The Influence of Brand Familiarity, Price Sensitivity, and Peer Influence on Consumers’ Brand Choice: Evidence from the FMCG Sector in Bangladesh

The FMCG sector in Bangladesh involves frequent buying and strong competition. Both the financial and social factors also influence the consumers. This study examines how brand familiarity, price sensitivity, and peer influence affect consumers’ brand choice in this sector. A quantitative and explanatory research design was used. A survey was conducted on 397 FMCG consumers to get the data. The descriptive statistics, the reliability analysis, the exploratory factor analysis, the Pearson correlation and the multiple regression were used to analyze the data. The findings indicate that peer influence is the strongest positive factor affecting brand choice (β = .426, p < .001). Brand familiarity is the second strongest positive factor (β = .406, p < .001). In contrast, price sensitivity has a significant negative effect on brand choice (β = −.280, p < .001). The regression model is statistically significant. It explains 34.3% of the variation in brand choice (R² = .343, Adjusted R² = .338; F(3, 393) = 68.356, p < .001). This research contributes to the body of knowledge on consumer behavior as it provides a joint account of brand selection in the FMCG market of a developing economy. The findings indicate that managers ought to develop a better brand familiarity, value-based pricing and apply peer-based communication strategies to enhance brand preference and customer retention.