“CONSUMER PREFERENCE OF

SOFT DRINKS”

By

Shreya Shah

Roll No: 19220079

PU Registration No: 2019-2-22-0165

A Project Work report submitted to Pokhara University in partial fulfillment of the

requirements for the degree of

Master of Business Administration

Submitted to:

Pravat Upreti

Faculty of

Ace Institute of Management

April, 2020
 ACKNOWLEDGEMENT
This research report is an essential part of the research “Consumer preference of soft drinks”
which is one of the subjects of MBA designed by Pokhara University. I would like to express my
deepest appreciation to all those who provided the possibility to complete this report. A special
gratitude and thanks to the people who have supported me throughout the whole process.

Firstly, I would like to express our sincere gratitude towards our college, Ace Institute of
Management for providing this wonderful opportunity as a part of Business Research
Methodology assignment. This indeed has helped me gain some valuable knowledge and gain
information regarding this project. This has served us students to gain lifetime experience in the
field of study.

Secondly, I would like to express our regards to our Business Research Methodology teacher Mr.
Pravat Upreti sir who has invested his full effort in guiding the team in achieving the goal and in
the completion of the project. Also, we would like to thank them who have provided me with all
adequate information regarding this project and helped me in every possible way.

I am equally thankful to all the respondents who patiently filled the questionnaire I presented
them with utmost honesty. Also, I would thank my parents and friends who have unconditionally
supported me in the completion of the project in various way.
 TABLE OF CONTENTS
ACKNOWLEDGEMENT...........................................................................................................................ii
LIST OF TABLES.......................................................................................................................................v
EXECUTIVE SUMMARY........................................................................................................................vii
CHAPTER I................................................................................................................................................1
INTRODUCTION.......................................................................................................................................1
1.1 Background of the Study.................................................................................................................1

1.2 Problem Statement..........................................................................................................................2

1.3 Objective of the Study.....................................................................................................................2

1.4 Theoretical Framework...................................................................................................................3

1.5 Research Hypothesis........................................................................................................................4

CHAPTER II...............................................................................................................................................5
LITERATURE REVIEW............................................................................................................................5
CHAPTER III..............................................................................................................................................7
RESEARCH METHODOLOGY................................................................................................................7
3.1 Research Design and Plan:..............................................................................................................7

3.2 Sources of data:................................................................................................................................7

3.3 Sampling Design and Technique:...................................................................................................8

3.4 Data Collection Procedure:.............................................................................................................8

3.5 Data Analysis...................................................................................................................................8

3.6 Report Writing:...............................................................................................................................9

CHAPTER IV...........................................................................................................................................10
DATA ANALYSIS AND PRESENTATION...........................................................................................10
CHAPTER V.............................................................................................................................................27
FINDINGS, CONCLUSION AND RECOMMENDATIONS..................................................................27
5.1 Findings..........................................................................................................................................27

5.1.1 General findings......................................................................................................................27

5.1.2 Findings of Likert Scale Questions:.......................................................................................27
 5.1.3 Findings of Research Questions.............................................................................................28
5.2 Recommendations..........................................................................................................................29

BIBLIOGRAPHY.....................................................................................................................................30
References:...........................................................................................................................................30

APPENDIX...............................................................................................................................................31
 LIST OF TABLES
Table 1 Frequency distribution by gender
Table 2 Frequency distribution by age
Table 3 Frequency distribution by occupation
Table 4 Frequency distribution by preferred drink
Table 5 Frequency distribution by popular drink
Table 6 Frequency distribution by advertisement campaign
Table 7 Frequency distribution by frequency of consumption
Table 8 Frequency distribution by packaging
Table 9 Frequency distribution by taste and flavor
Table 10 Frequency distribution by easy availability
Table 11 Frequency distribution by brand image
Table 12 Frequency distribution by price
Table 13 Frequency distribution by advertisement
Table 14 Frequency distribution of shop offering Coca-Cola
Table 15 Frequency distribution of shop offering Pepsi
Table 16 Frequency distribution of shop offering Fanta
Table 17 Frequency distribution of shop offering Sprite
Table 18 Frequency distribution of shop offering Mountain Dew
Table 19 Frequency distribution of shop offering Slice
Descriptive Analysis of Likert Scale
Mean Analysis of Ranking factors
 EXECUTIVE SUMMARY
Cold drinks are the world’s most widely consumed drinks which are third most popular drink
overall after water and tea. It is available everywhere and to all age groups. They do not need to
wait for any festive occasions to consume cold drinks instead they consume these drinks
whenever they want they have the facility of choosing the wide range of cold drinks as per their
taste and easy access to these cold drinks from nearby shops, wholesalers, super markets etc.

The primary objective of this research is to know about the preference of various brands of cold
drinks. Basically, it is designed to know about the various factors while influencing in buying
behavior of cold drinks. This research also gives information about which brand of soft drink is
popular. In order to conduct the research, sample size of 111 respondents has been taken of three
different age groups i.e., 15 – 24, 25- 40 and 41- 59. Data was collected through quantitative
analysis and structured questionnaire method. Secondary data were also used for references such
as: website, past research reports, magazines, newspapers and books. Reliability and validity of
data was checked through cross questions to the respondents. SPSS and MS-Excel were used for
data analysis. With the help of this software, general, descriptive and correlation analysis were
conducted.

From the study of 111 samples, it was found that the majority of respondents, prefer Coca-Cola
as the most preferred soft drink. The taste of soft drink, quality, brand image and advertisements
are the most important factors influencing the consumer preference. Most respondents strongly
agree with the taste of their preferred soft drink and are satisfied with it. Thus, taste and flavor
are the most important factors influencing the consumer preference. As per the findings, Coca-
Cola is recognized and the most popular among the consumers due to its brand image and
advertisement.

Hence, conscious efforts are needed to make the other soft drinks popular by improving the
promotional strategies and revitalizing the brand image. With the growing popularity of soft
drinks, the technology of its production, preservation, transportation and or marketing has to be
improved. Once these strategies in soft drinks are achieved, popularity is likely to follow. So
these must seriously be considered by soft drink companies in order to sustain in the competitive
market and see their soft drink in preference category of the consumer with full satisfaction.
 CHAPTER I

INTRODUCTION
1.1 Background of the Study
In this modern era of time the consumption of soft drinks has become very popular especially
among the youths. Soft drinks in various flavours and tastes are frequently consumed by the
urban population at various occasions like birthdays celebrations, marriages, social get together,
farewells, college events, dinner parties etc. Children of all ages and groups are attracted by just
the mention of the word soft drinks. Cold drinks are the most widely consumed drink after water
and tea. It is made available to all the age groups and everywhere. With the growing popularity
and demand of the soft drinks; the technology for its production, preservations, transportation
and marketing in the recent years has witnessed exceptional changes. The competition for this
product is from the different other brands. Mass media, particularly the emergence of television,
has contributed to the ever growing demand for the soft drinks, the jingles, events and sport
make the large audience remember this product at all the times.
Since the beginning of the cold drink evolution was very profitable and luring, many
multinational companies launched their own brands in various countries. The New York based
Pepsi Company Inc. under which there are cold drinks like Pepsi, Mountain Dew, Slice and
Atlanta based Coca-Cola under which there are Coke, Fanta, Sprite are the main players of the
market and are in a constant battle being the strongest competitors for the bigger chunk of the
ever-growing soft drink market. Soft drink market is growing amazingly.
The Coco-Cola company is the world’s largest beverage company with a market capitalization of
$176.20 billion. The company has an extensive distribution network in 200 countries and serves
more than 1.8 billion people per day. Its infrastructure is very difficult and expensive to compete
with. Coco-Cola is a market leader with a 34% market share, by volumes, in the industry and its
competitor PepsiCo Inc. (PEP) holds 26.3% of the market sales volume-wise. PepsiCo is a world
leader in the food chain business. It consists of many companies amongst which the prominent
once are Pepsi-Cola. Frito-Lay and Pepsi Food International. The group is presently into two of
the most profitable and growing industries namely, beverages and snack foods. It has scores of
big brands available in nearly 150 countries across the globe. The group has established for itself
once of the strongest brands in various segments of its operations. The beverage industry’s sales
are affected by seasonal changes. These companies have been battling each other for more than a
century. It’s a legendary brand rivalry.
Today, almost all the strata of Nepalese society have started consuming cold drinks. They do not
need to wait for any festive occasion to consume cold drinks in state they consume these drinks
whenever they want. They have the facility of choosing the wide range of cold drinks as per their

1
taste and available financial resource. They have easy to these cold drinks from nearby shops,
whole sealers, supermarkets etc.
1.2 Problem Statement
Consumer’s perception widely varies in accordance with the quality; advertisements, taste, price
and brand image. People think that their enjoyment of a product is based on the qualities of the
product, but their experience of it is also very much based on the product’s marketing. But
although consumers are unaware of it, when they run cool wine over their tongue, they don’t just
taste its chemical composition, they taste its price and many other aspects of the drink that do not
register on tongue. The effect has been dramatically demonstrated in the soft drink wars, with the
regard to brand.
In Nepal, there are many cold drinks available. There is competition among different brands of
cold drinks. So, one has to come with various strategies in order to gain better market share, and
it is much harder to retain the existing customers than to get a new one. Many have different
taste, nature, preferences. Some choose to buy a certain cold drinks because of its brands.
Thus, finding out the consumer preference of soft drinks with the regard to taste, quality, price,
brand image and advertisements provide critical insights into the key soft drink business. So,
knowing the right medium to promote cold drinks will ensure better image among the consumer.
Customer conversations provide a fact or the reason for the brand positioning or the success of
particular brand.

1.3 Objective of the Study

The purpose of this research was to study the customers’ preference of the soft drinks. The survey aimed
to study the perception of the particular customers. The major objectives of the research were as follows:

 Based on the problem statement, this survey aimed to study the perception of the
particular customers. The major objectives of the research study are as follows:
 To analyze the group of respondent who use different brand of cold drinks according to
their age group based different criteria.
 To determine the most and least preferred soft drink in terms of gender, age group and
the working status.
 To understand consumer’s behavior, satisfaction level, the frequency of the selection of
preferred soft drink.
 To perform hypothesis testing and find out statistical significance of each research
questions.

2
1.4 Theoretical Framework
From the literature review conducted and the informal pilot study done before the research, the
independent variables affecting the customer’s preference of the soft drink were found to be
product attributes and demographics factors. The product attributes referred to the features
associated with those particular cold drinks in terms of its price, taste, availability, quality and
brand the demographic factors refer to gender, age, occupation and literacy level. The price
factors refer to pricing attributes relate to the goodwill, the associations of this brand in the
minds of their consumer. Brand image is consumer’s perception about a brand as reflected by the
brand associations. Brand knowledge is the awareness of the brand name and belief about the
brand image.

Independent Variables Dependent Variables

- Taste and flavor
- Price
- Packaging
- Quality Customer Preferences
- Advertisement
- Brand image

Moderating Variables
(Demographic Variables)
- Age
- Gender
- Education level
- Working status

Fig 1: Theoretical framework for study of Brand Preference of Soft Drinks

3
1.5 Research Hypothesis

To meet the objectives of this study, following hypothesis has been tested:

1. Null Hypothesis (H0): There is no significant relationship between taste and preference
of soft drinks.
Alternative Hypothesis (H1): There is significant relationship between taste and
preference of soft drinks.

2. Null Hypothesis (H0): There is no significant relationship between availability of

preferred soft drink and preference of the soft drinks
Alternative Hypothesis (H1): There is significant relationship between availability of
preferred soft drink and preference of the soft drinks

3. Null Hypothesis (H0): There is no significant relationship between brand image and
preference of the soft drink
Alternative Hypothesis (H1): There is significant relationship between brand image and
preference of the soft drink

4. Null Hypothesis (H0): There is no significant relationship between advertisement and

preference of the soft drinks
Alternative Hypothesis (H1): There is significant relationship between advertisement
and preference of the soft drinks

5. Null Hypothesis (H0): There is no significant relationship between easy accessibility and
preference of the soft drinks
Alternative Hypothesis (H1): There is significant relationship between easy accessibility
and preference of the soft drinks

4
 CHAPTER II

LITERATURE REVIEW

William R. George (1999) reveals purpose of study of factors responsible for brand preference in
cold drink industry, increasing competition more, due to globalization is motivating many
companies to base their strategies almost entirely on building brands. Brand preference means to
compare the different brands. This brand preference is influenced by various factors. In the
identification of factors affecting the brands preference, it was concluded that brand persona is
the most effective factor that affect the brand preference. The brand persona deals with the
personality aspects or the external attributes brands, thus it can be said that the consumer prefer
any brand by looking at the external attribute of a brand.
Stephen Daniells (2008) said these four factors were identified for the formulation: four colour
intensities, three flavouring, and two level types (soft versus hard), and one pack sizes (standard
versus oversize). By using both quantitative (hedonic testing) and qualitative (focus groups)
approaches, the researchers found that “the main factors which drive consumer preference for
this concept are concept are colour intensity and flavouring”.
Indeed, colour intensity account for 43% and flavour 32% for the consumers’ overall liking,
“Pack size and level type is taken into account by the consumer to a lesser extent”, they added.
This methodology of a qualitative screening associated to a conjoint analysis on relevant sensory
attributes as shown good performance to fit consumers’ expectation: it has now to be reproduced,
as every brand, concept and product is a unique combination designed for a specific consumer
group”, concluded the researchers.
William, O., (1985) in his study on “The Economic Institution of Capitalism in New York:
Territorial Exclusively in the Soft Drinks Industry” concluded that the vertically integrated firm
will not have the necessary incentives 10 minimize costs. If specific assets exist, then the costs of
using the external marked rise and vertical integration becomes more likely. If we also allow for
the market’s ability to fully, exploit economics of scale by agg regaling demands, then a higher
degree of asset specificity is necessary before vertical integration occurs, as the market has a
considerable advantage in achieving tower costs.
Lawrance (1984) in his study on “Effective publicity how to reach the public people” concluded
that as Coco-cola occupied that the major soft drinks market position. Consumer mind would
obviously tilt towards Coco-cola so by correct product positioning in the market 7-up could
differentiate it from other Coco-cola brands and could sell more. 7-up did so positioning itself as
an alternative to Coca-Cola. They suggested that most of the rural area people would buy coco-
cola may be disappointed and it offered Pepsi consumers have strong brand preference for fast
moving products power of relations.

5
Singh (1989) in his book “Marketing and consumer behavior” stated that consumer behavior had
always a scope for research studies, because the attitudes and perceptions of consumer were
changing with the passage of time. Such type of consumer research would enable the
manufacturers, distributors and dealers to formulate effective sales and advertising strategies.
The marketing plans must be based on identifying and anticipating the consumer needs and their
changing desire and aspirations. The manufacturers endeavors should attract the public by
offering what they liked the most, but also should have their patronage by meeting their
satisfaction on a continuous basis.
White (1989) in his study on “Product differentiation and mergers in the carbonated soft drink
industry” concluded that the price implication and welfare losses are even more substantial for
the merger of Pepsi co and 7up and especially, for the hypothetical merger of Coco-cola Co and
Pepsi Co. One might expect consumers to “Stock-up” during sales periods, purchasing large
assortments of items while they are perceived to be experienced with certain goods, they may
begin to vary their purchase assortment to seek variety. On the supply side, the study of
equilibrium pricing could be extended to include the timing of short-run price cuts and
subsequently, the impact of merger on these types of consumer driven promotions.
According to this finding brand loyalty is differentiated from consumer behaviour like sticking to
a particular brand and waiting for the favourable brand. As a matter of fact, brand loyalty itself is
an outcome of both stacking up to a particular brand and iteration to wait for that in case of
unavailability along with the positive attitude towards the same brand. The old research in
similar topic shows that the preference of cold drinks is not influenced by a single variable but
there are many direct and indirect variables which influences a lot while purchasing soft drinks.

6
 CHAPTER III

RESEARCH METHODOLOGY

Cold drinks are the world’s most widely consumed drinks which are third most popular drink
overall after water and tea. It is available everywhere and to all age groups. The main of this
study is to find out the brand preference of customer and their satisfaction of soft drinks.
3.1 Research Design and Plan:
The research focused on understanding the consumers’ preference of their respective soft drinks
and how different factors like age, gender and working status influenced the customers’
preference of the soft drink and their satisfaction level. Therefore, this is an applied and
quantitative research.
This research is an applied research because existing theories and concepts are applied to address
the giver problem statement.
This research is also a quantitative research because questionnaires were used and the responses
were entered in SPSS software for statistical analysis.
3.2 Sources of data:
This research is composed of two major parts: results and literature review for which primary
data and secondary data was used respectively. However, the major source of data used for this
research was primary.
Primary Data:
For results, primary source like questionnaire was used since it has better explained the current
status of the objectives of the study. This primary data was collected through the distribution of
the structured questionnaires.
Secondary data:
For literature review, secondary sources like previous reports on similar study, past thesis,
internet, articles and journals were used for the collection of information. The secondary data
were thus compared with the present data to study the subject comparatively.
Questionnaire Design:
The questionnaires were the main tool in this study. Self-administered questionnaire was used for
securing the response on the study. The questionnaires consisted of fifteen structured questions
which included classification question, single response, multiple response, ranking and likert
scale question.

7
The measurement scale of study related questions like factors affecting both the preference and
satisfaction of customers were in nominal and in ordinal scale. It has covered single choice, likert
scale ranging from strongly disagree to strongly agree and ranking questions.
Similarly, respondents gender, age-group, working status were also asked. The measurement
scale of such classification questions were in nominal and age in ordinal scale.

3.3 Sampling Design and Technique:

Population:
The population for this research study was the customers of soft drinks. The study covered
respondents from different age group (above 15). The study included respondents from the
Kathmandu valley.
Questionnaires were systematically distributed utilizing a non-probability convenience sampling.
Convenience sampling will be appropriate for this research because this technique is the best and
easiest way to reach the respondents.

Sample size:
For this study, the major variable was age group. So, the total sample size was 111. This sample
was logically assumed to be a sample representing the whole population of customers drinking
soft drinks.
3.4 Data Collection Procedure:
Both primary and secondary sources will be used to collect the data for analyzing the research
study. Primary data will be collected through the distribution of a structured questionnaire to a
sample of 111 consisting of colleagues, students, employees, friends and family. Whereas
secondary data is extracted from various sources like internet, newspaper, books, journals,
articles and past research.
Theoretical framework will be used to design the questionnaire to translate the concepts. The
questionnaire design will be simple, clear and understandable which also covers the conceptual
model that will be used for this research. The major question types are Yes/No question, single
response, multiple response and most importantly Likert Scale.
3.5 Data Analysis
For this study SPSS 20 and MS-Excel were used for the analysis. With the help of these
software, the data were collected from the sources were classified, tabulated and analysed using
statistical tools like mean, median, variance and others according to the needs of the research.
This is an exploratory research where convenience sampling technique was used to collect the
samples.

8
3.6 Report Writing:
After the completion of data analysis, draft copy will be submitted after getting the feedback and
comments, final copy will be submitted.

9
 CHAPTER IV

DATA ANALYSIS AND PRESENTATION

4.1 Analysis
In this chapter, analysis is done from the data collected from 111 respondents. Data analysis was
done with the help of SPSS version 20 software.
4.2 Univariate data analysis
4.2.1 Frequency distribution by gender
Table 1: Frequency distribution by gender
Gende Frequenc Percen
r y t
Male 50 45.0
Female 61 55.0
Total 111 100.0
Among the total number of respondents, 45% are male respondents and 55% are female
respondents.

4.2.2 Frequency distribution by age

Table 2: Frequency distribution by age

Age Frequency Percent

15-24 64 57.7
25-40 39 35.1
41-59 8 7.2
Total 111 100.0

Among the total number of respondents, the table shows that 57.7% belong to age 15-24 age
group, 35.1% belongs to 25-40 age groups and 7.2% belongs to 41-59 age group.

10
4.2.3 Frequency distribution by occupation
Table 3: Frequency distribution by occupation

Occupation Frequency Percent

Student 64 57.7
Salaried 21 18.9
Housewife 2 1.8
Self-employed 12 10.8

Service 12 10.8
Total 111 100.0

The table shows that out of 100% respondents, 57.7% are students, 18.9% are salaried, 1.8% are
Housewife, 10.8% are Self-employed and 10.8% are indulged in Service.

4.2.4 Frequency distribution by preferred drink

Table 4: Frequency distribution by preferred drink

Soft Drink Frequency Percent

Cola-Cola 38 34.2
Pepsi 9 8.1

Fanta 10 9.0

Sprite 20 18.0
Mountain 13 11.7
Dew
Slice 21 18.9
Total 111 100.0

Among the total 100% respondents, the table shows that 34.2% prefer Coca-Cola, 8.1% prefer
Pepsi, 9.0% prefer Fanta, 18.0% prefer Sprite, 11.7% prefer Mountain Dew, 18.9% prefer Slice.
Hence, most of the respondents prefer Coca-Cola.

11
4.2.5 Frequency distribution by popular drink
Table 5: Frequency distribution by popular drink

Soft drink Frequency Percent

Coca-Cola 74 66.7

Pepsi 17 15.3
Fanta 2 1.8
Sprite 5 4.5
Mountain Dew 11 9.9

Slice 2 1.8
Total 111 100.0

Among the total number of respondents, the above table shows that 66.7% of respondents
consider Coca-Cola the most popular one, 15.3% consider Pepsi, 1.8% consider Fanta, 4.5%
consider Sprite, 9.9% consider Mountain Dew and 1.8% consider Slice. Hence, the most popular
drink is Coca-Cola.
4.2.6 Frequency distribution by advertisement campaign
Table 6: Frequency distribution by advertisement campaign

Soft Drink Frequency Percent

Always Coca-Cola 48 43.2
Pepsi celebrity campaign 18 16.2

Fanta 7 6.3
Sprite 8 7.2
Mountain Dew 20 18.0
Slice 10 9.0
Total 111 100.0

Among the total number of respondents, the table shows that 43.2% of respondents prefer
advertisement campaign of Coca-Cola, 16.2% prefer advertisement campaign of Pepsi, 6.3%
prefer advertisement campaign of Fanta, 7.2% prefer advertisement campaign of Sprite, 18.0%

12
prefer advertisement campaign of Mountain Dew and 9.2% prefer advertisement campaign of
Slice. However, advertisement campaign of Coca-Cola.

4.2.7 Frequency distribution by frequency of consumption

Consumptio
n Frequency Percent
Everyday 3 2.7
2-6 times a 24 21.6
week
Every other 23 20.7
week
Once a month 15 13.5

Only for 46 41.4

certain
occasions
Total 111 100.0

Table 7: Distribution by frequency of consumption

The figure shows that out of 100% respondents, 2.7% consume soft drink every day, 21.6%
consume soft drink 2-6 times a week, 20.7% consume soft drink every other week, 13.5%
consume soft drink once a month, 41.4% consume soft drink only for certain occasions.
4.2.8 Frequency distribution by packaging

Packaging Frequency Percent

Plastic Bottle 35 31.5
Metal Can 34 30.6
Glass Bottle 35 31.5
Tetra Pack 7 6.3
Total 111 100.0

Table 8: Distribution by packaging

Among the total number of respondents, the 31.5% of respondents prefer plastic bottle as
packaging, 30.6% prefer metal can as the packaging, 31.5% prefer glass bottle as packaging,

13
6.3% prefer tetra pack as packaging. Hence, most preferred packaging for soft drink id plastic
bottle.

4.2.9 Frequency distribution by factors influencing choice of soft drink

Table 9: Frequency distribution by taste and flavor

Factor: Taste and Flavor Frequency Percent

Yes 105 94.6

No 6 5.4

Total 111 100.0

Only 94.6% of respondents consider taste and flavor as factor influencing choice of soft drink.
Table 10: Frequency distribution by easy availability

Factor: Easy Availability Frequency Percent

Yes 86 77.5
No 25 22.5
Total 111 100.0

Only 77.5% of respondents consider easy availability as factor influencing choice of soft drink

Table 11: Frequency distribution by brand image

Factor: Brand Image Frequency Percent

Yes 52 46.8
No 59 53.2
Total 111 100.0

Only 46.8% of respondents consider brand image as factor influencing choice of soft drink

14
Table 12: Frequency distribution by price

Factor: Price Frequency Percent

Yes 72 64.9
No 39 35.1
Total 111 100.0

Only 64.9% of respondents consider price as factor influencing choice of soft drink.
Table 13: Frequency distribution by advertisement

Factor: Advertisement Frequency Percent

Yes 50 45.0
No 61 55.0
Total 111 100.0

Only 45% of respondents consider advertisement as factor influencing choice of soft drink.
Table 14: Frequency distribution of shop offering Coca-Cola

Coca-Cola Frequency Percent

Yes 101 91.0
No 10 9.0
Total 111 100.0

Table 15: Frequency distribution of shop offering Pepsi

Frequenc
Pepsi y Percent
Yes 85 76.6
No 26 23.4
Total 111 100.0

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Table 16: Frequency distribution of shop offering Fanta
Fant Frequenc Percen
a y t
Yes 82 73.9
No 29 26.1

Total 111 100.0

Table 17: Frequency distribution of shop offering Sprite

Sprit Frequenc Percen
e y t
Yes 97 87.4

No 14 12.6
Total 111 100.0

Table 18: Frequency distribution of shop offering Mountain Dew

Mountai Frequenc Percen
n Dew y t
Yes 78 70.3

No 33 29.7

Total 111 100.0

Table 19: Frequency distribution of shop offering Slice

Slice Frequency Percent

Yes 64 57.7

No 47 42.3

Total 111 100.0

From the multiple choice multiple response analysis for the soft drinks that local shop offers,
with the help of analysis from the above tables, we can see that Coca-Cola is the most available
drink in the local shops.

16
4.3 Descriptive Analysis of Likert scale
Table 20: Descriptive Analysis of Likert scale

Maximu
Factors N Minimum m Mean Std. Deviation
Satisfaction 111 1.00 5.00 4.2883 0.66589
with taste
Does not make 111 1.00 5.00 3.1622 1.12444
difference if
the preferred
soft drink is
not available
Satisfaction 111 1.00 5.00 3.9009 0.72557
with the brand
image
Satisfaction 111 1.00 5.00 3.7658 1.07834
with
Advertisement
s
Satisfaction 111 1.00 5.00 3.9279 1.10956
with Easy
accessibility

The table shows that consumer satisfaction regarding several factors of soft drink on the scale of
1 to 5 i.e. 1 – Strongly Disagree, 2 – Disagree, 3 – Neutral, 4 – Agree, 5 - Strongly Agree.
When asked about satisfaction with the taste of their preferred soft drink, the mean measure
came to be 4.2883 which shows that most respondents strongly agree and are satisfied with the
taste of their preferred soft drink.

When asked about if it doesn’t make difference when preferred drink is unavailable, the mean
measure came to 3.1622 which show that most respondent disagree.

When asked about the satisfaction with the brand image of their preferred soft drink, the mean
measure came to be 3.9009 which show that most respondents agree and are satisfied with the
brand image of their preferred soft drink.

17
When asked about the satisfaction with advertisements of their preferred soft drink, the mean
measure came to be 3.7658 which show that most respondents agree and satisfied with
advertisement of their preferred soft drink.

When asked about the satisfied with easy availability of their preferred soft drinks, the mean
measure came to be 3.9279 which show most respondents agree and satisfied with easy
availability of their preferred soft drink.

4.4 Ranking
4.4.1 Mean Analysis: Ranking of factors influencing preference of soft drink
Table 21: Mean Analysis of Ranking factors
Std.
Maximu Deviatio
Factors N Minimum m Mean n
Rank of Taste 111 1.00 4.00 1.6306 0.91381
Rank of 111 1.00 6.00 3.9910 1.02243
Brand Image
Rank of Price 111 1.00 6.00 2.9189 1.01027
Rank of 111 2.00 6.00 4.8829 1.12604
Advertisemen
ts
Rank of 111 1.00 6.00 2.1441 1.14294
Quality
Rank of 111 3.00 6.00 5.4144 0.73198
Packaging

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 Std.
Minimu Maximu Deviati
Factors N m m Mean on
Rank of 111 1.00 4.00 1.630 .91381
Taste 6
Rank of 111 1.00 6.00 3.991 1.02243
Brand 0
Image
Rank of 111 1.00 6.00 2.918 1.01027
Price 9
Rank of 111 2.00 6.00 4.882 1.12604
Advertiseme 9
nts
Rank of 111 1.00 6.00 2.144 1.14294
Quality 1
Rank of 111 3.00 6.00 5.414 .73198
Packaging 4
Combination 111 3.17 3.50 3.497 .03164
(rank, brand 0
image, price,
advertiseme
nts, quality
and
packaging)

The table shows the mean ranking of the factors influencing preference of soft drink. Here,
packaging and advertisements rank first and second factor respectively. Likewise, taste of soft
drink ranks as the last factor with the mean 1.6306 out of 6.

Frequency table of ranking of the factors according to the preference of the consumers.
Frequenc Percen
Taste y t
1 66 59.5
2 28 25.2
3 9 8.1
4 8 7.2

19
 Total 111 100.0

59.5% of respondents rank taste as their first preference while ranking the factors like taste,
brand image, price, advertisements, quality, packaging according to their references.

Brand Frequenc Percen

Image y t
1 2 1.8
2 7 6.3
3 16 14.4
4 60 54.1
5 17 15.3
6 9 8.1
Total 111 100.0

54.1% of the respondents rank brand image as their fourth preferences while ranking the factors
like taste, brand image, price, advertisements, quality, packaging according to their references.
Frequenc
Price y Percent
1 6 5.4
2 29 26.1
3 54 48.6
4 16 14.4
5 2 1.8
6 4 3.6
Total 111 100.0

48.6% of the respondents rank price of the soft drink as their third preference while ranking the
factors like taste, brand image, price, advertisements, quality, packaging according to their
references.

Advertisemen Frequenc Percen

ts y t
2 6 5.4
3 10 9.0
4 11 9.9
5 48 43.2
6 36 32.4
Total 111 100.0
20
43.2% of the respondents rank advertisements of the soft drink as their fifth preference while
ranking the factors like taste, brand image, price, advertisements, quality, packaging according to
their references.

Qualit Frequenc Percen

y y t
1 37 33.3
2 41 36.9
3 20 18.0
4 7 6.3
5 5 4.5
6 1 .9
Total 111 100.0

36.9% of the respondents rank quality of the soft drink as their second preference while ranking
the factors like taste, brand image, price, advertisements, quality, packaging according to their
references.

Packagin Frequenc Percen

g y t
3 2 1.8
4 10 9.0
5 39 35.1
6 60 54.1
Total 111 100.0

54.1% of the respondents rank packaging of the soft drink as their sixth preference while ranking
the factors like taste, brand image, price, advertisements, quality, packaging according to their
references.

21
4.5 Bivariate Analysis and Hypothesis Testing
 Statements Satisfie Does Satisfi Advertiseme Easy Usuall Purchas
d with not es with nts are accessibili y buy e soft
the make the attractive ty soft drinks
taste differen brand drinks whenev
ce if the image near er need
preferre to instantl
d soft reside y
drink is nt
not
availabl
e
Satisfied 1 .071 0.380** 0.108 -0.009 0.125 0.067
with the taste   0.462 0.000 0.261 0.929 0.192 0.484
111 111 111 111 111 111 111
Does not 0.071 1 0.142 -0.073 -0.049 0.229* 0.042
make 0.462   0.136 0.444 0.611 0.016 0.663
difference if 111 111 111 111 111 111 111
the preferred
soft drink is
not available
Satisfies 0.380** 0.142 1 0.586** 0.319** -0.088 0.070
with the 0.000 0.136   0.000 0.001 0.360 0.463
brand image 111 111 111 111 111 111 111
Advertiseme 0.108 -0.073 0.586** 1 0.563** -0.065 0.128
nts are 0.261 0.444 0.000   0.000 0.495 0.181
attractive 111 111 111 111 111 111 111
Easy -0.009 -0.049 0.319** 0.563** 1 -0.118 0.141
accessibility 0.929 0.611 0.001 0.000   0.219 0.139
111 111 111 111 111 111 111
Usually buy 0.125 0.229* -0.088 -0.065 -0.118 1 0.228*
soft drinks 0.192 0.016 0.360 0.495 0.219   0.016
near to 111 111 111 111 111 111 111
resident
Purchase soft 0.067 0.042 0.070 0.128 0.141 0.228* 1
drinks 0.484 0.663 0.463 0.181 0.139 0.016  
whenever 111 111 111 111 111 111 111
need

22
 instantly
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Correlation analysis:

23
Correlation and Relationship
Satisfaction with taste and customer preference of usually buying soft drinks near to the
resident:
There is positive correlation between taste and customer preference of usually buying soft drinks
near to resident i.e., 0.125 and since, the p-value (0.484)> α (0.05), null hypothesis is not
rejected. Thus, there is no significant relationship between taste and customer preference of
usually buying soft drinks near to the resident.
Satisfaction with unavailability of soft drinks when ordered and customer preference of
usually buying soft drinks near to the resident:
There is positive correlation between unavailability of soft drinks and customer preference of
usually buying soft drinks near to resident i.e., 0.229 and since, the p-value (0.016) < α (0.05),
null hypothesis is rejected. Thus, there is significant relationship between unavailability of soft
drinks when ordered and customer preference of usually buying soft drinks near to the resident.
Satisfaction with brand image and customer preference of usually buying soft drinks near
to the resident:
There is negative correlation between brand image and customer preference of usually buying
soft drinks near to resident i.e., (-0.88) and since, the p-value (0.360) > α (0.05), null hypothesis
is not rejected. Thus, there is no significant relationship between brand image and customer
preference of usually buying soft drinks near to the resident.
Satisfaction with advertisements and customer preference of usually buying soft drinks
near to the resident:
There is negative correlation between advertisements and customer preference of usually buying
soft drinks near to resident i.e., (-0.65) and since, the p-value (0.495) > α (0.05), null hypothesis
is not rejected. Thus, there is no significant relationship between advertisements and customer
preference of usually buying soft drinks near to the resident.
Satisfaction with easy accessibility and customer preference of usually buying soft drinks
near to the resident:
There is negative correlation between easy accessibility and customer preference of usually
buying soft drinks near to resident i.e., (-0.118) and since, the p-value (0.219) > α (0.05), null
hypothesis is not rejected. Thus, there is no significant relationship between easy accessibility
and customer preference of usually buying soft drinks near to the resident.
Satisfaction with taste and customer preference of purchasing of soft drinks whenever
needed instantly:
There is positive correlation between taste and customer preference of purchasing of soft drinks
whenever needed instantly i.e., 0.67 and since, the p-value (0.484) > α (0.05), null hypothesis is
not rejected. Thus, there is no significant relationship between taste and customer preference of
purchasing of soft drinks whenever needed instantly.

24
Satisfaction with unavailability of soft drinks when ordered and customer preference of
purchasing of soft drinks whenever needed instantly:
There is positive correlation between unavailability of soft drinks when ordered and customer
preference of purchasing of soft drinks whenever needed instantly i.e., 0.42 and since, the p-
value (0.663) > α (0.05), null hypothesis is not rejected. Thus, there is no significant relationship
between unavailability of soft drinks when ordered and customer preference of purchasing of
soft drinks whenever needed instantly.
Satisfaction with brand image and customer preference of purchasing of soft drinks
whenever needed instantly:
There is positive correlation between brand image and customer preference of purchasing of soft
drinks whenever needed instantly i.e., 0.70 and since, the p-value (0.463) > α (0.05), null
hypothesis is not rejected. Thus, there is no significant relationship between brand image and
customer preference of purchasing of soft drinks whenever needed instantly.
Satisfaction with advertisements and customer preference of purchasing of soft drinks
whenever needed instantly:
There is positive correlation between advertisements and customer preference of purchasing of
soft drinks whenever needed instantly i.e., 0.128 and since, the p-value (0.181) > α (0.05), null
hypothesis is not rejected. Thus, there is no significant relationship between advertisements and
customer preference of purchasing of soft drinks whenever needed instantly.
Satisfaction with advertisements and customer preference of purchasing of soft drinks
whenever needed instantly:
There is positive correlation between advertisements and customer preference of purchasing of
soft drinks whenever needed instantly i.e., 0.128 and since, the p-value (0.181) > α (0.05), null
hypothesis is not rejected. Thus, there is no significant relationship between advertisements and
customer preference of purchasing of soft drinks whenever needed instantly.
Satisfaction with easy accessibility and customer preference of purchasing of soft drinks
whenever needed instantly:
There is positive correlation between easy accessibility and customer preference of purchasing of
soft drinks whenever needed instantly i.e., 0.141 and since, the p-value (0.139) > α (0.05), null
hypothesis is not rejected. Thus, there is no significant relationship between easy accessibility
and customer preference of purchasing of soft drinks whenever needed instantly.

25
 Correlations
  Satisfie Does not Satisfie Advertis Easy Preferenc
d with make d with ements accessibi e towards
the differenc the are lity Soft drink
taste e if the brand attractiv
preferre image e
d soft
drink is
not
available
Satisfied with the taste 1 0.071 0.380** 0.108 -0.009 0.117
  0.462 0.000 0.261 0.929 0.220
111 111 111 111 111 111
Does not make 0.071 1 0.142 -0.073 -0.049 0.157
difference if the 0.462   0.136 0.444 0.611 0.100
preferred soft drink is 111 111 111 111 111 111
not available
Satisfies with the brand 0.380** 0.142 1 0.586** 0.319** 0.002
image 0.000 0.136   0.000 0.001 0.985
111 111 111 111 111 111
Advertisements are 0.108 -0.073 0.586** 1 0.563** 0.055
attractive 0.261 0.444 0.000   0.000 0.565
111 111 111 111 111 111
Easy accessibility -0.009 -0.049 0.319** 0.563** 1 0.036
0.929 0.611 0.001 0.000   0.709
111 111 111 111 111 111
Preference towards 0.117 0.157 0.002 0.055 0.036 1
Soft drink 0.220 0.100 0.985 0.565 0.709  
111 111 111 111 111 111
**. Correlation is significant at the 0.01 level (2-tailed).

Satisfaction with taste and customer preference of the soft drink:

There is positive correlation between satisfaction with the taste and customer preference soft
drinks i.e., 0.117 and since, the p-value (0.220)> α (0.01), null hypothesis is not rejected. Thus,
there is no significant relationship between taste and customer preference of soft drink.
Satisfaction with unavailability of soft drinks when ordered and customer preference of the
soft drink:
There is positive correlation between unavailability of soft drinks when ordered and customer
preference soft drinks i.e., 0.157 and since, the p-value (0.1)> α (0.01), null hypothesis is not
rejected. Thus, there is no significant relationship between unavailability of soft drinks when
ordered and customer preference soft drinks.

26
Satisfaction with satisfaction with the brand image and customer preference of the soft
drink:
There is positive correlation between satisfaction with the brand image and customer preference
of the soft drink i.e., 0.002 and since, the p-value (0.985)> α (0.01), null hypothesis is not
rejected. Thus, there is no significant relationship between satisfaction with the brand image and
customer preference of the soft drink.
Satisfaction with satisfaction with the advertisements and customer preference of the soft
drink:
There is positive correlation between satisfaction with advertisements and customer preference
of the soft drink i.e., 0.055 and since, the p-value (0.565)> α (0.01), null hypothesis is not
rejected. Thus, there is no significant relationship between satisfaction with the advertisements
and customer preference of the soft drink.
Satisfaction with satisfaction with easy accessibility and customer preference of the soft
drink:
There is positive correlation between satisfaction with advertisements and customer preference
of the soft drink i.e., 0.036 and since, the p-value (0.709)> α (0.01), null hypothesis is not
rejected. Thus, there is no significant relationship between satisfaction with the advertisements
and customer preference of the soft drink.

27
 CHAPTER V

FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Findings
The findings are listed under general findings and findings of research questions.
5.1.1 General findings
The general findings of the study are as follows:
 Majority of respondents prefer Coca-Cola as he soft drink i.e., 34.2%.
 66.67% of respondents consider Coca-Cola the most popular one. Hence, most popular
drink is Coca-Cola.
 43.2% of respondents prefer advertisement campaign of Coca-Cola.
 The taste of the soft drink ranks as the first factor with 59.5%. Likewise, quality and price
of the soft drink are second and third factors respectively. Packaging has played the least
role in consumer preference of soft drinks.
 Among the three age groups, age group 15-24 has the highest percentage of respondents
and that is 57.7% and are satisfied.
 Among the two genders, percentage of female is greater than that of male i.e., 55% and
45% respectively.
 Out of 111 respondents, 31.5% of the respondents preferred both plastic and glass bottles.
 Respondents ranked packaging and advertisements factors as the first and the second
preferences with the means of 5.4144 and 4.8829 respectively.

5.1.2 Findings of Likert Scale Questions:

In Likert scale questions, students were asked to rate several factors that influence the preference
of soft drink on the scale of 1-5 i.e., 1-Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-
Strongly Agree. The major findings were as follows:
When asked about the satisfaction with the taste of their preferred soft drink, the mean measure
came to be 4.2833 which show that the most respondents strongly agree and are satisfied with
the taste of their preferred soft drink.
When asked about the satisfaction with the unavailability of customer preferred soft drink when
ordered, the mean measure came to be 3.1622 which show that the most respondents agree and
are satisfied with the taste of their preferred soft drink.

28
When asked about the satisfaction with the brand image of their preferred soft drink, the mean
measure came to be 3.9009 which show that the most respondents strongly agree and are
satisfied with the brand image of their preferred soft drink.
When asked about the satisfaction with the advertisements of their preferred soft drink, the mean
measure came to be 3.7658 which show that the most respondents strongly agree and are
satisfied with the advertisements of their preferred soft drink.
When asked about the satisfaction with the easy accessibility of their preferred soft drink, the
mean measure came to be 3.7658 which show that the most respondents strongly agree and are
satisfied with the easy accessibility of their preferred soft drink.

5.1.3 Findings of Research Questions

All the questions have been well addressed by this report. The findings are listed accordingly
below:
1) It was found that there is no significant relationship between satisfaction with the taste
and customer preference of usually buying soft drinks near to the resident.
2) It was found that there is significant relationship between unavailability of preferred soft
drink when ordered and customer preference of usually buying soft drinks near to the
resident.
3) It was found that there is no significant relationship between brand image of preferred
soft drink and customer preference of usually buying soft drinks near to the resident.
4) It was found that there is no significant relationship between advertisements of preferred
soft drink and customer preference of usually buying soft drinks near to the resident.
5) It was found that there is no significant relationship between easy accessibility of
preferred soft drink and customer preference of usually buying soft drinks near to the
resident.
6) It was found that there is no significant relationship between taste and customer
preference of purchasing of soft drinks whenever needed instantly.
7) It was found that there is no significant relationship between unavailability of soft drinks
when ordered and customer preference of purchasing of soft drinks whenever needed
instantly.
8) It was found that there is no significant relationship between brand image of preferred
soft drink and customer preference of purchasing of soft drinks whenever needed
instantly.
9) It was found that there is no significant relationship between advertisements of preferred
soft drink and customer preference of purchasing of soft drinks whenever needed
instantly.
10) It was found that there is no significant relationship between easy accessibility of
preferred soft drink and customer preference of purchasing of soft drinks whenever
needed instantly.

29
5.2 Recommendations
According to the findings, Coca-Cola is the most preferred, recognized and popular brand among
the consumers due to its brand image and advertisements. Hence, conscious effort is needed to
make the other soft drinks popular by improving the promotion strategies and revitalizing the
brand image. With the growing popularity of soft drinks, the technology of its production,
preservation, transportation and or marketing has to be improved. Once these strategies in soft
drinks are achieved, popularity is likely to follow. So these must seriously be considered by soft
drinks companies in order to beat the competition and see their soft drink in preference category
of the consumer with full satisfaction.

30
 BIBLIOGRAPHY

References:
 Zikmund, W. (2007), Business Research Methodology. Thomson Southwestern. (Megan,
2011)
 Joshi P.R (2002), Research Methodology 2nd edition, Buddha Academic Enterprises PVT.
LTD. Kathmandu.
 William, O., “The Economic Institution of Capitalism New York: Territorial Exclusively
in the Soft Drinks Industry”, Free Press 1985.
 Lawrance, “Effective Publicity How to Reach the Public People”, P.42 (1984).
 White, “Product Differentiation and Mergers in the Carbonated Soft Drink Industry”,
Journal of Economic of Strategy, Vol.14, No.4, 1989, pp.879-904.
 Raghbir Singh, Marketing and Consumer Behavior, Deep & Deep Publication, New
Delhi, 1989.

31
 APPENDIX

SURVEY ON CONSUMER PREFERENCE OF SOFT DRINKS.

My name is Shreya Shah. I am studying MBA (trimester 3) at ACE Institute of Management.

This survey is created in order to help me know regarding consumer preference of Soft Drinks.
The questions asked is your personal opinion about your preference between Soft Drinks.

I would deeply appreciate if you would take two minutes of your precious time to complete this
short questionnaire.

Please tick one √ for each criteria group

Q No. 1) Gender Q No.2) Age Group Q No.3) Education Level Q No.4) Occupation
1. Male 1. 15-24 1. Masters 1. Student
2. Female 2. 25-40 2. Bachelor 2. Salaried
3. 41-59 3. +2 3. Housewife
4. SLC 4. Self-employed
5. Service
6. Others

Q No.5) Which soft drink do you prefer more? (Select one appropriate option)
1) Coca-Cola
2) Pepsi
3) Fanta
4) Sprite
5) Mountain Dew
6) Slice

Q No.6) Which one do you consider to be most popular? (Select one appropriate option)
1) Coca-Cola
2) Pepsi
3) Fanta

32
 4) Sprite
5) Mountain Dew
6) Slice

Q No.7) Which of the drink your local shop offer? (You can select more than one)
1) Coca-Cola
2) Pepsi
3) Fanta
4) Sprite
5) Mountain Dew
6) Slice

Q No.8) Which of the marketing campaign/advertisement do you prefer? (Select one appropriate
option)
1) Always Coca-Cola
2) Pepsi celebrity campaign
3) Fanta
4) Sprite
5) Mountain Dew
6) Slice

Q No.9) How often do you drink soft drink? (Select one appropriate option)
1) Everyday
2) 2-6 times a week
3) Every other week
4) Once a month
5) Only for certain occasions

Q No.10) Which factor influences your choice of soft drink? (Select as many as appropriate)
1) Taste and Flavor
2) Easy Availability
3) Brand Image
4) Price

33
 5) Advertisement

Q No.11) What sort of packaging do you prefer? (Select one as appropriate)

1) Plastic Bottle
2) Metal Can
3) Glass Bottle
4) Tetra Pack

Q No.12) Are you satisfied with the brand of soft drink you are purchasing?
1) Yes
2) No

Q No.13) Kindly tell us to what extent do you Agree or Disagree to each of these statements.
(Please Tick in Appropriate Column) On the basis of Q No.5:
Statements Strongly Disagree Neutral Agree Strongly Agree
Disagree 5
1 2 3 4
1. I am satisfied
with the taste.
2. It doesn’t make
difference if I
don’t get my
preferred soft
drink when I
order.
3. I am satisfied
with the Brand
image
4. Advertisements
are attractive.
5. I am satisfied
with the easy
accessibility.

34
Q No.14) On the basis of QNo.5, rank in order according to the preferences.
Rank Rank Rank Rank Rank Rank
1 2 3 4 5 6
Taste
Brand Image
Price
Advertisement
s
Quality
Packaging
(1 being the most preferred and 6 being the least)

Q No. 15) What drives your preference towards the soft drink?

Statements Strongly Disagree Neutral Agree Strongly

disagree Agree
1 2 3 4 5
I usually buy
soft drinks
near to my
resident
I purchase
soft drinks
wherever I
need
instantly.

Thank you so much for you time!

35