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UNDERSTANDING THE FACTORS THATINFLUENCE THE ATTITUDE OF

CONSUMERS IN ORDERING BREAKFAST

ONLINEA PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATIONBY

G. NAGARJUN

(Regd. No: 10459)

DEPARTMENT OF MANAGEMENT STUDIES

SRI SATHYA SAI INSTITUTE OF HIGHERLEARNING

(DEEMED TO BE UNIVERSITY)

PRASANTHI NILAYAM2010-2012


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A HUMBLE DEDICATION

TO


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MY GUIDE AND GOAL


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SRI SATHYA SAI INSTITUTE OF HIGHER LEARNING(DEEMED TO BE UNIVERSITY)

Vidyagiri, Prasanthi Nilayam 515134, Anantapur District,Andhra Pradesh, India

CERTIFICATE & DECLARATION

This project entitled Understanding the factors that influence the attitude of

consumers in ordering breakfast onlineis anoriginal work done by me under

thesupervision of Sri Arvind Hejmadi, Faculty , Department of Management

Studies, Sri Sathya Sai Institute of Higher Learning, PrasanthiNilayam, in

the partialfulfillment of the requirementsfor the award of the degreeofMaster

of BusinessAdministration of this University, and has not formed thebasisfor

the award of any degree, diploma or any other such title by this institute or

any otherUniversity.

Sri Arvind Hejmadi Prof. Shiv R. Pandit

(Project Guide) (Head of Department)

G. Nagarjun

(Regd. No: 10459)

Place: Prasanthi NilayamDate:


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SRI SATHYA SAI INSTITUTE OF HIGHER LEARNING(DEEMED TO BE UNIVERSITY)

Vidyagiri, Prasanthi Nilayam 515134, Anantapur District,Andhra Pradesh, India


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Acknowledgements

I like to first express my deep sense of gratitude and prostrations

to my guide and goal Bhagawan Sri Sathya Sai Baba for choosing

me to write this project, for without his will the project would not

have materialized at all.

I would like to place my gratefulness to my beloved parents for all

their support and well wishes towards my growth and wellbeing.

I would like to convey my deep sense of thankfulness to my guide

Sri Arvind Hejmadi for his constant support and guidance who

was a key role in shaping my thoughts and ideas into a structured

manner.

I would like to thank brothers Vignesh Sridhar, Aman Jhaveri and

Dr. Shashank Shah who were instrumental in giving me direction

to my project itself by enabling me to embark on this topic.

I would like to express my heartfelt thanks to Sri Sandeep Challa,

CEO, online-breakfast.com and his dynamic team comprising Ms.

Revathi Ramachadran and Sri Suraj Mulay for inspiring me to do a

project in this field and also giving me timely help and assistance.

I would like to thank my young friends Yogesh Murthy and

Abhinav Gorthi who gave their valuable time during the initial

brain storming session of this project at its inception.

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My deep sense of gratitude to Sri Ganesh of Sai Ganesh Xerox

services, Sri chelli Srivnivas, Avinash Shroff, Srijan and Osho Sai

of Hostel Xerox centre, Papi Naidu, Nanaji and Rupesh of Hostel

Computer Centre for their timely help commitment enabling the

completion of my project.

My thanks to Dr. Sanjay Mahalingam, Dr. Piyush Srivastava and

Sri Renju, Computer Administrators for their support and timely

help.

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Table of Contents


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Acknowledgements.................................................................................................i


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List of Figures.........................................................................................................ii


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List of Tables.........................................................................................................iv


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Abstract................................................................................................................vi


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1. Introduction and Theoretical Background...............................................1


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Introduction:.......................................................................................................1


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1.1. Overview of the scenario..........................................................................1


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1.2. Statement of the Problem:.......................................................................2


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1.3 Need and Significance of the Study:..........................................................2


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1.4 Scope of the Study:...................................................................................3


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Theoretical Background:.....................................................................................3


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Market Segmentation:.....................................................................................3


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2.2) Consumer Behavior:.................................................................................5


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Key Psychological Processes that affect the purchase decision of the

consumers:......................................................................................................7


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The Buying Decision Process: The Five-Stage Model.......................................9


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Components of Attitude:...............................................................................10


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Formation of Attitude.......................................................................................10


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1) Theory of Reasoned Action:......................................................................10


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Theory of planned Behavior:.........................................................................11


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Technology Acceptance Model:.....................................................................13


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1.5 Scheme of Chapters................................................................................14


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2. Literature Review.........................................................................................15


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Scheme of literature Review:...........................................................................15


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2.1) The E-commerce and M-commerce market in India...............................16


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2.2) People Who Use the Internet:...............................................................18


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2.3) What people do online in India?.............................................................19


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2.4) Factors affecting Online consumer Search behaviour:...........................21


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2.5) Factors motivating and de-motivating consumers to buy online:..........24


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2.6) Existing Models used to study online shopping from a marketing

perspective:...................................................................................................26


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2.7) Changing Breakfast Consumption..........................................................29


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3. Methodology.................................................................................................33


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3.1 Nature of Study:.........................................................................................33


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3.2 Objectives of Study:...................................................................................33


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3.3 Data Collection:..........................................................................................33


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The Model for the Study:..................................................................................34


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4.4 Research Instrument:.................................................................................38


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4.4.1 Methodology of the study:....................................................................38


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4.4.2 Questionnaire Design:..........................................................................38


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Limitations of the Study:..................................................................................39


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4. Data and Analysis........................................................................................41


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Section 1: Demographic Details:......................................................................41


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Section 2: Understanding the Need for breakfast:............................................42


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Section 3: Understanding the Gap....................................................................45


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Section 4: Attitude and factors influencing attitude towards ordering breakfast

online................................................................................................................51


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5. Conclusion and Recommendations............................................................57


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Findings:...........................................................................................................58


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Recommendations for Future Study:................................................................62


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References and Bibliography...............................................................................63


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Appendix: Questionnaire.....................................................................................67


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Appendix: Questionnaire


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List of FiguresFigure 1: Key Psychological processes that affect the purchase decision of the

consumers.............................................................................................................7Figure 2: Buying Decision Process: The Five Stage Model.....................................9

Figure 3: Components of Attitude........................................................................10

Figure 4: Overview of Literature Review..............................................................16

Figure 5: Frequency of browsing/purchase from mobile devices.........................18

Figure 6: Reasons for people using mobile internet............................................20

Figure 7: Popular Websites Browsed on Mobile Phones.......................................21

Figure 8: Why people prefer to use mobile internet instead of the PC Internet...21

Figure 9: Factors affecting actual internet shopping...........................................26

Figure 10: Factors affecting willingness of consumers in ordering groceries

online...................................................................................................................27Figure 11: Role of Consumer Self Efficacy and Website Social Presence in

Customers Adoption of B2C Online Shopping.....................................................28

Figure 12: Model for role of good relationship between the online vendor and the

consumer.............................................................................................................29

Figure 13: Changing breakfast patterns in India..................................................30

Figure 14: Model of Consumer Behaviour............................................................34

Figure 15: Percentage of Respondents having easy access to internet and

mobilephones......................................................................................................41

Figure 16: Percentage of respondents considering breakfast as an integral

component of their daily meal.............................................................................42

Figure 17: Preferred time of having breakfast.....................................................43

Figure 18: Preferred breakfast cuisine.................................................................43

Figure 19: Number of items versus quantity of each item...................................44

Figure 20: Percentage of Respondents skipping breakfast on any day...............45

Figure 21: Practicality of ordering breakfast online.............................................46

Figure 22: Subscription of online breakfast service.............................................48

Figure 23: Price willing to be paid for breakfast delivered at the place of

residence.............................................................................................................49

Figure 24: Preferred mode of payment................................................................50

Figure 25: Preferred mode of feedback and complaint to the online breakfast

vendor.................................................................................................................54

gure 25: Preferred mode of feedback and complaint to the online breakfast vendor.

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List of Tables

Table 1: Percentage of Respondents having easy access to internet and

mobilephones......................................................................................................41

Table 2: Percentage of respondents considering breakfast as an integral

component of their daily meal.............................................................................42

Table 3: Preferred time of having breakfast........................................................42

Table 4: Preferred breakfast cuisine....................................................................43

Table 5: Number of items versus quantity of each item......................................44

Table 6: Percentage of Respondents skipping breakfast on any day...................45

Table 7: Important reasons for skipping breakfast..............................................45

Table 8: Critical selection factors.........................................................................47

Table 9: Price willing to be paid for breakfast delivered at the place of residence.

............................................................................................................................49

Table 10: Preferred mode of payment.................................................................50

Table 11: Factors creating positive attitude towards ordering breakfast online.. 51

Table 12: Factors creating negative attitude towards ordering breakfast online.53

Table 13: Preferred mode of complaint...............................................................54

able 13: Preferred mode of complaint.

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Abstract

The socio-economic changes in India during the past two decades have lead to various

changes in the structure of the society. One such change is the rise of IT companies and

educational institutions in the high growth cities which attract many people across the

nation to come and stay in these cities by themselves. These people aged between 20-45

years in IT/ITeS segment and between 15-35 years of age for the students segment

have a highly tech savvy lifestyle, different eating and living habits when compared to

the natural inhabitants of the city.

Since these segments stay by themselves away from their hometown they have a need

for good quality food at an affordable price.

While lunch and dinner are easily available in and around their place of work/study,

breakfast is not so easily available near their place of residence. However many people

prefer having breakfast at their place of residence before leaving for work/study.

The study indicates the factors that influence the attitude of consumers in ordering

breakfast online using mobile-phones and internet enabled electronic gadgets. For the

purpose of the study students and IT/ITeS professionals staying away from their

hometown and living by themselves were chosen and the factors that influenced their

attitude towards ordering breakfast online were studied.

For the purpose of the study, Theory of Reasoned Behaviour, Theory of Planned

Behaviour, Technology Acceptance Model and Consumer Behaviour Model were used.

The findings of the study show that both students and IT/ITeS professionals are time

constrained in their daily life, therefore favourable towards ordering breakfast online

and need good quality breakfast which is nutritious, tasty, hot and fresh when it reaches

them, packaged properly and delivered on time to their place of residence at an

affordable price.

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CHAPTER-1

INTRODUCTION

AND

THEORETICALBACKGROUND


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Introduction and Theoretical Background

1.Introduction and Theoretical

Background

Introduction:

1.1. Overview of the scenario

With the opening up of the Indian Economy is 1991, there has been a sea change in the

lifestyle of people in India with many young bachelors staying away from home for

occupational reasons, increased number of working couples; many elderly people living

alone, since their children have settled elsewhere. These are common observations in many

cities in India. The other important change that has occurred over these years is the rapid

development of technology and communication in the nation, especially in the upcoming and

high growth cities like Delhi, Bangalore, Pune, Hyderabad and others which have grown at a

tremendous pace().

With such transformation in the social structure of these cities, businesses today need to be

aware of these unprecedented changes affecting the buyer behavior of people. They need to

leverage on modern technology and communication by which busy and time constrained

consumers can sit at their home and get the things they want at their convenience().

Having known these changes in the economy at large it is really important to understand the

changing attitudes of consumers, especially the factors that influence the attitudes of these

consumers. There have been many studies that are being done in the area of e-commerce.

Discussions and interviews(, 2010) with eminent business leaders and pro-active thinkers

have revealed that the Indian e-commerce has been growing at a rapid pace and would be full

of opportunities to the prudent marketer.

As mentioned above, there has been increased penetration of technology and communication

in the form of mobile phones and internet which has played a significant role in changing the

consumers lifestyle. One such change in the lifestyle is the eating and living habits of people

staying away from their hometowns, in cities by themselves for occupational reasons.

Pune city for that matter has a growing industrial hinterland, with many information

technology and automotive companies setting up factories there. These activities have lead to

creation of job opportunities attracting migrants and students from all over India and abroad,

which makes it a city of many communities and cultures. Moreover the growth in the

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software and education sectors has led to an influx of skilled labour and students respectively

from across India(). As one of the largest cities in India, and as a result of its many colleges

and universities, Pune is emerging as a prominent location for IT and manufacturing

companies to expand.

The migrating population alone rose from 43,900 in 2001 to 88,200 in 2005.(, 2006). The IT

sector employs more than 70,000 people with major software companies like Symphony

Services, Wipro, Infosys, TCS, Cognizant, Symantec, Tech Mahindra, Syntel, to name a few.

Pune also has hundreds of large and small IT companies.

With regards to education Pune has more than a hundred educational institutes and nine

universities,(Kaul, Sanat, 2006) students from all over the world studying at the colleges of

the University of Pune. Pune came to be referred to as the Oxford of the Eastdue to its large

student population, and a large number of quality academic and research institutes(Brahma,

2011). All this has lead to a large presence of IT/ITeS professionals and students who stay

away from their home town for occupational reasons in Pune by themselves having a new

lifestyle altogether.

With the changing lifestyle of people in cities reflected in their eating and living habits can

e-commerce play a role in creating a new business by delivering the first meal of the day-

breakfast that can be ordered online?

This study is done to understand the factors that influence the attitudes of consumers to order

breakfast online. This study would add knowledge to existing research in this area and also

act as a platform upon which future research and study can be conducted in other places in

India and abroad to understand the attitudes of consumers in ordering breakfast online.

1.2. Statement of the Problem:

As mentioned above the research problem in this study is to understand the factors that

influence the attitudes of consumers towards ordering breakfast online.

1.3 Need and Significance of the Study:

1.3.1 Need:With changing lifestyles and consumer preferences there is a growing need for breakfast in

cities and the study finds out whether consumers are favorable to order breakfast online and

the factors that influence the same. The results of the study could apply to other metro cities since

it is not geography specific. Hence a research in this area is important.



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1.3.2 Significance:Using the results of this study, it would be easier to design an appropriate business model and

develop more effective business strategies. This study would also add knowledge to the

existing research in the domain of E-commerce with specific reference to breakfast being

ordered online.

1.4 Scope of the Study:

The study is limited to select areas in the city of Pune, Maharashtra, India.

For the purpose of the study the respondents chosen were:

IT/ITeS professionals.

Students who are not native of Pune and lived by themselves.

Only these respondents were considered for the study as it was felt that these segments would

have the need for the breakfast and given that they have easy access to modern

communication gadgets like the internet enabled devices, mobile phones it would be useful to

understand the factors that influence the attitudes of these respondents towards ordering

breakfast online.

Theoretical Background:

In this section the relevant concepts used for the study are explained below.

Market Segmentation:

A market segment comprises of a collection of customers sharing a similar set of needs and

wants. The task of the marketer is to identify these segments and decide which one(s) to aim.

The advantage of segmentation of the market is that it offers core advantage in the areas of

design, price, information, and distribute the product or service and also can fine tune the

marketing program and activities to better reflect competitors marketing(Kotler, 2009).

By looking at descriptive characteristics markets can be segmented on the basis of:

a) Demographic: Using variables like age, gender, income, occupation etc.

b) Psychographic: using variables like values, attitudes, personality etc

c) Geographic: Using variables like place, environment, altitude etc.

Effective Segmentation Criteria:

The relevant variables used to identify market segments must rate favorably on five key

criteria:



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a) Measurable: The volume, purchasing power, and characteristics of the segment

should be quantifiable

b) Substantial: The segments should be huge, gainful enough to supply. A segment here

should be the largest potential homogenous group worth going after a customized

marketing program.

c) Accessible: The segment should be successfully reached and served.

d) Differentiable: The segment should be theoretically distinguishable and respond

differently to different marketing mix elements and programs.

e) Actionable: Effective programs can be formulated for attracting and serving the

segments. (Kotler, 2009).

In evaluating different market segments, every firm must look at two factors:

a) The segments overall attractiveness.

b) The companys objectives and wherewithal (Kotler, 2009).

The five patterns of target market selection:

1) Single Segment Concentration:

For a firm it gives the capability to gain strong knowledge of the segments needs and

attain a strong market presence. The firm can enjoy operating economies by

specializing its production, delivery and promotion. The major risk is when a

particular market segment turns sour or another player invades the segment.

2) Selective Specialization:

The firm selects a number of segments wherein each one is objectively attractive and

relevant. There may be very less or no synergy at all amongst the segments, but each

of the segments promises to be a profitable segment. This strategy has the advantage

of diversifying the firms risk.

3) Product Specialization:

The firm makes a certain product selling to a number of different market segments. It

can build a strong name in the specific product area. The biggest risk happens when

the product may be displaced by an entirely new technology.

4) Market Specialization:

The firm focuses on serving many needs of a particular customer group. It gains a

strong repute in serving this customer group and becomes a medium for further

products the consumer groups could use. However it runs a risk of decrease in size orreduction in spending by the customers



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5) Full Market Coverage:

The firm attempts to serve all the customer groups with all the products they might

need. Large firms can envelop a complete market in two extensive ways:

a) Undifferentiated marketing: The firm ignores segment differences and goes after

the complete market with one offer.

b) Differentiated marketing: The firm operates in several market segments and

designs different products for each of the segments(Kotler, 2009).

2.2) Consumer Behavior:

Consumer Behavior is the study of how individuals, groups, and organizations select, buy,

use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

This section talks about the factors that affect consumer behavior.(Kotler, 2009).

2.2.1) Factors influencing consumer behavior:A consumers buying behavior is influenced by cultural, social and personal factors.

2.2.1.1 Cultural Factors:These have the broadest and deepest influence on consumers. It is the basic determinant of a

persons wants and behavior. Each culture has smallersubcultures providing more specific

socialization and identification for its members. Social classes are relatively homogenous

and enduring divisions in a society, which are hierarchically structured and whose members

share similar values, interests and behavior.(Kotler, 2009)

2.2.1.2 Social Factors:Social factors such as reference groups, relations, and social roles and position affect the

buying behavior.

Reference Groups: A persons reference groups are all the groups that have a direct or

indirect influence on their attitudes or manners. Groups having a direct influence are called

membership groups. A few of these are primary groups with whom the person interacts

fairly constantlyand informally, such as family, friends, neighbors, and colleagues. People

also belong to secondary groups, such as professional and trade-union groups, which tend to

be more official and require less continuous interaction.

Reference groups persuade its members in at least three ways:

a) They expose an individual to new behaviors and lifestyles.

b) They manipulate attitudes and self-concept.

c) They create pressures forcompliance that may affect product and brand choices.



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Aspiration groups are those a person desires to join; dissociative groups are those whose

values or behavior an individual discards.

Family: The family is the most important consumer buying group in society, and family

members make the most dominant primary reference group. There are two families in the

buyer's existence: The family of orientation comprises one's parents and siblings. A more

direct influence on daily buying behavior is the family of procreation, namely, one's partner

and off-springs.

Roles and Status: A role consists of the actions a person is likely to execute. Each role

carries a status. People choose products that reflect and tell about their role and actual or

desired status to the society(Kotler, 2009).

2.2.1.3) Personal Factors:This includes the following:

Age and Stage in the Life Cycle: The age of the individual determines his preference

towards products.(Kotler, 2009)

Occupation and Economic Circumstances: Occupation also influences consumption

patterns. Product choice is greatly affected by economic situation which is determined by

attitudes toward spending and saving.(Kotler, 2009)

Personality and Self-Concept: Personality refers to a set of unique human psychological

traits that lead to relatively unswerving and lasting response to environmental stimuli

(including buying behavior). It is defined in terms of traits like self confidence, dominance,

autonomy, and adaptability. Brands also have a personality, and customers are likely to

choose a brand whose personality matches their own. Brand personality is the specific mix

of human traits that we can attribute to a particular brand.(Kotler, 2009)

Lifestyle and Values: A lifestyle is a person's pattern of living in the world as expressed in

activities, interests, and opinions. It portrays the "whole person" interacting with his

environment. These are partly shaped by whether consumers are time constrained or money

constrained.(Kotler, 2009)

Core values are the convictions that underlie attitudes and behaviors. These play a massive

role in determining consumer behavior. Core values go much deeper than actions or attitude

and determine, at a basic level, people's choices and desires over the long term (Kotler,

2009).



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Key Psychological Processes that affect the purchase decision of the

consumers:

Figure 1: Key Psychological processes that affect the purchase decision of theconsumers.

Consumer behavior can be understood by the stimulus-response model shown above in which

Marketing and environmental stimuli enter the consumer's consciousness and a set of

psychological processes combined with certain consumer features eventually resulting in

decision processes and purchase decisions.(Kotler, 2009).

Four key psychological processes-motivation, perception, learning, and memory-

fundamentally influence consumer responses.

Motivation:

A need becomes a motive when it arouses to an adequate level of intensity to drive one to

act. Motivation has both direction-one selects a goal over another-and the intensity-the force

with which one pursues the goal.

Herzbergs Two Factor Theory: Frederick Herzberg developed a two-factor theory that

distinguishes dissatisfiers (factors that cause dissatisfaction) from satisfiers (factors that

cause satisfaction). The absence of dissatisfiers is not enough to motivate a purchase;

satisfiers must be present. Herzberg's theory has two implications. First, sellers should dotheir best to avoid dissatisfiers. Although the absence of dissatisfiers by itself would not sell a

product, they might easily un-sell it. Second, the seller should identify the major satisfiers or

motivators of purchase in the market and then supply them.(Kotler, 2009).

Perception:

Perceptionis the process by which one selects, organizes, and interprets information inputs to

create a meaningful picture of the world. They are more important than the reality itself, as it

is perceptions that will affect consumers' actual behavior(Kotler, 2009)

Learning:



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Learning induces changes in our behavior arising from experience. It occurs through the

interaction of drives (a strong internal stimulus impelling action), stimuli, and cues (minor

stimuli that determine when, where, and how a person responds) responses, and

reinforcement(Kotler, 2009).

Memory:

Every information and experience one encounters as he/she goes through life can end up in

one's mind as memory which are stored, retained and recalled when needed. The strength and

organization of these associations of experiences in the mind is an important determinant of

the information recalled about the brand(Kotler, 2009).

Brand associations consist of all brands-related thoughts, feelings, perceptions, images,

experiences, beliefs, attitudes, and so on that become connected to the brand. It is here brandassets become important. Having understood the self concept of the target consumers,

businesses should ensure that the customer should prefer the particular brand compared to

others. This is possible by having good brand strength by building on brand assets like:

Emotional Attachment.

Reputation.

Awareness- Qualitative Aspects.

Brand Deep Values.

Personality.

Imagery.

Patents and Rights.

The Buying Decision Process: The Five-Stage Model

The consumer passes through five stages in purchase of a product. They are:

Figure 2: Buying Decision Process: The Five Stage Model

1) Problem Recognition



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The three basic components of attitude are cognitive, affective and

behavioral part.

Cognitive Component:This component is the belief or opinion part of

attitude which is determined the basis of available knowledge thereby

deciding whether the individual has a favorable or unfavorable opinion

towards the object in question.

Affective Component: This component is the emotional aspect of

attitude which is mainly referred part of attitude and decides mostly

the desirable or undesirable aspect of attitude.

Behavioral Component: This component of attitude refers to the

behavior towards a particular object, person or anything for that

matter.

Formation of Attitude

Attitudes are the outward expression of ones inner values and beliefs.

These develop over time and shaped by the environment in which one lives and

grows.

It is also important to look into theories that link up attitudes with behavior.

1) Theory of Reasoned Action: This theory proposed by Martin Fishbein and IcekAjzen ((, 1975), (, 1980)) suggests that behavioral intention is a function of attitude and

the subjective norm. The behavioral intention (BI) measures a person's relative power of

objective to execute a behavior. The components of this theory are:

1) Behavioral intention (BI), studies an individual's relative power of intention to carry

out a behavior.

2) Attitude (A) consists of opinions about the results of executing the behavior

multiplied by his or her assessment of these results.

3) Subjective norm (SN): The combination of supposed outcomes from important

persons or group along with intention to comply with their expectations.

Mathematically BI=A+SN.

A person's behavioral intention depends on the person's outlook about the deeds and

subjective norms which are how the person thinks other people would view the action done

by this person. A person's attitude, united with subjective norms, forms his/her

behavioral intention. This theory restricts itself to intentional behavior.



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Theory of planned Behavior:

This theory is an extension of the Theory of Reasoned Action proposed by Icek

Ajzen(, 1975) to cover non-intentional behaviors for predicting behavioral intention

and actual behavior. Human behavior is guided by three kinds of consideration:

a) Behavioral Beliefs which produce a positive or negative "mind-set toward the

behavior".

b) Normative beliefs ensuing subjective norm

c) Control beliefs augmenting perceived behavioral control.

The theory of planned behavior can be understood as the following function:

BI = AB+SN+PBC where,

BI: Behavioral intention is a sign of an individual's willingness to carry out a given action.

AB: Attitude toward behavior, is an individual's favorable or unfavorable assessment of

self-performance of the particular behavior which comprises of:

a) The strength of each belief: A person's belief about outcomes of particular action.

The concept is based on the subjective likelihood that the action will result in a given

outcome.

b) The evaluation of the outcome or attribute: This deals with how the individual

assesses the outcome of his actions.

SN: social norm: An individual's opinion of social normative pressures, or significant others'

outlook that he or she should/should not perform such behavior, which comprising:

The strength of each normative belief: An individual's view about the particular behavior

influenced by the judgment of others whom he considers as significant in his life.

The motivation to comply with the person whom he considers significant in his life.

PBC: Perceived Behavioral Control: An individual's perceived easiness or complexity of

executing the particular behavior comprising:

a) The strength of each control belief- An individual's beliefs about the occurrence of

factors that may assist or hinder performance of the behavior.

b) The perceived authority of the control factor.

1) Purchase Decision

In carrying out a purchase intention, the consumer may make various sub-decisions and



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decide upon consequently.

Two common factors can interfere between the purchase intention and the purchase decision.

The first is the attitudes of others. The extent to which another person's attitude

reduces our preference for an alternative depends on two things:

i. The power of the other person's negative attitude toward our preferred

alternative.

ii. Our motivation to comply with the other person's wishes.

The second factor is unexpected situational factors that might occur to alter the

purchase intention itself. In this consumers may think of many types of risk in

purchasing and consuming a product. This includes:

1. Functional risk-Not performing up to expectations.

2. Physical risk- Theproduct might pose a threat to the physical comfort of the user or

others.

3. Financial risk-Theproducts worth is lesser than the price paid.

4. Social risk- The product results in embarrassment from others in the society.

5. Psychological risk-Theproduct might affect the mental comfort of the user.

6. Time risk-The failure of the product might lead to an opportunity cost of arriving at

another suitable product.

In order to reduce the uncertainty and negative consequences of risk, consumers develop

routines including information gathering from friends, and preferences for national brand

names and warranties(Kotler, 2009).

1) Post purchase Behavior

The consumer might be shocked to notice difference of opinion that arises from knowing

certain disappointing features or hearing complimentary things about other brands and will be

attentive to information that supports his or her decision.

Purchase Satisfaction: Satisfaction for a consumer is a function of the closeness between

expectations and the product's perceived performance.

a) If performance falls short of expectations, the consumer is disappointed.

b) If performance meets expectations, the consumer issatisfied.

c) If performance exceeds expectations, the consumer is delighted.

These three feelings make all the difference in whether the customer buys the product

again and talks favorably or unfavorably about it to others. (Kotler, 2009).



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Technology Acceptance Model:

The Technology Acceptance Model (TAM) ((Adams, 1992), (Venkatesh, 2008),

(Venkatesh, 2003)) is theory in Information systems, modeling how users come to accept and

use a new technology. It suggests that when users are presented with a new technology, a

number of factors influence their decision about how and when they will use it, notable ones

being:

Perceived usefulness (PU) The degree to which a person believes that using a

particular system would enhance his or her job performance.

Perceived ease-of-use (PEOU) The degree to which a person believes that using a

particular system would be free from effort.

1.5 Scheme of Chapters

Chapter 1: Introduction & Theoretical Background- This chapter describes the problem,

need and significance of the study along with the scope envisaged and explains the theoretical

background of the study and the underlying concepts.

Chapter 2: Literature Review- It deals with the review of the existing literature associated

with the topic.

Chapter 3: Methodology- It discusses the nature of the study and the methodology adopted

in the study. It also presents the objectives and the limitations of the study.

Chapter 4: Data Analysis - It deals with an in depth analysis pertaining to the factors that

influence the attitudes of consumers in ordering breakfast online.

Chapter 5: Conclusion and Recommendations- It deals with the conclusions drawn from

the study along with the strategies suggested and also with the scope for future studies in this

area.



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CHAPTER-2

LITERATURE

REVIEW


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2. Literature ReviewThis chapter reviews the existing literature relevant to the study. Since the concept of

ordering breakfast online is at its inception stage there is not sufficient literature on this

topic per se. However there is abundant literature in the areas of:

E-commerce/ M-Commerce and its market in India.

People who use E-Commerce / M-Commerce in India.

Factors that motivate customers to use e-commerce/m-commerce.

Factors that de- motivate customers from using e-commerce/m-commerce.

The changing breakfast consumption pattern in India.

By understanding the existing literature on these topics it is possible to get a clear direction

for my study.

Scheme of literature Review:This chapter is divided into six sections as given below and each section would focus on each

of the topics as dealt with existing literature available.

1) The E-commerce and M-commerce market in India.

2) Who are the people who use internet in India?

3) What people do when they are online?

4) What is the online consumer search behavior like?

5) What are the motivators and de-motivators that enable/prevent consumers from buy

online?

6) What are the existing models used to study online shopping from a marketing

perspective?

7) Changing breakfast scenario in India.



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A diagram that would give an overview of the chapter looks like the following:

Figure 4: Overview of Literature Review

2.1) The E-commerce and M-commerce market in India

E-Commerce market:

In a recent article released by the Press Trust of India (PTI, 2011) E-commerce in India is

estimated to cross Rs. 46000 Crore according to a study. It says that this growth in e-

commerce is primarily driven by:

The online travel industry, contributing 76% to the total e-commerce industry in

India today.

The financial services market, which includes online insurance payments and

transactions through trading accounts comprising 8% of the e-commerce market, is

expected to grow by 34%.

Areas like digital download and e-retailing predicted to grow by 62%.

A report by the Internet & Mobile Association of India as quoted in an article (Shah, 2011)

reveals that Indias e-commerce market is growing on an average at 70% year-on-year, with a

gargantuan growth of more than 500% during the past three years alone.

Another article (Caberwal, 2011) says that e-commerce is set to boom in India owing to the

following reasons:

1. Increasing number of Internet users: Over 100 million Internet users and still

increasing, India has begun to achieve a titanic number of users familiar with web services.

In addition, over the past few years, relatively tech savvy online travel agents (OTAs), like

makemytrip.com started changing initial Web users into Web consumers ending up

controlling Indian e-commerce.

2. Rising middle class with disposable income: Even though the middle class currently

comprises of less than 30% of the population of the country, with the rise of small and

medium enterprises whose disposable income is expected to grow at 5.3% (from2005-2025),

foreign direct investment, and Indias own powerful multinational companies which are

steadily providing over millions of new jobs, a new segment called globalized Indian

consumers have been formed. These consumers are present across the length and breadth of

the country predominantly in the metro cities and tier 1 cities. However these globalized



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citizens are also found in tier 2 cities with many MNCs setting up their plants in these cities.

While access to many global and domestic brands are limited to major metropolitan regions,

this growing middle class is increasingly turning to e-commerce as the main channel for

stylish consumer products and services which can be made available by click of a mouse to

their doorstep.

3. Payment gateways & logistics: A number of new secure payment gateway companies like

CC Avenue have risen to cater to the needs of the growing e-commerce environment.

Alternative payment methods like net-banking and cash on delivery are now compulsory

provisions for taking forward e-commerce platforms with the potential to carry out more than

75% of transactions online. This coupled with modern technical integrations today make the

overall experience flawless. Even the logistics are now made more efficient and reliable.

4. User Experience: With companies starting to emphasis more on investing in the user

experience, best practices driving e-commerce across the world is one of the key focus of

successful Internet companies, including merchandise, client service, user interface design,

and guaranteed delivery & return policy. In this competitive race to make a distinction via

customer experience, the ultimate winner no doubt has been the Indian online consumer.

M-Commerce Market:

A recent report says that despite the arrival of Smart phones, the market is getting better but

still bleak when compared to e-Commerce scene. (, 2010).



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Figure 5: Frequency of browsing/purchase from mobile devices.

2.2) People Who Use the Internet:

A report (says that compared to 2008, Internet usage is rising nowadays as the prices of

internet is coming down compared to 2008. This report gives some important statistics that

are relevant o this study ().

Statistics on Internet usage and penetration in India (2010):

1,173,108,018 (1.1 billion) population and 88,000,000(88 million) active Internet users in

2010

India has 10.52 million broadband users (till Oct.2010).

Diving deep in to these 88 million user base, a researcher in this field can pull out relevant

information and idea in to the penetration of internet on the basis of usage, age/gender

diversities and habits which are very important for this study.

Statistics about Internet usage considering Age Group and Gender:

2/3rd of households have multiple users in them.

97% are regular users and 79% using daily.

70% of people who know how to operate a computer have used Internet.

19-40 years age group constitutes nearly 85% among Internet users which account to

nearly 75 million users. 85% of Internet users are male.



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11% of the users are working women, 6% non-working women and 2% housewives use

Internet.

46% of net users are graduate, 26% are post-graduate.

Statistics about Internet usage considering cities:

Mumbai has most number of Internet users nearly 3.24 million

Top ten cities having most number of Internet users are Mumbai, Delhi, Bangalore,

Kolkata, Chennai, Pune, Hyderabad, Surat and Nagpur. These 10 cities have 37% of the

total numbers of Internet users in India.

2.3) What people do online in India?

The following details show the reason why people use internet in India.

Statistics about Internet usage considering browsing habits on PC:

94% of total users use Internet forEmail purposes

72% of total users use Internet for downloading music (73%) followed by Chatting (56%).

Other major purposes for using Internet are job searching (56%), social networking sites

(54%) and finding information on search engine (52%).

13,188,580 Facebook users on 31st August, 2010 which equals 1.1% penetration rate of total

Internet users.

Cyber cafes account for maximum Internet usage with over 37% of all users accessing

Internet through cyber cafes.

For understanding why people use mobile internet we have another report (, 2011) the result

of which can be concluded from the diagram below:



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Figure 6: Reasons for people using mobile internet.

In addition to the above information, the report also shows the popular sites browsed on

mobile phones, the details of which are shown in the bar chart below:

http://www.goospoos.com/wp-content/uploads/2011/05/30458_2.jpg


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Figure 7: Popular Websites Browsed on Mobile Phones.

An interesting research done on mobile internet users in India reveal that more people are

now shifting from PC to theirmobiles for accessing internet, the reasons shown in the bar

chart below with the percentage of each reason given :-

Figure 8: Why people prefer to use mobile internet instead of the PC Internet.

2.4) Factors affecting Online consumer Search behaviour:

Since there are not abundant research done to understand the factors affecting consumer

behaviour online, certain studies have been analyzed (e.g. (Grant, 2007) ) which haveextensively reviewed the literature on consumer information search behaviour and grouped

the literature into three research streams, (a) information source utility, which focuses

information content and format issues online and offline, (b) personal factors that lead to

different search behaviour for a common product, and (c) product factors that will lead to

different behaviour by a consumer in the context of different products.

1) Information source utility

Previous research done (Xiao, 2002) as mentioned in (Grant, 2007) identifies the main online

information utility factors as content, accuracy, currency and format of information together

http://www.goospoos.com/wp-content/uploads/2011/05/mobile_internet_usage_thumb.jpghttp://www.goospoos.com/wp-content/uploads/2011/05/mobile-sites.png


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with user friendliness. The article (Grant, 2007) consolidated (Xiao, 2002)variables into the

two distinct topic areas, (1) information content, which deals with breadth and depth of

content, information characteristics, accuracy and currency, and (2) information format

dealing with the communication effects and convenience of medium access.

a) Information content utility

A key characteristic of websites is their ability to carry massive amounts of information with

search utility derived from internal hyperlinks as well as search functions within the site

(McGaughey, 1998) as mentioned in (Grant, 2007). This enables vendors to offer breadth and

depth of information relating to their product that is simply not feasible in offline information

offerings such as brochures and promotional material. This type of information utility is

magnified by the ability to offer further links to external information sources.

b) Information format utility

The ability of online vendors to offer consumers varied information format options such as

print, audio, graphic and audio-visual material for consumers and even interpersonal contact

by audio link or instant messaging type applications has the greatest potential for delivering

customer value as it allows consumers choice of their preferred information format.

1) Personal factors affecting consumer search behaviour

As consumers are unique and their behaviour is varied, examination of personal factors

affecting information search behaviour offline has attracted considerable researcher attention.

Since there are limited online research in this area the article (Grant, 2007) considered

reviewing literature related to:

(1) Cognitive factors, such as product knowledge,

(2) Individual skills in search and information processing,

(3) Personal involvement with the desired product reflected by motivation and risks relating

to the purchase, and

(4) Personality factors such as risk aversion and perceived selfefficacy that are likely to

affect search behaviour on-line.

a) Cognitive factors affecting consumer search behaviour:

The type of product being offered also has an effect on consumer search behaviour with

research analysis of panel data showing surprisingly low search volume for standardised or



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Literature Review

search type products e.g., CDs and books, online (Johnson, 2004) as mentioned in (Grant,

2007).

However, existing research pointed to the importance of internal search or experiential

knowledge in dealing with hard to evaluate product attributes and the need for vendors to

supplement such internal consumer knowledge with credible information in cases where it

is lacking.(Moorthy, 1997) as mentioned in (Grant, 2007). Such internal knowledge is

particularly important for experience type products (Moore and Lehman 1980) where

consumers are more likely to rely on internal search for qualitative/experience type attributes.

This need for consumers to supplement internal information sources with external ones is

an under researched area in online applications. (Moore, 1980) as mentioned in (Grant,

2007).

b) Personal skill factors affecting consumer search behaviour

The effect of personal skills on information search behaviour falls into the three areas of:

(i) Technology skills whichrefers to the consumers ability to engage with varied electronic

networks, and data processing technologies.

(ii) Search skills which refer to the consumers knowledge regarding information access.

(iii) Information processing skills relate to the ability of consumers to extract and process

information that will satisfy their information needs.

It is evident that by examining the technology, search and processing skill levels of their

consumers, vendors can better identify and provide information offerings which add real

value to the consumer decision making process and consequently increase consumers overall

search activity online.

c) Personality factors affecting consumer search behaviour:

Researchers have identified risk aversion as the fundamental reason behind information

search wherein risk aversion has been identified as a consumers natural predisposition to

avoid losses like financial, performance, social through purchase activity. These studies (e.g.,

(Bauer, 1967), (, 1967) etc) has been done more in the offline context and not in the online

context.

d) Personal involvement affecting consumer search behaviour:

The level of personal involvement with the purchase of a product is based on the importance

of that product to the consumer and reflects the level of perceived risk for a given consumer.

Risk is multidimensional with previous research suggest elements of financial, performance,

physiological, psychological and social risks in a product specific hierarchy for each



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Literature Review

consumer(Jacoby, 1972) as mentioned in (Grant, 2007). Moreover recent research collapses

the dimensions into two components of (a) functional risk (financial, performance and

physiological) and (b) emotional risk (psychological and social) and shows the link between

types of risk and distinctly different consumer information preferences which may differ

between individual consumers for a common product(Chaudhuri, 2000) as mentioned in

(Grant, 2007).

1) Product factors in consumer search behaviour

a) Search products. Search products are those which need not be touched, felt while

making a purchase e.g., CDs, books etc. Studies have been done with search type

products which tend to be standardized with strong expectations of performance based on

prior experience(Johnson, 2004) as mentioned in (Grant, 2007).

b) Experience products: these are products which need to be touched, felt and

experienced while making a purchase, e.g., wine, restaurants, travel experiences.

Studies that have been done on online information search by taking specific cases (eg.

People buying cars (Kirmani, 2000), (Klein, 2003) as mentioned in (Grant, 2007)) where both

search and experience elements are found. To satisfy their information needs, consumers

require objective search type data on specifications and performance as well as subjective

information on the experience.

2.5) Factors motivating and de-motivating consumers to buy

online:

There has been lot of study done to understand the factors that motivate customers to buy

goods online. Here we review one study done in the U.s and another study done in India. A

study done in the USA (Ahuja, 2003) indicates that the important factors that motivate

consumers to buy online are:

1) Convenience.2) Saves Time

3) Better Prices.

4) Availability.

5) Customer Service.

The study also indicates that the factors that de-motivate consumers from buying online are:

1) Loss of Privacy/Security.

2) Lack of proper Customer Service.



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3) Lack of interaction between the vendor and the customer.

4) High Prices.

5) Lack of time to use the internet.

6) Inability to feel the product before purchase.

Another study done in India (, 2007) identifies the factors that motivate and de-motivate

consumers from buying goods online.

The factors that motivate consumers from buying goods online are:

1) Saves time and efforts.

2) Convenience of shopping at home.

3) Wide variety / range of products are available.

4) Good discounts / lower prices.

5) Get detailed information of the product.

6) You can compare various models / brands.

The factors that de-motivate consumers from buying online are:

1) Not sure of product quality.

2) Cannot bargain/Negotiate.

3) Not sure of security of transactions /Credit card misuse.

4) Need to touch and feel the product.

5) Significant discounts are not there.

6) Have to wait for delivery.

From the two studies we observe that the factors which motivate the customers in U.S and

India are almost same (Convenience, Saves Time as in US and saves time and efforts,

convenience of shopping at home in India). Likewise the factors that de-motivate consumers

from ordering online in US and India too can be considered almost same.

2.6) Existing Models used to study online shopping from a

marketing perspective:

Previous studies that have been done to profile the internet shoppers to understand the

expected adoption of online shopping in like (Parikh, 2006), (Hansen, 2008) have used the

following theories extensively:

1) Theory of reasoned Action.2) Theory of Planned Behaviour.



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3) Technology Acceptance Model.

In one of the studies mentioned (Parikh, 2006) the following model is used to profile the

internet shoppers in India and determine how actual internet shopping is related to the various

factors displayed below:

Figure 9: Factors affecting actual internet shopping.

Number of years a person using internet was found to be favourable for internet

shopping: Greater the length of internet usage, greater was the chance to buy online.

Greater the number of hours per week a person uses internet; he too was found to be

adapting to internet shopping.

The internet shopping experience also plays a crucial role in determining shopping

online.

Demographic variables like age, place of residence, income levels, sex, culture, etc

also play a huge role in determining the actual internet shopping.

Lastly the intention itself to use internet for shopping which relates to the attitudes of

the consumers that can be understood by the factors that affect the attitudes

(motivators and de-motivators which are discussed in the next section.)

Another study (Hansen, 2008) uses the following model to understand the willingness of

consumers to buy groceries online:

Figure 10: Factors affecting willingness of consumers in ordering groceries online.



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In this study, the willingness to buy online is affected by three factors. The conclusion drawn

from each of the three factors towards willingness to buy online as found out by the study is

discussed below:

1) Subjective norm, which can be understood as the perceived social pressure to

perform or not to perform behaviour. This study concluded that there are direct and

positive relationship between subjective norms and intention to buy groceries online.

2) Perceived Behavioural Control, which is an integral part of the theory of planned

behaviour wherein consumers subjective belief about how difficult it would be for

the consumer to generate the behaviour in question would determine whether the

consumer is willing to buy or not. The study concluded that perceived behavioural

control is directly related to willingness to buy groceries online.

3) Attitude, which relates to the extent to which the person perceives certain behaviour

to be favourable or unfavourable. The study concluded that attitude towards online

grocery shopping is positively related to willingness to buy online groceries. Attitude

which influenced the willingness to buy was affected by the following factors:

Openness to Change, wherein it was found that openness to change is

positively related to attitude towards online grocery shopping.

Conservation or the resistance to new ideas was negatively related to online

grocery shopping.

Self Transcendence or the ability to maintain good social relations is

negatively related to attitude towards online grocery shopping and

Self enhancement which focuses on wealth and power and getting thing done

effectively is positively related to attitude towards online grocery shopping.

In another study (Dash, 2007) use the following model for understanding the role of

Consumer Self Efficacy and Website Social Presence in Customers Adoption of B2C Online

Shopping in the Indian context:



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Figure 11: Role of Consumer Self Efficacy and Website Social Presence in CustomersAdoption of B2C Online Shopping.

The conclusion of this study is that both consumers self efficacy (which reflects anindividuals comprehensive judgement on whether he is capable of implementing a specific

task) as well as the Websites Social Presence (the virtual features incorporated in the online

store that enables the customer to avail information to take a decision to purchase the right

product with the help of virtual advisers. It explores how human warmth and sociability can

be integrated through the web interface for positively influencing the consumer attitudes

towards online shopping) would directly impact the trust on the online web vendor. Moreover

the study also pointed out that the consumer trust building measures would lead to reduction

in perceived risk associated with online shopping, which finally would result in a more

favourable consumer attitude towards the purchase of the product online.

In another study about the role of good relationship between the online vendor and the

customer was studied and a model was adopted to include key relational concepts like

satisfaction, value and loyalty. Trust and its components were a major part of this model

(Palvia, 2009). The model was as follows:



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Figure 12: Model for role of good relationship between the online vendor and theconsumer.

From the study it was concluded that as consumers use a vendors website they develop value

and satisfaction. Value leads to the development of loyalty, and the consumers willingness to

continue in the relationship as well as spreading about the websites performance through

word of mouth.

2.7) Changing Breakfast Consumption.

Breakfast in India has always been perceived as the most important meal for an Indian

family; a way to usher in a new day of activities. In a recent report in an Indian Food and

Beverage website one article,(Mukherjee, 2010) talks about the changing breakfast patterns

in India.

From the past few years a combination of psychographic and socio-economic factors has

contributed to this change in the breakfast consumption in India like rising awareness on

health and wellness, paucity of time, enhanced focus on convenience, increased level of

affluence, and a rise in the number of nuclear families. As mentioned here there are many

important factors that have lead to the change in breakfast consumption in India. The three

major changes that are responsible for creating this change are:

a. Increased Health Consciousness

b. Lifestyle Changes

c. Convenience.



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Figure 13: Changing breakfast patterns in India.

2.7. a) Increased Health consciousness: India has become the world capital for diabetes and

heart-related problems; the number of such patients in India is increasing at an alarming rate.

Therefore, this has intrinsically transformed urban Indians from being health-casuals into a

health-conscious lot. In addition, greater pressure to manage personal, social and professional

responsibilities has resulted in Indians realizing the importance of living a physically,

emotionally and intellectually better life. This has worked as a change agent triggering a

radical shift in the way Indians have been approaching their life. They are increasingly

realizing the ill-effects of having a heavy and oily breakfast and that a cereal-based,

nutritionally-fortified and lighter breakfast may provide the necessary nutrition.

2.7. b) Changing Lifestyles:

Compared to yester years, an average Indian consumer today has become more affluent and

crunched for time as a result of their changing employment patterns. Indians have preferred

to work for long hours in higher-paying jobs than low-paying fixed time jobs. The

participation of women in the work force has increased significantly as well. As most of these

jobs were located in very few geographic clusters in India, lots of Indians had to relocate tonewer cities or places closer to work. This has given rise to a massive number of double

income households, as well as empty nests.

With increased work-pressure, preparing a traditional breakfast, which consumes a lot of

time, started seeming like a luxury and increasingly gave way to breakfast options which

could be prepared and consumed in lesser amount of time. This is perhaps one of the major

issues that have changed the breakfast consumption pattern in India until recently. Indian

wives, traditionally, took pride in preparing breakfast for the entire family. However, a lot of



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women in India today work and they do not possess the skills to prepare traditional Indian

breakfasts such as Idli, Vada, Puri, Paratha, etc. They are keen to adopt quick solutions like

eating at workplace or preparing food that are quick or easy to make.

2.7. c) Convenience:

Another factor playing an important role in changing the breakfasting pattern of the Indians is

the present generations over-emphasis in seeking convenience. In the age of mobile phones,

ATMs, internet banking and Botox, convenience is the new way of life. Younger generation

today which includes both young bachelors as well as newly married couples, in India are

continuously moving away from the hassles of cooking a breakfast at home which demands

plenty of time and energy.

Based on these recent changes in the Indian breakfast consumption pattern marketers have

greater opportunities in either providing wholesome breakfast to time pressed customers with

rich and healthy ingredients like as corn flakes, muesli, oats, cereal bars, whole-grain/multi-

grain breads, etc. Another successful idea that would also be well received by customers

would be to deliver hot breakfast at the doorstep or at the workplace of customers wherein

breakfast can be ordered online (telephones, mobile or via internet.). This would be the

marriage of tradition and technology wherein traditional breakfast (The expression good

breakfast in Indian societys traditionally symbolized warm, tasty and wholesome food) can

be ordered through gadgets like mobile phones, or internet enabled devices.

Considering the case of home delivered breakfast we can summarize that the important

factors that a consumer would keep in mind for a nutritious breakfast is:

1) Rich in nutrition

2) Taste of food delivered

3) Packaging of food

4) Timeliness of Delivery.

5) Hot and fresh when served.

The concepts obtained from the literature that has been reviewed would be used to understand

the factors that influence the attitude of consumers in ordering breakfast online in Pune.



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METHODOLOGY


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3. MethodologyThis chapter details the methodology used for the study.

3.1 Nature of Study:

This study seeks to understand the factors that influence the attitudes of consumers in

ordering breakfast online.

3.2 Objectives of Study:

To understand the factors that influences the attitudes of consumers in ordering

breakfast online.

To use the above understanding to cater to the needs of the consumer segment that has

identified for the study by giving them the desired product of their choice.

3.3 Data Collection:

Primary data was collected from the respondents whose characteristics are described below.

The data was collected by asking the respondents in filling up a questionnaire by meeting

them in person or through phone or e-mail. Apart from the questionnaire, the feedback and

opinion of the respondents regarding their attitude towards ordering breakfast online was also

recorded which is used to interpret certain findings of the study.

In all, 163 responses were collected of which 112 belonged to the target group of respondents

which was used for the study.

The data collected comprised of primary data collected from select localities ofPune city in

Maharashtra, India. The select localities were Aundh, Baner Road, Pashan, Hinjewadi

and Sus-Road. The data was collected in these localities because the select localities

mentioned above in Pune were characterized by the following features which are essential for

this study:

Large Influx of non-natives of Pune; many residents categorized as floating

population.

Large number of IT/ITeS professionals and students on whom the study is done to

see the likelihood of behavioral shift in eating breakfast at home than in a

restaurant.

Unavailability of variety of restaurants serving food at affordable costs.



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In the select localities of Pune mentioned above, the people on whom the study was done

comprised of respondents who had the following characteristics:

People working in the IT/ITeS sector and students who are staying away from

home in flats as Paying Guests or in Hostels in which food is not available.

With regards to cooking their breakfast, both the groups are characterized by one

or more of the following:

Their place of residence lacks infrastructure at home for cooking.

They are time constrained that they dont cook in the morning.

They dont know cooking.

The Model for the Study:

Figure 14: Model of Consumer Behaviour.

Explanation of the model:

This model explains the relationship between the consumer decision process, his self-concept

and lifestyle where a consumers lifestyle and self concept is influenced by the internal and

external influences. This model explains the decision process of students and IT/ITeS

professionals by relating to their self concept and lifestyle which in turn is affected by the

internal influences and external influences.



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The external influences include the:

Cultural factors like city life, multi cultural environment, predominantly tech-

savvies, open to new concepts and ideas.

Social Factors that includes influences of friends, peers, colleagues and social

roles like belonging to the tech savvy, sophisticated group of individuals.

Personal factors like age and occupation (students and It/ITeS professionals).

The internal influences include:

i. Perception towards the idea of ordering breakfast online which includes factors

like ordering breakfast online is an easy process etc.

ii. Motivation to order breakfast online because it is convenient etc.

iii. Learning occurring from recommendations from family and friends and ones

own experiences etc.

iv. Memory involving the recall of the concept of ordering breakfast online etc.

The internal influences and the external influences result in the self concept and life style of

the person. In case of students, their lifestyle is adventure loving, variety seeking, and non

risk averse while in the case of It/ITeS professionals it is more of stressful work, busy

weekdays, risk- averse etc.

The internal and external influences and their ability to affect the self concept and lifestyle of

individuals which ultimately affect their decision process which is categorized into the

following:

Problem Recognition: The problem is recognized by understanding the

importance respondents give to breakfast, whether they skip breakfast on any day

of the week, the reasons for skipping the breakfast.

Information Search: Here the consumer starts looking for information to find

alternatives for satisfying his need, considering the idea of ordering breakfast online

practical or not?

Alternative Evaluation and Selection: Here the respondent identifies ordering

breakfast online as one of the alternatives and determines the critical selection factor

for ordering breakfast, the factors that result in positive and negative attitude

respectively.

Critical selection factors for ordering breakfast online. The five selection factorsused in this study for ranking by the respondents are:



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1) Timeliness of Delivery.

2) Taste of food.

3) Nutritious food.

4) Packaging of food.

5) Hot and Fresh.

Ranking among the factors in each group to understand the factors responsible for

creating a positive attitude towards ordering breakfast online in the respondents.

The five factors that create positive attitude as adapted from exist

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