You are on page 1of 23

The Impact of Brand Characteristics on Consumer

Purchase decision toward Maggie noodles


(Special Reference to Consumers in Colombo District)

1
Content

01.Abstract……………………………………………………………………………….3

02.Introduction

a. Background of the study…………………………………………………………4


b. Problem statement………………………………………………………………..5
c. Research questions………………………………………………………….........5
d. Research objectives………………………………………………………………5

03.Literature review…………………………………………………………………….6-7

04.Methodology……………………………………………………………………….….8

05. Population sample……………………………………………………………………..8

06.Data analysis and interpretation…………………………………………………….9-14

07.Findings……………………………………………………………………………14-15

08.Limitation, Recommendations………………………………………………………...16

09.Reference……………………………………………………………………………...17

10.Appendix…………………………………………………………………………..18-20

11. Group members………………………………………………………………………..21

2
Abstract

Today we live in a world that is constantly becoming more and more competitive. As well as
the healthy life is also a challenge to humans. So the consumption pattern also drastically
changing as a result of this. The Busy schedules of humans create demand for instant foods as
well. However, the unhealthy nature of food consumption creates a big issue nowadays.
Vendors give the priority to enhance the taste of the food rather than the healthiness of the
food. When considering instant noodles “Maggie” that product nowadays faced a huge
problem with the health impact of it. Many factors influence the consumer purchase decision.
Therefore the objective of this study was to identify the impact of brand characteristics on
consumer purchase decision toward “Maggie Noodles” with special reference to consumers
in Colombo District. The data have been collected a survey from selected 50 respondents in
Colombo District. Finally, we investigate that there is a huge impact from brand
characteristics on the consumer buying decision.

Keywords: Brand characteristics, consumer purchase decision, product quality, brand


image, packaging, price

3
CHAPTER ONE

Introduction

Background of the study

Sri Lanka is an attractive instant noodles market in the world with new companies entering in
production of instant noodles in the country. Growing youth segment and increasing working
population, high brand consciousness, changing consumer preference, growing urbanization,
and increase in the number of the working women population are the biggest drivers in the
growth of the instant noodles industry of Sri Lanka. Lack of time, fast-paced life, and
changing food preferences are helping the instant noodles sector to grow in Sri Lanka. With
the heritage of nearly three decades in Sri Lanka, Maggie Noodles has won over the hearts
and minds of Sri Lankan consumers since its entrance to the local market in 1984. They are
Catering to the cravings of both young and old alike. Under the Maggie brand, there are
several noodles are available like Maggie Papare spicy chicken flavor, Maggie PapareKottu,
and Maggie chicken flavor. When purchasing a product we always look brand and its
characteristics. Furthermore, the Nestle company product that called “Maggie” Noodles,
recently there had an issue on the product’s quality that is the health impact of Maggie
noodles, according to that we have selected Maggie Noodles as our product brand. Every
people know Maggie Noodles mean a noodles product. So people purchasing this with it by
their brand name. Maggie Noodles coming under the Nestle product which is their tagline
called “Good food, Good life” But also there is a health impact for the consumers with the
quality of the product. Its ingredients have MSG which is not good for health. Consumers
must more aware of product ingredients as they purchasing a product.

Recently the number of people who are suffering from illnesses such as cancers, heart
diseases, diabetics and, obesity are increased rapidly. These illnesses are caused by changes
in living conditions such as lack of exercise and unhealthy food. Controlling the consumption
of fast food is one way of controlling the illness. There is a demand for popular unhealthy
foods like noodles that have been generated by or artificially generated by vendors. So it is
important to examine customer’s attitudes towards unhealthy foods to find out the answer to
this question. This research mainly focuses to identify whether the brand characteristics
influence the consumers’ purchase decisions.

4
Problem Statement

Instant noodles are a very familiar product in Sri Lanka among the young and adults also.
However, to make a product very effective a brand should have some sort of characteristic
that is consumer acceptance. By the way, sometimes companies may fail to deliver a product
that includes all the types of characteristics for their brand. Therefore, companies need to be
more concerned regarding characteristics. The brand “Maggie Noodles” got a bad reputation
because it includes unhealthy ingredients “Monosodium Glutamate” also known as MSG. and
that is harmful to the human body. Which are cancer-causing flavors in it. However,
sometimes there should be some impact on brand characteristics and the consumer purchase
decision, so it is a greater challenge for the consumer to buy a good healthy noodles product
brand. Moreover, the consumer must take the correct decision to buy the right brand from its
brand’s characteristics. Although there is a direct connection between brands characteristics
with the consumer purchase on Maggie brand. There is a lack of researches conducted to
measure the responsiveness regarding the brand characteristics towards the Maggie Noodles
with concerns for to brand characteristics.

Research questions:

This research is focusing on the following research problems.

1. Do brand characteristics have an impact on consumer purchase decisions?


2. What is the impact of the sales volume of Maggie Noodles?
3. Which brand characteristic has a bigger impact on purchase decisions?

Research objectives:

Main objective

 To identify the impact of brand characteristics on consumer purchase decisions toward


Maggie Noodles.

Other specific objectives

 To understand the perception of consumers regarding Maggie Noodles.


 Identify the impact of sales volume of Maggie Noodles.

5
CHAPTER TWO

Literature Review

Customer Purchase Decision

The study of the process by which individuals or groups select, purchase, utilize, or dispose
of items, services, ideas, or experiences to meet their wants and aspirations is known as
consumer behavior. It is depend on the product quality, brand image, packaging, price,
product performance and other features of the product. Understanding how consumers are
getting purchase decision is very important. “What buy” is may be different from customer to
customer according to their perceived features, such as quality, price, brand image,
packaging, reliability, etc.

Sheikh Qazzafi (2019) did a research regarding consumer buying decision process. This
research was found that, if the product is for everyday use or is inexpensive, the consumer
has little influence in the decision-making process. When purchasing everyday items, it is
very likely that one or more phases of the decision-making process will be skipped. When a
need arises, individuals purchase products or services.

Product Quality

Quality, according to Kotler and Keller (2014), is the sum of the traits and characteristics of a
product or service that may meet the needs of customers. Product quality can feel from
ingredients that use to produce the product, the level of healthy, reliability level, customer
perceived quality. A high level of quality can influence a customer's decision to buy a
product or service. It corresponds to the findings of Shaharudin (2011), who discovered that
the level product decision is based on eight aspects of framework quality and their
relationship to client buying behavior.

Band Image

A brand image encapsulates consumer views of a company's overall personality. This image
incorporates evaluative, albeit not always conscious, assessments of a brand's relative
strengths and weaknesses. Brand image is shaped by the marketing materials and promotional
activities of the company behind the brand, as well as the consumer experience with the
brand over time.

6
Awasthi, Brijesh; Mehta, Masuma (2020) were explained their research, about generation Y
and Z's perceptions of branding and anti-branding in relation to Nestle Maggi noodles. When
a particular brand fails to meet customer expectations, anti-branding communities
emerge. According to the Food Safety and Standards Authority of India (FSSAI) 2015, the
study focuses on the alleged usage of Monosodium Glutamate (MSG) and excessive levels of
lead in Maggi noodles (a popular noodles brand in India). According to the study, Generation
Z customers are more emotionally attached to a brand than Generation Y consumers, and
anti-branding initiatives have a long-term influence on customer brand ties. The findings
show that powerful brands are less affected by anti-branding in the long run, although there is
a considerable difference between Generations Y and Z.

Packaging

The act of designing and creating the product's container and wrapping is known as
packaging. The package is the product's cover, which is used to store, handle, and protect the
product from external influences such as sunlight, moisture, and damage. Packaging enhances
the product's appeal and serves as a powerful sales tool. Attractive packaging entices buyers
to purchase the goods. The importance of product packaging in delivering needed
information to customers, Including instructions on how to use, transport, recycle, or dispose
of the packaging or product, as well as the product's constituents. Marketers can use the
packaging and labeling to entice potential purchasers to acquire the goods. The package
becomes the most significant and last weapon for reaching the consumer, transferring
information, strengthening product positioning in the consumer's mind, and influencing his or
her decision-making process (Butkeviciene, V., Stravinskiene, J., Ratelione, A., 2008).

Price

Price is how much customers pay for buy particular product or service. The influence of a
change in a firm's product price on the quantity requested of that product is referred to as
pricing power. The degree to which individuals, consumers, or producers adjust their demand
or the amount supplied in reaction to price changes is impact of price changes.

Price is an essential factor in purchasing decisions, according to Varadin and Ceoatia's (2015)
research, and it has an impact on the company. The findings also illustrate how non-price
factors have become more important in purchasing decisions over the years, and that
customers have always followed and will continue to follow a company's price-related
activities.

7
CHAPTER THREE
Methodology
In this research we try to identify the impact of brand characteristics on consumer purchase
decisions toward Maggie Noodles and also understand the perception of consumers regarding
Maggie Noodles and how impact on sales volume of Maggie Noodles With reference to the
peoples of Colombo district.

Research Population

The population of this research was customers in Western province also it covered the young
and mature age level from both male and female.

Research Sample

We randomly selected the customers in Colombo district as our sample frame.The main
challenge is gathering information from peoples due to these Covid 19 pandemic situations
and specially quarantine rules are strictly activated in Colombo district. Therefore we have
selected the online questioner method and it shared among the peoples who live in Colombo
district. We have received 50 respond from the peoples. Therefore our total sample size is 50.

Research Design

The finding of this research paper was guided by a qualitative framework and online
questioner use as a method data collection. The questioner was consisted of some closed end
questions to collect basic data for the research about the consumer purchase decisions and
awareness toward Maggie.

Primary data- We gathered data through online questioner that included nineteen questions
and we received and analyzed fifty respond. it is the only possible method of gathering
information because of this epidemic situation.

Secondary data- we used the articles, health report and other Reports published in Internet
related to the our topic

8
CHAPTER FOUR

Data Analysis

The study examine that the Impact of brand characteristics on consumer purchase decision
toward Maggi noodles. In order to analyze the information related to this research topic, we
gathered the data through a Questionnaire. The responses of the questionnaire will be
analyzed throughout this chapter. Customer Purchase Decision and Brand Identity, Customer
Purchase Decision and Brand quality, Customer Purchase Decision and Product packaging,
Customer Purchase Decision and price were measured throughout the questionnaire.

Consumer Purchase Decision and Brand Quality

Maggi noodles is good for Number of


health Respondents
Strongly Agree 0
Agree 3
Neither Agree nor Disagree 9
Disagree 17
Strongly Disagree 21

Figure 01

Figure 01 graph shows that opinion about the health level toward the Maggi noodles. Only 3
respondents agree with that the Maggi noodles contain good health. Meanwhile, Out of total
sample 76% respondents agree that Maggi not good for health. This affects sales volume and
customer purchase intention highly.

Aware about No of Respondents


Ingredients
Yes 40

No 10

Figure 02

9
40 respondents were aware about the maggi noodles ingredents but 10 repondents were not
aware about ingredints. Increasing consumer knowledge about ingredients also negetively
affects volume and purchase decision of Maggie.

Maggi contains high No of


Proteins/Vitamin Respondents
Strongly Agree 0
Agree 6
Neither Agree nor Disagree 10
Disagree 23
Strongly Disagree 11

Figure 03

Figure 03 show that the majority of consumers think that Maggi has not included high
healthy proteins and vitamins. It is 88% and more than half of respondents are proved that a
Maggi noodle is containing unhealthy ingredients. Therefore thedecrease in consumer
willingness to buy increases.

Figure 04 Changes of purchase No of


frequency, After aware Responde
According to the graphs more than 70%
ingredients nts
respondents are decreased their purchasing
Highly Increased 0
frequency due to think that ingredients are
Increased 3
unhealthy. Most of respondents mention that
Neither Increased nor 10
Maggi contain unhealthy ingredients in the
Decreased
suggestion/comment section structured question.
Decreased 14
Highly Decreased 20

Customer Purchase Decision and Brand Image

10
Familiarity Level Number Of
Respondents
Extremely Familiar 4
Very Familiar 21
Somewhat familiar 12
No so familiar 7
Not at all familiar 6

Figure 05

According to analytics details represent that identity level of Maggi brand is considerable
level. 37 respondents are familiar with the Maggi noodles and as a percentage out of total
sample 74% customers were easily identified this product. Increasing familiarity of Maggie
brand also positively affects to the sales volume and purchase decision.

Customer Purchase Decision and Product Packaging

11
Packaging Motivate to Number of
Purchase Respondents

Strongly Agree 3

Agree 15

Neither Agree nor Disagree 22

Disagree 8

Strongly Disagree 2

Figure 06

The graphs show that 10 respondents disagree with the statement. Hence there has not
burning issues related to Maggi noodles packaging. 80% are motivating to buy the Maggie.
They are attracting packaging of Maggie.

12
Packaging provide sufficient No of
information Respondents
Strongly Agree 6
Agree 12
Neither Agree nor Disagree 9
Disagree 16
Strongly Disagree 7

Figure 07

Grahps shows that level of information provide by the pacakaging. There is various type
opionins with the respondents. 20 respondents are agree with the statement but 23
respondents are disagreed with the statement. This affects variations in sales volume and
customer purchase intention.

Customer Purchase Decision and Price

13
Satisfaction level with amount of No of
paid Respondents

Highly Satisfied 3
Satisfied 18
Neither Satisfied nor Dissatisfied 15
Dissatisfied 10
Highly Dissatisfied 4

Figure 08

According to the graphs show that satisfaction level with the amount when purchasing maggi
nooldes. 14 respondents are dissatisfied with the amount paid for the purchasing maggi but
21 respondents has been satisfied. It is can not identify significant negetive affects to the
purchase decision.

Consumer purchase decision and overall brand characteristics

14
Recommendation level No of
to purchase to others Respondents
Strongly Likely 0
Likely 7
Neutral 16
Unlikely 8
Strongly Unlikely 19

Figure 09

When considering overall characteristic with consumer opinion, 19 respondents are strongly
unlikely recommend to the products and also 8 respondents are unlikely recommended
product to others. Meanwhile, only 7 responses are likely to recommend purchasing as well
as 16 respondents are not having exactly opinion regarding this. Hence, company should
examine which reason most influence for that.

Most Influencing Characteristic No of


to Hesitate to purchasing Respondents
Maggi Noodles

Product Quality 29
Brand Image 8
Product Package 7
Price 4
Other 2

15
Figure 10
More than 50% of respondents implies that most hesitate factor to the purchasing Maggi is
Low product quality such as unhealthy ingredients, lower level of goodness rather than the
competitor’s products. Meanwhile, Brand image, Product package, Price are the less involve
factors toward the reducing or ignore to purchase Maggi noodles.

In addition, Suggestions and complaints section majority of respondents argue that the Maggi
should consider healthy level of ingredients. More than 50% respondents mentioned that
Maggi product quality is low due to it contain unhealthy ingredients rather than the
competitors. Any how it may influence to the customer purchasing decision toward the brand
as well reduce sales amount of the product and also negative mind creating among the
consumers toward the Maggi noodles.

CHAPTER FIVE

Findings

As mention in introduction Maggie is the most attractive and famous instant noodles brand in
Sri Lankan market. In this research we try to identify the consumer purchase decision under
four main categories customer purchase decision and product quality consumer purchase
decision and brand image, customer purchase decision and product packaging and finally
customer purchase decision and price.

By referring the interpretation on consumer purchase decision and product quality we can
identify 76% out of total sample think Maggie is not good for the health. Most of peoples are
aware about the ingredient that include with Maggie noodles specially MSG is the main

16
thing. Its directly cause to the cancers and heart diseases and more than 70% are reducing
their purchase frequency due to these unhealthy ingredient Considering about the
consumer purchase decision and brand image Maggie brand is very familiar with consumer
and they easily identified the product. In consumer purchase and product packaging category
most respondent are agree with the packaging of Maggie noodles but the package has a issue
with the burning it is cause to the environment. And most of respondent are disagree with
statement of package providing sufficient information level. But overall most respondent are
satisfied with the packaging of Maggie noodles. Finally Consumer purchase decision and
price of Maggie Noodles 36% respondent are satisfied with the price of Maggie noodles
comparing with other brand in the market.

According to Statistical result most important finding is product quality of Maggie noodles
negatively impact on customer purchase decision specially Unhealthy ingredients like
Monosodium Glutamate (MSG) Most consumers are aware about the ingredient of Maggie
noodles More than 50% of respondent are hesitate to buying Maggie noodles due to
unhealthy ingredients and more than 38% are disagree with recommend the Maggie brand for
others and more 50% respondent are mention about the unhealthy ingredient of Maggie, in
comment and suggestion section. When analyzing the overall primary data to we can identify
how brand characteristics impact of on consumer purchase decisions toward Maggie Noodles
and also what are the perception of consumers regarding Maggie Noodles and how it impact
on sales volume of Maggie Noodles.

Suggestions/Complaints By the Respondents

→ Should be more concerned about health impact of the product


→ Quality is not good
→ Not good product
→ So I don’t like any kind of Maggie noodles because that’s ingredients bad for our
healthy life.
→ Maggi mostly used artificial flavored and those are negatively impact on human
health
→ It uses a lot of flavorings and is bad for your health. As well as it not good product
to the children. Cancer are increased because of this product
→ Maggi noodles not good for health. They use unhealthy ingredients like MSG
→ MSG not good for health, Specially for children
→ If provide it in variety of taste it good

17
→ Should be more concerned about health impact of the product
→ Quality is not good
→ Maggie’s ingredients are not good.
→ Not good for health
→ Maggie is not a quality product
→ Not good product
→ Maggi noodles not good for health. They use unhealthy ingredients like MSG
→ MSG not good for health, Specially for children
→ Should be more concerned about health impact of the product
→ Quality is not good
→ Maggie’s ingredients are not good.
→ Should be more concerned about health impact of the product
→ Quality is not good
→ Maggi’s ingredients are not good.
→ I think it contain MSG, it is not good for health condition of humans.
Figure 11

CHAPTER SIX
Limitations

 The number of respondents use to collect data in this study was limited for Colombo
district.
 Data collection had to be limited to online method.
 Another limitation of this mini research is that it only captures respondents’ opinions.

Recommendation

This mini research only concerned 50 respondents’ responds in Colombo district. Maggi
noodles target different type of customers in market. Therefore, it is better to target different
type of group in different geographical areas and increase the sample size.

It is difficult task understand customers’ purchase decision. There are basic factors customers
concern when buy some product. Those are product quality, price, brand image, packaging.
Now people much concern about healthy food, including what are ingredients use to produce
particular products, level of health, future impacts, brand reputation, etc. Therefore, it is
better concern those factors. If not it will adversely impact for customers’ purchase decision.

18
Many other different factors can influence customers’ purchase decision. Those factors may
different according to the buying situation, occasion and specific factors to each person which
are an individual background, personality, thinking pattern, awareness level, preferences,
social state and economic status. It is recommend to concern other factors as well when study
about purchase decision of particular product. The advertisement campaign which is
continuing for Maggi product plays a huge role in customer purchase decision. Their
promotion campaign do not allow remove Maggi product from market. Future researches can
be focus impact of promotions on customer purchase decision toward Maggi brand.

Reference

Awasthi, B., & Mehta, M. (2020). Anti-Branding: Positive and Negative Effects on
Consumer Perception of Generation Y and Z with Special Reference to Maggi Noodles
in India. IUP Journal of Brand Management, 17(3).
Haryani, D. S. (2019). Consumer Buying Decision. Jurnal Dimensi, 8(1).
Hustić, I., & Gregurec, I. (2015). The influence of price on customer’s purchase decision. Central
European Conference on Information and Intelligent Systems, 1–6.
http://www.ceciis.foi.hr/app/public/conferences/1/ceciis2015/papers/754.pdf

Jakpar S, Goh A, Sze N, Jahari A, (2012), examine the product quality attributes that
influences customer satisfaction.

Shaharudin, M. R., Wan Mansor, S., & Elias, S. J. (2011). Food Quality Attributes among Malaysia’s
Fast Food Customer. International Business and Management, 2(1), 198–208.
Sheikh quzzafi , (2019), consumer buying decision process toward products.

19
Appendixes
Questionnaires

1 .Age
 21 - 30
 31 - 40
 41- 50
02. Gender
 Male
 Female
03. Educational Level
 Primary
 Secondary
 Graduated
 Undergraduate
04. Do you aware about Maggi brand?
 Yes
 No
05. Do you purchase Maggi Noodles?
 Yes
 No
06. How often do purchase Maggie noodles?
 Daily
 Weekly
 Monthly
 When it needed
 Never
07. Rate your opinion Compared to other instant noodles brands with the Maggie quality?
 Highly Satisfied
 Satisfied
 Neither Satisfied nor Dissatisfied
 Dissatisfied
 Highly Dissatisfied
08. Do you aware about Maggie Noodles' ingredients?
 Yes
 No
09. If yes, after aware regarding ingredient mentions your purchase frequency?

20
 Highly Increased
 Increased
 Neither Increased nor Decreased
 Decreased
 Highly Decreased
10. Maggie Noodles contains high proteins and vitamin
 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree
11. Maggie Noodles is good for Health
 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree
12. Are you familiar with Maggie brand?
 Extremely familiar
 Very familiar
 Somewhat familiar
 Not so familiar
 Not at all familiar
13. Are Maggie Noodles packages’ motivate to buy Maggi?
 Strongly Agreed
 Agreed
 Neither Agreed nor Disagreed
 Disagreed
 Strongly Disagreed
14. Does the packaging provide sufficient information?
 Strongly Agreed
 Agreed
 Neither Agreed nor Disagreed
 Disagreed
 Strongly Disagreed
15. How would you rate the quality of the packing?
 Very high quality
 High quality
 Neither high nor low quality
 Low quality
 Very low quality

21
16 How satisfied are you with the amount of money you typically pay for this product Maggi
Noodles?
 Highly Satisfied
 Satisfied
 Neither Satisfied nor Dissatisfied
 Dissatisfied
 Highly Dissatisfied

17 Are you recommend purchasing Maggi brand to others?


 Strongly Likely
 Likely
 Neutral
 Unlikely
 Strongly Unlikely
18 Which characteristic most influence to hesitate purchasing of Maggi noodles
 Product Quality (Ingredient/Level of Health/Compared other)
 Brand Image (Reliability/Brand Identity/Familiarity)
 Product Package (Attractiveness/Information)
 Price (Fairness)
 Other
19 Any other Suggestions, Complaints and Comments

Google Form

https://docs.google.com/forms/d/e/
1FAIpQLSfA9SnTZtodTRxfGFwzHHutgkHT4I742wSjw_AdENlGE5a8mA/viewform?
usp=sf_link

22
23

You might also like