Documente Academic
Documente Profesional
Documente Cultură
On
Submitted under the partial fulfillment for the award of the degree of
BY
1710101022
FACULTY OF MANAGEMENT
SESSION 2019-20
1
CERTIFICATE
This is to certify that Mr. ARPIT AGARWAL student of BBA 5th Semester in our institute has
successfully completed his project work entitled to “Effect of branding on consumers of FMCG
products and Durable goods ” for the partial fulfillment of the Degree of Bachelor of Business
Administration for the session 2019-20.
2
STUDENT DECLARATION
I ARPIT AGARWAL a Bonafide student of BBA in Invertis University, Bareilly would like to
declare that the project entitled effect of branding on consumers of FMCG products and Durable
goods submitted by me in partial fulfillment for the requirement of the Degree of Bachelor of
Business Administration, is my original work.
Place:
3
ACKNOWLEDGEMENTS
This report bears the imprint of many people and without their support it would not have existed.
First of all I would like to express our sincere indebtedness and profound gratitude to my parents
whose support in all manners had made me capable to complete this project. I would like to
express my gratitude to Mr. Tarun Gupta for providing us the guidelines and allowing me to
undertake a project of this nature. I would also like to thank “INVERTIS UNIVERSITY” for
giving me this opportunity. I am equally thankful to my friends for their valuable and timely
inputs in the progress of the Reports.
Date: 04/11/2019
(Arpit Agarwal)
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TABLE OF CONTENTS
1. Acknowledgement I.
2. Table of contents II.
3. List of tables III.
4. List of figures IV.
5. Introduction 8-11
6. Literature review 12-18
7. Research objective, Research methodology, Research 19-26
design
8. Data representation and Interpretation 27-39
9. Research Findings 40
10. Limitations 41
11. Conclusion 42
12. Bibliography 43
13. Annexure 44-47
5
LIST OF TABLES
1. Table No.4.1 28
2. Table No.4.2 29
3. Table No.4.3 30
4. Table No.4.4 31
5. Table No.4.5 32
6. Table No.4.6 33
7. Table No.4.7 34
8. Table No.4.8 35
9. Table No.4.9 36
6
LIST OF FIGURES
1. Figure No.4.1 28
2. Figure No.4.2 29
3. Figure No.4.3 30
4. Figure No.4.4 31
5. Figure No.4.5 32
6. Figure No.4.6 33
7. Figure No.4.7 34
8. Figure No.4.8 35
9. Figure No.4.9 36
7
CHAPTER- 1
INTRODUCTION
8
INTRODUCTION
9
1.4 Brand Equity and Brand Name
Brand equity measures the total value of the brand to the brand owner, and reflects the extent of
brand franchise. The term brand name is often used interchangeably with "brand", although it is
more correctly used to specifically denote written or spoken linguistic elements of a brand. In
this context a "brand name" constitutes a type of trademark, if the brand name exclusively
identifies the brand owner as the commercial source of products or services. A brand owner may
seek to protect proprietary rights in relation to a brand name through trademark registration.
"A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's
the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're
drinking really matters." - Howard Schultz (CEO, Starbucks Corp.)
The act of associating a product or service with a brand has become part of pop culture. Most
products have some kind of brand identity, from common table salt to designer clothes. In non-
commercial contexts, the marketing of entities which supply ideas or promises rather than
product and services (e.g. political parties or religious organizations) may also be known as
"branding".
10
CHAPTER- 2
LITERATURE
REVIEW
11
LITERATURE REVIEW
2.2 Paul J. Albanese (1993) has presented a report using the California Q Sort for empirical
research on consumer behaviour from psychoanalytic object relations theory to operationalize
the personality organization on the promising preliminary results of the Q project at Kent State
University.
2.3 Anna Watson, Howard Viney, Patrick Schomaker (2002) found that
introduction of
consumer choice along with enhancing the quality of service provided to consumers is one of the
key motivations underpinning the various public utility privatisations of the 1980s and 1990s. In
the case of electricity supply there was a timetable for the introduction of competition in the
original legislation.
12
risks and riskreducing strategies which is used by consumers are empirically investigated. It
discusses the results in such a way that it highlights their usefulness to the industry’s marketers.
2.5 Marylyn Carrigan, Ahmad Attalla (2001) examined that for marketers on the
value of a socially responsible approach years of research continue to present conflicts and
challenges to
marketing activities. Therefore marketing ethics and social responsibility are controversial. This
article investigates the effect of good and bad ethical conduct on consumer purchase behaviour
and whether consumers care about ethical behaviour. In purchase decision‐making behaviour
most consumers pay little attention to ethical considerations.
2.6 Lisa Watson, Mark T. Spence (2007) researched that identifying the cause(s) of
emotions has clear practical import to the understanding of consumer behaviour. However,
cognitive appraisal theory serves this purpose, a consensus has not yet emerged concerning
terminology, number of relevant concepts and concomitant construct measurements, and
theoretical linkages between constructs.
2.7 Ruth M.W. Yeung, Joe Morris (2001) said that the food industry, food safety has
become a
major issue of public concern for the UK Government and they are encouraging to take steps to
rebuild consumer confidence. This paper develops a conceptual framework for the likely impact
on purchasing behaviour and identifies and reviews the factors influencing consumer perception
of food safety related risks. The relevance of strategies adopted by consumers and influence on
the likelihood of food purchase are explored together to reduce risk exposure with the
implication for the food industry.
2.8 Erica J. Betts, Peter J. McGoldrick (1996) analysed that within the marketing
literature in spite of the ubiquity of seasonal they have been curiously neglected and other retail
“sales” and this is most surprising given their impact on profit-margins, brand/store images,
supplier-retailer relationships and consumer behavior. Since 1980, although much of this
13
literature has been at the individual product level and confined to groceries, the effects of
comparison price advertising on consumer behaviour have received growing attention from
researchers. Where the impact of reductions extends far beyond the sum of individual price
changes it builds on this research in the specific context of store wide “sales”.
2.9 Martin Evans (1989) said that concentrating especially on innovation theory and
selfconcept
theory complementary approaches are proposed for understanding and targeting fashion
consumers. Innovation theory (also concerned with introducing new products and ideas) is
logically important and these are seen as being two potentially relevant approaches because
fashion is concerned with “newness” , and because fashion buying could have much to do with
projecting images of how buyers see themselves (or would like to be seen, etc) more than might
have been the case in the past and because there is evidence to suggest that buying in younger
markets is related strongly to the expression of self.
2.11 Andre Gabor (1979) examined the concepts of the traditional theory of demand have
not
been found suitable for realistic studies of consumers’ behaviour. Since 1954, however, new
lines of exploration have evolved, of which that of Professor Jean Stoetzel has proved most
fruitful. The idea that, since price serves as a powerful indicator of quality, the consumer bent on
a purchase will approach the market with two price limits in mind was verified and further
developed by the Nottingham University Consumer Study Group.
The theory has been successfully extended to the competition between leading brands and
14
applied to the exploration of consumer behaviour during the decimalisation period in the UK.
Advances have been made also in the quantitative study of other related problems, such as the
price image of retail establishments and the relationship between pack size, price and purchasing
behaviour.
2.12 Elin Roos, Helene Tjarnemo (2011) explained that on reducing emissions of
greenhouse
gases and on consumer purchasing behaviour the effects that carbon labelling of food products
will have. Even though consumers have positive attitudes towards preserving the environment
low perceived customer effectiveness and sales of organic products are low for several reasons
like perceived high price, strong habits governing food purchases, perceived low availability,
lack of marketing and information, lack of trust in the labelling system. These do not bring any
personal benefits to the consumer unlike the perceived case for organic products, all these
obstacles apply to the purchase of carbon labelled products and several are for carbon-labelled
products.
2.14 Andrew G. Parsons (2002) said that on brand choice what is the impact of intended
recipient when purchasing a gift? In combination with Belk’s characteristics of gifts, for
measuring consumer behaviour differences occurring in alternative gift-giving situations,
Keller’s conceptualisation is used as a branding framework in terms of consumer-based brand
equity, incorporating symbolic, experiential, and functional benefits. Along with this the
influence of gender, household income, and age are also examined because consumers vary in
15
their choice of brands for different recipient groups. There are gender-based differences in
consumer’s brand choice for gifts along with some income and age related distinctions.
2.15 Paul A. Pellemans (1971) proposed a general framework for thinking in which
various
problems related to buyer behaviour are recognized. Examines how the marketing concept has
developed this century. Reviews two comprehensive consumer behaviour models briefly, and
after a more thorough examination retains a third as a consumer behaviour framework.
2.16 Celina González Mieres, Ana María Díaz Martín, Juan Antonio
Trespalacios
Gutiérrez (2006) analyzed the effects that a set of variables related to purchasing behaviour
has on the difference in perceived risk between store brands and national brands. The
methodology is proposed through a causal and integrated model which covers both the direct
effects caused by these variables jointly and the indirect effects. Confidence in the extrinsic
attributes of the product to assess its quality and familiarity with the store brands and when
explaining this difference the variables which have proven to be most relevant are the perceived
quality of the store as opposed to that of the national brands.
2.17 Ayantunji Gbadamosi (2009) said that the purpose of this paper is to conduct an
analysis
of consumption of low-involvement grocery products among low-income women consumers’
and in this consumption the relevance of cognitive dissonance. Low-income group women
consumers are not loyal to brands of grocery products as they are engaged in habitual
purchasing. However, they often buy stores’ own value-range brands as they believe that these
products are similar to manufacturers’ brands.
2.18 Ahmad Jamal, Mark M.H. Goode (2001) indicated that the self-image product
image
congruity and attitudes toward product can facilitate positive behaviour and can affect
16
consumers’ product preferences and their purchase intentions. Self-image congruity was a good
predictor of consumer satisfaction and a very strong predictor of consumers’ brand preferences.
With the brand as compared to those with lower levels of self-image congruity respondents with
higher levels of self-image congruity were more likely to prefer the brand and enjoy higher
levels of satisfaction.
2.19 Debra Grace, Aron O’Cass (2005) examined on consumer service brand
evaluation, the
effects of three communication avenues namely controlled communication (e.g.
advertising/promotions), uncontrolled communications (word-of-mouth (WOM)/publicity), and
brand name. Controlled communications and brand name have a significant effect on customer
satisfaction whereas brand attitudes and brand reuse intentions which are uncontrolled
communications had a significant influence only on brand reuse intentions.
2.21 Anders Gustafsson, Michael D Johnson & Inger Roos (2005) examined that
to moderate the triggered conditions of satisfaction–retention relationship, the effects of
customer
satisfaction, affective commitment, calculative commitment on retention, the potential for
situational and reactional commitment has to be managed. The result, which also moderates the
satisfaction–retention relationship, shows consistent effects of customer satisfaction, calculative
commitment, and prior churn on retention.
17
2.22 Yany Gregoire, Thomas M Tripp & Renaud Legoux (2009) explored the
effects of
avoidance in online public complaining contexts and the time and relationship strength on the
evolution of customer revenge. Time affects the two desires differently and the customers indeed
hold a grudge indicating that: revenge decreases over time, avoidance increases over time. In
case of strong-relationship customers the revenge decreases slowly and their avoidance increases
rapidly.
2.23 Li Guo (2011) analyzed through the hierarchy model of influencing factors of online
shopping, factors influencing consumers’ online purchasing behaviors which is built by domestic
scholars, and gets the relative importance of these influencing factors. Security of online
shopping, prices, and commercial credits are primary factors influencing consumers’ purchasing
behaviors, and the secondary ones are genders education levels of consumers, and designs of
store.
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CHAPTER-3
RESEARCH OBJECTIVE, DESIGN
AND METHODOLOGY
19
RESEARCH OBJECTIVE & METHODOLOGY
RESEARCH OBJECTIVE
Main objective
The main objective of research is to analysis how the brand effects the customer purchasing
decision in FMCG goods and durable goods.
Sub objective
the sub objective of research is to understand the choice of the customer is branded or non-
branded goods.
RESEARCH METHODOLOGY
Research methodology is the way in which research problems are solved systematically. It is a
science of studying how research is conducted scientifically.
The research is also used to describe an entire collection of information about a particular
subject. Research is defined as human activity based on intellectual applications in the
investigation of manner.
Business research can be defined as a systematic and objective process of gathering, recording
and analyzing data that provides information to guide business decision.
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RESEARCH APPROACH:
The purpose of this study is to analyze the “Affects of branding on consumer purchase decision
in FMCG goods and durable goods”
RESEARCH DESIGN:
The research design is the blueprint for the fulfillment of objectives and answering questions. It
is a master plan specifying the methods and procedures for collecting and analyzing needed
information.
The respondents are the users of FMCG goods and Durable goods and the data are interpreted in
the form of (pie graph, bar graph) who are interested to give there valuable feedback. To collect
the data the-in-depth survey with help of questionnaire is used.
The-in-depth survey for this study was limited only due to certain limitations. Also, it has been
mentioned earlier that, the survey was only on the customers of FMCG and durable goods.
Approx. 8 days had been taken to complete for filling this form by respondent .
This survey contain 12 questions which has been respondent by 51 consumers.
RESEARCH INSTRUMENT
21
DATA ANALYSIS METHOD:
The data analysis of this research was represented on quantitative manner. Applications like
Microsoft Word, Microsoft Excel and Google Forms are used.
DATA COLLECTION:
PRIMARY DATA;
Questionnaire for in-depth discussions with various respondents to be surveyed during primary
survey were designed during this phase. List of contacts were also prepared during this phase.
This involved in depth using structured questionnaire with various respondents.
Secondary data
This data has been taken from Google. The literature review data has been taken by the help of
Internet.
TYPE OF RESEARCH
DESCRIPTIVE RESEARCH
Descriptive research consists of surveys and fact-findings enquires of different types. The main
objective research is describing the state of affairs as it prevails at the time of study.
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Descriptive research is undertaken to descriptive answers to questions of who, what, where,
when and how.
Descriptive research is desirable when we wish to project a study’s finding to a larger
population, if the study’s sample is representative.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the researcher would adopt in selecting items for the sample. Sample design may as
well lay down the number of items to be included in the sample i.e.; the size of sample. Sample
design is determined before data are collected.
The process of selecting the right individuals, objects for the study is known as sampling.
Sample SIZE
Total 51 Respondent.
SAMPLE UNIT
In this, the . Once the surveying unit is determined surveying frame has to be prepared so that
everyone in the target population has an equal chance of being surveyed.
SAMPLING AREA
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DATA ANALYSIS
The data analysis is done with the help of bar graphs and pie charts.
PRIMARY DATA
Primary research refers to research that has involved the collection of original data
specific to that particular research methods such as questionnaires.
The primary data are those which are collected a fresh and for the first time, and thus
happen to be original in character.
Survey refers to the method of securing information concerning phenomena under study
from all or a selected number of respondents of the concerned which exist in the universe
independent of his action.
There are several methods of collecting primary data, particularly in surveys and
descriptive researches. Important one is Through questionnaire.
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SAMPLING
The population of the study included random customers of FMCG and Durable goods. In
order to collect data, a questionnaire was developed, which is consist of 13 question and
51respondent have filled the questioner and this has been designed to seek information
and opinions of the customers.
The questionnaire was floated through Google Forms and their response was recorded.
The responses were analyzed and interpreted on percentage basis.
25
CHAPTER-4
DATA PRESENTATION AND DATA INTERPRETATION
26
Figure No. 4.1
Standards Percentage
Yes 72.5%
No 27.5%
The above pie chart shows the two type of response i.e YES or NO which is been respondent by
the consumer though the Google form. This pie chart is been prepared from the 100% where
27.5% of consumer says yes which is been showed through red color and 72.5% consumer says
no which is been showed through blue color to the question which was asked from them i.e
“ARE YOU A BRAND LOYAL CUSTOMER”.
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Figure No. 4.2
The above bar graph shows the response of the consumer about which attribute they keep in
mind while purchasing branded products and their response has been categorized into six
different category which are-
Categories Percentage(%)
Brand name 64.7
Price 58.8
Easy availability 33.3
Transparent 27.5
Cleanliness 37.3
Other 2.0
After observing the above graph most of the consumers are attracted through the brand name.
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Figure No. 4.3
Standards Percentage
Financial constraints 39.2%
Waiting for more innovative product 45.1%
Waiting for market response 15.7%
The above pie chart shows the reason for the delay between the purchase decision and actual
purchase, the respondent was given three reasons from which they have to select most suitable
condition which comes between the delay of purchase decision and actual purchase. Most of the
people marked “waiting for more innovative product” which is red in color, 45.1% people waits
for more innovative product and this delay comes between in their decision. 39.2% people feels
it is the “Financial Constraints” which is marked with blue color and 15.7% people “waits for
market response” which is marked with yellow color.
29
Figure No. 4.4
This bar graph shows “which factors does influence a consumer to buy the brand?”
The respondents were given seven options among which they have to select any one factor from
which they are influenced the most.
The response of people are as follows-
Advertising 31.4
Dealer 3.9
Family/friend/relatives 33.3
Others 17.6
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Figure No. 4.5
Standards Percentage
Strongly disagree N/A
Disagree 2%
Neutral 25.5%
Agree 39.2%
Strongly agree 33.3%
This graph is showing how much quality can influence the purchase decision of an individual
from this graph we can depict that most of the purchase decision easily got influenced according
to the quality of the product almost 60% people are agree with the fact that quality matters the
most.so if we want a good response from your consumers that it is very important that your
product is of good quality.
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Figure No. 4.6
Standards Percentage
Strongly disagree N/A
Disagree 3.9%
Neutral 43.1%
Agree 41.2%
Strongly agree 11.8%
Since in the above chart most of the people either get influenced or consider price before
purchase of an item.so price can be a key factor in our product sale.
As per our survey, I found that 11.8% of people are Strongly agree, 41.2% of people are Agree,
43.1% of people have no effect of Price at all while some of them would disagree but No people
strongly disagree means there is somewhere in minds of Price while making purchase decision.
32
Figure No. 4.7
Standards Percentage
Strongly disagree 2.6%
Disagree 5.2%
Neutral 25.5%
Agree 45.1%
Strongly agree 21.6%
According to most people and also in general a product's features is the very first thing which a
customer looks for in a product.
As per our survey, I found that more than 45% of people are Agree that features of product
matters while making purchase decision and 21.6% of people are Strongly agree whereas 25.5%
of people have no effect of Features at all while some of them would disagree and some are
strongly disagree.
33
Figure No. 4.8
Standards Percentage
Strongly disagree 2%
Disagree 11.8%
Neutral 45.1%
Agree 33.3%
Strongly agree 7.8%
According to above chart most of the people usually don't get influenced by the views of family
members regarding a product.
As per our survey, I found that more than 45% of people have no effect of Family members at all
whereas 33.3% of people are agree and 7.8% of people are Strongly Agree that Family members
matters while making purchase decision but some of them would disagree and some are strongly
disagree with the given statement.
34
Figure No. 4.9
Standards Percentage
Strongly disagree 2%
Disagree 9.8%
Neutral 51%
Agree 29.4%
Strongly agree 7.8%
Above graph depicts that views of peer group does not usually affect the purchase decision of an
individual.
As per our survey, I found that more than half ratio of people have no effect of Peer group at all
whereas 29.4% of people are agree and 7.8% of people are Strongly Agree that Peer group
matters while making purchase decision but In this case we found that 9.8% of people disagree
and some are strongly disagree with the given statement.
35
Figure No. 4.10
Standards Percentage
Strongly disagree 2.45%
Disagree 7.35%
Neutral 47.1%
Agree 33.3%
Strongly agree 9.8%
Yes, according to the chart most of the advertisements do influence a person's purchase decision.
As per our survey, I found that around 47% of people have no as such effect of Advertisement at
all whereas 33.3% of people are agree and 9.8% of people are Strongly Agree that
Advertisement matters while making purchase decision but In this case we found that around
10% of people disagree and some are strongly disagree with the given statement.
36
Figure No. 4.11
Standards Percentage
Yes 25.5%
No 23.5%
May be 51%
Yes, according to the graph most people can shift toward other brand if they are getting a better
deal.
As per our survey, I found that around 51% of people may or may not switch, they decide as per
the schemes but we also found that the people mostly would like to switch if they get best
schemes with another brand. Also, 23.5% of people will not going to compromise with there
brands weather they got an promotional schemes from any other brand.
37
Figure No. 4.12
Standards Percentage
Yes 60.8%
No 17.6%
May be 21.6%
According to the graph most of the people are agreeing with the point that brand ones are better
than unbranded ones.
As per our survey, I found that around 61% of people thinks that the branded products are much
better than unbranded once but we also found that 17.6% of people don’t agree with the
statement. Also, 21.6% of people have no opinion on this statement.
38
CHAPTER 5
RESEARCH FINDINGS
1. The survey showed that the majority of the respondents are loyal towards their brand.
2. Brand name is the major attribute which attract the respondents to purchase branded
product.
3. According to the respondents the reason for the delay between the purchase decision and
actual purchase is ‘they wait for the more innovative product’.
4. The survey showed that the respondents are mostly influenced by their family/friends or
relatives to buy brands.
5. The respondents agree that the quality is a major factor in their purchase decision.
6. According to the survey most of the respondent s are neutral when it comes to the price
constraints in their purchase decision.
7. 45.1% respondents believe that product feature influence them to buy that product.
8. Most of the respondents in the survey are neutral about the influence of family member in
purchase decision.
9. About 50% respondents are neutral about the influence of peer group on purchase
decision.
10. The respondents are neutral about the influence of advertisement on purchase decision.
11. Most of the respondents in the survey are not sure that if they get some promotional
scheme with another brand, will they switch their brand preference or not.
12. Nearly 60.8% respondents believe that branded products are better than non-branded
products.
39
RESEARCH SCOPE AND LIMITATIONS
RESEARCH SCOPE
RESEARCH LIMITATIONS
I. The sample size is too small and it is based on convenient sampling so the conclusion
cannot be generalized to the entire population.
II. People did not know how to use the link to fill the form generated.
III. Some of the respondents were findings it difficult to comprehend the questions.
40
CONCLUSION
1. Indian people are price sensitive hence people like to purchase non-branded products as
compared to Branded products. Respondents prefer to purchase non-branded over
Branded products.
41
BIBLIOGRAPHY
1) https://docs.google.com/forms/d/e/1FAIpQLSdRdL7UgmAG1uELKhO2sKtesmc8u-
xt4yAA9cD3t5ZMI4Dj2A/viewform?usp=sf_link
2) http://www.allprojectreports.com/MBA-Projects/Marketing-Project-Report/AFFECT-
OF-BRANDING-ON-CONSUMER-PURCHASE-DECISION-IN-FMCG-GOODS-
AND-DURABLE-GOODS.htm
3) https://www.scribd.com/doc/38972194/Affect-of-Branding-on-Consumer-Purchase-
Decision-in-Fmcg-Goods-and-Durable-Goods
4) https://www.google.com/search?q=LITRATURE+REVIEW+effect+of+branding+on+co
nsumers+of+fmcg+products+and+durable+goods&rlz=1C1CHBF_enIN838IN838&oq=l
it&aqs=chrome.1.69i57j69i59j35i39j0l3.4091j0j7&sourceid=chrome&ie=UTF-8
42
APPENDICES
QUESTIONNAIRE
This is a short questionnaire about consumer purchase decision in FMCG & DURABLE Goods.
It would be great if you fill it. Thank You ;)*
Email address *
o Yes
o No
2. Which attributes did attract you to purchase branded products? Rank these attributes in
order of their importance to you. *
o Brand Name
o Price
o Easy Availability
o Transparent
o Cleanliness
o Other:
43
3. What was the reason for the delay between the purchase decision and the actual
purchase? *
o Financial constraints
o Waiting for more innovative product
o Waiting for market response
o Advertising
o Word of mouth
o Attractive packaging
o Dealer
o Shop Display
o Family/Friend/Relatives
o Any Other
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
o Strongly disagree
o Disagree
o Neutral
44
o Agree
o Strongly agree
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
o Strongly disagree
o Disagree
45
o Neutral
o Agree
o Strongly agree
11. Will you like to switch your brand preference if you get some promotional scheme with
another brand? *
o Yes
o No
o Maybe
12. Do you think branded products are better than unbranded products? *
o Yes
o No
o Maybe
46
PROJECT GUIDE COMMENT
47