Abhinav Aryal - Report

Running Head: Consumer Buying Behavior 1
A Study of Consumer Buying Behavior of Packet Food Products in Lalitpur

District, Nepal
By,
Abhinav Aryal
Roll No: 14030197
P.U Registration No: 2013-2-03-0205
A Research Report
Submitted to
Mr. Amit Koirala
In partial fulfillment for the course of Project Work
Ace Institute of Management
New Baneshor
Kathmandu
November, 2016
Declaration
I certify this report is of my own making. The data which has been presented here is collected by
me. The data has not been used for any purpose other than to complete this report. And from
wherever I have collected secondary information, I have made sure to cite the original authors.
All the information stated in this report is true.
_____________
Abhinav Aryal
BBA
November, 2016
Acknowledgements
Nothing else could have proved the learning experience this project has provided to me. When I
heard last semester that we should do a project work in the upcoming semester I was not very
sure if I could to do it. It felt like a lot of academic pressures were about to hit me in such a short
time. But doing this project has made me understand that pressures convert into satisfaction with
every small achievement and those achievements motivate even further to complete the work.
Doing this project has made me realize my potential on how much I can achieve with hard work.
Another important thing I learned was the technical aspects of doing the research. I entered this
semester by knowing nothing about the practical way of doing research to knowing a whole lot
more. I didn’t even know softwares like SPSS existed but now I am very comfortable with using
the software. All in all, it has been a great experience for me doing this research.
I would like to thank Pokhara University for including this wonderful course in their curriculum
as a requirement to complete BBA degree. It teaches students a lot more than just conducting a
research
I would like to thank my college Ace Institute of Management for providing the necessary
resources which helped me complete this project.
And finally, I’m most thankful to Mr. Amit Koirala – my supervisor of this project – for
providing me with all the necessary help to complete this project. He has helped me in making
questionnaires, analyzing the data with SPSS which made doing this project so much easier than
it would have been without it.
Abhinav Aryal.
Abstract
This research is the study of consumers’ buying behavior of packet food items. Consumer buying
behavior is the study of patterns of consumption shown by consumers. This study has analyzed
consumer buying behavior in terms of consumers’ demographic factors, socio-economic factors,
the products’ factors, and finally marketplace factors. This data in this research is quantitative in
nature and first hand data has been collected from consumers of Lalitpur district, Nepal. The
study is descriptive as it describes how different factors influences consumer buying behavior.
The result shows that products’ convenience, price, and taste factors have high influence on
consumers’ buying behavior. Marketplace factors like department stores and sales promotions
also influence consumer buying behavior.

Contents
Acknowledgements ......................................................................................................................... 2
Abstract ........................................................................................................................................... 4
Chapter 1 ....................................................................................................................................... 10
Introduction ................................................................................................................................... 10
Purpose of the Study ................................................................................................................. 11
Statement of the Problem .......................................................................................................... 11
Research Questions ................................................................................................................... 12
Significance of the Study .......................................................................................................... 12
Delimitations of the Study ........................................................................................................ 12
Chapter 2 ....................................................................................................................................... 13
Literature Review.......................................................................................................................... 13
International Researches on Consumer Buying Behavior ........................................................ 14
National Researches on Consumer Buying Behavior ............................................................... 15
Theoretical Perspective ............................................................................................................. 16
Conceptual Framework ................................................................................................................. 20
Chapter 3 ....................................................................................................................................... 21
Methodology ................................................................................................................................. 21
Research Design........................................................................................................................ 21
Data Collection ......................................................................................................................... 21

Ethical Consideration ................................................................................................................ 22
Rappot Building ........................................................................................................................ 22
Questionnaire Design ................................................................................................................ 23
Measurement ............................................................................................................................. 23
Scaling....................................................................................................................................... 23
Sampling Design ....................................................................................................................... 24
Data Analysis ............................................................................................................................ 24
Chapter 4 ....................................................................................................................................... 25
Results and Discussions ................................................................................................................ 25
Frequency of Purchase .............................................................................................................. 29
Product Attributes Preferred ..................................................................................................... 31
Sales Promotion Influence ........................................................................................................ 32
Shop Preferred .......................................................................................................................... 33
Reasonable Price ....................................................................................................................... 34
Convenience .............................................................................................................................. 36
Quality....................................................................................................................................... 38
Department Stores ..................................................................................................................... 39
Degree of Influence of Sales Promotion ................................................................................... 42
Degree of Influence of Vibrant Packaging ............................................................................... 43
Propensity to Purchase Same Food Each Time When Shopping ............................................. 45

Cross Tabulations...................................................................................................................... 47
Age-Group and Frequency of Purchase .................................................................................... 47
Age Group and Product Attributes Preferred............................................................................ 48
Age Group and Shop Preferred ................................................................................................. 49
Age Group and Convenience of the Product ............................................................................ 50
Age Group and Vibrant Packaging ........................................................................................... 51
Age Group and Brand Loyalty.................................................................................................. 52
Gender and Frequency of Purchase .......................................................................................... 53
Gender and Influence of Sales Promotion ................................................................................ 54
Gender and Convenience of Products ....................................................................................... 55
Family Income Levels and Frequency of Purchase .................................................................. 57
Family Income and Product Attributes Preferred ..................................................................... 59
Income Level and Influence of Sales Promotion ...................................................................... 60
Education Level and Shop Preferred ........................................................................................ 61
Education and Convenience ...................................................................................................... 63
Education Level and Degree of Influence of Sales Promotion ................................................. 63
Chapter 5 ....................................................................................................................................... 65
Findings......................................................................................................................................... 65
Research Question 1: How do demographic factors affect the buying behavior of the
consumers? ................................................................................................................................ 65
Age and Consumer Buying Behavior ....................................................................................... 65
Age and Product Attributes Preferred ....................................................................................... 65
Age and Shop Preferred ............................................................................................................ 66
Age Group and Convenience of the Product ............................................................................ 66
Age Group and Influence of Vibrant Packaging....................................................................... 66
Age group and Brand Loyalty................................................................................................... 66
Gender and Frequency of Purchase .......................................................................................... 67
Gender and Influence of Sales Promotion ................................................................................ 67
Gender and Influence of Convenience ...................................................................................... 67
Education Level and Shop Preferred ........................................................................................ 68
Education Level and Convenience............................................................................................ 68
Education Level and Degree of Influence of Sales Promotion Tools ....................................... 68
Research Question No. 2: How do socio-economic factors influence the buying behavior of
consumers? ................................................................................................................................ 69
Income Level and Frequency of Purchase ................................................................................ 69
Income Level and Product Attributes Preferred ....................................................................... 69
Income Level and Influence of Sales Promotion ...................................................................... 70
Research Question No. 3: How do the product factors affect buying behavior of the
consumers? ................................................................................................................................ 70
Taste, Quantity, Price, Durability, and Variety Factors ............................................................ 70

Price Reasonability ................................................................................................................... 71
Convenience .............................................................................................................................. 71
Perceived Quality ...................................................................................................................... 71
Vibrant Packaging ..................................................................................................................... 71
Research Question No. 4: How do marketplace factors affect buying behavior of consumers?
................................................................................................................................................... 72
Influence of Sales Promotion Tools.......................................................................................... 72
Influence of Department Stores ................................................................................................ 72
Chapter 6 ....................................................................................................................................... 73
Conclusion .................................................................................................................................... 73
References ......................................................................................Error! Bookmark not defined.

Chapter 1
Introduction
Consumer behavior is the study of how people buy, what they buy, when they buy and why they
buy (Sakvikar & Katole, 2012). A great deal of research focuses on how consumers shop, but the
rationale behind their chosen behaviors remains somewhat underserved (Paul & Hogan, 2015).
This study will be conducted to bridge that gap between consumers and their decision making
process while buying grocery items in Lalitpur district of Nepal.
Grocery item is comprised of foods that are normally non-perishable in nature and are normally
packaged in cans, bottles or boxes. The stores who sell these grocery items are called grocers. In
Lalitpur district of Nepal, the numbers of grocers are increasing rapidly. These grocers provide a
wide range of products from vegetables, rice, fast food, and even magazines. With the growing
population of Lalitpur, these stores seem to be gaining popularity.
Consumer buying behavior of packet food products has many influencing factors such as
economical, social, cultural, psychological, and lifestyle (Ali & Moorthy, 2010). Furthermore,
long-term success of manufacturer marketing actions often depends on consumer response,
reaction of retailer and competitor (Miremadi & Faghani, 2012). The modern concept of
consumer buying behavior also says that consumer purchase goods not only for what they do but
also what they stand for. This implies that consumers try to build a relationship between them
and what they purchase (Katiyar & Katiyar, 2014). This relationship does not just extend to the
products but also where consumers buy the products (Petro, 2013). So the aim of this research is
to study the several factors which influence consumer buying behavior.

Purpose of the Study
The purpose of this study is to fulfill the partial requirement for the course of BBA of Pokhara
University. This study also aims to understand the factors which affect the buying behavior of
consumers of grocery items. Understanding the behavior of consumers will help the retailers
develop business strategy according to consumers’ behavior.
This research will focus on influence of socio-economic factors (Income, Lifestyle),
demographic factors (age, gender, education, and residence), product factors (price, quality,
variety, convenience and, packaging) and marketplace factors (market infrastructure, additional
services) in consumer buying behavior of grocery items.
Statement of the Problem
The retail stores in Kathmandu are divided into primary locations and secondary locations.
Primary locations are the areas around the main road. And secondary locations are the areas far
from the main road. Most department stores like Bhatbhateni, Saleways etc are situated in the
primary location. And most “Kirana” stores or small scale retail stores are situated in the
secondary location. From observation, we can see that the inflow of customers in the grocery
section of department stores is much higher than the inflow of customers in Kirana stores
(although both these stores sell similar items). So, to understand this gap we must understand the
buying behavior of the consumers and the factors affecting this buying behavior.
Another important aspect which motivated me to do this study is the lack of researches
specifically in this topic. From literature review I could easily find the researches on consumer
buying behavior of food products in international markets. But in the context of Nepal, the
research on this topic is too few. Since, understanding consumer buying behavior is an important
for many businessmen and marketers, lack of research has brought gap in the knowledge of
consumer buying behavior in the context of Nepal.
Research Questions
1. How do demographic factors (age, gender, education) affect the buying behavior of the
consumers?
2. How do socio-economic factors (income, lifestyle) affect the buying behavior of the
consumers?
3. How do product factors (Quality, price, variety, convenience, and packaging) affect the
buying behavior of the consumers?
4. How do marketplace attributes (market infrastructure, additional services) affect the buying
behavior of the consumers?
Significance of the Study
This research will be useful to any retailers who want to develop a strategy for modern grocery
retailing market based on consumer preferences. This research will also help in further studies of
consumer buying behavior of grocery items.
Delimitations of the Study
1. This research will only deal with consumer buying behavior of Kathmandu valley.
2. This study will be limited to buying behavior on grocery items only.
3. The grocery items will not include perishables like fruits and vegetables.
4. This research will only use structured questionnaire survey method for data collection.
Chapter 2
Literature Review
Consumer buying behavior refers to the buying behavior of the individuals and households who
buy goods and services for personal consumption. Consumers around the world are different in
various factors such as age, income, education level and preferences which may affect the way
they avail of goods and services. This behavior then impacts how products and services are
presented to the different consumer markets. There are many components which influence
consumer behavior namely; cultural, social, personal, and psychological (Kotler & Armstrong,
2014).
(Kwan, Yeung, & Au, 2004) conceptualized consumer buying behavior pattern with consumer
mental orientation variables viz., perfectionism consciousness, brand consciousness, novelty and
fashion consciousness, impulsive and careless consumer, confused by over choice consumer,
habitual and brand loyal consumer, recreational and hedonic shopping conscious consumer, price
and value conscious consumer.
The major drivers for retail store choice of customers seem to be nearness to the place of
residence and the comfort level that the customer has in dealing with the store owner measured
in terms of personal relationship with the shopkeeper (Sharma, Bhattacharya, & Sonwaney,
2012). But there are also other hidden factors which are in the psychology of the consumers. One
hidden factor is that consumers tend to make psychological and emotional relationship with the
products they consume and therefore affect the buying behavior. Another factor is
interdependence of products, for example, tea and sugar (Katiyar & Katiyar, 2014).
Quality should also be taken as a factor which affects the buying behavior. Quality also can be
divided into perceived and objective quality (Zeithaml, 1988). Objective quality is the actual
superiority of the product. It can be measured in predetermined ideal standard or standards.
Perceived quality, on the other hand, is defined as consumer’s judgment about the superiority of
the product. Both of these factors have their own kind of effect on consumer buying behavior.
Price of the product is another factor which affects consumer buying behavior (Zeithaml, 1988).
Price is something that is given up or sacrificed to obtain a product. But price can be defined in a
broader sense. According to Kotler & Armstrong (2012), price is the sum of all values that
customer give up to gain the benefits of having or using product or services. Therefore, price can
also be linked with value, which is in fact the mix of price and quality in a product.
International Researches on Consumer Buying Behavior
According to the research conducted by Ali & Kapoor (2010) in India, it was found that
consumers prioritized the cleanliness of food products followed by price, quality, variety,
packaging and non-seasonal availability. The consumers’ preference of marketplace depended on
the convenience along with additional services, attraction for children, basic amenities and
affordability. Results suggested that most of the food and grocery items were purchased in loose
form from nearby outlets.
The research of (Muruganantham & Bhakat, 2013) was conducted to understand the impulsive
buying behavior of consumers. This study provided the framework on how megastores,
hypermarkets, and malls have been able to increase the impulsive buying behavior of the
consumers. This research compiles various literatures in the field of retailing and consumer
behavior. This study has identified four major factors which influences the impulsive buying
behavior of the consumers. These factors are the shop’s environment, shopper’s personal traits,
product itself, and socio-economic and demographic factors.
Another study conducted by (Lichy & Pon) identifies how foreign influence affects the buying
behavior of consumers. This study which was conducted on Anglo-Saxons who were living in
France describes how globalization has affected the buying behavior of these groups. The
research was conducted to understand the frequency of purchase of Anglo-Saxon food produce
among Anglo-Saxons who worked in France. This research found that many people, in fact,
purchased French food products rather than Anglo-Saxon products. It concludes that most people
are buying food products of a different country rather than their country of origin because of
globalization.
National Researches on Consumer Buying Behavior
The research done by (Thagunna & Khanal, 2013) identifies the major factors influencing the
buying behavior of Nepalese women. According to the research, the major factors influencing
the buying behavior of women in Nepal are customer service and lifestyle followed by
affordability, and value.
Another research on Nepalese consumer buying behavior done by (Bhatta) talks about buying
behavior of customers of banking sector in Nepal. But this research is irrelevant to study of
buying behavior of packet food items.
There is lack of published research on consumer buying behavior of grocery items in context of
Nepal. This gap is one of the major drivers for conducting this particular research.
Theoretical Perspective
To understand consumer buying behavior, a detailed view of the possible factors affecting
customer buying behavior must be taken. The possible factors affecting consumer buying
behavior as analyzed by Kotler & Armstrong (2012) are as follows.
1. Cultural Factors
It includes culture, subculture and social class
 Culture
Culture is the learned values, perceptions of things by a person from his/her
family and other social institutions. Culture differs from one geographical
location to the other. Due to differences in culture, buying behavior of people
who are the part of different culture tend to be different. And shift in culture
allows marketers to bring new products into the market. For this reason,
marketers are constantly looking for patterns and trend in the culture of different
geographical locations.
 Subculture
Subculture refers to the culture within a culture. It is the small part of a broader
culture. They follow the norms of the broader culture but they also have their
own unique norms which are only followed by that small group. Marketers
sometimes tailor products according to the needs of different subcultures. The
examples of subculture in Kathmandu are Newari Community, Madhesi
Community etc.
 Social Class
Kotler and Armstrong (2012) take social class as a culture. They can be further
divided into upper class, upper middle class, middle class, lower middle class and
lower class. It is measured in the combination of occupation, wealth, income,
education and other variables.
2. Social Factors
Consumer buying behavior is also influenced by social factors like social groups, family,
social roles and status.
 Social Groups
Many small groups affect a person’s buying behavior. These groups can be
divided into two types - primary groups and reference groups. Primary groups are
peers, family and other face-to face related people. Reference group refers to that
group to which a person compares himself.
 Family Members
Family members have a major influence on the buying behavior of consumers.
And it is also considered as the most important buying organization of the
society. Organizations have been interested in the roles of husband, wife, and
children in influencing buying behavior. Marketers mostly target one or more of
these groups while advertising their products.
 Social Roles & Status
People are a part of many groups in the society. And they have different roles in
each of those groups. The buying behavior is influenced by their roles and status
in different groups. People usually choose products appropriate to their roles and
status.
3. Personal Factors
Buying behavior is also influenced by personal factors like consumer’s age, occupation,
economic situation and lifestyle.
 Age
People change their choice of products over their life time. Taste in food, cloth,
and recreation changes with age. The stages through which a person passes over
his lifetime like marriage, having children, purchasing a home also affects
consumer’s buying behavior. These stages are called life-cycle stages. Some
businesses target their markets based on the various life cycle the consumers
pass.
 Occupation
The buying behavior of consumers is also influenced by their occupation.
 Economic Situation
The economic situation of consumers influences their buying behavior. Marketers
tend to watch the trends in personal income, savings and interest rates. So the
per-capita income, growth rate of a country is important to understand the overall
buying behavior of consumers.
 Lifestyle
The lifestyle which comes from association with different cultures, subcultures,
and social class influences the buying behavior of consumers. Lifestyle is a
person’s pattern of living, his/her food choices, recreational choices etc.

Marketers carefully analyze the lifestyle of the target market and design their
products accordingly.
According to Greg Petro (2013), the consumers in U.S.A can be classified into baby boomers,
generation X, millennials, and generation Z. All of these generations have been brought up in
different times. Baby boomers are the people born during the 1960s and 1970s, generation X
during 1980s, millennials during 1990s and generation Z during 2000s.
Petro (2013) says that the relationship that baby boomers had with retailers was very different
than of other generations. Baby boomers connected with their retailers in a more emotional way.
The retail shop they visited by not determined by the retail shop itself but the person who owned
or operated the retail shop. These groups knew the owners of the retail shop and the owners of
the retail shops knew them by name.
But with change in time, the retail business also changed. The new generations are brought up
into retail system where goods were sold on large shelf and there was very little interaction with
the operators of the store. Customer loyalty through emotional experiences is difficult to form in
these stores. So customers are given loyalty cards and other benefits to keep them purchasing
goods from a particular retailer. His article ends with a question “how can retailers form an
emotional connection with its customers?”

Conceptual Framework
Consumer Buying Behavior
Demographic Factors
Socio -Economic Factors Product Factors Marketplace Factors

Chapter 3
Methodology
Research Design
In the research, the participants are only the people of different age groups living inside Lalitpur
district. The research will be descriptive and will figure out the major factors affecting customer
behavior in Lalitpur district.
Every research work requires a philosophical understanding. These philosophical understanding
can be categorized into ontology and epistemology. Ontology refers to the nature of reality. In
this research, the reality is that there are certain factors which affect the buying behavior of
customers. The factors are out there in the field. And this research will find the factors affecting
customer buying behavior.
Epistemology is the theory of knowledge. It deals with the possible ways of gaining knowledge.
But the nature of knowledge is that it must go hand in hand with the reality. So, epistemology
and ontology must exist together. The framework of the research has already laid ground on the
factors affecting customer buying behavior. Therefore, this research has identified and analyzed
how much these factors influences the buying behavior of consumers of Lalitpur district through
data collection and its interpretation.
Data Collection
The method of data collection in this research was survey. To conduct the survey, a
questionnaire was designed to match the requirements for the analysis of customer buying
behavior. The data collection includes ethical consideration of i) Not forcing the participants and
ii) Not manipulating the data.
Ethical Consideration
When most people think of ethics, they think about the rules of distinguishing between right and
wrong. This is in the general sense. More specifically, research is defined as the “norms for
conduct” which distinguishes between acceptable and unacceptable behavior (Resnik, 2015).
While conducting research it is not acceptable to put participants in risk of any kind, and,
therefore, I will make sure not to put participants in any kind of risk.
The questionnaire I design did not ask for names of the participants. This removed the risk of
their identity being leaked out. I also asked for the participant’s consent before giving them the
questionnaire. I did not force any participant in any way to fill up the questionnaire.
Ethical consideration also includes not manipulating the data (Saunders, 2016). So, I have
presented data just the way it has been provided by the participants without making any
alterations in it.
Rappot Building
I need to build trust with my participants before I can collect data. The best way to build trust is
by telling them what the research is about by meeting them personally. But my data collection
method is through questionnaire and I will distribute it through different channels (like internet,
friends) I won’t be able to meet with every participant personally. So, I will write what the
research is about and why am I doing this research on the head of every questionnaire. If I do
this, the participants will know what the research is about even without my presence and can
choose to fill up or not fill up the questionnaire.

Questionnaire Design
The questionnaire will comprise of single response, multiple choice single response, multiple
choice multiple response, and Likert Scale. Initially, personal information regarding age, gender,
education of the respondent was asked in the questionnaire. Then the questions regarding income
and lifestyle were asked. After that, the questions regarding the respondent’s preference of the
attributes of the product were asked. Finally, the questions regarding marketplace attributes were
asked.
Measurement
For the purpose of the research, nominal scale was used. In this scale, numerals were assigned to
the objects in order to distinguish one object from another. This measurement scale was used to
distinguish and classify the respondents in terms of their gender and age.
1. Gender: Male (1) Female (2)
2. Age Group: 16-25 (1); 26-35 (2); 36-45 (3); 45 and above (4)
Scaling
For the purpose of the research, simple attitude scales and likert scale were used.
Simple Attitude Scales
1. Single Response Scales: This scale offered two mutually exclusive choices such as yes
or no.
2. Multiple Choice Single Response Scales: This scale offered many options and the
respondent should choose only one of them.

3. Multiple Response Scale: The respondents could select more than one option from many
options given to them.
Likert Scale
Likert scale was also used in the research. The respondent answered the degree of agreement and
disagreement on a series of statement provided to them. These statements stated the factors that
customers think are important while choosing a packet food item. The likert scale had 5 points
ranging from strongly agree to strongly disagree.
Sampling Design
All the people in Lalitpur district buying packet food items was the population of the research.
But for sample, only 100 people were taken.
The sampling technique will be non-probability sampling. Under this sampling technique,
convenience sampling will be used because it is inconvenient to use all the population of Lalitpur
district.
Data Analysis
The data collected from the questionnaire survey is analyzed in tabulated form. SPSS software is
used to carry out statistical analysis on the collected data. To analyze and interpret the data, this
research has used frequency tables and cross-tabulations with frequency and percentage to
analyze the data.

Chapter 4
Results and Discussions
Age group measures the maturity of customers in the market. Some studies even point out that
customers who are relatively lower in age tend to purchase groceries more impulsively (Akram,
Hui, Khan, Hasim, & Rasheed, 2016). So it is important to classify the respondents according to
their age group because it is one of the demographic factors which affects consumer buying
behavior.
Figure 1-A: Distribution of Respondents According to Age Group
From the above table, we can see that the total sample size is 100. The percentage of sample
population with age between 16 to 25 years is 65. This means that the total number of
respondents in this research having age between 16-25 years is 65. 14 of the respondents are of
age between 26-35 years. 9 of the respondents have age between 36-45 years. And finally, 12 of
the respondents have age above 45 years.
So this study examines the buying behavior of consumers of packet food items but much
emphasis is placed on buying behavior of population with age group of 16-25 years. But this
does not mean that this study does not at all examine the buying behavior of higher age group.
Age group represents one of the demographic factors of this research and is one of the basis
through which this study is conducted.
Gender is another important demographic factor to analyze consumer buying behavior. The
choice of food products for male consumers differs from that of female consumers. These
choices are the result of different personality factors present in male and female population
(Vabø & Hansen, 2014). Some research says that men shop “to get something done” while
females shop just because they “love it” (Aswegen, 2015).
Table 1-A: Distribution of Respondents According to Gender
Valid
Gender Frequency Percent
Female 44 44
Male 56 56
Total 100 100
According to the above table, we can see that the percentage of male respondents is 56 and the
percentage of female respondents is 44. So the number of male respondents is slightly more than
the number of female respondents.
Gender is also another demographic variable which forms another basis to examine consumer
buying behavior in this study. Other variables like frequency of purchase, product attributes are
examined according to the gender of the respondents. So, the importance of gender in
understanding consumer buying behavior cannot be neglected.
In general, men are more effortless while shopping. They tend to save time by quickly picking
what they want from the isle. By contract, females put more effort while shopping and spend a
lot of time in it (Aswegen, 2015). But is this behavior same while purchasing packet food items?
This study examines this factor too.
Another important factor which affects consumer buying behavior is monthly family income. In
developed countries, young people with average income tend to show much more impulsive
buying behavior then older people. But in developing countries like Nepal, young people are
dependent on their families and their buying behavior is influenced by family choices (Akram,
Hui, Khan, Hasim, & Rasheed, 2016).
Figure 1-B: Distribution of Respondents According to Monthly Family Income

In the above table, “Unspecified” refers to the number of respondents who did not feel
comfortable to share their family income. The total percentage of unspecified response is 4.
Moreover, 1% of the total respondents have family income less than Rs 10,000. Again, 1% of
total respondents have family income between Rs 10,000 to Rs 20,000. 7% of the respondents
have family income between Rs 20000 to Rs 30000. 10% of respondents have family income
between Rs 30,000 to Rs 40,000. Finally, 77% of respondents have family income more than Rs
40,000 monthly.
Another factor in consumer buying behavior which this study seeks to examine is education level
of the respondents. Studies say that education background has a big impact on consumer buying
behavior. One study states that there is relation between the consumer’s education level and
place of purchase. Also there is significant difference between education level and how people
perceive value for their money (Egziabher, 2015).
Figure 1-C: Distribution of Respondents based on Education Level

From the above table, 3% of the total respondents have education level below +2. 10% of
respondents have education up to intermediary. 62% of the respondents have education up to
bachelors level. Finally, 25% of the total respondents have education level above bachelors level.
This marks the end of data regarding demographic variables. In the next section data regarding
psychological factors, product factors and marketplace factors will be presented.
Frequency of Purchase
This section deals with how often respondents purchase packet food products. In this study,
respondents have answered with one of these four options: Everyday, Thrice a Week, Twice a
Week, and Once a Week. Respondents were asked to choose one of these options. The results are
presented below.
Table 1-B: Distribution of Respondents According to Frequency of Purchase
Frequency of
Purchase Frequency Valid Percent
Once A Week 26 26
Twice A Week 17 17
Thrice A Week 16 16
Everyday 41 41
Total 100 100

From the above table, 26% of the respondents purchase packet food only once a week. This
means that these consumers have the lowest propensity to consume packet food items. 17% of
the consumers purchase packet food twice a week. This means that they have moderate
propensity to consume packet food items. 16% of the consumers purchase packet food thrice a
week. They have a high propensity to consume packet food items. Finally, 41% of the consumers
purchase packet food on a daily basis. This group has the highest propensity to consume packet
food items.
Next section deals with what attributes do consumers want most in packet food items.
Product Attributes Preferred
In this section, some of the product factors which influence buying behavior of consumer are
presented. The product attributes which this section presents are Taste, Quantity, Price,
Durability, and Variety. Respondents were asked to choose two of these attributes. The results
are shown below
Figure 1-D: Distribution of Respondents According to Product Attributes Preferred
We can see that 2% of the respondents purchase packet food only because of the taste of the
product. 9% are influenced by quantity of food in the packet and the price of the food item. 1% is
influenced by the quantity of the food in the packet and different choices of packet food items.
3% of respondents are influenced by the price of the food item and for how long the food item
can be stored. 17% of the respondents are influenced by the taste of the food item and quantity in
the packet. 41% is influenced by taste of the food and price of the food item. 10% is influenced
by taste and durability of the food item. And 17% is influenced by taste and different choices of
packet food items.
Sales Promotion Influence
This section deals with how much the respondents are influenced by sales promotion tools used
in the product as marketing strategy. This is a psychological factor which seeks to understand the
success of marketing on influencing buying behavior of customers. The respondents were
provided nominal option in “yes” or “no” format. They had to choose one of those options.
Table 1-C: Distribution of Respondents According to Sales Promotion Influence
Sales
Promotion Valid
Influence Frequency Percent
No 45 45
Yes 55 55
Total 100 100
From the above table, we can see that 55% of the respondents are influenced by sales promotion
tools in packet food products. And 45% of the respondents are not influenced by sales promotion
tools in the product.
Next section deals with where do respondents prefer to buy packet food products from.
Shop Preferred
To find out where do respondents normally shop for packet food items questionnaire has
categorized the options into two components. One component was “Local Kirana Dealers” and
another option was “Department Stores”. Respondents had to choose one of the options
Table 1-D: Distribution of Respondents According to Shop Preferred
Shop Valid
Preferred Frequency Percent
Local
“Kirana”
Dealers 27 27
Department
Stores 73 73
Total 100 100
From the above table, we can see that 27% of respondents prefer to go to local kirana dealers.
And 73% of respondents prefer going to department stores.
The following section presents Likert scale variables asked to respondents. I had prepared five
point likert scales to identify the degree of influence some factors had on consumer buying
behavior. These factors are Reasonable Price, Convenience, Quality, Department stores, Sales
promotion’s degree of influence, Vibrant Packaging, and Same food.
The results are given below.

Reasonable Price
This factor seeks to understand whether consumers purchase packet food because they think the
price is reasonable. It tries to analyze whether or not the consumers feel that packet food items in
the market have reasonable price. From another perspective, it analyzes the perceived value of
consumers towards packet food items. The distribution of respondents based on their perceived
value of packet food is presented below.
Figure 1-E: Distribution of Respondents Based on Whether They Think That Packet Food
Product Has Reasonable Price

From the above table, we can see that 3% of respondents feel that the price is very unreasonable.
5% of respondents feel that the price is somewhat unreasonable. 36% of the respondents think
that the price is neither unreasonable nor reasonable. 48% of the respondents feel that the price
of packet food is reasonable. And 8% of the respondents feel that the price is very reasonable.
This implies that strongly disagreeing respondents feel that packet food they consume do not
provide them with much value. And strongly agreeing respondents feel that the packet food they
consume provides them value.

Convenience
This section deals with the convenience of packet food items to the consumers. I asked
respondents if they buy packet food because they don’t have to waste time on cooking. The
results are presented below.
Figure 1-F: Distribution of Respondents Based on Convenience of Packet Foods
From the above table, we can see that 2% of respondents strongly disagree on buying packet
food because they don’t have to waste time on cooking (convenience). 12% disagree on the
same. 25% are neutral on buying packet food because they don’t have to waste time on cooking.
47% agree that they buy packet food because they don’t have to waste time on cooking. And
14% strongly agree that they buy packet food because of its convenience.
From the data, we can see that large number of consumers are busy and inclined towards
purchasing packet food because they don’t have time to cook. It is an important insight towards
the buying habit of customers especially in urban areas where consumers are extremely busy
working.
Quality
This section deals with whether consumers buy packet foods because they feel that the packet
food they consume is of good quality. It implies the perception of quality on packet food
products. The results are presented below.
Figure 1-G: Distribution of Respondents Based on Perceived Quality of Packet Foods
From the above table, we can see that 18% of respondents disagree that the packet food they
consume is of good quality. 50% of the respondents feel neutral towards the quality of packet
food they consume. 30% agree that the packet food they consume is of good quality. And 2%
strongly agree that the packet food they consume is of good quality.
Department Stores
This section examines how inclined people are to visit department stores. This inclination occurs
because of marketplace factors where consumers get variety of services and food choices. Some
people get what they want from local dealers whereas some like to shop to try new food to suit
their needs. So, analyzing how people are in visiting department stores identifies their shopping
habits and great deal of insight towards their buying behavior. The results of their inclination are
presented below.
Figure 1-H: Distribution of Respondents Based on Their Inclination to Visit Department
Stores
According to the table, 14% of the respondents are not inclined towards visiting department
stores to purchase packet food items. 19% are neutral about visiting department stores to
purchase packet food items. 51% are inclined towards visiting department stores to purchase
packet food items. 16% are strongly inclined towards purchasing food items from department
stores.
According to many studies on consumer buying behavior, it is clear that people who visit
department stores tend to buy more of the food items than they would normally purchase from
department stores. Due to this reason, department stores have contributed to the surging growth
of different types of food items. Marketers tend to put food items where consumers can touch
them because it has been researched that people tend to buy whatever they have touched on the
shelves of department stores. So, consumers buying food items from department stores provide a
great deal of insight on their buying behavior.

Degree of Influence of Sales Promotion
In the previous section, I discussed about whether the respondents were influenced by sales
promotion tools or not. The answers were either “yes” or “no”. So, it was limited in scope. This
likert scale analyzes how much influence sales promotion has on buying behavior of consumers.
The following table shows the data.
Figure 1-I: Distribution of Respondents Based on Degree of Influence by Sales Promotion
From the above table, we can see that 4% of respondents are not influenced by sales promotion
tool in food items at all. 18% are not influenced by sales promotion tools while purchasing
packet food items. 33% are neutral about the influence of sales promotion tools on them. 40%
are influenced by sales promotion tools. And 5% are strongly influenced by sales promotion
tools.
From the data, we can see that most of the people are either neutral or are somewhat influenced
by sales promotion tools used to market packet food items.
Degree of Influence of Vibrant Packaging
Product packaging has been a major research subject for many marketers and researchers alike.
The role of packaging cannot be ignored in influencing the buying behavior of customers. This
section deals with how much do consumers think that vibrant packaging influences their buying
behavior. The data is presented below.
Figure 1-J: Distribution of Respondents based on Influence of Vibrant Packaging

From the table, we can see that 3% of the respondents are not at all influenced by vibrant
packaging when purchasing packet food items. 24% are not influenced by vibrant packaging.
35% cannot say if they are influenced or not. 28% say that they are influenced by vibrant
packaging. And 10% are strongly influenced by vibrant packaging of the products.
We can say from the analysis that packaging has a huge influence in the buying behavior of the
consumers of packet food as majority of the respondents are influenced by it.
Another section deals with the consumers’ propensity to consume the same food products every
time they shop.

Propensity to Purchase Same Food Each Time When Shopping
This section deals with the consumers’ propensity to purchase the same food product every time
they shop. It measures brand loyalty of the consumers. Consumers who purchase the same food
every time they shop are more brand loyal then consumers who don’t. Following table shows the
distribution of respondents based on their propensity to purchase the same food each time they
shop.
Figure 1-K: Distribution of Respondents Based on Their Propensity to Purchase The Same
Food Each Time When Shopping
From the above table, we can see that 7% of the respondents are not at all brand loyal as they
don’t purchase the same food every time they shop. 26% are not brand loyal. 18% are not sure if
they are brand loyal or not. 37% are somewhat brand loyal. And 12% are extremely brand loyal.
We can say that, from the data, that majority of respondents are brand loyal towards certain
brand of food products.

Cross Tabulations
Age-Group and Frequency of Purchase
The following section will show the relationship between different factors which affects
customer buying behavior. These relationships will give us an even better insight on customer
buying behavior. Let us first look at the relationship between the age-group and the frequency of
purchase of the respondents. Be aware that these variables have already been defined in the
previous section. Therefore, this section will only analyze certain components of the data.
Table 2-A: Cross Tabulation of Age Group and Frequency of Purchase
Twice Thrice
Age Once A A A
Group Week Week Week Everyday Total
16-25 14 9 10 32 65
26-35 4 2 4 4 14
36-45 2 3 0 4 9
45+ 6 3 2 1 12
Total 26 17 16 41 100
Twice Thrice
Age Once A A A
Group Week Week Week Everyday Total
16-25 21.53% 13.84% 15.38% 49.23% 100%
26-35 28.57 14.28 28.57 28.57 100%
36-45 22.22 33.33 0 44.44 100%
45+ 50% 25 16.66 8.33 100%
From the above tables, we can see that respondents with age group between 16-25 years and 36-
45 years have higher propensity to consume packet food on everyday basis. The respondents
with age group of more than 45 years have the lowest propensity to consume packet food as they
purchase them only once a week.
Age Group and Product Attributes Preferred
This section relates age group of the respondents with the product attributes they prefer. Product,
in this study, refers to the inherent quality of packet food products which the consumers prefer.
The following table shows the relationship between age group and product attributes.
Table 2-B: Cross Tabulation of Age Group and Product Attributes Preferred
Age Taste Quantity, Quantity, Price, Taste, Taste, Taste, Taste,

Group Only Price Variety Durability Quantity Price Durability Variety Total
16-25 1 6 0 1 12 28 6 11 65
26-35 0 1 0 1 3 6 1 2 14
36-45 0 0 1 0 1 4 1 2 9
45+ 1 2 0 1 1 3 2 2 12
Total 2 9 1 3 17 41 10 17 100
Age Taste Quantity, Quantity, Price, Taste, Taste, Taste, Taste,

Group Only Price Variety Durability Quantity Price Durability Variety Total
16-25 1.50% 9.24% 0% 1.50% 18.46% 43.07% 9.24% 16.92% 100%
26-35 0 7.1 0 7.1 21.43 42.86 7.1 14.28 100%
36-45 0 0 11.11 0 11.11 44.44 11.11 22.22 100%
45+ 8.3 16.67 0 8.3 8.3 25 16.67 16.67 100%
We can see that Taste and Price of the product is the most preferred product attribute by people
of age group upto 45 years. Above that age, the preference of attributes for packet food products
seems evenly divided among the different attributes. It is therefore important for packet food
products to meet the taste and price standards of the customers.
Age Group and Shop Preferred
This section shows the relationship between age group and their preference of shop to shop on. I
had asked the respondents if they preferred to buy packet foods from ‘Local “Kirana” Dealers’ or
‘Department Stores’. The results linked with the age group of respondents are shown below.
Table 2-C: Cross Tabulation of Age Group and Shop Preferred by Them
Shop Preferred
Local
Kirana Department
Age Group Dealers Stores Total
16-25 19 46 65
26-35 3 11 14
36-45 3 6 9
45+ 2 10 12
Total 27 73 100
Shop Preferred
Local
Kirana Department
Age Group Dealers Stores Total
16-25 29.23% 70.76% 100%
26-35 21.42 78.57 100%
36-45 33.33 66.67 100%
45+ 16.67 83.33 100%
We can see that the majority of any age group prefers visiting department stores to Local
“Kirana” Stores. It means that marketplace infrastructure has huge impact on consumer’s buying
behavior.
Age Group and Convenience of the Product
This section shows the relationship between age group and convenience of the product.
Convenience in this study refers to not having to cook the food before eating. In short, it answers
the question “Do people purchase packet food because they don’t have to waste time on
cooking?”
Table 2-D: Cross Tabulation showing Age Group and Convenience of the Product
Convenience
Age Strongly Strongly
Group Disagree Disagree Neutral Agree Agree Total
16-25 2 5 18 29 11 65
26-35 0 3 4 5 2 14
36-45 0 1 0 7 1 9
45+ 0 3 3 6 0 12
Total 2 12 25 47 14 100
Convenience
16-25 3.07% 7.60% 27.69% 44.61% 16.92% 100%
26-35 0 21.4 28.57 35.71 14.28 100%
36-45 0 11.11 0 77.78 11.11 100%
45+ 0 25 25 50 0 100%
This data shows that the majority of the people agree that they purchase packet food so that they
don’t have to waste time on cooking. The respondents with age group of 36-45 years have the
highest percentage of agreeing that they buy packet food because they don’t have to waste time
on cooking.
Age Group and Vibrant Packaging
This section shows that how does age group relate to the influence of vibrant packaging. It is
known that packaging influences buying behavior of consumers. This data shows that how much
it affects certain age groups.
Table 2-E: Cross Tabulation of Age Group and Influence of Vibrant Packaging in Buying
Behavior
Vibrant Packaging
16-25 3 15 28 13 6 65
26-35 0 6 1 5 2 14
36-45 0 0 3 6 0 9
45+ 0 3 3 4 2 12
Total 3 24 35 28 10 100
Vibrant Packaging
16-25 4.61% 23.07% 43.07% 20% 9.23% 100%
26-35 0 42.85 7.1 35.71 14.28 100%
36-45 0 0 33.33 66.67 0 100%
45+ 0 25 25 33.33 16.67 100%
This data gives mixed results. Respondents with age group between 26-35 years show signs of
not being influenced by vibrant packaging of packet food products. Whereas, most respondents
of age group between 16-25 years do not know if they are influenced by vibrant packaging or
not. Respondents of age group above 36 years again show high signs of being influenced by
vibrant packaging in packet food products.
Age Group and Brand Loyalty
This section deals with the relationship between age group and brand loyalty of customers. It is
measured by linking age with how often a particular age group purchases the same packet food
items. The data is presented below.
Table 2-F: Cross Tabulation between Age Group and Brand Loyalty
Same Food Products

16-25 3 16 16 23 7 65
26-35 2 1 1 6 4 14
36-45 1 4 0 3 1 9
45+ 1 5 1 5 0 12
Total 7 26 18 37 12 100
Same Food Products

16-25 4.60% 24.61% 24.61% 35.38% 10.76% 100%
26-35 17.28 7.14 7.14 42.85 28.57 100%
36-45 11.11 44.44 0 33.33 11.11 100%
45+ 8.33 41.67 8.33 41.67 0 100%
From the data, we can see that respondents with age group between 16-25 years are brand loyal.
Age group between 26-35 years is highly brand loyal. Age group between 36-45 years is not
brand loyal. And age group over 45 years is balanced but slightly inclined towards brand un-
loyalty.
Gender and Frequency of Purchase
This section shows the relationship between gender and frequency of purchase of packet food
products. It is necessary to understand if gender affects the buying behavior of customers. The
following table shows the cross tabulation between gender and frequency of purchase.
Table 3-A: Cross Tabulation Showing Gender and Frequency of Purchase
Thrice
Once A Twice A A
Gender Week Week Week Everyday Total
Female 12 8 7 17 44
Male 14 9 9 24 56
Total 26 17 16 41 100
Twice Thrice
Once A A A
Gender Week Week Week Everyday Total
Female 27.27% 18.18% 15.91% 38.63% 100%
Male 25 16.07 16.07 42.85 100%
From the table above, we can see that higher percentage of male and female alike purchase
packet food in everyday basis. This implies that there is no significant difference in gender and
their purchase habits. It can be seen that high number of respondents purchase packet food on
everyday basis.
Gender and Influence of Sales Promotion
This section deals with the relationship between gender and influence of sales promotion. It
measures how much are males and females affected by sales promotion while buying packet
food items. The results are presented given below.
Table 3-B: Cross Tabulation between Gender and Influence of Sales Promotion
Sales Promotion Influence

Gender No Yes Total
Female 20 24 44
Male 25 31 56
Total 45 55 100
Sales Promotion
Influence
Gender No Yes Total
Female 45.45% 54.54% 100%
Male 44.64 55.35 100%

We can see from the above table that there is not much difference in males and females being
influenced by sales promotion. So, it can be concluded that sales promotion affect both males
and females equally.
Gender and Convenience of Products
We had discussed in the previous section that convenience, in this study, measures if consumers
buy packet food because they don’t have to waste time on cooking. Comparing this with the
gender of people, we can come to an interesting finding about males and females’ preference to
cook food. The data which relates gender with convenience of products are presented below.
Table 3-C: Cross Tabulation between Gender and Convenience of Products
Convenience
Strongly Strongly
Gender Disagree Disagree Neutral Agree Agree Total
Female 1 5 9 23 6 44
Male 1 7 16 24 8 56
Total 2 12 25 47 14 100
Convenience
Strongly Strongly
Female 2.27% 11.36% 20.45% 52.27% 13.63% 100%
Male 1.78 12.5 28.57 42.85 14.28 100%
From the above table, we can see that both male and female are almost equally uninterested in
cooking food. And it is also the reason they buy packet foods. The data also shows that females
are even more uninterested in cooking food than males.

The next section deals with the relationship between gender and choices of same food. The
choices of same food tell how much variety seeking are the respondents. The data is
Gender and Choices of Same Food
This analysis is based on likert scale of the choices of same food and the gender of the
respondents. It shows the relationship in both frequency and percentage form to understand the
brand loyalty of the consumers based on their gender. The data is presented in the following
page.
Table 3-D: Cross Tabulation Showing the Relationship between Gender and Variety
Seeking Nature of Respondents
Same Food Products

Strongly Strongly
Female 2 11 6 19 6 44
Male 5 15 12 18 6 56
Total 7 26 18 37 12 100
Same Food Products

Strongly Strongly
Female 4.54% 25% 13.63% 43.18% 13.64% 100%
Male 8.92 26.79 21.43 32.14 10.71 100%
From the above table, it can be seen that females tend to be more brand loyal than males based
on the percentage of agreeing to buy the same food products. As the data shows, the percentage
of females who agree to brand loyalty on packet food products is more than 10% than males who
agree to brand loyalty on packet food products. From this data, it can be concluded that females
tend to be more brand loyal than males when it comes to packet food items.
Family Income Levels and Frequency of Purchase
This section shows the relationship between income levels of the respondents and how often do
they buy packet food items. The data is summarized in the table on next page.
Table 4-A: Cross Tabulation Showing Income Levels and Frequency of Purchase
Family Income Once A Twice A Thrice A
Levels Week Week Week Everyday Total
Unspecified 1 1 0 2 4
Below Rs
10,000 0 0 0 1 1
Rs 10,000 to
20,000 1 0 0 0 1
Rs 20,000 to
30,000 1 2 0 4 7
Rs 30,000 to
40,000 1 1 3 5 10
Rs 40,000+ 22 13 13 29 77
Total 26 17 16 41 100
Family Income Once A Twice A Thrice A
Levels Week Week Week Everyday Total
Unspecified 25% 25% 0% 50% 100%
Below Rs 10,000 0 0 0 100% 100%
Rs 10,000 to
20,000 100% 0 0 0 100%
Rs 20,000 to
30,000 14.28% 28.57% 0% 57.14% 100%
Rs 30,000 to
40,000 10% 10% 30% 50% 100%
Rs 40,000+ 28.57% 16.88% 16.88% 37.66% 100%
The above table shows that the respondents having income level less than Rs 10,000 monthly
show the highest tendency to purchase packet food items on everyday basis. But it cannot be
concluded that all the consumers who have income level less than Rs 10,000 will buy packet
foods on everyday basis because the number of respondent is only 1. It is the same for
respondent with income level between Rs 10,000 and Rs 20,000. The interesting finding here is
the respondents with family income level more than Rs 40,000. 37.66% of this group of
customers purchase packet food on everyday basis.

Family Income and Product Attributes Preferred
Table 4-B: Cross Tabulation Showing Family Income and Product Attributes Preferred

Family
Income Taste Quantity, Quantity, Price, Taste, Taste, Taste, Taste,
(Monthly) Only Price Variety Durability Quantity Price Durability Variety Total
Unspecified 0 0 0 0 1 1 1 1 4
Below Rs
10,000 0 0 0 0 0 0 0 1 1
Rs 10,000
to 20,000 0 0 0 0 0 0 0 1 1
Rs 20,000
to 30,000 0 2 0 0 0 3 1 1 7
Rs 30,000
to 40,000 0 1 0 0 2 5 1 1 10
Rs 40,000+ 2 6 1 3 14 32 7 12 77
Total 2 9 1 3 17 41 10 17 100

Family
Income Taste Quantity, Quantity, Price, Taste, Taste, Taste, Taste,
(Monthly) Only Price Variety Durability Quantity Price Durability Variety Total
Unspecified 0 0 0 0 25% 25% 25% 25% 100%
Below Rs
10,000 0 0 0 0 0 0 0 100% 100%
Rs 10,000
to 20,000 0 0 0 0 0 0 0 100% 100%
Rs 20,000
to 30,000 0 28.57% 0 0 0 42.85% 14.28% 14.28% 100%
Rs 30,000
to 40,000 0 10% 0 0 20% 50% 10% 10% 100%
Rs 40,000+ 2.60% 7.79% 1.30% 3.89% 18.18% 41.56% 9.09% 15.58% 100%
From the above table, we can see that most of the respondents, no matter the age group prefer
taste and price attributes in their product. This means that no matter who the targeted customers
are based on their income, companies must focus on improving taste and price of their packet
food products.
Income Level and Influence of Sales Promotion
This section shows the relationship between income level and the shop preferred by the
consumers.
Table 4-C: Cross tabulation showing Income Level and Influence of Sales Promotion
Sales Promotion
Family Income No Yes Total
Unspecified 1 3 4
Below Rs 10,000 1 0 1
Rs 10,000 to 20,000 1 0 1
Rs 20,000 to 30,000 2 5 7
Rs 30,000 to 40,000 4 6 10
Rs 40,000+ 36 41 77
Total 45 55 100
Family Income Sales Promotion Total

No Yes
Unspecified 25% 75% 100%
Below Rs 10,000 100% 0 100%
Rs 10,000 to
20,000 100% 0 100%
Rs 20,000 to
30,000 28.57% 71.42% 100%
Rs 30,000 to
40,000 40% 60% 100%
Rs 40,000+ 46.75% 53.24% 100%
From the above data, we can see that 71.42% of respondents with income level 20000-30000 are
influenced by sales promotion. 60% of respondents with income level 30000-40000 are also
influenced by sales promotion. And 53.24% of respondents with income level 40000+ are
influenced by sales promotion. Therefore, majority of consumers from all income level are
influenced by sales promotion tools.
The following section will find out the relationship between the final demographic factor and
other relevant factors. We will begin with analyzing the relationship between education level and
shop preferred.
Education Level and Shop Preferred
This section will show the relationship between education level of the respondents and shop
preferred by them. The following table summarizes the data.
Table 5-A: Cross Tabulation Showing Education Level and Shop Preferred
Shop Preferred
Local
Kirana Department
Education Dealers Stores Total
Below +2 2 1 3
Intermediary 7 3 10
Bachelors 15 47 62
Bachelors+ 3 22 25
Total 27 73 100
Shop Preferred
Local
Kirana Department
Education Dealers Stores Total
Below +2 66.67% 33.33% 100%
Intermediary 70% 30% 100%
Bachelors 24.19% 75.80% 100%
Bachelors+ 12% 88% 100%
From the above table, we can see that consumers with education level equivalent to intermediary
level and below that tend to prefer local “kirana” dealers rather than department stores. On
contrary, consumers who have education level equivalent to bachelors or more tend to prefer
department stores while purchasing packet food items.

Education and Convenience
This section finds the relationship between education level of the respondents and convenience
they seek from the packet food products. The data is presented in the following table.
Table 5-B: Cross Tabulation Showing Education Level and Convenience
Convenience
Strongly Strongly
Education Disagree Disagree Neutral Agree Agree Total
Below +2 0 0 1 1 1 3
Intermediary 0 1 2 5 2 10
Bachelors 1 8 18 28 7 62
Bachelors+ 1 3 4 13 4 25
Total 2 12 25 47 14 100
Convenience
Strongly Strongly
Below +2 0 0 33.33% 33.33% 33.33% 100%
Intermediary 0 10% 20% 50% 20% 100%
Bachelors 1.61% 12.90% 29.03% 45.16% 11.29% 100%
Bachelors+ 4% 12% 16% 52% 16% 100%
The above table shows that no matter the income level, consumers tend to purchase packet food
products because they don’t have to waste time on cooking.
The next section will show the relationship between education level and degree of influence of
sales promotion.
Education Level and Degree of Influence of Sales Promotion
This section shows the relationship between education level and degree of influence of sales
promotion. Education level determines how much a customer is aware about why companies use
sales promotion tools and degree of influence determines how much those consumers are still
affected by the sales promotion tools. The data is summarized in the following table.
Table 5-C: Cross Tabulation Showing Relationship between Education Level and Degree of
Influence of Sales Promotion
Degree of Influence by Sales Promotion

Strongly Strongly
Below +2 0 1 1 1 0 3
Intermediary 1 2 3 3 1 10
Bachelors 3 11 23 23 2 62
Bachelors+ 0 4 6 13 2 25
Total 4 18 33 40 5 100
Degree of Influence by Sales Promotion

Strongly Strongly
Below +2 0% 33.33% 33.33% 33.33% 0% 100%
Intermediary 10% 20% 30% 30% 10% 100%
Bachelors 4.83% 17.74% 37.09% 37.09% 3.22% 100%
Bachelors+ 0% 16% 24% 52% 8% 100%
From the above table, we can see that high education level has resulted in high degree of
influence by sales promotion tools. So, higher education level leads to higher degree of influence
by sales promotion tools.

Chapter 5
Findings
Research Question 1: How do demographic factors affect the buying behavior of the
consumers?
This section answers the first research question “how do demographic variables affect the buying
behavior of the consumers?”. The demographic variables alone cannot describe the buying
behavior of the consumers, so these variables must be linked with other variables. The cross
tabulation section exists to show these relationships.
Age and Consumer Buying Behavior
The cross tabulated tables 2-A, 2-B, 2-C, 2-D, 2-E, and 2-F gives us insights on how age group
affects customer buying behavior. Let’s look at the first relationship – Age group and Frequency
of purchase. This relationship shows the pattern of consumption of different age groups. The
finding is that age groups 16-25 years and 36-45 years mostly purchase packet food products on
everyday basis. This means that most people of these groups are consuming packet food on
everyday basis. Most people age group of above 45 years purchase packet food only once a
week. This means that this group of people either purchase packet food in bulk or they have a
very low consumption rate or both.
Age and Product Attributes Preferred
Cross tabulation 2-B shows another insight on how age group affects buying behavior of
consumers based on product attributes preferred. The respondents were asked to tick maximum
of two choices of product attributes from 5 different options. The result was that most
respondents preferred taste and price attributes. This means that all age groups of people first and
foremost choose the taste and price of packet food products.
Age and Shop Preferred
Cross tabulation 2-C shows how age group affects the preference of shops on which consumers
shop. The shops were divided into local “kirana” dealers and department stores. The data showed
that majority of all age groups preferred going to department stores to shop for packet food
items. So the age group does not affect the shop preference of the consumers.
Age Group and Convenience of the Product
Cross tabulation 2-D shows how age group affects the buying behavior so that they don’t have to
waste time in cooking. The majority of respondents from all age groups agreed to buying packet
food products because they didn’t have to waste time on cooking. This means that all age group
of people buy packet food also because they don’t have to waste time on cooking.
Age Group and Influence of Vibrant Packaging
Cross tabulation 2-E shows how different age groups are influenced in buying packet foods
because of the vibrant packaging of the product. The table shows that age groups 16-25 years
and 26-35 years are not so much affected by vibrant packaging of the product whereas age group
above 35 years are affected by vibrant packaging in the product. This means that as age
increases, consumers are more likely to get influenced by vibrant packaging in the product.
Age group and Brand Loyalty
Cross tabulation 2-F shows the how brand loyal are the consumers from different age groups.
The data shows mixed results. The consumers from same age groups are equally brand loyal and
un-loyal to packet food products. Some people like variety in the packet foods they consume and
some people like the same food items.
The following section will disseminate the information regarding how gender affects the buying
behavior of the consumers. The data related to this can be found in tables 3-A, 3-B, 3-C, and 3-D
in the previous chapter.
Gender and Frequency of Purchase
Cross tabulation 3-A shows how many times a week do consumers of different gender purchase
packet food items. The data shows that majority of males and females purchase packet food
items on everyday basis. This means that no matter the gender, most packet food items are
purchased on everyday basis.
Gender and Influence of Sales Promotion
Cross tabulation 3-B shows whether consumers of different age groups are influenced by
different sales promotion tools. The data shows that number of both males and females who are
influenced by sales promotion tools is almost equally high than not being influenced by sales
promotion tools. This means that males and females are equally influenced by sales promotion
tools while purchasing packet food items.
Gender and Influence of Convenience
Cross tabulation 3-C shows whether males and females buy packet food because they don’t have
to waste time on cooking. The result shows that majority of both males and females agree to
buying packet food items because they don’t have to waste time on cooking. This means that
both males and females are almost equally inclines to purchase packet food because of its
convenience.
Next section will deal with final of the demographic factor and its affect on consumer buying
behavior. This factor is the education level of the respondents and the section shows the effect of
education in buying behavior of consumers. The tables showing the data is on table 5-A, 5-B,
and 5-C in the previous chapter.
Education Level and Shop Preferred
Cross tabulation shown in table 5-A shows how education level affects the shop preferred by the
customers. The shops are categorized into local “kirana” dealers and department stores. The data
shows that consumers with education level below bachelors level prefer local “kirana” dealers
whereas the consumers with education above intermediary level prefer department stores. This
means that as education level increases, the shop preference of consumers also changes.
Education Level and Convenience
Cross tabulation shown in table 5-B shows how education level affects the buying behavior
based on convenience of the products. The data shows that majority of respondents agree to
buying packet food items because of the convenience of packet food items i.e. because they
don’t have to waste time on cooking. This means that consumers of all education level prefer
buying packet foods because of its convenience.
Education Level and Degree of Influence of Sales Promotion Tools
Cross tabulation shown in table 5-C show how consumers of different education level are
affected by sales promotion tools while purchasing packet food items. The results show that as
the degree of influence of sales promotion tools is increasing in percentage as the education level
is increasing. This means that as the education level increases, the buying behavior of consumers
because of influence of sales promotion tools also increases.
Research Question No. 2: How do socio-economic factors influence the buying behavior of
consumers?
This section deals with the socio-economic factors which affect consumer buying behavior. In
this study, income level is the main socio economic factor. But this factor alone does not say
anything about consumer buying behavior. So, income level must be analyzed with other
variables to gain insights on consumer buying behavior based on socio-economic factor. Table
4-A, 4-B and 4-C of the previous chapter explains the relationship between income level and
other factors.
Income Level and Frequency of Purchase
The table 4-A shows how much income level influences the buying behavior based on frequency
of purchase of packet food items. The result says that most of the people, no matter the income
level tend to purchase packet food items on everyday basis. This means that income level does
not affect the frequency of purchase of packet food items.
Income Level and Product Attributes Preferred
Cross tabulation 4-B shows how income level determines the product attribute the consumers
prefer while buying packet food items. The data shows that majority of respondents prefer taste
and price product attributes no matter the income level. This means that no matter the income
level, the main factor influencing consumer buying behavior based on product attributes is the
taste and price of the product.

Income Level and Influence of Sales Promotion
Cross tabulation 4-C shows how income level affect consumers’ preference of sales promotion
tools used by the marketplace. The data shows that majority of respondents prefer packet food
products that has sales promotion tools. This means that majority of respondents with any
income level are influenced by sales promotion tools.
Research Question No. 3: How do the product factors affect buying behavior of the
consumers?
The product factors in this research refers to price, quality, taste, variety, durability, convenience,
and quantity. Taste, Quantity, Price, Durability, and Variety factors were measured in a single
question where respondents ticked multiple choices of product attributes they preferred.
Convenience, quality, and packaging were measured in two different likert scales where
respondents chose the degree to which they preferred these attributes. Since product attribute is a
factor which can be analyzed independently to understand buying behavior of consumers, it has
been analyzed independently. Figures 1-D, 1-E, 1-F, 1-G, and 1-J in the previous chapter
measures the consumer buying behavior based on product factors.
Taste, Quantity, Price, Durability, and Variety Factors
Table 1-D in the previous chapter shows the relation between consumers and their preference of
these five product attributes. Respondents have chosen either one or two of the most preferred
product attributes from the questionnaire. From the figure, we can see that majority of consumers
prefer to have a mixture of taste and price attributes in packet food products.
Price Reasonability
Figure 1-E in the previous chapter shows the perceived reasonability of price of the consumers
while buying packet food items. The figure shows that majority of the consumers feel that the
price of packet food products is reasonable. This means that most of the people buy packet food
because the price of the packet food is reasonable.
Convenience
Figure 1-F in the previous chapter shows the preference of packet food because of its
convenience. It seeks to answer whether consumers buy packet food because they don’t need to
waste time on cooking. The figure shows that majority of consumers agree to buying packet food
items because they don’t have to waste time on cooking. This means that convenience also has
high influence on buying behavior of consumers.
Perceived Quality
Figure 1-G in the previous chapter shows the perceived quality of packet food items of the
consumers. The figure shows that majority of consumers are neutral towards the quality of the
products. This means that the consumers feel the packet food they consume neither are of good
quality nor of bad quality.
Vibrant Packaging
Figure 1-J in the previous chapter shows whether consumers are influenced by vibrant packaging
in packet food products. The figure shows that most of the consumers are neutral to being
influenced by vibrant packaging. And almost equal numbers of respondents agree to being
influenced and not influenced by vibrant packaging. This means that packaging of products
influences some consumers and does not influence other consumers equally.
Research Question No. 4: How do marketplace factors affect buying behavior of
consumers?
This section deals with the marketplace factors such as department stores or local stores and
sales promotion tools in influencing the buying behavior of consumers. Table 1-C and 1-D show
marketplace factors influencing consumer buying behavior.
Influence of Sales Promotion Tools
Table 1-C in the previous chapter shows the influence of sales promotion tools in buying
behavior of consumers. According to the table, we can see that majority of the respondents are
influenced by sales promotion tools while purchasing packet food items. This means that sales
promotion tools influence consumer buying behavior.
Influence of Department Stores
Table 1-D shows in the previous chapter shows the influence of department stores in buying
behavior of consumers. The data shows that huge majority of consumers are inclined to visit
department stores to buy packet food products. This means that department stores have high
influence on the buying behavior of consumers.

Chapter 6
Conclusion
From this study we can see that the demographic variables of the consumers (age, gender,
education) has different impact on frequency of purchase, packaging, convenience, shop
preferred and other variables. The data and findings give us clear insights on how demographic
factors influence the buying behavior of consumers.
The socio-economic factor also gives us insight on buying behavior of consumers. Socio-
economic factors so have adverse effect on consumer buying behavior. No matter the income,
majority of consumers tend to purchase packet foods on everyday basis. And no matter the
income, majority of consumers prefer the similar product attributes.
The product factors also show its influence on consumer buying behavior. The findings have
shown how taste, quantity, price, quality, convenience, variety and other product factors
influence buying behavior of consumers.
Lastly, marketplace factors such as department stores and sales promotion tools also have huge
impact on buying behavior of consumers. Most consumers prefer to visit department stores to
purchase packet food and are influenced by sales promotion tools in packet food products.
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Running Head: Consumer Buying Behavior 1

A Study of Consumer Buying Behavior of Packet Food Products in Lalitpur

Roll No: 14030197

P.U Registration No: 2013-2-03-0205

Mr. Amit Koirala

In partial fulfillment for the course of Project Work

Ace Institute of Management

All the information stated in this report is true.

resources which helped me complete this project.

it would have been without it.

consumer buying behavior in terms of consumers’ demographic factors, socio-economic factors,

also influence consumer buying behavior.

Purpose of the Study ................................................................................................................. 11

Statement of the Problem .......................................................................................................... 11

Research Questions ................................................................................................................... 12

Significance of the Study .......................................................................................................... 12

Delimitations of the Study ........................................................................................................ 12

International Researches on Consumer Buying Behavior ........................................................ 14

National Researches on Consumer Buying Behavior ............................................................... 15

Theoretical Perspective ............................................................................................................. 16

Conceptual Framework ................................................................................................................. 20

Data Collection ......................................................................................................................... 21

Ethical Consideration ................................................................................................................ 22

Rappot Building ........................................................................................................................ 22

Questionnaire Design ................................................................................................................ 23

Sampling Design ....................................................................................................................... 24

Data Analysis ............................................................................................................................ 24

Results and Discussions ................................................................................................................ 25

Frequency of Purchase .............................................................................................................. 29

Product Attributes Preferred ..................................................................................................... 31

Sales Promotion Influence ........................................................................................................ 32

Shop Preferred .......................................................................................................................... 33

Reasonable Price ....................................................................................................................... 34

Department Stores ..................................................................................................................... 39

Degree of Influence of Sales Promotion ................................................................................... 42

Degree of Influence of Vibrant Packaging ............................................................................... 43

Propensity to Purchase Same Food Each Time When Shopping ............................................. 45

Age-Group and Frequency of Purchase .................................................................................... 47

Age Group and Product Attributes Preferred............................................................................ 48

Age Group and Shop Preferred ................................................................................................. 49

Age Group and Convenience of the Product ............................................................................ 50

Age Group and Vibrant Packaging ........................................................................................... 51

Age Group and Brand Loyalty.................................................................................................. 52

Gender and Frequency of Purchase .......................................................................................... 53

Gender and Influence of Sales Promotion ................................................................................ 54

Gender and Convenience of Products ....................................................................................... 55

Family Income Levels and Frequency of Purchase .................................................................. 57

Family Income and Product Attributes Preferred ..................................................................... 59

Income Level and Influence of Sales Promotion ...................................................................... 60

Education Level and Shop Preferred ........................................................................................ 61

Education and Convenience ...................................................................................................... 63

Education Level and Degree of Influence of Sales Promotion ................................................. 63

Age and Consumer Buying Behavior ....................................................................................... 65

Age and Product Attributes Preferred ....................................................................................... 65

Age and Shop Preferred ............................................................................................................ 66

Age Group and Convenience of the Product ............................................................................ 66

Age Group and Influence of Vibrant Packaging....................................................................... 66

Age group and Brand Loyalty................................................................................................... 66

Gender and Frequency of Purchase .......................................................................................... 67

Gender and Influence of Sales Promotion ................................................................................ 67

Gender and Influence of Convenience ...................................................................................... 67

Education Level and Shop Preferred ........................................................................................ 68

Education Level and Convenience............................................................................................ 68