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International Journal of Techno-Management Research, Vol.

01, Issue 02, September 2013 ISSN: 2321-3744

Customers Perception towards the Fast Moving Consumer Goods in Rural Market: An Analysis
Dr. Surinder Singh Kundu Assistant Prof. & Incharge, Department Of Commerce, Chaudhary Devi Lal University, Sirsa

Abstract A consumer sets a frame of references in his/her mind to choose or purchase a product or service of same or different brands or producers. Keeping in view the frame of references the present paper is an attempt to study the factors affecting the purchase decision of consumers towards purchase of the Fast Moving Consumer Goods (FMCGs) and to recommend the policies which may be adopted by the advertisers to enhance awareness among the rural buyers. The study used primary data collected from a sample of 1000 rural consumers from the 40 villages of 04 districts of Haryana state with the help of a well-structured questionnaire by following Foot-in-Door Strategy (FIDS). And found that rural buyers perceived that TV commercials followed by print advertisements and word of mouth plays a significant role for taking the decision to purchase these FMCGs. Further, they consider their own experience, display at shops; incentive schemes for the purchase of these FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards the purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are no so strong that those may influence their decision to purchase these FMCGs. Hence, it may be recommended that the producers or marketers should frame ethical advertising strategies keeping in mind that rural people are fond of electronic and print media advertisements. Key Words: Frame of References, Foot-in-Door Strategy, FMCGs. Introduction As we know, consumers have different frame of references formed out of the information gathered from their experience. They try to fit the goods and services in these frames of references. If they do not fit they reject the things. Many of these reference points are subconscious because they are deeply imbedded in the subconscious mind. It is important to have knowledge of assumptions and beliefs held by consumers. Some consumers may use price as an index of quality. They may declare a product or service as cheap if it sells at a price substantially below the level at which competitive brands are selling. Consumers make a number of assumptions regarding products, services and producers often without fact, e.g. the beer in pastel colour bottles is thought to be lighter and beer in the coloured bottles is considered stronger. Similarly, natural fabrics e.g. wool are considered better that synthetic; and the products
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

produced in one country are considered superior than produced in other country. Attributes and beliefs are closely related to attitude but harder to change than attitudes. Many times, they are obtained from previous generations and are implanted in an early age of person. People above certain group affiliations and their assumptions and beliefs are drawn from affiliations as in the case of a social class (Sumathi, et al., 2003). REVIEW OF LITERATURE Sukato and Elsey (2009) examined the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzens theory of reasoned action model is employed as a theoretical framework and modified by adding the self-image construct. The results of the study confirm that beliefs, self-image, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers and therefore, the modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting. Vani, et al. (2010) examined consumer behaviour in Bangalore city regarding toothpaste bands and found that consumer awareness of toothpaste is less in Bangalore city. Oral care market offers huge potential as penetration and per capita consumption of oral care product is very low in India. Further, the study found that brand image, advertising and offer play an important role in purchasing toothpaste, sometimes based on the offer the consumer compare with competitor product and select the best one. Product attribute also analyzed by the consumer for deciding a brand. Switching of one product to other company product is mainly based on advertisement, brand name, packaging availability and price rise. Sridhar and Mishra (2010) analyzed that the rationale and method for studying product adaptation in rural markets and concluded that the findings of the study are contrary to the general understanding that rural is perceived very differently and hence operationalized differently by different organization. However, the results show that contingency theory holds true in case of product adaptation in rural markets also. With the increase in executives representation of rurality, product adaptation degree also increased. Gautam and Gangal (2011) analyzed the factors responsible of the boom in rural marketing, consumers preference for FMCG products based on 4 As (i.e. Awareness, Affordability, Adoptability and Availability) by employing convenient sampling method for administering the questionnaires using Liker Scale to total 200 respondents of HUL & ITC in rural areas of Agra district from January 2011 to June 2011. The study found that skincare and fragrance have been found as the prime reasons for using
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

bathing soaps (personal wash) and consumers buy detergent due to its primary function for cleanliness and few purchase it for its fragrance. The cleanliness followed by freshness has been the primary motives to purchase toothpaste (oral care) and some consumers also purchase it for protection of gums and whiteness value. The consumers purchase hair oil for hair care and good looks. The study also found that the factors influencing the purchase decision of the respondents, consumers buying are influence the most by the product factor due to design, quality, durability, made from safe environment and product range but few respondents are not satisfied with the packaging, image and size of the product. Both the companies are almost on the same platform regarding the factors of competitive price, shape, design, Haats and mandis and message/languages/ presentation of advertisement. The consumers are showing their dissatisfaction for malls and super markets, greater mobility, shop is conveniently situated, and product display is attractive, value for price paid, cash discount and pricing policy. Lastly, the study concluded that in parameters like, image, shape and size, packaging, durability, small size products, low priced sample packets, price scheme, celebrity endorsement and use of transport like autos, camel carts, HUL has an edge over ITC. Vernekar and Wadhwa (2011) examined the consumer attitudes and perceptions towards eco-friendly products in FMCG sector and their willingness to pay on green products. The study revealed that the green products have substantial awareness among urban Indian customers and they are willing to pay something more on green products. The majority of customers considered that package is most important element of such products. Chandrasekhar (2012) analyzed the consumer buying behaviour and brand loyalty in rural markets regarding fast moving consumer goods and found that brand loyalty is more in Badangpet and Nadergul region and less in Chintulla in soaps category. In hair oil category, branded products usage is more in Badangpet and Nadergul villages and consumer prefer to purchase local brands in Chintulla village. It is also found that Vatika and Navratan hair oils dominate in Badangpet, Parachute hair oil in Nadergul and Gograda local brand and Dabur in Chintulla. In case of Biscuits category, consumers mostly buy in loose, which are available in nearby shops like Salt biscuits, Osmania biscuits etc. Parle-G and Tiger are mostly used brands in Badangpet. Tea is purchased in loose, which is available in local shops. The popular brands Red Label, Three Roses and Gemini are used in Badangpet village. Further, the study found that coffee consumption is very less or no consumption in Nadergul and Chintulla villages. In case of washing powder, Nirma dominate all the three selected sample rural markets regions. In remote area like Chintulla, Nirma sell Rs. 1 sachets. In washing soap category, Rin, 501, Nirma, XXX and Extra
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Local Brand dominates all the three selected rural markets. It is also concluded that Ponds, Chintol and Santoor face powder dominated the market and Ponds has dominated the market in consumption in Badangpet. In sum, the study also found that male members of the family are alone going to buy consumer products and women are not interested in shopping and do not come out from their houses frequently. Jain and Sharma (2012) analyzed the brand awareness and customer preferences for FMCG products in rural market of Garhwal region. The study found that average awareness of the respondents in the rural market is approximately 75 per cent, 70 per cent, 72 per cent, 64 per cent and 73 per cent in case of shampoo, washing powder, soap, tea, toothpaste respectively, which infers that people in the rural market have on an average awareness about most of the products. In the shampoo category, the study found that the respondents give 1st rank to Pantene and last rank to Chik; in case of washing powder, 1st rank to Surf Excel and last rank to Nirma; to soap category, 1st rank to Dettol and last rank to Rexona; in case of Tea, 1st rank to Tata tea and last rank to Maharani tea and in category of toothpaste, 1st rank to Colgate and last rank to Cibaca which infers that advertising and marketing activities have major influences in choices of people in rural market. The study further found that among various factors like quality, price, easy availability, family liking, advertisement, variety, credit attributes of brand preference; the quality is the first preference in case of brand choices and rural people give least preference to variety and credit attributes. It is also concluded that there is a positive impact of media on brand preference of FMCG products among consumers. Jayswal and Shah (2012) analyzed the effect of some selected FMCG products television advertisements with commonly used negative emotional appeals on cognitive message processing style of Indian house wives. The study revealing different effect of different advertisement with negative emotional appeals derived that advertising creative aspect has considered most important and it has been truly said that what you say is equally important to how you say. Through varied hypothesis developed by the researcher, the findings is negative emotional advertising appeal makes the cognitive response positive, helps to form positive attitude and this increases the customer intention to buy the brand. The different advertising themes have difference in their effect on individual perception. Prajapati and Thakor (2012) examined the competitive and innovative promotional tools used by toothpaste companies in rural market and its impact on consumer buying behaviour in Gujarat. The study found that rural consumers are more concerned about the quality, brand name of the oral care products purchased by them. Further, it was also found that once the rural consumers found that certain
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

brands are suitable to them, they do not change it easily due to influence of friends or social groups and lack of availability of their usual brands. In toothpaste category, Colgate and Close-up are the most favorite brands. Price, promotional schemes, color and availability of the product are more influencing factor when they buy the toothpaste. Rural consumers are generally following the instructions of the retailers for buying the toothpaste and also consider the promotional scheme when buy the toothpaste and the prices off schemes are the most influencing scheme to them. When there are special discount and dentist suggest them to purchase the toothpaste they definitely purchase it. Ranu and Rishu (2012) analyzed the scope of Ingredient branding in creating sustainable differentiation advantage for FMCG companies. The results of the study revealed that careful planning must be done before entering into a relationship in order to maximize the benefits of any ingredient branding strategy. Along with the costs involved in forming and maintaining the alliance, and the opportunity cost involved for the partnering firm, the consumers quality sensitivity and their ability to evaluate quality must also be considered. Firms considering an ingredient branding strategy must also evaluate the customers perception toward each brand prior to the alliance. The perceived fit of the products as well as the brands must be understood, and the level of customer familiarity with each brand must be gauged. This will help marketers in developing a successful Ingredient branding strategy, which builds on the strengths of the partnering brands and generates additional value for the consumer. Mishra, et al. (2012) examined the major dimensions of consumers perception about the benefits they derive from different types of sales promotion schemes in durable goods and to build a framework showing the valid relationships among all types of multiple consumer benefits of sales promotion in consumer durables. This exploratory study is mainly based on field survey carried out in India. The findings indicate that consumers perceive factors like savings, higher product quality, shopping convenience categorized as utilitarian benefits and value expression, entertainment, exploration categorized as hedonic benefits as primary reasons for taking advantage of various sales promotion schemes. Vaishnani (2012) examined and measured brand equity perception with reference to sales promotion schemes for selected FMCG products and it is concluded that there is no significant difference between of brand equity perception among gender as one of the demographic variables. Apart from it, it is concluded that there is significant difference between brand equity perceptions among various employment status. Adding to it, it is clear that self employed consumers compare to not employed

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

consumers perceive sales promotion schemes less favorably. Furthermore, it is concluded that there is no significant difference between brand equity perception and educational qualification. Franco, et al. (2012) analyzed and focused on use of modern portfolio theory in price promotions, which have become a key component in the marketing mix of stimulating sales, particularly in the FMCG environment. The hypothesis of this study is that previous limitation of modern portfolio theory in marketing can be overcome through use of brackets of price promotion. This is proven through study of FMCG data and it is shown that price promotions can be optimized to improve return without increased risk. After, reviewing the existing literature it is observed that the above studies have considered different factors a lot. However, these studies not focussed upon the purchase decision behaviour of rural areas. Consequently, the present study entitled Customer Perception towards the Fast Moving Consumer Goods in Rural Market: An Analysis may be conducted.

Methodology and Objectives The present study is of exploratory, descriptive, pure and empirical in nature. The present research paper attempts to identify the factors affecting the purchase decisions of customers towards the purchase of FMCGs and to recommend the particular factors that should be considered most important for such type of decisions. To achieve the said objectives, only twelfth question item of the questionnaire (Total 16 question items) was used. The study used primary data collected with the help of a well-structured questionnaire by following Foot-in-Door Strategy (FIDS) (Malhotra, et al., 2010). Further, to analyze and interpret the data frequency distribution, mean, mode, percentage for exploratory data analysis and standard deviation (S. D.), correlation, F-test (ANOVA) and factor analysis were used for confirmatory data analysis. In the light of the above mentioned objective the following hypothesis was that the rural buyers do not significantly differ demographically towards factors influencing their purchasing decision for fast moving consumer goods (H1).

Sampling Plan The steps in the sampling design were as follows: Target Population: Elements: Male and Female Rural Buyers; Sampling Unit: Rural Buyer; Extent: Haryana State; and Time: May, 2011 to September, 2011.

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Sampling Frame: Map of Haryana State, Sampling Technique: Multi-Stage Sampling and Sample Size: 1,000 (04 districts x10 villages per district x 25 respondents per village). To confirm the sample size of 1,000 was adequate, calculations for sample size(n) determination by proportion were made as follows, using the maximum possible population variation (=0.5). The precision of D in the present study was 0.05 for a 95 percent confidence level (z=1.96). n=(1- )z2/D2 , n=(0.5)(1-0.5)(1.96)2/(0.05)2 =384.16 or 385 rounded to the next higher integer. Therefore, the 1,000 sample size may be considered more than sufficient (Malhotra, et al., 2010). In the present study, the sampling quota called for sampling rural buyers with 50:50 ratio to eliminate distortion and due to a non-representative gender ratio (Table 1). Hence, gender was the control dimension. In total, multi-stage sampling was used in the present study.

Data Preparation After the data collection, the data was prepared for the further analysis (Kundu, et al., 2013). A data file namely "UGC_F. No. 5-270(1)2009 (HRP)_MRP_Datawarehouse" was prepared which was viewed as an nm matrix of number and values, where n is the number of respondents or records and m is the number of variables or fields. In the present research paper, the twelfth question items data from the said data warehouse was used for analysis and interpretation.

Results and Discussion Table 2 gives a general understanding towards 36 factors affecting the purchase decision taken by rural buyers towards FMCGs under study. The response on these factors were collected from rural buyers on 5-point Likert scale from 5 for strongly agree, 4 for agree, 3 for neither agree nor disagree, 2 for disagree to 1 for strongly disagree continuum. The mean values of most of the variables are more than 3, which gives the inference that rural buyers admit that the above said factors certainly affect their decision regarding the purchase of all fast moving consumer goods. To test the appropriateness of factor analysis technique the correlation between the variables is checked and Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy statistic is also used for the same. The correlation matrix is a lower triangle matrix showing the simple correlation, r, between all possible pairs of variables included in the analysis. Being an identity matrix of population correlation matrix, all the diagonal terms are 1, and all off-diagonal terms are 0. The test statistics for Sphercity is based on a Chisquare transformation of the determinants of the correlation matrix. A large value of the test statistic
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

favours the rejection of the null hypothesis. Further, KMO compares the magnitude of the observed correlation coefficients to the magnitude of partial correlation coefficients. Small the value of KMO statistic indicate that the correlation between pairs of variables cannot be explained by other variables and the factor analysis may not be appropriate. Generally, a value greater than 0.5 is desirable for the test statistic. Here, it can be seen from Table 3 that the null hypothesis, that the population correlation matrix is an identity matrix, is rejected by Bartlett's Test of Sphericity. The approximate Chi-square statistic value is 22612.664 with 630 degree of freedom, which is significant at 0.05 level. The value of KMO statistic (.774) is also large (>0.5). Thus, factor analysis may be considered as appropriate techniques for analyzing the correlation matrix. The matrix constructed from the data obtained in form of the responses of rural buyers overall opinion about the factors influence their decision to purchase various FMCGs. Once, it has been determined that factor analysis is suitable for analyzing the data, an appropriate method must be selected. The approach used to drive the weight or factors score coefficients. The two basic approaches are principal component analysis (PCA) and Common factor analysis (CFA). In PCA, the total variance in data is considered. The diagonal of the correlation matrix consists of unities and full variance is brought into the factor analysis. PCA is recommended when the primary concern is to determine the minimum number of factors that will account for maximum variance in the data for use in subsequent multivariate analysis. Further, PCA may be carried out if the correlation for the variables contains at least two correlations of 0.30 or greater. The correlation matrix of 36 variables which were developed to know the overall opinion of rural buyers towards factors influence their decision to purchase FMCGs under study and it is found there are high correlations between the variables; therefore, it may be stated that factor analysis is appropriate. Further, it is found that 17 variables have the correlations above 0.30. Therefore, PCA method is used for extraction of variable for the component or factor concerned. The extraction communalities for each variable which is the amount of variance a variable shares with all the other variables being considered. It is also the proportion of variance explained by the common factors. In the Table 4, five factors have been extracted on the basis of prior knowledge to describe the relationships among variable in a best way. Further, the scree plot associated with this analysis is given in Exhibit 1. From the scree plot, a distinct break occurs at five factors. Finally, from the cumulative percentage of variance accounted for, it can be seen that five account for 50.835 per cent of the variance,
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

contributed by first component is 17.480 followed by second (9.914 per cent), third (8.257 per cent), fourth (7.740 per cent) and fifth (7.444 per cent) of total variance. The rotation was made by the most commonly used method i. e. varimax procedure. This is an orthogonal method of rotation that minimizes the number of variables with high loadings on a factor, thereby enhancing the interpretability of the factors. Interpretation is facilitated by identifying the variables that have large loadings on the same factor. That factor can be interpreted in terms of the variables that load high on it. For the purpose of interpretation, each factor was composed of variables that loaded 0.30 or higher on that factor. In case, where variables loaded 0.30 or above on two factors, each variable was assigned to the factor where it had the highest loading. The maximum of each row (ignoring the sign) indicates the respective variable belongs to the respective component (Table 5). After interpretation of the factors, Table 6 enlists the rating of factors on the basis of their importance and also depicts the results through ANOVA. It depicts that factor 3 is at the top by which rural buyers perceived that TV commercials ( =4.20) followed by print advertisements ( =4.18) and word of mouth ( =.95) plays a significant role for taking the decision to purchase these FMCGs. Further, they consider their own experience, display at shop, incentive schemes for the purchase of these FMCGs. Whereas, they do not fully agree that advice of beautician influence their decision towards the purchase of these FMCGs ( ==3.07). On the other hand, rural buyers perceived that social factors are no so strong that those may influence their decision to purchase these FMCGs (factor 5, =3.084). As far as F-statistics (ANOVA) is concerned, Table 6 shows that rural buyers significantly differ education, gender, income and occupation-wise towards cultural and psychological factors; age, education marital, income, occupation and district-wise towards social factors and marital status wise they differ towards demographic factors which may influence their purchasing decision of fast moving consumer goods at 0.01 significance level with respective degrees of freedom of demographic characteristics of the rural buyers by rejecting null hypothesis.

Concluding Remarks In total, it is found that rural buyers perceived that TV commercials followed by print advertisements and word of mouth plays a significant role for taking the decision to purchase these FMCGs. Further, they consider their own experience, display at shops; incentive schemes for the purchase of these FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards the purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are no so strong
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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

that those may influence their decision to purchase these FMCGs. Therefore, it may be recommended that the producers or marketers should frame ethical advertising strategies keeping in mind that rural people are fond of electronic and print media advertisements. References 1. Chandrasekhar, B. V. N. G. (2012), Consumer buying behaviour and brand loyalty in rural markets: FMCG, IOSR Journal of Business and Management, Vol. 3, Issue 2, pp. 50-67. 2. Franco-Laverde, J., Littlewood, A., Ellis, C., Schraner, I., and Varua, M-E, (2012), FMCG portfolio budget allocation to price promotions using modern portfolio theory, International Review of Business Research Papers, Vol. 8, No. 5, pp. 16-30. 3. Gautam, N., and Gangal, V. K. (2011), Consumers preference for FMCG products in rural India: a comparative study of HUL & ITC, APOTHEOSIS: Tirpudes National Journal of Business Research, Vol. 2, Issue 1, pp. 115-123. 4. Jain, A., and Sharma, M. (2012), Brand awareness and customer preferences for FMCG products in rural market: an empirical study on the rural market of Garhwal region, VSRD International Journal of Business & Management Research, Vol. 2, No. 8, pp. 434-443. 5. Jayswal, M., and Shah, K. (2012), A study of effect of negative emotional appeals on cognitive message processing style of Indian house wives with specific focus on FMCG products television advertisements, Asian Journal of Research in Business Economics and Management, Vol. 2, Issue 3, pp. 58-72. 6. Kundu, Surinder Singh and Kumar, Vinod (2013). Modes of Advertisements Used by Rural Populace: An Empirical Study, In Kundu, Subash C., Punia, Bijender K., Shabnam Saxena, Suresh K. Mittal and Anjali Gupta (Eds.), Researches in Business and ManagementAcademic and Professional Perspective, Delhi: Wisdom Publications, p. 404. 7. Malhotra, Naresh K. and Dash, Satyabhusan. Marketing Research-An Applied Orientation. 6th ed. (New Delhi: Pearson Education, Inc. 2010), pp. 591-601. 8. Mishra, U. S., Das, J. R., Mishra, B. B. and Mishra, P. (2012), Perceived benefit analysis of sales promotion: a case of consumer durables, International Research Journal of Finance and Economics, Issue 98, pp. 145-154. 9. Prajapati, S. and Thakor, M. (2012), Competitive and innovative promotional tools used by toothpaste companies for rural market and its impact on consumer buying behavior in Gujarat, International Referred Research Journal, Vol. 3, Issue 3(2), pp. 82-86. 10. Ranu, G., and Rishu, R. (2012), Ingredient branding: a differentiation strategy for FMCG companies, Asian Journal of Management Research, Vol. 2, Issue 2, pp. 761-768. 11. Sridhar, G., and Mishra, D. (2010), Executives social representation of rurality and product adaptation: a case of rural markets in India, APJML, Vol. 23, No. 3, pp. 285-303. 12. Srinivastava, T N and Rego, Sahilaja. Business Research Methodology. 1st ed., New Delhi: Tata McGraw Hill Education Private Limited. 2011, pp. 14.66-14.86. 13. Sukato, N., and Elsey, B. (2009), A model of male consumer behaviour in buying skin care products in Thailand, ABAC Journal, Vol. 29, No. 1, pp. 39-52. 14. Sumathi, S. and Saravanavel, P. (2003). Marketing Research & Consumer Behaviour. New Delhi: Vikas Publishing House Pvt. Ltd., p. 322. 15. Vaishnani, H. B. (2012), An empirical study of measuring brand equity perception with reference to sales promotion schemes for selected FMCG products, Golden Research Thoughts, Vol. 1, Issue 7, pp. 1-4.
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16. Vani, G., Babu, M. G., and Panchanathan, N. (2010), Toothpaste brands: a study of consumer behaviour in Bangalore city, Journal of Economics and Behavioral Studies, Vol. 1, No. 1, pp. 27-39. 17. Vernekar, S. S., and Wadhwa, P. (2011), An empirical study of consumers attitudes and perception regarding eco-friendly FMCG products, with special reference to Delhi and NCR region, Opinion, Vol. 1, No. 1, pp. 64-74.

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Exhibit 1: Scree Plot.

Source: Primary (Data processed through PASW 18.0).

Demographic Basis Age (Years)

Total

Total Marital Status Total Income (Rs.)

Total

Table 1: Demographic Profile of Rural Buyers Gender Male Female 10-20 117 132 20-30 126 125 30-40 98 98 40-50 99 93 50 and Above 60 52 500 500 Illiterate 16 54 Below Matric 68 146 Matric 184 161 10+2 107 65 Graduate 75 49 Post-Graduate 28 15 Any Other 22 10 500 500 Bachelor 199 182 Married 301 318 500 500 Less Than 5,000 22 10 5,000-10,000 35 37 10,000-15,000 90 83 15,000-20,000 160 189 20,000-25,000 110 120 More Than 25,000 83 61 500 500 Student 174 175 Housewife 3 277 Businessman 54 2 Employee (Private Sector) 67 15 Employee (Public Sector) 100 26 Farmer/Labourer 82 1 Any Other 20 4 Total 500 500 Source: Primary (Data processed through PASW 18.0).

Total 249 251 196 192 112 1000 70 214 345 172 124 43 32 1000 381 619 1000 32 72 173 349 230 144 1000 349 280 56 82 126 83 24 1000

Occupation

Education

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Table 2: Descriptive Statistics for Factor influencing the purchase decision of rural buyers towards FMCGs Sr. No. Factor Mean Std. N Deviation 1 Print advertisements 4.18 .927 1000 2 T.V. commercials 4.20 .872 1000 3 Word of mouth 3.95 .966 1000 4 Salespeople 3.72 1.097 1000 5 Incentive schemes 3.46 1.183 1000 6 Own experience 3.36 1.181 1000 7 Advice of beautician 3.07 1.135 1000 8 Display at shop 3.27 1.138 1000 9 Occasion 3.11 1.183 1000 10 Reference Group 2.98 1.207 1000 11 Trial 3.01 1.224 1000 12 Availability of the product 3.08 1.194 1000 13 Non-availability of the expected brand 3.00 1.222 1000 14 Income 3.19 1.186 1000 15 Family 3.28 1.213 1000 16 Locality 3.33 1.198 1000 17 Age 3.35 1.232 1000 18 Social class/status 3.29 1.185 1000 19 Culture 3.25 1.209 1000 20 Climate/Environment 3.19 1.196 1000 21 Advice of Doctor 3.14 1.215 1000 22 Price of the Product 3.21 1.181 1000 23 Packaging of the product 3.20 1.196 1000 24 Labelling of the product 3.20 1.219 1000 25 Quality of the product 3.25 1.224 1000 26 Taste Change 3.16 1.202 1000 27 Defective Products 3.11 1.265 1000 28 Out dated 3.09 1.267 1000 29 New Ingredient 3.11 1.221 1000 30 Brand Loyalty 3.18 1.182 1000 31 Life of the product 3.20 1.211 1000 32 To follow the Celebrity 3.16 1.217 1000 33 Personality and Lifestyle 3.28 1.198 1000 34 Attitude and behaviour 3.29 1.187 1000 35 Need and Motives 3.24 1.203 1000 36 Quantity of the product 3.25 1.224 1000 Source: Primary (Data processed through PASW 18.0). Table 3: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .774 Bartlett's Test of Sphericity Approx. Chi-Square 22612.664 Df 630 Sig. .000 Source: Primary (Data processed through PASW 18.0).

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Table 4: Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Component Total % of Variance Cumulative % Total % of Variance Cumulative % 1 6.293 17.480 17.480 6.293 17.480 17.480 2 3.569 9.914 27.395 3.569 9.914 27.395 3 2.972 8.257 35.651 2.972 8.257 35.651 4 2.786 7.740 43.391 2.786 7.740 43.391 5 2.680 7.444 50.835 2.680 7.444 50.835 Extraction Method: Principal Component Analysis. Source: Primary (Data processed through PASW 18.0).

Rotation Sums of Squared Loadings Total % of Variance Cumulative % 4.453 12.368 12.368 4.094 11.371 23.739 3.652 10.145 33.885 3.120 8.666 42.550 2.982 8.284 50.835

Table 5: Factors influencing the Purchase Decision of Rural Buyers towards FMCGS Factor interpretation Loading Variables included in the factor (% of variance explained) F1 Cultural and Psychological .734 34 Attitude and behaviour Factors (17.480) .710 33 Personality and Lifestyle .688 35 Need and Motives .658 36 Quantity of the product .610 32 To follow the Celebrity .488 22 Price of the Product .488 21 Advice of Doctor .478 20 Climate/Environment .447 31 Life of the product .440 19 Culture F2 Social Factors (9.914) .760 28 Out dated .716 27 Defective Products .686 11 Trial .659 29 New Ingredient .607 12 Availability of the product .596 10 Reference Group .523 13 Non-availability of the expected brand .513 26 Taste Change .474 30 Brand Loyalty .417 9 Occasion F3 Psychographic and Promotional .757 4 Salespeople Factors (8.257) .737 5 Incentive schemes .707 3 Word of mouth .657 6 Own experience .533 2 T.V. commercials .487 7 Advice of beautician .411 8 Display at shop .311 1 Print advertisements F4 Demographic Factors (7.740) .793 16 Locality .785 15 Family .672 17 Age .647 14 Income .404 18 Social class/status F5 Self-concepts (7.444) .776 24 Labelling of the product .698 25 Quality of the product .658 23 Packaging of the product Source: Primary (Data processed through PASW 18.0). Factor

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International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Table 6: Factors influencing the Overall Opinion of Rural Buyers towards the Advertisement of Tooth Brush
Factor Mean of Variable 3.221 (3) 3.29 3.28 3.24 3.25 3.16 3.21 3.14 3.19 3.2 3.25 3.084 (5) 3.09 3.11 3.01 3.12 3.08 2.98 3.00 3.16 3.18 3.11 3.650 (1) 3.72 3.46 3.95 3.36 4.20 3.07 3.27 4.18 3.288 (2) 3.33 3.28 3.35 3.19 3.29 3.217 (4) 3.2 3.25 3.2 Age (df=4, 995) F Sig. 2.147 .073 1.829 1.828 1.012 1.731 1.643 1.869 1.453 2.832 1.075 1.488 5.166 1.488 2.597 3.367 3.455 3.298 4.333 1.971 1.621 2.048 3.551 2.085 .769 1.263 1.863 3.105 3.385 2.335 6.034 2.059 1.797 2.297 2.692 2.348 1.281 2.155 1.434 2.484 2.337 3.626 .121 .121 .400 .141 .161 .114 .215 .024 .368 .204 .000* .204 .035 .010 .008* .011 .002* .097 .167 .086 .007* .081 .546 .283 .115 .015 .009* .054 .000* .084 .127 .057 .030 .053 .275 .072 .221 .042 .054 .006 Education (df=6, 993) F Sig. 4.504 .000* 4.018 3.629 2.880 3.509 3.868 2.943 2.743 2.747 2.139 3.024 8.668 5.230 5.760 4.488 3.631 3.617 4.899 3.545 3.614 4.435 1.999 2.207 1.153 3.414 2.814 2.591 4.194 2.265 2.199 2.765 2.014 1.077 1.277 1.464 1.528 2.395 .859 1.490 2.602 4.052 .001* .001* .009* .002* .001* .007* .012 .012 .047 .006* .000* .000* .000* .000* .001* .001* .000* .002* .001* .000* .063 .040 .329 .002* .010 .017 .000* .035 .041 .011 .061 .374 .265 .187 .166 .026 .525 .178 .017 .001* Gender (df=1, 998) F Sig. .052 .820 .006 .178 .249 .683 .649 .413 .244 .338 .011 1.449 .028 .010 .141 1.805 .017 .006 .001 1.610 1.108 .232 .412 .348 .748 .086 .274 .645 4.752 .447 .000 2.573 .548 1.476 .495 1.277 2.829 .206 .001 .454 .818 .308 .936 .673 .618 .409 .421 .521 .621 .561 .917 .229 .867 .921 .708 .179 .897 .937 .979 .205 .293 .630 .521 .555 .387 .769 .601 .422 .029 .504 1.000 .109 .459 .225 .482 .259 .093 .650 .972 .500 .366 .579 Inferential Statistics Marital Status (df=1, 998) F Sig. .935 .334 1.544 1.749 2.011 2.099 .340 .019 .247 .130 1.962 .764 9.855 4.665 5.634 6.331 4.159 4.693 6.966 1.908 5.080 3.291 2.981 1.108 1.294 .718 4.534 5.431 7.000 3.288 9.155 2.799 8.588 8.133 10.450 4.867 4.088 2.843 1.148 2.408 6.531 .754 .214 .186 .156 .148 .560 .890 .619 .719 .162 .382 .002* .031 .018 .012 .042 .031 .008* .167 .024 .070 .085 .293 .256 .397 .033 .020 .008* .070 .003* .095 .003* .004* .001* .028 .043 .092 .284 .121 .011 .386 Income (df=5, 994) F Sig. 4.663 .000* 1.367 1.938 4.046 3.348 3.013 2.897 4.550 3.578 4.886 3.957 7.887 3.095 2.509 5.865 2.539 4.822 4.557 3.730 4.996 3.392 2.368 .864 2.427 .462 .955 1.127 2.252 .672 3.664 1.643 .771 .599 2.224 1.964 2.094 1.602 1.844 3.081 1.648 2.650 .234 .086 .001* .005* .010 .013 .000* .003* .000* .001* .000* .009* .029 .000* .027 .000* .000* .002* .000* .005* .038 .505 .034 .805 .445 .344 .047 .645 .003* .146 .570 .701 .050 .082 .064 .157 .102 .009* .145 .022 Occupation (df=6, 993) F Sig. 4.663 .000* .867 1.616 1.153 2.021 2.510 .805 .691 1.331 1.237 2.289 7.887 2.069 2.576 4.669 1.007 3.280 5.047 1.541 1.457 1.656 2.663 .864 1.442 .501 3.172 2.871 3.624 1.312 3.239 3.222 .771 1.980 2.455 2.737 2.975 1.901 1.844 1.164 2.396 .880 .518 .139 .330 .060 .020 .566 .657 .240 .284 .034 .000* .054 .018 .000* .419 .003* .000* .162 .190 .129 .014 .505 .196 .808 .004* .009* .001* .249 .004* .004* .570 .066 .023 .012 .007* .078 .102 .324 .026 .509 Districts (df=3, 996) F Sig. 2.266 .079 1.575 3.016 3.065 3.710 6.136 1.810 12.414 2.529 3.609 3.547 33.061 19.692 20.896 18.468 8.374 6.870 12.293 13.794 17.302 5.561 5.679 1.142 .494 .989 .658 3.658 2.786 12.510 2.820 16.899 3.217 2.289 1.347 4.268 3.698 2.594 2.956 4.820 5.322 4.414 .194 .029 .027 .011 .000* .144 .000* .056 .013 .014 .000* .000* .000* .000* .000* .000* .000* .000* .000* .001* .001* .331 .687 .397 .578 .012 .040 .000* .038 .000* .022 .077 .258 .005* .012 .051 .032 .002* .001* .004*

Cultural and Psychological Factors Attitude and 34 behaviour Personality and 33 Lifestyle 35 Need and Motives Quantity of the 36 product To follow the 32 Celebrity 22 Price of the Product 21 Advice of Doctor 20 Climate/Environment 31 Life of the product 19 Culture Social Factors (F2) 28 Out dated 27 Defective Products 11 Trial 29 New Ingredient Availability of the 12 product 10 Reference Group Non-availability of 13 the expected brand 26 Taste Change 30 Brand Loyalty 9 Occasion Psychographic and Promotional Factors (F3) 4 Salespeople 5 Incentive schemes 3 Word of mouth 6 Own experience 2 TV commercials 7 Advice of beautician 8 Display at shop 1 Print advertisements Demographic Factors (F4) 16 Locality 15 Family 17 Age 14 Income 18 Social class/status Self-concepts (F5) Labelling of the 24 product Quality of the 25 product Packaging of the 23 product

Note: Value in the parenthesis shows rank, *significant at .01 level. Source: Primary (Data processed through PASW 18.0).

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