adeel summer project report.docx

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SUMMER PROJECT REPORT

On

CONSUMER BEHAVIOUR TOWARDS READY- TO-EATFOOD

PRODUCTS

prepared for and presented to

RURAL OUTREACH PRIVATE LIMITED

UNDER THE GUIDANCE OF

ORGANISATION GUIDE INSTITUTIONAL GUIDE

Mr. Anadi Anand DR.RAKHI GUPTA.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF MASTERS OF BUSINESS ADMINISTRATION FROM

GAUTAM BUDDHA TECHNICAL UNIVERSITY

By

NAME: - MOHD AMIR

Roll No 1212470080

(3

rd Semester

2012 2014)


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INSTITUTE OF CO-OPERATIVE & CORPORATE

MANAGEMENT, RESEARCH & TRAINING, LUCKNOW

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the

writing of this project. My deepest thanks to Dr.Rakhi Gupta the Guide of the project forguiding and correcting various documents of mine with attention and care. She has taken

pain to go through the project and make necessary correction as and when needed. I express

my thanks to the Principal Dr.Ajay Prakash for extending his support. My deep sense of

gratitude to Mr.Anadi Anand Supervisor RURAL OUTREACH PRIVATE LIMITED

for supportand guidance. Thanks and appreciation to the helpful people at Rural Outreach

Private Limitedfor their support. I would also thank my Institution and my faculty

members without whom this project would have been a distant reality. I also extend my

heartfelt thanks to my family and well wishers.


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DECLARATION

I hereby declare that the project work entitled CONSUMER BEHAVIOURTOWARDS

READY- TO-EATFOOD PRODUCTSsubmitted to the ICCMRT, is a record of an originalwork done by me under the guidance of Mr. Anadi Anand and Dr. Rakhi Gupta and this project

work has not performed the basis for the award of any Degree or diploma and similar project if any.

MOHD AMIR

ROLL NO 1212470080


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CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT

FOOD PRODUCTS


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C O N T E N T S

Sl. No. Chapter Particulars

CERTIFICATE

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF FIGURES

LIST OF APPENDICES

1 INTRODUCTION

2 REVIEW OF LITERATURE

2.1 Awareness of consumers towards branded products

2.2 Purchase behaviour of consumers

2.3 Brand preference

2.4 Factors influencing brand preference

2.5 Alternative purchase plans

3 METHODOLOGY

3.1 Description of study area

3.2 Sampling design and data collection

3.3 Analytical tools employed in the study


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4 RESULTS

4.1 Awareness of consumers towards branded ready to eat foodproducts.

4.2 Purchase behaviour of consumers towards ready to eat foodproducts.

4.3 Brand preference of the consumers.

4.4 Factors influencing brand preference.

4.5 Alternative purchase plans of the consumers.

5 DISCUSSION

5.1 Awareness of consumers towards branded ready-to-eat foodproducts.

5.2 Purchase behaviour of consumers towards ready to eat foodproducts.

5.3 Brand preference of the consumers.5.4 Factors influencing brand preference.


6 SUMMARY AND POLICY IMPLICATIONS


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Sl. No. Chapter Particulars

7 REFERENCESAPPENDICESABSTRACT


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LIST OF TABLES

TableTitle

No.

4.1 General information of selected samples in Hubli and Dharwad

4.2 Brand awareness of consumers about biscuits among different age groups

4.3 Brand awareness of consumers about chips among different age groups

4.4 Brand awareness of consumers about fruit juice among different age groups

4.5 Brand awareness of consumers about ice creams among different age groups

4.6 Influence of media to create awareness about the brands

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

4.8 Reasons for purchasing ready to eat food products by consumers of Hubli

Dharwad

4.9 Reasons for not purchasing ready to eat food products by consumers of Hubli

Dharwad

4.10 Monthly expenditure of households on food items

4.11 Monthly expenditure of households on ready-to-eat food products

4.12 Frequency and place of purchase by the respondents

4.13 Nature of purchase decision among different age groups

4.14 Influence of income on purchase decisions on ready to eat food products

4.15 Influence /impact of education to make purchase decision on ready to eat food

products

4.6 Preference for type of biscuits among different age groups

4.17 Preference for variety of chips among different age groups

4.18 Preference for flavour in chips among different age groups

4.19 Preference for type of fruit juice among different age groups

4.20 Preference for type of ice creams among different age groups


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4.21 Preference for flavour in ice creams among different age groups

4.22 Brand preference for biscuits

4.23 Brand preference for chips

4.24 Brand preference for fruit juice


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TableTitle

No.

4.25 Brand preference for ice creams

4.26 Factors influencing brand preference

4.27 Alternative purchase plans of ready to eat food products


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LIST OF FIGURES

FigureTitle

No.

1 Brand awareness of consumers about biscuits among different age

groups

2. Brand awareness of consumers about chips among different age

groups

3. Brand awareness of consumers about fruit juice among different age

groups

4. Brand awareness of consumers about ice creams among different

age groups

5. Influence of media to create awareness about the brands

6. Monthly expenditure of households on food items

7. Monthly expenditure of households on ready-to-eat food products


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LIST OF APPENDICES

AppendixTitle

No.

1 Questionnaire


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1. INTRODUCTION

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

The consumer-hood 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 produce is


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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 peoplespending 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 populationconsume 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 theGovernment 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 Governmentto boost food processing activities.


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53 food parks approved to enable small and medium food and beverageunits to set up and to use capital intensive common facilities such as cold

storage, warehouse, quality control labs, effluent treatment plant, etc.


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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 convenient foods, which offer value for money, products focused

towards children and young adults and products catering to those who lead a fast

modern day life. Realizing the potential and in order to provide further boost, the

government has exempted from excise duty for condensed milk, ice cream,

preparations of meat, fish and poultry, pectins, pasta and yeast. Further, excise

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

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

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

reduction of customs duty on packaging machines, which would reduce

packaging costs (Budget, 2007).

The Food Processing Industry In India

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

farmers to the final consumers in the domestic as well as the international

markets. Food processing combined with marketing has the potential of solving

the basic problems of agricultural surpluses, wastages, rural jobs, and better

remuneration to the growers. In the next ten years, food production is expected to

double. These produces, if processed and marketed smartly, can make India a

leading food supplier of the world.

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

annum) provides a large and growing market for food products. Food products

are the single largest component of private consumption expenditure, accounting


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for as much as 49.00 per cent of the total spending. Furthermore, the upward

mobility of income classes and increasing need for convenience 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 greater potential for food processing industry in India,

government had committed to encourage various activities for the development

of this sector. Indian government had been giving importance to the food

processing sector, by way of fiscal incentives to encourage commercialization

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

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

year tax holiday for new food processing units in fruits and vegetable processing.

From 2000-01 to 2006-07 government had also approved proposals for joint

ventures; foreign collaboration, industrial licenses and 100.00 per cent export

oriented units envisaging an investment of Rs. 19,100 crores during 2002-03.

Out of this, foreign investment was over Rs. 9100 crores.

The processed food industry should introduce innovative new products of

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

this booming opportunity, smart players have to enter the growing market with a

high potential of retail Foreign Direct Investment (FDI).

Ready-to-eat food products


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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 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.


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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.

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.


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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 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-

to-eat 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 raise in income level, influence of western

countries, more global trade, traveling etc., hence, 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


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want, where they want and the manner in which they want. These methods help

in increasing the sales of the product with good feed back 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 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, the present study was under taken with the

following objectives.


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Objectives of the study

The specific objectives of the study were:

i. To ascertain the awareness of consumers towards branded ready-to-eatfood 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.

Limitation of the study

This study was based on primary data collected from sample consumers by

survey method. As many of the consumers furnished the required information


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from their memory and experience, the collected data would be subjected to

recall bias. The study area was limited to Hubli and Dharwad cities and the

findings may not be applicable to other markets, as vast difference exist among

the consumers with regard to demographic and psychographic characteristics.

Hence, the findings of the study may be considered appropriate for the situations

similar to study area and extra care should be taken while generalizing the

results.


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2. 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.

2.1 Awareness of consumers towards branded products

2.2 Purchase behaviour of consumers

2.3 Brand preference2.4 Factors influencing brand preference

2.5 Alternative purchase plans

2.1 AWARENESS OF CONSUMERS TOWARDS BRANDED

PRODUCTS

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

sustainable asset. It provides a sense of familiarity especially in low-

involvement products such as soaps, a sense of presence or commitment and

substance and it was very important to recall at the time of purchasing process.


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Apart from the conventional mass media, there were other effective means to

create awareness viz., event promotions, publicity, sampling and other attention

getting approaches.

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

education for young consumers has become increasingly apparent, given their

general food habits and behaviour, particularly during adolescence and analyzed

that the interaction between young consumers food preferences and their

nutritional awareness behavour, within three environments (home, school and

social interaction appears to be somewhat overshadowed by the young

consumers, while developing an independence trait, particularly, during the

adolescent years. The authors suggested that food preferences are often of a fastfood 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


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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.

Nandagopal and Chinnaiyan (2003) studied that the level of awarenessamong the rural consumers about the brand of soft drinks was high which was

indicated by the mode of purchase of the soft drinks by Brand Name.

The major source of brand awareness was word of mouth followed by

advertisements, family members, relatives and friends

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

influenced by awareness and attitude towards the product. Commercial

advertisements over television was said to be the most important source of

information, followed by displays in retail outlets. Consumers do build opinion

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

role in decision making process. A large number of respondents laid emphasis on

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

importance to image of manufacturer.


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.

2.2 PURCHASE BEHAVIOUR OF CONSUMERSBalaji (1985) studied fish consumption behaviour of 526 consumers in

Vishakapatnam city. The study revealed that 77.00 per cent of respondents

consumed fish for dinner and 22.00 per cent for lunch. About 30.00 per cent of

the respondents did not consume fish on festival days, as those days were

considered auspicious, while the rest had no notations and consumed fish,

irrespective of festivals.

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

Swiss consumers since the beginning of the 20th century and in the more recent

past. Current trends include greater emphasis on health and safety of foodstuffs

and less attention to price, increased demand for low calorie light products and

increased demand for organically grown foods. For young people, more concern

with enjoyment and less for health, with more meals eaten from home and

generally an increased demand for convenience foods. The prospects for high

quality branded products were seen to be good.

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

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

irrespective of income. Orange squash consumption was maximum in high and

middleincome 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 eating habits. Vigorous sale of


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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)


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

and second preference of order respectively for the purchase of food items. The

prime factor indicated by the rural respondents for buying their food items was

appearance with mean score of 4.01, followed by price, quality and place of

buying to which they ranked second, third and fourth with mean scores of 3.81,

3.45 and 2.96 respectively. But urban respondents visualized these factors little

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

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

respectively.

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

preferences for milk. They were milk quality, convenient, availability, supply in

quantity desired, flavour, colour, freshness and mode of payment which showed

higher levels of consumer satisfaction.

Purchasing practices of consumers in Parbhani was studied by Kulkarni

and Murali (1996). The results revealed that 83.50 per cent of consumers were

seeking the information from television regarding the products availability and

this was followed by neighbours (71.00%) and newspapers (69.50%).

Consumers preferred retail market for the purchase of groceries (65.00%), milk

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

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

consumers preferred quality for the purchase of food.

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

Cooperative Supermarket, Cuddalore was enjoying favorable images of

consumers in the attributes, such as, equality of price, behaviour of sales persons,

moving space, location, correctness of weight, packaging of goods, number of

sales persons and convenient shopping hours. At the same time, the image was

weak in the attributes, such as, quality of goods, availability of range of products,

variety of goods, acceptance of returns, credit facility, door delivery and sales


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promotional measures.

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

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

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

negative impact and income a positive impact on consumption.

A socio-economic influence of rural consumer behaviour studied by

Sayulu and Reddy (1998), concluded that frequency of purchase of commodities

by rural consumers was highly influenced by the type and nature of the products.

Products like groceries (40.35%) and others which included vegetables, milk etc.

(48.25%) purchased on daily basis and 33.33 per cent and 42.98 per cent of them

purchased these products on weekly basis. Cash purchase was highest in case of

products like groceries (44.74%) followed by credit purchase with 38.60 per cent

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

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

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

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

agreement between ranking given by the housewives and working women

regarding the reasons promoting them 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.


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

vegetable marketing in Dharwad city. Low income groups purchased lesser

quantity (3.25 kg/week) of vegetables as compared to medium (5.40 kg/week)

and high income groups (4.66 kg/week). Majority of low income group preferred

to purchase vegetables from producers because of reasonable price. High and

medium income families preferred stall vendors for the purchase of vegetables

because of better quality and correct weighment.

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

adolescents fish consumption in school. Fish consumption was assessed by

observation on 4 occasions.


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Attitudes towards the fish, friends behaviour and perceived control were

important predictors of the intention to eat fish and barriers for fish consumption

were a negative attitude towards both smell and accompaniments and fear of

finding bones. But the eaters of fish were more satisfied with the taste, texture

and appearance of the fish and rated safety significantly higher than those who

resisted. They also thought to a greater extent that the fish was healthy and

prepared with care. The results suggested that, it is important to alter dishes so

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

accompaniments included. Finally it was recommended to convey the pupils that

the fish served would be healthy and prepared with care.

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

by experience of their own and of neighbour consumers and his family. Above

all, the quality of the product and its easy availability were the primary and the

vital determinants of his buying behaviour. Consumers were influenced by touch

and feel aspect of any promotional activity.

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.

2.3 BRAND PREFERENCE

Gluckman (1986) studied the factors influencing consumption and

preference for wine. The explicit factors identified were, the familiarity with

brand name, the price of wine, quality or the mouth feel of the liquid, taste with

regard to its sweetness or dryness and the suitability for all tastes. Some of the

implicit factors identified through extensive questioning were colour and


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

Consumers preferred French or German made wines to Spanish or Yugoslavian

wines.

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

making of 200 respondents for various food products. Country of origin and

brand of the products were cross- tabulated against age, gender and income.

Results revealed that the considered factors were independent of age, education

and income. The brand image seemed to be more important than the origin of the

product, since the consumers were attracted by the brands.

Shanmugsundaram (1990) studied about soft drink preference in Vellore

town of North Arcot district in Tamil Nadu. The study revealed that, the most

preferred soft drink among respondents as Gold spot (26.00%), followed by

Limca (24.80%). It was found that the taste was the main factor for preference of

particular brand and among the media; television played a vital role in

influencing consumer to go for a particular brand. Because of convenience in

carrying, tetra pack was most preferred one.

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

fruit and vegetable products in Bangalore city by using Markov Chain analysis.

The result of study revealed that Kissan brand of jam and Maggi brand of

ketchup had a maximum brand loyalty among consumers and less amount of

brand switching occurred for these brands.

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.

Hans et al.(1996) revealed that, the brand switching of consumer was

based on variety seeking behaviour, motivations, curiosity and price motive.


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

fruit and vegetable products in Karnataka state by using Markov Chain analysis.

The result of the study revealed that Maggi, Sil and Kissan were having market

retention of 74.20, 55.78 and 48.74 per cent, respectively for jam products. The

equilibrium shares determined in order to predict future market position among

the different brand showed that in long run shares of Kissan, Rex. Other brands

were likely to decline, mainly on account of increased market shares of Gala, Sil

and Maggi.

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

that the price of the preferred brand, efficiency of the preferred brand and

influence of advertisement significantly influenced the brand loyalty. Only when

the price of a particular brand is comparatively low, the farmers would naturally

prefer to low priced brand. Otherwise farmers would naturally continue to

purchase the same brand Low and Lamb Jr. (2000) came out with an interesting

conclusion that well known brands tend to exhibit multi-dimensional brand

associations, consistent with the idea that consumers have more developed

memory structures for more familiar brands. Consumers might be willing to

expend more energy in processing information regarding familiar brands

compared to unfamiliar brands.

Kamenidou (2002) presented the findings on the purchasing and

consumption behaviour of Greek households towards three processed peach

products: canned peaches in syrup, juice and peach jam. The results revealed that

47.50 per cent of the households purchased canned peaches in syrup, 67.40 per

cent purchased peach juice and 42.60 per cent purchased peach jam. Reasons for

such purchase were satisfactory taste and qualities and households perception

that they were healthy products. The results also indicated that the consumption

quantities were considered low, while households usually purchased the same

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


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

Telangana region of Andra Pradesh. He found that in rural market about 37.50

per cent of consumers preferred Thumbs-up (urban 30%), followed by Coca cola

(28.50%) (urban 37.50%), Pepsi 12.50 per cent (urban 9.00%), Limca (4.00%)

(urban 8.50%). Most of the urban consumers (67.00%) purchased soft drinks in

nearest Kirani stores (rural 73.00%), followed by super bazaar (27.00%) (rural

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

played very vital role in companys success and failure in the market.

Transportation was among the major functions of physical distribution.

Transport adds time and place utility for the product.

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


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.

FACTORS INFLUENCING BRAND PREFERENCE

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

loyalty based on the nature of product, like necessities or luxuries. Brand choice

and store loyalty were found to affect the brand loyalty of the consumer. The

factors that influence and strengthen loyalty to brand were quality of product,

habit of use and ready and regular availability.

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

products were the major criteria based on which the consumers selected a brand

of processed fruits and vegetable products.

Ashalatha (1998) studied the factors influencing the performance of

BAMUL milk for a sample of 100 respondents. The study revealed that the

factors such as door delivery, clean packing, quality, hygienic preparation, time

saving and reliability, good value for money, freshness and desired flavour were

important in the order in influencing the decision of buyers for BAMUL milk.

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

the quality aspects like aroma, taste, freshness and purity as the major factors

deciding the preference for a particular brand of processed spices.


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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


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preference of soft drinks in rural Tamil Nadu, using Garrets ranking technique,

to rank factors influencing the soft drinks preferred by rural consumer. They

found that, the product quality was ranked as first, followed by retail price. Good

quality and availability were the main factors, which influenced the rural

consumers of a particular brand of a product.

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 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 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.


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.

2.5 ALTERNATIVE PURCHASE PLANS

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

respondents preferred branded products and if their favorite brand is not

available in the retail shop, they will go for another store and purchase their

favorite brand. If it is not available in the market, the respondents were ready to

postpone their purchase decision.

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.


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3. 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:

3.1 Description of study area

3.2 Sampling design and data collection

3.3 Analytical tools employed in the study

3.1 DESCRIPTION OF STUDY AREA

Dharwad and Hubli are the fastest growing cities in the state next to

Bangalore. The population is heterogeneous with diverse cultural, religious and

economic background. This urban conglomeration covers an area of 190 square

kilometers with a population of 7.86 lakhs (2001 census). Because of the

existence of various linguistic, religious and ethnic groups, it has been a very

good marketing centre for launching new products. Since, the twin cities provide

an ideal setting to study the behaviour of consumers towards ready-to-eat food

products, the present study was undertaken.

3.2 SAMPLING DESIGN AND DATA COLLECTION

3.2.1 Selection of ready- to- eat food products

Preliminary discussions were held with the local consumers and the

marketers about the consumption of ready- to- eat food products as well as about


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the brands available and preferred in the study area to gather information on the

products to be selected for the study. Based on the discussions, the most

commonly available and used products in the study area were selected. The

particular products were selected in such a way as to represent one product from

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

The products selected for the study were as follows:

Cereal basedBiscuits

Fruit basedFruit juices

Vegetable basedChips

Milk & milk products basedIce creams

3.2.2 Sample selection

The total samples selected for the study was 200 respondents. In the first

phase Hubli and Dharwad twin cities were selected purposively. In the next

phase, 100 sample consumers each from Hubli and Dharwad were selected

randomly irrespective of age, education and income level.

Classification of the respondents

The respondents were classified into different categories based on age.

Age

Age Group 1 (AG1) Below 20 years


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Age Group 2 (AG2) Between 2140 years

Age Group 3 (AG3)Between 4160 years

Age Group 4 (AG4) Above 60 years

Income

The respondents were post classified into three income groups based on

their income by using the formula:


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Mean 0.425 x S.D.

Low incomeBelow Rs. 8615.70 per month.

Middle incomeBetween Rs. 8615.70 to Rs. 13,638.30 per month.

High incomeAbove Rs. 13,638.30 per month.

Collection of data

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

well as secondary sources.

Primary data

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

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

respondents were interviewed at retail outlets, departmental stores, bakeries and

even at the homes. The questionnaire consisted of:

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

habit,

family income and family type. Monthly expenditure on food items in general

and ready- to- eat food products in particular.

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


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Garretts ranking technique was adopted for the studying brand

preferences and factors influencing for preference of a particular brand.

In the first stage: ranking given by 200 respondents for each factor was

analyzed. Eg: Rank given by the respondents

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 5 1 2 9 10 - - 4 3 - 8 - 7 6

2 3 2 7 - 10 - 6 4 1 - 8 - 9 5 -

3 3 6 - 8 - 10 - 2 1 - 7 9 - 5 4


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In the second stage: Thus assigned ranks by the individual respondents were

counted into percent position value by using the formula.

Per cent position = 100 (Rij0.5)/Nj.

Where, Rijstands for rank given for the ithfactor by the jth

individual. Njstands for number of factors ranked by jth

individual.

The per cent position value for the same assigned ranks by the respondents as follows.

Respondent FactorsNo.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 45 5 15 85 95 - - 35 25 - 75 - 65 55

2 25 15 65 - 95 - 55 35 5 - 75 - 85 45 -

3 25 55 - 75 - 95 - 15 5 - 65 85 - 45 35

Stage IIIFor each per cent position scores were obtained with reference to Garretts tables

and each per cent position value was converted into scores by reference to Garretts Table.

Eg: Garretts table scores for the per cent position values as follows

Respondent FactorsNo.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47


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2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

In the fourth stageSummation of these scores for each factor was worked out for the

number of respondents who ranked for each factor.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

126 169 124 107 48 36 47 127 221 63 79 67 30 196 104


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In the fifth stageMean scores were calculated by dividing the total score by the number of

respondents.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

126 169 124 107 48 36 47 127 221 63 79 67 30 196 104

Mean 63 56.33 62 53.50 24 18 47 63.50 73.66 63 39 33.50 30 65.33 52

In the last stage Overall ranking was obtained by assigning ranks 1, 2, 3 . etc. in the

descending order of the mean score.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

Mean 63 56.33 62 53.50 24 18 47 63.50 73.66 63 39 33.50 30 65.33 52

Ranks IV VI V VII XIII XIV IX III I IV X XI XII II VIII


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4. RESULTS

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

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

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

4.3 Brand preference of the consumers.

4.4 Factors influencing brand preference.


4.1 AWARENESS OF CONSUMERS TOWARDS BRANDEDREADY-TO-EAT FOOD PRODUCTS

To know the awareness, it is necessary to study socio-economic

characteristics of the consumers, as these are the important variables, which

decide the consumption pattern of food products in the family. Generally it is

believed that, as the income, age and education of the consumers increase, the

expenditure on consumption of food products also increases. Hence, the

consumers socio-economic characteristics were studied and the results are

presented hereunder.

4.1.1 General information about the selected samples

Table 4.1 presents the general information of selected samples in Hubli

and Dharwad cities. It could be seen from the table that the maximum number of

respondents i.e., 55.00 per cent of them belonged to the age group 2 (21-40

years). Thirty two per cent of them were below 20 years i.e., they belonged to the


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AG1 and 9 per cent of them were between the age of 41 to 60 years (AG3). Very

few per cent of the respondents were above 60 years (4.00%) and they belonged

to the age group 4.

Among the total respondents 61.00 per cent of them were female and

remaining 39.00 per cent of them were male.

Maximum number of the selected respondents were degree holders

(44.00%), 30.00 per cent of them were of PUC level, 14.00 per cent of the

respondents were post graduates and 10.00 per cent of them were of high school

level. Very less percentage of the respondents were of primary school level

(2.00%). It was also observed from the table that none of the respondents wereilliterates.

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. 13638.30/month).


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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%).


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Table 4.1. General information of selected samples in Hubli and Dharwad

(N = 200)

General information CategoriesNo. of

Percentagerespondents

Below 20 years (AG1) 64 32.00

Age21-40 years (AG2) 110 55.00

41-60 years (AG3) 18 9.00

>60 years (AG4) 8 4.00

Male 78 39.00

Sex Female 122 61.00

Illiterate - -

Primary school 4 2.00

EducationHigh school 20 10.00

PUC 60 30.00

Degree 88 44.00

PG 28 14.00

Joint 22 11.00

Family type Nuclear 178 89.00

Small (below 5) 82 41.00

Family size Medium ( 5-7) 88 44.00

Large (more than 7) 30 15.00

Food habitVegetarian 146 73.00

Non - vegetarian 54 27.00

Low (< Rs. 8615.70) 80 40.00

Monthly income (Rs) Middle (Rs. 8615.7013638.30) 68 34.00

High (> Rs. 13638.30) 52 26.00

Student 136 68.00

House wife 18 9.00


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Occupation Business 6 3.00

Government employee 24 12.00

Private 16 8.00

Note : AG1

Age group 1 (Below 20 years)AG2Age group 2 (21-40 years)

AG3Age group 3 (41-60 years)

AG4Age group 4 (>60 years)


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4.1.2 Brand awareness of consumers about biscuits among different age

groups

Table 4.2 presents the brand awareness of consumers about biscuits

among different age groups which is also represented in Fig. 1. Majority of the

respondents (99.00%) were aware of Parle-G brand followed by Marie gold

biscuits (97.00%), 96.00 per cent each were conscious of Tiger biscuits, Good

day and Krack jack, 81.00 per cent of the respondents knew Glucose brand.

Britannia 50-50 and Hide and seek brands were very popular among 80.00 per

cent each of the respondents, 78.00 per cent, 70.00 per cent, 64.00 per cent,

62.00 per cent and 56.00 per cent of the respondents knew Parle Monaco,

Britannia little hearts, Sunfeast glucose, Sunfeast snacky and Britannia Time

pass brands respectively. Only a small percentage of the respondents were

familiar with Chocolate chip cookies (43.00%).

Among age group one (AG1) cent per cent each of the respondents were

aware of Parle-G, Good day and Krack jack brands, while brands of Tiger

biscuits and Marie gold biscuits were popular among 96.87 per cent each of the

respondents. Glucose biscuits, Hide and seek, Parle Monaco and Sunfeast

glucose brands were known to 84.37 per cent, 78.12 per cent, 75.00 per cent and

71.87 per cent of respondents, 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.


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4.1.3 Brand awareness of consumers about chips among different age

groups

Brand awareness of consumers about chips among different age groups is

depicted in Table 4.3 and Fig.2. Most of the respondents were aware of Lays

(96.00%), Uncle chips (83.00%), Bingo (67.00%), Haldiram chips (63.00%),

Lehar (50.00%), Lip chips (35.00%) brands and less percentage of the

respondents knew Diamond chips (32.00%) brand. 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, Uncle chips, Lip chips, Diamond chips and Lehar chips

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 Haldiram brands.

More than half of the respondents of AG2 and AG3 were conscious of

Lehar brand. Uncle chips and Bingo brands were familiar among more than

70.00 per cent of the AG2 and AG3 respondents. In addition to these brands,

Haldiram 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 Lip chips and Diamond

chips among AG2. In case of AG3 Lip chips and Diamond chips were well

known to 11.11 per cent each of the respondents. Fifty per cent of the

respondents were aware of Uncle chips 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

Haldiram, Lip, Diamond and Lehar brands of chips.

4.1.4 Brand awareness of consumers about fruit juice among different agegroups

Table 4.4 and Fig. 3 reveals the brand awareness of consumers about fruit


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juice among different age groups. Frooti brand was very popular i.e., 96.00 per

cent of respondents were aware, followed by Maaza brand (93.00%), Slice

(87.00%), Appy (76.00%), Real fresh (62.00%), Pulpy orange (58.00%) and

Tropicana twister (44.00%) at the overall level. Cent per cent of the respondents

of AG1 and AG4 were conscious of Frooti brand. About 62.50, 78.12, 46.87 and

50.00 per cent of the respondents were aware of Real fresh, Appy, Tropicana

twister and Pulpy orange brands among AG1 respondents. Maaza and Slice


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brands were well known to 96.87 per cent each of the respondents. Among AG2,

majority of the respondents were familiar with Frooti and Maaza brands (94.54%

each). Slice, Appy, Pulpy orange and Real fresh brands were familiar among

85.45, 83.63, 69.09 and 63.63 per cent of the respondents. About 49.09 per cent

of the respondents were aware of Tropicana twister brand. All the respondents of

AG3 were conscious of Maaza brand. Frooti, Slice and Real fresh brands were

familiar among more than 70.00 per cent of respondents. Less percentage of the

respondents were aware of Tropicana twister brand (22.22%). Among AG4 only

25.00 per cent each of the respondents knew Maaza and Slice brands. It was also

observed from the table that Real fresh, Appy, Tropicana twister and Pulpy

orange brands were not known to any of the respondents of AG4.

4.1.5 Brand awareness of consumers about ice creams among different agegroups

Brand awareness of consumers about ice creams among different age

groups is presented in Table 4.5 and Fig. 4. It could be seen from the table that

majority of the respondents were aware of Amul brand (99.00%), followed by

Arun, MTR and Nandini (66.00% each), 62.00 per cent were aware of Kwality

walls, Vadilal (56.00%), Dairy day (49.00%), Hangya (39.00%) and 25.00 per

cent of them were conscious of Dinshaws brand. All the respondents of AG1,

AG2 and AG4 were aware of Amul brand. About 68.75 per cent each were

aware of Arun and Nandini brands, MTR and Vadilal brands were known to

56.25 per cent each of the respondents, 50.00 per cent each of them were aware

of Kwality walls and Dairy day brands. Hangya and Dinshaws brands were

known to 40.62 per cent and 25.00 per cent respectively. In case of AG2, 72.72

per cent each were conscious of MTR and Kwality walls brands. More than half

of the respondents were familiar with Arun, Nandini and Vadilal barnds. Only

21.81 per cent of the respondents knew Dinshaws brand. Among AG3, majority

of the respondents were aware of Amul and MTR brands (88.88% each)

followed by Nandini (77.77%), Arun, Kwality walls, Vadilal, Dairy day and


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Dinshaws brands were familiar among more than half of the respondents. Only

44.44 per cent of the respondents of AG3 were conscious of Hangya brand. In

case of AG4, Arun, Vadilal and Dairy day brands were known to 25.00 per cent

each of respondents and none of them were aware of MTR, Nandini, Kwality

walls, Hangya and Dinshaws brands.

4.1.6 Influence of media to create awareness about the brands

Influence of media to create awareness about the brands in the study area

were analysed and depicted in Table 4.6. It was observed from the table that, in

case of biscuits television was the major source for getting information about the

brands (92.00%). This was followed by newspapers (66.00%), friends/relatives

(51.00%), shopkeeper or retailer (48.00%), window display (43.00%), magazines

(39.00%) and radio (20.00%).

In case of other products i.e., chips, fruit juice and ice creams, majority of

the respondents were influenced by television (93.00%, 86.00% and 81.00% of

the respondents for chips, fruit juice and ice creams respectively) followed by

friends/relatives (62.00%, 59.00% and 64.00% of the respondents for chips, fruit

juice and ice creams respectively) and newspapers (57.00%, 56.00% and 62.00%

of the respondents for chips, fruit juice and ice creams respectively). Radio was

the least preferred media for brand awareness of these products (10.00%, 13.00%

and 12.00% of the respondents for chips, fruit juice and ice creams respectively).

Overall, television was preferred as the major source of information for brand

awareness (26.13%) followed by newspapers and friends/relatives (17.89% and

17.52% respectively). About 12.62 per cent of the respondents were influenced

by shopkeeper / retailer, 11.06 per cent by magazines, 10.69 per cent by window

display and very few of the respondents i.e., 4.08 per cent were influenced by

radio (Fig. 5).


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Table 4.2. Brand awareness of consumers about biscuits among different age groups

Age group

Brands

AG1 AG2 AG3 AG4 Overall

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

ParleG 64 (100.00) 108 (98.18) 18 (100.00) 8 (100.00) 198 (99.00)

Tiger biscuits 62 (96.87) 106 (96.36) 16 (88.88) 8 (100.00) 192 (96.00)

Marie gold 62 (96.87) 106 (96.36) 18 (100.00) 8 (100.00) 194 (97.00)

Britannia 50-50 42 (65.62) 100 (90.90) 14 (77.77) 4 (50.00) 160 (80.00)

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

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

Good day 64 (100.00) 108 (98.18) 16 (88.88) 4 (50.00) 192 (96.00)

Krack jack 64 (100.00) 106 (96.36) 16 (88.88) 6 (75.00) 192 (96.00)

Hide & seek 50 (78.12) 94 (85.45) 14 (77.77) 2 (25.00) 160 (80.00)

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

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

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

Parle Monaco 48(75.00) 92 (83.63) 14 (77.77) 2(25.00) 156 (78.00)


61/186

Britannia little hearts 40(62.50) 88 (80.00) 12 (66.66) - 140 (70.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents

in the category.


62/186


63/186

ta fe

ai n fe

rn

B uS u

S

y k k e s s o tsa c e s ie s c r

d ja e o k a a ad k s c o p n e

o c&

luo e o h

o aG c im M le

Gr e p t

K id i T le liH h a r

ca ia

te in P nla n n

ata

o itr i

cB ro B

hBrands C

Fig. 1. Brand awareness about biscuits among consumers (overall)

Fig. 1. Brand awareness about biscuits among consumers (overall)


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Table 4.3. Brand awareness of consumers about chips among different age groups

Age group

BrandsAG1 AG2 AG3 AG4 Overall

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

Uncle chips60 88 14 4 166

(93.75) (80.00) (77.77) (50.00) (83.00)

Bingo38 80 14 2 134

(59.37) (72.72) (77.77) (25.00) (67.00)

Lays64 106 16 6 192

(100.00) (96.36) (88.88) (75.00) (96.00)

Haldiram chips38 78 10

-126

(59.37) (70.90) (55.55) (63.00)

Lip chips28 40 2

-70

(43.75) (36.36) (11.11) (35.00)

Dimond chips22 40 2

-64

(34.37) (36.36) (11.11) (32.00)

Lehar32 58 10

-100

(50.00) (52.72) (55.55) (50.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents in

the category.


65/186

100

90

80

70

60

50

40

30

20

10

0


66/186

9

6

8

3

6

7

6

3

50

352

Uncle chips Bingo Lays Haldiram chips Lip chips Diamond chips Lehar

Brands

Fig. 2. Brand awareness about chips among consumers (overall)

Fig. 2. Brand awareness about chips among consumers (overall)


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Table 4.4. Brand awareness of consumers about fruit juice among different age groups

Age group

BrandsAG1 AG2 AG3 AG4 Overall

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

Real fresh40 70 14

-124

(62.50) (63.63) (77.77) (62.00)

Frooti 64 104 16 8 192

(100.00) (94.54) (88.88) (100.00) (96.00)

Appy50 92 10

-152

(78.12) (83.63) (55.55) (76.00)

Maaza62 104 18 2 186

(96.87) (94.54) (100.00) (25.00) (93.00)

Tropicana twister30 54 4

-88

(46.87) (49.09) (22.22) (44.00)

Pulpy orange32 76 8

-116

(50.00) (69.09) (44.44) (58.00)

Slice 62 94 16 2 174


68/186

(96.87) (85.45) (88.88) (25.00) (87.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents

in the category.


69/186

9693

10087

9076

80

7062

58

60

4450

40

30

20

10

0

Real fresh Frooti Appy Maaza Tropicana Pulpy orange Slice

twister

Brands


70/186

Fig. 3. Brand awareness about fruit juice among consumers (overall)

Fig. 3. Brand awareness about fruit juice among consumers (overall)


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Table 4.5. Brand awareness of consumers about ice creams among different age

groups

Age group

Brands AG1 AG2 AG3 AG4 Overall

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

Amul64 110 16 8 198

(100.00) (100.00) (88.88) (100.00) (99.00)

Arun44 76 10 2 132

(68.75) (69.09) (55.55) (25.00) (66.00)

MTR 36 80 16 - 132

(56.25) (72.72) (88.88) (66.00)

Nandini44 74 14

-132

(68.75) (67.27) (77.77) (66.00)

Kwality walls32 80 12

-124

(50.00) (72.72) (66.66) (62.00)

Hangya26 44 8

-78

(40.62) (40.00) (44.44) (39.00)

Vadilal36 62 12 2 112

(56.25) (56.36) (66.66) (25.00) (56.00)

Dairy day32 54 10 2 98

(50.00) (49.09) (55.55) (25.00) (49.00)


72/186

Dinshaws16 24 10

-50

(25.00) (21.81) (55.55) (25.00)

Note : Figures in parentheses indicate the percentage to the total number of respondentsin the category.


73/186

99

100

90

80

66 66 66

70 62

566050 49

39

40

2530

20


74/186

10

0

Amul Arun MTR Nandini Kwality walls Hangya Vadilal Dairy day Dinshaws

Brands

Fig. 4. Brand awareness about ice creams among consumers (overall)

Fig. 4. Brand awareness about ice creams among consumers (overall)


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Table 4.6. Influence of media to create awareness about the brands

(N = 200)

Products

Source Overall

Biscuits Chips Fruit juice Ice creams

Television 184 (92.00) 186(93.00) 172(86.00) 162(81.00) 704 (26.13)

Radio 40 (20.00) 20(10.00) 26(13.00) 24(12.00) 110 (4.08)

Newspapers 132 (66.00) 114(57.00) 112(56.00) 124(62.00) 482 (17.89)

Magazines 78 (39.00) 64(32.00) 76(38.00) 80(40.00) 298 (11.06)

Friends/relatives 102(51.00) 124(62.00) 118(59.00) 128(64.00) 472 (17.52)

Shopkeeper/retailer 96(48.00) 82(41.00) 74(37.00) 88(44.00) 340 (12.62)

Window display 86(43.00) 68(34.00) 68(34.00) 66(33.00) 288 (10.69)

Total = 2694 (100.00)


76/186

Note : Figures in the parentheses indicate percentage to the total sample size.


77/186

4.2 PURCHASE BEHAVIOUR OF CONSUMERS

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

The data on buyers and non buyers of ready-to-eat food products in the

study area is presented in Table 4.7. The table revealed that biscuits were

consumed by all the respondents in the study area. Hundred per cent each of the

respondents across all the age groups consumed biscuits. About 92.00 per cent of

the respondents purchased chips for consumption and remaining 8.00 per cent of

them were not buying. In case of AG1, chips were consumed by all the

respondents. About 98.18 per cent of the respondents of AG2 bought chips for

consumption. Among AG3, 66.66 per cent of them were buying chips forconsumption and remaining 33.33 per cent of them were non buyers. Fruit juice

was bought by 93.00 per cent of the respondents and remaining 7.00 per cent of

them were not buying. Hundred per cent, 96.36 per cent and 88.88 per cent of the

respondents of AG1, AG2 and AG3 respectively consumed fruit juice. Fruit juice

was not consumed by 3.63 per cent and 11.11 per cent of the respondents of AG2

and AG3 accordingly. Ice creams were consumed by 94.00 per cent of the

respondents and remaining 6.00 per cent of them were not consuming.

About 96.87, 98.18 and cent per cent of the respondents of AG1, AG2

and AG3 consumed ice creams. Only a meagre per cent of the respondents of

AG1 (3.12%) and AG2 (1.81%) did not consume ice creams. All the respondents

of AG4 were non-buyers of chips, fruit juice and ice creams.

4.2.2Reasons for purchasing ready-to-eat food products

An attempt was made to elicit the factors considered by the respondents

for purchase of ready-to-eat food products in Hubli and Dharwad cities. It was

noticed from the Table 4.8 that the major factors considered while purchasing

biscuits were convenience to use as snacks (65.00%), liking of the family

members (60.00%) and ready availability (53.00%). The other reasons for the


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purchase of biscuits were taste, satisfaction, easy availability in the shops, save

time of preparation and influence of friends/relatives (46.00%, 43.00%, 39.00%,

23.00% and 15.00% respectively). Taste was the main reason for purchasing

chips (80.43%). The other factors considered while purchasing chips were

convenience to use as snacks (64.13%), satisfaction (52.17%), ready availability

(46.73%), save time of preparation (39.13%), influence of friends/relatives

(36.95%), liking of the family members (31.52%) and easy availability in the

shops (26.08%). Only a meagre percentage of the respondents said other reasons

(1.08%) like habit of eating and time pass. Fruit juice was consumed mainly

because of taste (59.13%) followed by ready availability (55.91%), save time of

preparation (49.46%), satisfaction (47.31%), influence of friends or relatives

(44.08%), liking of the family members (36.55%), convenience to use (26.88%)and easy availability in the shops (15.05%). Only 9.67 per cent of the

respondents said they consume fruit juice because of its nutritive value and good

for health. In case of ice creams, 61.70 per cent of the respondents consume

because of its taste, 55.31, 44.68, 39.36, 34.04, 27.65, 25.53 and 13.82 per cent

of the respondents opined that satisfaction, influence of friends/relatives, liking

by the family members, ready availability, save time of preparation, easy

availability in the shops and convenience to use respectively were the factors

responsible for purchasing ice creams.

4.2.3Reasons for not purchasing ready-to-eat food products

Reasons for not purchasing ready-to-eat food products, as opined by the

respondents are presented in Table 4.9. It was revealed from the table that, there

was no reason for the respondents for not purchasing biscuits. That is the

researcher could not find anybody who disliked the product. Cent per cent of the

respondents did not purchase chips since they were health conscious. About

62.50 per cent of the respondents did not purchase due to low quality of the

product. The other reasons for not consuming chips were dislike towards the

product and high price (50.00% each). In the case of fruit juice majority of the

respondents (85.71%) were not purchasing this product because they preferred


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home made products. The other reasons for not purchasing fruit juice were high

price (71.42%), dislike towards the product (42.85%) and 28.57 per cent of them

did not purchase because of its low quality. In case of ice creams cent per cent of

the respondents did not purchase because they disliked the product, 66.66 per

cent of them were not using this product because they were health conscious and

33.33 per cent of the respondents quoted other reason like allergy to cold.


80/186

High price and low quality were the reasons for not consuming ice creams by

16.66 per cent each of the respondents.

4.2.4Monthly expenditure of households on food items

The monthly average expenditure of the households is presented in Table

4.10 and Fig.6. It could be seen from the table that the households monthly

expenditure increased with increase in monthly income. The average monthly

expenditure on ready-to-eat food products was found to be highest in case of

high income group (Rs.423.07), followed by middle income group (Rs. 298.52)

and low income group (Rs.224.00). On an average Hubli and Dharwad

consumers spend Rs. 301.10 per month on ready-to-eat food products which was

around 14.00 per cent of their monthly consumption expenditure. Similar trend

was noticed with respect to other food items like cereals, pulses, fats and oils,

fruits and vegetables and milk and milk products. With respect to total monthly

expenditure, it was Rs. 2747.60 in high income group, Rs. 2331.35 in middle

income group and Rs. 1566.00 in low income group.

Among the three income groups studied high income group spend moreproportion (15.39%) of their monthly consumption expenditure on ready-to-eat

food products, while low income group spend 14.30 per cent of their monthly

consumption expenditure. It was surprising to see the consumption expenditure

of middle income group on ready-to-eat food products, where in they spend only

12.80 per cent of their monthly expenditure on ready-to-eat food products.

4.2.5Monthly expenditure of households on ready-to-eat food

products

The monthly average expenditure of households on ready-to-eat food

products is presented in Table 4.11 and Fig.7. The average monthly expenditure

on biscuits was found to be highest in case of high income group (Rs. 128.38)


81/186

followed by middle income group (Rs.82.94) and low income group (Rs. 60.70).

Similar trend was noticed with respect to other products like chips, fruit juice

and ice creams. On an average Hubli and Dharwad consumers spend about Rs.

85.86 on biscuits, Rs.41.75 on chips, Rs. 57.80 on fruit juice and Rs. 58.70 on

ice creams monthly.

The analysis of expenditure on ready-to-eat food products revealed that,

on an average the consumers of Hubli-Dharwad spend maximum on biscuits

(35.17%) followed by ice creams (24.04%), fruit juice (23.67%) and chips

(17.10%) out of their monthly expenditure on ready-to-eat food products.

Among the income groups studied, high income group spend the maximum on

biscuits (35.51%) followed by ice creams (26.44%), fruit juices (22.55%) and

chips (15.48%) out of their total consumption on ready-to-eat food products.

While middle income group after spending maximum on biscuits (34.45%), next

they preferred fruit juice (25.71%), ice creams (20.70%) and least was on chips

(19.11%). The expenditure of low income group followed the pattern of high

income group in the order of their spending on ready-to-eat food products.

4.2.6Frequency and place of purchase

Table 4.12 shows the f

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