Professional Documents
Culture Documents
AGRIBUSINESS MANAGEMENT
By
USHA V.
ii
ADVISORY COMMITTEE
DHARWAD
JULY, 2007
(H.S. VIJAYAKUMAR)
MAJOR ADVISOR
Approved by :
Chairman :
Members :
_________________________
(H.S. VIJAYAKUMAR)
1. _________________________
(V.R. KIRESUR)
2. _________________________
(S.B. MAHAJANASHETTI)
3. _________________________
(R.A. YELEDHALLI)
CONTENT
Sl.No.
Chapter Particulars
CERTIFICATE
ACKNOWLEDGEMENT
LIST OF TABLES
LIST OF APPENDICES
INTRODUCTION
REVIEW OF LITERATURE
2.1 Awarencess of consumers
2.2 Factors influencing consumption
2.3 Brand loyalty
2.4 Brand composition
2.5 Demand estimation
METHODOLOGY
3.1 Description of study area
3.2 Sampling design and data collection
3.3 Analytical tools
RESULTS
4.1 Awareness of consumers towards Instant Food Products
4.2 Factors influencing the consumption of Instant Food Products
4.3 Brand loyalty of consumers of Instant Food Products
4.4 Brand composition of Instant Food Products
4.5 Demand potential for Instant Food Products
DISCUSSION
5.1 Awareness of consumers towards Instant Food Products
5.2 Factors influencing the consumption of Instant Food products
5.3 Brand loyalty of consumers of Instant Food products
5.4 Brand composition of Instant Food products
5.5 Demand potential for Instant Food Products
SUMMARY AND POLICY IMPLICATIONS
REFERENCES
APPENDICES
ABSTRACT
List of Tables
Table
No.
Title
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
Table
No.
Title
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
List of Appendices
Appendix
No.
Title
1.
2.
1. INTRODUCTION
The word 'food' refers to the chemical substances taken into the body in order to keep
the body in a healthy and active condition. The body requires food for growth, repair and
replacement of its worn-out tissues. Hence, food has to provide the required raw material,
energy and other regulating substances, like vitamins and minerals, for the smooth
functioning of the body, besides meeting the calorific requirements like carbohydrates,
proteins, fats, etc., India is the worlds second largest producer of food next to China and has
the potential of being biggest industry with food and agricultural sector contributing 26 per
cent to Indian GDP. It has the capacity of producing over 600 million tons of food products
every year; it is likely to be doubled in next ten years. Food accounts for the largest share of
consumer spending. Food and food products account for about 53 per cent of the value of
final private consumption. This share is significantly higher than in developed economies,
where food and food products account for about 20 per cent of consumer spending
(www.tata.com). The average monthly per-capita consumer expenditure (MPCE) was Rs. 511
for rural India, which comprised of Rs.305 for food and Rs. 206 for non-food commodities. For
urban population, it is Rs. 1060, which comprised of Rs.441 for food and Rs. 619 for non-food
items. There was a decline in the share of food in total expenditure that is 54 per cent in rural
areas compared to 64 per cent in 1987-88 and 42 per cent in urban areas compared to 56
percent during 1987-88 (National Sample Survey Organization, GOI).
In India, majority of food consumption is still at home. Nevertheless, out-of-home food
consumption is increasing due to increase in urbanization, breaking up of the traditional joint
family system, desire for quality, time which translates into an increased need for
convenience, increasing number of working women, rise in per capita income, changing
lifestyles and increasing level of affluence in the middle income group had brought about
changes in food habits. In the last two decades, the share of urban population has increased
from 23.3 per cent in 1981 to 27.8 percent in 2001. During the same period the female work
participation rate had increased from 19.7 to 25.7 per cent. The per capita income increased
from Rs.7, 328 in 1980-81 to Rs.10, 306 in 2000-2001. The change in food habits was evident
from the growth of food processing industries.
Indian Food Processing industry
The food processing industry in India is one of the largest in terms of production,
consumption, export and growth prospects. Important sub sectors in food processing
industries are fruit and vegetable processing, fish-processing, milk processing, meat and
poultry processing, packaged/convenience foods, alcoholic beverages and soft drinks and
grain processing.
According to Ministry of Food Processing Industries, the size of the food processing
industry was about Rs.315, 000 crores and included Rs.99, 000 crore of value added
products. About 300 million upper and middle class people consume processed food; 200
million more consumers are expected to shift to processed food by 2010. The food processing
industry accounts for 13.5% of the countrys industrial output. It generates 18% of gross
domestic product and employs about 19% of the industrial labour at national level. Products
like papad, pickle and spice mixes have been hugely successful in recent years. The size of
this particular segment alone is estimated at about Rs 100 crore. Rabo India Finance had
projected that the Indian food processing industry would increase to Rs 11,500 billion by
2014-15. Processed products like chapaties, subzies and portion packs of concentrated
curries are fast becoming regular diets, especially for young couples. The product range
includes foods like puri-bhaji and dosa-vada. Processed food products like pickles,
chutneys, juices and curry powders had made their entry into the kitchens of most middleclass households a long time back. There are a whopping 15 crore middle class individuals,
of which 60% are below 35 years a segment that is increasingly depending on processed
foods. This throws open an ideal opportunity for small entrepreneurs who are eyeing this
segment for making a fortune.
Over the past five decades, India has taken giant steps in producing food grains, milk,
fruits and vegetables. The production of raw food materials is estimated to worth over Rs
60,000 crore. After primary, secondary and tertiary processing, the total size of the industry is
estimated to be as high as Rs 1,10,000 crore. This cost overrun reflects the opportunities
products had provided high quality food choices, which would have been inconceivable to
ancestors. Instant food mixes formed a range of convenience food for households, being easy
to use without terminal processing and women found it very convenient to use. It helped them
to save time and effort and relieved them of the tedious jobs of collecting various ingredients,
cleaning and sorting them and preparing food. Modern homes also do not offer the facilities
necessary for traditional processing and hence these products gained instant acceptance.
These instant mixes can be used for preparations of various snack foods, sweets and
preparations with rice. The sweet preparation included Gulab jamoon mix, Payasam mix,
Badham mix, Purfi mix; the snack mixes included bajji mix, vada mix, bonda mix and the
preparations with rice includes puliogare mix, tomato rice mix, lemon rice mix and coconut
rice mix, Bisibele bath mix, etc., The instant mix market in India was approximately Rs.150
crore during the year 2003 and at the end of 2004, it was around Rs.350 crore. And by March
2007 the size of the Indian Ready to eat market was approximately Rs.600-700million
(Indiantelevision.com. March 10, 2007).
Generally, food is prepared depending on the habits, tastes, social status, economic
factor, availability, traditions, habitats, etc., of the people of that region. The most sought after
in the present age are the instant/ready-to-eat foods. They are very popular in the Western
region of the world. Even India is being influenced by these instant foods.
Main reasons for popularity of Instant Food Products
1. Emergence of Industrial society (i.e., metropolitan cities) Development of the metropolitan
cities due to increase in population, emergence of industries, evolution of various new
factors, time factor, etc., created the need for instant foods in the market.
2.
3. Womenfolk taking to job- As the literacy rate is increasing among women, a large number
of them in our country are taking up jobs to setup their own status in the society and to
use the extra income generated. These are creating the need for ready-to-eat foods.
4. Emergence of nuclear families- Earlier times, a single family consisted of many people i.e.,
a group of several nuclear families were living in a single place. Hence larger quantities
of the food were used to be prepared. But as these joint families started disappearing
due to various reasons, each single family started using these instant foods in order to
save time and energy.
5. Prices of raw materials- This forms one of the major factors for the use of instant foods in
the present world. As the prices of some of the raw materials are continuously increasing,
the purchases of these foods formed more economical.
6. New products- As there are different new products coming up in the markets daily that are
very cheap and easy for using and preparing, the popularity of instant foods is increasing.
7. Drudgery of work- In order to award the heavy laborious work like grinding manually and
other drudging works, people opt for instant foods, which are easy to prepare and eat.
8. Convenience- Instant foods are convenient to prepare and are economical. This increased
its usage by the people as it saves the time, energy and money.
9. Increasing income- Due to establishments of multi-national companies in India, the lady of
the house also started working, because of which there is no time to prepare food at
home. Hence this created the need to opt for instant foods.
10. Standard of living- The standard of living is also changing due to raise in income level,
influence of western countries, more global trade, traveling etc., Hence, people are
changing their taste to instant foods more compared to the old traditionally prepared
foods.
11. Media- In the modern era, the media, particularly electronic and print media, are playing
an important role in creating awareness of the products manufactured and released in
the market.
The above factors are responsible for the popularity of instant food products in Indian
market. The marketer should see to it that the instant food is available to the consumers
without any difficulty at competitive rates. The products should be provided to consumers by
keeping in mind as when they want, where they want and the manner in which they want.
These methods help in increasing the sales of the product with good feedback from the
customers and creating a niche for instant foods in the market.
Though there are so many instant foods available in the market, their popularity is
increasing in a slow pace, especially in the rural markets, due to lack of awareness compared
to larger cities where they are widely available and also more popular. For the convenience
Instant Food Products are classified into three categories, which suits to rural consumers that
involves less cost. One product from each category is selected for the study such as
1. Cereal based products. e.g. Dosa/Idli mix
2. Fruit and Vegetable based products. e.g. Pickles
3. Spice based products. e.g. Sambar masala
Problem focus
Several firms had been engaging in production and marketing of instant food
products. Hence, the consumers had greater options to choose from. In this context, a study
on consumer behaviour was deemed to be important to understand the buying behaviour and
preferences of different consumers. Understanding the consumer behaviour would help the
firms in formulating strategies to cater to the needs of the consumer and thereby increase
their market share. Consumers taste and preference were found to change rapidly, especially
in a dynamic environment. Keeping in view the importance of consumer behaviour and
consumption pattern, the present study was undertaken with the following objectives.
Objectives of the Study
The specific objectives of the study were;
i.
ii.
iii.
iv.
v.
2. REVIEW OF LITERATURE
In this chapter, research works done in the past regarding awareness, factors
influencing the consumption, brand loyalty, brand composition and demand estimation of food
products has been reviewed and presented as under.
2.1 Awareness of consumers
2.2 Factors influencing consumption
2.3 Brand loyalty
2.4 Brand composition
2.5 Demand estimation
2.1
AWARENESS OF CONSUMERS
Brown et al. (2000) reported that the need for effective nutritional education for young
consumers has become increasingly apparent, given their general food habits and behaviour,
particularly during adolescence and analyzed that the interaction between young consumers'
food preferences and their nutritional awareness behaviour, within three environments (home,
school and social). The results indicated that the perceived dominance of home, school and
social interaction appears to be somewhat overshadowed by the young consumers, while
developing an 'independence' trait, particularly during the adolescent years. The authors
suggested that food preferences are often of a 'fast food' type and consequently the food
habits of many young consumers may fuel the consumption of poorly nutritionally balanced
meals. While young consumers were aware of healthy eating, their food preference behaviour
did not always appear to reflect such knowledge, particularly within the school and social
environments.
Aaker (2000) regarded brand awareness as a remarkably durable and sustainable
asset. It provided a sense of familiarity (especially in low- involvement products such as
soaps), a sense of presence or commitment and substance and it was very important to recall
at the time of purchasing process. Apart from the conventional mass media, there were other
effective means to create awareness viz., event promotions, publicity, sampling and other
attention-getting approaches.
Yee and Young (2001), aimed to create awareness of high fat content of pies,
studied consumer and producer awareness about nutrition labeling on packaging. For this,
seven leading pie brands were analyzed for fat content and are ranged from 7.1 to 19.2% fat.
Potato topped or cottage pies had the lowest fat content (7.1-9.2% fat). Most pies did not
display nutritional labeling on packaging. Over half of the consumers (52%) who responded to
the survey (42% response rate) were aware of the campaign. The study was successful at
raising consumer awareness about the high fat content of pies and influencing the food
environment with a greater availability of lower fat pies. It is possible to produce acceptable
lower fat pies and food companies should be encouraged to make small changes to the fat
content of food products like pies. Potato topped pies are lower in fat and are widely
available. Regular pie eaters could be encouraged to select these as a lower fat option.
Chen (2001) expressed a different thought on brand awareness that it was a
necessary asset but not sufficient for building strong brand equity. In his view, a brand could
be well known because it had bad quality.
Beverland (2001) analyzed the level of brand awareness within the New Zealand
market for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi
fruit, New Zealand was studied. The implications of the findings for agribusiness in general
using the data collected from surveys of kiwi fruit consumers (n=106) outside three major
super market chains in Auckland, New Zealand, the results suggested that the level of brand
awareness for ZESPRI is low among consumers. It is indicated that brand awareness could
be increased through a relationship-making programme involving targeted marketing and
supply chain management.
Nandagopal and Chinnaiyan (2003) concluded that the level of awareness among the
rural consumers about the brand of soft drinks was high which was indicated by the mode of
purchase of the soft drinks by Brand Name. The major source of brand awareness was word
of mouth followed by advertisements, family members, relatives and friends.
Ramasamy et al. (2005) indicated that, the buying behavior is vastly influenced by
awareness and attitude towards the product. Commercial advertisements over television was
said to be the most important source of information, followed by displays in retail outlets.
Consumers do build opinion about a brand on the basis of which various product features
play an important role in decision making process. A large number of respondents laid
emphasis on quality and felt that price is an important factor while the others attached
importance to image of manufacturer.
Singh et al. (1995) studied factors influencing consumer preferences for milk. They
were milk quality, convenient availability, supply in quantity desired, flavour, colour, freshness
and mode of payment showed higher levels of consumer satisfaction.
Study of Sundar (1997) revealed that, grocery department of Saravana Bava
Cooperative Supermarket, Cuddalore was enjoying favorable images of consumers in the
attributes, such as, equality of price, behaviour of sales persons, moving space, location,
correctness of weight, packaging of goods, number of sales persons and convenient
shopping hours. At the same time, the image is weak in the attributes, such as, quality of
goods, availability of range of products, variety of goods, acceptance of returns, credit facility,
door delivery and in sales promotional measures.
The study undertaken by Sheeja (1998) in Coimbatore district considered the quality
aspects like aroma, taste, freshness and purity as the major factors deciding the preference
for a particular brand of processed spices.
Amitha (1998) studied the factors influencing the consumption of selected dairy
products in Bangalore city. The results of the study revealed that, income and price
significantly influenced the consumption of table butter. Price had a negative impact and
income a positive impact on consumption.
Srinivasan (2000) reported that, consumer with higher educational level was found to
consume more processed products. The quantities of processed fruit and vegetable products
were consumed more in high-income group. The tolerate limit of price increase identified was
less than 5%, any price change above this limit, would result in discontinuance of the use
processed product. Consumers preferred processed products because of convenience of
ready to eat form.
Kamalaveni and Nirmala (2000) reported that, there is complete agreement between
ranking given by the housewives and working women regarding the reasons promoting them
to buy Instant food products. Age, occupation, education, family size and annual income had
much influence on the per capita expenditure of the Instant food products.
Nandagopal and Chinnaiyan (2003) conducted a study on brand preference of soft
drinks in rural Tamil Nadu, using Garrets ranking technique, to rank factors influencing the
soft drinks preferred by rural consumer. They found that, the product quality was ranked as
first, followed by retail price. Good quality and availability were the main factors, which
influenced the rural consumers of a particular brand of a product.
Prell et al. (2002) conducted a study to examine the factors influencing adolescents'
fish consumption in school. Fish consumption was assessed by observation on 4 occasions.
Attitudes towards the fish, friends' behaviour and perceived control were important predictors
of the intention to eat fish and barriers for fish consumption were a negative attitude towards
both smell and accompaniments and fear of finding bones. But the eaters of fish were more
satisfied with the taste, texture and appearance of the fish and rated safety significantly higher
than those who resisted. They also thought to a greater extent that the fish was healthy and
prepared with care. The results suggested that, it is important to alter dishes so that they
appeal to children and to pay attention to the whole meal, accompaniments included. Finally it
was recommended to convey the pupils that the fish served would be healthy and prepared
with care.
The study conducted by Shivkumar (2004) showed that the consumer, irrespective of
income groups, was mainly influenced to purchase by the opinions of their family members.
Consumers are influenced by the dealers recommendation, fallowed by advertisement.
Nagaraja (2004) opined that, buying behaviour is very much influenced by experience
of their own and of neighbour consumers and his own family. The involvements of his own
family members were exerting maximum influence on his purchases. Above all, the quality of
the product and its easy availability were the primary and the vital determinants of his buying
behaviour. Consumers were influenced by touch and feel aspect of any promotional activity.
Kubendran and Vanniarajan (2005) elicited that; the change in consumption pattern
was due to changes in food habits. If income and urbanization increase among consumers,
the percentage of income spent on consumption increases. The urban consumers preferred
mostly branded products compared to rural consumers. The most significant factors
influencing buying decisions were accessibility, quality, regular supply, door delivery and the
mode of payment.
comparatively low, the farmers would naturally prefer to low priced brand. Otherwise farmers
would naturally continue to purchase the same brand.
Raj Reddy and Pruthviraju (1999) studied about buying motives of rural consumers
about seeds and different sources of information about brands with regard to seeds. It was
found that factors influencing brand loyalty of farmers were dealers suggestions, quality
product and co-farmers. The problems faced by farmers were supply of seed or poor quality
seed, higher price, adulteration and irregular supply of seeds.
Burke (2001) created a brand equity index comprising of three components, best
described as brand equity molecule. This is overarching device of retaining and attracting
customers. The three atoms, which embedded to molecule, were image, value and loyalty.
Image and value perceptions pull in new customers, while loyalty retains customers.
White (2001) examined the factors motivating US specialty food and beverage buyers
to make purchases via the Internet. More than half (55.6%) of the respondents who
purchased items available locally and 39% of the respondents who purchased items that were
not available locally cited convenience as a motivator. Nearly one-third of all respondents
indicated that their purchase was motivated by product-related factors, such as, brand loyalty,
previous experience with a retailer, product selection, perceived quality and/ product
experimentation. Price was of relatively little importance to respondents, with 22% citing it as
a purchase motivator.
Kamenidou (2002) presented the findings on the purchasing and consumption
behaviour of Greek households towards three processed peach products: canned peaches in
syrup, juice and peach jam. The results revealed that 47.5% of the households purchased
canned peaches in syrup, 67.4% purchased peach juice and 42.6% purchased peach jam.
Reasons for such purchase were satisfactory taste and qualities and households' perception
that they are healthy products. The results also indicated that the consumption quantities
were considered low, while households usually purchased the same brand name, meaning
that there is a tendency for brand loyalty.
Price and Connor (2003) identified the determinants of coupon values at the brand
level within the context of a complex marketing programme. The results revealed that, higher
brand prices caused coupon values to rise, supporting the price discrimination hypothesis.
Coupon values fall with in-store displays and more intense advertising, but rise when
couponed products are featured in store flyers. Discount levels are positively related to brand
market share and the size of discounts redeemed for rival cereals. Coupon values fall with
increasing brand loyalty among RTE cereal purchasers. Cereal prices are positively affected
by coupon values, advertising expenditures, input costs and the prices of competing brands.
Nick Wreden (2004) in his book entitled Fusion branding: how to forge your brand or
the future, reveals that, branding has a little secret; it doesnt know how to count. But the
author mentioned the measure of brand is a pseudo-measurement, i.e., brand equity. It can
be used to overcome the inability of traditional accounting to measure intangible strategic
assets, like perceived quality, brand and channel resources, rose to power point fame in
marketing for several reasons. It appeared to quantify intuitive recognition about the value of
the brands. It incorporated two brand strengths its standing with purchases and perception
among prospects and customers. Brand strength provides a means to rank winners and
losers in branding wars.
Rajarashmi and Sudarsana (2004) revealed that, almost all the sample respondents
preferred branded products and if their favorite brand is not available in the retail shop, they
will go for another store and their favorite brand. If it is not available in the market, the
respondents are ready to postpone their decision.
Kim-Hyunah et al. (2005) analyzed the relationship among brand equity factors
(brand awareness, brand image, brand preference and brand loyalty) and suggested a
strategy for brand management in contract food service management companies. He
concluded that brand awareness has positive effect on brand image and brand preference
and recommended that the contract food service companies should focus on improving brand
awareness as a brand strategy. In addition, brand preference and brand image have
significant positive effects on brand loyalty. Thus, the companies should strive to strengthen
brand loyalty through building brand preference and brand image. Brand loyalty promotes
more customer visits, which is directly related to profitability of contract food service
management companies, the authors concluded.
Al-Weqaiyan (2005), using the attitude behaviour model, conducted a cross-national
study of purchase intentions of fast-food meals in Kuwait, where creating and maintaining a
strong brand loyalty is essential to long-term marketing success. He reported that, repurchase
intent is a function of four sets of independent factors such as (1) Attitude that results mainly
from earlier experiences with the brand;(2) Perceived barriers to switching from the present
brand; (3) tendency to seek variety to break the boredom resulting from engaging in
consistent brand choices; and (4) cultural differences represented in some traits of the
national character. The results revealed that factors affecting repurchase intents vary across
the two cultures.
Narang (2006) opined that, a buyer does not stick to one brand in case of food
purchasing. They should be able to recall different brand names when they go for purchase.
Repetitive advertising can be used to promote brand recall. The product should be associated
with style and trend, so that it appeals to the youth and the brand name should be developed
as a fashion statement. Promotional schemes such as discount and free offers with purchase
are suggested to increase rates.
Vincent (2006) elicited that quality is an important factor that draws consumers
towards branded products. Branded products are accepted as good quality products. People
do not mind paying extra for branded products, as they get value for money. Media is a key
constituent in promoting and influencing brand. A childs insistence affects familys buying
behavior. Children are highly aware and conscious of branded items. Although unbranded
products sometimes give same satisfaction as branded products, customers would still prefer
to purchase a branded product.
per cent) (rural 26%) and others (6 per cent0 (rural 1%). The method of physical distribution
played very vital role in companys success and failure in the market. Transportation is among
the major functions of physical distribution. Transport adds time and place utility for the
product.
Kubendran and Vanniarajan (2005) founded that, the change in consumption pattern
is due to changes in food habits. If income and urbanization increase among consumers, the
percentage of income spent on consumption increases. The urban consumers prefer mostly
branded products compared to rural consumers. The most significant factors influencing
buying decisions were accessibility, quality, regular supply, door delivery and the mode of
payment.
Ramaswamy et al. (2005) studied consumer behaviour towards instant food products
in Madurai, the second largest city in Tamil Nadu and observed that consumers do build
opinion about a brand on the basis of which various product features play an important role in
decision making process. A large number of respondents (78%) laid emphasis on quality and
76% on price which is an important factor, while 64% of respondents attached importance to
the image of the manufacturer and 50% considered packaging as an important factor and an
equal percentage (50%) felt longer shelf life influenced them.
Banumathy and Hemameena (2006), while studying consumer brand preference with
respect to soft drinks, found that after globalization most of the consumers like the
international brands such as Pepsi and coco-cola. Consumers preferred a certain brand or a
particular drink mainly because of its taste and refreshing ability.
Vincent (2006) studied brand consciousness among children. The study showed that
children start to recognize product brands at an early age, which influence family buying
behaviour. It is helpful for plants in making purchase decision of durable goods for the family.
differently. It was concluded that the cereal consumption declined over the years in urban
India, signaling shift in consumers taste and preference away from cereals.
Pagire and Shinde (1999) conducted a study on the demand for and supply of grapes
in Maharashtra, considering recommendation of 120 gms of fruits per capita per day by the
ICMR (Indian Council of Medical Research). The demand (requirement) for grapes in the
state was estimated for the year 2001 AD for the projected population of the state (8.68
crores). The estimated requirement was 93.72 thousand metric tonnes at the rate of 20 gms
per capita per day and it was 140.62 thousand metric tonnes at the rate of 30 gms per capita
per day for the state.
Selvaraj and Sundavaradarajan (1999) undertook a study of demand for and supply
of fruits and vegetables in Tamil Nadu, using time series data with the assumption of 1.30 per
cent growth in population for 2000 and based on minimum per capita requirement of 32.85
kg/year of fruits and 103.66 kg/year of vegetables. These were estimated at 20.40 lakh
tonnes, respectively for 2000 AD. Nearly 10.50 per cent of annual production as waste due to
lack of preservation, one percent of annual production for processing, 20 percent for postharvest losses and one percent for industrial processing were included in estimating the total
requirement. The study suggested that, increasing the possible area through wasteland
management for growing fruit trees and vegetables could arrest the low production. The
horticultural farms could be made to stabilize productivity through technological breakthrough.
Paroda et al. (2000) projected household and domestic demand for food products
between the years 2000 and 2030 in different south Asian countries. It was observed that the
consumption of cereals would decline with the increasing share of fruits, vegetables, milk,
meat, eggs and fish in the diet. The household and domestic demand for food grains was
projected to grow by 1.2 percent, by 2030. In view of the vast agricultural potential remaining
under-realized, the study suggested production-enhancing strategies.
Herrmann et al. (2001) aimed at explaining theoretical aspects of pricing consumer
behaviour and to analyze them with reference to groups of breakfast products and results
indicated that, demand was greatest for products with a long storage life, such as coffee. It
appears likely that consumers bought some items only during special offer periods. He found
there was very strong consumer reaction to price changes for jams and breakfast cereals. An
active pricing policy, thus, represents a central marketing instrument in food retailing; This is
consistent with strong consumer reaction to price changes.
Hajarika and Sarma (2001) projected demand for and supply of rice in Assam for
2010-11, by using secondary data from various sources for the period of 1980-81 to 1994-95
for the six agro-climatic regions or zones. The study estimated that the aggregate demand for
rice in 2010-11 for the state as a whole would be 63.84 lakh tonnes and the production or
supply of rice in the state would be 45.17 lakh tonnes. The study also observed that the state
would face a deficit of 18.67 lakh tonnes of rice in 2010-11 with a demand supply gap of
29.24 per cent.
Banumathy and Hemameena (2006) in their study suggested that, the companies
manufacturing soft drinks must manufacture high quality soft drinks in order to compete with
soft drinks of multinational companies (MNC). The MNCs can promote demand by effective
advertising, improving quality by keeping a check on the taste and price. They can adopt
innovative improvements in the production and marketing of soft drinks in order to compete
with the international brands. Study also revealed that there is no association between age,
education, occupation and choice of brands but there is association between monthly income
and brand preference and also there is close relationship between price and satisfaction level.
3. METHODOLOGY
This chapter presents a comprehensive view of the methodology adopted for the
present investigation undertaken to know the awareness of consumers about instant food
products, factors influencing consumption of instant food products, brand loyalty, brand
composition in choosing the particular brands in the study area and to predict the demand for
instant food products. This chapter covers the following aspects:
3.1 Description of study area
3.2 Sampling design and data collection
3.3 Analytical tools
Monthly family expenditure on food and non-food items in general and instant food
products in particular.
3.
Information regarding the consumption pattern of instant food products and also
regarding decision making relating to Instant Food Products.
4.
The type of instant food products consumed and their source viz., branded,
unbranded and home made; Satisfaction level of the respondents regarding their
present brand and awareness about various brands of instant food products, etc
5.
Purchase pattern of instant food products and factors influencing the purchase.
Secondary data
The secondary data on location, demography and other details about the study area
were collected from District Statistical Office. The survey was undertaken during the month of
February-March 2007.
Demand potential
The total potential demand for the Instant Food Products in Kolar district was
estimated by the users population and calculated per capita consumption of instant food
products by the randomly selected households.
4. RESULTS
The results of the study are presented under the following headings.
4.1 Awareness of consumers towards Instant Food Products
4.2 Factors influencing the consumption of Instant Food Products
4.3 Brand loyalty of consumers of Instant Food Products
4.4 Brand composition of Instant Food Products
4.5 Demand potential for Instant Food Products
of them were under agriculture and allied activities, 25 per cent were housewives and 12.50
per cent each were self-employed or business and employed in the taluk.
In Mulbagal taluk, the average monthly family income of IG1, IG2, IG3 and IG4 was
Rs.2,312, RS. 4300, Rs.6894 and Rs.15,500 respectively. The average family size was 4.12,
5.05, 5.52 and 6 members in IG1, IG2, IG3 and IG4 respectively. The average age of
respondents of IG1 was the highest (37.93 years), followed by IG4 (34.16 years), IG3 (33.42
years) and IG2 (32.31years). The average education in the taluk was highest in IG4 (14.2
years) subsequently in IG3 (10.2 years), IG2 (4.2 years) and IG1 (2.3 years). However, the
average numbers of children in the households were 2.12, 2.15, 2.26 and 2.5 in IG1, IG2, IG3
and IG4 respectively. The classifications of sample households according to their family type
were shown that 33.33 per cent were joint in IG4, 31.57 per cent in IG3 and 10.52 per cent in
IG2. However, cent per cent of the families were found to be nuclear in IG1 but it was 89.47
per cent in IG2 followed by 68.42 per cent in IG3, 66.67 per cent in IG4. The percentages of
sample households under food habit classification as vegetarian and non-vegetarians in IG1,
IG2, IG3 and IG4 were 18.75 per cent and 81.25 per cent; 21.05 per cent and 78.94 per cent;
15.78 per cent and 84.21 per cent; 16.67 per cent and 83.33 per cent respectively.
Under the occupation classification, agriculture and allied were 87.50 per cent,
housewives 12.50 per cent in IG1. In case of IG2, about 47.36 per cent were found in
agriculture and allied activities followed by 31.57 per cent of housewives, 15.78 per cent
business/self-employed and 5.26 per cent employed. About 63.15 per cent of housewives
followed by 21.05 per cent agriculture and allied, 10.52 per cent employed and 15.26 per cent
business/self-employed were found in IG3. In IG4, 66.67 per cent were under agriculture and
allied activities, 16.67 per cent each were housewives and employed.
In Gudibande taluk, the average monthly family income of IG1, IG2, IG3 and IG4 was
Rs. 2,246, Rs.4,045, Rs.7,000 and Rs.14,750 respectively. The average family size was 4.33,
5.29, 6.12 and 5 members in IG1, IG2, IG3 and IG4 respectively. The average age of
respondents of IG2 was the highest (34.67 years), followed by IG1 (33.87 years), IG4
(33years) and IG2 (32.76 years). The average education in the taluk was highest in IG4 (12.3
years) subsequently in IG3 (10 years), IG2 (4 years) and IG1 (2.2 years). The average number
of children in the households was 2.13, 2.21, 2.53 and 2.25 in IG1, IG2, IG3 and IG4
respectively. The classification of sample households according to their family type shown
that in 8.33 per cent in IG2, 41.17 per cent in IG3 and 25 per cent in IG4 were joint families and
no joint families were found in IG1. However, the nuclear families were highest in IG4 (75 %)
followed by 58.82 per cent in IG3 and 31.67 per cent in IG2. The percentage of sample
households under food habit classification as vegetarian and non-vegetarians in IG1, IG2 and
IG3 were 13.33 per cent and 86.67 per cent; 8.33 per cent and 91.67 per cent; 5.88 per cent
and 94.11 per cent respectively, whereas in IG4, all the respondents were non-vegetarians.
Under the occupation classification, agriculture and allied were 73.33 per cent,
housewives were 20 per cent and 6.67 per cent in IG1. In case of IG2 about 54.16 per cent
were found in agriculture and allied activities followed by 33.33 per cent housewives and 8.33
per cent business/self-employed. In IG3, 58.82 per cent of housewives followed by 35.29 per
cent agriculture and allied, 5.88 per cent each in employed and business/self-employed were
found in IG3. In IG4, 50 per cent were under agriculture and allied activities and 25 per cent
each were business/self employed and employed in the taluk.
Taluks
Households
Income/Month
Income
Groups
Overall
(n=180)
Bangarpet
(n=60)
Mulbagal
(n=60)
Gudibande
(n=60)
Below Rs.2,500
IG1
15 (25.00)
16 (26.67)
15 (25.00)
46 (25.56)
Rs.2501 to 5000
IG2
21 (35.00)
19 (31.67)
24 (40.00)
64 (35.56)
Rs.5001 to 10,000
IG3
16 (26.67)
19 (31.67)
17 (28.33)
52 (28.89)
Above 10,000
IG4
8 (13.33)
6 (10.00)
4 (6.67)
18 (10.00)
60 (100.00)
60 (100.00)
60(100.00)
180(100.00)
Overall
Unit
IG1
(n=15)
Bangarpet (n=60)
IG2
IG3
(n=21)
(n=16)
IG4
(n=8)
IG1
(n=16)
Taluks
Mulbagal (n=60)
IG2
IG3
(n=19)
(n=19)
IG4
(n=6)
IG1
(n=15)
Gudibande
(n=60)
IG2
IG3
(n=24)
(n=17)
IG4
(n=4)
Rs.
2366
4552
7075
16000
2312
4300
6894
15500
2246
4045
7000
14750
Nos.
4.46
5.14
6.18
6.12
4.12
5.05
5.52
4.33
5.29
6.12
Years
37.13
32.85
37.5
34
37.93
32.31
33.42
34.16
33.87
34.67
32.76
33
Years
3.3
4.4
11.4
14.3
2.3
4.2
10.2
14.2
2.2
10
12.3
Nos.
2.33
2.14
2.75
2.75
2.12
2.15
2.26
2.5
2.13
2.21
2.53
2.25
Joint
Nos.
Nos.
15
(100.00)
5
(31.25)
11
(68.75)
3 (37.50)
Nuclear
3
(14.28)
18
(87.71)
5
(62.50)
16
(100.00)
2
(10.52)
17
(89.47)
6
(31.57)
13
(68.42)
2
(33.33)
4
(66.67)
15
(100.00)
5
(8.33)
19
(31.67)
7
(41.17)
10
(58.82)
1
(25.00)
3
(75.00)
Non-Vegetarian
Nos.
13
(86.67)
18
(85.71)
12
(75.00)
8
(100.00)
13
(81.25)
15
(78.94)
16
(84.21)
5
(83.33)
13
(86.67)
22
(91.67)
16
(94.11)
4
(100.00
)
Vegetarian
Nos.
2
(13.33)
3
(14.28)
4
(25.00)
3
(18.75)
4
(21.05)
3
(15.78)
1
(16.67)
2
(13.33)
2
(8.33)
1
(5.88)
3
(15.78)
1
(5.26)
6
(31.57)
9
(47.36)
1
(5.26)
2
(10.52)
12
(63.15)
4
(21.05)
1
(6.67)
2
(8.33)
3
(20.00)
11
(73.33)
8
(33.33)
13
(54.16)
Food habit
Occupation
Business/ Self
employed
1
1
1
(4.76)
(6.25)
(12.50)
3
2
1
Employed
Nos.
(14.28) (12.50)
(12.50)
3
8
7
2
Housewives
Nos.
(20.00)
(38.09) (43.75)
(25.00)
Agriculture and
11
9
6
4
Nos.
Allied
(73.33)
(42.85) (37.50)
(50.00)
Note: Figures in parentheses indicate percentages to the sample size
Nos.
1
(6.67)
2
(12.50)
14
(87.50)
1
(16.67)
1
(16.67)
4
(66.67)
1
(5.88)
10
(58.82)
6
(35.29)
1
(25.00)
1
(25.00)
2
(50.00)
Dosa/
Idli mix
Pickles
Sambar
masala
Income
group
Bangarpet
(n=60)
Mulbagal
(n=60)
Gudibande
(n=60)
Overall
(n=180)
IG1
6 (40.00)
6 (10.00)
4 (6.67)
16 (8.89)
IG2
14 (66.66)
8 (13.33)
9 (15.00)
31 (17.22)
IG3
14 (87.5)
15 (25.00)
12 (20.00)
41 (22.78)
IG4
6 (75.00)
5 (8.33)
3 (5.00)
14 (7.78)
Total
40 (66.67)
34 (56.67)
28 (46.67)
102 (56.67)
IG1
15 (100.00)
16 (100.00)
15 (100.00)
46 (100.00)
IG2
21 (100.00)
19 (100.00)
24 (100.00)
64 (100.00)
IG3
16 (100.00)
19 (100.00)
17 (100.00)
52 (100.00)
IG4
8 (100.00)
6 (100.00)
4 (100.00)
18 (100.00)
Total
60 (100.00)
60 (100.00)
60 (100.00)
180 (100.00)
IG1
15 (100.00)
16 (100.00)
15 (100.00)
46 (100.00)
IG2
21 (100.00)
19 (100.00)
24 (100.00)
64 (100.00)
IG3
16 (100.00)
19 (100.00)
17 (100.00)
52 (100.00)
IG4
8 (100.00)
6 (100.00)
4 (100.00)
18 (100.00)
Total
60 (100.00)
60 (100.00)
60 (100.00)
180 (100.00)
Brands
MTR
Aashirvaad
Chinnis
MN
MTR
Pickles
Local
brand
Priya
Ruchi
MTR
Everest
Excellent
Sambar
masala
IG1
1
(6.67)
4
(26.67)
4
(26.67)
4
(26.67)
8
(53.33)
2
(13.33)
5
(33.33)
2
(13.33)
-
Eastern
Local
Brand
6
(40.00)
2
(13.33)
Iyengars
Swastik
Orkay
Bangarpet (n=60)
IG2
IG3
8
13
(38.09) (81.25)
1
(4.76)
14
10
(66.67) (62.50)
8
10
(38.09) (62.50)
8
9
(38.09) (56.25)
5
4
(23.80) (25.00)
3
5
(14.28) (31.25)
1
5
(4.76) (31.25)
12
11
(57.14) (68.75)
15
12
(71.42) (75.00)
4
4
(19.04) (25.00)
2
3
(9.52) (81.25)
7
5
(33.33) (31.25)
10
6
(47.61) (37.50)
4
3
(19.04) (18.75)
2
1
(9.52)
(6.25)
IG4
6
(75.00)
3
(37.50)
5
(62.50)
7
(87.50)
4
(50.00)
1
(12.50)
3
(37.50)
1
(12.50)
7
(87.50)
6
(75.00)
3
(37.50)
2
(25.00)
1
(12.50)
1
(12.50)
Overall
28
(46.67)
4
(6.67)
33
(55.00)
29
(48.33)
25
(41.67)
18
(30.00)
13
(21.67)
7
(11.67)
35
(58.33)
35
(58.33)
11
(18.33)
7
(11.67)
18
(30.00)
19
(31.67)
7
(11.67)
4
(6.67)
IG1
7
(43.75)
4
(25.00)
6
(37.50)
5
(31.25)
2
(12.50)
4
(25.00)
-
Taluks
Mulbagal (n=60)
IG2
IG3
IG4
6
14
5
(31.57) (73.68) (83.33)
4
2
(21.05) (33.33)
15
17
3
(78.94) (89.47) (50.00)
6
14
5
(31.57) (73.68) (83.33)
3
6
2
(15.78) (31.57) (33.33)
2
4
2
(10.52) (21.05) (33.33)
2
4
2
(10.52) (21.05) (33.33)
2
5
1
(10.52) (26.31) (16.67)
8
14
6
(42.10) (73.68) (100.00)
10
12
6
(52.63) (63.15) (100.00)
2
4
3
(10.52) (21.05) (50.00)
1
4
(5.26) (21.05)
6
2
1
(31.57) (3.33)
(16.67)
8
10
(42.10) (52.63)
2
4
(10.52) (21.05)
1
1
(5.26)
(16.67)
Note: Figures in parentheses indicate percentages to the number of respondents in each income group
Overall
25
(41.67)
6
(10.00)
42
(70.00)
29
(48.33)
20
(33.33)
14
(23.33)
8
(13.33)
8
(13.33)
33
(55.00)
30
(50.00)
9
(15.00)
5
(8.33)
13
(21.67)
18
(30.00)
6
(10.00)
2
(3.33)
IG1
-
Gudibande (n=60)
IG2
IG3
IG4
4
8
3
(16.67) (47.05) (75.00)
Overall
15
(25.00)
5
(53.33)
16
(66.67)
5
(20.83)
2
(8.33)
2
(8.33)
1
(41.67)
3
(12.50)
7
(29.16)
11
(45.83)
3
(12.50)
14
(82.35)
12
(70.58)
3
(17.64)
1
(5.88)
3
(17.64)
5
(29.41)
10
(58.82)
9
(52.94)
1
(5.88)
1
(5.88)
4
(23.52)
7
(41.17)
2
(11.76)
1
(5.88)
2
(50.00)
3
(75.00)
2
(50.00)
3
(75.00)
2
(50.00)
1
(25.00)
3
(75.00)
3
(75.00)
1
(25.00)
1
(25.00)
3
(75.00)
1
(25.00)
37
(61.67)
20
(33.33)
7
(11.67)
9
(15.00)
6
(10.00)
9
(15.00)
20
(33.33)
26
(43.33)
5
(8.33)
2
(3.33)
18
(30.00)
20
(33.33)
8
(13.33)
3
(5.00)
3
(20.00)
3
(20.00)
-
6
(40.00)
3
(20.00)
3
(20.00)
5
(20.83)
9
(37.50)
3
(12.50)
2
(50.00)
The brands like Everest, Iyengars, MTR, local, Excellent and Swastik were familiar among
IG2 respondents in their higher order.
Table 4.5 Overall Brand Awareness of Consumers about Instant Food Products
(n=180)
Products
Dosa/Idli mix
Pickles
Brands
Income Groups
IG1
IG2
IG3
IG4
Overall
MTR
1 (2.17)
18 (28.12)
35 (67.30)
14 (77.78)
68 (37.78)
Aashirvaad
0 (0.00)
1 (15.62)
4 (7.69)
5 (27.78)
10 (5.56)
Chinnis
16 (34.78)
45 (70.31)
41 (78.84)
10 (55.56)
112 (62.22)
MN
8 (17.39)
19 (29.68)
36 (69.23)
15 (83.33)
78 (43.33)
MTR
4 (8.69)
13 (20.31)
18 (34.61)
8 (44.44)
43 (23.89)
17 (36.90)
9 (14.06)
9 (17.30)
6 (33.33)
41 (22.78)
Local brand
Priya
2 (4.34)
6 (9.37)
12 (23.07)
7 (38.89)
27 (15.00)
Ruchi
0 (0.00)
6 (9.37)
15 (28.84)
3 (16.67)
24 (13.33)
Everest
7 (15.21)
36 (56.25)
33 (63.46)
15 (83.33)
91 (50.56)
MTR
10 (21.73)
27 (42.18)
35 (67.30)
16 (88.89)
88 (48.89)
Excellent
0 (0.00)
9 (14.06)
9 (17.30
7 (38.89)
25 (13.89)
Eastern
0 (0.00)
3 (4.68)
8 (15.38)
3 (16.67)
14 (7.78)
Local Brand
16 (34.78)
18 (28.12)
11 (26.19)
4 (22.22)
49 (27.22)
Iyengars
5 (10.86)
27 (42.18)
23 (44.20)
2 (11.11)
57 (31.67)
Swastik
3 (6.52)
9 (14.06)
9 (17.30)
0 (0.00)
21 (11.67)
Orkay
0 (0.00)
3 (4.68)
2 (3.84)
Note: Figures in parentheses indicate percentages to the number of respondents in each income group
4 (22.22)
9 (5.00)
Sambar
masala
Pickles
Sambar masala
Income Groups
(n=180)
IG1 (n=46)
46 (100.00)
IG2 (n=64)
64 (100.00)
IG3 (n=52)
51 (98.07)
1 (1.92)
IG4 (n=18)
12 (66.67)
6 (33.33)
Total (n=180)
173 (96.11)
7 (3.89)
IG1 (n=46)
23 (50.00)
2 (4.34)
16 (34.78)
5 (10.86)
IG2 (n=64)
46 (71.87)
2 (3.12)
15 (23.43)
1 (1.56)
IG3 (n=52)
35 (67.30)
1 (1.92)
5 (9.61)
9 (17.30)
2 (3.84)
IG4 (n=18)
7 (38.89)
8 (38.89)
3 (16.67)
Total (n=180)
104 (57.78)
12 (6.67)
44 (24.44)
18(10.00)
2 (1.11)
IG1 (n=46)
24 (52.17)
1 (2.17)
16 (34.78)
5 (10.86)
IG2 (n=64)
47 (73.43)
1 (1.56)
15 (23.43)
1 (1.56)
IG3 (n=52)
34 (65.38)
2 (3.84)
7 (13.46)
7 (13.46)
2 (3.84)
IG4 (n=18)
2 (11.11)
5 (27.78)
9 (50.00)
2 (11.11)
Total (n=180)
107 (59.44)
9 (5.00)
47 (26.11)
15 (8.33)
2 (1.11)
Own prepared
Branded
Unbranded
Note: Figures in parentheses indicate percentages to the number of respondents in each income groups
Table 4.7 Reasons for not Purchasing the Instant Food Products
(n=180)
Products
Sl.
No.
Reasons
Dosa/Idli
mix
Pickles
Sambar
masala
120 (66.67)
85 (47.22)
100 (55.56)
95 (52.78)
98 (54.44)
98 (54.44)
75 (41.67)
94 (52.22)
88 (48.89)
165 (91.67)
95 (52.78)
75 (41.67)
20 (11.11)
35 (19.44)
20 (11.11)
35 (19.44)
Table 4.8 Factors considered for using Instant Food Products in Bangarpet Taluk
Products
Sl.
No.
Factors
Dosa/Idli mix
(n=4)
Pickles
(n=39)
Sambar
masala (n=36)
5 (12.82)
10 (27.77)
3 (75.00)
25 (64.10)
38 (97.43)
8 (22.22)
Traditional usage
Readily available
4 (100.00)
35 (89.74)
30 (83.33)
4 (100.00)
38 (97.43)
35 (97.22)
Influence of friends or
relatives
3 (75.00)
15 (38.46)
15 (41.67)
Availability of products(IFPs)
at reasonable price
25 (64.10)
25 (69.44)
36 (100.00)
3 (75.00)
25 (64.10)
28 (77.78)
10
Habitual
30 (77.00)
15 (41.67)
Table 4.9 Factors considered for using Instant Food Products in Mulbagal Taluk
(n=60)
Products
Sl.
No.
Factors
Dosa/Idli mix
(n=2)
Pickles
(n=24)
Sambar masala
(n=24)
6 (25.00)
10 (41.67)
2 (100.00)
20 (83.33)
10 (41.67)
22 (91.67)
9 (37.5)
Traditional usage
Readily available
2 (100.00)
24 (100.00)
24 (100.00)
2 (100.00)
24 (100.00)
24 (100.00)
Influence of friends or
relatives
10 (41.67)
15 (62.50)
Availability of
Products(IFPs) at
reasonable Price
2 (100.00)
16 (66.67)
20 (83.33)
24 (100.00)
Availability of Quality
Products
2 (100.00)
15 (62.50)
16 (66.67)
10
Habitual
18 (75.00)
18 (75.00)
Table 4.10 Factors considered for using Instant Food Products in Gudibande Taluk
(n=60)
Products
Sl.
No.
Factors
Dosa/Idli mix
(n=1)
Pickles
(n=14)
Sambar
masala (n=13)
Traditional usage
5 (35.71)
10 (76.92)
12 (85.71)
5 (38.46)
Readily available
1 (100.00)
14 (100.00)
13 (100.00)
1 (100.00)
14 (100.00)
13 (100.00)
8 (57.14)
8 (61.53)
Availability of Products(IFPs) at
reasonable Price
10 (71.42)
8 (61.53)
10 (76.92)
1 (100.00)
6 (42.85)
7 (53.84)
10
Habitual
8 (57.14)
6 (46.15)
Mulbagal (n=60)
Gudibande (n=60)
Dosa/Idli mix
(n=4)
Pickles
(n=39)
Sambar
masala
(n=36)
Dosa/Idli mix
(n=2)
Pickles
(n=24)
Sambar
masala
(n=24)
Dosa/Idli mix
(n=1)
Pickles
(n=14)
Sambar
masala
(n=13)
Retail shop
2
(50.00)
36
(92.30)
33
(91.67)
1
(50.00)
19
(79.16)
22
(91.67)
1
(100.00)
14
(100.00)
12
(92.30)
Newspaper/ magazine
3
(75.00)
13
(33.33)
5
(13.89)
2
(100.00)
7
(29.16)
5
(20.83)
1
(100.00)
4
(28.57)
2
(15.38)
TV/Radio advertisement
2
(50.00)
34
(87.17)
21
(58.33)
1
(50.00)
21
(87.50)
14
(58.33)
1
(100.00)
14
(100.00)
8
(61.53)
Friends/Relatives
1
(25.00)
26
(66.67)
32
(88.89)
1
(50.00)
13
(54.16)
21
(87.50)
11
(78.57)
12
(92.30)
Income Group
Food
IFPs
Others
IG1
189.33 (20.82)
720.00
IG2
247.14 (14.16)
1497.62
Bangarpet (n=60)
IG3
348.13 (16.47)
1765.63
IG4
492.5 (16.67)
2462.50
Average
292.33 (16.28)
1503.34
IG1
123.75 (12.55)
862.50
IG2
272.63 (15.40)
1497.57
Mulbagal (n=60)
IG3
323.68 (15.37)
1781.58
IG4
433.33 (16.40)
2208.33
Average
265.16 (15.11)
1489.23
IG1
185.33 (17.08)
900.00
IG2
238.75 (14.44)
1414.58
Gudibande (n=60)
IG3
281.18 (13.23)
1844.12
IG4
457.5 (18.62)
2000.00
Average
252.00 (14.84)
1207.26
IG1
165.22 (16.63)
828.26
IG2
251.56 (14.64)
1466.47
Overall (n=180)
IG3
317.31 (15.01)
1797.12
IG4
465 (16.97)
2275.00
Average
269.83 (15.42)
1479.74
Note: Non-food expenditure includes money spent on clothing, housing, education, utilities etc.
Figures in parentheses indicate percentage expenditure of instant food products in total food expenditure
Non-food
Total
700.00
950.00
1384.38
2125.00
1160.00
793.75
1013.16
1421.05
2200.00
1202.50
796.67
875.00
1282.35
1875.00
1037.50
764.13
940.63
1364.42
2094.44
1133.33
1609.33
2694.76
3495.13
5080.00
2954.87
1780.00
2783.16
3526.32
4841.67
2956.84
1882.00
2528.33
3407.65
4362.50
2738.17
1757.61
2658.59
3477.93
4841.11
2883.29
cent of respondents of IG2, IG3, and IG4 consumers purchased the same, once in three
months and only 12.50 per cent of IG2 households purchased it occasionally.
The results of Mulbagal taluk presented in Table 4.18 revealed that only IG4 (cent per
cent) consumers purchased Dosa/Idli mix occasionally. Whereas incase of pickles, about 50
per cent each of IG1 households purchased weekly and fortnightly; which are also purchased
once in month by 40 per cent, 42.85 per cent and 33.33 per cent of IG2, IG3 and IG4 users
accordingly, but 66.67 of IG4 consumers purchased it once in two months. In addition, the
same were purchased once in three months by 60 per cent of IG2 and 28.57 per cent of IG3
households. In case of Sambar masala, once in fortnight purchase was noticed in 66.67 per
cent of IG1 households; 33.33 per cent, 20 per cent and 71.42 per cent consumers of IG1, IG2
and IG3 were also purchased once in month. In contrast, 40 per cent, 14.28 per cent and
16.67 per cent respondents of IG2, IG3 and IG4 respectively, purchased it once in two months.
Further, about 40 per cent and 83.33 per cent of respondents of IG2 and IG4 consumers
purchased the same once in three months and only 14.28 per cent of IG3 households
purchased it occasionally.
The product purchase frequency of Gudibande taluk were presented in Table 4.18, it
was noticed from the table that only IG4 (100 %) consumers purchased Dosa/Idli mix
occasionally. In case of pickles, once in week purchase was found in 75 per cent of IG1
households and 25 per cent of IG2; once in month was observed in 25 per cent each in IG1
and IG2 and 50 per cent each in IG3 and IG4 consumers respectively. About 50 per cent each
consumers of IG2, IG3 and IG4 were also purchased once in two months. For Sambar masala,
once in fortnight purchase was seen in 75 per cent of IG1 and 50 per cent of IG2 households;
25 per cent, 50 per cent and 33.33 per cent users of IG1, IG3 and IG4 consumers respectively
purchased it once in month. Similarly, 50 per cent and 66.67 per cent respondents of IG3 and
IG4 purchased the same once in two months. However, about 50 per cent of IG2 purchased
sambar masala once in three months.
4.2.3.2 Sources for Purchase of Instant Food Products by Different Income Groups
The sources for purchase of instant food products in Bangarpet taluk are presented in
Table 4.19. It was observed from the table that, only IG3 and IG4 households purchased
Dosa/Idli mix from different sources like departmental stores (100 per cent of IG3 and 33.33
per cent of IG4) and retail shops (66.67 per cent of IG4 households). In the case of pickles,
cent per cent of IG1 and IG2, 72.72 per cent of IG3 and 25 per cent of IG4 households
purchased from retail shops; 27.27 per cent of IG3 and 75 per cent of IG4 respondents bought
it from departmental stores. With regard to sambar masala, except 71.42 per cent of IG4
households, all the consumers of IG1, IG2 and IG3 purchased it from retail shops only,
wherein only 28.57 per cent of IG4 purchased it from departmental stores.
The sources of purchase for Mulbagal taluk was presented in Table 4.20. Only IG4
consumers purchased Dosa/Idli mix and the sources they preferred were departmental store
(50 per cent) and retail shops (50 per cent). All the consumers of IG1, IG2 and IG3 and 75 per
cent of IG4 purchased pickles from retail shops and only 25 per cent of IG4 preferred to
purchase from departmental stores. In the case of Sambar masala, about cent per cent of IG1
and IG2, 87.50 per cent of IG3 and 80 per cent of IG4 households purchased from retail shops.
However, 12.50 per cent of IG3 and 20 per cent of IG4 consumers purchased it from
departmental stores.
Table 4.21 presents the sources of purchase for Gudibande taluk, it was observed
that retail shop was the only source of purchase for all the selected instant products. Cent per
cent consumers in all the income groups purchased all the selected products from retail
shops.
4.2.3.3 Decision Makers of Instant Food Products in Different Income Groups
The decisions makers in purchase of Instant food Products across different income
groups in the selected taluks of the district are presented in Table 4.22. It could be noticed
from the table that in Bangarpet taluk, 58.33 per cent of IG1, 75 per cent of IG2, 45.45 per cent
of IG3 and 50 per cent of IG4, housewives were the decision makers; at an overall it
represents 56.41 per cent of the households. In 16.67 per cent of IG1 and 18.18 per cent of
IG3 respondents, husbands were the decision makers in purchasing instant food products.
Moreover, joint decisions by both husband and wife were noticed in about 25 per cent each of
IG1, IG2 and IG4 and 36.36 per cent of IG3 respondents respectively. The results also
revealed that about 12.50 per cent each of the families in IG4 jointly by the family members
and elders in the family made the decisions regarding the consumption of Instant food
products.
In Mulbagal taluk, decisions regarding purchase of Instant food products were made
by housewives in 66.67 per cent of IG1, 80 per cent of IG2, 71.42 per cent of IG3 and 50 per
cent of IG4 households, as a whole it accounts to 66.67 per cent of the households.
Decisions by husband and wife jointly were made in 33.33 per cent each in IG1, IG4 and 28.57
per cent in IG3 households, totally it accounts to 25 per cent of the households. In about 20
per cent of IG2 and 16.67 per cent of IG4 respondents, elders in the family made decision on
consumption of instant food products; on the whole it constitutes 8.33 per cent of the
respondents.
In Gudibande, about half of the consumers of IG1, IG4 and cent 16.67 per cent of IG2
and IG3 decisions regarding purchase of Instant food products were made by housewives
only. And 50 per cent of households in IG1, husband alone took decisions about consumption
of instant food products, in contrast to this 25 per cent each of the households in IG4, joint
decisions by the family members and all the members of the family made the decisions
regarding the same.
Table 4.13 Purchase and Consumption of Instant Food Products by Households in Bangarpet Taluk
Particulars
IG1
IG2
IG3
IG4
Overall
0.40
0.79
0.69
26.29
58.33
50.32
0.04
0.05
0.09
0.12
0.07
2.65
2.23
7.4
12.96
5.9
0.05
0.04
0.04
0.05
0.05
6.44
7.41
7.84
9.92
7.68
Pickles
Sambar masala
Table 4.14 Purchase and Consumption of Instant Food Products by Households in Mulbagal Taluk
Particulars
IG1
IG2
IG3
IG4
Overall
0.5
0.5
36.75
36.75
0.03
0.04
0.04
0.05
0.04
1.95
2.91
3.33
4.03
3.07
0.05
0.05
0.05
0.04
0.05
6.15
9.29
8.39
9.29
8.02
Pickles
Sambar masala
Table 4.15 Purchase and Consumption of Instant Food Products by Households in Gudibande Taluk
Particulars
IG1
IG2
IG3
IG4
Overall
0.7
0.7
52.5
52.5
0.03
0.02
0.03
0.05
0.03
1.43
0.54
1.14
2.07
1.32
0.05
0.04
0.04
0.05
0.05
6.65
6.54
8.46
10.07
7.7
Pickles
Sambar masala
Pickles
Sambar masala
Income group
Weekly
Fortnightly
Once in a
month
Once in two
months
Once in three
months
Occasionally
IG1 (n=0)
IG2 (n=0)
IG3 (n=1)
1 (100.00)
IG4 (n=3)
2 (66.67)
1 (33.33)
Overall (n=4)
3 (75.00)
1 (25.00)
IG1 (n=13)
6 (46.15)
4 (30.76)
1 (7.69)
2 (15.38)
IG2 (n=8)
3 (33.33)
5 (55.56)
IG3 (n=10)
1 (10.00)
5 (50.00)
4 (40.00)
IG4 (n=8)
3 (37.50)
4 (50.00)
1 (12.50)
Overall (n=39)
7 (17.94)
15 (38.46)
14 (35.89)
3 (7.69)
IG1 (n=12)
9 (75.00)
1 (8.33)
2 (16.67)
IG2 (n=8)
3 (37.50)
2 (25.00)
2 (25.00)
1 (12.50)
IG3 (n=9)
4 (44.44)
3 (33.33)
2 (22.22)
IG4 (n=7)
1 (14.28)
2 (28.57)
4 (57.14)
Overall (n=36)
9 (25.00)
9 (25.00)
9 (25.00)
8 (22.22)
1 (2.78)
Note: Figures in parentheses indicate percentages to the number of instant food products users
Pickles
Income
group
Weekly
Fortnightly
Once in a
month
Once in two
months
Once in three
months
Occasionally
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=2)
2 (100.00)
Overall (n=2)
2 (100.00)
IG1 (n=6)
3 (50.00)
3 (50.00)
IG2 (n=5)
2 (40.00)
3 (60.00)
IG3 (n=7)
3 (42.85)
2 (28.57)
2 (28.57)
IG4 (n=6)
2 (33.33)
4(66.67)
3 (12.50)
3 (12.50)
7(29.16)
4 (16.67)
5 (20.83)
2 (20.83)
IG1 (n=6)
4 (66.67)
2 (33.33)
IG2 (n=5)
1(20.00)
2 (40.00)
2 (40.00)
IG3 (n=7)
5 (71.42)
1 (14.28)
1 (14.28)
IG4 (n=6)
1(16.67)
5 (83.33)
Overall (n=24)
4 (16.67)
8 (33.33)
4 (16.67)
7 (29.16)
1 (41.67)
Overall (n=24)
Sambar masala
Note: Figures in parentheses indicate percentages to the number of instant food products users
Dosa/ Idli
mix
Pickles
Income group
Weekly
Fortnightly
Once in a month
Once in two
months
Once in three
months
Occasionally
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=1)
1 (100.00)
Overall (n=1)
1 (100.00)
IG1 (n=4)
3 (75.00)
1 (25.00)
IG2 (n=4)
1 (25.00)
1 (25.00)
2 (50.00)
IG3 (n=2)
1 (50.00)
1 (50.00)
IG4 (n=4)
2 (50.00)
2 (50.00)
4 (28.57)
5 (35.71)
5 (35.71)
IG1 (n=4)
3 (75.00)
1 (25.00)
IG2 (n=4)
2 (50.00)
2 (50.00)
IG3 (n=2)
1 (50.00)
1 (50.00)
IG4 (n=3)
1 (33.33)
2 (66.67)
Overall (n=13)
5 (38.46)
3 (23.07)
3 (23.07)
2 (15.38)
Overall (n=14)
Sambar
masala
Note: Figures in parentheses indicate percentages to the number instant food product users
Purchased from
Income
groups
Products
Dosa/
mix
Retail shop
Departmental stores
IG1 (n=0)
IG2 (n=0)
IG3 (n=1)
1 (100.00)
IG4 (n=3)
2 (66.67)
1 (33.33)
IG1 (n=12)
12 (100.00)
IG2 (n=8)
8 (100.00)
IG3 (n=11)
8 (72.72)
3 (27.27)
IG4 (n=8)
2 (25.00)
6 (75.00)
IG1 (n=12)
12 (100.00)
IG2 (n=8)
8 (100.00)
IG3 (n=9)
9 (100.00)
IG4 (n=7)
5 (71.42)
2 (28.57)
Idli
Pickles
Sambar masala
Purchased from
Products
Income
groups
Retail shop
Departmental stores
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=2)
1 (50.00)
1 (50.00)
IG1 (n=6)
6 (100.00)
IG2 (n=5)
5 (100.00)
IG3 (n=5)
5 (100.00)
IG4 (n=8)
6 (75.00)
2 (25.00)
IG1 (n=6)
6 (100.00)
IG2 (n=5)
5 (100.00)
IG3 (n=8)
7 (87.50)
1 (12.50)
IG4 (n=5)
4 (80.00)
1 (20.00)
Pickles
Sambar masala
Purchased from
Products
Income groups
Retail shop
Departmental stores
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=1)
1 (100.00)
IG1 (n=4)
4 (100.00)
IG2 (n=4)
4 (100.00)
IG3 (n=4)
4 (100.00)
IG4 (n=3)
3 (100.00)
IG1 (n=4)
4 (100.00)
IG2 (n=4)
4 (100.00)
IG3 (n=4)
4 (100.00)
IG4 (n=2)
2 (100.00)
Dosa/
Idli mix
Pickles
Sambar masala
Table 4.22 Decision Makers of Instant Food Consumption in Different Income Groups
Taluks
Decision
makers
Bangarpet (n=60)
Mulbagal
(n=60)
Gudibande (n=60)
IG1
(n=12)
IG2
(n=8)
IG3
(n=11)
IG4
(n=8)
Overall
(n=39)
IG1
(n=6)
IG2
(n=5)
IG3
(n=7)
IG4
(n=6)
Overall
(n=24)
IG1
(n=4)
IG2
(n=4)
IG3
(n=2)
IG4
(n=4)
Overall
(n=14)
House wives
7
(58.33)
6
(75.00)
5
(45.45)
4
(50.00)
22
(56.41)
4
(66.67)
4
(80.00)
5
(71.42)
3
(50.00)
16
(66.67)
2
(50.00)
4
(100.00)
2
(100.00)
2
(50.00)
10
(71.42)
Husband
2
(16.67)
2
(18.18)
4
(10.25)
2
(50.00)
2
(14.28)
Husband
and wife
Jointly
3
(25.00)
2
(25.00)
4
(36.36)
2
(25.00)
11
(28.20)
2
(33.33)
2
(28.57)
2
(33.33)
6
(25.00)
1
(25.00)
1
(7.14)
Elders in the
family
1
(12.50)
1
(2.56)
1
(20.00)
1
(16.67)
2
(8.33)
1
(12.50)
1
(2.56)
1
(25.00)
1
(7.14)
Table 4.23 Brand loyalty of Consumers towards Instant Food Products in Bangarpet taluk
Products
Loyalty status
Income
groups
High (9-12)
Dosa/Idli mix
Pickles
Sambar
masala
Medium (5-8)
Low (Upto 4)
IG1 (n=0)
IG2 (n=0)
IG3 (n=1)
1 (100.00)
IG4 (n=3)
1 (33.33)
2 (66.67)
Overall (n=4)
2 (50.00)
2 (50.00)
IG1 (n=11)
3 (27.27)
3 (27.27)
5 (45.45)
IG2 (n=8)
3 (37.50)
3 (37.50)
2 (25.00)
IG3 (n=6)
3 (50.00)
3 (50.00)
IG4 (n=7)
5 (71.42)
2 (28.57)
Overall (n=32)
14 (43.75)
11 (34.37)
7 (21.87)
IG1 (n=10)
3 (30.00)
5 (33.33)
2 (13.33)
IG2 (n=8)
4 (50.00)
2 (25.00)
2 (25.00)
IG3 (n=5)
4 (80.00)
1 (20.00)
IG4 (n=6)
3 (50.00)
3 (50.00)
Overall (n=33)
18 (55.54)
11 (33.33)
4 (12.12)
Table 4.24 Brand loyalty of Consumers towards Instant Food Products in Mulbagal
taluk
Products
Loyalty status
Income
groups
High (9-12)
Dosa/
Idli mix
Sambar
masala
Low (Upto 4)
IG1 (n=0)
IG2 (n=0)
IG3 (n=1)
1 (100.00)
IG4 (n=1)
1 (100.00)
Overall (n=2)
2 (100.00)
2 (40.00)
3 (60.00)
IG1 (n=5)
Pickles
Medium (5-8)
IG2 (n=4)
3 (75.00)
1 (25.00)
IG3 (n=2)
1 (50.00)
1 (50.00)
IG4 (n=5)
4 (80.00)
1 (20.00)
Overall (n=16)
8 (50.00)
5 (31.25)
3 (18.75)
IG1 (n=5)
1 (20.00)
2 (40.00)
2 (40.00)
IG2 (n=4)
2 (50.00)
2 (50.00)
IG3 (n=5)
4 (80.00)
1 (20.00)
IG4 (n=5)
4 (80.00)
1 (20.00)
Overall (n=19)
11 (57.89)
6 (31.57)
2 (10.52)
Table 4.25 Brand loyalty of Consumers towards Instant Food Products in Gudibande taluk
Products
Dosa/
Idli mix
Pickles
Sambar
masala
Loyalty status
Income
groups
High (9-12)
Medium (5-8)
Low (Upto 4)
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=1)
1 (100.00)
Overall (n=1)
1 (100.00)
IG1 (n=2)
2 (100.000
IG2 (n=4)
3 (75.00)
1 (25.00)
IG3 (n=0)
IG4 (n=3)
2 (66.67)
1 (33.33)
Overall (n=9)
2 (22.22)
6 (66.67)
1 (11.11)
IG1 (n=1)
1 (100.00)
IG2 (n=4)
4 (100.00)
IG3 (n=1)
1 (100.00)
IG4 (n=3)
3 (100.00)
Overall (n=9)
4 (44.44)
5 (55.55)
Table 4.25 illustrates the results on brand loyalty of instant food consumers in
Gudibande taluk. It was revealed from the table that, cent per cent of IG4 respondents were
the purchasers of Dosa/Idli mix and all belonged to medium brand loyalty group and hence no
low and high loyalty purchasers were found in the product. Whereas in case of pickles, cent
per cent of IG1, 75 per cent of IG2 and 33.33 per cent IG4 were considered as medium brand
loyal and about 66.67 per cent of IG4 were belonged as high brand loyalty group. On the
whole, it accounts to 22.22 per cent, 66.67 per cent and 11.11 per cent of respondents as
high, medium and low loyalty categories respectively. In case of Sambar masala, cent per
cent in IG1 and IG2 consumers constituted to medium brand loyal and cent per cent each in
IG3 and IG4 belonged to high brand loyalty category. On the whole, it accounts to 44.44 per
cent of consumers were in high and 55.55 per cent of them belonged to medium loyalty
group. However, no low loyalty users were found for sambar masala.
Statements
Poor Quality
Poor taste
High price
Poor brand image
Inconvenient package
Poor flavour
Not good colour
Less keeping quality
Bangarpet
(n=32)
3.88
3.94
4.66
2.97
3.34
2.41
2.66
3.78
Taluks
Mulbagal
(n=19)
Mean scores
4.11
4.16
4.79
2.74
3.05
2.00
2.47
3.79
Gudibande
(n=10)
4.30
4.10
4.90
3.10
3.10
2.30
3.30
4.00
Table 4.27 Purchased behaviour of different brands of Instant Food Products in Bangarpet Taluk
Products
Dosa/
Idli mix
Pickles
Sambar masala
Brands
MTR
Aashirvaad
Income Groups
IG1 (n=0)
IG2 (n=0)
IG3 (n=1)
IG4 (n=3)
Overall (n=4)
1 (100.00)
2 (66.67)
3 (75.00)
1 (33.33)
1 (25.00)
IG1 (n=11)
IG2 (n=8)
IG3 (n=6)
IG4 (n=7)
Overall (n=32)
MN
1 (9.09)
2 (25.00)
2 (33.33)
3 (42.85)
8 (25.00)
Chinnis
5 (45.45)
3 (37.50)
2 (33.33)
2 (28.57)
12 (37.50)
MTR
2 (28.57)
2 (6.25)
4 (36.36)
3 (37.50)
7 (21.87)
Ruchi
Priya
1 (9.09)
2 (33.33)
3 (9.37)
IG1 (n=10)
IG2 (n=8)
IG3 (n=5)
IG4 (n=6)
Overall (n=29)
MTR
2 (20.00)
3 (37.50)
2 (40.00)
3 (50.00)
10 (34.48)
Everest
2 (20.00)
1 (12.50)
2 (40.00)
1 (16.67)
6 (20.68)
Excellent
1 (10.00)
1 (3.44)
1 (12.50)
1 (3.44)
Local Brand
4 (40.00)
3 (37.50)
1 (20.00)
2 (33.33)
10 (34.48)
Swastik
1 (10.00)
1 (3.44)
Local brand
Eastern
Table 4.29 Purchased behaviour of different brands of Instant Food Products in Gudibande Taluk
Income Groups
Products
Pickles
Brands
IG1 (n=0)
IG2 (n=0)
IG3 (n=0)
IG4 (n=1)
Overall (n=1)
1(100.00)
1 (100.00)
IG1 (n=2)
IG2 (n=3)
IG3 (n=2)
IG4 (n=3)
Overall (n=10)
MN
2 (100.00)
2 (20.00)
Chinnis
2 (66.67)
2(66.67)
4 (40.00)
MTR
1(33.33)
1 (10.00)
2 (100.00)
2 (20.00 )
1 (33.33)
1 (10.00)
IG1 (n=2)
IG2 (n=4)
IG3 (n=1)
IG4 (n=3)
Overall (n=10)
MTR
2 (50.00)
1 (100.00)
2(66.67)
5 (50.00)
Everest
1 (25.00)
1(33.33)
2 (20.00)
2 (100.00)
1 (25.00)
3 (30.00)
MTR
Local brand
Priya
Sambar masala
Local Brand
Taluks
Statements
Bangarpet
(n=32)
Mulbagal
(n=19)
Gudibande
(n=10)
Mean scores
Best Quality
4.91
4.95
5.00
3.63
3.89
4.00
Retailers Influence
4.81
4.95
5.00
Reasonable Price
3.50
3.53
3.50
Readily Available
4.69
4.63
4.50
Good Packaging
3.44
3.00
3.20
Advertisement
3.34
3.37
3.90
3.41
3.63
3.80
Convenience
4.38
4.47
4.50
Estimates
Parameters
Pickles
Intercept
Sambar
masala
0.57674
0.1438
Prices
b1
0.0027
(0.0023)
0.00002
(0.00015)
b2
0.000006 (0.00001)
0.000003 *
(0.000001)
b3
0.14837 ** (0.05431)
0.01623 **
(0.00536)
0.149
0.335
F-value
4.157
11.605
Products
Taluks
Dosa/Idli mix
(Kg/month)
Pickles (kg/month)
Sambar masala
(kg/month)
Bangarpet
33,434
89,906
42,986.40
Mulbagal
3,855.03
13,878
17,578.80
604.65
1451.1
2,021.28
Total
21,834.76
58,502.14
514.3
District
78,922.46
2,14,145.8
1,85,153.2
Gudibande
5. DISCUSSION
The results of the investigation presented in the previous chapter are discussed in
this chapter under the following heads.
5.1 Awareness of consumers towards Instant Food Products
5.2 Factors influencing the consumption of Instant Food products
5.3 Brand loyalty of consumers of Instant Food products
5.4 Brand composition of Instant Food products
5.5 Demand potential for Instant Food Products
and across income groups were aware about these selected instant food products due to their
common and traditional usage of these products.
shows that quality, availability and price were the important factors, which had influenced
purchase of vegetables by respondents from modern retail outlet.
5.2.1.4 Sources of Information
It was observed from the Table 4.11 that majority of the consumers of pickles and
sambar masala preferred retail shop as the major source of information as the sellers
themselves influence and motivate the consumers to opt for these products while making
purchase followed by TV/radio advertisements as these are the common mass medias
existing in almost all the households in all the selected taluks. However, the percentages
were 92.30 per cent and 87.17 per cent for pickles and 91.67 per cent and 58.33 per cent for
sambar masala consumers in Bangarpet. The percentage was 79.16 and 87.50 for pickles
and 91.67 and 58.33 for sambar masala in Mulbagal, whereas in case of Gudibande, cent per
cent each preferred retail shop and TV/radio advertisements for pickles and 92.30 per cent
and 61.53 per cent for sambar masala. Apart from this friends/relatives were also the major
sources of information for these products by 66.67 per cent, 54.16 per cent and 78.57 per
cent of pickles and 88.89 per cent, 87.50 per cent and 92.30 per cent of sambar masala
products in Bangarpet, Mulbagal and Gudibande consumers respectively. This is because the
purchasers have more faith and belief among themselves rather than any other sources. It
was noticed that the purchasers proportion were very small in Dosa/Idli mix in all the taluks
and most of them were preferred retail shop, newspaper/magazine and TV/radio
advertisements as their sources of information and the percentage was less than five per cent
since almost all the respondents prepared this product in their home.
In the case of sambar masala, the per capita purchase was same (0.05
kg/capita/month) in all the three taluks with the expenditure of Rs. 7.68, Rs. 8.02 and Rs. 7.70
in Bangarpet, Mulbagal and Gudibande taluk consumers respectively.
87.50 per cent of IG3 and 80 per cent of IG4 in Mulbagal; all the consumers in different income
groups of Gudibande taluk purchased the sambar masala from retail shops.
5.2.3.3 Decision Makers of Instant Food Products in Different Income Groups
It could be noticed from Table 4.22 that in all the taluks, on the whole, housewives
were the major decision makers (56.41 % in Bangarpet, 66.67 % in Mulbagal and 71.42 % in
Gudibande) and in all the income groups as the housewives sets the consumption pattern of
food products in the family. Husband and wife jointly made decision in consumption of instant
food products by 28.20 per cent in Bangarpet, 25 per cent in Mulbagal and 7.14 per cent in
Gudibande taluk. The other decision makers in households were grouped as husband alone,
elders in the family and joint decision by all family members. In confirmation with this, the
study conducted by Nagaraj (2004) reported that buying behaviour is very much influenced by
experience of their own and of neighbour consumers and his own family and the involvement
of his own members are exerting maximum influence on his purchases. Similarly, the study
conducted by Shivkumar (2004) showed that the consumer from all the income groups is
mainly influenced to purchase by the opinions of their family members.
kg/month for pickles and 1,85,153.2 kg/month for sambar masala. These estimated demands
were based on the calculated per capita consumption and prevailing users population in their
respective areas.
ii.
iii.
iv.
v.
The study was carried out in respect of Kolar district, as the district was familiar to the
researcher and also assuming that district is highly influenced by ever changing environment
of metropolitan city Bangalore, since kolar district is situated besides Bangalore.
A multi-stage sampling technique was followed to collect data. A sample of 180
households was choosen randomly from three selected taluks of the districts namely
Bangarpet, Mulbaghal and Gudibande based on population, as high, medium and low
population. In the next stage two hoblies from each taluk were selected. Finally, 30
consumers from each hobli, totally accounting to 180 samples were selected and data were
collected from the housewives in the case of households, as they are the ones who normally
set the consumption patterns in the family. Data were collected with the help of prestructured and pre-tested schedules through personal interview.
Based on economic status of the rural population in the study area, households were
grouped into four income groups. To study the awareness of consumers and factors
influencing the consumption of Instant Food Products, simple averages and percentages
were calculated. To measure the brand loyalty of consumers towards instant food products
scaling was used. Likert Scaling technique was employed to study the factors influencing the
brand preferences and reasons for not preferring the particular brand by the consumers of
instant food products. The potential demand for the Instant Food Products was estimated
using the total population in the study area and per capita consumption of instant food
products.
products along with own preparation, 24.44 per cent used only branded products, 10
per cent were used only unbranded products and 1.11 per cent of respondents
consumed both brand and unbranded products. Maximum of 59.44 per cent of
respondents prepared own sambar masala followed by branded (26.11 per cent),
only unbrand (8.33 per cent), brand and own preparation (5 per cent) and both brand
and unbranded products (1.11 per cent).
6. Reasons for not purchasing the Dosa/Idli mix, Pickles and Sambar masala by the
respondents were low cost of preparation (66.67 per cent, 47.22 per cent and 55.56
per cent of respondents of respectively), Differences in tastes between home made
and purchased product (52.78 per cent of the consumers, whereas 54.44 per cent
each), disliking of these products by their family members (41.67 per cent, 52.22 per
cent and 48.89 per cent), High price (91.67 per cent, 52.78 per cent and 41.67 per
cent) and non-availability of these products in the area (19.44 per cent, 11.11 per
cent and 19.44 per cent).
7.
The factors considered by the respondents for consumption of Dosa/Idli mix were
ready availability and save time of preparation by Cent per cent consumers of
Bangarpet, Mulbagal and Gudibande taluks. And in case of both pickles and sambar
masala same factors were considered by all the cent per cent consumers of Mulbagal
and Gudibande taluk but in Bangarpet they were considered by 89.74 per cent and
97.43 percent of consumers. In addition other factors were also considered such as
availability of quality products, habit of using, necessary ingredient for preparations so
on by most of the consumers in respective taluks.
8. The sources of information about instant food products for the consumers in the
study area showed that, for about 92.30 per cent, 79.16 per cent and 100 per cent of
pickle buyers and 91.67 per cent each and 92.30 per cent of Sambar masala buyers
of Bangarpet, Mulbagal and Gudibande respectively, retail shop was the major
source of information followed by TV/radio advertisements for 87.17 per cent, 87.50
per cent and 100 per cent of pickles and 58.33 per cent each and 61.53 per cent and
of the Sambar masala consumers. In case of Dosa/Idli mix, Newspaper/magazine
was the source for getting information by the 75 per cent, and 100 per cent each of
the respondents in Bangarpet, Mulbagal and Gudibande respectively.
9. The average monthly expenditure on instant food products (Bangarpet, Mulbagal and
Gudibande) was found to be highest in case of IG4 (Rs.492.50, Rs.433.33 and
Rs.457) followed by IG3 (Rs.348.13, Rs.323.68 and 281.18), IG2 (Rs.247.14,
Rs.272.63 and Rs.238.75) and IG1 (Rs.189.33, Rs.123.75 and Rs.185.33).
10. The average per capita purchase and per capita expenditure on selected instant food
products had a positive relationship with income of households. The per capita
purchase of Dosa/Idli mix, pickles and sambar masala was 0.69 kg/capita/month,
0.07 kg/capita/month and 0.05 kg/capita/month and the expenditure on this was Rs.
50.32, Rs. 5.90 and Rs. 7.68 in Bangarpet taluk. In case of Mulbagal taluk, the per
capita purchase of Dosa/Idli mix, pickles and sambar masala 0.50 kg/capita/month,
0.04 kg/capita/month and 0.05 kg/capita/month and the expenditure on this was Rs.
36.75, Rs. 3.07 and Rs. 8.02 respectively. In case of Gudibande, the per capita
purchase and expenditure on the respective products was 0.7 kg/capita/month, 0.03
kg/capita/month and 0.05 kg/capita/month and expenditure on this was Rs. 52.50, Rs.
1.32 and Rs. 7.70 respectively.
11. It was inferred that only some of the higher income groups such as IG3 and IG4
consumers in all the taluks in the study area purchased Dosa/Idli mix that to
occasionally, it is attributed to the fact that most of the consumers in rural areas
prepared Dosa/Idli mix in their home only as it involves less cost rather than
purchasing from the market. In case of pickles, at an overall most of the consumers
(25 per cent, 11.67 per cent and 8.33 per cent of Bangarpet, Mulbagal and
Gudibande taluk, respectively) purchased once in a month. In case of sambar
masala, 25 per cent of Bangarpet consumers and 23.07 per cent each of Gudibande
taluk consumers purchased once in a month and once in two months respectively.
12. The sources of purchase for selected instant food products in the study area were
retail shops and departmental stores. Only higher income groups respondents
preferred to purchase from departmental stores along with retail shops, rather all
most all the IG1 and IG2 respondents purchased the selected products from retail
shops.
13. Housewives were the major decision makers (56.41 per cent in Bangarpet, 86.67 per
cent in Mulbagal and 71.42 per cent in Gudibande) in all the income groups as the
housewives set the consumption pattern of food products in the family.
14. As the study was conducted in rural areas it was observed that, most of the
consumers of Dosa/Idli mix found to be medium loyal and no respondents were found
in high loyalty group but in case of pickles and sambar masala most of them
belonged to higher loyalty group followed by medium and low loyalty category.
15. Reasons for not preferring particular brand of the product by respondents was due to
the factors such as high price followed by poor taste, poor quality and less keeping
quality.
16. The purchased behaviour of different brands of instant food products revealed that, in
case of Dosa/Idli mix the consumers used MTR brand compared to Aashirvaad
brand. Most of the pickle buyers liked to purchase chinnis brand and MN brand than
other brands of the study area. And in case of sambar masala majority of
respondents preferred MTR brand followed by Everest brand and other local brands
that are available in the area.
17. The factors that influenced brand preference of the selected instant food products
were best quality followed by retailers influence, ready availability and convenience.
18. The demand for the selected instant food products in kolar district was estimated
based on the calculated per capita consumption and users population in their
respective areas and it was 78,922.46 kg/month (Dosa/Idli mix), 2,14,145.8 kg/month
(pickles) and 1,85,153.2 kg/month (sambar masala).
POLICY IMPLICATIONS
1. Most of the respondents in the study area are not purchasing the Dosa/ Idli mix,
Pickles and Sambar masala even though they are readily available in the market,
instead like to prepare their own. Hence, importance and awareness towards these
products should be created through various media or literatures especially in rural
areas.
2. The study revealed that in majority of the households women made the buying
decisions of instant food products. Sales promotion should target this group.
3. High price was an important reason for non-consumption of Dosa/Idli mix by
significant proportion of households. Thus, efforts may be made to reduce the price
of this product so as to increase its sale.
4. The retailers influence plays very important role in the purchasing of instant food
products and retail shops are the important source for purchase of these products by
consumers, retailers should be given training and incentives to promote sales.
5. There is a general perception among the consumers that Instant Food Products are
expensive than home made products, efforts must be made to overcome this
perception by propaganda and publicity.
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APPENDIX I
LIST OF TALUKS AND HOBLIES SELECTED UNDER STUDY
Sl.No.
Taluks
Hoblies
Bethamangala
Budikote
Avani
Byrakur
Somenahalli
Kasaba
Bangarpet
Mulbagal
Gudibande
APPENDIX II
INTERVIEW SCHEDULE
I. GENERAL CHARACTERISTICS:
1. Name of the respondent
2. Age
3. Education
: Illiterate/Primary/High/SSLC/PUC/Graduation
4. Occupation
5. Taluk
6. Hobli
7. Income (monthly) Rs
8. Type of family
: Joint/Nuclear
9. Food Habit
Family members
Adult males
Adult females
Children
Total
Number
II.
MONTHLY EXPENDITURE
Items
1. Food
2. Non-food
III.
Pickles
Sambar mix
Brand/
Own prepared
a)
b)
c)
d)
a)
b)
c)
d)
a)
b)
c)
d)
Quantity
Price/
unit Rs
Total
Amount
(Rs)
Purchased
From
Yes / no
a)
b)
c)
d)
e)
f)
g)
h)
Yes / No
b) Pickles
Yes / No
c) Sambar mix
Yes / No
Products
Brands
Sl.
No
.
1
2
3
4
5
6
Reasons
Low cost of preparation
Differences in tastes (between home
prepared and purchased)
Dislike on purchased product
High price of market product
Lack of Awareness of products
availability in the market
Non-availability of Instant food Products
Dosa/Idli mix
Pickles
Sambar
mix
Dosa/Idli mix
Pickles
Sambar
mix
1. Traditional Usage
2. Liked by the Family
3. Adds taste to food while eating
4. Readily Available
5. Save time of preparation
6. Products easily available for preparation
7. Influence of friends or relatives
8. Nutritive value
9. Any other
i.
ii.
iii.
VII. PRODUCTS PURCHASE FREQUENCY
Frequency
Weekly once
Fortnightly
Monthly once
Two months once
Three months once
Occasionally
Dosa/Idli mix
Pickles
Sambar mix
Products
Pickles
Sambar mix
Statements
Confirm to use the brand
Recommend the brand to others
Purchase the brand even if price
increases
Purchase the same brand even in
case of absence of sales promotion
Definitely
Probably
Definitely not
Statements
Strongly
Agree
Agree
Undecided
Disagree
Strongly
Disagree
Disagree
Strongly
Disagree
Quality
Brand image
Retailers influence
Reasonable price
Ready available
Packaging
Advertisements
Packaging design
Convenience
Statements
Quality
Taste
Price
Brand image
Package
Flavour
Colour
Keeping quality
Strongly
Agree
Agree
Undecided
2007
ABSTRACT
The present study made an attempt to analyze the existing buying behaviour of
Instant Food Products by individual households and to predict the demand for Instant Food
Products in Kolar district.
All the respondents were aware of pickles and Sambar masala but only 56.67 per
cent of respondents were aware of Dosa/Idli mix. MTR brand of Dosa/Idli mix, Chinnis and
MN brands of pickles and Everest and MTR brands of Sambar masala were aware among the
users of Instant Food Products.
About 96.11 per cent consumers of Dosa/Idli mix and more than half of consumers of
pickles and Sambar masala prepared their own. Low cost of home preparation and
differences in tastes were the major reasons for non consumption, whereas ready availability
and save time of preparation were the reasons for consuming Instant Food Products. Retail
shops are the major source of information and source of purchase of Instant Food Products.
The average monthly expenditure on Instant Food Products was found to be highest
in higher income groups. The average per capita purchase and per capita expenditure on
Instant food Products had a positive relationship with income of households.
Housewives were the major decision makers on consumption of Instant Food
Products. Most of the Dosa/Idli mix consumers found to be medium loyal and majority o
pickles and Sambar masala consumers belonged to higher loyalty group.
High price and poor taste were the reasons for not purchasing particular brand
whereas best quality, retailers influence and ready availability were considered for preferring
particular brand of products by the consumers.
Among branded products, MTR brand of Dosa/Idli mix, Chinnis and MN brands of
pickles and Everest and MTR brands of Sambar masala were highly preferred by the
consumers.