Summer project report

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Summer project report

  1. 1. SUMMER PROJECT REPORT On CONSUMER BEHAVIOUR TOWARDS READY- TO-EAT FOOD 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 (3rd Semester 2012 – 2014)
  2. 2. 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 for guiding 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 support and guidance. Thanks and appreciation to the helpful people at Rural Outreach Private Limited for 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.
  3. 3. DECLARATION I hereby declare that the project work entitled „„CONSUMER BEHAVIOURTOWARDS” READY- TO-EAT FOOD PRODUCTS submitted to the ICCMRT, is a record of an original work 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
  4. 4. CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT FOOD PRODUCTS
  5. 5. CONTENTS Sl. No. Chapter Particulars CERTIFICATE ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES LIST OF APPENDICES 1 INTRODUCTION 2 REVIEW OF LITERATURE 2.1 2.2 Purchase behaviour of consumers 2.3 Brand preference 2.4 Factors influencing brand preference 2.5 3 Awareness of consumers towards branded products Alternative purchase plans METHODOLOGY 3.1 Description of study area 3.2 Sampling design and data collection 3.3 Analytical tools employed in the study
  6. 6. 4 RESULTS 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 4.4 Factors influencing brand preference. 4.5 5 Brand preference of the consumers. Alternative purchase plans of the consumers. DISCUSSION 5.1 Awareness of consumers towards branded ready-to-eat food products. 5.2 Purchase behaviour of consumers towards ready to eat food products. 5.3 5.4 Factors influencing brand preference. 5.5 6 Brand preference of the consumers. Alternative purchase plans of the consumers. SUMMARY AND POLICY IMPLICATIONS
  7. 7. Sl. No. 7 Chapter Particulars REFERENCES APPENDICES ABSTRACT
  8. 8. LIST OF TABLES Table Title 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
  9. 9. 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
  10. 10. Table Title 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
  11. 11. LIST OF FIGURES Figure Title 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
  12. 12. LIST OF APPENDICES Appendix Title No. 1 Questionnaire
  13. 13. 1. INTRODUCTION There is nobody in the world who is left out of the class of consumers. The consumer-hood continues till one‟s last breath in the world. The consumer purchases a variety of goods and services to satisfy his wants and he is always influenced in his purchasing activities by some considerations which lead him to select a particular commodity or a particular retail store in preference to others. So, consumer buying is more complex. Consumer purchases are likely to be influenced by physiological, psychological and sociological factors. The commodities and services are brought by the consumer to satisfy his basic needs, for comfort, pleasure, recreation and happiness. Every individual has physiological need such as hunger, shelter, thirst, etc., which have to be satisfied for survival. The psychological factors like status prestige and social factors like friends, neighbours, job and relatives influence their purchasing activities. People bear certain beliefs and attitudes towards certain types of goods, brands of commodities and retail outlets based on their previous experience. When there is a need, they are able to discover some new commodities capable of satisfying their needs. Before the commodities and brands are selected, these commodities must compete successfully against alternatives in the market. The selection of a particular commodity becomes important for consumer since there are wide varieties of consumer goods in the market. Again selection of a particular commodity depends on income of the consumer and necessity of the product to the individual. Before the selection of the commodity purchased, an individual requires information regarding the various sources of supply of the commodity, its brands, relative merits and demerits, uses and value of their characteristic features and services offered. The common sources through which individual gathers information are from advertising media (television, radio and news papers), friends, retailers in the locality, displays in shops and food labels. India is one of the largest food producers of the world with the organised sector accounting for food output worth US $34827 million, only a small percentage of its farm produce is
  14. 14. processed into value-added products. For instance, even though the country is the second largest producer of fruits and vegetables, hardly two per cent of the production is processed. This underlines the enormous scope for investing in the processed food sector in the areas of infrastructure, packaging and machinery. India, in fact, needs US $28 billion of investment to raise its food processing levels by 8-10 per cent.The potential for investment in this sector is further accentuated by the following factors: • A huge and exponentially growing demand represented by a market of one billion people spending on an average about 50 per cent of household expenditures on food coupled by a scenario of rapid urbanization and changing lifestyles. • A 30 million upper and middle class segment of the total population consume processed and packaged food with another 200 million people, projected to shift to this group by 2010. Thanks largely to rapid urbanization and changing lifestyles. • Well-developed infrastructure and distribution network. • Increase in per capita income and purchasing power. • Large pool of scientific, technical and skilled manpower. • Introduction of series of investment friendly initiatives by the Government including strengthening and augmenting of road and rail network, modernization of ports, prioritization of infrastructure for post harvest management, logistics (including cold chain), markets, retailing, food processing. • Introduction of a number of liberal policy initiatives by the Government to boost food processing activities.
  15. 15. • 53 food parks approved to enable small and medium food and beverage units to set up and to use capital intensive common facilities such as cold storage, warehouse, quality control labs, effluent treatment plant, etc.
  16. 16. 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
  17. 17. 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 fiveyear 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
  18. 18. 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.
  19. 19. 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.
  20. 20. 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 readyto-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
  21. 21. 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-toeat 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. Consumer‟s taste and preference were found to change rapidly, especially in a dynamic environment. Keeping in view the importance of consumer behaviour and consumption pattern, the present study was under taken with the following objectives.
  22. 22. Objectives of the study The specific objectives of the study were: i. To ascertain the awareness of consumers towards branded ready-to-eat food products. ii. To study the purchase behaviour of ready-to-eat food products. iii. To evaluate brand preference of the consumers. iv. To study the factors influencing brand preference. v. To evaluate alternative purchase plans of the consumers. 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
  23. 23. 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.
  24. 24. 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 preference 2.4 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 lowinvolvement 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.
  25. 25. 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 „fast food‟ type and consequently the food habits of many young consumers may fuel the consumption of poorly nutritionally balanced meals. While young consumers were aware of healthy eating, their food preference behaviour did not always appear to reflect such knowledge, particularly within the school and social environments. Beverland (2001) studied the level of brand awareness within the New Zealand market for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi fruit, New Zealand was studied. The implications of the findings for agribusiness in general using the data collected from surveys of kiwi fruit consumers (n=106) outside three major super market chains in Auckland, New Zealand, suggested that the level of brand awareness for ZESPRI is low among consumers. It is indicated that brand awareness could be increased through a relationship- making programme involving targeted marketing and supply chain management. Chen (2001) expressed a different thought on brand awareness that it was a necessary asset but not sufficient for building strong brand equity. In this view, a brand could be well known because it had bad quality. Yee and Young (2001) aimed to create awareness of high fat content of pies, studied consumer and producer awareness about nutrition labeling on
  26. 26. 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 awareness among 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.
  27. 27. . 2.2 PURCHASE BEHAVIOUR OF CONSUMERS Balaji (1985) studied fish consumption behaviour of 526 consumers in Vishakapatnam city. The study revealed that 77.00 per cent of respondents consumed fish for dinner and 22.00 per cent for lunch. About 30.00 per cent of the respondents did not consume fish on festival days, as those days were considered auspicious, while the rest had no notations and consumed fish, irrespective of festivals. Jorin (1987) examined changes in spending power and buying habits of Swiss consumers since the beginning of the 20th century and in the more recent past. Current trends include greater emphasis on health and safety of foodstuffs and less attention to price, increased demand for low calorie light products and increased demand for organically grown foods. For young people, more concern with enjoyment and less for health, with more meals eaten from home and generally an increased demand for convenience foods. The prospects for high quality branded products were seen to be good. Puri and Sanghera (1989) conducted a study to know the consumption pattern of processed products in Chandigarh. Jam was found to be most popular, irrespective of income. Orange squash consumption was maximum in high and middle – income families. Pineaaple juice consumption increased with a rise in the income. Rees (1992), in his study revealed that factors influencing the consumer‟s choice of food were flavour, texture, appearance, advertising, a reduction in traditional cooking, fragmentation of family means and an increase in „snacking‟.etc. Demographic and household role changes and the introduction of microwave ovens had produced changes in eating habits. Vigorous sale of
  28. 28. 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)
  29. 29. 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
  30. 30. 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.
  31. 31. 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.
  32. 32. 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
  33. 33. 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.
  34. 34. Veena (1996) studied brand switching and brand loyalty of processed fruit and vegetable products in Karnataka state by using Markov Chain analysis. The result of the study revealed that Maggi, Sil and Kissan were having market retention of 74.20, 55.78 and 48.74 per cent, respectively for jam products. The equilibrium shares determined in order to predict future market position among the different brand showed that in long run shares of Kissan, Rex. Other brands were likely to decline, mainly on account of increased market shares of Gala, Sil and Maggi. Padmanabhan (1999) conducted study on brand loyalty, which revealed that the price of the preferred brand, efficiency of the preferred brand and influence of advertisement significantly influenced the brand loyalty. Only when the price of a particular brand is comparatively low, the farmers would naturally prefer to low priced brand. Otherwise farmers would naturally continue to purchase the same brand Low and Lamb Jr. (2000) came out with an interesting conclusion that well known brands tend to exhibit multi-dimensional brand associations, consistent with the idea that consumers have more developed memory structures for more familiar brands. Consumers might be willing to expend more energy in processing information regarding familiar brands compared to unfamiliar brands. Kamenidou (2002) presented the findings on the purchasing and consumption behaviour of Greek households towards three processed peach products: canned peaches in syrup, juice and peach jam. The results revealed that 47.50 per cent of the households purchased canned peaches in syrup, 67.40 per cent purchased peach juice and 42.60 per cent purchased peach jam. Reasons for such purchase were satisfactory taste and qualities and household‟s perception that they were healthy products. The results also indicated that the consumption quantities were considered low, while households usually purchased the same brand name, meaning that there was a tendency for brand loyalty.
  35. 35. Sampathkumar (2003) studied about brand preference in soft drinks in Telangana region of Andra Pradesh. He found that in rural market about 37.50 per cent of consumers preferred Thumbs-up (urban 30%), followed by Coca cola (28.50%) (urban 37.50%), Pepsi 12.50 per cent (urban 9.00%), Limca (4.00%) (urban 8.50%). Most of the urban consumers (67.00%) purchased soft drinks in nearest Kirani stores (rural 73.00%), followed by super bazaar (27.00%) (rural 26.00%) and others (6.00%) (rural 1.00%). The method of physical distribution played very vital role in company‟s success and failure in the market. Transportation was among the major functions of physical distribution. Transport adds time and place utility for the product. 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
  36. 36. . 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.
  37. 37. Raj Reddy and Pruthviraju (1999) studied about buying motives of rural consumers about seeds and different sources of information about brands with regard to seeds. It was found that factors influencing brand loyalty of farmers were dealer‟s suggestions, quality 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
  38. 38. 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 child‟s insistence affects family‟s buying behaviour. Children are highly aware and conscious of branded items. Although unbranded products sometimes give same satisfaction as branded products, customers would still prefer to purchase a branded product 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.
  39. 39. . 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.
  40. 40. 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
  41. 41. the brands available and preferred in the study area to gather information on the products to be selected for the study. Based on the discussions, the most commonly available and used products in the study area were selected. The particular products were selected in such a way as to represent one product from each food group like cereals, fruits, vegetables and milk and milk products. The products selected for the study were as follows: • Cereal based – Biscuits • Fruit based – Fruit juices • Vegetable based – Chips • Milk & milk products based – Ice 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
  42. 42. Age Group 2 (AG2) – Between 21 – 40 years Age Group 3 (AG3) – Between 41 – 60 years Age Group 4 (AG4) – Above 60 years Income The respondents were post classified into three income groups based on their income by using the formula:
  43. 43. Mean ±0.425 x S.D. Low income – Below Rs. 8615.70 per month. Middle income – Between Rs. 8615.70 to Rs. 13,638.30 per month. High income – Above Rs. 13,638.30 per month. Collection of data To study the objectives, required data were collected from primary as well as secondary sources. Primary data The data required for the study were collected from the respondents by personal interview method with the help of pre-structured questionnaire. The respondents were interviewed at retail outlets, departmental stores, bakeries and even at the homes. The questionnaire consisted of: Part I : General information like name, age, education, sex, occupation, food habit, family income and family type. Monthly expenditure on food items in general and ready- to- eat food products in particular. 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
  44. 44. of purchase, nature of purchase decision, place of purchase, influencers of purchase decision, brand preference, factors influencing to prefer particular brand and alternative purchase plans of the consumers. Secondary data The secondary data on location, demography and regarding population of the study area were collected from District Statistical Office and published sources. 3.3 ANALYTICAL TOOLS USED The data collected for the study was processed and analyzed by using suitable statistical techniques. Frequency, percentage, mean, standard deviation and Garret‟s ranking techniques were used to present the collected data. A detailed description of the analytical tools employed in the study is presented below. 3.3.1 Tabular Analysis Percentage analysis was used to study the socio economic characteristics like age, education, occupation, family size, family type, consumer awareness towards branded ready-to- eat food products, sources of information for brand awareness, frequency of purchase, nature of purchase decision, place of purchase, influencers of purchase decision and alternative purchase plans of the consumers. 3.3.2 Garrett’s Ranking Technique
  45. 45. Garrett‟s 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
  46. 46. 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 (Rij – 0.5)/Nj. Where, Rij stands for rank given for the ith factor by the jth individual. Nj stands for number of factors ranked by jth individual. The per cent position value for the same assigned ranks by the respondents as follows. Respondent Factors No. 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 III – For each per cent position scores were obtained with reference to Garrett’s tables and each per cent position value was converted into scores by reference to Garrett’s Table. Eg: Garrett’s table scores for the per cent position values as follows Respondent Factors No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 - 52 82 70 30 18 - - 57 63 - 37 - 42 47
  47. 47. 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 stage – Summation 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
  48. 48. In the fifth stage – Mean 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 63 62 53.50 24 18 47 63.50 73.66 63 39 33.50 30 65.33 52 Mean 56.33 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 VI V VII XIII XIV Ranks IV IX III I IV X XI XII II VIII
  49. 49. 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. 4.5 Alternative purchase plans of the consumers. 4.1 AWARENESS OF CONSUMERS TOWARDS BRANDED READY-TO-EAT FOOD PRODUCTS To know the awareness, it is necessary to study socio-economic characteristics of the consumers, as these are the important variables, which decide the consumption pattern of food products in the family. Generally it is believed that, as the income, age and education of the consumers increase, the expenditure on consumption of food products also increases. Hence, the consumers‟ socio-economic characteristics were studied and the results are presented hereunder. 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
  50. 50. AG1 and 9 per cent of them were between the age of 41 to 60 years (AG3). Very few per cent of the respondents were above 60 years (4.00%) and they belonged to the age group 4. Among the total respondents 61.00 per cent of them were female and remaining 39.00 per cent of them were male. Maximum number of the selected respondents were degree holders (44.00%), 30.00 per cent of them were of PUC level, 14.00 per cent of the respondents were post graduates and 10.00 per cent of them were of high school level. Very less percentage of the respondents were of primary school level (2.00%). It was also observed from the table that none of the respondents were illiterates. Most of the respondents belonged to nuclear families (89.00%) and remaining 11.00 per cent of them were living in joint families. Maximum number of respondents (44.00%) belonged to the medium family size of 5-7 members. This was followed by family size of less than 5 members (41.00%) i.e., small family and 15.00 per cent of them belonged to large family (more than 7 members). Among the selected samples 73.00 per cent of them were vegetarians and remaining 27.00 per cent were non-vegetarians. Most of the respondents (40.00%) belonged to low income group (<Rs. 8615.70/month), 34.00 per cent of them belonged to middle income group (Rs. 8715.70 – 13,638.30/month) and remaining 26.00 per cent of them were belonged to high income group (> Rs. 13638.30/month).
  51. 51. 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%).
  52. 52. Table 4.1. General information of selected samples in Hubli and Dharwad (N = 200) General information Categories No. of Percentage respondents Below 20 years (AG1) 64 32.00 21-40 years (AG2) 110 55.00 41-60 years (AG3) 18 9.00 >60 years (AG4) 8 4.00 Male 78 39.00 Female 122 61.00 Illiterate - - Primary school 4 2.00 High school 20 10.00 PUC 60 30.00 Degree 88 44.00 PG 28 14.00 Joint 22 11.00 Nuclear 178 89.00 Small (below 5) 82 41.00 Medium ( 5-7) 88 44.00 Large (more than 7) 30 15.00 Vegetarian 146 73.00 Non - vegetarian 54 27.00 Low (< Rs. 8615.70) 80 40.00 Middle (Rs. 8615.70 – 13638.30) 68 34.00 High (> Rs. 13638.30) 52 26.00 Student 136 68.00 House wife 18 9.00 Age Sex Education Family type Family size Food habit Monthly income (Rs)
  53. 53. Occupation Business 6 3.00 Government employee 24 12.00 Private 16 8.00 Note : AG1 – Age group 1 (Below 20 years) AG2 – Age group 2 (21-40 years) AG3 – Age group 3 (41-60 years) AG4 – Age group 4 (>60 years)
  54. 54. 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.
  55. 55. 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 age groups Table 4.4 and Fig. 3 reveals the brand awareness of consumers about fruit
  56. 56. 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
  57. 57. 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 age groups 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
  58. 58. 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).
  59. 59. Table 4.2. Brand awareness of consumers about biscuits among different age groups Age group Brands AG1 (n=64) AG2 (n = 110) AG3 AG4 (n = 18) (n = 8) Overall (N=200) Parle – G 64 (100.00) 108 (98.18) 18 (100.00) 8 (100.00) 198 (99.00) Tiger biscuits 62 (96.87) 106 (96.36) 16 (88.88) 8 (100.00) 192 (96.00) Marie gold 62 (96.87) 106 (96.36) 18 (100.00) 8 (100.00) 194 (97.00) Britannia 50-50 42 (65.62) 100 (90.90) 14 (77.77) 4 (50.00) 160 (80.00) Sunfeast snacky 42 (65.62) 72 (65.45) 10 (55.55) - 124 (62.00) Sunfeast glucose 46 (71.87) 72 (65.45) 10 (55.55) - 128 (64.00) Good day 64 (100.00) 108 (98.18) 16 (88.88) 4 (50.00) 192 (96.00) Krack jack 64 (100.00) 106 (96.36) 16 (88.88) 6 (75.00) 192 (96.00) Hide & seek 50 (78.12) 94 (85.45) 14 (77.77) 2 (25.00) 160 (80.00) Glucose 54 (84.37) 84 (76.36) 16 (88.88) 8 (100.00) 162 (81.00) Chocolate chip cookies 34 (53.12) 44 (40.00) 8 (44.44) - 86 (43.00) Britannia Time pass 34 (53.12) 66 (60.00) 12 (66.66) - 112 (56.00) Parle Monaco 48(75.00) 92 (83.63) 14 (77.77) 2(25.00) 156 (78.00)
  60. 60. 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.
  61. 61. 99 96 100 97 90 96 96 80 80 81 78 80 70 70 62 64 56 50 Percentages 60 43 40 30 20 10 0 s G T ld it – ie s b P ig M lu n g t n n c s ia a e o a 5 r r e s c 0 i a y k -5 g c le r 0 o u s a t s
  62. 62. ta fe y fe r B k k a e s s o ts n i ie n u a S c u e ja S d d e k o a n e e o im c r a p o G c a o & a s k c lu r K o s c o G s h le M p e id t i T h H a c le li r ia a i te n P n n la n a ta it o r c o B i r B h Brands C Fig. 1. Brand awareness about biscuits among consumers (overall) Fig. 1. Brand awareness about biscuits among consumers (overall)
  63. 63. Table 4.3. Brand awareness of consumers about chips among different age groups Age group Brands AG1 AG2 (n=64) AG3 (n = 110) AG4 (n = 18) (n = 8) Overall (N=200) (77.77) (50.00) (83.00) 80 14 2 134 (72.72) (77.77) (25.00) (67.00) 106 16 6 192 (96.36) (88.88) (75.00) (96.00) 38 78 10 (70.90) (55.55) 28 40 2 (43.75) (36.36) (11.11) 22 40 2 (34.37) (36.36) (11.11) 32 58 10 (50.00) Lehar (80.00) (59.37) Dimond chips 166 (100.00) Lip chips 4 64 Haldiram chips 14 (59.37) Lays 88 38 Bingo 60 (93.75) Uncle chips (52.72) (55.55) - 126 (63.00) - 70 (35.00) - 64 (32.00) - 100 (50.00) Note : Figures in parentheses indicate the percentage to the total number of respondents in the category.
  64. 64. 0 100 90 80 70 Perentages 60 50 40 30 20 10
  65. 65. 6 7 6 3 50 Uncle chips Bingo Lays Haldiram chips Lip chips Diamond chips 9 6 8 Brands 35 32 Fig. 2. Brand awareness about chips among consumers (overall) 3 Fig. 2. Brand awareness about chips among consumers (overall) Lehar
  66. 66. Table 4.4. Brand awareness of consumers about fruit juice among different age groups Age group Brands AG1 AG2 (n=64) 40 AG3 (n = 110) 70 AG4 (n = 18) (n = 8) 14 Real fresh Overall (N=200) 124 (62.50) (77.77) 64 104 16 8 192 (100.00) (94.54) (88.88) (100.00) (96.00) 50 Frooti (63.63) 92 10 Appy (62.00) 152 - (78.12) (83.63) (55.55) (76.00) 62 104 18 2 186 (96.87) (94.54) (100.00) (25.00) (93.00) 30 54 4 Maaza Tropicana twister (46.87) (49.09) (22.22) 32 76 8 Pulpy orange (44.00) 116 - (50.00) Slice 88 - (69.09) (44.44) 62 94 16 (58.00) 2 174
  67. 67. (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.
  68. 68. 96 93 100 87 90 76 80 70 62 58 60 44 Percentages 50 40 30 20 10 0 Real fresh Frooti Appy Maaza Tropicana twister Brands Pulpy orange Slice
  69. 69. Fig. 3. Brand awareness about fruit juice among consumers (overall) Fig. 3. Brand awareness about fruit juice among consumers (overall)
  70. 70. Table 4.5. Brand awareness of consumers about ice creams among different age groups Age group Brands AG1 AG2 (n=64) (n = 110) AG3 AG4 (n = 18) (n = 8) Overall (N=200) Dairy day (88.88) (100.00) (99.00) 44 76 10 2 132 (69.09) (55.55) (25.00) (66.00) 36 80 16 (72.72) (88.88) 44 74 14 (67.27) (77.77) 32 80 12 (72.72) (66.66) 26 44 8 (40.00) (44.44) 36 62 12 2 112 (56.25) Vadilal (100.00) (40.62) Hangya 198 (50.00) Kwality walls 8 (68.75) Nandini 16 (56.25) MTR 110 (68.75) Arun 64 (100.00) Amul (56.36) (66.66) (25.00) (56.00) 32 54 10 2 98 (50.00) (49.09) (55.55) (25.00) (49.00) - 132 (66.00) - 132 (66.00) - 124 (62.00) - 78 (39.00)
  71. 71. 16 24 10 (25.00) Dinshaws (21.81) (55.55) - 50 (25.00) Note : Figures in parentheses indicate the percentage to the total number of respondents in the category.
  72. 72. 99 100 90 80 66 70 66 66 62 56 60 Percentages 50 49 39 40 25 30 20
  73. 73. 10 Amul Arun MTR Nandini Kwality walls Hangya Vadilal Dairy day Brands 0 Fig. 4. Brand awareness about ice creams among consumers (overall) Fig. 4. Brand awareness about ice creams among consumers (overall) Dinshaws
  74. 74. 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)
  75. 75. Note : Figures in the parentheses indicate percentage to the total sample size.
  76. 76. 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 for consumption 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. 4.2.2 Reasons for purchasing ready-to-eat food products An attempt was made to elicit the factors considered by the respondents for purchase of ready-to-eat food products 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
  77. 77. 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. 4.2.3 Reasons for not purchasing ready-to-eat food products Reasons for not purchasing ready-to-eat food products, as opined by the respondents are presented in Table 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
  78. 78. 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.
  79. 79. High price and low quality were the reasons for not consuming ice creams by 16.66 per cent each of the respondents. 4.2.4 Monthly 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 more proportion (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. 4.2.5 Monthly 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)
  80. 80. 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. 4.2.6 Frequency and place of purchase Table 4.12 shows the frequency and place of purchase by the respondents. It could be seen from the table that, majority of the respondents purchased biscuits twice in a week from bakeries and departmental stores (70.58% each) and 41.17 per cent each of them purchased from retail outlet. This was followed by once in a week from departmental stores (63.63%), bakeries (57.57%) and 42.42 per cent of the respondents purchased from retail outlets. Most of the respondents purchased chips, fruits juice and ice creams whenever needed. Majority of them purchased chips from bakeries (77.77%) followed by departmental stores (29.62%) and only 24.07 per cent of the respondents purchased from retail outlets. This was followed by fortnightly
  81. 81. purchase of chips from bakeries (93.33%), departmental stores (40.00%) and 20.00 per cent of them purchased from retail outlets. In case of fruit juice, maximum of the respondents purchased from bakeries (50.87%) and least per cent of the respondents purchased from retail outlets (22.80%). This was followed by once in a week purchase from bakeries (53.84%), retail outlets (30.76%), departmental stores (23.07%) and least per cent of the respondents purchased from ice parlors (15.38%). Ice creams were mostly purchased in ice parlour (96.72%), when ever needed. Thirteen per cent of the respondents bought ice creams from bakeries. Very few of them purchased from retail outlets (4.91%) and departmental stores (3.27%). This was followed by once in a week purchase from ice parlors (94.11%), bakeries (23.52%), retail outlets (17.64%) and 11.76 per cent of them purchased from departmental stores.
  82. 82. 4.2.7 Nature of purchase decision Nature of purchase decision among different age groups is presented in Table 4.13. In case of biscuits, among the first two age groups, maximum of the respondents did a planned purchase (71.87% and 61.81% respectively) and only 28.12 per cent and 38.18 per cent of first and second age groups respectively did impulsive buying. But in case of AG3, 55.55 per cent of them did impulsive buying followed by only 44.44 per cent of them went for planned purchase. In the last group, all the respondents planned and purchased biscuits and none of them opted for impulsive buying. Overall, 65.00 per cent of them did planned purchase and only 35.00 per cent of them did go for impulsive buying for biscuits. About 73.91 per cent of the chips buyers did impulsive buying and remaining 26.08 per cent of them did go for planned purchases. Among the first three age groups, majority of the respondents did go for impulsive buying (68.75%, 74.07% and 100.00% of the respondents of AG1, AG2 and AG3 respectively). About 31.25 per cent 25.92 per cent of the respondents of AG1 and AG2 did planned purchase and none of the respondents of AG3 did planned purchase. Among the fruit juice buyers, 55.91 per cent of them planned the purchase of fruit juice and remaining 44.08 per cent of them did go for impulsive buying. Among the first age group most of them planned and purchased fruit juice (68.75%) and only 31.25 per cent of them did go for impulsive buying. In case of AG2, marginally higher per cent of the respondents did impulsive buying (50.94%) followed by planned purchase by 49.05 per cent of the respondents. In case of AG3, 50.00 per cent each of the respondents did go for impulsive buying and planned purchase. In the case of ice creams, among the first age group maximum of the respondents planned and purchased ice creams (64.51%) followed by only 35.48 per cent of them went for impulsive buying. But in case of AG2 and AG3 majority of them did impulsive buying (57.40% and 66.66% respectively), 42.59 per cent and 33.33 per cent of AG2 and AG3 respectively
  83. 83. did planned purchase. Overall, 51.06 and 48.93 per cent of ice cream buyers did go for impulsive buying and planned purchase respectively. 4.2.8 Influence of income on purchase decisions on ready-to-eat food products Table 4.14 shows the influence of income on purchase decisions on ready-to-eat food products. It could be noticed from the table that majority of the respondents took self decision while purchasing biscuits (77.50%, 58.82% and 61.53% of low, middle and high income groups respectively), chips (58.66%, 74.19% and 59.57% respectively) and fruit juice (57.14%, 75.57% and 72.00% respectively). This was followed by children‟s and parent‟s influence in low and other two income groups respectively (52.00%, 51.47% and 38.46%). In case of chips, next to self decision, friends influenced during the purchase in low and high income groups (34.66% and 42.55% respectively) and children‟s influence was 48.38 per cent in the medium income group. The purchase of juice was influenced by friends and parents in low and other two income groups respectively (41.55, 54.23% and 52.00%). In case of ice creams majority of the respondents of low (66.00%) and high income groups (72.00%) took self decision. In the same income groups, children and friends influence the purchase of ice-creams next to self decision (42.85% and 56.00%). However in case of medium income group, friends influence the most (55.88%) followed by self decision (44.11%). 4.2.9 Influence / Impact of education to make purchase decision on ready-to-eat food products Table 4.15 depicts the influence/impact of education to make purchase decision on ready-to-eat food products. It could be seen from the table that majority of the respondents of the education levels of primary school (100.00%), high school (100.00%) and PUC level (73.33%), were influenced by parents
  84. 84. while purchasing biscuits. Most of the respondents of degree holders and post graduates took their own decision while purchasing biscuits (97.72% and 62.28% respectively).
  85. 85. Table 4.7. Buyers and non-buyers of ready-to-eat food products (N= 200) Products Age group Buyers Non-buyers AG1 (n= 64) - AG3 (n= 18) 18 (100.00) - 8 (100.00) - Total (N = 200) 200 (100.00) AG1 (n= 64) 64 (100.00) - AG2 (n= 110) 108 (98.18) 2 (1.81) AG3 (n= 18) 12 (66.66) 6 (33.33) AG4 (n= 8) - 8 (100.00) Total (N = 200) 184 (92.00) 16 (8.00) AG1 (n= 64) 64 (100.00) - AG2 (n= 110) Fruit juice 110 (100.00) AG4 (n= 8) Chips - AG2 (n= 110) Biscuits 64 (100.00) 106 (96.36) 4 (3.63) AG3 (n= 18) 16 (88.88) 2 (11.11) AG4 (n= 8) - 8 (100.00) Total (N = 200) 186 (93.00) 14 (7.00) AG1 (n= 64) 62 (96.87) 2 (3.12)
  86. 86. AG2 (n= 110) 2 (1.81) AG3 (n= 18) 18 (100.00) - AG4 (n= 8) - 8 (100.00) Total (N = 200) Ice creams 108 (98.18) 188 (94.00) 12 (6.00) Note : Figures in the parentheses indicate percentage to the total number of respondents in each age group.
  87. 87. Television Radio Newspapers Magazines Friends/relatives Shopkeeper/retailer Window display 10.69 26.13 12.62 4.08
  88. 88. 17.52 17.89 11.06 Fig.5. Influence of media to create awareness about the brands Fig.5. Influence of media to create awareness about the brands
  89. 89. Table 4.8. Reasons for purchasing ready-to-eat food products by consumers of Hubli – Dharwad Products Reasons Biscuits Chips Fruit juice Ice creams (n=200) (n=184) (n=186) (n=188) 106 86 104 64 (53.00) (46.73) (55.91) (34.04) 92 148 110 116 (46.00) (80.43) (59.13) (61.70) 120 58 68 74 (60.00) (31.52) (36.55) (39.36) 30 68 82 84 (15.00) (36.95) (44.08) (44.68) 78 48 28 48 (39.00) (26.08) (15.05) (25.53) 130 118 50 26 Readily available Taste Liked by the family members Influence of friends or relatives Easily available in the shops Convenient to use for snacks
  90. 90. (65.00) (64.13) (26.88) (13.82) 86 96 88 104 (43.00) (52.17) (47.31) (55.31) 46 72 92 52 (23.00) (39.13) (49.46) (27.65) 2 18 (1.08) (9.67) Satisfaction Save time of preparation Any other - - Note : Figures in parentheses indicate the percentage to the total number of users of the respective product.
  91. 91. Table 4.9. Reasons for not purchasing ready-to-eat food products by consumers of Hubli – Dharwad Products Reasons Biscuits Chips Fruit juice Ice creams (n=0) (n=16) (n=14) (n=12) - - - - 8 6 12 (50.00) (42.85) (100.00) 8 10 2 (50.00) (71.42) (16.66) Lack of awareness of products available in the market Dislike the product High price - -
  92. 92. 10 4 2 (62.50) Low quality (28.57) (16.66) - - - - Not available in the shops - Health conscious - 16 - (100.00) 8 (66.66) 12 - 4 (85.71) Any other (33.33) - Note : Figures in parentheses indicate the percentage to the total number of non-users of the respective product.
  93. 93. Table 4.10. Monthly expenditure of households on food items (Rs./month) Items Income group Low income Middle income Average High income 283.15 541.47 588.46 450.60 (18.08) (22.22) (21.41) (21.12) Pulses 241.50 327.94 398.07 311.60 (15.42) (14.06) (14.48) (14.61) 244.25 314.70 398.46 308.30 (15.59) (13.49) (14.50) (14.45) 261.25 394.11 423.07 348.50 (16.68) (16.90) (15.39) (16.34) 311.25 545.61 516.17 418.30 (19.87) (23.40) (18.78) (19.61) Ready- 224.00 298.52 423.07 301.10 (14.30) (12.80) (15.39) (14.11) 1566.00 2331.35 2747.60 2133.30 (100.00) (100.00) (100.00) (100.00) Cereals Fats and oils Fruits and vegetables Milk and milk products to-eat food products Total Note : Figures in parentheses indicate the percentage
  94. 94. Cereals Pulses Fats and oils Fruits and vegetables Milk and milk products Ready to eat food producs 14.11 21.12 19.61 14.61 16.34 14.45
  95. 95. Fig. 6. Monthly expenditure of households on food items Fig. 6. Monthly expenditure of households on food items
  96. 96. Table 4.11. Monthly expenditure of households on ready-to-eat food products (Rs./month) Items Income group Average Low income Biscuits 60.70 Middle income High income 82.94 128.38 85.86 (34.45) (35.51) (35.17) 46.02 55.96 41.75 (17.01) (19.11) (15.48) (17.10) 38.87 61.91 8153 57.80 (22.91) (25.71) (22.55) (23.67) (35.77) Chips 28.87 Fruit juice
  97. 97. 41.25 58.70 (20.70) (26.44) (24.04) 169.69 240.72 361.44 244.11 (100.00) Total 95.57 (24.31) Ice creams 49.85 (100.00) (100.00) (100.00) Note : Figures in parentheses indicate the percentage
  98. 98. Biscuits Chips Fruit juice Ice creams 24.04 35.17 23.67 17.1
  99. 99. Fig. 7. Monthly expenditure of households on ready-to-eat food products Fig. 7. Monthly expenditure of households on ready-to-eat food products
  100. 100. Table 4.12. Frequency and place of purchase by the respondents Daily (n = 28) R D Twice in a week (n = 68) B I R D Once in a week (n = 66) B I R D B Fortnightly (n = 12) I R D Whenever needed (n = 26) B I R D B I Biscuits (n 200) 22 6 16 (78.57) = (21.42) (57.14) - 28 Daily (n = 2) 48 48 (41.17) (70.58) (70.58) - 28 42 38 (42.42) (63.63) Twice in a week (n = 20) - 6 6 (50.00) (57.57) (50.00) Once in a week (n = 24) - - 20 24 20 (76.92) (92.30) (76.92) Fortnightly (n = 30) - Whenever needed (n = 108) Chips R (n D B I R D B I R D B I R D B I R D B I = 184) - - 2 - 12 Daily (n = 8) R Fruit D 8 18 (60.00) (100.00) (40.00) (90.00) - 10 6 Twice in a week (n = 14) B I R D 22 (41.66) (23.07) - 6 12 28 (20.00) (91.66) (40.00) (93.33) Once in a week (n = 26) B I R D B - 26 32 84 (24.07) (29.62) (77.77) Fortnightly (n = 24) I R D - Whenever needed (n = 114) B I R D B I juice (n = 186) - 4 4 4 4 2 12 6 8 (50.00) (50.00) (50.00) (28.57) (14.28) (85.70) (42.85) (30.76) (23.07) Daily (n = 4) Twice in a week (n = 6) 6 14 4 10 12 12 (53.84) (15.38) (41.66) (50.00) (50.00) Once in a week (n = 34) Fortnightly (n = 22) - 26 36 58 (22.80) (31.50) (50.87) 38 (33.33) Whenever needed (n = 122)
  101. 101. Ice R creams (n 188) D B I R D B I R D B I R D B I R D B I = - - - 4 (100.0) - - 4 6 6 (66.66) (100.0) (17.64) (11.76) 4 8 32 2 2 8 20 6 4 16 (23.52) (94.11) (9.09) (9.09) (36.36) (90.90) (4.91) (3.27) (13.11) Note : Figures in parentheses indicate percentages. R – Retail outlets D – Departmental stores B – Bakeries I – Ice parlors. 118 (96.72)
  102. 102. Table 4.13. Nature of purchase decision among different age groups Age group Nature of purchase Products decision AG1 (n=64) Impulsive buying 18 (28.12) AG2 (n = 110) 42 (38.18) AG3 (n AG4 = 18) 10 (55.55) 70 - Biscuits (35.00) (n=200) Planned purchase 68 46 (71.87) (61.81) Nature of purchase AG1 decision = 184) (n=64) Impulsive buying 44 (68.75) Planned purchase Chips 20 (31.25) AG2 (n = 108) (n 80 (74.07) 28 8 (44.44) AG3 8 130 (100.00) (65.00) (n AG4 = 12) 12 (100.00) - Nature of purchase AG1 decision (n=64) Impulsive buying 20 (31.25) Planned purchase 44 (68.75) Fruit juice AG2 (n = 106) 54 (50.94) 52 (49.05) Overall (n = 0) 136 - (73.91) 48 - (25.92) (n = 186) Overall (n = 8) (26.08) AG3 (n AG4 = 16) 8 (50.00) 8 (50.00) Overall (n = 0) - - 82 (44.08) 104 (55.91)
  103. 103. Nature of purchase AG1 decision creams (n= 188) Impulsive buying 22 (35.48) Planned purchase Ice (n=62) 40 (64.51) AG2 (n = 108) 62 (57.40) 46 (42.59) AG3 (n AG4 = 18) 12 (66.66) 6 (33.33) Overall (n = 0) - - 96 (51.06) 92 (48.93) Note : Figures in the parentheses indicate percentage to the total number of users in each age group.
  104. 104. Table 4.14. Influence of income on purchase decisions on ready-to-eat food products Products Income group Friends 37 (46.25) 42 (52.50) 20 (25.00) 8 (10.00) 12 (15.00) 62 (77.50) Medium (n=68) 35 (51.47) 30 (44.14) 18 (26.47) 10 (14.70) 18 (26.47) 40 (58.82) High (n = 52) 20 (38.46) 16 (30.76) 16 (30.76) 4 (7.69) 8 (15.38) 32 (61.53) Total 92 (46.00) 88 (44.00) 54 (27.00) 22 (11.00) 38 (19.00) 134 (67.00) Low (n = 75) 6 (8.00) 24 (32.00) 26 (34.66) 10 (13.33) 6 (8.00) 44 (58.66) Medium (n=62) 18 (29.03) 30 (48.38) 20 (32.25) 12 (19.35) 10 (16.12) 46 (74.19) High (n = 47) 8 (17.02) 18 (38.29) 20 (42.55) 2 (4.25) 2 (4.25) 28 (59.57) Total 32 (17.39) 72 (39.13) 66 (35.86) 24 (13.04) 18 (9.78) 118 (64.13) Low (n = 77) 20 (25.97) 12 (15.58) 32 (41.55) 12 (15.58) 6 (7.79) 44 (57.14) Medium (n=59) 32 (54.23) 20 (33.89) 20 (33.89) 2 (3.38) 12 (20.33) 44 (75.57) High (n = 50) 26 (52.00) 10 (20.00) 20 (40.00) - 4 (8.00) 36 (72.00) Total 78 (41.93) 42 (22.58) 72 (38.70) 14 (7.51) 22 (11.82) 124 (66.66) Low (n = 70) Chips Children Low (n = 80) Biscuits (n = 200) Parents Neighbours Shopkeeper Self decision 4 (5.71) 30 (42.85) 26 (37.14) 8 (11.42) 2 (2.85) 42 (66.00) Medium (n=68) 6 (8.82) 20 (29.41) 38 (55.88) 6 8 (11.76) 30 (44.11) High (n = 50) 6 (12.00) 24 (48.00) 28 (56.00) 6 (12.00) 4 36 (72.00) (n=184) Fruit juice (n=186) Ice creams (n=188) (8.82) (8.00)
  105. 105. Total 16 (8.51) 74 (39.36) 92 (48.93) 20 Note : Figures in parentheses indicate percentage to the total number of users in each income group. (10.63) 14 (7.44) 108 (57.44)
  106. 106. Table 4.15. Influence /impact of education to make purchase decision on ready-to-eat food products Products Education level Parents Children Neighbours Primary school (n = 4) 4 (100.00) High school (n = 20) 20 (100.00) PUC (n = 60) 44 (73.33) Degree (n = 88) 22 PG ( n = 28) 2 Primary school (n = 2) 2 (100.00) High school (n = 16) 6 (37.50) 6 (37.50) 10 (62.50) 4 (25.00) PUC (n = 55) 2 (3.63) 6 (10.90) 25 (45.45) 2 22 (25.58) 35 13 (15.11) 16 (18.60) PG ( n = 25) - 25 (100.00) 18 (72.00) Primary school (n = 0) - 6 (30.00) 1 (25.00) Shopkeeper (3.63) Degree (n = 86) Biscuits - Friends - Self decision - - 6 (30.00) 4 (20.00) 4 (20.00) 8 (40.00) 6 (10.00 6 (10.00) 2 (3.33) 18 (30.00) 22 (36.66) (25.00) 66 (75.00) 31 (35.22) 16 (18.18) 16 (18.18) 86 (97.72) (7.14) 10 (35.71) 10 (35.71) - - 18 (64.28) - - - - (n = 200) 4 (25.00) 6 (37.50) Chips (n = 184) Fruit juice (n = 186) High school (n = 18) 10 PUC (n = 59) Degree (n = 85) 52 (61.17) PG ( n = 24) 10 (41.66) - 6 (10.16) Primary school (n = 0) (55.55) - (46.69) 6 (33.33) 4 (6.77) 24 (28.23) 8 (33.33) - 20 (36.36) (16.27) 74 (86.04) - - 18 (72.00) - - - - 14 - 6 (33.33) 4 (22.22) 4 (22.22) 8 (44.44) 12 (20.33) 2 (3.38) 2 (3.38) 18 (30.50) 50 (58.82) 10 (11.76) 16 (18.82) 80 (94.11) 18 (75.00) 4 (16.66) - - - - - -
  107. 107. Ice creams 4 (20.00) PUC (n = 60) 2 (3.33) Degree (n = 85) (n = 188) High school (n = 20) 10 (11.76) 52 - 14 PG ( n = 23) 6 (30.00) 8 (40.00) 20 (100.00) 2 (10.00) 6 (30.00) 12 (20.00) 50 (83.33) 2 (3.33) 5 (8.33) (61.17) 66 (77.64) 30 (35.29) 10 (11.76) 75 (88.23) (60.86) 6 (26.08) - 22 (95.65) 2 (3.33) - Note : Figures in parentheses indicate percentage to the total number of users in each education level.

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