STUDY ON CONSUMER PREFERENCE OF CONFECTIONERY GOODS AT DUTY FREE SHOP

COCHIN INTERNATIONAL AIRPORT LIMITED, NEDUMBASSERY

Submitted to University of Kerala in partial fulfillment of the requirements for the award of degree of Masters of Business Administration

By SAREENA IKBAL Reg No: 586

Under the guidance of Dr. VINITH KUMAR NAIR Assistant Professor-Marketing

T.K.M. INSTITUTE OF MANAGEMENT, KOLLAM Musaliar Hills, Karuvelil P.O., Kollam-691505

2008-2010

DECLARATION
I do hereby declare that the project entitled ―Study on consumer preference of confectionery goods at Duty Free Shop‖, in Cochin International Airport Limited , Nedumbassery is a bona fide work done by me under the supervision of Dr. Vinith Kumar Nair, Assistant Professor, T.K.M institute of Management Kollam and submitted to Kerala University in partial fulfillment of the requirements for the award of Masters Degree in Business Administration.

Place: Date:

Sareena Ikbal

ACKNOWLEDGEMENT
First and fore most I thank GOD almighty for his blessings for the successful completion of this work. I take the opportunity to acknowledge my indebtedness to all the persons who have helped me in successful completion of my work.

I expressed my sincere and heartfelt thanks to Mr A.M.Shabeer Head- HR, Cochin International Airport limited (CIAL) for allowing me to do the project.

I wish to extend my deepest gratitude to my project guide Mr. Jacob T. Abraham, ManagerRetail CIAL, whose dedicated encouragement and whole hearted co-operation have helped me to complete this project and also Mr.Sreejith T.K, Sales Manager-Retail CIAL, for the sincere co-operation and encouragement during all stages of the project work.

I take this privilege to express my profuse thanks to our Director Dr .S Kevin for permitting me to undergo this project work.

It is my privilege to express my sincere thanks to Dr. Vinith Kumar Nair, Assistant Professor for the necessary guidance in conducting this study.

Finally I wish to thank my friends and parents and express my sincere gratitude to them for their support the eternal love, guidance, protection and blessings those have showered upon throughout the endeavour.

2 Conclusion 96 97 BIBLIOGRAPHY APPENDIX 98 101 .1 Suggestions 6.1 Background of the study 2.2 Literature review 18 23 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Objectives of the study 3.CONTENTS EXECUTIVE SUMMARY CHAPTER 1: INDUSTRY AND COMPANY PROFILE 1.4 Limitation of the study 31 31 31 35 CHAPTER 4: DATA ANALYSIS 4.1 Overview of Response 4.1 Findings 92 CHAPTER 6 6.1 Industry profile 1.2 In-Depth Analysis 36 51 CHAPTER 5 5.2 Scope of the study 3.3 Methodology 3.2 Company profile 2 10 1 CHAPTER 2: LITERATURE REVIEW 2.

1.2.14 Satisfaction of Services Table 4.2 Chi-square test for perfume and age Table 4.2 Chi-square test for liquor and age Table 4.1 Cross tabulation for tobacco by gender Table 4.2.5.1.1 Cross tabulation for perfume by age Table 4.1.2.2.3.6 Products preferred from Cochin duty free shop Table 4.1.1 Gender Table 4.2.2.9 Factors influencing purchase of confectionery at Cochin Duty Free 36 37 38 39 40 41 42 43 44 Table 4.1.1.1.2 Chi-square test for electronics and gender Table 4.1.2 Age Table 4.2.2 Chi-square test for tobacco and gender Table 4.2.2 Cross tabulation for perfume by gender Table 4.1.1.1.4.3.2.5 Frequency of visit to Cochin Duty Free Shop Table 4.1.2.7 Average amount spent on products preferred Table 4.2.1.2.2.1 Cross tabulation for supermarkets by age 48 49 50 51 52 52 53 53 54 54 55 55 56 57 57 58 58 59 .2.13 Promotional preference of customers Table 4.1.2.2.2.2 Chi-square test for perfume and gender Table 4.4 Frequency of visit to Cochin Table 4.1.1.3.1.8 Reasons for purchasing confectionery products Table 4.1.1.10 Type of confectionery preferred 45 Table 4.3 Occupation Table 4.2.2.15 Total Score on preference by customers to receive information Table 4.11 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop 46 Table 4.1.LIST OF TABLES Table 4.5.4.2.1 Cross tabulation for liquor by age Table 4.1.2.12 Ranking of the confectionary brands by the passengers 47 Table 4.1 Cross tabulation for liquor by gender Table 4.2.2.2 Chi-square test for liquor and gender Table 4.1 Cross tabulation for tobacco by gender Table 4.2 Chi-square test for supermarket and gender Table 4.1 Cross tabulation for supermarkets by gender Table 4.

2.2.4.6.1 Cross tabulation for liquor by occupation Table 4.2.2 Chi-square test for amount spent on perfume and age Table 4.2.1.3.2.2.4.2.2.4.2.1 Cross tabulation for amount spent on supermarkets by gender Table 4.3.1 Cross tabulation for amount spent on perfume by gender Table 4.5.2 Chi-square test for amount spent on supermarket and gender Table 4.3.3.2 Chi-square test for amount spent on confectionery and gender Table 4.1 Cross tabulation for tobacco by age Table 4.4.2.5.2.2.2.3.2.3.1.5.5.2 Chi-square test for amount spent on perfume and gender Table 4.5.1.2.2 Chi-square test for liquor and occupation Table 4.2.1.4.5.5.2.5.2.5.2 Chi-square test for tobacco and age Table 4.4.4.4.4.4.4.4.4.1 Cross tabulation for amount spent on tobacco by gender Table 4.2.2.1.3.2.1 Cross tabulation for amount spent on supermarkets by age Table 4.Table 4.2 Chi-square test for electronics and occupation Table 4.1 Cross tabulation for tobacco by gender Table 4.2.3.4.4.2.5.2.2.2.2 Chi-square test for electronics and age Table 4.2.2 Chi-square test for amount spent on liquor and gender Table 4.1 Cross tabulation for amount spent on liquor by gender Table 4.2.2.5.2.2 Chi-square test for amount spent on supermarket and age 59 60 60 61 61 62 63 63 64 64 65 66 66 67 68 69 69 70 70 71 71 72 72 73 73 74 75 76 76 77 77 78 78 79 .3.2 Cross tabulation for amount spent on liquor by age Table 4.2.5.3.2.4.1 Cross tabulation for amount spent on confectionery by gender Table 4.2.2 Chi-square test for supermarket and age Table 4.2.2 Chi-square test for amount spent on confectionery and age Table 4.2.4.6 Cross tabulation for amount spent on electronics by gender Table 4.6.3.2 Chi-square test for amount spent on electronics and gender Table 4.3.5.2 Chi-square test for perfume and occupation Table 4.3.2 Chi-square test for tobacco and occupation Table 4.3.2.1 Cross tabulation for amount spent on confectionery by age Table 4.2.1.2.2.2 Chi-square test for amount spent on tobacco and gender Table 4.2.2.1 Cross tabulation for perfume by occupation Table 4.3.1.2 Chi-square test for supermarket and occupation Table 4.1Cross tabulation for electronics by occupation Table 4.4.2.1 Cross tabulation for amount spent on perfume by age Table 4.2 Chi-square test for amount spent on liquor and age Table 4.2.1 Cross tabulation for supermarkets by occupation Table 4.4.2.

5.1 Cross tabulation for amount spent on confectionery by occupation Table 4.1.2 Chi-square test for amount spent on supermarkets and occupation Table 4.5.2 Chi-square test for amount spent on tobacco and age Table 4.2.6.2.5.6.9 Weighted average of satisfaction level 79 80 80 81 82 83 83 84 84 85 85 86 86 87 87 88 88 89 90 .4.6.6.1.5.Table 4.3.6.1 Cross tabulation for amount spent on electronics by age Table 4.2.7 Weighted average of factors Table 4.6.1 Cross tabulation for amount spent on perfumes by occupation Table 4.6.6.6.2.2.5.2 Chi-square test for amount spent on electronics and age Table 4.2 Chi-square test for amount spent on tobacco and occupation Table 4.6.6.2 Chi-square test for amount spent on perfumes and occupation Table 4.6.2.5.2 Chi-square test for amount spent on confectionery and occupation Table 4.4.2.5.3.5.2.1 Cross tabulation for amount spent on tobacco by occupation Table 4.2.2.2 Chi-square test for amount spent on liquor and occupation Table 4.6.2.2.2.2.2.2 Chi-square test for amount spent on electronics and occupation Table 4.6.2.8 Weighted Average of promotional preferences of customers Table 4.2.1 Cross tabulation for amount spent on electronics by occupation Table 4.1 Cross tabulation for amount spent on liquor by occupation Table 4.2.1 Cross tabulation for amount spent on tobacco by age Table 4.6.2.1 Cross tabulation for amount spent on supermarkets by age occupation Table 4.2.2.6.

1 Weighted average of factors Fig 4.3 Weighted average of satisfaction level 48 49 50 89 90 91 .1.1.1.13 Preference of receiving information Fig 4.2.9 Types of confectionery preferred 36 37 38 39 40 41 43 44 45 Fig 4.12 Satisfaction of Services Fig 4.5 Frequency of visit to Cochin Duty Free Shop Fig 4.2.6 Products preferred from Cochin Duty Free Shop Fig 4.1.1.8 Factors influencing purchase of confectionery at Cochin Duty Free Fig 4.1.2 Weighted average of Promotional preference of customers Fig 4.1.1.3 occupation Fig 4.2.1 Gender Fig 4.1.11 Promotional preference of customers Fig 4.10 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop 46 Fig 4.4 Frequency of visit to Cochin Fig 4.2 Age Fig 4.1.1.LIST OF FIGURES Fig 4.1.1.7 Reasons for purchasing confectionery goods Fig 4.

promotion through ads that can be only find while travelling etc. Questionnaire is used to collect data from passengers visiting the Duty Free at the arrival terminal. strong consumer culture and rising number of people flying –both domestically and internationally will drive growth. India's emerging middle class. The study results show that consumers are mainly influenced by the price of the confectionery goods. The Study on consumer preference of confectionery goods at Cochin Duty Free Shop was done for Cochin Duty Free Shop at Cochin International Airport Limited. It also shows the buying pattern of customers. Cochin International Airport Limited (CIAL) has been a pioneer in India in the field of airport privatization. The study can suggest measures to influence the buying behavior of the passengers like licensing agreement with the suppliers to develop products exclusive for traveling customers. . The Cochin Duty Free of the CIAL showcases an exclusive line of brand name merchandise in addition to the top names in specialty and gift items.EXECUTIVE SUMMARY India offers phenomenal opportunities for air retailers. The customers buy products for gifting friends and prefer candies to chocolate bars and gift packs. They also prefer discounts and value adding promotions on confectionery goods. It is fast becoming a key market in global airport retailing with investment from international airport operators. The methodology included collection of primary data and secondary data. The broad objective was to understand the consumer preference in purchasing confectionery goods at Cochin Duty Free Shop.

CHAPTER 1 INDUSTRY AND COMPANY PROFILE .

more than three times that of Memphis International Airport. and emergency services. although it serves only general aviation traffic. a planned residential. currently the world's busiest passenger airport. and often includes buildings such as control towers. airfield. a helipad. air traffic control. airdrome. including manufacturing and assembly. Dubai.1Industry profile Wright Brothers successfully laid down the beginning of modern a travel. It will be the main part of Dubai World Central. An airport consists of at least one surface such as a runway for a plane to take off and land. A military airport is known as an airbase or air station. and airstrip may also be used to refer to airports. and blimps takeoff and land. Aircraft may be stored or maintained at an airport. The terms aerodrome. with most transport modes. United Arab Emirates. commercial and logistics complex scheme. hangars and terminal buildings. helicopters. or water for takeoffs and landings. US. today's largest cargo hub. Al Maktoum International Airport is a major new airport currently under construction in Jebel Ali. Larger airports may have fixed base operator services. logistics and value added services. seaplane docks and ramps. . since then aviation has undergone various changes. The title of "world's oldest airport" is given to College Park Airport in Maryland. World Central is the world's first truly integrated logistics platform. is generally agreed to be the world's oldest continually operating airfield.1. in a single bonded and Free Zone environment When completed as planned. passenger facilities such as restaurants and lounges. established in 1909 by Wilbur Wright. and a passenger capacity between 120 million and 150 million per year more than HartsfieldJackson Atlanta International Airport (90 million in 2008). the airport will have an annual cargo capacity of 12 million tons. An airport is a location where aircraft such as fixed-wing aircraft.

In 1932. the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. In April 1990. Ambica Airways.operators to operate flights from any airport. Earlier air travel was a privilege only a few could afford. United States 3. . Tokyo International Airport – Japan 5. a part of the ministry of the civil aviation and tourism. 1948 on the Mumbai-London air route.1. when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. Indian National Airways. aviation industry in India has undergone a rapid transformation. the first Indian airline. Beijing Capital International Airport – China In India civil aviation is under the preview of Department of Civil Aviation. Deccan Airways. The inaugural flight of Air India International Ltd took off on June 8. both on a charter and a non charter basis and to decide their own flight schedules.1 Civil Aviation in India Aviation Industry in India is one of the fastest growing aviation industries in the world. In early 1948. United States 2. London Heathrow Airport – United Kingdom 4. JRD Tata founded Tata Airline. 1953. These governmentowned airlines dominated Indian aviation industry till the mid-1990s. nine air transport companies were carrying both air cargo and passengers. The origin of Indian civil aviation industry can be traced back to 1912. Air service of India. but today air travel has become much cheaper and can be afforded by a large number of people. The Government nationalized nine airline companies vide the Air Corporations Act. From being primarily a government-owned industry. Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crores and a fleet of three Lockheed constellation aircraft.The world‘s five busiest airports are 1. With the liberalization of the Indian aviation sector. Bharat Airways. Private airlines account for around 75% share of the domestic aviation market. These were Tata Airlines. the Government adopted open-sky policy and allowed air taxi. 1. Hartsfield-Jackson Atlanta International Airport – Georgia. Illinois. Government of India established a joint sector company. O‘Hare International Airport – Chicago. It was an extension of London-Karachi flight of the Imperial Airways. Orient Airways and Mistry Airways. At the time of independence.

maintaining and managing civil aviation infrastructure both on the ground and airspace in the country. upgrading. Today. Karachi. which has one runway. It is occasionally used for shoots by the Mumbai film industry. However. Airports Authority of India (AAI) Airports Authority of India (AAI) was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India. which include 11 International Airport. The merger brought into existence a single Organization entrusted with the responsibility of creating. 08 Customs Airports. Indian aviation industry is dominated by private airlines and these include low cost carriers. part of the Tata Aviation Service. the Indian Government ended the monopoly of IA and AI in the air transport services. 1932. hosts a flying club and a heliport. the forerunner to Tata Airlines and Air India departed from the Drigh Road airstrip. . Today.09. AAI provides air navigation services over 2. When it first opened its gates in 1928. During the year 2008. is located just ahead of the Nanavati Hospital on one of suburban Mumbai's arterial roads. Juhu Aerodrome served as the city's sole airport for 26 years. The flight. AAI manages 125 airports. As part of its open sky policy in 1994.8 million square nautical miles of air space. now known as the Juhu aerodrome. 81 Domestic Airports and 28 Civil Enclaves at Defense airfields. The first civil flight that took off from this airport was fittingly piloted by J R D Tata the father of Indian civil aviation. it was known as the Vile Parle Flying Club. Private operators were allowed to provide air transport services. India's first civil aviation airport. who have made air travel affordable. on October 15. By 1995. After a stopover at Ahmedabad it landed at the Juhu Aerodrome to complete India's first civil flight. [International 270345 & Domestic 1036187]. several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. the aerodrome.cargo and passenger fares. AAI handled aircraft movement of 1306532 Nos. no foreign airline could directly or indirectly hold equity in a domestic airline company.

Provision of Communication. There was thus an urgent need to revamp the security at airports not only to thwart any misadventure but also to restore confidence of traveling public in the security of air travel as a whole.. A number of co-operation agreements and memoranda of co-operation have been signed with US Federal Aviation Administration. Security The continuing security environment has brought into focus the need for strengthening security of vital installations. AAI has been going ahead with its plans for transition to satellite based Communication. Passenger facilities The main functions of AAI inter-alia include construction. European Union. Navigation and Surveillance which includes provision of DVOR / DME. modification & management of passenger terminals. ATC radars. Air Services Australia and the French Government Co-operative Projects and Studies initiated to gain from their experience. Surveillance and Air Traffic Management. latest and state-of-the-art X-ray baggage inspection . passenger and cargo in the country. visual aids etc. 3. Air Navigation Services In tune with global approach to modernization of Air Navigation infrastructure for seamless navigation across state and regional boundaries.. With this in view. parallel taxiways. The functions of AAI are as follows: 1. modern practices & procedures being adopted to improve the overall performance of Airports and Air Navigation Services. provision of air traffic services. a number of steps were taken including deployment of CISF for airport security.Passengers handled 44262137 Nos. development & maintenance of apron infrastructure including runways. provision of passenger facilities and related amenities at its terminals thereby ensuring safe and secure operations of aircraft. development & management of cargo terminals. ILS. Navigation. apron etc. [International 1047614 & Domestic 33785990] and the cargo handled 499418 tones [International 318242 & Domestic 181176]. Through these activities more and more executives of AAI are being exposed to the latest technology. US Trade & Development Agency. 2. which was shaken after 9/11 tragedy. CCTV surveillance system at sensitive airports.

. Fire Training Centers at Delhi & Kolkata for in-house training of its engineers. Development and Technological enhancements and consequent refinement of operating standards and procedures. HRD Training A large pool of trained and highly skilled manpower is one of the major assets of Airports Authority of India. For this purpose AAI has a number of training establishments.systems. 6. 4. premier security & surveillance systems. the basic approach to planning of airport facilities has been adopted to create capacity ahead of demand in our efforts. Foreign students have also been participating in the training programme being conducted by these institutions. viz. Smart Cards for access control to vital installations at airports are also being considered to supplement the efforts of security personnel at sensitive airports. Air Traffic Controllers. Both CATC & NIAMAR have also contributed a number of STPs to the Central pool under ICAO TRAINER programme. Aerodrome Facilities In Airports Authority of India. IT Implementation Information Technology holds the key to operational and managerial efficiency. NIAMAR in Delhi. taxi track and aprons at different airports has been taken up. 5. new standards of safety and security and improvements in management techniques call for continuing training to update the knowledge and skill of officers and staff. a number of projects for extension and strengthening of runway. Towards implementation of this strategy. NIAMAR & CATC are members of ICAO TRAINER programme under which they share Standard Training Packages (STP) from a central pool for imparting training on various subjects. CATC in Allahabad. AAI initiated a programme to indoctrinate IT culture among its employees and this is most powerful tool to enhance efficiency in the organization. Extension of runway to 7500 ft. has been taken up to support operation for Airbus-320/Boeing 737-800 category of aircrafts at all airports. transparency and employee productivity. Rescue & Fire Fighting personnel etc.

Mumbai. 2. The remaining are lying unutilized at best handling occasional aircraft operations.83 million international passengers and 221 thousand metric tons of domestic cargo and 468 thousand metric tons of international cargo. Patna. Customs Airports with limited international operations: . Lucknow. Domestic Airports: a.20 lakh aircraft movements involving 24. These include Bangalore (CE). Ahmedabad.These domestic airports have minimum runway length of 7500 feet and adequate terminal capacity (400 passengers or more) to handle Airbus 320 type of aircraft. The turnover of the Authority was Rs. 2. Tiruchirapally. Classification of Airports Presently the airports are classified as: 1.27 crores for the year ended March. the AAI owns and manages 5 international airports. Coimbatore.196. 1998.41 crores as against Rs. 51 percent of traffic was handled at the international airports at Mumbai and Delhi. In 1998-99. 3. Calicut.208.1591.17 million domestic and 12. Chennai. International Airports These are declared as international airports and are available for scheduled international operations by Indian and foreign carriers. Presently. Agra (CE). Delhi.These have customs and immigration facilities for limited international operations by national carriers and for foreign tourist and cargo charter flights. There are 449 airports/airstrips in the country. Hyderabad. Goa (CE). Varanasi. 87 domestic airports and 28 civil enclaves at Defense airfields and provides air traffic services over the entire Indian airspace and adjoining oceanic areas. Amritsar. . Calcutta and Thiruvananthapuram are in this category. Model Airports:. 1999 and under audit figure of the Post Tax Profits for the year ended is Rs.14 crores for the year ended March. Among these.Existing position of AAI 1. Presently various airlines are operating only through 61 airports. these 120 airports/civil enclaves handled 4. Jaipur. b.

There are 28 civil enclaves in Defense airfields. of airports. c. There are three main potential economic gains obtained from privatization. These include Bhubaneswar. operational and handling activities were contemplated as being fundamental for the development of the airport business. However. d. Nagpur. airport assets and property have always been publicly managed and commercial activities have occasionally been contracted or outsourced to private companies. Civil Enclaves in Defense Airport: . Airports and airlines have historically been considered as essential components of the national aviation system. Nevertheless. 1. such as Asia). Additionally. the industry started to evolve with changes being brought about in the traditional airport management model. Vadodara.1. namely improvements in operating efficiency (the private for-profit business model more often leads to a further exploration for means to cut costs and boost revenues than public management). a majority of airports around the world have continued to operate under this model and some still remain attached to it. Since the 1980s. The traditional airport management model becomes visibly unsustainable when most governments begin to be concerned about the burden of airport financing and its lack of efficiency. major investment programs are required to meet the expected growth in air travel demand (particularly in some emerging regions. for many years.All other 71 domestic airports are covered in this category. Due to this approach. developed under Model Airports concept have graduated to the classification of Customs Airports. and hence both were regarded as public utilities. and commercial activities had a less important role to play.These can cater to limited international traffic also. For that reason. governments are progressively regarding airports as potential profit-making enterprises. given above. Other Domestic Airports: . governments and city airport authorities are becoming more reluctant to support airport projects. Twenty civil enclaves are in operation. Rest 6 Nos. economic regulation was seen as superfluous. . Within such a framework. Guwahati. if required.2 Privatization of Airports The airport industry is going through an exceptional transformation that has driven the market towards increasing levels of competition. since they have major budgetary constraints. Imphal and Indore. Currently.

The government is still in a learning mode as far as airport infrastructure provision is concerned. At present. The company also negotiated complex dealings for land requisition and building the airport. control and operation of the same are very unique.). mainly comprising of frequent NRI (Non Resident Indians) travelers from the Gulf. Cochin International Airport Limited (CIAL) in Kerala has been a pioneer in India in the field of airport privatization. Government then took the positive steps to open up existing airports to domestic and foreign private investors by passing enabling legislation. The phenomenal growth of cities like Bangalore and Hyderabad further accelerated the process. It has experimented with BOO in the past through the Cochin Airport and recently with 30 year concessions for Delhi and Mumbai Airports. for example Indian Oil. It will be interesting to see how the government balances the expectations of its coalition partners and at the same time ensure . Until 1997 there was a bar on privatization in Indian airport sector. The need for the airport was felt when the existing civil enclave at Cochin was inadequate to handle the growing traffic. Public Private Partnership was identified as a preferred route to infrastructure provision. Even though CIAL has been commissioned on a BOO basis. Greenfield airports at these cities are being built through this route.the introduction of new management styles and marketing skills directed to serve users with a more consumer-oriented approach. CIAL merits special attention as the financing. Hence. By the year government realized the importance of combining public and private resources to meet the costs involved in developing India‘s airports to keep pace with the growth in air traffic. As the government recognized the need to bring airport infrastructure to world class levels and also its inability to bring in the required capital. This led to the formation of a private company that took the initiative to raise the requisite money from a number of NRI shareholders and a number of private companies (in exchange for exclusive rights to provide services at the airport. and better investment decisions. The control lies jointly with the private sector and the government. The RNFC (Route Navigation and Facilitation Charges) accrue to AAI as it manages Air Traffic Control. it is the only private sector airport in the country. AAI still manages Air Traffic Control at the Airport and RNFC accrues to AAI. The government did not have enough funds for the same.

Financial Institutions. The future growth and performance of airports will depend to a large extent on the political will and the ability of the government to garner support for the ongoing initiative. is thus 26%. Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act.2 Company Profile Cochin International Airport Limited (CIAL) 1.1 About CIAL Cochin International Airport. Its location near tourist areas and the availability of undeveloped land near the location provides opportunity for growth in the region. comfort and quality service to ensure passenger‘s travel experience is pleasant and on par with International standards. 1.200 ft) long runway. the first of its kind in the history of civil aviation in India.efficient and world class airports for its populace. With equity participation from the Government of Kerala.2. and amenities such as pre-paid taxis are readily available. the airport is equipped to operate any type of aircraft currently in commercial service. There are 464 services in the domestic sector and 314 services in the . This has helped to make it the busiest airport in Kerala. The total governmental stake (central & state). It is the fourth busiest airport in India in terms of international traffic and is the busiest airport in Kerala in terms of domestic and international traffic. The airport is the primary base for Air India Express operations. The good news is that the government realizes the opportunity and is prepared for taking decisive decisions for the same. offers convenience. At present. wholly managed and operated by Cochin International Airport Limited (CIAL). Airport Service Providers and the Public. Cochin International Airport is located about 30 km (19 mi) from the central city area of Kochi. 1956 on 30 March 1994. With a 3. the Cochin International Airport Limited (CIAL) has come to be a model enterprise with the first International Airport in India outside the ambit of the Government of India. NRIs. it is the fourth busiest Indian airport in international traffic.400 m (11. Industrialists. This is the first international airport in India to be built with only a minority (13%) Central Government stake in a publicprivate partnership (PPP) project.

Commenced operations in 1999. The runways are spread over the panchayats.8 km2) of prime land at its disposal for commercial deployment.11. where Airport users (mainly NRI investors) joined hands with the Government of Kerala and the airport service providers to build an International Airport. Present employee strength of CIAL is around 500. hotel chains.000 individual investors from 30 countries. . Highlights  First-of-its-kind airport developed under the PPP model. malls. Airport fees for international passengers have been waived and customs processing time is relatively quick.    Wide Investor base . The ground control is handled by Air India & WFS and the fuel supply to the airport is by the Bharat Petroleum. industrial and IT parks and logistics centre) has been developed by CIAL to generate revenues.800 acres utilized for Airport Facilities and 500 acres is planned for Aviation and City Infrastructure.200 ft).  Spread over 1300 acres . business centre. A 35-billion-rupee master plan (involving construction of an 18-hole golf course. Sreemoolanagaram and Kanjoor. Both hold interest-free security deposits in CIAL. It has a full length parallel taxiway of 3.400 m (11. of Nedumbasserry. The airport company holds 440 acres (1. The airport has a domestic terminal and an international terminal. The location has been commended for its style and clean image. Supplemental revenue is generated from leasing advertisement space within the terminals. or local administration areas.international sector in Kochi per week.

trade and commerce. J.303 Crores under the leadership of Mr. At a meeting convened by representatives of the Government of Kerala. IAS. The Airport was formally inaugurated by the Hon'ble President of India on 25 May 1999 and the first Inaugural flight of Air India took off on 10 June 1999. Railways.000 shareholders from 29 countries ready to invest in this project to overcome the operational shortcomings of the existing Naval Airport. tourists. Kurian. The airport is spread over an area of 1200 acres. Cochin International Airport began to take shape. The International Airport at Nedumbassery. Navy.3 Future Plans The main aim of Cochin International Airport Limited (CIAL) is to position itself as a pioneer in Aviation Infrastructure and generate sustainable & profitable revenue streams by establishing a strategic hub in Southern India . in October 1991. The airport site proposed by State Government officials was inspected and found suitable by the Airport Authority of India.2. and to open up to the growing needs of NRI travellers.1.2 History The Cochin International Airport has been envisaged as a State Government sponsored project with public participation mostly from Non Resident Indians (NRI's). V. Cochin Port Trust etc. The Air India Jumbo Jet Boeing 747 touched down for the first time in Kerala on 21 June 1999. With over 10. GCDA.2. The Ministry of Civil Aviation accorded its clearance to the proposal for developing the International Airport put up by the Government of Kerala in March 1993. 1. it was decided to pursue the project for construction of the new Airport near Cochin instead of expansion of the existing Naval Airport. A world-class airport came into being. The Domestic Operation from the Naval Airport was shifted to Cochin International Airport on 01 July 1999. 25 kms North East of Cochin. is flanked by National Highway 47 and the main Railway line on its left and MC Road to Trivandrum on its right. The project was completed at a cost of Rs. National Airport Authority.

 Well networked with Hub Airport through Mumbai to provide connectivity to Europe and Americas.  Focus on land development to enhance city side infrastructure and to generate nonaero revenues.4 Facilities 1. Biotechnology.2. Colombo to Far East. Passenger terminals .  Already initiated efforts to enhance connectivity through Chennai. Integrated Logistics Centre Educational Institutions Specialty Hospital Entertainment & Cultural Activities:  Multiplexes  Hyper Malls/Shopping Mall/Retail  Food Court  Family entertainment centre and amusement parks  Trade and Cultural village 1. Strategic airport in Southern India providing international connectivity to the Middle East.  Focus on development of aviation infrastructure including Aircraft Maintenance Centre & Training Academy and Airlines. Proposed Land Use Plan Aviation Activities:          Aviation Maintenance Centre Aviation Training Academy Leisure Activities: Hotel (5 Star & 3 Star Categories Convention Centre & Exhibition Centre Golf Course Business Activities: Industrial Park catering to IT. Gem and Jewellery. ITES. and other knowledge based & specialized industries.

10 security gates and 5 customs counters. It also has 5 security gates and a large waiting lounge that can accommodate 400 passengers at a time. There are two premium lounges for first and business class passengers. Both departure and arrival blocks are interconnected through a corridor inside. There are 30 computerized CUTE enabled check-in counters including 5 premium check-in.00. Domestic Terminal. Fire Detection and Control System. CUTE System for check in. 4.000 sq. India‘s largest duty free shop (Cochin Duty Free) of 14. The arrival hall also has various car-rental counters. bank and money changer counters located near the exit. 8 red channels and 2 green channels of customs.ft. hotel reception offices. The departure hall has 20 checkin counters including 5 premium check-in counters. Integrated Flight Information Display System (FIDS) and Public Address System. International Terminal. banks counters.000 sq ft. The Domestic terminal consists of 100.78. medical facilities and offices of various airlines. Non-passengers can enter into terminal on purchase of guest ticket. Some of the unique features at the Cochin Airport are:          1.The Cochin International Airport has world-class passenger terminals providing travelfriendly facilities and services to cater to the needs of travellers from world-over. The departure hall has several money changers.ft. Security control system with state-of-the-art closed circuit camera system.000 sq ft divided into departure and arrival blocks. It also has 30 passport control counters. The waiting lounge is located in second floor which is very spacious and large enough to accommodate 1500 passengers at any point of time. Dynamically configurable and fully computerized check-in counter displays. The international terminal consists of 478.000 sq ft divided into two blocks. one for arrival and one for departure. The arrival hall is equipped with 23 passport control counters and 4 large baggage carousels. Fully computerized prepaid taxi and entry ticketing counters.000 sq. Both departure and arrival halls are designed to accommodate 1200 people at any given time. Non passengers can enter into the terminal on payment of Rs 50 for guest tickets. There is also a premium . This enables non passengers to accompany passengers upto X-ray screening. There are 7 gates with 5 aero-bridges.

2. A food court is under construction in international terminal. chocolates. perfumes. 1. . books and electronics.000 sq ft spread over two floors with large collections of leading liquor brands. The arrival hall has large duty-free shopping area of 13. ethnic handicrafts. several small cafes and sandwich counters operate in both domestic and international terminal. Shopping In pursuit of earning more non-aeronautical revenue. mobile kiosks and a pre-paid taxi counter. car-rentals.5 Cochin Duty Free The Cochin Duty Free showcases an exclusive line of brand name merchandise in addition to the top names in specialty and gift items. perfumes. A large child care room is available in the international terminal. 4. currently functions helping passengers to buy selected liquor. The airport has 7 retiring rooms for transit and early passengers in international terminal which can be booked at terminal manager's office on first-come-first-serve basis. though a last-minute shopping counter of 2000 sq ft. gold. A large cafe operates in waiting lounge of domestic terminal. The arrival hall has 2 baggage carousel along counters of several tourist operators. spices etc. watches. Other facilities Both the terminals are Wi-Fi enabled giving passengers access to complimentary internet. Large plasma televisions have been installed in all waiting lounges for entertainment. CIAL has set up more shopping facilities.2. The departure block duty free is under construction. Complimentary public telephones for local calls and postal counters are also available. The Duty-free in International terminal is the first full-scale duty free shops in India and one of the largest. chocolate.lounge available for business class passengers. handicrafts. Food There is a large multi-cuisine restaurant operated by Saj inside departure hall of International terminal. Apart from this. 3. The waiting lounge has a family room. hotel reception counters. apart from a business center operating in the departure hall of the international terminal.

Givenchy.900 square foot Arrival shop 5000 square foot Departure shop. William Grants. but can shop everything on arrival. You no longer need to carry the burden of heavy luggage. Chivas Regal. Seiko. chocolate bars and candies. State Express and Dunhill . Smirnoff Vodka. . We also have a beautiful 2000 square foot Departure Shop. which will offer an exciting experience for international travellers. Cadbury's and Ferrero Rocher. spirits. which displays an array of unique traditional collections of Kerala. Remy Martin. Civic. There is a fabulous collection of watch brands like Alba. Passengers can also enjoy savings on Tobacco. 13.The pride of the shops is the 13000 square foot Arrival Shop. Christian Dior. Chill out the best brands of liquor that include Johnnie Walker. claim huge savings on wine. Lancome. Mars. which will offer an exciting experience for international travelers. This is a spacious store to ensure leisure shopping experience. and beer. Armani. Kitkat. YSL and Paco Rabanne. Bacardi Rum. Alpha to manage duty free operations Heavenly shopping experience at down to earth prices. Find your favorite scent in Cochin Duty Free's vast selection of fragrances and cosmetics such as Elizabeth Arden. Heineken Lager and many more at coolest prices. Westar etc. confectionery and gourmet items Toblerone. L'Oreal. At Cochin Duty Free. The confectioneries are available in box chocolates.( Lowest prices in the region) Two beautiful shops with cool ambience and cheerful customer friendly services. Kolber.with unique traditional collections of Kerala. Cochin Duty Free carry the best cigarette brands like Benson & Hedges. Estee Lauder. Marlboro. which has a cool ambiance and cheerful customer friendly services. Cochin Duty Free Highlights       World Class Duty Free Shopping Facilities CIAL partnered M/s. chocolate nuts. Also don't miss the wide array of delicious. gift packs.

Product categories available It offers an exclusive line of branded merchandise in 9 product categories          Confectionery Liquor Perfumes and cosmetics Souvenirs Supermarket Tobacco Toys Gold Electronics .  The other shop is located in the Departure Area of the International Terminal. This is for the Arriving Passengers from other destinations.Location There are two Duty Free Shops at Cochin International Airport.  The biggest shop (13.000 sqft) is located in the Arrival Section of the International Terminal. This shop is meant for the passengers flying from Cochin.

CHAPTER 2 LITERATURE REVIEW .

Blackwell (2001) defines consumer behavior as the activities people undertake when consuming. services. consumer behavior‘s analysis views the consumer as another variable in the marketing sequence. and dispose of goods. ideas. advertising expenditure is frequently compared with sales. perceptions.e. The consumer is assumed to be "rational" that is. a variable that cannot be controlled and that will interpret the product or service not only in terms of the physical characteristics. it is often apparent that consumer behaviors do not fall neatly into these expected patterns. social and psychological aspects which can indicate the most favored marketing mix that management should select. and disposing of products and services. buy. groups and organizations select. Under the situations the importance of the consumer's motivations. by understanding that consumers are more receptive to food advertising when they are hungry. net profit before tax. use. Management ratios. to react in the direction that would be suggested by economic theory and financial principles. similarly. Proctor et al. attitudes and beliefs are largely ignored. especially the economic. or experiences to satisfy their needs and wants. However. Consumer behavior analysis helps to determine the direction that consumer behavior is likely to make and to give preferred trends in product development. For example.2. It tries to determine the factors that influence consumer behavior. we learn to schedule snack advertisements . On other occasions financial accounting principles maybe applied to analyze profit and losses. liquidity and solvency ratios can all be investigated. Economic theory has sought to establish relationships between selling prices. It is for this reason that consumer behavior analysis is conducted as yet another tool to assess the complexities of marketing operations. There are several activities included in this definition of consumer behavior. (1982) noted that the principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. attributes of the alternative communication method etc. There are four main applications of consumer behavior:  The most obvious is for marketing strategy—i. but in the context of this image according to the social and psychological makeup of that individual consumer (or group of consumers). sales achieved and consumer‘s income. for making better marketing campaigns.1 Background of the study Consumer Behaviors and Preference Leon G Schiffman and Leslie lazar Kanuk(2009)Consumer behavior is the study of how individuals..

Dr. Accutane. In practice. was introduced. In the 1980s. To get consumers‘ attention. The best solution. that we make a product aimed at older consumers. for example. studying consumer behavior should make us better consumers. As a result. Accutane resulted in severe birth defects if taken by pregnant women. you often pay a size premium by buying the larger quantity. Suppose. a marketing professor. A competing firm that targets babies. There are several units in the market that can be analyzed. in this case.  A second application is public policy. a number still became pregnant while taking the drug. however.  Social marketing involves getting ideas across to consumers rather than selling something. we learn that (1) Companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) It is important to please initial customers. however. that if you buy a 64 liquid ounce bottle of laundry detergent. a goal that was believed to be more realistic. to the rest of the population. would be if we could get illegal drug users to stop. Unfortunately. Our main thrust in this course is the consumer. This. obviously. for example.late in the afternoon. a . Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. since they will in turn influence many subsequent customers‘ brand choices. a near miracle cure for acne. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. was deemed to be infeasible. Common sense suggests. However. knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. Although physicians were instructed to warn their female patients of this. and then only gradually. By understanding that new products are usually initially adopted by a few consumers and only spread later. went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use.  As a final benefit. you should pay less per ounce than if you bought two 32 ounce bottles. Marty Fishbein. using knowledge of consumer attitudes. we will also need to analyze our own firm‘s strengths and weaknesses and those of competing firms. a growing segment. In other words.

buyer and consumer. which represents the set of intangible factors bringing the demanded perceived advantage to consumer . Solomon (2004) identifies another four different types of consumers' activities:     consumption as an experience (emotive or aesthetic reaction to product consumption) consumption as an instrument of integration (usage and consumption of the product integrates us somehow to the society) consumption as a classification scale (choice of products influences the way how we are perceived by our environment and how we are ranged in the society) consumption as a game. a recession may cut demand dramatically. we need to examine its assets (e. but that the today's role of product exceeds its service limits (Salomon 2004). connected with consumption. and also the term "consumer behavior" (Konsumentenverhalten).g. patents. technology. Kanuk 2004). Trommsdorff (2002) however warns of that there are no activities more important for the consumer behavior research. market knowledge. Even more often consumers do not rate products according to their cores (it means the main the main utility provided) but above all according to so-called real product (it means the particular products' qualities) and the extended product. According to him the term "consumer" (Konsument) is being used instead of a more accurate one "target customer". than the personal characteristics. Except the conventional conception of consumption being the only instrument of the basic needs' satisfaction. For example.image. awareness of its brands) against pressures it faces from the market. One of the present fundamental presumptions for the consumer behavior research is the fact. aftersale service and other (Foret.shrinking market. It does not mean that products' basic function is not important. although we may have developed a product that offers great appeal for consumers. is likely to consider repositioning toward our market. .. Consumer behavior research enables better understanding and forecasting not only of the subject of purchases but also of purchasing motives and purchasing frequency (Schiffman. we need to assess conditions (the marketing environment). that people often buy products not because of their main function but for their subjectively perceived value. Finally. consultancy. This conception causes problems afterwards because it must comprehend more personal roles decision maker. Prochazka 2007). To assess a competing firm‘s potential threat.

Sparke 2007) Psychological factors include motivation. personality and self consciousness can be found here (Horska. For example division into inner and outer factors (Koudelka 1997). Perception means the adaption of reality. in the hereafter text the attention is devoted only to them. distinguishing three basic categories: personal. The eventual changes of positions are conditioned by consumers' personality and his style of life. Consumers' skills and knowledge are connected to learning and predestinate changes of behavior. it means factors forming the environment of the concrete decision-making situation. there are referred the ones unique for each consumer. Learning process can come through a simple association between the impulse and the reaction to it. This makes a person unique. The process of selection. Personal characteristics influence the way how people behave. processing and interpretation of input data from the environment to make them purposeful (Brown 2006). there is one questionable thing that motives often work only on the subconscious level (Brown 2006). perception. difficult to find a reliable connection between the individual personality and the behavior type.There are a lot of factors influencing consumer by decision-making process. Motive means the inner driving force that orients human/consumers' activities towards meeting the needs or achievement of the definite aim. skills and knowledge. style of life (Brown 2006). not only one. to which Kotler (2001) adds the cultural factors as the independent category. eventually he modifies them to reach correspondence. . The literature classifies and structures these factors in various ways. Consumer generally refuses information that is in conflict with his positions. In case of need of measuring or analyzing. People learn their bearings through experience and interaction with other people. or through the complicated set of rational activities. positions. Because the subject of the analysed inquiry are factors belonging to groups of personal. Above all data like age. however. psychological and situation factors. Knowledge and positive or negative feelings influence humans' perception and consequently decision making and behavior. Personality is created by inner characteristics and by behavior. In every decision-making process several motives plays role. occupational and economic conditions. sex. It is. it is necessary to give the adequate information. personality. The next group of factors can be labelled as situational factors. place of domicile. Therefore to cause changes of consumer behavior concerning the concrete product. As a personal factors. psychological and social factors (Brown 2006).

because they are being kept at one's disposal.g. Nagyova 2001a). Sometimes purchasing public prefers a simple decision making process instead of the complex solution. Decisions are then made only on the basis of a few criteria. consumer e. Connecting heuristics includes setting of the minimal acceptable level for each attribute and the choice of first option that meets these minimal levels in all characteristics. Other options then already are not considered. however. The application of heuristics based on positions requires a fractional effort. except the above mentioned relation price quality. Instead of comparing more characteristics. Lexicography multilevel heuristics issues from a similar principle but at the juxtaposition. The influence over the approach to solving of the given situation and purchase decisions is excerted also by the variables like involvement and responsibility. 1992. Social environment. Selection based on stimulation means selection whereat we can directly compare products. which means that good attributes may compensate worse ones. the responsibility reflects need to explain or vindicate our decisions before other people. time influences and the previous states fall into this group. they derive benefits from the decision-making strategy based on the attributes of products or brands. Lexicography heuristics includes the selection of the best brand/product on the basis of its most important attribute. If consumers have not created an attitude towards certain products or brands and are not motivated or able to create their positions. Vysekalova 2004.Situational factors can notably influence purchase decision. They suppose that the product/brand associated with mostly favourable positions will be chosen. Involvement depends on personal significance or the importance given to the decision. physical environment of the purchase place. Consumers' decision includes the product (brand) selection from the set of possibilities. decides after price criteria (he comes out from the presumption that a higher price means also higher quality). Selection based on memory means selection whereat we do not have the possibility to directly compare products. It means that every attribute is compared separately and compromises among the single attributes stay out in consideration. These heuristic strategies are not compensatory because a high score of one attribute cannot compensate a low score on other characteristics. There is quite a number of other heuristics. it is taking score in the definite dull interval as a draw and survey on other characteristics. Strategies based on positions are called the compensatory strategies. Both these variables escalate . (Berkowitz et al.

clothing or grocery shopping and not to airport shopping or if they do relate to tourism and airports.1 Shopping motivations Airport shopping motivations Several authors believe that shopping is one of the most popular tourist activities because it satisfies part of people's need for leisure and tourism (Kent. Also retailers realized that waiting passengers could be a lucrative source of revenue and increased their involvement in airports in general and in departure lounges in particular (Rowley & Slack. 1989). and for them it is a minor. 1998. ''To be able to peruse. Because of this interrelationship between tourism and shopping.1.2 Literature Review 2. to feel and to think of the joys derived from purchasing certain merchandise is indeed pleasurable to millions of people. malls or at local markets (Hudman & Hawkins. it is unclear by which shopping motivations airport travellers are driven.motivation to make a good decision. 1999). Despite these changes dictated by commercial imperatives. the question arises how do travellers perceive this ''airport shopping mall''? More importantly. as well as what different types of shoppers can be distinguished among travellers at an airport. Shock. but either they pertain to home-. 2. 1989.2. Several authors even believe in the ''urge to shop'' as a motivator to travel (Heung & Qu. 1976). 2. 1983). 1976). Shopping is viewed as a form of recreation that provides enjoyment and relaxation (Bussey. & Snow. 1999). For many tourists no trip is complete without having spent time in shops. Therefore at the low level of involvement we use rather the easier selection heuristics. to examine. Sulzmaier. Lundberg. if not a major reason for travel'' (Lundberg. they only take the motivation for tourism and leisure activities into account.1. airport retailing and its customers remain an under researched and poorly illustrated area of study (Freathy & O'Connell. even if it requested bigger effort and more time. They believe that an airport can be a leisure attraction and primary destination in its own right (Freathy & O'Connell. For example. airport policymakers no longer consider the transportation of passengers between one destination and another as the solely purpose of an airport. 2001). . 1999). 1987. Keowin.2.Shopping Behavior at airport environment Shopping is considered to be one of the oldest and most important aspects of tourism.

1987. 1986). Wells. Timothy & Butler. Dholakia. Dholakia. 2002).Gratton & Taylor. The airport of Munich. especially holiday or leisure travellers (contrary to business travellers) are motivated for tourism and leisure because they spent most of their time in the terminal (Vester. Gehrt. 1999. 1985. 1998. Experiential/ hedonic motivations consist of the need for sensory stimulation. 1996. 1999). convenience. Functional motivations pertain to tangible aspects such as product assortment. 1995). Tosic. grocery and apparel situation. & Van Waterschoot. there is no reason to assume that these motivations would not be present in an airport environment. Bellenger & Korgaonkar. 2002). product quality. . (2) social motivations and (3) experiential or hedonic motivations. 2002). as well as on the product category sought for (groceries evoke less experiential and hedonic motivations than apparel) and the distribution format chosen (e..g. nature and large commercial cities have been taken over by new attractions such as leisure parks and large malls (Urry. 1999 Van Kenhove. 2001). interactions with salespeople. & Holikova. Eastlinck & Fein-berg. 1983. etc. General shopping motivations On the basis of an extensive review of general shopping literature Geuens et al.. Nowadays. 1998. The break from everyday routine can be reached by dramatizing the ordinary as shopping malls and themed environments. has attracted more tourists than Ludwig's castle Neuschwanstein and is Bavaria's tourist attraction number one (Sulzmaier. 1980. At an airport. 1972. Geuens et al. Rojek & Urry. (2002) conclude that in general three different types of shopping motivations can be distinguished: (1) functional motivations. for example. 1972. Aylott & Mitchell. 1995. etc (Tauber. Social motivations reflect the need to communicate with others sharing the same interests. Westbrook & Black. 1992. Reynolds & Beatty. online versus mall shopping) (Falk & Campbell.1999. Tourism and leisure activities are dictated by two motivational structures: (1) the wish to contrast dayto-day or ordinary life routines and (2) the wish to be out-of-place. Shim. 1999. time pressure). 1997. Dholakia. De Wulf. 1999.g. 1999. The importance of each motive depends on personal (e. Although these general motivations were mainly found in a traditional home-.g. tourist attractions of the past like historical sites. affiliating with peer groups. 1997).. 1983. Sheth. Geuens et al. price. some people are born to shop while others cannot appreciate it) and situational variables (e. Geuens et al. Dholakia. (Sheth. and new or enjoying experiences (Tauber.

which may evoke more different motivations than previously were found in an airport context. sales of the duty-free and retail shops and the usage of leisure facilities (Kim & Shin. an airport can trigger several functional motivations such as a good price. and quality shopping. etc. with a view to maximize the revenues some airports go even further. consumers have more faith in airport products than in products of local souvenir shops. leisure facilities and airport advertising or telephone services. 1999). Qualitatively seen. professional advice. interaction with salespeople. communicating with others sharing similar interests. provides a casino and imaginary golf facilities. The most common commercial outlets and activities found at the airport are convenience stores. food and beverage services. duty-free shops. cigarettes and electronics) due to the Travel Value system. while Changi airport (Singapore) possesses a karaoke. 2. It allows him or her to buy food or other travel goods at any time. A third factor is the large and various product assortments. airport consumers may be price driven. . grocery and apparel shopping as well as more specific travel-related motivations may be expected as well. However. the presence of shops at the airport is very convenient for the traveler. passenger service facilities. Next to the motivation to contrast day-to-day routine and the motivation to be out-of-place (which are inherently connected to travelling). For some people travelling causes feelings of insecurity. quality is usually assured. Secondly.g. Therefore. prices at airports are still cheaper than in regular shops (except for liquors. a swimming pool and bathing room in order to increase customer satisfaction. clothing and other types of shopping. more general motivations pertaining to home-.2. where grocery products as well as clothing. convinience.1. As most products are of well-known international brands. 2001). are sold next to several other types of products. A last determinant is the outstanding service delivered at airport shops: multilingual communication. First of all. 1. Despite the abolition of duty free and tax-free shopping for intra-European flights in 1999. affiliating with peer groups. Schiphol airport (The Netherlands) e. with both international brands and local specialties. Indeed. etc (Vlitos Rowe. product assortment. Therefore.2 Shopping in an airport environment Airport shopping can be considered as a specific type of in-store shopping.2. the airport mall is a specific combination of a wide variety of traditional as well as more exotic stimuli and situations. airport shopping can be seen as a mix of grocery. high speed service. Also social motivations can be expected to appear in an airport context: meeting other people. specialty stores.

Large international brands design new product lines exclusively for duty. in advanced consumer societies. The conclusions of a multitude of studies on atmospherics point unequivocally to the fact that the atmosphere is often more determining of the purchase decision than the product itself (a.o. Spies. Finally. 1995. 4. 1997. social and experiential motivations encountered in traditional in-store shopping situations. People engaging in those activities may come to the airport to become part of the cosmopolitan flair to be found there. Besides functional. 2001). 2001). 1992). Furthermore. Turley & Milliman. Another motivation is that travellers leaving a certain country are shopping in order to spend their remaining foreign currencies. Hesse. there are the motivations to contrast day-to-day routine and to be out-of place as was discussed earlier. these motivations are almost inherent to travelling and can be considered to be present the moment one starts travelling. However. which indicates the influence of the surrounding atmosphere and the environment. First. shopping and strolling around the airport can become a symbolic act. Brown. an important difference between a traditional and an airport environment is the waiting time. Several authors agree that the shopping and purchasing habits of a tourist often vary considerably from his/her normal pattern at home (Timothy & Butler. other more specific travelrelated motivations may be expected. hyper reality and hyper signification can become a more plausible version of reality as the disneyfication of urban and suburban shopping malls and town centers shows‘‘ (Sulzmaier. Moreover. it has been shown that the use of airport offerings is characterized by impulse purchases (Sulzmaier. the habit of buying souvenirs and presents motivates travellers to shop (Sulzmaier. a special design. Kotler. 1999). 2000). a ritual that gives expression to the consumers‘ self-presentation and ‗‗self-fashioning‘‘. 1999). reassuring and encouraging behavior from salespeople (Dube & Menon. additional promotional gadgets and small presents make airport shopping often more desirable and prestigious than shopping in the local souvenir shops. For example. Experiential motivations are mainly of significant importance if travellers are shopping in function of the surrounding atmosphere and the environment. 1973. . & Loesch. Nevertheless. Waiting travellers shop because they are bored and seek entertainment in shopping (Rowley & Slack. 2000).and tax-free wrapping. 2001). A unique duty. ‗‗Authenticity is not necessarily what they are looking for. airport shopping may elicit travel-related motivations.and tax-free shops in order to seduce travellers to buy an unique souvenir (Vlitos Rowe. 3. handy travel sets.fear or excitement. leading them to search for comforting.

Lamacraft (1998.Impulse purchase behavior in airport environment International airports are considered attractive and lucrative retailing centers due to the high guaranteed footfall. when asked to do so. Omar and Kent (2001) discuss how important the impulse factor is in airport. She refers to this period of high excitement as the 'happy hour'. the potential customers are in a unique frame of mind which has an extremely important effect on consumer purchasing behaviour. airports have a highly defined group of customers in a microenvironment which can be thoroughly researched. suggesting that shopping at the airport is all about manipulating this happy hour. The other is an increase in levels of anticipation and excitement. They state that understanding and manipulating this factor is vital to performance maximisation in the airport environment. Within airport retailing. One is an increase in stress levels because consumers are out of their daily routine. 1999). They discovered that consumers variously evaluated different impulse buying situations. shopping. Different retail strategies and approaches need to be made to maximise the potential market in the travel retail environment. age group and preference of potential customers throughout the day and throughout parts of the terminal — adapting the product lines accordingly and allowing marketing activities to be highly targeted (Newman and Lloyd Jones. They recommend that future research should examine more broadly store environments in which these constructs interact. 44) explains that 'after the pressure of getting to the airport on time most travellers find themselves in limbo. Thomas (1997) points to two emotional shifts that affect the buying habit. perhaps even notions of day or night. p. Specifically looking at passengers. stress levels lower but excitement remains high. but they do not know how often such behaviour occurs naturally. however. This is especially the case with passengers as they are forced to stay in the environment until their flight is called with little or no diversions except to shop. high sales per area and the fact that there is what is considered to be a 'captive' audience. Airport flight schedules enable retailers to forecast the nationality. Behavioral traits of consumers in an airport environment What is significant to retailers is the thought process that consumers go through before they decide on a certain product — including the points at which they are susceptible to marketing . When consumers are in an airport environment they do not act as they normally would. isolated from everyday references. She further reveals that when the passenger gets to the airport and on receipt of their boarding pass.

The study shows that airport retailers have open to them a huge. the period where travellers are in the most relaxed part of their journey and ready to browse or shop in many cases (Newman and Lloyd Jones. According to Omar and Kent (2001) retailers are increasingly recognising the significant degree to which many airport shoppers are influenced by the airport environment. They showed that 35 per cent of airport users are converted purchasers. A study conducted by Bowes (2002) shows how stress-reducing design and operational efficiency combine to create a successful commercial environment. Once the visitor actually reaches the airport there is significant potential to stimulate impulse purchases through high-impact merchandising and innovative promotion to what is virtually a captive audience. however. The resultant findings summarized in Figures 6 and 7 highlight the potential for retailers and also the significant opportunity for a greater level of impulse sales. which deliver lower levels of congestion and queuing. increasing and highly lucrative customer traffic visiting UK airports. 1999). Visitors are likely to be in the upper socioeconomic groups. They conducted a field study in Gatwick Airport using a sample of airport users. The quantity of reported research in this area is quite limited but there have been a small number of important reports compiled which examine these issues in the airport context. This marks the beginning of the 'golden hour'. particularly the more frequent visitors. featuring greenery and open space and the operational efficiencies. This represents the most important target market and opportunity for airport retailers. The Mintel Report Airport Retailing Review (2000) is one of the few detailed empirical studies on consumer behavior in the airport environment and especially highlights the effects and potential of impulse purchasing in the airport retail environment. increase passengers' propensity to buy . Passengers indicated they were more likely to purchase after passing through airport control than before. In his research in Brisbane International Airport the intentional stress-reducing design. predominantly in the UK. Their evidence showed that impulsive shopping at the airport is induced and/or encouraged by both marketing and environmental influences. There was also a readiness among a significant minority of customers to make unplanned or impulse purchases.messages. a total of 65 per cent of users do not visit the shop or browse with no intention of buying. Advertisers recognize that the most important site is just at the point in the checkin area as passengers turn around having completed their check-in. He identifies emotion and time as two of the key factors affecting the shopping habits of travellers and visitors to an international airport terminal.

2002). The company developed a portfolio of products through adaptation and development to provide an exclusive travel retail offering. An example: Nestle confectionery Within travel retail it is widely considered that confectionery is probably the most impulsive category. . Nestle International Travel Retail (NITR). Therefore. is a prime example. termed the 'happy hour' in which to maximize purchases  Retailers must employ a variety of marketing strategies to appeal to the diverse market segments  Individual normative traits must be minimized or eliminated. 2002). In the context of the above studies the authors conclude that:  Travellers suffer from high levels of excitement and stress simultaneously  Operators must strive to reduce the boredom effect  There exists a limited window of opportunity. airports must be designed in an aesthetically pleasing manner but also be functional. This policy of differentiation has been very successful as:  Retailers in travel retail demand much higher margins than the domestic market due to the increased operating costs. Nestle. to globally handle the development of the travel retail channel. He concludes that every extra minute that passengers can be saved from waiting in a queue increases their propensity to buy (Bowes. Confectionery companies were the pioneers of impulsive purchasing behavior maximization in travel retail. which is the world's largest confectionery company. Industry sources estimate that as much as 70 per cent of sales are impulse-driven purchases. operators must work with government agencies and the airlines to reduce processing time of passengers. He further states that in an airport context the emotional state of the shopper and the time they have available are the two major factors influencing whether they shop and the amount of money they spend. Retailers also demand to be more competitive than the domestic market due to the absence of duty and taxes. Nestle developed a dedicated division. outperforming most other categories.(Bowes. This is also a category that has seen unprecedented annual growth in the travel retail sector. This growth was primarily driven by the aggressive development of the sector within the channel by the major FMCG companies through their recognition and understanding of the buying behavior. Additionally.

has still not really got to grips with the differences in the airport environment. They have implemented promotions designed on the basis of impulse purchase behavior traits exhibited in other channels combined with some common sense. as prizes. confectionery. NITR identified three major segments within travel retail to target:    Gift giving Sharing/self-consumption Children's products While the confectionery companies have completed extensive research on buyer behavior in most conceivable channels. tobacco and newsagents (CTNs). forecourt retailing etc. With the abolition of duty free within the EU retailers are now seriously examining the potential of these 'marginal' departments to try and replace some of the lost revenues from cash cows such as liquor and tobacco. while pioneering within the travel retail context. they have done little in the travel retail environment except implementation of previously successful impulse strategies. eg multiples. however. 2003) . Alan Brennan (NITR Regional Manager — Middle East) concedes that their approach.    Use of travel retail as a brand-building 'shop window' opportunity. Innovative 'retailtainment' promotions such as the offering of cars. etc. The growth of the confectionery category in travel retail has undoubtedly been supplier driven. Development of impulse-inducing promotional displays. motor bikes.1. Development of customized furniture to increase brand awareness and provoke impulse purchase behavior.(source: Journal of Consumer Behavior vol 3. this growth has prompted some but not all operators and retailers to develop other categories that historically have been considered marginal. maximizing global distribution.

CHAPTER 3 RESEARCH METHODOLOGY .

2 Specific objectives  Understand the taste and preference of the consumers with respect to confectionery goods. The study will help the management to take decisions on the promotional schemes to be introduced by the suppliers. It is a map or blue print according to which the research is to be conducted.1 Broad objective of the study  To study the consumer preference of the passengers visiting the Cochin Duty Free Shop of Cochin International Airport Limited with respect to confectionery goods. and the researcher must rely on logic and judgment.  Understand the factors that influence a customer to purchase a confectionery good from Cochin duty free. Universe of the study Universe of the study is all the passengers visiting the Cochin duty free shop of the Airport. This explains how the researcher conducted this project. 3. For the study a descriptive research design is under taken. The population is defined in keeping with the objectives of the study.1. Sampling methods. There are no strict rules to follow. Sampling Methods It is incumbent on the researcher to clearly define the target population. Sampling. 3.2 Scope of the study The study will help to understand the preferences of the passengers visiting the Cochin duty free.  Understand the consumer buying pattern at Cochin duty free.1 Objectives of the study 3.3.3 Methodology Methodology is one of the main aspects of every research.3.1. A research design is purely and simply the frame work or plan for a study that guides the collection and analysis of data.1 Research Design Research design is the basic frame work which provides guide lines for the rest of research process. Pilot survey and Field work procedure.2. 3. . 3. Questionnaire design.3. It includes – Research design. a. The study will further help to understand the buying pattern of passengers that will help to make the decisions. 3.

b. Convenience Sampling Its non probability sampling refers to sampling by obtaining units or people who are mostly conveniently available. Researchers usually use convenience samples to obtain completed questionnaire quickly and economically. c. Sample Size Based on the convenient sampling a sample size of 115 was chosen. The survey was conducted among the passengers visiting Duty Free. 3.3.3 Research Approach The research approach is survey.

3.3.4 Research Instruments The Research Instruments is questionnaire. A questionnaire of a set of questions presented to get their answers. The questionnaire is very flexible in that there is any number of ways to ask questions. Questionnaire need to be carefully developed, tested and debugged before they are administered on large scale. A total of 11 questions were used for survey. Questions includes open-ended questions, multiple choice single answer questions, multiple choice multiple answer questions.

3.3.5 Data Collection Method   Primary Data Collection: The primary data was collected by directly contacting the passengers visiting the duty free using a properly drafted questionnaire. Secondary Data Collection: In addition to the primary research, secondary data was collected from articles published in dailies, magazines, organization manuals, websites, journals and various books in management. 3.3.6 Collection of data through questionnaire This method of data collection is quite popular in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by the Government. In this method a questionnaire is send to the person concerned with a request to answer the questions and return the questionnaire. A questionnaire consist of number of questions printed or typed in a definite order or a form or set of forms. The

questionnaire is give to the respondents who are expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. The respondents have to answer the questions on their own. Merits of the method      There is low cost even when the universe is large and is widely spread geographically. It is free from the bias of the interviewer answers are in respondents own words. Respondents have adequate time to give well thought out answers. Respondents who are not easily approachable can also be reached conveniently. Large sample can be made use of and thus the result can be made more dependable and reliable. Demerits of the method      It can be used only when respondents are educated and cooperating. The control over questionnaire may be lost once it is given. There is inbuilt inflexibility because of the difficulty of amending the approach once questionnaire have been dispatched. There is also the possibility of omission of replies. It is difficult to know whether willing respondents are truly representative.

3.3.7 Field work procedure After fixing the sample size the data collection was started by means of personal interviewing. It is most versatile of other methods such as mail interview or telephonic interview. The respondents are selected on the convenience of their availability. Some respondents are ready to fill up questionnaire by themselves. Each time the interview lasted for five minutes. Sometimes it longs for more than half an hour because of the respondent‘s curiosity to answer. 3.3.8 Data Analysis Techniques In this research various percentages and ranks are identified in the analysis and they have presented pictorially by way of diagrams to have better clarity. The results obtained are the outcome of critical analysis and evaluation of the data collected.

TOOLS USED FOR ANALYSIS The different tools used for analysis were used in the present study. They include: a) Descriptive analysis: It refers to the transformation of raw data into a form that will make them easy to understand and interpret. Describing responses or observations is typically the first form of analysis. Calculating averages, frequency distributions and percentage distributions are the most common ways of summarizing data. The descriptive analysis tools used for this study are: a. Simple tabulation: Simple tabulation of the responses or observations on a question-byquestion or item-by-item basis provides the most basic form of information for the researcher and in many cases the most useful information. It tells the researcher how frequently each response occurs. This starting point of analysis requires the counting of responses or observations for each of the categories or codes assigned to a variable. b. b) The Percentage method: This is the earliest and the best method to analyze a given data. The percentage wise distribution of the give data gives an idea of which factor is more than & which is less. The method has used extensively in this project. Number of response × 100 Sample size b) Cross Tabulation: Chi-Square Test: One of the simplest techniques for describing sets of relationships is the cross tabulation. The chi-square distribution provides a means for testing the statistical significance of contingency tables. It allows to test for the differences in two groups‘ distributions across categories. The chi- square test (2 ) involves comparing the observed frequencies (Oi) with thw expected frequencies (Ei). 2 = ( O1-E1)2 +(O2-E2)2 +………..(Oi – Ei)2 E1 + E2 +…………….+Ei c) Weighted average mean: An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average.

.....4 LIMITATION OF THE STUDY  The study was only conducted among the passengers visiting the duty free at the arrival terminal and could not be extended to the departure terminal due to security related issues..w2...The weighted mean of a non-empty set of data [x1.+wn 3.wn] can be calculated by: w1x1+w2x2+..x2... ......  The respondent‘s time constraint to complete the questionnaire.+wnxn w1+ w2+.…….xn] with non-negative weights [w1.……...  The unwillingness of the respondents to fill the questionnaire was another major obstacle..

CHAPTER 4 DATA ANAYSIS AND INTERPRETATION .

of Respondents 11 31 45 26 2 Percentage 10% 27% 39% 23% 2% .1 Overview of Response 4.1.1 gender Gender Male Female No.1 Gender Table 4.1. of Respondents 72 43 Percentage 63% 37% 80 60 72 43 40 20 0 males females Fig 4.1 Gender (Source: primary data) Interpretation: From the 115 samples selected. 72 respondents are males and 43 are females.1.2 Age Age Less than 25 26-35 36-45 46-55 56 and above No. 4.1.4.1.2 Age Table 4.

2 Age (Source: primary data) Interpretation: From the sample of 115.3 Occupation Occupation Business Employed Home maker Looking for work Student Retired No.1. 11 respondents are under the age group of less than 25. 31 people are in the age group of 26-35. 26 respondents in the age group of 46-55 and 2 respondents in the group of above 55. of Respondents 10 74 19 2 8 2 Percentage 9% 64% 17% 2% 7% 2% . 4.3 Occupation Table 4. 45 respondents in the age group of 36-45.1.50 45 40 35 30 25 20 15 10 5 0 Less than 25 26-35 11 31 45 25 2 36-45 46-55 56 and above Fig 4.1.

1. of Respondents 3 6 13 93 Percentage 3% 5% 11% 81% . and 2% are looking for work. 7% are students. 16 % respondents are home maker.4 Frequency of visit to Cochin Table 4.3 occupation (Source: primary data) Interpretation: From the samples taken for study.1.1. 64% respondents are employed.80 70 60 50 40 30 20 10 0 Business 74 19 10 2 Employed Home maker Looking for work Student 8 2 Retired Fig 4. 9% respondents are business people.4 Frequency of visit to Cochin Frequency of visit to cochin Once 2-3 times 4-6 times More than 6 times No. 2% are retired people. 4.

11% of samples visited Cochin four to six times.1.4 Frequency of visit to Cochin (Source: primary data) Interpretation: Among the samples selected for study.1.5 Frequency of visit to Cochin Duty Free Shop Frequency of visit to cochin duty free shop Every time Once 2-3 times More than 3 times No. 5% of the samples visited two to three times and 3% of samples have visited only once. of Respondents 73 5 13 24 Percentage 63% 4% 11% 21% .1.100 90 80 70 60 50 40 30 20 10 0 Once 2-3 times 4-6 times 3 6 13 93 More than 6 times Fig 4. 4. more (81%) of the passengers visited Cochin more than six times.5 Frequency of visit to Cochin Duty Free shop Table 4.

of Respondents 115 64 4 0 29 3 0 0 5 Percentage 100% 56% 3% 0% 25% 3% 0% 0% 4% .1.80 70 60 50 40 30 20 10 0 73 24 13 5 Every time Once 2-3 times More than 3 times Fig 4.5 Frequency of visit to Cochin Duty Free Shop (Source: primary data) Interpretation: Among the samples selected for study. 4. 11% of the samples visited two to three times and 4% of samples have visited only once.6 Products preferred from Cochin duty free shop Table 4.6 Products preferred from Cochin Duty Free Shop Products Confectionery Liquor Perfume Souvenirs Super market Tobacco Toys Gold Electronics No.1. 21% of samples visited more than three times.1. more (64%) of the passengers visited duty free every time they visit cochin.

Among the samples selected for study.008 Average 1.525 761 718 336 .616 3. 4. 100% of the passengers prefer to buy confectionery goods from duty free shop. 56% prefer to buy liquor. toys and gold are not preferred by anyone of the samples selected.1. 4% of respondents prefer perfume and 3% of them prefer tobacco.1.278 1.081 2.1.832 1.7 Average amount spent on products preferred Products Confectionery Liquor Perfume Super market Tobacco Sum(in Rs) 1.045 20. 4% prefer electronics. The product categories like souvenirs. 25% of passengers prefer supermarkets products.6 Products preferred from Cochin Duty Free Shop (Source: primary data) Interpretation: The question was framed in such a way that the respondents were free to choose any number of products they prefer.7 Average amount spent on products preferred Table 4.140 120 100 80 60 40 20 0 115 64 29 4 0 3 0 0 5 Fig 4.24.61.

Rs 2. .e. 95% of the passengers prefer to buy confectionery goods from duty free shop for gifting friends and relatives. 3% prefer to buy for gifting their kids and another 3% for gifting their clients.478 (Source: primary data) Interpretation: The average amount spent on liquor is more when compared to other products i.7 Reasons for purchasing confectionery goods (Source: primary data) Interpretation: Among the samples selected for study. of Respondents 0 3 109 3 Percentage 0% 3% 95% 3% 120 100 80 60 40 20 0 0 For self For kids 3 109 3 For gifting friends and relatives For gifting clients Fig 4.1.392 1.1.081. The average amount spent on confectionery is Rs 1.1.8 Reasons for purchasing confectionery products Table 4.525.8 Reasons for purchasing confectionery goods Reasons For self For kids For gifting friends and relatives For gifting clients No. 4.Electronics 7.

1. 95% of respondents consider taste and brands as an important factor. . most of the people (99%) consider price and discount as an important factor.1. of Respondents on importance level of Factors Important Price Taste Ingredients Package Size Discount Brand 114 109 2 92 104 114 110 factors Not important 1 6 113 23 11 1 5 120 100 80 60 40 20 114 109 113 92 104 114 110 important 23 1 6 2 11 1 5 not important 0 Fig 4.9 Factors influencing purchase of confectionery at Cochin Duty Free No.9 Factors that influence purchase of confectionery at Cochin duty free Table 4.4.1. 90% and 80% of passengers give importance to package and size also whereas 98% does not consider ingredients as an important factor that influences them.8 Factors influencing purchase of confectionery at Cochin Duty Free (Source: primary data) Interpretation: Among the samples selected for study.

4.4. of Respondents 12 96 7 Percentage 10% 83% 6% 120 100 80 60 40 20 0 Chocolate bars Candies Chocolate gift packs 12 96 7 Fig 4.1.11 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop No.9 Types of confectionery preferred (Source: primary data) Interpretation: Among the samples selected for study.10 Total score on types of confectionery preferred Table 4. 10% of respondents prefer chocolate bars and 6% of them prefer chocolate gift packs.1. most of the people (89%) passengers prefer candies.1.11 Total score on reasonable pricing of confectionery at Cochin duty free shop Table 4.1.1. of Respondents on acceptance level of Types Agree Chocolate bars 17 reasonable pricing Disagree 98 .10 Types of confectionery preferred Types Chocolate bars Candies Chocolate gift packs No.

4.1. most of the people (85%) consider pricing of the chocolates in Cochin duty free is not reasonable. The lowest total score indicates the first (highest) preference ranking. The result shows the following rank order: Table 4.1.10 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop (Source: primary data) Interpretation: Among the samples selected for study.12 Ranking of brands Brands Galaxy Ferraro Twix Snickers Mars Milky way Rank 1 2 3 4 5 6 Total score 121 494 510 514 516 517 .1.Candies Chocolate gift packs 15 16 100 99 120 100 80 60 40 20 0 Chocolate bars Candies Chocolate gift packs 17 15 16 Agree Disagree 98 100 99 Fig 4.12 Ranking of the confectionery brands by the passengers The passengers have ranked the brands as 1 for the most preferred brand to 7 for the least preferred brand.

galaxy have been ranked first.11 Promotional preference of customers (Source: primary data) .1.1.13 Promotional preference of the customers for confectionery products at duty free Table 4. ferraro second. Twix third. of Respondents on preference level of Promotions promotional scheme Good Scratch and Win Free Gift Discount Buy One Get One Free Lucky Draw Super Value Packs 64 98 100 112 62 112 Not Good 51 17 5 3 53 3 120 100 80 64 60 40 20 0 Scratch and Win Free Gift Discount 17 5 51 98 100 112 112 62 53 Good Not Good 3 Buy One Get One Free Lucky Draw 3 Super Value Packs Fig 4. Milky Way and bounty respectively.1. 4.Bounty 7 526 (Source: primary data) Interpretation: From the study conducted. sixth and seventh rankings for mars. fifth.13 Promotional preference of customers No. fourth ranking for snickers.

112 respondents like super value packs and buy one get one free promotional schemes than other promotions. 104 respondents are satisfied with the customer . Only 55% of respondents have preferred scratch and win and lucky draw. Another 85% also prefer free gifts with product purchases.1.12 Satisfaction of Services (Source: primary data) Interpretation: From the samples taken 104 respondents are satisfied with the ambience of the shop.1. of Respondents on satisfaction level of the Services Satisfied Ambience Location Customer service Display Stock Availability 104 106 104 107 14 services Dissatisfied 11 9 11 8 101 120 104 100 80 60 40 20 0 Ambience Location Customer service 11 11 106 104 107 101 Satisfaction Disatisfaction 9 8 14 Display Stock Availability Fig 4.1. 4. 86% of respondents have chosen discount as next promotion scheme.14 Satisfaction of Services No. 106 people liked the location.14 Total Score on overall satisfaction of customers on services at Cochin Duty Free Table 4.Interpretation: From the samples.

15 Total Score on preference by customers to receive information Table 4. . and 107 respondents are satisfied with the display of the products.1. 48% of passengers indicated Television Ads to receive the information. 6% of respondents prefer mobile phone alerts and only 1% prefers to receive information from website.15 Preference of receiving information Information Websites Mobile phone alerts In flight Magazines Television Ads No of respondents 1 7 59 48 Percentage 1% 6% 51% 42% 70 60 50 40 30 20 10 0 Websites Mobile phone alerts In flight Magazines Television Ads 7 1 59 48 Fig 4.1. 4.service of the employees.1. Out of the samples taken 101 respondents are least satisfied with the stock available at the shop.13 Preference of receiving information (Source: primary data) Interpretation: From the samples selected 51% of respondents prefer to receive information from In-Flight magazines.

The products namely.1.000 . Hence. Sig.001 .697 12.1 Chi-Square test for Preferred Products and Gender Chi-square test is used to describe the relationship between variables. (2sided) .124 . The significance level is 5% (.003a 10. tobacco and electronics products. (1-sided) Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 12. there is no significance in conducting test for these mentioned products. The Chi-Square test is conducted only for liquor.899 1 .05). The test is done here to find if any relationship is there between preferred products and gender.001 11. Table 4.2 In-Depth Analysis 4.4. 4. H1: There is association between preference for liquor and gender of respondent.001 .1.2.001 Exact Sig.1 cross tabulation for liquor by gender Gender Male Female TOTAL Purchased 49 Liquor Not purchased Total 23 72 15 28 43 64 51 115 Table 4. perfume. toys and gold are either 100% preferred by the respondents or not at all preferred.2 Chi-square test for liquor and gender Degree of freedom 1 1 1 Asymp. Souvenirs. supermarkets.2.1 Liquor and Gender Hypothesis statement H0: There is no association between preference for liquor and gender of respondent.1. (2-sided) Exact Sig.001 .2.1.2.1. confectionery.

2 Chi-square test for perfume and gender Degree of freedom 1 1 1 Asymp.269 1 . 4. Table 4. From the test it‘s proven that there is no association between preference for perfume and gender of respondent.602 1.1.2 cross tabulation for perfume by gender Gender Male Female TOTAL Purchased 3 Perfume Not purchased Total 69 72 1 42 43 4 111 115 Table 4.272a . H1: There is association between preference for perfume and gender of respondent. So H0 is accepted.288 Interpretation: The coefficient of chi-square test is 0.2.Interpretation: The coefficient of chi-square test is 0.604 .000 . From the test it‘s proven that there is association between preference for liquor and gender of respondent. Sig. .2.520 Exact Sig.000 .1. It is less than the significant level of 0.592 1. (1-sided) Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) .001.05. It is more than the significant level of 0. (2-sided) Exact Sig.000 .602.2.1.2. So H0 is rejected. (2sided) .2 Perfume and Gender Hypothesis statement H0: There is no association between preference for perfume and gender of respondent.05.

187 1.390 1. . (1-sided) Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 1.2.1.2 Chi-square test for supermarket and gender Degree of freedom 1 1 1 Asymp.2.1 cross tabulation for supermarkets by gender Gender Male Female TOTAL Purchased 15 Supermarkets Not purchased Total 57 72 14 29 43 29 86 115 Table 4.945 1 .926 Interpretation: The coefficient of chi-square test is 0. From the test it‘s proven that there is no association between preference for supermarkets and gender of respondent.4 Tobacco and Gender Hypothesis statement H0: There is no association between preference for tobacco and gender of respondent.3. Table 4.161. Sig.1. H1: There is association between preference for tobacco and gender of respondent. 4.3.120 Exact Sig.05. (2-sided) Exact Sig.238 . So H0 is accepted. (2sided) . It is more than the significant level of 0.3 Supermarkets and Gender Hypothesis statement H0: There is no association between preference for supermarkets and gender of respondent.161 . H1: There is association between preference for Supermarkets and gender of respondent.2.163 .1.2.1.165 .4.963a 1.

5 Electronics and Gender Hypothesis statement H0: There is no association between preference for electronics and gender of respondent.1. .2. (2sided) .000 .000 .2.2. It is more than the significant level of 0.2 Chi-square test for tobacco and gender Degree of freedom 1 1 1 Asymp.882 1. So H0 is accepted.1. (1-sided) Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) . H1: There is association between preference for electronics and gender of respondent.05.4.022 Interpretation: The coefficient of chi-square test is 0.4.1 cross tabulation for tobacco by gender Gender Male Purchased 2 Tobacco Not purchased Total 70 72 Female TOTAL 1 42 43 3 112 115 Table 4. Sig.Table 4.883.883 1.883 .687 Exact Sig. (2-sided) Exact Sig.1.021 1 .000 . 4. From the test it‘s proven that there is no association between preference for tobacco and gender of respondent.022a .

1 cross tabulation for tobacco by gender Gender Male Purchased 5 Electronics Not purchased Total 67 72 Female TOTAL 0 43 43 5 110 115 Table 4. So H0 is accepted. (2-sided) Exact Sig.2.028 . .196 .1.1.675 4. Sig.2 Chi-square test for electronics and gender Degree of freedom 1 1 1 Asymp.Table 4.818 Interpretation: The coefficient of chi-square test is 0.2.05. (2sided) .5. It is more than the significant level of 0. (1-sided) Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 3.095 1 .077 .5.155 3.079 .077.091 Exact Sig.122a 1. From the test it‘s proven that there is no association between preference for electronics and gender of respondent.

452 8. From the test it‘s proven that there is association between preference for liquor and age of respondent.2.1 cross tabulation for liquor by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Liquor Purchased 1 17 14 31 27 18 45 17 9 26 2 0 2 64 51 115 Not purchased 10 Total 11 Table 4. So H0 is rejected. The products namely. 4.427 Interpretation: The coefficient of chi-square test is 0.05).013.013 . The Chi-Square test is conducted only for liquor. . perfume. It is less than the significant level of 0.006 .2.2.4. The test is done here to find if any relationship is there between preferred products and age.05. Hence. supermarkets. Souvenirs.607a 14. confectionery. tobacco and electronics products. H1: There is association between preference for liquor and age of respondent. Sig.1 Liquor and Age Hypothesis statement H0: There is no association between preference for liquor and age of respondent.2 Chi-Square test for Preferred Products and Age Chi-square test is used to describe the relationship between variables.1.2. (2sided) . toys and gold are either 100% preferred by the respondents or not at all preferred. Table 4. The significance level is 5% (.2.2 Chi-square test for liquor and age Degree of freedom 4 4 1 Asymp.1. there is no significance in conducting test for these mentioned products.004 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 12.2.2.

So H0 is accepted.891 . Sig.2. It is more than the significant level of 0. Table 4.407 Interpretation: The coefficient of chi-square test is 0. (2sided) ..05.2 Chi-square test for perfume and age Degree of freedom 4 4 1 Asymp. From the test it‘s proven that there is no association between preference for perfume and age of respondent.4.2.523 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.3 Supermarkets and Age Hypothesis statement H0: There is no association between preference for supermarkets and age of respondent.2.856.856 .2.2.332a 1.2.123 .1 cross tabulation for perfume by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Perfume Purchased 1 1 30 31 1 44 45 1 25 26 0 2 2 4 111 115 Not purchased 10 Total 11 Table 4.2.2. . H1: There is association between preference for Supermarkets and age of respondent.2. 4.2 Perfume and Age Hypothesis statement H0: There is no association between preference for perfume and age of respondent.2. H1: There is association between preference for perfume and age of respondent.

It is more than the significant level of 0.2 Chi-square test for supermarket and age Degree of freedom 4 4 1 Asymp.226 .665a 6.2. So H0 is accepted.1 cross tabulation for tobacco by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Tobacco Purchased 0 0 31 31 2 43 45 1 25 26 0 2 2 3 112 115 Not purchased 11 Total 11 .2.2.1 cross tabulation for supermarkets by age Age 16-25 26-35 Supermarkets Purchased 4 7 24 31 3645 15 30 45 4655 3 23 26 Above 55 0 2 2 TOTAL 29 86 115 Not purchased 7 Total 11 Table 4.2.2.2. H1: There is association between preference for tobacco and age of respondent.4 Tobacco and Age Hypothesis statement H0: There is no association between preference for tobacco and age of respondent.167 .2. 4. (2sided) .05.226.Table 4.2. Sig.935 Interpretation: The coefficient of chi-square test is 0. Table 4.2.3.164 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 5. From the test it‘s proven that there is no association between preference for supermarkets and age of respondent.4.462 1.

2. It is more than the significant level of 0. From the test it‘s proven that there is no association between preference for tobacco and age of respondent.2.4.152 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.512 .1 cross tabulation for tobacco by gender Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Tobacco Purchased 0 0 31 31 3 42 45 2 24 26 0 2 2 5 110 115 Not purchased 11 Total 11 Table 4. H1: There is association between preference for electronics and age of respondent.5.958 .288 . 4. Sig.5.2. So H0 is accepted. (2sided) .2.957 Interpretation: The coefficient of chi-square test is 0.2 Chi-square test for electronics and age Degree of freedom 4 4 1 Asymp.2.5 Electronics and Age Hypothesis statement H0: There is no association between preference for electronics and age of respondent.989 2.05.Table 4.281a 4.2.2. (2sided) .2.055 . Table 4.748 .2 Chi-square test for tobacco and age Degree of freedom 4 4 1 Asymp.748.565 . Sig.932a 2.328 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.

From the test it‘s proven that there is no association between preference for electronics and age of respondent. H1: There is association between preference for liquor and occupation of respondent.512. perfume. The significance level is 5% (.1 cross tabulation for liquor by occupation Occupation Home maker 6 13 19 Looking for work 0 2 2 1 7 8 2 0 2 64 51 115 Student Retired TOTAL Own business Employed Liquor Purchased 9 46 28 74 Not purchased 1 Total 10 Table 4. The Chi-Square test is conducted only for liquor.559 9.2.455 .1. supermarkets.002 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 20.001 .Interpretation: The coefficient of chi-square test is 0. The products namely. there is no significance in conducting test for these mentioned products. confectionery. 4.2 Chi-square test for liquor and occupation Degree of freedom 5 5 1 Asymp.3.3.05. tobacco and electronics products.2.3.1 Liquor and Occupation Hypothesis statement H0: There is no association between preference for liquor and occupation of respondent. Table 4.2. 4.2. Souvenirs. toys and gold are either 100% preferred by the respondents or not at all preferred.1.05). It is more than the significant level of 0.3 Chi-Square test for Preferred Products and Occupation Chi-square test is used to describe the relationship between variables. Sig.000 . So H0 is accepted. Hence. The test is done here to find if any relationship is there between preferred products and occupation.652a 23. (2sided) .

Interpretation: The coefficient of chi-square test is 0.586 Interpretation: The coefficient of chi-square test is 0.3.807. Table 4.2.2 Perfume and Occupation Hypothesis statement H0: There is no association between preference for perfume and occupation of respondent.444 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.606 .1 cross tabulation for perfume by occupation Occupation Home maker 0 19 19 Looking for work 0 2 2 0 8 8 0 2 2 4 111 115 Student Retired TOTAL Own business Employed Perfume Purchased 0 4 70 74 Not purchased 10 Total 10 Table 4. So H0 is rejected. From the test it‘s proven that there is association between preference for liquor and occupation of respondent.001. Sig. It is more than the significant level of 0. H1: There is association between preference for perfume and occupation of respondent. It is less than the significant level of 0.05. So H0 is accepted. (2sided) . .2.607 .2. 4.2 Chi-square test for perfume and occupation Degree of freedom 5 5 1 Asymp.807 .2.2.3. From the test it‘s proven that there is no association between preference for perfume and occupation of respondent.05.3.296a 3.

018 Interpretation: The coefficient of chi-square test is 0.From the test it‘s proven that there is no association between preference for supermarkets and occupation of respondent.893 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3. .3.407 .2. H1: There is association between preference for tobacco and occupation of respondent. Sig.05.4 Tobacco and Occupation Hypothesis statement H0: There is no association between preference for tobacco and occupation of respondent. H1: There is association between preference for supermarkets and occupation of respondent.1 cross tabulation for supermarkets by occupation Occupation Home maker 7 12 19 Looking for work 0 2 2 2 6 8 0 2 2 29 86 115 Student Retired TOTAL Own business Employed Supermarkets Purchased 1 19 55 74 Not purchased 9 Total 10 Table 4.947a 5. (2sided) .3.3 Supermarkets and Occupation Hypothesis statement H0: There is no association between preference for supermarkets and occupation of respondent.557 . 4.3.2. So H0 is accepted .557. It is more than the significant level of 0.3.070 .3.4.2.2 Chi-square test for supermarket and occupation Degree of freedom 5 5 1 Asymp. Table 4.2.3.

4.3.Table 4.1 cross tabulation for tobacco by occupation Occupation Home maker 1 18 19 Looking for work 0 2 2 0 8 8 0 2 2 3 112 115 Student Retired TOTAL Own business Employed Tobacco Purchased 0 2 72 74 Not purchased 10 Total 10 Table 4. H1: There is association between preference for electronics and occupation of respondent. 4.5 Electronics and Occupation Hypothesis statement H0: There is no association between preference for electronics and occupation of respondent.2. It is more than the significant level of 0. So H0 is accepted From the test it‘s proven that there is no association between preference for tobacco and occupation of respondent.3. (2sided) .010 Interpretation: The coefficient of chi-square test is 0. .922 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.4.119a 1.2.904 . Sig.952 .952.3.05.575 .2 Chi-square test for tobacco and occupation Degree of freedom 5 5 1 Asymp.2.

Table 4.689 Interpretation: The coefficient of chi-square test is 0.511 1.05. (2sided) .622 .2 Chi-square test for electronics and occupation Degree of freedom 5 5 1 Asymp.194 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2. .1cross tabulation for electronics by occupation Occupation Hom Own business Electron ics Purchased Not purchased Total 1 9 10 4 70 74 Employ ed e mak er 0 19 19 Looki ng for work 0 2 2 Stude nt Retir ed TOT AL 0 8 8 0 2 2 5 110 115 Table 4.3. It is more than the significant level of 0. From the test it‘s proven that there is no association between preference for electronics and occupation of respondent.2.376a 3.795. So H0 is accepted.4.5.795 . Sig.2.3.

perfume.2.407 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6. Table 4.4. H1: There is association between amount spent on confectionery and gender of respondent.1.384a 8. Souvenirs.094 . The significance level is 5% (.1. supermarkets.1 cross tabulation for amount spent on confectionery by gender Gender Male Amount on spent 0-25 25-50 45 23 4 0 72 Female TOTAL 24 17 0 2 43 69 40 4 2 115 confectionery(in 50-75 Dollars) 75-100 Total Table 4. Hence. The products namely. there is no significance in conducting test for these mentioned products.4.4.040 .322 . 4. (2sided) .2.687 .2 Chi-square test for amount spent on confectionery and gender Degree of freedom 3 3 1 Asymp. tobacco and electronics products.05). liquor. toys and gold are either 100% preferred by the respondents or not at all preferred.4 Chi-Square test for Amount spent on preferred products and Gender Chi-square test is used to describe the relationship between variables. Sig.2.4. The test is done here to find if any relationship is there between amount spent and the gender.2.1 Amount spent on Confectionery and Gender Hypothesis statement H0: There is no association between amount spent on confectionery and gender of respondent. The Chi-Square test is conducted only for confectionery.

Sig.358 . So H0 is accepted. H1: There is association between amount spent on liquor and gender of respondent. Table 4.05.2. So H0 is accepted. It is more than the significant level of 0.059 Interpretation: The coefficient of chi-square test is 0.358. From the test it‘s proven that there is no association between amount spent on liquor and gender of respondent.151 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.4. 4.4.05.663 2.4.2 Chi-square test for amount spent on liquor and gender Degree of freedom 3 3 1 Asymp.2. It is more than the significant level of 0.Interpretation: The coefficient of chi-square test is 0.094.2.2 Amount spent on Liquor and Gender Hypothesis statement H0: There is no association between amount spent on liquor and gender of respondent. (2sided) .225a 3.1 cross tabulation for amount spent on liquor by gender Gender Male 0-50 Amount on spent liquor(in 50-100 100-150 150-200 Total 49 21 1 1 72 Female TOTAL 35 7 1 0 43 84 28 2 1 115 Dollars) Table 4.300 . .2.2. From the test it‘s proven that there is no association between amount spent on confectionery and gender of respondent.

869a 3.841 .4.4.05. H1: There is association between amount spent on perfume and gender of respondent.3 Amount spent on Perfume and Gender Hypothesis statement H0: There is no association between amount spent on perfume and gender of respondent.238 .2.2 Chi-square test for amount spent on perfume and gender Degree of freedom 2 2 1 Asymp.3. Sig. (2sided) .1 cross tabulation for amount spent on perfume by gender Gender Male 0-10 Amount on spent perfume(in 10-20 20-30 30-40 Total 70 0 2 0 72 Female TOTAL 42 1 0 0 43 112 1 2 0 115 Dollars) Table 4.4. So H0 is accepted.2.365 Interpretation: The coefficient of chi-square test is 0. It is more than the significant level of 0.546 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.4 Amount spent on Supermarkets and Gender Hypothesis statement H0: There is no association between amount spent on supermarkets and gender of respondent.2.147 .4.3. Table 4. H1: There is association between amount spent on supermarkets and gender of respondent. From the test it‘s proven that there is no association between amount spent on perfume and gender of respondent.2. .238. 4.4.

472a 2.2.4.4. (2sided) .979 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.4.480 . Sig.5.1 cross tabulation for amount spent on tobacco by gender Gender Male 0-5 Amount on spent tobacco(in 5-10 10-15 15-20 Total 72 0 0 0 72 Female TOTAL 42 0 0 1 43 114 0 0 1 115 Dollars) .4. H1: There is association between amount spent on tobacco and gender of respondent.4. It is more than the significant level of 0.4.559 .Table 4. From the test it‘s proven that there is no association between amount spent on supermarkets and gender of respondent.1 cross tabulation for amount spent on supermarkets by gender Gender Male Amount on spent 0-10 10-20 64 1 5 2 72 Female TOTAL 38 2 1 2 43 102 3 6 4 115 supermarkets(in 20-30 Dollars) 30-40 Total Table 4. Table 4.5 Amount spent on Tobacco and Gender Hypothesis statement H0: There is no association between amount spent on tobacco and gender of respondent.2 Chi-square test for amount spent on supermarket and gender Degree of freedom 3 3 1 Asymp. So H0 is accepted.465 .480.2.001 Interpretation: The coefficient of chi-square test is 0.2.05.2. 4.

Sig.982 1.674 Interpretation: The coefficient of chi-square test is 0.5 37.05. It is more than the significant level of 0.689a 1.2 Chi-square test for amount spent on tobacco and gender Degree of freedom 1 1 1 Asymp.4.159 .6 Amount spent on Electronics and Gender Hypothesis statement H0: There is no association between amount spent on electronics and gender of respondent.196 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.6 cross tabulation for amount spent on electronics by gender Gender Male Amount on electronics(in Dollars) spent 0-12. H1: There is association between amount spent on electronics and gender of respondent.4. Table 4. So H0 is accepted.194.2.5.5 12. 4.5-50 Total 68 0 0 4 72 Female TOTAL 43 0 0 0 43 111 0 0 4 115 .2. From the test it‘s proven that there is no association between amount spent on tobacco and gender of respondent.6. (2sided) .194 .2.5-25 25-37.Table 4.

1. The significance level is 5% (.832 2. Souvenirs. Hence. perfume.116 .2. Sig. H1: There is association between amount spent on confectionery and age of respondent. 4.05. The test is done here to find if any relationship is there between amount spent and the age. there is no significance in conducting test for these mentioned products.2 Chi-square test for amount spent on electronics and gender Degree of freedom 1 1 1 Asymp. Table 4. 4.05).5.2.453 Interpretation: The asymptotic coefficient of chi-square test is 0.050 . So H0 is accepted. tobacco and electronics products. It is more than the significant level of 0.116. supermarkets.2.4. From the test it‘s proven that there is no association between amount spent on electronics and gender of respondent. liquor. (2sided) .5 Chi-Square test for Amount spent on preferred products and Age Chi-square test is used to describe the relationship between variables.117 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.5.6. The Chi-Square test is conducted only for confectionery.475a 3.Table 4. The products namely.1 cross tabulation for amount spent on confectionery by age Age 16-25 Amount spent on confectionery(in Dollars) 50-75 75-100 0 1 2 0 1 1 1 0 0 0 4 2 0-25 25-50 5 5 26-35 19 10 36-45 31 12 46-55 13 12 Above 55 1 1 TOTAL 69 40 .2.1 Amount spent on Confectionery and Age Hypothesis statement H0: There is no association between amount spent on confectionery and age of respondent. toys and gold are either 100% preferred by the respondents or not at all preferred.

From the test it‘s proven that there is no association between amount spent on confectionery and age of respondent. It is more than the significant level of 0.5.2 Chi-square test for amount spent on confectionery and age Degree of freedom 12 12 1 Asymp.2.5.784a 9.230 Interpretation: The coefficient of chi-square test is 0.635.2 cross tabulation for amount spent on liquor by age Age 16-25 Amount spent on 0-50 liquor(in Dollars) 50-100 100-150 150-200 Total 8 2 1 0 11 26-35 28 3 0 0 31 36-45 30 14 1 0 45 46-55 17 9 0 0 26 Above 55 1 0 0 1 2 TOTAL 84 28 2 1 115 . H1: There is association between amount spent on liquor and age of respondent.05. So H0 is accepted. 4.5.2 Amount spent on Liquor and Age Hypothesis statement H0: There is no association between amount spent on liquor and age of respondent.635 .632 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 9.2.373 . Sig. (2sided) .1.671 .Total 11 31 45 26 2 115 Table 4.2. Table 4.

3 Amount spent on Perfume and Age Hypothesis statement H0: There is no association between amount spent on perfume and age of respondent.5. Sig.000.2.2. (2sided) . Table 4.3. (2sided) .063 .5.Table 4.2.2 Chi-square test for amount spent on perfume and age Degree of freedom 8 8 Asymp.050 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 68.247a 20. From the test it‘s proven that there is association between amount spent on liquor and age of respondent.2 Chi-square test for amount spent on liquor and age Degree of freedom 12 12 1 Asymp. It is less than the significant level of 0.847 Interpretation: The coefficient of chi-square test is 0.1 cross tabulation for amount spent on perfume by age Age 16-25 Amount spent on 0-10 perfume(in Dollars) 10-20 20-30 30-40 Total 11 0 0 0 11 26-35 29 1 1 0 31 36-45 45 0 0 0 45 46-55 25 0 1 0 26 Above 55 2 0 0 0 2 TOTAL 112 1 2 0 115 Table 4.000 .3.537 .1. Sig.772 .699 Value Pearson Chi-Square Likelihood Ratio 4.5.5.05.2.211 3. So H0 is rejected. H1: There is association between amount spent on perfume and age of respondent.868a 5. 4.

000 Interpretation: The coefficient of chi-square test is 0.562 .2 Chi-square test for amount spent on supermarket and age Degree of freedom 12 12 1 Asymp.2.004 . (2sided) .000 1 1.772.4 Amount spent on Supermarkets and Age Hypothesis statement H0: There is no association between amount spent on supermarkets and age of respondent.068 .05.5.1 cross tabulation for amount spent on supermarkets by age Age 16-25 Amount spent on 0-10 supermarkets(in Dollars) 10-20 20-30 30-40 Total 10 0 1 0 11 26-35 30 1 0 0 31 36-45 36 1 5 3 45 46-55 25 0 0 1 26 Above 55 1 1 0 0 2 TOTAL 102 3 6 4 115 Table 4.969 . 4.2.620a 19.2. H1: There is association between amount spent on supermarkets and age of respondent. Sig.4. From the test it‘s proven that there is no association between amount spent on perfume and age of respondent. It is more than the significant level of 0.Linear-by-Linear Association (Source: primary data) .453 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 28.5. Table 4.4.5. So H0 is accepted.

5 Amount spent on Tobacco and Age Hypothesis statement H0: There is no association between amount spent on tobacco and age of respondent.004 1.208 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.5.2. Table 4.2 Chi-square test for amount spent on tobacco and age Degree of freedom 4 4 1 Asymp. Sig. It is more than the significant level of 0.557 .05. So H0 is accepted.5.586 Interpretation: The coefficient of chi-square test is 0.05.453a 3.6 Amount spent on Electronics and Age Hypothesis statement H0: There is no association between amount spent on electronics and age of respondent.2. H1: There is association between amount spent on tobacco and age of respondent. It is less than the significant level of 0. 4.5.Interpretation: The coefficient of chi-square test is 0.5.004.2.485 . (2sided) .2. So H0 is rejected. From the test it‘s proven that there is no association between amount spent on tobacco and age of respondent. . 4.5. From the test it‘s proven that there is association between amount spent on supermarkets and age of respondent.485.1 cross tabulation for amount spent on tobacco by age Age 16-25 Amount spent on 0-5 tobacco(in Dollars) 5-10 10-15 15-20 Total 11 0 0 0 11 26-35 31 0 0 0 31 36-45 45 0 0 0 45 46-55 25 0 0 1 26 Above 55 2 0 0 0 2 TOTAL 114 0 0 1 115 Table 4.5.

H1: There is association between amount spent on electronics and age of respondent. (2sided) .6.2 Chi-square test for amount spent on electronics and age Degree of freedom 4 4 1 Asymp.541 4. Souvenirs. tobacco and electronics products.145.05).145 . The products namely.2.6.084 Interpretation: The coefficient of chi-square test is 0. supermarkets.162 .5-25 25-37.6 Chi-Square test for Amount spent on preferred products and Occupation Chi-square test is used to describe the relationship between variables. It is more than the significant level of 0.2. perfume. So H0 is accepted.5-50 Total 11 0 0 0 11 26-35 31 0 0 0 31 36-45 44 0 0 1 45 46-55 23 0 0 3 26 Above 55 2 0 0 0 2 TOTAL 111 0 0 4 115 Table 4.05. The significance level is 5% (. Table 4. toys and gold are either 100% preferred by the respondents or not at all preferred.5. The test is done here to find if any relationship is there between amount spent and the occupation. there is no significance in conducting test for these mentioned products.5 37.828a 6. Hence.5.5 electronics(in Dollars) 12.2.043 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6. The Chi-Square test is conducted only for confectionery. Sig.1 cross tabulation for amount spent on electronics by age Age 16-25 Amount spent on 0-12. . 4. From the test it‘s proven that there is no association between amount spent on electronics and age of respondent. liquor.

6.004 .000. H1: There is association between amount spent on confectionery and occupation of respondent.2.066 Interpretation: The coefficient of chi-square test is 0.1.2. (2sided) .2.423a 33.000 . It is less than the significant level of 0. From the test it‘s proven that there is association between amount spent on confectionery and occupation of respondent. So H0 is rejected. Table 4.6.1 cross tabulation for amount spent on confectionery by occupation Occupation Own business Amount on confectionery(in Dollars) spent 0-25 25-50 50-75 75-100 Total 2 4 4 0 10 50 24 0 0 74 11 7 0 1 9 Home maker Looking for work 2 0 0 0 2 3 4 0 1 8 1 1 0 0 2 69 40 4 2 115 Student Retired TOTAL Employed Table 4.1 Amount spent on Confectionery and Occupation Hypothesis statement H0: There is no association between amount spent on confectionery and occupation of respondent.6.797 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 56.2 Chi-square test for amount spent on confectionery and occupation Degree of freedom 15 15 1 Asymp.4. . Sig.1.449 .05.

498 Interpretation: The coefficient of chi-square test is 0. (2sided) . .05.3 Amount spent on Perfumes and Occupation Hypothesis statement H0: There is no association between amount spent on perfumes and occupation of respondent.2 Chi-square test for amount spent on liquor and occupation Degree of freedom 15 15 1 Asymp.2.2.4.2. Table 4.480 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 89.2 Amount spent on Liquor and Occupation Hypothesis statement H0: There is no association between amount spent on liquor and occupation of respondent.6. It is less than the significant level of 0.6.6.002 . H1: There is association between amount spent on perfumes and occupation of respondent.000.000 . 4. Sig.6.1 cross tabulation for amount spent on liquor by occupation Occupation Own business Amount on Dollars) spent 0-50 50-100 100-150 150-200 Total 1 9 0 0 10 Home maker 16 3 0 0 9 Looking for work 2 0 0 0 2 5 2 1 0 8 1 0 0 1 2 84 28 2 1 115 Student Retired TOTAL Employed 59 14 1 0 74 liquor(in Table 4. So H0 is rejected.2.2.294a 35. From the test it‘s proven that there is association between amount spent on liquor and occupation of respondent. H1: There is association between amount spent on liquor and occupation of respondent.2.370 .

190a 5.756 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6.Table 4. .394 .05.4 Amount spent on Supermarkets and Occupation Hypothesis statement H0: There is no association between amount spent on supermarkets and occupation of respondent.1 cross tabulation for amount spent on perfumes by occupation Occupation Own business Amount on spent 0-10 10-20 20-30 30-40 Total 10 0 0 0 10 Home maker 18 1 0 0 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 112 1 2 0 115 Student Retired TOTAL Employed 72 0 2 0 74 perfumes(in Dollars) Table 4. It is more than the significant level of 0.2. H1: There is association between amount spent on supermarkets and occupation of respondent. From the test it‘s proven that there is no association between amount spent on perfumes and occupation of respondent.3.6. (2sided) .2. Sig.2.6.3.6. So H0 is accepted.799 .863 .799. 4.096 Interpretation: The coefficient of chi-square test is 0.2 Chi-square test for amount spent on perfumes and occupation Degree of freedom 10 10 1 Asymp.

482 Interpretation: The asymptotic coefficient of chi-square test is 0.1 cross tabulation for amount spent on supermarkets by age occupation Occupation Own business Amount on supermarkets(in Dollars) spent 0-10 10-20 20-30 30-40 Total 10 0 0 0 10 66 1 5 2 74 16 1 1 1 9 Home maker Looking for work 1 0 0 1 2 8 0 0 0 8 1 1 0 0 2 1032 3 6 4 115 Student Retired TOTAL Employed Table 4.003.608a 14.05.5 Amount spent on Tobacco and Occupation Hypothesis statement H0: There is no association between amount spent on tobacco and occupation of respondent. Sig. It is less than the significant level of 0. So H0 is rejected.2.2.4.6. From the test it‘s proven that there is association between amount spent on supermarkets and occupation of respondent.488 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 34.463 .6.2 Chi-square test for amount spent on supermarkets and occupation Degree of freedom 15 15 1 Asymp.6. H1: There is association between amount spent on tobacco and occupation of respondent .003 .4. 4.846 .2.Table 4. (2sided) .

6.2 Chi-square test for amount spent on tobacco and occupation Degree of freedom 5 5 1 Asymp.6.2.1 cross tabulation for amount spent on tobacco by occupation Occupation Own business Amount on spent 0-5 50-10 10-15 15-20 Total 10 0 0 0 10 Home maker 18 0 0 1 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 114 0 0 1 115 Student Retired TOTAL Employed 74 0 0 0 74 tobacco(in Dollars) Table 4. Sig.097a 3.601 . So H0 is accepted.5. .404 .05. From the test it‘s proven that there is no association between amount spent on tobacco and occupation of respondent.557 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 5.404.2.2. 4.5. It is more than the significant level of 0.345 Interpretation: The coefficient of chi-square test is 0. (2sided) .Table 4. H1: There is association between amount spent on electronics and occupation of respondent.6.6 Amount spent on Electronics and Occupation Hypothesis statement H0: There is no association between amount spent on electronics and occupation of respondent.646 .

4.5 32.1 cross tabulation for amount spent on electronics by occupation Occupation Own business Amount spent 0-12.2.783 .457a 3.6 16.6.5 12.783. It is more than the significant level of 0.6 27.7 Weighted average of factors Factors Price Taste Ingredients Package Weighted Average 37.210 Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.6. From the test it‘s proven that there is no association between amount spent on electronics and occupation of respondent.5-25 25-37.5-50 Total 9 0 0 1 10 Home maker 19 0 0 0 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 111 0 0 4 115 Student Retired TOTAL Employed 71 0 0 3 74 on electronics(in Dollars) Table 4.2 Chi-square test for amount spent on electronics and occupation Degree of freedom 5 5 1 Asymp.2.6.2.2.682 .7 Weighted Average of factors that influence customer Table 4.05.6. (2sided) .Table 4.117 1.9 . So H0 is accepted. Sig.575 Interpretation: The coefficient of chi-square test is 0.5 37.

4.8 35.9 16.1 Weighted average of factors (Source: primary data) Interpretation: From the study conducted.7 21.2. it is clear that the price is the major important factor that influences passenger in purchasing confectionery goods.7 34.5 .2.5 35.2.2 35.6 27.6 29.5 32. It is seen that ingredients of the chocolates are less important for the passengers.7 21.8 35.8 Weighted Average of promotional offers preference Table 4.7 26.6 Price Taste Ingredients Package Size Discount Brand Fig 4. Discount on the products are also another factor that influence a customer.Size Discount Brand 29.6 40 35 30 25 20 15 10 5 0 37.8 Weighted Average of promotional preferences of customers Promotions Scratch and Win Free Gift Discount Buy One Get One Free Lucky Draw Super Value Packs Weighted Average 27 30.

2 Buy One Get One Free Lucky Draw Super Value Packs Fig 4.2 33.2. buy one get one free and super value packs are most preferred promotional schemes and luck draw and scratch and win are least preferred.2. 4.5 33.9 Weighted average of satisfaction level Services Ambience Location Customer service Display Stock Availability Weighted Average 33.3 13.5 30.7 35.6 33.40 35 30 25 20 15 10 5 0 Scratch and Win Free Gift Discount 27 34.7 35.2.2 Weighted average of Promotional preference of customers (Source: primary data) Interpretation: From the study it is evident that discount.5 26.9 Weighted Average of the satisfaction level Table 4.9 .

40 35 30 25 20 15 10 5 0 Ambience Location Customer service Display Stock Availability 13.9 33.2 33.5 33.6 33.3

Fig 4.2.3 Weighted average of satisfaction level (Source: primary data) Interpretation: From the study it is evident satisfaction level for ambience, location, customer service and display are high. The satisfaction level of stocks available is the least.

CHAPTER 5 FINDINGS

CHAPTER 5 Findings
5.1 Major findings
 More of the respondents have visited Cochin more than 6 times.11% have visited cochin four to six times, 5% two to three times and 3% once. 

More (64%) of the passengers visited duty free every time they visit cochin. 21% of samples visited more than three times, 11% of the samples visited two to three times and 4% of samples have visited only once.

Among the samples selected for study, 100% of the passengers prefer to buy confectionery goods from duty free shop.

 

Among the samples selected for study, 56% prefer to buy liquor.

Among the samples selected for study, 25% of passengers prefer supermarkets products.

   

Among the samples selected for study, 4% prefer to buy electronics.

Among the samples selected for study, 4% of respondents prefer to buy perfume.

Among the samples selected for study, 3% of them prefer to buy tobacco.

The product categories like souvenirs, toys and gold are not preferred by anyone of the samples selected.

From the study it was evident that the average amount spent on confectionery is Rs 1,081.

From the study it was evident that the average amount spent on liquor is Rs 2525.

 From the study it was evident that the average amount spent on supermarkets by total respondents of 29 is Rs 718.  It is evident that majority of customers (95%) buy confectionery for gifting clients and 3% each for kids and gifting clients. 95% of respondents consider taste and brands as an important factor. sixth ranking for Milky Way and seventh for Bounty.  From the study it was evident that the average amount spent on electronics is Rs 1.478. Snickers fourth.  From the samples. From the study it was evident that the average amount spent on perfumes by total respondents of 4 is Rs 761. most of the people (99%) consider price and discount as an important factor.  Among the samples selected for study.  The customers ranked Galaxy first. Twix third.  It is evident from the study 84% of customers prefer to buy candies. 112 respondents like super value packs and buy one get one free promotional schemes than other promotions. 10% chocolate bars and 6% prefer chocolate gift packs.  From the study it was evident that the average amount spent on tobacco by total respondents of 3 is Rs 336. . Mars fifth. 90% and 80% of passengers give importance to package and size also whereas 98% does not consider ingredients as an important factor that influences them. Ferraro second.  Among the samples selected 85% of passengers do not agree that prices are reasonable at Cochin duty free.

age and occupation. age and occupation.  The study revealed that 87% of the customers are not satisfied with the stock available.   There is association between the amount spent on liquor and respondent‘s age. There is association between amount spent on supermarkets and respondent‘s occupation. .   There is association between amount spent on liquor and respondent‘s occupation.  There is no significant association between the preference of confectionery and respondent‘s gender.    86% of respondents have chosen discount as next promotion scheme. From the study it is evident that 104 respondents are satisfied with the ambience and customer service of the employees.  The study revealed that 51% of the customers prefer to get information about the promotions through in-flight magazine.  From the study it is proven that there is association between the preference for liquor and respondent‘s gender. 6% mobile phone alerts and 1% website. Another 85% also prefer free gifts with product purchases. 48% prefer television ads.  The study revealed that 106 and 107 respondents are satisfied with the location and the display of the products respectively. Only 55% of respondents have preferred scratch and win and lucky draw. There is association between the amount spent on confectionery and respondent‘s occupation.

ingredients.  It is shown from the study that passengers are least satisfied with the stocks available in the Duty Free. From the weighted average of the factors that influence customers such as price. package.  The weighted average of the promotional schemes reveals that buy one get one free and super value packs are more preferred promotional offers by the consumers. . taste. discount and brand it was revealed that customers are influenced by the price of the products more than any other factors.  From the study it was also shown that discount on confectionery items is another most important factor that influence the buyers. size.

CHAPTER 6 SUGGESTIONS AND CONCLUSION .

Licensing agreement with suppliers to develop exclusive products for travelling customers.   The management can make avail of other confectionery brands like Ferraro which is the second most demanded brand. Developing impulse inducing promotional displays to increase the frequency of visit. Currently no offers are promoted in the confectionery category. Toblerone is another brand that can be made available which is consistently demanded by the consumers. Increasing the brands under candies category will increase the revenue.CHAPTER 6 Suggestions and Conclusions 6. The suppliers can be exerted for promotions like buy one get one free and super value packs for confectionery goods which are most preferred by the passengers to increase the sales. Can promote the products with exclusive ads that customers can find only while travelling.1 Suggestions    The retail section can be more competitive than domestic market due to the absence of the duty and tax. .     Promoting the brands and duty free shop through in-flight magazine which induces the impulse buying behavior of the customers. Passengers visiting duty free are not satisfied with the stocks that are available.

The study finds that the consumers are more influenced by the price of the products. The customers also seek variety in brands available under confectionery. The new age traveler is being pampered in every possible way. The study tries to find out the opinion of customers about their preferences and factors influencing them in purchasing confectionery goods.6. This study was undertaken with a limited sample of 115 numbers concentrating on the customers visiting the duty free at the arrival terminal. Airport retail environment offers various brands of luggage. Destination food and souvenirs is another specialized segment. It is very important to study the consumer buying pattern. . and for this the credit goes to the newly emerging trend of airport retail. An extensive research into the airport retail environment will bring more insights to the buying behavior of the consumers while travelling. While there have been completed extensive research on buying behavior in most of categories like confectionery. people are keen on doing a lot simultaneously. The smart and intelligent traveler today is no more an ordinary man as he wants nothing but the best. tobacco. clothing and accessories that obviously have a high sensitivity and appeal. Today every premium brand in India is keen on participating in the airport's retail zone. And that is what the retail stores are working for at the airports in India. To satisfy the customers the retailers must identify the preferences of the air travelers. In today's busy schedule while keeping pace with the changing times.2 Conclusion Airports in India are one of the most promising sectors for retail development. liquor etc little have done in travel retail environment. The objective of the study is to understand the consumer preferences of airport retailing products with special references to confectionery goods at Cochin Duty Free Shop.

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