PROJECT TITLE CONSUMER BEHAVIOR ON WINES AT WINEMO INC

CONTENTS Page no
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CHAPTER-I INTRODUCTION Need for the study Objectives of the study Research methodology Scope of the study Limitations of the study CHAPTER-II COMPANY PROFILE CHAPTER-III THEORETICAL BACKGROUND ABOUT THE TOPIC CHAPTER-IV DATA ANALYSIS CHAPTER-V FINDINGS CONCLUSIONS SUGGESTIONS QUESTIONNARE BIBLIOGRAPHY

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CHAPTER-I INTRODUCTION

INTRODUCTION Need for the study With the economic liberalization in India a number of global companies have been coming forward to invest in India and tapping perhaps and world's biggest growing market. As the floodgates have been opened up for Multinational Companies, the global giant winemo also decided to make an entry into the Indian market. In India, the per capita consumption of hot drinks is at rock bottom level even less than our neighboring countries Pakistan and Bangladesh, where it is four times as much. The last summer was particularly sweltering one, with temperatures hitting the high 40's in some places yet; bottles were disappearing from shelves faster than they could be replaced. In the peak season, they found themselves short of capacity and having to turn around their trucks faster and faster to slake the greater Indian thirst. With growth rates zooming into the double digits, bottlers have been propelled into expanding capacities. With their big-time plans, the multinationals have changed the face of this business, long dominated by small-time businessmen. If demand continues to increase annually at an average of 20 percent, then volumes could reach one billion cases within ten years.

These arc ambitious targets and to reach them the wine makers will have to build capacity, infrastructure, make their bottlers more available and more affordable. There are 5. 00,000 retailers stocking hot drinks in India. Also, hot drinks which retail at any where between Rs.9.00 and Rs.12.00 are expensive when measured against purchasing power. As they concoct their strategies, keeping an eye on each other all the time, ultimately there's only one guy they have to watch out for, who will determine their fortunes: the consumer. The real race to quench his thirst has just begun
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Objectives of the study

To study about the consumer preference with regard to hot drink To study about the consumer perception with regard Wine To understand the Promotional Strategies To find out the medium which is most effective in reaching the consumers?

Research methodology

Data will be collected from a sample size 1000 and distributed over different areas by using simple Random Sampling. Random Sampling consists of 1. Demographic Segmentation 2. Sociocultural Segmentation 3. Use-Related Segmentation 4. Use-Situation Segmentation

Analysis
1. Data Analysis is done both qualitatively and quantitatively. 2. The analysis is presented pictographically using bar graphs

PERIOD OF THE STUDY: The period of the study is past one year

Scope of the study

The new economic policies of the Govt. of India adopted in the mid eighties were given further impetus by the early nineties. The Indian market has undergone considerable changed as a direct consequence of many of these policies and hot drink industry is no exception to this. Keeping the above - mentioned perspective in the background, the researcher has selected hot drink market, since the marketing task his became more challenging and intensive competition has opened up new vistas. Companies are evolving marketing strategies by studying the demands of the market place increasingly penetrating into appropriate market segments introducing differentiated products to improve their market share. The hot drink market has achieved an accelerated growth in the past decade. Hot drinks include ail types of alcohol carbonated flavored or otherwise sweetened beverages. The entry of Pepsi and the reentry of Wine in the India market arc inevitably facing stiff competition but the ultimate winner is customer/consumer. This has led the researcher to study me perception of consumers towards different brands of hot drinks and to gauge out the promotional strategic being adopted by the marketers to lure promiscuous buyers and win a larger share in the markets.
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The wine wars are intensifying and bringing manifold changes in the hot drink industry. The researcher has conducted a detailed survey, interpreting the responses to study the perception of the consumers. Now the people with changing life styles and increase in income levels have made the hot drink a common man drink. Liven through the existing system of marketing of hot drink has not tapped such a big market in the interiors of the country specially the rural areas, as marketing in the suburban and rural areas is developing slowly. Despite the hot drink industry is growing at a very healthy pace and stands at 18% per annum. The market for cool drinks comprises of adults in the 35 years age group who are largest consumers of the hot drink in the country followed by young adults in the age group of 15-25 years and children in the age group of 6- 14 years hence, companies must develop their product and marketing slraleiues to suit their needs.

Limitations of the study 1. The study is conducted with in the confines of the twin cities 2. The study made use of both the primary and secondary sources of information. The accuracy and authenticity of statistics depends of the accuracy of the second source itself. Therefore, the limitation of the secondary source is also bound to be present in the analysis too. 3. In spite of all the care taken to translate the feelings and opinions of the respondents, the errors might creep into the study, may be because of the reason that consumers may fail to articulate their feelings properly.

4. Due to lack of time and finances, the sample size is confined to hundred only. The method adopted for sampling is convenient. Therefore, size and method implications are bound to be present in the findings. Hence, the findings cannot be taken for granted for generalization for the whole population. Study is confined to consumers belonging to age group between 20 --- 25 years

CHAPTER-II COMPANY PROFILE

COMPANY PROFILE

2.1 INDUSTRY PROFILE

MARKET OVERVIEW
Market definition
The wine market consists of retail sale of champagne, fortified wine, sparkling wine and still wine. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2009 annual average exchange rates.

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For the purpose of this report, Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea and Taiwan.

Research highlights
The Indian wine market generated total revenues of $254.2 million in 2009, representing a compound annual growth rate (CAGR) of 20.4% for the period spanning 2005-2009. Still wine sales proved the most lucrative for the Indian wine market in 2009, generating total revenues of $203 million, equivalent to 79.8% of the markets overall value. The performance of the market is forecast to decelerate slightly, with an anticipated CAGR of 18.8% for the five-year period 2009-2014, which will lead the market to a value of $602.6 million by the end of 2014.

Market analysis
The Indian wine market grew at a double digit rate between 2005 and 2009, driven by strong sales growth in the still wine category. The market is expected to follow similar trend, albeit at a slightly lower rate, in the forthcoming five years. The Indian wine market generated total revenues of $254.2 million in 2009, representing a compound annual growth rate (CAGR) of 20.4% for the period spanning 2005-2009. In comparison, the Chinese market grew at a CAGR of 5.3% while the Japanese market declined at a compound annual rate of change (CARC) of -0.4%, over the same period, to reach respective values of $7.2 billion and $4.9 billion in 2009. Market consumption volumes increased with a CAGR of 18.4% for the period 2005-2009, to reach a total of 10.4 million litres in 2009. The market's volume is expected to rise to 24.4 million litres by the end of 2014, representing a CAGR of 18.6% for the 2009-2014 period. Still wine sales proved the most lucrative for the Indian wine market in 2009, generating total revenues of $203 million, equivalent to 79.8% of the markets overall value. In comparison, sales of sparkling wine generated revenues of $24.5 million in 2009, equating to 9.6% of the market's aggregate revenues. The performance of the market is forecast to decelerate slightly, with an anticipated CAGR of 18.8% for the five-year period 2009-2014, which will lead the market to a value of $602.6 million by the end of 2014. Comparatively, the Chinese and Japanese markets will grow with CAGR of 4.7% and 0.2%, respectively, over the same period, to reach respective values of $9 billion and $5 billion in 2014.

MARKET VALUE
The Indian wine market grew by 18.8% in 2009 to reach a value of $254.2 million. The compound annual growth rate of the market in the period 2005-09 was 20.4%. Table 1: Year Growth 2005 2006 India wine market value: $ million, 2005-09(e) $ million 121.0 148.4 22.6 INR million 5,912.0 7,246.9 million 87.0 106.7 %

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2007 2008 2009(e)

179.8 21.2 213.9 19.0 254.2 18.8

8,784.0 10,449.0 12,418.6

129.3 153.8 182.8

The History of Wine

The history of wine can be dated back to the Fertile Crescent of Egypt when our ancestors cultivated grapes. It was likely those grapes fermented on occasion producing alcohol. What a surprise that must have been. Even though wild grapes grew all over the world, it was this productive Vitis Vinifera species which spread from the Middle East throughout the Mediterranean and into Europe.

Romans loved well-aged wines, sometimes aging it for as long as 25 years according to some Roman writings. Either they perfected the first airtight vessel or they liked oxidized wine. The Romans were the first to use ceramic jugs for storing wine. It was the Celts of North Central Europe who began using wooden oak barrels, similar to those used today, for storing wine. This rounded in the middle design made them easy to move and roll. The oak wood allows the wine to breathe while still remaining air-tight. The presence of oak in wine, received from this barreling and passed down through the ages, is an important addition to the history of wine. After the fall of the Roman Empire, Christian monks took over the development of European wines. It is these monks who are responsible for much of wine making history and traditions still practiced in Europe today. 12

Until the 20th century, fine wine was almost exclusively the domain of Europe. So today a large percentage of the worlds wine vines are of European origin. Wine Spreads to the New World European explorers brought their wine - and their vines - with them to the new world. Even though wild grapes flourished on American soil, the European settlers attempted to plant their native Vitis Vinifera species here with limited success. Those vines that did grow well in the New World were imported by the Spanish and grown in the loose soil of their sunny California missions. These were Southern California's first European style wines. Eventually European explorers settling on the east coast made their own wine history by successfully crossing American grape varieties with their European Vitis Vinifera. Prohibition Just as the new American wine industry was gaining momentum, anti-alcohol sentiment took hold and nearly ended the history of wine. Prohibition lasted nearly 14 years, but wine producers found creative ways to remain in business. Wine for cooking, medicinal purposes, and sacramental purposes were still allowed, as was home fruit juice. Nevertheless, it took considerable time for the wine industry to recover. New York and Ohio were the first wine producing states in the new nation until the gold rush brought half a million people to California. It was the gold rush that proved to the new residents of central California that many grape varieties, including the European variety, could grow beautifully in this rich agricultural region. The Good Years Grape growing and wine production became very scientific during the 20th century. Also during this time most countries enacted strict standards for wine production in their regions, with France leading the way and the United States joining them in 1983. In America, wine drinking became truly in vogue in the mid to late 20th century. By 1970, Americans were drinking over a gallon of wine per person per year. It was during this time that several recognizable names became popular including Lancers, Mateus, Liebfraumilch and White Zinfandel. Californias reputation for producing first class wines continued to grow, in time beating their French competitors in blind taste testings. Since then Americans penchant for fine wine has only increased. Their love affair with red wines began with the French Paradox, which concluded that red wine consumption explained why the French suffered fewer heart attacks even though they ate poorly, exercised less and smoked. 13

The red wine grape that grew most in popularity as a result of the "French Paradox" was Merlot, with its soft, mellow, light tannin appeal. That is until the movie Sideways came out in 2004 and Pinot Noir took over, particularly in the Santa Ynez region of Central California.

The Gaelic "usquebaugh", meaning "Water of Life", phonetically became "usky" and then "whisky" in English. However it is known, Scotch Whisky, Scotch or Whisky (as opposed to whiskey), it has captivated a global market. Scotland has internationally protected the term "Scotch". For a whisky to be labelled Scotch it has to be produced in Scotland. If it is to be called Scotch, it cannot be produced in England, Wales, Ireland, America or anywhere else. Excellent whiskies are made by similar methods in other countries, notably Japan, but they cannot be called Scotches. They are most often referred to as "whiskey". While they might be splendid whiskies, they do not captivate the tastes of Scotland. "Eight bolls of malt to Friar John Cor wherewith to make aqua vitae" The entry above appeared in the Exchequer Rolls as long ago as 1494 and appears to be the earliest documented record of distilling in Scotland. This was sufficient to produce almost 1500 bottles, and it becomes clear that distilling was already a well-established practice. Legend would have it that St Patrick introduced distilling to Ireland in the fifth century AD and that the secrets traveled with the Dalriadic Scots when they arrived in Kintyre around AD500. St Patrick acquired the knowledge in Spain and France, countries that might have known the art of distilling at that time. The distilling process was originally applied to perfume, then to wine, and finally adapted to fermented mashes of cereals in countries where grapes were not plentiful. The spirit was universally termed aqua vitae ('water of life') and was commonly made in monasteries, and chiefly used for medicinal purposes, being prescribed for the preservation of health, the prolongation of life, and for the relief of colic, palsy and even smallpox. There were monastic distilleries in Ireland in the late-12th century. Scotland's great Renaissance king, James IV (1488-1513) was fond of 'ardent spirits'. When the king visited Dundee in 1506, the treasury accounts record a payment to the King James IV (1488local barber for a supply of aqua vitae for the king's pleasure. The reference to the 1513) barber is not surprising. In 1505, the Guild of Surgeon Barbers in Edinburgh was granted a monopoly over the manufacture of aqua vitae - a fact that reflects the spirits perceived medicinal properties as well as the medicinal talents of the barbers. The primitive equipment used at the time and the lack of scientific expertise meant that the spirit produced in those days was probably potent, and occasionally even harmful. During the course of the 15th century, along with better still design, the dissolution of the monasteries contributed to an improvement in the quality of the spirits produced. Many of the monks, driven from their sanctuaries, had no choice but to put their distilling skills to use. The knowledge of distilling then quickly spread to others. The increasing popularity eventually attracted the attention of the Scottish parliament, which introduced the first taxes on malt and the end product in the latter part of the 17th century. Ever increasing rates of taxation were 14

applied following The Act of Union with England in 1707, when England set out to tame the rebellious clans of Scotland. The distillers were driven underground. A long and often bloody battle arose between the excisemen, or gaugers, as they were known, and the illicit distillers, for whom the excise laws were alien in both their language and their inhibiting intent. Smuggling became standard practice for some 150 years and there was no moral stigma attached to it. Ministers of the Kirk made storage space available under the pulpit, and the illicit spirit was, on occasion, transported by coffin - any effective means was used to escape the watchful eyes of the Excise men. Clandestine stills were cleverly organised and hidden in nooks and crannies of the heather-clad hills, and smugglers organised signaling systems from one hilltop to another whenever excise officers were seen to arrive in the vicinity. By the 1820s, despite the fact that as many as 14,000 illicit stills were being confiscated every year, more than half the whisky consumed in Scotland was being swallowed painlessly and with pleasure, without contributing a penny in duty. This flouting of the law eventually prompted the Duke of Gordon, on whose extensive acres some of the finest illicit whisky in Scotland was being produced, to propose in the House of Lords that the Government should make it profitable to produce whisky legally. In 1823 the Excise Act was passed, which sanctioned the distilling of whisky in return for a license fee of 10, and a set payment per gallon of proof spirit. Smuggling died out almost completely over the next ten years and, in fact, a great many of the present day distilleries stand on sites used by smugglers of old. The Excise Act laid the foundations for the Scotch Whisky industry, as we know it today. However, two further developments put Scotch Whisky on firmly on the world map. Until now, we have been talking about what we now know as Malt Whisky. But, in 1831 Aeneas Coffey invented the Coffey or Patent Still, which enabled a continuous process of distillation to take place. This led to the production of Grain Whisky, a different, less intense spirit than the Malt Whisky produced in the distinctive copper pot stills. The lighter flavored Grain Whisky, when blended with the more fiery malts, extended the appeal of Scotch Whisky to a considerably wider market. The second major helping hand came unwittingly from France. By the 1880s, the phylloxera beetle had devastated the vineyards of France, and within a few years, wine and brandy had virtually disappeared from cellars everywhere. The Scots were quick to take advantage of the calamity, and by the time the French industry recovered, Scotch Whisky had replaced brandy as the preferred spirit of choice. Since then Scotch Whisky has survived. It has survived Prohibition, wars and revolutions, economic depressions and recessions, to maintain its position today as the international spirit of choice, extending to more than 200 countries throughout the world.

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CHAPTER-III THEORETICAL BACKGROUND ABOUT THE TOPIC

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THEORETICAL BACKGROUND ABOUT THE TOPIC

Consumer Behaviour, The

Marketing Process and

Models of Consumer Decision-making

Psychological influences: the consumer as an individual Perception, motivation, learning, attitudes, attitude change and persuasive

communications

Social and cultural influences: the consumer as a group member. Group influence and opinion leadership; reference group influence; social class and economic

influences, lifestyles, ethnic, religious, age and regional groups

The consumer as a decision maker Individual decision-making g, demographics and household decision making; personality, self-concept and sex roles, purchase and post-purchase "Some issues that arise during stages in the consumption process" Consumer's perspective

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CONSUM BEHAVIOUR ER

"A model in this context is a representation of Consumer Behaviour. The aim is to provide a simplified portrayal of consumer processes to aid our description, explanation and control of buying behaviour". Types of consumer behaviour models: Black Box models Personal variable models Personal Engel, Blackwell and Minored Howard-Sheath Nicosia Perhaps the most useful set of categories is that of low, medium or high level models. In this case the level refers to the level of complexity - so a low level model would be a relatively simple representation of the phenomenon while a high level model of the same event would be much more complex and detailed and include more variables. Simple models

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In the marketing context the modeling approach has two key objectives:
1. description, explanation, prediction (and ultimately control of consume behaviors) and/or 2. Aiding researchers in their task of developing 'better' hypotheses and theories about

the

relationships and processes involved in consumer behaviour Models can be evaluated against their ability to satisfy either or both of these objectives. Study on Consumer Behaviour

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SIM PLE M ODELS OF CONSUM BEH ER AVIOUR

Lower level or simple models, in contrast, fall into three broad categories - black box models, decision process models and personal variable models. Black Box models - do not consider internal variables. They focus on inputs and outputs without concerning themselves with the intervening mental processes, which might determine the outcomes.

Decision process models - attempt a simple description of the stages consumers' progress through in reaching purchasing decisions. Most are variations on the classic problem solving/decision making process of: Define problem generate alternative solutions - evaluate alternatives - decide - implement monitor. These approaches give a sound basis for marketers seeking to devise strategies that are appropriate for each stage. Inevitably they are not strong on explanation or prediction without considerable elaboration, which makes them, falls into the comprehensive model category.

Personal variable models - the personal variable models omit external variables. So these models focus on the mental processes of decision-making - internal elements and processes such as perception, motivation, beliefs and values. One classic example of the personal variable model is the fisheye model, summarized as A, = B, o,
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Where A0 = the attitude towards object o8, = the strength of belief about o a, = the evaluation aspects of 6 n = the number of beliefs Study on Consumer Behaviour Individual Determinants of Consumer Behaviors Psychological Factors Influencing The Buying Decision Process "Psychological factors operating within individuals partly determine people's general Behaviour and thus influence their behaviour as consumers.

The primary psychological influences on consumer behaviour are:

Perceptions Motives Ability and knowledge Attitudes Personality

Even though these psychological factors operate internally, it will become apparent that consumers are also very much affected by social forces outside the individual"

CONSUMER BEHAVIOUR: LEARNING AND MEMORY Learning is a change in behaviour that is caused by experience.

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Learning can occur through simple associations between a stimulus and response, or via a complex series of cognitive activities Behavioral learning theories assume that learning occurs responses to

Classical conditioning occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response. Over time, the second stimulus (the conditioned stimulus) comes to elicit the response as well Study on Consumer Behavior

This response can also extend to other, similar stimuli in a process known as stimulus generalization. This process is the basis for such marketing strategies as licensing and family branding, where a consumer's positive associations with a product are transferred Operant or instrumental conditioning Occurs as the person learns to perform behaviour that produce positive outcomes. While classical learning to other contexts,

outcomes and avoid those that result in negative

conditioning involves the pairing of two stimuli, instrumental

occurs when reinforcement is delivered following a response to a stimulus. Reinforcement is positive if a reward is delivered following a response. It is negative if a negative outcome is avoided by not performing a response. Punishment occurs when a response is followed by unpleasant events.
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Extinction of the behaviour will occur if reinforcement is no longer received. Cognitive learning occurs as a result of mental processes. For example,

observational learning takes place when the consumer performs behaviour as a result of seeing someone else performing and being rewarded for it. Memory refers to the storage of learning information. The way when it is perceived determines how it will be known as sensory memory, role in retaining

information is encoded

stored in memory. The memory systems

short-term memory, and long-term memory each play a and processing information from the outside world. Information is not stored in isolation:

it is incorporated into knowledge

structures, where it is associated with other related data. The location of product information in associative networks and the level of abstraction at when and how this information will influence the likelihood of salience (or

which it is coded, help to determine

be activated at a later time. Some factors that

retrieval include the level of familiarity with an item, its

prominence) in memory, and whether the information was presented in pictorial or written form.

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Products also play a role as memory markers: they are used by consumers to retrieve memories about past experiences (autobiographical memories) and are often valued for their ability to do this. This function also contributes to the use of nostalgia in marketing strategies. Memory for product information can be measured through either recognition or Recall techniques. Consumers are more likely to recognize an advertisement if it is presented to them than to recall one without being given any cues." (See Solomon 1994 137-138) Learning theories. Marketing and Involvement

Theory Examples of low involvement Examples of high involvement Free sample of hair shampoo delivered Faced with mounting debts, individual through front door and stored in responds to advertisement offering bathroom. When usual shampoo runs to solve the problems with a single out, trial pack is used, found acceptable loan. Learns the cost of borrowing and purchased (or not).From loan sharks A positive emotional response is the generation of higher-order

Generated by the use of a particulate conditioning allows the customer to Classical pop tune. This becomes associated have positive feelings

about a Conditioning with a product, even though the product, which may be more person alternatives, does not consciously pay expensive than

e.g. attention to the advertising luxury goods.

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A common brand of baked beans id Clothes purchased and worn give Operant purchased. They taste 'OK 1 . The rise to numerous complements, conditioning consumer continues to purchase that Further cloths of the same label are brand bought.

An individual learns that Amstrad Keen cooks learn about various Iconic rote makes personal computers without makes of kitchen knives by careful learning ever consciously focusing on PCs or reading of Study on

advertisements with they Amstrads advertisements find enjoyable Consumer Behaviour

The

Guardian'

unavailable

at

Commuter,

distressed

by

daily

Insight

newsagents when on holiday, difficulties with parking decides to learning Customer buys 'the Independent' purchase mountain bike to solve the instead problem Consumer spots 'low salt, low sugar' Consumers as a family, having won Latent beans on the supermarket shelf, the pools, decide that they can now learning Remembers healthy eating afford their 'dream car. Choose advertisements and purchases tin model they have always wanted A child learns parental roles by Individual observes reaction to a Vicarious observation but without really friend s new style sutt before deciding learning thinking about it to purchase Car taken

to garage for service. Commuter finds level of smoke Customer offered a new higher-Experimental pollution on upper deck of bus too powered model to use for
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the day-learning offensive to tolerate and decides to Impressed by the car, the consumer travel on lower deck decides to move up the range when the time comes to change car. Consumer Decision Processes The most common, everyday problem solving sequence is:

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In the marketing context, Engel, Blackwell and Minored suggest that this becomes: S Information search S Evaluate alternatives S Purchase and Outcomes Stage I: Information Search The first step in this stage is often internal memory search to establish whether the individual possesses enough information about the available options to make a decision without further action. In low involvement consumer decisions this may often be the case, but external search is more usual with high involvement purchases. Opinion leadership and word-of-mouth communication will be significant at this stage, as well as the more formal marketing and advertising messages. Similarly, past learning, stored in the memory system, is shown to be a significant source even in extended problem solving situations. The information search stage is also affected strongly by individual differences and environmental factors e.g. the traits and orientation of some individuals means that they have the personality characteristic of caution - such people will tend to conduct extensive and detailed information search. Similarly families and reference groups are likely to make significant contributions to the amount and style of search conducted.

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Many of our decisions are often made on less than complete information. The important point is that the purchaser feels that enough information has been gathered. Study on Consumer Behavior

In the light of the differences between high and low involvement purchasing, the perception of the value of continued search is likely to be significantly higher in high involvement decisions. The external search is dominated by marketing messages and the information so gathered should be fed into the memory system via processes similar to the research on Perception:

Exposure Attention

Comprehension

Acceptance

Retention

Stage 2: Alternative evaluation "Humans are apparently so constituted that they cannot refrain from evaluating, judging, appraising or valuing almost everything that comes within their purview". Note the importance of the role of criteria in the process of evaluation - the obvious criterion for a purchasing decision is 'did it achieve its objective?' However a number of sub issues are involved here: What objective? It is likely that we have multiple objectives.

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Internal or external outcomes? These possibly conflicting objectives can be seen as being internal or external to the decision-making unit - we may satisfy our family but not impress our friends.

When should we measure outcomes? Here we may be looking at the difference between first impressions and longer-term satisfaction Do we look for unexpected outcomes?

The criteria we use stem from our values, beliefs, attitudes and intentions. However it is not unusual for people to seek a single measure that will pin down the payoffs required. Satisfaction is affected by a number of factors - motivation, values, expectancy, and self-image - so a variety of criteria may be necessary against which to judge the effectiveness of our purchase. The reality appears to be that people adopt some form of compensation strategy in which a perceived weakness in one attribute can be offset by strength in others.

"Alternative evaluation represents the decision-making stage in which consumers evaluate alternatives to make a choice. During this stage consumers must

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 Determine the evaluative criteria to use for judging alternatives Decide which alternatives to consider Assess the performance of considered alternatives Select and apply a decision rule to make the final choice.

1) Determine the evaluative criteria to use for judging alternatives Consumers may employ a number of different evaluative criteria, including: price, brand name and country of origin, in making their decision. These criteria will usually vary in their relative importance or salience. Price may be a Dominant dimension in some decisions and yet rather unimportant in others. The salience of evaluative criteria depends on a host of factors: e.g. situational, product and individual factors. 2) Decide which alternatives to consider Consumers must determine the set of alternatives from which a choice will be made (that is, the consideration set). (3) Assess the performance of considered alternatives Consumers may also rely on their existing knowledge for judging how well alternatives Perform along the salient evaluative criteria. The cutoffs or ranges of acceptable values That consumers impose for evaluative criteria will strongly determine whether a given Alternative is viewed as acceptable. Study on Consumer Bead four

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(4) Select and apply a decision rule to make the final choice Finally, the strategies and procedures used for making the final choice are called decision rules. Decision rules vary considerably in their complexity. Another important distinction is between compensatory and no compensatory decision rules. Non-compensatory rules, such as lexicographic, elimination by aspects, and conjunctive do not permit product strengths to offset product weaknesses. In contrast compensatory rules do allow product weaknesses to be compensated by product strengths.

Non-compensatory rules: Lexicographic under this decision strategy, brands are compared on the most important attribute. If there is a tie, then the second the most important attribute is considered; whilst ties continue, then comparisons continue down the list of attributes in order of importance. Elimination by Aspects: Very similar to lexicographic procedure. As before, brands Are first evaluated on the most important attribute. Now, however the consumer Imposes 'cutoffs' e.g.' must be under 2'; 'must be at least nutritious'.

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If only one brand meets the cutoff on the most important attribute it is chosen. If several brands meet the cutoff, then the next most important

attribute is selected and the process continues until the tie is broken. Conjunctive: Cutoffs are also important for the conjunctive decision

procedure. Cutoffs are established for each salient attribute. Each brand is compared, on at a time Against this set of cutoffs. Processing by brand is required. If the brand meets the cutoffs For all attributes, then it is chosen. Failure to meet the cutoff for any attribute leads to In contrast compensatory rules do allow product weaknesses to be compensated by Product strengths. There are two types of compensatory rules: simple and weighted additive. Study onConsumer Behaviour
1.

Simple additive: here the consumer simply counts or adds the

numberoftimes each alternative is judged favorably in terms of the set of sailevaluativecriteri. The alternative having the largest number of positive attributes is chosen.
2.

Weighted additive: a more complex form of the compensatory rule. The

consumer engages in more refined judgments about the alternatives' performances simple whether it is favorable or unfavorable. The relative salience of relevant evaluative criteria is also incorporated into the decision rule. In essence, a weighted additive rule is equivalent to the multiattribute attitude models

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Phased decision strategies: These involve the sequential use of at least two different decision rules as a means of coping with a large number of choice alternatives. Phased strategies typically consist of a two-stage process. In the initial stage, one type of rule is used as a screening device to help narrow down the choice set to a more manageable number. A second decision rule is then applied to the remaining alternatives to make the final choice. Significance of Consumer Behaviour: The study of Consumer Behaviour is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It includes the study of

What they buy Why they buy it When they buy it Where they buy it How often they buy it How often they use it

Study on Consumer Behavior

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Consumer Behavior focuses on how and why consumers make decisions to buy goods and services. Consumer Behaviour research goes far beyond these facets of consumer behaviour and encompasses all of the behaviour that consumers display in searching for. Purchasing, Using, Evaluating and Disposing of products and services that they will satisfy their needs Definition of Consumer Behaviour: Consumer behaviour is defined as activities undertake when obtaining, consuming, and disposing of products and services. Simply stated, consumer behaviour has traditionally been thought of as the study of "Why people buy". With the premise that it becomes easier to develop strategies to influence consumers once a marketer knows why people buy certain products or brands. Consumer behaviour also can be defined as a field of study, focusing on consumer activities. As the study of consumer behaviour has evolved, so has its scope. Historically, the study of consumer behaviour focused on buyer behaviour or "Why people buy". More recently, researchers and practitioners have focused on Consumption analysis, why and how people consume in addition to why and how they buy. Analysis of consumption behaviour represents a broader conceptual framework than buyer behaviour does because it includes issues that arise after the purchase process occurs. There are several activities included in the definition of consumer behaviour - obtaining, consuming, and disposing.

Obtaining: It refers to the activities leading up to and including the

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Purchase or receipt of a product. Consuming: It refers to how, where, when and under what circumstances consumers use products. Disposing: It includes how consumers get rid of products and packaging. Slav on Consumer Behaviour

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CHAPTER-IV DATA ANALYSIS

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DATA ANALYSIS 1. A question was asked to the consumers whether they consume hot drinks or not and the following are the results. ATTRIBUTES RESPONDENTS Yes No 95 05 No. OF % OF RESPONDENT S 95% 05%

The above table depicts that 95% of the consumers consume hot drinks.

yes no

I. A question was asked to the consumers to know how often they consume ATTRIBUTES No. OF RESPONDENTS % OF RESPONDENT S

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Daily Twice in a week Once in a week Once in a month

32 43 13 07

34% 45% 14% 07%

The above table depicts that 45% of the consumers consume hot drink twice in a week and the major percentage of consumers consume hot drink daily.

chart 2

Daily Twice in a week Once in a week Once in a month

3. A question was asked to the consumers that about their favourite hot drink and the following are the results. ATTRIBUTES No. OF RESPONDENTS % OF RESPONDENT

39

Coca-Wine ThumsUp Sprite-Pepsi

14 34 33 03

S 15% 36% 35% 03%

7 up Dew Others

02 03 06

02% 03% 06%

The above table depicts that 36% of the Consumers consume ThumsUp, 35% of the Consumers consume Sprite, 15% of Consumers consume Coca-Wine.

chart 3

Coca-Cola ThumsUp Sprite-Pepsi 7 up Dew Others

4. A question was asked to the Consumers whether the product price is Affordable or not and the following are the results.

40

ATTRIBUTES No. OF RESPONDENTS Affordable 71 Costly Lesser Can't say 12 06 06

% OF RESPONDENTS 75% 13% 06% 06%

The above table depicts that 75% of respondents can afford, 13% of respondents feel the product is costly, 6% of the respondents feel the product is less costlier than it should be. 6% of the respondents cannot say about the product price.

Affordable Costly Lesser Can't say

5. A question was asked to the Consumers about (he reasons for preferring The drink and following are the results. ATTRIBU No. OF % OF

41

TES Taste

RESPONDENTS RESPONDENT ! 38 40% 09% 13% 09% 29%

Quenching 09 thirst Strong 1I Gas Content Others 09 28

The above table depicts that 40% of the Consumers consume the product preferring the Taste, 09% of the consumers consume the product to quench the thirst and 09% of the consumers consume the product for its gas content.

chart 5
Taste Quenching thirst Strong Gas Content Others

6. A question was asked to the consumers about the role of flavour in the Product promotion and following are the results.

42

ATTRIBUTES No. Efficient Very Efficient

OF % OF RKSPONDEINTS RESPONDENT 50 53% 11 35%

Neither Efficient Nor Inefficient Inefficient

07 05

07% 05%

The above table depicts that 53% of the consumers feel the flavour is efficient, 35% of the consumers feel the flavour is very efficient, 7% of the consumers feel the flavour is neither efficient nor inefficient, 5% of the consumers feel the flavour is inefficient.
chat 6

Efficient Very Efficient Neither Efficient Nor Inefficient Inefficient

7. A question was asked to the Consumers about their opinion on packaging of the product and the following are the results.

43

ATTRIBUT No. OF ES RESPONDENTS Very Good 14 Good 71

% OF RESPONDENTS 15% 74%

Neither Good Nor Bad 10 Bad 00

11% 00%

ch art 7

V ery G ood G ood Neither G ood Nor B ad B ad

8. A question was asked to the consumers about the impact on Product Promotion and following are the results.

44

ATTRIBUTES Very Efficient Efficient

No. OF RESPONDEN TS 24 51 13 07

% OF RESPONDENT S 25% 54% 14% 07%

Neither Efficient Nor Inefficient Inefficient

c at8 hr

V r E ic n ey f ie t f Eic n f ie t f Nith r Eic n e e f ie t f Nr I ef ie t o n fic n I ef ie t n fic n

45

9. A question was asked to the consumers about the product availability and the following are the results. ATTRIBUTES OF No. RESPONDENTS With in the reach 72 So far Difficult to get 13 10 % OF RESPONDENTS 75% 14% 13% -

chart 9

With in the reach So far Difficult to get

46

10. A question was asked to the consumers about the media, which shows impact on product promotion, and the following are the results. ATTRIBUTES No. OK RESPONDENTS T.V News Paper Hoarding Internet 60 05 14 16 % OF RESPONDENT* 63% 05% 14% 17%

47

chart 10

T.V News Paper Hoarding Internet

48

CHAPTER-V FINDINGS CONCLUSIONS & SUGGESTIONS

FINDINGS CONCLUSIONS & SUGGESTIONS

The study undertaken has highlighted certain facts. They are

1. The important factors that influence the purchase decisions for a hot

drink is the taste and flavour. 2. Besides the factors mentioned above the other important factors that Influence the purchase decisions were found to be advertising and Price.
3. Sales promotion program taken up by the company is also popular

Among the respondents. The product is very much popular for its easy

49

availability

6,2 SUGGESTIONS Suggestions have been made based on certain factors as highlighted by the study. 1. Efficient Promotional activities pertaining to consumers are to

be taken up. 2. 3. Company should improve the quality of packaging. Introduction of a new flavour is suggested to make the product

promotion more efficient. 4. It is suggested that the company should increase the usage of Internet for further Promotional activities.

50

QUESTIONNARE

STUDY ON CONSUMER BEHAVIOUR 1 ) Whether you consume hot drinks or not?

Yes

No

2) How often will you consume hot drinks? Daily Once in a week 3) What is your favorite hot drink?

Twice

in

week Once in a

Wine

Scotch

month
51

Rum Beer

Others 4) Whether the product price is Affordable or not?

Affordable

Costly Laser Can't say

5) What is the reasons for preferring the drink? thirst Content Others

Taste Quenching

Strong

Gas

6) What is the role of flavour in the Product promotion? Very Efficient Neither Efficient Nor Inefficient Efficient

Inefficient

52

7) Bad

What is your opinion on packaging of the product? Very Good Good Neither Good Nor Bad

8) What is the impact on Product Promotion? Very Efficient Neither Efficient Nor Inefficient Efficient Inefficient

9) What is the product product availability? With in the reach So far Difficult to get

10) What about the media, which shows impact on product promotion? T.V Hoarding Newspaper Internet

BIBLIOGRAPHY

1) 2)

CONSUMER BEHAVIOUR CONSUMER BEHAVIOUR

- Hawkins Best Coney. - Matin Khan.

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