Description
Individual items are of small value. But all FMCG products put together account for a significant part of the consumer's budget.
Characteristics of FMCG
? Individual items are of small value. But all FMCG products
put together account for a significant part of the consumer's
budget.
? The consumer keeps limited inventory of these products and
prefers to purchase them frequently, as and when required.
Many of these products are perishable.
? The consumer spends little time on the purchase decision.
Rarely does he/she look for technical specifications (in
contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase
decisions.
? Trial of a new product i.e. brand switching is often induced by
heavy advertisement, recommendation of the retailer or
neighbors/friends.
? These products cater to necessities, comforts as well as
luxuries. They meet the demands of the entire cross section of
population. Price and income elasticity of demand varies
across products and consumers.
doc_293390839.docx
Individual items are of small value. But all FMCG products put together account for a significant part of the consumer's budget.
Characteristics of FMCG
? Individual items are of small value. But all FMCG products
put together account for a significant part of the consumer's
budget.
? The consumer keeps limited inventory of these products and
prefers to purchase them frequently, as and when required.
Many of these products are perishable.
? The consumer spends little time on the purchase decision.
Rarely does he/she look for technical specifications (in
contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase
decisions.
? Trial of a new product i.e. brand switching is often induced by
heavy advertisement, recommendation of the retailer or
neighbors/friends.
? These products cater to necessities, comforts as well as
luxuries. They meet the demands of the entire cross section of
population. Price and income elasticity of demand varies
across products and consumers.
doc_293390839.docx