Promotion 68.5140 272.214 .856 .924
Prm_1 68.4800 271.152 .835 .924
Prm_2 68.4480 275.538 .673 .927

69
Prm_3 68.3160 277.058 .735 .926
Prm_4 68.3320 273.669 .826 .924
Prm_5 68.5000 271.854 .825 .924
Prm_6 68.4140 277.694 .626 .928

(b) Product

Case Processing Summary


N %
Cases Valid 500 100.0
Excludeda 0 .0
Total 500 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.929 5
Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
Product 13.6360 21.154 .882 .899
Prd_1 13.6840 22.285 .760 .922
Prd_2 13.3960 21.125 .821 .911
Prd_3 13.4520 21.435 .794 .916
Prd_4 13.8560 20.665 .809 .913

(c) Price
Case Processing Summary
N %
Cases Valid 500 100.0

70
Excludeda 0 .0
Total 500 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.951 5
Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
Price 12.9900 17.906 .875 .938
Prc_1 12.8900 17.473 .904 .933
Prc_2 12.8200 17.943 .857 .941
Prc_3 12.9600 17.533 .913 .931
Prc_4 12.9000 19.369 .780 .954

(d) Place
Case Processing Summary
N %
Cases Valid 500 100.0
Excludeda 0 .0
Total 500 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.929 5
Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted

71
Place 12.9240 18.607 .843 .907
Plc_1 12.8860 18.302 .834 .908
Plc_2 12.7920 18.241 .797 .916
Plc_3 12.8200 19.382 .758 .923
Plc_4 12.7940 18.853 .836 .908

(e) Promotion

Case Processing Summary


N %
Cases Valid 500 100.0
Excludeda 0 .0
Total 500 100.0
a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.946 7
Item-Total Statistics
Corrected Item- Cronbach's
Scale Mean if Scale Variance Total Alpha if Item
Item Deleted if Item Deleted Correlation Deleted
Promotion 19.3140 45.951 .884 .932
Prm_1 19.2800 45.056 .890 .931
Prm_2 19.2480 46.363 .736 .945
Prm_3 19.1160 47.461 .787 .940
Prm_4 19.1320 46.111 .882 .932
Prm_5 19.3000 45.184 .890 .931
Prm_6 19.2140 47.151 .692 .949

72
Scale Validity is measured with Face validity method. The Face validity is an estimate
of the degree to which a measure is clearly and unambiguously tapping the construct
it purports to assess.
1. Perception towards Product Strategies

Following scale items are used to measure customer perception towards product
related company strategies.

Table 4.16: Scale Items-Product


DIMENSIONS SCALE ITEM VARIALE
NAME
Product Attractive Packaging size Prd_1
Product availability & credibility Prd_2
Product attributes like Fragrance, healthy, Prd_3
and composition
Personal experience from usage Prd_4
Overall, I am satisfied with product Product
strategies

Table 4.17: Frequency Distribution-Place

Product
Count % Valid % Cumulative %
Valid Strongly Disagree 55 11.0 11.0 11.0
Disagree 85 17.0 17.0 28.0
No Idea 55 11.0 11.0 39.0
Agree 230 46.0 46.0 85.0
Strongly Agree 75 15.0 15.0 100.0
Total 500 100.0 100.0
Prd_1
Count % Valid % Cumulative %

73
Valid Strongly Disagree 58 11.6 11.6 11.6
Disagree 68 13.6 13.6 25.2
No Idea 118 23.6 23.6 48.8
Agree 167 33.4 33.4 82.2
Strongly Agree 89 17.8 17.8 100.0
Total 500 100.0 100.0
Prd_2
Count % Valid % Cumulative %
Valid Strongly Disagree 48 9.6 9.6 9.6
Disagree 49 9.8 9.8 19.4
No Idea 130 26.0 26.0 45.4
Agree 96 19.2 19.2 64.6
Strongly Agree 177 35.4 35.4 100.0
Total 500 100.0 100.0
Prd_3
Count % Valid % Cumulative %
Valid Strongly Disagree 47 9.4 9.4 9.4
Disagree 73 14.6 14.6 24.0
No Idea 86 17.2 17.2 41.2
Agree 144 28.8 28.8 70.0
Strongly Agree 150 30.0 30.0 100.0
Total 500 100.0 100.0
Prd_4
Count % Valid % Cumulative %
Valid Strongly Disagree 101 20.2 20.2 20.2
Disagree 56 11.2 11.2 31.4
No Idea 96 19.2 19.2 50.6
Agree 161 32.2 32.2 82.8
Strongly Agree 86 17.2 17.2 100.0
Total 500 100.0 100.0

74
Prd_1
40

35 33.4

30

25 23.6

20 17.8

15 13.6
11.6
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prd_1 11.6 13.6 23.6 33.4 17.8

Prd_2
40
35.4
35

30
26
25

19.2
20

15

9.6 9.8
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prd_2 9.6 9.8 26 19.2 35.4

75
Prd_3
35

30
30 28.8

25

20
17.2
14.6
15

9.4
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prd_3 9.4 14.6 17.2 28.8 30

Prd_4
35
32.2

30

25

20.2
19.2
20
17.2

15
11.2
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prd_4 20.2 11.2 19.2 32.2 17.2

Figure 4.13: Product Strategy

76
Majority of responses from the customer agreed to have positive perception.

Following hypothesis is formulated to test customer perception towards product


related marketing strategies.

Null There is a negative perception of customer towards Product


related Marketing Strategy of FMCG companies
H1
Alternate There is a Positive perception of customer towards Product
related Marketing Strategy of FMCG companies

For the present analysis, we test the data with hypotheses mean of ‗3‘. By default,
SPSS uses 95% confidence intervals (labelled as the Confidence Interval Percentage
in SPSS). This equates to declaring statistical significance at the p < .05 level. For this
research, keep the default 95% confidence intervals.

Table 4.18: T-test –Product strategies

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Product 500 3.3700 1.23942 .05543
Prd_1 500 3.3220 1.24314 .05560
Prd_2 500 3.6100 1.31200 .05867
Prd_3 500 3.5540 1.30633 .05842
Prd_4 500 3.1500 1.38251 .06183

One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
Product 6.675 499 .000 .37000 .2611 .4789
Prd_1 5.792 499 .000 .32200 .2128 .4312
Prd_2 10.396 499 .000 .61000 .4947 .7253
Prd_3 9.483 499 .000 .55400 .4392 .6688

77
One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
Product 6.675 499 .000 .37000 .2611 .4789
Prd_1 5.792 499 .000 .32200 .2128 .4312
Prd_2 10.396 499 .000 .61000 .4947 .7253
Prd_3 9.483 499 .000 .55400 .4392 .6688
Prd_4 2.426 499 .016 .15000 .0285 .2715

Product Strategy
3.7
3.61
3.6 3.554

3.5

3.4
3.322
3.3

3.2 3.15

3.1

2.9
Prd_1 Prd_2 Prd_3 Prd_4
Series1 3.322 3.61 3.554 3.15

Figure 4.14: Mean-Product Strategy

From the mean value analysis reveals that customers are satisfied with the Price
related marketing strategies of the organization. Customer seems to be satisfied and
influenced by with attractive Packaging size, product availability & credibility,
product attributes like Fragrance, healthy, and composition, personal experience from
usage. Overall, they are satisfied with product strategies.

78
From above result tables, we can accept the H1 alternate hypothesis.

To identify key variables that have impact customer perception towards product
related strategies buying pattern, multivariate regression analysis has been used with
SPSS-19 software. Overall product perception is considered as dependent variable
and other product related factors are considered as independent factors and results
were shown in table as under:

Table-4.19: Multiple regressions for product related factors

Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Prd_1 . Stepwise (Criteria: Probability-of-F-to-enter
<= .050, Probability-of-F-to-remove >= .100).
2 Prd_3 . Stepwise (Criteria: Probability-of-F-to-enter
<= .050, Probability-of-F-to-remove >= .100).
3 Prd_4 . Stepwise (Criteria: Probability-of-F-to-enter
<= .050, Probability-of-F-to-remove >= .100).
a. Dependent Variable: Product

Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .821a .674 .674 .70786
2 .882b .778 .777 .58505
3 .899c .808 .807 .54510
a. Predictors: (Constant), Prd_1
b. Predictors: (Constant), Prd_1, Prd_3
c. Predictors: (Constant), Prd_1, Prd_3, Prd_4

79
ANOVAd
Sum of
Model Squares df Mean Square F Sig.
1 Regression 517.020 1 517.020 1031.842 .000a
Residual 249.530 498 .501
Total 766.550 499
2 Regression 596.438 2 298.219 871.275 .000b
Residual 170.112 497 .342
Total 766.550 499
3 Regression 619.174 3 206.391 694.618 .000c
Residual 147.376 496 .297
Total 766.550 499
a. Predictors: (Constant), Prd_1
b. Predictors: (Constant), Prd_1, Prd_3
c. Predictors: (Constant), Prd_1, Prd_3, Prd_4
d. Dependent Variable: Product

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .650 .090 7.189 .000
Prd_1 .819 .025 .821 32.122 .000
2 (Constant) .107 .083 1.298 .195
Prd_1 .567 .027 .568 21.141 .000
Prd_3 .388 .026 .409 15.232 .000
3 (Constant) .102 .077 1.325 .186
Prd_1 .475 .027 .477 17.571 .000
Prd_3 .266 .028 .280 9.645 .000
Prd_4 .236 .027 .263 8.748 .000
a. Dependent Variable: Product

80
Excluded Variablesd
Collinearity
Partial Statistics
Model Beta In t Sig. Correlation Tolerance
1 Prd_2 .361a 12.080 .000 .476 .568
Prd_3 .409a 15.232 .000 .564 .618
Prd_4 .410a 14.546 .000 .546 .577
2 Prd_2 .167b 4.921 .000 .216 .371
Prd_4 .263b 8.748 .000 .366 .428
3 Prd_2 .065c 1.841 .066 .082 .312
a. Predictors in the Model: (Constant), Prd_1
b. Predictors in the Model: (Constant), Prd_1, Prd_3
c. Predictors in the Model: (Constant), Prd_1, Prd_3, Prd_4
d. Dependent Variable: Product

The final Regression model with 3 independent variables explains almost 80% of the
variance of causes of the overall satisfaction towards product related marketing
strategies for FMCG companies. The regression coefficients, plus the constraints are
significant at 0.05 levels. The ANOVA analysis provides the statistical test for
overall model fit in terms of F Ratio. The total sum of squares (766.550) is the
squared error that would accrue if the mean of causes of satisfaction has been used to
predict the dependent variable. With the above analysis it can be conclude that factors
like attractive packaging size, product attributes like Fragrance, healthy, and
composition, personal experience from usage influence the customer perception
towards product related marketing strategies.

2. Perception towards Price Strategies

Following scale items are used to measure customer perception towards price related
company strategies.

81
Table 4.20: Scale Items-Price
DIMENS SCALE ITEM VARIALE
IONS NAME
Price Pricing policy of FMCG companies focuses on affordability Prc_1
Customer perceive quality from price Prc_2
Companies provide attractive offers Prc_3
Companies give attractive seasonal and festival discounts Prc_4
Overall, I am satisfied with product pricing strategies Price

Table 4.21: Frequency Distribution-Price

Price
Count % Valid % Cumulative %
Valid Strongly Disagree 60 12.0 12.0 12.0
Disagree 75 15.0 15.0 27.0
No Idea 145 29.0 29.0 56.0
Agree 170 34.0 34.0 90.0
Strongly Agree 50 10.0 10.0 100.0
Total 500 100.0 100.0
Prc_1
Count % Valid % Cumulative %
Valid Strongly Disagree 50 10.0 10.0 10.0
Disagree 95 19.0 19.0 29.0
No Idea 95 19.0 19.0 48.0
Agree 200 40.0 40.0 88.0
Strongly Agree 60 12.0 12.0 100.0
Total 500 100.0 100.0
Prc_2
Count % Valid % Cumulative %
Valid Strongly Disagree 55 11.0 11.0 11.0
Disagree 70 14.0 14.0 25.0
No Idea 90 18.0 18.0 43.0

82
Agree 230 46.0 46.0 89.0
Strongly Agree 55 11.0 11.0 100.0
Total 500 100.0 100.0
Prc_3
Count % Valid % Cumulative %
Valid Strongly Disagree 55 11.0 11.0 11.0
Disagree 95 19.0 19.0 30.0
No Idea 100 20.0 20.0 50.0
Agree 205 41.0 41.0 91.0
Strongly Agree 45 9.0 9.0 100.0
Total 500 100.0 100.0
Prc_4
Count % Valid % Cumulative %
Valid Strongly Disagree 55 11.0 11.0 11.0
Disagree 60 12.0 12.0 23.0
No Idea 110 22.0 22.0 45.0
Agree 260 52.0 52.0 97.0
Strongly Agree 15 3.0 3.0 100.0
Total 500 100.0 100.0

Price
40
34
35
29
30

25

20
15
15 12
10
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Price 12 15 29 34 10

83
Prc_1
45
40
40

35

30

25
19 19
20

15 12
10
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prc_1 10 19 19 40 12

Prc_2
50
46
45

40

35

30

25

20 18
14
15
11 11
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prc_2 11 14 18 46 11

84
Prc_3
45
41
40

35

30

25
20
20 19

15
11
10 9

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prc_3 11 19 20 41 9

Prc_4
60
52
50

40

30
22
20

11 12
10
3

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prc_4 11 12 22 52 3

Figure 4.15: Price Strategies

85
Majority of responses from the customer agreed to have positive perception.

Following hypothesis is formulated to test customer perception towards price related


marketing strategies.

Null There is a negative perception of customer towards Price related


Marketing Strategy of FMCG companies
H2
Alternate There is a Positive perception of customer towards Price related
Marketing Strategy of FMCG companies

For the present analysis, we test the data with hypotheses mean of ‗3‘. By default,
SPSS uses 95% confidence intervals (labelled as the Confidence Interval Percentage
in SPSS). This equates to declaring statistical significance at the p < .05 level. For this
research, keep the default 95% confidence intervals.

Table 4.22: T-test –Price strategies

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Price 500 3.1500 1.16198 .05197
Prc_1 500 3.2500 1.18757 .05311
Prc_2 500 3.3200 1.17489 .05254
Prc_3 500 3.1800 1.17062 .05235
Prc_4 500 3.2400 1.06990 .04785

One-Sample Test
Test Value = 3
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
Price 2.887 499 .004 .15000 .0479 .2521

86
Prc_1 4.707 499 .000 .25000 .1457 .3543
Prc_2 6.090 499 .000 .32000 .2168 .4232
Prc_3 3.438 499 .001 .18000 .0771 .2829
Prc_4 5.016 499 .000 .24000 .1460 .3340

3.35
3.32

3.3

3.25
3.25 3.24

3.2 3.18

3.15
3.15

3.1

3.05
Price Prc_1 Prc_2 Prc_3 Prc_4
Series1 3.15 3.25 3.32 3.18 3.24

Figure 4.16: Mean-Price strategy

Table presented with the observed t-value ("t" column), the degrees of freedom ("df"),
and the statistical significance (p-value) ("Sig. (2-tailed)") of the one-sample t-test.
The p value for majority of dimension are < .05, therefore, it can be concluded that
the population means and sample means are significantly different. From the mean
value analysis reveals that customers are satisfied with the product related marketing
strategies of the organization. Customer seems to be satisfied and influenced by with
attractive pricing policy of FMCG companies that focuses on affordability. Customer
perceives quality from price and influenced by companies provide attractive offers.
Customers are also got attracted towards attractive seasonal and festival discounts.

From above result tables, we can accept the H2 alternate hypothesis.

To identify key variables that have impact customer perception towards price related
strategies buying pattern, multivariate regression analysis has been used with SPSS-

87
19 software. Overall Price perception is considered as dependent variable and other
price related factors are considered as independent factors and results were shown in
table as under:

Table-4.23: Multiple regressions for price related factors


Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Prc_3 . Stepwise (Criteria: Probability-of-F-to-enter <= .050,
Probability-of-F-to-remove >= .100).
2 Prc_1 . Stepwise (Criteria: Probability-of-F-to-enter <= .050,
Probability-of-F-to-remove >= .100).
3 Prc_4 . Stepwise (Criteria: Probability-of-F-to-enter <= .050,
Probability-of-F-to-remove >= .100).
4 Prc_2 . Stepwise (Criteria: Probability-of-F-to-enter <= .050,
Probability-of-F-to-remove >= .100).
a. Dependent Variable: Price

Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .879a .772 .772 .55501
2 .891b .794 .793 .52824
3 .899c .808 .807 .51044
4 .901d .812 .811 .50535
a. Predictors: (Constant), Prc_3
b. Predictors: (Constant), Prc_3, Prc_1
c. Predictors: (Constant), Prc_3, Prc_1, Prc_4
d. Predictors: (Constant), Prc_3, Prc_1, Prc_4, Prc_2

88
ANOVAe
Sum of
Model Squares df Mean Square F Sig.
1 Regression 520.345 1 520.345 1689.208 .000a
Residual 153.405 498 .308
Total 673.750 499
2 Regression 535.070 2 267.535 958.793 .000b
Residual 138.680 497 .279
Total 673.750 499
3 Regression 544.519 3 181.506 696.635 .000c
Residual 129.231 496 .261
Total 673.750 499
4 Regression 547.339 4 136.835 535.818 .000d
Residual 126.411 495 .255
Total 673.750 499
a. Predictors: (Constant), Prc_3
b. Predictors: (Constant), Prc_3, Prc_1
c. Predictors: (Constant), Prc_3, Prc_1, Prc_4
d. Predictors: (Constant), Prc_3, Prc_1, Prc_4, Prc_2
e. Dependent Variable: Price

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .376 .072 5.228 .000
Prc_3 .872 .021 .879 41.100 .000
2 (Constant) .271 .070 3.879 .000
Prc_3 .530 .051 .534 10.352 .000
Prc_1 .367 .050 .375 7.264 .000
3 (Constant) .067 .076 .891 .373
Prc_3 .469 .051 .473 9.283 .000
Prc_1 .306 .050 .312 6.134 .000
Prc_4 .184 .031 .170 6.022 .000

89
4 (Constant) .081 .075 1.076 .283
Prc_3 .517 .052 .520 9.929 .000
Prc_1 .330 .050 .337 6.618 .000
Prc_4 .247 .036 .228 6.920 .000
Prc_2 -.135 .041 -.136 -3.323 .001
a. Dependent Variable: Price

Excluded Variablesd
Collinearity
Partial Statistics
Model Beta In t Sig. Correlation Tolerance
1 Prc_1 .375a 7.264 .000 .310 .155
a
Prc_2 .073 1.967 .050 .088 .331
Prc_4 .205a 7.167 .000 .306 .508
2 Prc_2 .014b .380 .704 .017 .313
Prc_4 .170b 6.022 .000 .261 .487
3 Prc_2 -.136c -3.323 .001 -.148 .226
a. Predictors in the Model: (Constant), Prc_3
b. Predictors in the Model: (Constant), Prc_3, Prc_1
c. Predictors in the Model: (Constant), Prc_3, Prc_1, Prc_4
d. Dependent Variable: Price

The final Regression model with 4 independent variables explains almost 81% of the
variance of causes of the overall satisfaction towards price related marketing
strategies for FMCG companies. The regression coefficients, plus the constraints are
significant at 0.05 levels. The ANOVA analysis provides the statistical test for
overall model fit in terms of F Ratio. The total sum of squares (673.750) is the
squared error that would accrue if the mean of causes of satisfaction has been used to
predict the dependent variable. With the above analysis it can be conclude that factors
like affordability. Customer perceives quality from price, attractive offers, attractive
seasonal and festival discounts influence overall perception of customers towards
pricing policies of FMCG companies.

90
3. Perception towards Place Strategies

Following scale items are used to measure customer perception towards place related
company strategies.

Table 4.24: Scale Items-Place


DIMENS SCALE ITEM VARIALE
IONS NAME
Place FMCG products are easily available to your near stores Plc_1
Companies ensure timely delivery of products to Plc_2
customers.
General Physical Distribution Services are good. Plc_3
Companies are responsible for their distribution. Plc_4
Overall, I am satisfied with product placement strategies. Place

Table 4.25: Frequency Distribution-Place

Place
Count % Valid % Cumulative %
Valid Strongly Disagree 65 13.0 13.0 13.0
Disagree 100 20.0 20.0 33.0
No Idea 70 14.0 14.0 47.0
Agree 235 47.0 47.0 94.0
Strongly Agree 30 6.0 6.0 100.0
Total 500 100.0 100.0
Plc_1
Count % Valid % Cumulative %
Valid Strongly Disagree 60 12.0 12.0 12.0
Disagree 116 23.2 23.2 35.2
No Idea 56 11.2 11.2 46.4
Agree 216 43.2 43.2 89.6
Strongly Agree 52 10.4 10.4 100.0

91
Total 500 100.0 100.0
Plc_2
Count % Valid % Cumulative %
Valid Strongly Disagree 61 12.2 12.2 12.2
Disagree 101 20.2 20.2 32.4
No Idea 66 13.2 13.2 45.6
Agree 190 38.0 38.0 83.6
Strongly Agree 82 16.4 16.4 100.0
Total 500 100.0 100.0
Plc_3
Count % Valid % Cumulative %
Valid Strongly Disagree 47 9.4 9.4 9.4
Disagree 98 19.6 19.6 29.0
No Idea 111 22.2 22.2 51.2
Agree 179 35.8 35.8 87.0
Strongly Agree 65 13.0 13.0 100.0
Total 500 100.0 100.0
Plc_4
Count % Valid % Cumulative %
Valid Strongly Disagree 55 11.0 11.0 11.0
Disagree 79 15.8 15.8 26.8
No Idea 94 18.8 18.8 45.6
Agree 225 45.0 45.0 90.6
Strongly Agree 47 9.4 9.4 100.0
Total 500 100.0 100.0

92
Place
50 47
45

40

35

30

25
20
20

13 14
15

10
6
5

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Place 13 20 14 47 6

Plc_1
50

45

40

35

30

25

20

15

10

0
Strongly Disagree Disagree No Idea Agree Strongly Agree

93
Plc_2
40 38

35

30

25
20.2
20
16.4
15 13.2
12.2

10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Plc_2 12.2 20.2 13.2 38 16.4

Plc_3
40
35.8
35

30

25
22.2
19.6
20

15 13
9.4
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Plc_3 9.4 19.6 22.2 35.8 13

94
Plc_4
50
45
45
40
35
30
25
18.8
20 15.8
15 11 9.4
10
5
0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Plc_4 11 15.8 18.8 45 9.4

Figure 4.17: Place Strategies

Majority of responses from the customer agreed to have positive perception.

Following hypothesis is formulated to test customer perception towards place related


marketing strategies.

Null There is a negative perception of customer towards Place


related Marketing Strategy of FMCG companies
H3
Alternate There is a Positive perception of customer towards Place related
Marketing Strategy of FMCG companies

To test this assumption one sample ‗t‘ test is applied. To test this assumption one
sample ‗t‘ test is applied. The one-sample t-test is used to determine whether a sample
comes from a population with a specific mean. This population mean is not always
known, but is sometimes hypothesized. For the present analysis, we test the data with
hypotheses mean of ‗3‘. By default, SPSS uses 95% confidence intervals (labelled as
the Confidence Interval Percentage in SPSS). This equates to declaring statistical

95
significance at the p < .05 level. For this research, keep the default 95% confidence
intervals.

Table 4.26: T-test –Place strategies

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Place 500 3.1300 1.18993 .05322
Plc_1 500 3.1680 1.23889 .05540
Plc_2 500 3.2620 1.28867 .05763
Plc_3 500 3.2340 1.18239 .05288
Plc_4 500 3.2600 1.16581 .05214

One-Sample Test
Test Value = 3
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
Place 2.443 499 .015 .13000 .0254 .2346
Plc_1 3.032 499 .003 .16800 .0591 .2769
Plc_2 4.546 499 .000 .26200 .1488 .3752
Plc_3 4.425 499 .000 .23400 .1301 .3379
Plc_4 4.987 499 .000 .26000 .1576 .3624

96
3.3
3.262 3.26
3.25 3.234

3.2
3.168

3.15
3.13

3.1

3.05
Place Plc_1 Plc_2 Plc_3 Plc_4
Series1 3.13 3.168 3.262 3.234 3.26

Figure 4.18: Mean-Place Strategy

Table presented with the observed t-value ("t" column), the degrees of freedom ("df"),
and the statistical significance (p-value) ("Sig. (2-tailed)") of the one-sample t-test.
The p value for majority of dimension are < .05, therefore, it can be concluded that
the population means and sample means are significantly different. From the mean
value analysis reveals that customers are satisfied with the Place related marketing
strategies of the organization. Customer seems to be satisfied and influenced by the
availability of product. They believe that FMCG products are easily available to their
near stores, and companies are responsible for their distribution. Overall, they seem to
be satisfied with product placement strategies.

From above result tables, we can accept the H3 alternate hypothesis.

To identify key variables that have impact customer perception towards place related
strategies buying pattern, multivariate regression analysis has been used with SPSS-
19 software. Overall place perception is considered as dependent variable and other
place related factors are considered as independent factors and results were shown in
table as under:

97
Table 4.27: Multiple regressions for Place related factors
Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Plc_4 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
2 Plc_1 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
3 Plc_2 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
a. Dependent Variable: Place

Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .821a .674 .673 .68059
2 .871b .759 .758 .58565
3 .872c .761 .759 .58386
a. Predictors: (Constant), Plc_4
b. Predictors: (Constant), Plc_4, Plc_1
c. Predictors: (Constant), Plc_4, Plc_1, Plc_2

ANOVAd
Sum of
Model Squares df Mean Square F Sig.
1 Regression 475.874 1 475.874 1027.350 .000a
Residual 230.676 498 .463
Total 706.550 499
2 Regression 536.088 2 268.044 781.512 .000b
Residual 170.462 497 .343
Total 706.550 499
3 Regression 537.467 3 179.156 525.548 .000c
Residual 169.083 496 .341
Total 706.550 499

98
a. Predictors: (Constant), Plc_4
b. Predictors: (Constant), Plc_4, Plc_1
c. Predictors: (Constant), Plc_4, Plc_1, Plc_2
d. Dependent Variable: Place

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .399 .090 4.413 .000
Plc_4 .838 .026 .821 32.052 .000
2 (Constant) .144 .080 1.798 .073
Plc_4 .513 .033 .502 15.411 .000
Plc_1 .415 .031 .432 13.250 .000
3 (Constant) .117 .081 1.442 .150
Plc_4 .490 .035 .480 13.968 .000
Plc_1 .380 .036 .396 10.640 .000
Plc_2 .065 .032 .071 2.011 .045
a. Dependent Variable: Place

Excluded Variablesd
Collinearity
Partial Statistics
Model Beta In t Sig. Correlation Tolerance
1 Plc_1 .432a 13.250 .000 .511 .457
Plc_2 .252a 7.419 .000 .316 .513
Plc_3 .154a 4.304 .000 .190 .495
2 Plc_2 .071b 2.011 .045 .090 .392
Plc_3 .033b 1.011 .312 .045 .451
3 Plc_3 .014c .412 .681 .018 .408
a. Predictors in the Model: (Constant), Plc_4
b. Predictors in the Model: (Constant), Plc_4, Plc_1
c. Predictors in the Model: (Constant), Plc_4, Plc_1, Plc_2
d. Dependent Variable: Place

99
The final Regression model with 3 independent variables explains almost 76% of the
variance of causes of the overall satisfaction towards place related marketing
strategies for FMCG companies. The regression coefficients, plus the constraints are
significant at 0.05 levels. The ANOVA analysis provides the statistical test for
overall model fit in terms of F Ratio. The total sum of squares (706.550) is the
squared error that would accrue if the mean of causes of satisfaction has been used to
predict the dependent variable.

With the above analysis it can be conclude that factors like easy available to near
stores, and companies are responsible for their distribution influence customer
perception.

4. Perception towards Promotion Strategies

Following scale items are used to measure customer perception towards Promotion
related company strategies.

Table 4.28: Scale Items- Promotion


DIMENSIONS SCALE ITEM VARIALE
NAME
Promotion FMCG advertisements should reach to the Prm_1
audience in time
Advertisements are must for FMCG Prm_2
products and awareness among consumers
Endorsements with celebrity impact Prm_3
buying
All type of FMCG products Prm_4
advertisements have direct impact on the
cost of the products
FMCG advertiser cheats in their Prm_5
advertising.
The FMCG products advertisement should Prm_6

100
be easily understandable.
Overall, I am satisfied with promotion Promotion
strategies.

Table 4.29: Frequency Distribution

Promotion
Count % Valid % Cumulative %
Valid Strongly Disagree 80 16.0 16.0 16.0
Disagree 75 15.0 15.0 31.0
No Idea 90 18.0 18.0 49.0
Agree 215 43.0 43.0 92.0
Strongly Agree 40 8.0 8.0 100.0
Total 500 100.0 100.0
Prm_1
Count % Valid % Cumulative %
Valid Strongly Disagree 82 16.4 16.4 16.4
Disagree 87 17.4 17.4 33.8
No Idea 60 12.0 12.0 45.8
Agree 214 42.8 42.8 88.6
Strongly Agree 57 11.4 11.4 100.0
Total 500 100.0 100.0
Prm_2
Count % Valid % Cumulative %
Valid Strongly Disagree 97 19.4 19.4 19.4
Disagree 70 14.0 14.0 33.4
No Idea 63 12.6 12.6 46.0
Agree 183 36.6 36.6 82.6
Strongly Agree 87 17.4 17.4 100.0
Total 500 100.0 100.0
Prm_3

101
Count % Valid % Cumulative %
Valid Strongly Disagree 72 14.4 14.4 14.4
Disagree 46 9.2 9.2 23.6
No Idea 94 18.8 18.8 42.4
Agree 227 45.4 45.4 87.8
Strongly Agree 61 12.2 12.2 100.0
Total 500 100.0 100.0
Prm_4
Count % Valid % Cumulative %
Valid Strongly Disagree 51 10.2 10.2 10.2
Disagree 99 19.8 19.8 30.0
No Idea 68 13.6 13.6 43.6
Agree 212 42.4 42.4 86.0
Strongly Agree 70 14.0 14.0 100.0
Total 500 100.0 100.0
Prm_5
Count % Valid % Cumulative %
Valid Strongly Disagree 80 16.0 16.0 16.0
Disagree 92 18.4 18.4 34.4
No Idea 64 12.8 12.8 47.2
Agree 209 41.8 41.8 89.0
Strongly Agree 55 11.0 11.0 100.0
Total 500 100.0 100.0
Prm_6
Count % Valid % Cumulative %
Valid Strongly Disagree 92 18.4 18.4 18.4
Disagree 70 14.0 14.0 32.4
No Idea 68 13.6 13.6 46.0
Agree 176 35.2 35.2 81.2
Strongly Agree 94 18.8 18.8 100.0
Total 500 100.0 100.0

102
Promotion
50

45 43

40

35

30

25

20 18
16 15
15

10 8

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Promotion 16 15 18 43 8

Prm_1
45 42.8

40

35

30

25

20 17.4
16.4
15
12 11.4
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_1 16.4 17.4 12 42.8 11.4

103
Prm_2
40
36.6
35

30

25
19.4
20 17.4
14
15 12.6

10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_2 19.4 14 12.6 36.6 17.4

Prm_3
50
45.4
45

40

35

30

25

20 18.8

14.4
15 12.2
9.2
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_3 14.4 9.2 18.8 45.4 12.2

104
Prm_4
45
42.4

40

35

30

25

19.8
20

15 13.6 14

10.2
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_4 10.2 19.8 13.6 42.4 14

Prm_5
45 41.8
40

35

30

25

20 18.4
16
15 12.8
11
10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_5 16 18.4 12.8 41.8 11

105
Prm_6
40
35.2
35

30

25

20 18.4 18.8

14 13.6
15

10

0
Strongly
Disagree No Idea Agree Strongly Agree
Disagree
Prm_6 18.4 14 13.6 35.2 18.8

Figure 4.19: Promotion Strategies

Majority of responses from the customer agreed to have positive perception.


Following hypothesis is formulated to test customer perception towards place related
marketing strategies.

Null There is a negative perception of customer towards Promotion


related Marketing Strategy of FMCG companies
H4
Alternate There is a Positive perception of customer towards Promotion
related Marketing Strategy of FMCG companies

To test this assumption one sample ‗t‘ test is applied. To test this assumption one
sample ‗t‘ test is applied. The one-sample t-test is used to determine whether a sample
comes from a population with a specific mean. This population mean is not always
known, but is sometimes hypothesized. For the present analysis, we test the data with
hypotheses mean of ‗3‘. By default, SPSS uses 95% confidence intervals (labelled as
the Confidence Interval Percentage in SPSS). This equates to declaring statistical
significance at the p < .05 level. For this research, keep the default 95% confidence
intervals.
106
Table 4.30: T-test – Promotion strategies

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Promotion 500 3.1200 1.23639 .05529
Prm_1 500 3.1540 1.30141 .05820
Prm_2 500 3.1860 1.39546 .06241
Prm_3 500 3.3180 1.22959 .05499
Prm_4 500 3.3020 1.22548 .05481
Prm_5 500 3.1340 1.29127 .05775
Prm_6 500 3.2200 1.39121 .06222
One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
Promotion 2.170 499 .030 .12000 .0114 .2286
Prm_1 2.646 499 .008 .15400 .0397 .2683
Prm_2 2.980 499 .003 .18600 .0634 .3086
Prm_3 5.783 499 .000 .31800 .2100 .4260
Prm_4 5.510 499 .000 .30200 .1943 .4097
Prm_5 2.320 499 .021 .13400 .0205 .2475
Prm_6 3.536 499 .000 .22000 .0978 .3422

107
3.35
3.318
3.302
3.3

3.25
3.22

3.2 3.186
3.154
3.15 3.134
3.12

3.1

3.05

3
Promotion Prm_1 Prm_2 Prm_3 Prm_4 Prm_5 Prm_6
Series1 3.12 3.154 3.186 3.318 3.302 3.134 3.22

Figure 4.20: Mean - Promotion

Table presented with the observed t-value ("t" column), the degrees of freedom ("df"),
and the statistical significance (p-value) ("Sig. (2-tailed)") of the one-sample t-test.
The p value for majority of dimension are < .05, therefore, it can be concluded that
the population means and sample means are significantly different. From the mean
value analysis reveals that customers are satisfied with the Promotion related
marketing strategies of the organization. Customer seems to be satisfied and
influenced by the promotion of the product. Customer believes that Advertisements
are must for FMCG products and awareness among consumers and advertisements
should reach to the audience in time. Customer also perceive that endorsements with
celebrity impact buying and all type of FMCG products advertisements have direct
impact on the cost of the products. But customers also think that FMCG advertiser
cheats in their advertising. Customer considered that FMCG products advertisement
should be easily understandable. Overall, they seems to satisfied with promotion
strategies.

From above result tables, we can accept the H4 alternate hypothesis.

To identify key variables that have impact customer perception towards promotion
related strategies buying pattern, multivariate regression analysis has been used with

108
SPSS-19 software. Overall promotion perception is considered as dependent variable
and other promotion related factors are considered as independent factors and results
were shown in table as under:

Table 4.31: Multiple regressions for Promotion related factors

Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Prm_1 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
2 Prm_4 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
3 Prm_6 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
4 Prm_5 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
5 Prm_3 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
6 Prm_2 . Stepwise (Criteria: Probability-of-F-to-enter <=
.050, Probability-of-F-to-remove >= .100).
a. Dependent Variable: Promotion

Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .843a .710 .710 .66598
2 .869b .756 .755 .61197
3 .878c .770 .769 .59467
d
4 .882 .778 .776 .58493
5 .885e .784 .782 .57745
6 .888f .789 .786 .57153

109
Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .843a .710 .710 .66598
2 .869b .756 .755 .61197
3 .878c .770 .769 .59467
4 .882d .778 .776 .58493
5 .885e .784 .782 .57745
6 .888f .789 .786 .57153
a. Predictors: (Constant), Prm_1
b. Predictors: (Constant), Prm_1, Prm_4
c. Predictors: (Constant), Prm_1, Prm_4, Prm_6
d. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5
e. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5, Prm_3
f. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5, Prm_3, Prm_2

ANOVAg
Sum of
Model Squares df Mean Square F Sig.
1 Regression 541.926 1 541.926 1221.866 .000a
Residual 220.874 498 .444
Total 762.800 499
2 Regression 576.668 2 288.334 769.895 .000b
Residual 186.132 497 .375
Total 762.800 499
3 Regression 587.396 3 195.799 553.670 .000c
Residual 175.404 496 .354
Total 762.800 499
4 Regression 593.437 4 148.359 433.614 .000d
Residual 169.363 495 .342
Total 762.800 499
5 Regression 598.077 5 119.615 358.724 .000e
Residual 164.723 494 .333
Total 762.800 499
6 Regression 601.762 6 100.294 307.038 .000f

110
Residual 161.038 493 .327
Total 762.800 499
a. Predictors: (Constant), Prm_1
b. Predictors: (Constant), Prm_1, Prm_4
c. Predictors: (Constant), Prm_1, Prm_4, Prm_6
d. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5
e. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5, Prm_3
f. Predictors: (Constant), Prm_1, Prm_4, Prm_6, Prm_5, Prm_3, Prm_2
g. Dependent Variable: Promotion

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .594 .078 7.606 .000
Prm_1 .801 .023 .843 34.955 .000
2 (Constant) .265 .080 3.337 .001
Prm_1 .521 .036 .548 14.496 .000
Prm_4 .367 .038 .364 9.632 .000
3 (Constant) .163 .079 2.050 .041
Prm_1 .457 .037 .481 12.429 .000
Prm_4 .320 .038 .317 8.398 .000
Prm_6 .143 .026 .161 5.508 .000
4 (Constant) .161 .078 2.055 .040
Prm_1 .316 .049 .333 6.409 .000
Prm_4 .262 .040 .259 6.565 .000
Prm_6 .131 .026 .148 5.105 .000
Prm_5 .216 .051 .225 4.202 .000
5 (Constant) .083 .080 1.041 .298
Prm_1 .288 .049 .304 5.857 .000
Prm_4 .185 .044 .183 4.165 .000
Prm_6 .129 .025 .145 5.068 .000
Prm_5 .208 .051 .217 4.103 .000
Prm_3 .136 .036 .135 3.730 .000
6 (Constant) .053 .080 .670 .503

111
Prm_1 .271 .049 .285 5.528 .000
Prm_4 .136 .046 .135 2.946 .003
Prm_6 .121 .025 .136 4.773 .000
Prm_5 .197 .050 .206 3.915 .000
Prm_3 .139 .036 .138 3.866 .000
Prm_2 .093 .028 .105 3.359 .001
a. Dependent Variable: Promotion

Excluded Variablesf
Collinearity
Partial Statistics
Model Beta In t Sig. Correlation Tolerance
a
1 Prm_2 .223 7.077 .000 .303 .534
Prm_3 .271a 8.024 .000 .339 .453
Prm_4 .364a 9.632 .000 .397 .344
Prm_5 .405a 7.595 .000 .322 .184
Prm_6 .217a 7.137 .000 .305 .572
2 Prm_2 .126b 3.874 .000 .171 .449
Prm_3 .147b 3.901 .000 .173 .335
Prm_5 .255b 4.674 .000 .205 .158
Prm_6 .161b 5.508 .000 .240 .542
3 Prm_2 .109c 3.419 .001 .152 .444
c
Prm_3 .141 3.837 .000 .170 .335
Prm_5 .225c 4.202 .000 .186 .156
4 Prm_2 .101d 3.202 .001 .143 .442
Prm_3 .135d 3.730 .000 .166 .334
5 Prm_2 .105e 3.359 .001 .150 .442
a. Predictors in the Model: (Constant), Prm_1
b. Predictors in the Model: (Constant), Prm_1, Prm_4
c. Predictors in the Model: (Constant), Prm_1, Prm_4, Prm_6
d. Predictors in the Model: (Constant), Prm_1, Prm_4, Prm_6, Prm_5
e. Predictors in the Model: (Constant), Prm_1, Prm_4, Prm_6, Prm_5, Prm_3
f. Dependent Variable: Promotion

112
The final Regression model with 5 independent variables explains almost 78% of the
variance of causes of the overall satisfaction towards Promotion related marketing
strategies for FMCG companies. The regression coefficients, plus the constraints are
significant at 0.05 levels. The ANOVA analysis provides the statistical test for
overall model fit in terms of F Ratio. The total sum of squares (762.800) is the
squared error that would accrue if the mean of causes of satisfaction has been used to
predict the dependent variable.
With the above analysis it can be conclude that factors like awareness among
consumers and advertisements timing, endorsements with celebrity impact buying.
But customers also think that FMCG advertiser cheats in their advertising. Customer
considered that FMCG products advertisement should be easily understandable.

Other Findings

Following scale items are used to measure consumer opinion towards company efforts
on Promotion and Services.

Table 4.32: Scale item-promotion

Opinion towards Promotion and Services Variable


Satisfied with the promotion and services Promotion

To test this assumption one sample ‗t‘ test is applied. The one-sample t-test is used to
determine whether a sample comes from a population with a specific mean. This
population mean is not always known, but is sometimes hypothesized. For the present
analysis, we test the data with hypotheses mean of ‗3‘ (Middle value of Likert Scale)
with the default 95% confidence intervals.

Table 4.33: Overall opinion

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Promotion 500 3.5400 1.26886 .04012
One-Sample Test
Test Value = 3

113
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
Promotion 13.458 499 0.000 0.54000 .4613 .6187

From the mean value analysis reveals that consumers have positive opinion towards
company promotion. Consumers are satisfied with the promotion and services of
companies.

Following scale items are used to measure consumer opinion towards motivational
factors.

Table 4.34: Scale item-motivation

Satisfaction with the present motivational methods Variable


Satisfied with the present motivational methods Motivation

To test this assumption one sample ‗t‘ test is applied. The one-sample t-test is used to
determine whether a sample comes from a population with a specific mean. This
population mean is not always known, but is sometimes hypothesized. For the present
analysis, we test the data with hypotheses mean of ‗3‘ (Middle value of Likert Scale)
with the default 95% confidence intervals.

Table 4.35: Overall opinion

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Motivation 500 3.5350 1.15763 .03661
One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper

114
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Motivation 14.614 499 .000 .53500 .4632 .6068

From the mean value analysis reveals that consumers have positive opinion towards
company motivation efforts. Consumers are Satisfied with the present motivational
methods.

Following scale items are used to measure consumer opinion towards convenience of
shopping.

Table 4.36: Scale item

Opinion towards Convenience of shopping Variable


Convenience of shopping helps in increasing preference for the brand Convenience

To test this assumption one sample ‗t‘ test is applied. The one-sample t-test is used to
determine whether a sample comes from a population with a specific mean. This
population mean is not always known, but is sometimes hypothesized. For the present
analysis, we test the data with hypotheses mean of ‗3‘ (Middle value of Likert Scale)
with the default 95% confidence intervals.

Table 4.37: Overall opinion

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Convenience 500 3.1950 1.16548 .03686
One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
Convenience 5.291 499 .000 .19500 .1227 .2673

115
From the mean value analysis reveals that consumers have positive opinion towards
shopping experience. Convenience of shopping helps in increasing preference for the
brand.

4.5 Impact of demographics

The ANOVA analysis provides the statistical test for overall model fit in terms of F
Ratio. Following ANOVA tests are conducted to examine the presence of possible
difference in customer perception towards marketing mix strategies (product, price,
place and promotion) across demographic variables (age, gender, income,
occupation).

1. Age

Table 4.38: ANOVA result-Age

Descriptives
95%
Confidence
Interval for
Mean
Lowe
Std. r Upper
Deviatio Std. Boun Boun Minimu Maximu
N Mean n Error d d m m
Prod 20-30 80 3.625 .93287 .1043 3.417 3.832 1.00 5.00
uct yrs 0 0 4 6
31-40 22 3.266 1.34297 .0895 3.090 3.443 1.00 5.00
yrs 5 7 3 2 1
41-50 12 3.240 1.27886 .1143 3.013 3.466 1.00 5.00
yrs 5 0 8 6 4
>50 yrs 70 3.642 1.04999 .1255 3.392 3.893 1.00 5.00
9 0 5 2

116
Total 50 3.370 1.23942 .0554 3.261 3.478 1.00 5.00
0 0 3 1 9
Price 20-30 80 2.875 1.22604 .1370 2.602 3.147 1.00 5.00
yrs 0 8 2 8
31-40 22 3.155 1.09698 .0731 3.011 3.299 1.00 5.00
yrs 5 6 3 4 7
41-50 12 3.320 1.19542 .1069 3.108 3.531 1.00 5.00
yrs 5 0 2 4 6
>50 yrs 70 3.142 1.19523 .1428 2.857 3.427 1.00 5.00
9 6 9 8
Total 50 3.150 1.16198 .0519 3.047 3.252 1.00 5.00
0 0 7 9 1
Plac 20-30 80 2.687 1.05054 .1174 2.453 2.921 1.00 4.00
e yrs 5 5 7 3
31-40 22 2.977 1.31082 .0873 2.805 3.150 1.00 5.00
yrs 5 8 9 6 0
41-50 12 3.480 .94698 .0847 3.312 3.647 1.00 5.00
yrs 5 0 0 4 6
>50 yrs 70 3.500 1.05981 .1266 3.247 3.752 1.00 5.00
0 7 3 7
Total 50 3.130 1.18993 .0532 3.025 3.234 1.00 5.00
0 0 2 4 6
Pro 20-30 80 2.625 .99842 .1116 2.402 2.847 1.00 4.00
moti yrs 0 3 8 2
on 31-40 22 3.155 1.38480 .0923 2.973 3.337 1.00 5.00
yrs 5 6 2 6 5
41-50 12 3.320 1.01282 .0905 3.140 3.499 1.00 5.00
yrs 5 0 9 7 3
>50 yrs 70 3.214 1.21456 .1451 2.924 3.503 1.00 5.00
3 7 7 9
Total 50 3.120 1.23639 .0552 3.011 3.228 1.00 5.00
0 0 9 4 6

117
ANOVA
Sum of Mean
Squares df Square F Sig.
Product Between 14.929 3 4.976 3.284 .021
Groups
Within Groups 751.621 496 1.515
Total 766.550 499
Price Between 9.673 3 3.224 2.408 .066
Groups
Within Groups 664.077 496 1.339
Total 673.750 499
Place Between 45.774 3 15.258 11.453 .000
Groups
Within Groups 660.776 496 1.332
Total 706.550 499
Promotion Between 25.509 3 8.503 5.720 .001
Groups
Within Groups 737.291 496 1.486
Total 762.800 499

Product
3.7 3.6429
3.625
3.6

3.5

3.4

3.3 3.2667
3.24
3.2

3.1

3
20-30 yrs 31-40 yrs 41-50 yrs >50 yrs
Product 3.625 3.2667 3.24 3.6429

118
Price
3.4
3.32
3.3

3.2 3.1556 3.1429

3.1

2.9 2.875

2.8

2.7

2.6
20-30 yrs 31-40 yrs 41-50 yrs >50 yrs
Price 2.875 3.1556 3.32 3.1429

Place
4

3.48 3.5
3.5

2.9778
3
2.6875

2.5

1.5

0.5

0
20-30 yrs 31-40 yrs 41-50 yrs >50 yrs
Place 2.6875 2.9778 3.48 3.5

119
Promotion
3.5 3.32
3.1556 3.2143

3
2.625
2.5

1.5

0.5

0
20-30 yrs 31-40 yrs 41-50 yrs >50 yrs
Promotion 2.625 3.1556 3.32 3.2143

Figure 4.21: 4Ps -Age Wise

With the above analysis it can be conclude that age does explains the changes in
Perception towards marketing mix strategies. There was a statistically significant
difference between across different age groups, as determined by one-way ANOVA
(p< 0.05). The Null hypothesis was rejected and from the mean analysis, we can
conclude that perception towards marketing mix strategy does differ across different
age categories. The customer belong to higher age bracket of 41-50 and greater than
50 years have more positive perception towards product, Place and promotion related
marketing strategies.

120
2. Gender

Table 4.39: ANOVA result-gender

Descriptives
95%
Confidence
Interval for
Mean
Lowe
Std. r Upper
Deviatio Std. Boun Boun Minimu Maximu
N Mean n Error d d m m
Product Male 27 3.129 1.35029 .0821 2.967 3.291 1.00 5.00
0 6 8 8 4
Female 23 3.652 1.02836 .0678 3.518 3.785 1.00 5.00
0 2 1 6 8
Total 50 3.370 1.23942 .0554 3.261 3.478 1.00 5.00
0 0 3 1 9
Price Male 27 3.111 1.13522 .0690 2.975 3.247 1.00 5.00
0 1 9 1 1
Female 23 3.195 1.19350 .0787 3.040 3.350 1.00 5.00
0 7 0 6 7
Total 50 3.150 1.16198 .0519 3.047 3.252 1.00 5.00
0 0 7 9 1
Place Male 27 3.074 1.15446 .0702 2.935 3.212 1.00 5.00
0 1 6 7 4
Female 23 3.195 1.22954 .0810 3.035 3.355 1.00 5.00
0 7 7 9 4
Total 50 3.130 1.18993 .0532 3.025 3.234 1.00 5.00
0 0 2 4 6
Promoti Male 27 3.111 1.18332 .0720 2.969 3.252 1.00 5.00
on 0 1 1 3 9

121
Female 23 3.130 1.29845 .0856 2.961 3.299 1.00 5.00
0 4 2 7 1
Total 50 3.120 1.23639 .0552 3.011 3.228 1.00 5.00
0 0 9 4 6

ANOVA
Sum of Mean
Squares df Square F Sig.
Product Between 33.913 1 33.913 23.052 .000
Groups
Within Groups 732.637 498 1.471
Total 766.550 499
Price Between .888 1 .888 .657 .418
Groups
Within Groups 672.862 498 1.351
Total 673.750 499
Place Between 1.836 1 1.836 1.297 .255
Groups
Within Groups 704.714 498 1.415
Total 706.550 499
Promotion Between .046 1 .046 .030 .862
Groups
Within Groups 762.754 498 1.532
Total 762.800 499

122
Product
3.7 3.6522

3.6
3.5
3.4
3.3
3.2 3.1296
3.1
3
2.9
2.8
Male Female
Product 3.1296 3.6522

Price
3.22
3.1957
3.2
3.18
3.16
3.14
3.12 3.1111

3.1
3.08
3.06
Male Female
Price 3.1111 3.1957

123
Place
3.22
3.1957
3.2
3.18
3.16
3.14
3.12
3.1
3.0741
3.08
3.06
3.04
3.02
3
Male Female
Place 3.0741 3.1957

Promotion
3.135
3.1304
3.13

3.125

3.12

3.115
3.1111
3.11

3.105

3.1
Male Female
Promotion 3.1111 3.1304

Figure 4.22: 4Ps- GenderWise

With the above analysis it can be conclude that gender does explains the changes in
Perception towards marketing mix strategies. There was a statistically significant
difference between across different gender groups, as determined by one-way
ANOVA (p< 0.05). The Null hypothesis was rejected and from the mean analysis, we
can conclude that perception towards marketing mix strategy does differ across

124
different gender categories. The female customers have more positive attitude
towards product related marketing strategies of FMCG companies. For other mix
components like place, promotion, and price, the perception remain the indifferent.

3. Occupation

Table 4.40: ANOVA result-occupation

Descriptives
95%
Confidence
Interval for
Mean
Lowe Uppe
Std. r r
Deviatio Std. Boun Boun Minimu Maximu
N Mean n Error d d m m
Product Business 23 3.297 1.25601 .0819 3.136 3.459 1.00 5.00
5 9 3 5 3
Employe 26 3.434 1.22334 .0751 3.286 3.581 1.00 5.00
d 5 0 5 0 9

Total 50 3.370 1.23942 .0554 3.261 3.478 1.00 5.00


0 0 3 1 9
Price Business 23 3.276 1.16396 .0759 3.127 3.426 1.00 5.00
5 6 3 0 2
Employe 26 3.037 1.15079 .0706 2.898 3.176 1.00 5.00
d 5 7 9 5 9

Total 50 3.150 1.16198 .0519 3.047 3.252 1.00 5.00


0 0 7 9 1
Place Business 23 3.085 1.22002 .0795 2.928 3.241 1.00 5.00
5 1 9 3 9

125
Employe 26 3.169 1.16346 .0714 3.029 3.310 1.00 5.00
d 5 8 7 1 5

Total 50 3.130 1.18993 .0532 3.025 3.234 1.00 5.00


0 0 2 4 6
Promotio Business 23 3.234 1.26107 .0822 3.072 3.396 1.00 5.00
n 5 0 6 0 1
Employe 26 3.018 1.20747 .0741 2.872 3.164 1.00 5.00
d 5 9 7 8 9

Total 50 3.120 1.23639 .0552 3.011 3.228 1.00 5.00


0 0 9 4 6

ANOVA
Sum of Mean
Squares df Square F Sig.
Product Between 2.307 1 2.307 1.503 .221
Groups
Within Groups 764.243 498 1.535
Total 766.550 499
Price Between 7.106 1 7.106 5.308 .022
Groups
Within Groups 666.644 498 1.339
Total 673.750 499
Place Between .894 1 .894 .631 .427
Groups
Within Groups 705.656 498 1.417
Total 706.550 499
Promotion Between 5.767 1 5.767 3.794 .052
Groups
Within Groups 757.033 498 1.520
Total 762.800 499

126
Product
3.45 3.434

3.4

3.35

3.2979
3.3

3.25

3.2
Business Employed
Product 3.2979 3.434

Price
3.3 3.2766

3.25

3.2

3.15

3.1

3.05 3.0377

2.95

2.9
Business Employed
Price 3.2766 3.0377

127
Place
3.18
3.1698

3.16

3.14

3.12

3.1
3.0851
3.08

3.06

3.04
Business Employed
Place 3.0851 3.1698

Promotion
3.3

3.25 3.234

3.2

3.15

3.1

3.05
3.0189
3

2.95

2.9
Business Employed
Promotion 3.234 3.0189

Figure 4.23: 4Ps Occupation Wise

128
With the above analysis it can be conclude that occupation does explains the changes
in Perception towards marketing mix strategies. There was a statistically significant
difference between across different occupation groups, as determined by one-way
ANOVA (p< 0.05). The Null hypothesis was rejected and from the mean analysis, we
can conclude that perception towards marketing mix strategy does differ across
different occupation categories. The business class customers have more positive
attitude towards price related marketing strategies of FMCG companies. For other
mix components like product, promotion, and product, the perception remain the
indifferent.

4. Income

Table 4.41: ANOVA result-Income

Descriptives
95%
Confidence
Interval for
Mean
Lowe
Std. r Upper
Deviatio Std. Boun Boun Minimu Maximu
N Mean n Error d d m m
Prod <1 LPA 90 3.333 1.16117 .1224 3.090 3.576 1.00 5.00
uct 3 0 1 5
1-5 LPA 20 3.341 1.26432 .0883 3.167 3.515 1.00 5.00
5 5 0 4 6
5-10 10 3.150 1.28216 .1282 2.895 3.404 1.00 5.00
LPA 0 0 2 6 4

>10 10 3.666 1.17397 .1145 3.439 3.893 1.00 5.00


LPA 5 7 7 5 9

Total 50 3.370 1.23942 .0554 3.261 3.478 1.00 5.00


0 0 3 1 9

129
Price <1 LPA 90 3.111 1.20341 .1268 2.859 3.363 1.00 5.00
1 5 1 2
1-5 LPA 20 3.219 1.20278 .0840 3.053 3.385 1.00 5.00
5 5 1 9 1
5-10 10 3.350 1.32097 .1321 3.087 3.612 1.00 5.00
LPA 0 0 0 9 1

>10 10 2.857 .77743 .0758 2.706 3.007 1.00 4.00


LPA 5 1 7 7 6

Total 50 3.150 1.16198 .0519 3.047 3.252 1.00 5.00


0 0 7 9 1
Plac <1 LPA 90 2.944 1.18380 .1247 2.696 3.192 1.00 4.00
e 4 8 5 4
1-5 LPA 20 3.048 1.23175 .0860 2.879 3.218 1.00 5.00
5 8 3 2 4
5-10 10 3.200 1.12815 .1128 2.976 3.423 1.00 4.00
LPA 0 0 2 2 8

>10 10 3.381 1.13833 .1110 3.160 3.601 1.00 5.00


LPA 5 0 9 7 2

Total 50 3.130 1.18993 .0532 3.025 3.234 1.00 5.00


0 0 2 4 6
Pro <1 LPA 90 2.888 1.29341 .1363 2.618 3.159 1.00 4.00
moti 9 4 0 8
on 1-5 LPA 20 3.122 1.21662 .0849 2.954 3.289 1.00 5.00
5 0 7 4 5
5-10 10 3.150 1.28216 .1282 2.895 3.404 1.00 5.00
LPA 0 0 2 6 4

>10 10 3.285 1.16614 .1138 3.060 3.511 1.00 5.00


LPA 5 7 0 0 4

Total 50 3.120 1.23639 .0552 3.011 3.228 1.00 5.00


0 0 9 4 6

130
ANOVA
Sum of Mean
Squares df Square F Sig.
Product Between 14.369 3 4.790 3.158 .024
Groups
Within Groups 752.181 496 1.516
Total 766.550 499
Price Between 14.132 3 4.711 3.542 .015
Groups
Within Groups 659.618 496 1.330
Total 673.750 499
Place Between 11.554 3 3.851 2.749 .042
Groups
Within Groups 694.996 496 1.401
Total 706.550 499
Promotion Between 7.781 3 2.594 1.704 .165
Groups
Within Groups 755.019 496 1.522
Total 762.800 499

Product
3.8
3.7 3.6667

3.6
3.5
3.4 3.3333 3.3415
3.3
3.2 3.15
3.1
3
2.9
2.8
<1 LPA 1-5 LPA 5-10 LPA >10 LPA
Product 3.3333 3.3415 3.15 3.6667

131
Price
3.4
3.35

3.3
3.2195
3.2

3.1111
3.1

2.9 2.8571

2.8

2.7

2.6
<1 LPA 1-5 LPA 5-10 LPA >10 LPA
Price 3.1111 3.2195 3.35 2.8571

Place
3.5

3.4 3.381

3.3
3.2
3.2

3.1 3.0488

3
2.9444

2.9

2.8

2.7
<1 LPA 1-5 LPA 5-10 LPA >10 LPA
Place 2.9444 3.0488 3.2 3.381

132
Promotion
3.4

3.3 3.2857

3.2
3.15
3.122

3.1

2.9 2.8889

2.8

2.7

2.6
<1 LPA 1-5 LPA 5-10 LPA >10 LPA
Promotion 2.8889 3.122 3.15 3.2857

Figure 4.24: 4Ps Income Wise

With the above analysis it can be conclude that income does explains the changes in
Perception towards marketing mix strategies. There was a statistically significant
difference between across different income groups, as determined by one-way
ANOVA (p< 0.05). The Null hypothesis was rejected and from the mean analysis, we
can conclude that perception towards marketing mix strategy does differ across
different income categories. The high income customers have more positive attitude
towards product, price and place related marketing strategies of FMCG companies
compared to lower income group customers.

133
5. Location

Table 4.42: ANOVA Result-Location

Descriptives

95%
Confidence
Interval for
Mean

Lowe
Std. r Upper
Deviati Std. Boun Boun Minimu Maximu
N Mean on Error d d m m

Product Urban 30 3.2131 1.3342 .0764 3.062 3.363 1.00 5.00


5 0 0 8 4

Rural 85 3.9412 .80701 .0875 3.767 4.115 2.00 5.00


3 1 2

Semi- 11 3.3636 1.1147 .1062 3.153 3.574 1.00 5.00


urban 0 7 9 0 3

Total 50 3.3700 1.2394 .0554 3.261 3.478 1.00 5.00


0 2 3 1 9

Price Urban 30 3.3115 1.0659 .0610 3.191 3.431 1.00 5.00


5 3 4 4 6

Rural 85 2.7647 1.3151 .1426 2.481 3.048 1.00 4.00


8 5 0 4

Semi- 11 3.0000 1.2115 .1155 2.771 3.229 1.00 5.00


urban 0 7 2 0 0

134
Total 50 3.1500 1.1619 .0519 3.047 3.252 1.00 5.00
0 8 7 9 1

Place Urban 30 3.2951 1.1083 .0634 3.170 3.420 1.00 5.00


5 5 6 2 0

Rural 85 2.9412 1.2663 .1373 2.668 3.214 1.00 4.00


5 5 0 3

Semi- 11 2.8182 1.2720 .1212 2.577 3.058 1.00 5.00


urban 0 1 8 8 6

Total 50 3.1300 1.1899 .0532 3.025 3.234 1.00 5.00


0 3 2 4 6

Promot Urban 30 3.2951 1.1230 .0643 3.168 3.421 1.00 5.00


ion 5 9 1 5 6

Rural 85 2.7059 1.4946 .1621 2.383 3.028 1.00 5.00


2 1 5 3

Semi- 11 2.9545 1.2295 .1172 2.722 3.186 1.00 5.00


urban 0 0 3 2 9

Total 50 3.1200 1.2363 .0552 3.011 3.228 1.00 5.00


0 9 9 4 6

ANOVA

Sum of Mean
Squares df Square F Sig.

Product Between Groups 35.242 2 17.621 11.975 .000

Within Groups 731.308 497 1.471

Total 766.550 499

135
Price Between Groups 23.046 2 11.523 8.801 .000

Within Groups 650.704 497 1.309

Total 673.750 499

Place Between Groups 22.038 2 11.019 8.000 .000

Within Groups 684.512 497 1.377

Total 706.550 499

Promotion Between Groups 26.938 2 13.469 9.097 .000

Within Groups 735.862 497 1.481

Total 762.800 499

Product
4.5

3.9412
4

3.5 3.3636
3.2131

2.5

1.5

0.5

0
Urban Rural Semi-urban
Product 3.2131 3.9412 3.3636

136
Price
3.4
3.3115
3.3

3.2

3.1
3
3

2.9

2.8 2.7647

2.7

2.6

2.5

2.4
Urban Rural Semi-urban
Price 3.3115 2.7647 3

Place
3.4
3.2951
3.3

3.2

3.1

3 2.9412

2.9
2.8182
2.8

2.7

2.6

2.5
Urban Rural Semi-urban
Place 3.2951 2.9412 2.8182

137
Promotion
3.5
3.2951

2.9545
3
2.7059

2.5

1.5

0.5

0
Urban Rural Semi-urban
Promotion 3.2951 2.7059 2.9545

Figure 4.25: 4Ps –Location Wise

With the above analysis it can be conclude that location does explains the changes in
Perception towards marketing mix strategies. There was a statistically significant
difference between across different location, as determined by one-way ANOVA (p<
0.05). The Null hypothesis was rejected and from the mean analysis, we can conclude
that perception towards marketing mix strategy does differ across different location
categories. The urban customers have more positive attitude towards product, price,
promotion and place related marketing strategies of FMCG companies compared to
lower rural and semi-urban customers.

138
Table 4.43: Summary- Hypothesis testing

Hypothesis Result
Null There is a negative perception of customer towards Rejected
Product related Marketing Strategy of FMCG companies
H1
Alternate There is a Positive perception of customer towards Accepted
Product related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Price Rejected
related Marketing Strategy of FMCG companies
H2
Alternate There is a Positive perception of customer towards Price Accepted
related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Place Rejected
related Marketing Strategy of FMCG companies
H3
Alternate There is a Positive perception of customer towards Place Accepted
related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Rejected
Promotion related Marketing Strategy of FMCG
companies
H4
Alternate There is a Positive perception of customer towards Accepted
Promotion related Marketing Strategy of FMCG
companies

139
Chapter -5
CONCLUSIONS

The marketing mix is defined as 4P‘s namely the product, price, promotion and place.
They are often designed to influence consumer decision-making and lead to profitable
exchanges. Each element of the marketing mix can affect consumers in many ways.

The strength of this research lies on its specific focus on the connection between the
customers satisfaction with the international marketing mix model, the four Ps and
benchmarking. This research also underlines the impact of customer buying behavior
base on the company quality policy.

The research work is presented in 5 chapters. Chapter-1 an introduction presents the


introduction of the term Marketing mix, Criticism on Marketing Mix Model,
Limitations of the Marketing Mix Framework, Customer Satisfaction, Significance of
Study and formation of Research Objectives. The chapter-2 reviews of literature
presents Objectives of the study, need to study, research on marketing mix model,
standardization of Marketing Mix, marketing strategies adopted for FMCG sector,
criticism on Marketing Mix Model and customer satisfaction.

Chapter-3 Research methodology presents the hypotheses, source of information,


research design, data collection tools, data analysis technique, significance and
limitations of the study, development of scale items and variables used in the study,
Chapter-4 Data analysis presents the demographical description of the respondents,
data analysis in brief with the testing of various hypothesis as per the requirement of
the research and research objectives, measuring difference as per demographical
profile of the respondents with the help of statistical software SPSS-19.

140
5.1 Major Findings

Demographics

 It was found that majority of respondent are from 31-40 years of age. 25
percent of consumers are between age of 41-50 years of age. 16 percent of
consumers belong to age bracket of 20-30 year. A small proportion belongs to
higher age group of greater than 50 years.

 Gender wise analysis revealed that the survey included 500 consumers. Out of
the total respondents, about 54 percent of respondents are male and 46 percent
were female. Since the survey was conducted, this distribution shows a
balance in distribution of males and female.

 Out of the total consumers, about 47 percent belong to business class and 53%
is related to employed category. It showed that there is a balance in sample
distribution with respect to occupation.

 Majority of respondent belong to urban location (61 percent). However,


sample also includes respondents from Semi-urban (22 percent) and Rural
sector (17 percent). Hence the result of the consumer opinion includes
perspective of all categories of consumers living in different socio-
demographic environment.

 There are many lower middle to low income group of respondents are selected
in the sample. About 20 percent of consumers belong to 5-10 LPA group and
only 21 percent are in greater than 10 LPA class. Hence our results of the
study reflect the consumer opinion of all lower to higher middle class
consumers.

141
Consumer Behavior towards FMCG Products

 It can be concluded that most frequently purchased FMCG product include


washing soap and detergent and bath soap and shampoos. Other popular and
most purchased items include tooth paste, food product and beverages.

 It can be concluded that most of the FMCG products are purchased on the
daily basis. Some respondent agreed to purchase weekly for these FMGC
items. Most of the less frequently products and high value items are purchased
monthly and on occasions.

 Most influential person in the making the purchase decision are the family
members followed by friends. Retailers and shop keepers also play an
important role in influencing purchase decisions.

 Most preferred product line is FMCG for any diversified company. Consumers
also like personal care products and Stationary segment of. Other products
include paperboards and packing material. Life retailing and IT sector in also
popular among consumers. Less preferred segment includes Hotel segment,
cigarettes and agri-business.

 TV and News paper are the most preferred sources of information about the
product for consumers of FMCG product. Consumers prefer to buy from
shopping mall. Other favorite location includes online shopping sites.

 Most deciding factor for selection of product whereas, consumer also give
importance to quality of product. Other important factors include publicity,
and sales promotion schemes by companies to influence purchase decision
along with attractive packaging.

 Consumers are most influenced by company advertising and sales promotion


efforts. Many companies implement combination strategy in marketing
products along with public relation activities.

142
Perception towards marketing strategies

 Customers are satisfied with the Price related marketing strategies of the
organization. Customer seems to be satisfied and influenced by with attractive
Packaging size, product availability & credibility, product attributes like
Fragrance, healthy, and composition, personal experience from usage. Overall,
they are satisfied with product strategies. Regression model with 3
independent variables explains almost 80% of the variance of causes of the
overall satisfaction towards product related marketing strategies for FMCG
companies. Factors like attractive packaging size, product attributes like
Fragrance, healthy, and composition, personal experience from usage
influence the customer perception towards product related marketing
strategies.

 Customer seems to be satisfied and influenced by with attractive pricing


policy of FMCG companies that focuses on affordability. Customer perceives
quality from price and influenced by companies provide attractive offers.
Customers are also got attracted towards attractive seasonal and festival
discounts. Regression model with 4 independent variables explains almost
81% of the variance of causes of the overall satisfaction towards price related
marketing strategies for FMCG companies. Factors like affordability.
Customer perceives quality from price, attractive offers, attractive seasonal
and festival discounts influence overall perception of customers towards
pricing policies of FMCG companies.

 Customer seems to be satisfied and influenced by the availability of product.


They believe that FMCG products are easily available to their near stores, and
companies are responsible for their distribution. Overall, they seem to be
satisfied with product placement strategies. Regression model with 3
independent variables explains almost 76% of the variance of causes of the
overall satisfaction towards place related marketing strategies for FMCG
companies. it can be conclude that factors like easy available to near stores,
and companies are responsible for their distribution influence customer
perception.

143
 Customer seems to be satisfied and influenced by the promotion of the
product. Customer believes that Advertisements are must for FMCG products
and awareness among consumers and advertisements should reach to the
audience in time. Customer also perceive that endorsements with celebrity
impact buying and all type of FMCG products advertisements have direct
impact on the cost of the products. But customers also think that FMCG
advertiser cheats in their advertising. Customer considered that FMCG
products advertisement should be easily understandable. Overall, they seems
to satisfied with promotion strategies. Regression model with 5 independent
variables explains almost 78% of the variance of causes of the overall
satisfaction towards Promotion related marketing strategies for FMCG
companies. Factors like awareness among consumers and advertisements
timing, endorsements with celebrity impact buying. But customers also think
that FMCG advertiser cheats in their advertising. Customer considered that
FMCG products advertisement should be easily understandable. Consumers
have positive opinion towards company promotion. Consumers are satisfied
with the promotion and services of companies. Consumers have positive
opinion towards shopping experience. Convenience of shopping helps in
increasing preference for the brand.

Impact of demographics

 Perception towards marketing mix strategy does differ across different age
categories. The customer belong to higher age bracket of 41-50 and greater
than 50 years have more positive perception towards product, Place and
promotion related marketing strategies.

 Perception towards marketing mix strategy does differ across different gender
categories. The female customers have more positive attitude towards product
related marketing strategies of FMCG companies. For other mix components
like place, promotion, and price, the perception remain the indifferent.

144
 Perception towards marketing mix strategy does differ across different
occupation categories. The business class customers have more positive
attitude towards price related marketing strategies of FMCG companies. For
other mix components like product, promotion, and product, the perception
remain the indifferent.

 Perception towards marketing mix strategy does differ across different income
categories. The high income customers have more positive attitude towards
product, price and place related marketing strategies of FMCG companies
compared to lower income group customers.

 Perception towards marketing mix strategy does differ across different


location categories. The urban customers have more positive attitude towards
product, price, promotion and place related marketing strategies of FMCG
companies compared to lower rural and semi-urban customers.

145
5.2 Result of Hypothesis testing
Hypothesis Result
Null There is a negative perception of customer towards Rejected
Product related Marketing Strategy of FMCG
companies
H1
Alternate There is a Positive perception of customer towards Accepted
Product related Marketing Strategy of FMCG
companies
Null There is a negative perception of customer towards Rejected
Price related Marketing Strategy of FMCG companies
H2
Alternate There is a Positive perception of customer towards Accepted
Price related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Rejected
Place related Marketing Strategy of FMCG companies
H3
Alternate There is a Positive perception of customer towards Accepted
Place related Marketing Strategy of FMCG companies
Null There is a negative perception of customer towards Rejected
Promotion related Marketing Strategy of FMCG
companies
H4
Alternate There is a Positive perception of customer towards Accepted
Promotion related Marketing Strategy of FMCG
companies

146
5.3 Suggestions

Following are some strategies adopted by FMCG companies for making their brands
outstanding compared to competitors:

(i) Multi-brand Strategy:

A company often nurtures a number of brands in the same category. There are various
motives for doing this. The main rationale behind this strategy is to capture as much
of the market share as possible by trying to cover as many segments as possible, as it
is not possible for one brand to cater to the entire market.

(ii) Product Flanking:

Product flanking refers to the introduction of different combinations of products at


different prices, to cover as many market segments as possible.

(iii) Brand Extensions:

Hindustan Lever‘s Lifebuoy soap‘s brand extensions are Lifebuoy Plus, Lifebuoy
liquid and Lifebuoy Gold, since these brands have been positioned at different
segments. Similarly, Amul butter, Amul ghee, Amul cheese and Amul chocolates are
various brand extensions of regular Amul Brand. Companies make brand extensions
in the hope that the extensions will be able to ride on the equity of the successful
brands.

It is not simply enough to identify the strengths, weaknesses, opportunities, and


threats of the outranking method. In applying the SWOT analysis it is necessary to
minimize or avoid both weaknesses and threats. Weaknesses should be looked at in
order to convert them into strengths. Likewise, threats should be converted into
opportunities. Lastly, strengths and opportunities should be matched to optimize the
potential of a firm. Applying SWOT in this fashion can obtain leverage for a
company.

As can be seen, the marketing manager should have rough outline of potential
marketing activities that can be used to take advantage of capabilities and convert

147
weaknesses and threats. However, at this stage, there will likely be many potential
directions for the managers to pursue. Due to the limited resources that most firms
have, it is difficult to accomplish everything at once. The manager must prioritize all
marketing activities and develop specific goals and objectives for the marketing plan.

Barring a few, notable exceptions, rural marketing in India is still about a van
campaign, a badly-made commercial, a few painted walls and the occasional
participation in village haats and melas.

But then, "rural" means different things to different people: from 500,000 people for
consumer durables, to less than 50,000 for fast-moving consumer goods.

Still, it is heartening to note the increasing awareness of the importance of rural


markets - or, at least, of companies wanting to move beyond urban boundaries.

5.4 Future Studies

The relationships between customer satisfaction and behavioral outcomes are


probably much more complex than initially assumed. This study has looked only at a
limited part of the puzzle of how customer satisfaction translates into behavioral
outcomes. In what way consumer characteristics moderate the relationship between
satisfactions and repurchase behavior is likely to be contingent on the product or
service category and the buying and usage process for that category. Other consumer
characteristics not included in this study, such as a propensity for variety seeking
behavior or a recreational shopping orientation, could potentially be important in
many FMCG industries. Further research on how the effects of satisfaction on
behavior is moderated by different consumer characteristics would advance customer
satisfaction research as well as be of great managerial significance.

148
APPENDIXES

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xvi
QUESTIONNAIRE

PART A: PERSONAL DETAILS


Notice of confidentiality: your participation in their survey is greatly appreciated. We
respect your right to confidentiality. Therefore your name and survey responses will
not released in any situation.

SECTION A: DEMOGRAPHICS

Kindly tick (√) in the appropriate column

1. Age 20-30 yrs

31-40 yrs

41-50 yrs

>50 yrs

2. Location Urban

Rural

Semi-urban

3. Gender Male

Female

4. Occupation Business

Employed

5. Annual <1 LPA


Income
1-5 LPA

5-10 LPA

>10 LPA

xvii
PART B: PURCHASE PATTERN AND CONSUMER BEHAVIOR

6. Most frequently purchased Fast Moving Consumer Goods (FMCG) product.

Tooth Bath soap Washing soaps & Food Beverages


paste & Detergents products
shampoos

7. Frequency of purchase of FMCG products

Daily Weekly Monthly Occasionally

8. Person who influence you the most

Friends Family members Retailers/Shops Others

9. Which product line of you prefer the most?

Cigarettes FMCG Agri- Personal Care Life


business Retailing

Safety Hotels Paperboards Information Education


Matches & Papers & Technology &
Incense Sticks Packaging Stationary

10. Source of information about products/offers (Kindly tick √)

T.V Radio News paper Others

11. Preferred Location of purchase

Online Shopping Mall Kirana Store Others

xviii
12. Main factors which influence the purchasing of fast moving consumer goods
(FMCG) products

Price Quality Publicity Sales Attractive Others


promotion packaging

13. Most influencing Promotion Method to buy Product

Advertising Sales Personal publicity Combination of all


promotion selling these

Strongly No Strongly
14. Tick (√) in the appropriate Agree Disagree
Agree Idea Disagree
column
5 4 3 2 1

Satisfied with the promotion


and services

Satisfied with the present


motivational methods

xix
PARTC: INFLUENCE OF MARKETING STRATEGY ON CONSUMER
BEHAVIOR

15. Rate the FMCG Companies Very high High Neutral Low Lowest
on Following. 5 4 3 2 1

Price

Product differentiation

Availability

Promotion

16. Attitude towards Product Strongly Agree No


Disagree
Strongly

Attributes. Tick (√) in the Agree Idea Disagree

appropriate column 5 4 3 2 1

Attractive Packaging size

Product availability & credibility

Product attributes like Fragrance,


healthy, and composition

Personal experience from usage

Overall, I am satisfied with


product strategies

17. Attitude towards Pricing Strongly Agree No


Disagree
Strongly

Policy. Tick (√) in the appropriate Agree Idea Disagree

column. 5 4 3 2 1

xx
Pricing policy of FMCG
companies focuses on
affordability

Customer perceive quality from


price

Companies provide attractive


offers

Companies give attractive


seasonal and festival discounts

Overall, I am satisfied with


product pricing strategies

Strongly No Strongly
18. Attitude towards Promotion. Agree Disagree
Agree Idea Disagree
Tick (√) in the appropriate column
5 4 3 2 1

FMCG advertisements should


reach to the audience in time
Advertisements are must for
FMCG products and awareness
among consumers
Endorsements with celebrity
impact buying
All type of FMCG products
advertisements have direct impact
on the cost of the products
FMCG advertiser cheats in their
advertising.

xxi
The FMCG products
advertisement should be easily
understandable.
Overall, I am satisfied with
promotion strategies.

19. Attitude towards Product Strongly Agree No


Disagree
Strongly

Availability. Tick (√) in the Agree Idea Disagree

appropriate column 5 4 3 2 1

FMCG products are easily


available to your near stores
Companies ensure timely delivery
of products to customers.
General Physical Distribution
Services are good.
Companies are responsible for
their distribution.
Overall, I am satisfied with
product placement strategies.

20. Overall, I am satisfied with Company marketing strategies of FMCG products.


Strongly Disagree Disagree No Idea Agree Strongly
Agree

Any additional information/suggestion you would like to provide which will add
value to this exercise.

Thank you again for your response!

xxii
International Journal of Research in Management & Social Science
ISSN - 2322 – 0899
MEASURING THE IMPACT OF MARKETING
STRATEGY ON CONSUMER PERCEPTION
Dr. Anil K. Bhatt1, Anil Jain2
1. Professor, Pacific Institute of Business Studies,Udaipur-Rajasthan.
2. Research Scholar, Pacific Institute of Higher Education and Research University, Udaipur.
ABSTRACT
The purpose of this research is not to construct a fresh theory, but to investigate the
research questions and fulfill research objectives based on empirical research and
secondary data. Furthermore, in this thesis, we will generate hypotheses from theories
and then, we will use empirical research data to test the hypotheses. The area of
research is the analysis of consumer‘s opinion on the marketing mix strategies of
FMCG companies.
This research enable the retail stores to gain insight into future industry trends that
will affect its business, get data and analysis in the most cost-effective and flexible
way and draw on essential information without being overwhelmed by unnecessary
detail.

Keywords: Marketing Strategy, Consumer, Perception.

xxiii
Galaxy International Interdisciplinary Research Journal
ISSN 2347-6915
MEASURING THE IMPACT OF MARKETING STRATEGY ON
CONSUMERS OF UDAIPUR CITY
Dr. Anil K. Bhatt1, Anil Jain2
1. Professor, Pacific Institute of Business Studies,Udaipur-Rajasthan.
2. Research Scholar, Pacific Institute of Higher Education and Research University, Udaipur.

ABSTRACT

Retailers need to generate a pool of information in order to introduce products and


services that create value in the mind of customer. The value of what the customer
perceived is a subjective one, the attributes that create value cannot simply be
deducted from common knowledge. Rather, data must be collected and analyzed. The
purpose of this marketing research is to provide the facts and direction that managers
need to make their more important marketing decision.
The marketing mix is defined as 4P‘s namely the product, price, promotion and place.
They are often designed to influence consumer decision-making and lead to profitable
exchanges. Each element of the marketing mix can affect consumers in many ways.
The strength of this research lies on its specific focus on the connection between the
customer‘s satisfaction with the international marketing mix model, the four Ps and
benchmarking. This research also underlines the impact of customer buying behaviour
base on the company quality policy.

Keywords: Marketing Strategy, Consumer, Perception.

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