KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

INSTITUTE OF DISTANCE LEARNING

DEPARTMENT OF MARKETING

Name:

(20)

JANUARY 2023

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 Discuss the factors customers consider in choosing fast moving consumer goods

Introduction

Consumers are the end-use of an item or service manufactured or rendered by a firm (Knoeri
et al., 2016). A few qualities influencing consumer behaviour that has been distinguished in
the cutting-edge business world. Setó-Pamies (2012) suggest that consumer satisfaction and
repeat buys are vital for firm success. While choosing a reasonable market fragment for a
product, the firms ought to conduct a legitimate examination of consumer behaviour in that
specific market segment. Qualities influencing consumer behaviour are external features that
make a wild effect on the product or service (Jisana, 2014). The firm has zero power over the
attributes. They basically need to change the product qualities to be in accordance with
consumer behaviour.

Culture

Culture is one of the principal qualities that shapes the behaviour of consumers in a specific
arrangement of individuals in a specific identity or a geological region (De Mooij, 2019).
Since culture is the most essential justification for an individual's needs and desires, culture
can assume an immense part in expanding the piece of the pie or diminishing the market
share. This has a psychological value where the individuals will quite often purchase the item
on the off chance that they accept it makes a positive social advantage (Nayeem, 2012). Then
again, individuals will more often than not reject an item assuming their social conviction is
against that product.
Subculture

Ramya and Ali (2016) argue that each culture has a few subcultures to it. Subcultures are a
bunch of individuals who share normal qualities in view of comparative kinds of life
encounters. Subcultures incorporate racial groups, age groups, ethnicities, and religions.
Numerous subcultures help to make market segments for the firms and the firms offer
explicitly planned array of products to satisfy the entire customer segment if they are
providing to a large market segment.
Social Class

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Social class is another division in a society based on the people who share similar values,
behavior, and interests. Social class is determined by several factors such as income,
occupation, wealth, education and other factors. When producing a product or selecting the
best market segment for the product, organizations thoroughly evaluate the social class as it is
one factor that decides the consumer buying power (Lantos, 2015).

According to Schiffman et al., (2013) in certain social classes, purchasing certain prestige
products are considered necessary to maintain the social class. Certain products are aimed for
a particular social class as that product is most suitable for that class or maybe only that class
has the ablest to afford the product. The organization needs to identify which social class can
purchase the maximum number of products to maximize the organization’s market share. The
product categories who are mainly concerned about the social class are clothing, automobile,
travel and leisure, and home furnishing products.

Fast moving consumer goods (FMCG)

Solomon et al., (2012) assert that fast moving consumer goods (FMCG) are everyday
products that consumers purchase frequently and in bulk. Factors that customers consider
when choosing FMCG products include price, quality, convenience, brand, and packaging.
They are nondurable products that sell quickly at relatively low cost. They also have low
profit margins and high-volume sales (RAJALAKSHMI and DEVI, n.d).

Consumer goods are products purchased for consumption by the average consumer. They are
divided into three different categories: durable goods, nondurable goods, and services
(Srivastava and Sharma, 2013). Durable goods have a shelf life of three years or more, while
nondurable goods have a shelf life of less than one year. Fast-moving consumer goods are the
largest segment of consumer goods. They fall into the nondurable category, as they are
consumed immediately and have a short shelf life (ibid).

More than half of all consumer spending goes towards Fast Moving Consumer Goods
(FMCGs), despite the fact that these products tend to be low-involvement purchases (Morel
and Kwakye, 2012). People are more likely to boast about a durable item such as a car or a

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flashy smartphone than a GHC 4.50 energy drink picked up from the local convenience store.
The FMCG market is both hugely expansive and highly competitive, with some of the
world's most renowned companies vying for market share; these include the likes of Coca-
Cola, Unilever, and Nestlé. As such, FMCG producers need to focus on marketing their
goods to entice and encourage consumers to make purchases. They sold FMCGs in large
quantities, so they provide a steady stream of revenue. This volume of sales offsets the low
profit margins on individual sales. As investments, they usually see FMCG stocks as low-
growth but safe bets with consistent margins, solid returns, and regular dividends (Chou et
al., 2020).

When selecting consumer goods, there are several factors to consider (Ramya and Ali, 2016).

Price:

Faith (2018) argue that price is a major factor that can influence a customer’s decision and
help them decide which fast moving consumer goods to purchase. For instance, when
deciding on which brand of car to buy, a customer might compare the cost of a generic brand
versus a name brand. It is normal for consumers to weigh cost against value, looking to buy
goods that are of good quality at a reasonable price. Customers want to get the most value for
their money, so they will compare prices of different brands and products to find the best deal
(Kanyoro 2018).

Customer attitudes

Customer attitudes can have a significant impact on the way customers consider choosing
fast-moving consumer goods (Sarker and Rahman, 2017). Generally, customers who have a
positive attitude towards a product will be more likely to purchase it, whereas those with a
negative attitude may be less likely to buy it. Additionally, customer attitudes can influence
how a customer perceives the value of a product. If a customer sees a product as valuable,
they may be willing to pay a premium price. However, if a customer does not see the product
as valuable, they may opt for a cheaper alternative. Additionally, Rahman et al., (2021)
customer attitudes can shape the way customers view a brand. If customers have a positive
view of a brand, they may be more likely to purchase its products. Conversely, if customers
have a negative view of a brand, they may be less likely to purchase its products.

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Product:

Customers will consider factors such as the quality and features of the product, as well as the
availability of different sizes and varieties. They may also consider the brand and value for
money offered by the product (Ullah and Prince, 2012).

Promotion
Promotion can play an important role in influencing customers when it comes to choosing
fast-moving consumer goods (Sudaryanto et al., 2019). For example, when a customer is
considering whether to buy a new brand of cars, a promotional offer may sway them such as
a buy one get a discount deal. Another example of how promotion can affect a customer’s
decision is when a new product is launched. For example, if a new type of snack food is
released, the company might run a promotional campaign offering free samples or coupons to
encourage customers to try it. This could be enough to sway a customer into selecting the
new product over other brands. Finally, Kundu(2013) argue that promotional activities such
as loyalty programs or point systems can help to create brand loyalty. For example, if a
customer collects points each time they make a purchase, they are more likely to continue
buying from the same brand in the future. Overall, promotion is a powerful tool for
influencing customer decisions when it comes to fast-moving consumer goods. By offering
discounts, free samples, loyalty programs and other incentives, companies can encourage
customers to select their product over the competition.

Convenience:

Convenience is a factor that customers consider when choosing fast moving consumer goods.
Customers want to be able to quickly purchase the items they need, without having to go
through a long and complicated process (Dube and Hoque, 2020). Customers also value
convenience when it comes to payment methods, delivery, and even the look and feel of the
product packaging. Also, convenience is a key factor for customers when considering which
fast moving consumer goods to purchase.

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Brand: Customers want to be sure that the product they are purchasing is of high quality,
reliable, and trustworthy. According to Variawa (2010) they will often look for brands that
have a good reputation and a long history of delivering quality products. Customers also want
to know that the company behind the product is dependable and stands behind their product.
Additionally, customers may look for brands that are known for their commitment to
sustainability and social responsibility.

Conclusion

Fast-moving consumer goods (FMCG) are products that are purchased frequently and quickly
by customers. Examples of FMCG products include food and beverage items, household
cleaning supplies, toiletries, and health and beauty products. These products have a direct
impact on customers’ decision-making when choosing which items to purchase. For example,
customers may be more likely to purchase a product if it is packaged in an attractive or eye-
catching manner. The size and shape of the packaging can also influence a customer’s
decision. If a product is packaged in a small, convenient size, customers may be more likely
to purchase it due to its portability. Additionally, customers may be more likely to purchase a
product if it is priced competitively and provides good value for money. Customers may also
be influenced by the product’s availability, with convenience stores and supermarkets often
stocking a wide variety of FMCG items. Finally, customer reviews and brand loyalty can also
factor in when customers are considering which FMCG products to purchase. If customers
have had positive experiences with a particular brand, they may be more likely to stick with
that brand, while negative reviews can have a negative effect on customer purchasing
decisions.

References

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