ASSESSMENT OF FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR: TOWARDS SELECTED FAST MOVING CONSUMER GOODS (FMCG) IN ADDIS ABABA

Abstract

This research focused on assessment of factors influencing consumer buying behavior towards selected fast moving consumer goods (FMCG) in Addis Ababa. With the intent of studying consumers who are at the core of everything marketers do, this study was directed at the fast-moving consumer goods (FMCG) segment. Through the development of a conceptual model that contains five independent variables (Product Quality, Price, Advertisement, Availability, Brand Equity), this study tried to probe the buying behavior of consumers in three FMCG products. The objective of the study is primarily aimed at distinguishing the most important factors affecting the consumer's decision and buying behavior within the various sub categories of FMCG. The study employed a mix of research designs to attain its objectives. An extensive review of the literature and previous studies has been undertaken to develop the conceptual framework or model which was deployed into the empirical test. This is followed by a descriptive analysis of the cross-sectional primary data collected through questionnaires to accomplish the objective of presenting the profile of FMCG consumers as well as most influential sources of information for brand awareness in Addis Ababa. This study was undertaken within the conceptual model developed through the exploratory study and focus group discussion between marketing, research and brand managers in the market. These methods resulted in a conceptual model based on the adoption of Kotler's black box model with product quality, price, availability, advertisement and brand equity as the independent variables influencing buying behavior. Differences were reported between the influencing variables and the magnitude of their impact on buying behavior across the sub-categories. Advertisement was not accepted as a significantly contributing variable within the buying behavior of laundry bar soap and packaged milk products, while it was one of the significant predictors in the toothpaste subcategory. The FMCG business is growing because of the integration of the country in to the trend of consumerism, which is a result of urbanization and modern life style as well as with the entrance of big FMCG’s in to the market. FMCG marketers should also be wary of the specific target markets of their different products and brands. An important strategy or pathway that should be adopted by the FMCG marketers in this environment is to take the issue of brand awareness as one of their top priority.