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CHAPTER - 1
1.1INTRODUCTION
Consumer analysis seeks to determine the underlying current and cross currents in the
consumer‘s minds. It focuses on the causes rather than the results of effective marketing
strategy and tactics employed by the firms that are successful in the markets.
Consumer behaviour is defined as the behaviour that consumers display in searching
for, purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs. In order to succeed in any business in today‘s competitive market,
marketers have to know everything they can, about consumers. They must know what the
buyers want, what the buyers think, how they work, how they spend their leisure time, and so
on. They need to also understand the personal and group influences that affect consumer
decisions and how these decisions are made by consumers.
Consumer behaviour studies open up many avenues for students planning for a career
in marketing. A person with thought knowledge of consumer behaviour understands the
underlying reasons why consumers are loyal to a brand. Study about the psychology and
sociology of consumers helps brand managers and product managers in preparing strategies
for their business. Thus, studying consumer behaviour can lead to a career in brand or
product management in a marketing company.
The term consumer behaviour refers to ―the action of consumers in the market place
and the underlying motives for those actions. Marketers expect that by understanding what
causes consumers to buy particular goods and services they will be able to determine
which products are needed in the market place, which are obsolete, and how best to
present the goods to the consumer‖.
Consumer behaviour deals with two different categories of consumers. They are.
1. Household consumers
2. Organisational consumers
The household buyers buy goods and services for his or her own personal use, for the use of
the household, or as a gift for a friend. All these final consumers combine to make up the
consumer market. The organisational buyer includes profit and non profit companies,
government agencies and institutions, all of which buy products, equipment and services
to run their organisations, or for further production. End use consumption is perhaps the
most pervasive of all types of buying consumer buying behaviour as it involves every
individual human being.
SRI SAI INSTITUTE OF ENGINEERING AND TECHNOLOGY Page 2
A STUDY ON THE CONSUMER BUYING BEHAVIOUR
External influences:
Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity, family,
social class, reference groups, lifestyle, and market mix factors.
DEFINITION
Behaviour occurs either for the individual, or in the context of a group (e.g., friends‘
influence what kinds of clothes a person wears) or an organization (people on the job
make decisions as to which products the firm should use).
Consumer behaviour involves the use and disposal of products as well as the study of
how they are purchased. Product use is often of great interest to the marketer, because
this may influence how a product is best positioned or how we can encourage
increased consumption. Since many environmental problems result from product
disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or
garbage piling up at landfills) this is also an area of interest.
Consumer behaviour involves services and ideas as well as tangible products.
The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in
the afternoon. By understanding that new products are usually initially adopted by a
few consumers and only spread later, and then only gradually, to the rest of the
population, we learn that (1) companies that introduce new products must be well
financed so that they can stay afloat until their products become a commercial success
and (2) it is important to please initial customers, since they will in turn influence
many subsequent customers‘ brand choices.
A second application is public policy. In the 1980s, Accutane, a near miracle cure for
acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken
by pregnant women. Although physicians were instructed to warn their female
patients of this, a number still became pregnant while taking the drug. To get
consumers‘ attention, the Federal Drug Administration (FDA) took the step of
requiring that very graphic pictures of deformed babies be shown on the medicine
containers.
Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the
Centres for Disease Control trying to reduce the incidence of transmission of diseases
through illegal drug use. The best solution, obviously, would be if we could get illegal
drug users to stop. This, however, was deemed to be infeasible. It was also determined
that the practice of sharing needles was too ingrained in the drug culture to be
stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a
campaign that encouraged the cleaning of needles in bleach before sharing them, a
goal that was believed to be more realistic.
As a final benefit, studying consumer behaviour should make us better consumers.
Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay less per ounce than if you bought two 32 ounce
bottles. In practice, however, you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact will sensitize you to the need
to check the unit cost labels to determine if you are really getting a bargain.
The study is chosen to know the consumer buying behaviour associated with the
various different packages of coca cola soft drinks. The behaviour levels of consumers
are associated with the product are brand name of the company, quality of the product,
advertisements and other factors.
The focus is on to know the factors which influences the consumers to buy the
soft drinks of preferred pack in coca cola company. The factors include brand name of the
company, price and quality of the product, advertisements, sales promotional activities
and other minor aspects.
The study also focuses on the personal opinion of the consumers on the pack and
company and the satisfaction level of the product they purchased as well as the opinion
on the other products of other companies.
The study also focused on their expectation of the consumers and their buying
behaviour which is useful for the company.
MANAGEMENT PHILOSOPHY:
CORPORATE AREA
The major concept of management philosophy is to remain in the beverage industry
and not diversify into other areas. The management believes in investing in non capital-
intensive areas. In fact, the beverage industry requires little capital, and produces maximum
returns. The returns from the foreign markets are tapped to the most.
FINANCIAL AREA
The corporate objectives are to increase the shareowners value. The management
believes that in increasing the shareholders value it requires consistent growth in financial
results complemented by effective use of the cash flow.
MARKETING AREA
Here the management is committed to superior market place execution. This is
achieved by decentralized operating structure that places the responsibilities, authority and
the accountability as close to the customer and consumer as possible.
THE BRAND
Coca-cola consistently ranks in the world‘s most valuable brands. The brand value is
about $39billion.This is the greatest heritage of the company. As far as the branch
management concerned, we find that Coca-cola ranks itself as the third only after Microsoft
and Louis Vinton.
COCA-COLA INDIA
Coca-cola returned to India after 16 years, in 1993.The brand promotion was in
between 1994-96.The bottling acquisition occurred in between 1997-99.Its quest for
profitability started from 2000 onwards. In India Coke have its concentrate plants at pune
producing 10 brands. Its company-owned bottling operations are at six operating regions, 29
operating areas with 26 plants, 10 green fields, and 3000 associates. It enjoys a business of
over Rs.3000 crores in India.
Coca-Cola now in total consists of five operating locations for CSD brands and
KINLEY packed water at Moula-Ali, Vijayawada, Srikalahasti and Vishakhapatnam having
a turnover of over 750 crores with 3 plants, 2 Green fields and 1500 associates. The company
also has two contract packers for its water business.
Thumps-Up now has a leading position in CSD market in AP, with a market share of
nearly 50percent.AllCoca-Cola`s CSD brands put together now accounted for 75 percent of
the overall CSD market.
INDIAN BRANDS:
For the local market in India coke has in addition the following brands:
COCA-COLA:
It is the world‘s favourite drink, the world‘s most valuable brand.
Coca-Cola has truly remarkable heritage. From a humble beginning in 1886,
it is now the flagship brand of the largest manufacturer, marketer, and
distributor of non-alcoholic beverages in the world.
THUMPS-UP:
Thumps-Up is the leading carbonated soft drink and most trusted brand
in India. Originally introduces in 1977, Thumps-Up was acquired by the Coca-
Cola company in 1993. Thumps-Up is known for its strong, Fizzy taste and its
confident, mature and uniquely masculine attitude. This brand clearly seeks to
separate the men from the boys.
LIMCA:
Lime n Lemony Limca, the drink of that can cast a tangy refreshing
spell on any one, anywhere. Born in 1977, Limca has been the original thirst
choice, of millions of consumers for over 3 decades.
FANTA:
The orange drink of the Coca-Cola Company, lies seen as one of the
favourite drinks since 1940`s Fanta entered the Indian market in the year.
SPRITE :
Worldwide sprite is ranked as the No.4 soft drink and is sold in more
than 190 countries. In India Sprite was launched in year 1999 and today it
has grown to one of fastest growing soft drinks, leading the clear line
category.
DIET COKE:
Was launched in1982 to target the market of the light products.
Thums-Up:
Glass: 200ml.300ml.500ml.1000ml
PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml
CAN: 330ml
Fountain: various sizes
Sprite:
Glass: 200ml.300ml.
PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml
CAN: 330ml
Fountain: various sizes
Fanta :
Glass: 200ml.300ml.
PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml
CAN: 330ml
Fountain: various sizes
Limca :
Glass: 200ml.300ml.
PET bottle: 500ml, 1.25 ltr, 2 liters, 2.25 ltr, 500ml+100ml
CAN: 330ml
Fountain: various sizes
Maaza:
PET: 250ml, 600ml, 1.2 ltr,
RGB: 200ml, 250 ml
Pocket maaza : 200ml.
Kinley :
PET: 500ml, 1000ml, 2000 ml
Nimbu fresh:
Available in 2 packages: 400ml and 1000ml
INDUSTRY PROFILE
Soft drinks trace their history back to the mineral waters found in natural springs.
Ancient societies believed that bathing in natural springs and/or drinking mineral waters
could cure many diseases. Early scientists who studied mineral waters included Jābir ibn
Hayyān, Alkindus, Rhazes, Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent
Lavoisier, Hermann Boerhaave, William Brownrigg, Gabriel F. Venel, Joseph Black, and
David Macbride.
The earliest soft drinks were sherbets developed by Arabic chemists and originally served in
the medieval Near East. "Alkaline Substances", "A kind of Saltwort" from which soda is
obtained, probably from Arabic suwwad, the name of a variety of saltwort exported from
North Africa to Sicily in the Middle Ages, related to sawad "black," the color of the plant.
These were juiced soft drinks made of crushed fruit, herbs, or flowers. From around 1265, a
popular drink known as Dandelion & Burdock appeared in England, made from fermented
dandelion (Taraxacum officinale) and burdock (Arctium lappa) roots, and is naturally
carbonated. The drink (similar to sarsaparilla) is still available today, but is made with
flavorings and carbonated water, since the safrole in the original recipe was found to be
carcinogenic.
The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th
century. They were made from water and lemon juice sweetened with honey. In 1676, the
Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft
drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink
to thirsty Parisians.
Carbonated drinks:
In late 18th century, scientists made important progress in replicating naturally carbonated
mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing
water with carbon dioxide to make carbonated water[6] when he suspended a bowl of distilled
water above a beer vat at a local brewery in Leeds, England. His invention of carbonated
water, (also known as soda water), is the major and defining component of most soft drinks.
Priestley found water thus treated had a pleasant taste, and he offered it to friends as a
refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed
Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto
chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated
bowl of water.
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus
for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist
Jöns Jacob Berzelius started to add flavors (spices, juices and wine) to carbonated water in
the late 18th century.
PRODUCTION
Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonated
water. Carbonated water is made using a home carbonation system or by dropping dry ice
into water. Syrups are commercially sold by companies such as Soda-Club.
Ingredient quality:
Of most importance is that the ingredient meets the agreed specification on all major
parameters. This is not only the functional parameter, i.e. the level of the major constituent,
but the level of impurities, the microbiological status and physical parameters such as color,
particle size, etc.
U.S. containers in 2008. Various sizes from 8-67.6 US fl oz (237 ml -2 l) shown in can, glass
and plastic bottles
In the United States, soft drinks are sold in 3, 2, 1.5, 1 liter, 500 ml, 8, 12, 20 and 24 U.S.
fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short eight-ounce cans. Some Coca-
Cola products can be purchased in 8 and 12 U.S. fluid ounce glass bottles. Jones Soda and
Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint) glass bottles. Cans are packaged in
a variety of quantities such as six packs, 12 packs and cases of 24, 36 and 360. With the
advent of energy drinks sold in eight-ounce cans in the US, some soft drinks are now sold in
similarly sized cans. It is also common for carbonated soft drinks to be served as fountain
drinks in which carbonation is added to a concentrate immediately prior to serving.
In Europe, soft drinks are typically sold in 2, 1.5, 1 litre, 500 ml plastic or 330 ml glass
bottles; aluminum cans are traditionally sized in 330 ml, although 250 ml slim cans have
become popular since the introduction of canned energy drinks and 355 ml variants of the
slim cans have been introduced by Red Bull more
recently. Cans and bottles often come in packs of six or four. Several countries have standard
recyclable packaging with a container deposit, typically ranging from € 0.15 to 0.25. The
bottles are smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminium.
In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic bottles. Bottles are
usually 390 ml, 600 ml, 1.25 or 2 liters. However, 1.5 liters bottles have more recently been
used by the the Coca-Cola Company. South Australia is the only state to offer a container
recycling scheme, recently having lifted the deposit from 5 cents to 10 cents. This scheme is
also done in the Philippines; people usually buy glass bottles and return them in exchange for
a small amount of money.
In Canada, soft drinks are sold in cans of 236 ml, 355 ml, 473 ml, and bottles of 591 ml, 710
ml, 1 l, 1.89 l, and 2 l. The odd sizes are due to being the metric near-equivalents to 8, 12, 16,
20, 24 and 64 U.S. fluid ounces. This allows bottlers to use the same-sized containers as in
the U.S. market. This is an example of a wider phenomenon in North America. Brands of
more international soft drinks such as Fanta and Red Bull are more likely to come in round-
figure capacities.
In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml and 330 ml cans,
and 600 ml, 1.25 l, 1.5 l and 2 l plastic bottles.
Health effect:
The consumption of sugar-sweetened soft drinks is associated with obesity type 2 diabetes,
dental cavities, and low nutrient levels.[11] Experimental studies tend to support a causal role
for sugar-sweetened soft drinks in these ailments,[10][11] though this is challenged by other
researchers.[12][13] "Sugar-sweetened" includes drinks that use High-fructose corn syrup, as
well as those using sucrose.
Many soft drinks contain ingredients that are themselves sources of concern: caffeine is
linked to anxiety and sleep disruption[14] when consumed in excess, and the health effects of
high-fructose corn syrup and artificial sweeteners remain controversial. Sodium benzoate has
been investigated as a possible cause of DNA damage and hyperactivity. Other substances
have negative health effects, but are present in such small quantities that they are unlikely to
pose any substantial health risk. Benzene belongs to this category: the amount of benzene in
soft drinks is small enough that it is unlikely to pose a health risk.[15]
In 1998, the Center for Science in the Public Interest published a report titled Liquid Candy:
How Soft Drinks are Harming Americans' Health. The report examined statistics relating to
the soaring consumption of soft drinks, particularly by children, and the consequent health
ramifications, including tooth decay, nutritional depletion, obesity, type-2 (formerly known
as "adult-onset") diabetes, and heart disease. It also reviewed soft drink marketing and made
various recommendations aimed at reducing soft drink consumption.[16]
There have been a handful of published reports describing individuals with severe
hypokalemia (low potassium levels) related to chronic extreme consumption (4-10 L/day) of
colas.[34]
Nutritional value:
Unless fortified, they also contain little to no vitamins, minerals, fiber, protein, or other
essential nutrients. Soft drinks may also displace other healthier choices in people's diets,
such as water, milk, fruit juice,[37] and vegetable juice.
Buy online to access strategic market analysis and an interactive statistical database of
volume and value market sizes including on-trade and off-trade, company and brand shares,
distribution and pricing data.
Soft drinks recorded robust double digit off-trade value growth in 2009, which was higher
than that witnessed in 2008. Bottled water and fruit/vegetable juice continued to grow
strongly as more consumers turned to these products in the search of healthier options.
Carbonates also witnessed good sales growth as the long summer helped to fuel sales. Energy
drinks has witnessed a slowdown in sales growth as its is a premium priced product type and
therefore not considered a necessity. Importantly, more consumers refrained from spending
on non-essential items in the wake of the economic downturn.
Manufacturers continued to focus on health and wellness products in 2009, introducing green
tea versions of powder concentrates and RTD tea. There were also a number of launches in
terms of new products and flavors in fruit/vegetable juice. The only new product launch in
carbonates was Grappo Fizz by Parle Agro Pvt Ltd. Non-cola carbonates performed very well
as these products are perceived by consumers to be less of a health threat than cola
carbonates. Even in niche categories like energy drinks, sugar-free versions were introduced
as manufacturers try to attract health conscious and diabetic consumers.
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009, followed by PepsiCo India
Holdings Pvt Ltd in off-trade value terms. The launch of Nimbooz by 7-Up (PepsiCo India)
helped the company retain its
leading position in the terms of off-trade value sales. Coca-Cola India and PepsiCo India
continued to invest in soft drinks in India. However, domestic players such as Parle Agro,
Parle Bisleri Ltd and Dabur India Ltd continued to provide tough competition to the leading
multinationals. One competitive edge that domestic players hold is that unlike Coca-Cola
India and PepsiCo India the bulk of their business does not come from carbonates, but instead
from fruit/vegetable juice and bottled water, which are recording much more dynamic
volume and value growth. Thus, while the leading multinationals retained their leading
positions in off-trade value terms, they continued to record slight off-trade value share
reductions in 2009, while these leading domestic players grew their shares.
The growth in supermarkets/hypermarkets boosted the soft drinks industry over much of the
review period. However, due to the economic downturn, the off-trade volume share of
supermarkets/hypermarkets decreased in 2009. This in turn affected some of the more niche
and premium product types like energy drinks and reconstituted 100% juice which enjoyed
high visibility through this distribution channels. However, this trend is not expected to
continue as the economy recovers since consumers will revert to their previous shopping
patterns.
Soft drinks is expected to record healthy sales growth in the forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth over the
forecast period. As consumer awareness and understanding of the variety of soft drinks
increases and as manufacturers continue to be innovative, soft drinks is expected to perform
well. Products on the health and wellness platform and niche categories can expect to see
good sales growth in the forecast period.
Coca-Cola re entered India in 1993. The vision of the company is to lead beverage
revolution in the world and provide it‘s consumer quality beverages at affordable price. As on
June 2007, Company has 65 manufacturing locations across 18 states of the country
The company has one single environmental system, echo system, implemented at all its
operations across the world. The eKO system is a tool that integrates environment
management with business planning cycle.
Environment
Occupational Safety and Health (OSH)
Both the facets are aligned with international management system standards, ISO 14001 for
Environment Management and OSHAS 18001 for Safety Management.
As on June 2007, 32 manufacturing units are certified to ISO 14001 & 10 units are certified
to OHSAS 18001 Standards.
At the core of The Coca-Cola Environmental Management System are five values that affirm
the responsibilities of The Coca-Cola Company and serve as guidelines for our business
partners around the world. Each of these values is supported by specific requirements and
practices that govern our daily operations and are fundamental to achieving results consistent
with environmental leadership. Our five values are:
Commitment
Compliance
Minimizing Impact Maximising Opportunity
Accountability
Informing Stakeholders
PRIMARY OBJECTIVE:
To study the consumer buying behaviour towards 1.25lit pack of coca-cola soft
drinks.
SECONDARY OBJECTIVES:
The study is use useful for the company in framing future strategies. The target
customers are men and women in the age group of above 20 years.
By this research it is more useful to know the personal opinion and also
the consumer behaviour towards the packs of soft drinks. There are more number of
branded products which has been highly attracted by general public and also a fair
response to discount offers. The study brings out information about the consumer‘s
preferences, the brands they prefer and the reason for their preference and which
factor attracted them to buy the product.
It also helps in understanding the customer‘s opinion about newly
launched pack. By this study the requirements of the consumer can be known and also
it will be useful to the company to design new products and innovative marketing
strategies and promotional schemes.
The most important activity of marketing is to study consumer market and also
analyzing of buying behaviour. If the Company decides to build a position on quality and
service, it must first analyze buying behaviour of the consumers, and the company can
analyse their production status of goods.
The entry of various brands in soft drink industry has made severe cut throat
competition. All organizations are coming out with new promotional tools on attracting
features, which has severe impact on sales.
In order to retain and capture the market, the company wants to study why the
consumer switches over to other brands and what can be the factors responsible. By knowing
the factors the company can easily improve the present activities to reach the expectations of
the consumer on retaining its position in the market.
1.7 DELIVERABLES
CHAPTER - 2
3. Consumer reactions to electronic shopping on the world wide web Source International
Journal of Electronic Commerce archive
Volume 1 , Issue 2 (December 1996) table of contents
Pages: 59 - 88
Year of Publication: 1996
ISSN:1086-4415
Authors
Sirrka L. Jarvenpaa
Peter A. Todd
Publisher
M. E. Sharpe, Inc. Armonk, NY, USA
Bibliometrics
Downloads (6 Weeks): n/a, Downloads (12 Months): n/a,
Much fascination and speculation surrounds the impact of the World Wide Web on consumer
shopping behavior. At the same time, there is little empirical evidence underlying all this
speculation. This article provides one such data set. It reports on factors that consumers found
salient as they browsed through selected electronic malls on the World Wide Web. We
gathered consumers' reactions via an open-ended survey using a sample of 220 shoppers. We
related the reactions to the factors of product perceptions, shopping experience, customer
service, and perceived consumer risk, which we had identified from the existing literature on
retail patronage behavior. This study translated these factors to the World Wide Web context
and explored their relative salience.With respect to product perceptions, consumers were
impressed by the breadth of stores on the World Wide Web but disappointed with the depth
of a merchant's offerings. The shopping experience was reported to be generally enjoyable,
but at the same time frustrating. Consumers also reported that they could perceive the
potential for time savings and reduced effort compared with traditional forms of shopping,
but that, at present, goal-directed shopping was difficult. Nearly everyone in the sample had
something negative to say about customer service on the World Wide Web, judging that the
sites were not designed to be responsive to their needs and that the presentation of goods and
services seemed intangible. Risk was cited as a barrier to shopping on the World Wide Web,
but was not as salient to our sample as product perceptions, shopping experience, and
customer service. Overall, the results suggest that World Wide Web merchants need to think
more about how they perform on the factors known to affect consumer behavior; namely,
product perceptions, shopping experience, and customer service. We offer advice for
enhancing the design of World Wide Web retail sites.
,
Curtis P. Haugtvedt , Richard E. Petty and John T. Cacioppo
The Ohio State University, USA,Three studies were conducted to examine the role of need
for cognition on attitudes formed as a result of exposure to advertisements. Prior research on
SRI SAI INSTITUTE OF ENGINEERING AND TECHNOLOGY Page 25
A STUDY ON THE CONSUMER BUYING BEHAVIOUR
need for cognition has used only long messages, counterattitudinal topics, or employed
instructions that specifically told participants to evaluate products. Results of our studies
reveal that need for cognition also affects the processes of attitude change when no explicit
evaluation instructions are provided and when exposures are to relatively short, unfamiliar
advertising messages presented in either self-paced or externally controlled formats.
Consistent with prior research, attitudes of high need for cognition individuals were based
more on an evaluation of product attributes than were the attitudes of low need for cognition
persons (Studies 1 and 2). In addition, the attitudes of low need for cognition individuals
were based more on simple peripheral cues inherent in the ads than were the attitudes of high
need for cognition persons (Study 3). Implications for the study of personality variables in
consumer behavior are discussed.
5. The effect of expertise on the relation between implicit and explicit attitude measures: An
information availability/accessibility perspective
Sandor Czellar and David Luna
Department of Marketing, Faculty of Business and Economics, University of Lausanne,
1015 Lausanne, Switzerland
Department of Marketing, Zicklin School of Business, Baruch College, One Bernard Baruch
Way, New York, NY 10010, USA
Received 12 October 2009;
revised 24 June 2010;
accepted 30 June 2010.
Three experiments investigate expertise as a moderator of the relationship between implicit
and explicit attitude measures. Prior research suggests that greater expertise leads to stronger
implicit–explicit relations; however, a cognitive view of expertise can also predict a weaker
implicit–explicit relation. Our framework helps to resolve that seeming contradiction on the
basis of the availability/accessibility of attributes versus attitudes in explicit attitude
measures. We show that object specificity and contextual factors (e.g., instructions and prior
evaluations in a survey) differentially affect the availability/accessibility of global attitudes
and attribute information for novices versus experts, thus determining how expertise
moderates the implicit–explicit relation.
Although the aesthetic properties of a product have often been linked to consumers‘
emotional responses, theory and empirical evidence are yet to fully explain how and why
aesthetic properties of a product evoke an emotional response. Drawing on an eclectic
literature, we propose hypotheses connecting aesthetic principles with the subconscious
cognitive appraisals associated with emotions. Specifically, we empirically test the
relationships between the aesthetic principle of harmony and cognitive appraisals (attentional
activity and pleasantness), while exploring the moderating role of typicality. Our results
suggest that harmony and typicality interact to affect appraisals of pleasantness and
attentional activity. Specifically, consumers tend to prefer designs that balance the levels of
attentional resources needed and pleasantness in visually evaluating the design. This work
advances the growing literature in product design and aesthetics by providing an
understanding of the mechanisms through which aesthetic principles might prompt emotional
responses in consumers.
The influence of involvement on the endowment effect: The moveable value function
Najam U. Saqib, Norman Frohlich and Edward Bruning
College of Business and Economics, Qatar University, P.O. Box 2713, Doha, Qatar
I.H. Asper School of Business, University of Manitoba, Winnipeg, Manitoba, Canada R3T
5V4
Department of Social and Preventive Medicine at the University of Montreal, Montreal, QC,
Canada
SRI SAI INSTITUTE OF ENGINEERING AND TECHNOLOGY Page 27
A STUDY ON THE CONSUMER BUYING BEHAVIOUR
This paper identifies factors that facilitate narrative transportation, where people become
immersed in the storyline of an advertisement. Specifically, using a lottery context, this
research shows that consumers who feel lucky or believe in personal good luck are motivated
to engage in transportation, a process that is intensified as the attractiveness of the outcome
SRI SAI INSTITUTE OF ENGINEERING AND TECHNOLOGY Page 28
A STUDY ON THE CONSUMER BUYING BEHAVIOUR
increases. Further, this research shows that highly transported consumers (a) become more
focused on ad outcomes and less on the low personal probability of winning, and that (b)
attempts to attenuate consumers‘ transportation are most efficacious if undertaken before the
ad (and transportation) begins.
Communal and exchange relationship perceptions as separate constructs and their role in
motivations to donate
Jennifer Wiggins Johnson, and Pamela E. Grimm
Kent State University, Department of Marketing, P.O. Box 5190, Kent, OH, 44242, USA
Received 24 June 2009;
revised 25 June 2010;
accepted 30 June 2010.
Across a series of three studies, we demonstrate that the number of product units displayed on
a package biases consumers' perceptions of product quantity (i.e., the number of snack items
the package contains) and actual consumption. Specifically, we demonstrate that consumers
use an anchoring heuristic to infer that packages that display a greater number of product
units (e.g., 15 pretzels vs. 3 pretzels) have a higher product quantity inside. Importantly, we
demonstrate that actual consumption of the food product follows this anchor judgment. The
studies demonstrate that these effects are moderated by level of visual processing and that
they are robust even in the presence of verbal information.
CHAPTER - 3
RESEARCH METHODOLOGY
RESEARCH DESIGN:
A research design is purely and simply the frame work of plan for a study the
guides the collection and analysis of data. It is a blue print for a complete study. It resembles
the architects blue print map for a constructing a house.
SAMPLING TECHNIQUE
A sample is a subset of population and it comprises some members selected from it.
sampling is the process of selecting a sufficient number of elements from the population.
Sample survey:
A survey which is carried out using a sampling method, i.e., in which a proportion
only and not the whole population, is surveyed.
Sampling designs:
There are two types of sampling designs. They are probability and non- probability
sampling.
Probability sampling: In probability sampling the elements in the population
have some known chance or probability of being selected as sample subjects.
Non- probability sampling: The elements in the population do not have any
probability attached to their being chosen as sample subjects. This means that the
findings from the study of the sample cannot be confidently generalized to the
population.
SAMPLE
A sample is a finite part of a statistical population whose properties are studied to gain
information about the whole. When dealing with people, it can be defined as a set of
respondents (people) selected from a larger population for the purpose of a survey.
SAMPLING
Population: TIRUPATI
1. Primary Data :
The primary data are those, which are collected afresh and for the first time and thus
happen to be original in character.
2. Secondary Data:
o The Secondary data consists of information that already exists somewhere
having been collected for another purpose and researcher begins the research
work by first going through the secondary data.
o Here Secondary data is collected from the COMPANY, Company‘s website.
This method of data collection is quite popular. In this method a set or a series of
questions in logical order is asked to the respondents and the researcher collects the desired
information. The questions may be asked verbally or in writing and the responses may be
either form and it is mainly constructed for the purpose of mailing.
Questionnaires need to be carefully developed, tested and debugged before they are
administered on a large scale.
After collecting data we have arranged and managed it on a SPSS sheet and analysed
it using various tool of this software. The basic research techniques used are:
Analysis techniques are used to obtain finding and arrange information in a logical
sequence from the raw data collected. After the tabulation of data the tools provide a
scientific and mathematical solution to a complex problem.
1. CHART
Bar charts and pie charts are used for analysis to get a clear idea about the
tabulated data.
2. PERCENTAGE ANALYSIS
Percentage analysis shows the entire population in terms of percentages. It
reveals the number of belonging is a particular category or the number of people
preferring a particular thing, etc., in terms of percentage. In this study, the number of
people who responded in a particulars manner is interpreted in the form of
percentages.
No of respondents
Total respondents
Descriptive analysis – here we have calculated the frequency for the respondent‘s reply
to each question. This is the most important analysis as far as marketing research is
concerned because we are basically concerned with what customer thinks of the problem.
Along with it we have also calculated various measures of location and dispersion to
summarize the data in a more understandable form. Help of bar graphs and pie chart has also
been taken.
Cross tabulations – cross tabs give the relation between the two variables in a tabular
form. It is a very effective tool for data analysis as we can simultaneously study two or three
variables are draw conclusions based on it.
Chi square test – it is done to understand if there is any significant relation between the
variables which have been used in the cross tabs.
CHAPTER 4
DATA ANALYSIS
10-20yrs 45 39.79%
20-30yrs 34 29.31%
30-40yrs 19 16.37%
40-50yrs 11 9.48%
AGE GROUP
45.00% 39.79%
40.00%
35.00%
29.31%
30.00%
pecentage
25.00%
20.00% 16.37%
15.00% 9.48%
10.00% 6.03%
5.00%
0.00%
10-20yrs 20-30yrs 30-40yrs 40-50yrs 50 & above
age
INFERENCE:
The figure depicts that 39.79% of the respondent age is in between 10 -20 years
and 29.31% of the respondent age is 20-30 years and 16.37% of the respondent age is 30-40
years and 9.48% is 40-50yrs and only 6.03% is above 50 yrs age.
Since majority of the respondents are in the age group of 10-20 coca cola company
can concentrate on this particular segment for furthering the business.
MALE 76 66%
FEMALE 40 34%
140
120 116
p
e
100
r
c 76
80
e
n
60
t
a 40
40
g
e
20
66% 34% 100%
0
MALE FEMALE TOTAL
gender
INFERENCE:
The table represents that 116 number of the respondents are male and female.in that 76
number of the respondents are male i.e. 66%and the remaining 40 of the respondents are
female i.e.34%.
Since the majority of consumers are male, company can more focus on this segment.
NO 4 4%
120
100
80
yes
60
no
40
20
0
Number of respondents In percentage
INFERENCE:
The table depicts that number of respondents for the answer yes is more than the
answer no to the product user. For YES 96% of consumers responded where as for NO 4% of
the consumers responded.
ON OCCASIONS 43 37.06%
NUMBER OF RESPONDENTS
ONCE IN A WHILE
ON OCCASIONS
TOTAL
INFERENCE:
The diagram depicts that the frequency to the products of cocacola is greater in once
in a while than on occasions.
So it can be said the users of the drinks are once in a while according to conditions of
climate.
PARTIES 62 53.44%
DINNERS 12 10.34%
FESTIVALS 10 8.62%
FAREWELLS 11 9.48%
NUMBER OF RESPONDENTS
PARTIES
WEDDING OCCASSIONS
DINNERS
FESTIVALS
FAREWELL DAYS
INFERENCE:
The diagram depicts that the preferable occasions to have soft drinks has been
greater during the parties, compared to the wedding occasions, dinners, festivals, fare well
days.
1.25LIT 46 40%
1.5LIT 15 13%
2LIT 26 22%
1.25lit
1.5lit
2lit
All the above
INFERENCE:
The diagram depicts that the packages of capacity 1.25 L, 2 L, 1.50 L are consumed in
lower order level and in the mixed proportion of all the three are also included in the users
mind set.
So it gives the clear idea that the production can be given importance to all the
packages and as mixed variants.
NO 2 2%
Table: 4.1.1.7 showing 1.25lit pack is a better replacement for 1.5lit pack
Yes
No
Total
Chart: 4.1.1.7 showing 1.25lit pack is a better replacement for 1.5lit pack
INFERENCE:
Totally 98 % of respondents told 1.25lit pack is better replacement for 1.5lit pack
PRICE 44 38%
PACKING 11 10%
QUANTITY 19 16%
120
100
80
INFERENCE:
From the above chart it depicts that the reaso for selecting the product od cocacola is
all the elements that are interlinkled to the product and so the compay has to give importance
to all the elements of the product.
RARELY 15 13%
NOT AVAILABLE 5 4%
TOTAL
RARELY NUMBER OF
RESPONDENTS
0 20 40 60 80 100 120
INFERENCE:
From the above chart it depicts that the aailability of the product is always there and
so the product should be optimally available to the customers in all needs .
NO 3 3%
120
100
80
NUMBER OF
RESPONDENTS
60
IN PERCENTAGE
40
20
0
YES NO TOTAL
INFERENCE:
From the above chart it depicts that the price of the product is affordable and the
company to maintain thier cost of production and find the wasy that can still more reduce the
price of the product.
YES 77 66%
NO 39 34%
120
100
80
NUMBER OF
RESPONDENTS
60
IN PERCENTAGE
40
20
0
YES NO TOTAL
Chart: 4.1.1.11 showing the awareness of the promotional scheme running on this pack
INFERENCE:
From the above chart it depicts that the percentasge of the awareness of the product is
77% and it should made more that all the customer of the soft drinks should be aware of our
product.
TV ADVERTISEMENTS 45 58%
BY RETAILERS 30 39%
TOTAL 77 100%
Tv advertisements
POS materials
Outdoor media
By retailers
Total
INFERENCE:
From the above chart it depicts that people are aware to the television advertisement
rather than the outdoormedia , so the compay can tyake steps to increase the ways to
familiraise the product among the pulic
PEPSI &CO(1LIT-33/-) 5 4%
140
120
100
80
Preference of product In
60 percentage
Preference of product
40 Number of respondents
20
0
Pepsi &co(1lit- Coca cola Total
33/-) co(1.25lit-33/-)
INFERENCE:
From the aboe chart it depicts that the consumers are always rational consumers and
always prefer to that in all the line of the prodcts , so the company has to make decisin on that
variate.
THUMS UP 26 22%
SPRITE 52 45%
FANTA 16 14%
LIMCA 11 9%
Coca cola
Thums up
Sprite
Fanta
Limca
Total
INFERENCE:
From the above chart it depicts that brand preference for the basis type of product is
less and it has more concentration of the range of the company products and now the
company has to focus to familiraise the main product of the company
CHI-SQUARE TEST
Age and frequency of consumption
The analysis is done to know whether there is significant relationship between the age
of the respondents and frequency of consumption of soft drinks.
NULL HYPOTHESIS:
There is no significant relationship between age of the respondents and their
frequency of consumption of soft drinks.
ALTERNATE HYPOTHESIS:
There is a significant difference relationship between age of the respondents and their
frequency of consumption of soft drinks.
CHI-SQUARE TEST
Gender and occasion preferred
The analysis is done to know whether there is significant relationship between the gender and
the occasion they preferred to have the soft drink .
NULL HYPOTHESIS:
There is no significant relationship between gender of the respondents and the
occasion preferred for the consumption of soft drinks.
ALTERNATE HYPOTHESIS:
There is a significant difference relationship between gender of the respondents and
the occasion preferred for the consumption of soft drinks.
Since calculated value of chi-square is lesser than the table value, null hypothesis is
accepted and alternate hypothesis is rejected.
Result:
There is no significant relationship between gender of respondents and preference of
occasion for consumption of soft drinks.
The analysis is done to know whether there is significant relationship in gender of the
respondents and the selection of specific brand in coca-cola.
NULL HYPOTHESIS:
There is no significant relationship between the gender of the respondents and the
selection of specific brand in coca-cola company.
ALTERNATE HYPOTHESIS:
There is a significant difference relationship between gender of the respondents and
the selection of specific brand in coca-cola company.
=3.35
Cov(x,y) =∑xy/n-(∑x/n)(∑y/n)
=802/5-(76/5)(40/5)
=160.4-121.6
=38.8
Coefficient of correlation r =Cov(xy)/⌐x*⌐y
=38.8/41.54
=0.9340
since the ‗r‘ value exist between -1 and +1 the correlation is present
Result:
There is a significant relationship exist between the gender and the choice of selecting
the brand in the coca- cola company.
CHAPTER - 5
5.1 Findings:
96% of the consumers purchase coca cola soft drinks and its other brands due to
brand image and next comes to quality.
Coca cola has got wide range of brands compared to other competitive companies
like Pepsi co and Agro Company.
98% of the respondents feel that the 1.25lit pack is the better replacement for 1.5 lit.
About 60% of the consumers purchase sprite brand.
96% of the respondents revealed that 1.25 lit packs is having best affordable price.
Out of 116 customers interviewed, most of the respondents were in the age group of
10-20 i.e., 39.79% with the majority of respondents being male ie, 66% and most of
them are college students.
38% of the customers are satisfied with the price offered by coca cola company
It was seen that 45% prefer sprite and 22% prefer thums up as a very popular brands
of coca cola.
58% of the Respondents are thinking that T.V advertisements are the most effective
than any other media for advertisement.
Consumers are less aware of Rs. 5/- of promotional scheme running on this pack.
Respondents expect good taste, low price and more awareness.
From the survey it is clear that most of the consumers have come to know about this
product through 58% advertisements and 39% through retailers.
53.44% of the customers purchase coca cola soft drinks for the purpose of parties
and in summer season.
From the survey it is evident that most of the consumers are not aware of 1.25lit
pack and its price off.
The availability of 1.25 lit. Frizz pack is less in Rural areas
5.2Suggestions:
On the basis of the findings and observation these are the some of the suggestion:
First and foremost the company should pay attention to its advertising, strategy
though it is the number one brand in soft drink industry. As most of the consumers
are not aware of its different types of offers provided by the company. Through
advertising media such as T.V and outdoor media can create awareness in the
people.
The company should provide service in the areas where the packs are not available
always. Because some of the respondents opinion is there is no availability of pack
in rural areas.
Though most of the people agree with the consistency of the quality they wish to
maintain the same quality.
Finely the relation that exists between the customer and the company is based on
trust and confidence for goods and goodwill, it is a very delicate alliance, and nut
also needed one. So coca cola cannot displease its consumers who is in turn
goodwill earners for the company.
Coco – Cola Company can introduce new models in the market. Its products need
Specially 1.25 lit pack needs more promotional schemes to increase it sales.
All the time the pack should be available to rural areas at their convenience.
5.3Conclusion:
Based on the Results and Findings we can conclude that
Today, coca cola is the number one brand from other brands in the global market. Coca
cola company brands have become the symbol of quality and brand image.
Besides, sales of different brands are also increasing every year. For the increasing demand,
they have also increased production capacities of existing units in moula-ali, Vijayawada,
srikalahasthi, athmakur.
Coca Cola Company has got good brand image all over the world, most of the consumers are
satisfied with quality, price and so on.
BIBILIOGRAPHY
Etzel, Walker, Stanton and Pandit, Marketing concepts, Tata MC Graw-hill, thirteenth
edition.
Company records
Websites:
www.KMFNandinicoop.com
www.indiandairy.com
2. Age group:
13. If you are given a chance which product do you prefer the most?
a. Pepsi co(1lit-Rs33) [ ]
b. coca cola(1.25lit-Rs33) [ ]
a. Coca-cola ( )
b. Thums up ( )
c. Sprite ( )
d. Fanta ( )
e. Limca ( )