A STUDY ON BUYING BEHAVIOUR OF CONSUMERS TOWARDS INSTANT FOOD PRODUCTS IN KOLAR DISTRICT Thesis submitted to the University of Agricultural Sciences, Dharwad in partial fulfillment of the requirement for the Degree of MASTER OF BUSINESS ADMINISTRATION In AGRIBUSINESS MANAGEMENT By USHA V. DEPARTMENT OF AGRICULTURAL MARKETING, CO-OPERATION AND AGRIBUSINESS MANAGEMENT COLLEGE OF AGRICULTURE, DHARWAD UNIVERSITY OF AGRICULTURAL SCIENCES, DHARWAD-580 005 JULY, 2007
Transcript
A STUDY ON BUYING BEHAVIOUR OF CONSUMERS TOWARDS INSTANT FOOD PRODUCTS IN KOLAR
DISTRICT
Thesis submitted to the University of Agricultural Sciences, Dharwad in partial fulfillment of the requirement for the
Degree of
MASTER OF BUSINESS ADMINISTRATION
In
AGRIBUSINESS MANAGEMENT
By
USHA V.
DEPARTMENT OF AGRICULTURAL MARKETING, CO-OPERATION AND AGRIBUSINESS MANAGEMENT
COLLEGE OF AGRICULTURE, DHARWAD UNIVERSITY OF AGRICULTURAL SCIENCES,
DHARWAD-580 005
JULY, 2007
ii
ADVISORY COMMITTEE
DHARWAD (H.S. VIJAYAKUMAR) JULY, 2007 MAJOR ADVISOR
Approved by : Chairman : _________________________
(H.S. VIJAYAKUMAR)
Members : 1. _________________________ (V.R. KIRESUR)
4.1 Awareness of consumers towards Instant Food Products
4.2 Factors influencing the consumption of Instant Food Products
4.3 Brand loyalty of consumers of Instant Food Products
4.4 Brand composition of Instant Food Products
4.5 Demand potential for Instant Food Products
DISCUSSION
5.1 Awareness of consumers towards Instant Food Products
5.2 Factors influencing the consumption of Instant Food products
5.3 Brand loyalty of consumers of Instant Food products
5.4 Brand composition of Instant Food products
5.5 Demand potential for Instant Food Products
SUMMARY AND POLICY IMPLICATIONS
REFERENCES
APPENDICES
ABSTRACT
List of Tables
Table No.
Title
4.1 Income Wise Distribution of Households of Kolar District
4.2 Socio-Economic Characteristics of Different Income Groups
4.3 Awareness of Consumers About Instant Food Products
4.4 Brand Awareness of Consumers about Instant Food Products
4.5 Overall Brand Awareness of Consumers about Instant Food Products
4.6 User Categories of Instant Food Products
4.7 Reasons for not Purchasing the Instant Food Products
4.8 Factors considered for using Instant Food Products in Mulbagal Taluk
4.9 Factors considered for using Instant Food Products in Mulbagal Taluk
4.10 Factors considered for using Instant Food Products in Gudibande Taluk
4.11 Sources of information about Instant food products
4.12 Monthly Expenditure of Households (Rs/Months)
4.13 Purchase and Consumption of Instant Food Products by Households in Bangarpet Taluk
4.14 Purchase and Consumption of Instant Food Products by Households in Mulbagal Taluk
4.15 Purchase and Consumption of Instant Food Products by Households in Gudibande Taluk
4.16 Products Purchase Frequency in Bangarpet Taluk
4.17 Products Purchase Frequency in Mulbagal Taluk
4.18 Products Purchase Frequency in Gudibande Taluk
4.19 Sources of Purchase of Instant Food Products in Bangarpet Taluk
4.20 Sources of Purchase of Instant Food Products in Mulbagal Taluk
4.21 Sources of Purchase of Instant Food Products in Gudibande Taluk
Contd…
Table No.
Title
4.22 Decision Makers of Instant Food Consumption in Different Income Groups
4.23 Brand loyalty of Consumers towards Instant Food Products in Bangarpet Taluk
4.24 Brand loyalty Consumers of Instant Food Products in Mulbagal taluk
4.25 Brand loyalty Consumers of Instant Food Products in Gudibande Taluk
4.26 Reasons for not preferring particular brand of Product
4.27 Purchase behaviour of different Brands of instant food products in Bangarpet Taluk
4.28 Purchase behaviour of different Brands of instant food products in Mulbagal Taluk
4.29 Purchase behaviour of different Brands of instant food products in Gudibande Taluk
4.30 Factors Influencing Brand Preference of Instant Food Products
4.31 Estimated equation of demand for Instant Food Products in Kolar District
4.32 Potential Demand for Instant Food Products
List of Appendices
Appendix No.
Title
1. List of Taluks and Hoblies selected under study
2. A study on buying behaviour of consumers towards Instant Food Products in Kolar District (schedule for individual consumer families)
1. INTRODUCTION
The word 'food' refers to the chemical substances taken into the body in order to keep the body in a healthy and active condition. The body requires food for growth, repair and replacement of its worn-out tissues. Hence, food has to provide the required raw material, energy and other regulating substances, like vitamins and minerals, for the smooth functioning of the body, besides meeting the calorific requirements like carbohydrates, proteins, fats, etc., India is the world’s second largest producer of food next to China and has the potential of being biggest industry with food and agricultural sector contributing 26 per cent to Indian GDP. It has the capacity of producing over 600 million tons of food products every year; it is likely to be doubled in next ten years. Food accounts for the largest share of consumer spending. Food and food products account for about 53 per cent of the value of final private consumption. This share is significantly higher than in developed economies, where food and food products account for about 20 per cent of consumer spending (www.tata.com). The average monthly per-capita consumer expenditure (MPCE) was Rs. 511 for rural India, which comprised of Rs.305 for food and Rs. 206 for non-food commodities. For urban population, it is Rs. 1060, which comprised of Rs.441 for food and Rs. 619 for non-food items. There was a decline in the share of food in total expenditure that is 54 per cent in rural areas compared to 64 per cent in 1987-88 and 42 per cent in urban areas compared to 56 percent during 1987-88 (National Sample Survey Organization, GOI).
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 23.3 per cent in 1981 to 27.8 percent in 2001. During the same period the female work participation rate had increased from 19.7 to 25.7 per cent. The per capita income increased from Rs.7, 328 in 1980-81 to Rs.10, 306 in 2000-2001. The change in food habits was evident from the growth of food processing industries.
Indian Food Processing industry
The food processing industry in India is one of the largest in terms of production, consumption, export and growth prospects. Important sub sectors in food processing industries are fruit and vegetable processing, fish-processing, milk processing, meat and poultry processing, packaged/convenience foods, alcoholic beverages and soft drinks and grain processing.
According to Ministry of Food Processing Industries, the size of the food processing industry was about Rs.315, 000 crores and included Rs.99, 000 crore of value added products. About 300 million upper and middle class people consume processed food; 200 million more consumers are expected to shift to processed food by 2010. The food processing industry accounts for 13.5% of the country’s industrial output. It generates 18% of gross domestic product and employs about 19% of the industrial labour at national level. Products like papad, pickle and spice mixes have been hugely successful in recent years. The size of this particular segment alone is estimated at about Rs 100 crore. Rabo India Finance had projected that the Indian food processing industry would increase to Rs 11,500 billion by 2014-15. Processed products like ‘chapaties’, ‘subzies’ and portion packs of concentrated curries are fast becoming regular diets, especially for young couples. The product range includes foods like ‘puri-bhaji’ and ‘dosa-vada’. Processed food products like pickles, chutneys, juices and curry powders had made their entry into the kitchens of most middle-class households a long time back. There are a whopping 15 crore middle class individuals, of which 60% are below 35 years — a segment that is increasingly depending on processed foods. This throws open an ideal opportunity for small entrepreneurs who are eyeing this segment for making a fortune.
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% from 16%. 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 total exports of Indian food processing industry had increased by about three times to Rs.53,000 crores in 2003-04, from Rs.17, 600 crores in 2002-03. Considering the greater potential for food processing industry in India, government had committed to encourage various activities for the development of this sector. Indian government had been giving importance to the food-processing sector, by way of fiscal incentives to encourage commercialization and value addition of agricultural produce, for minimizing pre/post harvest wastage, generating employment and export growth. The government gave five-year tax holiday for new food processing units in fruits and vegetable processing. From 2000-01 to 2006-07 Government had also approved proposals for joint ventures; foreign collaboration, industrial licenses and 100 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.
Instant food products
The Instant food products, which originated in Japan with Instant noodles had its beginning in India in 80’s, are found today in the kitchen shelves of every Indian household. The advancement of science and technology offered the people new foods processing vessels, equipment and tools but still people are in search of new techniques to speed up the cooking process in order to cope up with mechanical life, as they do not have sufficient time to cook food in the conventional methods. In the ever changing socio-domestic scenario, both men and women have to necessarily go for employment to augment the household income and cooking food in traditional methods is really an ordeal for women. Capitalizing this situation, business houses ranging from small time manufactures to multinational corporations have started innovating and commercializing “easy to cook food items” like noodles, vermicelli, gulab jamun, instant idli, vada, dosa mix, etc., that are otherwise called instant. The instant food products are not only easy to cook but also have a significant role and place in the celebration of the family functions and religious functions of the people.
Oxford Advanced Learners Dictionary defined instant food products as “Instant food products which are prepared and packaged often in powered form are required only the addition of a liquid as water or milk for final preparation”.
In the modern days, where the life is at fast pace with the time very valuable to every person, "Instant Foods" play an important role in everyone's day-to-day life. The very term 'instant food' means simple, fast and convenient food, which is easy and fast to prepare besides being hygienic, free from microbial contamination and also convenient to eat. Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits to foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. Preparing food with instant mixes has become a way life and no doubt they are going to be an integral part of food habit in future. Canned foods, convenience foods, fast foods, frozen foods, instant products, dried foods, preserved foods, etc. all come under instant foods or 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. These foods are widely used in catering industries as well as at homes. There are varieties of instant/ready-to-eat foods available in the market to choose from and they have become a part of every day life. It is a food revolution that's been a long time coming. As double-income nuclear families become the norm in urban India, everyone who is anyone in the food business has been eyeing the ready-to-eat food sector with considerable hunger.
Among the processed food segment, instant food products occupied a considerable shelf space in stores and super markets in India. Food companies through instant food
products had provided high quality food choices, which would have been inconceivable to ancestors. Instant food mixes formed a range of convenience food for households, being easy to use without terminal processing and women found it very convenient to use. It helped them to save time and effort and relieved them of the tedious jobs of collecting various ingredients, cleaning and sorting them and preparing food. Modern homes also do not offer the facilities necessary for traditional processing and hence these products gained instant acceptance. These instant mixes can be used for preparations of various snack foods, sweets and preparations with rice. The sweet preparation included Gulab jamoon mix, Payasam mix, Badham mix, Purfi mix; the snack mixes included bajji mix, vada mix, bonda mix and the preparations with rice includes puliogare mix, tomato rice mix, lemon rice mix and coconut rice mix, Bisibele bath mix, etc., The instant mix market in India was approximately Rs.150 crore during the year 2003 and at the end of 2004, it was around Rs.350 crore. And by March 2007 the size of the Indian Ready to eat market was approximately Rs.600-700million (Indiantelevision.com. March 10, 2007).
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 instant/ready-to-eat foods. They are very popular in the Western region of the world. Even India is being influenced by these instant foods.
Main reasons for popularity of Instant Food Products
1. Emergence of Industrial society (i.e., metropolitan cities) – 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 instant foods in the market.
2. Reduced domestic servants – Due to industrialization, the labour category is getting attracted to it because of better emoluments and hence there is a shortage of home maids-servants. Due to this, the housewives in order to save time started using instant foods.
3. Womenfolk taking to job- As the literacy rate is increasing among 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.
4. Emergence of nuclear families- 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 instant foods in order to save time and energy.
5. Prices of raw materials- This forms one of the major factors for the use of instant foods in the present world. As the prices of some of the raw materials are continuously increasing, the purchases of these foods formed more economical.
6. New products- As there are different new products coming up in the markets daily that are very cheap and easy for using and preparing, the popularity of instant foods is increasing.
7. Drudgery of work- In order to award the heavy laborious work like grinding manually and other drudging works, people opt for instant foods, which are easy to prepare and eat.
8. Convenience- Instant foods are convenient to prepare and are economical. This increased its usage by the people as it saves the time, energy and money.
9. Increasing income- Due to establishments 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 to opt for instant foods.
10. Standard of living- 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 instant foods more compared to the old traditionally prepared foods.
11. Media- 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.
The above factors are responsible for the popularity of instant food products in Indian market. The marketer should see to it that the instant 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 want, where they want and the manner in which they want. These methods help in increasing the sales of the product with good feedback from the customers and creating a niche for instant foods in the market.
Though there are so many instant foods available in the market, their popularity is increasing in a slow pace, especially in the rural markets, due to lack of awareness compared to larger cities where they are widely available and also more popular. For the convenience Instant Food Products are classified into three categories, which suits to rural consumers that involves less cost. One product from each category is selected for the study such as
1. Cereal based products. e.g. Dosa/Idli mix
2. Fruit and Vegetable based products. e.g. Pickles
3. Spice based products. e.g. Sambar masala
Problem focus
Several firms had been engaging in production and marketing of instant food products. Hence, the consumers had greater options to choose from. In this context, a study on consumer behaviour was deemed 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 undertaken with the following objectives.
Objectives of the Study
The specific objectives of the study were;
i. To study the extent of awareness towards Instant Food Products,
ii. To analyze factors influencing the buying behaviour of Instant Food Products,
iii. To analyze brand loyalty for Instant Food Products,
iv. To study brand composition of Instant Food Products
v. To estimate demand potential for Instant Food Products
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 from their memory and experience, the collected data would be subjected to recall bias. The study area was limited to Kolar district and the findings may not be applicable to other markets, as vast differences exist among the consumers with regard to demographic and psychographics 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.
2. REVIEW OF LITERATURE
In this chapter, research works done in the past regarding awareness, factors influencing the consumption, brand loyalty, brand composition and demand estimation of food products has been reviewed and presented as under.
2.1 Awareness of consumers
2.2 Factors influencing consumption
2.3 Brand loyalty
2.4 Brand composition
2.5 Demand estimation
2.1 AWARENESS OF CONSUMERS
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 behaviour, within three environments (home, school and social). The results indicated that the perceived dominance of 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.
Aaker (2000) regarded brand awareness as a remarkably durable and sustainable asset. It provided a sense of familiarity (especially in low- involvement products such as soaps), a sense of presence or commitment and substance and it was very important to recall at the time of purchasing process. Apart from the conventional mass media, there were other effective means to create awareness viz., event promotions, publicity, sampling and other attention-getting approaches.
Yee and Young (2001), aimed to create awareness of high fat content of pies, studied consumer and producer awareness about nutrition labeling on packaging. For this, seven leading pie brands were analyzed for fat content and are ranged from 7.1 to 19.2% fat. Potato topped or cottage pies had the lowest fat content (7.1-9.2% fat). Most pies did not display nutritional labeling on packaging. Over half of the consumers (52%) who responded to the survey (42% 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.
Chen (2001) expressed a different thought on brand awareness that it was a necessary asset but not sufficient for building strong brand equity. In his view, a brand could be well known because it had bad quality.
Beverland (2001) analyzed 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, the results 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.
Nandagopal and Chinnaiyan (2003) concluded 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) indicated that, the buying behavior 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.
2.2 FACTORS INFLUENCING CONSUMPTION
Balaji (1985) studied fish consumption behaviour of 526 consumers in Vishakapatnam city. The study revealed that 77 per cent of respondents consumed fish for dinner and 22 per cent for lunch. About 30 percent 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.
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 regards to its sweetness or dryness and the suitability for all tastes. Some of the implicit factors identified through extensive questioning were, colour and appearance. Most consumers seemed to prefer white wine to red. Packaging, appearance, colour, ornateness, use of foreign language and graphics were taken as important clues for quality and price. Consumers preferred French or German made wines to Spanish or Yugoslavian wines.
Kumar et al. (1987) examined 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.
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 away from home, and generally an increased demand for convenience foods. The prospects for high quality branded products are seen to be good.
Puri and Sangera (1989) conducted a survey to know the consumption pattern of processed products in Chandigarh. Jam was found to be most popula,r irrespective of income. Orange squash consumption was maximum in high and middle-income families. Pineapple juice consumption increased with a rise in the income.
Sabeson (1992) in his study stated that, high quality, price and taste of the product were the major criteria based on which the consumers selected a brand of processed fruits and vegetable products.
Rees (1992), in his study revealed that factors influencing the consumer’s choice of food are 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 have produced changes in eating habits. Vigorous sale of chilled and other prepared foods is related to the large numbers of working wives and single people, who require and value convenience. Development in retailing with concentration of 80% of food sales in supermarkets is also considered to be important. Consumers are responding to messages about safety and health eating. They are concerned about the way in which food is produced and want safe, ‘natural’, high quality food at an appropriate price.
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.
Singh et al. (1995) studied factors influencing consumer preferences for milk. They were milk quality, convenient availability, supply in quantity desired, flavour, colour, freshness and mode of payment showed higher levels of consumer satisfaction.
Study of 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 is 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 in sales promotional measures.
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.
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.
Srinivasan (2000) reported 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 tolerate limit of price increase identified was less than 5%, any price change above this limit, would result in discontinuance of the use processed product. Consumers preferred processed products because of convenience of ready to eat form.
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.
Nandagopal and Chinnaiyan (2003) conducted a study on brand 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.
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. 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.
The study conducted by Shivkumar (2004) showed that the consumer, irrespective of income groups, was mainly influenced to purchase by the opinions of their family members. Consumers are influenced by the dealers’ recommendation, fallowed by advertisement.
Nagaraja (2004) opined that, buying behaviour is very much influenced by experience of their own and of neighbour consumers and his own family. The involvements of his own family members were exerting maximum influence on his purchases. 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.
Kubendran and Vanniarajan (2005) elicited that; the change in consumption pattern was due to changes in food habits. If income and urbanization increase among consumers, the percentage of income spent on consumption increases. The urban consumers preferred mostly branded products compared to rural consumers. The most significant factors
influencing buying decisions were accessibility, quality, regular supply, door delivery and the mode of payment.
2.3 BRAND LOYALTY
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.
Shanmugasundaram (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%), followed by Limca (24.80%). It was found that 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 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.
Frederick Reichheld (1994) pointed out in his book, “The Loyalty Effect”, that, ‘customers equity effectively explains success and failure in business’. The companies with the highest retention rates also earn the benefit profits. Relative retention explains profits better than market share, scale, cost position or any other variable associated with competitive advantage.
Ranganatham and Shanthi (1995) conducted a study on brand image among refrigerators in Tamil Nadu. The study revealed that Kelvinator scored higher for working of its power saving compressor, cooling power and its price was considered, except for defrost and new features. Voltas brand clearly outperformed others with respect to working of defrost system and always caused satisfaction with the models available under its brand name. The potential buyers felt that Godrej and Voltas had got a well known corporate identity.
Hans et al. (1996) revealed that, the brand switching of consumer was based on variety seeking behaviour, motivations, curiosity and price motive.
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.
Aaker (1997) studied about building brands without mass media. He revealed that, several companies in Europe have come with alternative age. Various companies share characteristics that could serve as guidelines for any company hoping to build successful brand. The major characteristics are (i) Senior managers were carefully involved with brand buildings efforts. (ii) The companies recognized the importance of clarifying the core brand identity and they made sure that all their efforts to given visibility were lead to that core identity, studying methods of companies outside one’s own individual and country can be instructive for managers.
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.
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.
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.
Burke (2001) created a brand equity index comprising of three components, best described as brand equity molecule. This is overarching device of retaining and attracting customers. The three atoms, which embedded to molecule, were image, value and loyalty. Image and value perceptions pull in new customers, while loyalty retains customers.
White (2001) examined the factors motivating US specialty food and beverage buyers to make purchases via the Internet. More than half (55.6%) of the respondents who purchased items available locally and 39% of the respondents who purchased items that were not available locally cited convenience as a motivator. Nearly one-third of all respondents indicated that their purchase was motivated by product-related factors, such as, brand loyalty, previous experience with a retailer, product selection, perceived quality and/ product experimentation. Price was of relatively little importance to respondents, with 22% citing it as a purchase motivator.
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 47.5% of the households purchased canned peaches in syrup, 67.4% purchased peach juice and 42.6% purchased peach jam. Reasons for such purchase were satisfactory taste and qualities and households' perception that they are healthy products. The results also indicated that the consumption quantities were considered low, while households usually purchased the same brand name, meaning that there is a tendency for brand loyalty.
Price and Connor (2003) identified the determinants of coupon values at the brand level within the context of a complex marketing programme. The results revealed that, higher brand prices caused coupon values to rise, supporting the price discrimination hypothesis. Coupon values fall with in-store displays and more intense advertising, but rise when couponed products are featured in store flyers. Discount levels are positively related to brand market share and the size of discounts redeemed for rival cereals. Coupon values fall with increasing brand loyalty among RTE cereal purchasers. Cereal prices are positively affected by coupon values, advertising expenditures, input costs and the prices of competing brands.
Nick Wreden (2004) in his book entitled “Fusion branding: how to forge your brand or the future”, reveals that, branding has a little secret; it doesn’t know how to count. But the author mentioned the measure of brand is a pseudo-measurement, i.e., brand equity. It can be used to overcome the inability of traditional accounting to measure intangible strategic assets, like perceived quality, brand and channel resources, rose to power point fame in marketing for several reasons. It appeared to quantify intuitive recognition about the value of the brands. It incorporated two brand strengths – it’s standing with purchases and perception among prospects and customers. Brand strength provides a means to rank winners and losers in branding wars.
Rajarashmi and Sudarsana (2004) revealed that, almost all the sample respondents preferred branded products and if their favorite brand is not available in the retail shop, they will go for another store and their favorite brand. If it is not available in the market, the respondents are ready to postpone their decision.
Kim-Hyunah et al. (2005) analyzed the relationship among brand equity factors (brand awareness, brand image, brand preference and brand loyalty) and suggested a strategy for brand management in contract food service management companies. He concluded that brand awareness has positive effect on brand image and brand preference and recommended that the contract food service companies should focus on improving brand awareness as a brand strategy. In addition, brand preference and brand image have significant positive effects on brand loyalty. Thus, the companies should strive to strengthen brand loyalty through building brand preference and brand image. Brand loyalty promotes
more customer visits, which is directly related to profitability of contract food service management companies, the authors concluded.
Al-Weqaiyan (2005), using the attitude behaviour model, conducted a cross-national study of purchase intentions of fast-food meals in Kuwait, where creating and maintaining a strong brand loyalty is essential to long-term marketing success. He reported that, repurchase intent is a function of four sets of independent factors such as (1) Attitude that results mainly from earlier experiences with the brand;(2) Perceived barriers to switching from the present brand; (3) tendency to seek variety to break the boredom resulting from engaging in consistent brand choices; and (4) cultural differences represented in some traits of the national character. The results revealed that factors affecting repurchase intents vary across the two cultures.
Narang (2006) opined that, a buyer does not stick to one brand in case of food purchasing. They should be able to recall different brand names when they go for purchase. Repetitive advertising can be used to promote brand recall. The product should be associated with style and trend, so that it appeals to the youth and the brand name should be developed as a fashion statement. Promotional schemes such as discount and free offers with purchase are suggested to increase rates.
Vincent (2006) elicited that quality is an important factor that draws consumers towards branded products. Branded products are 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 behavior. 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.
2.4 BRAND COMPOSITION
Sabeson (1992), in his study stated that high quality, price and taste of the product were the major criteria based on which the consumers selected a brand of processed fruits and vegetable products.
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.
Bristow et al. (2002) mentioned brand name as a node to which the linkages or the brand associations might be linked. A node was activated initially by an external cue, would also activate associated nodes through a set of linkages in place and the final set of information recalled would be based on the particular path of nodes and linkages activated in the given situation. Thus, brand name might be part of several different sequences, depending upon the activated path.
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 source of information about branded fine rice. The monthly purchase is 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 is the factor, which influences 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.
Sampathkumar (2003) studied about brand preference in soft drinks in Telangana region of Andra Pradesh. He found that in rural market about 37.5 per cent of consumers prefered Thumbs-up (urban 30%), followed by Coco cola (28.5%) (urban 37.5%), Pepsi 12.5 per cent (urban 9%), Limca (4 per cent) (urban8.5%). Most of the urban consumers (67per cent) purchased soft drinks in nearest Kirani stores (rural 73%), followed by super bazaar (27
per cent) (rural 26%) and others (6 per cent0 (rural 1%). The method of physical distribution played very vital role in company’s success and failure in the market. Transportation is among the major functions of physical distribution. Transport adds time and place utility for the product.
Kubendran and Vanniarajan (2005) founded that, the change in consumption pattern is due to changes in food habits. If income and urbanization increase among consumers, the percentage of income spent on consumption increases. The urban consumers prefer mostly branded products compared to rural consumers. The most significant factors influencing buying decisions were accessibility, quality, regular supply, door delivery and the mode of payment.
Ramaswamy 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%) laid emphasis on quality and 76% on price which is an important factor, while 64% of respondents attached importance to the image of the manufacturer and 50% considered packaging as an important factor and an equal percentage (50%) 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 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.
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 behaviour. It is helpful for plants in making purchase decision of durable goods for the family.
2.5 DEMAND POTENTIAL
Alderman (1987) attempted to estimate the demand for milk supplied by the co-operative sector, taking into consideration the socio-economic status of the producers and consumers. It was estimated that the average expenditure on milk by the sample consumers was 9 per cent and the elasticity was 0.0113. It was also observed that the demand for milk products, especially ghee, yogurt and butter, were rapidly increasing compared to that of milk.
Mergos and Donatos (1989) applied the “Almost Ideal Demand System” model for annual food expenditure in Greece for the period from 1950-1986. The empirical results showed that milk had an income elasticity of 0.76, which was the highest. The demand for milk, dairy products and eggs was high and had a rather stable food budget share. Meat had acquired a dominant position as indicated by its fourfold increase in quantity, but had low price elasticity.
Sharma and Vashisi (1991) used secondary data from various sources to project the demand and supply of milk in Himachal Pradesh. The income elasticity of milk was derived using double exponential function. Income elasticity was used as proxy for expenditure elasticity. The results showed that demand for milk would depend upon growth of human population, urbanization and growth in real income of people. The income elasticity of demand for milk was 0.89. The projected demand for 2000 A.D. was 122.28 litres per capita per year and the expected increase in total demand was 7,84,170 tonnes.
Singh et al. (1993) made an attempt to estimate demand for and supply of milk in Haryana by considering factors like growth in population, growth in per capita income and urbanization. The study revealed that current and future milk production in Haryana would meet the minimum nutritional requirement during the period (1987-88 to 2004-05). There was about 11.63 lakh tonnes surplus milk in the year 1987-88 and there would be about 24.52 lakh tonnes of surplus milk after meeting nutritional requirement of milk by the end of 2004-05. However, the demand for milk was to be met up to 1995-96. After that Haryana state would be marginally deficit in milk production.
Durga and Murthy (1995) attempted to estimate demand for food in urban and rural areas using NSS data. The popular “Almost Ideal Demand System” was used for this purpose. Demand projections were made under two alternative income growth scenarios for the period from 1988-89 to 1992-93. The two-model variant was found to forecast the demand
differently. It was concluded that the cereal consumption declined over the years in urban India, signaling shift in consumers taste and preference away from cereals.
Pagire and Shinde (1999) conducted a study on the demand for and supply of grapes in Maharashtra, considering recommendation of 120 gms of fruits per capita per day by the ICMR (Indian Council of Medical Research). The demand (requirement) for grapes in the state was estimated for the year 2001 AD for the projected population of the state (8.68 crores). The estimated requirement was 93.72 thousand metric tonnes at the rate of 20 gms per capita per day and it was 140.62 thousand metric tonnes at the rate of 30 gms per capita per day for the state.
Selvaraj and Sundavaradarajan (1999) undertook a study of demand for and supply of fruits and vegetables in Tamil Nadu, using time series data with the assumption of 1.30 per cent growth in population for 2000 and based on minimum per capita requirement of 32.85 kg/year of fruits and 103.66 kg/year of vegetables. These were estimated at 20.40 lakh tonnes, respectively for 2000 AD. Nearly 10.50 per cent of annual production as waste due to lack of preservation, one percent of annual production for processing, 20 percent for post-harvest losses and one percent for industrial processing were included in estimating the total requirement. The study suggested that, increasing the possible area through wasteland management for growing fruit trees and vegetables could arrest the low production. The horticultural farms could be made to stabilize productivity through technological breakthrough.
Paroda et al. (2000) projected household and domestic demand for food products between the years 2000 and 2030 in different south Asian countries. It was observed that the consumption of cereals would decline with the increasing share of fruits, vegetables, milk, meat, eggs and fish in the diet. The household and domestic demand for food grains was projected to grow by 1.2 percent, by 2030. In view of the vast agricultural potential remaining under-realized, the study suggested production-enhancing strategies.
Herrmann et al. (2001) aimed at explaining theoretical aspects of pricing consumer behaviour and to analyze them with reference to groups of breakfast products and results indicated that, demand was greatest for products with a long storage life, such as coffee. It appears likely that consumers bought some items only during special offer periods. He found there was very strong consumer reaction to price changes for jams and breakfast cereals. An active pricing policy, thus, represents a central marketing instrument in food retailing; This is consistent with strong consumer reaction to price changes.
Hajarika and Sarma (2001) projected demand for and supply of rice in Assam for 2010-11, by using secondary data from various sources for the period of 1980-81 to 1994-95 for the six agro-climatic regions or zones. The study estimated that the aggregate demand for rice in 2010-11 for the state as a whole would be 63.84 lakh tonnes and the production or supply of rice in the state would be 45.17 lakh tonnes. The study also observed that the state would face a deficit of 18.67 lakh tonnes of rice in 2010-11 with a demand supply gap of 29.24 per cent.
Banumathy and Hemameena (2006) in their study suggested that, the companies manufacturing soft drinks must manufacture high quality soft drinks in order to compete with soft drinks of multinational companies (MNC). The MNCs can promote demand by effective advertising, improving quality by keeping a check on the taste and price. They can adopt innovative improvements in the production and marketing of soft drinks in order to compete with the international brands. Study also revealed that there is no association between age, education, occupation and choice of brands but there is association between monthly income and brand preference and also there is close relationship between price and satisfaction level.
3. METHODOLOGY
This chapter presents a comprehensive view of the methodology adopted for the present investigation undertaken to know the awareness of consumers about instant food products, factors influencing consumption of instant food products, brand loyalty, brand composition in choosing the particular brands in the study area and to predict the demand for instant food products. This chapter covers the following aspects:
3.1 Description of study area
3.2 Sampling design and data collection
3.3 Analytical tools
3.1 DESCRIPTION OF STUDY AREA
Kolar District, situated in the state of Karnataka is popularly known as the golden land of India for its famous Kolar Gold Fields. Situated in semi-arid drought-prone region, lies between 77° 21' to 78° 35' East longitude and 120
0 46' to 130
0 58' North latitude, extending
over an area of 8,225 km². The district is bounded by Bangalore and Tumkur districts on the West and all other sides by the districts adjoining to the States of Andra Pradesh and Tamil Nadu.
Major sources of employment in the district are agriculture and allied activities, especially dairy and sericulture. Hence, it is popularly known as the land of Silk, Milk and Gold. The farmers in the district are totally depending on bore well water for both irrigation and drinking purposes. At present, the district comprises of 53 hoblies which fall in 11 taluks. The total area is 8,223 sq.km, consisting of 15 towns and 3,321 villages (2,889 inhabited villages and 432 uninhabited villages) with a total population of 25,36,069. Of this, 19,10,546 people live in rural areas and 6,25,523 in urban areas. The average literacy rate of the district was 62.8 per cent (according to 2001 census).
The major crops grown in the district include cereals, pulses and horticultural crops. Among cereals, ragi, rice and maize are the important ones produced in the district, whereas pigeon pea is the only pulse. The major horticulture crops grown are mango, sapota, potato, tomato and beans. Traditionally, the people in the district have been consuming cereal based foods prepared by their own. However, due to increased economic status, changing food habits, tastes and preferences, increased literacy rate, increased consciousness about health and easy availability of ready made food products like instant foods, the consumers are shifting their consumption habit from cereal based products to non-cereal based food products. It is more so incase of urban and semi urban areas because of breaking up of traditional joint family system, desire for quality, increase in urbanization, lack of time for shopping due to increased number of working women and changing life styles.
Since Kolar district is situated besides metropolitan city Bangalore, consumers in the study area are highly influenced by ever changing environment of the city. Hence, most of the consumers of the study area are adopting the consumption habits of the metropolitan consumers. In case of food products, the consumers are switching from traditional foods to instant food products. Even though, the indigenous instant food products like pickles, papads, sambar powder, chutney, etc., are prepared at home since ages, due to the availability of wide range of instant food products in recent years, the consumers are more opted to use the products available in the market at convenient packages and reasonable rate. Most commonly available and used instant food products in the study area are puliogare, jamun mix, sambar masala, pickles, coriander powder, turmeric powder, chicken masala, bisibele bath mix, noodles, vermicelli including the other important products such as soft drinks, chips, jams and jellies and sauce to a larger extent. Therefore, considering the growing market and popularity of instant food products in the area, an attempt was made to study the buying behaviour of consumers towards Instant Food Products.
3.2 SAMPLING DESIGN AND DATA COLLECTION
3.2.1 Selection of instant food products
Based on less cost and frequent use of instant food products, the products such as dosa/idli mix, pickles and sambar masala were selected after discussion with the local consumers of the study area about the consumption of instant food products, which are either home made or purchased from the market and the marketers as well as about the brands available and preferred in the study area. The particular products were selected in such a way as to represent one product from each group like cereals, fruits and vegetable and spice based categories.
3.2.2 Sample Selection
To study the buying behaviour of consumers towards instant food products, multi-stage random sampling technique was adopted. In the initial stage, Kolar district was selected, as the district was familiar to the researcher. In the second stage, three taluks of the districts were selected based on population as high, medium and low population. Hence, the population of 4,21,437 was considered to be highest in Bangarpet taluk, followed by Mulbagal with a medium population of 2,31,302 and Gudibande with lowest population of 51,828 were selected. In the next stage, two hoblies from each taluk namely Bethamangala and Budikote from Bangarpet taluk, Avani and Byrakur from Mulbaghal taluk and Somenahalli and Kasaba from Gudibande taluk were selected to collect information about buying behaviour of the consumers in the rural markets. Finally, 30 consumers from each hobli were selected randomly totally accounting to 180 samples.
Classification of respondents
The respondents were post classified into four income groups based on their income. Respondents with monthly income of less than Rs. 2,500 were considered to belong to Income Group 1 (IG1), those with income group between Rs. 2,501 and Rs. 5,000 were classified into Income Group 2 (IG2), those with income of Rs. 5,001 to Rs.10, 000 were grouped as Income Group 3 (IG3) and finally those with income of more than Rs. 10,000 were categorized as Income Group (IG4).
3.2.3 Collection of Data
To evaluate the objectives of the study, required data were collected from primary as well as secondary sources.
Primary data
The data required for the study were collected from the selected respondents by personal interview method using well-structured schedule. Information on the following aspects were collected from 180 households (30 respondents from each selected hobli)
1. General information from the individual respondents on their social, economical and demographic characteristics like age, educational status, occupation, annual income, family size and family type.
2. Monthly family expenditure on food and non-food items in general and instant food products in particular.
3. Information regarding the consumption pattern of instant food products and also regarding decision making relating to Instant Food Products.
4. The type of instant food products consumed and their source viz., branded, unbranded and home made; Satisfaction level of the respondents regarding their present brand and awareness about various brands of instant food products, etc…
5. Purchase pattern of instant food products and factors influencing the purchase.
Secondary data
The secondary data on location, demography and other details about the study area were collected from District Statistical Office. The survey was undertaken during the month of February-March 2007.
3.3 TOOLS OF ANALYSIS
The collected data were tabulated and analyzed. The tools used for analysis are as follows.
Tabular analysis
Percentage analyses were used to study the socio-economic characteristics of the sample respondents like age, educational status, occupation and, family size and type, Consumer awareness towards instant food products and brands. The buying behaviour of consumers for Instant food products, purchase decision, place of purchase, frequency of purchase and quantity per purchase were also analyzed using percentage analysis.
Scaling technique
Scaling technique was used to measure the brand loyalty of consumers towards instant food products. The statements such as confirm to use the brand, recommend the brand to others, purchase the brand even if price increases and purchase the same brand even in absence of sales promotion were used in the study. The responses to the above statements were measured in a three-point scale namely; definitely, probably, definitely not and the scores of 3, 2, and 1 were given to the above scales and the respondents were classified into three categories based on the total scores obtained by them. The respondents with a score of 9 to 12 was considered as highly brand loyal, the respondents with a score of 5 to 8 were considered as medium loyal and the respondents with a score of upto 4 were considered as low brand loyal.
Likert Scaling technique
A type of psychometric response scale called Likert Scale (Pronounced ‘lick-urt’) was employed for studying factors influencing brand preferences and reasons for not preferring particular brand of products by the consumers of instant food products. This scale, named after Rensis Likert, who published a report describing its use and is widely used in Survey Research where respondents specify their level of agreement to a statement. Traditionally, a five-point scale is used with Strongly Agree, Agree, Undecided, Disagree, and Strongly Disagree responses to indicate the level of agreement to a particular statement. The statements considered for studying the brand preferences of consumers were best quality of the product, good brand image, retailers influence, reasonable price, readily available, good packaging, advertisements, attractive packaging design and convenience. In contrast, poor quality, poor taste, high price, poor brand image, poor flavour, not good colour, less keeping quality were the statements used in asking the reasons for not using a particular brand of instant food products. The responses to the above statements were measured in a five-point scale namely; Strongly Agree, Agree, Undecided, Disagree, and Strongly Disagree and the scores of 5, 4, 3, 2, and 1 were given to the above scales. Later scores were added and the mean score was calculated. Based on the mean score inference was drawn for factors influencing brand preferences and reasons for not using the particular brand of instant food products.
Regression Analysis
To study the factors influencing on demand for instant food products in Kolar district, multiple linear Regression Analysis was used. In the analysis, monthly quantity consumed is used as a dependent variable and the other independent variables used were price of the product, monthly family income and number of family members. The functional form of regression equation used was
D = f [X1, X2, X3]
Where,
X1= price
X2 = monthly family income
X3 = number of family members
Demand potential
The total potential demand for the Instant Food Products in Kolar district was estimated by the users population and calculated per capita consumption of instant food products by the randomly selected households.
4. RESULTS The results of the study are presented under the following headings.
4.1 Awareness of consumers towards Instant Food Products
4.2 Factors influencing the consumption of Instant Food Products
4.3 Brand loyalty of consumers of Instant Food Products
4.4 Brand composition of Instant Food Products
4.5 Demand potential for Instant Food Products
4.1 AWARENESS OF CONSUMERS TOWARDS INSTANT 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 consumer’s socio-economic characteristics were studied and the results are presented hereunder.
4.1.1 Income-wise distribution of sample households
Income-wise distribution of sample households is presented in Table 4.1. Respondents with monthly income of less than Rs. 2,500 were considered to belong to Income Group 1 (IG1), those with income group between Rs. 2,501 and Rs. 5,000 were classified into Income Group 2 (IG2), those with income of Rs. 5,001 to Rs.10, 000 were grouped as Income Group 3 (IG3) and finally those with income of more than Rs. 10,000 were categorized as Income Group (IG4). Accordingly, the proportion of household respondents in IG1, IG2, IG3 and IG4 was 25 per cent, 35 per cent, 26.67 per cent and 13.33 per cent respectively, in Bangarpet taluk. In Mulbagal taluk, this proportion was 26.67 per cent, 31.67 per cent each and 10 per cent in IG1, IG2 and IG3 and IG4 respectively. Whereas in the case of Gudibande, the proportion was 25 per cent in IG1, 40 per cent in IG2, 28.33 per cent in IG3 and 25 per cent in IG4. However, at an overall the proportion of respondents in IG1, IG2, IG3 and IG4 was 25.56 per cent (46 in number), 35.56 per cent (64 in number), 28.89 per cent (52 in number) and 10 per cent (18 in number), respectively.
4.1.2 Socio-economic characteristics of different Income Groups
Table 4.2 presents the socio-economic characteristics of the sample households across different taluks. It could be seen from the table that the average monthly family income of IG1, IG2, IG3 and IG4 in Bangarpet was Rs. 2,366, Rs. 4,552, Rs. 7075 and Rs. 16,000 respectively. The average family size was 4.46, 5.14, 6.18 and 6.12 in IG1, IG2, IG3 and IG4 respectively. The average age of respondents of IG3 was the highest (37.5 years), followed by IG1 (37.13 years), IG4 (34 years) and IG2 (32.85 years). The average education in the taluk was highest in IG4 (14.3 years) subsequently in IG3 (11.4 years), IG2 (4.4 years) and IG1 (3.3 years). Similarly, the average number of children in the households was 2.75 each in IG3 and IG4, 2.14 in IG2 and 2.33 in IG1. The classification of sample households according to their family type revealed that in the IG4 was 37.50 per cent, IG3 was 31.25 per cent and IG2 was 14.28 per cent belonged to joint families. However, no joint families were observed in IG1. In contrast, the nuclear families were highest in IG2 (87.71 per cent) followed by 68.75 per cent in IG3, 62.50 per cent in IG4. The percentages of sample households under food habit classification, vegetarians and in IG1, IG2 and IG3 were 13.33 per cent, 14.28 per cent and 25 per cent, respectively, whereas incase of IG4, 100 per cent were non-vegetarians.
Under the occupation classification, agriculture and allied were 73.33 per cent, housewives were 20 per cent and business/self employed were 6.67 per cent in IG1. In case of IG2, about 42.85 per cent were found in agriculture and allied activities followed by 38.09 per cent housewives, 14.28 per cent employed and 4.76 per cent business/self employed. About 43.75 per cent of housewives followed by 37.50 per cent agriculture and allied, 12.50 per cent employed and 6.25 per cent business /self-employed were found in IG3. In IG4, half
of them were under agriculture and allied activities, 25 per cent were housewives and 12.50 per cent each were self-employed or business and employed in the taluk.
In Mulbagal taluk, the average monthly family income of IG1, IG2, IG3 and IG4 was Rs.2,312, RS. 4300, Rs.6894 and Rs.15,500 respectively. The average family size was 4.12, 5.05, 5.52 and 6 members in IG1, IG2, IG3 and IG4 respectively. The average age of respondents of IG1 was the highest (37.93 years), followed by IG4 (34.16 years), IG3 (33.42 years) and IG2 (32.31years). The average education in the taluk was highest in IG4 (14.2 years) subsequently in IG3 (10.2 years), IG2 (4.2 years) and IG1 (2.3 years). However, the average numbers of children in the households were 2.12, 2.15, 2.26 and 2.5 in IG1, IG2, IG3 and IG4 respectively. The classifications of sample households according to their family type were shown that 33.33 per cent were joint in IG4, 31.57 per cent in IG3 and 10.52 per cent in IG2. However, cent per cent of the families were found to be nuclear in IG1 but it was 89.47 per cent in IG2 followed by 68.42 per cent in IG3, 66.67 per cent in IG4. The percentages of sample households under food habit classification as vegetarian and non-vegetarians in IG1, IG2, IG3 and IG4 were 18.75 per cent and 81.25 per cent; 21.05 per cent and 78.94 per cent; 15.78 per cent and 84.21 per cent; 16.67 per cent and 83.33 per cent respectively.
Under the occupation classification, agriculture and allied were 87.50 per cent, housewives 12.50 per cent in IG1. In case of IG2, about 47.36 per cent were found in agriculture and allied activities followed by 31.57 per cent of housewives, 15.78 per cent business/self-employed and 5.26 per cent employed. About 63.15 per cent of housewives followed by 21.05 per cent agriculture and allied, 10.52 per cent employed and 15.26 per cent business/self-employed were found in IG3. In IG4, 66.67 per cent were under agriculture and allied activities, 16.67 per cent each were housewives and employed.
In Gudibande taluk, the average monthly family income of IG1, IG2, IG3 and IG4 was Rs. 2,246, Rs.4,045, Rs.7,000 and Rs.14,750 respectively. The average family size was 4.33, 5.29, 6.12 and 5 members in IG1, IG2, IG3 and IG4 respectively. The average age of respondents of IG2 was the highest (34.67 years), followed by IG1 (33.87 years), IG4 (33years) and IG2 (32.76 years). The average education in the taluk was highest in IG4 (12.3 years) subsequently in IG3 (10 years), IG2 (4 years) and IG1 (2.2 years). The average number of children in the households was 2.13, 2.21, 2.53 and 2.25 in IG1, IG2, IG3 and IG4 respectively. The classification of sample households according to their family type shown that in 8.33 per cent in IG2, 41.17 per cent in IG3 and 25 per cent in IG4 were joint families and no joint families were found in IG1. However, the nuclear families were highest in IG4 (75 %) followed by 58.82 per cent in IG3 and 31.67 per cent in IG2. The percentage of sample households under food habit classification as vegetarian and non-vegetarians in IG1, IG2 and IG3 were 13.33 per cent and 86.67 per cent; 8.33 per cent and 91.67 per cent; 5.88 per cent and 94.11 per cent respectively, whereas in IG4, all the respondents were non-vegetarians.
Under the occupation classification, agriculture and allied were 73.33 per cent, housewives were 20 per cent and 6.67 per cent in IG1. In case of IG2 about 54.16 per cent were found in agriculture and allied activities followed by 33.33 per cent housewives and 8.33 per cent business/self-employed. In IG3, 58.82 per cent of housewives followed by 35.29 per cent agriculture and allied, 5.88 per cent each in employed and business/self-employed were found in IG3. In IG4, 50 per cent were under agriculture and allied activities and 25 per cent each were business/self employed and employed in the taluk.
4.1.3 Awareness of Consumers towards Instant Food Products
Table 4.3 shows the awareness of consumers about Instant food products across different income groups in different taluks of the district. In the case of Dosa/Idli mix, 66.67 per cent (40 in number), 56.67 per cent (34 in number) and 46.67 per cent (28 in numbers) of the respondents respectively of Bangarpet, Mulbagal and Gudibande taluks were aware of the products availability in the market. At an overall, among different income groups, about 22.78 per cent of IG3 were aware of this product in the market followed by 17.22 per cent in IG2, 8.89 per cent in IG1 and 7.78 per cent in IG4. In the case of Pickles and Sambar masala, 100 per cent of the respondents in all the taluks and across income groups were aware about the selected instant food products.
Table 4.1 Income Wise Distributions of Households of Kolar District
Note: Figures in parentheses indicate percentages to the number of respondents in each income group
4.1.4 Brand Awareness of Consumers about Instant Food Products
Table 4.4 presents the brand awareness of different products in the three selected taluks of the district. In Bangarpet, 46.67 per cent and 6.67 per cent of respondents were aware of MTR and Aashirvaad brands of Dosa/ Idli mix. In this product, most (81.25 per cent, 75 per cent, 38.09 per cent and 6.67 per cent of IG3, IG4, IG2 and IG1 respondents, respectively) were aware of MTR brand only whereas 37.50 per cent of IG4 respondents and 4.76 per cent of IG2 respondents knew Aashirvaad brand only. With regards to pickles, majority of respondents (55 per cent) were aware of Chinnis brand followed by MN brand (48.33 per cent), 41.67 per cent were conscious of MTR brand and 30 per cent, 21.67 per cent and 11.67 per cent were aware of local brands, Priya and Ruchi brands respectively. Among different income groups, most of IG1 respondents (53.33 per cent) sentient of local brands, 26.67 per cent each were conscious of Chinnis, MN and MTR brands and only 13.33 per cent were aware of Priya brand. In case of IG2, 66.67 per cent were known Chinnis brand followed by 38.09 per cent each aware of MN and MTR brands. Only 4.76 per cent of them were aware of Ruchi brand. More than half of the consumers of IG3 and IG4 were conscious of MN, Chinnis and MTR brands. In Sambar masala, MTR and Everest brands were found to be popular among 58.33 per cent of respondents followed by Iyengar’s brand (31.67 per cent), local brands (30 per cent), Excellent brand (18.33 per cent), Swastik brand (11.67 per cent) and Orkay brand (6.67 per cent). About 40 per cent of IG1 were aware of local brands, 71.42 per cent of IG2 respondents were aware of Everest brand, 81.25 per cent of IG3 were familiar with Eastern brand and 87.5 per cent of IG4 were aware of MTR brands, whereas Orkay brand was least known by all the income groups.
In case of Mulbagal, 41.67 per cent and 10 per cent of respondents were aware of MTR and Aashirvaad brands of Dosa/Idli mix. Among income groups most 83.33 per cent, 73.68 per cent and 31.57 per cent of the respondents in IG4, IG3 and IG2 were aware of MTR brand respectively. Aashirvaad was known to 33.33 per cent of IG4 and 21.05 of IG3
respondents only. With regard to pickles, majority of respondents 70 per cent were aware of Chinnis brand, followed by MN brand (48.33 per cent), 33.33 per cent were MTR brand, 23.33 per cent were local brands and 13.33 per cent each were aware of Priya and Ruchi brands respectively. Chinnis brand was familiar among 89.47, 78.94, 50.00 and 43.75 per cent of the consumers in IG3, IG2, IG4 and IG1 accordingly. At the same time, 83.33, 73.68, 31.57 and 25 per cent of the respondents were aware of MN brand. The other brands such as MTR, Priya, Ruchi and local brands were familiar with less than 35 per cent of the respondents. In case of Sambar masala, awareness of MTR and Everest brands were very popular among 55 per cent and 50 per cent of respondents, respectively, followed by Iyengar’s brand (30 %), local brands were known among 21.67 per cent of the respondents. The other brands like Excellent, Swastik, Eastern brand and Orkay brands were known to the 15, 10, 8.33 and 3.33 per cent respectively, by the consumers of the Instant food products. In different income groups, all the respondents of IG4 were aware of MTR and Everest brands and the similar brands were known to more than half of the respondents in IG3. The other brands like Excellent, Eastern, Iyengar’s, Swastik, Orkay and local brands were aware among small per cent of the respondents.
In case of Gudibande taluk, at an overall, 25 per cent respondents were aware of MTR brand of Dosa/Idli mix, and the per cent across different income groups was 75 per cent, 47.05 per cent and 16.67 per cent of IG4, IG3 and IG2 respectively. With regard to pickles, majority (61.67 %) of respondents were aware of Chinnis brand followed by MN brand (33.33 %), local brands and Ruchi brands (15 % each), MTR brand (11.67 %) and Priya brand (10 %). More than 50 per cent of respondents in different income groups were aware of Chinnis brand and MN brand was familiar among more than 70 per cent of the IG3 and IG4
respondents. In addition to these brands, MTR, Priya and local brands were known to more than half of the IG4 respondents. The other brand like Ruchi was familiar to few respondents in all the income groups. In case of Sambar masala, Everest brand was well known to 43.33 per cent of the respondents and 33.33 per cent each aware of MTR and Iyengar’s brands. About 13.33, 8.33, 5 and 3.33 per cent of the respondents were aware of Swastik, Excellent, Orkay and Eastern brands among the Instant food products. Except Swastik brand, almost all the brands were aware among IG4 respondents. Everest, Iyengar’s and Swastik were known to 20 per cent of IG1 respondents and about 40 per cent of them were aware of local brands also. More than half of the respondents in IG3 were conscious of MTR and Everest brands.
The brands like Everest, Iyengar’s, MTR, local, Excellent and Swastik were familiar among IG2 respondents in their higher order.
4.1.5 Overall Brand Awareness of Consumers about Instant Food Products
Table 4.5 reveals the overall brand awareness of consumers about the instant food products across selected taluks. Among the different income groups, only MTR and Aashirvaad brands were familiar among Dosa/Idli mix product. However, the per cent of respondents aware of MTR brand was found to be more that is 77.78, 67.30, 28.12 and 2.17 per cent of IG4, IG3, IG2 and IG1 respondents respectively. On the whole, about 37.78 per cent of the respondents were aware of MTR brand only and a meager of 5.56 per cent was conscious of Aashirvaad brand. With regard to pickles, at an overall, majority of respondents (62.22 %) were aware of Chinnis brand followed by MN brand (43.33 %), MTR brand (23.89 %) and local brands (22.78 %), Priya (15 %) and Ruchi (13.33 %) brands. Among different income groups, about 78.84 and 70.31 per cent of IG3 and IG2 respondents and were aware of Chinnis brand, and 83.33 and 69.23 per cent of these groups popularly knew MN only. Similarly, local brand was sensitive among 36.90, 33.33, 17.30 and 14.06 per cent of IG1, IG4, IG3 and IG2 consumers. In case of sambar masala, awareness of Everest and MTR brands accounted to 50.56 per cent and 48.89 per cent of the respondents followed by Iyengar’s (31.67 %), local brands (27.22 %), Excellent (13.89 %), Swastik (11.67 %), Eastern brand (7.78 %) and Orkay brand (5 %) were known to the selected consumers of instant food products in the study area. It was revealed from the table that Everest and MTR brands were aware among almost all income groups. However, the per cent was 83.33 per cent and 88.89 per cent in IG4, 63.46 and 67.30 per cent in IG3, 56.25 and 42.18 per cent in IG2, and 15.21 and 21.73 per cent in IG1 respectively. The local brand was familiar to 34.78, 28.12, 26.19 and 22.22 per cent in IG1, IG2, IG3 and IG4 consumers, respectively. Less than 20 per cent respondents were aware of Swastik and Orkay brands.
4.2 FACTORS INFLUENCING CONSUMPTION OF INSTANT FOOD PRODUCTS
4.2.1 Factors influencing consumers in usage of Instant Food Products
4.2.1.1 User Categories of Instant Food Products
The user categories of different Instant food products across different income groups in the study area are presented in Table 4.6. It was observed from the table that in case of Dosa/Idli mix, majority (96.11 per cent) of respondents prepared Dosa/Idli mix in their home only. Very meager percentage (3.89 %) preferred branded product along with their own preparation. It was noteworthy to mention that, all the respondents of IG1 and IG2 were preparing this product in their home only. In case of pickles, about 57.78 per cent of consumers prepared their own, 6.67 per cent used branded products along with own preparation, 24.44 per cent used only branded products, 10 per cent used only unbranded products and 1.11 per cent consumed both branded and unbranded products. Here, 71.87 per cent of IG2 and 67.30 per cent of IG3 used home made products only. About 34.78 per cent of IG1 and 38.89 per cent of IG4 used only branded products. Maximum of 59.44 per cent of respondents prepared own Sambar masala followed by only branded (26.11 %), only unbranded (8.33 %), branded and own preparation (5 %) and both branded and unbranded products (1.11 per cent). It was observed that except IG4, most of the consumers in IG1, IG2 and IG3 (52.17, 73.43 and 65.38 %) consumed their own homemade Sambar masala but half of the IG4 consumers used branded products only.
Table 4.5 Overall Brand Awareness of Consumers about Instant Food Products
Note: Figures in parentheses indicate percentages to the number of respondents in each income groups
4.2.1.2 Reasons for not Purchasing Instant Food Products
Reasons for not purchasing the Instant Food Products, as opined by the respondents, are presented in Table 4.7. It was revealed from the table that 66.67 per cent, 47.22 per cent and 55.56 per cent of respondents of Dosa/Idli mix, Pickles and Sambar masala, respectively were not purchased these products because of low cost of home preparation. Differences in tastes between home made and purchased product was the reason for not using Dosa/Idli mix by 52.78 per cent of the consumers, whereas 54.44 per cent each of the respondents quoted the same reason for not using pickles and Sambar masala. About 41.67 per cent, 52.22 per cent and 48.89 per cent of respondents did not purchase Dosa/idli mix, pickles and Sambar masala because of disliking of these products by their family members. High price was the reason for not consuming the respective products by 91.67 per cent, 52.78 per cent and 41.67 per cent of respondents, accordingly. Very small of about 11.11 per cent of consumers opined lack of awareness regarding the availability of Dosa/Idli mix product in the market. Dosa/ idli mix, pickles and Sambar masala were not purchased due to non-availability of these products by 19.44 per cent, 11.11 per cent and 19.44 per cent of the respondents, respectively.
4.2.1.3 Factors Considered for Purchasing Instant Food Products
An attempt was made to elicit the factors considered by the respondents for consumption of Instant food products in the three selected taluks of Kolar district. The results of the Bangarpet taluk are presented in Table 4.8. It was noticed from the table that the major factors considered while using Dosa/Idli mix were ready availability and save time of preparation by cent per cent each, of the respondents. The other reasons for using this product by respondents (75%) were liked by family members, influence of friends/relatives and availability of quality products. The factors responsible for using pickles were ‘Tastes liked by family members’ and ‘save time of preparation’ by the 94.43 per cent each of the respondents, whereas ready availability and habit of eating were the factors considered by more than 75 per cent of the consumers. Similarly, 64.10 per cent each quoted ‘liked by family members’ and ‘availability at reasonable price’ as the factors for consumption of pickles. In case of Sambar masala, 83.33 per cent of the consumers opined ‘ready availability’, ‘save time of preparation’ and ‘necessary ingredient for preparations’(100%) were the factors considered for consuming this product.
The results of the Mulbagal taluk are presented in Table 4.9. It could be seen from the table that Dosa/Idli mix were consumed by cent per cent each of the consumers due to likeliness by their family members, ready availability, save time of preparation, availability of products at reasonable price and availability of quality products in the market. Cent per cent of the consumers told that ready availability and save time of preparation were the factors responsible for consumption of pickles and 91.67 per cent, 83.33 per cent and 75 per cent of the respondents also opined that tastes liked by family members, liked by family members and habit of eating were the factors responsible for using this product. Only 25 per cent said traditional usage was the factor responsible for consuming pickles. Similarly, cent per cent of the consumers replied that ready availability, save time of preparation and necessary ingredient for preparations were the factors considered in using Sambar masala product. However, less than 50 per cent opined tastes liked by family members, liked by their family members and traditional usage were the factors responsible for consumption of this product.
The results for Gudibande taluk presented in Table 4.10 revealed that save time of preparation, ready availability and availability of quality products was the reasons considered while eating Dosa/Idli mix by the 1.67 per cent each of the respondents. Similarly, in the case of pickles, save time of preparation, ready availability were considered by cent per cent of consumers and liked by their family members was the reasons considered by 85.71 per cent of the consumers in using pickles. The reasons like traditional usage influence of friends/relatives, availability of product at reasonable price, quality products availability in the market, habit of eating were the reasons quoted by less than 60 per cent of the consumers. In case of Sambar masala cent per cent each of the respondents opined save time of preparation and ready availability were the factors responsible for consuming Sambar masala. About 76.92 per cent each said traditional usage and necessary ingredient for preparations were the factors responsible for consuming the same.
Table 4.7 Reasons for not Purchasing the Instant Food Products
(n=180)
Products
Sl. No.
Reasons
Dosa/Idli mix
Pickles Sambar masala
1 Low cost of home preparation 120 (66.67) 85 (47.22) 100 (55.56)
2 Differences in tastes (between home prepared and purchased)
95 (52.78) 98 (54.44) 98 (54.44)
3 Dislike of purchased product by the family members
75 (41.67) 94 (52.22) 88 (48.89)
4 High price of market product 165 (91.67) 95 (52.78) 75 (41.67)
5 Lack of Awareness of products availability in the market
20 (11.11) - -
6 Non-availability of Instant food Products
35 (19.44) 20 (11.11) 35 (19.44)
Note: Figures in parentheses indicate percentages to the number of respondents
Table 4.8 Factors considered for using Instant Food Products in Bangarpet Taluk
Products
Sl. No.
Factors Dosa/Idli mix
(n=4) Pickles (n=39)
Sambar masala (n=36)
1 Traditional usage - 5 (12.82) 10 (27.77)
2 Liked by family members 3 (75.00) 25 (64.10) -
3 Taste liked by family members - 38 (97.43) 8 (22.22)
4 Readily available 4 (100.00) 35 (89.74) 30 (83.33)
5 Save time of preparation 4 (100.00) 38 (97.43) 35 (97.22)
6 Influence of friends or relatives
3 (75.00) 15 (38.46) 15 (41.67)
7 Availability of products(IFPs) at reasonable price
Note: Figures in parentheses indicate percentages to the number of users
4.2.1.4 Sources of Information
The sources of information about Instant food products for the consumers in the study area are presented in Table 4.11. It was observed from the table that, about 92.30 per cent of the pickles and 91.67 per cent of the Sambar masala buyers, retail shop was the major source of information, followed by TV/radio advertisements (87.17 per cent of pickles and 58.33 per cent of the Sambar masala consumers). However, friends/relatives were the sources for about 88.89 per cent of Sambar masala and 66.67 per cent of pickle consumers. Whereas in the case of Dosa/Idli mix, Newspaper/magazine and TV/radio advertisements were the sources for getting information by 75 per cent and 50 per cent of the respondents in Bangarpet taluk. In Mulbagal, about 79.16 per cent and 91.67 per cent of the consumers preferred retail shop, followed by 87.50 per cent and 58.33 per cent opined TV/radio advertisements as the sources of information for pickles and Sambar masala respectively. In addition 87.50 per cent and 54.16 per cent of the consumers of Sambar masala and pickles respectively got information from friends/relaives. Among the purchasers of Dosa/Idli mix expressed newspaper/magazine (cent %) and retail shop, TV/radio advertisement, friends/relatives (50 %each) as the sources. Similar results were found to be existed in the case of Gudibande taluk where in cent per cent and 92.30 per cent of consumers preferred retail shop for pickles and Sambar masala, cent per cent and 61.53 per cent opted for TV/radio advertisements. However, 78.57 per cent and 92.30 per cent of pickles and Sambar masala were also through friends/relatives. Only 1.67 per cent of the Dosa/Idli mix purchasers used retail shop, newspaper/magazine and TV/radio advertisements as the sources of information.
4.2.2 Consumption Pattern of Instant Food Products
4.2.2.1 Consumption pattern of households
The monthly average expenditure of the households in selected taluks is presented in Table 4.12. It could be seen from the table that in the case of Bangarpet taluk, the households monthly expenditure increased with increase in monthly income. The average monthly expenditure on Instant food products was found to be highest in the case of IG4 (Rs.492.50) followed by IG3 (Rs. 348.13), IG2 (Rs.247.14) and IG1 (Rs.189.33). Similar trend was noticed with respect to total monthly expenditure, which was Rs.5080 in IG4, Rs.3495.13 in IG3, Rs.2694.76 in IG2 and Rs. 1609.33 in IG1. However, on an average Bangarpet consumers spend Rs. 292.33 on instant food products which accounts to 16.28 per cent in their total monthly expenditure.
Similarly, in Mulbagal, the average Monthly expenditure on Instant food products was highest in case of IG4 (Rs.433.33) followed by IG3 (Rs. 323.68), IG2 (Rs.272.63) and IG1 (Rs.123.75). Similar trend was noticed with respect to total monthly expenditure, which was Rs.4841.67 in IG4, Rs.3526.32 in IG3, Rs.2783.16 in IG2 and Rs.1780 in IG1. However, on an average Mulbagal consumers spend Rs. 265.16 on instant food products which account to 15.11 per cent their total monthly expenditure.
In Gudibande taluk , the average monthly expenditure on Instant food products by IG4 respondents was highest (Rs.492), followed by IG3 (Rs. 348.13), IG2 (Rs.247.14) and IG1 (Rs.189.33). With respect to total monthly expenditure, it was Rs.4362.50 in IG4, Rs.3407.65 in IG3, Rs.2528.33 in IG2 and Rs.1882 in IG1. However, on an average Gudibande consumers spend Rs. 252 on instant food products which account to 14.84 per cent their total monthly expenditure.
On the whole, it can be inferred that the average monthly expenditure on instant food products was highest in case of IG4 (Rs.465), followed by IG3 (Rs.317.31), IG2 (Rs.251.56) and IG1 (Rs. 165.22). On an average, the consumers spend Rs.269.82 on instant food products which accounts to 15.42 per cent in their total monthly expenditure.
Table 4.11 Sources of information about Instant food products
Bangarpet (n=60) Mulbagal (n=60) Gudibande (n=60)
Sources Dosa/Idli mix
(n=4) Pickles (n=39)
Sambar masala (n=36)
Dosa/Idli mix (n=2)
Pickles (n=24)
Sambar masala (n=24)
Dosa/Idli mix (n=1)
Pickles (n=14)
Sambar masala (n=13)
Retail shop 2
(50.00) 36
(92.30) 33
(91.67) 1
(50.00) 19
(79.16) 22
(91.67) 1
(100.00) 14
(100.00) 12
(92.30)
Newspaper/ magazine 3
(75.00) 13
(33.33) 5
(13.89) 2
(100.00) 7
(29.16) 5
(20.83) 1
(100.00) 4
(28.57) 2
(15.38)
TV/Radio advertisement 2
(50.00) 34
(87.17) 21
(58.33) 1
(50.00) 21
(87.50) 14
(58.33) 1
(100.00) 14
(100.00) 8
(61.53)
Friends/Relatives 1
(25.00) 26
(66.67) 32
(88.89) 1
(50.00) 13
(54.16) 21
(87.50) -
11 (78.57)
12 (92.30)
Note: Figures in parentheses indicate percentages to the number of users
Table 4.12 Monthly Expenditure of Households
(Rs/Month)
Food Taluks Income Group
IFPs Others Non-food Total
IG1 189.33 (20.82) 720.00 700.00 1609.33
IG2 247.14 (14.16) 1497.62 950.00 2694.76
IG3 348.13 (16.47) 1765.63 1384.38 3495.13
IG4 492.5 (16.67) 2462.50 2125.00 5080.00
Bangarpet (n=60)
Average 292.33 (16.28) 1503.34 1160.00 2954.87
IG1 123.75 (12.55) 862.50 793.75 1780.00
IG2 272.63 (15.40) 1497.57 1013.16 2783.16
IG3 323.68 (15.37) 1781.58 1421.05 3526.32
IG4 433.33 (16.40) 2208.33 2200.00 4841.67
Mulbagal (n=60)
Average 265.16 (15.11) 1489.23 1202.50 2956.84
IG1 185.33 (17.08) 900.00 796.67 1882.00
IG2 238.75 (14.44) 1414.58 875.00 2528.33
IG3 281.18 (13.23) 1844.12 1282.35 3407.65
IG4 457.5 (18.62) 2000.00 1875.00 4362.50
Gudibande (n=60)
Average 252.00 (14.84) 1207.26 1037.50 2738.17
IG1 165.22 (16.63) 828.26 764.13 1757.61
IG2 251.56 (14.64) 1466.47 940.63 2658.59
IG3 317.31 (15.01) 1797.12 1364.42 3477.93
IG4 465 (16.97) 2275.00 2094.44 4841.11
Overall (n=180)
Average 269.83 (15.42) 1479.74 1133.33 2883.29
Note: Non-food expenditure includes money spent on clothing, housing, education, utilities etc. Figures in parentheses indicate percentage expenditure of instant food products in total food expenditure
4.2.2.2 Purchase and Consumption of Instant Food Products
The per capita purchase and consumption of instant food products by sample households of Bangarpet taluk across the different income groups is presented in Table 4.13. It was revealed from the table that in Bangarpet, the average per capita quantity of Dosa/ Idli mix purchased by households was 0.40 and 0.79 Kg/month by IG3 and IG4 users and the average per capita expenditure on the same was Rs.26.29 and Rs.58.33 per month by respective groups. However, no purchase of Dosa/Idli mix was observed in case of IG1 and IG2. The per capita purchase of pickles was 0.04, 0.05, 0.09 and 0.12 Kg /month by IG1, IG2, IG3 and IG4, respectively and the per capita expenditure on this was Rs.2.65, Rs.2.23 Rs.7.4, and Rs.12.96 for IG1, IG2, IG3 and IG4 consumers respectively. Similarly, in case of Sambar masala, the average per capita purchase was 0.05 Kg each in IG1 and IG4 and 0.04 Kg each in IG2 and IG3 but the respective expenditure was Rs. 6.44, Rs.7.41, Rs.7.84 and Rs.9.92 by IG1, IG2, IG3 and IG4 respondents respectively. On the whole, the average per capita purchase was 0.69 kg/month, 0.07 kg/month and 0.05 Kg/ month in Dosa/ Idli mix, pickles and Sambar masala, respectively and their per capita expenditure was Rs. 50.32, Rs.5.9 and Rs. 7.68 on respective products.
Table 4.14 reveals the per capita purchase and expenditure on selected Instant Food Products of Mulbagal taluk, the average per capita quantity of Dosa/ Idli mix purchased by households was 0.5 Kg/month by IG4 respondents and the average per capita expenditure on the same was Rs.36.75 per month by respective group. However, no purchase of Dosa/Idli mix was observed in case of IG2, IG2 and IG3. The per capita purchase of pickles was 0.03 kg/month in IG1, 0.04 kg/month each in IG2 and IG3 and 0.05 kg /month in IG4 and the proportion of per capita expenditure on this was Rs.1.95, Rs.2.91, Rs.3.33 and Rs.4.03 for IG1, IG2, IG3 and IG4 respectively. Similarly, in case of Sambar masala, the average per capita purchase was 0.05 Kg/each in IG1, IG2 and IG3 and 0.04 Kg/month in IG4 and the respective expenditure were Rs. 6.15, Rs.9.29, Rs.8.39 and Rs.9.29 by IG1, IG2, IG3 and IG4 respondents respectively. At an overall, the average per capita purchase was 0.5, 0.04 and 0.05 Kg/ month in Dosa/ Idli mix, pickles and Sambar masala, respectively and their per capita expenditure was Rs.36.75, Rs.3.07 and Rs.8.02 respectively.
The results for Gudibande taluk was presented in Table 4.15 where the average per capita quantity of Dosa/ Idli mix purchased by households was 0.7 Kg/month by IG4 respondents and the average per capita expenditure on it was Rs.52.5 per month. However, no purchase of Dosa/Idli mix was observed in other income groups. The per capita purchase of pickles was 0.03 each in IG1 and IG3, 0.02 and 0.05 Kg /month in IG2 and IG4. At the same time, the proportion of per capita expenditure on the pickles was Rs.1.43, Rs.0.54 Rs.1.14, and Rs.2.07 for IG1, IG2, IG3 and IG4 respectively. The average per capita purchase of Sambar masala was 0.05 Kg/month each in IG1 and IG4 and 0.04 Kg/month each in IG2 and IG3 with the per capita expenditure of Rs. 6.65 for IG1, Rs. 6.54 for IG2, and Rs. 8.46 for IG3 and Rs. 10.07 for IG4. On the whole, the average per capita purchase was 0.7, 0.03 and 0.05 Kg/month in Dosa/Idli mix, pickles and Sambar masala with their respective per capita expenditure of Rs.52.5, Rs.1.32 and Rs.7.70.
4.2.3 Purchase Pattern of Instant Food Products
4.2.3.1 Purchase Frequency of Instant Food Products
Table 4.16 depicts the frequency of purchase of Instant food products by households in Bangarpet taluk. The table reveals that cent per cent of IG3 and 66.67 per cent of IG4 consumers purchased Dosa/Idli mix once in two months; 33.33 per cent of IG4 consumers purchased occasionally. In the case of pickles, 46.15 per cent of IG1 and 10.00 per cent of IG3 households purchased once in fortnight. The same was purchased monthly by 30.76 per cent, 33.33 per cent, 50 per cent and 37.50 per cent of IG1, IG2, IG3 and IG4 consumers, respectively. About 7.69 per cent, 55.56 per cent, 40 per cent and 50 per cent users of IG1, IG2, IG3 and IG4 respectively, purchased once in two months. Pickles were purchased once in three months by 15.38 per cent of IG1 households and 12.50 per cent of IG4 households. With regard to Sambar masala, once in fortnight purchase was done by 75 per cent of IG1 households. About 8.33 per cent, 37.50 per cent, 44.44 per cent and 14.28 per cent users of IG1, IG2, IG3 and IG4 respectively, purchased once in a month. Similarly, 16.67 per cent, 25 per cent, 33.33 per cent and 28.57 per cent consumers of IG1, IG2, IG3 and IG4 respectively purchased it once in two months. Apart from this, 25 per cent, 22.22 per cent and 57.44 per
cent of respondents of IG2, IG3, and IG4 consumers purchased the same, once in three months and only 12.50 per cent of IG2 households purchased it occasionally.
The results of Mulbagal taluk presented in Table 4.18 revealed that only IG4 (cent per cent) consumers purchased Dosa/Idli mix occasionally. Whereas incase of pickles, about 50 per cent each of IG1 households purchased weekly and fortnightly; which are also purchased once in month by 40 per cent, 42.85 per cent and 33.33 per cent of IG2, IG3 and IG4 users accordingly, but 66.67 of IG4 consumers purchased it once in two months. In addition, the same were purchased once in three months by 60 per cent of IG2 and 28.57 per cent of IG3 households. In case of Sambar masala, once in fortnight purchase was noticed in 66.67 per cent of IG1 households; 33.33 per cent, 20 per cent and 71.42 per cent consumers of IG1, IG2 and IG3 were also purchased once in month. In contrast, 40 per cent, 14.28 per cent and 16.67 per cent respondents of IG2, IG3 and IG4 respectively, purchased it once in two months. Further, about 40 per cent and 83.33 per cent of respondents of IG2 and IG4 consumers purchased the same once in three months and only 14.28 per cent of IG3 households purchased it occasionally.
The product purchase frequency of Gudibande taluk were presented in Table 4.18, it was noticed from the table that only IG4 (100 %) consumers purchased Dosa/Idli mix occasionally. In case of pickles, once in week purchase was found in 75 per cent of IG1
households and 25 per cent of IG2; once in month was observed in 25 per cent each in IG1 and IG2 and 50 per cent each in IG3 and IG4 consumers respectively. About 50 per cent each consumers of IG2, IG3 and IG4 were also purchased once in two months. For Sambar masala, once in fortnight purchase was seen in 75 per cent of IG1 and 50 per cent of IG2 households; 25 per cent, 50 per cent and 33.33 per cent users of IG1, IG3 and IG4 consumers respectively purchased it once in month. Similarly, 50 per cent and 66.67 per cent respondents of IG3 and IG4 purchased the same once in two months. However, about 50 per cent of IG2 purchased sambar masala once in three months.
4.2.3.2 Sources for Purchase of Instant Food Products by Different Income Groups
The sources for purchase of instant food products in Bangarpet taluk are presented in Table 4.19. It was observed from the table that, only IG3 and IG4 households purchased Dosa/Idli mix from different sources like departmental stores (100 per cent of IG3 and 33.33 per cent of IG4) and retail shops (66.67 per cent of IG4 households). In the case of pickles, cent per cent of IG1 and IG2, 72.72 per cent of IG3 and 25 per cent of IG4 households purchased from retail shops; 27.27 per cent of IG3 and 75 per cent of IG4 respondents bought it from departmental stores. With regard to sambar masala, except 71.42 per cent of IG4 households, all the consumers of IG1, IG2 and IG3 purchased it from retail shops only, wherein only 28.57 per cent of IG4 purchased it from departmental stores.
The sources of purchase for Mulbagal taluk was presented in Table 4.20. Only IG4 consumers purchased Dosa/Idli mix and the sources they preferred were departmental store (50 per cent) and retail shops (50 per cent). All the consumers of IG1, IG2 and IG3 and 75 per cent of IG4 purchased pickles from retail shops and only 25 per cent of IG4 preferred to purchase from departmental stores. In the case of Sambar masala, about cent per cent of IG1
and IG2, 87.50 per cent of IG3 and 80 per cent of IG4 households purchased from retail shops. However, 12.50 per cent of IG3 and 20 per cent of IG4 consumers purchased it from departmental stores.
Table 4.21 presents the sources of purchase for Gudibande taluk, it was observed that retail shop was the only source of purchase for all the selected instant products. Cent per cent consumers in all the income groups purchased all the selected products from retail shops.
4.2.3.3 Decision Makers of Instant Food Products in Different Income Groups
The decisions makers in purchase of Instant food Products across different income groups in the selected taluks of the district are presented in Table 4.22. It could be noticed from the table that in Bangarpet taluk, 58.33 per cent of IG1, 75 per cent of IG2, 45.45 per cent of IG3 and 50 per cent of IG4, housewives were the decision makers; at an overall it represents 56.41 per cent of the households. In 16.67 per cent of IG1 and 18.18 per cent of IG3 respondents, husbands were the decision makers in purchasing instant food products. Moreover, joint decisions by both husband and wife were noticed in about 25 per cent each of
IG1, IG2 and IG4 and 36.36 per cent of IG3 respondents respectively. The results also revealed that about 12.50 per cent each of the families in IG4 jointly by the family members and elders in the family made the decisions regarding the consumption of Instant food products.
In Mulbagal taluk, decisions regarding purchase of Instant food products were made by housewives in 66.67 per cent of IG1, 80 per cent of IG2, 71.42 per cent of IG3 and 50 per cent of IG4 households, as a whole it accounts to 66.67 per cent of the households. Decisions by husband and wife jointly were made in 33.33 per cent each in IG1, IG4 and 28.57 per cent in IG3 households, totally it accounts to 25 per cent of the households. In about 20 per cent of IG2 and 16.67 per cent of IG4 respondents, elders in the family made decision on consumption of instant food products; on the whole it constitutes 8.33 per cent of the respondents.
In Gudibande, about half of the consumers of IG1, IG4 and cent 16.67 per cent of IG2 and IG3 decisions regarding purchase of Instant food products were made by housewives only. And 50 per cent of households in IG1, husband alone took decisions about consumption of instant food products, in contrast to this 25 per cent each of the households in IG4, joint decisions by the family members and all the members of the family made the decisions regarding the same.
4.3 BRAND LOYALTY OF CONSUMERS OF INSTANT FOOD PRODUCTS
Using scaling technique, the responses for the statements, like confirm to use the brand, recommend the brand to others, purchase the same brand even if price increases and purchase the same brand even in the absence of sales promotion, were measured on a three point scale. The data were analyzed and the results for each of the instant food products covered in the study are presented.
The brand loyalty of purchasers towards instant food products in Bangarpet taluk is presented in Table 4.23. It could be inferred from the table that cent per cent users of Dosa/Idli mix in IG3 and 33.33 per cent in IG4 were found to be medium brand loyal but 66.67 per cent of IG4 were also noticed as low brand loyal. On the whole, it represents 50 per cent each as medium and low brand loyalty consumers for Dosa/Idli mix. In the case of pickles, 27.27 per cent each in IG1 belonged to high and medium brand loyal but about 45.45 per cent belonged to low loyalty categories. Whereas in case of IG2 , 37.50 per cent each of the users fall under high and medium loyalty group and only 25 per cent of them belonged to low loyalty category. About 50 per cent each of the users of IG3 belonged to high and medium brand loyalty group. However, in IG4, most of them (71.42 %) belonged to high brand loyalty group and 28.57 per cent were categorized as medium brand loyal for pickles. At an overall, it constituted 43.75 per cent as high brand loyal, 34.37 per cent as medium brand loyal and 21.87 per cent as low brand loyal households. In the case of sambar masala, about 30 per cent, 33.33 per cent and 13.33 per cent of respondents of IG1 belonged to high, medium and low loyal consumer groups, 50 per cent and 25 per cent each as high, medium and low loyal consumer groups, respectively in IG2; about 80 per cent and 20 per cent of respondents in IG3 belonged as high and medium loyalty group and 50 per cent each in IG4 were categorized as high and medium loyalty consumers in sambara masala. On the whole, it accounts for 55.54 per cent as high brand loyal, 33.33 per cent as medium brand loyal and 12.12 per cent of respondents as low brand loyal consumers.
Table 4.24 represents the brand loyalty consumers of instant food products in Mulbagal taluk. It could be revealed from the table that cent per cent in IG3 and IG4 purchasers of Dosa/Idli mix were considered to be as medium brand loyal, and no low loyalty consumers were observed for Dosa/ Idli mix. In case of pickles, about 60 per cent and 40 per cent consumers grouped into low and medium loyalty category, 75 per cent and 25 per cent of IG2, 50 per cent each in IG3 and 80 per cent and 20 per cent in IG4 were considered to be as high and medium brand loyalty consumers respectively. In sambar masala, 20 per cent and 40 per cent each of IG1 users falls under high and medium and low loyalty group. 50 per cent each of IG2, 80 per cent each and 20 per cent each of IG3 and IG4 belonged to high and medium brand loyalty categories.
Table 4.13 Purchase and Consumption of Instant Food Products by Households in Bangarpet Taluk
Income Groups (n=60)
Products Particulars
IG1 IG2 IG3 IG4 Overall
Per capita purchase (Kg/capita/month) - - 0.40 0.79 0.69
Dosa/ Idli mix
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
- - 26.29 58.33 50.32
Per capita purchase (Kg/capita/month) 0.04 0.05 0.09 0.12 0.07
Pickles
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
2.65 2.23 7.4 12.96 5.9
Per capita purchase (Kg/capita/month) 0.05 0.04 0.04 0.05 0.05
Sambar masala
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
6.44 7.41 7.84 9.92 7.68
Table 4.14 Purchase and Consumption of Instant Food Products by Households in Mulbagal Taluk
Income Groups (n=60)
Products Particulars
IG1 IG2 IG3 IG4 Overall
Per capita purchase (Kg/capita/month) - - - 0.5 0.5
Dosa/ Idli mix
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
- - - 36.75 36.75
Per capita purchase (Kg/capita/month) 0.03 0.04 0.04 0.05 0.04
Pickles
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
1.95 2.91 3.33 4.03 3.07
Per capita purchase (Kg/capita/month) 0.05 0.05 0.05 0.04 0.05
Sambar masala
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
6.15 9.29 8.39 9.29 8.02
Table 4.15 Purchase and Consumption of Instant Food Products by Households in Gudibande Taluk
Income Groups (n=60)
Products Particulars
IG1 IG2 IG3 IG4 Overall
Per capita purchase (Kg/capita/month) - - - 0.7 0.7
Dosa/ Idli mix
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
- - - 52.5 52.5
Per capita purchase (Kg/capita/month) 0.03 0.02 0.03 0.05 0.03
Pickles
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
1.43 0.54 1.14 2.07 1.32
Per capita purchase (Kg/capita/month) 0.05 0.04 0.04 0.05 0.05
Sambar masala
Per capita Expenditure on Instant Food Products (Rs/capita/Kg)
6.65 6.54 8.46 10.07 7.7
Table 4.16 Products Purchase Frequency in Bangarpet Taluk
Note: Figures in parentheses indicate percentages to the number of users
Table 4.23 Brand loyalty of Consumers towards Instant Food Products in Bangarpet taluk
Loyalty status
Products Income groups
High (9-12) Medium (5-8) Low (Upto 4)
IG1 (n=0) - - -
IG2 (n=0) - - -
IG3 (n=1) - 1 (100.00) -
IG4 (n=3) - 1 (33.33) 2 (66.67)
Dosa/Idli mix
Overall (n=4) - 2 (50.00) 2 (50.00)
IG1 (n=11) 3 (27.27) 3 (27.27) 5 (45.45)
IG2 (n=8) 3 (37.50) 3 (37.50) 2 (25.00)
IG3 (n=6) 3 (50.00) 3 (50.00) -
IG4 (n=7) 5 (71.42) 2 (28.57) -
Pickles
Overall (n=32) 14 (43.75) 11 (34.37) 7 (21.87)
IG1 (n=10) 3 (30.00) 5 (33.33) 2 (13.33)
IG2 (n=8) 4 (50.00) 2 (25.00) 2 (25.00)
IG3 (n=5) 4 (80.00) 1 (20.00) -
IG4 (n=6) 3 (50.00) 3 (50.00) -
Sambar masala
Overall (n=33) 18 (55.54) 11 (33.33) 4 (12.12)
Note: Figures in parentheses indicate percentages to the number of users
Table 4.24 Brand loyalty of Consumers towards Instant Food Products in Mulbagal taluk
Loyalty status
Products Income groups
High (9-12) Medium (5-8) Low (Upto 4)
IG1 (n=0) - -
IG2 (n=0) - -
IG3 (n=1) - 1 (100.00) -
IG4 (n=1) - 1 (100.00) -
Dosa/ Idli mix
Overall (n=2) - 2 (100.00) -
IG1 (n=5) 2 (40.00) 3 (60.00)
IG2 (n=4) 3 (75.00) 1 (25.00) -
IG3 (n=2) 1 (50.00) 1 (50.00) -
IG4 (n=5) 4 (80.00) 1 (20.00) -
Pickles
Overall (n=16) 8 (50.00) 5 (31.25) 3 (18.75)
IG1 (n=5) 1 (20.00) 2 (40.00) 2 (40.00)
IG2 (n=4) 2 (50.00) 2 (50.00) -
IG3 (n=5) 4 (80.00) 1 (20.00) -
IG4 (n=5) 4 (80.00) 1 (20.00) -
Sambar masala
Overall (n=19) 11 (57.89) 6 (31.57) 2 (10.52)
Note: Figures in parentheses indicate percentages to the number of users
Table 4.25 Brand loyalty of Consumers towards Instant Food Products in Gudibande taluk
Loyalty status
Products Income groups
High (9-12) Medium (5-8) Low (Upto 4)
IG1 (n=0) - - -
IG2 (n=0) - - -
IG3 (n=0) - - -
IG4 (n=1) - 1 (100.00) -
Dosa/ Idli mix
Overall (n=1) - 1 (100.00) -
IG1 (n=2) - 2 (100.000
IG2 (n=4) - 3 (75.00) 1 (25.00)
IG3 (n=0) - - -
IG4 (n=3) 2 (66.67) 1 (33.33)
Pickles
Overall (n=9) 2 (22.22) 6 (66.67) 1 (11.11)
IG1 (n=1) - 1 (100.00) -
IG2 (n=4) - 4 (100.00) -
IG3 (n=1) 1 (100.00) - -
IG4 (n=3) 3 (100.00) - -
Sambar masala
Overall (n=9) 4 (44.44) 5 (55.55) -
Note: Figures in parentheses indicate percentages to the number of users
Table 4.25 illustrates the results on brand loyalty of instant food consumers in Gudibande taluk. It was revealed from the table that, cent per cent of IG4 respondents were the purchasers of Dosa/Idli mix and all belonged to medium brand loyalty group and hence no low and high loyalty purchasers were found in the product. Whereas in case of pickles, cent per cent of IG1, 75 per cent of IG2 and 33.33 per cent IG4 were considered as medium brand loyal and about 66.67 per cent of IG4 were belonged as high brand loyalty group. On the whole, it accounts to 22.22 per cent, 66.67 per cent and 11.11 per cent of respondents as high, medium and low loyalty categories respectively. In case of Sambar masala, cent per cent in IG1 and IG2 consumers constituted to medium brand loyal and cent per cent each in IG3 and IG4 belonged to high brand loyalty category. On the whole, it accounts to 44.44 per cent of consumers were in high and 55.55 per cent of them belonged to medium loyalty group. However, no low loyalty users were found for sambar masala.
4.3.2 Reasons for not Preferring Particular Brand of Product
Table 4.26 presents the reasons for not preferring a particular brand by the respondents of selected taluks of the Kolar district using Likert scaling technique and the scores given by the respondents are analyzed and presented in the table.
In Bangarpet taluk, the respondents attached highest mean score (4.66) to high price followed by poor taste (3.94), poor quality (3.88), less keeping quality (3.78), inconvenient packaging (3.34), poor brand image (2.97), not good colour (2.66) and poor flavour (2.41) as the reasons based on their importance, for not preferring a particular brand in the purchase of Instant food products.
Similarly, Mulbagal taluk users affixed highest mean score based on their importance to high price (4.79); subsequently poor taste (4.16), poor quality (4.11), less keeping quality (3.79), inconvenient packaging (3.05), poor brand image (2.74), not good colour (2.47) and poor flavour (2.00) were the reasons for not preferring a particular brand during their purchases of Instant food products.
In the same way, in Gudibande taluk also, the respondents fastened more mean score to high price (4.90), poor quality (4.30), poor taste (4.10), less keeping quality (4.00), not good colour (3.30) inconvenient packaging (3.10), poor brand image (3.10), and poor flavour (2.3) accordingly as the reasons for not preferring a particular brand during their purchases of Instant food products.
Table 4.26 Reasons for not preferring particular brand of Product
Taluks
Bangarpet (n=32)
Mulbagal (n=19)
Gudibande (n=10)
Statements
Mean scores
Poor Quality 3.88 4.11 4.30
Poor taste 3.94 4.16 4.10
High price 4.66 4.79 4.90
Poor brand image 2.97 2.74 3.10
Inconvenient package 3.34 3.05 3.10
Poor flavour 2.41 2.00 2.30
Not good colour 2.66 2.47 3.30
Less keeping quality 3.78 3.79 4.00
4.4 BRAND COMPOSITION OF INSTANT FOOD PRODUCTS
Purchase behaviour of differentbrands of instant food products across income groups in Bangarpet taluk are presented in Table 4.27. It could be seen from table that only IG3 (100 %) and IG4 (66.67 %) respondents used MTR brand of Dosa/Idli mix. In addition to this, about 33.33 per cent of IG4 respondents used Aashirvaad brand. In the case of pickles, about 9.09 per cent of IG1, 25 per cent of IG2, 33.33 per cent of IG3 and 42.85 per cent of IG4 respondents used MN brand only. The Chinnis brand of pickle was used by 45.45 per cent of IG1, 37.50 per cent of IG2, 33.33 per cent of IG3 and 28.57 per cent of IG4 consumers, MTR brand was preferred by 28.57 per cent of IG4 households but local brands were used by 36.36 per cent of IG1 and 37.50 per cent of IG2; Priya pickles was consumed by 9.09 per cent and 33.33 per cent of IG1 and IG3 consumers, respectively. In the case of Sambar masala, 20 per cent, 37.50 per cent, 40 per cent and 50 per cent of IG1, IG2, IG3 and IG4, respectively opted for MTR brand; Everest brand was consumed by 20 per cent of IG1, 12.50 per cent of IG2, and 40 per cent each of IG3 and 16.67 per cent of IG4 households. Only 10 and 12.50 per cent of IG1 and IG2 purchased Excellent and Eastern brands of Sambar masala. And about 40 per cent, 37.50 per cent, 20 per cent and 33.33 per cent IG1, IG2, IG3 and IG4 respondents used local brands, respectively, but only 10 per cent of IG1 respondents used Swastik brand.
In Mulbagal (Table 4.28), about 50 per cent each of IG4 respondents used MTR and Aashirvaad brands of Dosa/Idli mix. In case of pickles, 40 per cent of IG1, 50 per cent each of IG2, IG3 and 60 per cent of IG4 households used MN brand. About 40 per cent of IG1, 50 per cent of IG3 and 40 per cent of IG4 used Chinnis brand; local brands of pickles were used by 20 per cent, 50 per cent of IG1 and IG2 households respectively. Whereas in case of Sambar masala, MTR brand accounts to 42.10 per cent in overall but across different income groups, 20 per cent of IG1, 25 per cent of IG2, 40 per cent of IG3 and 80 per cent of IG4 preferred this brand. About 20 per cent of IG4, 40 per cent of IG3 and 25 per cent of IG2 used Everest brand only. In overall, excellent brand was used by only 10.52 per cent across different income groups. However, local brands were used by 26.31 per cent of consumes in the taluk.
Table 4.29 presents the different brand users of instant food products in Gudibande taluk wherein cent per cent of IG4 respondents purchased MTR brand of Dosa/Idli mix. In pickles, 66.67 per cent each of IG2 and IG4 preferred Chinnis brand; cent per cent of IG3 and 33.33 per cent of IG4 purchased MN and MTR brands; Priya brand was used by 33.33 per cent of IG2 users but 100 per cent of IG1 gone for local brands. In sambar masala, 50 per cent of IG2, cent per cent of IG3 and 66.67 per cent of IG4 consumers used MTR brand which accounts to 50 per cent on the whole. Whereas, Everest brand was used by 25 per cent of IG2 and 33.33 per cent of IG4, accounting to 20 per cent on the whole. On the whole, Cent per cent of IG1, 25 per cent of IG2 consumers used local brands constituting for 30 per cent.
4.4.2 Factors Influencing Brand Preference of Instant Food Products
Table 4.30 presents the factors influencing brand preference of instant food products by the respondents of selected taluks of the Kolar district using Likert scaling technique and the scores given by the respondents are analyzed and presented in the table.
In Bangarpet taluk, the respondents attached highest mean score (4.91) to best quality followed by retailers influence (4.81), readily available (4.69), convenience (4.38), good brand image (3.63), reasonable price (3.50), good packaging (3.44), attractive packaging design (3.41) and advertisements (3.34) and as the factors based on their importance for preferring a particular brand in the purchase of Instant food products.
Similarly, Mulbagal taluk respondents contemplated highest mean score based on there importance to best quality (4.95), retailer’s influence (4.95), readily available (4.63) and convenience (4.47), good brand image (3.89), attractive packaging design (3.63), reasonable price (3.53), advertisements (3.37) and good packaging (3.00) were the other factors influencing brand preference during their purchases of Instant food products.
In the same way, in Gudibande taluk also the respondents affixed more mean score (5 per cent each) to best quality and retailers influence followed by ready availability and convenience (4.5 per cent each); Brand image (4.00) and good packaging (3.2) were the factors that influenced brand preference during their purchases of instant food products.
Table 4.27 Purchased behaviour of different brands of Instant Food Products in Bangarpet Taluk
Everest - 1 (25.00) - 1(33.33) 2 (20.00) Sambar masala
Local Brand 2 (100.00) 1 (25.00) - - 3 (30.00)
Note: Figures in parentheses indicate percentages to the number of users
Table 4.30 Factors Influencing Brand Preference of Instant Food Products
Taluks
Bangarpet (n=32)
Mulbagal (n=19)
Gudibande (n=10)
Statements
Mean scores
Best Quality 4.91 4.95 5.00
Good Brand Image 3.63 3.89 4.00
Retailers Influence 4.81 4.95 5.00
Reasonable Price 3.50 3.53 3.50
Readily Available 4.69 4.63 4.50
Good Packaging 3.44 3.00 3.20
Advertisement 3.34 3.37 3.90
Attractive Packaging Design 3.41 3.63 3.80
Convenience 4.38 4.47 4.50
4.5 DEMAND POTENTIAL FOR INSTANT FOOD PRODUCTS
4.5.1 Factors influencing on demand for Instant Food Products
The linear regression equation for Dosa/Idli mix was not adopted in the present study as sample of respondents or users of this product obtained in the selected taluks of the kolar district were very insignificant (7 in number) since the study concentrated on rural population, which itself indicated less demand for this product in the rural areas. However demand was estimated using per capita consumption of the users and population. The estimated linear regression equation for pickles and sambar masala was presented in Table 4.31. In case of pickles, except number of family members other variables such as price and monthly family income considered were found to be statistically non-significant. Both intercepts and slope coefficients were significant and ‘F’ value was 4.15 which indicated overall significance of the equation. Whereas, in the case of sambar masala, monthly family income and number of family members found to be statistically significant. Here the ‘F’ value was 11.60 and indicated overall significance.
4.5.2 Demand Potential for Instant Food Products
The potential demand for the Instant Food Products was estimated using the total population in the study area and per capita consumption of instant food products. It could be inferred from the table Table 4.32 that, the estimated demand for Dosa/Idli mix was 33,434 kg/month for Bangarpet taluk, 3,855.03 kg/month for Mulbagal taluk and 604.65 kg/month for Gudibande taluk. Similarly, for pickles, the estimated demand was 89,906 kg/month, 13,878 kg/month and 1,451.1 kg/month in Bangarpet, Mulbagal and Gudibande, respectively. In the case of sambar masala, it was anticipated as 42,986.4 kg/month for Bangarpet taluk, 17578.8 kg/month for Mulbagal taluk and 2021.28 kg/month for Gudibande taluk. For the district as a whole, the estimated demand was 78,922.46 kg/month Dosa/Idli mix, 2,14,145.8 kg/month for pickles and 1,85,153.2 kg/month for sambar masala.
Table 4.31 Estimated equation of demand for Instant Food Products in Kolar District
Estimates
Parameters
Pickles Sambar masala
Intercept 0.57674 0.1438
Prices b1 0.0027
(0.0023) 0.00002
(0.00015)
Mothly family income b2 0.000006 (0.00001) 0.000003 * (0.000001)
Number of family members b3 0.14837 ** (0.05431) 0.01623 ** (0.00536)
R2 0.149 0.335
F-value 4.157 11.605
Note: Figures in parantheses indicate standard error for respective coefficients * indicate significant at 1% level ** indicate significant at 5% level
Table 4.32 Potential Demand for Instant Food Products
Products
Taluks
Dosa/Idli mix (Kg/month)
Pickles (kg/month) Sambar masala
(kg/month)
Bangarpet 33,434 89,906 42,986.40
Mulbagal 3,855.03 13,878 17,578.80
Gudibande 604.65 1451.1 2,021.28
Total 21,834.76 58,502.14 514.3
District 78,922.46 2,14,145.8 1,85,153.2
5. DISCUSSION
The results of the investigation presented in the previous chapter are discussed in this chapter under the following heads.
5.1 Awareness of consumers towards Instant Food Products
5.2 Factors influencing the consumption of Instant Food products
5.3 Brand loyalty of consumers of Instant Food products
5.4 Brand composition of Instant Food products
5.5 Demand potential for Instant Food Products
5.1 AWARENESS OF CONSUMERS TOWARDS INSTANT FOOD PRODUCTS
5.1.1 Income wise distribution of households
From Table 4.1, it was evident that a majority of sample households in IG1, IG2, IG3 and IG4 were 25 per cent, 35 per cent, 26.67 per cent and 13.33 per cent respectively, in Bangarpet taluk. The proportion was 26.67 per cent, 31.67 per cent each and 10 per cent in IG1, IG2, IG3 and IG4 respectively in Mulbagal taluk. In case of Gudibande, the proportion was 25 per cent in IG1, 40 per cent in IG2, 28.33 per cent in IG3 and 25 per cent in IG4. However, at an overall, the proportion of sample households in IG1, IG2, IG3 and IG4 was 25.56 per cent, 35.56 per cent, 28.89 per cent and 10 per cent, respectively in the selected taluks of Kolar district.
5.1.2 Socio-economic characteristics of different Income groups
An examination of general characteristics of the respondents of different taluks (Table 4.2) revealed that the average family income of households were Rs. 2366, Rs. 4552, Rs. 7075 and Rs. 16000 in Bangarpet taluk, whereas Rs. 2312, Rs. 4300, Rs. 6894 and Rs. 15500 in Mulbagal taluk and it was Rs. 2246, Rs. 4045, Rs. 7000 and Rs. 14750 in Gudibande taluk in IG1, IG2, IG3 and IG4, respectively. It was observed that there was a positive relationship between income of the households and their education and family size. The average age of the decision makers was varied from 34 years to 38 years, 32 to 37 years and 32 to 34 years in Bangarpet, Mulbagal and Gudibande taluks, respectively. The average family size varied from 4 to 6 members per family across different income groups in all the taluks. The majority of the households in all the income groups of different taluks were nuclear families. Under food habit classification, more than, 80 per cent of IG1, 78 per cent of IG2, 75 per cent of IG3 and 83 per cent of IG4 households across different taluks were non-vegetarians and the remaining were vegetarians. With regard to occupation, majority of the selected respondents were belonged to agriculture and allied activities as the study was conducted in rural areas and hence most of them in all the income groups were belonged to this category only. However, it was more than 73 per cent in IG1, 42 per cent in IG2, 20 per cent in IG3 and 50 per cent in IG4 of Bangarpet, Mulbagal and Gudibande taluks respectively were depended on agri and allied activities. More than 12 per cent of IG1, 31 per cent of IG2, 43 per cent of IG3 were found to be housewives across different taluks, about 12.5 per cent and 16.67 per cent of IG4 in Bangarpet and Mulbagal were housewives.
5.1.3 Awareness of Consumers towards Instant Food Products
It was evident from Table 4.3 that the awareness of consumers about Instant food products across different income groups, about 66.67 per cent, 56.67 per cent and 46.67 per cent of the respondents of Bangarpet, Mulbagal and Gudibande taluks were aware of the Dosa/Idli mix product availability in the market. However, on the overall, among different income groups, very small per cent of the respondents in IG3 (22.78 per cent) followed by 17.22 per cent in IG2, 8.89 per cent in IG1 and 7.78 per cent in IG4 were aware of this product availability in the market. It is because of the reason that in almost all the rural areas, the Dosa/Idli mix was prepared by their own, and the same reason may hold good in this area also. In case of pickles and sambar masala, cent per cent of the respondents in all the taluks
and across income groups were aware about these selected instant food products due to their common and traditional usage of these products.
5.1.4 Brand Awareness of Consumers about Instant Food Products
It was noticed from Table 4.4 that the brand awareness of different products in all the selected taluks of Kolar district. In Bangarpet, 46.67 per cent and 6.67 per cent of respondents were aware of MTR and Aashirvaad brands of Dosa/ Idli mix. Among different income groups most of them (81.25 per cent, 75 per cent, 38.09 per cent and 6.67 per cent of IG3, IG4, IG2 and IG1 respondents, respectively) were aware of MTR brand only, in contrast, Aashirvaad brand was known to 37.50 per cent of IG4 and 4.76 per cent of IG2 respondents only. It may be attributed to the fact that in almost all the areas MTR brand was popular among instant food products rather than any other brands. With regards to pickles, majority of respondents (55 per cent) were aware of Chinnis brand followed by MN brand (48.33%) and MTR brand (41.67%) based on their product availability and popularity in the area. The other local brands, Priya and Ruchi brands were knew to 30 per cent, 21.67 per cent and 11.67 per cent of the consumers respectively. Among different income groups, most of IG1 respondents (53.33 per cent) were sentient of local brands due to the fact that the consumers in the rural areas think that branded items were expensive than the local one. The brands like Chinnis, MN and MTR, and Priya brands were known to few higher income group consumers as they are highly advertised through various mass media. In sambar masala, MTR and Everest brands were found to be popular among 58.33 per cent of respondents followed by Iyengar’s brand (31.67%), local brands (30%), Excellent brand (18.33%), Swastik brand (11.67%) and Orkay brand (6.67%) were known to the consumers of Instant food products because of their popularity in the study area.
In the case of Mulbagal, majority of (41.67 %and 10%) of respondents were aware of MTR and Aashirvaad brands of Dosa/Idli mix only. But among income groups most (83.33 %, 73.68 %and 31.57%) of the respondents in IG4, IG3 and IG2, respectively were aware of MTR brand only. Aashirvaad was known to 33.33 per cent of IG4 and 21.05 of IG3 respondents. With regard to pickles, majority of respondents (70 %, 33.33 %, 48.33%) were aware of Chinnis, MN and MTR brands. The other brands like Priya, Ruchi and local brands were popular in this area and hence used by few consumers. The Chinnis brand was familiar among 89.47, 78.94, 50.00 and 43.75 per cent of the consumers in IG3, IG2, IG4 and IG1 accordingly in Mulbagal. In addition to this, 83.33, 73.68, 31.57 and 25 per cent of the respondents were also aware of MN brand. The other brands such as MTR, Priya, Ruchi and local brands were familiar with less than 35 per cent of the respondents. In case of sambar masala, awareness of MTR and Everest brands were very popular among more than half of the respondents. The other brands like Excellent, Swastik, Eastern brand and Orkay brands were known to small portion of the consumers of the Instant food products in the taluk. All the respondents of IG3 and IG4 respondents in the taluk were aware of MTR and Everest brands. The other brands like Excellent, Eastern, Iyengar’s, Swasthik, Orkay and local brands were aware among small per cent of the respondents. Similar results were noticed in Gudibande taluk also wherein, the respondents knew only MTR brand of Dosa/Idli mix however, the per cent across different income groups was 75, 47.05 and 16.67 of IG4, IG3 and IG2 respectively. With regard to pickles, majority (61.67%) of respondents were aware of Chinnis brand followed by MN brand (33.33%). The local, Ruchi, MTR and Priya brands were popularly known among few portions of the consumers. More than 50 per cent of respondents in different income groups were aware of Chinnis brand and MN brand was familiar among more than 70 per cent of the IG3 and IG4 respondents. In addition to these brands, MTR, Priya and local brands were known to more than half of the IG4 respondents. In case of sambar masala, Everest brand was well known to 43.33 per cent of the respondents and 33.33 per cent each aware of MTR and Iyengar’s brands. However, 13.33, 8.33, 5 and 3.33 per cent of the respondents were aware of Swastik, Excellent, Orkay and Eastern brands among the Instant food products. Except Swastik brand, almost all the brands were aware among IG4 respondents. More than half of the respondents in IG3 were conscious of MTR and Everest brands. The brands like Everest, Iyengar’s, MTR, local, Excellent and Swasthik were familiar among IG2 respondents in their higher order.
The study conducted by Yee and Young (2004) on food industry awareness of the high fat content of pies shows that the major sources of brand awareness were word of mouth followed by advertisements, family members and relatives and friends.
5.2 FACTORS INFLUENCING CONSUMPTION OF INSTANT FOOD PRODUCTS
5.2.1 Factors influencing consumers in usage of Instant food products
5.2.1.1 User Categories of Instant Food Products
From Table 4.6 it was observed that majority (96.11 per cent) of respondents across Kolar district prepared Dosa/Idli mix in their home only as the product is prepared and consumed traditionally in the district and also it is easy to prepare in the home. Very meager of 3.98 per cent mostly of the higher income groups preferred branded product along with their own preparation. It was noteworthy to mention that all the respondents of IG1 and IG2 were prepared this product in their home only. In case of pickles, more than half of the consumers prepared their own because of easy availability of raw materials like mango and lemon. Only 6.67 per cent used branded products along with own preparation. However, 24.44 per cent used only branded products, as these products are also available in small sachets with less prices. A small portion (1.11%) of the consumers consumed both brand and unbranded products. In case of sambar masala, most (73.43 % of IG2 and 65.38 % of IG3) were used home made products only as these products were prepared in required quantity at once and it involves low cost too, if, these products are prepared in home. About 34.78 per cent of IG1 and 50 per cent of IG4 were used branded products only because of their availability in small sachets with good taste. At an overall, maximum of 59.44 per cent of respondents prepared own sambar masala followed by only branded (26.11%), only unbrand (8.33%), brand and own preparation (5%) and both brand and unbranded products (1.11%).
5.2.1.2 Reasons for not Purchasing Instant Food Products
It was revealed from the Table 4.7 that 66.67 per cent, 47.22 per cent and 55.56 per cent of respondents of Dosa/Idli mix; Pickles and Sambar masala respectively were not purchased these products because of their low cost of preparation. Differences in taste between home made and purchased product was the reason for not using Dosa/Idli mix, pickles and sambar masala by 52.78 per cent and 54.44 per cent each of the consumers. About 41.67 per cent, 52.22 per cent and 48.89 per cent of respondents were not purchased these products because of disliking by their family members. High price was the reason for not consuming the same products by 91.67 per cent, 52.78 per cent and 41.67 per cent of respondents accordingly. Dosa/ idli mix, pickles and sambar masala were not purchased due to non-availability of these products by 19.44 per cent, 11.11 per cent and 19.44 per cent of the respondents, respectively. And only 11.11 per cent of consumers were not purchasing Dosa/Idli mix due to lack of awareness about the product availability in market.
5.2.1.3 Factors Considered for Purchasing Instant Food Products
It was noticed from the Table 4.8 to 4.10 that the major factors considered while purchasing Dosa/Idli mix were ready availability and save time of preparation by cent per cent users in Bangarpet, Mulbagal and Gudibande taluks respectively. The other factors considered while using Dosa/Idli mix were likeliness of their family members and availability of quality products by 75 per cent each and cent per cent each of the respondents in Bangarpet and Mulbagal taluk. The factors considered for using pickles were tastes liked by family members and save time of preparation (97.43% each) in Bangarpet taluk and the same factor was considered by cent per cent of Mulbagal taluk and Gudibande taluk consumers. Subsequently, habit of usage was also one of the factors considered by 77 per cent, 75 per cent and 57.14 per cent consumers of Bangarpet, Mulbagal and Gudibande taluks respectively, due to the conventional and routine usage of this product. The other factors such as traditional usage, tastes liked by family members, availability of products at reasonable price and availability of quality products were quoted by few respondents. In case of Sambar masala, cent per cent of Bangarpet, Mulbagal and 76.92 per cent of Gudibande consumers used as it is necessary ingradient for preparations. The other factors such as ready availability and save time of preparation were considered by cent per cent of Mulbagal and Gudibande and 83.33 per cent and 97.22 per cent of Bangarpet taluk consumers respectively. And availability of products at reasonable price was also considered by 69.44 per cent, 83.33 per cent and 61.53 per cent of Bangarpet, Mulbagal and Gudibande consumers respectively. Similar to these results, the study conducted by Ragavan (1994)
shows that quality, availability and price were the important factors, which had influenced purchase of vegetables by respondents from modern retail outlet.
5.2.1.4 Sources of Information
It was observed from the Table 4.11 that majority of the consumers of pickles and sambar masala preferred retail shop as the major source of information as the sellers themselves influence and motivate the consumers to opt for these products while making purchase followed by TV/radio advertisements as these are the common mass medias existing in almost all the households in all the selected taluks. However, the percentages were 92.30 per cent and 87.17 per cent for pickles and 91.67 per cent and 58.33 per cent for sambar masala consumers in Bangarpet. The percentage was 79.16 and 87.50 for pickles and 91.67 and 58.33 for sambar masala in Mulbagal, whereas in case of Gudibande, cent per cent each preferred retail shop and TV/radio advertisements for pickles and 92.30 per cent and 61.53 per cent for sambar masala. Apart from this friends/relatives were also the major sources of information for these products by 66.67 per cent, 54.16 per cent and 78.57 per cent of pickles and 88.89 per cent, 87.50 per cent and 92.30 per cent of sambar masala products in Bangarpet, Mulbagal and Gudibande consumers respectively. This is because the purchasers have more faith and belief among themselves rather than any other sources. It was noticed that the purchasers proportion were very small in Dosa/Idli mix in all the taluks and most of them were preferred retail shop, newspaper/magazine and TV/radio advertisements as their sources of information and the percentage was less than five per cent since almost all the respondents prepared this product in their home.
5.2.2 Consumption Pattern of Instant Food Products
5.2.2.1 Consumption pattern of households
It could be seen from the Table 4.12 that in all the taluks, there exist a positive relationship between household’s monthly expenditure and monthly income. As the monthly income increases, the households monthly expenditure also increased and the same thing was noticed in case of Instant food products. These results were coincides with the results obtained by the Kubendran and Vanniarajan (2005) while studying the change in consumption pattern due to changes in food habits. They found that if income and urbanization increases among consumers, the per centage of income spent on consumption increases. The amount spent on instant food products in all the taluks (Bangarpet, Mulbagal and Gudibande) was found to be highest in case of IG4 (Rs.492.50, Rs.433.33 and Rs.457.50) followed by IG3 (Rs.348.13, Rs.323.68 and Rs.281.18), IG2 (Rs.247.14, Rs.272.63 and Rs.238.75) and IG1 (Rs.189.33, Rs.123.75 and Rs.185.33). Similar trend was noticed with respect to total monthly expenditure, wherein the expenditure was Rs.5080 in IG4, Rs.3495.13 in IG3, Rs.2694.76 in IG2 and Rs.1609.33 in IG1 in Bangarpet, Rs.4841.67 in IG4, Rs.3526.32 in IG3, Rs.2783.16 in IG2 and Rs.1780 in IG1 in Mulbagal taluk and Rs.4362.50 in IG4, Rs.3407.65 in IG3, Rs.2528.33 in IG2 and Rs.1882 in IG1 in Gudibande taluk. It could be observed that, on an average the percentage share of instant food products in the total expenditure of households was 16.28 per cent, 15.11 per cent and 14.84 per cent in Bangarpet, Mulbagal and Gudibande taluk consumers respectively.
5.2.2.2 Purchase and Consumption of Instant Food Products
The Table 4.13 to 4.15 showed that the per capita purchase and per capita expenditure of Instant Food Products in three taluks, which had a positive relationship with income. It can be noticed from the tables that, on the whole the per capita purchase of Dosa/Idli mix was highest (0.7 kg/capita/month) in Gudibande taluk followed by Bangarpet consumers (0.69 kg/capita/month) and Mulbagal (0.50 kg/capita/month) and the per capita expenditure on the same was Rs. 52.5, Rs. 50.32 and Rs. 36.75 in the respective taluks. In case of pickles, the per capita purchase was highest in Bangarpet consumers (0.07 kg/capita/month) followed by Mulbagal (0.04 kg/capita/month) and Gudibande (0.03 kg/capita/month) because consumers in Bangarpet taluk were highly influenced by urbanization and used more of branded products. And the expenditure on this product was Rs. 5.90, Rs. 3.07 and Rs. 1.32 by Bangarpet, Mulbagal and Gudibande taluk consumers respectively.
In the case of sambar masala, the per capita purchase was same (0.05 kg/capita/month) in all the three taluks with the expenditure of Rs. 7.68, Rs. 8.02 and Rs. 7.70 in Bangarpet, Mulbagal and Gudibande taluk consumers respectively.
5.2.3 Purchase Pattern of Instant Food Products
5.2.3.1 Purchase Frequency of Instant Food Products
Table 4.16 to 4.18 depicts the frequency of purchase of instant food products by households in selected taluks of the study area. It was inferred from the tables that only some of the higher income groups such as IG3 and IG4 consumers in all the taluks in the study area purchased Dosa/Idli mix occasionally, except (100 per cent of IG3 and 66.67 per cent of IG4) consumers of Bangarpet taluk, wherein their purchase frequency was once in three months. It is attributed to the fact that most of the consumers in rural areas prepared Dosa/Idli mix in their home only as it involves less cost rather than purchasing branded product from the market. Further, the non-availability of branded Dosa/idli mix in convenient packets was the reason quoted by some of the consumers. In case of pickles, at an overall most of the consumers (38.46 %, 29.16 % and 35.71 % of Bangarpet, Mulbagal and Gudibande taluk, respectively) purchased once in a month followed by (35.89 %, 16.67 % and 35.71 % of Bangarpet, Mulbagal and Gudibande taluk, respectively) once in two months. It was also noticed that more than 30 per cent of these consumers belonged to IG4 only but the per cent of consumers in other income group purchased in this frequency were varied drastically. Few consumers in all income groups also purchased pickles once in a week, once in fortnight, once in three months and occasionally. Since, the product is consumed in little quantity in routine food consumption the purchase quantity and frequency were varied across the consumers. With regard to Sambar masala, the overall purchase frequency was found to be different across taluks, in Bangarpet taluk, once in fortnight, once in month and once in two month purchase was found in 25 per cent each of the households. However, the highest of 75 per cent of IG1 consumers purchased sambar masala once in fortnight; more than half of the IG4 consumers purchased the product once in three months, 44.44 per cent of IG3 consumers purchased once in a month. Whereas in case of Mulbagal, 33.33 per cent purchased monthly once, 29.16 per cent purchased once in three months and 16.67 per cent each purchased once in fortnight and once in two months. The highest of 83.33 per cent of IG4 were purchased once in three months; 71.42 per cent of IG3 purchased once in a month and about 40 per cent of IG2 purchased once in two months. Similarly, in Gudibande, at an overall, 38.46 per cent, 23.07 per cent each and 15.38 per cent respondents purchased once in fortnight, once in a month, once in two months and three months once respectively. In different income groups, more than half (66.67%) of IG4 consumers purchased once in two months and once in month (33.33%) respectively. Here also about 75 per cent of IG1 purchased it once in fortnightly. The frequent purchase of sambar masala by the IG1 consumers may be due to the frequent payments/wages received by these groups as most of them were belonged to labours categories and they purchase products in little quantities as and when needed. The frequency of purchase in IG3 and IG4 was once in two months and three months as the consumers in these groups purchase products at once in bulk.
5.2.3.2 Sources for Purchase of Instant Food Products by Different Income Groups
The sources for purchase of instant food products in the study area are presented in Table 4.19 to 4.21 revealed that retail shops and departments stores as the only two sources of purchase of instant food products in the study area. It was observed from the table that the only higher income groups purchased Dosa/Idli mix from departmental stores (100 % of IG3 and 33.33 % of IG4 in Bangarpet; 50 % of IG4 in Mulbagal) and retail shops (66.67 % of IG4 households in Bangarpet, 50 % of IG4 in Mulbagal and 100 of IG4 in Gudibande) as the most of the consumers in the rural area prepare this product in their home only. In case of pickles, cent per cent each of IG1 and IG2, 72.72 per cent of IG3 and 25 per cent of IG4 in Bangarpet; and cent per cent each of IG1, IG2, IG3 and 75 per cent IG4 households in Mulbagal and all consumers of Gudibande taluk purchased from retail shops due to the absence of departmental stores in this area; about 27.27 per cent of IG3 and 75 per cent of IG4 respondents in Bangarpet; 25 per cent of IG4 in Mulbagal bought it from departmental stores. With regard to sambar masala, except 28.57 per cent of IG4 households, cent per cent of IG1, IG2, IG3 and 71.42 per cent of IG4 respondents in Bangarpet; cent per cent of IG1 and IG2,
87.50 per cent of IG3 and 80 per cent of IG4 in Mulbagal; all the consumers in different income groups of Gudibande taluk purchased the sambar masala from retail shops.
5.2.3.3 Decision Makers of Instant Food Products in Different Income Groups
It could be noticed from Table 4.22 that in all the taluks, on the whole, housewives were the major decision makers (56.41 % in Bangarpet, 66.67 % in Mulbagal and 71.42 % in Gudibande) and in all the income groups as the housewives sets the consumption pattern of food products in the family. Husband and wife jointly made decision in consumption of instant food products by 28.20 per cent in Bangarpet, 25 per cent in Mulbagal and 7.14 per cent in Gudibande taluk. The other decision makers in households were grouped as husband alone, elders in the family and joint decision by all family members. In confirmation with this, the study conducted by Nagaraj (2004) reported that buying behaviour is very much influenced by experience of their own and of neighbour consumers and his own family and the involvement of his own members are exerting maximum influence on his purchases. Similarly, the study conducted by Shivkumar (2004) showed that the consumer from all the income groups is mainly influenced to purchase by the opinions of their family members.
5.3 BRAND LOYALTY OF CONSUMERS OF INSTANT FOOD PRODUCTS
It could be inferred from Table 4.23 to 4.25 that, on the whole 50 per cent each of the users of Dosa/Idli mix in Bangarpet falls under medium and low brand loyalty group. And cent per cent of Mulbagal and Gudibande were considered to be as medium brand loyalty consumers. In case of pickles, on the whole, 43.75 per cent, 34.37 per cent and 21.87 per cent (Bangarpet), 50 per cent, 31.25 per cent and 18.75 per cent (Mulbagal) and 22.22 per cent, 66.67 per cent and 11.11 per cent (Gudibande) consumers were in high, medium and low loyalty groups respectively. In sambar masala, at an overall, about 40 per cent consumers in all the taluks were high loyal followed by more than 30 per cent of consumers, where they belonged to medium loyalty and only 12.12 per cent of Bangarpet, 10.52 per cent of Mulbagal consumers were low loyal for sambar masala. In contrast to other two products, the higher brand loyalty was noticed in sambar masala product only in all the income groups as most of the consumers in all the taluks used MTR brand generally because of its taste, convenient packaging and reasonable price. Ali (1992) study on brand loyalty and switching pattern of processed fruit and vegetable products in Bangalore city shown Kissan brand of jam, Maggi brand of ketchup had a maximum brand loyalty among consumers and less amount of brand switching occurred from these brands. The high brand loyalty in higher income group was noticed due to the fact that they look for tastes rather than prices of the products/ brands. The brand loyalty in lower income group was attributed to the availability of convenient packages in small quantities at reasonable prices in some brands. In accordance with this result, Padmanabhan (1999) study on brand loyalty revealed that only when price of the particular brand is comparatively lower to prices of other brand in the market, the consumers would naturally prefer to low priced brand. Otherwise they would naturally continue to purchase the same brand.
5.3.2 Reasons for not Preferring Particular Brand of Product
Table 4.26 presents the reasons for not preferring a particular brand by the respondents of selected taluks of the Kolar district. The respondents attached high mean score (4.66 in Bangarpet, 4.79 in Mulbagal and 4.90 in Gudibande) to high price and least mean score to poor flavour (2.41, 2.00 and 2.30 in Bangarpet, Mulbagal and Gudibande) respectively) as the reasons based on their importance for not preferring a particular brand in purchase of Instant food products as the rational consumer wanted to have good product at cheaper rate. The results obtained by Hans et al (1996) found that brand switching of consumer was based on variety seeking behaviour, motivations such as curiosity and price motive. The other important reasons quoted by the consumers in the study area were poor taste and quality, less keeping quality, inconvenient packaging, poor brand image and not good colour for not preferring a particular brand during their purchase of instant food products.
5.4 BRAND COMPOSITION OF INSTANT FOOD PRODUCTS
Purchased behaviour of different brands of instant food products across income groups in the study area are shown in Table 4.27 to 4.29. It was revealed from the tables that MTR and Ashirvaad were the major brands available in case of Dosa/Idli mix whereas MN, Chinnis, MTR, Ruchi, Priya and some local brands were the major brands in pickles. Similarly, brands available in sambar masala product were MTR, Everest, Excellent, Eastern, Swastik and some local brands. It was noticed that at an overall, MTR brand of Dosa/Idli mix was used by 75 per cent and 50 per cent and 100 per cent each in Bangarpet, and Mulbagal taluk and Gudibande taluk respectively but Aashirvaad brand was used by 25 per cent and 50 per cent users in Bangrpet and Mulbagal. Most of the IG4 consumers only preferred and purchased branded Dosa/ Idli mix in the study area. In case of pickles, on the whole, Chinnis brand was purchased by 37.50 per cent, 31.25 per cent and 40 per cent of Bangarpet, Mulbagal and Gudibande consumers respectively, followed by MN brand by 25 per cent, 50 per cent and 20 per cent of users in Bangarpet, Mulbagal and Gudibande taluk respondents respectively. In addition to this, about 21.87 per cent, 18.75 per cent and 20 per cent of the consumers in Bangarpet, and Mulbagal and Gudibande preferred local brands of pickles. Across different income groups, MN brand followed by Chinnis brand was consumed by 42.85 per cent and 28.57 per cent of IG4, 33.33 per cent each of IG3 respondents and 25 per cent and 37.50 per cent of IG2 and 9.09 per cent and 45.45 per cent of IG1 consumers in Bangarpet taluk, In case of Mulbagal taluk, 60 per cent and 40 per cent of IG4, 50 per cent each of IG3, 50 per cent of IG2 and 40 per cent of IG1 used MN and Chinnis brand respectively. Whereas in Gudibande, more than half of IG4 and IG2 used Chinnis brand, followed by 100 per cent each of IG3 and IG1 used MN brand and local brands of pickles respectively. Among the branded product users most of the IG1 and IG2 consumers used MN, MTR and other local brands of pickles and their per cent varied across taluks. Similarly in case of sambar masala, on the whole, MTR and Everest brands was used by 34.48 per cent and 20.68 per cent in Bangarpet taluk, 42.10 per cent and 21.05 per cent in Mulbagal taluk and 50 per cent and 20 per cent in Gudibande taluk consumers. Singh and Singh (1981) found that consumers have 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.
5.4.2 Factors Influencing Brand Preference of Instant Food Products
Table 4.30 presents the factors influencing brand preference of instant food products by the respondents of selected taluks of the Kolar district using Likert scaling technique. In all taluks, the respondents attached highest mean score (4.91, 4.95 and 5 in Bangarpet, Mulbagal and Gudibande) to best quality followed by retailers influence (4.81, 4.95 and 5.00 in respective taluks) and the least means score was assigned to advertisements (3.34) in Bangarpet and good packaging (3.00 and 3.20) in both Mulbagal and Gudibande taluk, as the factors for preferring a particular brand in purchase of Instant food products. The other important factors influencing the consumers to go for branded products were good brand image, reasonable price, ready availability, convenience and attractive packaging designs. Similar to this study, the study undertaken by Sheeja
(1998) in Coimbatore district inferred
that consumers considered the quality aspects like aroma, taste, freshness and purity as the major factors deciding the preference for a particular brand of processed spices. In the same line, the study conducted by Nandagopal and Chinnaiyan (2003) on brand preference of soft drinks in rural Tamil Nadu revealed 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.
5.5 DEMAND POTENTIAL FOR INSTANT FOOD PRODUCTS
It could be inferred from Table 4.32 that the potential demand for Dosa/Idli mix was 33,434 kg/month for Bangarpet taluk, 3,855.03 kg/month for Mulbagal taluk and 604.65 kg/month for Gudibande taluk. Similarly, for pickles, it was 89,906 kg/month, 13,878 kg/month and 1,451.1 kg/month in Bangarpet, Mulbagal and Gudibande, respectively and in sambar masala, the anticipated demand was 42,986.4 kg/month for Bangarpet taluk, 17,578.8 kg/month for Mulbagal taluk and 2,021.28 kg/month for Gudibande taluk. On the whole for the district, the estimated demand was 78922.46 kg/month Dosa/Idli mix, 214145.8
kg/month for pickles and 1,85,153.2 kg/month for sambar masala. These estimated demands were based on the calculated per capita consumption and prevailing users population in their respective areas.
6. SUMMARY AND POLICY IMPLICATIONS
India is the world’s second largest producer of food next to china and has the potential of being biggest industry with food and agricultural sector contributing 26% of Indian GDP. Food accounts for the largest share of consumer spending. Food and food products account for about 53 per cent of the value of final private consumption. The average monthly per-capita consumer expenditure (MPCE) was Rs. 511 for rural India comprised Rs.305 for food and Rs. 206 for non-food. For urban population, it is Rs. 1060 comprised Rs.441 for food and Rs. 619 for non-food. There was a decline in the share of food in total expenditure that is 54 per cent in rural areas compared to 64 per cent in 1987-88 and 42 per cent in urban areas compared to 56 per cent during 1987-88 (National Sample Survey Organization, GOI).
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. Hence, Instant Food Products came into light, which originated in Japan with Instant noodles and had its beginning in India in 80’s, are found today in the kitchen shelves of every Indian household. The advancement of science and technology offered the people new foods processing vessels, equipment and tools but still people were in search of new techniques to speed up the cooking process in order to cope up with mechanical life, as they do not have sufficient time to cook food in the conventional methods. Capitalizing this situation, business houses ranging from small time manufactures to multinational corporations have started innovating and commercializing “easy to cook food items” like noodles, vermicelli, gulab jamun, instant idli, vada, dosa mix etc… that are otherwise called instant. The instant food products are not only easy to cook but also have a significant role and place in the celebration of the family functions and religious functions of the people.
“Instant food products which are prepared and packaged often in powdered form are required only the addition of a liquid as water or milk for final preparation” [Oxford Advanced Learners Dictionary].
Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits to 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 instant foods or ready-to-eat foods. The food habitats in India have changed due to the Western influence and the usage of these foods is also on the rise. The instant mix market in India was approximately Rs.150 crore during the year 2003 and at the end of 2004, it was around Rs.350 crore and in March 2007 the size of the Indian ready to eat market is approximately Rs.600-700million (Indiantelevision.com. March 10, 2007). Since, with the rising income levels of the consumers and their changing tastes and preferences, the demand for instant food products is undergoing a change both in qualitative and quantitative terms. Though there are so many instant foods available in the market, their popularity is increasing in a slow pace especially in the rural markets due to lack of awareness compared to larger cities where they are widely available and are also more popular. Hence, in the present investigation, an attempt was made to examine the buying behaviour, consumption pattern, factors influencing the buying behaviour, brand loyalty, brand composition and also estimated demand potential for instant food products.
The specific objectives of the study were;
i. To study the extent of awareness about Instant Food Products
ii. To analyze factors influencing the buying behaviour of Instant Food Products
iii. To analyze brand loyalty for Instant Food Products and
iv. To study brand composition of Instant Food Products
v. To estimate demand potential for Instant Food Products
The study was carried out in respect of Kolar district, as the district was familiar to the researcher and also assuming that district is highly influenced by ever changing environment of metropolitan city Bangalore, since kolar district is situated besides Bangalore.
A multi-stage sampling technique was followed to collect data. A sample of 180 households was choosen randomly from three selected taluks of the districts namely Bangarpet, Mulbaghal and Gudibande based on population, as high, medium and low population. In the next stage two hoblies from each taluk were selected. Finally, 30 consumers from each hobli, totally accounting to 180 samples were selected and data were collected from the housewives in the case of households, as they are the one’s who normally set the consumption patterns in the family. Data were collected with the help of pre-structured and pre-tested schedules through personal interview.
Based on economic status of the rural population in the study area, households were grouped into four income groups. To study the awareness of consumers and factors influencing the consumption of Instant Food Products, simple averages and percentages were calculated. To measure the brand loyalty of consumers towards instant food products scaling was used. Likert Scaling technique was employed to study the factors influencing the brand preferences and reasons for not preferring the particular brand by the consumers of instant food products. The potential demand for the Instant Food Products was estimated using the total population in the study area and per capita consumption of instant food products.
Findings of the study
The important findings of the study are summarized and suitable conclusions are drawn and presented below.
1. The general characteristics of the 180 households revealed that majority (35.56 per cent) of households belonged to income groups IG2, while IG3 comprised of 28.89 per cent households followed by IG1 (25.56 per cent) and IG4 (10 per cent) in the study area.
2. The average monthly family income of IG1, IG2, IG3 and IG4 in all the selected taluks was Rs. 2,300, Rs. 4,552, Rs. 7075 and Rs. 16,000 respectively in Bangarpet, Rs. 2312, Rs. 4300, Rs. 6894 and Rs. 15,500 respectively in Mulbagal taluk and it was Rs. 2,246, Rs.4,045, Rs.7,000 and Rs.14,750 respectively in Gudibande taluk.
3. The average family size varied from 4 to 6 members and the average age of the respondents varied from 32 years to 38 years and majority of the households were nuclear families, in selected taluks of the district. Classification of households according to their food habit revealed that more than 80 per cent of IG1 and IG4 respondents and more than 75 per cent of IG2 and IG3 were non-vegetarians and remaining were vegetarians in Bangarpet, Mulbagal and Gudibande taluks.
4. The awareness of consumers about Instant food products across different income groups in different taluks of the district showed that, small proportion of the respondents in IG3 (22.78 per cent) were aware of Dosa/Idli mix product in the market followed by 17.22 per cent in IG2, 8.89 per cent in IG1 and 7.78 per cent in IG4. In case of pickles and Sambar masala, cent per cent of the respondents in all the taluks were aware of these two instant food products. The overall brand awareness of consumers about the Dosa/ Idli mix across selected taluks revealed that about 37.78 per cent of the respondents were aware of MTR brand only and very meager of 5.56 per cent were conscious of Aashirvaad brand. With regard to pickles, majority of respondents (62.22 per cent) were aware of Chinnis brand followed by MN brand (43.33 per cent) and MTR brand (23.89 per cent). In case of sambar masala, awareness of Everest and MTR brands were highest accounting to 50.56 per cent and 48.89 per cent of the respondents.
5. The user categories of different Instant food products across different income groups in the study area presented that in case of Dosa/Idli mix, majority (96.11 per cent) of respondents prepared Dosa/Idli mix in their home only. Very meager of 3.98 per cent preferred branded product along with their own preparation. In case of pickles, about 57.78 per cent of consumers prepared their own, 6.67 per cent used branded
products along with own preparation, 24.44 per cent used only branded products, 10 per cent were used only unbranded products and 1.11 per cent of respondents consumed both brand and unbranded products. Maximum of 59.44 per cent of respondents prepared own sambar masala followed by branded (26.11 per cent), only unbrand (8.33 per cent), brand and own preparation (5 per cent) and both brand and unbranded products (1.11 per cent).
6. Reasons for not purchasing the Dosa/Idli mix, Pickles and Sambar masala by the respondents were low cost of preparation (66.67 per cent, 47.22 per cent and 55.56 per cent of respondents of respectively), Differences in tastes between home made and purchased product (52.78 per cent of the consumers, whereas 54.44 per cent each), disliking of these products by their family members (41.67 per cent, 52.22 per cent and 48.89 per cent), High price (91.67 per cent, 52.78 per cent and 41.67 per cent) and non-availability of these products in the area (19.44 per cent, 11.11 per cent and 19.44 per cent).
7. The factors considered by the respondents for consumption of Dosa/Idli mix were ready availability and save time of preparation by Cent per cent consumers of Bangarpet, Mulbagal and Gudibande taluks. And in case of both pickles and sambar masala same factors were considered by all the cent per cent consumers of Mulbagal and Gudibande taluk but in Bangarpet they were considered by 89.74 per cent and 97.43 percent of consumers. In addition other factors were also considered such as availability of quality products, habit of using, necessary ingredient for preparations so on by most of the consumers in respective taluks.
8. The sources of information about instant food products for the consumers in the study area showed that, for about 92.30 per cent, 79.16 per cent and 100 per cent of pickle buyers and 91.67 per cent each and 92.30 per cent of Sambar masala buyers of Bangarpet, Mulbagal and Gudibande respectively, retail shop was the major source of information followed by TV/radio advertisements for 87.17 per cent, 87.50 per cent and 100 per cent of pickles and 58.33 per cent each and 61.53 per cent and of the Sambar masala consumers. In case of Dosa/Idli mix, Newspaper/magazine was the source for getting information by the 75 per cent, and 100 per cent each of the respondents in Bangarpet, Mulbagal and Gudibande respectively.
9. The average monthly expenditure on instant food products (Bangarpet, Mulbagal and Gudibande) was found to be highest in case of IG4 (Rs.492.50, Rs.433.33 and Rs.457) followed by IG3 (Rs.348.13, Rs.323.68 and 281.18), IG2 (Rs.247.14, Rs.272.63 and Rs.238.75) and IG1 (Rs.189.33, Rs.123.75 and Rs.185.33).
10. The average per capita purchase and per capita expenditure on selected instant food products had a positive relationship with income of households. The per capita purchase of Dosa/Idli mix, pickles and sambar masala was 0.69 kg/capita/month, 0.07 kg/capita/month and 0.05 kg/capita/month and the expenditure on this was Rs. 50.32, Rs. 5.90 and Rs. 7.68 in Bangarpet taluk. In case of Mulbagal taluk, the per capita purchase of Dosa/Idli mix, pickles and sambar masala 0.50 kg/capita/month, 0.04 kg/capita/month and 0.05 kg/capita/month and the expenditure on this was Rs. 36.75, Rs. 3.07 and Rs. 8.02 respectively. In case of Gudibande, the per capita purchase and expenditure on the respective products was 0.7 kg/capita/month, 0.03 kg/capita/month and 0.05 kg/capita/month and expenditure on this was Rs. 52.50, Rs. 1.32 and Rs. 7.70 respectively.
11. It was inferred that only some of the higher income groups such as IG3 and IG4 consumers in all the taluks in the study area purchased Dosa/Idli mix that to occasionally, it is attributed to the fact that most of the consumers in rural areas prepared Dosa/Idli mix in their home only as it involves less cost rather than purchasing from the market. In case of pickles, at an overall most of the consumers (25 per cent, 11.67 per cent and 8.33 per cent of Bangarpet, Mulbagal and Gudibande taluk, respectively) purchased once in a month. In case of sambar masala, 25 per cent of Bangarpet consumers and 23.07 per cent each of Gudibande taluk consumers purchased once in a month and once in two months respectively.
12. The sources of purchase for selected instant food products in the study area were retail shops and departmental stores. Only higher income groups respondents
preferred to purchase from departmental stores along with retail shops, rather all most all the IG1 and IG2 respondents purchased the selected products from retail shops.
13. Housewives were the major decision makers (56.41 per cent in Bangarpet, 86.67 per cent in Mulbagal and 71.42 per cent in Gudibande) in all the income groups as the housewives set the consumption pattern of food products in the family.
14. As the study was conducted in rural areas it was observed that, most of the consumers of Dosa/Idli mix found to be medium loyal and no respondents were found in high loyalty group but in case of pickles and sambar masala most of them belonged to higher loyalty group followed by medium and low loyalty category.
15. Reasons for not preferring particular brand of the product by respondents was due to the factors such as high price followed by poor taste, poor quality and less keeping quality.
16. The purchased behaviour of different brands of instant food products revealed that, in case of Dosa/Idli mix the consumers used MTR brand compared to Aashirvaad brand. Most of the pickle buyers liked to purchase chinnis brand and MN brand than other brands of the study area. And in case of sambar masala majority of respondents preferred MTR brand followed by Everest brand and other local brands that are available in the area.
17. The factors that influenced brand preference of the selected instant food products were best quality followed by retailer’s influence, ready availability and convenience.
18. The demand for the selected instant food products in kolar district was estimated based on the calculated per capita consumption and users population in their respective areas and it was 78,922.46 kg/month (Dosa/Idli mix), 2,14,145.8 kg/month (pickles) and 1,85,153.2 kg/month (sambar masala).
POLICY IMPLICATIONS
1. Most of the respondents in the study area are not purchasing the Dosa/ Idli mix, Pickles and Sambar masala even though they are readily available in the market, instead like to prepare their own. Hence, importance and awareness towards these products should be created through various media or literatures especially in rural areas.
2. The study revealed that in majority of the households women made the buying decisions of instant food products. Sales promotion should target this group.
3. High price was an important reason for non-consumption of Dosa/Idli mix by significant proportion of households. Thus, efforts may be made to reduce the price of this product so as to increase its sale.
4. The retailers influence plays very important role in the purchasing of instant food products and retail shops are the important source for purchase of these products by consumers, retailers should be given training and incentives to promote sales.
5. There is a general perception among the consumers that Instant Food Products are expensive than home made products, efforts must be made to overcome this perception by propaganda and publicity.
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APPENDIX I
LIST OF TALUKS AND HOBLIES SELECTED UNDER STUDY
Sl.No.
Taluks
Hoblies
a
Bethamangala
1 Bangarpet b
Budikote
a
Avani
2 Mulbagal b
Byrakur
a
Somenahalli
3 Gudibande b
Kasaba
APPENDIX II
INTERVIEW SCHEDULE
“A STUDY ON BUYING BEHAVIOUR OF CONSUMERS TOWARDS INSTANT FOOD PRODUCTS” IN KOLAR DISTRICT
(SCHEDULE FOR INDIVIDUAL CONSUMER FAMILIES) THE DATA WILL BE USED FOR RESEARCH PURPOSE ONLY
I. GENERAL CHARACTERISTICS:
1. Name of the respondent : 2. Age : 3. Education : Illiterate/Primary/High/SSLC/PUC/Graduation 4. Occupation : 5. Taluk : 6. Hobli : 7. Income (monthly) Rs : 8. Type of family : Joint/Nuclear
9. Food Habit : Vegetarians/ Non- vegetarians
10. Family particulars
Family members
Number
Adult males Adult females Children
Total
II. MONTHLY EXPENDITURE
Items
Expenditure (amount in Rs)
1. Food
I. Instant food products
ii .Other foods
2. Non-food
III. MONTHLY CONSUMPTION PATTERN OF INSTANT FOOD PRODUCTS
Quantity purchased per month
Product Brand/
Own prepared Quantity
Price/
unit Rs Total
Amount (Rs)
Purchased From
Dosa mix/ Idli mix
a) b) c) d)
Pickles
a) b) c) d)
Sambar mix
a) b) c) d)
a) Who makes buying decisions? Age: Education: Occupation:
IV. AWARENESS OF CONSUMERS ABOUT IFPS a) Are you aware of IFPs? Yes / no If aware, mention some brands a) e) b) f)
c) g) d) h)
b) Are you aware of a) Dosa mix/Idli mix Yes / No b) Pickles Yes / No c) Sambar mix Yes / No Among these products, mention the brands you know
Products
Brands
a) Dosa mix/Idli mix b) Pickles c) Sambar mix
V. REASONS FOR NOT PURCHASING INSTANT FOOD PRODUCTS Sl.No.
Reasons
Dosa/Idli mix
Pickles
Sambar
mix
1
Low cost of preparation
2 Differences in tastes (between home prepared and purchased)
3 Dislike on purchased product
4 High price of market product
5 Lack of Awareness of products availability in the market
6 Non-availability of Instant food Products
VI. REASONS FOR CONSUMING INSTANT FOOD PRODUCTS
Reasons Dosa/Idli mix Pickles Sambar mix
1. Traditional Usage
2. Liked by the Family
3. Adds taste to food while eating
4. Readily Available
5. Save time of preparation
6. Products easily available for preparation
7. Influence of friends or relatives
8. Nutritive value
9. Any other i. ii. iii.
VII. PRODUCTS PURCHASE FREQUENCY
Frequency Dosa/Idli mix Pickles Sambar mix
Weekly once
Fortnightly
Monthly once
Two months once
Three months once
Occasionally
VIII. SOURCES OF INFORMATION
Products SOURCES
Dosa /Idli mix Pickles Sambar mix
1. Retail Shop display
2. Newspaper or magazine
3. TV/ Radio Advertisements
4. Friends/ relatives
5. Any other
IX. BRAND LOYALTY
Sl. No
Statements
Definitely Probably Definitely not
1 2 3
4
Confirm to use the brand Recommend the brand to others Purchase the brand even if price increases Purchase the same brand even in case of absence of sales promotion
The present study made an attempt to analyze the existing buying behaviour of Instant Food Products by individual households and to predict the demand for Instant Food Products in Kolar district.
All the respondents were aware of pickles and Sambar masala but only 56.67 per cent of respondents were aware of Dosa/Idli mix. MTR brand of Dosa/Idli mix, Chinnis and MN brands of pickles and Everest and MTR brands of Sambar masala were aware among the users of Instant Food Products.
About 96.11 per cent consumers of Dosa/Idli mix and more than half of consumers of pickles and Sambar masala prepared their own. Low cost of home preparation and differences in tastes were the major reasons for non consumption, whereas ready availability and save time of preparation were the reasons for consuming Instant Food Products. Retail shops are the major source of information and source of purchase of Instant Food Products.
The average monthly expenditure on Instant Food Products was found to be highest in higher income groups. The average per capita purchase and per capita expenditure on Instant food Products had a positive relationship with income of households.
Housewives were the major decision makers on consumption of Instant Food Products. Most of the Dosa/Idli mix consumers found to be medium loyal and majority o pickles and Sambar masala consumers belonged to higher loyalty group.
High price and poor taste were the reasons for not purchasing particular brand whereas best quality, retailers influence and ready availability were considered for preferring particular brand of products by the consumers.
Among branded products, MTR brand of Dosa/Idli mix, Chinnis and MN brands of pickles and Everest and MTR brands of Sambar masala were highly preferred by the consumers.
