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INTRODUCTION:
Today’s customers are harder to please. They are more smarts, more prices conscious,
and more demanding, less forgiving and approached by more competitors with equal or better
offers. The challenge for every producer of consumer goods is not to produce satisfied
companies are aiming for high satisfaction because consumers who are just satisfied still find
it easy to switch when a better offer comes along. Those who are highly satisfied are much
less ready to switch. High satisfaction creates on emotional bond with the brand not just an
Some of today’s most successful companies are raising expectations and delivering
performance to match to provide total customer satisfaction. Loyal customer account for a
submitted amount of company profits and the company cannot afford to loss them at any cost.
In the inverted pyramid model marketers will follow the dictates of buyers. Therefore
marketing managers should understand the change of customer tastes from time to time. It is
the customer who determines the various product features, which will benefit him.
characterized by fast changes. To survive in the market, a firm has to be constantly innovating
and understand the latest consumer trends and tastes. Consumer behavior provides invaluable
clues and guidelines to marketers on new technological frontiers, which they should explore.
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Customer behavior is a process, and purchase forms one part of this process. There are
various endogenous psychological and exogenous environmental factors which influence this
process. All these factors and the type of influence which they exert on an individual’s
consumption behavior can be understood and analyzed. Moreover, some of these factors can
be further influence by specific elements of the marketing strategy, so that the consumer
To the extent that the marketer can understand and manipulate the influencing
factors, they can predict the behavior of consumers. Though prediction can never be
absolutely accurate, it certainly reduces the risk associated with different marketing strategies.
Thus, the importance of consumer behavior lies in the fact that behavior can be understood
and influenced to ensure a positive purchase decision. The marketing manager’s interest lies
exactly here i.e. to ensure that his marketing strategy results in purchase of the product.
BUYER BEHAVIOUR:
The wealth of products and services produced in a country make our economy strong.
Almost all the products, which are available to consumers, have a number of alternative
supplies i.e. substitute products are available to consumers, who make a decision to buy
products. Therefore, a seller, most of his time, seeks buyers and tries to please them.
A consumer makes a purchase of a particular product or a particular brand and this can
be termed “product buying motives”. And the reason behind the purchase from a particular
More or less, after the Second World War, the seller markets have disappeared and buyers
markets have come up. It means that the manufacturer’s has switched over from the products
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to the consumers and specially concentrated on the consumer behavior. The manufacturer
A modern marketer first, tries to understand the consumers and their response, and
then he studies the basic characteristics of their Behaviour. It can be said that consumer is the
pivot, around which the whole marketing system revolves. The selection or choice of products
or services by consumers greatly determines the fate of the producters. As such, the marketer
must know the consumers, more and more, in order to manufacture the products, which give
The marketing programmes and policies depend upon the consumer behaviours, one
will naturally invite failure. A careful study of consumer behaviour will facilitate the marketer
“The process whereby individuals decide whether, what, when ,how and from whom
to purchase goods and services can be terned as the customer’s or the buyer’s
behaviour”.
The buyer may take a decision whether to save or spend the money. When he decides
to spend, then there are many problems as to what to purchase, because needs are numerous,
which leads to ranking the needs in terms of priority. Then, the problem are consumption
BUYING MOTIVES:
Motives refer to thought, urge, strong feelings, emotions, drive etc. They make a buyer
to react in the form of a decision. Motivation explains the behaviour of a buyer. Motives
induce a consumer to purchase a particular product. The motives may be generally controlled
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by economic, social, psychological influences etc. When a consumer buys a product, his aims
are desire for security, rest, comfort, curiosity, self – preservation, fashion etc.
People purchase products urgedby mental and economic forces, which create a desire;
and this desire is satisfied by the articles displayed for sale. A motive is an inner urge that
prompts on to action; it is not a mere desire. The stimulated desire is called a motive.
Knowledge of the buying motives of consumers is essential for a marketer. The changes in the
market are brought by the consumers. The needs and desire of the consumers and their buying
behaviour greatly depend upon their income, social status, psychology etc. The consumer and
customer are two different terms. Customer is not always the consumer and consumer is not
Customers, like middlemen, agent etc. may or may not purchase products for their
own use, where as consumers get the products for their own consumption. “Buyer behaviour
is all psychological, social and physical behaviour of potential consumers, as they evaluate,
purchase, consume, and tell others about the product and services.
The study of consumer behaviour is the study of how individuals make decisions to
spend thrie available resources (time, money, effort) on consumption – related items. It
includes the study of what they buy, why they buy it, where they buy it, how often they buy it,
The study focuses on how and why consumers make decisions to buy goods and
services. The study of consumer behaviour enables marketers to understand and predict
consumer behaviour in the marketplace; it also promotes understanding of the role that
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NEED FOR THE STUDY:
Consumer is the central point and all the marketing activities revolve around him.
Manufacturer produces what the customer wants. As the customer’s behaviour differs from
person the producer must understand it. Customer purchase an article, as consequences of
certain motives and the articles offeres for purchase should satisfy economic forces creating
Thus producer should identify the motives which prompt them to purchase so that he
can offer a complete article satisfying their needs. Thus, it is buying motive that prompts the
purchaser to purchase. Such buying motives may be fear desire ride, fashion, possession, sex
marketer is to study and analyze the consumers’ behaviour in order to sell and improve the
product. In the competitive business world, many brands of tea are produced and marketed by
a manufactures. The decision whether to buy or not depends based consumers motives.
Modern market is a consumer oriented and now consumers are the decisive force. The
reasons have inspired the researcher to make out a study about the consumers behavior and
their preference to particular tea brand. The problem undertaken for the study is consumer
preference and behavior towards using tea. For this purpose, consumers’ preferences over tea
On what basis the consumers prefers his brands and which influences him to buy such
a brand and how his buying motive is created, are analyzed to predict the exact buying
behaviour of the consumers towards using tea brand. The area chosen for the study is
Nagapattinam town.
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This particular area is chosen because many of the low class, middle and upper class
families live here. Tea is one of the necessary products used by all people. The researcher is
interested is interested to know the brand, which is widely used by the consumers is the study
Primary Objectives:
Secondary Objectives:
To identify the factors responsible for the preference of a particular brand of tea.
To study the extent to which consumers preference varies with reference to income,
To know the opinion of the consumers about the price of the tea brand.
To offer suitable suggestions to improve the tea market and consumers interest.
RESEARCH METHODOLOGY:
Research Design:
The design of the research is explorative in nature as it tries to identify the preference
of the consumers to tea brand in Nagapattinam town. Both primary secondary data have been
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Source of Data:
Primary data, the opinion of the consumers of tea brand in Nagapattinam town have
been collected directly from a group of sample consumers using a structural interview
schedule prepared specially for that purpose. Secondary data have been collected from related
Presentation of Data:
The Data thus collected from the opinion of the consumers were tabulated, analyzed
and interpreted with the help of tables, diagrams and charts, Bar diagrams and pie diagrams
All the consumers who consume tea in the study area are the population of the study.
Sample size:
Sampling Method:
The sample units are chosen primarily on the basis of the convenience to the investigation.
The data, thus collected have been properly classified tabulated and interpreted, to
have a clear- cut outlook. The statistical tools like percentage, diagrams, graphs, chi- square
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test and ANOVA are employed to analyze the data and testing of hypotheses in an effective
manner.
Hypothesis Used:
There is no significant difference in the source of information that influenced the male
There is no significant difference between the opinions of the respondents about the
price of the tea product and different income levels of the respondents.
The study is confined to Nagapattinam town limit only. Therefore, the findings of the
The study is restricted to the opinion of the consumers only. Opinion of the dealers
The results of the study cannot be generalized to other areas due to demographical
differences.
The study was taken in general point of view of the consumers preference to different
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The sample size is 150 only, which may not be sufficient to conclude the accurate
response.
The report is purely based on respondents’ data. There may be biased information.
CHAPTER SCHEME:
The whole study has been organized and presented in five chapters.
second chapter.
Fourth chapter is concerned with analysis of consumers’ preference to tea brand in the
study area.
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CHAPTER-II
INTRODUCTION:
varying levels. It is the most widely consumed beverage with a per capita worldwide
consumption of approximately 0.12 liter per year. Tea is manufactured in three basic forms.
Green tea is prepared in such a way as to preclude the oxidation of green leaf polyphenols.
During black tea production oxidation is promoted so that most of these substances are
oxidized. Oolong tea is a partially oxidized product. Of the approximately 2.5 million metric
tons of dried tea manufactured, only 20 per cent is green tea and less than 2 percent is Oolong
tea.
Green tea is consumed primarily in china, Japan and a few countries in North Africa
and the Middle East. Fresh tealeaf is unusually rich in flavanol group of polyphenols known
as catechin which may constitute up to 30 percent of the dry leaf weight. Other polyphenols
include flavanols and their glycosides, and depsides such as chlorogenic acid, coumarylquinic
acid, and one unique to tea, theogallin (3-galloylquinic acid). Caffeine is present at an average
level of 3% along with very small amounts of the other common methylxanthines,
theobromine and theophylline. The amino acid theanine (5-N-ethylglutamine) is also unique
to tea. Tea accumulates aluminum and manganese. In addition to the normal complement of
plant cell enzymes, tealeaf contains an active polyphenol oxidase which catalyzes the
catechins when the leaf cell structure is disrupted during tea manufacture.
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The various quinines produced by the enzymatic oxidations undergo condensation
epitheaflavic acids, and thearubnigens, which impart the characteristic tasts and color
properties of black tea. Thearubigens readily form complexes with caffeine. There is no tannic
acid in tea.
Thearubigens constitute the largest mass of the extractable matter in black tea but their
composition is not well known. Proanthocyanidins make up part of the complex. Tea
peroxides may be involved in their generation. The catechin quinines also inititate the
information of many of the hundreds of volatile compounds found in the black tea aroma
fraction. Green tea composition is very similar to that of the fresh leaf expect for a few
enzymatically catalyzed changes which occur extremely rapidly following plucking. New
volatile substances are produced during the drying stage. Oolong tea is intermediate in
VARIETIES OF TEA:
The variations vary according to the soil, climates and differences in processing.
Nearly all tea is grown in the East but there are some tea plantation in Russia, Kenya, and
Argentina, South Africa and even Hawaii and Charleston, South Carolina. All tea has some
Caffeine, the darker the tea, the more caffeine, however rooibos and herbals are caffeine free.
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Ginseng tea is good for an energy boost.
TYPES OF TEA:
Block Teas are fermented, left in a cool, dark and damp place for a time then heated to
White Teas are picked only two days in a year and are not processed but dried and
withered in the sun. It is very light in color, mild in flavor and contains minimal caffeine.
Rooibos is an herbal with needle-like leaves that come from the Red Bush which is
Herbal or Tisanes are not actually teas, but are concoctions of peels, flowers, leaves,
A study published indicated that tea wards off coronary artery disease, especially in
women. Dutch researchers found that those who drank one or two cups of tea daily lowered
their risk of severe aortic arteriosclerosis-a narrowing of the arteries caused by buildup of flat
and other substances on the inner walls – by 46 percent. At four cups a day the risk dropped
by 69 percent. Tea’s protective effect may come from flavanoids, which act as antioxidants,
said the researchers, from Erasumus University Medical School in Rotterdam. The study
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New Research shows that the answer depends on the way tea is decaffeinated. If
caffeine is removed with a compound called ethyl acetate, only about 30 percent of the tea’s
headling polyphenols (believed to fight cancer and heart disease) remain. But if caffeine is
removed using a more expensive water- and carbon-dioxide process, sometimes called
Additional research is now going on about cancer fighting properties in green tea. The
have found that green tea may prevent cancer cells from enlarging or dividing. Right now
what they have found is that blood levels of polyphenols must be maintained at a constant
level which would require one to drink a cup of green tea every hour. On the horizon may be
Tea industry is an important agro-based industry in india and is about 160 years old. It
is labour intensive industry. It is already carrying a total of 2 million workers on its pay roll
together with their families and at least 10 million people are directly depending on the
industry for their masses. 50% of are women. Women are mainly engaged in on plucking the
levels. An area of land under tea provides 240-man day’s employment, while other industry in
this field provides 38-40 man-days. This industry supports the plywood, fertilizer, transport
industries.
through its 1269 tea industries situated in North and South India. South india from its 208 tea
factories produced annually 178 million Kg of tea in 1993 and occupies an important place in
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TEA INDUSTRY IN TAMIL NADU:
Tamil Nadu tea industries are concerntrated in the hill areas of the state. Such as
Nilgiris, Madurai, Tirunelveli and Kanyakumari. It cover 75,000 hectare or 1.25 percent of
the cultivated land in this state and employs crores lakhs people. The total investment of the
industry inrupee is more tha 120 crores and annual produce is valued at more than Rupees 48
crores. Tamil Nadu is the third largest tea producing state in India.
The future prospects of tea industry depend upon the increasing are under cultivation,
replanting of old bushes. Large investment is made into tea industry to retain and improve
PRODUCTION IN INDIA:
India is the world’s largest producer of tea (Mostly Black Tea). More than 60 percent
of tea exported from India was shopped to the United Kingdom. Tea is growing in many
regions of India. South East Asia is considered the original home for tea. But tea plantations
are concentrated in the Assam Valley and Cochar, Darjeeling and Tera in west Bengal. In
The major tea area of the country is concentrated on Assam. West Bengal, Tamil Nadu
and Kerala. The other areas where tea is grown to a small extent are Tripura, Himachal
Pradesh, Manipur, Nagaland, Orissa and sikkam also have taken up tea growing.
The per hectare yiels rate as well as the quality of tea vary from region to region and even
garden in the region due to the climatic factors and agricultural practices. Good garden
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management is also management is also an important contributory factor to an increased yield
rate.
MARKETING OF TEA:
The demand for tea in the internal market is more than export market. There is a great
potential in the marketing of tea in the Indian marketing. At present, the tea market is flooded
by numerous brands of packaged tea. Among the branded tea, Brooke Bond Lipton, Tata tea
stand head and shoulders above the rest with a total share of more than two-third of the total
tea market
. The Brooke Bond is a leading packaged tea marketer in india. The company sales
head office is located at Calcutta. Further, it has more number of regional and branch offices
throughout India. The company have five factories for blending and packing, their tea at
Calcutta, Nagpur, Jamnagar, Hyderabad, Ghatkesar, Coimbatore and Agra. The company’s
share of the total sales of tea in india was about 65%. They also export tea the U.A.E.,U.K.etc.
The Brooke Bond and Lipton tea companies market their products decades. These
companies dealt their product in various brand names, viz., Three Roses, Top Star, Taj Mahal
etc., Tata tea, the second largest plantation in India, has made an investment of Rs.25 crores at
Munar to set up 3 million lbs per annum capacity instant tea plant. In the seventies Tata
identified tea as a major growth area with aggressive production and marketing.
Tata tea has been successfully increasing its market share; Today estimated at around
20 percent consequently the dominance of Hindustan Lever has been being eroded, its market
share falling from around 75 percent to around 40 percent over the last 15 years.
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Tata tea has evolved in this period a the largest integrated tea company in the world,
owing 55 tea estates, in Assam, Kerala, Tamil Nadu and West Bengal. The operation of tea
covers all areas from the tea employs around 6000 employees and has a turnover of around
Rs.900 crores.
The Tata Tea company with the strong brand preferencein differenent geographical
location e.g., Kannan Devan highly popular in Kerala and Tamil Nadu emerging as country’s
It is fresh plantation packaged tea sourced from Tata estates in South India. Gemeni
dust is extremely popular in Andrash Pradesh and Tamil Nadu has a strong share of the rural
market of south India. Chakra Gold, a premium brand, which emerged among the fastest
growing brands of packaged tea. Recently Tata tea launched the Agni Brand. Tata tea has
been successfully taking on the Hindlever with strong established brands like Taj Mahal, 3
The brand building exercise obviously intended to take on the different brands one- to-
one. Some other bid and small tea companies in India have also started re organizing their
market.
They are going for retail marketing in the domestic market, while the demand for losse
or bulk tea is growing at the rate of 3 percent, the demand for packet or branded tea is
In India tea market particularly with regarding to Tamil Nadu, new and established
companies are introducing a number of new brands of tea every year. The companies are
marketing their product with some product differentiation in product meet the need variations
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The retailers of this area get tea product in any of three ways namely first directly from the
whole sale agencies, secondly from the sub dealers who purchase product from the whole
agencies, the retailers in turn sell tea product to household consumers and institutional buyers
namely tea stalls. The retailers include grocery shops, general merchants and petty shops.
They sell the tea product with small amount of margin in each package to the consumers of
the area.
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CHAPTER-III
1.INTRODUCTION:
should serve as the focal point. As such, it is both relevant and important for any business to
know its consumers and understand his/her buying behavior. It is also important to understand
When a person gets his pay packet at the beginning of each month he sits down
with his wife and prepares the family budget after carefully apportioning amounts to different
items of expenditure.
However, after a trip to the market with his family, he finds that the whole ‘exercise
in rationality’ (budget) is futile as the purchases made by him are not compatible with the
budget items. On recapitulation and analysis, he finds that it was his wife, son, daughter and
even he himself who were responsible for this deviation. The deviation is attributed to the
arousal of new needs on account of new products displayed, better packages, better credit
facilities, charming saleswomen/men ship and also because a rich neighbor is using some
particular article.
While making purchases, the son a has friend’s dress in his mind, the daughter has her
class teachers’ new lipstick in her mind, the wife is thinking of a particular sari shed had seen
at a party, and he himself was overawed by his neighbor’s choices. This whole behavior of a
person(s) while making purchases may be termed as consumer behaviour. It has been defined
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as “the process where by individuals decide whether, what, when where, how and from whom
makes a purchase move. This deliberation relates to many variables and is aimed at solving
consumption problems. Among these problems, the first and foremost is to decide whether to
Once a decision is taken to spend money, the second problems is to decide what t buy
because the needs are multiple and resources scarce. Therefore, needs are to be ranked in
terms of priority. The subsequent consumption problems relate to the place from where to
buy, the mode of purchase large/small quantites, cash/credit purchase and the like- and, last,
the seller/shop from whom to buy. This whole consumption behaviour consists of both
The physical activities involve visiting a shop, examining a product, selecting products
or eating/ drinking outside, that is, the actual act of consumption. Mental activites, on the
other hand, involve deliberations with in and forming of attitudes, perceiving communication
consumption behaviour relates to the mass or aggregate of individual (macro behaviour). “The
It includes all the efforts to describe and explain one or more acts of choice either at a
given time or over a period of time. In contrast the study of consumption behaviour is
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concerned with the description and explanation of the behaviour of aggregates of consumers
that of consumer behavior and buyer behavior and includes activities of both ultimate and
industrial consumers.
The former is the end-user of the product/service before it is consumed by the end-
user. When behaviour of both the kinds of buyers is under reference, the term used to denote
it is ‘buyer behaviour’,when the behavior of only end users under reference, the term’
an individual seeks satisfaction. It becomes a buying motive when the individual seeks
Motive is thus an inner urge that moves or prompts a person to some action. Motive is
an effectual desire that prompts one to a defined action. Customers purchase any goods of
certain mental and economic forces that create desires or the articles offered for purchase can
satisfy wants that they know. In the words of Burleson and Steiner, “A motive is the inner
state that energizes, activates or moves and that directs or channels behavior toward goals.
group reaction expressed in the form of buying patterns. There are three main approaches to
the explanation of buyer behaviour (i) the economic (ii) the psychological and (iii) the
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structural. Buying behaviour may be viewed as an orderly process whereby the individual
interacts with his or her environment for the purpose of making market place decisions on
The individual specific behaviour in the market place is affected by internal factors
influences. Such as the family, social groups, cultural, economic and business influences.
Economic theory describes man as a rational buyer who has perfect information about
the market and uses it to obtain maximum value for the buying effort and money. Price is the
strongest motivation. He compares all competing sellers’ offerings; he buys the one with the
lowest price.
Numerous economic factors influence consumers in the ways they spend their incomes
for personal consumption. Purchasing power of the consumer is used to control production
into consumption people who do not spend all of their income. Disposable personal income is
what proportion of the additional income the consumers might spend and what proportion
they might save. Marketing analysis is more interest in examining the effect of changes in
saving. In inflationary periods spending rises faster than income. The concepts of marginal
propensity to consume and the same to take into account the rates of change and that is why
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In the same way the size of family income is also important as they affect spending
and saving patterns. The incomes that consumers expect to receive in future have
income. In the same way consumers’ liquid assets also affect buying plans.
Cash and other assets readily convertible into cash such as balance in saving accounts,
shares, etc., influence our purchases. Retired and unemployed individuals may be liquid assets
to buy every day necessities. Other consumers may use liquid assets to meet major medical
Consumer Credit:
Credit, which allows one to buy now and pay later, enables a consumer to command more
The quick response of durable goods expenditure to income changes traces to the wide use of
Consumers are more willing to increase installment credit in financing such purchases.
Consumers are more willing to increase installment debt when income is rising and are more
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Buyer’s Behavior – Insights from Psychology:
Studies of learning and the related areas of recongnition recall and habitual response
They help in answering question like how do consumer learn about products offered
for sale? By what process do they develop buying and consuming habits? Buyer is influenced
Repetition:
Motivation:
The individual motivation is the most important factor involved in indicating and
governing his or her activities. Activity in harmony with one’s motives both satisfying and
Conditioning:
developed. Through long advertising efforts and continued exposure of a particular symbol
the company succeeds in conditioning the people to recognize the bottle or packet of its
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The conditioned response establishes only a temporary rather a permanent behaviour
pattern and if it is not frequently enforces by the original stimulus the conditioned response
eventually disappears. We have to remember that all persons do not respond equally well to
washing machine by using them at the customer place instead of describing their capacity and
clearing power in a store. The housewife is of cleaning own carpets and garments etc. This
sales manager should relate the products to the customer’s needs and interests.
learning. Forgetting or negative retention develops with the deterioration of these impressions.
psychologist has not yet agreed on a single list of basic needs. According to Maslow, an
individual normally tries to satisfy the most basic needs first and then he proceeds to the next
ones. He has mentioned seven basic needs. These are: (i) Psychological needs, (ii) Safety
needs, (iii) Belongingness and love needs, (iv) Esteem needs (v) Need for self- actualization
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The concept of basic needs and the theory that the individuals normally try to satisfy
creatures are strongly influenced in their buying by the social and cultural environments in
which they live. The person with whom an individual regularly associates exerts strong
influenced on his or her behavior. Reference group including family and peer groups, social
Knowledge of reference groups and their influences make it easier to explain why
consumers behave in particular ways and more important to marketers to predict their
behavior.
The above factors affect the consumer behavior. Now the question is which group of
factors economic or psychological affects the consumer behavior most. There are conflicting
views in this regard. Some think that economic factors are more important. Actually both the
The diffusion process the social process of spreading information about new products
consumer behavior reveal the most users to not adopt an innovation simultaneously. Diffusion
process in a slow business and the entire process may take several years. In the initial phases
of market introduction of new products effort and money may be wasted if the marketers try
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Classification of Adopter Groups from the marketers point of view the society may be
classified into five groups: (i) Innovators, (ii) Early adopters, (iii) Early Majority, (iv) Late
Majority and (v) Laggards. The Model of diffusion process is visualized as a curve
innovator and early adopter groups,34 percent each in the early and late majority groups and
16 percent in the laggard group. It is important target market segments at each stage in the
diffusion process.
Innovators – They are usually the youngest and have the highest social status and wealth.
Early Adoper – They are generally influential,i.e., opinion leaders. They enjoy high status
Early Majority – They are the most deliberate. They will not consider buying a new product
Late Majority – They group includes persons who have below average income and social
Laggards – They have still lower incomes and social status. They are the last to adopt new
products by the time they buy a new product. The earlier groups are often trying something
newer.
Sociologists explain the so-called status symbols by holding that people express their
possession etc. Most people are concerned about their social status.
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Different products vary in their status symbol value and these values may change
from time to time. The ‘Baggi’ is horse-driven vehicle was once the major status symbol.
Then came the automobile, which now has been replaced, bby the house and its furnishings.
The status symbol concept is a valuable one for the marketer for when it recognizes
that is selling a symbol as well as a product it views its product more completely. The
marketer should not only how the product satisfies certain needs but also how it fits into
modern culture.
Reference Groups:
The people with whom an individual regularly associates extent strong influences on
his behavior. He or she must comfort to their standards of behavior to gain group acceptance.
Reference group include family and peer groups and religious and fraternal organization. The
most influential primary group is, of course, the Family- Peer groups composed of individuals
who spend considerable time together and are of fairly common age and social background.
Other groups with varying degress of socializinf influence and religious, educational, political
Any of these group may be classified as peer groups if they are sufficiently
homogenous. The peer groups have the greast influence on the individual as a consumer
because the group’s general interests and made of life are most nearly like his or her own.
Knowledge of reference group and other influences makes it easier to explain why
consumers behave in a particular way. It keeps the marketer to predict their behavior. A
young executive, for example, may dress and act differently when in the job and in contact
with his business associates, but off the job, he may behave and dress quite differently.
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Influential:
leaders are found at all levels of society. For examples, an unmarried girl in the college may
be a fashion leader. An older woman may be her group’s cooking expert because of her expert
knowledge in cooking; and a man, his group’s political leader because of whom he is known
not only within the group but also outside it. This influential tries or uses a product; his or her
followers are proved to the same. Marketers, therefore, often their promotional efforts to
reach influential and through them reach their followers by word of mouth or other subtle
buying behavior are directed towards satisfying certain basic needs. All individuals do not act
exactly in the same way in their efforts to fulfill their needs. These actions not only depend
upon the nature of the basic needs but also they are modified by the individual’s particular
environmental and social backgrounds. Whatever action the individual takes is directed
According to Maslow an individual normally tries to satisfy the most need first. He or
she is then free to devote his or her efforts to the next one show on the list. Each categories of
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i. Physiological Needs:
These needs are to satisfy hunger, thirst, sleep etc., these are the most basic needs and
until they are satisfied other needs are of on importance. Food, Cloth, and Shelter and most
In modern society these needs are more often for economic and social security rather
The needs for affectionate relations with individuals with individuals and a place in
People need self-esteem, a high evaluation of self and the esteem of other in our
society. Fulfillment of these needs provides a feeling of self-confident and usefulness and
This is the desire to achieve the maximum of one’s capabilities. Although it may be
present in every person, its fulfillment depends upon prior fulfillment of the more basic needs.
These needs refer to the process of searching the meaning of the things around us.
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vii. Aesthetic Needs:
These may not appear to the present among many individuals because of this failure to
satisfy more basic needs, but among some the needs for beauty is very strong.
a person satisfies his needs in that order. Unless physiological needs of a person are satisfied,
manager, therefore, to be successful in his marketing efforts should understand the needs,
types.
Inherent buying motives are those which arise from the basic needs of the consumers
such as hunger, sex, comfort and safety. In order to satisfy these motives, a consumer has to
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make his best efforts. If these motives remain unsatisfied, he feels mental tension. Learned
motives, on the other hand, are those, which a customer acquires, or learn from the
These motives are social status, social acceptance, economic, social and political
achievement, fear and security. These motives are much affected by education and social
environment of the customers. As far as marketing is concerned, both types of motives play
very important role. These motives direct the marketing activities of the concerned. Out of
these two, learned motives are stronger and more useful and urgent and they are more in
number. In satisfying the learned motives, customers even do not care for the price of the
product.
Therefore, a successful manager must understand both these types of motives and
must create demand of the product by educating them of the merits of his product. Therefore,
a successful, manager must understand both these types of motives and must create demand of
Prof.M.T.Copeland has classified the buying motives in two types emotional and
Rational. Emotional buying motives are those which are affected by the feeling of the heart.
In such motives, heart dominates over head and mind. In satisfying these needs, sometimes
man is not rational . these motives are hunger, thirst, ego, prestige, comfort, pleasure, love,
and affection etc., Rational buying motives are those motives where a consumer is rational in
Here head and mind are dominant over heart. Before making any purchase, he satisfies
himself with the price, quality, durability, reliability and services and then decides to purchase
31
the goods, which are useful to him and are available at reasonable price. He takes more time
in making rational purchases. Both emotional and rational emotional or rational should be
inspired in selling his keeping the merit of the product in mind. The advertising progeamme
The purchaser or consumer takes his buying decision, for some commodities
immediately without much consideration such as items of daily use while for some other
commodities mainly luxury or durable items, he thinks much before taking a decision to
purchase it. Sometimes, he consults others. Generally, the purchaser passes through five
distinct stages in taking a decision for purchaseing a particular commodity. These stages are:
(i) Need Arousal (ii) Information search, (iii) Evaluation Behavior (iv) Purchase decision, and
A. Need Arousal:
The buying process starts with need arousal. A need can be activated through internal
or external stimuli. The basic needs of a common man arise to a threshold level and become a
drive and he knows from his previous experience how to satisfy those needs like hunger,
B.Information Search:
After need arousal, the consumer tries to solve it and gathers the sources and
information about the product depending upon the intensity of need; it produces two states in
the individuals. The first state is called heightened attention when the consumer becomes
32
C.Evaluation Behavior:
Having collected the information, the consumers clarify and evaluate the alternative. There is,
unfortunately no simple and single evaluation process used by all consumers or even by one
consumer in all buying situations. The most current process of evaluation is to judge the
D.Purchase Decision:
Evaluation behavior leads the consumer to form a ranked set of preferences, normally a
consumers buys the article, and he or she likes most. But there are therr important
considerations for taking and buying decision. The marketer must consider these factors and
should try to provoke the felling of risk in the consumer and attempt to provide information
E.Post-Purchase Feelings:
After buying and trying the product, the consumer will feel some level of satisfaction or
dissatisfaction and level of satisfaction depends very much on the expectation and the
product’s perceived performance. If the product matches up to his expectations, the consumer
dissatisfied. Consumers form their expectations on the basis of messages and claims sent out
by the seller and other communications sources. If seller makes exaggerated claims, the
So, the smart seller must claims about the performance of the product that are congruent with
its quality so its quality so that the consumer would feel satisfied.
33
PARTICIPANTS IN THE BUYING PROCESS:
There are following five different roles that persons can play in a buying decision.
i.Initiator:
The initiator is a person, who first suggests or thins of the idea of buying the particular
product. For example, publisher of a book on marketing management initiates the professor to
task the students of his class to purchase the book. Here publisher is the initiator, the first
ii.Influencer:
Influencer is a person who explicitly has some influence on the final buying decision
of other. Students are influenced by the advice of he professor while taking a decision to
iii.Decider:
The decider is a person who ultimately determines any part of whole of the buying
decision i.e., Whether to buy what to buy, how to buy, when to buy or where to buy. Children
are the deciders for buying the toys, house lady for kitchen provisions, and head of the family
iv. Buyer:
The buyer is the person who actually purchases. Buyer may be the decider or ha may
be some other person. Children (deciders) are the deciders for purchasing the toys, but the
34
v. User:
User is the person who actually uses or consumer the services or products. The
marketer’s task is to study the buying process and its main participants and their role in the
buying process. He should initiate all of them to make the purchases of his product at
35
CHAPTER-IV
1. INTRODUCTION:
stimuli – product, price, palce and promotion and other stimuli i.e, buyer’s environment –
economic, technological, political and cultural. The marketer studies the relationship between
marketing stimuli and consumer response. The buyer is considered as a block box, because
The buying decision depends on his attitude, preference, feeling etc. Satisfaction is a
perceived performance in relation to his or her expectations. Many companies are aiming for
high satisfaction because customers who are just satisfied are much less ready to switch. High
satisfaction creates on emotional bond with the brand not just an emotional preference. The
Some of today’s most successful companies are raising expectations and delivering
performance to match to provide total customer satisfaction. Loyal customer account for a
substantial amount of company profits and the company cannot afford to loss them at any
cost. Factors influencing the consumer behavior are internal – needs, motives, perception and
attitude as well as external – family, social groups, culture, economic, business influences etc.
expressed in the form of buying pattern. Mainly, they buyer is subjected to many influences
before the actual purchase. Aroused needs are forces which activate goal – oriented behaviour
36
to bring want satisfaction. Therefore in this study an attempt is made to analyze the consumer
The sex of the respondents has direct bearing on the consumption of tea. Therefore sex
Table – 1
No. of
SL.NO SEX Percentage
Respondents
1 Male 93 62
2 Female 57 38
Table – 1 shows the sex wise classification of the respondents. Out of 150 sample
female. It implies that the male respondents who consume tea out number female respondents.
37
Figure – 1
150
100
50 No. of Respondents
0 Percentage Percentage
No. of Respondents
Male
Female
Total
1
2
The respondents are classified according to their age, because age is considered as an
important factor that influences their preference to a particular product. The age wise
38
Table – 2
2 20-30 31 20.67
3 30-40 43 28.67
4 40-50 28 18.67
Table – 2 explains the age wise classification of the respondents. It clearly shows out
of 150 respondents 28 percent of the respondents belong to the age group of 30-40 years.
Nearly 23 percent of the respondents fall under the age group of more than 40 years. The
respondents 20-30 years of age constitute nearly 21 percent of the total respondent. About 9
percent of the respondents belong to the age group of less than 20 years.
39
Figure – 2
150
100
50
0
No. of Respondents
Less than 20
20-30
30-40
40-50
More than 50
Percentage
1 2 3 4 Total
5
Education plays important role in molding the human wants and desires. The
behavior and inner urge of the individual are also determined by education. The educated
person can compare the cost and benefits, while making his buying decision. Therefore,
educational status of the respondents is also considered in this study. The educational status of
40
Table – 3
No.of
Sl.No Educational status Percentage
Respondents
1 Illiterate 13 8.67
4 Graduation 44 29.33
5 Technical 25 16.67
Table- 3 reveals that out 150 sample respondents nearly 31 percent of the respondents studied
up to high school level. The graduates come in second place; nearly 29 percent of the
education and 14 percent studied up to primary school level. A negligible 8.67 percent of the
41
Figure – 3
200
0
No.of Respondents
Illiterate
Primary School Level
High School Level
Graduation
Technical
Total No.of Respondents
Percentage
1 2 3 4 5
One of the deciding factors of the consumption of tea product is the income of the
respondents’ family. Income decides the quality and quantity of consumption. The table-4
42
Table – 4
Monthly
No.of
Sl.No Income (in Percentage
Respondents
Rs)
It is understood from the table 4.4 that nearly 31 percent of the respondents’ monthly
income is in between Rs.5,000 – 10,000. 27.33 percent of the respondents monthly income is
in between Rs.10,000 – 15,000. About 23 percent of the respondents are in the higher income
group since their monthly income is more than Rs.15,000. The lower income group of the
43
Figure – 4
No.of Respondents
1 Below 5000
2 5000 - 10000
3 10000 - 15000
4 Above 15000
4 Total
of Nagapattinam. So the sample classified om the basis of their occupation viz., Business,
Profession, employment and Housewife. All those who are the employees of the central and
State Government or Private concerns come under the category of employment. Those who
run business comes under the category of “Business”, these engaged in profession like
medicine, laws, income tax and other tax etc., are placed under the category “Profession”. All
those who depend exclusively on their husbands for their livelihood come under “Housewife”.
44
Table – 5
No.of
Sl.No Occuption Percentage
Respondents
1 Business 32 21.33
2 Profession 7 4.67
3 Employment 62 41.33
employment. About 33 percent of the respondents is not doing any work other than looking
after their family. The respondents who are doing business constitue 21.33 percent of the total
respondents. Therefore, it is understood from the table the housewives and employees
45
Figure – 5
Total
4
House Wife
Percentage
Employment
3
No.of Respondents
Profession
2
Business
1
0 50 100 150
preference. Consumer’s preference to a particular depends on quality, price and other factors.
In the same way, consumer preference to tea brand also depends on the quality, price, taste,
quantity package and other factors. In the study area consumers use various brands of tea;
46
Table – 6
No. of
Sl.No Brand Name Percentage
Respondents
2 A.V.T 11 7.33
5 Tata Agni 3 2
6 Taaza 6 4
8 Taj Mahal 9 6
Table -6 shows that the most preferred brand is Brooke Bond Three Roses, as
54 respondents accounting for about 36 percent prefer it. It implies that the Brooke
Bond Three Roses enjoys the supreme position with regards to consumers’ preference
to tea brand. Tata chakra Gold comes to second place which is preferred by 43
respondents constitutes nearly 29 percent. A.V.T and Taj mahal enjoy consumer
preference nearly equally. Similarly 2 percent of the respondents prefers Tata Gemini
and Tata agni equally. Tata kannan Deven has third place in the study area which is
47
Figure -6
Total
9
Tata Gemini
Taj Mahal
8
Taaza
6
A.V.T
2
In the study area the number of respondents who aware of the different tea
48
Table-7
No. of
Sl.No Awareness Percentage
Respondents
It is clear from the table-7, nearly 93 percent of the respondents is aware of the
different brands available in the market. This may be due to advertisement made by the
companies through television. Even some of the illiterate respondents are aware of the various
brands of the tea product. Due to illiteracy about 7 percent of the respondents is not aware of
The awareness of the respondents about various competitive brands is explained with the
49
Figure-7
Total
2
No. of Respondents
Not Aware
Percentage
Aware
1
The consumers have many reasons for preferring particular brand of tea. The reasons for the
preference to a particular brand of tea as stated by the respondents are given in table – 8.
50
Table -8
No. of
Sl.No Factors Percentage
Respondents
1 Quality 57 38
2 Color 2 1.33
3 Brand Loyalty 33 22
7 Premium Offer 9 6
Table-8 shows that out of 150 respondents 38 percent of the respondents were
preferred tea brand for quality. Brand loyalty is the predominant factors next to quality. 22
percent of the respondents was influnenced by brand loyalty. About 17 percent of the
respondents preferred a tea brand for low price. Nearly 9 percent and 6 percent of the
respondents were given importance to free ift and premium offer and 7 percent of the
respondents was chosen a tea brand because they felt it gave more cup page per kg.
51
Figure – 8
Total
7
Premium Offer
Free Gift
6
Low Price
5
Percentage
More Cuppage
4
No.of Respondents
Brand Loyalty
3
Colour
2
Quality
1
0 50 100 150
The consumers are aware of the tea brands through news media like television, radio, cinema,
magazines and other sources such as retailer and sale man. The respondents are aware of
52
Table-9
No. of
Sl.No Source Percentage
Respondents
2 Advertisement 61 40.67
4 Publicity 24 16
Table- 9 reveals source of brand awareness of the respondents. Out of 150 sample
respondents 61 respondents got information about the tea brand through advertisements which
alone account for about 41 percent. In the next place nearly 25 percent of the respondents
The repersondents who know about tea brand through the advice of friends and
relatives and through recommendation of known people account to nearly 14 percent of total
respondents. The respondents who known about the tea brand through publicity account for
16 percent. Nearly 5 percent of the respondents have come to know about the brand through
sales representatives. It is seen from the table that the majority of the respondents come to
know their tea brand through advertisement. Therefore, it implies that the advertisement place
53
Figure-9
160
140
120
100
80
60
40
20
0 No. of Respondents
Sales Representative
Sales Promotion
Advertisement
Publicity
Total
Percentage
Methods
1 2 3 4 5
The sources from which the respondents of the study area gathered information about
54
Table -10
No. of
Sl.No Source Male Female
Respondents
1 Sales Representative 5 2 7
2 Advertisement 31 30 61
4 Publicity 18 6 24
Total 93 57 150
Table-10 clearly explains that out of 61 respondents irrespective of sex make their
purchases after obtaining relevant information about the tea products from the advertisement.
Out of 21 respondents,17 male and 4 female respondents are influenced by friends and
relative opinions while purchasing the tea product. Publicity influenced 18 male and 6 female
respondents. It is understood that the personal selling has lesser role as compared to other
The opinion of the Male and Female respondents about the source of information is
55
Figure -10
Total
5
Female
Friend and Relatives
3
Male
Advertisement
2
Sales Representative
1
0 50 100 150
Null Hypothesis:
There is no significant difference in the source of information that influenced the male
Alternate Hypothesis:
There is no significant difference in the source of information that influenced the male and
56
Table – 11
F-Test
x
S12 =
n1-1 =353.2/5-1= 88.3
S1
F= =132.75/88.3= 1.503
S2
57
The F-Table value at 5% significance level for 4 degrees of freedom = 6.3883.
Result:
Since the calculated value of F is less than the table value, the null hypothesis is
information that influenced the male and female buyers of tea product.
A number of factors like income, job etc., determine the frequency of purchase. The
frequency of purchase of the respondents is classified into four categories viz., weekly,15
days once,monthly, whenever required. They are clearly shown in table – 11.
58
Table – 12
No. of
Sl.No Frequency Percentage
Respondents
1 Weekly 13 8.67
2 Fortnightly 27 18
3 Monthly 61 40.67
Whenever
4 Needed 49 32.66
The table -12 reveals the buying periodicity of the sample respondents. Out of
150 respondents 61 respondents accounting for 41 percent buy tea product monthly. The
reason may be that these respondents earn fixed monthly income. 18 percent of the
respondents purchase tea product once in 15 days. 32 percent of the respondents buy tea
product whenever needed. The remaining 13 respondents accounting for 9 percent are buying
59
Figure – 12
Total
4
Whenever Needed
Percentage
Monthly
3
No. of Respondents
Fortnightly
2
Weekly
1
0 50 100 150
The duration of using a particular tea brand by the respondents is given in table – 13.
60
Table – 13
No. of
Sl.No Duration Percentage
Respondents
2 1 - 2 years 12 8
3 2 - 3 years 21 14
4 3 - 4 years 27 18
5 4 - 5 years 19 12.67
It is crystal clear from the table that 24.67 percent of the respondents was using the tea
brand less than one year. They are new consumers of the brand, previously they consumed
some other brand, and recently they were switched over the brand. Therefore it implies that in
the study area most of the respondents are ready to consume new brand, if they are satisfied
with the expectation of the respondents. Nearly 23 percent of the respondents using the brand
for more than 5 years, it shows their strong brand loyalty. Another 12.67 percent of the
respondents using the brand for 4 to 5 years and 18 percent of the respondents using the brand
for 3 to 4 years, it shows that they are satisfied with the brand.
The duration of using the particular brand by the respondents is shown in figure – 13.
61
Figure – 13
Total
6
4 - 5 years
5
Percentage
3 - 4 years
4
No. of Respondents
2 - 3 years
3
1 - 2 years
2
0 50 100 150
The opinion of the respondents about the sales promotion to be adopted by the
62
Table – 14
No. of
Sl.No Media Percentage
Respondents
2 Radio 27 18
3 Television 85 56.67
5 Wall Advertisement 15 10
Table-14 clearly exhibits that out of 150 respondents almost 57 percent of respondents
suggested the television is the effective sales promotion media, 18 percent respondents
suggest cinema. Nearly 10 percent and 8 percent of the respondents suggested newspaper and
through television is the most effective sales promotion media in the study unit.
63
Figure – 14
Total
5
Wall Advertisement
Cinema (Film)
4
Percentage
Television No. of Respondents
3
Radio
2
0 50 100 150
The opinion of the respondents about efficetive sales promotion media and age
64
Table – 15
Effective Sales Promotion Media and Age Wise Classification of the Respondents
News Paper
Age of the Wall
and Radio Television Cinema Total
Respondents Advertisement
Magazine
Less than 20 1 3 6 2 2 14
20 - 30 1 3 25 1 1 31
30 - 40 5 8 27 2 1 43
40 - 50 2 7 11 2 6 28
More than 50 3 6 16 4 5 34
Total 12 27 85 11 15 150
Table – 15 shows that the most of the respondents irrespective of age opined that
television media is most effective than others. Therefore, it is necessary to examine whether
there is any significant difference between opinion of the respondents about sales promotion
65
Figure – 15
Effective Sales Promotion Media and Age Wise Classification of the Respondents
Total
0 50 100 150
To verity the opinion of the respondents about the effective sales promotion media a
null hypothesis is framed and tested with the help of one-way ANOVA.
Null Hypothesis:
Alternate Hypothesis:
66
Table – 16
ANOVAs Table
Sum of
Source of Degree of Mean Table
Squares F Ratio
Variation Freedom Square Value
(SS)
Result:
Since the table value is less than the calculated value, the null hypothesis is rejected.
Therefore, in may be concluded that there is a significant difference between opinion of the
respondents about sales promotion media and the age of the respondents.
67
Figure – 16
ANOVAs Table
Table Value
F Ratio
Within Samples
Mean Square
Between Samples
Degree of Freedom
The opinion of the respondents about the sales promotion methods adopted by
68
Table – 17
No. of
Sl.No Methods Percentage
Respondents
2 Premium Offer 21 14
It is understood from the table- 17 majority of the respondents stated that the price
reduction is effective sales promotion method. 21 percent of the respondents opined that the
premium offer i.e., extra quantity is the effective sales promotion method.
14 percent of the respondents expect free offer from time to time to get more quantity
and 14 percent of the respondents situated that the free gifts with the product is effective sales
promotion technique. Therefore, it may be assumed that the price reduction is the effective
The opinion of the respondents about effective sales promotion method is explained
69
Figure – 17
Total
4
Free Gifts
Percentage
Free Offer
3
No. of Respondents
Premium Offer
2
Price Reduction
1
0 50 100 150
Figure – 17 shows that the price reduction is the effective sales promotion
The opinion of the respondents about the opinion regardinf price and income
70
71
Table – 18
Income Level
Opinion
Below 5000- 10000- More than No.of
5000 10000 15000 15000 Respondents
High 17 29 32 6 84
Normal 9 17 6 21 53
Cheap 2 1 3 7 13
Total 28 47 41 34 150
Table – 18 shows that the opinion of the respondents about the price of the tea
product. Out of 150 respondents 84 respondents felt that the price of tea product was high
followed by 53 respondents felt that the price charged by the company was normal. Negligible
Out of 28 respondents who earn monthly income below Rs.5,000 17 respondents were
felt high whereas 9 respondents felt normal; only two respondents felt the price was cheap.
In the opinion of the respondents who are earning monthly income between Rs.5000 –
10000, 29 respondents felt high, 17 respondents felt normal and only one respondent felt
In case of the respondents who are earning monthly income between 10,000 and
15,000, majority of the respondents felt the price charged by the company on tea product was
too high. The higher – income group, majority of the respondents opined that the price was
normal.
72
Therefore it is understood from the table that the respondent’s perception about the
Figure – 18
No.of Respondents
Cheap
10000-15000
Normal
5000-10000 High
Below 5000
0 50 100 150
To verity the opinion of the respondents about the price of a tea product a null hypothesis is
Null Hypothesis:
There is no significant difference between the opinions of the respondents about the
price of the tea product and different income levels of the respondents.
Alternate Hypothesis:
There is a significant between the opinions of the respondents about the price of the
73
74
Table – 19
ANOVA Table
Between
Samples 68.53 3 22.84
Within 8.8452
Result:
Since the table value is higher than the calculated value, the null hypothesis is
accepted. So it true that there is no difference between the opinions of the respondents about
the price of the tea product and different income levels of the respondents.
75
Figure – 19
ANOVA Table
Table Value
F-Radio
Within Samples
Mean Square
Between Samples
Degree of Freedom
Sum of Squares
The opinion of the respondents about the promotion methods influence in selection of a
76
Table – 20
No. of
Sl.No Opinion Percentage
Respondents
1 Influenced 123 82
Not
2 Influenced 27 18
Table – 20 reveals the opinion of the majority of the respondents; the promotion
The opinion of the respondents about the promotion methods influence selection of a
particular brand is explained with the help of a pie diagram given in figure – 20.
77
Figure – 20
Total
2
Percentage
Not Influenced
No.of Respondents
Influenced
1
0 50 100 150
Figure – 20 shows the promotion method creates a big impact on the selection of a
particular company product. The number of respondents who are influenced by the dealers is
78
Table – 21
No. of
Opinion Percentage
Respondents
Influenced 108 72
Not
Influenced 42 28
It is clear from the table – 21 that nearly 72 percent of the respondents are influenced
by the dealers to buy the particular company brand. The dealer while buying tea brand does
It is perceived that in the study area majority of the consumers are influenced by the
dealers to buy particular brand. Therefore the company must satisfy the dealers to have
79
80
Figure – 21
Total
Percentage
Not Influenced
No. of Respondents
Influenced
0 50 100 150
The number of respondents who are loyal to their brands and how many of
them are ready to change their brand when suitable products of their expectations are
81
Table – 22
Brand Loyalty
No.of
Change of Brand Percentage
Respondents
Unwilling to
change 47 31.33
It is clear from table – 22 that out of 150 respondents nearly 69 percent of the
respondents is ready to change their brand if better product is available in the market and 31
percent of the respondents is reluctant to change their brand because of the brand loyalist
which shows the confidence of the despondence on the preferred tea brand. It is brand if better
The brand loyalty of the despondence is explained with the help of a pie diagram.
82
Figure – 22
Brand Loyalty
Total
Percentage
Unwilling to change
No.of Respondents
Willing to change
0 50 100 150
presented table-23.
83
Table – 23
Brand Loyalty
Illiterate 8 5 13
Graduation 26 18 44
Technical Qualification' 17 8 25
qualifications are willing to change their brand if better product is available in the market. So,
it is necessary to examine whether there is any significant difference between opinion of the
To verity the opinion of the respondents about the brand loyalty of a tea product a null
hypothesis is framed and tested with the help of chi square test.\
84
Figure – 23
Total
Technical Qualification'
Brand Loyalty Total
Graduation
Brand Loyalty Unwilling to
Higher Secondary change the Brand
School Level
Brand Loyalty Willing to
Primary School Level change the brand
Illiterate
0 50 100 150
Null Hypothesis:
Alternate Hypothesis:
85
Table – 24
O E (O-E)2 (O-E)2/E
4.398
Result:
As the calculated value is less than the table value, it is concluded that the Null
of the respondents about brand loyalty and educational qualification of the respondents.
86
Figure – 24
(O-E)2/E
å(E-O)2/E
93 2 7 1 1 07 58 3 9 7.83
8
8 17 35 26 17 5 4 12 18
14 13
17.724
8. .4 .2 .2 .7 4. 6. .7 .7
6.656
(O-E)2/E
14 32 30 17
0.029
7.453
0.865
0 1 2 3 4 5
Out of 150 respondents 103 respondents are willing to change their brand. The reasons stated
by the respondents for willing to change their brand are explained in table – 25.
Table – 25
No.of
S.No Reasons Percentage
Respondents
87
Source: Primary data
Table – 25 shows that the majority of the respondents are willing to swich over to the
new brand if it offers brand quality. As far as tea brand is concerned, the respondents give
more important o quality of the product than price because only 20 percent of the respondents
were ready to switch over to the new brand for least price.
Figure – 25
Total
4
Better Quality
Percentage
More Discount Offer
3
No.of Respondents
Least Price
2
Attractive Package
1
0 50 100 150
In addition to strong brand loyalty the reasons for unwilling to switch over the new brand is
88
Table -26
No. of
Sl.No Reasons Percentage
Respondents
Total 47 100
It is clear from the table – 26 that the nearly 55 percent of the respondent was
unwilling to switch over to the new brand because they were highly satisfied with the existing
brand. Another 32 percent of the respondents reluctant to change the brand because price and
discount are immaterial to them, they concerned about only quality of the product. 13 percent
of the respondents opined that they have no knowledge about quality of the new brand as their
89
Figure – 26
Total
3
immaterial
No Knowledge about
1
0 20 40 60 80 100
The consumers may expect certain things from the producers of the goods and
services. The producers should satisfy the expectation of the consumers in order to with stand
in the highly competitive market. The expectation of the consumers of the tea is listed in table
– 27.
90
Table -27
No.of
Sl.No Expectations Percentage
Respondents
Quality
1 improvement 57 38
3 More Discount 21 14
Table -27 shows the expectation of the respondents in the study area from the
producers of the tea products. Out of 150 respondents 38 percent of the respondents expect
improvement of quality with the same price level. 29.33 percent of the respondents expect to
reduce price of the tea with same quality and 14 percent expects more discounts. The
respondents who expect extra premium offer constitute 11.33 percent of the total respondents.
The remaining 7.34 percent of the respondents expect free samples from the producers to test
the quality and adoptability of the tea brand. Therefore, the producers of the tea should try to
satisfy the expectations of the consumers to with stand in the market forever.
91
Figure – 27
Total
5
Free Sample
Extra Premium
4
Percentage
More Discount No.of Respondents
3
Price Reduction
2
Quality improvement
1
0 50 100 150
92
CHAPTER –V
CONCLUSION
1. Summary:
occupation, income, family set-up, religion, nationality and social status. The needs of elderly
consumers are different from those of young consumers. Newly married couples have needs
which are totally different from older retired married couples because of these different
background factors the consumers have different needs and consumer only buy those products
appropriate marketing strategies which he can design only when he understands the factors
which account for these differences in consumer behaviour and tastes. In today’s world of
rapidly changing technology, consumer tastes are also characterized by fast changes. To
survive in the market, a firm has to be constantly innovating and understand the latest
consumer trends and tastes. Consumer behavior provides invaluable clues and guidelines to
marketers on new technological frontiers which they should explore. Consumer behavior is a
All these factors and the type of influence which they exert on an individual’s
consumption behavior can be understood and analyzed. Moreover, some of these factors can
be further influenced by specific elements of the marketing strategy, so that the consumer
behavior process results in a definite purchase decision. To the extent that the marketer can
93
understand and manipulate the influencing factors, they can predict the behavior of
consumers.
Though prediction can never be absolutely accurate, it certainly reduces the risk
associated with different marketing strategies. Thus, the importance of consumer behavior lies
in the fact that behavior can be understood and influenced to ensure a positive purchase
decision. The marketing manager’s interest lies exactly here i.e. to ensure that his marketing
psychological, personal, social, and cultural. Man is a many faceted, complex psychological
being. His consumer behavior is influenced by his motives, perception, attitudes and learning.
Each of these psychological factors provides a unique mental framework for each consumer
with in which he makes his purchase decision. For the marketer it is essential to associate his
Also he must ensure that the product concept fit with the consumer’s existing attitudes
and beliefs. Man is a social animal and is influenced by the people with whom he interacts.
Each person interacts with and is a member of many groups. These groups provide a point of
reference or comparison for the consumer and are known as reference groups and strongly
affect his product and brand choices. Amongst the various groups such as family, friends,
social organization, professional associations, the strongest influence is exerted by the family.
Culture is the most pervasive influence on people lives and influences all aspects of people
behavior, consumers operate within the cultural framework of their society and purchase only
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Within each cultural there exist many sub – culture comprising distinct nationality groups,
religious groups, racial groups geographic groups that have their own unique values and life –
style.
Social classes are group of people who have similar income, education, wealth, social
status, value and belifes. The marketer must understand the people with different cultural,
sub-cultural and social class background have different product and brand preferences and
India plays significant role in the production of tea and meets the one – fourth needs of
world consumption. The tea industry, which is agro based and labor intensive is having
considerable share in the India’s exports and contributing largely to the India’s national
income. Considering the importance of the tea industry in the Indian economy an attempt has
been made to understand the consumer preference with reference to the brand and to find out
how far the consumer’s preference finds important place in tea market. It also studies the
maximum information regarding the consumer’s behavior in purchasing tea product. The
study focused on how and why consumers make decisions to buy goods and services.
The primary objective of the study is to find out consumer’s preference to tea brands
in the study area. The design of the of the research is explorative in nature as it tries to
identify the preference of the consumers to tea brand in Nagapattinam town. Both primary
secondary data have been used in this study, primary data, and the opinion of the consumers
of tea brand using a structural interview schedule prepared specially for that purpose.
Secondary data have been collected from relates books and magazines, from relevant
published and unpublished reports. The data thus collected from the opinion of the consumers
were tabulated, analyzed and interpreted with the help of tables, diagrams and charts. Bar
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All the consumers who consume tea in the study area are the population of the study.
The total population of the study is infinite and cannot be qualified. The total number of
respondents for this research was 150, Convenience sampling method of non – probability
sampling is used in this research. The data, thus collected have been properly classified
tabulated, graphs; Chi-square test and ANOVA are employed to analyze the data and testing
The limitations of the study are (i)The study is confined to Nagapattinam town limit
only. Therefore, the findings of the study are not universally applicable. (ii) The study is
restricted to the opinion of the consumers only. Opinion of the dealers and tea stalls buyers
are not taken into account. (iii) The result of the study cannot be generalized to other areas
due to demographical differences. (iv) The study was taken in general point of view of the
consumer behavior on different tea brands and not a specific company. (v) The sample size is
150 only, which may not be sufficient to conclude the accurate response. (vi) The report is
The whole study has been organized and presented in five chapters. Introduction and
framework of the study is given in the First Chapter. A brief sketch of production,
consumption and marketing of tea is dealt with in Second Chapter. Third chapter is devoted to
consumer behaviour and related literature. Fourth Chapter is concerned with analysis of
consumer’ preference to tea brand in the study area. Summary of finding, suggestion and
2. Findings:
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It is that the most preferred tea brand of the respondents is Tata Chakra Gold, as 54
respondents accounting for brand for about 36 percent prefer it. It implies that the Tata chakra
Gold enjoys the supreme position with regards to consumer’s preference to tea brand.
respondents constitutes nearly 29 percent. A.V.T. and Taj Mahal enjoy consumer preference
nearly equally. Similarly 2 percent of the respondents prefers Tata Gemini and Tata Agni
equally.
Nearly 93 percent of the respondents is aware of the different brands available in the
market. This may be due to advvertisment made by the companies throught television. Even
some of the illiterate respondents are aware of the various brands of the tea product. Due to
illiteracy about 7 percent of the respondents is not aware of the different brands available in
the market.
Out of 150 respondents 38 percent of the respondents was preferred tea brand for
quality. Brand loyalty is the predominant factor next to quality. 22 percent of the respondents
were influenced by brand loyalty. Nearly 9 percent and 6 percent of the respondents were
given importance to free gift and premium offer and 7 percent of the respondents was chosen
a tea brand because they felt that it gave more cup page per kg.
It is found that there is no difference in the source of information that influenced the
It is found that there is no different between the opinions of the respondents about the
price of the tea product and different income levels of the respondents.
In the study area the promotion method creates a big impact on the selection of a
particular brand.
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It is found that there is no significant difference between opinion of the respondents
Suggestions:
In the light of foregoing analysis of the study the following practical suggestions are
The study reveals that the majority of the respondents come to known their tea brand
through advertisement. Therefore, it implies that the advertisement palce vital role in the tea
industry.
advertisement must be made. The advertising is not only retaining existing consumer but also
In order to satisfy the consumers who are housewives, it is suggested to the tea
companies that small jar type package may be introduced in the place of poly pack.
In the study area the consumers always look for better quality and reasonable price of
and reduce the price so as to avoid shift in the consumer’s choice to other substitutes.
The most of female consumers may take the decision to purchase the particular tea
brand for their family. Therefore, steps may be taken by the tea companies to convince this
group.
Only less priced products can successfully penetrate the existing market therefore the
launching company may be taken by the tea company convince this groups.
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It is essential for the new tea product launching company to convince the buyers and
their friends and relatives about the superiority of the new product.
To achieve this personal selling method is the best suitable sales technique to be
Conclusion:
To conclude the challenge for every producer of consumer goods is not to produce
satisfied customer but to produce loyal customer. Many companies are aiming for high
satisfied because consumers who are just satisfied still find it easy to switch when a better
Those who are highly satisfied are much less ready to switch. High satisfaction creates
on emotional bond with the brand not just an emotional preference. The result is high
customer loyalty, It is true that the modern marketing starts and ends with consumers.
Therefore it is necessary that the tea companies must understand the opinion of the consumers
More over most of the consumers are ready to switch over other brand if its offer
better quality with least price. Therefore, in order to withstand in the market tea marketers
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BIBLIOGRAPHY
Philip Kilter, “Need satisfaction and buyer’s Behavior”, Marketing Management Eleventh
Rajan Nair, Meaning of buying motive’s marketing, Sultan Chand & Sons, New Delhi –
1988.
Dr. Memorial, C.B. & Dr. Memorial, S.Diffusion process – Marketing Management, kidib
Magazine:
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News Papers:
Websites:
www.MSN.com
www.Google.com
www.Yahoo.com
www.farsinet.com/hottea/
www.rediffmail.com
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A STUDY ON CONSUMER PREFERENCE TO TEA BRAND IN
NAGAPATTINAM TOWN
QUESTIONNAIRE
1.Name:
2.Sex:
3.Age:
(iii)30-40 Years
4.Educational Qualification
(i ) Illiterate
(iv) Graduation
(v) Technical
5.Monthly income:
6.Occupation:
(i) Business
(ii) Profession
(iii) Employment
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7.What is your preference to tea brand available in the market?
Yes / No
Influenced
Not Influenced
(i) Quality
(ii) Color
(i) Television
(ii) Radio
(iv) Cinema
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(vii) Frequency of purchase
(viii) Weekly
(ix) Fortnightly
(x) Monthly
13.If any new product is introduced new company will you buy it?
Yes / No
14.Do you know the competitive brand of the tea product presently used by you?
Yes / No
1 – 2 Years
2 – 3 Years
3 – 4 Years
4 – 5 Years
Yes / No
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(iii) More Discount
Others Specify
High
Normal
Cheap
Influenced
Not Influenced
--------------X-------------
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