A

PROJECT REPORT ON

“Customer Buying Behaviour

Ayurvedic Product.”

In Partial Fulfillment for the award of

BACHELOR DEGREE IN COMMERCE

Submitted by:

Udit Narayan Koushalya

Exam Roll No.011703CM406
Class Roll No. : BC17-301
Under The Guidance Of

Dr. Yajnya Dutta Nayak

Lect. in Com. , Khallikote Auto. College

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Dr. Yajnya Dutta Nayak P.G. Dept. of Commerce
(M.Com, M.Phil. PGDMM & Ph.D) Khallikote Auto. College
Berhampur -1
Email: yajnya.dutta@gmail.com

P.G. DEPARTMENT OF COMMERCE KHALLIKOTE

AUTONOMOUS COLLEGE BERHAMPUR, GANJAM,
SESSION : 2019-20

CERTIFICATE
This is to certify that the project work titled “CUSTOMER
BUYING BEHAVIOUR AYURVEDIC PRODUCT” is an original work of
UDIT NARAYAN KOUSHALYA bearing Exam Roll No: 011703CM406 and
is being submitted to Khallikote (Auto) College, Berhampur in partial fulfillment
for the award of Degree in Bachelor of Commerce. The matter embodied in this
project report is original and has not been submitted for the award of any other
degree.

Place:-

Date:- Signature of guide

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 DECLARATION

I, UDIT NARAYAN KOUSHALYA, bearing Exam Roll No.

011703CM406, a student of Khallikote Autonomous College,
Berhampur hereby declare that the project work on “CUSTOMER
BUYING BEHAVIOUR AYURVEDIC PRODUCT” prepared by me is an
authentic work carried out for the partial fulfillment of the
requirement for the award of the degree of bachelor of commerce
under the guidance of Dr. Yajnya Dutta Nayak, Lecturer in
Commerce, Khallikote Autonomous College, Berhampur.

The matter embodied in the project work has not been submitted for the
award of any other degree, diploma or any other similar title or prizes
to the best of my knowledge and belief.

Udit Narayan Koushalya

Roll No. 011703CM406
B.Com Final Year

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 ACKNOWLEDGEMENT

To make any project report, essential requirement is able guidance

and references without which project is incomplete. First and
foremost, I would like to thank my respectable and learned guide, Dr
Yajnya Dutta Nayak, Lecturer in commerce who has provided such
an opportunity and motivation to gain knowledge through this type of
project. This will help me a lot in my career.
Secondly, I would like to bestow my gratitude to the Khallikote
Autonomous College, which provides me such opportunity to
undertake the project report on Organizational and Effectiveness of a
HR, for providing valuable input resources for preparing project like
library.
Last but not the least, I am also thankful to my friends specially Udit
Narayan Koushalya , Tejaswini Pattnaik and ,Tushar Dash
colleagues, parents and all faculty member of commerce department
whose co- operation and moral support has contributed major part in
preparation of my project.

Udit Narayan Koushalya

Roll No. 011703CM406
B.Com Final Year

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 CONTENTS

CHAPTER NO. TITTLE PAGE NO

1 Introduction 7
2 Statement of the Problem 9
3 Review of Literature 10
4 Product Information 18
5 Finding out the Ultimate Research Vacuum 19
6 Objectives of the Present Study 20
7 Research Methodology 22
8 Research Design 22
9 Population And Sample 23
10 limitations 24
11 Results And Discussion 41
12 Suggestions 50
13 Conclusion 51
14 References 52

LIST OF TABLES AND FIGURE

SN. NO. TITTLE PAGE NO.

Table No – 1 Respondent Profile 24

Table No – 8.1 Demographic factors of the Respondents 26

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Abstract

Ayurveda is a medical system that deals not only with body but with the

mind and spirit as well. According to ayurveda, most diseases connected with the

psychophysiologic and pathologic changes in the body are caused by imbalance in

three different dosha (ie, vata, pitta, and kapha; the fundamental aim of ayurvedic

therapy is to restore the balance between these three major body systems. Any

imbalance can lead to inflammation (also called sopha). Almost seven different

types of inflammation have been described in ayurveda. The ayurvedic definition

of pittaja sopha (inflammation) encompasses the modern concept of inflammation,

which is defined as redness, pain, heat, loss of function, and swelling. The

balanced coordination of body, mind, and consciousness is the ayurvedic definition

of health. From this point of view the research paper analysis selected ayurvedic

healthcare products. The objective of the research work is to study about the

customers buying behavior and their level of satisfaction towards selected

Ayurvedic healthcare products. Tools used for the analysis are Garrett’s Ranking

Technique, average ranking analysis and chi-square test it is concluded that all the

customers are giving first rank for no chemical product and quality of the product,

and most of the customers are satisfied of the ayurvedic healthcare product.

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INTRODUCTION

Ayurveda is the traditional, ancient Indian system of health science. Its name

literally means, "Life knowledge." The Ayurvedic method of holistic healthcare

emphasizes balancing the body, mind, and spirit to treat and prevent disease. This

5,000-year-old practice focuses on harmonizing the body with nature through diet,

herbal remedies, yoga and meditation, exercise,

lifestyle, and body cleansing. It is considered the

sister science of yoga.

Understood to be the oldest and most holistic

medical system in the world, Ayurveda was

developed around 3,000 BCE. The wisdom of this

healing method was passed down through ancient Indian spiritual texts, called the

"Vedas." There are four major Vedas, each of which describes, in some parts, the

principles of health, disease, and treatment. One of these texts, the "Rig Veda"

(also known as "Rik Veda" or "Rigveda"), is one of the oldest known books of any

Indo-European language.

Chopra (2018) defined that the term Ayurveda combines the Sanskrit words Ayur

(life) and Veda (science or knowledge). Ayurvedic medicine is one of the oldest

systems of medicine in the world. IP (2016) defined that Ayurveda means ‘’

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knowledge of life ‘’ and is about 5000 year’s old traditional system of medicine.

Ayurveda is a system, which avail the essential fundamentals of nature, to maintain

health in a person by preserving their mind, body and spirit in adept equanimity

with nature. Natural remedies have

immense applications globally.

Ayurveda sees health and disease in

holistic terms. It links the microcosm

of individuals with the cosmos. It

takes into account the relationship between energy and matter. This system of

healing believes in treatment of not just a part affected by disease but the

individual as a whole. Today Ayurveda is gaining a popular opportunity. The

World Health Organization recognizes an Ayurvedic as an alternative system of

medicines as a safest system of medicines. NCCIH (2016) reveals that Ayurvedic

medicine uses a variety of products and practices. Ayurvedic products are made

either of herbs only or a combination of herbs, metals, minerals, or other materials

in an Ayurvedic practice called rasa Shastra. The primary goal of Ayurvedic

medicine is to help people live long, healthy and balanced lives without the need

prescription drugs, complicated surgeries or suffering through painful conditions.

The Rig Veda contains philosophical verses on the nature of existence, as well as

information on the three basic human constitutions (see "The Doshas" below). It

discusses the use of herbs to heal the mind and body, and to keep oneself young.

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Another Veda, the "Atharva Veda," contains information on everything from

internal medicine and surgery, to infertility and psychiatry. The "physicians" at the

time of the Vedas were "rishis" —

sages or seers, holy people — who

viewed health as an overall integration

between mind, body, and spirit.

Knowledge of Ayurveda spread from

India, influencing other ancient

systems, including Chinese medicine

and the ancient Greek medicine practiced by Hippocrates. Because of its influence,

Ayurveda is known as the "Mother of all healing." In the 1970s, Ayurvedic

teachers from India began traveling to the United States and Europe, sharing their

teachings of holistic health. Today, there are Ayurvedic colleges all over the world.

Statement of the Problem

Customer preference of any product a rises only when there are a number of brands

available in the market and also depends upon the customer satisfaction of the

particular brand selected. The customer satisfaction for a commodity depends upon

a number of aspects like price and quality are of the prime importance. From the

customer point of view the product with the lowest price and comparatively high

quality is usually preferred. This study aims to find the customer preference and

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level of satisfaction on ayurvedic healthcare products and to identify the factors

influencing their preference.

Review of Literature

Gaur and Waheed (2002), in their study “A Study of buying behaviour for branded

fine rice” conducted a study on buying behaviour for branded fine rice in Chennai

and Coimbatore city. The study indicated that retailers were ranked as the prime

source of information and the family members as the next important source of

information about the branded fine rice. Rice mandy formed the major source of

purchase for Chennai (73.00%) and Coimbatore (70.00%) households. Quality and

image of the brand were ranked as first and second factors influencing brand

preference in both Chennai and Coimbatore cities.

Dr. K. Ramasamy, et al., (2005), in their article entitled “Consumer behaviour

towards instant food products”, highlighted that preparing food with instant mixes

has become a way of life and no doubt they are going to be an integral part of food

habit in future. Consumers expect the cognitive dissonance used by certain

deficiency of products and irritants are bound to be removed with emerging new

food processing techniques. V. N. Indumathi, et al., (2007), in their article entitled

“Consumer buying behaviour spice products” elaborated that, certain factors which

would influence the purchasing pattern of spice products viz,. (i) Occupational

status of the women in household, (ii) Income of the households and (iii) Time

saving while cooking. About one third of the consumers were skeptical that

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continuous consumption on processed spices which have preservatives may cause

harmful effects in long run.

G. Vani, M. Ganesh Babu and N. Panchanatham (2010), in their article

“Toothpaste Brands –A Study of Consumer Behavior in Bangalore City” focused

that the external factors like

demographic, social, cultural, price,

quality, product attributes etc. for

buying toothpaste. The market share of

any product is highly determined by the

purchasing behavior of the consumers.

Following study is conducted by the researcher to find out the behavior of the

consumers, to analyze the preference of consumers, and consumer awareness.

Descriptive research design was adopted and the data is collected through primary

and secondary sources. The method adopted for conducting survey is

questionnaire; Simple random sampling technique was adopted for selecting the

consumers. Susana (2010), in his study “Consumer Buying Behaviour in Fashion

Retailing: Empirical Evidences” stated that the consumer behaviour research is the

scientific study of the processes consumers use to select, secure, use and dispose of

products and services that satisfy their needs. Firms can satisfy those needs only to

the extent that they understand their customers. The main objective of this paper is

to study the gender differences in consumer buying behaviour of the Portuguese

population when they go shopping to buy attire products. To attain this objective a

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survey was developed and administered across Portugal. The findings confirm the

differences between women and men especially in terms of What, Where, When,

and How they buy.

Anupriya (2017) indicated that consumers are the masters of their money and they

have an enormous influence on the economic market change because they possess

the ability to implement and coordinate their choice of spending or saving in the

purchase decision. Arya, Thakur, Kumar, & Kumar (2012) stated that numerous

studies have been regulated on consumer behavior in the use of ayurvedic

medicine/products or herbal drugs in several areas. Liang (2012) explored that

from a marketing angle, products are goods or services that most closely meet the

requirements of a particular market and yield enough profit to justify their

continued existence that the higher the consumer's product knowledge, the higher

the impulse buying behavior. Goncalves (2008) identified that when consumers

choose among competing products, they face quality and product performance

uncertainty so they are likely to rely on heuristics to judge quality across

competitive products since consumers have finite time horizons and no incentive to

perform thorough comparative studies prior to purchase Goncalves (2008) also

found that product appearance can influence consumers in many different ways.

Insights into the different ways in which appearance characteristics, such as form

and color, may influence consumer choice, and by differentiating the roles played

by product appearance managers can make a better use of packaging and labels as

marketing tools. Anupriya (2017) analyzed the determinants of consumer’s

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perception and buying behavior towards ayurvedic product among 100

respondents. The outcome showed that that most of the customers are aware of the

product through advertisement, customers are satisfied with the quality & price of

the product and all the selected respondents selected the product due to the

customers are satisfied with the quality and price of the ayurvedic products Price is

the value that is put to a product or service and is the result of a complex set of

calculations, research and understanding and risk taking ability. Huck & Wallace

(2015) investigated that the literature on price framing and its impact on consumer

behavior is surprisingly patchy. Even within the marketing literature the effects of

different price frames have not been systematically explored and many studies

focus on hypothetical choice or simply rely on perception or recall data. Licata,

Biswas, & Wilson (1993) found that how lower price recalled the consumers for

the good and increases demand. Oosthuizen, Spowart, & Heydenrych (2015)

indicated that overall perceived price had a significant positive relationship on

overall purchase intentions. According to Phillip Kotler: “Promotion includes all

the activities of the company undertake to communicate and promote its products

to the target market. Clow & Baack (2007) explored that mainly sales promotion

has a temporary effect on consumer buying behavior, it does not have a long term

effect on consumer buying behavior and also it reduces the revenue, as in coupon,

refunds and rebates and also these tools are increasing costs. Neelkanth, Sachan, &

Gupta ( 2015) found that promotional tools are more frequently influencing the

people to purchase herbal products, though people have lots of self-interest too.

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Kotler, Wong, Saunder, & Armstrong (2005) defined that promotion tools can be

classified in four ways: Advertising, personal selling, sales promotion and public

relation. Shrivastava & Bisen (2014) exposed that advertisement attracts towards

the preference and choices to influence the consumer buying behavior. Sharma &

Nikki (2014) determined that ayurvedic achieved higher market value by

advertisements but without soul of ayurvedic concept. Sahoo & Manchikanti

(2013) explored that advertisement is the major factor that influence the market for

OTC herbal products. Neelkanth, Sachan, & Gupta (2015) found that there is a

positive impact of place for availability on consumers’ mind for purchasing

ayurvedic product.

Literatures so far read by the researcher reveal the awareness, knowledge of

common man regarding different systems of medicine. It is estimated that world

market for medicines

derived from plant and herbs may account for about Rs 2,00,000 crores and

presently Indian contribution is less than Rs 2000 crores. Indian export of raw

drugs has steadily grown at 26% to Rs 165 crores in 1994-95 from Rs 130 crores in

1991-92. The annual production of medicinal and aromatic plant’s raw material is

worth about Rs 200 crores. (Narogi et al., 2011).

The general opinion of the public is tilting towards the use of herbal drugs. The

gradual rise in trade of herbal drugs all over the world stands testimony towards

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the shift of customers from allopathic drugs to Ayurvedic drugs due to suffering

from side effects and high cost involvement (Jalwa et al., 2009).

The use of traditional medicine is increasing; safety and efficacy is time tested.

This can be used to improve the nation’s health if demand and supply is ensured.

The demand for Ayurvedic formulations is increasing both in the domestic and

international market. According to some estimates, the domestic sales are growing

at an annual rate of 20 percent while the international market for medicinal plant-

based products is estimated to be growing at 7 percent per annum (Sawant et

al., 2013).

In India, the reliance on Ayurvedic medicines is heavy only in certain states like

Kerala, Gujarat, Rajasthan, UP etc. Many Ayurvedic companies are not only

manufacturing pharmaceutical products but are also in manufacturing of

nutriceuticals products and FMCG like soaps, shampoos, toothpaste, toothpowder

using traditional herbal ingredients in the composition of these products

(Vaijayanthi, Roy & Roy, 2012).

Mushrooming of the Ayurvedic pharmaceutical companies are developing

thousands of new products daily. Advertisement and other communication have

become quite popular for promoting Ayurvedic products. Thus, the communication

programs help the people and makes them aware about alternative medicine. OTC

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increased market value of Ayurvedic products (Sharma, Chaudhary &

Lamba, 2014).

Consumers should check the authenticity of the claim of the product before using it

and should not be carried away only by the advertisements on the name of

Ayurveda. Consumers should purchase an Ayurvedic medicine as per the

prescription of Ayurvedic physicians. Ayurvedic medicines manufactured by the

firms practicing GMP (Good Manufacturing Practices) as well as ‘standard’ and

‘premium’ brands of Ayurvedic medicines approved by the agencies like Quality

Council of India should be preferred by consumers. Therefore, Consumers of

Ayurvedic medicines need education on these medicines (both pharmaceutical and

OTC) and treatment procedures as they play an important role in health care.

(Anand, Mishra & Peiris, 2013).

This study reveals that the Ayurvedic system of treatment is effective at the

primary health care level only (Sharma, 2006). The researcher found that around

41% of consumers were satisfied in terms of the efficacy of Ayurvedic drugs

(Sinha et al., 2013).

The review of this study showed that the people have hope towards Ayurvedic

medicines. People by and large were aware of the use of common herbal drugs and

wished that the Govt. and pharmacist must play their due role in promoting their

usage (Jalwa et al., 2009).

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A research showed that patients under Allopathic treatment were aware of

Ayurvedic system of medicine, a majority of 79.5% expressed their views that they

suggested others for taking Ayurvedic treatment (Sharma, 2006).

The rural area consumers knew and preferred Ayurvedic products at large

(Sawant et al.,2013).

Some researchers believe that if Ayurveda was clubbed with yoga and other forms

of medicine, its demand will increase. At the same time the respondents stressed on

having more of Ayurvedic doctors in the locality (Subramanium & Veenkateesha,

2011).

The herbal cosmetics are in great demand was showed in a research study.

Therefore, it was concluded that people of a research area were more interested in

the Ayurvedic OTC products as compared to the prescribed Ayurvedic medicines

(Arya et al., 2012).

In a study that took place in southern India it was found that OTC segment exhibits

more of psychographic characteristics. The segment is not price sensitive and

hence the price can be consistently revised upwards with the rise of demand

(Vaijayanthi, Roy & Roy, 2012).

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PRODUCT INFORMATION

Product refers to what the business offers for sale and may include products or

services. Product decisions include the "quality, features, benefits, style, design,

branding, packaging, services, warranties, guarantees, life cycles, investments and

returns. Martin (2014) indicated that the benefits offered by the product and all its

features need to be studied and the potential buyers of the product need to be

identified and understood .

Price

The definition of Price according to Philip Kotler is: “Price is the amount of money

charged for a product or service.” Broadly price is the total amount that being

exchange by the customer to obtain a benefit of the product or service owning.

Biswas, Wilson, & LIcata (1993) explored how partitioned pricing lowers

consumers recalled price for the good and increases demand. Oosthuizen, Spowart,

& Heydenrych (2015) indicated that overall perceived price had a significant

positive relationship on overall purchase intentions.

Place

Marketing mix ( 2011) defined that place is defined as the "direct or indirect

channels to market, geographical distribution, territorial coverage, retail outlet,

market location, catalogues, inventory, logistics and order fulfilment" and it also

refers either to the physical location where a business carries out business or the

distribution channels used to reach markets. UKessays (2015) found that decision

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making by customers for purchasing product include the availability of the product

in the region. Ranjbarian, Kazemi, & Shokrollahi (2013 used regression analysis to

determine the relationship between place of access to herbal medicines and

prescription of these drugs by physician for purchasing and the result showed that

there is significant relationship between place of access and purchasing behavior of

consumer of herbal product.

Finding out the Ultimate Research Vacuum

In a nutshell, studies have taken place in few parts of India through Research

workers and doctors. Some show a growth and some research show stagnancy in

the market size. As with time and rising prices of good healthcare has become

quite expensive. In the rural areas, Ayurvedic treatments have become quite

popular. Moreover, with raising awareness in the field of Yoga and Ayurveda there

has been a greater awareness among the Urban India for Ayurvedic Medicines. It is

currently having an enormous scope of growth and development. More research on

this field may open new avenues for the corporate in improving the Ayurvedic

market both in India and abroad. But it is quite evident from the above literature

review, that no study has yet been made on the Consumers’ Perception on

Ayurvedic Products in West Bengal, especially with reference to Kolkata District.

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Objectives of the Present Study

Based on the above literature review, the proposed research tries:

1. To determine whether market-behaviour towards buying Ayurvedic products

has increased or shifted which had led to the Ayurvedic industry to contribute to

the sustainable growth in the market size.

2. To identify the potential factors relating to the consumer behaviour of the

Ayurvedic products to ensure economic benefits to manufacturers and marketers to

encourage in Ayurvedic Product marketing in West Bengal, especially in Kolkata

District.

Need of the Study

Day by day diseases are increasing. It is because of the change in lifestyle. We

have to maintain a good health care by practicing a better timetable in the life style.

The main goal of ayurveda is prevention as well as promotion of the body’s own

capacity for maintenance and balance. Ayurveda is to promote health, increase

immunity and resistance – and to cure disease. Ayurvedic products are very safe

for health and providing less side effects compared to allopathic medicines. So

now a day’s peoples are going to purchase the ayurvedic healthcare products.

Study area:

Numerous studies have been regulated on consumer behavior in the use of

Ayurvedic medicine/products or herbal drugs in several areas. However, no studies

have been conducted on Ayurvedic drug/medicine on consumption behavior of

consumers. In Joginder Nagar, drug stores are available in sufficient numbers and
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are visited by bulk of consumers. If these consumers have disproportionate drug

purchasing behavior or have improper decision making process of purchasing drug,

they will obtain low quality Ayurvedic drug/medicine which are unsafe, and the

consumer’s health may be at risk. Because of this, we (authors) were interested in

studying the Ayurvedic/herbal drug purchasing/buying behavior of consumers in

Joginder Nagar region.

The present investigation has been carried out at Joginder Nagar region of

Himachal Pradesh, India. For proper and orderly study; the study sites were

selected considering the population and density of area. Direct discussions with

different consumers/informants were made and their views were recorded. About

15 villages of Joginder Nagar namely Kupper, Ahju, Dwelu, Jalpehar, Dohag,

Shanan, Seri, Approach road, Graru, Dul, Chauntra, Balkrupi, Sainthal and Prain,

Odder (Bassi), Makrana etc. were authentically surveyed by B.Pharm (Ay.)

students of the Ayurvedic Pharmaceutical Sciences, Joginder Nagar, Mandi, H.P.

Hypothesis

1. Ho: There is no significance relationship between gender of the respondents and

level of satisfaction on selected ayurvedic healthcare products - Accepted

2. Ho: There is no significance relationship between age of the respondents and

level of satisfaction on selected ayurvedic healthcare products- Accepted

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3. Ho: There is no significance relationship between income level of the

respondents and level of satisfaction on selected ayurvedic healthcare products -

Accepted

RESEARCH METHODOLOGY

Methodological issues associated with this study are described in the

following sections.

Research Design

This study investigates the factors which influence the consumers buying

behavior towards ayurvedic product in Nepal. The research design of this

study is descriptive as well as analytical research. Primary and secondary

data are used in this research. The primary data defined as the data collected

first hand for subsequent analysis to find solutions to the research problem.

The primary data were obtained from a structured questionnaire survey while

the secondary data refer to information gathered by someone other than the

researcher conducting the current study. The secondary data were obtained

from books, journals, internet website etc. to access the respondents of this

study for data collection, the questionnaires were distributed the respondents

by handed personally. Confidentiality was assured by encouraging the

respondent to return back the questionnaire directly.

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Population and Sample

The population of this study is directly means all consumers who used to consume

the ayurvedic product. It is practically rather impossible to examine the whole

population of interest. The sample size (n=230) was computed and the respondents

were conveniently selected from the consumers available in different medical hall,

ayurvedic ausadhalya in Butwal sub metropolitan city.

This study has taken the convenience sampling methods. A total of 300 sets of

questionnaire were distributed to respondents, only 230 were returned. Of these

230 people 108 (47%) were male and 122 (53%) were female. The questionnaire

survey was conducted during the month of June and July, 2018.

Limitations

This study is limited to determine the factors which affects the consumer’s

behavior for purchasing ayurvedic product. The study has some limitations: first

the data are collected through self-administered questionnaire methods from the

selected respondents of the Butwal Sub- Metropolitan City only and this research

gives the limited information about the customer’s opinions where it is very

difficult to probe in the mind.

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Nature of Data

Both Primary and Secondary data were collected for the study. For the collection

of data, Structured interview with the help of structured questionnaire was

undertaken. The population, i.e., the list of Ayurvedic Medicine shops was taken

from the website (Kolkata Circle). After a thorough visit to all the 22 counters

found out there and after interviewing 127 consumers, got the primary data, out of

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which, 25 questionnaires had to be rejected due to incomplete data. Finally, got

102 filled-in questionnaires. Secondary data were also taken for literature review,

from different books, journals, newspapers, unpublished theses, etc.

Study Period

The primary data were collected during the period from January to December

2017.

Method of Sampling

Random Sampling method was used to find out the Ayurvedic Stores in Kolkata.

But Convenience Sampling method was adopted to interview the customers.

Tools for Analysis

Mainly Descriptive Statistics and Exploratory Factor Analysis were used for the

analysis. SPSS 24 was used for the purpose. Varimax Rotation method was used

for the Principal Component Analysis. Reliability and Validity Tests were done

before the analysis of data.

Analysis of Reliability & Validity and Factor Analysis

In this chapter the analysis and interpretation of the, “a study on customer buying
behavior of selected ayurvedic healthcare products”, was carried out based on a
sample size of 50 respondents through questionnaire method. The data were
tabulated and analyzed using the following tools based on the objective of the
study.
1. Henry garret ranking method
2. Average ranking analysis

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3. Chi-square test

Objective 1: To study the factors influencing the brand preferences on purchase of

ayurvedic healthcare products

i) Henry Garrett’s ranking method

Garrett’s Ranking Technique - Major influencing factor.

To findout the most significant factor which influences the respondent, garret

ranking technique was used. As per this method, respondents have been asked to

assign the rank for all factors and the outcome of such ranking has bessn The

above table shows that, no chemical product has been ranked first influencing

factor with the score of 4106 followed by quality ranking second, with the score of

3728. Less Side effects Compared to Allopathic Medicines are has been ranked as

third influencing factor, with the score of 3420. Brand image and proven health

improvements factor has been fourth and fifth rank. With the score of 3104, 2949.

Environmental friendly factor has been sixth rank with the score of 2850. Easy

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availability, reasonable price, convenience of usage, long usage of products are

coming under seventh, eighth, ninth, tenth rank. Scores of 2788, 2641, 2220 and

2068.Other factors are coming under the eleventh, twelth, thirteen and fourteenth

rank. These scores are 2018, 1972, 1693 and 1425. And finally recommended by

family members have been ranked last with the score of converted into score value

with the help of the following formula:

100 (Rij – 0.5)

Percentage position = ________________
Nj
1404. This technique has been used to find the majority of the customer by order of

their preference and presented in the above table.

ii) Average Ranking Analysis

The statistical tool is used to clearly depict the features which influence the

customer to purchasing. The number of ranks obtained by each factor was first

totaled; average were calculated by mean values the ranks were assigned.

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Mean in which each item being averaged is multiplied by a number (weight) based

on the item's relative importance. The result is summed and the total is divided by

the sum of the weights. Weighted averages are used extensively in descriptive

statistical analysis such as index numbers. Also called weighted mean.

A) Respondents Details

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B) Average Ranking Analysis

The above table reveals that the respondents have assigned quality of the

product was the primary factor ( Rank I) and Less Side effects Compared to

Allopathic Medicines as the next factor (Rank II), third rank to no chemical

product.

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1. Reliability Test

Any study, depending on primary data, must be backed up by a proper test of

reliability and validity. The evaluation of questionnaire reliability and internal

consistency is possible by Cronbach’s` α (Cronbach, 1984), which is the most

important reliability index and is based on the number of the variables/items of the

questionnaire, as well as on the correlations between the variables (Nunnally,

1978). The reliability of the instrument means that its results are characterized by

receptiveness’ (Psarou & Zafiropoulos, 2004) and these results are not connected

with measurement errors (Zafiropoulos, 2005), was evaluated by Cronbach alpha

coefficient. The index alpha (a) is the most important index of internal consistency

and is attributed as the mean of correlations of all the variables, and it does not

depend on their arrangement (Anastasiadou, 2006). So, it was found that the

reliability test on standardized items and the Cronbach’s alpha based on

standardized item found at 0.777 (shown in table 1) which proved the reliability of

the questionnaire and data.

Table 1: Reliability Statistics

Cronbach's Cronbach's Alpha Based on No. of

Alpha Standardized Items Items

0.777 0.771 21

Source: Compiled from Primary Data through SPSS 24

Page 30
Similarly, there was a very little variance of 0.178 between the inter-item

correlations (shown in table 2).

Table 2: Summary Item Statistics

Maximum / No. of
Mean Minimum Maximum Range Variance
Minimum Items

Item
3.361 1.794 3.980 2.186 2.219 0.178 21
Means

Item

Variance s 1.654 1.029 2.122 1.093 2.062 0.090 21

Inter- Item

Covarian
0.069 -1.204 1.437 2.641 -1.194 0.419 21
ces

Inter- Item

Correlati
0.041 -0.689 0.802 1.490 -1.164 0.159 21
ons

Source: Compiled from Primary Data through SPSS 24

The scale statistics is shown in table 3 where the standard deviation is 7.981.

Table 3: Scale Statistics

Mean Variance Std. Deviation No. of Items

70.58 63.692 7.981 21

Source: Compiled from Primary Data through SPSS 24

Page 31
2. Validity Test

Further, for testing the validity, the Friedman test and the Tukey test has

conducted. In statistics, Tukey's test of additivity, named after John Tukey, is an

approach used in two-way ANOVA (regression analysis involving two qualitative

factors) to assess whether the factor variables are additively related to the expected

value of the response variable. It can be applied when there are no replicated

values in the data set, a situation in which it is impossible to directly estimate a

fully general non-additive regression structure and still have information left to

estimate the error variance. The test statistic proposed by Tukey has one degree of

freedom under the null hypothesis, hence this is often called "Tukey's one-degree-

of-freedom test." Tukey's test for non-additivity was also found to be significant

(shown in table 4), signifying that there are no replicated values in the data set.

Table 4: ANOVA with Tukey's Test for No additivity

Sum of Mean
df F Sig
Squares Square

Between People 306.327 101 3.033

Between Items 362.189 20 18.109 11.426 0.000

Nonadditivity 12.816a 1 12.816 8.114 0.004

Within Balance 3188.710 2019 1.579

Residual
People Total 3201.526 2020 1.585

Total 3563.714 2040 1.747

Page 32
 Total 3870.042 2141 1.808

Grand Mean = 3.36

a. Tukey's estimate of power to which observations must be raised to achieve

additivity = - 0.672.

Source: Compiled from Primary Data through SPSS 24

Then the Hotelling’s T-squared test for inter-class correlation coefficient was

conducted and it was also found to significant (shown in table 5).

Table 5: Hotelling's T-Squared Test

Hotelling’s T-
F df1 df2 Sig
Squared

356.578 14.475 20 82 0.000

Source: Compiled from Primary Data through SPSS 24

Further, Intraclass Correlation Coefficient was also conducted, which is presented

below:

Page 33
Table 6: Intraclass Correlation Coefficient

95% Confidence
F Test with True Value 0
Intraclass Interval

Correlation Lower Upper

Value df1 df2 Sig
Bound Bound

Single
0.042a 0.022 0.070 1.914 101 2020 0.000
Measures

Average
0.477c 0.318 0.614 1.914 101 2020 0.000
Measures

Two-way mixed effects model where people effects are random and measures

effects are fixed.

a. The estimator is the same, whether the interaction effect is present or not.

b. Type C intraclass correlation coefficients using a consistency definition-the

between-measure variance is excluded from the denominator variance.

c. This estimate is computed assuming the interaction effect is absent, because it

is not estimable otherwise.

Since p-value > α (or F < Fcrit), we can’t reject the null hypothesis, and conclude

there is no significant difference between the mean vectors for the simple measures

and average measures.

Page 34
3. Test for Normality: One-Sample Kolmogorov-Smirnov Test

The Kolmogorov–Smirnov test can be modified to serve as a goodness of fit test.

In the special case of testing for normality of the distribution, samples are

standardized and compared with a standard normal distribution. This is equivalent

to setting the mean and

variance of the reference distribution equal to the sample estimates, and it is known

that using these to define the specific reference distribution changes the null

distribution of the test statistic, as below. Various studies have found that, even in

this corrected form, the test is less powerful for testing normality than the Shapiro–

Wilk test or Anderson–Darling test. The result of one-sample K-S Test was found

to be 0.000, i.e., significant, implying that although convenience sampling was

adopted as a method of sampling, but the dataset followed normal distribution.

4. Results of Exploratory Factor Analysis

Then, the supposition test of sphericity was conducted by the Bartlett test (Ηο: All

correlation coefficients are not quite far from zero) is rejected on a level of

statistical significance p<0.0005 for Approx. Chi-Square = 8624.031 (Shown in

Table 7).

Page 35
Table 7: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

0.843
Adequacy.

Approx. Chi-Square 1482.973

Bartlett's Test of
df 190
Sphericity
Sig. 0.000

Source: Compiled from Primary Data through SPSS 24

The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy and Bartlett’s test

of sphericity was also conducted. To ascertain if the subscales were suitable for

factor analysis, two statistical tests were used. The first being the Bartlett's Test of

Sphericity, in which it is examined if the subscales of the scale are inter-

independent, and the latter is the criterion KMO (Kaiser-Meyer Olkin Measure of

Sampling Adequacy, KMO) (Kaiser, 1974), which examines sample sufficiency.

The KMO measure of sampling adequacy results in 0.809 i.e. greater than 0.05

which was supported by the Bartlett’s test of sphericity with 5671 degrees of

freedom. The adequacy indicator of the sample ΚΜΟ = 0.843>0.70 (shown in

Table 7) indicated that the sample data is suitable for the undergoing of factor

analysis. The control of sphericity (Βartlett’s sign<0.001) proved that the principal

component analysis has a sense. Through this analysis, data grouping was based on

the inter-correlation with the aim of imprinting those factors which describe

completely and with clarity the participants’ attitudes towards the research subject.

Consequently, the coefficients are not all zero, so that the second acceptance of
Page 36
factor analysis is satisfied. As a result, both acceptances for the conduct of factor

analysis are satisfied and we can proceed to it.

Then a Principal components analysis with Varimax Rotation produces the

dimension of differentiation was used to confirm or not the scale constructs

validity. The main method of extracting factors is the analysis on main components

with right-angled rotation of varimax type (Right-angled Rotation of Maximum

Fluctuation), so that the variance between variable loads be maximized, on a

specific factor, having as a result little loads become less, and big loads become

bigger, and finally, those with in between values are minimized (Hair et al., 2005).

The factors were found from the factor analysis.

5. Results of Factor Analysis

For factor analysis it was seen from the study that the Principal Component

Analysis with 4 components consisting of 21 variables and Varimax Rotation

Method and finally they were extracted into 5 factors which was explained near

about 75.07% of the total variance (shown in table 8 and 9).

Page 37
Table 8: Rotated Component Matrix

Component

Price
Dimensional Market Self-
Dependence and
Shift Motivation medication
Display

Trend shift in
0.837
Ayurveda

Ayurvedic treatment in
0.821
rural healthcare

New generation buyers -0.819

Buying behavior on
0.803
brand name

Segment pricing high

-0.800
end creates niche

Buzz marketing affects

0.785
ayurvedic purchase

Propaganda motivates
0.773
ayurvedic buying

Ayurveda popular than

other form of 0.738

medications

Page 38
Popularity 0.687

Religion affects
-0.660
ayurvedic buying

Middle age user -0.648

Society motivator in

buying ayurvedic 0.584

product

No side effect
0.825
motivates buying

Branding lead to bigger

0.815
market

Easy access at POS

0.807
leads to sale

Ayurvedic treatment of
0.821
last resort

Nutraceutical create
0.813
new generation buyer

Shelf-display motivates
0.745
ayurvedic buying

Low price motivator 0.719

Self-medication as 0.862

Page 39
ayurvedic treatment

Extraction Method: Principal Component Analysis. Rotation Method: Varimax

with Kaiser Normalization.

A. Rotation converged in 11 iterations.

Source: Compiled from Primary Data through SPSS 24

Table 9: Total Variance Explained

Extraction Sums of Rotation Sums of

Initial Eigenvalues
Squared Loadings Squared Loadings
Component
% of Cumulative % of Cumulative % of Cumulative
Total Total Total
Variance % Variance % Variance %

1 8.429 42.145 42.145 8.429 42.145 42.145 7.324 36.620 36.620

2 2.515 12.576 54.721 2.515 12.576 54.721 2.522 12.610 49.230

3 1.653 8.263 62.984 1.653 8.263 62.984 2.148 10.742 59.972

4 1.393 6.967 69.951 1.393 6.967 69.951 1.775 8.877 68.848

5 1.024 5.118 75.069 1.024 5.118 75.069 1.244 6.221 75.069

6 0.865 4.327 79.396

7 0.680 3.401 82.797

8 0.608 3.040 85.837

9 0.507 2.534 88.372

10 0.359 1.797 90.168

Page 40
11 0.337 1.685 91.853

12 0.301 1.504 93.356

13 0.244 1.221 94.577

14 0.232 1.162 95.740

15 0.199 0.997 96.737

16 0.158 0.790 97.526

17 0.151 0.757 98.284

18 0.134 0.668 98.952

19 0.117 0.587 99.538

20 0.092 0.462 100.000

Extraction Method: Principal Component Analysis.

Source: Compiled from Primary Data through SPSS 24

RESULTS AND DISCUSSION

77.4% (n=387) of consumers consume Ayurvedic medicine for treatment of

common/prevalent diseases like common cold, cough, constipation, allergy etc.

This concludes that Ayurvedic medicine was mostly consumed by consumers for

prevalent diseases. Ayurveda is not just a treatment, rather a lifestyle; a lifestyle

which has ascertain ways of eating habits, meditative practices and herbal

medications when fallen sick. Human body is prone to diverse infections and

ailments anytime due to polluted atmosphere and increased bacterial spread levels.

Page 41
It is quite common that people often periodically or frequently gets infected with

one or other bacteria or virus. Ayurveda has prescribed several simple homemade

medications to prevent and fight such common ailments. 26.6% (n=133)

consumers taking Ayurvedic medicine for the treatment of major diseases like

diabetes, arthritis, bronchial asthma, tuberculosis, migraine, depression etc. (The

other 73.4% (n=386) consumers refused to take Ayurvedic medicine because, they

don’t know about the diseases and the effect of Ayurvedic medicine on these

diseases. Traditional systems of medicines involving use of herbs have been used

throughout the world from centuries. Plants (herbs, shrubs, trees) have been the

authentic source for most of the drugs. Medicinal plants contain so many

phytoconstituents (alkaloids, glycosides, tannins, flavonoids, resins, terpenoids)

which are the major source of ameliorative agents to treat human diseases. Recent

discovery and advancement in medicinal and aromatic plants have lead to the

enhancement of health care of mankind .

73.2% (n=366) of people consume medicine without consulting Physician. These

data shows that the people of Joginder nagar are interested in the OTC (over the

counter) products of Ayurveda because they are much influenced by the

advertisement given by various Ayurvedic manufacturing companies (Dabur,

Himalaya, Zandu etc.)

64.8%, n=324 of the subjects preferred Ayurvedic medicines in comparison with

Allopathic (32.6%, n=156), Homeopathic (1.8%, n=9), Unani (0.8%, n=4)

medication (Graph 1). Ayurveda is the most extensively practiced system of

Page 42
medicine of the Indian traditional medicine systems, but there are others such as

Siddha and Unani which are also practiced in the Indian subcontinent.

Graph 1: Consumer consumes Ayurvedic medicine along with allopathic,

homeopathic medicine for treating common disease

59.6%, n=298 Advertisements of Ayurvedic Products/medicines has a possible

impact on Consumers (37.2%, n=186 of Consumer consumes Ayurvedic medicine

along with allopathic, homeopathic medicine for treating common disease.

However the remaining consumers had refused to take Ayurvedic medicine along

with allopathic, homeopathic medicine because the consumers of Joginder Nagar

said that they don’t believe in the double treatment, they either want to take

Allopathic medicine or Ayurvedic medicine only.

72.6%, n=363 of Consumers are using herbal cosmetic products. This indicates

that the herbal cosmetics are in great demand. Indian herbs and its significance are

Page 43
popular worldwide. Herbal Cosmetics have growing demand in the world market

and is an inestimable gift of nature. There are a wide range of Herbal cosmetic

products available in the market. Apart from traditionally documented applications,

some modern trials have also constituted the utility of Indian herbs in personal care

products.

Many of the consumers have rigid mind set of particular brand like Dabur (44.8%,

n=224), (19.2%, n=96), Himalaya (17.2%, n=84), Patanjali 12%, n=60). Dabur

comes out to be the most favorite brand among consumers in Joginder Nagar

region (Graph 2).

Graph 2: Favorite Ayurvedic brand

78.4%, n=382 of Consumers are using some Ayurvedic health/food supplements or

Page 44
Rejuvenating Ayurvedic medicines. Rejuvenation therapy involves tonic

herbs/drugs such as Asparagus racemosus, Withania somnifera, Ocimum sanctum

to nourish all the tissues, promote the strength, enhance ojas and strengthen the

immunity. It also involves eating foods like nuts, ghee and dairy products. In

Ayurveda, Rasayana (tonics) are the sweet flavored tonic which increases the

quantity and quality of the tissues as it is anabolic. The herbs/drugs that boost

immunity are full of immune-enhancing saponins and polysaccharides.

73.6%, n=368 consumers agrees with the reliability of Ayurvedic Medicines.There

are some advantages of natural medicine over modern medicine as complementary

therapy, is easily available as home remedies. Natural therapy is comparatively

cheaper than modern remedies and treatments.

Natural remedy generally does not produce any reaction unless intake of such

medicine (the dosage) is not followed as per advice 96.2%, n=481of consumers do

not feel any side effect on their health. Complementary treatment or natural

remedy is less likely to affect other bodily systems and hence is relatively safe.

Natural remedies, being general daily health supplements, not only help in curing

the primary ailment but also soothe other body systems. Holistic remedies help in

rejuvenating and revitalizing the human health. Rather than working specifically

on signs and symptoms, natural herbal remedies treat the root-cause. Thus, helps in

terminating health ailment permanently.

Page 45
Ayurveda means “knowledge of life” and is about 5,000 years old traditional

Indian system of medicine. Ayurveda is a system, which avail the essential

fundamentals of nature, to maintain health in a person by preserving the

individual's mind, body and spirit in adept equanimity with nature. Natural

remedies have immense applications globally. Unique therapy such as Ayurvedic

Panchakarma, Aromatherapy, Acupressure/acupuncture, Homeopathy, Chinese

Traditional therapies, etc have been few of the most sought after treatment ways

due to rapidly expanding hazards of modern medicines.

Joginder Nagar is situated at north-east corner at an average 3,314 feet,

located in the north-western ranges of the Himalayas 31.98°N, 76.77°E surrounded

by mountains on all sides. Joginder Nagar is a town and nagar panchayat in Mandi

district in the Indian state of Himachal Pradesh. Named after Raja Joginder Sen,

Joginder Nagar is terminal point of 163 km long Kangra Valley narrow gauge

railhead. [7-8] Ayurvedic hub (Joginder Nagar) is surrounded by various

educational institutions/research centers like Herbal garden (cultivations,

collection, procurement, identification, authentication, preservation various

herbarium samples including endangered species, marketing and supply of herbal

drugs to Ayurvedic manufacturing units), Ayurvedic pharmacy (manufacturing of

herbal drugs), Drug testing lab. (Qualitative and quantitative analysis of herbal

drugs), Ayurvedic hospital (Intensive/general care of patients using Ayurvedic

therapy/medicines). Joginder Nagar is packed with clinics, pharmacies and

Page 46
hospitals. In terms of quantity, people have easy access to health services, mainly

Ayurvedic, Allopathic and Homeopathic. To know the behavior of consumers

towards the Ayurvedic medication/products, this survey have been conducted in

Joginder Nagar.

medicine/products or herbal drugs in several areas. However, no studies

have been conducted on Ayurvedic drug/medicine on consumption behavior of

consumers. In Joginder Nagar, drug stores are available in sufficient numbers and

are visited by bulk of consumers. If these consumers have disproportionate drug

purchasing behavior or have improper decision making process of purchasing drug,

they will obtain low quality Ayurvedic drug/medicine which are unsafe, and the

consumer’s health may be at risk. Because of this, we (authors) were interested in

studying the Ayurvedic/herbal drug purchasing/buying behavior of consumers in

Joginder Nagar region.

The present investigation has been carried out at Joginder Nagar region of

Himachal Pradesh, India. For proper and orderly study; the study sites were

selected considering the population and density of area. Direct discussions with

different consumers/informants were made and their views were recorded. About

15 villages of Joginder Nagar namely Kupper, Ahju, Dwelu, Jalpehar, Dohag,

Shanan, Seri, Approach road, Graru, Dul, Chauntra, Balkrupi, Sainthal and Prain,

Odder (Bassi), Makrana etc. were authentically surveyed by B.Pharm (Ay.)

students of the Ayurvedic Pharmaceutical Sciences, Joginder Nagar, Mandi, H.P.

Page 47
The present study was a descriptive research conducted between Sept.2011-May

2012 (8 months). The study comprises of several selected questions (to be asked

from consumers randomly) (Table 1) about their buying behavior towards

Ayurvedic medicine/product in Joginder Nagar.

Selecting the research method-The primary data contains collection of

questionnaire filled by B.Pharma (Ayurveda) students (30 students divided into 5

groups; 6 students per group, Fig.1) from 500 consumers/households as a sample

to represent the entire consumers/households of Joginder Nagar region.

Data collection was done in one stage only; in the present study the primary data

was collected from consumers (about 500 consumers with in age group of 15-75

yr.) After collecting the data the next important phase was to evaluate the data.

Finally interpretation of the data was done to arrive at the conclusion. cough,

constipation, allergy etc. This concludes that Ayurvedic medicine was mostly

consumed by consumers for prevalent diseases. Ayurveda is not just a treatment,

rather a lifestyle; a lifestyle which has ascertain ways of eating habits, meditative

practices and herbal medications when fallen sick. Human body is prone to diverse

infections and ailments anytime due to polluted atmosphere and increased bacterial

spread levels. It is quite common that people often periodically or frequently gets

infected with one or other bacteria or virus. Ayurveda has prescribed several

simple homemade medications to prevent and fight such common ailments. 26.6%

(n=133) consumers taking Ayurvedic medicine for the treatment of major diseases

like diabetes, arthritis, bronchial asthma, tuberculosis, migraine, depression etc.

Page 48
(The other 73.4% (n=386) consumers refused to take Ayurvedic medicine because,

they don’t know about the diseases and the effect of Ayurvedic medicine on these

diseases. Traditional systems of medicines involving use of herbs have been used

throughout the world from centuries. Plants (herbs, shrubs, trees) have been the

authentic source for most of the drugs. Medicinal plants contain so many

phytoconstituents (alkaloids, glycosides, tannins, flavonoids, resins, terpenoids)

which are the major source of ameliorative agents to treat human diseases. Recent

discovery and advancement in medicinal and aromatic plants have lead to the

enhancement of health care of mankind [1].

73.2% (n=366) of people consume medicine without consulting Physician.

These data shows that the people of Joginder nagar are interested in the OTC (over

the counter) products of Ayurveda because they are much influenced by the

advertisement given by various Ayurvedic manufacturing companies (Dabur,

Himalaya, Zandu etc.) 64.8%, n=324 of the subjects preferred Ayurvedic

medicines in comparison with Allopathic (32.6%, n=156), Homeopathic (1.8%,

n=9), Unani (0.8%, n=4) medication (Graph 1). Ayurveda is the most extensively

practiced system of medicine of the Indian traditional medicine systems, but there

are others such as Siddha and Unani which are also practiced in the Indian

subcontinent.

Page 49
Suggestions
1. Government should take necessary steps to improve the sales of ayurvedic
healthcare products by giving due importance to quality, sales efforts etc..,
2. Through proper channel awareness can be enhanced.
3. Increase the ayurvedic shops.
4. Majority of the respondents feel that the product quality is good. So the
ayurvedic healthcare company can try maintaining the same quality level.
5. The majority of respondents feel that the neat appearance to the stores. So the
stores can try to maintain the same level.

Page 50
CONCLUSION

The research was based on the customer buying behavior and their level of

satisfaction towards Aayurvedic healthcare products. In this research, it is found

that respondents prefer a specific brand because of the chemical free product and

quality of the products. Also it is found that respondents with different age groups

have different perceptions, like customers between age group 36-45 years are most

interested with buying ayurvedic heathcare products. The customer buying a

variety of ayurvedic healthcare products which satisfy his wants and they are

always influenced by his purchasing activities by some considerations which lead

him to select a particular brand or a particular store in preferred to others.

Page 51
References

1. Batra SK. Kazmi SHH. „Consumer Behaviour- Text and Cases‟, New Delhi:
Excel Books. 2004.
2. Bhushan patwardhan. Ayurveda: The Designer medicine: A review of ethno
pharmacology and bioprospecting research, Indian Drugs 2000; 37(5):213-227.
3. Sankar, Deepa. The Role of Traditional and Alternative Health Systems in
Providing Health Care Options: Evidence from Kerala. Delhi-Institute of
Economic Growth 2001. Discussion Paper.
4. Nair S. Consumer Behaviour in Indian Perspective, Himalaya Publishing House,
Mumbai. 2006.
5. Jawla S. Gupta AK, Singla R. Gupta V. General awareness and relative
popularity of Allopathic, Ayurvedic, Homoepathic Systems. Journal of Chemical
and Pharmaceutical Research 2009 1 Suppl.1.105-112.
6. http://www.francorp.in/ayurveda.php
7. https://draxe.com/ayurvedic-medicine/
8. http://www.allayurveda.com/discover.asp
9. http://www.ayurvedicbazaar.com/ayurvedic_books.php

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