International Journal of Research in Social Sciences

Vol. 6 Issue 12, December 2016,

ISSN: 2249-2496 Impact Factor: 7.081
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IMPACT OF ADVERTISING ON CONSUMER

BEHAVIOUR WITH SPECIAL REFERENCE TO FAST
MOVING CONSUMER GOODS

Dr. R. Renuka, M.Com., MBA, M.Phil., Ph.D., NET*

ABSTRACT
Now- a -days consumer are kings in the market. The study of consumer behaviour is the study of
how individuals make decisions to spend their available resources-money, time and effort-on
consumption-related items. FMCG is Products which have a quick turnover, and relatively low
cost are known as Fast Moving Consumer Goods. In recent years, the fast moving consumer
goods sector (FMCG) is witnessing increased use of sales promotion activities all over the world.
Both primary and secondary sources of data were used. Well structured schedule was designed to
elicit necessary data. The primary data have been collected through questionnaire which was
distributed to 150 respondents.

KEY WORDS: Advertisement, Consumer behavior, Consumer expectation, FMCG, Level

of influence.

*
Asst. Prof. Department of Commerce and Mgmt. Studies,SASTRA University, SRC,
Kumbakonam.Tamil Nadu, India

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INTRODUCTION
Marketing as a functional area of management is becoming increasingly important as compared
to other fields, viz., production, finance, personnel, and research and development. The
increasing significant of marketing is the major reason that marketing information has gained the
(major reason that marketing) present pivotal place of importance. All decisions in modern
business organizations revolves around the marketing information In modern business
organizations finance, personnel, production and research & development may be the door to
success but marketing is the key which turns the lock. Consider any business decision, we find
that the critical input needed for this purpose the marketing information. This information can be
collected and utilized using marketing research techniques.

Consumer/Buyer behaviour is that subset of human behaviour that is concern with decisions and
acts of individuals in purchasing and using products. Consumer behaviour is a subset of
customer’s behaviour, is concerned with decision that lead up to the acts of purchase.

Fast Moving Consumer Goods

Fast Moving Consumer Goods (FMCG) are all consumable items (other than groceries/pulses)
that one needs to buy at regular intervals. These are items which are used daily, and so have a
quick rate of consumption, and a high return. FMCG can broadly be categorized into three
segments which are:

1. Household items as soaps, detergents, household accessories, etc.

2. Personal care items as shampoos, toothpaste, shaving products, etc. and finally
3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi,
Gillette etc.

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FMCG VS INDUSTRIAL MARKETING:

FMCG INDUSTRIAL MARKETING
Product driven Relationship driven

Maximize value of transaction Maximize value of relation

Large target market Small focused market

Single step buying process shorter sales cycle Multiple buying process larger sales cycle
Emotional buying decision based on status, Rational buying decision based on business
desire or price value

ECONOMIC CONTRIBUTION:
Employment
Direct employment is estimated at approximately 6% of turnover, i.e., US$ 1.5 billion
(Rs.7000crores). Approximately 12-13 million retail stores in India, out of which 9 millions are
FMCG. Thus the sector is responsible for the livelihood of almost 13 million people.
Fiscal contribution
Cascading multiple taxes by the FMCG sector (import duty, service tax, and income tax) 30%
revenue of sector goes into both direct and indirect tax, estimated size of $ 25 billion that would
constitute a contribution to the exchequer of approximately US$6.5 billion.
Social contribution:
Create employment for people with lower education qualifications. FMCG firms have also
undertaken some specified project to integrate with upcountry and rural area for both inputs and
for distribution as well as to fulfill.
Packaging Industry
The packaging industry for the FMCG sector alone is worth US$2.9 billion, and is expected to
growth faster due to the growth of private label FMCG product
Media Industry
The media industry has lot to gain from the FMCG sectors. Around 40% of media industry
earning from advertising (US$5 billion) are estimated to come from the FMCG sector, a
contribution of US$ 2 billion.

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Tourism Industry
Penetration of familiar brands across the length and breadth of the country provides
comfort and reassurance of quality to both domestic and international tourists.

REVIEW OF LITERATURE
1. AshishMathur in his article titled “Impact of FMCG products sales variables on
consumer satisfaction (2011): Sales promotion has become important with the changing times.
Sales promotion has becomes style statement for the educated customers. Consumer preference
for the sales promotions are becoming complicated because of the changing attitudes and trends
of the customers. Customer is the basis for the survival of the industry because the sales
promotion and are product sales variables have to appeal to the buyers.
2. Dr. Vibhuti Dr. Ajay kumartygai, vivekpandey in their article titled is “A case study
on consumer buying behavior towards selected FMCG products” The consumer behaviour
plays an important role in market of fast moving consumer goods. This behavior is affected by
various factors. In the present era of globalization needs and wants of consumers changes with
time. The Fast Moving Consumer Goods (FMCG) sector contributes a lot to the growth of
India’s GDP. Therefore it is necessary to identify the changes in consumer buying behavior
towards FMCG, products. However affectof place, price, promotion, physiological factors also
differ from products to products.
3. Firoozeh Fouladivanda, Maryam AminiPashandi, AlirezaHooman, Zahra Khan
mohammadi in their article titled is “The effect of Brand Equity on consumer buying
behaviour in term of FMCG” (2013): This quantitative research targets consumer behavior in
purchasing Fast Moving Consumer Goods (FMCG) in term of brand of products. For this
purpose four elements as brand equity’s components were identified that has potential affect
purchasing FMCG, and they are brand awareness, Brand association, perceived quality and
brand loyalty. At the end results showed the highest impact on consumer purchasing behavior
refers to brand loyalty.

STATEMENT OF THE PROBLEM

Modern day’s consumers are king in the market. The producers are manufacturing the goods
according to the tastes and preferences of consumers. To attract the consumer promotional

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 ISSN: 2249-2496Impact Factor: 7.081

activities are one of the important aspects. Among this the researcher has taken Fast Moving
Consumer Goods which are advertised in Television. Because the studies in Fast Moving
Consumer Goods is less, but it is required to study the problem of consumer used Fast Moving
Consumer Goods.
OBJECTIVES OF THE STUDY
1. To know the level of influence about the Fast Moving Consumer Goods.
2. To find customer expectation about Fast Moving Consumer Goods.

HYPOTHESES OF THE STUDY

The following null hypotheses are framed by the researcher for analyze the data
1. There is no significant difference between Educational qualification and Familiar
celebrity.
2. There is no significant difference between Gender and Preferred media for advertisement.

SAMPLING TECHNIQUE:
A sample of 150 respondents is chosen. Convenience sampling technique used to
collect the data. The study is on the basis of the primary information provided by the
respondents. Percentage analysis, Chi-square test are used for the purpose of data analysis and
interpretation.

TABLE 1
DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS
Particulars Frequency percentage

Below 20 years 54 36.0

21 to 30 years 72 48.0
31 to 40 years 13 8.7
Age Above 40 years 11 7.3
Male 45 30.0
Gender Female 105 70.0
Student 65 43.3

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Housewife 21 14.0
Occupational Employed 44 29.3
status Business 20 13.3

School level 30 20.0

Degree or Diploma 70 46.7
Educational Post Graduates 34 22.7
Qualification Professionals 16 10.7

Up to Rs.5,000 20 13.3
Family Rs.5000-Rs.10000 40 26.7
Monthly Rs.10000-Rs.20000 43 28.7
Income Above Rs. 20,000 47 31.3

Source: Primary Data

Table 1 highlights demographic characteristics of respondents 48% of the respondents
age are 21 to 30 years, 70% of the respondents are female, 43% of the respondents were students,
47% of the respondents were degree holders, 31% of the respondents monthly income is above
Rs.20,000.

TABLE 2
ADVERTISEMENT ON PURCHASE DECISION
Particulars No. of respondents Percentage
Strongly agree 28 18.7
Agree 60 40.0
Neutral 26 17.3
Disagree 27 18.0
Strongly disagree 9 6.0
Total 150 100.0
Source:Primary Data

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Table 2 shows that majority of the respondents (40%) are agree the advertisement on purchase
decision. The least respondent (6%) are strongly disagree the advertisement on purchase
decision.
TABLE 3
EDUCATIONAL QUALIFICATION AND FAMILIAR CELEBRITY
Educational Familiar celebrity Total
Qualification Film star Sports Social
star worker
School level 18 6 6 30
Degree or diploma 29 20 21 70
Postgraduates 23 7 4 34
Professionals 7 4 5 16
Total 77 37 36 150

Table 3.13 shows that out of 150 respondent; 30 respondents are school level in that most of the
(18) respondents are like film stars, 6 respondents like sports star, 6 respondents like social
worker. 70 respondents are degree or diploma, out ofthis29 respondents like film stars, 20
respondents like sports stars and 21 respondents like social workers. 34 respondents are
Postgraduate level. The most of the PG respondents like film stars. The maximum number of (7)
professional respondents are like film stars. Thus most of the respondents prefer film star
advertisements.
Chi-square test:
The researcher wishes to know that there is any relationship between the educational
qualification and Familiar celebrity.
Null Hypothesis:
There is no significant relationship between Educational Qualification and Familiar celebrity.
Chi-square Tests
Values Df Sig.
Person chi-Square 8.367 6 .212
Likelihood Radio 8.698 6 .191

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Linear-by-linear Association .017 1 .898

N of Valid Cases 150
Result:
The table value is 12.59 and calculated value is 8.367. So table value is higher than the
calculated value accept H0. There is no significant relationship between Educational qualification
and Familiar celebrity.
TABLE 4
GENDER AND PREFERRED MEDIA FOR ADVERTISEMENT
Gender Preferred media for advertisement Total
Print Radio Television Word of mouth
Male 5 3 29 8 45
Female 9 18 60 18 105
Total 14 21 89 26 150
Source: Primary Data
Table 4 shows that out of 150 respondents; 45 respondents are male among these 5 respondents
intension are Print media; 3 respondents intension are radio; 29 respondents intension are
television and 8 respondents intension are word of mouth. 105 respondents are female; Among 9
respondent’s intensions are print media; 18 respondents intension are radio; 60 respondents
intension are television and 18 respondents intension are word of mouth.

Chi-square test:
The researcher wishes to know that there is any relationship between the gender and media gets
your intension.
Null Hypothesis:
There is no significant relationship between Genders and Media gets your intention.
Chi-square Tests
Values Df Sig.
Person chi-Square 2.977 3 .395
Likelihood Radio 3.336 3 .343
Linear-by-linear Association .172 1 .679
N of Valid Cases 150

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Result:
The table value is 7.82 and calculated value is 2.977. So table value is higher than the calculated
value accept H0. There is no significant relationship between Genders and Media gets your
intention.

TABLE 5
FACTORS DETERMINE ADVERTISEMENT

Some times
Particulars

Always

Never
Television advertisement influence to buy a specific 49 88 13
brand
Switched over to other from watching television 51 80 19
advertisement.
Good advertisement poor performance disappointed 61 56 33

Television advertisement create positive impact 52 75 52

Television advertisement change your life style 42 47 61

Advertisement Break down the difference in culture 63 70 17

among country
Recommend any brand to others from watching 56 60 34
television advertisement.
Advertisement Create unwanted desired among 35 86 29
customer
Compared your belonging with other from watching 54 63 33
television advertisement
Advertisement help to increase the sales of the brand 72 61 17

Television advertisement help to compare the brand 65 68 17

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Source: Primary Data

Table 5 shows that various factors determine advertisement. Most of the respondents are says
that television advertisement influence to buy a specific brand. Advertisement always helps to
increase the sales of the brand. Out of 150 respondents; 68 respondents told that television
advertisement help to compare the brand.
TABLE 6
LIKERT SCALE

times
Particulars

Always (3)

Never (1)

Values
Some

Rank
Total
(2)
Television advertisement 49 88 13 150 0.946 4
influence to buy a specific brand (147) (176) (13) (336)
Switched over to other from 51 80 19 150 0.935 5
watching television (153) (160) (19) (332)
advertisement.
Good advertisement poor 61 56 33 150 0.924 7
performance disappointed (183) (112) (33) (328)
Television advertisement create 52 75 52 150 0.927 6
positive impact (156) (150) (52) (329)
Television advertisement change 42 47 61 150 0.791 11
your life style (126) (94) (61) (281)
Advertisement Break down the 63 70 17 150 0.974 3
difference in culture among (189) (140) (17) (346)
country
Recommend any brand to others 56 60 34 150 0.907 8
from watching television (168) (120) (34) (322)
advertisement.
Advertisement Create unwanted 35 86 29 150 0.861 10
desired among customer (105) (172) (29) (306)

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Compared your belonging with 54 63 33 150 0.904 9

other from watching television (162) (126) (33) (321)
advertisement
Advertisement help to increase 72 61 17 150 1 1
the sales of the brand (216) (122) (17) (355)
Television advertisement help to 65 68 17 150 0.98 2
compare the brand (195) (136) (17) (348)

Source: Primary Data

Table 6 shows that various factors determine advertisement. First rank is advertisement helps to
increase the sales of the brand. The second rank is television advertisement help to compare the
brand, third rank is advertisement break down the difference in cultural among country. The
fourth, fifth and sixth ranks are Television advertisement influence to buy a specified brand,
switched over to other from watching television advertisement, and television advertisement
create positive impact respectively. The seventh rank is good advertisement poor performance
disappointed and eighth, ninth, tenth and eleventh ranks are recommend any brand to other from
watching TV advertisement, compared your belonging with other from watching television
advertisement, advertisement create unwanted desired among customer, television advertisement
change your life style respectively.

FINDINGS:
1. Most of the respondents are (40%) agree advertisement influence on purchasing decision.
2. Majority of the respondents (133) are told that advertisement is important.
3. Thirty nine percent of the respondents reason for purchase the product, variety of the
product in preferred store.
4. Majority of the respondents (46%) are told that slogan of the advertisement helps to recall
the brand.
5. Many of the respondents like film stars advertisement.
6. Many of the respondents like that rational appeal in television advertisement.
7. Majority of the respondents (32.7%) are self-test the good quality product.
8. Most of the respondents (59.3%) preference for advertisement is television.

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9. Maximum number of respondents (72) are told that advertisement help to increase the
sale of the brand.

SUGGESTIONS
1. The advertiser further increase the advertisement of Fast Moving Consumer Goods it will
increase the sales.
2. The manufacturers introduced all type of celebrity to advertise their products.
3. Manufacturers advertise their goods in all Medias. It will attract the customers.
4. The advertisers advertise the Fast Moving Consumer Goods to attract all type of
customers.
5. The advertisers advertise the products with slogan, celebrity, jingle it is help to recall the
brand.
6. Most of the respondents are female they are regularly watch television advertisement. So,
the manufacturers advertise more products through television advertisement.
7. The customers prefer quality oriented in recent days. They are ready to pay more for
quality goods. So, the manufacturers give quality goods at reasonable rate.
8. Customers are open to accept changes to the changing trend.
9. Customers are satisfied with the performance of the brand they may recommended by
others.

CONCLUSION:
In the modern world most of the female customers are working people. They want FMCG,
because they earn more money and spent it for their convenience. Advertisement helpful to the
consumer to buy new and necessary products. Most of the consumers are unaware about FMCG
products. If the manufactures advertise their products through various media and use various
type of celebrity to their advertisement it will definitely attract the consumers. Now a day’s most
of the consumers are television viewers. So, it is helpful for the advertiser to advertise their
products through television. It will definitely increase their sales.

677 International Journal of Research in Social Sciences

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REFERENCES
1. Consumer behavior, Nair, Banerjee, Agarwal Published by k.k.Mittal,2007
2. Marketing management, S.A.Sherlekar Published by Himalaya Publising house,2003
3. Advertising Management, Rajeev Batra, John G.Myers, Published by Himalaya
Publising house 2004.
WEBSITES
1. www.wikipedia.com
2. http://www.allprojectreport.com

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