Journal of Business Management and Economics 3 : 6 June (2015).

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JOURNAL OF BUSINESS MANAGEMENT AND ECONOMICS

Homepage: http://innovativejournal.in/jbme/index.php/jbme

Consumer Buying Behaviour towards Soft Drinks in Chittoor District in Andhra

Pradesh
1
B. Venkateswara Reddy, 2Dr. D. Yuvaraju (PDF-Scholar), 3Dr. S. Jyothirmayi Reddy, 4Prof. S. Durga rao
1
Research-Scholar, Dept. of Management Studies, Sri Venkateswara University, Tirupati-517502.
2
Dept. of Management Studies, Sri Venkateswara University, Tirupati-517502.
3
Academic Consultant, Dept. of Management Studies Vikrama Simhapuri University Nellore 524003
4
Dept. of Management Studies, Sri Venkateswara University, Tirupati-517502.
E-Mail: bvreddymba@gmail.com
DOI: http://dx.doi.org/10.15520/jbme.2015.vol3.iss6.96.pp01-06
Abstract: The process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and
wants is called consumer behavior . The study provides necessary information to the Coca-cola and Pepsi organizations to improve their sales
and to have complete details about consumer attitude, perception and purchase pattern before going to purchase the products. It also enables the
respective organizations to identify the differences among the customers in choosing between Coco-cola and Pepsi.

INTRODUCTION and naturally effervescent waters of famous springs, with

Soft drink, any of a class of nonalcoholic beverages, usually
but not necessarily carbonated, normally contains natural or
artificial sweetening agent, edible acids, natural or artificial
flavors, and sometimes juice. Natural flavors are derived
from fruits, nuts, berries, roots, herbs, and other plant
sources. Coffee, tea, milk, cocoa and undiluted fruit and
vegetable juices are not considered soft drinks. The term
was originated to distinguish the flavored drinks from hard
liquor, or spirits. Soft drinks were recommended as a
substitute in the effort to change the hard-drinking habits of
early Americans. Indeed, health concerns of modern
consumers led to new categories of soft drinks emphasizing
low calorie count, low sodium content, no caffeine, and all
natural ingredients. There are many specialty soft drinks.
Mineral waters are very popular in Europe and Latin
America. Kava, made from roots of a bushy shrub, Piper
methysticum, is consumed by the people of Fiji and other
Pacific islands. In Cuba people enjoy a carbonated cane
juice; its flavor comes from unrefined syrup. In tropical
areas, where diets frequently lack sufficient protein, soft
drinks containing soybean flour have been marketed. In
Egypt carob or locust bean extract is used. In Brazil a soft
drink is made using mat as a base. Whey obtained from
making buffalo cheese is carbonated and consumed as a soft
drink in North Africa. Some eastern Europeans enjoy a
drink prepared from fermented stale bread. Honey and
orange juice go into a popular drink of Israel.
HISTORY OF SOFT DRINKS
The first branded soft drink appeared in the market in the
17th century was a mixture of water and lemon juice
sweetened with honey. In 1676 the Compagnie de
Limonadiers was formed in Paris and granted a monopoly
for the sale of its products. Vendors carried tanks on their
backs from which they dispensed cups of lemonade.
Carbonated beverages and waters were developed from
European attempts in the 17th century to imitate the popular
primary interest in their reputed therapeutic values. The
effervescent feature of the waters was recognized early as
most important. Jan Baptist van Helmont (15771644) first
used the term gas in his reference to the carbon dioxide
content. Gabriel Venel referred to aerated water, confusing
the gas with ordinary air. Joseph Black named the gaseous
constituent fixed air. Robert Boyle, the Anglo-Irish scientist
who helped found modern chemistry, published his Short
Memoirs for the Natural Experimental History of Mineral
Waters in 1685. It included sections on examining mineral
springs, on the properties of the water, on its effects upon
human bodies, and, lastly, of the imitation of natural
medicinal waters by chymical and other artificial wayes.
Numerous reports of experiments and investigations were
included in the Philosophical Transactions of the Royal
Society of London in the late 1700s, including the studies of
Stephen Hales, Joseph Black, David Macbride, William
Brownrigg, Henry Cavendish, Thomas Lane, and others.
Joseph Priestley is nicknamed the father of the soft drinks
industry for his experiments on gas obtained from the
fermenting vats of a brewery. In 1772 he demonstrated a
small carbonating apparatus to the College of Physicians in
London, suggesting that, with the aid of a pump, water
might be more highly impregnated with fixed air. Antoine
Lavoisier in Paris made the same suggestion in 1773. To
Thomas Henry, an apothecary in Manchester, Eng., is
attributed the first production of carbonated water, which he
made in 12-gallon barrels using an apparatus based on
Priestleys. Jacob Schweppe, a jeweler in Geneva, read the
papers of Priestley and Lavoisier and determined to make a
similar device. By 1794 he was selling his highly carbonated
artificial mineral waters to his friends in Geneva; later he
started a business in London. At first, bottled waters were
used medicinally, as evidenced in a letter written by English
industrialist Matthew Boulton to the philosopher Erasmus
Darwin in 1794: J. Schweppe prepares his mineral waters
of three sorts. No. 1 is for common drinking with your
dinner. No. 2 is for nephritick patients and No. 3 contains
the most alkali given only in more violent cases. By about

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 B. Venkateswara Reddy et al, Journal of Business Management and Economics, 3 (6), June, 2015,
1820, improvements in manufacturing processes allowed a
much greater output, and bottled water became popular.
Mineral salts and flavours were addedginger in about
1820, lemon in the 1830s, tonic in 1858. In 1886 John
Pemberton, a pharmacist in Atlanta, Ga., invented Coca-
Cola, the first cola drink. Top Soft Drink Brands in India:
Coca Cola, Pepsi, Mountain Dew, Maaza, Nimbooz.
Growth rate of PepsiCo:
Pepsi Co is the world leader in the food chain business. It
mainly consists of the companies, amongst which the
prominent ones are Pepsi Cola, Pepsi food international,
Pizza-hut, and KFC etc. which are engaged in the most
profitable businesses such as Beverages, Snacks, Foods and
Restaurants. At present, the Pepsi Cola Company is
producing and marketing many refreshment beverages to
retail customers in more than one hundred countries around
the world. Pepsi Cola ever since its existence has
strengthened its operations in many countries and have
witnessed the growth and diversification in its all functional
areas. One of the strengths that have contributed for the
development of PepsiCo is its strong franchise system. The
strong franchise system is the backbone of success along
with a great entrepreneur spirit. Pepsi spends a large amount
on its promotion and advertising campaign every year.
This enormous advertisement and promotion budget allows
PepsiCo to reinforce its products, to introduce new products
and make the consumer aware of their new products very
quickly. In the beverages segment, the dominating brands of
PepsiCo are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine
Free Diet Pepsi. PepsiCo products are distributed to many
outlets, viz. Convenience stores, restaurants, movie theatres
and almost all conceivable spots. Hence, PepsiCo is one of
the most well known brands in the world today, available in
over 160 countries. The company has an extremely positive
outlook for India. Apart from North America, the two
largest economies of the world, India and China are the
growing markets for its business. With the introduction of
the liberalization policies since 1991, PepsiCo started its
operations in India viz. manufacturing, research and
development, marketing, distribution and franchising for its
products. At present Pepsi has about forty bottling plants in
India, few of them are owned by the company and
remaining is owned by Indian franchisees. The Pepsi-Cola
marketing phrases have changed many times over the years
since its inception from the beginning of nineteenth century.
The latest phrase of PepsiCo is "Yeh hai youngistan meri jan
and My Pepsi My Way". The PepsiCo has made an addition
to its portfolio of Pepsi beverages by launching "Nimbooz"
on February 2009 in India. This latest brand of PepsiCo has
been launched in India in order to meet the consumer taste
and expectations like natural and delicious lemony
refreshment similar to homemade nimbu pani with hygienic
taste.
PepsiCo is a global food and beverage leader with net
revenues of more than $65 billion and a product portfolio
that includes 22 brands that generate more than $1 billion
each in annual retail sales. Their main brands Quaker,
Tropicana, Gatorade, Frito-Lay and Pepsi-Cola make
hundreds of enjoyable foods and beverages that are loved
throughout the world. PepsiCos people are united by their
2
unique commitment to sustainable growth by investing in a
healthier future for people and planet, which they believe a
more successful future for PepsiCo. PepsiCo call this
commitment Performance with Purpose: PepsiCos promise
to provide a wide range of foods and beverages from treats
to healthy eats; to find innovative ways to minimize its
impact on the environment by conserving energy and water
and reducing packaging volume; to provide a great
workplace for its associates; and to respect, support and
invest in the local communities where it operates.
Coca Cola posts 8% volume growth in India in Q4, 2013:
Coca Cola posted 8 per cent volume growth in the October-
December quarter in India but its business in the country
was slower during 2013 than in recent years amidst slowing
economic environment. The Atlanta-based company posted
a net income of USD 1.7 billion during the fourth quarter,
down 8 per cent from USD 1.86 billion in the year-ago
period. India, China and Japan led the firm's volume growth
in its Pacific group. Pacific Group's volume grew 4 per cent
in the quarter, representing a sequential improvement versus
the third quarter year-to-date results. Growth was broad
based with 8 per cent growth in India, 5 per cent growth in
China and 3 per cent growth in Japan. This marked Coca-
Cola India's 30th consecutive quarter of growth, 19 of which
are double digits. Coca Cola's overall net operating revenues
were down 4 per cent to USD 11.040 billion from USD
11.455 billion in the fourth quarter. Its Bottling Investments
Group's (BIG) volume grew 7 per cent in the quarter on a
comparable basis, led by Germany, China and India, after
adjusting for the net impact of structural changes, primarily
the deconsolidation of the Philippine and Brazilian bottling
operations in 2013. The slowdown in the Indian economy,
however, had its impact on its volume sales on a yearly
basis. " China and India businesses both grew slower than in
recent years amidst slowing economic environments, but
saw stronger performance in the second half of the year due
to a focus on execution and normalized weather".
The Coca-Cola Company Chairman and Chief Executive
Officer Muhtar Kent said: "2013 was marked by ongoing
global macroeconomic challenges in many markets around
the world. And while our business was not immune to these
pressures leading to moderated global volume growth, we
delivered sound financial results in line with our long-term
profit targets..." The company gained global value share in
total non- alcoholic ready-to-drink beverages as well as
global volume and value share in core sparkling and still
beverages for the year, he added. On the outlook, Kent said:
"A rising middle class, greater urbanization and increasing
personal consumption expenditures in markets around the
world will continue to drive greater demand for our
beverages as consumers look for moments of refreshment.
As we work to restore momentum in our business during
2014, we see many reasons to believe we can accelerate our
growth..." Coca Cola further said it expects to save USD 1
billion through its productivity enhancement by 2016 that
will be redirected primarily into increased media
investments such as advertising.
Need for the study:
The study provides necessary information to the coca-cola
beverages company to improve the sales. To know about the
buying behaviours of the consumers towards coca-cola
 B. Venkateswara Reddy et al, Journal of Business Management and Economics, 3 (6), June, 2015,

beverages private limited. And this study provides sufficient Inference: From the above table we can derive that 60 respondents are
information to the company to know consumer attitude and aware of coca-cola product and none of the respondents are unaware of
coca-cola products.
perception before going to purchase the products.
4.1. Awareness of the Pepsi product
Objectives of the study:
parameter respondents Percentage (%)
a. To know the buying behaviour towards coca cola & Yes 60 100
Pepsi brands. No 0 0
b. To find out the factors influencing consumers in Total 60 100
buying the products of coca cola & Pepsi. Inference: From the above table we can derive that 60 respondents are got
aware of Pepsi product and none of the respondents are unaware of Pepsi
c. To provide appropriate suggestions to coca cola & products.
Pepsi based on the study.
4.2. Mode of awareness about coca-cola products
Limitations of the study:
parameter respondents Percentage (%)
The survey was conducted within the limits of Chittoor TV ads 31 52
district and the findings arrived cannot be generalized on the Newspapers 9 16
whole. The time period for carrying out the research Friends &relatives 17 27
Others 3 5
was short, as a result of which many facts have been left
total 60 100
unexplored. Lack of time and other resources do not make it Inference: From the above table we can conclude that 52% of the
possible to conduct the survey at a large extent. The sample respondents got awareness through TV ads and 16% respondents through
size of 120 consumers is not sufficient to interpret the entire news papers, 27% respondents through friends & relatives and 5%
buying behaviour of the consumers. respondents through others.
4.2. Mode of awareness about Pepsi products
Research Methodology:
parameter respondents Percentage (%)
Data Sources: TV ads 29 48
The sources of data obtained are: Newspapers 11 19
Friends &relatives 16 27
a) Secondary data: This data is obtained directly from
Others 4 6
the company websites books, and company records. total 60 100
b) Primary data: This data is obtained by interacting and Inference: From the above table, 48% respondents got awareness through
interviewing the Consumers in chittoor district. TV ads and 19% respondents through news papers, 27% respondents got
c) Data approaches: To collect the data, survey method through friends and 6% respondents got through others.
is adopted 4.3. Interest towards consuming coca-cola products

Research Design: Descriptive research methodology Parameter Respondents Percentage (%)

Research Approach: Survey approach Yes 60 100

Research instrument: Questionnaire No 0 0

Contact method: Personnel interview Total 60 100

Statistical tool: Chi - square test Inference: From the above table we can conclude that all 60 respondents
are interested to consume coca-cola products.
Sampling Plan: 4.3. Interest towards consuming Pepsi products

Sample size: Sample size consists of 120 consumers.
Parameter Respondents Percentage (%)

Sampling unit: The sampling unit includes all Yes 60 100
the consumers of coca-cola and pepsiCo Products in No 0 0
chittoor district. Total 60 100

Sampling metho: Convenience sampling Inference: From the above table we can derive that all 60 respondents are
interested to consume Pepsi products.
Data Analysis Tools:
4.4. Factor affecting to prefer particular coca-cola brand
Data analysis was conducted on the collected primary data
Factor Respondents Percentage (%)
by using Statistical techniques and data is presented with the
Brand image 29 48
help of tables. Price 6 11
Quality 17 28
Percentage Analysis: Quantity 8 13
By percentage method we mean the number of respondents Total 60 100
divided by total sample size and then multiplied by 100. Inference: From the above table ,it is observed that 48% respondents
Percentage is used in making comparison between two (or) preferred brand image ,11% respondents were preferred price,28%
respondents preferred quality, and 13% respondents preferred quantity
more series of data. in selecting coco-cola brand.
The percentage analysis is calculated by using the following
4.4. Factor affecting to prefer particular Pepsi brand
formula
No. of respondents Factor Respondents Percentage (%)
Percentage = -------------------------------- * 100 Brand image 24 40
Price 11 18
Total sample size
Quality 19 32
4.1. Awareness of the coca-cola product Quantity 6 10
Total 60 100
parameter respondents Percentage (%) Inference: From the above table, it is observed that 40% respondents
Yes 60 100 preferred brand image ,18% respondents preferred price,32%
No 0 0 respondents preferred quality, and10% respondents preferred quantity in
Total 60 100 selecting pepsi brand.

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 B. Venkateswara Reddy et al, Journal of Business Management and Economics, 3 (6), June, 2015,

4.5. parameter that affects buying decision of coca-cola place ,11 respondents preferred at parties,7 respondents preferred at
restaurants,5 respondents preferred at house and 4 respondents were
Parameter Respondents Percentage (%) preferred at other places.
Brand loyalty 18 31
Taste 22 36 4.8 Frequency of consuming coca-cola drink
Availability 15 25
Parameter respondents Percentage
Offers 5 8
regular 12 20
Total 60 100
Occasional 16 27
Inference: From the above table, it Is observed that buying decision of
Irregular 32 53
31% respondents is based on brand loyalty, 36% respondents are based on
Total 60 100
taste, 25% respondents are based on availability, 8% respondents are based
on offers. Inference: From the above table, 20% respondents were regularly, 27%
were occasionally, and 53% respondents were irregularly consuming the
4.5 parameter that affects buying decision of Pepsi coca-cola drinks.

Parameter Respondents Percentage (%) 4.8 Frequency of consuming Pepsi drink

Brand loyalty 21 35
Parameter respondents Percentage
Taste 26 43
regular 18 30
Availability 6 10
Occasional 23 38
Offers 7 11
Irregular 19 32
Total 60 100
Total 60 100
Inference: From the above table, it is observed that buying decision of
Inference: From the above table, 30% respondents were regularly, 38%
35% respondents is based on brand loyalty,43% respondents are based on
were occasionally, and 32% respondents were irregularly consuming the
taste,10% respondents are based on availability ,11% respondents are
Pepsi drinks.
based on offers.
4.9. Attraction towards the packing of coca-cola products
4.6. Favorite coca-cola brand of consumers
Parameter Respondents Percentage
Parameter Respondents Percentage
Yes 21 35
Thums-up 16 27
No 39 65
Limca 11 18
Total 60 100
Maaza 12 23
Inference: From the above table, 35% respondents were attracted by
Sprite 16 24
packing of coca-cola products and 65% respondents were not attracted by
Other 5 8
the packing of coca-cola products.
Total 60 100
Inference: From the above table it is observed that 27% preferred 4.9. Attraction towards the packing of Pepsi products
Thums-up, 18% preferred Limca, 23% preferred Maaza, 24% preferred
Sprite and 8% preferred others. Parameter Respondents Percentage
Yes 26 43
4.6. Favorite Pepsi brand of consumers No 34 57
Total 60 100
Parameter Respondents Percentage
Inference: From the above table, 43% respondents were attracted by
Pepsi 16 27
packing of pepsi products and 57% respondents were not attracted by the
Miranda 11 18
packing of Pepsi products.
Slice 12 23
7up 16 24 4.10. Packing of coca-cola products mostly preferable
Other 5 8
Total 60 100 Parameter Respondents Percentage
Inference: From the above table it is observed that 27% respondents Plastic bottle 26 43
preferred Pepsi, 18% preferred mirinda, 23% preferred slice, 24% were Glass bottle 9 15
preferred to 7up and 8% preferred others. Tins 10 17
Tetra pack 15 25
4.7. The place where consumers mostly prefer coca cola drink Total 60 100
Inference: From the above table it is observed that 43% respondents
Parameter Respondents Percentage
preferred plastic bottle,15% respondents preferred glass, 17%
Theaters 15 25
respondents preferred tins and 25% respondents preferred tetra packing
Work place 14 23 of coca-cola products.
Parties 13 22
Restaurants' 8 14 4.10. Packing of Pepsi products mostly preferable
House 6 12
Others 4 6 Parameter Respondents Percentage
Total 60 100 Plastic bottle 23 38
Inference: From the above table we can conclude that 15 respondents Glass bottle 9 15
preferred coca-cola products at theaters, 14 respondents preferred at work Tins 11 18
place ,13 respondents preferred at parties, 8 respondents preferred at Tetra pack 17 28
restaurants, 6 respondents preferred at house and 4 respondents preferred Total 60 100
at other places. Inference: From the above table it is observed that 38% respondents
preferred plastic bottle,15% respondents preferred glass bottle,18%
4.7. The place where consumers mostly prefer Pepsi drink respondents preferred tins and 28% respondents preferred tetra packing of
Pepsi products.
Parameter Respondents Percentage
Theaters 17 28 4.11 Most preferable packing of coca-cola products in terms of size.
Work place 16 26
Parties 11 18 Parameters Respondents Percentage
Restaurants' 7 12 200 ml 9 15
House 5 8 300ml 6 10
Others 4 6 500ml 16 27
Total 60 100 1.25lt 14 23
Inference: From the above table we can conclude that 17 respondents 2.0lt 15 25
preferred Pepsi products at theaters, 16 respondents preferred at work Total 60 100

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 B. Venkateswara Reddy et al, Journal of Business Management and Economics, 3 (6), June, 2015,

Inference: From the above table we can derive that 15% respondents 4.15 Immediate reaction of consumer if his favorite coca-cola product
preferred 200 ml, 10% preferred 300 ml, 27% preferred 500 ml, 23 % is not available
preferred 1.25 lt, 25% preferred 2.0 lt packing of coca-cola products.
Parameter Respondents Percentage
4.11 Most preferable packing of Pepsi products in terms of size. Another coca-cola 22 37
product
Parameters Respondents Percentage
Another brand 26 43
200 ml 11 18
Another outlet 8 13
300ml 7 11
Not purchase 4 7
500ml 17 29
Total 60 100
1.25lt 9 15 Inference: From the above 4.15 table we can derive that 37%
2.0lt 16 27 respondents purchased another coca cola product ,43% respondents
Total 60 100 purchased other competitive brand ,13% respondents purchased coca cola
Inference: From the above table we can derive that, 18% respondents product at another outlet and 7% respondents did not purchase any soft
preferred 200 ml, 11% preferred 300 ml , 29% preferred 500 ml, 15 % drink when there was no availability of favorite coca-cola drink.
preferred 1.25 lt, 27% preferred 2.0 liters packing of Pepsi products.
4.15 Immediate reaction of consumer if his favorite Pepsi product is
4.12 Advertising influence in purchasing coca-cola products not available
Parameters Respondents Percentage Parameter Respondents Percentage
Yes 39 65 Another coca-cola product 24 40
No 21 35 Another brand 23 38
Total 60 100 Another outlet 7 12
Inference: From the above table it is observed that 65% respondents were Not purchase 6 10
influenced by Advertising and 35% were not influenced by Advertising Total 60 100
while buying coca-cola products. Inference: From the above 4.15 table we can derive that, 40%
4.12 Advertising influence in purchasing Pepsi products respondents purchased another pepsi product, 38% respondents purchased
other competitive brand , 12% respondents purchased pepsi product at
Parameters Respondents Percentage another outlet and 10% respondents did not purchase any soft drink when
Yes 37 62 there was no availability of favorite pepsi drink.
No 23 38
4.16. Satisfaction level of the consumer towards coca-cola products
Total 60 100
Inference: From the above table it is observed that 62% respondents were Parameter Respondents Percentage
influenced by Advertising and 38% were not influenced by Advertising Highly satisfied 32 53
while buying Pepsi products. Satisfied 17 29
4.13. Attraction towards consumer offers coco cola Dissatisfied 11 18
Total 60 100
Parameter Respondents Percentage Inference: From the above 4.16 table we can conclude that53%
Yes 22 36 respondents were highly satisfied, 29% respondents were satisfied and 18%
No 38 64 respondents were dissatisfied with the coca-cola products.
Total 60 100
4.16. Satisfaction level of the consumer towards Pepsi products
Inference: From the above table we can derive that 36 % respondents
were attracted by the consumer offers and 64 % respondents were not Parameter Respondents Percentage
attracted by the consumer offers given by the coca-cola products. Highly satisfied 29 48
4.13. Attraction towards consumer offers -pepsi Satisfied 17 29
Dissatisfied 14 23
Parameter Respondents Percentage Total 60 100
Yes 26 43 Inference: From the above 4.16 table we can conclude that 48%
No 34 57 respondents were highly satisfied, 29% respondents were satisfied and 23%
Total 60 100 respondents were dissatisfied with the pepsi products.
Inference: From the above table we can conclude that 43 % respondents
were attracted by the consumer offers and 57 % respondents were not 4.17 Recommendation of coca-cola products to others
attracted by the consumer offers given by the Pepsi products. Parameter Respondents Percentage
4.14 Change in buying behavior of consumer when there is a hike in Yes 51 85
price. No 9 15
Total 60 100
Parameters Respondents Percentage Inference: From the above 4.17 table 85% of respondents were interested
Consume less 11 18 to recommend the coca-cola product to others and 15% were not interested
Continue to consume 32 54 to recommend to others.
Shift to other brand 17 28
Total 60 100 4.17 Recommendation of Pepsi products to others
Inference: From the above 4.14 table it is observed that 18% respondents Parameter Respondents Percentage
consume less , 54% respondents continue to consume and 28% Yes 47 78
respondents shifted to other brand when price of the coca-cola products No 13 22
increased. Total 60 100
4.14 Change in buying behavior of consumer when there is a hike in Inference: From the above 4.17 table 78% of respondents were interested
price. to recommend the pepsi product to others and 22% were not interested to
recommend to others.
Parameters Respondents Percentage
Consume less 13 22 CHI-SQUARE TEST:
Continue to consume 27 45 To calculate the chi-square we use the formula
Shift to other brand 20 33
Total 60 100 K
Inference: From the above 4.14 table it is observed that 22% respondents = [{(Oi-Ei)2}/Ei]
i =1
consume less, 45% respondents continue to consume and 33%
respondents shifted to other brand when price of the Pepsi products Where, 2= chi-square.
increased.

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 B. Venkateswara Reddy et al, Journal of Business Management and Economics, 3 (6), June, 2015,

Oi = observed frequency in ith category.
Most of the consumers of Coca-Cola brand prefered
Ei = expected frequency in ith category. Thums-Up and most of consumers of Pepsi brand
K = Number of categories. prefered 7up as their favorite drink.
Table: Buying Behavior vs. Age Group

From the study it has been observed that plastic
bottles, tins & tetra packs are the most preferable type
Buying Regular Occasional Irregular TOTAL of packing compared to glass bottles of both coca-cola
behaviour/
Age and Pepsi.
20-30 11 7 34 52 Suggestions:
30-40 7 18 22 47
The Pepsi Company should maintain its consistency
and should introduce new models according to the
Above 40 6 7 9 21 changing needs in the market.

Both companies should concentrate on consumer
TOTAL 24 32 64 120 offers to retain the existing consumers as well as to
attract the new customers.
NULL HYPOTHESIS:
The companies have to
H0: Buying behaviour of consumers is independent of age group. pay a greater attention on its distribution activities to
Observed Expected (O-E) (O-E) (O-E)
satisfy the needs of all types of consumers.
Frequencies (O) Frequencies (E) /E
The companies should re-
11 10.4 0.6 0.36 0.03 design the packing models of the products to meet the
07 13.9 -6.9 47.61 3.43 expectations of consumers.
34 27.7 6.3 39.69 1.43
The companies should come up with timely and
07 9.4 -2.4 5.76 0.61 updated advertisements, which include sponsorships
18 12.5 5.5 30.25 2.42
22 25.1 -3.1 9.61 0.38
to different social responsibility campaigns
6 4.2 1.8 3.24 0.77
7 5.6 1.4 1.96 0.35 CONCLUSION
9 11.2 -2.2 4.84 0.43
120 9.85 Based on the Research findings, we can conclude that the
Degree of freedom = (r-1) (c-1) Coca-Cola Brand is a leading player in the market. Because
= (3-1) (3-1) of the quality, price and brand value of Coca cola products,
=4
it has become the symbol of quality and brand image all
Inference: over the world. But some respondents were not satisfied
2 = ((O-E))/E=9.85 with the offers and availability. Buying behaviour of
At 5% level of significance and 4 degrees of freedom, 2 consumer is a complex task. Many factors influence on them
critical = 9.48 in buying the products. COCA-COLA & PEPSI company
2 calculated (9.85 ) > 2 critical (9.48) brands are well known to customers. To influence the
Null hypothesis is rejected. consumers buying behaviour, the companies should
Hence, buying behaviour of consumers is dependent of age maintain good quality, availability and create awareness;
group. brand image towards their products in the mind set of
consumers,
Findings:

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purchase decision. [5]. www.businessdictionary.com/definition/consumer-buying-

Coca-Cola has got a greater market share compared to behavior.html#ixzz3Fdr5WNBg.
the Pepsi because of its product line & product range.