PRICE PREMIUM FAST-MOVING CONSUMER GOODS

Abstract: Title: Price Premium FMCG products - An exploratory study of the underlying factors why consumers would be willing to pay more Date of seminar: 5th June, 2018 Course: BUSN39 Degree project in Global Marketing Authors: Tanvir Ahmed Shuvo & Mentor Krasniqi Supervisor: Burak Tunca Keywords: FMCG, Price Premium, Consumption, Consumer behavior, Consumer culture, Quality, Perceived Value, Conspicuous Consumption, Product Involvement. Thesis purpose: The purpose of our study is to examine what underlying factors affect consumers’ willingness to pay premium price for fast moving consumer goods. Method: We have chosen a qualitative, descriptive study with an abductive reasoning approach where we have conducted qualitative interviews with target consumers. Theoretical perspective: Our theoretical frameworks is divided into two major section. Consumer culture and consumer behavior theories. These theories aim to give a deeper understanding of consumer culture and consumer behavior which lead us to explore sociocultural and behavioral dynamics that drive premium FMCG consumption. Empirical data: The empirical data is gathered through eleven n-depth interviews which brought us width and depth in the insights of underlying factors behind premium FMCG consumption. Conclusion: All the collected data entails that the most influential factors, that affect consumers’ willingness to pay price premium for FMCGs, are Superior Quality, Product Involvement and Prestige & Self-esteem. Other strong factors were Taste & Cultural Capital, Health Consciousness and Brand & Loyalty, whereas some weak factors were found as well in Marketing & Advertisement, Packaging, Sustainability and Compulsive & Impulsive shopping.