Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
(READY-TO-EAT PRODUCT)
CHIKITSAK SAMUHAS
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.
(2013-2014)
Submitted
In Partial Fulfilment of the Requirements
For the Award of Degree of Bachelor of Management Studies
BY
APEKSHA PAWAR
CHIKITSAK SAMUHAS
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.
CHIKITSAK SAMUHAS
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
Course Co-ordinator
Principal
External Examiner
3
DECLARATION
Signature
APEKSHA PAWAR
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
OBJECTIVES
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.
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.
SR.N
O
CONTENT
INTRODUCTION
CONSUMER BEHAVIOUR
2.1 Meaning
2.2 Factors affecting Consumer behaviour
2.3 Buying process
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
METHODOLOGY
4.1 Description of study area
4.2 Sampling design and data collection
4.3 Analytical tools employed in the study
PAGE NO
RESULTS
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.
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.
SUMMARY AND POLICY IMPLICATIONS
1. INTRODUCTION
There is nobody in the world who is left out of the class of consumers. The
consumerhood continues till ones 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 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).
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. Consumers taste and preference were found to change rapidly, especially
in a dynamic environment.
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2 .
CONSUMER BEHAVIOUR
2.1 MEANING
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2.2
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
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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.
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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.
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:
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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
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.
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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:
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
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.
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.
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,
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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.
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.
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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.
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 consumers 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
25
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.
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
26
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.
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.
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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
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.
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
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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.
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.
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
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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.
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.
30
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
31
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
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.
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.
32
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 dealers suggestions, quality
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
33
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
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 childs insistence affects familys 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.
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.
35
4. METHODOLOGY
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
(NNP).
Age
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
37
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.
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.
I.
General Information
Family members
Number
Adult males
Adult females
Children
Total
II.
Specific Information
Biscuits
Chips
Reasons
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
Lack of awareness of products available in the
market
Dislike the product
High price
Low quality
Not available in the shops
Biscuits
Chips
39
Health conscious
Any other
Biscuits
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
Hippo
Diamond chips
Cheetos
Yes
No
Source
Television
Newspapers
Biscuits
Chips
40
Radio
Magazines
Friends/ relatives
Shopkeeper/retailer
Window display
Any other
6. Frequency of purchase
Frequency
Daily
Twice in a week
Once in a week
Fortnightly
Whenever needed
Biscuits
Chips
Biscuits
Chips
Biscuits
Chips
41
42
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.
5.3 Brand preference of the consumers.
5.4 Factors influencing brand preference.
5.5 Alternative purchase plans of the consumers.
43
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
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%).
General
information
Categories
Age
Sex
Male
Female
Illiterate
Primary school
High school
Education
No. of
respondents
64
110
18
8
78
122
4
20
Percentage
32.00
55.00
9.00
4.00
39.00
61.00
2.00
10.00
44
PUC
Degree
PG
Family type
Joint
Nuclear
Family size
Small (below 5)
Medium ( 5-7)
Large (more than 7)
Food habit
Vegetarian
Non - vegetarian
Low (< Rs. 8615.70)
Middle (Rs. 8615.70
13638.30)
High (> Rs. 13638.30)
Occupation
Student
House wife
Business
Government employee
Private
6
88
28
30.00
44.00
14.00
22
178
82
88
3
146
54
80
68
11.00
89.00
41.00
44.00
15.00
73.00
27.00
40.00
34.00
52
136
18
6
24
18
26.00
68.00
3.00
3.00
12.00
8.00
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.
46
Age group
AG1
AG2
AG3
AG4
Overall
(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
124
(62.00)
Sunfeast glucose
1
28 (64.00)
Good day
64
(100.00
108
(98.18)
16 (88.88)
4 (50.00)
192
(96.00)
Krack jack
64
106
16 (88.88)
6 (75.00)
192
47
(100.00
Hide & seek
(96.36)
(96.00)
Glucose
54 (84.37
84 (76.36
34 (53.12) 44 (40.00)
2 (25.
00)
16 (88.88) 8 (100.00)
160
(80.00)
162
(81.00)
8 (44.44)
86 (43.00)
112
(56.00)
2(25.0
0)
156
(78.00)
140
(70.00)
Parle Monaco
48(75.00)
92 (83.63) 14 (77.77)
40(62.50)
88 (80.00)
12 (66
.66)
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)
48
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)
Product
Overall
Biscuits
Chips
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)
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.
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.
Age group
Buyers
Non-buyers
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)
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)
Chips
51
Reasons
Products
Readily available
Biscuits
(n=200)
106 (53.00)
Chips
(n=184)
86 (46.73)
Tate
92 (46.00)
148 (80.43)
120 (60.00)
58 (31.52)
30 (15.00)
68 (36.95)
78 (39.00)
48 (26.08)
130 (65.00)
118 (64.13)
Satisfaction
86 (43.00)
96 (52.17)
46 (23.00)
72 (39.13)
2 (1.08)
Any other
52
Reasons
Products
Bicuits
(n=0)
-
Chips
(n=16)
-
8 (50.00)
High price
8 (50.00)
Low quality
10 (62.50)
Health conscious
16 (100.00)
Any other
53
Biscuits
Chips
Nature of
purchase
decision
Age group
AG1
(n=64)
AG2
(n=110)
AG3
(n=18)
AG4
(n=8)
Overall
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)
Nature of
purchase
decision
Impulsive
buying
(n=64)
(n=108)
(n=12)
(n=0)
Overall
44 (68.75)
80 (74.07)
12 (100.00)
136
(73.91)
20 (31.25)
28 (25.92)
48
(26.08)
Planned
purchase
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.
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 5050 (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
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)
56
Table 5.10. Preference for variety of chips among different age groups
Variety of chips
Age group
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)
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)
18
(28.12)
AG2
(n=108)
50
(46.29)
AG3
(n=12)
8
(66.66)
AG4
(n=0)
-
Overall
(n=184)
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)
Salted/ plain
57
Rankings
I
II
III
Mean score
69.99
69.62
61.14
IV
54.74
Tiger biscuits
53.79
Krack jack
VI
52.86
Britannia 50-50
Britannia little hearts
Parle Monaco
Glucose
Sunfeast snacky
Chocolate chip cookies
Britannia Time pass
Sunfeast glucose
VII
VIII
IX
X
XI
XII
XIII
XIV
48.76
45.61
43.68
43.41
42.13
38.95
38.88
37.44
Rankings
Mean score
Lays
71.55
Kurkure
II
59.67
Bingo
III
51.03
Balaji chips
IV
49.90
46.25
Cheetos
VI
42.00
Diamond chips
VII
39.90
Hippo
VIII
38.68
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).
59
Biscuits
Ranking
Chips
Reasonable price
III
Mean
score
64.60
Ranking
III
Mean
score
62.46
Taste
II
74.79
80.35
Quality
75.74
II
71.22
Quantity
IV
59.08
IV
59.92
Brand image
VI
54.73
54.57
Availability
Advertisements
V
VII
56.70
50.76
VI
IX
54.38
45.72
Packaging design
Friends
Labeling
Offers
Freshness
Retailers influence
Long shelf-life of the
products
Availability of range
products
X
XII
XIII
XIV
VII
XV
IX
42.65
37.62
32.76
32.13
52.30
27.91
48.89
X
XI
XIII
XIV
VII
XV
VIII
42.18
41.42
36.14
33.04
50.46
30.32
47.32
XI
39.34
XIII
40.42
Products
Alternative purchase
Biscuits
Chips
plans
(n=200)
(n=184)
Go to other shop
160
112
(80.00)
(60.86)
54
68
purchase
(27.00)
(36.95)
44
74
(22.00)
(40.21)
52
44
required brand
(26.00)
(23.91)
6. DISCUSSION
The results of the investigation presented in the previous chapter are discussed in this
chapter under the following heads.
6.1 Awareness of consumers towards branded ready-to-eat food products.
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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.
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.
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.
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.
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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).
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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. Consumers 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.
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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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.,
Garretts ranking technique etc.
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
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%).
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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
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
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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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