CONSUMER BEHAVIOUR WITH PRODUCT (READY-TO-EAT PRODUCT)

BACHELOR OF MANAGEMENT STUDIES

(2013-2014)

PROJECT GUIDE: Prof. ZEENAT KHAN

SUBMITTED BY

APEKSHA PAWAR

CHIKITSAK SAMUHA’S

S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND

V.P. VARDE COLLEGE OF COMMERCE &ECONOMICS

S.V ROAD, GOREGAON (WEST), MUMBAI – 400 062.

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CONSUMER BEHAVIOUR WITH PRODUCT (READY-TO-EAT PRODUCT)

BACHELOR OF MANAGEMENT STUDIES

(2013-2014)

Submitted

In Partial Fulfilment of the Requirements

For the Award of Degree of Bachelor of Management Studies

BY

APEKSHA PAWAR

CHIKITSAK SAMUHA’S

S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND

V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS

S.V ROAD, GOREGAON (WEST), MUMBAI – 400 062.

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CHIKITSAK SAMUHA’S

S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND

V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS

S.V ROAD, GOREGAON (WEST), MUMBAI – 400 062.

CERTIFICATE

This is to certify that Mr/Miss. APEKSHA PAWAR

Of Bachelor of Management Studies (2013-2014) has successfully

completed the project on CONSUMER BEHAVIOUR WITH

PRODUCT (READY-TO-EAT PRODUCT) under the guidance

of Prof. ZEENAT KHAN

Course Co-ordinator Principal

Project Guide/ Internal Examiner

External Examiner

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DECLARATION

I APEKSHA PAWAR the student of Bachelor of Management Studies (2013 -2013) hereby declare that I have completed the project on CONSUMER BEHAVIOUR WITH PRODUCT (READY-TO-EAT PRODUCT).

The information submitted is true and original to the best of my Knowledge.

Signature

APEKSHA PAWAR

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ACKNOWLEDGEMENT

Selection of this project topic and in depth study on it gave momentum to

our subdued and dormant brain and it was an opportunity to learn more and

expand our horizon.

During the course of our project work being carried out at Patkar College,

we are receiving the valuable support and kind co-operation of number of

people. We are deeply indebted to our guide, our subject teacher, and group

members, for their continuous and priceless suggestion without which we

would not have been able to succeed in our project work carried on until

now.

We are also obliged to head of department Mrs. Zeenat khan who

extended their sincere help in present study.

We are also thankful to our internal guide, for their valuable suggestion and

guidance we also support. We express our gratitude towards our principal

Mr. Kenkare, for their continuous support

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OB JECTIVES

i. To ascertain the behaviour of consumers towards ready-to-eat food products.

ii. To study the purchase behaviour of ready-to-eat food products.

iii. To evaluate brand preference of the consumers.

iv. To study the factors influencing brand preference.

v. To evaluate alternative purchase plans of the consumers.

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CONSUMER BEHAVIOUR WITH PRODUCT (READY-TO-EAT-PRODUCT)

EXECUTIVE SUMMARY

This study shows the behaviour of consumers towards different ready-to-eat products. It shows that which ready-to-eat brand is mostly preferred by the consumers, What compels them to buy that particular brand, From where do they become aware of such products. It shows what factors affect consumer buying behaviour.

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SR.NO CONTENTPAGE NO

1 INTRODUCTION

2 CONSUMER BEHAVIOUR

2.1 Meaning

2.2 Factors affecting Consumer behaviour

2.3 Buying process

3 REVIEW OF LITERATURE

3.1 Awareness of consumers towards branded products

3.2 Purchase behaviour of consumers

3.3 Brand preference

3.4 Factors influencing brand preference

3.5 Alternative purchase plans

4 METHODOLOGY

4.1 Description of study area

4.2 Sampling design and data collection

4.3 Analytical tools employed in the study

5RESULTS

5.1 Awareness of consumers towards branded ready to eat food products.

5.2 Purchase behaviour of consumers towards ready to eat food products.

5.3 Brand preference of the consumers.

5.4 Factors influencing brand preference.

5.5 Alternative purchase plans of the consumers.

6 DISCUSSION

6.1 Awareness of consumers towards branded ready-to-eat food products.

6.2 Purchase behaviour of consumers towards ready to eat food products.

6.3 Brand preference of the consumers.

6.4 Factors influencing brand preference.

6.5 Alternative purchase plans of the consumers.

7 SUMMARY AND POLICY IMPLICATIONS

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1. INTRODUCTION

There is nobody in the world who is left out of the class of consumers. The

consumerhood continues till one’s last breath in the world.

The consumer purchases a variety of goods and services to satisfy his wants and he

is always influenced in his purchasing activities by some considerations which lead him to

select a particular commodity or a particular retail store in preference to others. So, consumer

buying is more complex. Consumer purchases are likely to be influenced by physiological,

psychological and sociological factors. The commodities and services are brought by the

consumer to satisfy his basic needs, for comfort, pleasure, recreation and happiness. Every

individual has physiological need such as hunger, shelter, thirst, etc., which have to be

satisfied for survival. The psychological factors like status prestige and social factors like

friends, neighbours, job and relatives influence their purchasing activities.

People bear certain beliefs and attitudes towards certain types of goods, brands of

commodities and retail outlets based on their previous experience. When there is a need, they

are able to discover some new commodities capable of satisfying their needs. Before the

commodities and brands are selected, these commodities must compete successfully against

alternatives in the market. The selection of a particular commodity becomes important for

consumer since there are wide varieties of consumer goods in the market. Again selection of

a particular commodity depends on income of the consumer and necessity of the product to

the individual. Before the selection of the commodity purchased, an individual requires

information regarding the various sources of supply of the commodity, its brands, relative

merits and demerits, uses and value of their characteristic features and services offered. The

common sources through which individual gathers information are from advertising media

(television, radio and news papers), friends, retailers in the locality, displays in shops and

food labels.

India is one of the largest food producers of the world with the organised sector

accounting for food output worth US $34827 million, only a small percentage of its farm

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produce is processed into value-added products. For instance, even though the country is the

second largest producer of fruits and vegetables, hardly two per cent of the production is

processed. This underlines the enormous scope for investing in the processed food sector in

the areas of infrastructure, packaging and machinery. India, in fact, needs US $28 billion of

investment to raise its food processing levels by 8-10 per cent.

The potential for investment in this sector is further accentuated by the following

factors:

• A huge and exponentially growing demand represented by a market of one billion people

spending on an average about 50 per cent of household expenditures on food coupled by a

scenario of rapid urbanization and changing lifestyles.

• A 30 million upper and middle class segment of the total population consume processed and

packaged food with another 200 million people, projected to shift to this group by 2010.

Thanks largely to rapid urbanization and changing lifestyles.

• Well-developed infrastructure and distribution network.

• Increase in per capita income and purchasing power.

• Large pool of scientific, technical and skilled manpower.

• Introduction of series of investment friendly initiatives by the Government including

strengthening and augmenting of road and rail network, modernization of ports, prioritization

of infrastructure for post harvest management, logistics (including cold chain), markets,

retailing, food processing.

• Introduction of a number of liberal policy initiatives by the Government to boost food

processing activities.

• 53 food parks approved to enable small and medium food and beverage units to set up and

to use capital intensive common facilities such as cold storage, warehouse, quality control

labs, effluent treatment plant, etc.

Over the past five decades, India has taken giant steps in producing food grains, milk,

fruits and vegetables. The production of raw food materials is estimated to worth over Rs.

60,000 crore. After primary, secondary and tertiary processing, the total size of the industry is

estimated to be as high as Rs. 1,10,000 crore. This cost overrun reflects the opportunities that

food processing industry offers to the economy as a whole and entrepreneurs in individual.

Big opportunities lie in upgradation from commodities to packaged and branded products and

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convenient foods, which offer value for money, products focused towards children and young

adults and products catering to those who lead a fast modern day life. Realizing the potential

and in order to provide further boost, the government has exempted from excise duty for

condensed milk, ice cream, preparations of meat, fish and poultry, pectins, pasta and yeast.

Further, excise duty on certain ready-to-eat packaged foods is reduced to 8 per cent from 16

per cent. The food processing industry will also be benefited from the reduction in excise

duty on paper, a cut in customs duty on major bulk plastics and a reduction of customs duty

on packaging machines, which would reduce packaging costs (Budget, 2007).

The Food Processing Industry In India

The Food processing industry has an important role to play in linking the farmers to the

final consumers in the domestic as well as the international markets. Food processing

combined with marketing has the potential of solving the basic problems of agricultural

surpluses, wastages, rural jobs, and better remuneration to the growers. In the next ten years,

food production is expected to double. These produces, if processed and marketed smartly,

can make India a leading food supplier of the world.

India with a population of 1.08 billion (growing at about 1.70% per annum) provides

a large and growing market for food products. Food products are the single largest

component of private consumption expenditure, accounting for as much as 49.00 per cent of

the total spending. Furthermore, the upward mobility of income classes and increasing need

forconvenience and hygiene is driving demand for (a) perishables and non food staples and

(b) processed foods. Also, eating out is a booming practice in urban India and processed

foods are accepted as alternative to the home cooked food because of the convenience it

offers. Also, with the globalization of trade and availability of high speed logistics, food

retailers in developed countries are sourcing an year-round supply of fruits and vegetables

from developing countries. Thus, both for local consumption as well for export there is a year

round opportunity for fruits and vegetables, meat and poultry products and ready-to-eat

processed foods.

The total exports of Indian food processing industry had increased by about three

times to Rs. 53,000 crores in 2003-04, from Rs. 17,600 crores in 2002-03. Considering the

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greater potential for food processing industry in India, government had committed to

encourage various activities for the development of this sector. Indian government had been

giving importance to the food processing sector, by way of fiscal incentives to encourage

commercialization and value addition of agricultural produce, for minimizing pre/post

harvest wastage, generating employment and export growth. The government gave five-year

tax holiday for new food processing units in fruits and vegetable processing. From 2000-01 to

2006-07 government had also approved proposals for joint ventures; foreign collaboration,

industrial licenses and 100.00 per cent export oriented units envisaging an investment of Rs.

19,100 crores during 2002-03. Out of this, foreign investment was over Rs. 9100 crores.

The processed food industry should introduce innovative new products of high

quality at low cost in small package sizes in ready-to-eat format. To cash on this booming

opportunity, smart players have to enter the growing market with a high potential of retail

Foreign Direct Investment (FDI).

Ready-to-eat food products

Unlike olden days where man used to have his food lavishly and slowly, the present

trend changed the habits of foods, which are simple and easy to digest. Hence, the existence

of these foods fulfilled all the needs of modern human being. Canned foods, convenience

foods, fast foods, frozen foods, instant products, dried foods, preserved foods, etc. all comes

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under ready-to-eat foods. The food habits in India have changed due to the western influence

and the usage of these foods is also on the rise.

In India, majority of food consumption is still at home. Nevertheless, out of home food

consumption is increasing due to increase in urbanization, breaking up of the traditional joint

family system, desire for quality, time which translates into an increased need for

convenience, increasing number of working women, rise in per capita income, changing

lifestyles and increasing level of affluence in the middle income group had brought about

changes in food habits. In the last two decades, the share of urban population has increased

from 23.30 per cent in 1981 to 27.80 per cent in 2001. During the same period the female

work participation rate had increased from 19.70 to 25.70 per cent. The per capita income

increased from Rs. 7,328 in 1980-81 to Rs 10,306 in 2000-01. The change in food habits was

evident from the growth of food processing industries.

Generally, food is prepared depending on the habits, tastes, social status, economic

factor, availability, traditions, habitats, etc., of the people of that region. The most sought

after in the present age are the ready- to- eat foods.

Ready-to-eat food is food offered or exposed for sale without additional cooking or

preparation, which is packaged on the premises where they are being sold and are ready for

consumption.

With the income level rising, demand for milk, meat, fish, fruits and vegetables is also

increasing in India. With more urbanization, Indian families also consume more processed

foods, more ready-to-eat foods, etc. Asian Americans, now numbering over 10 million along

with the other 13 million persons of Indian origin spread all over the world are a huge

potential market for the Ready-to-eat (RTE) foods out of India. This creates a scope for the

producers to come out with a long range of dishes including the usual meals. India had been

at the forefront for variety of dishes both in domestic and global market. Ready-to-eat foods

are very popular in the western region of the world. Even India is being influenced by these

ready-to eat foods.

Development of the metropolitan cities due to increase in population, emergence of

industries, evolution of various new factors, time factor, etc., created the need for ready-to-eat

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foods in the market. Due to industrialization, the labour category is getting attracted to it

because of better emoluments and hence there is shortage of home maid-servants. Due to this,

the housewives, in order to save time started using ready-to-eat foods.

As the literacy rate is increasing among the women, a large number of them in our

country are taking up jobs to setup their own status in the society and to use the extra income

generated. These are creating the need for ready-to-eat foods. Earlier times, a single family

consisted of many people i.e., a group of several nuclear families were living in a single

place. Hence, larger quantities of the food were used to be prepared. But as these joint

families started disappearing due to various reasons, each single family started using these

ready-toeat foods in order to save time and energy.

Due to establishment of multi- national companies in India, the lady of the house also

started working, because of which there is no time to prepare food at home. Hence, this

created the need for using ready-to-eat foods. The standard of living is also changing due to

people are changing their taste to ready-to-eat foods more compared to the old traditionally

prepared foods.

In the modern era, the media, particularly electronic and print media, are playing an

important role in creating awareness of the products manufactured and released in the market.

All these factors are responsible for the popularity of ready-to-eat food products in Indian

market. The marketers should see to it that the ready-to-eat food is available to the consumers

without any difficulty at competitive rates. The products should be provided to consumers by

keeping in mind as when they want, where they want and the manner in which they want.

These methods help in increasing the sales of the product with good feedback from the

customers and creating niche for ready-to-eat foods in the market.

Problem focus

Several firms had been engaging in production and marketing of ready-to-eat food

products. Hence, the consumers had a greater option to choose from. In this context, a study

on consumer behaviour was seemed to be important to understand the buying behaviour and

preferences of different consumers. Understanding the consumer behaviour would help the

firms in formulating strategies to cater to the needs of the consumer and thereby increase

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their market share. Consumer’s taste and preference were found to change rapidly, especially

in a dynamic environment.

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2 . CONSUMER BEHAVIOUR

2.1 MEANING

Consumer behaviour is the study of individuals, groups, or organizations and the

processes they use to select, secure, and dispose of products, services, experiences, or ideas to

satisfy needs and the impacts that these processes have on the consumer and society. [1] It

blends elements from psychology, sociology, social anthropology and economics. It attempts

to understand the decision-making processes of buyers, both individually and in groups. It

studies characteristics of individual consumers such as demographics and behavioural

variables in an attempt to understand people's wants. It also tries to assess influences on

the consumer from groups such as family, friends, reference groups, and society in general.

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2.2 FACTORS AFFECTING CONSUMER BEHAVIOUR

1. Cultural Factors:

Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture,

and social class.

• Culture

Basically, culture is the part of every society and is the important cause of person wants and

behavior. The influence of culture on buying behavior varies from country to country

therefore marketers have to be very careful in analyzing the culture of different groups,

regions or even countries.

• Subculture

Each culture contains different subcultures such as religions, nationalities, geographic

regions, racial groups etc. Marketers can use these groups by segmenting the market into

various small portions. For example marketers can design products according to the needs of

a particular geographic group.

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• Social Class

Every society possesses some form of social class which is important to the marketers

because the buying behavior of people in a given social class is similar. In this way marketing

activities could be tailored according to different social classes. Here we should note that

social class is not only determined by income but there are various other factors as well such

as: wealth, education, occupation etc.

2. Social Factors:

Social factors also impact the buying behavior of consumers. The important social factors

are: reference groups, family, role and status.

• Reference Groups

Reference groups have potential in forming a person attitude or behavior. The impact of

reference groups varies across products and brands. For example if the product is visible such

as dress, shoes, car etc then the influence of reference groups will be high. Reference groups

also include opinion leader (a person who influences other because of his special skill,

knowledge or other characteristics).

• Family

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are

trying to find the roles and influence of the husband, wife and children. If the buying decision

of a particular product is influenced by wife then the marketers will try to target the women

in their advertisement. Here we should note that buying roles change with change in

consumer lifestyles.

• Roles and Status

Each person possesses different roles and status in the society depending upon the groups,

clubs, family, organization etc. to which he belongs. For example a woman is working in an

organization as finance manager. Now she is playing two roles, one of finance manager and

other of mother. Therefore her buying decisions will be influenced by her role and status.

3. Personal Factors:

Personal factors can also affect the consumer behavior. Some of the important personal

factors that influence the buying behavior are: lifestyle, economic situation, occupation, age,

personality and self concept.

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• Age

Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that

the consumers change the purchase of goods and services with the passage of time. Family

life-cycle consists of different stages such young singles, married couples, unmarried couples

etc which help marketers to develop appropriate products for each stage.

• Occupation

The occupation of a person has significant impact on his buying behavior. For example a

marketing manager of an organization will try to purchase business suits, whereas a low level

worker in the same organization will purchase rugged work clothes.

• Economic Situation

Consumer economic situation has great influence on his buying behavior. If the income and

savings of a customer is high then he will purchase more expensive products. On the other

hand, a person with low income and savings will purchase inexpensive products.

• Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying behavior.

Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her

surroundings. It is determined by customer interests, opinions, activities etc and shapes his

whole pattern of acting and interacting in the world.

• Personality

Personality changes from person to person, time to time and place to place. Therefore it can

greatly influence the buying behavior of customers. Actually, Personality is not what one

wears; rather it is the totality of behavior of a man in different circumstances. It has different

characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to

determine the consumer behavior for particular product or service.

4. Psychological Factors:

There are four important psychological factors affecting the consumer buying behavior.

These are: perception, motivation, learning, beliefs and attitudes.

• Motivation

The level of motivation also affects the buying behavior of customers. Every person has

different needs such as physiological needs, biological needs, social needs etc. The nature of

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the needs is that, some of them are most pressing while others are least pressing. Therefore a

need becomes a motive when it is more pressing to direct the person to seek satisfaction.

• Perception

Selecting, organizing and interpreting information in a way to produce a meaningful

experience of the world is called perception. There are three different perceptual processes

which are selective attention, selective distortion and selective retention. In case of selective

attention, marketers try to attract the customer attention. Whereas, in case of selective

distortion, customers try to interpret the information in a way that will support what the

customers already believe. Similarly, in case of selective retention, marketers try to retain

information that supports their beliefs.

• Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since such beliefs

and attitudes make up brand image and affect consumer buying behavior therefore marketers

are interested in them. Marketers can change the beliefs and attitudes of customers by

launching special campaigns in this regard.

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2.3 BUYING PROCESS

There are 5 stages which a consumer often goes through when he/she around their Purchase. These stages also exist because of normal human psychology.These 5 stages are:

Problem/Need Recognition - This is in general the first stage in which the consumer recognizes that what essentially is the problem or need and hence accordingly a consumer can identify the product or kind of product which would be required by the consumer. The buying process begins with need recognition or problem awareness. At this stage, the customer, firstly, recognises a problem or need (example, I am thirsty, I need a new clothe, I need a house) or attracted to an advertisement (example. you seeing a billboard showing a chilled ice cream on scorching sunny day).

Information Search - After the buyer has recognised the need for something or an existing problem, the customer then moves on to the next stage; searching for information. An “aroused” customer then needs to decide how much information, if any, is required. If the need or the problem is so pressing and there is a product or service close at hand that meets the need or solves the problem, then a purchase decision is made immediately. If not, then the

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process of searching for information begins. There are several sources that a customer can obtain information. For example;

• Personal sources: family, friends, neighbours . • Commercial sources: advertising, salespeople, retailers, dealers, packaging, point of sale displays.• Public sources: newspapers, radio, television, consumer organisations, specialist magazines • Experiential sources: handling, examining, using the product.

Evaluation of Alternatives - In this stage, the consumer evaluates the different alternatives which the consumer comes across, when the consumer was searching for information. Generally in the information search the consumer comes across quite a few products and thus now the consumer has to evaluate and understand which product would be properly suited for the consumer.

Purchase -After the consumer has evaluated all the options and would be having the intention to buy any product, there could be now only two things which might just change the decision of the consumer of buying the product that is what the other peers of the consumer think of the product and any unforeseen circumstances. Unforeseen circumstances for example in this case could be financial losses which led to not buying of the product.

Post Purchase Behavior -After the purchase the consumer might just go through post purchase dissonance in which the consumer feels that buying the other product would be better. But a company should really take care of it, taking care of post purchase dissonance doesn't only spread good words for the product but also increases the chance of frequent repurchase.

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3. REVIEW OF LITERATURE

In this chapter, research work done in the past regarding awareness, purchase

behaviour, brand preference, factors influencing brand preference and alternative purchase

plans has been reviewed and presented under the following sub-headings.

3.1 Awareness of consumers towards branded products

3.2 Purchase behaviour of consumers

3.3 Brand preference

3.4 Factors influencing brand preference

3.5 Alternative purchase plans

3.1 AWARENESS OF CONSUMERS TOWARDS BRANDED

PRODUCTS

Aaker (2000) opined that, brand awareness was remarkably durable and sustainable

asset. It provides a sense of familiarity especially in low- involvement products such as soaps,

a sense of presence or commitment and substance and it was very important to recall at the

time of purchasing process. Apart from the conventional mass media, there were other

effective means to create awareness viz., event promotions, publicity, sampling and other

attention getting approaches.

Brown et al. (2000) reported that the need for effective nutritional education for young

consumers has become increasingly apparent, given their general food habits and behaviour,

particularly during adolescence and analyzed that the interaction between young consumers’

food preferences and their nutritional awareness behaviour, within three environments (home,

school and social interaction appears to be somewhat overshadowed by the young consumers,

while developing an independence trait, particularly, during the adolescent years.

The authors suggested that food preferences are often of a ‘fast food’ type and consequently

the food habits of many young consumers may fuel the consumption of poorly nutritionally

balanced meals. While young consumers were aware of healthy eating, their food preference

behaviour did not always appear to reflect such knowledge, particularly within the school and

social environments.

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Beverland (2001) studied the level of brand awareness within the New Zealand market

for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi fruit,

New Zealand was studied. The implications of the findings for agribusiness in general using

the data collected from surveys of kiwi fruit consumers (n=106) outside three major super

market chains in Auckland, New Zealand, suggested that the level of brand awareness for

ZESPRI is low among consumers. It is indicated that brand awareness could be increased

through a relationship- making programme involving targeted marketing and supply chain

management.

Chen (2001) expressed a different thought on brand awareness that it was a necessary

asset but not sufficient for building strong brand equity. In this view, a brand could be well

known because it had bad quality.

Yee and Young (2001) aimed to create awareness of high fat content of pies, studied

consumer and producer awareness about nutrition labeling on packaging. For this, seven

leading pie brands were analyzed for fat content and are ranged from 7.10 to 19.20 per cent

fat. Potato topped or cottage pies had the lowest fat content (7.10 - 9.20% fat). Most pies did

not display nutritional labeling on packaging. Over half of the consumers (52.00%) who

responded to the survey (42.00% response rate) were aware of the campaign. The study was

successful at raising consumer awareness about the high fat content of pies and influencing

the food environment with a greater availability of lower fat pies. It is possible to produce

acceptable lower fat pies and food companies should be encouraged to make small changes to

the fat content of food products like pies. Potato topped pies are lower in fat and are widely

available. Regular pie eaters could be encouraged to select these as a lower fat option.

Ramasamy et al. (2005) reported that, the buying behaviour is vastly influenced by

awareness and attitude towards the product. Commercial advertisements over television was

said to be the most important source of information, followed by displays in retail outlets.

Consumers do build opinion about a brand on the basis of which various product features

play an important role in decision making process. A large number of respondents laid

emphasis on quality and felt that price is an important factor while the others attached

importance to image of manufacturer.

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3.2 PURCHASE BEHAVIOUR OF CONSUMERS

Balaji (1985) studied fish consumption behaviour of 526 consumers in Vishakapatnam

city. The study revealed that 77.00 per cent of respondents consumed fish for dinner and

22.00 per cent for lunch. About 30.00 per cent of the respondents did not consume fish on

festival days, as those days were considered auspicious, while the rest had no notations and

consumed fish, irrespective of festivals.

Jorin (1987) examined changes in spending power and buying habits of Swiss

consumers since the beginning of the 20th century and in the more recent past. Current trends

include greater emphasis on health and safety of foodstuffs and less attention to price,

increased demand for low calorie light products and increased demand for organically grown

foods. For young people, more concern with enjoyment and less for health, with more meals

eaten from home and generally an increased demand for convenience foods. The prospects

for high quality branded products were seen to be good.

Puri and Sanghera (1989) conducted a study to know the consumption pattern of

processed products in Chandigarh. Jam was found to be most popular, irrespective of income.

Orange squash consumption was maximum in high and middle – income families. Pineaaple

juice consumption increased with a rise in the income.

Rees (1992), in his study revealed that factors influencing the consumer’s choice of

food were flavour, texture, appearance, advertising, a reduction in traditional cooking,

fragmentation of family means and an increase in ‘snacking’.etc. Demographic and

household role changes and the introduction of microwave ovens had produced changes in

eating habits. Vigorous sale of chilled and other prepared foods was related to the large

numbers of working wives and single people, who require value convenience. Development

in retailing with concentration of 80.00 per cent of food sales in supermarkets was also

considered to be important. Consumers were responding to messages about safety and

healthy eating. They were concerned about the way in which food was produced and want

safe, ‘natural’, high quality food at an appropriate price.

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Results of the study conducted by Joshi (1993) in Dharwad on food purchasing habits

and consumer awareness among rural and urban housewives indicated that majority of the

urban respondents purchased the groceries like cereals (52.00%), pulses (64.00%), oils

(73.00%), spices (72.00%) and sugar (69.00%) on monthly basis. While perishables like

fruits (48.00%), eggs (41.00%) and meat (46.00%) were purchased once in week and milk

(48.00%) was purchased daily. Rural respondents purchased cereals (70.00%), pulses

(71.00%), oils (71.00%), spices (71.00%), sugar (71.00%) and fruits (73.00%) once in week

and milk (78.00%) daily. Regarding place of purchase 83.00 per cent of urban and 99.00 per

cent of rural respondents purchased all the groceries like sugar, rice, and wheat from fair

price shops. Both rural and urban respondents purchased groceries (99.00% each),

perishables (89.00% and 99.00% respectively), ready to use foods (97.00% and 87.00%

respectively) and commercially available foods (96.00% and 6.00% respectively) from retail

shops. Price, quality and weight of the products were the important factors considered by

both rural and urban respondents while purchasing of food items.

Ragavan (1994) reported that, quality, regular availability, price, accuracy in weighing

and billing, range of vegetables and accessibility as the factors in the order of importance

which had influenced purchase of vegetables by respondents from modern retail outlet.

Dhillon et al. (1995), while studying the purchase behaviour in Ludhiana, rural and

urban respondents ranked nearby market (mean score of 1.47 for rural and 2.10 for urban)

and main market (mean score of 0.88 for rural and 1.38 for urban) as their first and second

preference of order respectively for the purchase of food items. The prime factor indicated by

the rural respondents for buying their food items was appearance with mean score of 4.01,

followed by price, quality and place of buying to which they ranked second, third and fourth

with mean scores of 3.81, 3.45 and 2.96 respectively. But urban respondents visualized these

factors little differently and ranked quality, appearance, place of buying and expiry date as

first, second, third and fourth ranks with mean score of 4.69, 4.01, 3.20 and 3.05 respectively.

Singh et al. (1995) examined the factors influencing consumer preferences for milk.

They were milk quality, convenient, availability, supply in quantity desired, flavour, colour,

freshness and mode of payment which showed higher levels of consumer satisfaction.

26

Purchasing practices of consumers in Parbhani was studied by Kulkarni and Murali

(1996). The results revealed that 83.50 per cent of consumers were seeking the information

from television regarding the products availability and this was followed by neighbours

(71.00%) and newspapers (69.50%). Consumers preferred retail market for the purchase of

groceries (65.00%), milk and milk products (100.00%), vegetables (100.00%), fruits

(100.00%) and snacks (75.00%) and they adopted cash payment. Majority (75.00%) of the

consumers preferred quality for the purchase of food.

Sundar (1997) revealed that, grocery department of Saravana Bava Cooperative

Supermarket, Cuddalore was enjoying favorable images of consumers in the attributes, such

as, equality of price, behaviour of sales persons, moving space, location, correctness of

weight, packaging of goods, number of sales persons and convenient shopping hours. At the

same time, the image was weak in the attributes, such as, quality of goods, availability of

range of products, variety of goods, acceptance of returns, credit facility, door delivery and

sales promotional measures.

Amitha (1998) studied the factors influencing the consumption of selected dairy

products in Bangalore city. The results of the study revealed that, income and price

significantly influenced the consumption of table butter. Price had a negative impact and

income a positive impact on consumption.

A socio-economic influence of rural consumer behaviour studied by Sayulu and

Reddy (1998), concluded that frequency of purchase of commodities by rural consumers was

highly influenced by the type and nature of the products. Products like groceries (40.35%)

and others which included vegetables, milk etc. (48.25%) purchased on daily basis and 33.33

per cent and 42.98 per cent of them purchased these products on weekly basis. Cash purchase

was highest in case of products like groceries (44.74%) followed by credit purchase with

38.60 per cent and 21.06 per cent respectively. Price of the goods was considered to be the

most important factor by more than 88.00 per cent of the respondents followed by easy

availability (66.66%) and neighbours (54.00%).

Kamalaveni and Nirmala (2000) reported that, there is complete agreement between

ranking given by the housewives and working women regarding the reasons promoting them

27

to buy Instant Food Products. Age, occupation, education, family size and annual income had

much influence on the per capita expenditure of the Instant Food Products.

Srinivasan (2000) revealed that, consumer with higher educational level was found to

consume more processed products. The quantities of processed fruit and vegetable products

were consumed more in high income group. The tolerance limit of price increase identified

was less than 5 per cent, any price change above this limit, would result in discontinuance of

the use of the processed product. Consumers preferred processed products because of

convenience of ready-to-eat form.

Hugar et al. (2001) carried out a study on dynamics of consumer behaviour in

vegetable marketing in Dharwad city. Low income groups purchased lesser quantity (3.25

kg/week) of vegetables as compared to medium (5.40 kg/week) and high income groups

(4.66 kg/week). Majority of low income group preferred to purchase vegetables from

producers because of reasonable price. High and medium income families preferred stall

vendors for the purchase of vegetables because of better quality and correct weighment.

Prell et al. (2002) conducted a study to examine the factors influencing adolescents’

fish consumption in school. Fish consumption was assessed by observation on 4 occasions.

Attitudes towards the fish, friends’ behaviour and perceived control were important

predictors of the intention to eat fish and barriers for fish consumption were a negative

attitude towards both smell and accompaniments and fear of finding bones. But the eaters of

fish were more satisfied with the taste, texture and appearance of the fish and rated safety

significantly higher than those who resisted. They also thought to a greater extent that the fish

was healthy and prepared with care. The results suggested that, it is important to alter dishes

so that they appeal to children and to pay attention to the whole meal, accompaniments

included. Finally it was recommended to convey the pupils that the fish served would be

healthy and prepared with care.

Nagaraja (2004) opined that, buying behaviour is very much influenced by experience

of their own and of neighbour consumers and his family. Above all, the quality of the product

and its easy availability were the primary and the vital determinants of his buying behaviour.

Consumers were influenced by touch and feel aspect of any promotional activity.

28

Shivkumar (2004) showed that the consumer, irrespective of income groups, was

mainly influenced by the opinions of their family members to purchase. Consumers were also

influenced by the dealers’ recommendation, followed by advertisement.

3.3 BRAND PREFERENCE

Gluckman (1986) studied the factors influencing consumption and preference for

wine. The explicit factors identified were, the familiarity with brand name, the price of wine,

quality or the mouth feel of the liquid, taste with regard to its sweetness or dryness and the

suitability for all tastes. Some of the implicit factors identified through extensive questioning

were colour and appearance. Most of the consumers seemed to prefer white wine to red.

Consumers preferred French or German made wines to Spanish or Yugoslavian wines.

Kumar et al. (1987) observed the factors influencing the buying decision making of

200 respondents for various food products. Country of origin and brand of the products were

cross- tabulated against age, gender and income. Results revealed that the considered factors

were independent of age, education and income. The brand image seemed to be more

important than the origin of the product, since the consumers were attracted by the brands.

Shanmugsundaram (1990) studied about soft drink preference in Vellore town of

North Arcot district in Tamil Nadu. The study revealed that, the most preferred soft drink

among respondents as Gold spot (26.00%), followed by Limca (24.80%). It was found that

the taste was the main factor for preference of particular brand and among the media;

television played a vital role in influencing consumer to go for a particular brand. Because of

convenience in carrying, tetra pack was most preferred one.

Ali (1992) studied the brand loyalty and switching pattern of processed fruit and

vegetable products in Bangalore city by using Markov Chain analysis. The result of study

revealed that Kissan brand of jam and Maggi brand of ketchup had a maximum brand loyalty

among consumers and less amount of brand switching occurred for these brands.

29

Sabeson (1992), in his study stated that high quality, price and taste of the product were

the major criteria based on which the customers selected a brand of processed fruits and

vegetable products.

Veena (1996) studied brand switching and brand loyalty of processed fruit and

vegetable products in Karnataka state by using Markov Chain analysis. The result of the

study revealed that Maggi, Sil and Kissan were having market retention of 74.20, 55.78 and

48.74 per cent, respectively for jam products. The equilibrium shares determined in order to

predict future market position among the different brand showed that in long run shares of

Kissan, Rex. Other brands were likely to decline, mainly on account of increased market

shares of Gala, Sil and Maggi.

Padmanabhan (1999) conducted study on brand loyalty, which revealed that the price

of the preferred brand, efficiency of the preferred brand and influence of advertisement

significantly influenced the brand loyalty. Only when the price of a particular brand is

comparatively low, the farmers would naturally prefer to low priced brand. Otherwise

farmers would naturally continue to purchase the same brand.

Low and Lamb Jr. (2000) came out with an interesting conclusion that well known

brands tend to exhibit multi-dimensional brand associations, consistent with the idea that

consumers have more developed memory structures for more familiar brands. Consumers

might be willing to expend more energy in processing information regarding familiar brands

compared to unfamiliar brands.

Kamenidou (2002) presented the findings on the purchasing and consumption

behaviour of Greek households towards three processed peach products: canned peaches in

syrup, juice and peach jam. The results revealed that 47.50 per cent of the households

purchased canned peaches in syrup, 67.40 per cent purchased peach juice and 42.60 per cent

purchased peach jam. Reasons for such purchase were satisfactory taste and qualities and

household’s perception that they were healthy products. The results also indicated that the

consumption quantities were considered low, while households usually purchased the same

brand name, meaning that there was a tendency for brand loyalty.

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Sampathkumar (2003) studied about brand preference in soft drinks in Telangana

region of Andra Pradesh. He found that in rural market about 37.50 per cent of consumers

preferred Thumbs-up (urban 30%), followed by Coca cola (28.50%) (urban 37.50%), Pepsi

12.50 per cent (urban 9.00%), Limca (4.00%) (urban 8.50%). Most of the urban consumers

(67.00%) purchased soft drinks in nearest Kirani stores (rural 73.00%), followed by super

bazaar (27.00%) (rural 26.00%) and others (6.00%) (rural 1.00%). The method of physical

distribution played very vital role in company’s success and failure in the market.

Transportation was among the major functions of physical distribution. Transport adds time

and place utility for the product.

Kim-Hyunah et al. (2005) analyzed the relationship among brand equity factors (brand

awareness, brand image, brand preference and brand loyalty) and suggested a strategy for

brand management in contract food service management companies. He concluded that brand

awareness has positive effect on brand image and brand preference and recommended that

the contract food service companies should focus on improving brand awareness as a brand

strategy. In addition, brand preference and brand image had significant positive effects on

brand loyalty. Thus, the companies should strive to strengthen brand loyalty through building

brand preference and brand image. Brand loyalty promoted more customer visits, which was

directly related to profitability of contract food service management companies, the authors

concluded.

Kubendran and Vanniarajan (2005) studied that, the change in consumption pattern

was due to changes in food habits. If income and urbanization increase among consumers, the

percentage of income spent on consumption increased. The urban consumers preferred

mostly branded products compared to rural consumers. The most significant factors

influencing buying decisions were accessibility, quality, regular supply, door delivery and the

mode of payment.

Narang (2006) opined that, a buyer does not stick to one brand in case of food

purchasing. They should be able recall different brand names when they go for purchase.

Repititive advertising can be used to promote brand recall. The product should be associated

with style and trend, so that it appeals to the youth and the brand name should be developed

31

as a fashion statement. Promotional schemes such as discounts and free offers with purchase

were suggested to increase rates.

Vincent (2006) studied brand consciousness among children. The study showed that

children start to recognize product brands at an early age, which influence family buying

behaviuor. It was helpful for parents in making purchase decision of durable goods for the

family.

3.4 FACTORS INFLUENCING BRAND PREFERENCE

Singh and Singh (1981) found that consumers had single or multi-brand loyalty based

on the nature of product, like necessities or luxuries. Brand choice and store loyalty were

found to affect the brand loyalty of the consumer. The factors that influence and strengthen

loyalty to brand were quality of product, habit of use and ready and regular availability.

Sabeson (1992) in his study stated that, high quality, price and taste of the products

were the major criteria based on which the consumers selected a brand of processed fruits and

vegetable products.

Ashalatha (1998) studied the factors influencing the performance of BAMUL milk for

a sample of 100 respondents. The study revealed that the factors such as door delivery, clean

packing, quality, hygienic preparation, time saving and reliability, good value for money,

freshness and desired flavour were important in the order in influencing the decision of

buyers for BAMUL milk.

The study undertaken by Sheeja (1998) in Coimbatore district considered the quality

aspects like aroma, taste, freshness and purity as the major factors deciding the preference for

a particular brand of processed spices.

Raj Reddy and Pruthviraju (1999) studied about buying motives of rural consumers

about seeds and different sources of information about brands with regard to seeds. It was

found that factors influencing brand loyalty of farmers were dealer’s suggestions, quality

32

product and co-farmers. The problems faced by farmers were supply of seed or poor quality

seed, higher price, adulteration and irregular supply of seeds.

Gaur and Waheed (2002) conducted a study on buying behaviour for branded fine rice

in Chennai and Coimbatore city. The study indicated that retailers were ranked as the prime

source of information and the family members as the next important source of information

about the branded fine rice. Rice mandy formed the major source of purchase for Chennai

(73.00%) and Coimbatore (70.00%) households. Quality and image of the brand were ranked

as first and second factors influencing brand preference in both Chennai and Coimbatore

cities.

Sanjaya et al. (2002) reported that, the decision for purchasing branded fine rice was

mostly made by the wives of the family. The retailers were ranked as the prime sources of

information about branded fine rice. The monthly purchase was the most preferred frequency

of purchase, which might be due to the fact that most of the respondents were of monthly

salaried class and they would have planned their purchase accordingly along with other

provision items. The quality and the image of the brand were ranked as the major factors for

brand preference in the purchase of branded fine rice.

In a study conducted by Sarwade (2002) it has been observed that the price was the

factor, which influenced the purchasing decision as against the quality of the product. It is

very interesting to find out that the company image and brand image were not totally

considered by the households.

Nandagopal and Chinnaiyan (2003) conducted a study on brand preference of soft

drinks in rural Tamil Nadu, using Garrets ranking technique, to rank factors influencing the

soft drinks preferred by rural consumer. They found that, the product quality was ranked as

first, followed by retail price. Good quality and availability were the main factors, which

influenced the rural consumers of a particular brand of a product.

Kubendran and Vanniarajan (2005) founded that, the change in consumption pattern is

due to changes in food habits. If income and urbanization increase among consumers, the

percentage of income spent on consumption increases. The urban consumers prefer mostly

33

branded products compared to rural consumers. The most significant factors influencing

buying decisions were acceptability, quality, regular supply, door delivery and the mode of

payment.

Ramasamy et al. (2005) studied consumer behaviour towards instant food products in

Madurai, the second largest city in Tamil Nadu and observed that consumers do build opinion

about a brand on the basis of which various product features play an important role in

decision making process. A large number of respondents (78.00%) laid emphasis on quality

and 76.00 per cent on price which was an important factor, while 64.00 per cent of the

respondents attached importance to the image of the manufacturer and 50.00 per cent

considered packaging as an important factor and an equal percentage (50.00%) felt longer

shelf life influenced them.

Banumathy and Hemameena (2006), while studying consumer brand preference with

respect to soft drinks, found that after globalization most of the consumers like the

international brands such as Pepsi and Coco-cola. Consumers preferred a certain brand or a

particular drink mainly because of its taste and refreshing ability.

Vincent (2006) elicited that quality was an important factor that draws consumer

towards branded products. Branded products were accepted as good quality products. People

do not mind paying extra for branded products, as they get value for money. Media is a key

constituent in promoting and influencing brand. A child’s insistence affects family’s buying

behaviour. Children are highly aware and conscious of branded items. Although unbranded

products sometimes give same satisfaction as branded products, customers would still prefer

to purchase a branded product.

3.5 ALTERNATIVE PURCHASE PLANS

Rajarashmi and Sudarsana (2004) revealed that, almost all sample respondents

preferred branded products and if their favorite brand is not available in the retail shop, they

will go for another store and purchase their favorite brand. If it is not available in the market,

the respondents were ready to postpone their purchase decision.

34

Anandan et al. (2007) studied that, majority of the respondents (54.00%) will buy

another brand if preferred brand is not available, 18.00 per cent of the respondents will go to

the nearby town for buying the preferred brand. Fifteen per cent of the respondents will

postpone their purchase decision. It was revealed from the study that customers cannot

postpone the decision of buying the detergents, as it was one of the essential commodities.

4. METHODOLOGY

35

The present study was undertaken to know the awareness of consumers towards

branded ready to-eat food products, purchase behaviour of ready-to-eat food products, brand

preference of the consumers, factors influencing brand preference and to study the alternative

purchase plans of the consumers. This chapter covers the following aspects:

4.1 Description of study area

4.2 Sampling design and data collection

4.3 Analytical tools employed in the study

4.1 DESCRIPTION OF STUDY AREA

Goregaon is one of the fastest growing suburb in Mumbai. The population is

heterogeneous with diverse cultural, religious and economic background. Goregaon is a

locality situated at the north of Mumbai. It is a railway station on the Mumbai suburban railway on

the Western Line. This study was undertaken in Goregaon (E) at Nagari Nivara Parishad

(NNP).

4.2 SAMPLING DESIGN AND DATA COLLECTION

4.2.1 Selection of ready- to- eat food products

Preliminary discussions were held with the local consumers and the marketers about

the consumption of ready- to- eat food products as well as about the brands available and

preferred in the study area to gather information on the products to be selected for the study.

Based on the discussions, the most commonly available and used products in the study area

were selected. The particular products were selected in such a way as to represent one

product from each food group like cereals, fruits, vegetables and milk and milk products.

The products selected for the study were as follows:

• Cereal based – Biscuits

• Vegetable based – Chips

4.2.2 Sample selection

36

The total samples selected for the study was 200 respondents. A sample of 100

consumers from Nagari Nivara Parishad were selected randomly irrespective of age,

education and income level. Classification of the respondents

The respondents were classified into different categories based on age.

Age

Age Group 1 (AG1) – Below 20 years

Age Group 2 (AG2) – Between 21 – 40 years

Age Group 3 (AG3) – Between 41 – 60 years

Age Group 4 (AG4) – Above 60 years

Income

The respondents were post classified into three income groups based on their income:

Low income – Below Rs. 8615.70 per month.

Middle income – Between Rs. 8615.70 to Rs. 13,638.30 per month.

High income – Above Rs. 13,638.30 per month.

Collection of data :

To study the objectives, required data were collected from primary as well as secondary

sources.

Primary data :

The data required for the study were collected from the respondents by personal

interview method with the help of pre-structured questionnaire. The respondents were

interviewed at retail outlets, departmental stores, bakeries and even at the homes. The

questionnaire consisted of:

Part I : General information like name, age, education, sex, occupation, food habit, family

income and family type. Monthly expenditure on food items in general and ready- to- eat

food products in particular.

37

Part II : Specific information included the information regarding purchase behaviour, factors

influencing the purchase of ready- to- eat food products, brand awareness, sources of

information for brand awareness, frequency of purchase, nature of purchase decision, place of

purchase, influencers of purchase decision, brand preference, factors influencing to prefer

particular brand and alternative purchase plans of the consumers.

Questionnaire for chips and biscuit:

I. General Information

1. Name of the respondent :

2. Address :

3. Age :

4. Sex

5. Education : Illiterate/Primary/High/PUC/Degree/PG

6. Occupation :

7. City : Goregaon (E), Mumbai

8. Name of the shop :

9. Monthly income (Rs.) :

10. Food habit : Vegetarians/Non vegetarians

11. Type of family : Joint/Nuclear

12. Family :

38

Family members Number

Adult males

Adult females

Children

Total

II. Specific Information

1. Do you purchase ready-to-eat food products ? Yes/No.

2. What are the reasons for purchasing ready-to-eat food products

Reasons

Biscuits Chips

Ready available

Taste

Liked by the family members

Influence of friends of relatives

Easily available in the shops

Convenient to use for snacks

Satisfaction

Save time of preparation

Any other

3. What are the reasons for not purchasing ready-to-eat food products ?

Reasons Biscuits Chips

Lack of awareness of products available in the marketDislike the product

High price

Low quality

Not available in the shops

39

Health conscious

Any other

4. Are you aware of the following brands ?

Biscuits Yes No

Parle-G

Good day

Marie Gold

Hide and Seek

Tiger biscuits

Krack jack

Britannia 50-50

Britannia little hearts

Parle Monaco

Glucose

Sunfeast snacky

Chocolate chip cookies

Britannia Time Pass

Sunfeast glucose

Chips

Lays

Kurkure

Bingo

Balaji chips

40

Hippo

Diamond chips

Cheetos

5. Source of information for brand awareness

Source Biscuits Chips

Television

Newspapers

Radio

Magazines

Friends/ relatives

Shopkeeper/retailer

Window display

Any other

6. Frequency of purchase

Frequency Biscuits Chips

Daily

Twice in a week

Once in a week

Fortnightly

Whenever needed

7. Nature of purchase decision

Nature of purchase decision Biscuits Chips

a. Impulsive buying

b. Planned purchase

41

8. Influencers of purchase decision

Influencers Biscuits Chips

Parents

Children

Friends

Neighbours

Shopkeeper

Self decision

9. Which type of biscuits do you prefer most ?

a. Cream biscuits b. Wafers c. Salted biscuits d. Sweet biscuits e. High fibre content biscuits f. Any other (specify)

10. Which type of chips do you prefer most ?

a. Salted/plain b. Tomato flavoured c. Chilly flavoured/Masala d. Any other (specify)

11. Which variety of chips do you prefer most ?

a. Banana chips b. Potato chips c. Sweet potato chips d. Jack fruit chips e. Any other (specify)

Secondary data :

External secondary data from public sources were used like newspapers, text books, internet.

42

4.3 ANALYTICAL TOOLS USED

The data collected for the study was processed and analyzed by using suitable

statistical techniques. Frequency, percentage, mean, were used to present the collected data.

A detailed description of the analytical tools employed in the study is presented below.

4.3.1 Tabular Analysis

Percentage analysis was used to study the socio economic characteristics like age, education, occupation, family size, family type, consumer awareness towards branded ready- to- eat food products, sources of information for brand awareness, frequency of purchase, nature of purchase decision, place of purchase, influencers of purchase decision and alternative purchase plans of the consumers.

5. RESULTS

The results of the study are presented under the following headings.

5.1 Awareness of consumers towards branded ready-to-eat food products. 5.2 Purchase behaviour of consumers towards ready-to-eat food products.

43

5.3 Brand preference of the consumers. 5.4 Factors influencing brand preference. 5.5 Alternative purchase plans of the consumers.

5.1 AWARENESS OF CONSUMERS TOWARDS BRANDED READY-TO-EAT FOOD PRODUCTS

To know the awareness, it is necessary to study socio-economic characteristics of the consumers, as these are the important variables, which decide the consumption pattern of food products in the family. Generally it is believed that, as the income, age and education of the consumers increase, the expenditure on consumption of food products also increases. Hence, the consumers’ socio-economic characteristics were studied and the results are presented hereunder.

5.1.1 General information about the selected samples

Table 4.1 presents the general information of selected samples in Nagari Nivara Parishad, Goregaon (E). It could be seen from the table that the maximum number of respondents i.e., 55.00 per cent of them belonged to the age group 2 (21-40years). Thirty two per cent of them were below 20 years i.e., they belonged to the AG1 and 9 per cent of them were between the age of 41 to 60 years (AG3). Very few per cent of the respondents were above 60 years (4.00%) and they belonged to the age group 4.

Among the total respondents 61.00 per cent of them were female and remaining 39.00 per cent of them were male.

Maximum number of the selected respondents were degree holders (44.00%), 30.00 per cent of them were of PUC level, 14.00 per cent of the respondents were post graduates and 10.00 per cent of them were of high school level. Very less percentage of the respondents were of primary school level (2.00%). It was also observed from the table that none of the respondents were illiterates.

Most of the respondents belonged to nuclear families (89.00%) and remaining 11.00 per cent of them were living in joint families.

Maximum number of respondents (44.00%) belonged to the medium family size of 5-7 members. This was followed by family size of less than 5 members (41.00%) i.e., small family and 15.00 per cent of them belonged to large family (more than 7 members).

Among the selected samples 73.00 per cent of them were vegetarians and remaining 27.00 per cent were non-vegetarians.

Most of the respondents (40.00%) belonged to low income group (<Rs. 8615.70/month), 34.00 per cent of them belonged to middle income group (Rs. 8715.70 –

44

13,638.30/month) and remaining 26.00 per cent of them were belonged to high income group (> Rs. 13638.30/month).

Under occupation classification, 68.00 per cent of them were students, 12.00 per cent of them were government employees, 9.00 per cent were housewives, 8.00 per cent of them were working under private sectors and very few of the respondents were engaged in business activities (3.00%).

Table 5.1. General information of selected samples

(N=200)General information

Categories No. of respondents

Percentage

Age Below 20 years (AG1) 64 32.0021-40 years (AG2) 110 55.0041-60 years (AG3) 18 9.00>60 years (AG4) 8 4.00

Sex Male 78 39.00Female 122 61.00

Education Illiterate - -Primary school 4 2.00High school 20 10.00PUC 6 30.00Degree 88 44.00PG 28 14.00

Family type Joint 22 11.00Nuclear 178 89.00

Family size Small (below 5) 82 41.00Medium ( 5-7) 88 44.00Large (more than 7) 3 15.00

Food habit Vegetarian 146 73.00Non - vegetarian 54 27.00

Monthly income (Rs.) Low (< Rs. 8615.70) 80 40.00Middle (Rs. 8615.70 – 13638.30) 68 34.00High (> Rs. 13638.30) 52 26.00

Occupation Student 136 68.00House wife 18 3.00Business 6 3.00Government employee 24 12.00Private 18 8.00

Note : AG1 – Age group 1 (Below 20 years) AG2 – Age group 2 (21-40 years) AG3 – Age group 3 (41-60 years) AG4 – Age group 4 (>60 years)

45

5.1.2 Brand awareness of consumers about biscuits among different age groups

Table 5.2 presents the brand awareness of consumers about biscuits among different age groups. Majority of the respondents (99.00%) were aware of Parle-G brand followed by Marie gold biscuits (97.00%), 96.00 per cent each were conscious of Tiger biscuits, Good day and Krack jack, 81.00 per cent of the respondents knew Glucose brand. Britannia 50-50 and Hide and seek brands were very popular among 80.00 per cent each of the respondents, 78.00 per cent, 70.00 per cent, 64.00 per cent, 62.00 per cent and 56.00 per cent of the respondents knew Parle Monaco, Britannia little hearts, Sunfeast glucose, Sunfeast snacky and Britannia Time pass brands respectively. Only a small percentage of the respondents were familiar with Chocolate chip cookies (43.00%).

Among age group one (AG1) cent per cent each of the respondents were aware of Parle-G, Good day and Krack jack brands, while brands of Tiger biscuits and Marie gold biscuits were popular among 96.87 per cent each of the respondents. Glucose biscuits, Hide and seek, Parle Monaco and Sunfeast glucose brands were respectively. Britannia 50-50 and Sunfeast snacky brands were familiar among 65.62 per cent each of the respondents and Britannia little hearts was known to 62.50 per cent of the respondents. Only 53.12 per cent each of them were aware of Chocolate chip cookies and Britannia Time pass brands. In the case of AG2, 98.18 per cent each were aware of Parle-G and Good day brands, followed by 96.36 per cent each aware of Tiger biscuits, Marie gold and Krack jack brands, only 40.00 per cent of them know about Chocolate chip cookies. Marie gold biscuits were popular among cent per cent each of the respondents of AG3 and AG4. Chocolate chip cookies was familiar among 44.44 per cent of AG3 respondents only. But none of the respondents of AG4 were aware of Chocolate chip cookies brand, Sunfeast snacky,Sunfeast glucose, Britannia Time pass and also Britannia little hearts brands.

5.1.3 Brand awareness of consumers about chips among different age groups

Brand awareness of consumers about chips among different age groups is depicted in Table 5.3 . Most of the respondents were aware of Lays (96.00%), Kurkure (83.00%), Bingo (67.00%), Balaji chips (63.00%), Cheetos (50.00%), Hippo (35.00%) brands and less percentage of the respondents knew Diamond chips (32.00%) brand. Lays consumers of AG1, AG2, AG3 and AG4 accordingly.

46

In case of AG1, Kurkure, Hippo, Diamond chips and Cheetos were well known to 93.75, 43.75, 34.37 and 50.00 per cent of the respondents and about 59.37 per cent each aware of Bingo and Balaji brands.

Kurkure and Bingo brands were familiar among more than 70.00 per cent of the AG2 and AG3 respondents. In addition to these brands, Balaji chips was known to 70.90 per cent of AG2 and 55.55 per cent of AG3 respondents. About, 36.36 per cent each were aware of Hippo and Diamond chips among AG2. In case of AG3 Hippo and Diamond chips were well known to 11.11 per cent each of the respondents. Fifty per cent of the respondents were aware of Kurkure and 25.00 per cent of the respondents were conscious of Bingo brand in case of AG4 respondents. It could also be seen from the table that, none of the respondents of this age group were familiar with Balaji, Hippo, Diamond and Cheetos.

5.1.4 Influence of media to create awareness about the brands

Influence of media to create awareness about the brands in the study area were analysed and depicted in Table 5.6. It was observed from the table that, in case of biscuits television was the major source for getting information about the brands (92.00%). This was followed by newspapers (66.00%), friends/relatives (51.00%), shopkeeper or retailer (48.00%), window display (43.00%), magazines (39.00%) and radio (20.00%).

In case of chips majority of the respondents were influenced by television (93.00%)

This was followed by friends/relatives (62.00%) and newspapers (57.00%). Radio was the least preferred media for brand awareness (10.00%). Overall, television was preferred as the major source of information for brand awareness (26.13%) followed by newspapers and friends/relatives (17.89% and 17.52% respectively). About 12.62 per cent of the respondents were influenced by shopkeeper / retailer, 11.06 per cent by magazines, 10.69 per cent by window display and very few of the respondents i.e., 4.08 per cent were influenced by radio.

Table 5.2. Brand awareness of consumers about biscuits among different age groups

Brands Age group

AG1 AG2 AG3 AG4 Overall

47

(n=64) (n = 110) (n = 18) n = 8) (N=200)

Parle – G 64 (100.00

108 (98.18)

18 (100.00)

8 (100.00) 198 (99.00)

Tiger biscuits 62 (96.87 106 (96.36)

16 (88.88) 8 (100.00) 192 (96.00)

Marie gold 62 (96.87 106 (96.36)

18 (100.00)

8 (100.00) 194 (97.00)

Britannia 50-50 42 (65.62) 100 (90.90)

14 (77.77) 4(50.00) 160 (80.00)

Sunfeast snacky 42 (65.62) 72 (65.45) 10 (55.55) - 124(62.00)

Sunfeast glucose 46 (71.87) 72 (65.45) 10 (55.55) - 128 (64.00)

Good day 64 (100.00

108 (98.18)

16 (88.88) 4 (50.00) 192 (96.00)

Krack jack 64 (100.00

106 (96.36)

16 (88.88) 6 (75.00) 192 (96.00)

Hide & seek 50 (78.12) 94 (85.45) 14 (77.77) 2 (25.00)

160 (80.00)

Glucose 54 (84.37 84 (76.36 16 (88.88) 8 (100.00) 162 (81.00)

Chocolate chip cookies 34 (53.12) 44 (40.00) 8 (44.44) - 86 (43.00)

Britannia Time pass 34 (53.12) 66 (60.00) 12 (66.66) - 112 (56.00)

Parle Monaco 48(75.00) 92 (83.63) 14 (77.77) 2(25.00)

156 (78.00)

Britannia little hearts 40(62.50) 88 (80.00) 12 (66.66)

- 140 (70.00)

48

Table 5.3. Brand awareness of consumers about chips among different age groups

Brands Age group

AG1

(n=64)

AG2

(n= 110)

AG3

(n = 18)

AG4

(n = 8)

Overall

(N=200)

Kurkure 60 (93.75) 88 (80.00) 14 (77.77) 4 (50.00) 166 (83.00)

Bingo 38 (59.37) 80 (72.72) 14 (77.77) 2 (25.00) 134 (67.00)

Lays 64 (100.00) 100 (93.36) 16 (88.88) 6 (75.00) 192 (96.00)

Balaji chips 38 ( 59.37) 78 (70.90) 10 (55.55) - 126 (63.00)

Hippo 28 (43.75) 40 (36.36) 2 (11.11) - 70 (35.00)

Diamond chips

22 (34.37) 40 (36.36) 2 (11.11) - 64 (32.00)

Cheetos 32 (50.00) 58 (52.72) 10 (55.55) - 100 (50.00)

Table 5.4. Influence of media to create awareness about the brands

Source Product Overall

Biscuits Chips

49

Television 184 (92.00) 186 (93.00) 370 (26.88)

Radio 40 (20.00) 20 (10.00) 60 (4.36)

Newspapers 132 (66.00) 114 (57.00) 246 (17.87)

Magazines 78 (39.00) 64 (32.00) 142 (10.31)

Friends/ Relatives 102 (57.00) 124 (62.00) 226 (16.42)

Shopkeeper/ retailer 96 (48.00) 82 (41.00) 178 (12.93)

Window shopping 86 (43.00) 68 (34.00) 154 (11.19)

Total=1376 (100.00)

5.2 PURCHASE BEHAVIOUR OF CONSUMERS

5.2.1 Buyers and non-buyers of ready-to-eat food products

The data on buyers and non buyers of ready-to-eat food products in the study area is presented in Table 5.7. The table revealed that biscuits were consumed by all the respondents in the study area. Hundred per cent each of the respondents across all the age groups consumed biscuits. About 92.00 per cent of the respondents purchased chips for consumption and remaining 8.00 per cent of them were not buying. In case of AG1, chips were consumed by all the respondents. About 98.18 per cent of the respondents of AG2 bought chips for consumption. Among AG3, 66.66 per cent of them were buying chips for consumption and remaining 33.33 per cent of them were non buyers.

5.2.2 Reasons for purchasing ready-to-eat food products

An attempt was made to elicit the factors considered by the respondents for purchase of ready-to-eat food products. It was noticed from the Table 5.6that the major factors considered while purchasing biscuits were convenience to use as snacks (65.00%), liking of the family members (60.00%) and ready availability (53.00%). The other reasons for the purchase of biscuits were taste, satisfaction, easy availability in the shops, save time of preparation and influence of friends/relatives (46.00%, 43.00%, 39.00%, 23.00% and 15.00% respectively). Taste was the main reason for purchasing chips (80.43%). The other factors considered while

50

purchasing chips were convenience to use as snacks (64.13%), satisfaction (52.17%), ready availability (46.73%), save time of preparation (39.13%), influence of friends/relatives (36.95%), liking of the family members (31.52%) and easy availability in the shops (26.08%). Only a meare percentage of the respondents said other reasons (1.08%) like habit of eating and timepass.

5.2.3 Reasons for not purchasing ready-to-eat food products

Reasons for not purchasing ready-to-eat food products, as opined by the respondents are presented in Table 5.7. It was revealed from the table that, there was no reason for the respondents for not purchasing biscuits. Cent per cent of the respondents did not purchase chips since they were health conscious. About 62.50 per cent of the respondents did not purchase due to low quality of the product. The other reasons for not consuming chips were dislike towards the product and high price (50.00% each).

5.2.4 Nature of purchase decision

Nature of purchase decision among different age groups is presented in Table

5.8. In case of biscuits, among the first two age groups, maximum of the respondents did a planned purchase (71.87% and 61.81% respectively) and only 28.12 per cent and 38.18 per cent of first and second age groups respectively did impulsive buying. But in case of AG3, 55.55 per cent of them did impulsive buying followed by only 44.44 per cent of them went for planned purchase. In the last group, all the respondents planned and purchased biscuits and none of them opted for impulsive buying. Overall, 65.00 per cent of them did planned purchase and only 35.00 per cent of them did go for impulsive buying for biscuits.

About 73.91 per cent of the chips buyers did impulsive buying and remaining 26.08 per cent of them did go for planned purchases. Among the first three age groups, majority of the respondents did go for impulsive buying (68.75%, 74.07% and 100.00% of the respondents of AG1, AG2 and AG3 respectively). About 31.25 per cent 25.92 per cent of the respondents of AG1 and AG2 did planned purchase and none of the respondents of AG3 did planned purchase.

Table 5.5. Buyers and non-buyers of ready-to-eat food products

Products Age group Buyers Non-buyers

51

Biscuits AG1 (n=64) 64 (100.00) -

AG2 (n=110) 110 (100.00) -

AG3 (n=18) 18 (100.00) -

AG4 (n=8) 8 (100.00) -

Total (N=200) 200 (100.00) -

Chips AG1 (n=64) 64 (100.00) -

AG2 (n=110) 108 (98.18) 2 (1.81)

AG3 (n=18) 12 (66.66) 6 (33.33)

AG4 (n=8) - 8 (100.00)

Total (N=200) 184 (92.00) 16 (8.00)

Table 5.6. Reasons for purchasing ready-to-eat food products by consumers of NNP.

52

Reasons Products

Biscuits(n=200)

Chips(n=184)

Readily available 106 (53.00) 86 (46.73)

Tate 92 (46.00) 148 (80.43)

Liked by the family members 120 (60.00) 58 (31.52)

Influence of friends or relatives 30 (15.00) 68 (36.95)

Easily available in the shops 78 (39.00) 48 (26.08)

Convenient to use for snacks 130 (65.00) 118 (64.13)

Satisfaction 86 (43.00) 96 (52.17)

Save time of preparation 46 (23.00) 72 (39.13)

Any other - 2 (1.08)

Table 5.7. Reasons for not purchasing ready-to-eat food products by consumers of NNP

Reasons Products

Bicuits

(n=0)

Chips

(n=16)

53

Lack of awareness of products available in the market - -

Dislike the product - 8 (50.00)

High price - 8 (50.00)

Low quality - 10 (62.50)

Not available in the shops - -

Health conscious - 16 (100.00)

Any other - -

Table 5.8. Nature of purchase decision among different age groups

Products Nature of purchase decision

Age group

AG1

(n=64)

AG2

(n=110)

AG3

(n=18)

AG4

(n=8)

Overall

54

Biscuits Impulsive buying

18 (28.12) 42 (38.12) 10 (55.55) - 70 (35.00)

Planned purchase

46 (71.87) 68 (61.81) 8 (44.44) 8 (100.00) 130 (65.00)

Chips Nature of purchase decision

(n=64) (n=108) (n=12) (n=0) Overall

Impulsive buying

44 (68.75) 80 (74.07) 12 (100.00) - 136 (73.91)

Planned purchase

20 (31.25) 28 (25.92) - - 48 (26.08)

5.2.5 Preference for type of biscuits

Table 5.9 presents preference for type of biscuits among different age groups. It was observed from the table that, among the first age group (AG1) maximum of the respondents preferred sweet biscuits (65.62%), followed by cream biscuits (50.00%), salted biscuits

(18.75%) and wafers (12.50%) were less preferred. Cream biscuits were mostly preferred (54.54%) in the AG2, followed by salted biscuits (41.81%), sweet biscuits (38.18%), high fibre content biscuits (18.18%) and wafers (16.36%). In the AG3, 66.66 per cent of them preferred sweet biscuits. Cream biscuits, wafers and salted biscuits were preferred by 55.55 per cent each. Only 33.33 per cent of them did go for high fibre content biscuits in this age group. All the respondents of AG4 preferred sweet biscuits. Fifty per cent of the respondents also preferred salted biscuits. Only a small percentage of the respondents (25.00%) preferred high fibre content biscuits. In the last age group none of respondents preferred cream biscuits and wafers. None of the respondents preferred high fibre content biscuits in the AG1. Overall, more than 50.00 per cent of the respondents preferred sweet biscuits and cream biscuits. Only a small percentage of the respondents (14.00%) did go for high fibre content biscuits.

5.2.6 Preference for variety of chips

Table 5.10 shows preference for variety of chips among different age groups. It could be seen from the table that preference for potato chips was found to be highest (78.26%) followed by banana chips (51.08%), jack fruit chips(31.52%) and only 10.86 per cent of them did go for sweet potato chips. Potato chips were mostly preferred by cent per cent, 81.25 per

55

cent and 74.07 per cent of AG3, AG1 and AG2 respondents accordingly. Among the first two age groups i.e., AG1 and AG2 the next preference was given for banana chips (40.62% and

61.11% respectively) followed by jack fruit chips (37.5% and 27.77% respectively) and sweet potato chips were less preferred among these two age groups i.e., AG1 (12.50%) and AG2 (9.25%). In the AG3 category jack fruit chips were preferred by 33.33 per cent of the respondents, banana chips and sweet potato chips were preferred by less number of respondents (16.66% each).

5.2.7 Preference for flavour in chips

Table 5.11 depicts preference for flavour in chips among different age groups. The table reveals that, maximum of the respondents preferred chilly flavoured masala chips (69.56%) followed by tomato flavoured (48.91%) chips and 41.30 per cent of the respondents preferred salted/plain chips. Chilly flavoured / masala chips were most preferred among AG1 and AG2 (68.75% and 70.37% respectively), followed by tomato flavoured chips by 40.62 per cent and 55.55 per cent of AG1 and AG2 respondents respectively and salted/plain chips were less preferred by 28.12 per cent and 46.29 percent of AG1 and AG2 consumers accordingly. In the AG3 salted / plain chips were most preferred (66.66%) and 33.33 per cent each of the respondents preferred tomato flavoured and chilly flavoured / masala chips.

5.3 BRAND PREFERENCE OF THE CONSUMERS

Table 5.12 to Table 5.13 shows the rank matrix of common brands preferred among the products. The brands have been considered based on mean scores of preferential order of brands considered by the consumers. Preferential order of brands were obtained based on Garrett’s ranking test.

5.3.1 Brand preference for biscuits

Brand preference of the respondents for biscuits is presented in Table 5.12. Maximum of the respondents preferred Parle-G biscuits (mean score of 69.99) followed by Good day (mean score of 69.62), Marie gold (mean score of 61.14), Hide and seek (mean score of 54.74), Tiger biscuits (mean score of 53.79), Krack jack (mean score of 52.86), Britannia 50-50 (mean score of 48.76), Britannia little hearts (mean score of 45.61), Parle Monaco (mean score of 43.68) and Glucose biscuits (mean score of 43.41).

Table 5.9. Preference for type of biscuits among different age groups

Age group

56

Type of biscuits AG1(n=64)

AG2(n=110)

AG3(n=18)

AG4(n=8)

Overall(n=200)

Cream biscuits 32(50.00)

60(54.54)

10(55.55)

- 102(51.00)

Wafers 8(12.50)

18(16.36)

10(55.55)

- 36(18.00)

Salted biscuits 12(18.75)

46(41.81)

10(55.55)

4(50.00)

72(36.00)

Sweet biscuits 42(65.62)

42(38.18)

12(66.66)

8(100.00)

104(52.00)

High fibre content biscuits

- 20(18.18)

6(33.33)

2(25.00)

28(14.00)

Table 5.10. Preference for variety of chips among different age groups

Variety of chips Age group

57

AG1

(n=64)

AG2

(n=108)

AG3

(n=12)

AG4

(n=0)

Overall

(n=184)

Banana chips 26(40.62)

66(61.11)

2(16.66)

- 94(51.08)

Potato chips 52(81.25)

80(74.07)

12(100.00)

- 144(78.26)

Sweet potato chips

8(12.50)

10(9.25)

2(16.66)

- 20(10.86)

Jack fruit chips 24(37.50)

30(27.77)

4(33.33)

- 58(31.52)

Table 5.11. Preference for flavour in chips among different age groups Flavour in chips Age group

AG1

(n=64)

AG2

(n=108)

AG3

(n=12)

AG4

(n=0)

Overall

(n=184)

Salted/ plain 18(28.12)

50(46.29)

8(66.66)

- 76(41.30)

Tomato flavoured

26(40.62)

60(55.55)

4(33.33)

- 90(48.91)

Chilly flavoured/ Masala

44(68.75)

76(70.37)

4(33.33)

- 128(69.56)

Table 5.12. Brand preference for biscuits

58

Biscuit Brands Rankings Mean score

Parle-G I 69.99

Good day II 69.62

Marie gold III 61.14

Hide and seek IV 54.74

Tiger biscuits V 53.79

Krack jack VI 52.86

Britannia 50-50 VII 48.76

Britannia little hearts VIII 45.61

Parle Monaco IX 43.68

Glucose X 43.41

Sunfeast snacky XI 42.13

Chocolate chip cookies XII 38.95

Britannia Time pass XIII 38.88

Sunfeast glucose XIV 37.44

Table 5.13. Brand preference for chips

Chips Brands Rankings Mean score

Lays I 71.55

Kurkure II 59.67

Bingo III 51.03

Balaji chips IV 49.90

Local brand/unbranded chips V 46.25

Cheetos VI 42.00

Diamond chips VII 39.90

Hippo VIII 38.68

5.3.2 Brand preference for chips

Table 5.13 presents brand preference for chips. It could be seen from the table that majority of the respondents preferred Lays brand in chips (mean score of 71.55) followed by

59

Kurkure (mean score of 59.67), Bingo (mean score of 51.03), Balaji chips (mean score of 49.90), local/unbranded chips (mean score of 46.25), Cheetos (mean score of 42.00), Diamond chips (mean score of 39.90) and Hippo (mean score of 38.68).

5.4 FACTORS INFLUENCING BRAND PREFERENCE

Table 5.14 shows the rank matrix of common factors influencing the brand preference among the products

While preferring a particular brand in biscuits quality was considered as the foremost factor (mean score of 75.74). Second important factor was taste with a mean score of 74.79.

Reasonable price was ranked as third factor (mean score of 64.60). Quantity and availability of the brands were ranked fourth and fifth ranks respectively (mean score of 59.08 and 56.70 respectively).

While preferring a particular brand in chips, taste was considered as the foremost factor (mean score of 80.35). Quality was considered as the second important factor by the consumers (mean score of 71.22). Third criteria considered was reasonable price in all the three products (mean score of 62.46). . Quantity and brand image were considered as fourth and fifth criteria respectively (mean score of 59.92 and 54.57).

In case of both the two products retailers influence was considered as the last criteria for the preference of a particular brand (mean score of 27.91 and 30.32)

5.5 ALTERNATIVE PURCHASE PLANS OF READY-TO-EAT FOOD

PRODUCTS

Table 5.15 reveals alternative purchase plans of ready-to-eat food products. Majority of the respondents in case of biscuits (80.00%), chips (60.86%) would go to other shops if preferred brand was not available. In the case of biscuit consumers, 27.00 per cent of the respondents would postpone their purchase decision if their preferred brand was not available, 22.00 per cent of them bought other brand and 26.00 per cent of the respondents placed order to get required brand.

In case of chips, 40.21 per cent of the respondents opined to buy other brand if their favourite brand was not available, 36.95 per cent of them would postpone the purchase decision and only 23.91 per cent of the respondents planned to place order to get their required brand.

60

Table 5.14. Factors influencing brand preference

Factors Biscuits Chips

Ranking Mean score

Ranking Mean score

Reasonable price III 64.60 III 62.46

Taste II 74.79 I 80.35

Quality I 75.74 II 71.22

Quantity IV 59.08 IV 59.92

Brand image VI 54.73 V 54.57

Availability V 56.70 VI 54.38

Advertisements VII 50.76 IX 45.72

Packaging design X 42.65 X 42.18

Friends XII 37.62 XI 41.42

Labeling XIII 32.76 XIII 36.14

Offers XIV 32.13 XIV 33.04

Freshness VII 52.30 VII 50.46

Retailers influence XV 27.91 XV 30.32

Long shelf-life of the

products

IX 48.89 VIII 47.32

Availability of range

products

XI 39.34 XIII 40.42

Table 5.15. Alternative purchase plans of ready-to-eat food products

61

Alternative purchase

plans

Products

Biscuits

(n=200)

Chips

(n=184)

Go to other shop 160

(80.00)

112

(60.86)

Post pone the

purchase

54

(27.00)

68

(36.95)

Will buy other brand 44

(22.00)

74

(40.21)

Place order to get

required brand

52

(26.00)

44

(23.91)

6. DISCUSSION

The results of the investigation presented in the previous chapter are discussed in this chapter under the following heads.

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6.1 Awareness of consumers towards branded ready-to-eat food products.

6.2 Purchase behaviour of consumers towards ready-to-eat food products.

6.3 Brand preference of the consumers.

6.4 Factors influencing brand preference.

6.5 Alternative purchase plans of the consumers.

6.1 AWARENESS OF CONSUMERS TOWARDS BRANDED READY-TO-EAT FOOD PRODUCTS

6.1.1 General information about the selected samples

From the Table 5.1, it was evident that the age of the majority of the respondents was between 21-40 years and most of them were female. The higher percentage of the respondents were degree holders and none of the selected respondents were illiterates. In the present study majority of the respondents belonged to nuclear families with medium family size (5-7 members) and most of them were vegetarians. Higher percentage of the respondents belonged to low income group (<Rs.8715.70) and majority of them were students.

6.1.2 Brand awareness of consumers about biscuits among different age groups

It was noticed from Table 5.2 that among the first age group, cent per cent each of the respondents were aware of Parle-G, Good day and Krack jack brands. Tiger biscuits, Marie gold, Sunfeast Glucose, Hide and seek, Glucose and Parle Monaco brands were familiar among more than 70.00 per cent of the respondents of AG1. In addition, other brands like Britannia 50-50, Sunfeast snacky, Chocolate chip cookies, Britannia Time pass and Britannia little hearts brands were known to more than half of the respondents as they are highly advertised through various mass media and this age group was more exposed to media. In case of AG2, 98.18 per cent each of the respondents knew Parle-G and Good day , followed by 96.36 per cent each aware of Tiger biscuits, Marie gold and Krack jack brands. Parle-G and Marie gold biscuits were very popular among AG3 and AG4. Tiger biscuits and Glucose brands were also known to all the respondents of AG4. Parle-G was the local brand being produced by LVT Pvt. Ltd., So also the Tiger biscuits and Marie Gold biscuits. Hence, reach of these brands was highly penetrative due to locational advantage. Each and every petty shop also keeps these brands. Irrespective of the age group whoever visit the shops would come to know about these brands. Therefore, these brands were popular in all the age groups. But none of the respondents of AG4 were aware of Chocolate chip cookies brand, Sunfeast snacky, Sunfeast glucose, Britannia Time pass and also Britannia little hearts brands. This age group doesn’t prefer much of the ready-to-eat products except some familiar ones.

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6.1.3 Brand awareness of consumers about chips among different age groups

From Table 5.3 it was observed that Lays brand was familiar among 100.00 per cent, 96.36 per cent, 88.88 per cent and 75.00 per cent of the consumers of AG1, AG2, AG3 and AG4 accordingly. In case of AG1 Kurkure, Hippo, Diamond chips and Cheetos were well known to 93.75, 43.75, 34.37 and 50.00 per cent of the respondents and about 59.37 per cent each aware of Bingo and Balaji brands. More than half of the respondents of AG2 and AG3 were conscious of Cheetos. Kurkure and Bingo brands were familiar among more than 70.00 per cent of the AG2 and AG3 respondents. In addition to these brands, Balaji chips was known to 70.90 per cent of AG2 and 55.55 per cent of AG3 respondents. About 36.36 per cent each were aware of Hippo and Diamond chips among AG2. Fifty per cent of the respondents were aware of Kurkure and 25.00 per cent of the respondents were conscious of Bingo brand in case of AG4 respondents. It could also be seen from the table that, none of the respondents of this age group were familiar with Balaji chips, Hippo, Diamond chips and Cheetos.

Ready-to-eat food products are the delicacy of lower age groups as compared to the old age people, who usually do not consume them much. Chips were no exception to this. The younger generations are the innovators of various brands in the market due to varied taste, attractive packing, advertisements through different media or influence by friends. Hence, the recent brands like Hippo, Balaji chips, Diamond chips and Cheetos were more known to young age group.

6.1.4 Influence of media to create awareness about the brands

It was observed from the Table 5.4 that, in case of both the products i.e., biscuits and chips the majority of the respondents said television as the major source of information (92.00%, 93.00% of the respondents of biscuits and chips respectively) for brand awareness.

Television is one of the important mass media in today’s world. Television is attractive and advantageous because of its audio-visual effect, which renders the clear picturization about the information on different products and services. This in turn persuades the audience in influencing their brand awareness. In addition, the product manufacturers also go for promoting their products through television advertisements which highly attracts the audience/consumers. Overall, 26.13 per cent of the respondents were influenced by television for getting information regarding various brands. Apart from this, newspapers (17.89%) and friends/relatives (17.52%) were also the major sources of information for brand awareness. This is because newspapers are the cheapest and easily available means of getting information regarding various brands.

Friends/relatives were considered as important source may be because, the respondents easily get information through word of mouth from their friends / relatives. Radio was the least preferred media for brand awareness of both the products (i.e., Biscuits and Chips).

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6.2 PURCHASE BEHAVIOURS OF CONSUMERS

6.2.1 Buyers and non-buyers of ready-to-eat food products

From Table 5.5 it was observed that biscuits were consumed by all the respondents. All the respondents of AG1, AG2, AG3 and AG4 consumed biscuits. This clearly indicates that all categories of respondents preferred to purchase biscuits irrespective of their age. The respondents expressed that it was a most convenient food and can also be used at any time and anywhere.

Chips were mostly preferred among AG1 and AG2 respondents (100.00% and 98.18% respectively) as these products were generally fun eat products. Younger generations are more driven away by fried foods. All the respondents of AG4 were not consuming chips because they were conscious of health. As chips are fried foods and such foods are not preferred by the aged groups because they are not interested in such foods. Such foods are also not digestible in case of elder people. The health disorders like blood pressure, sugar and cardial malfunctioning prompt them to avoid oily food materials.

6.2.2 Reasons for purchasing ready-to-eat food products

It was noticed from the Table 5.6 that the major factors considered while purchasing biscuits were convenience to use as snacks (65.00%), liking of the family members (60.00%) and ready availability (53.00%). Taste was the main reason for purchasing chips by 80.43 per cent. These results are being supported by the study (Palkar, 2004) wherein, consumers opined that taste or time pass was the most important reason for purchasing chips. When it comes for liking of the product, the major strata of population which purchase the ready-to-eat product was the first age group i.e., children. They were also influenced by friends. The demonstration effect works more in case of children to like the ready-to-eat food products.

6.2.3 Reasons for not purchasing ready-to-eat food products

It was revealed from the Table 4.7 that, health consciousness was the cent per cent of the reason for not purchasing chips. About 62.50 per cent of the respondents did not purchase chips due to low quality of the product and 50.00 per cent each of them did not purchase because they disliked chips and due to high price.

The study of reasons for not purchasing ready-to-eat food products revealed that the people of Nagari Nivara Parishad were more of health conscious and quality conscious. Price was not an important criteria to purchase the products as only 50.00 per cent of the respondents thought about the price while making purchases. Hence, this sort of studies send red alert to the ready-to-eat food manufacturers, that they cannot compromise on quality of the products in a view to offer the products at cheaper price.

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6.2.4 Nature of purchase decision

Nature of purchase decision among different age groups, is presented in Table 5.8.

Among the total respondents majority of them planned and purchased biscuits (65.00%) and remaining 35.00 per cent of biscuit purchasers did impulsive buying.

In case of other product chips, maximum of the respondents (73.91%) did go for impulsive buying. These results further support earlier findings that biscuits are the common man tea time snack. Hence, they always find a place in the purchase list of the consumers. But chips are generally impulse purchase products. Especially younger generations are more attracted by these products. The children, when they are out with elders usually demand for these products whenever they see the shops displaying them.

The same thing was reflected in the study also, as the higher age people did not go for impulsive buying of chips.

6.2.5 Preference for type of biscuits

It could be inferred from Table 5.9 that, among the first age group (AG1) maximum of the respondents preferred sweet biscuits (65.62%) followed by cream biscuits (50.00%) and salted biscuits (18.75%). None of the respondents of this age group preferred high fibre content biscuits. Age group one (AG1) contains the children and teens who always look at the taste rather than nutritive value of any product. Therefore many of them preferred cream and sweet biscuits. But as and when the people become old, they give more weightage to nutritive value of the food rather than the taste. The result of the study also supports the phenomenon. At the aggregate level, people gave less importance to nutritive value as compared to taste. Biscuits are mainly consumed for their taste rather than any nutritive value. Hence, the manufacturers of biscuits, planning for marketing strategy by attaching nutritive value for their product have to think seriously before launching the product.

6.2.6 Preference for variety of chips

It was observed from Table 5.10 that preference for potato chips was found to be highest (78.26%) followed by banana chips (51.08%), jack fruit chips (31.52%) and only 10.86 per cent of them did go for sweet potato chips. Among the first three age groups potato chips were highly preferred by the respondents. The next preference was given for banana chips followed by jack fruit chips and sweet potato chips in case of AG1 and AG2 respondents. Price is a factor which influence on the preference of the product. Banana, jack fruit and sweet potato were to be produced from distant market, which adds to cost of production. All these factors would definitely reflect higher prices for the products in the

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market. Therefore, cheapest among all varieties of chips, the potato chips were much preferred by the consumers of all age groups.

6.2.7 Preference for flavour in chips

It was revealed from the Table 5.11 that among the first two age groups AG1 and

AG2 chilly flavoured/masala chips were highly preferred (68.75% and 70.37% respectively). Whereas in case of AG3 salted/plan chips were preferred by more number of respondents (66.66%). The first two age groups mainly comprise of children below 20 years. There consumption of chips was mainly because of taste. Children usually like the masala and tomato flavoured chips and eat them by relishing the taste in it. While the older age group consumers use chips as tea time snacks. Therefore, salted or plain chips would be more suited to this age group people.

6.3 BRAND PREFERENCE OF THE CONSUMERS

6.3.1 Brand preference for biscuits

It could be inferred from Table 5.12 that, Parle-G was the most popular brand among majority of the respondents. Since it is an age old brand and it is continuously rendering a very good quality product, it is highly acceptable by the consumers. In addition, comparatively, the price of this brand is low. In accordance with this result, Padmanabhan

(1999) study on brand loyalty revealed that only when price of the particular brand is comparatively lower to prices of other brand in the market the consumers will be brand loyal.

The consumers would naturally prefer to low priced brand and they would naturally continue to purchase the same brand as long as the price and quality of the brand is unaltered. Any violation to this would lead to brand switching. Good day and Marie gold biscuits were also popular among the respondents.

6.3.2 Brand preference for chips

It could be seen from Table 5.13 that, Lays was the most popular brand among maximum number of respondents. It may be because of its taste, flavour and quality of the product. Advertisements also play a very crucial role in brand preference. The product promotional strategies adopted by a producer would also strengthen the brand preference.

Kurkure and Bingo brands were also most popular among the respondents.

6.4 FACTORS INFLUENCING BRAND PREFERENCE

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Table 5.14 presents the factors influencing brand preference. While, preferring a particular brand in biscuits quality was considered as the foremost factor (mean score of

75.74). Second factor was taste with a mean score of 74.79. Reasonable price was ranked as third factor (mean score of 64.60).

While preferring a particular brand in chips, taste was considered as the foremost factor (mean score of 80.35). Quality was considered as the second factor by the consumers (mean score of 71.22). Third criteria considered was reasonable price (mean score of 62.46).

6.5 ALTERNATIVE PURCHASE PLANS OF READY-TO-EAT FOOD PRODUCTS

Table 5.15 depicts alternative purchase plans of ready-to-eat food products. Majority of the respondents in case of biscuits (80.00%) and chips (60.86%) would go to other shops if their preferred brand was not available. This was because the consumers were more loyal to their preferred brands. In case of biscuits, 27.00 per cent of the respondents respectively would postpone their purchase decision if their preferred brand was not available. This shows the extent of brand loyalty of the consumers to a particular brand.

About 40.21 of the respondents of chips buyers would buy other brands, if preferred brand was not available. This indicates that consumers try to resist the postponement of purchase of the product as these are fun eat products.

7. SUMMARY AND POLICY IMPLICATIONS

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India is the world’s second largest producer of food next to China and has the potential of being biggest industry with food and agricultural sector. Food accounts for the largest share of consumer spending.

In India, majority of food consumption is still at home. Nevertheless, out of home food consumption is increasing due to increase in urbanization, breaking up of the traditional joint family system, desire for quality, time which translates into an increased need for convenience, increasing number of working women, rise in per capita income, changing lifestyles and increasing level of affluence in the middle income group had brought about changes in food habits.

“Ready-to-eat food is food offered or exposed for sale without additional cooking or preparation, which is packed on the premises where sold and is ready for consumption”.

Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits of foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. Canned foods, convenience foods, fast foods, frozen foods, dried foods, preserved foods, etc. all comes under ready-to eat foods.

Ready-to-eat foods are widely used in catering industries as well as at homes. There are varieties of ready-to-eat foods available in the market to choose from. Now-a-days they have become a part of every day life.

As double income nuclear families have become the norm in urban India, every one who is in the food business has been eyeing on the ready-to-eat food sector with considerable hunger.

Several firms are engaged in production and marketing of ready-to-eat food products. Hence, the consumers have greater option to choose from. In this context, a study on consumer behaviour was seemed to be important to understand the buying behaviour and preferences of different consumers. Understanding the consumer behaviour would help the firms in formulating strategies to cater to the needs of the consumer and thereby increase their market share. Consumer’s taste and preference were found to change rapidly especially in a dynamic environment. Keeping in view the importance of consumer behaviour and consumption pattern, an attempt was made to study the buying behaviour of consumers towards ready-to-eat food products, brand preference of the consumers, factors influencing brand preference and alternative purchase plans of the consumers.

The specific objectives of the study were:

i. To ascertain the awareness of consumers towards branded ready-to-eat food products.

ii. To study the purchase behaviour of ready-to-eat food products.

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iii. To evaluate brand preference of the consumers.

iv. To study the factors influencing brand preference.

v. To evaluate alternative purchase plans of the consumers.

The study was carried out in Nagari Nivara Parishad in Goregaon (E). A sample of two hundred people were selected randomly. Required data were collected from the respondents with the help of pre-structured and pre-tested schedules through personal interview method. Data was coded, tabulated, analysed and interpreted using suitable statistical techniques viz., Garrett’s ranking technique etc.

Findings of the study

The important findings of the study are summarized and suitable conclusions are drawn and presented below.

1. Maximum number of respondents belonged to age group two (21 years to 40 years).

More than half of the respondents were females. Most of the respondents were degree holders (44.00%). A very few percentage (2.00%) of them had finished primary school. It was found that among the selected respondents none of them were illiterates. Maximum number of respondents (44.00%) belonged to the medium family size of 5-7 members and most of them belonged to nuclear families (89.00%). The data on food habits revealed that most of them were vegetarians (73.00%). As per the occupation classification, 68.00 per cent of them were students.

2. The brand awareness of consumers about biscuits among different age groups showed that, majority of the respondents were aware of Parle-G brand (99.00%) followed by Marie gold (97.00%) and Tiger biscuits, Good day and Krack jack brands (96.00% each). But Chocolate chip cookies brand was found less familiar among the respondents (43.00%). The first agegroup of respondents were conscious of ParleG, Good day and Krack jack brands. In case of AG2, most of the respondents i.e., 98.18 per cent each were aware of Parle-G and Good day brands, followed by 96.36 per cent each being aware of Tiger biscuits, Marie-gold and Krack jack brands. ParleG and Marie-gold biscuits were popular among all the respondents of AG3 and AG4. Also, Tiger biscuits and Glucose brands were known to all the respondents of AG4. But none of the respondents of AG4 were aware of Chocolate chip cookies brand, Sunfeast snacky, Sunfeast glucose, Britannia Time pass and also Britannia little hearts brands.

3. The brand awareness of consumers about chips among different age groups revealed that, most of the respondents were aware of Lays (96.00%), Kurkure (83.00%) and Bingo (67.00%) brands. In case of AG1 all the respondents knew Lays brand. Kurkure, Bingo, Lays, Balaji chips and Cheetos were familiar among more than half of AG2 and AG3 respondents.

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Lays brand was known to 75 per cent of the respondents of AG4. None of the respondents of this age group were familiar with Hippo, Diamond chips and Cheetos.

4. Influence of media to create awareness about the brands in the study area showed that, in case of biscuits television was the major source for getting information about the brands (92.00%). This was followed by newspapers (66.00%) and friends/relatives (51.00%). In case of other product i.e., chips, majority of the respondents were influenced by television (93.00%). Radio was the least preferred media for brand awareness of all the four products. Overall, television was preferred as the major source of information for brand awareness (26.13%) followed by newspapers and friends/relatives (17.89% and 17.52% respectively). Only a meager percentage of the respondents were influenced by radio (4.08%).

5. Buyers and non-buyers of ready-to-eat food products presented that, biscuits were consumed by all the respondents in the study area. About 92.00 per cent of the respondents consumed chips. All the respondents of AG1 consumed chips. None of the respondents of AG4 consumed chips.

6. The major factors considered by the respondents for purchasing biscuits were convenience as snacks (65.00%), liking of the family members (60.00%) and ready availability (53.00%). Taste was the main reason for purchase of chips (80.43%). Convenience to use as snacks, satisfaction and ready availability were other important factors considered while purchasing chips (64.13%, 52.17% and 46.73% respectively). About 55.31 per cent and 44.68 per cent of the respondents consumed ice creams because of satisfaction and influence of friends or relatives.

7. All the respondents did not purchase chips since they were health conscious. The other reasons for not consuming chips were low quality of the product (62.50%), dislike towards the product and high price (50.00% each).

8. It was inferred that majority of the respondents purchased biscuits twice in a week from bakeries and departmental stores (70.58% each). Most of the respondents purchased chips whenever needed. Maximum number of respondents purchased chips from bakeries (77.77%).

9. In case of biscuits, majority of the respondents did go for planned purchase (65.00%). But in case of chips majority of the respondents did impulsive buying (73.91%).

10. Influence of income on purchase decisions on ready-to-eat food products showed that, in case of biscuits and chips majority of the respondents of all the three income groups took their own decision while purchasing the products. Influence/impact of education to make purchase decision on ready-to-eat food products showed that, in case of biscuits, most of the degree and post graduate level respondents took their own decision while purchasing. It

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clearly shows that education level of the respondents has prompted them to take independent decision.

11. It was inferred that maximum number of respondents preferred sweet biscuits (52.00%) followed by cream biscuits (51.00%) and salted biscuits (36.00%).

12. It was found that preference for potato chips was found to be highest in case of all the three age groups. Banana chips (51.08%) and jack fruit chips (31.52%) were also highly preferred among the respondents.

13. Chilly flavoured/masala chips (69.56%) were mostly preferred among the respondents followed by tomato flavoured chips (48.91%) and salted / plain chips (41.30%).

14. In the case of biscuits, Parle-G, Good day and Marie gold biscuits were highly preferred brands among the respondents. Most of the respondents preferred Lays, Kurkure and Bingo brands in the case of chips.

15. The factors that influenced brand preference of biscuits were quality, taste and reasonable price. In case of chips, the major factors influenced brand preference were taste, quality and reasonable price.

16. Maximum number of respondents in case of both the products would go to other shops if preferred brand was not available.

POLICY IMPLICATIONS

1. Majority of the residents in Nagari Nivara Parishad (NNP) purchased these ready-to-eat products viz., biscuits and chips. This indicates that there is a wide scope for all the intermediaries who are involved in this business.

2. Ready-to-eat food products are impulse purchase products and generally fun eat foods. Consumer buys such products only if it catches his eye at the outlet. So players/manufacturers need to stress on attractive packaging and sales promotion. Further, study also indicated that those firms which resorted to advertisements through mass media, particularly television and newspapers could get better share in the market. This calls for the attention of other competing firms in the business to improve their sales promotion activities by making use of such mass media to improve their business.

3. The cosmopolitan people of NNP were found more health and quality conscious while choosing a ready-to-eat food product. Price was less important to them. This sends a message

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to the manufacturers of ready-to-eat food products, that they cannot compromise on quality of the products in view to offer the products at cheaper prices, particularly to such cosmopolitan consumers.

4. Ready-to-eat food products are impulse purchase and fun eat products. Lower age groups, particularly children and teens consume them the most. Taste and other organoleptic quality aspects count more while preparation of the products. Hence, manufacturers, planning for marketing strategy by attaching nutritive value for the products have to think seriously before launching such products.

5. Brand loyalty is an important factor in such ready-to-eat food products. It is very difficult to induce the consumers for brand switching. Any new firm entering into the market should study these things very critically. The quality aspects coupled with competitive price may lead to change of brands. The innovative firms should keep these points in mind while entering into such type of business.

6. Study of alternative purchase plans of ready-to-eat food products suggested that majority of the residents of NNP are brand loyal as they either go to other shops in search of the particular brand or they postpone their purchases until they get their required brands. Hence, supply chain management of the popular brands should be such that the product of these brands should be readily available in all the retail outlets.

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