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A STUDY ON CUSTOMER SATIFACTION TOWARDS LAYS CHIPS, IN AVADI,

CHENNAI

Article · June 2015

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

A STUDY ON CUSTOMER SATIFACTION TOWARDS LAYS CHIPS, IN

AVADI, CHENNAI
C.SUNDARAPANDI*, M.KARTHIK** AND A.K.SUBRAMANI***
*
I YEAR M.B.A,
VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,
AVADI, CHENNAI – 600062. TAMILNADU, INDIA.
**
I YEAR M.B.A,
VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,
AVADI, CHENNAI – 600062. TAMILNADU, INDIA.
***
ASSISTANT PROFESSOR,
VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,
AVADI, CHENNAI – 600062, TAMILNADU, INDIA.

ABSTRACT:

Customer satisfaction is the primary source of any business activity, retaining the customers to
their product is most important in the business. The main objective of the study is to find out the
customer satisfaction and loyalty towards consuming Lays Chips. Descriptive research is
followed in this research. The universe of the population includes the respondents who are the
consumers of Lays Chips, with respect to Avadi. The samples (i.e. sample size 50) were selected
among the consumers of Biscuits, in Avadi for this research. The major findings of the study are,
most (90%) of the respondents are willing to recommend Lays Chips to their friends and
relatives. From the research, it is concluded that the demographic variables such as age group,
gender and occupation are having less impact on the factors of customer’s satisfaction. The
research outcome also indicates that, most of the customers were satisfied towards consuming
Lays Chips with respect to the chosen factors.

KEYWORDS: Lays Chips, Customer loyalty, Customer satisfaction, Customer value.

I. INTRODUCTION
Customer satisfaction is a term frequently used in marketing. It is a measure of how
products and services supplied by a company meet or surpass customer expectations. It is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services exceeds specified satisfaction goals. In a
competitive marketplace where businesses compete for customers, customer satisfaction is seen
as a key differentiator and increasingly has become a key element of business strategy.
The purpose of this study is to understand the factors influencing customer satisfaction in
consuming lays. More specifically, the focus is on examining the grouped impact of the factors
on customer satisfaction. First, this research draws on existing research on the factors influencing
customer satisfaction. Second, an empirical research is conducted to discover the combined

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

effect of different factors on hand on customer satisfaction and on the other hand on customer
loyalty towards lays.
II. COMPANY PROFILE OF LAYS INDUSTRY
In 1932 sal esman Herman W. Lay opened a snack food operation in Nashville, Tennesse and, in
1938; He purchased the Atlanta, Georgiapotato chip manufacturer “Barret Food Company”
renaming it “H.W. Lay & Company.” Lay criss-crossed the southern United States selling the
product from the trunk of his car. In 1942, Lay introduced the first continuous potato processor,
resulting in the first large-scale production of the product.
The business shortened its name to “The Lay’s Company” in 1944 and became the first snack
food manufacturer to purchase television commercials, with Bert Lahr as a celebrity spokesman.
His signature line, “so crisp you can hear the freshness,” became the chips” first slogan along
with “de-Lay-sious!” As the popular commercials aired during the 1950s, Lay’s went national in
its marketing and was soon supplying product throughout the United States.

III.REVIEW OF LITERATURE
Jegan, A. and Dr. Sudalaiyandi, S.( 2013) A study on consumer buying behavior towards various
types of pepsico lays in Kovilpatti is conducted to know the consumers’ preferable taste,
awareness about various brands, about the choice and their frequency of preference, satisfaction
of lays. The result of the study shows that lays have a good market share in Kovilpatti city.
According to Bloemer and Kasper (1995) the relationship between customer satisfaction and
loyalty was moderated by respondents on the evaluation of the brand choice. According to Mittal
and Kamakura (2001) also address the link between satisfactions and repurchase behavior. Their
major findings indicate that despite identical rating on satisfaction, due to respondent
characteristics such as age, education, marital status, sex and area of residence, significant
difference was observed in repurchase behavior. Over the past decade, retailers use manufacturer
brands to generate consumer interest, patronage and loyalty in a store. With the growth of
competition, retailers compete with manufacturers for consumer pull to increase their relative
market power and their share of the total channel profit pie (Steiner, 1993). Private label strategy
can help retailers attract customer traffic and create loyalty to the store by offering exclusive
product lines and premium products (Corstjens and Lal, 2000).
RNI: Rajbil (2011), in his article, constructed a tool to measure customer’s satisfaction in
departmental stores. Customer satisfaction is considered as the important determinants of service
quality. In this context, it becomes more relevant to study service quality expectations and
perceptions of customers. This study aims to measure expectations and perceptions with respect
to departmental stores.
IV.OBJECTIVES OF THE STUDY
PRIMARY OBJECIVE
To find out the customer satisfaction in consuming lays in Avadi.
SECONDARY OBJECTIVES
• To find out what percentage of population likes to eat snacks.
• To find out which flavor of Lay’s is most preferred.
• To analyze the reason for the popularity of the most preferred snack.

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

• To know the satisfaction level of people who eat Lay’s.

• To find out how much people spend on snacks weekly.
• To find out the preferences of people for different brands.

V.LIMITATIONS OF THE STUDY

 The study is conducted in Avadi, with 50 respondents. The information we gathered may
have bias, which may not give true picture about the chosen research topic.
 The sampling unit chosen In departmental stores located in Avadi, the survey result may
vary in other locations, based on the kind of services provided at other stores.
VI.RESEARCH METHODOLOGY
Descriptive research is followed in this research. The universe of the population includes
the respondents who are the customers of Bakery shop, located at Avadi. The samples (i.e.
sample size 50) were selected among the customers of lays, at Avadi for this research. The
samples were chosen from the population, by using Convenience sampling technique (i.e. Non-
probability sampling technique), because the exact population size is unknown and the
accessibility of the customer is difficult. Survey method of data collection was used in this
research. The primary data were collected using structured questionnaire.

VII. DATA ANALYSIS AND INTERPRETATION

1. FREQUENCY ANALYSIS
Percentage analysis is one of the descriptive statistical measures used to describe the
characteristics of the sample or population in totality. Percentage analysis involves computing
measures of variables selected of the study and its finding will give easy interpretation for the
reader
Table1: Frequency analysis on Age, Gender, Qualification, Occupation, Consumers
Frequently eat Lays
S.no Particulars Frequency Percentage
1 AGE
15-25years 50 98
25-35years 1 2
2 GENDER
MALE 50 98
FEMALE 1 2
3 QUALIFICATION
SSLC/HSC 13 25.5
UG 18 35.3
PG 17 33.3
OTHERS 3 5.9
4 OCCUPATION
STUDENT 51 100
5 HOW FREQUENTLY DO YOU EAT LAYS?
DAILY 6 11.8
ONCE IN A WEEK 21 41.2
ONCE IN 2 WEEK 5 9.8
ONCE IN A MONTH 3 5.9
RARELY 16 31.4
(Source: Primary Data)

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

INFERENCE
From the above tableit is inferred that most of the respondents are age group of 15-25years
(98%) and same number male respondents are there, majority them (35.3%) are having PG
qualification majority of them (31.4%)

2. Mean and standard Deviation

Table 2: Mean and Standard - Factors of customer satisfaction
S.no Particulars N Mean Standard deviation

1 Taste 51 3.92 1.197

2 Quality 51 3.68 1.053

3 Quantity 51 2.41 1.219

4 Availability 51 3.63 1.280

5 Flavor 51 3.84 0.946

6 Ingredients 51 3.59 1.169

7 Packaging 51 3.18 1.438

8 Price 51 3.16 1.138

9 Brand image 51 3.65 1.092

10 Packing 51 3.43 1.082

11 Advertisement 51 3.94 1.121

(Source: Primary Data)

From the mean and standard deviation it is clear that the factors of satisfaction is showing
moderate level with a mean value ranging in between 2.41 and 3.94

3. INDEPENDENT SAMPLE T-TEST

HYPOTHESIS 1
Null Hypothesis: There is no significant difference between male and female respondents with
respect to the factors of customer satisfaction towards Lays chips.

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

Table 3: t-test for significant difference between male and female respondents with respect
to the factors of customer satisfaction towards lays chips.
S.no Particulars Gender Mean Standard t value P value
deviation
1 TASTE MALE 3.90 1.199 -0.908 1.211
FEMALE 5.00
2 QUALITY MALE 3.80 1.050 -1.132 1.060
FEMALE 5.00
3 QUANTITY MALE 2.40 1.299 -0.483 1.241
FEMALE 3.00
4 AVAILABILITY MALE 3.64 1.290 0.491 1.303
FEMALE 3.00
5 FLAVOUR MALE 3.86 0.948 0.898 0.957
FEMALE 3.00
6 INGREDIENTS MALE 3.56 1.163 -1.226 1.175
FEMALE 5.00
7 PACKAGING MALE 3.22 1.418 1.556 1.433
FEMALE 1.00
8 PRICE MALE 3.16 1.149 0.138 1.161
FEMALE 3.00
9 BRAND IMAGE MALE 3.64 1.102 -0.323 1.113
FEMALE 4.00
10 PACKING MALE 3.46 1.073 1.347 1.084
FEMALE 2.00
11 ADVERTISEMENT MALE 3.94 1.132 -0.052 1.144
FEMALE 4.00
(Source: Primary Data)
INFERENCE
Since P values are ranging from 0.95 to 1.00 which is above the value 0.05 null value should be
accepted and alternative should be rejected. Thus, there is no significant relationship between
customer factors satisfaction.

ONE WAY ANOVA

HYPOTHESIS 2
Table 3: F-test for significant difference between age group respondents with respect to the
satisfaction towards Lays.
S.No Particulars Mean Std. Deviation F value P value
1. Qualification 2.20 3.65
Satisfaction .827 .486
2. .895 1.197
towards Lays
(Source: Primary Data)

INFERENCE
Since P value is 0.486 which is above the value 0.05 null value should be accepted and
alternative should be rejected. Thus, there is no significant relationship between satisfactions
towards Lays.

4. CHISQUARE TEST:
There is no association between age group& brand value of the company biscuits.

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ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

Table 4: Chi- Square test for association between age group and the brand image based
purchase for chips
HYPOTHESIS 1
Chisquare test for purchase the chips based on the brand image
S No. Age Group Brand image based purchase Total Chi square P value
Yes No
1. 15-25years 35 15 50 0.425 0.514
2. 25-35years 1 0 1
(Source: Primary Data)
INFERENCE
Since P value is 0.514 which is above the value 0.05 null value should be accepted and
alternative should be rejected. Thus, there is no significant relationship between purchase the
chips based on the brand image.

HYPOTHESIS 2
There is no association between gender and all Britannia products are liked by the customer.

Table5: Chi-square test for association between age group and famous chips in the market
S No. Age Group Famous chips in the market Total Chi P value
Lays Kurkure Bingo Cheetos Others square
1. 15-25years 37 8 3 1 1 50 0.349 0.986
2. 25-35years 1 0 0 0 0 1
(Source: Primary Data)
INFERENCE
Since P value is 0.986 which is above the value 0.05 null value should be accepted and
alternative should be rejected. Thus, there is no significant relationship between famous chips in
the market.

5. DISCUSSIONS
 There is no significant relationship between gender and factors satisfaction.
 There is no significant relationship between famous chips in the market.
 There is no significant relationship between age group and satisfaction towards
lays.
 There is no significant relationship between purchases the chips based on the brand
image.

6. IMPLICATIONS
 Company may increase the quantity of product to gain more customer satisfaction.
 The company can increase the number and variety of flavors available.
 Company might increase the availability of product and packaging fault which
reduces Quality and quantity should be maintained.

7. CONCLUSION
In this research titled “A Study on Customer Satisfaction towards Lays chips” was objected
to find the satisfaction level of customers towards the lays chips. From the study, it was found
that the customers are moderate towards the satisfaction on lays chips. Also it is recommended to

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 ZENITH International Journal of Business Economics & Management Research__________ ISSN 2249- 8826
ZIJBEMR, Vol.5 (6), JUNE (2015)
Online available at zenithresearch.org.in

increase the quantity, types of flavor and availability, in order to attract more customers for the
product.

8. REFERENCES
JOURNALS
1. Gaudet A P, Customer relationship marketing and effects of demographics
and technology on customer satisfaction and loyalty in FMCG,
Old Dominion University, United States – Virginia, 2004.

2. Pruyn A, Smidts A, Effects of waiting on the satisfaction with the service:

Beyond objective time measures, Rotterdam School of Management. Erasmus
University, Rotterdam, Netherlands, 1998.

3. Jamal A, Adelowore A, Customer-employee relationship: The role of selfemployee

congruence, European Journal of Marketing 42 (2008), no. 11/12,
1316-1345, DOI 10.1108/03090560810903691.

4. Barnard A M, Feedback Seeking in Customer Service Relationships, The

Department of Psychology, Louisiana State University, 2002.

BOOKS
1.”Philip kotler” Marketing management.
2. Consumer Behavior by Leon G Schiffman , Leslie Lazar Kanuk
3. Consumer Behaviour Building Marketing Strategy Publication Year : 2011

WEB REFERENCES:
1. http://www.fmcg.com/status/current year
2. http://www.lays chips.com/profile/organization structure
3. http://bookrange.com/customer satisfaction definition

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