Cluster Analysis of the "Trustworthy Product" Criteria, in the FMCG Sector - Aspects of the Hungarian Product Remuneration System in the FMCG Sector

Abstract

The focus of this research is that a new reward system will be introduced for the evaluation of FMCG products, to be marketed in Hungary. Similar to the previously used Superbrands and MagyarBrands product awards, a new system is being developed called “Reliable Product”. From a research point of view, the awarding of the Reliable Product award is conditional upon the development of a set of metrics that are acceptable to all, and which will allow a clear decision on the criteria for the award. This requires, however, a thorough understanding of the public's perception of the criteria by which an FMCG product is considered reliable. The results of the study will be used for the development of a reliability award scheme in Hungary, the main criterion for the award of which, is a survey of consumer opinions. The main objective of this research was to understand the relationship between the 22 FMCG categories observed and their reliability. The importance of reliability was assessed using a Likert Scale from 1 to 5. Hierarchical clustering was chosen, because this method segments the variables, rather than the cases. In our case, product categories serve as a kind of variable, since we had 22 such categories. In our secondary research, we reviewed literature from other directions, for example, on consumer behavior and branding. Much of the literature describes brand equity in terms of value for money and does not explore reliability in depth. Therefore, in our primary research, we conducted an online representative survey with a large sample size (n=600) with the aim of gaining deeper insights into the opinions of the Hungarian population for the 22 most important FMCG product categories. The concept of trustworthiness is described in different ways by marketers, with the general approach being that products (brands, where relevant) are considered trustworthy if they meet the expectations of a majority of consumers, whether in terms of quality, functionality or other aspects, such as, value for money. Reliability is often expressed in terms of a consumers' willingness to repurchase a product or their confidence in recommending it to others.