Capstone project synopsis

Topic: “Consumer preference towards the attributes (nutrition) of products

while selecting food items”.

UNDER THE GUIDANCE OF MR. HITESH JHANJI

Submitted by:

ROHAN SINHA RT- 1902B48

MOHSIN QAMMER RT- 1902B41

ARVIND KUMAR RT- 1902B40

SACHIN KUMAR RT- 1902A10

 REVIEW OF ARTICLE

With the changing lifestyle of the common people in their hectic schedule they are buying more
and more packed food items. At the same time the consumers of these food items have become
health conscious which has resulted in developing preferences for the nutritional attributes of
products (food items). So we began our endeavor with the following objectives to find out
the consumer preferences towards various nutritional attributes of food items & to examine the
main factors which influences consumer preference towards the product (food items)

The youth as well as general public have become aware and educated towards the need and
importance of proper nutrition. This is a healthy sign in our society. The overall research article
outlines that the respondents are aware as well as sensitive towards the nutritional attributes of
packed food items. We were able to identify certain factors which influence the consumer buying
behaviour while purchasing the food items. Further we were also able to reach to conclusion as
well as recommendations or suggestions for the industry.

INTRODUCTION

The Nutrition market in India is going to be the largest growing industry. It is increasing to a
large extends due to the growing popularity of fitness products and their implications on health
for long term bases. An important aspect of nutrition is the daily intake of nutrients. Nutrients
play a very important role in a person's diet. Many nutrients are essential for life, and an
adequate amount of nutrients in the diet is necessary for providing energy, building and
maintaining.

With the increasing population, the demand for healthy and nutritional food products has also
increased. Various nutritional diet plans are available in India based on different categories like
age, sex etc. Many diseases have been increased due to unhealthy balanced diet. Most of the
people are now shifting to nutritional food products because of healthy and long standard of
living. The amount of calories intake by each person plays an important role in the overall
nutritional capacity of the country.

A healthy nutritional diet plan should always include proteins as research have shown that
protein rich food products tends to satisfy our hungry needs more than any other diet plan. High
protein diet meals are thus required for the maintaining, repairing and even producing hair, skin,
bones and other organs in the body. Choose your diet plan wisely and try to stick to high-
protein food products for diet rich in nutrition. Right amount of proteins should be taken in our
daily life for better results. High protein diet plan should contain 10 to 15 percent of proteins.
About 56 grams of proteins should be consumed everyday by a person.

High calories and proteins should be consumed by people who perform high physical activities
such as working with heavy weights, doing heavy exercises or extensive outdoor field work. This
will result in a better nutritional country thus by maintaining a healthy standard of living. With
this increasing cost of medicines and medical treatments, it is always advisable to go
for healthy food products with a lot of green fruits and vegetable for high proteins, calories and
low in oily, fatty, and sugary products to stay healthy.

NEED AND SCOPE

Rise in competition, consumerism and consumer rights awareness also gives rise to the need for
this research. Food item sector is growing very fast as their demand is touching zenith due to the
increase in disposable income of consumers in India so the need of our study is to find out what
consumers prefer and why they prefer a particular product of food item.

The companies making food items can sustain their market only if they understand the attitude
and behavior of their customers. There is a stiff competition from other players especially in
urban areas.

REVIEW OF LITERATURE

Then we included the ‘review of literature’ where past but related research works studied by us
were summarized. This was important in guiding our direction for the study. We included the
research work done by both the Indian as well as foreign researchers as suggested by the
respected panel members.
Shine, Angela et al., (1997), This study presented, a high level of awareness of nutrition labeling
is evident among consumers, with just over half of the sample using nutrition labels. The results
show that nutrition labels have a positive impact on consumer purchase decision making. Of
those consumers who use nutrition labels, 88 per cent of them use these labels in their evaluation
of food products.
The survey results indicate that many consumers merely use nutrition labeling to avoid particular
nutrients and are therefore not obtaining the maximum benefit from nutrition labeling. It appears
that the aims of nutrition labeling legislation have not been fulfilled, since nutrition labeling on
food products is not easily understood by consumers. A number of important issues have been
revealed in this study. Consumers are very much aware of the concept of nutrition and nutrition
labeling. However, nutrition information must be presented in a format that can be easily
understood by the consumer. As observed, consumers often refer to food products/ nutrients as
“good” or “bad” and search out information on nutrients they wish to avoid, for example fat and
sugar.
Subratry, A.H, et al, (2002) focused on the assessment of the practical knowledge of cardiac
patients and health care professionals of a heart-healthy diet. Based on their findings they
proposed that patients in Mauritius should be referred to dieticians on a more routine basis if
effective dietary change is to be successfully implemented.
OBJECTIVES
Objectives of our study are as follows:
(I) To find out the consumer preferences towards various nutritional attributes of food items.

(II) To examine the main factors which influence consumer preference towards the product (food
items).

RESEARCH METHODOLOGY

Descriptive Research particularly cross-sectional design has been used here. In research
methodology we have defined the research design, population, sampling method, sampling
element, sample size, area of study, sources of data collection and data analysis technique for our
study. All the respondents who have filled our questionnaire are the sampling element for the
research.
For the purpose of primary data collection we designed a respondent friendly and a
comprehensive questionnaire to assess our survey participants with reference to their preferences
towards the food products and the factors which affect their preferences while selecting food
items. This too was corrected and approved during the panel presentation. Persons who are the
residents of Jalandhar or nearby area are our population.

Convenient sampling has been done here to gather the primary data from a hundred respondents.
Secondary sources for data collection here are the journals, Research Papers, Articles, internet,
magazines etc.

After collecting the filled in questionnaires we recorded the data in a software tool called SPSS
for analysis and interpretation in a scientific and accurate manner.

The various references have been presented which include the websites and online books also.

FINDINGS

The findings are stated below

1. The overall interpretation shows that the respondents are aware as well as sensitive
towards the nutritional attributes of packed food items.

2. Printed information on the nutritional values has been advocated by a clear majority.

3. Although all nutrients are duly recognized, the importance of carbohydrate and proteins
have been well voted, which satisfies our first objective.

4. Consumers seem to be less attracted with the nutritional attributes like vitamins and
minerals.

5. We also found that majority of consumers are reading the nutritional labels.

6. From the analysis we came to know brand name, price, advertisement and appearance of
the products are the important factors which customers consider before purchasing that
particular product, which satisfies our second objective.
 7. It was also found that consumers are well affected by the past experience and knowledge
of the food items and thus impacts their buying behavior.

Conclusion

The following was concluded at the end of the study.

The youth as well as general public have become aware and educated towards the need and
importance of proper nutrition. This is a healthy sign in our society.

With modernization and sophistication our lifestyle has changed. We depend on packed food
many times. Hence the corporations producing packed food items have the responsibility of
informing or educating the consumers of the included nutritional attributes.

Bibliography

• Subratry, A.H, Nicon Fawe, 2002, Nutritional knowledge of a heart-healthy diet among
care professionals and cardiac patients in Maurius, Nutrition & Food Science, volume 32,
no.-5, 2002, 184-189.

Lin, Chien-Huang; Wu, Pei-Hsun, January 1, 2006 Social Behavior and Personality, journal of
consumer research, (35-66)

• Goyal Anita, Singh N. P., 2007, Consumer preference about fast food in India: an
exploratory stud, British Food Journal, Vol. 109 Iss: 2, pp.182 – 195

• http://www.spss.com/media/collateral/spss-for-instruction-books.pdf

• http://books.google.co.in/books?
id=hZ9wSHysQDYC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onep
age&q&f=false

• http://books.google.co.in/books?
id=37x8afFN0FYC&printsec=frontcover&dq=research+methodology&hl=en&ei=plFfTd
2vBoLKrAed0KnXAg&sa=X&oi=book_result&ct=result&resnum=3&sqi=2&ved=0CEI
Q6AEwAg#v=onepage&q&f=false
INTRODUCTION

The agro and food industry in the modern era has been well influenced by the rise in
consumerism, changing lifestyles and increasing competition which is evident through the range
of food items available for any consumer. At any retail outlet for food products be it from the
organized or unorganized sector we have a range of products available where almost all of them
have the labeling information indicating the different detailed nutritional values as well as
ingredients which can be well compared. Comparison can be both qualitative as well as
quantitative.

The term “preferences” is used in a variety of related, but not identical, ways in the scientific
literature. This makes it necessary to make explicit the sense in which the term is used in
different social sciences.

All marketing starts with the consumer. So consumer is a very important person to a marketer.
Consumer decides what to purchase, for whom to purchase, why to purchase, from where to
purchase, and how much to purchase. In order to become a successful marketer, he must know
the liking or disliking of the customers. He must also know the time and the quantity of goods
and services, a consumer may purchase, so that he may store the goods or provide the services
according to the likings of the consumers. Now the whole concept of consumer’s sovereignty
prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In this
sense, “consumer is the supreme in the market”.
As consumers, we play a very vital role in the health of the economy local, national or
international. The decision we make concerning our consumption behavior affect the demand for
the basic raw materials, for the transportation, for the banking, for the production; they affect the
employment of workers and deployment of resources and success of some industries and failures
of others. Thus marketer must understand this.

Preference (or "taste") is a concept, used in the social sciences, particularly economics. It
assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of
these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they
provide. More generally, it can be seen as a source of motivation. In cognitive sciences,
individual preferences enable choice of objectives/goals.

The study of the consumer preference not only focuses on how and why consumers make buying
decision, but also focuses on how and why consumers make choice of the goods they buy and
their evaluation of these goods after use. So for success of any company or product promotion it
is very necessary to depart its concentration towards consumer preference.

In psychology, preferences could be conceived of as an individual’s attitude towards a set of

objects, typically reflected in an explicit decision-making process. Alternatively, one could
interpret the term “preference” to mean evaluative judgment in the sense of liking or disliking an
object which is the most typical definition employed in psychology. However, it does not mean
that a preference is necessarily stable over time. Preference can be notably modified by decision-
making processes, such as choices, even in an unconscious way

"Preference" may also refer to non-choices, such as genetic and biological explanations for one's
preference. Sexual orientation, for example, is considered a sexual preference.

Marketers defined consumer preference as the way in which consumers in a free market choose
to divide their total expenditure in purchasing goods and services.

Review of literature

Shine, Angela et al., (1997), This study presented, a high level of awareness of nutrition labeling
is evident among consumers, with just over half of the sample using nutrition labels. The results
show that nutrition labels have a positive impact on consumer purchase decision making. Of
those consumers who use nutrition labels, 88 per cent of them use these labels in their evaluation
of food products.
The survey results indicate that many consumers merely use nutrition labeling to avoid particular
nutrients and are therefore not obtaining the maximum benefit from nutrition labeling. It appears
that the aims of nutrition labeling legislation have not been fulfilled, since nutrition labeling on
food products is not easily understood by consumers. A number of important issues have been
revealed in this study. Consumers are very much aware of the concept of nutrition and nutrition
labeling. However, nutrition information must be presented in a format that can be easily
understood by the consumer. As observed, consumers often refer to food products/ nutrients as
“good” or “bad” and search out information on nutrients they wish to avoid, for example fat and
sugar.

Subratry, A.H, et al, (2002) focused on the assessment of the practical knowledge of cardiac
patients and health care professionals of a heart-healthy diet. Based on their findings they
proposed that patients in Mauritius should be referred to dieticians on a more routine basis if
effective dietary change is to be successfully implemented. Huang, Chien et al., (2006), The
study is based on the two conflicting perspectives of the existing literature: whether large variety
will weaken or strengthen consumer preferences. This research identifies need for cognition
(NFC) as a key factor moderating the effect of variety on consumer preferences and examines
the role that recommended alternatives play. Goyal, Anita and Singh, N.P., (2007), this paper
seeks to estimate importance of various factors affecting the choice of fast food outlets by Indian
young consumers. Results indicate that the young Indian consumer has passion for visiting fast
food outlets for fun and change but home food is their first choice. They feel homemade food is
much better than food served at fast food outlets. They have the highest value for taste and
quality (nutritional values) followed by ambience and hygiene. Three dimensions (service and
delivery dimension, product dimension, and quality dimension) of fast food outlets' attributes are
identified based on factor analysis results. The two fast food outlets' rating differs significantly
on the seven attributes. McDonald's scores are higher on all attributes except “variety”. Further,
consumers feel that fast food outlets must provide additional information on nutritional values
and hygiene conditions inside kitchen. Harris, Judy and Blair, Edward A., (2007), the most
prior research on bundling from a consumer perspective has focused on how bundles are
processed, particularly from a prospect theory or mental accounting perspective. In contrast,
relatively little research has examined the factors that might drive consumer preference for
bundles versus individual items. This article addresses one such factor: the potential to reduce
search and assembly costs. Through exploratory interviews and two laboratory experiments, the
authors show that preference for a bundle is greater when bundle choice will reduce search effort
than when it will not, particularly among consumers who are less motivated to process
information. Günden, Cihat et al., (2008), the main objective of this study is to measure
consumer preferences for information sources on food safety along with the factors influencing
the degree of consumer preferences. The information source hierarchies of consumers were
established and ranked from most to least importance. The results show that the most important
information sources of consumers are “doctors/experts” and “television programmes”. The
consumer preferences from the first stage were regressed upon the consumer specific variables
by using seemingly unrelated regression in the second stage. The preferences for information
sources are mainly influenced by education and level of income. Yoon, Song-Oh and
Simonson, Itamar (2008), The researchers found that the choice process and the configuration
of the choice set have long-term effects on the strength, stability, and attribution of the resulting

preferences and can even influence product satisfaction. They found that the configuration of the
choice set mattered greatly when it came to creating consumer preference. In the studies,
participants were presented with products (food processors, lawn mowers, portable grills,
binoculars, cars, cordless phones, etc.). The products were presented in three types of choice
sets: asymmetric dominance (where one choice was clearly superior to the other two),
compromise (where one choice was intermediate to the other two), or control (two options that
were somewhat equivalent). After participants made choices, they rated the products and their
satisfaction with their choices. In five different studies that shifted the products and choice sets,
the researchers found that the strength of preference for one option over another can be affected
by the context of the choice in ways people don't realize. PALO ALTO,(2008), The researcher
suggested that people seem to inherit tendencies to choose a compromise option and avoid
extremes; select sure gains over gambles; prefer an easy but non-rewarding task over an
enjoyable challenging one; look for the best option available; and prefer utilitarian, clearly
needed options (like batteries) over more indulgent ones (gourmet chocolate).The study found
that likings for specific products - such as chocolate, mustard, hybrid cars, science fiction movies
and jazz seemed to be genetically related. Researcher examined a wide range of consumer
judgment and decision-making phenomenon and discover that many though not all of them are in
fact heritable or influenced by genetic factors. Smeesters, Dirk and Mandel, Naomi (2009), the
authors examined situations that lead people to prefer nostalgic products (products that remind
them of the past) over more contemporary products. They conducted a series of five experiments
in which they found that the key to preferring nostalgic products is the need to belong.
"Whenever a situation arises in which people feel a heightened need to belong to a group, or
generally need to feel socially connected, they will show a corresponding higher preference for
nostalgic products. Ozimek Irena, et al (2011), The purpose of this paper is to reveal factors
underlying Polish consumers' food choices and particularly their perception of food quality
attributes in relation to selected food products and points of sale and to reflect on the implication
of shifting consumers' expectation towards food for the national food industry. The paper
provides a review of previous research results relevant for the problem analyzed – emphasizing
the results from the authors' own research conducted in the years 2000-2007 with the use of
quantitative approach on representative in terms of gender, level of education, place of residence
samples of Polish consumers. Polish consumers are more and more concerned with various food
quality attributes and particularly sensory properties, healthiness and safety. They differentiate
between qualities of foodstuffs offered in various points of sale and have favourable opinions
about specialized shops and tend to perceive the quality of food bought in super and
hypermarkets as inferior. Perception of food quality is dependent on the product being assessed,
and foodstuffs addressed to particular groups such has infants and people facing health problems
were perceived as having high quality, while food with additives, highly processed and
genetically modified was assessed as having low quality. H. Roland, (2011), Despite a well-
established corporate identity construct there is still ambiguity and disorientation regarding the
corporate visual identity construct. The purpose of this paper is to investigate the inconsistent use
of terminologies such as “symbolism” and “corporate design” as well as pointing towards an
insufficient conceptualization of the corporate identity and visual identity construct vis-à-
vis other sensory dimensions. A review of existing categorizations and conceptualizations of the
corporate identity and visual identity construct is provided. The paper presents a remodeled
corporate visual identity construct that takes a holistic sensory perspective and proposes the
corporate sensory identity construct as a more adequate and flexible reflection of current
business reality. The paper offers fundamental guidance for managers regarding the integrated
and holistic utilization of a set of sensory communication activities as part of their corporate
identity management. Zick Andrea et al, (2010), The food standards agency recently encouraged
catering companies in the UK to introduce calorie labeling on menus or at the point of purchase.
The purpose of this paper is to report the feasibility of implementing such a scheme in a
restaurant in the UK. A practical case study approach was adopted whereby all foods on the
menu of a London-based five star hotel restaurant were analyzed nutritionally. The menu
presented the amount of calories, saturated fat, polyunsaturated fat, fiber and sodium each dish
contained. The issues surrounding the display of nutritional information on restaurant menus,
perceived difficulties or barriers and resistance to the scheme by staff were documented
qualitatively. Time constraints, and the consequential financial costs, were identified as being
barriers that need to be surmounted if the scheme is to operate successfully. The scheme was also
viewed as being of low priority by the restaurant operational team.

Need of the study

Food products have become a business worth trillions of dollars worldwide. Rise in competition,
consumerism and consumer rights awareness also gives rise to the need for this research. Food
item sector is growing very fast as their demand is touching zenith due to the increase in
disposable income of consumers in India. Further due to the increase in health awareness,
consumers in the present scenario has become cautious about the food items that they select, so
the need of our study is to find out what consumers prefer and why they prefer a particular
product of food item.

Scope of the Present Study

The growth of the system of quality food items in developed countries has opened up
opportunities in India as well and it has been seen that many players entered in this sector and the
number is increasing very fast day by day. Hence, the present study focuses its attention on
consumer preference towards the attributes (nutrition) of products while selecting food items.
The companies making food items can sustain their market only if they understand the attitude
and behavior of their customers. There is a stiff competition from other players especially in
urban areas. The present study, therefore, is conducted in Jalandhar. This city, like any other city
is a mix of rich and poor, and is influenced by the rapid growth of urban population. Many have
been set up in and around the city, and this conducting the present study was found suitable.

OBJECTIVES OF THE STUDY

The following are the specific objectives of the study.

(i) To find out the consumer preferences towards various nutritional attributes of food items.

(ii) To examine the main factors which influence consumer preference towards the product (food
items)
LIMITATIONS OF THE STUDY
Our study was conducted within a limited period of time. Limited resources were accessible
including money.

RESEARCH METHODOLOGY

RESEARCH DESIGN

In the study the Consumer Preference towards the attributes (nutritional) of products while
selecting the food items, the problem and objectives are clearly defined, so the Descriptive
Research particularly cross-sectional design has been used here. It involves the collection of

information from any given sample of population elements only once.

POPULATION

The proposed study is to find out the Consumer Preference towards the attributes (nutritional) of
products while selecting the food items, for research purpose the population will be all those
persons who are the residents of Jalandhar.

SAMPLING METHOD

In this research, we will use the convenient sampling. The convenient sampling is one in which
the researcher according to his convenience collects the data regarding to his research from
various respondent.

SAMPLING ELEMENT

The sampling element refers to the ultimate unit or individual from whom information will be
collected in the survey and who therefore will be the focus of the analysis.

So in our study all the respondents who have filled our questionnaire are the sampling element
for the research.

SAMPLE SIZE
Sampling size refers to the number of items to be selected from the population to constitute a
sample. This is the major problem before the researcher. The size of the sample should neither be
excessively large nor too small; it should be and must be the true representatives of the
population.

In our research the sample size is 100.

AREA OF STUDY:

Due to the cost and time constraint the area of the study is confined to Jalandhar only.

SOURCES OF DATA COLLECTION

The data should be collected both from primary as well as secondary source. Primary Source for
collecting the data is Questionnaire and the secondary Sources are the journals, Research
Papers, Articles, internet, magazines, and newspapers.

DATA ANALYSIS TECHNIQUE

The data collected should be analyzed with the help of following tools;

• Graphical methods

• Factor analysis

The SPSS plays a key role in the analysis and interpretation of data.
ANNEXURE
QUESTIONNAIRE
Age ……………………………..

Gender ………………………..

Occupation ………………….

1. Are you the main food shopper of the household?

a. Yes ( ) b. No ( )

2. Do you take any special diet?

a. Yes ( ) b. No ( )

3. How important is the information about nutritional value of food items?

a. Very important ( ) b. important ( )

c. Average ( ) d. Least important ( )

e. Not important at all ( )

4. Should the information about the nutritional attributes be provided on packed food items?

a. Yes ( ) b. No ( )

5. How often do you read nutritional food labels while grocery shopping?

a. Never ( ) b. Sometimes ( ) c. Always ( )

6. Rate the following factors which influence you to buy particular products (food items).

(1-most important, 5- not important at all)

Factors 1 2 3 4 5
Nutritional
value
Advertisement

Aesthetics

Reference from
friends/relatives
Brand name

Cognition

Price

Taste

Any other,
specify

7. How will you rate the following nutritional attributes on the scale of 1 – 5?

(1-most important, 5- not important at all)

Attributes 1 2 3 4 5
Carbohydrates
Proteins
Fats
Vitamins
Minerals
Roughage
Any Others,
specify………….

8. Any suggestions

……………………………………………………………………………………………………
……………………………………………………………………………………………………
……

DATA ANALYSIS AND INTERPRETATION

GARPHICAL REPRESENTATION
Interpretation: From the above graph it can be inferred that approx.70% of the respondents are
the main food shopper of the house hold and 30% of respondents are not the main food shoppers.
Interpretation: The above graph clearly shows that majority of the respondents are conscious
about their health, which is why they are taking special diet.
Interpretation: from the above graph we can conclude that majority of the respondents think
that information of the nutritional value of the food items is important.
Interpretation: majority of the respondents responded that information about the nutritional
attributes should be provided on the packed food items, which shows that people are becoming
conscious about the nutritional aspects and prefer only selected food items.

Interpretation: the above graph shows that, majority of respondents always read the nutritional
labels before purchasing the food items.
 FACTOR ANALYSIS

Factor Analysis

Communalities

Initial Extraction

Carbohydrates 1.000 .783

Proteins 1.000 .676

Fats 1.000 .732

Vitamins 1.000 .672

Minerals 1.000 .775

Roughage 1.000 .731

Water 1.000 .555

Extraction Method: Principal Component Analysis.

The techniques of factor analysis provide a fascinating way of reducing the number of variables
in a research problem to a smaller and more by combining related once into factor. Communality
can be defined as the proportion of variance in any one of the original variables, which is
captured by the extracted factors.
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

% of Cumulative % of Cumulative % of Cumulative

Component Total Variance % Total Variance % Total Variance %

1 2.320 33.149 33.149 2.320 33.149 33.149 2.275 32.498 32.498

2 1.377 19.671 52.820 1.377 19.671 52.820 1.403 20.048 52.546

3 1.226 17.510 70.330 1.226 17.510 70.330 1.245 17.784 70.330

4 .709 10.122 80.452

5 .616 8.794 89.247

6 .414 5.915 95.162

7 .339 4.838 100.000

The first step of interpreting the output is to look at the factors extracted, their Eigen values and
the cumulative percentage of variance. We see the cumulative percentage in the above table that
the five factors extracted together account for 70.330 of the total variance. While we lost only
29.67% of the information content (70.330% is retained by the 3factors extracted out of 7
original variables).
We take only which factors which Eigen values is more than 1.
So in this analysis we find those factors which has more than the 1 Eigen values.
Screen plot shows the factors which are above Eigen value 1, so this screen plot graph shows that
3 factors are above Eigen value 1, so on the basis of this screen plot graph we find out the 3
cumulative factors which affect my research.
 Component Matrixa

Component

1 2 3

Carbohydrates .205 -.546 .665

Proteins .797 -.196 -.051

Fats -.317 .074 .791

Vitamins .787 .204 -.106

Minerals .764 .352 .258

Roughage .174 .790 .277

Water .557 -.495 -.013

Extraction Method: Principal Component Analysis.

The second step of interpreting what are these fix factors and which. In this we see the data in
un-rotated matrix this represents each value of each factor represents the correlation. Positive
Value represents highly correlation and negative value represents the less correlation. For
reducing the errors of factor we see the result in rotated matrix.
 Rotated Component Matrixa

Component

1 2 3

carbohydrates .282 -.224 .808

Proteins .822 -.024 .000

Fats -.365 .272 .724

Vitamins .730 .321 -.191

Minerals .657 .577 .098

Roughage -.012 .855 -.020

Water .649 -.335 .145

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

For reducing the errors we see the rotated matrix which gives the accurate answers. Now we
interpret what these factors represent.

Factor-1 is the combination of two variables first is Proteins (.822), and second variable is
Vitamins (.730). So we can say that the factor-1is highly affects the consumer preference while
purchasing nutritional food items.

The second factor represents 0.855(Roughage), only one variable affects this factor so it forms
the factor-2. According to the respondents fibers are an important constituent of food items.

The third factor shows the variable 0.808(Carbohydrates) and 0.724 (Fats). These two combine
to form the third and last factor. Because carbohydrates are required to provide energy to the
body and fats are required in small amount but are necessary for maintaining a healthy body.
Q- 6.

Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared

Com Initial Eigenvalues Loadings Loadings

pone % of Cumulativ % of Cumulativ % of Cumulative

nt Total Variance e% Total Variance e% Total Variance %

1 1.988 24.851 24.851 1.988 24.851 24.851 1.595 19.943 19.943

2 1.615 20.184 45.034 1.615 20.184 45.034 1.578 19.723 39.665

3 1.202 15.031 60.065 1.202 15.031 60.065 1.415 17.690 57.355

4 1.076 13.456 73.521 1.076 13.456 73.521 1.293 16.166 73.521

5 .789 9.860 83.381

6 .524 6.545 89.926

7 .462 5.778 95.704

8 .344 4.296 100.000

Interpretation :
The first step of interpreting the output is to look at the factors extracted, their Eigen values and
the cumulative percentage of variance. We see the cumulative percentage in the above table that
the four factors extracted together account for 73.521 of the total variance. While we lost only
29.769% of the information content, 73.521% is retained by the 4 factors extracted out of 8
original variables).We take only which factors which Eigen values is more than 1.
So in this analysis we find those factors which has more than the 1 Eigen values.
 Rotated Component Matrixa

Component

1 2 3 4

nutritional value .064 -.041 .911 .014

Advertisement -.146 .087 -.127 .789

Aesthetics .831 -.092 .052 .166

reference from friends .290 -.004 .261 .662

brand name -.043 .774 .040 .406

Cognition .878 .093 -.076 -.131

Price .053 .874 .116 -.145

Taste -.136 .435 .690 .047

Interpretation:
In the first column we see that the value of the nutritional attributes namely aesthetics and
cognition have the value more than 0.7. It shows that these two factors have got the value in the
minds of the customers. So these two factors can be combined to form first factor.
In the 2nd column we see that brand name and price are the important factors for the consumers.
So they combine to form the 2nd factor.
In the 3rd column we see that nutritional value plays important role in the purchase behavior of
consumers, so it forms the 3rd factor.
In 4th column we find that advertisement also affects the purchase behavior of consumers for
food items.
FINDINGS

The findings are stated below

1. The overall interpretation shows that the respondents are aware as well as sensitive
towards the nutritional attributes of packed food items.

2. Printed information on the nutritional values has been advocated by a clear majority.

3. Although all nutrients are duly recognized, the importance of carbohydrate and proteins
have been well voted, which satisfies our first objective.

4. Consumers seem to be less attracted with the nutritional attributes like vitamins and
minerals.

5. We also found that majority of consumers are reading the nutritional labels.

6. From the analysis we came to know brand name, price, advertisement and appearance of
the products are the important factors which customers consider before purchasing that
particular product, which satisfies our second objective.

7. It was also found that consumers are well affected by the past experience and knowledge
of the food items and thus impacts their buying behavior.
RECOMMENDATIONS

The companies should realize that the consumers have become health conscious and also the
awareness level among the consumers about the food items has been increased. So the
companies should offer the products keeping in the mind the proper nutritional contents.

The packed food items must clearly indicate the detailed nutritional values as well as ingredients.

Efforts are required in the direction of providing healthy food rather than fast food.

Real fruit juices have a range of products which have been quite successful in building the
positive perception in the minds of consumers. So, the industry is expected to emulate this as an
example.
 CONCLUSION

The youth as well as general public have become aware and educated towards the need and
importance of proper nutrition. This is a healthy sign in our society.

With modernization and sophistication our lifestyle has changed. We depend on packed food
many times. Hence the corporations producing packed food items have the responsibility of
informing or educating the consumers of the included nutritional attributes as we came to
conclusion as per one of our objective that there are some nutritional attributes which impact
the consumer preference while selecting a particular food item.

This study make us realize that there are many factors which impact the buying behaviour of
consumers like brand name showing that creating a distinctive brand image in the mind of
consumers will be beneficial for the company.

Also we came to conclusion that consumers are price sensitive as price was also found as an
important factor.

Doing promotions will help the companies to get the positive points as it will create the
awareness of the food items among the consumers that is why our study showed advertisement
as important factor.
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