A Study on Impact of Advertisement in Rural Marketing With Reference To Fast Moving Consumer Goods (FMCGs)

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1 A Study on Impact of Advertisement in Rural Marketing With Reference To Fast Moving Consumer Goods (FMCGs) Dr.M.Ravichandran 1, V.Gopalakrishnan 2 1* Assistant Professor Management Studies, University College of Engineering (BIT Campus), Anna University, Trichy, India 2* Second year Management Studies, University College of Engineering (BIT Campus), Anna University, Trichy, India ABSTRACT: This paper explore the role of advertisement on attitudes towards buying behavior of rural consumers with refer to fast moving consumer goods (FMCGs). The consumer behavior plays an important role in marketing. The fast moving consumer goods (FMCG) sector contributes a lot to the growth of India s GDP and the country is covered with 70% of rural and semi urban regions. The aim of this paper concentrated on two things, To know the impact of advertisements on rural consumer behavior in fast moving consumer goods and the other thing is, To find out the awareness towards the FMCG products. This paper influences a various factors of demographic profiles of customers with respect to the fast moving consumer goods and also find out the motivational factor to pursue the purchase of FMCG. To evaluate and suggest the perfect advertising medium. The researcher has assessed the demographic profile, shopping pattern of consumer and found out the factors impacts the perception and awareness of rural consumers to the selected fast moving consumer goods (FMCG). The sample data has been collected from ponnamaravathy taluk of pudukkottai dist. Questionnaire has prepared to the sample size of 110 to evaluate the impact of advertisement in rural market with reference to fast moving consumer goods (FMCGs). Keywords: SED, consumer perception, rural marketing, advertisement, purchase intention. INTRODUCTION FMCGs are popularly called as CPG (consumer packaged goods). Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. The Fast Moving Consumer Goods Industry includes food and non-food everyday consumer products. They are usually purchased as an outcome of small-scale consumer decision so they are heavily supported (advertising, promotion) by the manufacturers. Rural consumers purchasing of these goods and products in grocery stores, kirana stores and departmental stores in nearby town. The manufacturers are always exploring new outlets and sales locations while the traditional retailer have introduced private label brands to capture additional profit. Here to understand the buying behavior of rural consumers because 79% of the country is covered with rural and semi-urban area. Then, Every one of us uses fast moving consumer products every day. RURAL MARKETING IN INDIA In recent years, rural markets have developed more importance in countries like India and china, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity Of industrial and urban manufactured products. In this Page No:31

2 Context, a special marketing strategy namely as rural marketing has taken outline. Rural India, mostly termed as high opportunity market, is no longer just an opportunity, but is now yielding results. The concept of Rural Marketing in India Economy has always played an influential role in the lives of people. In India, leaving out of a few metro cities, all the districts and industrial townships are jointly related with rural markets. STATEMENT OF THE PROBLEM Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. The profit from these products is relatively very small and the selling is in large quantities, so the cumulative profit on such products can be large. The productions of Fast Moving Consumer Goods companies have massive competition and they are forced to find new ways of making money in rural regions of india. Because 79% of the country is rural and semi urban regions. So manufacturing company must learning about the consumer common needs and buying motives, and to developing the solution based on their understanding behavior of advertisement. This is very difficult because of the consumers has different needs, different expectations and also a sea changes in the standard of living and life styles. Here the rural consumers have not aware about the pricing, standards, ingredients, etc,. to understand the level of awareness. At present the consumers are more dynamic, their taste, preferences are also changing. The rural consumers are also looking product variation and the convenience offered. The rural consumers are finding various problems in selecting their fast moving consumer goods. In order fulfill their expectation to know the consumer behavior in the purchase decision in the FMCGs products. In this backdrop it is identified that there is a need for research work in the field of consumer behavior of FMCG in the Ponnamaravathy taluk. NEED OF THE STUDY In this study, To know at which point rural consumer can change their buying behavior with respect to FMCGs with influences of advertisement.to create awareness to rural consumers using FMCG.Hence the purpose of this study is to identify the force that influence on rural consumer shopping pattern and effectiveness of advertisement particularly in ponnamaravathy taluk. SCOPE OF THE STUDY From this study how rural consumers are influenced by the advertisement of their buying behaviour are observed and then effective suggestions will be given to improve awareness of FMCGs. To know about rural consumers awareness level about FMCG products. OBJECTIVES 1. To identify the SED (Socio-Economic-Demographic factor) of rural consumers. 2. To study the effectiveness of advertising with reference to rural consumers. 3. To identity the motivational factor to pursue on the purchase of FMCGs. 4. To study the awareness about the FMCG products among rural consumers. 5. To suggest suitable advertising strategy to attract rural consumers. Page No:32

3 REVIEW OF LITERATURE B.V.N.G. Chandrasekhar (2012) in his study Consumer Buying Behaviour and Brand Loyalty in Rural Markets: FMCG, aims to study brand loyalty of various brands in rural markets and identify the presence and the importance of local brands. The primary data was collected through a questionnaire. This study was conducted on a sample of 60 respondents in the village s satanapalli, tadipattri and mallapur. Dr. R Senthilkumar (2017) In his study A study on attitude and behavior of rural consumers towards branded FMCG products in Pudukkottai district of Tamil Nadu. This study is aimed at to rural consumer s behavior and attitude towards the branded FMCG products. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). The FMCG products are those that get replaced within a year. Dr.S.Mahalingam & P.Nandha Kumar(2012) in their study titled A study on consumer behavior towards selected fast moving consumer goods in Coimbatore city. The researcher has assessed the socio-economic profile, shopping pattern consumer and found out the factors inducing the consumer to purchase the selected FMCG products. The primary data required for the study for collected through questionnaire which was distributed to 400 samples chosen from Coimbatore city.the tools used for analysis are percentage analysis, garret ranking and chi-square. Dr.Vibuthi, Dr.Ajay Kumar Tyagi, Vivek Pandey (2014) in their study titled as A case study on consumer buying behavior towards selected FMCG products. The motive of paper is to discovery the factors affecting consumer buying behavior towards FMCG products and finally effecting their decision making process. The data for this study has been collect and concluded through questionnaire and findings have been theoretically presented. The paper reveals that consumer behavior is largely effected by place, product, and price, and promotion, physiological and psychological factors. However effect of these factors also differ from product to product. MODEL OF THE STUDY Consumer awareness Rural consumers Impact of Advertisement Consumer perception Consumer buying behavior RURAL CONSUMERS WITH FMCG PRODUCTS: The difference between rural and urban consumers always exists in India. Indian rural customer is large with illiteracy and poverty. Illiteracy leads to an inability to identify brand differences and read the basic text on packages. Shortage and dependency on vagaries of monsoon result into a low and changeable purchasing power. Moreover products are sold lose, giving high competition to branded sealed products. Ignorance and illiteracy are accompanied by strong influence leaders like the local panchayat members, caste and religious leaders etc. Since rural consumers are with psychologically, economically and socially changed from the metropolitan counter parts and are definitely the rural consumer s price sensitive. In the past study, rural consumers purchased most of their requirements from nearby towns. However, in recent times, a shift has been seen towards purchasing locally. This change in consumer purchase behavior has significant implications for the rural marketer. Page No:33

4 There is a need to access retailers in towns and larger villages and promote products there, so that the products that are purchased locally can reach smaller retail outlets in villages. Studies suggested that promotion by the retailer supplements the efforts at creating brand knowledge in rural markets. A promotion announcing the benefits of a product or brand along with distribution efforts is observed in rural markets in the FMCG category. Customer satisfaction level is fundamentally with the peak of a series of customer experiences and the net outcome of the good ones minus the bad ones. It occurs when the gap between customers expectations and their following experiences has been closed. The FMCG Sector is one of the most important sectors of any Economy. It plays the main role in the economy of country as FMCGs are a need and are stiff products which touch every life in one or the other aspect. India s FMCG sector is the 4th largest sector in the economy and creates employment for more than three million people in downstream activities. CONSUMER PERCEPTION Consumer perception relates the idea of sensorial to marketing and promotion. Just as sensory perception shows to how humans perceive and practice sensory stimuli over their five senses. Consumer perception relates to how individuals form views about companies and the retail they deal through the purchases of FMCGs. ADVERTISEMENT: Advertisements aids the company to generate the consciousness in their customers and components the advertisements figure the insight of the customers either in positive or in a negative manner. People can observe the quality of the products by get-together the facts which they generally catch through advertisements. The perception of the quality, consciousness of the product and consumer view advantages the consumer buying decision. Study frowningly estimates these factors which form the buying behavior and offers the deep visions near the role of advertisements determining the consumer behavior. HYPOTHESIS 1. Hypothesis-1.Alternative hypothesis (H1), there is significance association between the age of the respondents and their preferences towards the type of store to buy FMCG products. 2. Hypothesis-2.Alternative hypothesis (H1),there is significance association between the gender of the respondents and their preferences towards usage in category of FMCG products. 3. Hypothesis-3.Alternative hypothesis (H1), there is significance association between the educational qualification of the respondents and their awareness about the ingredients of FMCG products. 4. Hypothesis-4.Null hypothesis (H0), there is no significance association between the educational qualification of the respondents and their awareness about the expiry date of FMCG products. 5. Hypothesis-5.Alternative hypothesis (H1), there is significance association between the family size of the respondents and their purchase frequency of FMCG products. 6. Hypothesis-6.Alternative hypothesis (H1), there is significance association between the occupation of the respondents and aware of product pricing of FMCG products. 7. Hypothesis-7.Alternative hypothesis (H1), there is significance association between monthly income of the respondents and aware of product pricing of FMCG products. RESEARCH METHODOLOGY A study questionnaire was prepared based on the objectives of the study. The structured questionnaire comprises of mixed questions (open ended, closed end, and likert scale questions) and the questions with 5 point likert scaling was used in this study. Likert scales are developed by utilizing the items analysis approach where in a particular item is evaluated on the basis of how well it discriminates between those persons whose total score is high and those whose score is low. Page No:34

5 STATISTICAL TOOLS USED Percentage Analysis Percentage = (Value / Total value) * 100 Chi-square test The Chi-square test is commonly used for testing relationships between categorical variables. It is used to evaluate tests of independent when using a cross tabulation. X^2 = [ (O- E)^2 / E] Where, O Observed Value, E Expected Values RELIABILITY ANALYSIS Table shows the Reliability Analysis of questionnaire Reliability Statistics Cronbach's Alpha N of Items The Cronbach s Alpha value is.836 which represents the internal consistency of the questionnaire is acceptable. CHI-SQUARE TEST: The chi square test is commonly used for testing the relationships between categorical variables. It is used to evaluate tests of independence when using a cross tabulation. Showing the result of Hypothesis 1. There is significance association between the age of the respondents and their preferences towards the type of store to buy FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 16 cells (80.0%) have expected count less than 5. The minimum expected count is.44. Showing the result of Hypothesis 2. There is significance association between the gender of the respondents and their preferences towards usage in category of FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 3 cells (30.0%) have expected count less than 5. The minimum expected count is Page No:35

6 Showing the result of Hypothesis 3. There is significance association between the educational qualification of the respondents and their awareness about the ingredients of FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 13 cells (65.0%) have expected count less than 5. The minimum expected count is.44. Showing the result of Hypothesis 4. There is no significance association between the educational qualification of the respondents and their awareness about the expiry date of FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 21 cells (84.0%) have expected count less than 5. The minimum expected count is.07. Showing the result of Hypothesis 5. There is significance association between the family size of the respondents and their purchase frequency of FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 20 cells (80.0%) have expected count less than 5. The minimum expected count is.38. Showing the result of Hypothesis 6. There is significance association between the occupation of the respondents and aware of product pricing of FMCG products. Page No:36

7 Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 14 cells (70.0%) have expected count less than 5. The minimum expected count is.62. Showing the result of Hypothesis 7. There is significance association between monthly income of the respondents and aware of product pricing of FMCG products. Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 20 cells (80.0%) have expected count less than 5. The minimum expected count is.29. FINDINGS FROM PERCENTAGE ANALYSIS: A percentage frequency distribution is a display of data that specifies the percentage of observations that exist for each data point or grouping of data points. It is a particularly useful methods of expressing the relative frequency of survey responses and other data. 1. Majority 75.5% of the respondents were years of age 2. Majority 91% of the respondents were male 3. Majority 50.9% of the respondents were post graduate 4. Majority 43.3% of the respondents were in others category. 5. Majority 61.8% of the respondents were below income of Rs Majority 66.4% of the respondents were in 4-5 members of family size. 7. Majority 35.5% of the respondents using kirana stores. 8. Majority 34.5% of the respondents were using personal care. 9. Majority 38.2% of the respondents were purchasing daily. 10. Majority 41.8% of the respondents were agree with aware of checking ingrediants. 11. Majority 52.7%of the respondents were agree with aware of checking expiry date. 12. Majority 58.2% of the respondents were agree with aware of product pricing. Page No:37

8 FINDINGS FROM CHI-SQUARE TEST: A Chi-square test is a statistical test commonly used for testing independence and goodness of fit. Testing independence determines whether two or more observations across two populations are dependent on each other. Testing for goodness of fit determines if an observed frequency distribution matches a theoretical frequency distribution. 1. CAL value > TAB value. So, H1 is accepted, There is significance association between the age of the respondents and their preferences towards the type of store to buy FMCG products. 2. CAL value 6.956>4.989 TAB value. So, H1 is accepted, There is significance association between the gender of the respondents and their preferences towards usage in category of FMCG products. 3. CAL value > TAB value. So, H1 is accepted, There is significance association between the educational qualification of the respondents and their awareness about the ingredients of FMCG products. 4. CAL value < TAB value. So, H0 is accepted, There is no significance association between the educational qualification of the respondents and their awareness about the expiry date of FMCG products. 5. CAL value > TAB value. So, H1 is accepted, There is significance association between the family size of the respondents and their purchase frequency of FMCG products. 6. CAL value > TAB value. So, H1 is accepted, There is significance association between the occupation of the respondents and aware of product pricing of FMCG products. 7. CAL value > TAB value. So, H1 is accepted, There is significance association between monthly income of the respondents and aware of product pricing of FMCG products. SUGGESTIONS From the study, the suggestions made are follows A majority of consumer often to buy personal care products in weekly basis to purchase preferred through grocery shops. Hence, it is suggested that owners of grocery shop to maintain their preferred brand in stock. A majority of the educated consumers only aware of standardization of product and pricing, ingredients level, expiry date and labeling. Hence, it is suggested that companies to create awareness through the people are illiterate to know the awareness of FMCG through their highly preferred media of television to avoidance of fake information. CONCLUSION This study was conducted to analysis the rural consumer buying behavior on FMCG products and their awareness level through advertisement. From the study it is known that the rural consumer was initially used with pricing strategy and followed through satisfied with quality. Their suggestions to convey the truthful and ethical things to satisfy the consumers with proper advertising media. These findings shows that most of the respondents had a positive attitude towards advertising by their various perceptions towards FMCG. This clearly shows a rural consumers has positive attitude toward advertisement. In order to further identify the effectiveness of advertising on creation and know the level of awareness. Advertisement Media should be low cost and selected according to the easy understand of customers. REFERENCES 1.MuhammadSajidRasool, YasirRafique,, Impact Of Advertisement On Consumer Behavior Offmcg In Lahore City Issn-L: , Issn: vol. 2, No. 3, May Asha K And Merlin Thanga Joy A,, Impact Of Television Advertisement On Buying Behaviour Of Rural Consumers Towards Fmcg In Kanyakumari District (Oct-2016)Issn: , Journal Of Chemical And Pharmaceutical Sciences Page No:38

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