A STUDY ON CONSUMER BEHAVIOR IN AURO FOOD

(TRUE BISCUITS) PVT LTD,

THIRUCHITRAMBALAM

SUMMER PROJECT REPORT

Submitted by
KARTHI D
REGISTER NO: 27348318

Under the Guidance of

Mr. D. SARAVANAN, M.B.A., M.Phil., M.F.C., M.H.R.M Ph.D.,
Faculty, Department of Management Studies

in partial fullfilment for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY
PUDUCHERRY
 SEPTEMBER- 2007
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
MADAGADIPET, PUDUCHERRY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “A Study On Consumer Behavior In Auro
Food (True Biscuits) Pvt Ltd, Thiruchitrambalam” is a bonafide work done by
KARHI D [ REGISTER NO: 27348318 ] in partial fulfillment of the requirement for the
award of Master of Business Administration by Pondicherry University during the academic year
2007 – 2008.

INTERNAL GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER
 ACKNOWLEDGEMENT

First and foremost, I thank the God for his substantial blessing and mercy at all stages in
the completion of the project.

I take this opportunity to express my deep sense of gratitude to SHRI N.KESAVAN,

Founder Chairman, SHRI M.DHANASEKARAN, Managing Director and
SHRI S.V.SUGUMARAN, Vice-Chairman of our college for their good wishes for this project.

I express my immense gratitude to our Principal

DR. V.S.K.VENKATACHALAPATHY for his support and encouragement for the completion
of my project.

I extend the immense gratitude to the Head of the Department MR. S.JAYAKUMAR for
his motivation, inspiration, and encouragement for the completion for my project.

The valuable and unflinching requital support in this Endeavor

MR. D.SARAVANAN my internal guide, Department of Management Studies whose assistance
was immeasurable to the completion of this project.

I am sincerely thankful to MR. A.GOVINARAJ, executive Sales-Administration for his

help and support throughout the project. I extend my thanks to MR. R.RAMESH, for his help to
complete my project and also my external guide.

I would also like to thank all the staff of the organization for helping me directly and indirectly to
conclude this work. Last, but not the least, my heart felt gratitude to my parents, relatives and my
friends for their constant encouragement, support, help and valuable advice to make this project a
success.
 ABSTRACT

The project report entitle “A STUDY ON CONSUMER BEHAVIOR IN AURO

FOOD (TRUE BISCUITS), THIRUCHITRAMBALAM.” is intended to determine the buying
behavior and awareness of the product.

Consumer behavior focuses on how individuals make decisions to spend their available
resources (time, money, effort) on consumption related items. That includes what they buy, why
they buy, when they buy it, where they buy it, how often they buy it for purchase and the impact
of such evaluations on future purchases, and how they dispose of it.

To achieve this defined objective structured questionnaire based on the behavior study
made is prepared. The prepared questionnaire is used to get the direct responses from the
consumers in Auro Food, Thiruchitrambalam.

The response given to the consumers in Puducherry were analyzed and interpreted using
different type of statistical tools used are percentage analysis and weighted average method.

After analysis and interpretation, it reveals the following points are important in
improving the buying behavior attitudes, awareness, advertisement and choice of product range.
After that the purchasing frequency were found out.
 CONTENTS

CHAPTER TITLES PAGE NO.

LIST OF TABLES
LIST OF CHARTS
INTRODUCTION 1
I PROFILE OF THE COMPANY 2

NEED FOR THE STUDY 9

II REVIEW OF LITERATURE 10

III OBJECTIVES OF THE STUDY 17

IV RESEARCH METHODOLOGY 18

V DATA ANALYSIS AND INTERPRETATION 22

FINDINGS OF THE STUDY,

VI 37
SUGGESTION AND RECOMMENDATIONS
38
VII CONCLUSION 39

LIMITATIONS OF THE STUDY

VIII 40
SCOPE FOR THE FUTHER STUDY
41
APPENDICES
ANNEXURE-1 42
ANNEXURE-2 44

LIST OF TABLES
TABLE NO. NAME OF THE TABLE PAGE NO.
5.1.1 TRUE BISCUITS CONSUMED 22
5.1.2 CONSUMPTION TRUE BISCUITS UNDER SEX 23
5.1.3 CONSUMPTION BASED ON OCCUPATION 24
5.1.4 CONSUMED BASED ON OCCUPATION 25
5.1.5 SELECTING BRAND 26
5.1.6 TRUE CONSUMED BASED ON AGE 27
5.1.7 NO. OF TRUE BISCUIT CONSUMED 28
5.1.8 TRUE BISCUIT KNOWN FROM 29
5.1.9 TRUE BISCUIT BASED ON PRICE 30
5.1.10 ALTERNATIVE 31
5.1.11 TRUE BISCUIT CONSUMED UNDER 32
5.1.12 NO. OF FLAVOR 33
5.1.13 SUGGESTION 34
5.2.1 LEVEL OF SATISFACTION 35

LIST OF CHARTS
CHART NO. NAME OF THE CHART PAGE NO
5.1.1 TRUE BISCUITS CONSUMED 22
5.1.3 CONSUMPTION BASED ON OCCUPATION 24
5.1.5 SELECTING BRAND 26
5.1.8 TRUE BISCUIT KNOWN FROM 29
5.1.9 TRUE BISCUIT BASED ON PRICE 30
5.1.10 ALTERNATIVE 31
5.1.11 TRUE BISCUIT CONSUMED UNDER 32
5.1.12 NO. OF FLAVOR 33
5.1.13 SUGGESTION 34
5.2.1 LEVEL OF SATISFACTION 36

CHAPTER-I

1.1 INTRODUCTION

The term consumer behavior is defined as the behavior that consumers display in
searching for purchasing, using, evaluating and disposing of products and services that they
expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to
spend their available resources (time, money, effort) on consumption related items. That includes
what they buy, why they buy, when they buy it, where they buy it, how often they buy it for
purchase and the impact of such evaluations on future purchases, and how they dispose of it.
 Consumer behaviour is the study of how people buy, what they buy, when they buy and
why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology
and economics. It attempts to understand the buyer decision making process, both individually
and in groups. It studies characteristics of individual consumers such as demographics,
psychographics, and behavioural variables in an attempt to understand people's wants. It also tries
to assess influences on the consumer from groups such as family, friends, reference groups, and
society in general.

The process of consumption has long been associated with sex and gender, thus, it comes
as no surprise that consumer researchers often examine the effects of these variables on consumer
behaviors. It also comes as no surprise that much is known about sex and gender and how they
impact buying and consuming activities. Yet there is one gender-related variable, gender identity,
that has both intrigued and perplexed consumer behavior researchers for over four decades.

1.2 PROFILE OF THE M/S AUROFOOD PRIVATE LTD.

AUROFOOD LIMITED is a diversified company comprising seven major manufacturing

divisions, Six of these manufacturing factories are located in a sprawling estate of over 112 acres,
where the corporate office is also situated about 23 Km away from the estate.

1.2.1 BASICS

“Go for the Best” - Whether it is Men, Machinery Materials it has been Aurofood's policy
to go to the best in the world to give its customers the BEST IN QUALITY.
 World-class machineries, dedicated team with prime motive of customer satisfaction, the
best of ingredients with love and care, these are the secrets of the success, the quality leader has
achieved in the last three decades.

1.2.2 ORIGIN

This complex comprises of Flour Mill, Biscuit and wafter plants, paste (Vermicelli) Plant
Animal Feed plant, Masala Unit and an Engineering Unit. Added to this is the Edible Oil
Refinery situated in Thirubuvanai in Puducherry.

In the late sixties, Aurofood was started by Manibhai Patel, a first generation’s
entrepreneur when he returned from kenys in 1965. The main architect, Manibhai Patel was
attracted to India by the teachings and philosophy of The Mother of Sri Aurobindo Ashram. With
his entrepreneurial Skill, he set up this manufacturing complex.

1.2.3 MANAGEMENT

The company has on its Board as advisors, eminent personalities, with rich experience in
Marketing and Finance. The company's management has a healthy blend of qualified techno-
commercial managers and profit center heads other well qualified manager/executives to
supervise functional areas.

1.2.4 OPERATION

Thirty years before, the first Flour Mill with a capacity of 100 tons per day was
commissioned in a place where no wheat was grown. Aurofood expanded its capacity mill is
designed and supplied by Erstwhile Henry Simon of U.K. Even today, this is the single largest
Flour, Mill in India.

Manufacturing of Biscuits started with the first plant supplied by Simon Vicars of U.K. in
1972. It is urgently producing “TRUE” range of Biscuits including Marie time, True milk, True
nice, True Cream varieties, etc. Aurofood makes best efforts to insure value for money (VFM)
for its customers. Aurofood can proudly claim to have pioneered the VFM packs.

Biscuits and Wafer production facilities are now under the control of a new company -
International bakery Products .Limited, wherein Aurofood Limited and its associates hold 49%
share in its equity.

Pioneering any new concepts has always been a habit to Aurofood. One such thing was to
introduce Pasta products for the first time in the organized sector in India. Three independent
lines of machinery- two for long vermicelli ands one for short, supplied by Braibanti, Italy is a
fully automatic facility capable of producing orthodox long and short vermicelli, Ada, Macaroni,
Apaghetti, Noodles etc. All these are packed and sold under TRUE brand.

Engineering division was commenced in 1981 as a part of Aurofood's major diversification

programmed with sophisticated imported machineries including CNC equipment. Focused more
on high precision engineering components for the defense in the manufacture of helicopters,
aircraft and satellites launched by India.

Aurofood has also ventured into Animal Feeds to produce cattle and poultry feeds.
Though the market is more price sensitive, Aurofood has its own high quality oriented niche
market to cater.

The new addition in its diversification spree was the Edible Oil Plant. It is 50 tons per day
state of the art continuous refining plant for refining raw sunflower oil into edible grade. It is
marketed under the brand name "AUROLA".

This chapter deals with an overview of the company in brief and this chapter discusses
about the organization and its infrastructure and manufacturing.
 Aurofood limited was found 1968. It was established in 1970. Its first manufacturing unit
produced 100 tones of wheat flour per day through flourmill. Flourmill was expanded in 1975 to
produce around 400 tones of wheat flour per day. Again in 1987 - 88 when the mill was
modernized the wheat milling capacity was increased to 450 tones per day.

The mill is fully designed and supplied by Mr.Henry Simon. The mill is designed in a
modern manner. Though the first mill was established in 1970 efforts have been taken regularly
to modernize machinery department. In 1988 technovator grain tempering system using gamma-
ray microprocessor was installed and today the mill can easily be regarded as most modern and
up-to-date in terms of machinery and technology.

The company is multi-plant, multi-product Company with five self-contained

manufacturing plants. The range of major products exceeds 40 in number. Over 750 employees
are engaged in manufacturing and administration and around, 120 staff engaged in
selling/marketing functions.

The divine mother of Sri Aurobindo ashram is the grinding spirit of Aurofood, growth, a
the managing director endeavors to discharge his responsibilities & in the spirit of the messages
given to Aurofood, by the divine mother. The mother's first message, “WE SHALL WORK FOR
A BETTER TOMORROW" inspires a strategic decision.

This chapter deals with an overview of the company in brief and. this chapter discusses
about the organization and its infrastructure and manufacturing.

1.2.5 INFRASTRUCTURE

All the factories (including branches), housing colony and essential infrastructure occupy
around 45 acres of the 115 acres campus. Thus an area of nearly 70 acres is available for further
expansion and growth of the existing and new industries. Water requirements of-the company are
met by its own bore wells and similarly its entire power requirement (whenever the state
government is unable to meet) is met by captive generators. The power requirements or partial as
the need may be. Thus company is completely self-sufficient in all essential resources.

Some little known facts "True”-true refers to one kind of biscuits and breads. The biscuits
are sold in Tamil Nadu, Andhra Pradesh, Kerala, and Puducherry. Where, as “True" bread is
highly regionalized. Breads are made available only in service centers of Aurofood Company.
Their flour mill products are available in bulk and all the wholesale and retail shops. The
Aurofood Company is retaining customers very well. So the products like (flour, biscuits, pasta,
dry-mixes) are demanded by the customers and bought.

1.2.6 MANUFACTURE FACILITIES

 DRY MIX (1989)

Capacity : Dependent on the product to be produced.
Products : Wide range of dry mixes.

 ENGINEERING (1981)
Products : Precision Engineering components for defense
Application and contract engineering jobs. Flour
Milling and Cereal Processing machinery.

 ANIMAL FEEDS (1989)

Capacity : 36,000 TPA (Tonnes per annum)
Design and Supply : Spectomsof Baroda, India.
Products : Cattle and Poultry Feeds in the form of Mash and Pellets.

 EDIBLE OIL (1994)

Capacity : 15,000 TPA (Tonnes per annum)
Design and Supply : Alfa Laval, India.
Products : Range of vegetable Edible Oils.
1.2.7. QUALITY CONTROL

Centralized Laboratory cum R&D and individual quality for each division available.

Wet, Chemistry analytical facilities and modern instruments such as near infrared analysis,
water, activity apparatus and Brabender dough rheology centre available for the food division.
Laboratory recognized by the Department of Science and Technology, Government of India,

1.2.8 MAN POWER

Each plant and functional d pat1ments are headed by accountable and competent
managers assisted by a team of executives and staff committed to excellence. Aurofood
employees about one thousand persons are very much integrity and zeal pm1icipating in the
growth of the company.

1.2.9 ABOUT THE COMPANY WORKING AT GLANCE

Name Aurofood (P) Ltd

Trade name TRUE
Address Thiruchitrambalam - 605111.
Date of registration 22-06- I 992
Status Leading mill in south India.
Products produced Manufacture of Kadir ,brand, Maida, Sooji,
Atta & Bran, Biscuits, vermicelli, Wafer &
Aurola oil.
1.2.10 NAME OF HIGHER OFFICIALS

Managing director - B.M.Patel

Administration manager - V. Siva Kumar
Technical director - M.M Patel
Business manager - Dr. R. Gopinath
The external audit is performed by M/S. A. Vengatagire & co.

1.2.11 Bankers
State bank of India

Sirothozbie branch
Kamaraj salai, Puducherry.
Registered office of Aurofood Company is situated at
No,2, Lawrence Bazaar Street,
Puducherry.

1.2.12 Purchase department

Purchasing is a function of procuring goods and services from sources external to the
organization.

The purchase department is one of the functional departments of the company. The
activities of the purchase department include rising of purchase orders, selecting suppliers,
placing orders and receiving materials according to the stationary, machines tools, spares, etc. All
the activities of the purchase department are performed by the purchase manager of company. In
this company, most of the purchases are made from north India i.e., northern states such as
Punjab, Uttar Pradesh and Maharashtra.

Purchase department also undertakes the storage function. Storage function refers to the
storing of raw materials n the company. There is no storage department separately. The purchase
department itself performs storage function by locating the raw materials in the concerned place.
1.2.13 ORGANISATIONAL CHART

Managing Director

Finance Manager Business Manager V.P. Operations

Accounts
Floor Mill Floor Mill Edible Oil

Personnel Security
Purchase Purchase Purchase

HRD
Production Production Production

Maintenance Maintenance Maintenance

Sales & Sales & Sales &

Marketing Marketing Marketing
1.3 NEED FOR STUDY

A study of consumer behavior in Aurofood (true biscuits) for special purpose of to know
about the consumer behavior for improve the product and marketing function for consumer
satisfaction.

 To know about how many people to get aware about TRUE BISCUITS.

 To find the competitors and analyze the methods for competition marketing.

 To find the choice and which flavor is very well moving in market
  How many people to consume TRUE BISCUITS in market

 To get suggestion from public for further improvement

 Why some people did not consume TRUE BISCUITS and find out what their reason.

 Who is the main consumer in TRUE BISCUITS?

CHAPTER-II
REVIEW OF LITERATURE

2.1 MEANING OF COSUMER BEHAVIOR

The term consumer behavior is defined as the behavior that consumers display in
searching for purchasing, using, evaluating and disposing of products and services that they
expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to
spend their available resources (time, money, effort) on consumption related items. That includes
what they buy, why they buy, when they buy it, where they buy it, how often they buy it for
purchase and the impact of such evaluations on future purchases, and how they dispose of it.

2.2 PERCEPTION
 We use our senses (sight, smell, taste, touch, and hearing) to interpret information and
give meaning to what object around us. Perception is the process by which we organize and select
information received through the senses and give meaning to the objects in the world around us.
This is done by our brain. We do not always do this correctly. How do you determine whether
furniture is durable? Suppose a marketer finds that you lift it and if it is heavy you conclude that
it is durable.

2.3 SUBLIMINAL PERCEPTION

The idea that you can influence consumer behavior by flashing subliminal messages is
something that started in the early 1950’s.

 PERCEIVED RISK
Some products are perceived as high risk (sports car, house) and some are seen as low
risk (flour, a deck of playing cards). In general, two factors affect the perceived risk of a
product that is uncertainty and consequences.

 FINANCIAL RISK
Sometimes consumers are concerned about losing money if a product does not work well.

 PERFORMANCE RISK
You might be worried that the product does not work. Do you worry that salt will not
work.

 PSYCHOLOGICAL RISK
Sometimes people are concerned that a product may not fit their self-image. This is
mainly true for clothing.

2.4 ATTITUDES
Attitudes have three components: the cognitive deals with beliefs and knowledge the
affective deal with emotion likes and dislikes and the cognitive, which is more behavioral, deals
with actions, motives, and intent. The teacher evaluation scale completed by students every
semester measures your attitude towards a particular instructor.

 ATTITUDES CHANGES
Marketers use several approaches in order to try to changes the attitudes of
consumers. As was noted above, the attributes of a product play an important role in the
consumer decision making process. It means the consumer to change the product.

 REFERENCE GROUP
People who are members of a gang tend to dress alike and buy the same brand of
beer and cigarettes. It means to purchase same thing of products.

2.5 FIVE STAGES OF CONSUMER BUYING BEHAVIOR

 Need awareness:
The beginning point of most purchasing is your potential buyer recognition of a need
in their life. This need can be established by encountering a problem or prompted by a
company marketing.

 Information search:
With the rise of the internet, it has never been easier for buyers to research their
purchase. Make sure your small business is in the game by providing educational material
on your website.
  Check options:
After an information search, the customer will evaluate all the available options.
Options include wanted features pricing and company credibility.

 Purchase decision:
This is the moment when the customer wants to buy. Deals are easily lost when you
keep selling to the customer. There an old adage in sales when the customer says “I will
take it.” Keep your mouth closed, and close the deal.

 Post buying behavior:

An overlooked piece of consumer buying behavior is what occurs after the purchase.
The buyer will look for reinforcement from media friends and other sources confirming
they made the right decision.

2.6 FACTORS INFLUENCING CONSUMER BEHAVIOR

• Personal factors.
• Psychological factors.
• Social factors.
• Cultural factors.

• Personal factors:
Age and life cycle stage, occupation, economic situation, lifestyle, personality and
self concept are called personal factors. It affect the buying behavior to the consumer

• Psychological factors:
 Motivation, perception, learning are called psychological factors. It affects the
consumer behavior in way of mentally.

• Social factors:
Social factors means around the society methods and traditions followers. Simply
they are group of people under religions and caste.

• Cultural factors:
To follow some traditions means culture the people live with in some restrictions
and conditions it also to affect the consumer behavior.

2.7 A LITERATURE REVIEW FROM MONEESHA PACHAURI

Meaning

Consumer behaviour is the study of how people buy, what they buy, when they buy and
why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology
and economics. It attempts to understand the buyer decision making process, both individually
and in groups. It studies characteristics of individual consumers such as demographics,
psychographics, and behavioural variables in an attempt to understand people's wants. It also tries
to assess influences on the consumer from groups such as family, friends, reference groups, and
society in general.

Consumer Behavior and Marketing Strategy

 The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how,

• The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
• The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing decisions;
• Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
• How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
• How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

Understanding these issues helps us adapt our strategies by taking the consumer into
consideration.

There are four main applications of consumer behavior:

• 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
Centers 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.

• As a final benefit, studying consumer behavior 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.

2.8 GENDER IDENTITY IN CONSUMER BEHAVIOR RESEARCH

The process of consumption has long been associated with sex and gender, thus, it comes
as no surprise that consumer researchers often examine the effects of these variables on consumer
behaviors. It also comes as no surprise that much is known about sex and gender and how they
impact buying and consuming activities. Yet there is one gender-related variable, gender identity,
that has both intrigued and perplexed consumer behavior researchers for over four decades.
 Gender identity, sometimes referred to as an individual's psychological sex, has been
defined as the fundamental, existential sense of one's maleness or femaleness" (Spence 1984, p.
83). Since gender is culturally derived, gender identity is similarly rooted in cultural
understandings of what it means to be masculine or feminine (Firat 1991; Lerner 1986). For
many years, sex and gender were thought to be inseparable--that is, men were masculine and
women were feminine. But what consumer behavior researchers, among others, recognized long
ago was that some men were more feminine than masculine while some women were more
masculine than feminine. In the postmodern culture in which we now live, this separation of
gender from sex is even more apparent.

CHAPTER-III
OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

• To analyze the behavior of consumer in true biscuits.

 SECONDARY OBJECTIVES

• To find the awareness of people about TRUE BISCUITS.

 • To analyze the various parameters that determine the choice of
Consumer in TRUE BISCUITS.

• To offer suggestions to the TRUE BISCUITS to improve its

activities.

CHAPTER-IV

RESEARCH METHODOLOGY

4.1 RESEARCH
Research in common place refers to a search for knowledge. Research is defined as
systematic and scientific search for pertinent information on specific topic or area of study.

4.2 METHODOLOGY
Methodology is a plan of action for a research project and explains in detail how data are
collected analyzed and presented, so that they will provide meaning information.
4.3 RESEARCH DESIGN
A Research design is purely and simply the framework or plan for the guides the
collection and analysis of data.
It is the overall operational pattern or framework of the project that stipulated the
information to be collected, from which source and what procedures. A Research design might be
described as a series of advance decision that taken together from a specific master plan or the
model for the conduct of the investigation. Descriptive research is used in this project.

4.4 DESCRIPTIVE RESEARCH

This type of research design is undertaken in many circumstances. When the researcher is
interested in knowing the characteristics of certain groups such as age, sex, education level,
Occupation or income etc. The Objective of such study is to answer the “Who, What, When,
Where, and How” of the subject under investigation, so in this project study comes under
descriptive research design.

4.5 RESEARCH INSTRUMENT USED

The questionnaire was found to be the most suitable type of research instrument to collect
data. It is important tool of the research; it is used to generate the raw data on which findings
were based.

4.6 QUESTIONNAIRE CONSTRUCTION

A questionnaire is an assembly of carefully formulated questions, designed to collect facts
and options from the respondents. It’s an important tool of the research; it is used to generate the
raw data on which findings were based.

4.7 AIM OF THE QUESTIONNAIRE

 To obtain accurate data.
 To make interview as interesting and stimulating.
  To be easily analysis.
 To facilitate efficient administration of information.

4.8 SOURCE AND COLLECTION OF DATA

The task of data collection begins after research problems have been defined and research
design chalked out. Data is the foundation for all marketing research. The researchers can obtain
data form.

 Primary Data

Questionnaires are prepared and personal interview was conducted. Most of the
questions are consist of multiple choices. The structured interview method was undertaken. The
interview was conducted in English as well as in Tamil. Proper care was taken to frame the
interview schedule in such a manner it should be easily understood in view of educational level
of the consumers. Generally 22 questions are prepared and asked to the consumers of the in the
Puducherry.

 Secondary Data

Secondary data was collected from Internets, various books, Journals, and
Company Records.

4.9 SAMPLING PLAN

Due to cost and time involved in collecting the data from all the respondents, it becomes a
compulsion to choose representation. Sampling plan explains as under,
 Sampling Unit:
The sampling unit is who is to be surveyed? That is sampling unit is who are all
the respondent is called sampling unit. The sampling units for this study are customers of
Ponlait, Puducherry.

 Sampling Size:
The sample size for this study is 100.
  Sampling Method:
Different types of sampling methods are available. In this study the convenience
sampling was selected for this research. This sampling method used the principles of non-
probability technique.

 Area Of Sampling:
The area of sampling was taken in Puducherry State.

4.10 STATISTICAL TOOLS

To arrange and interpret the collected data the following statistical tools were used.
 Percentage Method.
 Weighted Average Method.

 PERCENTAGE METHOD:
The percentage method was extensively used for findings various details. It is used for
making comparison between two or more series of data. It can be generally calculated.

No. of respondents favorable

Percentage of Respondents = x 100
Total no. of respondents
 WEIGHTED AVERAGE METHOD:

In the weighted Average method, the weighted average can be calculated by the following
formula

XW = ΣWX /ΣX

Here
XW represents the weighted average
“X1, X2, X3……..Xn” represents the value for variable values
 “W1, W2, W3……..Wn” represents the weightage give to the variable.
Steps:-
• Multiply the weights (W) by the variables (x) to obtain WX
• Add all WX to obtain ∑WX
• Divide WX by sum of the weights (∑X) to get weighted average.

CHAPTER-V
DATA ANALYSIS AND INTERPRETATION

5.1 ANALYSIS USING PERCENTAGE METHOD

TABLE 5.1.1
TRUE BISCUITS CONSUMER

No. of Percentage
Respondents

Yes 59 59
Valid
 No 41 41

Total 100 100

Inference:
Out of 100 samples 59 people consumed true biscuits 41 people did not consumed.

CHART 5.1.1

consumedtrue
70

60

50

40

30

20
Percent

10

0
yes no

consumedtrue

TABLE 5.1.2
CONSUMPTION OF TRUE BISCUITS UNDER SEX
 Total
Consumption of True Biscuits

Yes No

Male 33 15 48
Sex
Female 26 26 52

Total 59 41 100

Inference:
Total male is 48 but a true biscuit consumer is 33 and total no of female are 52 but true
biscuits consumer is 26.
 TABLE 5.1.3

Occupation No. of Percentage

Respondents

Agriculture 7 7

Business 7 7
Valid
Salaried 20 20

Student 41 41

Housewife 25 25

Total 100 100

CONSUMPTION BASED ON OCCUPATION

.
 Inference:
In table shows that, how the consumer purchase True Biscuits under their occupation.
CHART 5.1.3
occupation
50

40

30

20
Frequency

10

0
agriculture business salaried student housewiffe

occupation

TABLE 5.1.4

CONSUMED TRUE BISCUITS BASED ON OCCUPATION (Out of 100)

Occupation Total

Agriculture Business Salaried Student Housewife

5 5 13 20 16 59
Yes
Consumed
True

2 2 7 21 9 41
Yes
 Total 7 7 20 41 25 100

Inference:
Total 100 sample there occupation is different (agriculture, Business, salaried, student and
housewife. In that category the percentage diagram shows student are important buyer for true
biscuits out of 59 students was 20 were consumed true biscuits.

TABLE 5.1.5

SELECTING BRAND

No. of Percentage
Respondents

Quality 38 38

Valid Brand name 24 24

Price 30 30

Package 8 8
 Total 100 100

Inference:
The people consumed true biscuits under their quality, because they first preference to
quality and next is price.
CHART 5.1.5

selecting brand
40

30

20

10
Frequency

0
quality brand name price package

selecting brand

TABLE 5.1.6

TRUE CONSUMPTION BASED ON AGE

No. of Respondents Percentage

10-20 38 38

20-30 37 37

Valid
30-40 15 15

40-50 10 10
 Total 100 100

Inference:
The table shows that Consumption of True biscuits in age wise. Highly age belonging to
10-20 consumes more biscuits.

TABLE 5.1.7

NO. OF TRUE BISCUITS CONSUMED

Age Consumed True Total

Yes No

10-20 17 21 38

20-30 25 12 37

30-40 9 6 15
 40-50 8 2 10

Total 59 41 100

Inference:
I done survey 10-50 age people in that report give information am 20-30 age people are
consumed truer biscuits compare to other group age people.

TABLE 5.1.8
TRUE BISCUIT KNOWN FROM
Known From No. of Respondents Percentage
Advertisement 18 18

Friends 18 18
Family members 15 15
Valid
Neighbors 8 8

Total 59 59
Missing System 41 41
Total 100
Inference:
People get aware from advertisement and friends, family members, neighbors. Out of the
source more number of people gets aware from their friends and advertisement.
CHART 5.1.8

know about
advertisement

Missing

friends

neighbors family members

TABLE 5.1.9

TRUE BISCUIT CONSUMED BASED ON PRICE

 Price Range No. of Respondents Percentage

5-10 9 9
10-15 14 14
Valid
15-20 20 20
>20 16 16
Total 59 59
Missing System 41 41
Total 100 100

Inference:
From the above table and the diagram it shows that from Rs15 to 20 product is moving
highly in the market.
CHART 5.1.9

price true

5-10

10-15

Missing

15-20

>20

TABLE 5.1.10
ALTERNATIVE
 No. of Percentage
Alternative Respondents

Britannia 47 47

Sun feast 28 28
Valid
Parle 21 21

None 4 4

Total 100 100

Inference:
From the above table and diagram, the alternative for the true biscuit is Britannia and
Sunfeast.

CHART 5.1.10
alternative

none

parle

britannia

sunfeast

TABLE 5.1.11

TRUE BISCUITS CONSUMED UNDER

 Ranges No. of Percentage
Respondents

Valid Regular 23 23

Flavor 36 36

Total 59 59
Missing System 41 41
Total 100 100

Inference:
From the above table, when comparing the regular biscuit and flavors biscuit. The flavors
biscuit is well moving in the market.
CHART 5.1.11

purchase under
40

30

20

10
Frequency

0
regular flavore

purchase under

TABLE 5.1.12

NO. OF FLAVOR
 No. of Respondents Percentage
Ranges

Valid
Custard cream 11 11

Crunch cream 5 5

Bourbon 10 10

Choco Marie 10 10

Total 36 36

Missing System 64 64

Total 100 100

Inference:
When we comparing the true biscuits flavors, custard cream is moving highly in the
market.
CHART 5.1.12

flavor
12

10

6
Frequency

0
custardcream crunchcream bourbon chocomarie

flavor

TABLE 5.1.13

SUGGESTION
 Suggestions No. of Respondents Percentage

More advertisement 38 38

Attractive package 14 14

Valid Introduce new flavor 15 15

Better quality 17 17

Less price 16 16

Total 100 100

Inference:
From the above table and the diagram, most of the people suggestion is to give
advertisement.
CHART 5.1.13
suggestion
40

30

20
Frequency

10

0
more advertisement introduce new flavor less price
attractive package better quality

suggestion

5.2 ANALYSIS USING WEIGHTED AVERAGE METHOD

XW = ΣWX / ΣX
 TABLE 5.2.1

LEVEL OF SATISFACTION

High Satisfaction Dissatisfaction Total Average

Satisfaction
108 44 1 153 51
48
Factors High84 1
Satisfaction 133 44.33
Dissatisfaction
84 60
Satisfaction 1 145 48.33
45
Taste 36 84 108 4 22 133
44 1 44.33 1
Price 16 48 42 84 1 1
Quality 28 84 30 60 1 1
Design 15 45 42 84 2 4

Inference:
From the above table the average for taste and quality is high. So the consumer gives
more preferences.
 IT SHOWS THE SATISFACTION LEVEL

120

100

80
Taste
60
Price
40 Quality
20 Design

0
High Satisfaction Dissatisfaction
Satisfaction

Inference:
From the above chart shows taste and quality is high. So the consumer gives more
preferences
 CHAPTER-VI

6.1 FINDINGS OF THE STUDY

 Out of 100 (59 no of people consume true biscuits and 41 no of people did not
consumed).

 Out of 59 (33 male and 26 female consume true biscuits).

 Most number of people consumes true biscuits under quality based.

 Student and house wife give most preference to true biscuits.

 20-30 age people is to buy more (25) out of 59.

 Many people true biscuits know about through advertisement.

 15-20 price products are well moving in market.

.
 Compare to flavor and regular biscuits, flavor is well moving in market out of 59 (36 is
flavor).

 In flavor custard cream is high moving compare to other flavor.

 Most competitor is Britannia.

 The people consume True Biscuit mostly in street vendors.

 6.2 SUGGESTIONS AND RECOMMENDATIONS

 The suggestions are collect from public for to develop the true biscuits.
 The most of the people to give suggestions about the advertisements because they
did not have much more advertisement compare to Britannia biscuits.
 They can improve the quality with favor prices.
 To improve the brand name among the public, because brand name is very
important to every product now people, to ask the product to it their brand name.
 They can improve the brand awareness through educational institutions by giving
the sample piece.
 To improve in the rural market.
 CHAPTER-VII
CONCLUSION

Consumer Behavior will help to learn consumer buying attitude. In true biscuits not get
much more awareness from public, so kindly to improve the advertisements and other
improvements process.

To concentrate more on channel of distribution particularly in street vendors. The most

true biscuits consumer is student and housewife, to introduce more flavors and improve the taste
and quality of the biscuits. The most buyers to consume under quality of the biscuits and other
option are price. To give important to street vendors because more number of people consumed
under street vendors. So kindly improve the advertisement and give more awareness to the
people.
 CHAPTER-VIII
8.1 LIMITATIONS OF STUDY

 The project area is Pondicherry, so the population size is very high for

 Taking survey and also difficult in to find the true biscuits consumers.

 Research has been done only to limited consumer so has to be expand

 One of the important limitation is consumer behavior is changed according to

there mind setting.
 8.2 SCOPE FOR FURTHER STUDY

 The project throws on the need for learning buying behavior for successfully marketing.

 The project was developed based on benefits of sales towards organization.

 It will be helpful for the management to identify the needs and benefits of the consumer

and to take decision to promote the marketing .

 This project can be base for the students who are doing the project in the related area and

to the organization in viewing the worth of the consumer and attitude of the buying

decision making.
 APPENDICES
ANNEXURE- 1
QUESTIONNAIRE
A STUDY ON CONSUMER BEHAVIOR IN AURO FOOD
(TRUE BISCUITS) PVT LTD, THIRUCHITRAMBALAM

1. Name :

2. Age :

3. Sex :

4. Place :

5. Occupation :
a. Agriculture b. Business c. Salaried d. Student

6. Do you have the habit of eating biscuit?

a. Rarely b. Regularly c. Often d. Never

7. When will you prefer to eat biscuit?

a. Morning b. Evening c. Anytime d. Sometime

8. In what basis you are selecting your Brand?

a. Quality b. Brand name c. Price d. Package

9. Whether did you consumed TRUE biscuit or not? If no what is your alternative product?
___________
a. Yes b. No

10. Rank the following factors of your Brand?

Factors Good Very good Moderate Poor Very poor
Value for
money
Timely
delivery
Interact
packing
Required
quality
Availability
11. How did you come to know about the anand steel products?
a. Advertisement b. Friends c. Family members’ d. neighbors

12. How long have you been purchasing anand steel products?
a. Less than 1 year b. 1-2 years c. More than 2 years
13. Purchasing frequency
a. Weekly b. Fortnight c. Monthly d. Festival time e. Rarely

14. Place of purchase

a. Retail outlets b. Neighboring town c. Street vendors d. Supermarket

15. In True biscuits whether will you purchase under flavored or regular biscuits? __________

16. Which flavor do you like?

a. Custard cream b. Crunch cream c. Bourbon d. Choco Marie

17. At what price do you buy the True biscuit?

a. Rs.5-10 b. Rs.10-15 c. Rs.15-20 d. above Rs.20

18. What pack size do you prefer to buy true biscuit?

a. 80 gm b.100 gm c.150gm d.180 gm e.300 gm

19. Indicate your satisfaction level?

Factors Highly Satisfied Neither Dissatisfied Highly

satisfied satisfied dissatisfied
Taste
Price
Quality
Design

20. Whether the True biscuit is available sufficiently in the market?

a. Yes b. No

21. If True biscuit is not available in the market which Brand do you prefer?
a. Britannia b. Sunfeast c. Parle d. None

22. Your comments and suggestions regarding True biscuits?

 ANNEXURE-2
BIBILIOGRAPHY

REFERENCE BOOKS

 Leon G. Sehiffman on Consumer Behavior.

 Philip Kotler Marketing Management.

WEB SITES

 www.bpotimes.com

 www.managementorg.com

 www.answers/topic/consumerbehavior.com