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Determinants of Consumers Purchasing Behaviour for Rice in Delhi (consumer behaviour)

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Agriculture is one of the strongholds of Indian economy providing direct employment to 47%-51% people working in country according to latest World Bank data Today India is the leading producers & exporter of various agri-products, rice being one of them. India is 2nd largest producer of rice after China & is largest exporter of Basmati rice followed by Pakistan.Along with the large export potentiality, India is generating an increasing domestic demand for rice as a result of both opening up and income level augmentation. Demand of rice is expected to shot up due to increased domestic needs with a overall income level growth coupled with export demand for rice due to opening up of the food grain market. A combination of various factors seems to have triggered the structural increase in rice consumption. Urbanization also appears to be the most important cause of the shift in consumer preferences towards rice in India.In this changing scenario it becomes imperative to understand the future demand trends for rice, purchasing behaviour of consumers, consumption pattern, and factors affecting the purchasing behaviour of consumers for rice

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Determinants of Consumers Purchasing Behaviour for Rice in Delhi (consumer behaviour)

  1. 1. DETERMINANTS OF CONSUMERS PURCHASING BEHAVIOUR FOR RICE IN DELHI ANKIT VERMA ANU KAUSHIK SUBMITTED BY :
  2. 2. INDEX
  3. 3. INTRODUCTION
  4. 4. OBJECTIVES
  5. 5. RESEARCH METHODOLOGY Statement of the Problem  To study the perceptions of the prospective buyers and track their drivers of those perceptions. Sampling Technique • In this research paper judgmental sampling was used. • Judgment sample is a type of type of non-probability sampling technique where the units to be sampled is selected based on the knowledge & professional opinion of an expert. Sample Size • In order to conduct the study we took the sample size of 300 people.
  6. 6. Data Sources Used • Primary Sources • Secondary sources Primary Sources of Data • Primary sources of data included filling of questionnaires by people residing in Delhi. • The data was obtained by distributing the questionnaires to the customers at 36 malls and localities around it in Delhi region having Rice stores, hyper markets and local markets as well • The set of questionnaire had three sections. • Section A consisted of demographic profile of the consumers such as age, gender, educational level, income, and employment status • Section B dealt with 8 questions regarding the preference and consumption pattern of eating rice • Section C discussed on the marketing of rice by using a rating scale.
  7. 7. Secondary Sources • Secondary sources of data included internet articles, articles, research papers from EBSCO website, articles, research papers from Google Scholar, articles from Hindustan Times and Economic Times, videos on internet related to consumer behaviour.  The secondary data is also collected through personal visits at stores of the best foods in NCR/DELHI interacting with storekeepers and collecting information from visitor’s book and interaction with customers as well. Type Of Research • The project is a Descriptive research. The focus of descriptive research is to provide an accurate description for something that is occurring. • This type of research is by far the most popular form of market research. • It is used extensively when the research purpose is to explain, monitor and test hypotheses, • It can also be used to a lesser extent to help make predictions and for discovery.
  8. 8. DATA ANALYSIS ANOVA Test (Age, Educational Qualification, occupation, Annual household income, family size) Chi square test on Rice brands preferred &Demography factors (family size, income, gender, age of respondent) DATADATA ANALYSISANALYSIS T- Test (Gender and Marital Status) Chi square test on Demography & frequency of Purchase Rice (family size, occupation, income, age, gender, education, marital status) Chi square test on the Demographic factors & Amount of rice purchase month (family. size ,income, age, occupation,education,marital status)
  9. 9. FINDINGS & DISCUSSIONS  The respondents in this survey consisted of 90 males and 210 females which reflected women were mostly responsible for the household and food purchase.  The majority of consumers (80%) who are involved in purchase is less than age of 50 Out of 300 respondents surveyed  61.6% earned Annual income ranging from Rs.5 lakh to Rs.14 lakh, with an average annual income of 9.5 Lakh  The majority of the consumers (58.7%) had an average household size between 4 – 6 people.  The results indicated that about 27 percent of the respondents purchased Best, followed by Daawat rice 26%, India gate rice 16% , Kohinoor rice 23% ,Dunar rice percent while the remaining 13% purchased other brands of rice as their preferred brand.
  10. 10. FINDINGS & DISCUSSIONS
  11. 11. FINDINGS & DISCUSSIONS Age group of respondent who filled the survey The majority of consumers (80%) who are involved in purchase is less than age of 50 Out of 300 respondents surveyed
  12. 12. Purchasing behaviour of consumers on rice • The results indicated that the majority of the consumers (76.33%) bought rice every month • Majority of respondents (40%) preferred to purchase only one pack when they purchased rice. • Majority of the respondents preferred to buy rice with the smaller packaging size which is 5kg (64%) • A total of 55.66% of respondents preferred to purchase food from retailers rather than supermarket (20.66%) ,mini market (7%) and shopping mall (12.33%) • The results revealed that marital status, education qualification, annual household income occupation and family size of respondents had significant relationship with the frequency of purchasing rice • The relationship of the demographic factors With the purchasing behaviour of the respondents was analyzed using Chi-Square Tests
  13. 13. Purchasing Behaviour of Consumers On Rice
  14. 14. Chi-Square Tests on Demographic Factors & Purchasing Behaviour DEMOGRAPHIC FACTORS FREQUENCY OF PURCHASE AMOUNT OF RICE PURCHASE N MARATIAL STATUS Relationship Exist No Relationship Exist 300 EDUCATION QUALIFICATION Relationship Exist No Relationship Exist 300 OCCUPATION Relationship Exist No Relationship Exist 300 ANNUAL HOUSEHOLD INCOME Relationship Exist Relationship Exist 300 FAMILY SIZE Relationship Exist Relationship Exist 300
  15. 15. Factors Affecting Consumers’ Preferences On Rice Brands  Chi-Square test revealed that Education qualification and Occupation of the respondents showed a significant relationship with the rice brands
  16. 16. Factors Affecting Consumers’ Preferences on rice Brands DEMOGRAPHIC FACTORS PREFERENCES N MARATIAL STATUS NO RELATIONSHIP EXISTS 300 GENDER NO RELATIONSHIP EXISTS 300 AGE NO RELATIONSHIP EXISTS 300 EDUCATION QUALIFICATION RELATIONSHIP EXISTS 300 OCCUPATION RELATIONSHIP EXISTS 300 ANNUAL HOUSEHOLD INCOME NO RELATIONSHIP EXISTS 300 FAMILY SIZE NO RELATIONSHIP EXISTS 300
  17. 17. Marketing Factors of Rice brand Preferred • T-tests & ANOVA test on demography revealed that Age, annual household income, occupation ,family size have significance relationship with marketing activities • Marketing activities apparently had impacted on consumers buying decision making. • More than half of the respondents remarked that price was the most important factor in choosing which brand to purchase • Customers are not brand loyal however the past experience of the brand do play a crucial role while taking purchasing decisions.  Many of the respondents responded neutral to the question whether advertising influence them to purchase rice or not  Majority of them agreed to the fact that discount and promotional offers do influence purchasing behaviour.  The majority of respondents stated that the packaging of the rice brand doesn’t play an important role to easily attract and persuade them to purchase the product
  18. 18.  The brand which was easily located in all stores, especially the provision market would be highly preferred.  Customers put greater emphasis that quality, taste, flavour, physical appearance, aroma, nutrition value while making purchasing decisions. This clearly indicates the consumer Inspite of price sensitive is quality conscious when it comes to purchasing rice
  19. 19. Marketing Factors of Rice brand Preferred DEMOGRAPHIC FACTORS T -TEST ANOVA TEST N MARATIAL STATUS NO Relationship Exist - 300 GENDER NO Relationship Exist - 300 AGE - Relationship Exist 300 EDUCATION QUALIFICATION - Relationship Exist 300 OCCUPATION - Relationship Exist 300 ANNUAL HOUSEHOLD INCOME - Relationship Exist 300 FAMILY SIZE - Relationship Exist 300
  20. 20. Marketing Factors of Rice brand Preferred
  21. 21. Consumption Pattern of Eating rice • Rice is the main staple food being consumed by most people in India and same is true for people of Delhi  The results of the survey indicated that most of the respondents were regular consumers on a daily basis (31%)  It was then followed by the consumption of rice four times a week (17%).  When the respondents were asked on which particular meals contained rice that they consumed, about 66.33 percent responded that they ate plain rice, followed by biryani rice 14%  Plain rice and Biryani rice became the preferred meals eaten by respondents  93.33% of respondents said they preferred to purchase basmati rice while 9.33% of the respondents chose to buy brown rice.  Respondents would likely to purchase a particular type of rice largely due to its quality, flavour and taste, physical appearance .  Price (90%) was also becoming the important factor for respondents to concern during purchasing rice.
  22. 22. Consumption Pattern of Eating Rice
  23. 23. CONCLUSION  Consumers’ purchasing behaviour differed greatly in this study  Demographic factors, quality and rice attributes, location and accessibility to the marketing outlets, price, packaging as well as branding experience were the determinants that need to be focused in the production and marketing of rice.  Producers as well as distributors need to comprehend these situations in order to meet the needs of their consumers notwithstanding the marketing efforts; quality is a noteworthy attribute that consumers are looking for.  The most popular brand was the Best and followed by Daawat.  The results also reflect that the there is stiff competition among the existing brands and other brands are catching up to hence need to understand the consumer behaviour and constant alternation in marketing strategies is the need of the hour in rice industry.  Consumers in DELHI will thrust the brand that concurs with quality and likely to increase the volume of purchase. .
  24. 24.  Stress should also be paid to customer experience they have at the time of purchasing product.  Majority of customers prefer buying rice from Kirayana shop or retail outlet where they can buy all products at same place.  The companies operating their own retail store should ensure that their workforce is able to provide the good experience and clean environment to cater the customers walking into the stores  Stress should be laid on explaining attributes like quality etc highlighted in study to facilitate sale and influence purchasing behaviour of customer n buy all products at once  Besides that they should label information on the rice packaging to inform the consumers which cuisine is suitable for each type of rice to avoid them from purchasing the wrong one.  Quality has been reported to be the main reason of rice consumption and purchase decision making. Therefore quality should be controlled to avoid consumer disappointment. Sanitation quality must be high  Our findings indicate that Basmati rice should not be over-positioned as a premium product that is sold at a higher price.
  25. 25. CONCLUSION
  26. 26. CONCLUSION
  27. 27. SUGGESTIONS Based on the study following recommendations with respect to future research is below:-  SUGGESTIONS 1 :- A further research should be conducted to understand the determinants of purchasing behaviour of consumer of rice at national level.  SUGGESTIONS 2:- A further research should be conducted to understand that the role of salesperson at retail stores in influencing the purchasing behaviour of consumer rice In India  SUGGESTIONS 3:- A further research should be conducted to understand the impact of nature and location of stores on purchasing behaviour of consumer of rice at national level
  28. 28. LIMITATIONS Time Constraint  since the study was to be evaluated for internship purpose the work related to study had to be pushed substantially and that might had the effect on the quality Small Sample Size • The sample size was of 300 which was small too and was decided keeping in time constraint in mind and effected the data collection. Resource Constraint • The study involved students who had limited resources hence it acted as an constraint as well

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