Research Proposal on Consumer Decision Analysis for Purchase of Fruit Drinks

Summary
This project aims to find out the various factors influencing the consumer decision while making a purchase of a fruit drink in the age group of 19-30 in the city of Pune. Background talks about various factors that have led us to undertake this study and how and to whom this report will benefit. Objectives talks of types of data the research project will generate and how these data is relevant. A statement of value of information is also included in this section. Research approach gives a non technical description of the data collection method, measurement instrument, sample and analytical techniques. Due to the changes in the beverage market there is a need to identify and evaluate the reasons for the shift in the consumer purchasing pattern. This study aims to determine the factors influencing the consumer decision while buying fruit drinks in the age group 19-30 in the city of Pune. There is also need to study the factors that are now driving the consumer’s purchasing decision. Also, due to the increase in the competition there is a need to determine the awareness levels for the various brands amongst the consumers. With the availability of a number of channels of distribution for the beverages in India, will also try to identify the most preferred shopping channel of beverages for a consumer.

. 2. Companies can also utilise the factors influencing the choice of SKU for managing their portfolio of different SKUs in the fruit drink category. Companies can utilise this information for identifying the awareness levels of their respective brands in the fruit drink category. This report also contains broad based trends on consumer profile. Value of Information to Management This report aims to generate information on various factors influencing consumer decision while purchasing a fruit drink. To determine the most preferred SKU(quantity) in fruit drink category. awareness levels. usage patterns and fruit drink category as a whole which can be utilised to make inferences about the future. 3. Factors influencing choice of a particular fruit drink brand. 3. 2. To determine the reasons for consuming various fruit drink brands. Also companies can evaluate their positioning and promotion strategies based on the factors influencing the choice of a particular fruit drink brand. Data which research plans to generate 1. To determine the most preferred channel in the fruit drink category. Factors influencing the choice of fruit drinks over other beverages. Secondary research objective 1. The information on factors influencing the choice of a channel can be used to focus on the growing channels and also in managing existing channels.Objectives Primary research objective To determine the factors influencing the consumer decision while buying fruit drinks in the age group 19-30 in the city of Pune. To determine the product attributes influencing purchase decision of fruit drink brands. Factors influencing the choice of a particular channel in fruit drink category. 4.

4. All the further analysis was then carried out using SPSS. Buyers who have been consuming fruit drinks were better able to answer the questions regarding the influencing factors and the reasons for their consumption and purchase.Research Approach Data collection methods 1. 2. Analysis Techniques 1. their spending patterns will also be mapped. Also tried to focus more on the college going crowd and young professionals as they would be more interested in trying out new products and were more conscious. fruit drinks. Secondary Research External secondary data has been generated to obtain volume of sales regarding beverage markets. The data was extracted and put in MS Excel. The samples collected from internet have also been very valuable in the research. Samples The data was collected from 100 samples for the analysis. The main demographics targeted were the younger age group as they are more health conscious and aware of such health drinks. Measurement Instruments: 1. The measurement instrument in the questionnaire was a five point Likert scale. each of the brands and the positioning of each of the brands. their frequency of visits and the channels they choose. . The analysis techniques used have been on SPSS and the tests were performed to ascertain the factors influencing the consumer decision while buying fruit drinks. Apart from details regarding their choice of drink for refreshment. The measurement was designed to get a fair idea about the various attributes and conducted factorial analysis of the important attributes. 3.

In the first survey a greater number of college students have been surveyed.004 0.643 0.072 0.033 0. Various statistical techniques as learned have been implemented and conclusions as best possible have been drawn making few assumptions as and when required.2.013 0.118 0.043 .043 -0. Factor Analysis The Perceptual mapping for various factor recognized: Rotated Component Matrix(a) Compone nt health and hygiene media influence convenience product features package design range_flavours availability brandambassad or visual_packg price quantityavailabl e promotionsche mes packetcleanline ss brandvalue nutritionvalue flavour adfreq expirydate 0.067 0.046 0. The data might not be representative of the entire population.152 -0.172 -0.08 0.872 0. Also conducted correlation tests to find out the various reasons for purchasing any particular brand of fruit drink.438 0.074 0.108 -0.805 -0. It was done in a random manner and no particular technique followed.8 -0.041 -0.261 0. Since no data was on interval or ratio scale it was not feasible to conduct Regression and ANOVA.118 -0.847 0. Ultimately I identified 5 factors which mainly have an influence.633 0.066 0.125 0. 2. The main limitation is the sampling conducted.06 -0.778 0.009 0.056 0.042 0. Limitations: 1.159 -0.04 0.779 0.112 0.028 -0. Factor analysis was conducted to discern out of the 13 factors mainly which factors influence the buying habits of the consumers.691 -0.113 0.3 0.926 -0.032 -0.116 0.084 -0.011 0.003 0.82 -0. 3.065 0.001 -0.794 -0.009 -0.069 0.023 0.052 0.253 0.147 -0.244 -0.088 -0.039 0.072 0.062 0. 3.088 0.856 0.014 -0.14 0.181 0.

2. .Extraction Method: Principal Component Analysis. Visual Packaging Attributes those were not important: 1. 2. Packet cleanliness Nutrition Value Expiry Date Factor 2: Media Influence 1. Promotion Schemes Brand Value AD Frequency Factor 3: Convenience 1. a. Availability Factor 4: Product Features 1. 2. The factors recognized after the factor analysis are as under: Factor 1: Health and Hygiene 1. Price Flavor Factor 5: Package Design 1. 1. 2. The various factors mapped according to the rotated results of factor analysis. 3. 3. 2. The factors were given names based on the attributes in them. Brand Ambassador Quantity Available The perceptual maps show the mapping of different factors in the minds of the customers and the association between them. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 6 iterations. The data was reduced from many attributes to 5 factors that have similar attributes. Range of flavors 2.

The attribute brand ambassador and package sizes available are not a major attribute in any of the factors. Value Pearson ChiSquare Likelihood Ratio Linear-by-Linear Association N of Valid Cases 19. 4. Sig. This justifies the fact that almost all the major fruit drinks are not endorsed by any of the big brand ambassador barring a few such as minute maid pulpy orange (Nikhil Chinappa ) .380 8.These factors were used to form the factor analysis where two factors were mapped on X and Y axis to know the relation between them.016 .109 100 df 9 9 1 (2-sided) . CrossTabs 1.117a 20. 3. If a target consumer is focused upon then the factors can be changed and a different map can be formed.024 . PURCHASE FREQUENCY VS SKU PREFERRED Crosstab SKU 1 purchasefrequen 1-3 times 4-6 times cy more than 6 times rarely Total Chi-Square Tests Asymp. The factors help the company to know how the product is currently mapped in the customer’s mind. Also the variety of the package sizes available is not affecting the consumer decision while making a purchase for fruit drinks.004 200 ml 300 ml 500 ml litre Total 25 2 5 2 34 15 6 6 0 27 7 11 58 1 1 10 4 5 20 4 6 12 16 23 100 .

Sig. 10 cells (62. PURCHASE FREQUENCY VS GENDER Crosstabulation Count gender male female 19 15 18 9 12 17 66 4 6 34 Total 34 27 16 23 100 purchasefrequ 1-3 times 4-6 times ency more than 6 times rarely Total .Chi-Square Tests Asymp.05 (95% confidence level). This is an indication of the fact that people preferring smaller SKUs usually purchase more as compared to others.5%) have expected count less than 5.60.024 . Since p value is less than alpha i. .109 1 .e.004 Association 1. The minimum expected count is 1. therefore h0 is rejected.117a 20.380 df 9 9 (2-sided) .016 8. Value Pearson ChiSquare Likelihood Ratio Linear-by-Linear 19. is 2. This shows that there is high association between purchase frequency and SKU or quantity packs. Thus high association between purchase frequency and SKU (pack sizes ) established .

122 Association N of Valid Cases 100 a.Chi-Square Tests Asymp. Sig. Since p value is greater than alpha i. 3.427 2.776 df 3 3 (2-sided) .e. CHOICE OF CHANNEL VS FACTORS AFFECTING CHOICE OF CHANNEL Crosstabulation Count Reason for channel Ambien Nearne Servic Reputati Occasi Pricing chann Retail el store Supermar ket Cineplex Restauran ts Travel Pan shops Others Total 4 4 1 1 1 0 1 12 ce 8 6 0 3 2 2 0 21 ss 23 6 0 1 1 0 0 31 e 0 0 0 1 0 0 0 1 Display 13 6 2 3 1 0 0 25 on 0 1 2 0 0 0 0 3 on 6 0 0 0 0 0 1 7 Total 54 23 5 9 5 2 2 100 . The minimum expected count is 5.776a 2. 0 cells (. therefore there is no association between purchase frequency and gender.0%) have expected count less than 5.428 .44.387 1 .05 (95% confidence level). Value Pearson ChiSquare Likelihood Ratio Linear-by-Linear 2. o.

refreshment.211 36 .293 Association N of Valid Cases 100 a.e. mental lift. CROSSTABS OF PURCHASE FREQUENCY VS REASONS FOR HAVING FRUIT DRINKS I conducted crosstabs of purchase frequency with the scores /ranking given by various respondents to the various reasons for drinking fruit drinks such as socialisation.108 1 . out of all these crosstabs association was found between two cases. 0. enjoyment. The two cases have been given below: 1. The minimum expected count is . basic thirst.8%) have expected count less than 5.05 (95% confidence level) therefore Ho is rejected. Thus a high association is established. 43 cells (87. This shows that there is high association between choice of channel and factors affecting the choice of channel.059 Linear-by-Linear 1. Here p value is less than alpha i.165 36 . attitude. Sig. This gives an indication such that those people who consider availability and nearness as their factor affecting the choice of channel might prefer buying fruit drink from retail stores or grocery stores.02.001 Likelihood Ratio 50. taste etc.Chi-Square Tests Asymp. Value df (2-sided) a Pearson Chi-Square 68. PURCHASE FREQUENCY VS REFRESHMENT .

This might be an indication of the fact that people drinking fruit drinks for refreshment purpose generally buy more as compared to others. . 12 cells (60. Since p value is less than alpha (95% confidence level) thus there is high association between refreshment purpose and purchase frequency. Value Pearson Chi-Square 20.628a Likelihood Ratio Linear-by-Linear Association N of Valid Cases 23.056 .025 . Sig.0%) have expected count less than 5.332 .108 100 df 12 12 1 (2-sided) .32.Crosstabulation Count refreshment neither strongly disagre agree nor purchasefreq 1-3 times 4-6 times uency more than 6 times rarely Total disagree 20 18 9 8 55 e 7 6 7 12 32 disagree 5 0 0 2 7 agree 2 1 0 1 4 strongly agree 0 2 0 0 2 Total 34 27 16 23 100 Chi-Square Tests Asymp. The minimum expected count is .742 a.

PURCHASE FREQUENCY VS BASIC THIRST Crosstabulation Count Basic thirst neither strongly disagre agree nor Purchase frequency disagree 1-3 times 6 4-6 times 11 more than 6 times rarely Total 3 11 31 e 15 6 9 9 39 disagree 7 6 0 2 15 agree 5 4 4 0 13 strongly agree 1 0 0 1 2 Total 34 27 16 23 100 Chi-Square Tests Asymp. Conclusion On the basis of the data collected and the tests conducted I have arrived at the following conclusions: . Since p value is less than alpha (95%) therefore there is high association between purchase frequency and basic thirst /filling purpose. The minimum expected count is .010 Linear-by-Linear 4.177 12 . This might be an indication of the fact that people drinking fruit drinks for basic thirst / filling purpose generally buy more as compared to others.0%) have expected count less than 5.32.040 Association N of Valid Cases 100 a.262 12 . Sig. 12 cells (60.062 Likelihood Ratio 26. Value df (2-sided) a Pearson Chi-Square 20.223 1 .

• Also. • There is a high association between the channels preferred and the factors affecting these channels. On the other hand there is no impact of gender on purchasing frequency for fruit drinks. • In factor analysis I found out 5 factors which mainly have an impact on the purchase of a fruit drink. • The crosstab between purchase frequency and SKU showed that those purchasing smaller SKU’s purchase more frequently as compared to those who purchased a 500ml or 1litre. The most preferred SKU is 200ml packs which could be due to convenience. . There were two factors which did not have any significant impact.• With the help of correlation I was able to identify the attributes that consumers associate with the various fruit drinks and which in turn drive their purchase decision for the same. The most important factor came out to be location or nearness of the channel. • There is also a high association between purchase frequency and reasons for consuming fruit drinks such as refreshment and fulfilling basic thirst. I found out that the most preferred channel for purchase in retail stores.

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