Consumer Buying Behavior Of FMCG Products At Reliance

Consumer Buying Behavior concerns the consumer behavior of the end customer, i.e. individuals or households. Consumer buying behavior has changed due to a number of reasons e.g. the Internet, globalization, and the fact that today’s consumers have more disposable income.

Consumer behavior can be studies from varying perspectives like psychology and micro-economics, which have been the foundation of early research in this area. More recent perspectives like sociology and cultural anthropology have contributed to a larger picture of consumer behavior.

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The study involves describing the consumer buying behavior of FMCG products at Reliance Fresh. The methodology of research study was descriptive research. Descriptive research includes surveys and fact finding investigation. The major purpose of descriptive research is, description of state of affairs as it exists at present.

In this survey I found that most of the respondents are regular customer of Reliance Fresh. And they felt that Reliance Fresh is providing good service to the customer, means price of the FMCG products at Reliance Fresh is very convenient and reasonable.

In this survey we studied the buying pattern of FMCG products at Reliance Fresh. In this study an attempt is made to know whether the consumers are satisfied or not satisfied with the service, price, and quality of the products at Reliance Fresh.

Reliance Retail industry:

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Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India.

Reliance Fresh falls under Reliance Industries. It is the first retail venture of the Group. The company offers fresh fruits and vegetables, staples, groceries, fresh juice bars, FMCG products and dairy products and non-vegetarian items. Reliance Industries has invested nearly Rs. 3,000 crores to expand the Reliance Fresh stores. Reliance Fresh directly buys stock from the farmers to cut down on the wastage. The stores work on The Ranger Format which means selling of fresh vegetables to the road sellers. Reliance Retail has signed a pact with Apple for the establishment of a chain of Apple Specialty Stores branded as iStore, starting with Bangalore

Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs.

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Currently, selling through company-owned stores currently totals just $8 billion in India. Industry estimates say that the country’s retail industry is worth $300 billion, that is about Rs 13, 50,000 crore. This stands a chance to blossom to $427 billion in the next four years. Organized retail accounts for just over Rs 35,000 crore. RelianceFresh bids to tap the potential for organized retail in the country.

Introduction:

Understanding consumer buying behavior begins by understanding the general steps consumers go through before, during and after the purchase. By understanding each step, marketers can conduct marketing efforts to encourage customers to gravitate towards a purchase, and once a purchase has been made, find a satisfaction with their choices

Stages of the Consumer Buying Pattern:

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Problem Recognition (awareness of need), Information search, Evaluation of Alternatives, Purchase decision, Purchase, Post-Purchase Evaluation

Types of buying behavior:

Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made.

Habitual buying behavior is where the individual buys a product out of habit.

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Variety seeking buying behavior is where the individual likes to shop around and experiment with different products.

Dissonance reducing buying behavior is when buyer is highly involved with the purchase of the product, because the purchase is expensive or infrequent.

Problem Statement:

To make an comprehensive study of Reliance fresh & know the buying pattern of FMCG product at Reliance Fresh. Consumer buying pattern of FMCG product will be a primary force in determining how this transition will evolve. Getting closer to the consumer in today’s highly competitive landscape is essential for the entire industry and is no longer just a retail issue. It requires all organizations across the supply chain to work as a single enterprise, sensing and responding rapidly to consumer demand in a co-ordinate manner. Detailed study of the changing patterns of consumer demand, satisfaction and shopping trends can be analyzed through a FMCG retail players & can strategized for reliance FMCG.

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Objective of the Study:

To find out various dimensions which affect consumer buying pattern of FMCG product at Reliance Fresh.

To find out the expectation and satisfaction level of customers.

To know the major factors which influencing consumer buying pattern.

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To identify consumer preferences towards shopping of FMCG product.

Methodology:

The methodology of research study was descriptive research. Descriptive research includes surveys and fact finding investigation. The major purpose of descriptive research is, description of state of affairs as it exists at present.

Sampling Technique: Simple Random sampling is used

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A sample size of 100 respondents has been taken

Data Collection: Primary data for research are collected from direct resources i.e. customer of Reliance fresh who visit retail outlet through questionnaire.

Limitation of the study:

The study was limited to few Reliance Fresh outlets which is located Bangalore north There can be response bias from the respondents, which limits the validity of findings.

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Analysis of the data:

Showing the percentage of the customer’s with Reliance Fresh.

Table – 1

Opinion

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No of responds

Percentage

Yes

91

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91%

No

9

9%

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100

100%

Out of 100 respondents who participated in survey 91% were the customer of Reliance Fresh and 9% were not the customer of Reliance Fresh. So majority of respondents who participated in survey were customer of Reliance Fresh.

Showing the no of customer regularity with Reliance Fresh.

Table – 2

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Particulars

No of Respondents(%)

Rare

10

Frequently

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30

Regular

47

Only when there is offer & discount

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4

91

So majority of respondents who participated in survey like to purchase regularly and least like to purchase only when there is offer and discount.

Showing the grounds (basis) for customers opting for Reliance Fresh product.

Table – 3

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Grounds

No of Respondents

Percentage

Convenient

35

35

Good services

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17

17

Product assortment

5

5

Ambiance

Can You Provide Outlines First?

Absolutely! We’ll draft an outline based on your topic so you can approve the plan before we write—keeps everything aligned from the start.

5

5

Reasonable price

30

30

Promotional offers

8

8

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100

100

It is infer that due to convenient majority of respondents prefer Reliance Fresh and due to product assortment & ambience least respondents prefer Reliance Fresh for purchasing the FMCG products.

Showing the awareness of the FMCG product category in Reliance Fresh.

Table – 4

Product category

Yes

No

Total

House hold care

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84

16

100

Food &Beverage

98

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2

100

Personal care

90

10

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100

Groceries

69

31

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100

Fruits & vegetables

100

0

100

Majority of sample unit were aware of FMCG products category in Reliance Fresh. And least percentage of sample units was not aware.

Showing the appeal factor during purchase with customer.

Appeals

No of Respondents

Percentage

Window shopping

8

8%

Ambience

17

17%

Demonstration of the product

24

24%

Entertainment

3

3%

Quick service

48

48%

If any other specify

0

0%

100

100%

Table – 5

Consumer give importance toward appeal factor is quick service because of which reliance outlet was preferred by consumer .

Hypothesis:

H0: There is a significance difference between expectation and satisfaction level of customers

H1: There is no significance difference between expectation and satisfaction level of customers

At 5% level of significance H0 is accepted

Ho : There is a significance relationship between the perception of the consumer toward reliance fresh

H1: There is no significance relationship between the perception of the consumer toward reliance fresh

At 5% level of significance H1 is accepted

FINDINGS:

Majority of respondents who participated in survey like to purchase regularly and least like to purchase only when there is offer and discount.

Most of the customers preferred Reliance Fresh because it is more convenient and due to reasonable price and very few preferred due to good services and other reasons.

Most of the customers agreed that they are aware of the entire FMCG product category available in Reliance Fresh.

Most of the customer responded that there is quick service & demonstration of the product. And least percentage of the respondents appealed for entertainment & window shopping.

Most of the customers felt that if preferred brand is not available in the store (Reliance Fresh) then they will prefer some other store. And least percentage goes for another option.

Customers felt that the price of the products at reliance fresh were economic compared to its competitors, very few felt it was expensive.

Most of the respondents felt that sales personnel in Reliance Fresh were skillful in solving the problem regarding guiding and product identification.

On an average mostly respondents has given the good rating for ambience, after sales service and store layout, and average for sales personnel.

CONCLUSION: –

It can be concluded that behavior pattern of the customer is influence by the product and service quality price and brand, consumer buying pattern is influenced by the store layout, ambiance, behavior of sales personnel, and after sales service of Reliance Fresh. Most of the customers are ready to buy some product from another retail outlet, if they are not finding good quality of products there in Reliance Fresh. Means customer want up gradation of the product at Reliance Fresh. So that Reliance Fresh can face a tuff competition with the other retail outlet.

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