Posted in Marketing and Strategy Terms, Total Reads: 496
Definition: Buying by Sample
When a consumer makes their purchase decision by the method of testing a sample item or a portion of a product, it is called buying by sample. In the FMCG industry, buying by sample is an extremely common phenomenon. The products that are most affected by this phenomenon are shampoos, food items and other products.
Consumption can be classified into two types: trial consumption and repeat consumption. Repeat consumption brings about the majority of profits earned by a company. However, it is the trial consumption that leads to consumers switching to a particular brand from its competitor or converted from being a non-user to a user.
For example, shampoo sachets in India has a large market of their own. On one hand, it serves as a trial consumption SKU for a large number of buyers, mainly urban. On the other hand, it is a repeatedly purchased SKU and is a form of regular consumption product in large parts of rural India.