FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR TOWARDS FAST MOVING CONSUMER GOODS /FMCG/ IN ADISS ABABA

Abstract

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, the purpose of the study to distinguish the most important factors affecting the consumer's decision and buying behavior of Bottled water in Addis Ababa. It was hypothesized in this study that product quality, price, availability, advertisement and brand equity significantly influence buying behavior of consumers in Addis Ababa. The independent variables were developed through exploratory research method and adoption of major theoretical foundations. Data was collected through structured questionnaires from shoppers and consumers of the products under investigation to put the conceptual model in to the empirical test. Descriptive and inferential statistics analysis was performed using SPSS version 21 software to analyze the data and arrive at its findings. The finding indicates that the influencing variables of buying behavior all of the variables was significant but, brand equity, product quality and advertisement was the most significant and the demographic profile of shoppers indicates that the market is highly dominated by the purchasing decisions of females within the households in Addis Ababa plus Tv and Radio advertising, Retailer's recommendation, as well as exposure to brands in shops have been identified as the most important sources of information. An important implication for marketers is the development of marketing strategies based on the right knowledge of the decision maker and shopper. Results also gives direction for companies and marketers of such products to give attention to consumers behavior to be successful, to focus on the identified target market while devising their strategy and to give priority for the issue of brand awareness.